Application of Organisational Justice Theory to Performance Appraisal – a Study Conducted in the Service Sector Enterprises in Kerala

Abstract

Purpose: Globalisation has now become a very common word. It has been the topic of discussion during the last two decades. What globalisation implies is that a country's economy synchronises with the global economy. As the result, severe competition originated in the market. The firm-to-firm competition forced the companies to enhance their productivity and efficiency. Today, PA is used as a most imperative component of HR practices. It helps to assess the performance of employees based on predetermined standards and it enables the HR department to increase the efficiency of employees as well as the organisation. Greenberg was one to apply the theory of organisational justice to Performance Appraisal (PA). Application Greenberg's theory in performance appraisal helps to ensure the system of performance appraisal is fair and just. This study was conducted in five sub-sectors of the service sector in Kerala and primary data was collected from employees. The study is used to understand the application of Greenberg theory in service sector enterprises in Kerala to know the level of justice and fairness of PAS.

Methodology: The study was conducted in the service sector in Kerala. The primary data were acquired through a questionnaire. In this study, the different sectors (Financial Services, Tourism and hospitality, Media and entertainment, Telecommunications, Retail) were randomly selected. Organisations conducting a system of employee Performance Appraisal were considered in this study. A total of 543 samples were selected for the study from the five sectors. The samples were selected randomly. The questionnaire was used as a primary data collection tool.

Finding: The results found that, in Kerala, different sectors follow different methods of performance appraisal techniques to their employees. The methods are different from one sector to another. And the study also found that, the employees in the service sector enterprises in Kerala were believed that the performance appraisal system is fair and just. Finally, the study revealed that the private sector PA system is more effective than the public sector. The techniques used in the private sector were more competent than public sector enterprises.

Originality: This is used to conduct the application of organisational justice theory employee performance appraisal in the service sector enterprises in Kerala.

Paper Type: Applied Research