The Relationship between Performance Appraisal, Affective Commitment, Relational Contract and Productivity in Organizations based in Lusaka, Zambia

DOI: 10.5176/2251-1970_BizStrategy18.112

Authors: Atoko, S., Taylor, T. K and Sichinsambwe, C.

Abstract: The purpose of this research study was to establish the relationship between performance appraisal, affective commitment, relational contract and productivity in organizations based in Lusaka Zambia. The study was guided by the following hypotheses: Performance Appraisal is positively related to Productivity, Performance Appraisal is positively related to Affective Commitment, Performance Appraisal is positively related to Relational Contract, Affective Commitment is positively related to Productivity, and Relational Contract is positively related to Productivity. Herzberg’s two-factor theory, scientific management theory, expectancy theory and the equity theory were used to establish the relationship between the concepts. A sample frame of 10,077 Lusaka based companies, was used to sample 200 out of 99 responded. A self-administered questionnaire comprising of Likert-type scale ranging between (1) representing strongly disagree and (7) representing strongly agree was used. One structural model was formulated and tested using structural equation modeling (SEM) using latent variables partial least-squares (LVPLS) with SmartPLS3. Three of the hypotheses were supported, i.e., Performance appraisal was found to have significant impact on productivity, affective commitment and relational contract. However, there was no significant effect of relational contract and affective commitment on productivity. The findings of this research study therefore concluded that Performance appraisal is positively related to productivity, affective commitment and relational contract.

Keywords:  Performance Appraisal, Affective Commitment, Relational Contract, Productivity, Lusaka Zambia