Draws attention to a serious shortcoming associated with the usual audit models which use traditional techniques such as regression analysis. In general, previous studies have concentrated only on the impact of the resources used by an organization on its performance indicators, and have ignored the obverse impact of performance indicators on resource use. Yet, if performance indicators are to be effective, it is inevitable that, at least in the long run, they will induce political responses, often in the form of redirected use of resources. Develops concept of “negative political feedback” to elucidate this issue, and attempts to incorporate the phenomenon into the modelling procedure. The results are not encouraging; ends by questioning whether quantitative effectiveness audit is itself a worthwhile procedure for promoting effectiveness in public sector organizations.
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