Challenges of Implementing Performance Contracting Strategy at Impact Research and Development Organisation, Kisumu County Kenya

Abstract

Performance contracting is a strategy designed to manage performance and also a distinct element of organizational reforms. Despite the importance of performance contracting strategy, challenges such as a culture of non-performance, absence of accountability and resistance to change has raised numerous questions as to whether the strategy actually helps in enhancing organizational performance. Consequently, the objective of this study was to establish the challenges of implementing performance contracting strategy at Impact Research and Development Organization. The theories that anchored this study were the Expectancy and Goal Setting Theories respectively. To address the study objective, the research collected primary data and utilized qualitative content analysis. To collect the primary data, senior managers were interviewed on the challenges faced by Impact Research and Development Organization in the implementation of Performance Contracting strategy. Content analysis was used to analyze and present the information generated from interviews and structured based on the most common themes. Based on the findings, it can be concluded that while IRDO has made efforts to implement performance contracting strategy as part of its performance management, it faces significant challenges that affect the successful execution of this strategy including resource limitations and lack of staff engagement and awareness, the complexity of aligning individual and departmental goals with organizational objectives, lack of a clear framework to allocate resources and lack of external stakeholder collaboration in the implementation of performance contracting strategy.