ABSTRACT

Performance appraisal is one of the most important aspects of human resource management (HRM). Regardless of the technical soundness of the performance appraisal system, employees’ reaction to the performance appraisal itself needs to be a concern. Employee satisfaction with performance appraisal plays a pivotal role in the long-term effectiveness of any performance appraisal implementation, but unfortunately this topic has received little empirical attention. In this paper, a systematic literature review is used to profoundly examine previous research from various available sources. The aim of this study was to deliver a meticulous summary of all available primary research. This research contributes theoretically by highlighting latent factors in employee performance appraisal satisfaction, such as perceived fairness and accuracy. Some suggestions for the design of an appraisal system, appraisal effectiveness, and future research are discussed.