PERFORMANCE TARGET SETTING AND EMPLOYEE PERFORMANCE: A CASE OF STATE CORPORATIONS IN KENYA
Abstract
Purpose of the study: The study sought to examine the effect of performance target setting on employee performance in the state corporations in Kenya.
Statement of the problem: The performance of public sector employees in Kenya has been a matter of concern, issues have been raised on the actual utilization of available man hours for productive work. Insufficient employee performance has been linked to critical issues within state corporations, including pervasive poor performance and substantial indebtedness. The government introduction of performance management in public entities was aimed at reversing the negative trends in employee performance. Despite the growing emphasis on performance management practices in state corporations in Kenya, there exists a significant gap in understanding the relationship between performance target setting and employee performance.
Methodology: The study employed a cross-sectional survey design with both quantitative and qualitative approaches, using a stratified random sample of 119 respondents from Kenyan state corporations, collecting primary data through semi-structured questionnaires and analyzing it with descriptive and inferential statistics, while triangulating findings with secondary data presented graphically.
Results of the study: The study established the existence of a positive and significant relationship between performance target setting and employee performance in state corporations in Kenya. The null hypothesis was thus rejected, and the alternate hypothesis was accepted which states that performance target setting has a significant effect on employee performance in state corporations in Kenya.
Conclusion: The study concludes that while performance target setting has a positive and significant relationship with employee performance, the model's explanatory power suggests that other factors also influence performance. Additionally, qualitative findings highlight challenges such as misalignment between targets and resources, as well as a lack of managerial commitment, resulting in unrealistic goals and limited collaboration.
Recommendation: The study recommends that state corporations in Kenya should focus on improving their target setting processes to ensure alignment with organizational resources and realistic goal setting. This could involve conducting thorough assessments of available resources and capabilities before setting targets, as well as fostering collaboration and communication between managers and employees to ensure buy-in and commitment to target achievement.
Keywords: Performance target setting, employee performance, performance management, human resource management.
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