Procedural Fairness as Intervening Variable Between Voice and Performance Evaluation Formality on Trust

Abstract

This study aims to test the hypothesis developed by Hartmann and Slapnicar (2009). Thatis to examine the influence of subordinate participation and performance evaluation formality in the process of performance evaluation of trust through the perception of procedural fairness. This research uses a survey method, which is data retrieval through a questionnaire. Subjects in this study are all staffs in one of the University of Malang who has met the criteria. The test used Partial Least Square (PLS). Results showed that the participation of subordinates was not able to improve the perception of procedural fairness directly, but can increase trust. While, the formalities of performance evaluation, directly able to improve the perception of procedural fairness, but can not increase trust. However, if tested indirectly performance evaluation formality can increase trust through the perception of procedural fairness, whereas subordinate participation cannot improve. Conclusion, this study supports the hypothesis developed by Hartmann and Slapnicar (2009), but there are some unsupported hypotheses because of the difference of the research object, where each research object has different evaluation system according to organizational objectives.

The Mediating Role of Interpersonal Trust in the Relationship between Formality of Performance Evaluation and Managerial Performance: Empirical Evidence from Malaysia

“…Hartmann and Slapnic (2009) found that using the formal performance evaluation methods positively impacts trust and makes the performance appraisal more honest, fair, and accurate which is consistent with Prasetya and Wijayanti (2018). The study is in line with other studies relevant to performance evaluation including Lau and Buckland (2001), Lau and Sholihin (2005), Moers (2005), as well as Hartmann (2005).…”

“…A high formality in rewards is based on the calculated formula and not on personal judgment (Gibs, Merchant, Van der Stede & Vargus, 2004). This research will extend earlier studies on the process of performance evaluation formality (Hartmann & Slapnic, 2009;Bone, 2017;Prasetya & Wijayanti, 2018). This research will fill in the gaps by examining the formality of performance evaluation on employee trust, which eventually will enhance managerial performance in the context of emerging markets such as Malaysia with a culture of a high level of power distance and collectivism (Hofstede, 1980).…”

“…Trust in organisation is a confidence that the subordinates hold regarding the honesty of their managers (Coletti et al, 2005;Hartman & Slapnicar, 2009;Prasetya & Wijayanti, 2018). Interpersonal trust in a company is made with the aim of improving the performance of workers.…”

“…Interpersonal trust in a company is made with the aim of improving the performance of workers. When trust can be developed among organisational members, performance evaluation succeeds in the organisation (Prasetya & Wijayanti, 2018;Lau & Sholihin, 2005). Having trust among the subordinates and superiors will create a better relationship.…”