Relational practices and performance contracts in public organizations in Kenya: A case of Kenya revenue authority
Keywords:
Effectiveness, Kenya revenue authority, performance contracts, public organizations, relational practicesAbstract
Kenya adopted Performance Contracts as a tool not only to improve performance but also to
refocus the mindset of the civil service from looking within to focusing on customers and
results. The push factor for introduction of performance contracts in Kenya is the assumption
that institution of performance measurements, customer orientation and an increased focus
towards incremental productivity and cost reduction can lead to improvements in service
delivery. The purpose of this research was to examine the performance contracts application
at the Kenya Revenue Authority as well as the efficacy of the instrument in improving
performance. The main objective was to determine the influence of Performance Contracting
processes on performance management. The study adopted descriptive design and targeted
120 employees of the organization who were based in the Head office; stratified sampling
method was used.Data was collected using a questionnaire which contained both structured
and unstructured questions. The data was analyzed by descriptive statistics such as mean and
standard deviation. Inferential statistics such as regression was also carried out. The data
analysis process was aided through a Statistical Package of Social Sciences. The data was
presented using tables and graphs. The study found out that performance contract had helped
improve service delivery in KRA and that majority of the employees had participated in
training/ sensitization workshop on performance contracting. However there was no clarity in
understanding how training needs for individual employees were arrived at.
The study also established that majority of the employees were not involved in the process of
performance targets setting. The study concludes that KRA did not involve the employees in
all stages of drawing work plans and this led to drawing targets that were not in line with
individual roles. It was also concluded that the follow up by the top management on the
implementation of the set targets was not extensive. The study recommends that the
organizations should establish and adopt performance contract system that provide
opportunities to the management in identifying staff training needs, identify performance
targets, and improve employees‘ performance. There is also need for increased training and
sensitization programmes and increased involvement of all the employees in the process
performance contracting.
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