FACTORS INFLUENCING IMPLEMENTATION OF PERFORMANCE CONTRACTING IN PUBLIC INSTITUTIONS IN KENYA: A CASE OF THE MINISTRY OF SPORTS, CULTURE AND THE ARTS

Performance contracting is a management tool for measuring performance that establishes operational and management autonomy between government and public agencies; it also measures performance and enables recognition and reward of good performance and sanction bad performance. The performance of the public sector has become a common phenomenon the world over especially in developing countries. Delivery of efficient and effective services to its citizens continues to be a major concern to Governments. One of the key priorities of the Kenyan Government is to implement and institutionalize public sector reforms geared towards efficiency and effectiveness in the delivery of service to the public. The study sought to investigate into the factors influencing implementation of performance contracting in the public institutions where the focus was on the Ministry of Sports, culture and the Arts. The general research objective of this study was to investigate into the factors that influence implementation of performance contracting in the public institutions. The research problem was studied through the use of a descriptive research design and adopted census sampling technique. The target population of this study was the two hundred (200) staff working at management levels at the Ministry of Sports Culture and the Arts, Headquarters in Nairobi. Both primary and secondary data was used during data collection. Data collection involved a self-administered questionnaire. Data collected was quantitative and it was analysed by descriptive analysis techniques. The findings were presented using tables, charts, percentages, tabulations, means and other central tendencies. The researcher also conducted a multiple regression analysis so as to determine the effects of the four variables on performance contracting in the public institutions in Kenya. This generated quantitative reports through tabulations, percentages, and measure of central tendency. The study found out that organizational culture greatly affected the implementation of performance contracting through the various aspects such as the composition of the PC committee, employees’ awareness and commitment. Top management commitment especially their adherence to PC procedures highly affected the implementation of Performance contracting. The regression equation shows that employee turnover, top management commitments highly influence the implementation of performance contracting in the ministry. The study concludes that various aspects of organizational culture, top management commitment, political influence and employee turnover highly influenced the implementation of performance contracting in the ministry. The study recommends that for effective and efficient implementation of PC there should be involvement and creation of awareness to all staff; proper communication channels be provided; leadership of the organization is the major drawing force in PC implementation; PC be in line with the Ministry objectives and that adequate budget should be allocated for PC implementation.