STRENGTHENING THE LINK BETWEEN PERFORMANCE MEASUREMENT AND DECISION MAKING

Many public agencies now face dual pressures to meet external accountability demands on one hand, and improve their internal performance on the other. This begs the question whether the demands that are made on public agencies to externally report on their performance have a limited or wide ranging impact on the utilization of performance indicators (PIs) for internal improvements. This article addresses this question via a small group of public agencies and public accountability authorities in Australia. It also examines the main factors that affect the use of PIs for decision making. The evidence suggests that the agencies use PIs more for meeting external reporting requirements than for achieving internal improvements. Various constraints on the use of PIs were identified, mainly technical problems, and to a lesser extent, political and organizational issues.     

Reportlng of performance measures for federal agencies: the initial impact of the chief financial officer act of 1990

The Chief Financial Officer Act of 1990 requires the preparation and audit of financial statements for many federal government programs and agencies. The first comprehensive set of financial statements prepared to meet the provisions of the CFO Act were for the fiscal year ended September 30, 1991 and were published in CFO Annual Reports due in August of 1992. This paper presents the results of a study of performance measurement in the fiscal year 1991 financial statements of the sixty-three reporting entities filed as part of the 1992 CFO Annual Reports. The purpose of the analysis of performance measures included in the fiscal year 1991 financial statements was to determine to what extent the financial statements of each of the reporting entities included the various types of performance measures identified in the framework developed for this project. The paper also includes an in-depth analysis of the performance measures reprted by the Social Security Administration and the Department of Labor.     

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.     

THIS ARTICLE HAS BEEN RETRACTED: STRENGTHENING THE LINK BETWEEN PERFORMANCE MEASUREMENT AND DECISION MAKING

Retraction: The following article from Public Administration, ‘Strengthening the link between performance measurement and decision making’, by Jeannette Taylor, published online on 18 December 2009 in Wiley Online Library ( www.wileyonlinelibrary.com ) and in Volume 89:3, September 2011, pp. 860–878 (DOI: 10.1111/j.1467‐9299.2009.01802.x), has been retracted by agreement between the author, the journal Editor in Chief, Arjen Boin, and Blackwell Publishing Ltd. The retraction has been agreed due to a production error, as a duplicate version of the article, entitled ‘Strengthening the link between performance measurement and decision making’ by the same author (DOI: 10.1111/j.1467-9299.2009.01788.x ) was previously published in volume 87:4 of the same journal. The publishers apologise to the author and to our readers for this error. REFERENCE Taylor, J. (2011), Strengthening the Link Between Performance Measurement and Decision Making. Public Administration, 89: 860–878. doi: 10.1111/j.1467‐9299.2009.01802 Many public agencies now face dual pressures to meet external accountability demands on one hand, and improve their internal performance on the other. This begs the question whether the demands that are made on public agencies to externally report on their performance have a limited or wide ranging impact on the utilization of performance indicators (PIs) for internal improvements. This article addresses this question via a small group of public agencies and public accountability authorities in Australia. It also examines the main factors that affect the use of PIs for decision making. The evidence suggests that the agencies use PIs more for meeting external reporting requirements than for achieving internal improvements. Various constraints on the use of PIs were identified, mainly technical problems, and to a lesser extent, political and organizational issues.     

Poland and the international system: external influences on democratic consolidation

Democratization in Poland has been heavily influenced by agents and structures external to the Polish state. However, the influence of these external agencies is mediated through domestic social and political institutions, the state foremost among them. The Polish state's response to and interaction with external agencies is heavily conditioned by the very process of democratization which these agencies seek to influence. Thus, the impact of external agencies on the democratic consolidation process cannot be understood without reference to the influence that democratization has played in reshaping Poland's foreign relations. This paper explains the interaction between systemic and domestic factors in shaping the democratic consolidation process in Poland.     

Exploring Contracts as Reinvented Institutions in the Danish Public Sector

Contracts have been on the agenda in public sector reform in most OECD countries. In Denmark, contracts have been considered as one of the most important tools in reorganizing the public sector. The article examines the implementation of contract agencies in central government in Denmark during the 1990s. First, a review of contractual theory distinguishes between 'hard' and 'soft' contracting. Second, recent developments in contracting in Denmark are examined, and three phases of contract agencies are identified. Contracts have been supported by other tools for reporting on performance like annual reports. Third, it is argued that Denmark has put co-operation and negotiation before more strict management and control. The Danish experience can be seen as an alternative to the principal-agent model. The article finishes by discussing the pros and cons of the Danish approach, and suggests that although the pragmatic approach has merits, it may lead to problems in the future concerning the credibility of the whole project.     

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.     

IMPROVED PERFORMANCE IN LOCAL ECONOMIC DEVELOPMENT: A WARM EMBRACE OR AN ARTFUL SIDESTEP?

This article examines the extent to which changing approaches to performance management have had an impact on a range of agencies responsible for local economic development programmes in Britain. It explores the possibility that the effectiveness of public programmes could be more sharply highlighted and incorporated in the performance review of organizations. It demonstrates that major improvements have occurred but that overall the planning and management of local economic development remains largely incremental. While the FMI (Financial Management Initiative) has led to greater understanding of the extent to which corporate and programme accountability can be achieved in public agencies, it is not clear that sufficient momentum has been achieved for future changes to be self-generating. Further progress in performance management continues to be dependent on strong external pressures to publicize, probe and reward demonstrable improvements in public sector performance.     

Effects of local government social media use on citizen compliance during a crisis: Evidence from the COVID-19 crisis in China

Improving citizen compliance is a major goal of public administration, especially during crises. Although social media are widely used by government agencies across the globe, it is still unclear that whether the use of social media can help local governments improve citizen compliance especially during crises. Based on an original daily panel dataset of 189 cities in China during COVID-19, this study provides empirical evidence for the positive effect that crisis-related social media posts published by local government agencies has on citizen compliance. In addition, this effect is mediated by the topic of prevention measures in social media posts, and is stronger in cities with higher GDP per capita, better educated citizens and wider internet coverage. The findings imply that social media is an efficient and low-cost tool to assist local government agencies to achieve public administration objectives during crises, and its efficacy is largely dependent on regional socioeconomic status.     

Cultural Resistance,Output Measures,and Audit Practice: Impact on Non-Implementation of Program-Based Budgeting in Nigeria

Excessive spending on recurrent expenditure hampers economic growth. A program-based budgeting approach has been proposed to discipline fiscal excesses of agencies outside direct civil service machinery but government is inactive. This study hypothesized that difficulty in securing output measures, resistance from politicians, agency heads, and workers; current audit practice; and cost–benefit considerations, hinder implementation. Analysis of perceptual data reveals that resistance from politicians and employees is the major factor that hinders implementation of a program-based budgeting in Nigeria. In addition, difficulty in securing measures to quantify outputs thwarts implementation initiatives, and current audit practice whereby private audit firms audit operational activities of agencies only at year-end subvert program reviews. The study recommends that politicians be advised on political considerations in budgetary allocation; a performance measurement committee be set up to develop measures of outputs acceptable to workers; and a body of auditors be nationalized to undertake audit of government agencies.     

Guyana Gold: A Unique Resource Curse?

ABSTRACT

This article offers explanations for the underwhelming economic performance of Guyana, a country heavily dependent on the revenue generated from gold mining. Here, government intervention has spawned a gold mining sector which today is comprised exclusively of local small and medium-scale operators. But whilst this rather unique model appears to be the ideal blueprint for facilitating local development, the country seems to be experiencing many of the same setbacks that have beset scores of other resource-rich developing world economies. Unless these problems are anticipated, properly diagnosed and appropriately tackled, a resource curse-type outcome is inevitable, irrespective of the context.     

Meritocracy and the Singapore Political System

The separation of implementation from policy has been diffused as ‘agencification’ around the world. It is considered an organisational reform based on new public management (NPM). The semi-autonomous public organisations executing policy are set up and are given a greater flexibility in operations in exchange for strengthening accountability for results. The central government of Japan also adopted the organisational reform in which agencies were called independent administrative institutions (IAIs). The reform intends not only to make the public service more transparent but to improve efficiency and quality of services through separating the implementing functions from the policy units, ministries and departments. It is assumed that flexibility in operations and result orientation would improve organisational performance through a feedback instrument of evaluating results into the budget other than an incentive mechanism. This article investigates whether the intended objectives have been accomplished. The specific focus is on the impacts on the budgetary system in terms of performance. The analysis shows that in Japanese agencies, ex-post performance information has not been fed into the budget process. Also the actual outcomes are explained by an incremental funding system, technical problems in measurement of results (performance measurement) and bureaucratic motivation through adopting a principal agent model.     

The UK Core Executive's Use of Public Service Agreements as a Tool of Governance

The contemporary literature on governance notes the difficulties that core executives, central points for steering and co-ordinating public activity, have in undertaking this strategic function. The UK core executive, particularly the Treasury, has developed a regime of Public Service Agreements (PSAs) as a novel and ambitious tool of governance, particularly for public services. The tool incorporates improved priority setting, information about performance, and incentive effects for ministers and officials through a system of performance targets. However, systems for setting priorities are fragmented and include those focused on the Prime Minister's Office and Cabinet Office. Monitoring has been improved, although measures often provide a limited, or sometimes even potentially misleading, impression of progress towards valued goals. The direct incentive effects of PSAs appear to be weak. While the link between the system and the allocation of expenditure has engaged the interest of departments in discussing priorities, ministerial and other officials' responsibility for performance has been limited. Targets have increasingly been seen as by ministers as minimum pledges of performance rather than tools for stretching and improving performance. Various forms of blame avoidance and blame shifting have occurred and the credibility of the PSA system is in danger of being undermined by frequent changes to targets and misrepresentation of performance in some areas.     

World Bank Lending And Other Financial Flows: Is There a Connection?

At a time when there is a serious debate about reforming the international financial architecture, it is important to understand how existing multilateral agencies affect financial flows to emerging and less-developed countries. This paper extends past research - which has focused on the International Monetary Fund - by examining the various mechanisms through which the World Bank may be associated with other financial flows, and by presenting new empirical evidence based on regression analysis. Little support is found for a positive connection. The implications of this finding for effective reform of the Bank and its various activities are then discussed.     

Medicare reimbursement,debt financing,and measures of service efforts and accomplishments in the healthcare industry

This paper investigates the relationships among selected SEA measures and Medicare reimbursement. The findings generally indicate that those hospitals most heavily reliant on Medicare reimbursement are characterized by different levels of service efforts and accomplishments than other hospitals. The empirical analysis also provides evidence of a linkage between SEA measures and market measures of the risk associated with bonds issued by the sample hospitals.     

Functional policy actions: Agency activities subsequent to budgeting

This study considers numerous non-budgetary measures of policy activity (called functional actions) that are conducted by agencies as they seek to implement their programs. Relationships found in earlier research among maturity, coalitions, and budgetary variables with the functional actions of agencies are extended here through a subsample test of the data and through the utilization of functional actions as independent as well as dependent variables. These functional actions are considered important because they directly affect the lives of citizens, seem manipulable by agencies, and represent a crucial first step in evaluating both the governmental and societal impact of agency programs. Data for eight federal agencies from fiscal years 1960 through 1971 were usedincorporating percentages and simple bivariate correlation coefficients. While the findings remain tentative,numerous implications are suggested for agency behavior and for the empirical study of public policy.     

Is Greater Fishery Access Better for the Poor? Explaining De-Territorialisation of the Tonle Sap,Cambodia

Abstract

The general tendency for states in South East Asia is to claim exclusive rights over natural resources at the cost of impoverishing the people who depend on them for subsistence. However, contrary to what one might expect, the government of Cambodia initiated unconventional intervention: it cancelled the fishing lots system, the de facto property rights that had granted exclusive access to certain aquatic resources to licence holders. These interventions, focused on Cambodia’s largest lake, question the rationale behind such state measures to forfeit control. This paper demonstrates that political interests such as garnering election votes and circumventing certain bureaucratic agencies explain this radical shift in policy. Opening up previously exclusive lot areas to the communities won immediate support from the poor fishermen. However, now that the lake is under a more diverse, if obscure, system of governance managed by multiple agencies, the environmental and social consequences of the policy shift deserve a fuller examination.     

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.     

THE CONTRIBUTION OF ORGANIZATIONAL FACTORS IN THE SUCCESS OF ELECTRONIC GOVERNMENT COMMERCE

ABSTRACT

The purpose of this study is to identify factors which affect the success of electronic commerce applications in federal agencies and to explore the role of transformational leadership and strategic planning for Web sites in the success of electronic commerce applications designed to serve citizens. Based on the literature review relative to electronic government commerce, the research model in this study postulates that transformational leadership, strategic planning for Web sites and other factors such as the size and complexity of the Web site influence the success of electronic commerce applications in federal agencies. The success of electronic commerce applications is the dependent variable and is measured by a combination of user-based criteria and system-based criteria. This research employed a combination of an online questionnaire survey and a Web structural survey. Questionnaires were electronically mailed to IT managers and/or users who have e-mail addresses at federal agencies. The results of the research confirmed the close association between organizational factors (transformational leadership and strategic planning for Web sites) and the success of electronic commerce applications in federal agencies.     

AGENCIFICATION AND BLAME SHIFTING: EVALUATING A NEGLECTED SIDE OF PUBLIC SECTOR REFORMS

The establishment of autonomous agencies has been a strong trend in the public sector across countries for about 25 years. In line with the official rhetoric accompanying such reforms, almost all reform evaluations have focused on various kinds of performance improvements. This article investigates a set of behavioural consequences of such reforms, which have been claimed by the blame avoidance literature, but have never been subjected to systematic empirical analysis. In particular, the article examines how a reform of agencification influences the propensity of agency managers to blame the political principals when the agency is subject to public criticism. Furthermore, it examines how the reform influences the blaming rhetoric of ministers and MPs. To evaluate such reform effects systematically, the article introduces a new empirical approach and illustrates the utility of the approach in a case study of the transformation of the national Danish railway company from 1995 to 2007.