Customers’ Perception of the Effectiveness of Performance Contracting in Improving Public Service Delivery at the Kenya School Of Government

Abstract

Performance contracting (PC) is a management tool used to improve the efficiency and effectiveness of organizations. Depending on how organizations implement PC, customers’ perception of its effectiveness may vary. The purpose of this study was to assess the efficacy of PC in improving Public Service Delivery (PSD) at Kenya School of Government (KSG). The study was informed by the problem of continued deterioration of performance in PSD in the Kenyan public service despite implementation of several strategies to address the challenges. The study was carried out at the KSG, guided by two theories: the Principal Agent theory and the New Public Management (NPM) theory. Reviewed literature was organized thematically. The study was guided by pragmatism philosophy and utilized descriptive survey research design using mixed methods approach. Using Yamane’s formula, a sample of 480 was determined and respondents selected through simple random sampling. Purposive sampling was used to select all the six directors of the KSG campuses in Kenya. Data collection tools included questionnaires, interview schedules and focus group discussions. Quantitative data was analyzed using descriptive statistics and presented using tables, while qualitative data was analyzed using content analysis and presented in themes. The findings suggested varying levels of customer satisfaction averaging across various sectors, with a general trend towards satisfaction from course participants in county governments and agencies, and mixed feelings in tertiary institutions and universities. The study concluded that PC remains a pivotal tool in performance management, with its effective implementation ensuring the delivery of high-quality public services. It recommended that organizations require customer helplines or service charters which are essential for delivering support, service, advice, and information. The study underscored the fact that responding to clients’ needs adds value to an organization by catalyzing staff efficiency and PSD.