Afework, Fisseha (Assistant Professor)Leyikun, Bruk2021-06-022023-11-042021-06-022023-11-042015-05http://etd.aau.edu.et/handle/123456789/26635The main purpose of this study is to show the effect of a quality performance appraisal on affective organizational commitment and job satisfaction. To study this subject matter and enhance the attention given to the performance appraisal process, two major bilateral donor are selected; DFID Ethiopia and USAID. These bilateral organizations have a total staff size of 3,351. From this population size 186 employees were selected using stratified proportional sampling first and then simple random sampling with a proportional allocation of samples size. Consequently about 29 and 157 staff are selected from DFID/UKAID and USAID respectively and asked to complete a standard questioner on performance appraisal quality by Tang and Sarsfield - Baldwin’s (1996), job satisfaction questioner by Cook and Crossman (2004), and the affective organizational commitment by Allen and Meyer’s (1990 & 1997). The standard questions on the performance appraisal quality by Tang and Sarsfield is taken as a tool to assess the quality of the performance appraisal process. Fourteen questions categorized in four; clarity of the performance appraisal process, communication within the performance appraisal process, trust in the performance appraisal process, and fairness in the performance appraisal process, are used to gather respondents’ response on the quality of the performance appraisal process. In the research process employees are considered as the judges of the performance appraisal quality, because they are the primary beneficiaries or victims of the performance appraisal process and its effect. In addition, standard questioners on affective organizational commitment and job satisfaction were employed to gather the data. The participants’ response gathered was summarized and analyzed using descriptive and inferential statistics and the result is presented in the form of tables and graphs. Descriptive statistics like average and percentage are used mainly to describe the demographic variables. Also correlation analysis is done to understand the relationship between the performance appraisal quality and the dependent variables; affective organizational commitment and job satisfaction. Further regression analysis is done to identify the effect of the performance appraisal quality on affective organizational commitment and job satisfaction. Finally, the empirical findings showed that there is a strong positive effect of the performance appraisal quality on the affective organizational commitment, and job satisfaction. It is also identified that no demographic variables cause significant variance in both affective organizational commitment and job satisfaction. These are encouraging findings for employers to increase the attention they have given to their performance appraisal as it has a significant effect on the affective organizational commitment and job satisfaction of employeesen-USquality performanceaffective organizational commitmentjob satisfactionThesis