Practices adopted for the implementation of performance contracts in Kenyan state corporation
Abstract
The main objective of this study was to establish the practices adopted for the
implementation of Performance Contracts in Kenyan state corporations as well as to
determine the challenges they face in implementing Performance Contracts. The research
design that was used was cross sectional and descriptive survey. The target population of
this study consisted of 187 operational State Corporations in Kenya. The sample size was
arrived at using sample size calculator to select a sample of 57 corporations which is 30%
of a population of 187 State Corporations in Kenya. The findings indicated that all the
Corporations sampled were under Performance Contracting. The findings also indicated
that performance had improved in State Corporations with implementation of
Performance Contracts however it was noted that most Corporations do not meet their set
targets. The study concluded that majority of the state corporations had the chief
executive officer giving the general direction and strategies on Performance Contracting
implementation and line managers developing and implementing strategies whereas most
corporations do not first carry out research on best practices before
implementation. The study also concluded that the most common implementation
challenges were lack of training and capacity building of employees regarding
performance contracting, ambiguity in the process and resistance by personnel to
participate in the process hence these challenges had hindered the successful
implementation of performance contracts in Kenyan State Corporations. The study
recommends that the management of State Corporations should review the strategies
adopted in implementing the performance contracts and ensure that proper continuous
training is conducted to the employees on performance contracting. The study also
recommends constant follow up, monitoring and evaluation of the performance
contracting so as to address challenges as they arise and to ensure that employees
understand the need and importance of performance contracts. The study will contribute
to the existing knowledge on Performance Contracting and will contribute to policy
making by Government in developing public service reform initiatives in order to
improve service delivery in the Public Sector
Citation
Degree of Masters of Business Administration (MBA), School of Business, University of NairobiPublisher
University of Nairobi