Determinants of integrity in the implementation of Performance Appraisal System (PAS): the case of Malaysia enforcement agency

This study aims to measure the determinants of integrity of Performance Appraisal System (PAS) in Malaysia’s Public Sector. It focuses on the implementation of PAS in one of the enforcement agencies in Malaysia. Introduced in 2002 under the Malaysian Remuneration System (MRS), the PAS played an important role in pay-for performance. Employees’ performance and competency were measured to determine their eligibility for salary increment and promotion. Since inception, the implementation of appraisal system was inundated with criticisms due to poor implementation, inappropriate method of assessment and unjust distribution of rewards. Such apprehension had raised concern on integrity of PAS. Guided by organizational justice and work character ethics theories, the study aims to explore the determinants of integrity in PAS. A structured questionnaire was developed and a total of 412 of useable questionnaires were used in data analysis. The research findings disclosed that procedural, distributive, interactional justice and work character ethics are positively correlated with integrity of PAS. Regression analysis shows that interactional justice and work character ethics are the strongest predictors that influence the integrity of PAS with 45.6 and 45.4 percent of the total variability in integrity can be accounted for by these two variables. The significant relationship between variables indicates that the erosion of integrity in PAS can be attributed to poor behavioral and meager structural of performance appraisal system. Strategic and effective measures therefore are pivotal to elevate integrity in the practice of appraisal system in the context of MPS