Challenges facing the implementation of performance contracting as a strategy at national bank of Kenya
Performance contracting both in public and private sector is aimed at improving efficiency and effectiveness in the management of the organization’s affairs. However, while this concept seems to work in many organizations in others it has been seen to fail either at the introduction or implementation stage. Therefore the purpose of this study is to assess the challenges facing the implementation of performance contracting as a strategy at National bank of Kenya. The researcher intended to establish the challenges facing the implementation of performance contracting. The study adopted descriptive research design. The study utilized both primary and secondary data where Primary data was collected through interview guides while secondary data was gathered from various authoritative sources including books, published articles, and on-line journals. The findings were presented through discussions. The study established that the challenges were discussed according to the study themes. The study found out that there is a monitoring and evaluation mechanism put in place to provide feedback on employee performance. This was done through semi-annual reviews on targets which have been deliberately designed to have measurable indicators. The review mechanism involves the employee, an appraising supervisor, a HR reviewer and finally a HR committee. Among the many recommendations, the key recommendations from the study are that the bank should provide adequate resources to determine optimal level of resources and develop clearly defined targets for all functional units.