PERFORMANCE CONTRACTING AND SERVICE DELIVERY IN NATIONAL WATER AND SEWERAGE CORPORATION – UGANDA CASE STUDY OF KAMPALA WATER

Abstract

The study examined the effectiveness of performance contracting on service delivery in National Water and Sewerage Corporation in Uganda taking a case study of Kampala Water. The study objectives included; assessing the extent to which leadership affects service delivery in NWSC, to assess the effectiveness of target setting on service delivery improvement in NWSC and assessing the effectiveness of Incentives on service delivery improvement in NWSC. The study used a cross sectional – case study design with qualitative and quantitative approaches. The sample size for the study was one hundred seventy seven respondents. Data was collected using interview guides and questionnaires. Findings indicated that; there is a positive relationship between leadership and service delivery; statistically it was proved that there existed a relationship between target setting and service delivery and also incentives indicated a positive relationship. The study concluded that Leadership affects service delivery most, followed by target setting and then incentives. The study recommends that management should ensure effective leadership which is able to recognize significant gaps that can cause adverse effects on performance. On top of leadership which is able to recognize that teams need to be fostered, developed and assessed. For target setting, management should Involve and listen to the ideas of the lower cadre staff, though not promise to change everything and make the changes that will further increase the effectiveness of the Organization to always follow up and measure change in its effectiveness overtime. Lastly for incentives, goals or reference standards set out for employees must be attainable, otherwise rather than motivating staff, the incentive scheme will have a detrimental effect on their motivation and performance.