Unit 3: Performance Management in the Public Sector REMINDERS Q & A-s

Performance Management in the Public Sector Government Productivity Customer Service Standards

Performance Management in the Public Sector cont’d Government Productivity - Emphasis on results measurement stems from concern about both the efficiency and effectiveness of programs. With resources becoming increasingly scarce, managers are required to demonstrate the measureable impact of their programs and the cost to achieve different levels of productivity.

Performance Management in the Public Sector cont’d Government Productivity cont’d- The Government Performance and Results Act (GPRA) of 1993 was a major step to re-focus government officials from program “inputs” to program execution and measurement of results. Federal agencies are now being held accountable for measurable results, while at the same time being given more discretionary authority to implement programs. There have been several approaches to measuring productivity and to improving productivity levels.

Performance Management in the Public Sector cont’d Customer Service Standards - A major conflict in the struggle for better performance management is pressure to improve service to diverse constituencies (some with minimal voices in the system) and accommodate pressure from politically influential individuals and well organized interest groups. This conflict may cause long-term professional administrative values to be eclipsed by more politically attractive short term values.

Performance Management in the Public Sector cont’d Customer Service Standards cont’d - However, despite the bureaucracy bashing and harsh campaign rhetoric calling for private alternatives to government services, recent federal elections revealed that most citizens strongly support efforts to improve existing government agencies.

Politics of Performance Management A major conflict in the struggle for better performance management is pressure to improve service to diverse constituencies (some with minimal voices in the system) and accommodate pressure from politically influential individuals and well organized interest groups. This conflict may cause long-term professional administrative values to be eclipsed by more politically attractive short term values. Recent federal elections revealed that most citizens strongly support efforts to improve existing government agencies.

Comparing Performance Management Strategies The performance management (PM) strategies of the Clinton-Gore administration (NPR) and the Bush administration (PMA) were similar in many respects in spite of the fact that they were implemented in different political environments. Despite efforts to promote PM strategies, public agencies still face the dilemma of which strategy to employ, to what degree strategies should they be employed, and whether or not they should employ a hybrid of alternative strategies.

President Bush’s PMA Stressed a top-down, market-based approach with the goals of Strategic management of human capital, Competitive outsourcing and privatization, Financial performance, E-government and The integration of performance evaluation with budgeting.

President Clinton’s NPR Focused on bottom-up, participatory approach with the goals of Employee empowerment, Restructuring to do more with less, Performance budgeting, Enhanced use of information technology, and Setting performance goals and customer service standards.

PMA & NPR - Differences Although PMA and NPR are similar in many respects, they differ in how the results data are used. The PMA focused on the identification of potential efficiencies through privatization, whereas NPR focused on how agency employees can sustain or improve results with limited resources. The Office of Management and Budget used PMA results to prepare agency scorecards, known as the Performance Assessment Rating Tool (PART). This approach has elicited mixed responses and its final impact remains undetermined.

Lessons for Public Managers (PA-s) Public managers must pay greater attention to performance management strategies. Ostensibly to eliminate waste and inefficiency, President George W. Bush created a results- driven performance management plan called the President’s Management Agenda (PMA), which utilized performance data to make budgetary and programmatic decisions.

Consequences For public administrators, failure to meet predetermined goals may result in significant changes to, or even elimination of, their programs. FINI