Performance Contract and Performance of Public Enterprises: A Study of the Implementation Processes

Abstract

This paper therefore seeks to identify and analyse the factors that may explain the reported mixed results in relation to the impact of performance contract on the performance of public enterprise. The study specifically seeks to identify and analyse the factors that may explain the mixed results in the implementation of PC by public enterprises in Ghana. To achieve the above objective, the study adopted multiple case study strategy. Specifically, four public enterprises representing four cases were randomly sampled based on the performance assessment categorisation by the State Enterprises Commission (SEC). The findings of the study reveals that the content, targets, and objectives in the performance contracts are always specific, clear and measurable. There are however variations in how each of the case formulate performance targets and objectives in the contracts. SOEs in the excellent and above average categories have separate department exclusively in charge of corporate planning and that explains the variations in performance targets and objectives on yearly basis compared to those in categories C and D which show minimal changes with incremental modification to the previous targets objectives. Similarly, the study shows that SOEs in categories and A and B have clearly designed structures and systems for the implementation PC. Moreover, they were found to combine both top-down and bottom up approaches in their PC processes. Although the findings show that all SOEs face similar political inferences, financial and human resources have been identified from the study as vital in contributing to the performance of SOEs in the implementation of performance contact. On the basis of the above findings, this paper recommends among other things, the need for examine the institutional arrangements for formulating and implementing the content of performance contact within SOEs. Furthermore, the approach adopted by SOE A; trainees becoming trainers must be extended to other SOEs to build competent and qualified human resource base for the SOE sector.