The Roles of Organizational Politics and Fairnesin the Relationship between Relative Performance Evaluation and Managerial Performance

Pranata, Ilham and SeTin, SeTin (2021) The Roles of Organizational Politics and Fairnesin the Relationship between Relative Performance Evaluation and Managerial Performance. In: 1st International Conference on Emerging Issues in Humanity Studies and Social Sciences, 1-2 July 2021, Bandung.

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Abstract

The purpose of this study is to investigate if the perceptions of organizational politics and perceptions of fairness mediates the relationships between relative performance evaluation and managerial performance. A survey of 125 managers of manufacturing companies in Indonesia are used to test the models. Data analysis is undertaken with Partial Least Square. Results indicate that relative performance evaluation has a positive impact on organizational politics. The finding suggests that general political behaviour and the politics of going along to get ahead has a negative impact on managerial performance but pay and promotion policies have no impact on managerial performance. The results also indicate that general political behaviour and politics of going along to get ahead significantly mediate the relative performance evaluation and managerial performance relationship. In contrast, the mediating effects of politics on pay and promotion policies on the relationship between relative performance evaluation and managerial performance is insignificant. We also find that the use of relative performance evaluation has a negative impact on fairness; and fairness is positively related to managerial performance. Specifically, the results find that fairness significantly mediate the use of performance relative evaluation and managerial performance relationship.

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Conference or Workshop Item (Paper)

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