Influence of organisational factors on the effectiveness of performance management systems in the public sector

Abstract

Purpose: This study analyses the determinants of an effective performance management system (PMS) in the public sector of Mauritius. It develops a theoretical model that has its roots in the resource-based theory and the institutional theory. Design/methodology/approach: The study uses a quantitative approach, making use of a structured questionnaire to collect data from 158 public sector organisations. Both email and postal methods were used for data collection. A hierarchical regression analysis is used to assess the effect of the organisational factors on PMS effectiveness, while controlling for a number of organisational profile variables. Findings: Results indicate that PMS is only moderately effective. Managers’ involvement, senior management involvement and performance feedback are significant predictors of PMSs effectiveness. Research limitations/implications: Findings of the study may have limited applicability to developed and industrialised countries and even developing countries that have a different public sector culture to that of Mauritius. Practical implications: The findings demonstrate that the effectiveness of PMSs is strongly reliant on the involvement of senior management. Accordingly, public sector managers should ensure that they are fully committed and engaged in performance management tasks. Originality/value: The study contributes to the limited research on the effectiveness of PMSs in developing countries that have a different bureaucratic and performance culture to that of developed nations.