dc.description.abstract | The extent to which the performance contracts reflect what is captured in the strategic
plan and to the extent to which their effects are felt is what this study sought to
investigate. The objective of this study was to establish the effect of performance
contracting in the implementation of strategic plan in East African Portland Cement
Company Limited. A case study approach through content analysis was used to have
an in-depth on the effect of performance contracting in the implementation of the
strategic plan in EAPCC. Primary and secondary data were used and the respondents
were drawn from the top level management who are involved in corporate strategic
management issues. The interview guide was used to collect the primary data from the
respondents and the results were then used to make inferences about the
implementation of performance contract at the organization and how significant it was
in the implementation of the strategic plan at both the corporate and the departmental
levels. The fundamental principle of performance contracting is the devolved
management style where emphasis is management by outcome rather than
management by processes. Its therefore provides a framework for the changing
behaviors in the context of devolved management structures. Government view
performance contracts as a useful vehicle for articulating clearer definitions of
objectives and supporting new management monitoring and control methods, while at
the same time leaving day- to- day management to the managers themselves. The
public sector in Kenya is faced with the challenge of poor and declining performance,
which in turn inhibits realization of sustainable economic growth. The problem of
poor performance in the public service is largely attributable to excessive regulations
and control, frequent political interference, multiplicity of principals, poor
management, outright mismanagement and bloated staff establishment. In addition to
regressing economic growth, declining performance in the service has resulted to poor
service delivery, degeneration of infrastructure and a severe brain flight. All these
issues are exhibited in the organization under this study. It was also clear from the
study that organizations sometimes squander business opportunities in terms of sales
and derived profits. This is due to the slow pace of reaction caused by bureaucratic
tendencies and rules and interference from other stakeholders. The procurement and
disposal Act, the appointment of CEO’s by the government agencies has slowed down
the performance of the organization in a great deal. From the finding, though with
aforesaid which is common to many public organizations, it is concluded that the
performance contract has been effective because it has enhance accountability,
commitment, transparency in the general running of the organization. This has led to
improved financial results for the period under review. | en_US |