The effectiveness of performance appraisal (PA) system has remained an area of research interest due to its issues related to fairness in the organizational context and procedural fairness of PA as perceived by employees affects their motivation level and their organizational citizenship behaviour (OCB). In this regard, this paper assesses the extent to which perceived procedural fairness of public organization employees in Nepal affects their OCB and their intrinsic motivation. Further, it examines the mediating role of intrinsic motivation in the relationship between perceived procedural fairness in PA and OCB. An online survey was carried out on 104 officers of Class III and Class II level of government of Nepal.
Data after conducting confirmatory factor analysis (CFA) was analysed using descriptive statistics and structural equation modelling (SEM). Results showed that procedural fairness in PA significantly affected both OCB and intrinsic motivation. The effect of PA’s procedural fairness on OCB was weak while that on intrinsic motivation was moderate. Further, intrinsic motivation fully mediated the relationship between procedural fairness in PA and OCB in officers of public organizations of Nepal. Limitations and research implications are discussed in the paper.