How is the Perception of Fairness of Performance Evaluation Practices Constructed? A Case Study of Shop Floor Workers Employed by the Large FMCG Retailer in Scandinavia

Abstract

Prior research, investigating the perception of fairness of performance evaluation practices has researched the topic as a cause-effect phenomenon. This investigation takes a different approach. First, it adopts the bottom-up investigating, starting from the worker herself. Second, it investigates the reasons that influence the construction of fairness, by that gaining an underlying understanding of the perception of fairness. In order to answer the research question, a method of open qualitative interviews has been adopted. A sample of ten shop floor workers from the Danish fast-moving consumer goods (FMCG) retail industry has been chosen for the purpose of answering the research question. This study examines three sets of aspects of performance evaluation. The first set of characteristics analyzes the design of a performance measurement system. Second set of features investigates the formality of the performance evaluation procedures, and third set of characteristics explores the power of subordinate’s voice and its influence on the construction of fairness. I discovered three primary reasons, which collectively influence the construction of the perception of fairness. The first two are the contextual impacts of job design and logical mechanisms of workers. Both directly influence the construction of fairness, yet their impact is limited and strongly dependent on the job design and specific worker-manager relation. The third reason is the feelings. Feelings have the strongest impact on overall perception of fairness. They form an underlying condition, which is the wanted feeling of being appreciated. Performance evaluation managers need to evoke the feeling of being appreciated in order to positively influence the construction of fairness of the performance evaluation practices. The findings of this paper serve as tool for middle management when designing the performance evaluation practices for shop floor workers as well as a tool for evaluating managers when engaging in performance evaluating behavior. First, middle management should recognize that not all shop floor job designs are the same, and provisions for recognizing these differences should be implemented in the design of the performance evaluation system. Second, managers evaluating should recognize that workers want to feel appreciated and respected while receiving evaluation. Therefore, they should engage in a facilitating behavior, taking into consideration the needs of the individual worker, and by that positively influencing the construction of fairness. The contribution to the contemporary research is the provided insight into the process of constructing the perception of fairness, which is offered as an alternative to the established cause-effect studies. The researched population further contributes as it differs from those used prior in contemporary management accounting and behavioral research. The research subject of shop floor worker provides an interesting insight into the construction of the perception of fairness. It offers a unique perspective of an employee on the lowest level in organizational hierarchy, which differs from the perspective of prior researched white-collar workers.