Abstract
Purpose – This paper aims to identify the specific problems faced by the
Finnish public sector organizations in designing and implementing performance
measurement systems (PMS). Design/methodology/approach – An understanding of
the problems is obtained by examining three case organizations in practice.
In order to support the analysis of the empirical findings, a review of prior
literature on the private and public sector PMSs is carried out. Findings –
The design and implementation processes in the Finnish public sector
organizations differ significantly from the way they are realized in
industrial private sector companies. The four underlying reasons for problems
in public sector organizations are the following: there are many stakeholders
with conflicting needs; the end products and goals are undefined; there is a
lack of property ownership and lacking management skills. Practical
implications – By utilizing the results of the study, PMS design and
implementation in the public sector can be carried out by taking into account
and avoiding the evident pitfalls introduced in the study. Originality/value
– A large portion of the prior research on public sector PMSs consists of
surveys and conceptual studies. This paper describes three case studies and
reveals new insights into the specific challenges faced by public sector
organizations, especially in designing and implementing PMSs.
Original language | English |
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Pages (from-to) | 415-433 |
Journal | International Journal of Public Sector Management |
Volume | 20 |
Issue number | 5 |
DOIs | |
Publication status | Published - 2007 |
MoE publication type | A1 Journal article-refereed |
Keywords
- Finland
- Performance management systems
- Performance measures
- Public sector organizations