An Analysis of Employee Performance Management as a Driver of Organizational Commitment

In a high turbulent economy business growth and sustainability are great challenges. A key driver of business sustainability is the employee, his performance and commitment to his organization. Most of the studies addressed the influence of the organizational commitment directly or indirectly on the performance management. While, this study focuses on the impact of the employee performance management (planning, monitoring and appraisal) on organizational commitment. The main research objectives are to (1) Conduct a literature review of the employee performance management (EPM) and the organizational commitment. (2) Develop a survey instrument to study the impact. (3) Conduct a statistical analysis. (4) Interpret the statistical results and develop recommendations for improving EPM to strengthen organizational commitment. The study adopts a quantitative research approach. A survey instrument designed via Google forms. Purposive and snowballing sampling techniques were used. Sample size of 346. Collected data analyzed using SPSS 30.0. Performance monitoring and performance appraisal had strong to very strong positive correlations with affective, normative, and organizational commitment. Ordinal logistic regression further supported that monitoring, and appraisal were significant predictors of organizational commitment. For future studies, investigating the long-term impact of structured performance appraisal system on employees' normative commitment in a longitudinal study and studying how specific performance appraisal feedback styles influence emotional bonding of the employees are highly recommended. Using appraisal satisfaction survey, improving the fairness and transparency of the appraisal process through standardized appraisal guidelines and conducting awareness sessions for employees and raters are highly advisable for employers.