Performance contracting works as a management tool to help Sang’alo Institute of Science & Technology’s policy makers define responsibilities and expectations for staff to achieve mutually agreed goals. The aim is to have a real impact in improving processes, creating new behavior patterns and adopting a positive work ethic in service delivery. It helps to clarify the objectives of the Institute and its relationship with government in line with Kenya’s Vision 2030 development blueprint. Performance contracting has had a profound positive impact on productivity, employees’ motivation, Infrastructure development and effectiveness in service delivery, among others. The performance enhancement in the academics and administrative functions of the institution has consistently led to growth and development since Performance Contracting came into play in 2008.
The introduction of performance contracting has resulted to good practices in performance management. The activities accrued from the introduction of PC strategy include; the organization mission and vision, strategic plan, annual operational plans, individual work plans, quarterly performance reports among other activities that were never important in process based management PC has also resulted into improved service delivery at SIST. It has strengthened performance culture and, staff has slowly began to internalize the idea of having annual operational plans, every service area prepares annual plans and set targets. It has enhanced efficiency in utilization of resources, and streamlined service delivery.