| dc.description.abstract | Performance Contract (PC) is an agreement between a government and a public agency which establishes general goals for the agency, sets targets for measuring performance and provides incentives for achieving these targets. They include a variety of incentive-based mechanisms for controlling public agencies- controlling the outcome rather than the process. This paper examines the experience of implementing this policy instrument in Kenya and how it impacts on strategy implementation in the public sector. The study will focus on the Ministry Of State for Defence (MOSD) as a case study.
The performance evaluation methodology embedded in this approach is an example of best practice and early results from impact studies are encouraging, the study employed descriptive survey method as the basic research methodology that was employed in the study to help establish whether the adoption of PCs has improved strategy implementation in the Ministry of State for Defence. The study was also aimed at establishing the mechanisms put in place to ensure the PCs contribute to the strategic goal attainment of the Ministry of State for Defense (MOSD).
Data in the study was collected by use of interview guide that was targeted at both top level and middle level management of MOSD. After data collection, data analysis was then done by coding the quantitative data through specific objective of study. Some of the findings that were established by the study are that the PCs have indeed improved strategy implementation process through promoting accountability on resource utilization, promoting transparency, helping in understanding and achieving strategic and technical requirements of the Ministry.
Further the study established that the a number of mechanisms have been put in place to ensure PCs contribute to the overall goal attainment in the MOSD these include cascading of organization goals, frequent reviews of performance contracts, institutional arrangements like incentives and meta evaluation. Some of the findings that were recommended by the researcher are that there should be adequate resources for the implementation of strategic plan and the parties in performance contracts should be directly involved in the implementation of strategic goals rather than hiring external parties for the management | en_US |
