Influence of ethical management on politics in performance appraisal: Development and validation of a causal model

This study examines the impact of the ethical Management concept on perceptions of organizational politics in performance appraisal within the context of Malaysia's rapidly growing economy and its demand for effective human resource policies in the financial sector. Addressing the risks of workplace politics that can lead to performance errors and reputational harm, the research employed a quantitative approach, utilizing a questionnaire distributed to 274 officers and clerical staff selected through proportionate stratified random sampling in a Malaysian government financial institution in Kuala Lumpur. Exploratory factor analysis and data validation identified three dimensions of organizational politics in performance appraisal and six dimensions of the Ethical Management concept: work commitment, social obligation, justice, job satisfaction, creative work, and productivity. The findings revealed that work commitment, justice, job satisfaction, and creative work were significantly influenced by the perception of benefits, emphasizing their role in improving organizational outcomes. This study contributes to the development of a model linking the Ethical Management concept to organizational politics, offering insights for enhancing organizational performance through improved management practices.