Tag Archives: Performance Contracting

The Importance of Setting Performance Targets on Service Delivery in Performance Contracting At the Ministry of Tourism, Kenya (Published)

Performance targets are an important component of management control systems by serving as a standard against which performance is often evaluated in service at the end of a specified period. Thereby, targets largely determine bonuses, career prospects and promotion decisions to motivate service delivery efforts and retain employees. Given this prominent role of targets in business practice, it is important to understand how the public sector sets performance targets to contract with managers. This paper is an insight into the impact of setting performance targets in enhancing performance in service delivery of the public sector. The study employed a descriptive survey design to help obtain and describe information impact of performance targets on service delivery. The target population comprised 164 employees working at Ministry of Tourism headquarters at top, middle and lower levels of management. The human resource framework for the ministries in Kenya are identical thus the study results can be generalized to other ministries. The sample was drawn from each stratum using the simple random sampling technique. Questionnaires were the major source of data collection; a semi-structured questionnaire was most preferable. The author mainly used descriptive statistics that included percentages, mean and standard deviation to analyze data. The findings and recommendations will assist management in enhancing the use of performance targets so as to enhance performance. It sensitizes the employees on the relationship between good performance and good rewards through achievement of set targets.

Keywords: Control Systems, Performance Contracting, Performance Targets, Public Sector, Service delivery