Do Managers Face a Performance Trade-Off? Correlations Between Production and Process Performance

The existence of multiple goals in public organizations inevitably raises the concern that managers face performance trade-offs. In particular, scholars have expressed the fear that public managers, in order to secure high production performance, are forced to sacrifice performance on goals like equity, accountability, and procedural justice. However, our knowledge of whether such trade-offs exist is scarce. Using an administrative 10-year panel data set of Danish public schools and principals, this article analyzes trade-offs between production performance (measured by student performance and student pass rate) and process performance (measured by equity, accountability, and procedural justice). Results show no evidence of trade-offs. In contrast, principals who succeed in raising student performance generally also succeed in securing high pass rates, high equity, high accountability, and high procedural justice. These results suggest that managers who are able to secure high performance on one dimension of performance will likely also be high-performing on other performance dimensions.     

Better Performance with Performance Budgeting? Analyzing Cases of Success and Failure in Public Administrations

ABSTRACT

The introduction of performance budgeting has substantially changed the working environment of public managers. Changes include a shift from input to outcome orientation as well as more freedom to manage. However, current public management theories are unable to explain why performance budgeting sometimes fails. This article proposes a causal model that integrates three contextual factors and two individual factors in order to explain the diverse results. The model is tested with cases generated from interviews with Swiss public managers. The compiled data suggests that the type of tasks in a department as an antecedent variable and the perceived freedom of public managers have a dominating influence on the perceived reform outcome. Other factors, such as the behavior of the legislature, the project management and the prior career of managers, tend to be less important. These results contribute to the scientific discourse about success factors for performance budgeting in public administrations.     

How Do Performance Gaps Affect Improvement in Organizational Performance? Exploring the Mediating Roles of Proactive Activities

Abstract

According to the extensive literature on performance gaps, the various reference points of the problem identification process affect the managerial decisions of public managers. In this article, we propose a theory about the public management decision-making processes based on the roles of proactive behaviors, specifically regarding how identifying such problems (performance gaps) leads to performance improvement. Using panel data from Korea covering 2005–2014, this analysis provides support for our assertion that not all reference points are equally important to public managers’ proactive responses; however, we find evidence supporting the importance of perceiving the external reference point of problem identification as a significant precedent for successful organizational performance. Our results also indicate that practitioners need to become involved in greater feedback processes when searching for proactive solutions that remedy poor organizational performance. This suggests that the creation of diverse and sophisticated performance feedback systems can strengthen public managers’ abilities to find solutions for organizations. Ultimately, the findings enhance our understanding of the relationship between performance gaps and performance improvement by examining the role of public managers’ proactive behaviors.     

Zone of Acceptance under Performance Measurement: Does Performance Information Affect Employee Acceptance of Management Authority?

Public sector employees have traditionally enjoyed substantial influence and bargaining power in organizational decision making, but few studies have investigated the formation of employee acceptance of management authority. Drawing on the “romance of leadership” perspective, the authors argue that performance information shapes employee attributions of leader quality and perceptions of a need for change in ways that affect their acceptance of management authority, conceptualized using Simon's notion of a “zone of acceptance.” A survey experiment was conducted among 1,740 teachers, randomly assigning true performance information about each respondent's own school. When employees were exposed to signals showing low or high performance, their acceptance of management authority increased, whereas average performance signals reduced employee acceptance of management authority. The findings suggest that performance measurement can alter public sector authority relations and have implications regarding how public managers can use performance information strategically to gain acceptance of management authority and organizational change.     

Marching to Different Drummers? The Performance Effects of Alignment between Political and Managerial Perceptions of Performance Management

The relationship between politicians and bureaucrats is central to the administration of modern democratic societies, yet it often is neglected in studies of the performance of public organizations. In this article, the authors examine the performance effects of alignment between politicians’ and senior managers’ perceptions of one of the more pervasive public management reforms over recent decades: performance management. Evidence from a panel of English local governments supports the hypothesis that alignment of views between politicians and senior managers on performance management is associated with better organizational performance. Furthermore, this relationship is strengthened in organizations that display higher levels of role flexibility by managers and greater trust between politicians and managers.     

Does Training Matter? Evidence from Performance Management Reforms

Training is much discussed but rarely studied in public management. Using multiple waves of survey data, the authors examine the effects of training on the implementation of performance management reforms in the U.S. federal government, asking whether those exposed to training are more likely to use performance data and strategic goals when making decisions. Training is positively associated with reform implementation, but there is little evidence that this association can be explained by the development of specific capacities to overcome performance management challenges. The findings offer two implications for the practice and study of training. The authors propose that training is likely to succeed if it is designed and funded to close specific capacity gaps needed for successful reform implementation. However, it is also necessary to better understand alternative causal mechanisms by which training facilitates reform implementation, such as explaining and justifying reforms.

Practitioner Points

• Training can facilitate the implementation of new policies by providing information about the policies, justifying why they are needed, and giving employees the capacity to put the new policies in place.
• Using training to build specific employee capacities is more complex, resource intensive, and rare than using training to provide information and justify reforms.
• Effective training in government requires not just more resources but also better understanding of the specific capacities needed and how to create them—research can help by identifying the most significant capacity gaps in policy implementation.

     

Can Performance Management Best Practices Help Reduce Crime?

As performance management systems gain popularity in police agencies, they are increasingly being criticized for their ineffectiveness at reducing crime and for encouraging abuse of authority. Scholars and practitioners, however, argue that these systems can be effective if they are implemented properly with the use of best practices. This article contributes to this debate by evaluating the impact of performance management systems and associated best practices on improving police performance. An analysis of primary survey data of 308 U.S. police agencies shows that performance management systems are effective tools in helping reduce crime across almost all crime categories. However, the best practices of performance reporting to citizens and providing discretion to officers have no significant impact on crime reduction, while consulting officers in the target‐setting process has a negative impact on police performance.     

How is the Use of Performance Information Related to Performance of Public Sector Professionals? Evidence from the Field of Academic Research

There is inconclusive evidence as to how performance management is actually related to performance, particularly in subfields of the public sector where professional work prevails. We propose that the association between the use of performance information and performance of public sector professionals varies with the targets of management control. We test our hypotheses in the field of academic research, a prime example of professionalism in the public sector. The overall results of an online survey with 1,976 observations suggest that performance management is positively related to publication performance when performance information is used for the control of input targets. In contrast, we find negative associations of performance information with performance when used to control output targets. Public managers in professional fields should consider these countervailing relationships when they compose and use control systems.     

Putting the Cart before the Horse: Accountability or Performance?

Conventional wisdom argues that a good set of performance measures builds accountability and that improved accountability generates better productivity in the organisation. By way of an analysis of a case study in one inland Chinese county, this article shows that the assumed relationship between performance and accountability is more rhetoric than real. In practice, the implementation of performance measurement in local China leads to an accountability paradox, in which enhanced accountability tends to hinder the improvement of government productivity. The implementation of the Chinese target-based responsibility system risks boosting the short term accountability of public employees while undermining the long term productivity of government agencies. With the deepening of China's market-oriented reform, this choice appears to put the cart before the horse.     

Beyond Performance: Racial Prejudice and Whites’ Mistrust of Government

Political Behavior - Scholars have argued that racial policy beliefs contributed to a decline in public trust among white-Americans, but this effect waned over time as racial policies left the...     

Network Structure and Governance Performance: What Makes a Difference?

Comparing and evaluating the performance of governance networks are important tasks for researchers and practitioners of network governance and public administration. Limited by the lack of network data across space and time, the study of network performance and effectiveness at the network level is not on pace with advances in theories and methodologies in network analysis. With a novel methodology to measure clean energy governance networks using hyperlink network analysis across the contiguous United States, this article collects a large sample of self‐organizing policy networks in the same policy domain across geographic locations. This article proposes that governance networks with high overall bridging and bonding social capital perform better. Regression analyses show that network structures have statistically significant effects on governance outcomes. States with high average closeness and average clustering in their governance networks are more likely to have faster clean energy development.     

Does Strategic Planning Improve Organizational Performance? A Meta‐Analysis

Strategic planning is a widely adopted management approach in contemporary organizations. Underlying its popularity is the assumption that it is a successful practice in public and private organizations that has positive consequences for organizational performance. Nonetheless, strategic planning has been criticized for being overly rational and for inhibiting strategic thinking. This article undertakes a meta‐analysis of 87 correlations from 31 empirical studies and asks, Does strategic planning improve organizational performance? A random‐effects meta‐analysis reveals that strategic planning has a positive, moderate, and significant impact on organizational performance. Meta‐regression analysis suggests that the positive impact of strategic planning on organizational performance is strongest when performance is measured as effectiveness and when strategic planning is measured as formal strategic planning. This impact holds across sectors (private and public) and countries (U.S. and non‐U.S. contexts). Implications for public administration theory, research, and practice are discussed in the conclusion.     

The Right Mix? Gender Diversity in Top Management Teams and Financial Performance

Recent research has illustrated that demographic diversity influences the outcomes of public sector organizations. Most studies have focused on workforce diversity; by comparison, little is known about how managerial diversity affects organizational outcomes. This article focuses on gender diversity in the top management teams of public organizations and its relationship to financial performance. Theory suggests that management diversity can be a positive asset for organizations, allowing for the use of more diverse knowledge and human skill sets. Results of this study, however, suggest that organizations may only be able to leverage these advantages if they have a supporting management structure. In a longitudinal study of top management teams in Danish municipalities, the authors find that gender diversity in top management teams is associated with higher financial performance, but only in municipalities with a management structure that supports cross‐functional team work. These results are interpreted in light of existing theory, and implications are suggested.     

Autonomy and Performance of Agentification： Cases of Nine Independent Agencies in Thailand

Facing the limitations of bureaucracy and the pressures of crisis and change, the government reforms in many countries adopted a discipline of new public management （NPM） by separating autonomous agencies （agentification） in the public sector. Nonetheless, there are still very few empirical studies of performance assessment of this type of agency. This paper has two main objectives： （1） to explore the governance and autonomy of nine independent agencies under the Ministry of Industry （MOI） in Thailand; and （2） to present performance assessment of these nine independent agencies. This study uses both qualitative and quantitative approaches in collecting data, including three focus groups, 37 in-depth interviews, and 3,428 questionnaire surveys. The paper applies the concepts of agentification of NPM to examine the multidimensions of autonomy and to evaluate the performance of the nine agencies, covering effectiveness, financial self-reliance, and the impact on industrial development. Finally, this paper discusses the effects of agentification and suggests policy and managerial implications as well as further research directions.     

Market Orientation and Public Service Performance: New Public Management Gone Mad?

The backbone of theory of the market‐based approach New Public Management is that market orientation improves public service performance. In this article, market orientation is operationalized through the dominant theoretical framework in the business literature: competitor orientation, customer orientation, and interfunctional coordination. Market orientation is examined from the vantage point of three stakeholder groups in English local government: citizens, public servants, and the central government’s agent, the Audit Commission. Findings show that market orientation works best for enhancing citizen satisfaction with local services, but its impacts on the performance judgments of local managers or the Audit Commission are negligible. The conclusion discusses important implications of these findings for research, policy, and practice.