Impact of functional interdependency on employee satisfaction with performance appraisal in the real estate industry

Title

Impact of functional interdependency on employee satisfaction with performance appraisal in the real estate industry

Creator

Elangovan N.; Rajendran S.

Description

Unbiased performance appraisal tends to bolster the performance of employees. The studies indicate several inadequacies with the current performance appraisal systems. Functional interdependence is one such factor that has been ignored. The study aims to find the factors that can improve the satisfaction with performance appraisal of employees whose deliverables are highly interdependent on other functions. Organizational justice, rater competence, inter-functional conflict, and cohesion are considered the mediating variables. To test the model, the data are collected through a survey using a questionnaire from the executives of Indian real estate companies who have undergone the appraisal process at least once. Firms with more than 500 employees are randomly selected for the list of members of the real estate developers' associations. The results show that functional interdependency has a negative impact on satisfaction with performance appraisal. Although conflict and cohesion are found to influence satisfaction with performance appraisal, they did not mediate the effect of functional interdependency on satisfaction with performance appraisal. However, the study found that rater competence and organizational justice have a mediating effect. The study provides practical implications to HR managers of real estate companies to train the raters and include the complexities of functional interdependencies in the appraisal system. A grievance mechanism should be created to address the employees' concerns, ultimately improving satisfaction with performance appraisal. Elangovan N., Sridhar Rajendran, 2020

Source

Problems and Perspectives in Management, Vol-18, No. 4, pp. 213-227.

Date

2020-01-01

Publisher

LLC CPC Business Perspectives

Subject

Appraisal; Indian real estate industry; Interdependency; Organizational justice; Performance; Rater competence; Satisfaction

Coverage

Elangovan N., School of Business and Management, Christ University, India; Rajendran S., School of Business and Management, Christ University, India

Rights

All Open Access; Gold Open Access

Relation

ISSN: 17277051

Format

Online

Language

English

Type

Article

Identifier

https://doi.org/10.21511/ppm.18(4).2020.19

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