Both performance management and organisational justice have been considered as significant themes in research and practice. This study (N = 220) attempts to understand the potential influence of performance management processes viz performance-based feedback and employee participation in performance management on employees’ justice perceptions. The research was carried out in the context of the Indian software industry for a number of reasons. First, the industry has served as a global brand ambassador for India with several countries relying on Indian software organisations for IT solutions, products and services. The second reason lies in the very nature of this industry. The industry environment is quite volatile and is characterised by rapidly changing client expectations, dynamic performance goals, shifting task priorities and team-based work structures. As a result, it relies heavily on its human resources and their performance. In such a context, continuous performance-based feedback and employee participation in performance management may be two significant aspects of organisational performance management system (PMS). Third, though the industry has been attracting global importance and accolades, little research has been conducted on human resources in this industry especially in the Indian context.
The study hypothesised that providing continuous performance-based feedback leads to positive procedural, distributive and interactional justice perceptions. Additionally, a mediation effect of employee participation in performance management was also tested. Analysis was carried out using structural equation modelling and bootstrapping method (5000 samples, 95% confidence intervals). Results revealed significant direct and indirect effects (via employee participation) of continuous performance-based feedback on procedural, distributive and interactional justice perceptions. These findings have important implications for practice.
