Determinants of performance management systems implementation in the korean public sector

Abstract

While many performance management initiatives are in the private sector, recent efforts to improve government performance have also placed considerable emphasis on performance management as a means to increase effectiveness, efficiency and accountability. As a growing interest in performance management in the public sector, Performance Management Systems (PMS) have also been used successfully in the public sector (Niven, 2003; Z. Radnor and Lovell, 2003; Wisniewski and Dickson, 2001). In 2006, with the trend of “New Public Management (NPM),” the Korean Government put great emphasis on the provision of public services establishing the “Framework Act on Government Performance Evaluation.” Despite a large amount of research that has been conducted to date in the field of performance management, there is a relatively insufficiency of empirical research that describes in detail implementation determinants and the roles of PMS in Korean public sector. This study provides insights for organizations about determinants and impediments they can expect to encounter in their PMS implementation; the research draws upon three types of use in terms of PMS roles: strategic management, performance measurement, and communication tools. Using the survey from 66 Korean public institutions, the results of the analyses provide that the particular PMS implementation determinants are significant with the roles of PMS in Korean public institutions. In sum, among various implementation determinants of PMS, the strategic management role is influenced by two determinants: “aligning strategy” and “setting measures and liking with rewards” while the performance measurement role is significant with “setting measures and linking with rewards.” When PMS is implemented as a communications tool, it is important to incorporate adequate training, management commitment, and complying with Government’s policy.