Getting Performance from Performance Management: A Framework for Strategic Management Choices

The choices for optimal performance management depend upon the circumstances – there is no single ideal management approach. The principals have three basic tools available to encourage high performance from subordinate entities: they can delegate authority, impose rewards or sanctions, and/or develop (or enhance) a performance measurement system. These tools allow the principals to motivate, delegate, educate, reevaluate, and/or reassign the agent in order to generate increased learning and improved outcomes from the program. Thus, depending on the nature of the agency culture and the quality of the performance measures, different managerial responses will have different results.     

Public management: first approximations

Public Management as a synthesis of business management and public administration confronts some severe conceptual problems that are rooted in the dissimilarities between business and government. In the two books reviewed, the authors attempt to build concep- tual frameworks for studying public management which minimize the importance of many of these differences. As a result, both books come closer to meeting the expanding market for texts which present management tools and techniques than most of the other texts written in the past few years using a “Public A.dministration as Political Science” approach. Nevertheless, both books still fall considerably short of providing a coherent and comprehensive solution to the problem of defining the scope and substance of the field of Public Management. Therefore, Public Management, as presented in these books, remains largely a truncated field of study limited to issuestof internal management control and ,cost effectiveness. For the field to flourish, it must find a way to bridge and dissolve the dichotomies between politics and administration, policy and management, and political and technical rationality.     

The Role of Risk in Improving Goal Setting in Performance Management Practices within Public Sector: An Explorative Research in Courts Offices in Italy

The study investigates whether the adoption of a risk-based approach that allows public managers to take into account the context and external not-controllable factors during goal setting may contribute to overcome unintended managerial side effects of performance management (PM) practices that hamper their success within public organizations. An explorative research is carried out on court officials of Italian public administration. The results from this study show that the adoption of a risk-based approach could enhance goal setting within the PM process and provide interesting insights to policy-makers invested of the responsibility to improve the effectiveness of current PM procedures.     

Rational Management, Performance Targets and Executive Agencies: Views from Agency Chief Executives in Northern Ireland

The way in which central government services are delivered in both Britain and Northern Ireland has changed significantly since 1988. Executive Agencies have been created with the aim of improving the efficiency and effectiveness of service delivery, with changes being supported by an increasing focus on the rational management model as a basis for improving management in the public sector. This paper is a case study of nine agencies within the Northern Ireland 'family of agencies' and is the first study of its type in the UK. It presents the results of a series of interviews with agency Chief Executives that attempted to identify perceptions with respect to the development, use and impact of mission statements, objectives, targets and performance measures (components of a rational management approach). The main findings of the research include: Northern Ireland Chief Executives perceive an increased focus on quantification since agencification; this focus is viewed as helpful in providing a basis for improving management; systems in practice are considered to be much more flexible than a rigid management model would normally suggest; and, it is thought that the potential adverse consequences of such an approach can be managed.     

STRUGGLING WITH AMBIGUITY: PUBLIC MANAGERS AS USERS OF NPM‐ORIENTED MANAGEMENT INSTRUMENTS

Improving public sector performance involves both ‘knowing’ and ‘doing’ problems. With the emphasis on the ‘doing’ problem, this study examines public managers as users of management instruments (MI) in attempts to improve the performance of public services. The article explores uses of three MIs in Finnish local government by using the conceptual framework of ambiguity. The article demonstrates why and how the use of MIs does not always simplify the public management exercise. It may become even more ambiguous. It is important to comprehensively understand the ways in which uses and users of MIs intervene in the process of public service delivery. It is argued that understanding MI uses in public administration necessitates a more profound theoretical approach acknowledging the ways in which ‘rational intentions' for performance improvements turn into situated, boundedly rational, managerial practice. In the context of productivity programmes, such understanding is essential to researchers and practitioners of public administration.     

Twelve Years into the Performance Measurement Revolution: Where We Need to Go in Implementation Research

Abstract

The heightened interest in performance measurement (PM) in government holds tremendous promise for both academicians and practitioners. Indeed, under a best-case scenario, PM is a subject in which public administration researchers provide relevant information that informs practice and bolsters citizen views of government. However, as the authors contend, many fundamental questions remain regarding implementation. Moreover, the research methods generally deployed in PM research are unlikely to answer these questions, not the least of which is the cost-effectiveness of PM implementation. Thinking paradigmatically about PM research entails an appropriate linkage of important questions and appropriate research methods. Twelve years after the Governmental Accounting Standards Board first proposed Service Efforts and Accomplishment reporting, the authors believe it is time to begin as systematic approach to PM implementation. Public Administration as a discipline can make a huge contribution to public management with sound research in the PM arena. But achieving this end will not be easy in light of the discipline's historical research shortcomings.     

Performance Management and Deficit Adjustment in U.S. Cities: An Exploratory Study

Performance management or PM has been promoted as a tool to transform government. Claims that PM will enable governments to “do more with less,” “increase efficiency,” provide “value for money,” and make “rational budget decisions” abound. Has PM helped city governments in the United States cope with the effects of the 2007–2009 Great Recession? Theory suggests that PM can provide the informational and analytical foundation necessary for city officials to implement comprehensive but conflictive budget-cutting and revenue-raising strategies. By facilitating deep expenditure cuts and tax increases, PM can indirectly influence budget deficits. Using data from a national survey of city governments and multiyear audited financial reports, the empirical analysis shows that PM cities favored what are essentially decremental responses to fiscal crises that lead to marginal changes in revenues and expenditures. Not surprisingly, there is no evidence that PM influences the size and change in budget shortfalls.     

Reconsidering Women’s Empowerment: the Contradictory Effects of Microfinance for Guatemalan Women

In light of changing global trends that connect women’s empowerment and development, this paper extends debates by exploring how projects aimed at empowering women in the Global South intertwine with diverse women’s lived realities in ways that complicate assessments of “success” or “failure.” The article begins by analyzing the incorporation of the concept of empowerment into mainstream development, demonstrating that the conceptual fuzziness of empowerment has allowed it to be associated with vastly different development strategies: some have interpreted it narrowly to promote self-help strategies whereas others have interpreted it broadly to promote structural change. The former has targeted women with “choice-enhancing” resources that are thought to have spillover effects; the latter tends to adopt a more holistic approach. In order to explore how these contrasting strategies affect women’s empowerment experiences and outcomes on the ground, this article then draws on comparative ethnographies of two microfinance non-governmental organizations (NGOs) that are emblematic of these diverging approaches. It finds that despite their differences, both spillover and holistic approaches lead to diverse and contradictory experiences that defy easy classification as “empowering” or “disempowering.” This finding reveals the advantages and limitations of relying on the concept of empowerment for evaluating development outcomes and raises questions about our ability to generalize about the effects of the varying approaches encompassed under the current feminization of policy. The analysis also suggests that we should adjust our understanding of women’s agency to include the agency women exercise when they transform, challenge, or reject empowerment projects themselves.     

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.     

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.     

Management Tools for Quality Performance Improvement in Italian Hospitals

ABSTRACT

Leadership plays a decisive role in improving the quality performance in healthcare organizations. Research examines how Italian hospitals generate conditions to support leadership, at both top management and department/unit level, in improving quality. It focuses on the role of the management in processes for the delegation of responsibilities, and tools implemented to facilitate clinical leadership. Data show that: mandate is linked to full accountability; top management supports leadership for reinforcing outputs; and evaluation processes are systematically implemented. Furthermore, data show that leaders require performance systems to enhance clinical professionalism and to commit to improving performance.     

Reforming Budget ritual and Budget practice: The Case of Performance Management Implementation in Virginia

Abstract

Virginia is accepted as one of the leading examples of performance-based reform among US states. This article reports on some of the key factors that have helped to ensure that these reforms have established performance as a basis for both budget ritual and budget practice. Virginia's strong record of implementation is explained as the result of a consistent legislative basis for reform, effective reform leadership by a core agency, the integration of results-oriented activities into all facets of the financial management process, a focus on high levels of citizen engagement, and an emphasis on ensuring that performance management systems are tailored to be useful.     

The financial management initiative in the u.k. public sector: the symbolic role of performance reporting

The emerging principles of performance reporting are explored in the context of urban policy and inner city regeneration programmes in the UK, upon which a great deal of evaluative research has been carried out in the last decade. The paper questions the extent that performance management principles as embodied by the FMI are necessary for public accountability. It illustrates that implementation of performance reporting in the urban regeneration programme has had a symbolic role in generating myths and images about practice which imply that the “rational model” of decision making is in operation. The imposition of performance reporting cannot per se guarantee improvements, in the sense of learning, in the organising approaches adopted by public sector organisations.     

Does the Millennium Challenge Corporation reinforce capitalist power structures or empower citizens?

In development practice, how does ‘mutual benefit’ accrue, and to whom? China criticises America for perpetuating capitalist power relations and claims it can seek a new geopolitical order based on South–South cooperation. Meanwhile, there has been an extraordinary shift of emphasis towards the private sector as a driver of development, but this shift is attracting increasing criticism. The Millennium Challenge Corporation (MCC) – the only development agency to grow in influence under the Trump administration – is evaluated in the light of these two key themes. Neither China nor the private sector is successful in achieving ‘mutual benefit’ for ordinary citizens – both replicate existing power inequalities. As with the rise of both China and the private sector, the MCC also enmeshes developing countries further into the existing neoliberal capitalist structures. However, the advantages of the agency should not be dismissed outright, as its Ruling Justly and Investing in People indicators can enhance the capacity of citizens to challenge these power structures themselves.     

Sovereignty,bare life and the Arab uprisings

Five years after people took to the streets in protest at political organisation across the Middle East, the consequences of these actions remain. As the protests gained traction, states began to fragment and regimes sought to retain power, whatever the cost. While a great deal of focus has been upon what happened, very little attention has been paid to the role of agency within the context of the fragmenting sovereignty and political change. This article contributes to these debates by applying the work of Giorgio Agamben to the post-Arab Uprisings Middle East, to understand the relationship between rulers and ruled along with the fragmentation of the sovereign state. The article argues for the need to bring agency back into conceptual debates about sovereignty within the Middle East. It concludes by presenting a framework that offers an approach building upon Agamben’s bare life.     

Process Management as a Contagious Idea: A Contribution to Røvik's Virus-Inspired Theory

‘Travelling ideas’ denotes the fact that virtually identical management ideas crop up more or less simultaneously in similar organizations. Røvik, who recently launched his ‘virus-inspired theory’ approach, seeks to pinpoint the possibility that the encounter between idea and practice may be lasting, ideas may affect practice, and leaders in organisations may play a more active role than the one often depicted in management fashion theory. This article is a contribution to his virus-inspired theory. It focuses on processes in their pragmatic form, as value-creating flows in organisations. We have studied Process Management (PM) as an idea, and how it has penetrated and flourished in the Swedish Customs Service. We argue that the empirical test in this article supports Røvik's belief that a virus-inspired theory gives a richer picture than the fashion theory. Through our analysis we show that four of our six hypotheses, derived from the virus-inspired theory, are strengthened by the empirical story from the Customs Service.     

Satisfaction with and Success of Employee Training from a Public Service Motivation Perspective

New public management requires modernization processes, including modern human resource practices, to enhance public sector performance. According to human capital theory, well-qualified and highly motivated public sector employees improve institutional performance; this study investigates the extent to which employee training as human resource practice can enhance one component of employees’ public service motivation (PSM), namely public interest, and their competencies as employee outcome. We examine public interest as a mediator or a moderator of the relationship between satisfaction with employee training and the resulting competence gain. The findings indicate a positive direct effect of satisfaction with employee training on competence gains and a mediating effect of public interest.     

Obstacles and Opportunities for Sustaining Performance Management Systems

Measuring performance in public organizations has been a growing trend for several decades. Designing, adopting, and implementing this style of management system have been the topic of much practitioner and academic deliberation. One struggle those determined to adopt performance measurement and management systems have faced, though, is the ability to sustain them over time and actually engrain them into their decision-making frameworks. Countless barriers to long-term success exist for public organizations and this article seeks to identify and categorize them. Using a mixed-method survey design, this research shows which factors are the most important to organizations hoping to build a performance system that can stand the test of time. Capacity, knowledge, and buy-in limitations pose serious threats to these reforms and it takes a concerted effort to cultivate not only support from employees and management to pursue performance management but the technical and conceptual capacity to design the right system for the organization.     

Strategic management and public organizations: Lessons from the past and prescriptions for the future

The 1990s have become a decade of reflection and rethinking of foundational concepts in the field of public administration. Public adminstrationists are attempting to bring the best of management approaches to bear on the problems facing public organizations. Strategic management has been widely used in the private sector since the 1960s, and has gained increased acceptance in the public sector since the 1980s. It is a management approach that synthesizes much of what management theorists have long recognized as essential to effective management practice. This article traces the development of strategic management and examines what has been learned from the past that will improve future implementation efforts in public organizations.     

What We Talk About When We Talk About Management Effects: A Substantively Motivated Approach to Panel Data Estimation

In recent years, the field of public management has begun to make use of panel data sets in quantitative research about governance and public policy. While panel data permit researchers to undertake more advanced and nuanced analyses than cross-sectional data, these benefits are not realized if methods designed for cross-sectional data are used instead. This article outlines different approaches to panel data estimation, illustrating differences in the estimates produced by each approach using data from 1,000 Texas public school districts drawn across 11 years. Our findings suggest that researchers should be cautious in differentiating between relationships that occur “between” organizations and those that occur “within” an organization.