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Performance Management in Practice: the Norwegian Way
Author(s) -
Lægreid Per,
Roness Paul G.,
Rubecksen Kristin
Publication year - 2006
Publication title -
financial accountability and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.661
H-Index - 44
eISSN - 1468-0408
pISSN - 0267-4424
DOI - 10.1111/j.0267-4424.2006.00402.x
Subject(s) - norwegian , public administration , political science , administration (probate law) , public sector , modernization theory , gratitude , audit , management , accountability , library science , sociology , law , economics , psychology , social psychology , philosophy , linguistics , computer science
In this paper we will examine how the Norwegian system of performance management, Management-By-Objectives-And-Results (MBOR), has been adopted in civil service organizations. We will look at MBOR as a type of regulation within the state. There is a growing focus on self-regulation inside government used by a variety of public agencies that set standards and use different forms of performance management and compliance measures to audit government organizations' work (Hood et al., 1999). We will examine how it is practiced by analyzing data from a comprehensive survey of state agencies. The main research questions are first, how the agencies perceive the performance- management system in practice, and second, how we can explain variations in performance-management practices between different agencies. MBOR is a performance-management tool encompassing three main com- ponents (Lægreid, 2001a). First, the leadership must formulate clear goals and targets and give subordinate bodies leeway and discretion in their daily work. This technique is based on the requirement that the objectives are precise, concrete, specific and hierarchically structured with primary and secondary objectives followed by performance indicators. They must be operational, consistent and stable in order to function as concrete and binding criteria for evaluation. Second, subordinate agencies must report on results using a well-developed system of performance indicators. Emphasis is given to the measurement of performance and in reporting information relating to the functions of the agencies. Improved methods for monitoring results and for measuring efficiency and goal achievement are needed. This includes