The dimensionality of ratings of performance appraisal systems

Abstract

The performance appraisal (PA) literature focuses predominantly on the characteristics and actions of performance “raters”, ignoring the fact that the success of any performance appraisal system depends largely on employee or appraisee perceptions. This study investigates employee perceptions of performance appraisal, with a focus on the structure and dimensionality of these perceptions. Two hundred and eighty-seven executives and managers from an Australian government business enterprise were surveyed regarding their attitudes to performance review from their own experience as appraisees in this process. The influence of performance pay, PA objectives, sources of PA, process and feedback, and system fairness on employee perceptions were examined. A large number of items (223) was used and split up on an a priori basis into nine separate issues. Factor analysis on the nine separate issues identified five major dimensions of employee attitudes towards performance appraisal: Outputs of PA, Workgroup, Attitude to PA, Bonuses and PA, and Planning and PA. The dimensions of appraisee perception may provide a valuable framework with which to analyse and design systems of performance appraisal.