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Performance management practices in public sector organizations

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  • Frank H.M. Verbeeten

Abstract

Purpose - The aim of this study is to investigate whether performance management practices affect performance in public sector organizations. Design/methodology/approach - Theoretically, the research project is based on economic as well as behavioral theories. The study distinguishes amongst quantitative performance (efficiency, quantities produced) and qualitative performance (accuracy, quality, innovation and employee morale) and uses survey data from 93 public sector organizations in the Netherlands. Findings - The research shows that the definition of clear and measurable goals is positively associated with quantity performance as well as quality performance. In addition, the use of incentives is positively associated with quantity performance yet not related to quality performance. Finally, the effects of performance management practices in public sector organizations are affected by institutional factors. The results suggest that the behavioral effects of performance management practices are as important as the economic effects in public sector organizations. Research limitations/implications - All limitations of survey research apply. The survey is based on public sector organizations in The Netherlands; findings may not be transferable to other countries. Practical implications - The joint introduction of performance management practices may provide an opportunity to increase quantity performance yet may have no impact on quality performance. Originality/value - The paper responds to previous calls in the literature to use quantitative research methods to generalize findings from previous case studies. Also, the paper empirically tests the impact of performance management practices on performance, an area that has attracted scarce research attention.

Suggested Citation

  • Frank H.M. Verbeeten, 2008. "Performance management practices in public sector organizations," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 21(3), pages 427-454, March.
    • Handle: RePEc:eme:aaajpp:v:21:y:2008:i:3:p:427-454
    DOI: 10.1108/09513570810863996
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    5. Gamage Dinoka Nimali PERERA & Mada Gamage Geetha THARANGANIE & Udayangani Kumari THALGASPITIYA, 2016. "Performance Management Practices in the Listed Companies in Sri Lanka," Expert Journal of Business and Management, Sprint Investify, vol. 4(2), pages 118-123.
    6. Bhimani, Alnoor & Dai, Narisa Tianjing & Sivabalan, Prabhu & Tang, Guliang, 2017. "How do enterprises respond to a managerial accounting performance measure mandated by the state?," LSE Research Online Documents on Economics 83687, London School of Economics and Political Science, LSE Library.
    7. Thomas Bolognesi & Antoine Brochet & Yvan Renou, 2021. "Assessing socio-technical resistance to public policy instruments: Insights from water performance indicators in the Grenoble area (France)," Environment and Planning C, , vol. 39(7), pages 1407-1435, November.
    8. Salvatore Russo, 2014. "Assumptions for a combination of public value and performance management," Working Papers 27, Department of Management, Università Ca' Foscari Venezia.
    9. Rodriguez, Carlos Adrian, 2016. "Challenges to effectiveness in public health organizations: The case of the Costa Rican Health Ministry," Journal of Business Research, Elsevier, vol. 69(9), pages 3859-3868.
    10. Kaveh Asiaei & Nick Bontis & Raziye Alizadeh & Mehdi Yaghoubi, 2022. "Green intellectual capital and environmental management accounting: Natural resource orchestration in favor of environmental performance," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 76-93, January.
    11. Dobre Ovidiu Iliuta, 2014. "The Link Between Organizational Culture And Performance Management Practices: A Case Of It Companies From Romania," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 1156-1163, July.
    12. Sobis Iwona & Okouma Offolome Guepie Victorien, 2017. "Performance Management: How the Swedish Administration of Transportation for the Disabled Succeeded. A Case Study of Transportation Service for the Disabled, the Municipality of Gothenburg," NISPAcee Journal of Public Administration and Policy, Sciendo, vol. 10(1), pages 141-175, June.
    13. Sadiq, 2018. "Evaluation of Public Service Motivation: A Case Study of Hefei Public Sector Organizations," Business and Economic Research, Macrothink Institute, vol. 8(1), pages 186-197, March.
    14. Štrangfeldová Jana & Štefanišinová Nikola, 2020. "Value for Money in Organizations Providing Public Education Services and How to Measure It," Naše gospodarstvo/Our economy, Sciendo, vol. 66(2), pages 62-70, June.
    15. Aisha J Ali & Javier Fuenzalida & Margarita Gómez & Martin J Williams, 2021. "Four lenses on people management in the public sector: an evidence review and synthesis," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 37(2), pages 335-366.
    16. Tkhorikov Boris A. & Lomovceva Olga A. & Dakhova Mariia N. & Polukhin Oleg N. & Gerasimenko Olga A., 2018. "Methodological Aspects of Monitoring the Implementation in Public Sector Organizations which Indicative Management Systems," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 4, pages 192-197, 11-2018.

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