Performance management in central government

Other Publications, Studies 40 Eero Lehto

The study examines the introduction of performance management in central government.

The aim of performance management is to improve the effectiveness, productivity, and cost-efficiency of public units on the basis of cost-benefit analysis. In practice, this means applying business management methods to the public sector and developing incentive systems to motivate personnel. It does not, however, involve extending the actual market mechanism to the public sector, as public services are not generally priced on market terms.

The study examines the performance management process as a whole, paying particular attention to different orientations and the risks of failure. A central observation is that human weaknesses and inadequate knowledge of the quality of operations, costs, and the needs of clients frequently limit the possibilities of achieving a solution satisfactory to all parties. (AI translation)

  • ISSN: 0358-5980
  • ISBN: 951-9282-57-2