Evaluation of the effect of Performance Contracting on The Achievement of Organizational Goals: A case of the Operations of Kenya Agricultural Research Institute(KARI), Kenya

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Nyaanga Samson Ogechi
The objective of the study was to determine the effectiveness of performance contracting as a performance management tool by evaluating its effect on the achievement of organizational goals. The area of research was at the Kenya Agricultural Research Institute (KARl) which is one of the state owned enterprises placed under Performance Contract. KARl is a semi- autonomous research and knowledge generation institute with several research centres strategically placed across the Republic of Kenya. The operations of these research centres are similar countrywide except for the uniqueness of the agroecological zones where they are located. The target population was 866 employees who have been placed under Performance Contracts. These were made up of 52 Top Managers, 489 Research Officers, 91 Technical Officers, 81 Technologists, 39 Administrative Officers, 38 Finance Staff and 76 staff from Supplies, Secretarial, and Library / .IT cadres combined. A sample size of272 staff was taken consisting of 16 Top managers, 154 Research Officers, 29 Technical Officers, 25 Technologists, 12 Administrative Officers, 12 Finance Staff and 24 Staff from Supplies, Secretarial, and Library / IT cadres combined. A random sampling technique was applied on the identified strata and data were collected using questionnaires which were administered on the sampled population. The collected data were analyzed by means of descriptive statistics and a five point Likert Scale weighted average. The findings of the study indicated that the Performance Contracting Strategy had a moderate positive effect on the operations of KARl. The study is intended to benefit KARl as a Research Institute, the Kenya Government and donor agencies like World Bank, United States Agency for International Development (USAID), and European Union who partner with KARl in research and provide the required resources. Other research institutions and universities would also be beneficiaries of the study. A replication of the research is suggested in organizations whose operations are similar to those of KARl so as to obtain a wider coverage of participants.