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Performance Contracting Strategy in Sierra Leone Public Service was initiated from the view that the performance management of the Public Sector needs a rejuvenation in ensuring efficiency and effectiveness on service delivery.Implementation of this strategy has been challenging to the stakeholders.It is within this context that this study was initiated to determine the challenges experienced by employees in the implementation of performance contracting in Sierra Leone.To this end,the researcher determined to conduct this study by conveniently picking 15 employee from the Sierra Leone Ministry of Local Government and Rural Development.The research design was a qualitative case study at the Ministry of Local Government and Rural Development on the factors influencing the implementing performance-contracting strategy.The data collection tool was an interview design.Content analysis was used to analyze the qualitative primary data,which had been collected by conducting interviews and secondary information from related literature.The findings from the study were that organizational culture,organizational structure,leadership,management,and ineffective performance management affect successful implementation of performance contracting strategy.The challenges brought about were communication problems between the departments,administrative,hinders full implementation of performance contract strategy,delayed services and also poor service delivery,none effective communication feedback,ineffective coordination and poor sharing of responsibilities,non-involvement of the employees in setting targets and lack of policy guide on reward to motivate employees towards achievements of organizational targets.