THE EFFECTS OF PERCEIVED SYSTEM KNOWLEDGE ON THE AGREEMENT BETWEEN SELF‐RATINGS AND SUPERVISOR RATINGS

Abstract

The viability of self‐assessment in the performance appraisal process has been the focus of recent work. Although some contend that self‐appraisals can be beneficial, the consistent finding of lenient and inaccurate self‐ratings has led others to discount and doubt their usefulness. Recent research (Farh & Dobbins, 1989a,b) has investigated the influence of a variety of factors in improving the accuracy of self‐ratings. The present study was conducted to examine the effect of perceived system knowledge (PSK) on the discrepancy between self‐ and supervisor ratings. Seventy‐three employees of two banking institutions participated by completing a questionnaire on their perceived knowledge of the performance appraisal system. The results of moderated regression analyses suggest that the level of knowledge did in fact influence the agreement among subordinates and supervisors. Self‐ratings were more congruent with supervisors’ratings when the subordinates reported high levels of perceived system knowledge. Implications of these findings for organizations and areas for future research are discussed.