PERFORMANCE MEASUREMENT MODEL FORMATION IN MUNICIPALITIES

Abstract

In a rapidly moving society the pressure on the public sector is growing to provide results that are important to local community. Therefore, performance measurement is becoming a vital tool for local government modernisation. The purpose of this paper is to develop the model of performance measurement system in municipalities that enables to disclose the peculiarities when measuring the performance and to ensure the utility and internal resources based on continual improvement in municipalities. The literature analysis revealed that municipalities are extremely complex and that various regulators and peculiarities should be incorporated into the formation of performance measurement model in municipalities. The formed performance measurement model suggests measuring the performance through external and internal environment, where the three main types of accountability are included. Developed performance measurement model is being implemented by applying six main stages. The findings of created performance measurement model highlighted the necessity to test empirically the applicability of created performance measurement model for municipalities. DOI: http://dx.doi.org/10.5755/j01.em.18.3.4224

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