LAUSR

The purpose of this study is to test the relationship between the fair Performance Appraisal system (FPAS) dimensions and employee satisfaction dimensions. Furthermore, this research also seeks to test the mediating effect of trust in supervisor and perceived organizational politics in the association between the fair performance appraisal and employee satisfaction. The total of 406 respondents data were collected from the banking sector of Pakistan through a convenient sampling technique. The Structural Equation Modelling (SEM) was employed to test the mediating effect of trust in supervisor and the perceived organizational politics in the association between the fair performance appraisal and employee satisfaction. The study reveals that trust in supervisor has partially mediated between the fair performance appraisal dimensions and employee satisfaction dimension whereas perceived organizational politics has fully mediated between the fair performance appraisal dimensions and employee satisfaction dimension. Previous studies have tested the performance appraisal system relationship with employee satisfaction. Whereas this research, according to the authors, is the first study, which has tested the trust in supervisor and perceived organizational politics in six different mediating models. The current study has been a pioneer in examining the mediating relationship between air performance appraisal system and employee satisfaction in the context of different appraisal techniques, appraisal process and implementation. During the performance appraisal evaluation process, organizations should monitor different aspects of employee satisfaction in order to foster a positive fair appraisal system for employees. The study framework is significant in practically testing other contexts for comparison. The managerial implications are based on the present findings to improve the appraisal system or way of evaluation in the organization.