By Ndobi, M; Oloo, C (2022).

Greener Journal of Business and Management Studies

Vol. 11(1), pp. 01-13, 2022

ISSN: 2276-7827

Copyright ©2022, the copyright of this article is retained by the author(s)

https://gjournals.org/GJMBS

 

 

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Influence of Performance contracting on Performance of County Government of Siaya

 

 

Ndobi Martin; Oloo Caroline (PhD)*

 

 

County Government of Siaya, Email: luthermak@ gmail. com; Phone:- +254721237269

Lecturer, Department of Business Administration, Maseno University, Kenya. Email: coloo11@ gmail. com, Phone: +254722269128

 

 

 

ARTICLE INFO

ABSTRACT

 

Article No.: 082822074

Type: Research

Full Text: PDF, HTML, PHP, EPUB

 

Performance contracting’s role is to improve results of public sector’s service delivery. However, with performance enhancements in certain areas such as the banking industry and the educational sector, Siaya’s County Government continues to grapple with concerns like perennial cases of poor training as well as the absence of relevant expertise in service delivery. Past studies have zeroed in on aspects impacting performance contract schedules and how it impacts the success of an institution. The aim of this study was to determine the influence of target setting on efficiency of employees; the influence of performance measurement on efficiency of employees; to assess the influence of performance reinforcement on efficiency of employees in County Government of Siaya. Target population totalling 1783 comprised staff from Siaya County Government and (N-326) participants were sampled using Yamane formula. Questionnaires were used to collect quantitative data and analyzed through descriptive and Regression statistics. The reliability of questionnaires tested on pilot data targeting 32 respondents revealed α above 0.70.

 

Accepted:  03/10/2022

Published: 17/10/2022

 

*Corresponding Author

Dr. Oloo Caroline

E-mail: coloo11@ gmail. com

Phone: +254722269128

 

Keywords: Performance contract, Target Setting, Performance Measurement, Performance Reinforcement.

 

 

 

 


1.     INTRODUCTION

 

The public sector continues to be the global leader in service delivery (Kobia & Mohammed, 2006) therefore, adjustments into its positivity changes the lives of millions. As a result, it is the responsibility of governments to ensure that the citizens are offered services satisfying their individual concerns. Citizens normally seek state services that appear relatively easy to process, access and manage (Duggan & Green, 2008). Through performance contracting, a structure is provided towards creating a certain tradition in the manner of delegated leadership levels that pay attention to results instead of   activities (Nganyi et al., 2014). Based on this, the position by institutional leadership is that performance contracts are an important tool for the articulation of institutional goals and further complement a new leadership supervision and monitoring approaches even as the role of daily managing the institution’s process is delegated (Kobia & Mohammed, 2006; Obongo, 2009; Sifuna, 2012; Muriu, 2014).

 

2.     Target Setting and Organization Performance

 

The outcomes of representation diminishing on the working of nation organization in Kenya that most of the agencies make it a must for workers to inscribe working agreements prior to starting off their tasks (Kago, 2014). Inventories indicated that there was a powerful good connection between agencies and governance presentation and the execution of working diminishing. This therefore indicates that work diminishing has had a good effect on both venturing and governance at the nation organizations in Kenya.

 

3.     Performance Measurement and Organization Performance

 

Work weighing system is a very crucial thing to be conducted by the agency in order to advance agency representation. On the way to advance the representation of worker, the agency requires to be alert to the rewards given to workers for the outcomes of their work, namely by giving refreshments. Founded on the hypothesis therein no global regulating system that is always approximate to relay to the whole agency in every instance (Fisher,2019). Influence of work agreement on agencies representation Solomon (2012) expressed that work diminishing influences service standard approximation and continuity and worker creativity to a great mile. Okech (2017) analyzed the effects of work diminishing on adequacy in productivity in civil service relayed existence of a good and powerful connection betwixt representation diminishing and approximation in distribution of service utilization and provision among others in comparison.

Working agreements raised the employees’ duties, obligations, and responsibility and that the employees were thrilled about work agreements, and on the other hand the inventories of the research on elements affecting conducting of work diminishing in public facilities in Kenya by Arimis illustrated that agency ethnicity largely influenced the conducting of work diminishing. More so, the inventories of a research of the influences of work agreement on productivity by Ngetich (2013) relayed that work diminishing developed productivity. Inventories of the research on the effects of representation governance practices on work diminishing results by Odekaet et al. (2017) suggests that staff advancement, work strategies ang funding allocation has good and important influence on diminishing results.

 

4.     Performance Reinforcement and Organization Performance

 

Implementing works have good influence on the worker conductivity and stimulation and overall representation (Boetang, 2014). A research printed in intercountry report of study in 2013 research illustrated that coaching for both new and existing workers in reality advances work and overall conductivity (Ma, 2013).  To enhance a positive communicative doctrine in an agency, there must be plain techniques for triumph, important response and providing workers challenging, important tasks. Worker innovativeness largely affects worker service delivery since they have the potential to raise great thoughts that are a benefit to the agency.  These creative thoughts comprise advancing new methods or techniques for finishing duties or targeting products or services that raise client contentment (Berg et al., 2013). Creative thoughts may also comprise proofreading existing methods or techniques in order to enhance facilitated influence. When workers utilize innovative thoughts to advance their tasks techniques, it leads in the progression of the entire facility. Worker task can be looked upon in the sense of results or habits, and can be weighed in opposition to the work quality laid by the agency. These measures comprise service delivery, enhancement, and profitability and standard while enhancement is provided the expected results use of little inputs enhancement is the ability of a worker to get the laid objectives.

 

 

Theoretical Review

 

The science of performance based contracting is supported by Goal setting hypothesis, eagerness hypothesis, and McGregors,s hypothesis X and Y. In 1960, s Edwin Locke proposed the intention hypothesis of stimulation. This hypothesis declares that intention is basically associated to duty presentation. It expresses that particular demanding objectives alongside with suitable response come up with lofty and finer duty presentation. The objective hypothesis expresses that workers are prompted by transparent objectives and suitable response. That operation towards an objective contributes a crucial origin of stimulation. Demanding and particular objectives go along with response contributing to lofty magnitude of solitary straight persons attempts and vitalities in a specific order.

 

The objective hypothesis is hence applicable to this research as duty diminishing is suspected on intentions. Workers are assessed on the objectives they have placed before them which make the foundation of duty diminishing. Additionally, the hypothesis substantiates that particular and hard objectives are to be achieved frequently give on to lofty duties than when workers plainly endeavor to perform. The immediate solitary attempts as well as vitalities are firmly affected by such objectives heading a specific order. There exist, hence, a undeviating connection betwixt in what way particular and hard an objective is and the presentation of a duty by a person.

 

Presentation diminishing was substantiated by the anticipation hypothesis which was progressed by locke in the year 1968. The hypothesis was founded on the element’s presentation results anticipation, ability as well as achievement anticipation. Presentation results cover an individual outlook which payment is firmly restrained to the degree of presentation. For instance, a worker who is reasoning of enlarging the production might anticipate that enlarging the production could lead in exalt, increased wages or may be no prize totally; workers might surprisingly await malice from other workers.

 

Anticipation hypothesis asserts that then attempts of a person to present in a definite manner is reliant on the magnitude of the anticipation that alike presentation would be escorted by a result as well as on the allurement of alike result to the person. The anticipation hypothesis is relevant in county governments as it inspires workers to exercise lofty magnitude of labor once they trust that the labor will give on to a presentation assessment, direction to prizes like gratuity, advancement, wage increment and that the prize will please the workers individual objectives.  

 

McGregor (1960) advanced the hypothesis to express executive’s insight of assistants. It’s founded on various presumptions on persons and labor. McGregor names the presumptions hypothesis X and Hypothesis Y. Hypothesis X that suggests that individuals merits safety therefore choose undertaking orders against duties. Executives who embrace this hypothesis incline to jurisdiction and control of workers. The main presumptions of hypothesis Y are that individuals potential to self-govern and become creative once well stimulated. The stimulation might comprise right working surroundings, inducements, an arrangement of the two personal and company objectives etc. Onen & Osso (2008) expressed hypothesis X suggests that the overall worker could utmost provide at the mercy of firm control and agitation of punishments for negligence. Furthermore, hypothesis Y recognizes workers as determined and ready to develop and undertake duties and hence the finest technique to control them is minimal control via assignment of authority and liability. This hypothesis hence recommends for worker uplifting on representation development resulting to their withholding.

 

The objective hypothesis is hence applicable to this research as representation diminishing is suspected on intentions. Workers are assessed based on the objectives they have laid down on their own which makes the origin of representation diminishing. . The anticipation hypothesis is relevant in county governments as it inspires workers to exercise lofty magnitude of labor once they trust that the labor will give on to a presentation assessment, direction to prizes like gratuity, advancement, wage increment and that the prize will please the workers individual objectives.  Hypothesis X that suggests that individuals merits safety therefore choose undertaking orders against duties. The main presumptions of hypothesis Y are that individuals potential to self-govern and become creative once well stimulated. This hypothesis is hence applicable in resolving the effect of governance devotion and organizer involvement on the execution of presentation diminishing in county government.

 


 

 

Fig 1: Research Model

 


 

 

Based on the discussions, the hypotheses of this study are:

 

H1: There is no significant relationship between target setting and performances of County Government of Siaya.

H2: There is no significant relationship between performance measurement and performance of County Government of Siaya.

H3: There is no significant relationship between performance reinforcement and performance of County Government of Siaya.

 

 

5.     MATERIAL AND METHODS

 

In order to measure the model variables and test the research hypotheses, the option methodological method used is that of a questionnaire survey. The study was proceeded by an explanatory design aimed at understanding the process that relates the link between Target setting, performance measurement and performance reinforcement on performance within the county organizations. To do this, we have opted for the following approach: an explanatory study.

 

Quantitative Study

 

In order to generalize our findings, we propose to test our hypotheses on a sample of Kenyan government employees in Siaya County.

 

Sample and Data Collection

 

We administered 326 questionnaires. The target population interviewed is made up of employees working in Siaya County offices. The themes related to job satisfaction, performance evaluation and employee efficiency were included in the questionnaires. Using this data, we proposed a model that allowed us to test the extent of target setting, performance measurement and performance reinforcement on organizational performance.

 

Model Presentation

 

This article seeks to study the influence of target setting, performance measurement and performance measurement on organizational performance. This relationship will be tested on a general regression equation as posed in the following model.

 

Y = β0+β1Xi + β2X2 + β3X3 +έ

 

Where Y = Organization performance

 

β= Constant (regression coefficient)

β1, β2, β3 = Coefficients of predictors (Target setting, performance measurement, performance reinforcement)

X1, X2, X3 = Independent Variables (Target setting, performance measurement, performance reinforcement)

έ = Error term.

 

 

6.     RESULTS AND DISCUSSION

 

6.1 Reliability Analysis

 

In determining reliability, Cronbach’s   Alpha was applied since it accesses internal consistency by ascertaining if specific instruments in a scale indicate a similar construct validity. An ideal Alpha score ought to be 0.7, Cooper & Schindler (2003).  Based on illustrations detailed below in table 1, reliability was ideal across the four scales since their scores surpassed the desirable standard of 0.7 and above. Therefore, conclusion can be reached that the instrument could be relied on.

 


 

 

Table 1: Reliability Analysis

Determinant                    

No of items

Cronbanch’s

Verdict

Performance target setting

5

. 701

Reliable

Performance measurement

5

. 828

Reliable

Performance reinforcement

5

. 728

Reliable

Organization performance

5

. 703

Reliable

Source: Researcher (2022)

 

 


From the detailed Cronbach’s   Alpha scores, there was consistent performance of the data collection tool since the figures exceeded the ideal score of 0.7 and above.

 

6.2 Descriptive Results

 

This section presents descriptive analysis findings on the independent variables (performance target setting, performance measurement and performance reinforcement) and dependent variable (organization performance) of the study.

 

6.2.1 Organization Performance

 

Participants were required to state their affirmation levels based on the question with regards to organizational performance. Deductions are detailed below in table 2.

 


 

 

Table 2: Descriptive Statistics for Organization Performance

 

 

N

Mean

Std. Deviation

Performance contracting has improved employee productivity (output)

310

3.9032

1.11926

Our company plans on organization performance improvement

310

3.9032

.77813

Our human resources has influenced organization performance

310

3.4516

.79800

Our service delivery has improved over the last five years

310

3.1935

1.03089

Organization performance has improve as a result of the use of retention strategy

310

3.2581

1.50442

Valid N (list wise)

310

 

 

Source: Reseacher (2022)

 

 


The analysis in table 2 shows that the majority who scored the highest mean of 3.90 and a standard deviation of 1.11 agreed that Performance contracting has improved employee productivity (output). This was closely followed by those who agreed that Our Company plans on organization performance improvement at a mean of (3.90) and a standard deviation of (0.77). Furthermore resopndents agreed that our human resources has influenced organization performance with a mean of (3.45) and a standard deviation of (0.798). Our service delivery has improved over the last five years at a mean of (3.19) and a standard debviation of (1.03).

 

6.2.2 Influence of Performance Target Setting on Organization Performance

 

The respondents were requested to show their level of agreement with the statements in relation to influence of performance target setting on organization performance. The results are as shown in table 3.

 


 

Table 3: Influence of Performance Target Setting on Organization Performance

 

 

N

Mean

Standard deviation

 

 

Clear role of employees enhance job efficiency

 

310

3.5806

1.10234

 

Management support is crucial to job flexibility

 

310

3.4839

1.01353

 

Availability of time has enabled staff to accomplish their duties

 

310

3.4516

1.21583

 

Job satisfaction is enhanced by employee participation in target setting

 

300

3.4000

1.08501

 

Faster and effective time processing is dependent on SMART goals

 

310

3.0968

1.08996

 

Source: Reseacher (2022)

 

 


Performance target setting has been acknowledged to be one of the factors that influence employee performance in County government of Siaya. The analysis in table 3 above shows that the majority who scored the highest ( M=3.58, SD=1.10) agreed that clear role of employees enhance job efficiency. This was closely followed by the management support is crucial to job flexibility (M=3.48, SD=1.01). Futher more resopndents agreed that availability of time has enabled staff to accomplish their duties with ( M=3.45,SD=1.21), and management support is crucial to job flexibility (M=3.40,SD= 1.08). Job satisfaction is enhanced by employee participation in target setting (M=3.40,SD=1.08).This finding agrees with Ngetich (2013) who found out that performance target setting has enhanced service delivery in the Nakuru Sub County.

 

The study further agrees with Kinanga et al (2013) Performance of information utilized detailed data such as modes and rates and inwards data utilized were using Pearson correspond, and important and orderly method. The inventory commenced the living big relation betwixt representation aim and worker representation. But the research inventories can’t be common in County government of Siaya,

 

Kago (2014) found that representation diminishing affected both the venture and governance representation at the nation agencies in Kenya. Inventories moreover indicated that there was a  powerful good connection betwixt agencies and governance presentation and the execution of working diminishing. It can hence be climaxed that work diminishing has had a good effect on both venturing and governance at the nation organizations in Kenya.

 

In the research of influence of enhancement of work diminishing on productivity at JKUAT by Sifuna (2012) made via a detailed cross section method. The research embraced the randomly picked to choose sixty staff members and a hundred schoolers. The person conducting the study was then examined using detailed data. From the outcome, the research ended that since the work diminishing was let in, there has ben quick answers to clint questions and challenges, Clients enjoy bigger adequacy and regulation, Moreover this research does not particularly relay relation betwixt aim relaying and agency work in County government relaying that the recent research tend to express the wise gap. A research by Nyongesa et al (2012) on the influence diminishing on productivity of chosen nation agencies in Uasin Gishu County embraced detailed survey study method. The study advised that nation agencies and other firms should found the testing of their workers working on their attainment and get the gaps that causes influencing the work, they should advance and relay plans that promote change in ethnicity.

 

 

6.2.3 Influence of Performance Measurement on organization Performance

 

The respondents were requested to show their level of agreement with the statements in relation to organization performance. The results are as shown in Table 4.

 


 

Table 4: Influence of Performance Measurement on Organization Performance

 

N

Mean

Standard Deviation

 

There is adequate use of evaluation and performance contract tools

310

4.3548

.54258

 

There is proper understanding of evaluation methods

 

310

4.3226

.64297

 

 

There is continuous monitoring and evaluation

 

310

3.9677

.96823

 

The appraiser influences Results of M&E are influenced by

310

3.7097

.88838

 

Evaluation system is fair to all

310

3.4516

1.10423

 

Source: Reseacher (2022)

 

 


Performance measurement has been acknowledged to be one of the factors that influence employee performance in County government of Siaya. The analysis in table 4 above shows that all the respondents in the category agreed that; performance contract and evaluation tools are used adequately, (M=4.35, SD=0.54), Methods of evaluation and on performance contracting are well understood (M=4.32, SD=0.64), there is continuous monitoring and evaluation (M=3.96, SD=0. 96). Results of M&E are influenced by the appraiser (M=3.70, SD=0.88), and Evaluation system is fair to all (M=3.45, SD=1.10). This finding agrees with Lee & Gils (1999) found out that the performance measurement increased the worker’s responsibilities, commitment and accountability and that the workers were enthusiastic about performance contracts.

 

Influence of work agreement on agencies representation by Solomon et.al (2012) expressed that work diminishing influences service standard approximation and continuity and worker creativity to a great mile. While the research by Gakure et.al (2013) on representation diminishing relayed the enhanced of worker in productivity in Kenya. A research by Okech (2017) on the effects of work diminishing on adequacy in productivity in civil service relayed existence of a good and powerful connection betwixt representation diminishing and approximation in distribution of service utilization and provision among others in comparison, Nyongesa et al(2012) on their research on conducting of work diminishing invented that the human resource governance was not active to improve the conducting of work diminishing.

 

More so, inventories of the research on the effects of representation governance practices on work diminishing results by Odeka et. al (2017) relayed that staff advancement, work strategies ang funding allocation has good and important influence on diminishing results. The inventories of the research an assessment on the influences on the diminishes on workers service delivery  relayed that teaching, promotion, refreshments, order and rules affected workers service delivery. The inventories of the research of a test of the influence diminishing in a influencing instrument in the governance of works. Also the research of  test of the representation diminishing on agency work by Javan Mwiti Nguthuri (2013) relayed that work diminishing really raise overall influence in facilities to a wide  mile.

 

Another research  by Olive  Nelima Sifuna (2012) on the believed influence of work agreement ended that since the  work agreement was let in three has been quick response to client questions and challenges, clients enjoy bigger regulation. Physiological enhancements may raise new ideas to this negotiation. Provided the potential of the latter to influence persons insight, it is vital to get the outcome of regulations on contentment, which result to habits that are more to their desires and positive outcomes for the agencies. The outcomes of the research illustrate that the traits of a PMS influence the stimulation of persons, so that the conducting systems with enhancing traits can attribute to workers insights of their regulations over as well as their conductivity in their tasks. In the structural scheme of the SSC, the method in which the pms are grounded can prevent able negative outcomes from lower structures in workers insights of physiological empowerment.

 

6.2.3: To assess the role of Performance reinforcement on Employee Performance

 

The respondents were requested to show their level of agreement with the statements in relation to performance reinforcement. The results are as shown in table 5.

 


 

 

Table 5: Performance Reinforcement and Employee Performance

 

N

Mean

Standard Deviation

 

The rewards offered to the employees are comparable with the market offers

310

3.7097

1.14325

 

Rewards for exceptional performance exist in the organization

310

3.4194

.90929

 

The medical scheme offered to the employees is comparable to what is in the market

 

310

3.4194

1.01044

 

Because of my work, I feel I am valued by my employer

310

3.3548

.97038

 

Employees have the freedom to make decisions

310

3.3871

1.09950

 

Source: Author (2022)

 

 


Performance Reinforcement has been acknowledged to be one of the factors that influence employee performance in County government of Siaya. Majority of the respondents agreed that the rewards offered to the employees are comparable with the market offers (M=3.70,SD=1.14). Rewards for exceptional performance exist in the organization (M=3.41,SD=0.90). The medical scheme offered to the employees is comparable to what is in the market (M=3.41, SD=0.91), and employees have the freedom to make decisions, (M=3.38, SD=1.09).

 

In regard to Armstrong (2012) worker conductivity is a demanding task in a facility. The worker is usually let in and appraised in the agency’s goals and mission. The worker keeps their target on that to be gotten, has the potential to be enhanced with input and skill, gets enough and constructive response, more so whenever they exceed or advance aims, they are commended, recognized and possibly gifted. Study of workers insights diminishing by Nyongesa et al.  (2012) commenced that workers think positively of PC as crucial in improving enhancement administration but face the problem of insufficient input and lack of possession. While in the research of the theory of work diminishing Mbua and Sarisar (2013) the findings relayed that upholding work profits is gotten from the PC is mid to enhancing nation sector productivity and raised efforts must be conducted to enhance upholding’s. While consistently advancing nations donations. Problem encountered by conducting the representation diminishing by Nyongesa et al (2012) invented that the employees were thrilled about work agreements. From the ongoing research is is clear that a number of the investigations have concentrated on the enhancements of work diminishing on agencies work and on the element that affect the conducting of work diminishing. Other  researches were conducted on the work diminishing in enhancing  effectiveness of representation and work diminishing on the enhancement on productivity so there is no research that have been implemented on the attribution of work  diminishing to enhancement of Workers.

 

7.0:  Hypothesis Testing

 

This section of the study presents findings on regression, analysis of variance and co-efficient of determination.

 

7.1 Relationship between Independent Variables

 

This section shows the relationship between dependent variables and independent variables and among themselves.

 


 

Table 6: Relationship between Independent Variables

 

Correlations

 

DEP

V1

V2

V3

DEP

Pearson Correlation

1

.236**

.428**

.147*

Sig. (2-tailed)

 

.000

.000

.010

N

309

304

304

306

V1

Pearson Correlation

.236**

1

.255**

.439**

Sig. (2-tailed)

.000

 

.000

.000

N

304

305

301

302

V2

Pearson Correlation

.428**

.255**

1

.200**

Sig. (2-tailed)

.000

.000

 

.000

N

304

301

305

302

V3

Pearson Correlation

.147*

.439**

.200**

1

Sig. (2-tailed)

.010

.000

.000

 

N

306

302

302

307

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

Source: Research Data (2022)

 

 


The findings in the table 6 indicate that there is a positive correlation between performance target setting and organization performance in the County government of Siaya, at significant 0.01 level, the strength is average, at 23.6%. The same findings show that there was a positive correlation between performance measurement and organization performance in County government of Siaya at significant 0.01 level, the strength is though strong, at 42.8%. The findings continue to signify that there is a positive correlation between performance reinforcement and performance of County government of Siaya at significant 0.05 level, the strength is though average, at 14.7%.

 

7.2: Relationship between Dependent and Independent Variables

 

This section shows the strength of relationship between dependent variables and independent variables

 


 

 

Table 7: Model Summary

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.445a

.198

.190

.73857

a. Predictors: (Constant), V3, V2, V1

 

Source: Research Data (2022)

 

 


Referring to table 7, the study establishes the adjusted R2 to be 0.190 implying that 19%, of organization performance in County Government of Siaya, is explained by performance target setting,  performance measurement, and performance reinforcement leaving 81% unexplained. This implies to some extent that there is explanatory power for the whole regression. Therefore future researchers should carry studies to find out other factors (81%) influencing organization performance other than (performance target setting,  performance measurement, and performance reinforcement) affecting employee performance in County government of Siaya, These results are also in tandem with Elloy (2012) who state that, performance target setting,  performance measurement, and performance reinforcement provides the opportunity to explore organization performance.

 


 

 

Table 8: Relationship between Independent Variables

 

ANOVAa

 

Model

Sum of Squares

df

Mean Square

F

Sig.

 

1

Regression

41.290

3

13.763

25.231

.000b

 

Residual

166.917

306

.545

 

 

 

Total

208.207

309

 

 

 

 

a. Dependent Variable: DEP

 

b. Predictors: (Constant), V3, V2, V1

 

Source: Research Data (2022)

 

 

The probability value of p<0.00 indicates that the regression relationship was highly significant in predicting how performance target setting, performance measurement, and performance reinforcement influence performance of County government of Siaya.

 

 

Table 9: Relationship between Dependent and Independent Variables

 

Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

B

Std. Error

Beta

1

(Constant)

.730

.331

 

2.206

.028

V1

.143

.062

.132

2.288

.023

V2

.509

.070

.389

7.321

.000

V3

.015

.075

.011

.198

.843

a. Dependent Variable: DEP

 

Source: Research Data (2022)

 

 


As per the SPSS generated table above, the equation (Y = B0 + B1X1+B2X2+B3X3 +e) becomes Y = 0.73+0.143X1+0.509X2+0.15X3 and individual significance of the predictor variables was tested using t- test.

The findings showed that if all factors (performance target setting, performance measurement, and performance reinforcement) were held constant at zero, Organization performance of County government of Siaya was 0.73.

The findings presented also show that taking all other independent variables at zero, aunit increase in performance target setting would lead to a 0.143 increase in organization performance of County government of Siaya.

 

The findings also show a unit increase in performance measurement would lead to a 0.509 increase in organization performance of County government of Siaya.

 

Further, the findings show that a unit increase of performance reinforcement would lead to a 0.15 insignificant increase in organization performance of County government of Siaya with p- value 0.843 > 0.005. The null hypothesis that there is no significant relationship between performance reinforcement and organization performance of County government of Siaya was accepted.

 

On the converse, the null hypothesis that there is no significant relationship between target setting and organization performance of County government of Siaya was rejected (significant p- 0.023 < 0.05).

 

Similarly, the null hypothesis between performance measurement organization performance of County government of Siaya was rejected (significant p- Value 0.000 < 0.05). the findings are in tandem with the findings of the study done by Mbuthia, Ngari and Mwangi (2014) who found out that performance contract affects the effectiveness of service delivery by 47.7%. (r = 0,477)

 

 

8.0: CONCLUSIONS AND IMPLICATIONS FOR MANAGEMENT

 

8.1 Performance Target Setting and Organization Performance

 

Generally, the reviewed empirical studies provide adequate evidence to suggest that organizational performance is influenced by performance target setting. The present study endorses the fact that responsibility and understanding   of managers in executing target setting role. This assertion is buttressed study findings by Locke et al. (1991) that effective leaders need to exhibit management and administrative skill that spells out target setting. This variation in specific and general goals Bradley et al. (1999) suggests that goal setting is a management process in the organizational hierarchy. Hierarchy goals and individual goals forms a central focus in ensuring employee performance. The study findings reveal that setting goals for employees ensures peak performance in the organizational setting.

 

The study notes that performance contracting influence employee performance. The management of the County government of Siaya, the study recommends that every employee must sign a performance contract. Nevertheless, the organization should not only rely on performance contracts as the only performance management tool to gauge overall organizations’ performance. Organizations need to incorporate other performance management tools such as professional development planning, balanced score card, coaching and feedback as well as self-evaluation assessments.

 

8.2   Performance Measurement and Organization Performance

 

Planning for decision making and performance measurement enhance employee productivity in the organization. Therefore, the employees should not just be recognized given the duration of time they have worked in an institution. They should be recognized based on their contributions towards organizational growth through innovative ideas. In the County government of Siaya performance measurement should not be used just as a promotional tool. The County government of Siaya pay based on seniority has resulted to imbalance in remuneration.

 

The national and county governments, regulators and policy makers should be cautious while drafting the performance contracts as well as the implementation of performance contracts in County governments in Kenya. In exactitude county governments should ensure continuous improvement and evaluation of strategic plans, performance measurement factors autonomy in determination of success in performance contracting implementation in the County governments in Kenya. In addition to adoption of international practice as well as professional expertise. The county government ought to adopt international practice in appraising, implementing and drafting, performance contracting in the County governments in Kenya.

 

8.3 Performance Reinforcement and Organization Performance

 

Performance reinforcement as concluded by the study enable’s adequate professional development among the employees hence betterment of employee performance. In order to decrease or increase the behaviors of employees’ performance reinforcement theory is normally applied. Reinforcement theory is an instrument used by managers to increase or decrease employees’ behaviors. Since staff motivation is integral in monitoring organization performance as well as employee productivity there should be an in-depth comprehension of performance reinforcement theory. Organizations can perform better through encouragement of positive performance reinforcement techniques. The employees should be encouraged to improve in their individual performance based on the need of achievement reward policies. There should be both extrinsic or intrinsic rewards and a combination of the two. The study recommends that employee rewards should be verbal empowerment, flextime benefits as well as employee empowerment. When employees’ hard work is paid off employee’s level of satisfaction is buttressed. The study further concludes that punishment should be utilized to eliminate unwanted behaviors. It is an effective approach especially when eliminating bad behaviors. Moreover, managers need to employ a consequence-based technique in the management of team of staffs as well as individuals.

 

The management of contracts in the public service, culture of management that is performance oriented. Organizational culture that encourages that empowerment of employees’ staff to accommodate change is useful in ensuring organization performance. An integration of financial and human resource management targeting employee performance ought to be developed. Solid performance measures and clear definition of performance outputs ought to be put in place. The implementation should be bolstered by well-structured training programs for the public servants.

 

This study has focused on assessing influence of performance contracting on performance of County Government of Siaya. Because of limitations that were highlighted earlier the research could not address all the challenges. Studies ought to be carried out to ascertain other factors influencing employee performance in Kenya because the present study explains 61.9% only. Such a study ought to be conducted in other counties as well to establish variations in findings.

 

 

REFERENCES

 

Arimi, C.K., et. al. (2017). Factors Influencing Implementation of Performance Contracting in Public Institution in Kenya: A case of the Ministry of Sports, Culture and the Arts. International Journal of Business Management & Finance 1(12), 192-211.

Armstrong, M. & Baron, A. (2004).Managing performance: performance management in action. London: Chartered Institute of Personnel and Development

Boateng, A.A. & Boateng G.O. (2014). Assessment of the effectiveness of Ghanaian microfinance institutions in promoting entrepreneurs in Accra Metropolis. Research Journal of Finance and Accounting. 5(6), 15 – 22

Cooper, R.D. & Schindler, S.P. (2003) .Business Research Methods, 8th (ed.) Irwin: McGraw hill

Duggan, M. & Green, C. (2008). Transforming Government Service Delivery: New service policies for citizen-centered government.

Fisher, L. (2019Global challenges: personal reflections on the Stockholm “New Shape” competitionJournal & Proceedings of the Royal Society of New South Wales151213231

Gakure, R.W., Muriu, S.M.  & Orwa, G., (2013). Role of Performance Contracting in Enhancing Effectiveness of Performance in the Civil Service in Kenya, State Department of Infrastructure, IOSR Journal of Business and Management, 14(6), 73-82.

Kago, A. W. (2014). The Effects of Performance Contracting on the Performance of State Corporations in Kenya. International Academic Journals, 1(1), 1-19.

Kinanga, R.O., & Partoip, S., (2013). Effects of Target Setting in Performance Contracting on Employees Performance in Kenyan Public Enterprises. 20th IBIMA Conference, Kuala Lumpur, Malaysia, 25-26.

Kobia, M. & Mohammed, N. (2006). The Kenyan experience with performance contracting: African Association for Public Administration and Management, 28th AAPAM Annual Round table Conference, Arusha, Tanzania.

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Mbua, P., & Sarisar, J. O. (2013).Challenges in the implementation of performance contracting initiative in Kenya. Public Policy and Administration Research, 3(2), 44 – 61.

Mbuthia, R.N., Ngari, J.M., & Mwangi, B. (2014). Effectiveness of Performance Contracting in Public Institutions in Nakuru County – A Case Study of the Provincial General Hospital.

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APPENDIX 1

 

SECTION A: DEMOGRAPHIC INFORMATION (TICK ONE) (√)

 

1) What is your gender? [  ] Male   [ ] Female  

2) Age in years [  ] Below 25     [  ] 26 – 35 [  ] 36 – 45 [ ] Above 45  

3) What is your highest academic qualification?  

 

[  ]Certificate [  ] Diploma      [  ] Degree     [  ] Masters  

 

[  ]Others(specify) _____________________

 

 

SECTION B: CONTRIBUTION OF PERFORMANCE CONTRACTING TO EFFICIENCY OF EMPLOYEES OF COUNTY GOVERNMENTS

 

Performance target setting

 

What is your opinion of the following statements about performance target setting with respect to efficiency of employee in County government of Siaya? (Indicate the appropriate variable by putting a tick [√]. 1=Strongly Disagree, 2=Disagree, 3=Not sure, 4=Agree, 5=strongly agree) 

 

 

 

 

S/No.

 

 

 

Target Setting Statements

Strongly Agree 

Agree 

Not Sure 

Disagree

Strongly Disagree

1.

Clear role of employees enhances job efficiency

 

 

 

 

 

2.

Management support is crucial to job flexibility

 

 

 

 

 

3.

Availability of time has enabled staff to accomplish their duties

 

 

 

 

 

4.

Job satisfaction is enhanced by employee participation in target setting

 

 

 

 

 

5.

Faster and effective time processing is dependent on SMART goals

 

 

 

 

 

 

Performance measurement

 

To what extent does performance measurement enhance the following in the County Government of Siaya?  Indicate the extent to which you agree or disagree with the following statements

 

 

 

 

S/No.

 

 

 

Performance measurement Statements

Strongly Agree 

Agree 

Not Sure 

Disagree

Strongly Disagree

1.

There is adequate use of evaluation and performance contract tools

 

 

 

 

 

2.

There is proper understanding of evaluation methods

 

 

 

 

 

3.

There is continuous monitoring and evaluation

 

 

 

 

 

4.

The appraiser influences Results of M&E are influenced by

 

 

 

 

 

5.

Evaluation system is fair to all

 

 

 

 

 

 

 

Performance reinforcement.

 

Do you agree with the following statement regarding rewards in the organization? Indicate the extent to which you agree or disagree with the following statements.

 

 

 

 

S/No.

 

 

 

Performance reinforcement Statements

Strongly Agree 

Agree 

Not Sure 

Disagree

Strongly Disagree

1.

The rewards offered to the employees are comparable with the market offers

 

 

 

 

 

2.

Rewards for exceptional performance exist in the organization

 

 

 

 

 

3.

The medical scheme offered to the employees is comparable to what is in the market

 

 

 

 

 

4.

Because of my work, I feel I am valued by my employer

 

 

 

 

 

5.

Employees have the freedom to make decisions

 

 

 

 

 

 

 

Organization Performance

 

 

 

S/No.

 

 

 

Employee Efficiency

 

Strongly Agree 

Agree 

Not Sure 

Disagree

Strongly Disagree

1.

Performance contracting has improved employee productivity (output)

 

 

 

 

 

2.

Our company plans on organization performance improvement

 

 

 

 

 

3.

Our human resources has influenced organization performance

 

 

 

 

 

4.

Our service delivery has improved over the last five years

 

 

 

 

 

5.

Organization performance has improved as a result of the use of retention strategy

 

 

 

 

 

 

 

 

Cite this Article: Ndobi, M; Oloo, C (2022). Influence of Performance contracting on Performance of County Government of Siaya. Greener Journal of Business and Management Studies, 11(1): 01-13.