Performance Contracting and Strategy Evaluation in State Corporations in Kenya
Abstract
ABSTRACT
By design, performance contracts are intended to implement strategic plans of
organizations. It is argued that, the results obtained from the performance contracts give
the extent to which organizations strategic plans have been implemented and that these
results should inform the evaluation of the very strategies. This study set to establish the
link between performance contract and strategy evaluation in State Corporations in
Kenya. To achieve this objective, primary data was used. The data was collected from
individual State Corporations by email and drop and pick. The findings realized suggest
that, to a less extent, the State Corporations' performance contract results inform their
strategy evaluation. The findings also suggest that strategic plans of State Corporations
are not comprehensively developed and miss out on clear intentions. This in turn affects
the process of target setting, implementation and evaluation of performance contracts.
The results may have been constrained by the level of understanding on the relationship
between the organizations' strategic plan and the performance contract. An understanding
of this would have further enhanced the research findings. There should be put in place
measure to ensure that performance contracts are designed in such a way that they
comprehensively cover issues in the strategic plans. The government needs to develop
policies that direct institutions to evaluate their strategies annually, along the performance
contract timelines and using the performance contract results. At the same time, it should
be declared during the public pronouncement of the performance contract results that the
results obtained in the performance contract are a reflection of the level of
implementation of the institutions' strategic plan and that these results must be the
building blocks in the evaluation of the strategy and in the development of new strategic
direction.
Publisher
University of Nairobi
Description
MBA