Employee Equity Perception Towards Performances Management and Association With Organizational Commitment With References to Federal Government Ministries of Ethiopia

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Date

2016-06

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Addis Ababa University

Abstract

The purpose of this study is to examine the relationship between components of organizational commitment and equity perception of public sector employees toward performances management system and practices. Though there are several theoretical and empirical literature on performance management and organizational commitment, there has not been any similar study on public sector organizations in Ethiopian context. Therefore, this study could make important contribution by filling the gaps in studies relating to performance management system and organizational commitment in Ethiopian public sector. Evidence suggests that performance evaluations are often inaccurate and manipulated, thus affecting employee attitudes and behaviors. This study examines the effects of employee perception of performance appraisals and on organizational commitment. Questionnaire was distributed to a sample of One hundred twenty employees of various ages, backgrounds, experiences and both genders were conveniently selected for the questionnaire survey. The questionnaire used for the survey consists of four parts: measures of perception of performance appraisal, affective commitment, normative commitment, continuances commitment and demographic Variables. Correlation model was used to analyze the quantitative data obtained through questionnaire survey and to test the hypotheses in order to examine the effects of performance appraisal system on different aspects of organizational commitment. The results indicated that when employees perceived of performance appraisal ratings as fair in terms of procedural, interactional and distributional justices /equity, all models of organizational commitment increased. Furthermore, when employees perceived performance management as unfair in terms of procedural, interactional and distributional justices /equity, their organizational commitment decreased. Therefore, this study recommends that in order to improve employees‟ commitment, managers should ensure fairness in performance managment process and avoid unwarranted political intervention and manipulations, uninformed decision, personal bias and unfair distribution of promotion and rewards in an organizations. In addition, the performance appraisal system, evaluation criteria and methods used by public sector organizations should be revised and improved. Key words: Equity perception performances commitment management organizational

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Keywords

Equity perception, performances commitment, Organizational commitment, performances management

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