Performance appraisal process as a determinant of employee commitment: a serial mediation analysis

Abstract

Purpose This study draws on Organisation Justice Theory and Social Exchange Theory to examine the effects of the performance appraisal process (PAP) on employee commitment (ECO) via a serial mediation of performance appraisal outcome (PAO) and employee reward (ERE).Design/methodology/approach Survey data were collected from a sample of 363 academics across UK Higher Education Institutions (HEIs), including post-1992 and pre-1992 universities. We tested our hypotheses using partial least squares structural equation modeling (PLS-SEM) with a bias-corrected bootstrapping method.Findings The findings show that the PAP positively influences ECO and ERE. PAO and ERE mediate the relationship between the PAP and ECO. However, no significant relationship was found between PAO and ECO.Practical implications This study has significant implications for HEIs as it underscores the need for managers to ensure the clarity and accuracy of the PAP and to structure rewards to reflect employees’ efforts, considering they affect ECO.Originality/value This study contributes to the current debate on performance appraisal by highlighting the extent to which employees’ commitment to an organisation depends on the PAP, PAO and reward.