Performance Contracts and Intrapreneurial Development in State Corporations: The Case of National Housing Corporation (NHC) Kenya
Mwaura, Jackson Muiruri
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Preparation and .implernentation of Performance Contracts has been one of the economic and social changes introduced by the Government of Kenya with an aim of improving efficiency and effectiveness in management of the public sector. Intrapreneurship on the other hand has been defined as a culture of innovation, risk taking, moving away from "business as usual" mode of working and a spirit of recognizing opportunities. This study examined how performance contracts had influenced intrapreneurial development in National Housing Corporation (NHC). Overall the study established the effects of performance contracts, as a tool of management, on intrapreneurial practices in NHC. A descriptive study on the subject of performance contracts and intrapreneurial development in' NHC was undertaken to collect primary data. The research site for this study was NHC House, headquarter offices of NHC. The target population was the 357 members of staff and nine Directors of this Corporation on whom a purposive sampling was conducted to pick only those who had a direct involvement in the process of preparing and implementing performance contracts in the Corporation. Questionnaires were administered on the sampled 42 employees while an interview schedule was used to collect data from two Board Members. Through a pilot study, the researcher tested the validity and reliability of the survey instruments before they were administered. To collect secondary data, the researcher reviewed literature relevant to performance contracts, entrepreneurship, intrapreneurship, and NHC. The purpose of the literature review was for the researcher to sharpen and deepen the theoretical foundation of the study area. The data collected was ana lysed using the Statistical Package for Social Sciences (SPSS) to generate measures of central tendency for the sample population. The results of data analysis was presented in frequency distribution tables and also converted into graphs. Analysis and presentation of data was done around the five specific objectives of this research and on the characteristics of the sample The study concluded that performance contracts can be implemented in a corporation where intrapreneurial development is also encouraged. The two are not only compatible but complementary. It was further concluded that management autonomy in a corporation is a necessary condition for both intrapreneurial development and efficient implementation of performance contracts. This study identified a need for further research on the two variables of intrapreneurship and performance contracts in state corporations. The research should aim at bringing out the apparent correlation in these variables so as to recommend areas of possible support to ensure enhanced productivity. The results of this study will fill the information gap on intrapreneurial practices in state corporations particularly after introduction of performance contracts and the resultant effects on productivity. The research report will be a valuable reference in the ongoing public sector reform process.