Impact of Performance Management on Public Sector Effectiveness

This report provides a comprehensive analysis of performance management within public sector institutions. It explores the methods of data collection, including document analysis and semi-structured interviews, to assess current policies and practices. The research investigates the importance of performance management, its impact on organizational effectiveness, and the challenges faced by leaders. Key findings highlight the significance of transparency, synergy, and result-oriented approaches. The report examines the use of performance contracts, target setting, and benchmarking competition to improve outcomes. It also addresses challenges such as the fear of collective agreements and limited performance incentives. The implications of these findings emphasize the need for efficient performance management systems, comparison with similar organizations, and cost-cutting measures. The report concludes with recommendations for policy architects to enhance public sector performance and achieve organizational objectives.

PERFOMANCE MANAGEMENT
Performance management
Performance management is the process of defining goals
of the organization, setting strategies for achieving the set
goals, and measuring and rewarding performance.
Assessing and measuring performance in public
institutions is an essential for improving the outcome of
different public sectors hence achieving organizational
objectives.
OBJECTIVES
 To determine the importance of managing the performance of public
institutions
 To investigate whether the Performance Management practices used
in public sector organizations affect the performance of those
organizations
 To outline performance management challenges facing leaders in
public sector
Implications of the findings
Findings of the research
A long time ago, public sectors relied on rules and procedures to control the organization, which is referred to us
action control. Nevertheless, in recent decades the public sectors have seen numerous changes in the management of
the public areas including the use of output control (Andrews, 2013). Most of the countries now have supported
initiatives to develop the use of performance management practices that used in the public sector organizations.
Therefore, theses research has focused on the importance of performance management system and the impact of
performance management on organizational effectiveness.
Importance of performance management system
 Encourages transparency; being transparent by writing reports of the results in the private sectors is
one of the things that makes them successful. Since there is poor performance, inefficiencies and
corruption in the public areas cause their performance to be deficient. Therefore, by writing reports
of the results achieved in the public sector organizations will make these organizations more
accountable and transparent (Walker, 2013).
 Promotes synergy; every organization in the public sector has the set goals that they need to achieve
to make them efficient. Hence, every department of the organization has to work together, to
collaborate so that they can work to ensure they all accomplish the organizational goals. Having a
proper performance management system will, therefore drive every member of the organization in
the public sector to achieve his or her goals (Boyne, 2014).
 Clarifies purpose, result oriented; performance management system outlines what the federal
organization expects and reasons for its existence. It also shows the expected results of the
organization. Therefore, every member of the organization and every department in the organization
will know what the organization hopes them to do. Hence, they are accountable if they do not give
the expected results. Clarity ensures that every member of the organization provides his or her best;
as a result, it leads to improvement in the performance of the public sector organization (Carter,
2015).
 Provide the basis for compensation of public sector officials; good performance management
system ensures monitoring the performance of general managers and top officials. This enables them
to work best in the interest of the public, which leads to improved performance of the public sectors.
The performance management system, therefore, helps us to know how we can compensate these
officials as a form of appraisal (Hood, 2013).
Impact of PM on organizational effectiveness
 Use of performance contracts and setting of targets on the outcome of performance in public sectors
are evaluated in several studies. The purpose of goals in many public areas has improved the
performance of that public sector. Schools in the public sector that uses targets in during their exam
have shown improved performance; students improve their performance. As a result, the general
production of the institutions has increased due to the use of targets (Boyne, 2014). Furthermore,
sectors of the government that use performance contracts have shown improvement in their outcome
since the workers are working hard to achieve their targets to ensure attaining the organizational
goals (Andrews, 2013). Other developing researchers have also studied effects of benchmarking
competition on public sectors. Hence, competition in the public sector organizations has also resulted
in the improvement of the performance of that particular public sector.
 Therefore, solid performance management is associated with high effectiveness level. Hence, the use
of target setting and setting of performance contracts is used by the public sector organizations, as
this will enhance improved performance and effectiveness of the public sector organization in a
particular region (Hvid, 2015).
The following are the implications of these findings concerning performance management in the public sectors.
 Policy architects have to make sure they have an efficient performance management system in the civic organization. The
performance management system should allow comparison with the performance of other regions elsewhere with the similar
organization.
 Policy architects also need to ensure that there are other means for supporting cost-cutting inventions.
 Public sectors ought to use methods like benchmark competition in their management systems to achieve their objectives.
BIBLIOGRAPHY Andrews, R. a. (2013). New
Public Management and citizens’
perceptions of efficiency,
responsieness. New York: everest.
Boyne, G. a. (2014). ‘Performance targets and public service improvement.
Cambridge: Cambridge University Press.
Carter, N. K. (2015). How Organisations Measure Success: The Use of
Performance Indicators in Government. London: Routledge.
Hood, C. (2013). Gaming in targetworld: The targets approach to managing
public services. New York: The Free Press.
Hvid, U. a. (2015). The impact of performance management in public and
private organizations. Oxford: Oxford University Press.
Talbot, C. (2014). Theories of Performance: Organizational and Service
Improvement in the Public Domain. Oxford: Oxford University
Press.
Van Dooren, W. B. (2012). Performance Management in the Public Sector.
London: Routledge.
References
Performance management challenges facing
leaders in public sector
 Fear of collective agreement; collective agreement is in place to protect
employees and the employers. Some of these contracts are difficult to be
understood by leaders. The lack of understanding by the leaders makes them
fear to share feedback and essential information with the employees (Van
Dooren, 2012).
 Limited performance incentives; performance incentives are used by the
organizations to encourage high performance and excellent behaviors among
the employees. Hence, in the public sectors organizations, these incentives
are limited making it difficult for the leaders in the public sectors to reward
the employees (Boyne, 2014).
 Delayed feedback process; performance review cycle varies among
different public industries. Hence, public sector leaders tend saving feedback
of performance until they meet with the employees. Since the employees
manage to achieve the performance supervisors, one or two times in a year, it
leads to delayed feedback.
 Lack of clarity around strategies and plans; some public sector servants do
not know the policy and procedures of the organization. Hence, the
employees lack information on essential priorities and programs of that civic
organization. This leads to low performance since the employees spent most
of their time list priorities of the organization (Van Dooren, 2012).
Data collection and analysis
 This research will focus on analyzing Performance
management policies from different public
institutions. Methods of data collection include
document analysis and semi-structured interviews,
done by key informant. To determine the ways of
improving performance in public sectors, in-depth
analysis of documents from public areas will be
performed. Performance documents from different
public institutions will be analyzed.