The Eastasouth Management and Business
Vol. 3 No. 03 (2025): The Eastasouth Management and Business (ESMB)

Employee Perception of Fairness in the Performance Appraisal Process and Its Impact on Performance in Indonesian Startups

Hidayati, Nanda (Unknown)
Syafri, Muhammad (Unknown)
Syamsulbahri, Syamsulbahri (Unknown)
Akbar, Muhamad (Unknown)



Article Info

Publish Date
31 May 2025

Abstract

This study investigates the relationship between employee perceptions of fairness in the performance appraisal process and employee performance in Indonesian start-up companies. A quantitative approach was employed, with data collected from 115 employees using a Likert scale-based survey. The data were analyzed using Structural Equation Modeling - Partial Least Squares (SEM-PLS 3). The results reveal that all three dimensions of fairness—procedural fairness, distributive fairness, and interactional fairness—significantly influence employee performance. Procedural fairness had the strongest positive relationship with performance, followed by interactional fairness and distributive fairness. The findings suggest that employees who perceive the appraisal process as fair in terms of consistency, outcomes, and interpersonal treatment are more likely to exhibit higher job performance. The study highlights the importance of fairness in performance appraisals for fostering a productive work environment in start-up companies.

Copyrights © 2025






Journal Info

Abbrev

esmb

Publisher

Subject

Decision Sciences, Operations Research & Management

Description

ESMB - The Eastasouth Management and Business is a peer-reviewed journal and open access three times a year (March, July and November) published by Eastasouth Institute. ESMB aims to publish articles in the field of Strategic management, Operations management, Marketing and Sales, Supply chain and ...