Public Policy and Performance Management in Democratic Systems: Theory and Practice

186 Pages·2017·6.722 MB·English

by  Shlomo Mizrahi (auth.)

Public Policy and Performance
Management in Democratic Systems
ShlomoMizrahi
Public Policy
and Performance
Management in
Democratic Systems
Theory and Practice
ShlomoMizrahi
PublicPolicyandAdministration
Ben-GurionUniversityoftheNegev
BeerSheva,Israel
ISBN978-3-319-52349-1 ISBN978-3-319-52350-7(eBook)
DOI10.1007/978-3-319-52350-7
LibraryofCongressControlNumber:2017933702
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P
REFACE
This book explores the operation of performance management systems,
the ways in which they can be improved to foster accountability and
effectiveness, and the strategies through which they can be designed and
integratedintopolicymakingandinstitutionalreformprocesses.Thebook
presents an integrative framework for explaining and designing such sys-
tems using policy design methods, formal (game-theoretical) modeling,
operational management, new institutionalism, and cross-country statisti-
calcomparisons.Thisapproachopensupnewavenuesofresearch,provides
scholars and students with new methodological tools, and equips public
officials,politicians,andcitizenswithpracticalmethodsforimprovingthe
performance of the public sector. The book suggests that institutional
arrangements that might strengthen public accountability and effective
managementshouldfosterorganizationallearningandshouldbeplanned
and integrated into the policy process as such. In these processes, senior
public administrators play a significant role as institutional entrepreneurs
whopromotesocialchange.
Thebookistheoutcomeofanongoingprojectthatbegan7yearsago.
During these years, the core ideas of most of the chapters have been
presented at several academic conferences and seminars, and I would like
to thank the participants on the panels on performance management for
theirvaluableinput,suggestions,andinsights.Theseincludethepanelists
in the 3rd Annual Public Performance Measurement and Reporting
(PPMR)Conference,2010;the74thAnnualConferenceoftheAmerican
Society of Public Administration (ASPA), 2013; the 17th Annual
Conference of the International Society for Research in Public
v
vi PREFACE
Management(IRSPM),2013;theAnnualConferenceoftheInternational
Political Science Association’s (IPSA) “Research Committee on Structure
and Organization of Government” (SOG), 2014; the 52nd Annual
Conference of the Public Choice Society, 2015; the XIX IRSPM
Conference, 2015; the EGPA Annual Conference, 2015; and the 12th
TransatlanticDialogue;andtheEGPAAnnualConference,2016.
Throughout the work on this research project I benefited a great deal
from the advice and insights of colleagues at several institutions and
universities across the globe. I would especially like to thank Prof. Marc
HolzerandProf.GreggVan-RyzinatRutgersUniversitySchoolofPublic
Affairs and Administration, Prof. Donald Moynihan at Lafolte School of
Public Affairs and Administration of the University of Wisconsin, Prof.
JosteinAskimattheUniversityofOslo,andProf.EranVigoda-Gadotand
Dr.NissimCohenattheUniversityofHaifa.AspecialthankstoDr.Yizhak
Minchukwhoworkedwithmeontheformalmodelingoftheperformance
managementmechanisms.
Theworkontheideasdescribedinthisbookhasbeenexcitingandisfar
from completion. It actually suggests a research program for the further
explorationofperformancemanagementsystemsinaverybroadcontext.
Assuch,itissometimesprovocative.Italsoprovidesmanypracticaltools
for immediate integration into policy-making processes and managerial
mechanisms. I believe that researchers and practitioners as well as the
general publicwill find the book informative anduseful, and hope that it
willprompt a fruitfuldebate onthe topic.
BeerSheva, Israel Shlomo Mizrahi
C
ONTENTS
1 Introduction 1
References 9
2 Performance Managementin the PublicSector:
TheState ofArt 11
2.1 Introduction 11
2.2 TheNPM Movement andReforms 12
2.3 PerformanceManagement: Core Characteristics 14
2.4 PerformanceManagementSystemsand Reforms 17
2.5 Performance-Based PolicyMaking, Accountability,and
Monitoring 19
2.6 Performance-Based Micro-Management 24
2.7 CorePathologies ofPerformance ManagementSystems:
Gamingand Distortion 27
2.8 Summary 29
2.9 Pointsfor Practitioners 30
References 31
3 Performance Management,Gaming,and Monitoringin
DemocraticSystems 37
3.1 Identifyingthe Problems 37
3.2 TheoreticalFramework 39
3.3 Accountabilityin DemocraticSystems: Applications of
theModel 43
vii
viii CONTENTS
3.3.1 PublicSector VersusPrivateSector: Implications for
theModel 43
3.3.2 Interaction1:ThePublicVersusSeniorAdministrators 45
3.3.3 Interaction2: PoliticiansVersusSenior
Administrators 49
3.3.4 Interaction3: SeniorAdministrators Versus
Mid-levelBureaucrats 50
3.4 AnIntegratedAnalysis 51
3.5 HowCan We ReduceGaming Behavior? 57
3.6 Summary 59
3.7 Pointsfor Practitioners 59
References 60
4 Performance Management,Managerial Quality, and
GovernmentPerformance: A Cross-Country Quantitative
Analysis 65
4.1 Introduction 65
4.2 PerformanceManagementand GovernmentPerformance:
ATheoretical Framework 67
4.3 Research Design 71
4.3.1 Research Modeland Hypotheses 71
4.3.2 Sample 72
4.3.3 DataSources and MeasurementMethod 72
4.3.4 Measures 74
4.4 MainTrends Among OECD Countries: A DeepLookinto
theResearch Variables 77
4.4.1 Performance ManagementPractices AmongOECD
Countries 77
4.4.2 ManagementQualityand GovernmentEffectiveness
Among OECD Countries 81
4.4.3 Decentralization,ResourceAvailability, and
Coordination AmongOECD Countries 82
4.4.4 TRUSTAmong OECD Countries 84
4.5 PerformanceManagement, ManagementQuality, and
GovernmentPerformancein OECD Countries: An
EmpiricalAnalysis 85
4.5.1 DataAnalysis 85
4.5.2 Main Findings 85
CONTENTS ix
4.6 AnIntegratedAnalysis 90
4.7 Summary 92
4.8 Pointsfor Practitioners 93
References 94
5 AFrameworkfor StrategicPerformance Management
forthe Public SectorUsingthe Analytic Hierarchy
Process 99
5.1 TowardStrategicPerformance Management 99
5.2 PerformanceManagementand AHP inthe PublicSector 102
5.2.1 Planningand UsingPerformance Management
in thePublicSector 102
5.2.2 Applyingthe AHPMethod inthe PublicSector 103
5.3 PlanningaPerformance ManagementSystem
UsingtheAHP 106
5.3.1 A Comprehensive Framework forPlanning a
Performance ManagementSystem 106
5.3.2 AssigningWeights Using theAHP Methodology 111
5.4 ThePerformance ManagementStrategicFramework
inthe Contextof StrategicPlanningand Management
(BalancedScorecards, Key PerformanceIndicators) 114
5.4.1 StrategicManagementUsingBalanced Scorecards,
KeyPerformance Indicators and Benchmarks,and
LeanManagementin the PublicSector– ACritical
Review 115
5.4.2 ThePerformanceManagementStrategicFramework:
Main Advantages 117
5.5 Summary 118
5.6 Pointsfor Practitioners 119
Appendix 5.1: Full list of activities and issues subject to auditing 120
Appendix 5.2: An example of one group of questions in the
close-ended questionnaire 121
References 123
6 IntegratingPerformance Management into the Policy
Processvia InstitutionalAnalysisFramework 127
6.1 Introduction 127
x CONTENTS
6.2 Challengesand Barriersin Planning andImplementing
PublicSectorReforms:A NewInstitutionalism Framework 128
6.2.1 Dynamicsand Mechanisms ofInstitutional Change 129
6.2.2 A NewInstitutionalismFramework of PublicSector
Reforms 132
6.3 PerformanceManagementReforms inthe Context
ofNewInstitutionalism 137
6.4 ThePolitics ofPerformance ManagementReforms 139
6.5 TheRoleandStrategiesofSeniorPublicAdministratorsand
InstitutionalEntrepreneurs in PerformanceManagement
Reforms 143
6.6 PerformanceManagementReforms inaComparative
Perspective:A NewInstitutionalismAnalysis 144
6.7 Summary 147
6.8 Pointsfor Practitioners 148
References 149
7 Performance Managementin the PublicSector,Effective
Governance,and Democracy 155
7.1 Introduction 155
7.2 Democracyinthe Twenty-First Century–The Challengeof
Accountabilityand PublicResponsibility 156
7.3 TheEssenceofthePerformanceManagementApproach:How
DoesIt ActuallyWork? 159
7.4 APerformanceManagementPolicyApproach:ThePlanning
PhaseandPolicy Instruments 164
7.5 APerformance ManagementPolicy Approach:The
ImplementationPhaseand Analysisof Institutional and
PolicyChanges 167
7.6 Summary 169
7.7 Pointsfor Practitioners 170
References 171
Index 175