The Mediating Role of Ethical Climate in the Relationship Between Performance Appraisal and Organizational Performance

Although prior research has consistently established a positive relationship between performance appraisal and organizational performance across different research contexts, the mechanisms that underlie this link remain unclear. The present study attempts to fill this void by testing the mediating role of ethical climate in the relationship between performance appraisal and organizational performance across 181 Nigerian public sector agencies. Cross-sectional mediation analyses were performed using partial least squares path modeling approach. Results indicated that performance appraisal was positively and significantly related to organizational performance. Regarding the mediating effect, ethical climate significantly mediated the relationship between performance appraisal and organizational performance. The study made recommendations and drew suggestions for future research to enhance the performance of public sector agencies.