Linking Fairness and Transparency to Employee Trust in Performance Appraisal Systems: A Conceptual Review and Framework for Malaysian Public Universities

Abstract

Performance appraisal (PA) is a key human resource practice in Malaysian public universities because its outcomes influence promotion, rewards, and career progression. In KPI-driven university environments, employees are likely to assess whether appraisal processes and outcomes are fair and whether the decision rules are transparent, clear, and accurate. While previous studies have examined appraisal fairness and effectiveness, limited attention has been given to the role of transparency in shaping employee trust. This conceptual paper addresses that gap by developing a framework that links perceived fairness, transparency, and employee trust in Malaysian public universities. Drawing on organisational justice theory, perceived fairness is conceptualised through distributive, procedural, and interactional fairness. The framework also incorporates organisational transparency, reflected in disclosure, clarity, and accuracy. It proposes that perceived fairness influences employee trust both directly and indirectly through transparency. When appraisal systems are viewed as fair and transparent, employees are more likely to trust the institution and the appraisal process.  This paper contributes by extending PA literature through the inclusion of transparency as a mediating mechanism, while offering a contextually relevant framework for Malaysian public universities. It also proposes hypotheses and outlines an empirical approach for future testing.