Perceived Accuracy of Electronic Performance Appraisal Systems: The Case of a Non-for-Profit Organization from an Emerging Economy

Abstract

Performance appraisal reports provide vital information for making strategic decisions. Uniting HR practices and IT is an attempt to maximize value creation. Organizations are transforming their performance management systems from traditional to web-technology based systems to enhance accuracy and objectivity. The present study is an effort to assess employees’ perception of the accuracy of e-performance appraisal systems. To that effect, 500 close-ended questionnaires were administered to randomly selected employees working for a non-for-profit organization where e-performance appraisal is practiced. A total of 352 questionnaires were included for analysis and structural equation modeling was used to analyze the data. The results indicate that rater competence and the possibility to challenge performance appraisals judged as unfair or inaccurate highly influence the employees’ perception of accuracy of e-performance appraisals. Furthermore, a clear communication of standards and the reaction to the last rating moderately affect the employees’ perception of the accuracy of e-PA.