Performance Contract in Kenya as a Strategy for Improvement

1 January 2017

Performance contract is an agreement between a manager and an employee about the employee’s responsibilities and behaviors during a review period. It can also be defined as an agreement between government and a public agency which establishes general goal for the agency set targets for measuring performance and provide incentives for achieving these targets (Walts, 2003).

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In Government of Kenya public organization offer low quality service to its citizen despite the competition they opponents which are private sector, for government to make sure this habit of providing low quality service is put to an end, a step should be taken to increase the efficiency of the public enterprise and hence further drain on the country’s treasury resulting from his behaviors. Judges and teachers are refusing to sign performance contract claiming that it will divide there solidarity since it will mean that they are paid according to what they produce/contribute to the organization.

Teachers and judges claim that performance contract does not conform to there needs hence they cannot sign performance contract since it is a disadvantage to them (Abdulahi, 2008). Performance in public service can be improved by designing performance contract after carefully examining and adapting to the needs of the public sector. When it does not adopt to the particular needs of the public sector most people will not accept to sign the contract, and can be seen in Kenya by most civil servants refusing to sign performance contract (Government of Kenya, 2007).

Reasons of driving public sector while providing their service to sign up to some parameter of performance is accountability. Employees in both public and private sector on clearly defined targets, whose achievement ultimately determine their pay packages and bonus payments. According to the government of Kenya example commissioner for higher education (2006/2007), benefit of the contract would be to ensure financial sustainability, enhance and sustain staff commitment and motivation and also ensure excellent service to its citizen.

In addition to the provision of the corporation (performance contract) regulation 2004, section 4(2), commission has responded to the contract through various obligations such as setting performance criteria, preparing employees in the commission for the desired change in working styles, attitude and work ethics, signing and negotiating performance contract and by ensuring achievement of performance target.

Research show that organization which adopt performance contracting as their policy mostly reach their target and always run at a profit this is because the organizations are desirous of enhancing transparency in the management of organization resources and accountability(Frost,et al. ,2004). People usually resist changes brought about in the work place that is if a change is detected by employees this will strike resistance within the workplace, but with time they will adopt to the new changes, and with this competitive world of ours this it will enhance efficient, effective and ethical delivery of services to the citizens of Kenya.

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