ing systems, inventory control, stock records, staff time sheets, payroll records, sales
and production records, user numbers/customer data and service delivery records.
The reporting timetable, responsibilities, individual objective setting, rewards and
sanctions are the means by which accountability and responsibility are defined. These
provide the focus and the motivation for individuals to take responsibility for perform-
ance in the areas to which they are allocated. They provide the systems to reward em-
ployees for achievement but punish them for non-achievement. Examples are annual
reporting and committee timetable, budget preparation, publication of results, staff ap-
praisal process, annual strategic planning process and award of bonuses, promotions,
and salary reviews.
The existence of formal arrangements for publication and follow up provides a focus
for this to happen. Publication generates interest, which should lead to comment and
follow up. The performance management culture relates to the acceptance by all con-
cerned that they are required to perform and be accountable for their actions and their
use of the organisation’s resources. It is an environment in which people are responsible
and accountable for their actions and in which they accept this as legitimate.
Result based management and performance contract
Result based management is an approach to performance improvement which has its
roots in the management control system. This is a management strategy that responds to
performance improvement needs in the public service based on customer satisfaction
and value for money. It involves target setting, performance planning, monitoring and
reporting and performance appraisal. OECD (1999) defines a performance contract as a
range of management instruments used to define responsibility and expectations be-
tween parties to achieve mutually agreed results. Therefore, performance contracting is
used as a management tool to help the public sector executives and policy makers to
define responsibilities and expectations between the contracting parties to achieve
common mutually agreed goals. Governments and agencies have used this tool exten-
sively in an attempt to improve public service delivery (Kobia 2006). The experience in
Kenya is useful in this regard.
Performance contracting in Kenya
Kenya introduced performance contracting in 2003 (Kobia 2006). In 2003, the govern-
ment appointed a contracts steering committee to spearhead the introduction and im-
plementation of performance contracts. After the implementation of the performance
contract, a study conducted by Kobia (2006) covering 223 public servants in ministries
shows the following:
- Employees’ awareness of the goal of performance contracting: Seventy two per-
cent of the employees summed up the goal as improving performance/enhancing
efficiency and effectiveness in service delivery in a transparent and accountable
manner. A further 74% of the employees said their ministries had signed the sec-
ond (2006/7) performance contract with the government. The employees indicated
that majority of the participants were using the performance contract. - Development of strategic plan: The Strategic plan is a critical management tool in
performance contracting. Eighty six percent indicated that their ministries had de-
veloped strategic plans and 79% indicated that they had departmental work plan,