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MSc in INTERNATIONAL MANAGEMENT
MN5251: DISSERTATION
A critical examination of employee’s perceived appraisal accuracy in China
ABSTRACT
This study investigates what determinants contribute to employee’s perceived appraisalaccuracy in Chinese organisations. This study develops a model that utilises distributivejustice, procedural justice, interactional justice, interpersonal affect, administrative
purpose, developmental purpose, perceived use of multiple criteria and perceived use ofmultiple raters to predict employee’s perceived appraisal accuracy in China. Based onexisting literature, this study conducts a survey in 9 Chinese organisations to examine
this framework. Data from 194 Chinese employees are utilised to test the hypothesizedrelationships. Interview data from 4 respondents are utilised to interpret the underlyinglogic behind the relationships. The results suggest that the perception distributive justice,
procedural justice, interactional justice, interpersonal affect, administrative purpose anddevelopmental purpose are positively related to employee’s perceived appraisalaccuracy. Furthermore, the findings indicate that when organisations consider their
strategies about PA systems in China, national cultural values should betaken intoaccount. Specifically, open, honest and modest business culture seems to be morefeasible in China.
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CONTENT
ABSTRACT.....................................................................0
Chapter 1: Introduction.....................................................3
Chapter 2: Literature Review and Hypotheses .................5
Chapter 3: Method..........................................................21
Chapter 4: Analysis and Results .....................................28
Chapter 5: Discussion.....................................................35
Chapter 6: Limitation and Implication............................41
Chapter 7: Conclusion ....................................................43
ACKNOWLEDGEMENT..............................................44
REFERENCE.................................................................45
APPENDIX....................................................................57
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Chapter 1: Introduction
Human resource (HR), as Hamel & Prahalad (1993) concluded, is one of the most
fundamental and sustainable sources of competitive advantage. ‘A substantial and
rapidly expanding body of evidence’ showed ‘the strong connection between how firms
manage their people and the economic results achieved’ (Pfeffer, 1998:31). With
realisation of the decisive effect of HR in the real business world, human resource
management (HRM) becomes more popular in business studies. More and more
scholars and practitioners have conducted relevant research to provide theoretical and
empirical guidance since the early 1900s when the modern concept of HRM was
launched in reaction to the efficiency focus of Taylorism. Performance appraisal (PA),
whereby a manager or HR professional appraises the work performance of subordinates,
is a principle managerial tool in the area of HRM (Longenecker & Goff, 1992). It is
believed that PA contributes to organisational target through determining, praising and
punishing effective and ineffective performance, therefore provide the organisation,
together with the employees, with a plethora of benefits (Coens & Jenkins, 2000).
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