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Performance Measurement in Public Sector of Transition Countries

Author

Listed:
  • Veledar Benina
  • Bašić Meliha
  • Kapić Jadranka

    (University of Sarajevo, School of Economics and Business, Bosnia and Herzegovina)

Abstract

Background: For many years, performance indicators have served as a valid instrument for the evaluation of the public sector quality and efficiency in the majority of developed countries. Such measurements allow internal and external evaluation of the efficiency of the budget and public companies. Objectives: The aim of the paper is to determine to what extent public sector entities in the Federation of Bosnia and Herzegovina (FB&H), as a representative of transition countries, measure and report performance indicators. Methods/Approach: An electronic survey has been conducted among representatives of cantons in FB&H and public utility companies in the Canton of Sarajevo. The Mann-Whitney test was applied in order to test differences between public sector entities according to their performance. Results: The Mann-Whitney non-parametric tests show that the degree of measuring and reporting performance indicators in the public sector in FB&H has a direct impact on the operational results shown in financial statements. Conclusions: EU legislation encourages the development of competition between different programs, products and services in the public sector. This paper sheds light on the causes and consequences of the absence of valid performance measurement in the public sector of FB&H and provides possible solutions to overcome identified problems within measurement, reporting and monitoring of performance indicators.

Suggested Citation

  • Veledar Benina & Bašić Meliha & Kapić Jadranka, 2014. "Performance Measurement in Public Sector of Transition Countries," Business Systems Research, Sciendo, vol. 5(2), pages 72-83, September.
    • Handle: RePEc:bit:bsrysr:v:5:y:2014:i:2:p:72-83
    DOI: 10.2478/bsrj-2014-0011
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    References listed on IDEAS

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    1. Peter C. Smith & Andrew Street, 2005. "Measuring the efficiency of public services: the limits of analysis," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 168(2), pages 401-417, March.
    2. Aled ab Iorwerth, 2006. "How to Measure Government Productivity: A Review Article on 'Measurement of Government Output and Productivity for the National Accounts' (The Atkinson Report)," International Productivity Monitor, Centre for the Study of Living Standards, vol. 13, pages 57-74, Fall.
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    More about this item

    Keywords

    performance measurement; performance indicators; public sector; international public sector accounting standards; performance audit;
    All these keywords.

    JEL classification:

    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

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