The Performance Management Strategic Framework: Main Advantages

This chapter attempts to improve the planning of performance management systems in public organizations by building a decision-making framework with two essential components. First, it includes tools for prioritizing goals, activities, and measurement techniques. Building such a hierarchal system is a necessary managerial tool. It acknowledges the complex nature of public organizations and allows each organization sufficient degrees of freedom in planning specific mechanisms. Thus, the framework addresses both the complex and diverse nature of public sector operations, two factors that are absent in other strategic management techniques.

Second, the framework relies on the integration of organizational workers as content experts who help set priorities. Such integration is valuable for overcoming inherent problems in current performance management systems, particularly gaming strategies. The complexity of the evaluation process reduces the motivation for using gaming strategies, because the system creates more uncertainty for those who are under review (Bevan and Hood 2006). Under these conditions, such gaming behavior becomes more difficult simply because the respondents cannot be sure what types of answers will serve their organizational interests. Thus, this framework uses a bottom-up approach that is superior to top- down strategic management as far as public organizations are concerned.

Finally, by treating workers as content experts who participate in the planning process, they share responsibility for the outcomes, so the motivation to use gaming strategies is further reduced. By doing so, the possibility of improving social welfare as well as the motivation of public administrators increases. Thus, the use of the AHP methodology should ameliorate many of the criticisms leveled against performance management systems by improving the ability to gather information about employees’ performance, evaluate it, and use it to make effective changes.

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