There has been a great deal of research into performance appraisal, especially concerning the factors that influence the effectiveness of performance appraisal (EPA). Studies suggest that elements such as organizational fairness, organizational politics, and leadership style may contribute to the EPA. Regardless of the evidence of research on these issues, there is paucity of research linking the impact of distributive fairness on the EPA. Moreover, prior studies, similar to this, have reported mixed findings. Accordingly, this study proposes the moderating role of employee participation in the relationship between distributive fairness and the EPA.