Human beings are specifically interested in three kinds of justice. The first one is distributive justice, which deals not only with the perceived fairness of the outcomes or allocations that individuals in organizations receive, but also with “what the decisions are” at the end of the appraisal process.
The second kind of justice, procedural justice, which refers to the fairness of the procedures used to decide outcomes and addresses fairness issues regarding the methods, mechanisms, and processes used to determine those outcomes.
The third kind of justice is interactional justice, which clearly establishes that people care about the fairness of the interpersonal treatment and communication that they receive. Employee perceptions towards Performance Appraisal are a crucial element in determining the long-term effectiveness of the system, Not only do managers and subordinates generally differ in their perceptions of what should constitute an effective appraisal system, but they also differ in what causes appraisals to be ineffective. Employees found appraisals to be more useful when they were specific and focused, planned and well prepared, easy to understand and when they had more involvement and control over the process. On the other hand, appraisers were more concerned with strategic issues, describing their most preferred appraisal system as linked to business strategy, challenging, value-adding, with an objective setting process, well planned, compulsory and structured. Feelings of dissatisfaction, unfairness in process and inequity in evaluations, any appraisal system will be doomed to failure, appraisal process can become a source of extreme dissatisfaction when employees believe the system is biased, political or irrelevant.
Performance Appraisal is important to set performance...