Organizational Justice in Performance Appraisal System: Impact on Employees Satisfaction and Work Performance

Performance appraisal plays a vital role in human resource management system. It is used by organizations for the provision of development programs, reward allocation and also to provide fairness perception to employees about their tasks, jobs, organization, managers, and departments. It is a continuous process through which communication is affectively made between supervisors and employees of an organization. Job satisfaction of employee is necessary for increasing performance of work (Suliman, 2007), the employee need a good performance appraisal system for enhancing work performance. The purpose of this study is to examine the relationship of organizational justice (Procedural justice, distributive justice and interactional justice) with work performance with the mediation of performance appraisal satisfaction. The correlation and regression was used to analyze the variables and the results show that there is positive and significant relationship between organizational justice and work performance in manufacturing firms of Pakistan. There is also mediation of performance appraisal satisfaction and it enhances the work performance if present. The fairness perception of employee in performance appraisal process is most important factor which increase work performance of an employee in a particular organization.