The critical component to practice HRM in any environment is organisational justice, i.e. the notion of fairness or justice. Depending on an employee’s work and accomplishment, performance results such as bonuses and penalties are administered under organisational justice.
An employee’s work performance involves various aspects such as quality, quantity, work productivity and workplace conduct.
Performance appraisal system is the process of evaluating the performance of an employee (Schermerhorn, Hunt, & Osborn, 2002). The information gathered from such evaluation is shared with employees.
Since the 1980s there has been an increasing emphasis on the importance of performance management systems. It involves the identification of certain parameters, also known as key performance indicators to effectively evaluate the performance of an employee
Goal-setting theory refers to the effects of setting goals on subsequent performance. Researcher Edwin Locke found that individuals who set specific, difficult goals performed better than those who set general, easy goals (Yearta, Maitlis, & Briner, 1995).
Organizational justice theory helps the performance management process of an organization to make it more transparent, trustworthy, and reliable.