The Impact of Performance Measures on Employee Fairness Perceptions, Job Satisfaction andOrganisational Commitment

Abstract

This research examines how the use of nonfinancial performance measures for employee performance evaluation affects three employee outcomes - procedural fairness, job satisfaction and organisational commitment. The results, based on a sample of 130 managers support our expectations. They indicate the following. First, nonfinancial measures have a significant direct effect on procedural fairness. Second, the effects of nonfinancial measures on employee job satisfaction and organisational commitment are indirect through procedural fairness. Finally, the results for the nonfinancial measures model are similar to those of the financial measures model. These results may have important theoretical and practical implications on the choice of performance measures for performance measurement and evaluation.