The objective of this study was to establish the determinants of an effective performance management system in Public Health Institutions in Kenya. The study specifically investigated the case of Coast Provincial General Hospital (CPGH). Primary data was collected by use of a questionnaire which was distributed to a population constituting of 45 heads of departments. Data was analysed using descriptive statistical techniques. Multiple regression analysis technique was used to explain the nature of the relationship between the dependent variable and the independent variables in the study. The study found that no significant relationship existed between the variables strategic congruence, viability, reliability, acceptability and the performance of Coast Provincial General Hospital respectively. The study however found that a positive and significant relationship existed between specificity and performance of the employees of Coast Provincial General Hospital. It was concluded that, performance management system was an important tool to continuously monitor employees’ performance, identify skill gaps and develop required competencies.
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