The association between performance appraisal systems, work‐related attitudes and academic performance

• Published date: 01 November 2017
• DOI: http://doi.org/10.1111/faam.12128
• Date: 01 November 2017
• Author: Kevin Baird,Sophia Su

Received: 2 May2015 Revised: 14 October 2015 Accepted:2 February2016

DOI: 10.1111/faam.12128

ORIGINAL ARTICLE

The association between performance appraisal

systems, work-related attitudes

and academic performance

Sophia Su Kevin Baird

Departmentof Accounting and Corporate

Governance,Macquarie University, Sydney,

Australia

Correspondence

SophiaSu, Department of Accounting and Corpo-

rateGovernance, Macquarie University,Sydney,

Australia.

Email:sophia.su@mq.edu.au

Abstract

This study examines the association between Brown et al.’s (2010)

four dimensions of the quality of the performance appraisal system

(theclarity, communication, fairness and trust) with the work-related

attitudes [job-related stress, employee organisational commitment

(EOC)and propensity to remain] of Australian accounting academics.

Furthermore, the study examinesthe influence of such work-related

attitudes on academic performance in respect to research, teach-

ing and community service. Data were collected from a mail survey

distributed to accounting academics within Australian universities.

The results indicate that all four dimensions of the quality of the

performance appraisal system were associated with work-related

attitudes. Specifically, communication, fairness and clarity were

positively associated with the level of EOC, trust was negatively

associated with job-related stress and fairness was positively asso-

ciated with the propensity to remain. With respect to the effect on

academic performance, job-related stress was found to be negatively

associated with research performance, while the level of EOC was

positively associated with both teachingand community service. The

findings highlight the importance of improving the quality of per-

formance appraisal systems within the Australian higher education

sector.

KEYWORDS

community service performance, performance appraisal systems,

research performance, teaching performance, work-related atti-

tudes

1INTRODUCTION

Public sectors worldwide have undergone significant changes with the traditional features of public sector organisa-

tions having been challenged and altered significantly (Gould-Williams,2003; Spekle & Verbeeten, 2004). In Australia,

Financial Acc & Man. 2017;33:356–372. wileyonlinelibrary.com/journal/faam c

2017 John Wiley & Sons Ltd 356

SU ANDBAIRD 357

public sector organisations have experienced a series of managerial reforms following the introduction of the New

Public Management (NPM) regime (Hood, 1991), with an increased focus on accountability,greater transparency and

improved efficiency (Parker,2012, 2013). Similarly, the AustralianHigher Education Sector (AHES) has undergone sig-

nificant transformation. In particular,cuts in government funding have forced universities to source their own funding,

with the ensuing internationalisation of education propelling the education industry to be Australia's second largest

service exporter (Parker,2012).

The significant managerial reforms have resulted in an increased focus on the accountability,efficiency and effec-

tiveness of the AHES. Consequently, performance appraisal systems have increasing prominence and significance

within the university hierarchy (Morris, 2005) with formal performance appraisal systems now implemented at the

organisational level and at the faculty,department and individual academic levels (Parker, 2013). While performance

appraisal systems appear to be the most direct way to assess academics’ performance, they have triggered different

reactions from academic staff (Anderson, 2006a). In particular, while some have embraced the new business orien-

tation of universities (Schwartz, 2000), others consider performance appraisal systems as a form of surveillance, a

threat to their autonomy, and ‘eveninsulting, and impugned their own sense of professionalism’ (Anderson, 2006b,

p. 164).

Accordingly,this study aims to examine the association between the performance appraisal system with the work-

related attitudes of academics [job-related stress, employee organisational commitment (EOC) and the propensity

to remain]. While a number of studies have examined the characteristics of performance appraisalsystems including

their purpose (Ikramulah, Shah, Khan, Hassan, & Zaman, 2012), developmentprocess (Fletcher, 2001; Simmons, 2002;

Wilson, 2002) and effect on employees’ performance (Bratton & Gold, 1999; Taylor & Pierce, 1999) with work-related

attitudes (Brown, Hyatt, & Benson, 2010), Ojokuku (2013) is the only empirical study to have examined the influence

of performance appraisal systems on academics’ work-related attitudes. While Ojokuku (2013) found a positive asso-

ciation between the effectiveness of performance appraisal systems and academics’ work motivation, this study aims

to contribute to the literature by investigating the association between the quality of the performance appraisal sys-

tem and the work-related attitudes (job-related stress, EOC and the propensity to remain) of Australian accounting

academics. In assessing the quality of a performance appraisalsystem, we rely on Brown et al. (2010), who refer to four

dimensions, namely the clarity of performance expectations, the levelof communication between academics and their

supervisors, trust in the supervisor,and the fairness of the performance appraisal process.

The focus on the performance appraisal system and its impact on work-related attitudes is considered pertinent

for a number of reasons. First, the focus on performance appraisal systems and their behavioural implications within

the AHES is of particular interest given the unique nature of this industry, wherebyperformance evaluation conflicts

with the principles of academic freedom and professional autonomycommonly associated with the traditional collegial

approach (Anderson, 2006b). Further,since academics play an invaluable role in creating and sustaining a highly edu-

cated society,it is of immense importance to examine the work-related attitudes of academics in an attempt to provide

an insight into how university management can contribute to an enhanced academic working environment. Second, by

providing an empirical insight into the impact of performance appraisal systems on work-related attitudes, the study

addresses Parker's (2013) recommendation that urgent attention needs to be placed on understanding how univer-

sity management can employ performance appraisal systems effectively.Finally, performance appraisal systems are a

common source of ‘performance management used to motivate and manage employee performance’ (Fletcher,2001,

p. 473), while they are alsoa source of widespread employee dissatisfaction across many industries (Cook & Crossman,

2004, p. 527).

While there are numerous claims that poor work-related attitudes including EOC (Chow, 1994) and job-related

stress (Boyd & Wylie, 1994) impact on the productivity of academics, there is limited empirical evidence in the litera-

ture supporting the association between academics’ work-related attitudes and the achievement of performance indi-

cators (Taylor,2001). Accordingly, in addition to examining the association between the performance appraisal system

and work-related attitudes, the study also examines the associationbetween job-related stress and EOC with the per-

formance of academics in relation to the three commonly accepted outputs: research, teaching and community service

(Abbott & Doucouliagos, 2003). In examiningthese relationships, the study focuses on accounting academics as due to