Perceived Fairness in Performance Appraisal and Its Association with Employee Motivation and Job Satisfaction

Abstract

The performance appraisal process can affect an employee’s perception of their work and future within the organization. Employees understand that appraisals are evaluations of their work and often interpret the results as communication about the worth of their contribution and the opportunities available to them within the organization. Employees evaluate fairness based on the treatment they receive throughout the process, and the extent to which the decision is communicated to them. This narrative review synthesizes research on perceived fairness of performance appraisals and its relationship with employee motivation and job satisfaction, published between 2022 and October 2026. The studies covered a variety of contexts, including technology companies in China, and banks and IT companies in India, as well as remote work, and a recent synthesis of appraisal research. In the studies, positive treatment (respectful communication and interaction with supervisors), as well as clear appraisal criteria and feedback, emerged as significant themes. While there is a positive relationship between motivation and job satisfaction, and other variables covered in the research, they are different constructs.