The influence of performance contracts on employee commitment: a survey of tellers working in commercial banks in Mombasa town, Kenya

Abstract

No organization in todays competitive world can perform at peak levels unless each employee is committed to the organization's objective. One of the major challenges facing organizations involves maintaining employee commitment in the current business environment. This study sought to investigate whether performance contracts influence employee commitment.

In most organizations both' in public and the private business sector, performance contracts have been implemented in order to commit the employees in meeting their performance targets. The problem of how organizations should assess their performance has been challenging scholars and management practitioners for a very long time. The use of performance contracts has been acclaimed as an effective and promising means of improving the performance of public 'enterprises as well as Government departments.

Performance Contracts just as employment contracts form a major method of restructuring incentives by connecting as closely as is optimal the information available about employee performance and the compensation or consequences for that performance. The sole objective of the study is to determine whether performance contracts harness employee commitment.