Currently, almost all public institutions in Korea employ performance management and there is an increasing perception that a performance management system is vital in contemporary society where organizations can only survive by continuously improving...
Currently, almost all public institutions in Korea employ performance management and there is an increasing perception that a performance management system is vital in contemporary society where organizations can only survive by continuously improving performance and rapid responsiveness. However, some express concern over the introduction of a performance management system, arguing that it does not have much practical effect as the members of public institutions do not feel its utility in real life, and that it may not have a direct link to organizational performance. Therefore, this research attempts to analyze empirically the correlation between a performance management system and organizational performance.
To do so, a model was set and used for empirical analysis of the effects of the receptivity of a performance management system on organizational performance, with the parameters of communication with citizens and need for discussion, and the research was conducted based on a total of 590 questionnaires collected from three institutions that have adopted a citizen-driven government performance system - Jeollabuk-do Provincial Government, Bucheon City Hall, and Pyeongchang City Hall – and four insititions that have not – Gyeonggi Provincial Government, Seongnam City Hall, Chungcheongbuk-do Provincial Government, and Eumseong County. Furthermore, in-depth interviews were conducted with a total of 19 civil servants in Bucheon, Gyeonggi, North Chungcheongbuk-do, Jeollabuk-do, Seongnam, Pyeongchang, and Bucheon for a more profound analysis.
The results showed that receptivity was highest in the performance management system itself, while among the receptivity factors of the system, receptivity for the performance management system itself, receptivity for performance indicators, and receptivity for performance assessment procedures turned out to affect the discussion. The need for discussion has a positive effect on organizational performance – change, will to innovate, and responsiveness – therefore, it is a very important factor in improving performance. Measures will have to be taken to better the quality of such discussion.
Meanwhile, the difference analysis of receptivity for a performance management system, need for discussion, and organizational performance – change, will to innovate, and responsiveness to citizens – regarding the introduction of a citizen-driven government performance system showed that the provincial governments that have adopted the system model had high scores in all sectors, implying the effectiveness of citizen-driven government performance system.
For a clearer understanding of the effectiveness of citizen-driven government performance system, the effects of the receptivity for the system on organizational performance - change, will to innovate, and responsiveness to citizens – with the need for discussion with citizens as the parameter were also analyzed. The results show that only in the provincial governments that have adopted the system, the need for discussion with citizens affects the will for citizens to innovate. The results show that the need for discussion has a huge impact on such will in those provincial governments, and also that the citizen-driven government performance model has a positive effect on the public sphere. In a contemporary society that places a huge emphasis on communication with and participation of the citizens, the need for discussion with citizens should not be neglected and, to encourage such discussion, the introduction of citizen-driven government performance system can be an important tactic.