Works Councils, Performance Appraisals, and Job Satisfaction

• Applicant: Professor Dr. Christian Grund
• Subject Area: Accounting and Finance
• Term: from 2018 to 2024
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 411542070

Previous research on performance appraisals (PA) hardly considers context specific situations of the use of systems. The efficacy of a PA system clearly depends on its acceptance by employees. We will build on the insights of our empirical research during the first phase of this project: PA systems are much more likely implemented, if a works council is in place. Further, works councils foster a kind of transmission, in the sense that implemented PA systems at the firm level are indeed used at the individual level.Within the extended project, we firstly investigate the possible moderating effect of works councils for the relation between PA and job satisfaction of employees. Doing this we also consider the role of a (lacking) transmission of PA. Secondly, we examine the relevance of complementary (or substitutional) appraisal interviews next to PA in this context. Thirdly, the analysis will be extended to other HR practices to reveal additional complementarities and possible substitutions. The quantitative empirical panel studies are based on the German socio-economic Panel (SOEP) and the Linked Personnel Panel (LPP). We derive implications for future research, firms’ HR policies and employment relationships between employers and employees.

• DFG Programme: Research Grants
• Co-Investigator: Professor Dr. Dirk Sliwka