The Influence of Performance Incentives in Performance Contracting on Service Delivery at the Ministry of Tourism, Kenya

Abstract

Performance contracting is aimed at enhancing job satisfaction for the employees with the hope that their satisfaction would lead to improved job performance. Performance contracts originated from the perceptions that the performance of the public sector had consistently been falling below the expectations of the public. Performance incentives are also critical in the link between performance contracting and service delivery. This paper sought to establish the influence of performance incentives in service delivery in the tourism ministry. The study, based on contract theory employed descriptive survey design. The study population constituted 164 employees working in the ministry of tourism. Close ended questionnaires were used to collect data which was then analyzed and presented in form of tables and charts. The study found that performance incentive system does not enhance performance in the ministry of tourism. The study findings may be of interest and may enable the government know whether the reform initiative has positively impacted on the service delivery process and has been accepted or embraced by all the employees. The public service reform secretariat and performance contract steering committee may find the findings useful in deployment of employees in other service state corporations and government agencies yet to adopt the performance contracting.

Keywords: Performance Incentives, Influence, Contract Theory, Performance Contracting