An Empirical Assessment of Performance Measurement & Management of the Public Sector by Way of the NPM Tools: A Review of the Public Sector of Czech Republic

Abstract

Czech Republic’s 2017 economic indicators gave quite significant performance and also showed resilience with consistency and prudence in its monetary policies within its inflation targeting framework. This performance could be attributed to prudent economic factors and also due to a combined relatively tight monetary policy and also accommodating fiscal policy measures. (IMF country Report Oct. 2017). In spite of all these positive macroeconomic indicators one cannot overlook the role played by measuring and managing performance within the country’s public sector. It is worthy to know that the introduction of Performance measurement as well as management within the public sector is a way to ensure transparency, Efficiency and Effectiveness in making decision that will inure to the benefit of the public sector in terms of using public funds to boost performance in the economy. This notwithstanding the picture is quite different in terms of its practice thus striking several impediments defining performance, identifying suitable indicators as well as implementing a performance management system. It is however noteworthy that the challenge is still present as of today i.e. identifying the most suitable modules for measuring and managing performance within the public sector so as not to come up with a speculative behavior of managers within the public sector of global economies. We are by this paper seeking to present the modules employed in measuring performance within the public sector of the Czech Republic as well as other drawbacks generated by these modules. We further do an assessment of the perverse effects measuring performance have on the public sector, since its knowledge will be useful in building an optimal system for measuring and managing performance. We will also do a critical review of the New Public Management (NPM) considered by many as a paradigm shift in public administration which points out the failures and or the limitations of public sector overtime and the associated problems, its nature and processes. We will also do a further assessment of some of the criticism of the NPM doctrine from the political point of view in other transitional countries and finally hypothesize the way by which these systems are employed depending on the characteristics of its activities especially in terms of contractibility, which is considered a broad construct incorporating clarity of goals, its ability to select undistorted performance metrics, and the degree by which public sector managers appreciate and control its transformational process.