Performance management in the public sector

Purpose - The purpose of the paper is to assess the state of performance management within the public sector and suggest areas for further research. Design - This is a theoretical paper based on a literature review. Findings - The expected improvements in performance, accountability, transparency, quality of service and value for money have not yet materialised in the public sector. There are three classes of problems with performance management in the public sector - technical, systems and involvement. Externally imposed restructurings and reorganisations restrict the successful implementation of performance management. Research limitations/implications - The paper is theoretical, and empirical research to test the results is required. Practical implications - The findings can be used to enhance performance management systems within both the public and private sectors. Originality/value - The paper provides an overview of the state of performance management and measurement within public sector organisations and explains the possible unwelcome effects of performance management. It divides the problems into three categories and offers suggestions for improvement.