Performance management practices in public sector organizations: Impact on performance

Frank H.M. Verbeeten (Rotterdam School of Management, Erasmus University, Rotterdam, The Netherlands)

Accounting, Auditing & Accountability Journal

ISSN: 0951-3574

Publication date: 28 March 2008

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.

Keywords

Citation

Verbeeten, F.H.M. (2008), "Performance management practices in public sector organizations: Impact on performance", Accounting, Auditing & Accountability Journal, Vol. 21 No. 3, pp. 427-454. https://doi.org/10.1108/09513570810863996

Publisher

:

Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited

To read the full version of this content please select one of the options below

You may be able to access this content by logging in via Shibboleth, Open Athens or with your Emerald account.
To rent this content from Deepdyve, please click the button.
If you think you should have access to this content, click the button to contact our support team.