Public Sector Performance Measurement Research Articles

Public administration contributes to happiness: a study on the relationship between public value and happiness in Switzerland

PurposeIn public management research, the focus in the public value debate has been on public administration organizations’ broader societal outcomes. Public value describes how public administrations form a vital part of the social context in which people develop and grow. However, there has not yet been an analysis of how public administration contributes to happiness in society.Design/methodology/approachIn this study, we empirically analyze the relationship between people’s happiness and the public value of public administration. Our approach is based on a unique Swiss survey dataset comprising 870 individuals.FindingsWe find a positive relationship between public administration’s public value and happiness. We also find preliminary evidence with a moderation analysis that the relationship between a value-creating public administration sector and self-reported happiness is stronger for public administration employees.Research limitations/implicationsWhile correlation studies cannot claim causal explanations and common method bias may additionally limit any research in social science, we took a number of measures to mitigate related problem. We tested our model in two samples and took both several procedural techniques and a survey design minimizing common method bias.Practical implicationsThe paper discusses implications for public sector performance measurement for public management and practitioners.Social implicationsThis study calls for a more positive view on the multiple functions public administration performs for society. After an era of critical voices, our study helps reclaim public administration as a positive force for society at large in times of grand challenges, such as climate crisis, demographics and digitization.Originality/valueThis study has highlighted the importance between public administration’s public value and happiness in Swiss public service organizations. The study also showed that an employment in the public administration contributes to the happiness of individuals and beyond to society.

Measuring digital government service performance: Evidence from China

Digital services of the public sector are regarded as one of the most crucial aspects of the administrative system's reform. However, empirical studies on digital services are insufficient, especially for service performance evaluation. This paper establishes a conceptual framework to model service performance with quantity and quality output measures. Based on the panel data of Chinese cities from 2017 to 2020, we employ a one-step stochastic frontier analysis (SFA) to estimate the city's digital government service efficiency (DGSE) and examine its drivers. The findings suggest that the proposed analytical framework is applicable to the public sector performance measurement when quantitative and qualitative outputs are considered. Second, Chinese cities' DGSE levels ranged from 0.149 to 0.999, with a mean of 0.798. The DGSE score also shows significant spatio-temporal heterogeneity, with the eastern area performing best, followed by the middle and western regions, and the northeastern region performing the worst. Further, exogenous factors such as fiscal decentralization, public-private partnership, urban scale, the mayor's ability, and policy intervention substantially affect the DGSE level. The results have significant policy implications for governments' digital transition in the ongoing global digital era.

Expanding public sector performance measurement and management research with actor-centred approaches in new institutionalism

PurposeIn his 2022 paper, in the Journal of Public Budgeting, Accounting and Financial Management, Sven Modell reviews and reflects on the public sector's institutional research dealing with performance measurement and management (PMM) over the past decade. Modell suggests potential extensions of this body of research. This paper seeks to contribute to the path that Modell initiated. It offers directions in which institutional theory might contribute further to research on agentic aspects of PMM in the public sector.Design/methodology/approachThe paper is a rejoinder emphasizing how institutional theory could further nurture reflection on PMM research in the public sector. The authors draw upon Modell's article and ongoing research in the institutional theory field.FindingsModell insists that institutional research on PMM in the public sector should explore the constitutive effects of PMM practices while conceiving such practices as institutionally embedded phenomena. The authors seek to extend this approach by considering the role of agency in institutional processes. To do this, the authors build on recent institutional research on agency, discussing how those new conceptualizations could nurture and develop the understanding of PMM practices in the public sector. The authors further discuss implications for coupling and decoupling as sites of agency. Such literature is relevant for examining emerging themes in public-sector accounting because it allows the authors to better conceptualize the underlying mechanisms of agency in the context of public service provision characterized by institutional complexity.Originality/valueThis paper details several implications of the current developments in new institutional theory in examining agency in the relationship between institutions and PMM, pointing at the case of decoupling. In so doing, the authors seek to stimulate a constructive exchange between public-sector accounting and a broader institutionalist body of research and suggest ways of extending the PMM research agenda.

Performance measurement in urban development: unfolding a case of sustainability KPIs reporting

PurposeThis study aims to explore the potential dynamics between performance measurement at the organisational level and emerging urban development projects at the macro-institutional field level of sustainability governance and accountability.Design/methodology/approachUsing a theoretical triangulation between three theories, namely contingency theory, institutional theory and social cognitive theory, this study investigates not only the macro-micro dynamics, but also the (recursive) micro-macro dynamics between performance measurement and urban development. Using an Egyptian public sector urban development organisation and its sustainable energy project as an empirical example, interviews, documents and observations were collected.FindingsThe dynamics emerged between field urban development projects and the (unintended) organisational implementation of the performance measurement system, the sustainability key performance indicators (KPIs) reporting system. Contributing to previous literature, these dynamics have been institutionalised through (three) interrelated levels: the (macro-field) urban development contingencies and pressures for sustainability KPIs reporting, the (organisational) institutionalisation of the urban development performance measurement system and then the (micro-organisational) cognitive role of sustainability KPIs reports in (re)making political urban development decisions.Research limitations/implicationsThis study faced some limitations that paved the way for future research axes. For political and security reasons, difficulties were encountered in conducting interviews with government actors in the sustainable energy project under study. Also, due to the practical separation of the environmental sustainability system from the sustainability KPIs reporting system in this case study, environmental sustainability is outside the scope.Practical implicationsSustainability reports may influence public sector decision-making processes in a specific urban development context. These KPIs reports may also increase public sector management opportunities for urban auditing, transparency, accountability and sustainability governance. These KPIs may also guide public sector management to lower prices in poor villages to increase smart energy consumption and improve community health.Social implicationsSustainability reports may increase decision-makers' understanding of consumer behaviours and societal changes. This may help in making appropriate political decisions to improve their welfare and regular smart energy consumption. Not only urban citizens, but this social advantage may also extend to urban development employees through employees' promotion, training and access to government-funded academic and professional scholarships.Originality/valueThis study is an attempt to develop current public sector performance measurement analyses in the emerging urban development field using a triadic analytical approach. This study also fed the literature with an extended case study that clarified the (multi-level) and (two-way) dynamics between performance measurement and urban development.

Performance measurement in the public sector: Mapping 20 years of survey research

AbstractThis paper maps 20 years of survey research on performance measurement (PM) practices in public sector organizations. Cumulative findings from the discipline of accounting enhance the understanding of public sector PM and its antecedents and effects. Four maps are presented that visualize the relationships among key variables from prior research in four empirical settings: government, health, education, and other domains. Furthermore, this review distinguishes between individual‐level and organization‐level effects of PM, and includes reflections on the appreciation of PM by public sector employees. The findings highlight that PM use and attributes such as fairness, subjectivity, and clarity significantly impact the outcomes yielded by PM systems. This paper contributes by synthesizing prior research on public sector PM and by identifying research gaps, areas of debate, and avenues for future research. In addition, findings from this review have the potential to add nuance to the sometimes‐polarized debate on the acclaimed “benefits” and “costs” of PM in the public sector.

Ambiguity in public sector performance measurement: a systematic literature review

PurposeThis paper presents a systematic literature review aiming at analysing how research has addressed performance measurement systems’ (PMSs) ambiguities in the public sector. This paper embraces the ambiguity perspective that PMSs in public sector coexist with and cope with existing ambiguities.Design/methodology/approachThe authors conducted a literature review in Scopus and ScienceDirect, considering articles published since 1985, and the authors selected articles published in the journals included in the Association of Business Schools' Academic Journal Guide (Chartered ABS, 2018). Of the 1,278 abstracts that matched the study’s search criteria, the authors selected 131 articles for full reading and 37 articles for the final discussion.FindingsThe study's key findings concern the elements of ambiguity in PMSs discussed in the literature. The study’s results suggest that ambiguity is still a relevant problem in performance measurement, as a problem that is impossible to be solved and therefore needs to be better understood by researchers and public managers. The analysis allows us to summarize the antecedents and consequences of ambiguity in the public sector.Research limitations/implicationsThe key findings of the study concern the main sources of ambiguity in PMSs discussed in the literature, their antecedents and their consequences. The study results suggest that ambiguity exists in performance measurement and that is an issue to be handled with various strategies that can be implemented by managers and employees.Practical implicationsManagers and researchers may benefit from this research as it may represent a guideline to understand ambiguities in their organizations or in field research. Researchers may also benefit from a summary list of the key issues that have been analysed in the empirical cases provided by this research. Social implicationsThis research may provide insights to limit ambiguity and thus contribute to improve performance measurement in the public sector.Originality/valueThis research presents a comprehensive review on the topic. It provides insight that suggests what future research should attend to in helping to interpret ambiguity, considering also what should be done to influence ambiguity.

20-Year History of Performance Measurement in the Local Public Sector: A Systematic Review

ABSTRACT Although many recent studies have assessed performance in a particular field, the basic principles that should be followed for successful governance are in many cases different or, by contrast, exhibit very similar features. This paper fills the gap in this area and documents the basic knowledge and limits of new proposals for evaluating the performance of local institutions, thus creating, together with the published summaries of the factors affecting performance, the basic knowledge base for further effective direction and development of this area. According to the current trend in the understanding of performance, performance should be seen as a financial and comprehensive criterion that is easily understandable, objective, and comparable. By contrast, the fundamental limit of complex methods of performance evaluation has a low potential for its application in practice, which leads to the so-called encapsulation of science and unnecessary waste of researchers’ efforts to implement their proposals.

TANTANGAN MEMBANGUN MANAJEMEN DAN PENGUKURAN KINERJA SEKTOR PUBLIK DI INDONESIA

Management and performance measurement in the public sector are inherently more complex compared to the business sector. Conflicting values such as politics and abstract performance targets make public sector performance management and measurement have distinctive points with different challenges as well. This study aims to describe the various challenges that occur in the context of developing management and performance measurement of the public sector in Indonesia after the implementation of The Law Number 5 of 2014 concerning Civil Servants. The researcher applied a literature study by conducting literature inclusion on two main bases, namely internal and external problems in management and public sector performance measurement. In the end, there are four challenges that must be considered in order to further improve the management and performance measurement of the public sector in Indonesia, namely managing the good and bad impacts of management and performance measurement, managing bias and independence of performance appraisal, managing performance during times of disruption and pandemic and managing the performance of the millennial generation.

Difficulties Concerning Public Sector Efficiency and Performance Measurement

The ability to measure public sector performance is a necessity for policymakers as well as academics and citizens of a country. This article aims to identify ways of measuring public sector performance using the measurement applicable to all countries and outlining opportunities for comparability among them. Thus, the authors highlight opportunities for performance measurement and public sector efficiency using various methods of non-parametric and parametric analysis. The starting point of the analysis considers the concept of performance, encompasses the proposed terms of productivity, efficiency and effectiveness; therefore, the measurement of public sector performance requires an exhaustive analysis in multidimensional terms, covering all core areas of a country. Moreover, understanding and developing robust international comparison possibilities will give in practice a structural framework for measuring the performance of particular relevance. Study findings indicate that performance measurement and implicitly public sector efficiency is a complex and difficult task that goes beyond simply measuring of productivity and efficiency, and requires aggregation of several key areas related to the results of a state. In summary, the analysis framework of the performance and efficiency of public sector is outlined both in terms of relevance of indicators and the methodology used. It demonstrates that methods of non-parametric analysis work at their best when all aspects of the production process can be captured in a limited number of input and output dimensions.KEYWORDS: performance, efficiency, public sector, non-parametric methods, parametric methods.

BALANCED SCORECARD METHOD IN PERFORMANCE AUDIT OF BUDGETARY USERS

The paper aims to explore how the Balanced Scorecard method can improve budgetary users' performance audit in Croatia. Literature review on performance measurement in the Croatian public sector gives an overview of the development level in strategic planning, control, and monitoring performance. The paper gives some suggestions for improving Croatia's budget system based on the identified disadvantages and weaknesses in measuring and monitoring performance.

The role(s) of accounting and performance measurement systems in contemporary public administration

AbstractThe spate of public sector reforms which have taken place in recent decades has triggered the development of a new body of research around public sector accounting and performance measurement both in public administration as well as in the (public sector) accounting literature. However, studies in accounting and public administration have at times ignored each other, proceeding in parallel. This symposium encourages the adoption of interdisciplinary perspectives in exploring the myriad roles played by accounting and performance measurement systems in contemporary public administration. Emphasizing that accounting and performance measurement systems are socially, politically, culturally constructed and, in turn, are implicated in the creation of organizations, society and political values, this symposium aims to extend the dialogue between accounting and public administration scholars in exploring how accounting, accountability and performance measurement considerations are connected to policy‐making, public services and, more generally, the building and maintenance of modern states and democracies.

Governmentality and performance for the smart city

PurposeThe purpose of this paper is to explore the role of performance measurement systems as technologies of government in the operationalisation of smart city programmes. It answers the research question: how do the development and use of performance measurement systems support smart cities in the achievement of their goals?Design/methodology/approachThis paper presents a longitudinal case study that uses an interventionist approach to investigate the possibilities and limitations of the use of performance measurement systems as technologies of government in a smart city. Interpretations are theoretically informed by the Foucauldian governmentality framework (Foucault, 2009) and by public sector performance measurement literature.FindingsThe findings address the benefits and criticalities confronting a smart city that introduces new performance measurement systems as a technology of government. Such technologies become problematic tools when the city network is characterised by a fragmentation of inter-departmental processes, and when forms of resistance emerge due to a lack of process owners, horizontal accountability and cooperation among involved parties.Research limitations/implicationsThis paper is based on a case study of a single smart city, and outlines the need for both comparative and multidisciplinary analyses in order to analyse the causes and effects of smart city challenges.Originality/valueThis paper offers a critical understanding of the role of accounting in the smart city. The ineffectiveness of performance measurement systems is related to the multiple roles of such technologies of government, which may lead to a temporary paralysis in the achievement of smart city goals and programmes.

PERFORMANCE AND CHARACTERISTICS OF MANAGEMENT IN THE PUBLIC SECTOR

Performance measurement has attracted the attention of many researchers in the area of managerial accountability over the last two decades. However, most of them focus on measuring performance only in the private sector. Meanwhile, since several years, especially after the publication of the "New Public Management" doctrine, performance measurement has emerged as an important research priority in the public sector. This does not mean that it has not previously shown interest in the public sector's efficiency problem, but it has been limited in the context of the policy appraisal concept. This concept has functioned more as a tool for assessing public policy delineation and has eventually served to redraft existing policies or practices rather than a system of measurement and performance management of public institutions.Policy evaluation methodologies are very useful, but they can only be used within a framework that assumes the presence of managerial behavior in the public sector. Where legal laws and regulations serve as a basis for dealing with issues, it is very difficult to it is assumed that efficiency will be a fundamental priority. The concept of governance, recent decades, is closely related to the process of modeling assessment procedures. Governance, as such, generally refers to the tools that serve to direct, control and co-ordinate individuals and organizations, partly autonomous ones, in the name of the interests they contribute to (Lynn, Heinrich and Hill, 1999).Some of the recent problems in the area of governance include issues of formal control over authoritative decision-makers and decentralization; focusing on powerful interest groups or goals that are difficult to describe (eg "efficiency" and "high credibility"), as well as comparing different governance regimes.A full description and analysis of the governance model is a prerequisite for further study of performance measurement in public sector activity.The logic of governance in the public sector is simple: lawmakers create the legal framework, administrators deal with enforcement, and the public pays, at least in theory, enjoys the benefits. Lawmakers are elected to act during a mandate (usually four years), but also the administrators (bureaucrats and civil servants) are nominated and supposed to have a long-term career in implementing policies and legal acts. The latter should serve professionally and implement legal acts adopted by lawmakers, using the maximum of their knowledge. There is still an open discussion on how to evaluate the achievements of civil servants and the policy effectiveness they implement.Governance is a division of responsibilities, it should serve as a tool that facilitates the continuous improvement of work in the public sector. Only redistribution of formal authority can have little or no effect on the desirable consequences with all the opposing claims expressed by some administrative reformers.

Common Challenges in Public Sector Performance Measurement in Post-Soviet Countries - Remedies Taken to Escape from the Soviet Legacy

Concentrating on the public sector performance of post-Soviet countries, this article attempts to identify the main challenges in performance measurement field of post-Soviet countries in the context of changed State and society relationship after the collapse of the Soviet Union. In addition, experiences of post-Soviet countries, such as Lithuania, Kazakhstan and Azerbaijan, in revamping their public sector performance and measurement system, and the extent to which the Soviet legacy has had an impact on the administrative system of these countries are analyzed.

Local government administration systems and local government accounting information needs: is there a mismatch?

After several years of reforms inspired by the New Public Management approach, public sector accounting and performance measurement systems continue to differ among countries. Based on previous lit...

Designing a performance measurement system for university-public organisation collaboration

This study explores designing and building performance measurement systems (PMSs) in the context of university-public organisation collaborations. In the case organisation, using the current literature on university partnerships and public sector performance measurement, we present, empirically test, and elaborate on a process model for designing and building PMSs for university-public organisation collaboration. The empirical section of this study discusses building PMSs to evaluate university-public organisation collaboration with a collaborative research and development project between a university and a public dental healthcare organisation as the empirical case. The study's results reveal that building PMSs for university-public organisation collaboration can support the management of such collaborations with both public and university project managers. The results also reveal that building PMSs can help to overcome the challenges related to measuring performance in the public sector and university partnerships.

Designing a performance measurement system for university-public organisation collaboration

This study explores designing and building performance measurement systems (PMSs) in the context of university-public organisation collaborations. In the case organisation, using the current literature on university partnerships and public sector performance measurement, we present, empirically test, and elaborate on a process model for designing and building PMSs for university-public organisation collaboration. The empirical section of this study discusses building PMSs to evaluate university-public organisation collaboration with a collaborative research and development project between a university and a public dental healthcare organisation as the empirical case. The study's results reveal that building PMSs for university-public organisation collaboration can support the management of such collaborations with both public and university project managers. The results also reveal that building PMSs can help to overcome the challenges related to measuring performance in the public sector and university partnerships.

Performing the state: the socio-political dimensions of performance measurement in policy and public services

ABSTRACTThis opening paper outlines the rise of public sector performance measurement and performance governance from New Public Management, its trajectory from an administrative tool for organisational monitoring and management, to its insertion into service performance and accountability, to a policy tool defining policy itself. Four key conceptual ways of approaching public sector performance measurement are outlined, and the significance of understanding performance measurement as a socio-technical policy instrument is argued. The paper thematically reviews the papers that follow and how they demonstrate new points of critical analysis in policy studies, including the multiple, mixed and sometimes contradictory purposes for performance measurement, the formation of performance measurement tools, the linkages of performance numbers and governance structures from macro to micro, and the reconfigured roles of professionals in public service delivery. The paper issues a clear challenge to policy researchers to take performance measurement more seriously in understanding the dynamics of policy performance, the achievement of policy objectives, the reframing of policy and the experience of citizens.

Towards a standard conceptual typology of public sector performance measurement

ABSTRACTThis article aims to enhance fundamental conceptualisation in performance measurement through the development of a standard conceptual typology of the field. Performance measurement is a common phenomenon in the worldwide public sector, and one that has attracted substantial academic attention. However, analysis has been hindered by confusing and inconsistent terminology, and a lack of clear and explicit classification schemes. The proposed typology is based on five explicit design considerations and three fundamenta divisionis. The typology produced has four elements: levels; measures; targets; and actuals. These elements relate to the nature, specific aspect and state of performance phenomena. It is likely that a standard conceptual approach will have benefits for academic analysis, by clarifying language and conceptual definitions. It is also likely to have beneficial practical implications.

Multi-dimensional Nondiscretionary Factors in Data Envelopment Analysis: A Slack-Based Measure

Various extension using data envelopment analysis (DEA) are available in the literature for performance measurement in public sector. The existence of multiple non- discretionary factors in DEA based public sector models leads to overestimation of the efficiency. This paper proposes a two-step procedure to handle non-discretionary factors in DEA models. In the first step, the multiple non-discretionary factors are transformed into a single artificial factor and then, using a slack-based model the performance assessment is done. To highlight the comparison, an analysis using simulated data is performed. The results show that the proposed two-stage approach is relatively better than existing approaches when we apply the slack based measure of efficiency.