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) |
|
Influence of Performance contracting on Performance of County
Government of Siaya
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 |
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: |
|
|
|
|
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
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.
|
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.
(2019) Global challenges:
personal reflections on the Stockholm “New Shape” competition. Journal
& Proceedings of the Royal Society of New South Wales, 151, 213- 231
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.
Leeuw F.L and G. Van Gils(1999). “Performance
management in the public sector”: An analysis of existing research. The Hague,
the Netherlands, 1999:
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.
McGregor, D.
(1960). Theory X and
theory Y. Organization theory, 358- 374.
Muriu, S. M.
(2014). Factor affecting Implementation of Performance
Contracting Process in Kenya’s Civil Service, State Department of
Infrastructure. Journal of Humanities and Social
Science.
Mugenda, O. M. & Mugenda,
A. G. (2003).Research Methods:
Quantitative and Qualitative approaches. Nairobi, Acts Press.
Nganyi, J.
E., Shogogodi, J. M., & Owano,
A. (2014). The Effectiveness of Performance Contracting
in Service Delivery in Public Universities in
Kenya. International
Journal of Academic Research in Business and Social Sciences.
Nguthuri, J.M., et. al .(2013). An
Evaluation of the Performance Contracting on Organisation
Performance: A Case of Kenyatta University, Kenya. European Journal of Business and Management Vol.5, No.21, 2013.
Nyongesa, et. al. (2012). Challenges Facing Implementation of Performance Contracts in State
Corporations in Kenya. Research
Journal in Organizational Psychology and Education Studies, 1(5), 284-288.
Obong’o, S. O.
(2009) Implementation of the Performance Contracting in Kenya. International
Public Management Review
Onen, D. &Osso, W. Y. (2008).A general Guide to Writing Research Proposal
and Report. A handbook of beginning researchers. Revised ed. Nairobi: The Jomo Kenyatta Foundation.
Saunders, M. (2009).Research Methods for Business Students. London: Pearson Education Ltd.
Sifuna, O. N.
(2012). Perceived Effect of Performance Contracting on
Service Delivery at Jomo Kenyatta University of
Agriculture and Technology.
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. |