Chief Executive Officers perception of performance contract evaluation system in state corporations in Kenya

Abstract

The study sought to determine CEOs perception of performance Contract Evaluation system and establish factors influencing the perception of performance contact evaluation system in State Corporations. This study was made possible by use of primary source of data (questionnaire) in investigating fifty four (54) CEOs. This study was conducted though querying the CEOs who are the implementers of performance contract evaluation system. Data was gathered in which a structured questionnaire given to a sample of population of the CEOs and designed to elicit specific information from respondents. The information was to establish the perception of performance contract evaluation system in State Corporation in Kenya.

The study established that the methodology of performance evaluation in State Corporations should not be across board but should be tailor made to particular industry and environment. It was also noted the major factor influencing performance evaluation is the political environment where the system will be affected by change in political environment. Monitoring and information flow was also factor with most information being either withheld or released in bits and also the tight policing of set targets to be achieved. Lack of incentive was also a factor that influences evaluation since once performance targets are meet there is no incentive to encourage the employees to achieve better performance next time like in private sector.