BUFT Journal of Business and Economics

Perceived Fairness of Performance Appraisal: Does It Shape Bankers’ Attitudes towards their Job and Organization?

Faculty of Business Studies, Department of Management Studies
Email: nimaulmgt@juniv.edu

Abstract

Purpose: The study aimed to assess the effect of perceived fairness of performance appraisal (PA) on bankers’ attitudes, namely job satisfaction, job involvement, work engagement, and organizational commitment. Methodology: The research employed a convenience sampling method to gather data from 207 front-line bank officers working in 10 private commercial banks in Bangladesh. For the analysis of the collected data, the study used statistical tools such as ANOVA, Pearson correlation, and regression, using SPSS version 25. Findings: The study found that fair PA has a significant positive impact on all four types of attitudes. From the control variables (i.e., experience, age, gender, education, and marital status), only education level is found to have a significant negative association with job satisfaction and job involvement. Practical Implications: By highlighting the significance of a fair performance appraisal (PA) system, the study provides insights for bank administrations on improving the positive attitudes of their workforce. This, in turn, may boost bankers’ performance and foster success for the banks as a whole. Originality/Value: In a first-of-its-kind endeavor, the study contributes valuable theoretical insights by exploring the influence of fair PA on diverse types of desirable employee attitudes towards jobs, work, and the organization. Moreover, the study explains the findings in the context of social exchange theory as well as equity theory. Research Limitations: A small sample size, convenience sampling, and cross-sectional self-reported data are the main limitations.