Perceived Effect of Performance Contracting on Performance of Kenya Agricultural Research Institute

Abstract

The purpose of this study was to establish the effect of performance contract on performance of Kenya Agricultural Research Institute. The study reviewed literature on organizational performance and performance contracting. Interview guides were used to collect primary data from 1 deputy director, 2 assistance directors, 3 centre directors and 1 chief of division, 2 senior research and 1 principal administrative officer from Kenya Agricultural Research Institute. Content analysis was used to analyze the data. The study findings shows that performance contracting increases service delivery at the institute, as overwhelmingly attested to by the findings, and greatly so, going by the respondents’ high levels of agreement. It also was found that performance contracting greatly influences the institutions’ standards and performance targets which is an important proxy in determining the organizations’ effectiveness, as overwhelmingly attested to by the findings. Since this was a case study, it is recommended that a survey be done involving all state corporations to ascertain whether the findings of this study are common across the sector.