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International Journal of Engineering & Technology, 7 (2.29) (2018) 602-606
International Journal of Engineering & Technology
Website: www.sciencepubco.com/index.php/IJET
Research paper
Relationships Between Trust, Organizational Justice and
Performance Appraisal Satisfaction: Evidence from Public
Higher Educational Institution in Malaysia
Saraih, U. N.
1*
, Mohd Karim, K.
2
, Irza Hanie Abu Samah
3
,
Amlus, M. H.
4
, Aida Nazima Abashah
5
1,3,4,5
School Of Business Innovation And Technopreneurship, Unimap, 01000 Kangar, Perlis
2
College Of Law, Government And International Studies, UUM, 06010 Sintok, Kedah
*Corresponding Author E-Mail:
*
Ummi@Unimap.Edu.My
Abstract
The main objective of this present study is to reveal the role of trust as a mediator in the relationship between organizational justice
and performance appraisal satisfaction. This study is carried out by distributing questionnaire among 340 staffs. In this research, the
questionnaire is administered to staffs from various schools in one of the Malaysian Public Higher Educational Institution (PHEI).
Data are analysed by using the PROCESS (Hayes, 2013). As a result, a significant effect of organizational justice on performance
appraisal satisfaction with trust as the mediator F(2, 337)=.396, p<.01, R
2
=.7016, β=.7813, t(337)=21.29, p<.01 is found in this study.
A Sobel test is conducted and found a mediation on the model (z=3.2447, p=.00, K
2
=.0213). Therefore, it is found that trust mediated
the relationship between organizational justice and performance appraisal satisfaction. Cultivating the degree of trust among staffs
towards the performance appraisal satisfaction; and creating a conductive environment for staffs to improve their perceived organiza-
tional justice are the best strategies to achieve the goal for performance appraisal satisfaction in this institution. Theoretical and prac-
tical implications based on the results of this study are highlighted. In this line, few suggestions for the institution management are
provided.
Keywords: Performance appraisal satisfaction; organizational justice; trus
t
1. Introduction
Performance appraisal satisfaction is a crucial factor in organiza-
tion because it can lead to a positive behaviour of employee,
which in turn can contribute to the improvement in organization
performance. Therefore, to ensure that performance appraisal can
positively affect employee behaviour and future improvement
towards the organizational performance, employee must first has a
satisfied reaction towards the process and output of the perfor-
mance appraisal. Performance appraisal has been referred by (1)
as a critical human resource practices in most of organizations.
Previous authors (2) added that performance appraisal is important
in identifying, rewarding, and disciplining employees based on
their performance; hence developing the appropriate activities are
salient in managing a good human resource management.
In the local context, performance appraisal system in the govern-
ment sector is determined by fulfilling the Annual Work Perfor-
mance Report (AWPR), which also can be said as one of critical
process in delivering the human resource practices. For example,
recent empirical works (3) indicates that even though the process
of performance appraisal tries to quantify the subjective elements
in measuring employees’ performance into the standard evaluation
AWPR form, however the process is still complicated and hard to
be fairly accepted by employees. This may be because the em-
ployees are varies towards the subjective elements towards what
has been provided by the organization. For instance, the differ-
ences may be due to the elements of organizational justice percep-
tions among employees in the institutions.
In addition, performance appraisal could be perceived as critical
because the employees might have different assumptions towards
the process. Therefore, when the employees assume performance
appraisal is a just process, they will display a positive attitude in
return. In contrast, when the employees assume performance ap-
praisal is not a just process, they will display a negative attitude in
return. Given that, organizational justice is become salient in pre-
dicting the satisfaction of employees in the implementation of
performance appraisal. (4) model of organizational justice is the
most intimate factors that can be used in measuring employees’
perceived justice towards the implementation of performance
appraisal system in the organization. The four factors of (5) model
included of the procedural, distributive, informational and inter-
personal justice. Walsh (2003) stated that the four factors based on
(5) model can clearly analyzed the social (employees) opinions
towards organizational justice in the evaluation or appraisal pro-
cess. This was supported by other authors (6) who presented that
organizational justice is significantly related to performance ap-
praisal satisfaction.
Existing literature revealed that trust was also a key factor of satis-
faction for employees towards the performance appraisal system.
First and foremost, trust may be said as an important determinant
in the human resource practices particularly when involving the
process of performance appraisal. Trust can influence the percep-
tion and reactions between the assessors (supervisors) and assesse
(employees) upon the process of performance appraisal. Second,
trust also a meaningful consequence of organizational justice. For
example, results of (7) presented that organizational justice and
trust is significantly related. Hence, trust was the other factor that