Bài giảng quản trị công chapter 7 pgs ts sử đình thành

CHAPTER PERFORMANCE MEARSUREMENT & MANAGEMENT SU DINH THANH LEARNING OBJECTIVES THE EVOLUTION OF PERFORMANCE MANAGEMENT THE EVOLUTION OF PERFORMANCE MANAGEMENT „ The Th new public bli managementt (NPM) actively ti l emphasizes the significance of performance measurementt as a managementt tool t l in i government t Indeed, accurate performance information is needed f the for th implementation i l t ti off managementt instruments i t t such as performance pay, performance contracts or performance f b d t budgets „ However, NPM did not originate the idea of measuring government performance Evolution… „ This increased influence of civil servants cumulated in the development of planning and management techniques and systems such as „ „ „ the planning programming budgeting system (PPBS), and afterwards, management by objectives (MBO) and, zero-based budgeting (ZBB) Evolution… „ In I the h late l 1980 andd 1990s, 1980s 1990 there h was a new emphasis on performance management, mainly due to rising fiscal deficits deficits In this phase, phase the main objective of performance measurement was to identify how to increase efficiency and/or to cut spending „ By the mid mid- and late 1990s, 1990s government performance was increasingly seen as a key component p of the competitive p advantage g of national economies and a contributory factor in overall societal performance Evolution… „ Minimizing Mi i i i the h public bli sector was no longer l the h dominant public management reform strategy Effectiveness and quality concerns gained importance in many countries „ => The focus of performance measurement and management has changed over time in accordance with the dominant understanding of what constitutes government performance „ At present, the decline in trust of public institutions is pushing performance measurement systems towards measurement of quality of life indicators and the quality of governance KEY CONCEPTS IN PERFORMANCE MEASUREMENT „ The input–output model of performance measurement „ Performance indicators „ Performance standards „ Statistical techniques for performance measurement The input – output model of performance measurement „ There are a number of levels at which performance measurement can operate => it may refer to the measurement of inputs, outputs or outcomes, and it may focus on economy, efficiency or effectiveness „ We integrate these concepts in an input–output model of the policy and management cycle „ We can illustrate the policy and management cycle followings: g The input – output model of performance measurement Performance indicators Performance indicators Performance indicators „ There are five main performance indicators: Economyy „ Productivity „ Efficiency „ Effectiveness „ Cost-effectiveness „ „ Can y you explain p these indicators? Performance standards „ Standards for good policies; „ Standards based on scientific norm; „ The standards are set by comparison, usually either between organizations „ time periods or across Time series analysis compares past performance with current performance Cross-section analysis compares co pa es thee o organization ga a o w with o other e o organizations ga a o s Statistical techniques for performance measurement „ Several techniques might enhance the processing capacity of the organization „ „ Stochastic Frontier Analysis Data Envelopment p Analysis y and Free Disposal p Hull IMFORMATION IN PERFORMANCE MANAGEMENT „ Performance measurement becomes valuable only when it is followed by management action „ Performance management can be broadly defined as ‘actingg upon p pperformance information’ „ Causal models and more qualitative research are needed to provide this in in-depth depth information IMFORMATION IN PERFORMANCE MANAGEMENT „ Performance information may be used for different purposes – in the policy cycle, for accountability purposes or in financial management „ The policy cycle consists of four steps: policy preparation, decision, implementation and evaluation „ Performance information can be used so that stakeholders can hold each other to account for how well they have each performed their assigned responsibilities SOME TRAPS AND LESSONS IN PERFORMANCE MANAGEMENT „ Performance measurement opens up interesting possibilities for enhancing public sector management and policy making However, it also contains some traps „ „ „ „ Lack of interest of politicians and/or citizens Vagueness g and ambiguity g y off g goals Risk of data corruption is higher (Schools only teach ffor test…)) Centralization and decentralization SOME TRAPS AND LESSONS IN PERFORMANCE MANAGEMENT SOME TRAPS AND LESSONS IN PERFORMANCE MANAGEMENT Performance measurement has a number of functions, which have a rising degree of compulsion: transparency – learn – appraise – sanction The more performance measurement is used compulsively, the more it will p as unfair and be experienced the more it will cause perverting behaviour (see Figure g 2.1) ) SOME TRAPS AND LESSONS IN PERFORMANCE MANAGEMENT ... for th implementation i l t ti off managementt instruments i t t such as performance pay, performance contracts or performance f b d t budgets „ However, NPM did not originate the idea of measuring... => it may refer to the measurement of inputs, outputs or outcomes, and it may focus on economy, efficiency or effectiveness „ We integrate these concepts in an input–output model of the policy... 1990 there h was a new emphasis on performance management, mainly due to rising fiscal deficits deficits In this phase, phase the main objective of performance measurement was to identify how to