Organizations are investing ever-increasing amounts of resources into performance
management, but it is still not clear what they can expect in return, or how they might
influence the likelihood of positive system outcomes. An effective performance management
system clearly defines expectations, helping to align employee behavior with the culture and
business needs of the organization. Performance management is not about discussing poor
performance, it is about talking about accomplishments, successes and improvements. A
focus on these three things reduces confrontation because managers and employees are on the
same side.
The objective of the study was to establish the perceived factors that affect employee
performance management in the City Council of Nairobi. A five point Linkert scale
questioneer was prepared and distributed to all the employees of City Council of Nairobi. A
structured questionnaire was prepared and distributed to all selected respondents. A five point
scale was used to collect data and analysis was based on averages, percentage and correlation
analysis. The study found out that the perceived factors which influenced performance
management was stakeholder involvement, continuous monitoring, feedback, dissemination
and learning from results, organizational culture and leadership commitment. The study
recommended that the council should involve all the stakeholders in coming up with policy
decisions that will affect them and this involvement will help in reducing resistance to the
decision. In addition, to help in adapting the council’s culture in delivery of quality services,
it is recommended that the council allocates adequate resources for the training and
development of its staff to change their culture to support service delivery, clear statement of
power and authority.

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