The Mediating Effects of Feedback and Procedural Justice on the Relationship between Formal Performance Evaluation System and Trust between Superior and Subordinate Managers

Abstract

Trust is an important aspect of social interaction, especially in the workplace. Trust between superiors and subordinates may allow increasing cooperation and information dissemination between subordinates and superiors. Eventhough the superior has trust in his/her subordinates, trust alone is not enough to ensure that the work will reach the target without further scrutiny. Therefore, a monitoring and evaluation mechanism should exist to formally monitor the performance of subordinates. With the performance evaluation, the extent to which performance is achieved can be compared to the set target. This study examines the mediating effect of feedback and procedural justice on the relationship between formal performance evaluation system and trust between superior and subordinate managers. We argue that the application of formal performance evaluation system will enhance trust between superior and subordinate managers through feedback and procedural justice.Using Partial Least Squares (PLS) as an analitycal method, 93 responses from managers of Banks in Pekanbaru, Riau, Indonesia, were analyzed. The findings of this study appear to support the significant role of feedback and procedural justice on trust between superior and subordinate.

Does Fitness Priming Influence Self- and Other-Judgements of Personal and Physical Characteristics?

“…Their analysis con tributed to the understanding of the relationship between feedback and trust, such that the formality of the feedback was instrumental for levels of reported trust, mediated by the perceived quality of the feedback. Further, this relationship has been expanded upon such that useful feedback medi ated the relationship between formal performance appraisal and perceived trust for one's supervisor (Sari, Anugerah, Yusralaini, & Gusrifan, 2013). The claims made by Hartmann and Slapničar (2009) and Sari and colleagues (2013) reflected the need for an investigation of the relationship between a more informal feedback environment and trust.…”