Mapping the relationships between hotel employees’ perceptions of performance appraisal fairness, satisfaction, and psychological contract

Abstract Little is known concerning the extent to which employees’ perception of fairness enhances their satisfaction with the performance appraisal rater, feedback and system. The study tests whether these relationships are associated with the psychological contract that binds employees with their organizations. Drawing on the social exchange theory, this study examines these relationships with data collected from 230 hotel employees in the US. Analysis through structural equation modeling suggests that different types of organizational justices are associated differently with satisfaction with performance appraisal and the level of employees’ mental attachment to the organization. The implications of such findings are discussed.