Factors influencing implementation of performance contract among financial and commercial state corporations in Kenya
The objectives of the research were to identify factors that influence implementation of performance contracts among financial and commercial state corporations in Kenya. A sample size of 78 respondents was targeted consisting of Head of Human Resources Department and Planning Department. A response rate of 61% was achieved. The main findings showed that specific factors have great influence in the implementation of performance contracts and these were; clear communication of vision and mission of an organization to all employees, setting of specific, measurable, attainable, realistic and time bound goals, open top management support of performance contract, setting up systems of communication to enhance feedback on performance, involving Heads of Departments in the setting of targets/goals for performance contract, using strategic plans to develop performance contracts, complimenting strategic plans with performance contracts and reporting structure in place to facilitate communication of the objective of performance contract. All financial and commercial state corporations have a strategic plan which are considered extremely important and are reviewed annually. Performance contract assist in the achievement of strategic plan objectives and hence therefore, there is a strong link between performance contract and strategic plans. This study was based on a sample limited to financial and commercial state corporations. It did not cover other state corporations. Further research should be carried out to cover all state corporations. The study involved only senior managers in the various organizations and did not involve lower levels of employees. Thus the results may not fairly represent views of those employees not included in the study.