The paper "Performance Management and Why Is It Significant in the Public Sector " is an outstanding example of a management literature review. The records demonstrate that New York Council actually analyzing data and creating objectives to report past activities and project prospect performance in the 1900s, even though the word “ performance management” was not utilized until in the 1970s (Fryer, Antony & Ogden 2009, p. 478). Currently, it is a recognized facet of the public sector management with several journals and books, creating special editions on its topic (Fryer, Antony & Ogden 2009, p. 478).
From then on, the performance language has turned out to be each day attribute of operations in numerous public sector firms. According to Flynn (2007), the performance language has been related to the setting of indicators or standards to be realized, and auditing of systems of the organization to guarantee conformance. Based on the information, this essay will define what performance management is and analyze why it is important in the public sector. The essay will also highlight its major drawbacks and pitfalls. Performance management definition and overview According to Latham, Borgogni & Petitta (2008, p. 389), Performance management is defined as all activities which make sure that objectives are constantly being fulfilled in an efficient and effective way.
This aspect first emerged in the UK in the 1980s during a period described as Thatcherism. There existed a crisis in the National Health Service in the late 1970s (Boyne & Chen 2006. p. 456). For instance, the operations at the hospitals could not take place owing to inadequate funding, there was extensive displeasure with the public services in totality, health practitioners needed more money and the government of the day was attempting to reduce more spending.
Verbeeten (2008, p. 430) postulates that in reaction to the situation, Conservative governments in the 1980s led by Margaret Thatcher started transforming the public sector permanently. These transformations have continued in the succeeding Labour governments. It should be noted that performance management encompasses every aspect of a business.
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