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

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