It is often suggested that in order for performance appraisal to positively influence employee behaviour, employees must experience positive appraisal reactions. The purpose of the present study is to examine two different models of the relationship between employee perceptions of developmental performance appraisal and self‐reported work performance: a mediation model and a moderation model.
Results from a cross‐sectional survey of 434 employees showed that the relationship between perceptions of developmental performance appraisal and self‐reported work performance was mediated by employees' intrinsic motivation, and strongly moderated by their autonomy orientation.
For employees with a weak autonomy orientation, the relationship was positive, but for those with a strong autonomy orientation, the relationship was negative.
The two most important limitations, which are discussed in more detail at the end of the paper, are the cross‐sectional nature of the study and the reliance on self‐reported questionnaire data. Consequently, experimental studies are needed to examine causality issues.
The most interesting and practically relevant finding is that autonomy orientation moderated the relationship between perceptions of developmental performance appraisal and work performance. Accordingly, extra emphasis should be put on participative and autonomy supportive application of performance appraisal involving employees with a strong autonomy orientation.
