Can Performance Appraisal Satisfaction Improve Performance? A Study at Indonesian Universities

The performance of lecturers will affect the performance of higher education. This study aims to examine the mediating effect of performance appraisal satisfaction on the relationship between organizational justice and trust to the lecturers performance. This study is a cross-sectional study with a survey method. Respondents are lecturers in reputable universities in the Special Region of Yogyakarta, Indonesia. The survey collected 205 data for analysis. Validity and reliability testing were conducted prior to examining the relationship between variables using structural equation models (SEM). The results show that organizational justice and trust can improve lecturers performance. Furthermore, the results indicate that performance appraisal satisfaction mediated the influence of organizational justice and trust on the lecturers performance. Lecturers performance will increase when the level of trust and fairness of the organization is high which will further increase the commitment of lecturers to achieve their performance targets. A high level of trust and organizational justice will also increase the lecturers satisfaction with the performance appraisal applied by institutions, and the lecturers’ contribution to improving their performance will also be higher. Research results provide feedback to higher education leaders on the positive role of performance appraisal satisfaction in improving lecture performance.