performance management in asia - united...
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M. Jae MoonDepartment of Public Administration
Yonsei University
Performance Management in Asia
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OutlineBackgroundPerformance ManagementIssues (levels, actors, tools, and processes)Comparative Asian Performance ManagementOpportunities and ChallengesConclusions
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Key questionsPerformance management? What are the models that can be used to measure organizational performance in the public sectorWhat are the dimensions of performance?Levels, tools, and actors?
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Performance Management?…performance management is not an end in itself rather ‘…its overall objective is to support better decision-making by politicians and public servants leading to improved performance and/or accountability and, ultimately, to enhanced outcomes for society’ (OCED 2005, p. 56).
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Performance ManagementKey Issues in Public Administration
GovernanceAccountabilityPerformance
Diffusion of Performance ManagementManagement by ObjectivesLogic ModelBalanced ScoresZBBPerformance Budgeting
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Why Performance?GPRA?
Performance versus Result?
Monitoring and AccountabilityNarrowing Information Gap between Legislative and Executive Branch or Managers and SubordinatesInstitutional Design: Quality and Incentive Structure Cascading Approach
Mission-Goals-Objectives-Measurable TargetsSystem-Government-Agency-Bureau-Team/Group-Individual
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3E’s model
Economy
Efficiency
Effectiveness
Costs of procuring services
Technical efficiencyAllocative efficiency
Achievement offormal serviceobjectives
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IOO model
Quantity of serviceQuality of service
EffectivenessImpactEquity/fairness
ExpenditureStaffingEquipment
Efficiency
Inputs Outputs Outcomes
Cost per unit of outcome/value for money
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Multidimensional nature of performance
Models provide: economy, technical efficiency, quantity and quality, effectiveness, cost per unit of outcome, impact, equity.
But overlooks:Responsiveness to citizens, users and staff?Governance: probity, participation accountability?
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Levels of PerformanceIndividual Performance
job appraisalTeam/Group Performance
Group evaluation/ 360 degree evaluationOrganizational/Agency Performance
Satisfaction survey, quality/quantityGovernment Performance
Government effectivenessNational System Performance
Governance indicators, competitiveness index
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Dimensions of Organizational Performance (Boyne, 2002)
Performance Domain
Sub-performance domain
Outputs Quantity, Quality
Efficiency Cost per unit of output
Service Outcomes Equity, Formal effectiveness, impact, value for money (cost per unit of service outcome)
Responsiveness Citizen satisfaction, consumer satisfaction, staff satisfaction
Governance Accountability, civil rights, human rights, probity
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Governance Indicators (World Bank)Governance Dimensions Contents
Voice and Accountability the extent of free and independence of media as well as democratic political process, civil liberties, and political rights
Political stability and absence of violence
various perceptual measures reflecting “the likelihood that the government in power will be destabilized or overthrown by possibly unconstitutional and/or violent means
Government effectiveness
The quality of public service provisionThe quality of the bureaucracyThe competence of civil servantsThe independence of the civil service from political pressuresThe credibility of the government’s commitment to policies
Regulatory quality Measures of the incidence of market-unfriendly policies such as price controls or inadequate bank supervision
Perceptions of the burdens imposed by excessive regulation
Rule of law The extent to which agents have confidence in and abide by the rules of society perceptions of the incidence of crime, the effectiveness and predictability of the
judiciary, and the enforceability of contracts
Control of corruption Perceptions of corruption
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Governance Indicators: Selected Asian Countries
Country Voice/
Accountability
Political
Stability
Government
Effectiveness
Regulatory
Quality
Rule of Law Control of
Corruption
Japan 76 79.4 89.1 86.5 89.5 85.5
China 5.8 33.5 63.5 46.4 45 41.1
Hong
Kong60.6 86.1 95.3 100 90.9 94.2
Indonesia 44.2 15.8 47.4 45.4 28.7 31.4
Korea 65.4 59.8 86.3 72.9 74.2 69.9
Malaysia 31.7 50.2 83.9 60.4 64.6 62.8
Philippines41.3 10.5 55 51.7 39.7 26.1
Singapore 35.1 96.2 100 99.5 93.8 99.5
Taiwan 68.8 71.8 79.1 81.6 73.7 72.9
Thailand 32.2 12.9 58.8 59.9 54.1 43
Vietnam 6.7 56.5 45.5 32.4 41.6 25.1
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Country Voice and
Accountability
Political
Stability
Government
Effectiveness
Regulatory
Quality
Rule of Law Control of
Corruption
OECD 90.6 81.9 88.7 91.2 90.2 90.2
Latin America 52.1 35 44.8 48.3 33.1 44.1
South Asia 30 19.5 35.6 29.2 36.6 34
Eastern
Europe&Baltics63.3 56.1 61.3 69.2 58.5 59.1
Eastern Asia 49.9 59.4 46.5 42.1 52.9 45.1
Middle East &
North Africa23.7 37.3 46.7 46.3 49.4 48.3
Subsaharan
Africa32.6 33.5 26.3 28.9 28.6 30.8
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Singapore: Housing Development Board
Performance indicators Government classification of measures Classification of measures
90% of waiting time is equal or less than
10 minutes
Effectiveness Responsiveness
Written replies were given Responsiveness Not a performance measure
There was a maximum waiting time of 8
minutes at the counter
Effectiveness Responsiveness
Written replies were given within 3.8
working days
Responsiveness Responsiveness
Calls were attended to within 4 rings Responsiveness Responsiveness
Customers were greeted appropriately Courtesy Responsiveness
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Performance Management Tools
Level of Performance Performance Management tools and techniques
Individual Job Performance Management by Objectives
Job Appraisal for low and middle managers
Performance agreement system (PAS) for high ranking officials
Balanced Score Card System
360 Degree Evaluation by managers, colleagues, subordinates, and customers
Individual Performance = Job Appraisal (70%) +360 Degree Evaluation (30%)
Team Performance 360 Degree Evaluation
Agency Performance Balanced Score Card (Finance, Customers, Business Process, and Learning and Growth)
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Job Appraisal In Korea
Grade S
20%
A
20-50%
B
50-90%
C
10%
PFP 230% 160% Below 90% 0%
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Overestimation of PerformanceModel 1
Service performance overestimation
Model 2Consumer satisfaction
overestimationIndependent variable ß se ß seConstant 31.49 22.22 47.12 49.86Environmental factorsPopulation (log) -15.20** 3.05 -16.99* 6.76Population density (log) -3.72** 1.28 -5.94* 3.03Deprivation -.05 .07 .03 .16
Management factorsTarget-setting 5.22** 1.32 5.62+ 3.08Benchmarking -.48 1.00 1.57 2.24Partnership 2.66+ 1.56 2.97 3.51User consultation 4.31** 1.20 3.84 2.81
F statistic 8.92** 2.32*R2 .56 .25N= 58 58
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Levels and Performance Management Tools (Korea)
Level of Performance Performance Management Tools
Individual Job Performance Management by ObjectivesJob Appraisal for low and middle managersPerformance agreement system (PAS)for high ranking officialsBalanced Score Card System360 Degree Evaluation by managers, colleagues, subordinates, and customersIndividual Performance=Job Appraisal (70%)+360 Degree Evaluation (30%)
Team Performance 360 Degree Evaluation
Agency Performance Balanced Scorecard
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On-nara System
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On-nara System
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IT-enabled Performance Management System in Korea
Customer Management SystemEstablishment & automation of
services workflowReal time reflection of customer’s
opinions in performance
Government Work Management SystemReal-time handling & management of
major policy tasks and jobsQuantitative & qualitative evaluation of
outcomes and reflection of evaluation results in performance
Performance Management SystemDevelopment of core performance
indices for achievement of strategic goals in light of BSC
Routine monitoring for real-time evaluation of performance
Rewarding SystemDepartmental & individual
performance evalution, 360-degree appraisal system, and time-series analysis
Reflection of analysis results in personnel management and rewarding
Integrated Administrative Innovation ‘System
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Asian Performance Management Survey
Cambodia, China, Indonesia, Japan, Korea, Malaysia, Philippines, Thailand, Vietnam and Adoption of Performance Management
Malaysia (1992), Indonesia (1996), Korea (1997), Japan (2001), Cambodia (2002), Indonesia (2003), Vietnam (2005)
Model CountriesKorea and Japan (US, Canada, UK)Thailand (UK, Australia)
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Modeling Performance Management USA Canada Australia Singapore Malaysia UK New Zealand UNDP
Korea ✔ ✔
China
Vietnam ✔
Philippines ✔ ✔ ✔
Japan ✔ ✔ ✔
Indonesia ✔
Cambodia
Thailand ✔ ✔ ✔ ✔
Malaysia
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Locus of Performance ManagementLevel
local regional central all levels Other
Korea ✔
China
Vietnam ✔
Philippines ✔
Japan ✔
Indonesia ✔
Cambodia ✔
Thailand ✔
Malaysia ✔
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Key Driving Actors for Performance Management
0 2 4 6 8 10
Specialcommittee
Parliament
Civil society
President/ PrimeMinister
Civil servants
Key actors drivingperformancemanagement
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Approaches to Performance Management
0 1 2 3 4 5 6
Bottom up
Neither/ Both
Top down
approach toperformancemanagement
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Levels of PerformanceSystem level: Government Performance Agency level: Agency (Organizational) Performance (Korea, Indonesia,Program/Policy level: Program Performance (Japan)Unit level: Team (group) Performance (Korea)Individual level: Individual Performance (job appraisal)-Korea, Cambodia, Philippines
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Comparative Asian Performance Management
PM at the central government: Cambodia, Japan, Korea, and ThailandPM at the local governments: China, VietnamCentralized PM: Indonesia and CambodiaDecentralized PM (More autonomy at the agency level): Korea, Thailand, Philippines
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Dimensions of Performance
8888
5 5
4
43
2
0 2 4 6 8Quality
Quantity
Efficiency
Effectiveness
Citizen Satisfaction
Accountability
Value for money
Impact
Staff satisfaction
Probity
Dimensions ofperformance
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Performance Management ToolsCountry Performance Management Tools Adopted
Cambodia JPA, LM, PFP
Malaysia JPA, LM, QC, PFP, SM, PBIndonesia BSC, JPA, LM, SM, PB
Japan LM
Korea BSC, JPA, LM, PFP
Philippines JPA, LM, PB
Thailand JPA, LM, QC, PFP, SM, PB
BSC: Balanced Scorecards, JPA: Job Performance Agreement, PFP: Pay for Performance, LM: Logic Model, SM: Strategic ManagementPB: Performance Budgeting, QC: Quality Circle
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Major Challenges in Performance Management
Bureaucratic resistance: 5.75Lack of financial resource: 4.5Lack of political leader’s support: 4.0Lack of citizen support: 3.62
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Major ChallengesKorea (bureaucratic resistance, lack of financial supportIndonesia (lack of political leader’s support)Cambodia (lack of financial support)Thailand (bureaucratic resistance
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ConclusionGood to Great (Jim Collins)-BreakthroughMeasurement ChallengesManagement ChallengesPerformance and Incentives Internal and External EnvironmentFrom Performance Management to Integrated IT-enabled Performance Management System
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Next Questions?
What information exists?What are priorities: administrative and political?What should be measured and what is?Who should make judgments and who does?How can better measures be developed?
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Comparative StudiesHistorical Background: colonial experiences, political system and constitution Politics—is the country democratic? How many political parties are there? The nature of the administration—what is the employment status of civil servants, does the administration have pro-active or passive leadership? How is change managed?The social and economic context—how has the country been affected by the Asian Financial Crisis?
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Behn’s Performance Leadership: 11 better practices (2004)
Creating performance frameworkArticulate the organization’s missionIdentify organization’s most consequential performance deficitEstablish a specific performance targetClarify your theoretical link between target and mission
Driving performance improvementMonitor and report progress frequentlyBuild operational capacityTake advantage of small wins to reward successCreate esteem opportunity
Learning to enhance performanceCheck for distortions and mission accomplishmentAnalyze a large number and a wide variety of indicatorsAdjust mission, target, theory, monitoring and reporting, operational capacity, rewards, esteem opportunity, and/or analysis
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What Can Be Done?
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Things To Be Avoided…
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Frosbury Flop…He jumped higher than anyone before by thinking the opposite from everyone else…