Assessment of performance measurement systems in operational improvement in public sector: a case of state corporations in Kenya
The study was set to establish the challenges facing implementation of Performance Measurement System in public utilities, especially the state corporations and to assess the effectiveness of Performance Measurement System in achieving operational improvement in state corporations. The study adopted descriptive research design which allowed for analysis of opinion of respondents in providing insight into the impact of the role of Performance Measurement Systems in improving operational effectiveness in state corporations. The data was analyzed using descriptive measures such as frequency, percentages, mean and standard deviation. The study found that all the state corporations use Customer based information system, Performance contracting, Quarterly management reports, Annual management reports and corporate governance as performance measurements methods. The key business processes used by state corporations to a large extent (low mean values) are Customer satisfaction surveys are conducted, Wall boxes for customers complaints and comments, The measures capture all key business process, Staff development, Use of modern performance measurement system and External stakeholders are involved in formulating performance measures and targets. While the key Challenges faced are implementation and maintaining of performance measurement systems were; unrealistic measures, high cost of system implementation and management and Poor methods of communication. The respondents unanimously agreed that their state corporations use satisfied customers, Quality of service, Relevance, Timeliness and Cost efficiency/effective as best performance indicators to differentiate themselves from other organizations.