of adequate resources, development of reward systems for performers, increase of sala-
ries, and improving teamwork are critical in performance contracting.
There are a number of lessons from the Kenyan experience which help to understand
the necessary conditions for introduction and management of effective performance
management system in the public service:
- A solid legal framework that sets out the basic premises and the status of the
contract may avoid ad hoc and fragmented solutions. The arrangements referred to
above lacked the legal capacity for enforcement. Sanctions can be questioned. Seven
senior officers from Kenya Revenue Authority sought legal redress after having
their jobs were terminated as a result of not meeting their performance targets. - Stability of resources enhances the motivating effect of the contract. When resources
are not available or made available too late, employees are frustrated and their
morale is negatively affected. - The top political leadership must respect the operational autonomy of the contracted
organisations/ministries. - Knowledge of strategic planning, development of work plans and monitoring
capacities among the staff are central to the success of performance contracting.
The management support and their technical knowledge are also important. - Contract management should be accompanied by performance-oriented change in
the public service structure and management culture. Culture that empowers staff to
embrace and manage change is necessary. Management instruments, focusing on
performance and costs in the field of human resources and financial management
should be developed in an integrated manner. - There is need for a good definition of outputs and solid performance measures. This
requires a well-defined training programme for the public servants to support
implementation. - Other instruments of control such as quality service charters and regulations
concerning transparency and accountability must complement performance
contracting. Performance contracting tends to emphasise competition between
members of staff to meet their targets. Competition, if not well controlled, may
bring conflicts of values hence interfere with the organisation’s culture. - Performance contracting is not a substitute for poor management. Performance
contracting will only succeed where the best management practices are practiced.
Top management’s key competencies and its participatory approach to decision
making are crucial. - There should be regular overall evaluations and audits of benefits and drawbacks of
the implemented contract in order to learn from experiences. Differences in
implementing in different contexts may provide different learning experiences. - The early years of implementing personal performance contracting were difficult for
both staff and management. A degree of tolerance from the management may
sustain the momentum. Mistakes are likely to be made but it is critical to draw
lessons for innovation and creativity for future improvements in performance.
Therefore, as a general rule, performance management in African organisations is influ-
enced by local cultural orientations. Nzelibe (1989) discusses various experiences in
human resource management and cultural challenges in Africa. One of the aspects is
performance management whereby the subordinates are not expected to openly chal-
lenge the superior and often the latter are required to receive instructions without ques-