PERFORMANCE CONTRACTING AND ITS RELATIONSHIP TO PRINCIPALS’ PERFORMANCE OF MANAGEMENT FUNCTIONS IN TECHNICAL TRAINING INSTITUTES IN MOUNT KENYA REGION IN KENYA

Abstract

Performance contracting is a freely negotiated agreement between a government, acting as the owner of a public agency, and the management of the agency and it is used in the Kenyan public institutions to enhance efficiency. Technical Training Institutes face pressure to improve efficiency in management practices. Before the study was conducted it was unclear whether the introduction of performance contracting had enhanced efficiency in management practices in Technical Training Institutes. The study, therefore, intended to determine relationship between performance contracting and Principals’ performance of management functions in Technical Training Institutes in Mount Kenya Region. For the purposes of conceptualization of the study: Douglas MacGregor Theory X and Theory Y; Goal Setting Theory; McClelland’s Needs Theory and a conceptual frame work showing the relationship between the variables were used. Using descriptive research design, data were collected from 6 Technical Training Institutes out of 7 in Mount Kenya Region. The respondents included 6 Principals, 31 Administrators (7 Deputy Principals, 6 Registrars, 6 Deans of Students, 6 Finance Officers and 6 Performance Contracting Coordinators), 66 Heads of Departments and 165 Classteachers. A census approach was used to include all the Principals and the Administrators in the study. The stratified random sampling technique and the simple random sampling technique were used to select the Heads of Departments and Class - teachers. A total of 268 respondents participated in this study. An interview schedule for Principals, Administrators’ questionnaire, and Heads of Departments and Class – teachers’ questionnaire were used to collect data from the respondents. A pilot study was conducted to ensure validity and reliability of data collection instruments using one Technical Training Institute which was not included in the main study. In this regard, test- retest method was applied to estimate the reliability of the instruments. All the reliability estimates were above 0.9 (90%). Descriptive statistics such as means, standard deviations, percentages and inferential statistics such as Pearson’s Correlation Coefficients were generated and analyzed through Statistical Package for Social Science computer package. The results indicated that the extent of target’s achievement in Technical Training Institutes was high. Pearson’s Correlation Coefficient (r = 0.166) generated indicated that there was a positive and significant relationship between performance contracting and Principals’ performance of management functions at 0.05 level of significance, p – value = 0.017. The results also indicated that performance contracting enhanced service delivery, academic performance and procurement procedures. It also reduced corruption cases. However, performance contracting in Technical training institutes is faced with constraints which included delay in disbursement of funds by the Government, lack of trained staff on performance contracting, targets being imposed by the Government, lack of reward and lack of sanctions. The study concluded, among others, that the greater the extents of targets’ achievement the higher the level at which the Principals performed the management functions.