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Measuring the performance of public sector organisations: a case study on public schools in Malaysia

33 citations0/0 files storedMeasuring Business Excellence

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Accounting and Organizational Management Public Policy and Administration Research Management and Performance Evaluation

Abstract

Purpose The purpose of this paper is to empirically validate the performance management framework for managing public sector performance, particularly public schools. Design/methodology/approach The performance management framework was developed based on the balanced scorecard principle, that is, appropriately managing the performance determinant will lead to excellent performance. The performance determinant comprises four elements; customer orientation, learning and growth, internal processes, and financial management. Focus group discussions were used to derive the indicators to assess these elements. These indicators were later transformed into Likert Scale questionnaires that were used in the subsequent survey. Findings This framework was validated using survey data from secondary schools in Sarawak, Malaysia and it was found that the model has an adequately good fit (χ2/df=2.70, GFI=0.88, CFI=0.88, TLI=0.87, RMSEA=0.057) Research limitations/implications Since the framework was validated in an educational setting, some modifications need to be made if it were to be used for managing the performance of other non‐profit organisations. However, the structural model proposed in this paper can be used as a generic platform to develop a specific framework for other types of organisations. Practical implications The performance management framework proposed in this paper provides valuable insights on the interrelationships between performance determinants and performance. Originality/value Even though the balanced scorecard forms the platform for the performance management framework, the author assesses both the direct and indirect effects of the performance determinants on the overall organisational performance using structural equation modelling, a technique that performs simultaneous analysis.

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References

1998Principles and Practice of Structural Equation Modeling 2000Structural equation modeling with AMOS: basic concepts, applications, and programming 1985Competitive Advantage: Creating and Sustaining Superior Performance 1997The balanced scorecard: Translating strategy into action 1990The Effect of a Market Orientation on Business Profitability 1990Market Orientation: The Construct, Research Propositions, and Managerial Implications 1998Competitive advantage: creating and sustaining superior performance 1990Market Orientation: The Construct, Research Propositions, and Managerial Implications

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