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Factors Determining Successful Implementation of Performance Contracting In a Public Organization: The Case of National Housing Corporation

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dc.contributor.author Mbogo, Simon Njuguna
dc.date.accessioned 2020-12-17T10:51:20Z
dc.date.available 2020-12-17T10:51:20Z
dc.date.issued 2012
dc.identifier.uri http://erepo.usiu.ac.ke/11732/6336
dc.description A Project Report to the Chandaria School of Business in Partial Fulfillment of the Requirement for Degree of Masters of Business Administration (MBA) en_US
dc.description.abstract Performance-based contracting has in the last two decades received great attention as a way of improving the efficiency, quality and effectiveness of civil service delivery. The practice has emerged as a tool of public sector reform with most governments applying it as a strategy for better service output. Performance contracting has the potential to improve the effectiveness and efficiency of the public sector, while ensuring appropriate accountability is maintained for the use of public money. The degree of success of the implementation of performance contracting among various government agencies varies greatly. Whereas it has taken root and somehow succeeded in a number of agencies, implementation of performance based contracting has also been a total failure in some government bodies. The purpose of this study was to establish the factors that influence successful implementation of performance.Contracting in a public entity with a case study of National Housing Corporation (NHC). The objectives of the study included determining whether clarity of objectives, employee commitment and government policy have any effect in successful implementation of performance contracting as a strategy. Descriptive research design was used in this study. Random sampling technique was applied in selecting a sample size of 60 respondents from all staff levels at National Housing Corporation. A questionnaire which included structured (close-ended) and unstructured (open-ended) questions was distributed to the sampled respondents. The drop and pick method was used to collect data. Data collected from respondents was both quantitative and qualitative in nature. Quantitative data was analyzed using the Statistical Package for Social Scientists (SPSS) tools where frequencies, percentage as well as standard deviation guided the researcher to interpret the data. Data was interpreted using descriptive statistics such as frequencies, mean scores and the standard deviations. The findings were then presented using tables, pie charts, and bar graphs for easier interpretation. The study found that clarity of objectives among employees is a key to successful implementation of performance contracting. Employees are more productive when they understand and own the corporate goals of the organisation. From the corporate objectives,they are able to derive clear departmental and individual goals and generate appropriate tasks that will meet these objective. On comitmment of employees, study found that engaged employees tend to own the performance contracting process with desirable performance results. The study also outlined a number of measures that employees at National Housing Corporation felt engaged them to the organisation. The study also found that government policies play a key role towards successful implementation of performance contracting. National Housing Corporation being a government agency receives its overall mandate from the government. Although the government did not directly run the agency, it aimed to achieve its goal of quality housing for its citizenry through National Housing Corporation. As a recommendation then, the"' study suggests that organisations and governments need to invest in continuous training of employees to understand and agree to their individual, departmental and corporate objectives in order to succeed in implementing performance contracting. Organisations also need to employ means that will make employees feel more comitted to their roles and the organisation. Finally as a recommendation, organisations need to be aware of the government policies around perfomance management as political and legislative support is key to successful implementation of performance contracting. en_US
dc.language.iso en en_US
dc.publisher United States International University- Africa en_US
dc.subject National Housing Corporation en_US
dc.subject Public Organization en_US
dc.subject Performance Contracting en_US
dc.subject Successful Implementation en_US
dc.title Factors Determining Successful Implementation of Performance Contracting In a Public Organization: The Case of National Housing Corporation en_US
dc.type Thesis en_US


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