The performance of public organizations is important for a variety of stakeholders including politicians, citizens, donor agencies and government officials. For more than two decades the implementation of performance measurement systems has been considered a central tenant of public sector reforms to address the concerns of efficiency. Within the literature on performance measurement this concept is limited to applying various techniques for generating performance data and that includes both qualitative and quantitative information (Radnor, 2005).
Use of performance measurement as a control and monitoring tool is the main motivation while the use of performance data as a planning tool is less advanced. Cutting red tape, minimizing public waste and enhanced concern for value-for-money are the main drivers of introduction of performance measurement in the public sector. Existing research informs that with respect to the evaluation of benefits of performance measurement three schools of thoughts exist (Johnsen, 2005, p. 9): true believers (Osborne & Gaebler, 1993), pragmatic skeptics and those who regard performance measurement with great skepticism (De Bruijn, 2002, p. 36)
The Business plan on Performance Measurement
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. There is only limited evidence on the determinants of performance in public organizations (Boyne, 2003; O’Toole & Meier, 1999) and existing studies only reflect traditional concerns of organizational processes rather than outputs and outcomes. Though focus on resource utilization is an important variable in measuring public service performance, the focus of practitioners and researchers has shifted from financial inputs to service delivery and performance.
This change has opened up important avenues of research for management scholars. Performance measurement in public organizations is complex and multidimensional in nature (Boyne, 2002).
The dimensions of performance include measures of output quantity, output quality, efficiency, effectiveness, equity, accountability, probity and impact. Although many such classifications exist, little clarity has been offered on the most appropriate ways to measure organizational performance and/or how to analyze performance data. Research Background
The Government of the Punjab initiated an exercise to develop a government-wide performance measurement system for public employees as a first step towards establishing a Results-Based Management (RBM) framework. This intervention aimed at improving the operational efficiency gap that persisted in the public sector by instituting a structured mechanism for evaluating managers on key activities of the departments. In this regard a separate unit titled Provincial Information and Analysis Unit (PIAU) was established which was closed down in October 2010 and the work of PIAU were entrusted to Punjab Resource Management Program.
The key performance indicators (KPI) Initiative under PIAU were part of Result Based Management Component of Punjab Government Efficiency Improvement Program (PGEIP / PRMP).
The aim was to establish a robust monitoring system that allows the performance of individual managers to be systematically measured and then evaluated. One tool to assist in such an endeavor is the creation of performance measurement indicators that are quantifiable, are able to capture core business processes of departments and are easily measurable.
The Research paper on New Public Management
The New Public Management is a new perspective which evolve in early 1980s, which seeks to merge the core values of business administration in the domain of public administration. The term New Public Management was used for the first time by Christopher Hood in 1981 in his research paper titled “A New Public Management for All Seasons” which was published in a journal called “Public Administration ...
