Participatory Performance Measurement or Self-Assessment: Amelioration Employee Job Satisfaction

Abstract

The purpose of research is to explore the differences in employee satisfaction levels based on type of performance measurement. The types of performance measures that used by an organization to evaluate its employees performance is critical because it is likely to affect employees job satisfaction. Empirical research has shown that participatory performance measurement is an effective performance evaluation system (Roberts, 2003). Besides that, employee involvement in measures formulation results fair and unbiased measurement (Islam and shuib 2005). For that, participatory performance measurement is likely to improve employee satisfaction. On the other hand, McCarthy (2000) stated that employees are given the opportunity to assess its performance independently results more comprehensive performance measurement. Therefore, self-assessment increases employee satisfaction. The Subjects of the experiment were undergraduate students who have taken management control systems course. The research hypothesis is empirically tested using laboratory experimental method with design posttest-only control group design. Using the Mann-Whitney U test, study results reported that satisfaction difference between two independent groups is significance because smaller than the specified level of alpha 0,05. Based on statistic result and descriptive analysis showed that employee prefer participatory performance measurement to self-assessment. Most reason for select participatory performance is external recognition give more satisfaction than internal recognition.

Keywords: Participatory performance measurement, Self-assessment, Employee satisfaction, External recognition