The Effect of Fairness of Performance Appraisal, Job Satisfaction and Commitment on Employees’ Performance: Evidence from Indonesian Automotive Industry

Abstract

This study discussed the influence of fairness of performance appraisal and job satisfaction through commitment on employee performance in Indonesian automotive industry. This study aimed to know the influence of fairness of performance appraisal and job satisfaction through commitment on employees’ performance. This study is quantitative research study. Data were collected by using simple random sampling via electronic to the employees’ population in Indonesia manufacturer. The number of returned and valid questionnaires was 633. Data were processed by using SEM with SmartPLS 3.0. The results of the study concluded that job satisfaction had positive and significant influence on employees’ performance, both directly and indirectly through a mediating effect of commitment. Fairness of performance appraisal had positive and significant influence on employees’ performance, but commitment was not a mediator between job satisfaction and employees’ performance. This study proposed a model for improving performance of employees in Indonesian automotive industry through fairness of performance appraisal and job satisfaction through commitment as a mediator. This study can open the way to improve employee readiness in facing 4.0 era.