THE INFLUENCE OF PERCEIVED FAIRNESS IN PERFORMANCE APPRAISAL ON ORGANIZATIONAL COMMITMENT

• Main Author: Bunasih Setiamanah (NIM 19014146), Ligar
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/22900
• Institution: Institut Teknologi Bandung

ABSTRACT <br /> <br /> Currently, the transportation sector is experiencing a disruption with the introduction of <br /> <br /> technology-based transportation services such bike-sharing, and car-sharing which is becoming <br /> <br /> increasingly popular in Indonesia. According to Badan Pusat Statistik, the transportation sector <br /> <br /> worker increased from 5.1 million into 5.6 million in the period of 2015 to 2016. One of the <br /> <br /> companies of this technology-based transportation is PT Transportasi Jaya. As the sector getting <br /> <br /> more competitive, in order to keep its sustainability, PT Transportasi Jaya tried to give the best <br /> <br /> service to its customer by making their human resource as their competitive advantage. PT <br /> <br /> Transportasi Jaya expects the drivers to be always deliver the best performance. One effort they <br /> <br /> made to control the performance of their human resources is by applied performance appraisal <br /> <br /> for the driver. Based on the survey and interview with some of the drivers, with current <br /> <br /> performance management system, 87% the drivers were not satisfied because of they perceived <br /> <br /> the performance appraisal system as unfair and errors which often occurs in the system. <br /> <br /> Additionally, because of this system, some drivers resigned and choose to work for the <br /> <br /> competitor. This research aims to discover the relationship of perceived fairness in performance <br /> <br /> appraisal with the organizational commitment at PT Transportasi Jaya. <br /> <br /> The researcher conduct the multiple linear regression with the number of sample of 126 drivers <br /> <br /> Bandung, Indonesia. The variables in this research include organizational commitment as the <br /> <br /> dependent variable and perceived fairness which consist of procedural justice (fairness within <br /> <br /> the process) and distributive justice (fairness within the result) as the independent variables. <br /> <br /> Based on the findings in this research, the researcher found that perceived fairness both <br /> <br /> procedural and distributive justice has positive relationship with organizational commitment. It <br /> <br /> means that the higher the drivers perceived the performance appraisal as fair, the more likely <br /> <br /> they would be commit to the company. In this research, both procedural justice and distributive <br /> <br /> justice also has significant relationship with organizational commitment which means that this <br /> <br /> research could describe the entire population. Moreover, from the results it can be seen that <br /> <br /> distributive justice has bigger influence than procedural justice toward the organizational <br /> <br /> commitment. Therefore, PT Transportasi Jaya should improve their performance appraisal <br /> <br /> system in order to increase the perceived fairness which leads into better organizational <br /> <br /> commitment. <br /> <br /> Keywords: perceived fairness, organizational commitment, performance appraisal, human <br /> <br /> resources