Perceived relationship between performance contracting and employee performance at agricultural development corporation

Abstract

This project is Human Resource Management research project .It is a survey carried out at Agricultural Development Corporation (ADC). The objective of the study was to find out perceived relationship between Performance Contracting and employee performance. Numerous literature is available relating to Performance contracting however, there is no study that has been done on relationship between performance contracting and employee performance in the agricultural sector and more specifically at ADC. The study adopted survey research design. The population of the study was employees at ADC. Due to the high number of target population, it was necessary to carryout sampling. The study used stratified random sampling to arrive at an appropriate sample size, in this case, respondents were stratified as management, supervisory and clerical. The data collected was analyzed and presented by use of frequency tables, percentages, mean and standard deviation with appropriate interpretation. The survey findings indicate that Performance contracting was used at ADC and that there was a positive relationship between PC and employee performance as perceived by employees. Majority of respondents agreed that the performance of employees had improved with introduction of Performance Contracting. The survey concludes that Performance contracting is indeed an effective tool for performance improvement. It motivates employee performance especially when reward is linked to good performance. The survey however recommended that there was need to train all employees on PC and cascade it down to all cadres if it has to be understood, embraced and used effectively throughout the organization. Moreover, organizations need to look into other factors that could affect employee performance to ensure a wholesome approach to management of employee performance. The study recommends that further studies be carried out to find out the relationship between Performance Contracting and other Human Resource variables such as staff motivation. It also recommends that the same study be undertaken in other government agencies as well as private companies to see if similar results shall be obtained.