The Public sector governance, assumptions for effective governance and methods of public sector performance assessment

• Andriukaitienė, Regina
• Vienažindienė, Milita

EN1. The new public management model significantly differs from the traditional public administration model, yet it does not invalidate, but just complements it and creates assumptions for increasing operational efficiency. However, in some cases it may create a threat to democracy. That is why in recent years, a new public management ideology has been emerging, which is called the new public service and which points out that in the public governance such concepts as democracy, selfesteem and the citizen should prevail rather than the market, competitiveness and the customer. 2. In order to achieve the public sector efficiency and performance modernization, public entities apply various techniques, methods and procedures which have a purpose to govern changes and reforms in the global environment through better structuring of labour processes, strengthening of employee needs motivations and improving performance assessment methods. 3. Having analysed the scientific literature, it was concluded that performance measurement is a component of the operational governance and is identified as a system which supports operational results measurement. Performance measurement in the public sector differs from that in the private sector, provided that efficiency of mission is the purpose of the sector, and reducing costs and efficiency are the financial purposes. That is why performance measurement helps to provide accountability to the citizens, to improve performance, and improves budget management processes and promotes productivity and creativity.4. Performance measurement contains two components, such as preparation and implementation. The preparation subsystem can be characterised by generation of performance measurement system key elements, i.e. goals, objectives, performance indicators and intended/indicator values, and identification of their relationship. The implementation subsystem is identified as performance measurement information which is used in the organisation. Various authors suggest a different number of measurement system stages. There is a number of performance measurement indicators identified which are divided into three groups: operational stage activity indicators, financial indicators, and qualitative/non-financial indicators. Input, performance yield and consequences are classified as operational stage indicators. Efficiency, effectiveness and productivity are classified as qualitative indicators. 5. The newest performance measurement models are influenced by the New public management, where the emphasis is put on improving efficiency of public services, and for its implementation quality efficiency indicators are used. Performance measurement model can be selected from a wide range: the European business improvement model (performance quality and achievements, and improvement achievements are measured), Common Assessment Framework (used for self-evaluation), ISO 9000 series quality standards (measures organisational designing, manufacturing, and product or service delivery), Balanced Scorecard (evaluates the past, present and future of the organisation), and SERQUAL model (measures service quality). Among the above mentioned models, the widest spectrum is measured by Balanced Scorecard, which enables measuring of quality and efficiency of supplied services as well as linking organisational short-term operational control with the long-term vision and strategy. [Extract, p. 348-349]