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Performance Contracting in State Corporations in Kenya

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dc.contributor.author Mwangoka, Focus
dc.date.accessioned 2019-10-02T08:46:45Z
dc.date.available 2019-10-02T08:46:45Z
dc.date.issued 2009
dc.identifier.uri http://erepo.usiu.ac.ke/11732/4888
dc.description A Project Report Submitted to the School of Business in Partial Fulfillment of the Requirement of Masters in Business Administration en_US
dc.description.abstract The general objective of the study was to find out the factors affecting performance contracting in State Corporations. Specific objectives include: i.)To find Out the process of implementation of performance contracting in State Corporations; ii.)To examine factors affecting performance contracting in State Corporations; iii.)To find out the effects of performance contracting in the State corporations. In order to realize the objectives of the study the researcher adopted descriptive survey design. This design was adopted as the suitable research design since it facilitates the collection of original data necessary to realize the research objectives. In terms of target population, the study targeted senior managers/officers and subordinates from all state corporations that have headquarters in Nairobi. TO identify the sampling unit, the researcher utilized stratified sampling design by dividing the population into the above categories from which proportional allocation procedure was adopted in each group. In terms of data, both primary and secondary data was collected. Primary data was collected using structured questionnaire and observation method. Secondary data on the other hand, was collected from the Corporations' reports including work-plans, progress reports, quarterly and annual reports, financial reports. The research tools were pilot tested, refined before collecting the actual data. Data collected, was first audited in order to check for completeness. Thereafter, data was coded and formatted before being analyzed to obtain various in terms of frequency distributions, charts and graphs. The study established that implementation of the performance contracts entails establishment of performance targets through bottom-up approach. Further to facilitate the implementation of the performance contracts, the research shows that training was conducted for the staff involved. In terms of factors affecting performance contracting in the state corporations, various factors were identified. Among these include training, inadequate resources, limited capacity to supervise implementation of performance contracts amongst the top cadres in the corporations. Other factors relate to inadequate discussions and poor feedback from the superior in terms of the evaluations on the progress made, Lack of comparison checks on reports on performance vs. actual performance on the set targets was also of concern to the respondents. Lastly, in terms of the effects of performance contracting in the state corporations, various factors were identified. These factors range from timely service delivery, reduced customer complaints, resource utilization, revenue generation, changes in governance structures, reduction in bureaucracy among others, In conclusion, it is worth noting that performance contracting exists in State corporations and that various cadres of' staff in a way have been trained to undertake this new mode of change management. In spite of this, there exists various factors affecting the implementation process which need to be addressed to ensure the success of the program. From the report, it is clear that performance contracting is likely to contribute positively on resource utilization, governance structures and revenue generation, In the end, this will lead to efficiency which is critical in a liberalized environment in the global context. In terms Of recommendation, the researcher recommends harmonization Of the approaches in the process setting of the targets; continuous capacity building for the employees in order to enhance acquisition of the skills critical in enhancing performance under this new mode Of management, Similarly, the researcher recommends that rationalization of resources and the set targets need to be enhanced and that a reward system to be put in place for those who realize the targets while those who do not realize the targets need to be penalized with Clear provisions for performance improvement for poor performers. Lastly, continuous improvement in governance is recommended in order to enhance transparency, and accountability in not only service delivery but also prudence in resource use. en_US
dc.language.iso en en_US
dc.publisher United States International University - Africa en_US
dc.subject Performance Contracting en_US
dc.title Performance Contracting in State Corporations in Kenya en_US
dc.type Thesis en_US


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