Analysis of Factors That Influence Implementation of Performance Contracts in State Corporations (A Case of Kenya Civil Aviation Authority)

Abstract

The objective of this study was to analyze factors influencing implementation of performance contracting in state corporations in Kenya with special reference to Kenya Civil Aviation Authority. Descriptive research design was employed in the study. The target population was all the employees of Kenya Civil Aviation Authority that have signed Performance Contracts between the period 2008/09 to 2011/12. The data was analyzed using descriptive statistics with the help of the statistical package for social sciences (SPSS). The results were then presented in tables and charts. The study concludes that targets are mutually agreed upon and those targets are in line with the organizations objectives. There are high motivational rewards for good performance. In addition, the study concludes that Performance measurements are used to evaluate, control and improve operations process in order to ensure that the organization achieves its goals and objectives. The study concludes that the organization avails requisite resources necessary for implementation of strategy and that management practices fair evaluation of Performance Contracts outcomes. Finally, the study concludes that strategy implementation evolves either from a process of winning group commitment through a coalition form of decision-making, or as a result of complete coalitional involvement of implementation staff through a strong corporate culture. The study recommends that the set targets be well communicated to the employees in an organization. The study further recommends that the organizations have team building activities such as tours so as to further motivate them. The study recommends that the organizations have Strategic performance measures that monitor the implementation and effectiveness of an organization's strategies. In addition, the study recommends that every employee in the organization be committed to their work and not only the top leaders.