Employee Perception of Performance Contracting at Multimedia University of Kenya

Abstract

Performance contracting is a performance management tool that defines expectations and responsibilities of each of the parties involved to achieve mutually agreed results. Performance contracting process involves; work plan management, skills development, performance monitoring, evaluation and results. Successful implementation of performance contracting process depends on how employees perceive the process. It is important for organizations to understand the whole notion of perception and its related concepts to be able to determine factors that influence people’s behavior. The General objective of the study was to establish employee perception of performance contracting in Multimedia University of Kenya (MMU). Stratified Simple Random Sampling was used and a total of 82 employees were interviewed. This accounted for 20percent of employees at MMU. Data was collected using a structured questionnaire with both closed and open ended questions which were self administered. SPSS V.20 was used to analyze and the data was managed through the use of MS-Excel. The results were presented using tables and figures which showed distribution of frequencies and percentages of responses. The study revealed that most employees did not participate in critical aspects of the performance contracting process. The University did not have a clear and fair system of performance evaluation. There was improvement in performance, work attitude, accountability and motivation as a result of the PC process. It is concluded that since employees were not involved in the performance contracting process, they did not own it and were not committed to it. They did not have capacity to conceptualize the process. The study recommended that the University should involve its employees in critical aspects of the performance contracting process to be able to win their ownership, commitment and support. It should also train and sensitize its employees on the performance contracting concept for successful implementation of the process. The study further recommended that the University should enhance the gains made so far as a result of performance contracting process. The study recommended further studies to investigate the influence of employee perception of PC on performance