| dc.description.abstract | Performance contract is a freely negotiated written contract between the government
as owners and managers of the public entity as agents of the government to achieve
agreed results within a given time period. The major focus for performance
contracting is attainment of results. It is largely perceived that implementation of
performance contracting has led to significant improvements in the performance of
the public sector which has led to its adoption by many governments around the world
including the Kenyan government. The general objective of this study was to establish
managements’ perception of the contribution of performance contracting to
performance of Kenya Reinsurance Corporation Limited as well as the factors that
influence their perception. The study adopted a census survey design where the
population of study comprised of members of management at Kenya Reinsurance
Corporation Limited. Primary data was sourced through a structured questionnaire.
The study established that implementation of performance contracting has greatly
enhanced the level of accountability for performance at the entity. Management of
Kenya Reinsurance Corporation Limited strongly perceive that performance
contracting has led to significant improvement in financial performance, service
delivery and welfare enhancement with the highest influence being on financial
performance at a perception index of 82% with service delivery having the lowest
perception index at 76%. On the specific indicators, performance contracting is
perceived to have the greatest influence on revenue growth and profitability with the
least influence being on eradication of corruption, enhancing creativity and promoting
faster service delivery. The factors identified to have the greatest influence on
management’s perception were identified as management and leadership in the
performance contracting process, extensive communication in the process as well as
being involved in establishing targets under performance contracting. Another factor
that plays a significant role is the ranking system adopted by government which
promotes increased commitment to the process. This study recommends that Kenya
Reinsurance Corporation should consider reinforcing its service delivery indicators
and targets under performance contracting specifically to promote faster service
delivery and enhance innovation. This is essential given that the organization is in the
insurance industry where competition is tilting more and more towards service
delivery and innovation of new products. It is recommended that further studies be
done on Management of other public sector entities in Kenya. Additional studies may
also be done to establish the influence of personal traits on perception of the
contribution of performance contracting to performance. | en_US |
