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Performance contracting has been praised globally as an effective strategy and a tool for enhancing and improving the performance of public institutions and government departments¿ alike. The public service plays an essential role in effective delivery of services key to the functioning of a state economy. The endeavour of effective service delivery in organizations is to exploit on the welfare of its service users and its developmental goal is to achieve sustainable improvement in the standards of the quality of life for its general public. Gupta (2002) notes, performance contracting involves a highly structured phase of evaluating results considers to be an extremely rigorous technical exercise on one hand and on the other hand a morale-boosting exercise for managers and staff.