Strategy Implementation and Performance Contracting in Regulatory State Corporations in Kenya: A Case of Kenya Dairy Board
Mwangi, Evanson Njoroge
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The purpose of this study was to investigate the influence of strategy implementation on performance contracting in Regulatory State Corporations in Kenya with specific reference to Kenya Dairy Board. This study was guided by the following specific objectives: to establish the influence of organizational structure, financial resources, organizational norm and communication on performance contracting in Regulatory State Corporations in Kenya. This study employed a descriptive survey research design. The target population was 141 respondents comprising of 6 managers and 135 employees. A census survey was used to select the respondents due to the small target population size. Data was collected through the use of questionnaires with close and open ended questions for the employees and for the managers. The study used both quantitative and qualitative method of data analysis. Descriptive statistics of mean and standard deviation were used to analyse the quantitative data and content analysis technique to analyse qualitative data. The study findings revealed p-values for organizational structure, financial resources, organizational norms and communication are less than 0.05 indicating the dependent variables are statistically significant and hence influence the dependent variable of performance contracting. This study concluded that regulatory bodies in Kenya selects the right people for key positions to enhance strategic implementation and ensure success of the performance contracting process. It was also established that distribution of financial resources towards performance contract is still not clearly aligned to the strategy implementation functions in most of the regulatory bodies in Kenya. The management of regulatory bodies relates well with employees within the organization and the goals and incentives for the workforce are aligned with the strategy towards the implementation of performance contracting. Regulatory bodies that have effective communication channels during strategy implementation on performance contracting are considered successful with communication requirements of the strategy implemented with careful consideration. This study recommends that the current structure of regulatory bodies in Kenya should allow employee participation in decision making. Financial resources must be accompanied by a sound institutional infrastructure, proper conduct of monetary and fiscal policies, proper management of resources and increase in transparency to ensure a successful performance contracting process. In addition, regulatory bodies in Kenya should minimize power distance between the lines of authorities as well as the relationship between the top management and the junior staff for enhanced performance. The management can elicit more support for the set strategies by having clear and communicated career paths for their employees. Finally, communication to all stakeholders is necessary to ensure that the strategic process receives support from all concerned functions. It suggests that further study should be carried on the influence of management support on the implementation of performance contracting in regulatory bodies in Kenya.