Managerial Factors and Implementation of Performance Contracting Strategy among Selected County Governments of Kenya

Abstract

The goal of the performance contracts strategy is to increase service quality, enhance resource usage efficiency and institutionalize a performance-oriented culture in the public service. However, having a strategy that is well formulated is not enough unless it is properly implemented by an organization. Successful strategy implementation requires management involvement that has the resources and authority for its enforcement. The broad study objective was to assess the effect of managerial factors on implementation of performance contracting strategy among selected county governments of Kenya. Specifically, the study sought to establish the effect of organizational leadership, manager competence, communication strategy and managerial diversity on implementation of performance contracting strategy among selected county governments of Kenya. The research was anchored on the goal-path theory, strategic communication theory and upper echelons theory. A descriptive study design was applied. The 963 management staff in selected county government constituted the study target population. These were drawn from the 3 best performing counties (Makueni County, Kakamega County and Kericho County) and3 worst performing counties (Busia County, Wajir County and Samburu County). A sample population of 126 respondents was chosen through stratification method. A questionnaire was adopted in the collection of primary data. The study found that unified vision/enhancing team-work affects implementation of performance contracting strategy among selected county governments of Kenya very greatly. Further, the research found that ethnic and gender diversity affect the implementation of performance contracting strategy among selected county governments of Kenya to a moderate extent. The research also established that dissemination strategy; style; and consensus affect implementation of performance contracting strategy among selected county governments of Kenya to a moderate extent. Moreover, it was confirmed that diverse expertise; neuroticism; and increased creativity affect implementation of performance contracting strategy among selected county governments of Kenya to a great extent. It was concluded that managerial diversity (r=0.653, p=0.000) had the greatest effect on implementation of performance contracting strategy among selected county governments of Kenya, followed by organizational leadership (r=0.128, p=0.004), then communication strategy (r=-0.151, p=0.000) while manager competence (r=-0.194, p =0.009) had the least effect on the implementation of performance contracting strategy among selected county governments of Kenya. The study recommends that the county governments’ leadership to put in place mechanisms for rewarding high performers whose target achievement is above expectation and reprimand those employees whose performance is below expectation. The study also recommends that in future, the county governments management revises the organizational targets and identify the cross cutting indicators that could be shared evenly among the relevant divisions to avoid overload on one division.