Critical considerations on defining and measuring performance in public organizations

Performance evaluation plays a central role in improving public service quality and increasing efficiency and accountability in the public sector. New Public Management recommends performance evaluation as a tool for rationalizing public budgeting, promoting better reporting systems and developing internal diagnosis systems. This paper aims to analyze the characteristics of performance evaluation and to highlight its influences in public organizations. The study is based on review and analysis of academic research, government documents and personal perspectives. The paper argues that managerial practices and tools for defining and evaluating performance can be used for cultivating the “achievement culture” in public sector organizations.