EFFECT OF ORGANIZATIONAL LEADERSHIP ON IMPLEMENTATION OF PERFORMANCE CONTRACTING STRATEGY AMONG SELECTED COUNTY GOVERNMENTS OF KENYA

Abstract

The goal of the performance contracts strategy is to increase service quality, enhance resource usage efficiency and institutionalize a performance-oriented culture in the public service. However, having a strategy that is well formulated is not enough unless it is properly implemented by an organization. Successful strategy implementation requires management involvement that has the resources and authority for its enforcement. The main objective of this study was to establish the effect of organizational leadership on implementation of performance contracting strategy among selected county governments of Kenya. A descriptive survey research design was applied in this study. The target population was 963 management staff in selected county government who were hugely involved in implementation of performance contracting strategies. These were drawn from the 3 best performing counties (Makueni County, Kakamega County and Kericho County) and3 worst performing counties (Busia County, Wajir County and Samburu County). A sample population of 126 respondents was selected using stratified random sampling. Primary data was obtained using self-administered questionnaires. The researcher analyzed the quantitative data using descriptive was used for data that is qualitative nature or aspect of the data collected from the open- ended questions. Regression analysis was used to establish the relations between the independent and dependent variables. The information was displayed by use of tables, graphs and in prose-form. The study found that unified vision/enhancing team-work affects implementation of performance contracting strategy among selected county governments of Kenya very greatly. The study concluded that organizational leadership (r=0.128, p=0.004) had a strong, positive and significant effect on the implementation of performance contracting strategy among selected county governments of Kenya. The study recommends that the county governments’ leadership to put in place mechanisms for rewarding high performers whose target achievement is above expectation and reprimand those employees whose performance is below expectation.