Limits to the Implementation of Benchmarking Through KPIs in UK Construction Policy: Insights from game theory

Abstract

Benchmarking through the use of key performance indicators (KPIs) has been an important part of the UK government's market-oriented reforms to improve efficiency across the public sector and in other areas such as construction where government is a major client. However, government attempts to implement construction KPIs have not followed the expected course. We argue that insights from game theory show that the initial plan for construction benchmarking failed to take account of the strategic value of the information collected and was not implementable because the sharing of information by construction suppliers with their clients was a dominated strategy.     

Identifying barriers to the application of standardized performance indicators in local government

Abstract

Local governments in many countries are implementing administrative reforms within the framework of New Public Management (NPM) in order to improve the quality and productivity of public services. The use of performance indicators and benchmarking facilitates evaluation of efficiency regarding the provision of such services and favours the acquisition of better practices. The problems that may arise in the introduction of performance indicators in local government mainly concern the consensual design and standardization of indicators for various entities, the method to be used for calculations and the selection of analytical criteria to be applied to the values obtained. In this article, we identify obstacles that may be encountered in achieving a standardized definition of performance indicators within local government and, on the basis of learning from the practical experience of several large city councils in Spain, formulate strategies to resolve these problems, taking note of the viability and real efficacy of the solutions adopted.     

基于标杆超越的绩效管理流程再造

标杆超越是企业管理变革实践的先进方法,它是适应我国当前社会的一个重要方法,在国内外企业管理中都有较好应用。本文首先分析了标杆超越内涵、特点及价值,然后例证了一个基于标杆超越的绩效管理的流程的实践,最后提出了实施标杆超越应注意的问题,希望能对相关企业有借鉴意义。     

Contracting-out at local government level

Abstract

Contracting-out is a public sector reform tool, and it is used as a specific form of privatization. Because of its multi-dimensional character, it does not always lead to positive improvements, even in developed countries, and its impact in countries in Central and Eastern Europe may be limited. This issue is discussed in the theoretical part of this paper. Its analytical part investigates selected important dimensions of contracting-out for local public services in Slovakia and the Czech Republic, namely forms of delivery, decision-making processes concerning the selection of the form of delivery and of supplier, and costs comparisons. The final part provides a brief list of possible tools to improve the current negative situation.     

Public management in North America

Abstract

This article examines major trends and research questions that have emerged in public management scholarship in North America over the last decade. This period offers evidence of improved self-confidence and scholarship in the field, even as it remains independent of any specific discipline or core set of assumptions. Scholarship in the last decade reflects a transition in the understanding of governance. Traditional issues of public administration have received less attention, e.g., personnel management, ethics, leadership, public-private differences, implementation, and political influence on the bureaucracy. There is growing scholarship on topics that suggest efforts to change or work around the classic bureaucratic model, e.g., reform, alternative forms of governance, performance, citizen trust, participation, and e-government.     

标杆管理:高职院校改进管理绩效的有效策略

标杆管理作为一种新型的管理工具,其特征比较符合高职院校的教育活动,在高职院校应用具有一定的适切性,这种管理工具在高职院校的实施可分为分析现状、确定标杆管理对象、收集数据信息、分析调查结果、实施计划和跟踪结果等几个步骤,实施时应注意标杆主体的选择、目标的瞄准、管理团队的结构和理念的创新等问题。     

Contextualizing performance appraisal practices in Chinese public sector organizations: the importance of context and areas for future study

Abstract

Public sector organizations (PSOs) continue to undergo pressures for change due to economic globalization and the changing role of the state, resulting in increased focus on performance management, particularly employee performance appraisal. New public management’s emphasis on transparency, accountability, efficiency and performance highlights the multiple and often conflicting roles and performance outcomes of PSOs, the social and economic contexts in which PSOs operate, and the multiple ways they measure and manage performance. Responding to this special issue and calls for a richer understanding of performance management in PSOs we examine the impact of context on performance appraisal in Chinese PSOs. As China continues its transitions to a market-driven economy, Chinese PSOs have engaged in managerial reforms to improve governance, efficiency and productivity, including the strategic implementation of western-based HRM practices to manage employee performance. Our analysis demonstrates the challenges context poses for analysing HRM practices in Chinese PSOs.     

Benchmarking,knowledge inertia,and knowledge performance in different network structures

ABSTRACT

A simulation approach is employed to examine the relationship between benchmarking and OKP, and how knowledge inertia in benchmarking influences OKP in different network structures. Results suggest that quick benchmarking (low knowledge inertia) and moderate mutual learning produce higher short-term OKP. Slow benchmarking (high knowledge inertia) and moderate mutual learning achieve higher long-term OKP. OKP performs better in scale-free networks than in small-world networks in the short period. However, in the long period, OKP is higher in small-world networks. Findings guide managers’ efforts in choosing the most suitable benchmarking and also suggest that managers should not ignore knowledge inertia.     

Organizing professionals and their impact on performance: the case of public health doctors in the Italian SSN

ABSTRACT

Hybrid professional managers have been associated with improvements in the performance of public sector organizations. However, less attention has been given to differences within this category. Drawing on board human capital theory, we focus on an emerging group of ‘organizing professionals’ with earlier and deeper exposure to management training and education: generalist clinical hybrids drawn from public health in the Italian healthcare system. Specifically, we investigate the impact that these hybrid hospital CEOs have on organizational performance in comparison with other backgrounds. The results indicate that this form of generalist hybrid professionalism has distinct, if not dramatic, consequences for performance.     

Resisting government rendered surveillance in a local authority

ABSTRACT

The paper illustrates and discusses how the performance management systems in a UK local authority are transformed into a surveillance system. A case study analysis reveals that the surveillance is engendered by central government and enacted by senior managers who conform to policies demanding the introduction of strict performance management systems that dehumanize work processes because employees are deemed untrustworthy. The paper shows that employees resist this government rendered surveillance because they believe it undermines their interests as well as the interests of the public by damaging the quality of the services delivered.     

Managing The Environment

Abstract

The literature on network management in the public sector reports positive effects of network activity on agency performance. Current studies show however no differences between specific types of contacts in an agency's environment. The present article adopts an explorative design to study the different types of environmental actors in the networks of nine colleges for nursing studies in the Netherlands. A typology of environmental ties is introduced, and applied to the nine cases. It appears that contacts to different types of actors reflect different levels of ambition in the network management of the colleges. The level of ambition in network management appears to be associated with two indicators for college performance: it is positively associated with diploma rate, and negatively associated with drop-out rates among freshmen. These results are discussed with reference to the current literature in public network management.     

Public managers’ perception of performance information: the evidence from Polish local governments

ABSTRACT

Performance management requires wise utilization of performance information to generate expected results. The framework of Performance Information Utilization (PIU) explains why and how performance information is used in the public sector, although it does so without recognizing the role of the information user’s perception. This article adapts the information system theories to conceptualize perception of performance information (PPI). Statistical analysis confirmed the validity of the construct and showed a significant relationship between quality and usefulness of performance information, and usefulness of multiple performance information systems. Tested model offers new insights in explaining the use of performance information in local governments.     

In Defense of Bureaucracy

Abstract

Managerial capacity, meant as available potential for managerial resources to be deployed when needed, can be considered ‘slack’ in a public organization during normal times, but recent developments in the research literature of public administration suggest that such capacity can sometimes contribute to public program performance. Does managerial capacity help to dampen or eliminate the effects of sizeable and negative budget shocks on the outcomes of public organizations? This question is investigated in a set of 1,000 organizations over an eight-year period. For the most part, and largely due to managerial adjustments, budgetary shocks of 10 percent or more have only limited or no negative impacts on performance in the short term. They do, however, cause a drop in performance for certain outcome measures, both immediately and in the following year. Sufficient managerial capacity, however, mitigates these negative performance effects. The findings point toward a key question with which public managers must wrestle: how to balance the costs of slack against the benefits that capacity-as-slack can generate when environmental shocks threaten to disrupt the operation of public programs.     

When employee performance management affects individual innovation in public organizations: the role of consistency and LMX

Abstract

Public sector challenges translate in more complex job demands that require individual innovation. In order to deal with these demands, many public organizations have implemented employee performance management. In a multilevel study, we examine when employee performance management affects individual innovation. We contribute by focusing on consistent employee performance management and Leader–Member Exchange (LMX). Based on goal-setting theory, we first argue that employee performance management fosters individual innovation when it entails consistent subpractices. Subsequently, LMX is theorized to function as a moderator in this linkage. We use multilevel data from 68 elderly homes and 1095 caregivers in Flanders to test our hypotheses. The study reveals that individual innovation is related to consistent employee performance management, and that LMX functions as a moderator in this relationship. Our findings contribute to scholars’ understanding of effects from employee performance management in public organizations.     

Service Quality,Administrative Process,and Citizens’ Evaluation of Local Government in the US

Abstract

It is often assumed that citizens evaluate government based on service quality or outcomes (such as safe neighbourhoods or good schools), but aspects of administrative process (such as fairness and respect) are also important. Using data from two US surveys, this study examines how service quality and administrative process influence citizens’ evaluations of government. Results indicate that service quality matters most to ratings of the community; in contrast, administrative process is the dominant driver of trust; and both quality and process have large effects on judgements about government’s overall job performance. Implications for public management research and practice are discussed.     

Distinctive research patterns on public sector performance measurement of public administration and accounting disciplines

Abstract

This article explores distinctive research patterns of public administration and accounting disciplines concerning public sector performance measurement (PSPM). Our review shows that accounting researchers from Europe investigate reasons for limited PM use and factors explaining a rational or symbolic PM use, inspired by organization theory and institutional theory and conducting case/field studies. Public administration researchers from Europe and the USA prefer to study PM design and PM impact respectively, mainly using surveys in combination with various theories, like political theory. Public administration research from the USA examines the types of performance indicators in PM systems and contingent factors for PM design. Public administration research from Europe shows an interest in evaluating public sector reforms like Best Value and explaining learning processes for improvement. We argue that PSPM research could benefit from interdisciplinary efforts and intensified mutual communication between public administration and accounting.     

Strategic management tools and public sector management

Abstract

This article highlights the applicability and effectiveness of two well established strategic management tools, value chain and stakeholder analyses, in the context of seven public sector strategic consultancy projects. The article provides a strong justification for the use of both models, when used independently, but particularly in conjunction, as powerful strategic analytical frameworks that can significantly encourage and illuminate strategic discourses in public sector organizations.

The article establishes that strategic tools such as value chain analysis, when applied in the public sector context, require significant adaptation to maximize their contribution to understanding a given situation. This study proposes that the strategic analysis of relationships that build or contribute to concepts of organizational value are of limited importance if the complex web of interdependent relationships themselves are not clearly demonstrated. This work therefore makes a clear case for applying two strategic models, value chain analysis and stakeholder analysis, in an analogous way to demonstrate how strategic understanding in the public sector is enhanced as a result of such symbiosis.     

A Critical Appraisal of the Current Use of Transaction Cost Explanations for Government Make-Or-Buy Choices: Towards a Contingent Theory and Forms of Tests

Abstract

This article aims at contributing to the extant literature on government make-or-buy choices building on transaction cost economics (TCE) by explicitly theorizing about transaction alignment and its relation to performance. It is argued that current theoretical and empirical models of government make-or-buy choices are not able to make predictions that corroborate theory. They are dependent upon the assumption of perfect competition that is ill-suited for the public sector setting. Instead, contingent models that take performance differences into account constitute a more valid model of TCE in this setting. In this article, theoretical models and empirical approaches for such a research agenda are developed.     

Performance Measurement and Performance Information in New Democracies

Abstract

This article explores the introduction of performance measurement tools in new democracies by presenting a qualitative study based on Estonian governmental documents and performance audits. A set of specific factors help to explain difficulties in introducing performance measurement tools in immature policy environments: instability, poor strategic planning and policy analysis, an implementation gap and uncritical, uninformed transfer of Western performance management initiatives. Although the authors recognize the limits of generalizations based on the Estonian example, the presence of such ‘transitional’ factors is likely to make the development of performance measurement in new democracies even more complicated than in the West.     

Line managers’ AMO to manage employees’ performance: the route to effective and satisfying performance management

Abstract

Performance management systems are used to increase employees’ performance with the ultimate aim of increasing organizational performance. Organizations rely on line managers to implement performance management systems and to engage in a continuous process of goal-setting, feedback, coaching and performance appraisal with their employees. Drawing on the AMO theory, we predict that the effectiveness of performance management implementation will be a function of three factors. First, line managers should have the Ability to enact the activities that are involved in performance management. Secondly, they should be Motivated to perform these activities. Thirdly, line managers should have sufficient Opportunity to fulfill these activities on top of the demands from other organizational. If not, they could experience role conflict. We developed several cross-level hypotheses. The data came from 71 line managers and 318 employees working in Flemish education. Hierarchical linear modelling found that line managers’ AMO to implement performance management systems was positively related to employees’ satisfaction with the system. These relationships were mediated by employees’ perceptions that the performance management system is strong. A strong system signals that its features are salient across employees and that the system is clear and understood. This study has several theoretical and practical implications.