Perceived Factors affecting Performance Management among Local Authorities in Kenya: A Case of the City Council of Nairobi

Abstract

Organizations are investing ever-increasing amounts of resources into performance management though it is still not clear what they can expect in return or how this might influence the likelihood of positive system outcomes. An effective performance management system clearly defines expectations and helps to align employee behavior with the culture and business needs of the organization. In an increasingly competitive world, performance management is not optional but rather it is essential for enhancing organization`s effectiveness and competitiveness. Today`s organizations have to face a turbulent environment where change seems to be the only constant. To meet this challenge, organizations are forced to accelerate effectiveness in all activities, be flexible to changes in the internal and external environment, improve quality and service delivery, reduce cost and fully use their intellectual capacity. Furthermore, as the system is becoming more complex, emphasis is given to the process orientation and cross functional approaches. To succeed, knowledge, skills, experience and perspectives of a wide range of people must be integrated. There needs to be understanding of the relationship between strategy, people, organizational design and performance systems in order for performance management to be achieved in the Public Sector. The objective of the study was to establish the perceived factors that affect employee performance management in the City Council of Nairobi. A descriptive research design was adopted with the total population of the study comprising of 10,600 employees with 7% being from senior management, 27% from middle level management and 66% from lower level management. Stratified sampling was used for ease of classifying the sample into the three categories with the sample comprising of 10% from each strata of the target population. A five point Likert scale questionnaire was used to collect data and averages, percentages and correlation analysis used. The study found out that the perceived factors that influenced performance management were understanding of performance management, stakeholder involvement, continuous monitoring, feedback, dissemination and learning from results, organizational culture and leadership commitment. The study recommended that the council should involve all the stakeholders in coming up with policy decisions that will affect them as this involvement will help reduce resistance to implementation of the decisions. In addition, to help in adapting the council`s culture to deliver quality services, the council should allocate adequate resources for the training and development of its staff. Key Words- Performance Management, stakeholders, effectiveness, service delivery, intellectual capacity, perception, business strategy, communication, stakeholder involvement and training

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