Academic journal article South Asian Journal of Management

Organizational Outcomes of the Employees' Perceptions of Performance Appraisal Politics: A Study on Executive MBA Students in Bangladesh

Academic journal article South Asian Journal of Management

Organizational Outcomes of the Employees' Perceptions of Performance Appraisal Politics: A Study on Executive MBA Students in Bangladesh

Article excerpt

Politics is assumed to be woven into every fabric of lives in Bangladesh. Politics is also indicated to occur in the managers' use of power in ascertaining and distributing rewards for the employees. However, politics in performance appraisal which is a critical process of reward determination in the organizations remains under-researched. Against this backdrop, the study investigates the relationship of employees' Perceptions of Performance Appraisal Politics (POPAP) with the employees' organizational outcomes such as job satisfaction, organizational commitment and turnover intention among the full time working (executive) MBA students in Bangladesh. The results of this study on the 67 executive MBA students selected from the four business schools in Bangladesh confirms that the employees' POPAP for punishment motive significantly reduces their job satisfaction and organizational commitment and encourages them to quit the organization. Contrarily, the employees' POPAP with a motivational motive, increases job satisfaction and organizational commitment and reduces the turnover intention of the employees. The study also opens up a broad avenue for research in the performance appraisal politics in Bangladesh.

INTRODUCTION

Managers have strong political reasons to manipulate employees' performance rating which influences the employee's organizational outcomes such as the organizational commitment and turnover intention (Longenecker et al, 1987; Ferris et al, 1996; Mani, 2002; and Poon, 2003).

In an earlier study done in the Malaysian context, Poon (2004) showed that the managers do manipulate the performance appraisals of their subordinates. Based on this manipulation, the subordinates develop their Perceptions of Performance Appraisal Politics (POPAP) which ultimately results in the employees' turnover intention. Poon (2004) also suggested that the different outcomes may emerge when the POPAP is influenced by the two contradictory reasons such as the motivational motive vs. the punishment motive. The employees' POPAP for the motivational motive may result in the positive organizational outcomes (greater job satisfaction and lower turnover), whereas the employees' POPAP for the punishments motive may lead to negative organizational outcomes (such as reduced job satisfaction and higher inclination to quit).

A literature survey reveals that there is no study done in the Bangladeshi context specifically addressing the issue of employees' motivation to increase or reduce the performance because of POPAR Some studies have made only circuitous references to the employees' POPAP in Bangladesh. For instance, Jahangir (2003) investigated a relationship between the managers' use of power, procedural justice, and employees' job satisfaction, and organizational commitment in the Nationalized Commercial Banks (NCBs) in Bangladesh and observed that the managers of NCBs in Bangladesh do not use their reward power to appraise the employees; they appraise the employees exclusively on the basis of the job performance. In addition, the appraisal process is greatly influenced by the managers' political motives such as the managers' personal preferences, employees' involvement with the unions, and the philosophy of top management. Similar observations have been made by Huq (1991) and Rahim and Magner (1996). This study has replicated the studies of Poon (2004) and Gillian and Richardson (2005) in the Bangladeshi context. However, it includes organizational commitment as an added variable for examining the relationship of the employees' POPAP along with job satisfaction and turnover intention variables of earlier studies.

LITERATURE REVIEW

PERFORMANCE APPRAISAL POLITICS

Performance appraisal is a formal organizational procedure. The managers use this procedure to measure and evaluate their subordinates' performance with formal rating instruments on an annual or semi-annual basis (Longenecker and Ludwig, 1990). …

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