The Role of Performance Measurement in Enhancing Employee Performance: Evidence from Kenyan State Corporations

Abstract

Over the past two decades, employee performance has been a central focus of public sector reforms in Kenya. In 2003, the government recognized that poor performance in central government and state agencies was hindering economic growth. Public sector employees in Kenya faced low productivity and weak performance linkages, with only 35.4% of man-hours utilized productively. Despite the introduction of performance management practices in state corporations, their effectiveness remains unclear. Existing studies focused on private sector while others limited data collection to single organizations. This study examined the influence of performance measurement on employee performance in Kenyan state corporations. A cross-sectional survey design was employed, incorporating both quantitative and qualitative approaches, and triangulated with secondary data. A list of 170 state corporations constituted the sampling frame while stratified sampling technique was used to sample of 119 respondents. Primary data was collected using a semi-structured questionnaire while secondary data was collected using data collection sheets. Data analysis was carried out using descriptive and inferential statistics. Regression analysis revealed a positive and significant relationship between performance measurement and employee performance. The findings highlighted the importance of structured performance measurement process, particularly the use of performance evaluation carried out in meetings where dialogue between the managers and employees is encouraged.