An examination of employee perceptions of a subjective performance appraisal system

This study sought to identify factors related to employee perceptions of the accuracy of performance ratings they received using a subjective rating system. It also sought to determine if the relationship between these correlates and perceived fairness and accuracy was moderated by employee sex and/or race. The results were based on the analysis of items from questionnaires completed by 234 government employees whose job performance was rated on a graphic rating scale. A factor analysis of the predictor items yielded three factors. The first factor dealt with employees' confidence in their supervisors' qualifications to accurately rate their performance, the second with matters related to a discussion of appraisal outcomes (i.e., rewards and career progress), and the third with the relevance of the appraisal instrument. The measure of perceived fairness and accuracy was regressed onto scores derived for each of the three factors, plus a set of contrast variables representing the various race/sex groupings and a set of demographic variables (viz., job tenure, education level, and supervisory status). Factors 1 and 2, race, and supervisory status were found to be significantly related to perceived fairness and accuracy. Moreover, the relationship of the criterion with job tenure was moderated by race, that with factor 2 was moderated by sex. Management implications of these findings are discussed.