Performance Contracts and Service Delivery in Public Institutions
ABSTRACT
Extreme and major changes are increasingly occurring in the environment in which public institutions operate. An obvious manifestation of the responses towards this turbulent environment is the introduction of performance contracting in Makerere University as part of the broader public sector reforms aimed at improving efficiency and effectiveness in management. The main objective of this paper was to look at a critical review of performance contracting in public institutions. The scope of the study was limited to Makerere University and the impact of performance contracts on service. The paper concludes that performance contracting as an implementing tool in strategic planning is of great importance under the New Public Administration at Makerere University. There is, however, need for a good definition of outputs and solid performance measures which will be able to promote Makerere’s internal performance through a well customer-oriented ability of employees to further promote its external performance.
TABLE OF CONTENTS
DECLARATION 2
APPROVAL 3
DEDICATION 4
ACKNOWLEDGEMENT 5
ABSTRACT 6
ABBREVIATIONS 8
SECTION I 9
1.0 Introduction 9
1.1 Origin of Performance Contracting 12
SECTION II 20
2.0 Literature Review 20
2.1 Implementation of Performance Contracting 20
2.2 Monitoring and Evaluation of Performance Contracting 22
2.3 Impact Evaluation 25
2.4 The Effects of Performance Contracting 29
SECTION III 38
3.0 Empirical Discussions 38
3.1 The Situation at Makerere University before Embracing Performance Contracts 38
3.2 Introduction of Performance Contracts at Makerere University 43
3.3 The Effects of Performance Contracting in Makerere University 44
3.4 Conclusion 53
3.5 Recommendations 54
Bibliography 55
ABBREVIATIONS
BARS Behavioral Anchored Rating scale
FY Financial Year
HEIs Higher Education Institutions
ICT Information and Communication Technology
MUK Makerere University Kampala
Extreme and major changes are increasingly occurring in the environment in which public institutions operate. An obvious manifestation of the responses towards this turbulent environment is the introduction of performance contracting in Makerere University as part of the broader public sector reforms aimed at improving efficiency and effectiveness in management. The main objective of this paper was to look at a critical review of performance contracting in public institutions. The scope of the study was limited to Makerere University and the impact of performance contracts on service. The paper concludes that performance contracting as an implementing tool in strategic planning is of great importance under the New Public Administration at Makerere University. There is, however, need for a good definition of outputs and solid performance measures which will be able to promote Makerere’s internal performance through a well customer-oriented ability of employees to further promote its external performance.
TABLE OF CONTENTS
DECLARATION 2
APPROVAL 3
DEDICATION 4
ACKNOWLEDGEMENT 5
ABSTRACT 6
ABBREVIATIONS 8
SECTION I 9
1.0 Introduction 9
1.1 Origin of Performance Contracting 12
SECTION II 20
2.0 Literature Review 20
2.1 Implementation of Performance Contracting 20
2.2 Monitoring and Evaluation of Performance Contracting 22
2.3 Impact Evaluation 25
2.4 The Effects of Performance Contracting 29
SECTION III 38
3.0 Empirical Discussions 38
3.1 The Situation at Makerere University before Embracing Performance Contracts 38
3.2 Introduction of Performance Contracts at Makerere University 43
3.3 The Effects of Performance Contracting in Makerere University 44
3.4 Conclusion 53
3.5 Recommendations 54
Bibliography 55
ABBREVIATIONS
BARS Behavioral Anchored Rating scale
FY Financial Year
HEIs Higher Education Institutions
ICT Information and Communication Technology
MUK Makerere University Kampala
Bibliography: Akaranga, E. M. (2008). The Process and Effects of Performance Contracting in Kenyan Public Sector, MBA Project; United States International University (USIU), Nairobi. Alford, J Anthony, R.N. & Young, D.W. (1984). Management control in nonprofit organizations. (3rd ed.). Homewood: Richard D. Irwin. Aosa, Evans (2000) Armstrong, M. (2006). Performance Management: Key Strategies and Practical guidelines, 3rd Ed. MPG Books ltd., Bodmin, Cornwall. Armstrong, M Barclays Africa (1997), Barclays Africa: Management Performance Workbook, Pool Dorset: Barclays Bank Plc. Balogun, M Bjorkman, M. (2006). Public Funding in the Educational Sector and Its Effect on Test Scores in Essays on Empirical Development Economics: Education, Health and Gender, IIES Monograph Series No 56, Stockholm University. Bouckaert, G., Verhoest, K CAPAM (2005). In Pursuit of Excellence: Developing and Maintaining A High-Quality Public Service. A Report on a CAPAM High-Level Seminar on Commonwealth Training and Development Institutes, October, 2005. Dehn, Jan, Ritva Reinikka & Jakob Svensson (2003) Finkelstein, S., Hambrick, D.C. (1996). Strategic leadership: top Executives and their effects on organizations, New York: West. Gianakis, G GOK, (2003), Economic Recovery Strategy for Wealth and Employment Creation. Nairobi: Government Printer. GOK, (2005) GOK, (2006). Results for Kenyans: Capacity Building Programme for Transforming the Public Service, Public Service Reform and Development Secretariat, December, 2006. Gore, A Greiling, D. (2006), Performance measurement: a remedy for increasing the efficiency of Public services. International Journal of Productivity and Performance Management Vol. 55 No. 6, 6 pp. 448-465. Gupta, Kapoor A Hill, M. & Gillespie, K. (1996). ‘Social Control of Civil Service Systems’, in Bekke, Perry and Toonen (eds), Civil Service Systems in a Comparative Perspective, Indiana University Press, Bloomington. Hood, C Hirschman, A.O. (1980). Exit, voice and loyalty: responses to decline in firms, organizations and states. Cambridge: Harvard University Press. Kernaghan, K Kobia, M. & Mohammed, N. (2006). The Kenyan Experience with Performance Contracting: Discussion Paper, 28th AAPAM Annual Roundtable Conference, Arusha, Tanzania. Lane, J.E Leonard, B. 2001. Turnover at the top. HR Magazine, May: 46-52. Lings, I Luo, Y. & Peng M (1999). Learning to compete in a transitional economy: experience, environment, and performance Martin, L. L.(2000). “Performance Contracting in the Human Services: An Analysis of Selected State Practices.” Administration in Social Work 24.2 : 29-44. McKelvey, Richard D Miller, D., & Friesen, P.H. (1983). Strategic- making and environment: The third link. Strategic Management Journal, Vol.4: 221-235. Montgomery, C Moy, P. (2005). Best Practices and Trends in Performance Based Contracting. A final report submitted to Office of Financial Management; 210, 11th Ave. S.W. Rm.311, Olympia, Washington D.C. 98504. Makerere University, Fact Book 2011 Muralidharan, R. (1997). “Strategic Control for Fast-moving Markets: Updating the Strategy and Monitoring the Performance”, Long Range Planning Vol.30, No.1 pp. 64-73. Nahavandi, A OECD (1997). In search of Results: Performance Management Practices in Ten OECD Countries Pollitt, C. (1988). 'Bringing consumers into performance measurement ', Policy and Politics 16, 77- 87. Porter, M Rhodes, R.A.W. (1987). 'Developing the public service orientation, or let 's add a soupcon of political theory ', Local Government Studies (May-June), 63-73. Schwella, E Sean, C. (2009). Important Performance Management Tasks That Often Are Forgotten;