Ethical Leadership and Performance Appraisal Satisfaction: The Mediating Role of Trust
Ietje Nazaruddin (a), Hafiez Sofyani (b), Caesar Marga Putri (c), Erni Suryandari Fatmaningrum (d)
a), b), c), d) Department of Accounting,
Universitas Muhammadiyah Yogyakarta,
Jl. Brawijaya, Tamantirto, Bantul, Yogyakarta, Indonesia.
Tel.: +62-274-387656; Fax: +62-274-387646 Mob: +6282137551066
E-mail: ietje_effendi[at]yahoo.com.sg
Abstract
This study aimed to examine the effect of ethical leadership on performance appraisal satisfaction. The study also examined the role of trust as a mediator in the relationship between ethical leadership and performance appraisal satisfaction. Data were collected via questionnaires completed by 205 academics teaching in the faculty of economics and business at university in Yogyakarta. Validity and reliability testing was carried out before testing the hypotheses, and the data were analysed using PROCESS (Hayes, 2013). The results of the study show that ethical leadership and trust have a positive effect on performance appraisal satisfaction. The results also provide empirical evidence of an indirect influence of ethical leadership on performance appraisal satisfaction through the mediation of trust. For higher education management, the results of this study demonstrate the role of ethical leadership in increasing trust so as to increase lecturer satisfaction with performance appraisal.
Keywords: Ethical leadership, trust, performance appraisal satisfaction.
Topic: Strategic Management, Entrepreneurship and Contemporary Issues