Why Do Managers Use Performance Information?

Subject: Management
Pages: 2
Words: 605
Reading time:
3 min
Study level: Master

Performance management has become an inseparable part of modern governmental activity. Government managers tend to collect performance information in order to improve governance. However, aspects that provoke the use of performance information are not studied sufficiently, and hence it may be necessary to determine the correlation between the use of performance information and different internal and external organizational factors. According to recent research, altruism is one of the most significant factors, which drives the use of performance information by government officials (Moynihan & Pandey, 2010). Such results also imply that self-interest is not as significant in terms of performance information use as it is commonly perceived. Some other factors play a considerable role, for example, performance information use depends on the organizational role of the employee (Moynihan & Pandey, 2010). Some organizational factors, including the availability and the need for such information, are essential too. In addition, there are critical external factors such as the citizen demand for performance-based accountability.

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Bryson, Ackermann and Eden focus on providing a resource-based approach regarding developing and implementing a strategy, which is suitable in the public sector. The authors particularly state that such an approach may be potentially useful in the above-mentioned sector due to several reasons. The main goal of public and non-profit organizations is to fulfill public needs and serve public purposes (Bryson et al., 2007). However, insufficient management, the lack of resources, and growing public skepticism make it highly problematic for public organizations to function properly. It may be vital to improve the approach to building capacity and distinctive competencies to meet the needs of the key stakeholders. Moreover, utilizing a resource-based strategy that focuses on a “livelihood scheme” may be highly beneficial in the public sector (Bryson et al., 2007). Identifying critical success factors is also essential as they may serve as a functional equivalent of goals. Finally, developing a multi-year plan is an inseparable part of a successful public organization strategy. The developed corporate strategy should correlate with the proposed livelihood plan in order to achieve maximum efficiency.

These two articles propose management strategies for different organizations in the public and governmental sectors. Even though Moynihan and Pandey focus their attention on the use of performance information in governance, whereas Bryson provides a resource-based strategy for public organizations, these two articles are closely related. Moynihan’s article introduces a theoretical broad basis regarding the issues related to the use of performance information. Bryson’s article provides a more applied theory based on the case study with concrete implementation steps. However, Bryson utilizes the principles of performance information use in order to establish a successful strategy. The process of identifying and making use of distinctive competencies is closely linked with the use of performance information. Competencies are the abilities, technologies, qualifications, and productivity rates of the employees. These indicators are typically used within performance management. The findings of the first study may be successfully utilized in order to improve the use of performance indicators in resource-based strategies for public organizations.

Strategy formulation and strategy implementation are closely related to the content of these two studies. As already mentioned, the second study focuses on details related to strategy implementation. It examines the existing public strategies and introduces a new approach to the development of non-profit organizations. It provides a concrete set of steps that may be utilized by the public sector in order to improve its performance. The first article focuses on environmental analysis, as it investigates the potential influence of internal and external factors on the use of performance information. It also provides several contributions related to environmental analysis of the existing performance management strategy in governance.

References

Bryson, J. M., Ackermann, F., & Eden, C. (2007). Putting the resource-based view of strategy and distinctive competencies to work in public organizations. Public Administration Review, 67(4), 702–717. Web.

Moynihan, D. P., & Pandey, S. K. (2010). The big question for performance management: Why do managers use performance information? Journal of Public Administration Research and Theory, 20(4), 849–866. Web.