Performance Regimes—The Institutional Context of Performance Policies

Performance measurement, targeting, reporting and managing of public services has spread across jurisdictions in recent years. The most usual stance adopted by governments in developing performance policies has been shaped by principal-agent theory and a hierarchy of principal-agent relationships from core executive to service delivery. Such notions have been challenged from several directions, both in theory and empirically. Writers on accountability and those analyzing the “audit explosion” and the growth of “regulation inside government” have pointed to the way in which multiple actors and accountabilities have grown. Drawing on these and other sources this article develops a “performance regimes” perspective that offers a heuristic analytical framework of the main groups of institutional actors who can (but do not always) attempt to shape or steer the performance of service delivery agencies. The aim is to create a framework that can be applied comparatively to study changes in total performance regimes over time and between jurisdictions and sectors.     

Are Changes Effective in Performance Management? An Analysis of Japanese Agencies

Agencies are key organizations for implementing and studying performance measurement and management (PMM). This article explores the implementation and effect of PMM in Japanese agencies. In Japan, design of the agency system included New Public Management elements, such as independence and delegation of powers, but also traditional ones, with a strong system of controls. The discourse about the soundness and ambitions of the PMM system permeated the agencies but not so much their effort toward PMM. The performance improvement attained by agencies depends on their agency characteristics, organizational culture, and organizational factors, with a remarkable influence of the organizational culture.     

What’s in a Name? Assessing the Performance of Local Government Classification Systems

Local government classification systems are employed in many countries for regulation, grant transfers and other public policy purposes. Given the pivotal role these classification systems play in public policy, their accuracy is a matter of some importance. Classification systems take several forms typically consisting of groupings of municipalities based on factors such as degree of urbanisation, population size and the like. However, to date none of these classification systems have been tested for homogeneity with respect to environmental constraints or validated against external data. This paper employs the classification system for New South Wales (NSW) local authorities as a representative case study to demonstrate that a wider range of external constraints should be considered for the robust classification of local councils.     

Education for Modernisation? The Impact of Higher Education Member Development Programmes on Councillors’ Perception and Performance of their Roles

The recent ‘modernisation’ process in local government has brought about the most significant, and certainly the most explicit, changes in councillor roles for decades. At the same time – partly as a result of this and partly for other reasons – there has been a significant growth in the provision of training for councillors, and in particular, training – or, rather, education – programmes provided by higher education institutions (HEIs). These accredited programmes, leading to standard, nationally recognised academic qualifications at a range of levels, first appeared in the early 2000s, and have been steadily growing since. The entry of supposedly disinterested institutions and academics and the introduction of accreditation into the field of member development raise a number of questions around potential conflicts of interest between councillors, officers and the academy, councillor motivation and selection processes. Of particular interest is the question of what HEIs and the courses they are providing are doing, deliberately or otherwise, to shape, reinforce or challenge the new (and old) roles explicitly and implicitly being introduced and promoted through the modernisation reforms. This article utilises interviews with councillors, local authority officers, academics and representatives of national bodies representing or with an interest in local government to examine how councillors’ roles and the way that they perform them are perceived by all involved, and whether these are altered by participation in a higher education programme of study.     

Performance Management in the Public Sector: Does It Decrease or Increase Innovation and Performance?

An important discussion in the performance management literature is how performance contingent incentives affect goal attainment. Incentivizing management tools are typically implemented to improve performance, but due to motivation crowding they may decrease innovation and performance. This article focuses on public research institutions and uses both existing performance studies of publications and two new innovation studies of patents to investigate effects of both financial incentives and sanctions within and between universities. Our findings indicate that public managers can create an environment supportive of innovation and performance through the use of performance management tools, but that this is no automatic link.     

Releasing Constraints to Growth or Pushing on a String? Policies and Performance of Mexican Micro-Firms

Using firm-level data from Mexico, this paper investigates the firm characteristics associated with participation in credit markets, access to training, tax payments and membership in business associations. We find that firms which participate in these institutions exhibit significantly higher profits. Moreover, firms that borrow from formal or informal sources and those that pay taxes are significantly more likely to stay in business but firms that received credit exhibit lower rates of income growth. These results persist when firm characteristics that are arguably correlated with unobserved entrepreneurial ability are controlled for. Our findings suggest that the significant within-country differences in firm productivity observed in developing economies are due in part to market and government failures that limit the ability of micro-firms to reach their optimal sizes.     

Does Decentralization Reform Always Increase Economic Growth?: A Cross Country Comparison of the Performance

This study aims to test the impact of decentralization on the economic growth of a country. Based on the longitudinal data set of 63 countries with a time series spanning 1960 to 2007, the test result reveals that there is a negative relationship both between fiscal decentralization and GDP growth and between political decentralization and GDP growth. In order to examine the different impacts of decentralization, the same analysis was applied to subsets of countries categorized into three groups according to the economic stage of the country. This further analysis found that there is a negative relationship between political decentralization and growth in developing countries, between fiscal decentralization and growth in semi-developed countries, but no relationship in developed countries. These results show that decentralization is not always instrumental in economic growth, which means that the time variable, or more precisely the stage of economic development of a country, is an important factor when introducing decentralization reforms.     

Enhancing Employees’ Work Performance through Organizational Justice in the Context of Financial Crisis. A Study of the Greek Public Sector

In a period of economic crisis, the increasing pressure of sparse financial resources and the structural reforms in labor law are factors pushing and forcing managers of both public and private organizations to do more with less. The current study explores how employees’ performance in the public sector is affected by perceptions of organizational justice in terms of resource allocation (e.g., benefits and compensation). The responses received from a sample of 490 employees working for public organizations in Greece indicated that work performance is significantly and positively related not only to employees’ satisfaction with pay, but also to employees’ perceptions of distributive and procedural justice.     

The Correlates of Local Government Responsiveness Under Decentralization: Do Performance Ratings Matter in the Philippines?

To improve local service delivery under decentralization, performance ratings are often introduced. In this article, performance ratings and other correlates of the citizens’ assessment of the responsiveness of their local governments are investigated with a regression analysis of survey data collected during the pilot test of a performance rating scheme in 12 Philippine cities and municipalities in 2001–2003. The local governments in the eight sites where the ratings were announced are assessed less responsive by their own constituents than those in the four control areas by theirs. Possibly, the citizens exposed to the ratings expected better performances from their officials.     

A ‘Fruitless Obsession with Accuracy’: The Uses of Sensemaking in Public Sector Performance Management

Sensemaking provides a framework for understanding and interpreting managers' working lives, based on a thorough critique of rational choice models. It refutes rational choice, and aims not to predict, prove or control but simply to explain: the making of sense. This article, based on the author's original prizewinning MBA thesis, presents research undertaken in 2005–2006 on the uses of sensemaking in understanding local government organisations' contrasting experiences of performance management systems: an internal system in Canadian city government, and an externally-imposed system in the form of the now abandoned Comprehensive Performance Assessment (CPA) in British local government. Key literature utilised includes social and organisational psychologist Karl Weick, British complexity theorists such as Ralph Stacey, and a literature on the politics of organisational behaviour (such as Guy Peters et al.). A critique of rational choice and summary of sensemaking precedes an account of phenomenological case study research across two countries, undertaken using ethnographic field methods. The author argues that using sensemaking to understand performance management systems provides a further imperfect means of making sense of inherent organisational equivocality. These systems are radically interpreted as devices for making sense of experience in organisations in which human behaviour cannot be expected to be forever accurately predicted and controlled. Conclusions with enduring relevance for practising managers are presented on the personal, tactical, methodological and philosophical ‘uses’ of sensemaking in managers' working lives.     

Does Power Corrupt? An Empirical Study of Power,Accountability, and Performance Triangle in Public Administration

Foundational work in public administration has considered the relationship between administrative power, accountability, and performance in public organizations. Even with the vast literature addressing power, accountability, and performance, scholars are still theorizing on how they influence one another. This study proposes and empirically tests a theoretical model of the relationships between each of these three constructs. Data are analyzed from an original survey of a national sample of US local government public administrators—city managers. Using structural equation modeling, results show that there are positive relationships between power and accountability, power and performance, and accountability and performance. The article discusses theoretical and practical implications of these findings.     

Auditee Strategies: An Investigation of Auditees’ Reactions to the Norwegian State Audit Institution’s Performance Audits

This article contributes to theory on accountability—how it is played out and responded to. It uses the Norwegian State Audit Institution as an illustration. The responses of the audited entities to the SAI’s institutional pressure were identified through an analysis of four different cases. Four auditee strategies were identified. They indicate that the performance audit has impact when the auditees agree with the conclusions of the SAI. Sanctions from the control committee and the Parliament are equally important. Even though the extent of sanctions and conflict of opinion matter for the auditees’ responses, the effects are context dependent.     

Do School Board Governance Best Practices Improve District Performance? Testing the Key Work of School Boards in Wisconsin

The most prominent set of school board governance best practices used in the United States is the National School Boards Association’s (NSBA’s) Key Work of School Boards. In this article, we operationalize adherence to the Key Work of School Boards with multiple survey items answered by Wisconsin school board members. Using multivariate regression models, we find that adherence to the best practices results in improved achievement in districts represented by board members who have served for five or more years. The findings support the idea that school board governance behaviors are linked to district-level academic outcomes.     

On the Colonial Origins of Agricultural Development in India: A Re-examination of Banerjee and Iyer, ‘History,Institutions and Economic Performance’

Banerjee and Iyer find that districts which the British assigned to landlord revenue systems systematically underperform districts with non-landlord based revenue systems in agricultural performance, after the onset of the Green Revolution in the mid-1960s. Based on colonial documents, archival research and the work of historians, we correct a mis-interpretation of the land revenue system in Central Provinces, which BI characterise as landlord based. The historical evidence suggests that this region should be attributed to a mixed landlord/non-landlord based revenue system. Using a more appropriate classification, we find no evidence that agricultural performance of Indian districts in the post-independence period was adversely affected by the landlord land revenue system.     

Comprehensive Performance Assessment and Public Services Improvement in England? A Case Study of the Benefits Administration Service in Local Government

The purpose of this paper is to independently evaluate the impact of the Comprehensive Performance Assessment regime on one particular public service, namely the provision of council tax and housing benefits distributed by local authorities throughout the course of the regime. This service was assessed in every iteration of the CPA methodologies and it included one of the few key performance indicators (KPIs) where the definition of the performance indicator, the means of collection and the public reporting of its results, remained the same throughout the CPA period between 2002 and 2008.

The findings show that there were considerable and consistent improvements in benefits administration nationally within England and across all of its regions. The paper then investigates a series of propositions. Whether there was any significant variations in the performance of larger as opposed to smaller authorities, or between predominantly rural authority areas and urban authorities or between authorities with different party political control. Finding no significant differences the research suggests implementation of the CPA regime itself appears to have had a catalytic effect upon the performance of the benefit administration services within local authorities throughout this period. The paper therefore concludes with a brief discussion as to whether the findings support the theoretical position of proponents of neo-institutionalism isomorphism or more traditional rational actor theories of public choice.     

HRM: Performance Relationship: Need for Further Development?

The last decade of empirical research on the HRM value additions, also known as the “HRM and performance” debate, demonstrates evidence that HRM does matter (Huselid, 1995 Huselid, M. 1995. The impact of human resource management on turnover, productivity and corporate financial performance. Academy of Management Journal, 38(3): 635–672. [Crossref], [Web of Science ®] , [Google Scholar]; Guest et al., 2003 Guest, D.E., Michie, J., Conway, N. and Sheehan, M. 2003. Human resource management and corporate performance in the UK. British Journal of Industrial Relations, 41(2): 291–314. [Crossref], [Web of Science ®] , [Google Scholar]; Wright et al., 2003 Wright, P., Gardner, M. and Moynihan, L. 2003. The impact of HR practices on the performance of business units. Human Resources Management Journal, 13(4): 21–36.  [Google Scholar]; Rehman et al., 2010). Unfortunately, the relationships are often statistically weak and the results ambiguous. This article reviews and attempts to extend the theoretical and methodological issues in this debate. Its aim is to build an agenda for future research in this area. A brief overview of achievements to date is followed by the theoretical and methodological issues related to what constitutes HRM, what is meant by the concept of performance, and the nature of the link between these two. In the final section, it is argued that research designs should start from a multi-dimensional concept of performance, including the perceptions of employees, and build on the premise of HR systems as an enabling device for a whole range of strategic options. This implies a reversal of the strategy-HRM linkage.     

From Accountability to Decision-Making? Budgeting with Mandated Performance Measures

Government agencies in many nations, including local school districts in the United States, are under pressure to shift to an outcome-based approach to accountability. While the implications of such systems are widely debated, the use of performance measures within local school districts for budgetary decision-making has received relatively little attention. This study of school business officials finds that mandated performance measures, specifically standardized test scores, are important factors in budgetary decision-making but less influential than other factors. Variables that help explain the influence of mandated performance measures include district performance, socio-economic status, and the importance of community involvement in decision-making.     

“Institutions and Economic Performance: The Use and Abuse of Culture in New Institutional Economics”: A Response to Heydemann

Applications of institutional analysis to the explanation of economic performance come in many flavors. Some economists have made use of an economics-oriented flavor in treating culture as one component of that analysis. Steven Heydemann uses a more political flavor of institutional analysis to argue that two of these economists, Douglass North and Avner Greif, have overly simplified and homogenized the concept of culture and the way in which it affects economic performance. He goes on to identify several instances in both the economic history and contemporary experience of the Middle East where he claims that such over-simplification has led to shortcomings in the analysis. This paper suggests that while some of Heydemann’s claims have merit, several others are exaggerated.

Constraints or Complaints? Business Climate and Firm Performance Perceptions in Uganda

This paper identifies the business constraints that are most binding for firm performance. Using panel methods on novel quarterly Ugandan business climate data, we exploit perceived changes in business climate constraints to account for changes in firm performance. Not all identified constraints are binding for firm performance. Macroeconomic instability, demand stability, access to finance, corruption/bribery, and weather variability are found to be binding constraints. Firms’ expectations about future performance outcomes are associated with current perceptions about these constraints, alleviating endogeneity concerns to some extent. While taxation constraints are usually highly ranked, we do not find evidence linking them to firm performance.     

Downsizing and Organizational Restructuring: What Is the Impact on Hospital Performance?

Abstract

In recent years, hospitals have radically restructured their operations while significantly downsizing their workforces. To date, little is known about the combined effect of these change processes on organizational functioning. There have been few large‐scale studies investigating how hospitals have performed when both organizational restructuring and downsizing are used concurrently. The research reported here sets out to separate and isolate the independent and combined effect of organizational restructuring and downsizing on hospital performance. In particular, it aims to address the following question: Do hospitals which undergo significant organizational restructuring while maintaining their workforce complement perform any better than hospitals that institute significant restructuring while heavily downsizing, and any better than hospitals which heavily downsize but undertake little or no organizational restructuring? Categorical regression analysis results from a sample of 285 Canadian acute care hospitals suggest that organizational restructuring and downsizing have differential impacts on organizational performance. Hospitals which undertook significant organizational restructuring while heavily downsizing were perceived to perform better than hospitals that heavily downsized but conducted little or no organizational restructuring, but performed worse than hospitals that undertook significant restructuring while maintaining their workforce complement. However, when the method of conducting the change management process was controlled for, these performance differences were reduced or eliminated.