Measuring the performance of public sector organisations: a case study on public schools in Malaysia

Purpose – The purpose of this paper is to empirically validate the performance management framework for managing public sector performance, particularly public schools. Design/methodology/approach – The performance management framework was developed based on the balanced scorecard principle, that is, appropriately managing the performance determinant will lead to excellent performance. The performance determinant comprises four elements; customer orientation, learning and growth, internal processes, and financial management. Focus group discussions were used to derive the indicators to assess these elements. These indicators were later transformed into Likert Scale questionnaires that were used in the subsequent survey. Findings – This framework was validated using survey data from secondary schools in Sarawak, Malaysia and it was found that the model has an adequately good fit ( χ 2 /df=2.70, GFI=0.88, CFI=0.88, TLI=0.87, RMSEA=0.057) Research limitations/implications – Since the framework was validated in an educational setting, some modifications need to be made if it were to be used for managing the performance of other non‐profit organisations. However, the structural model proposed in this paper can be used as a generic platform to develop a specific framework for other types of organisations. Practical implications – The performance management framework proposed in this paper provides valuable insights on the interrelationships between performance determinants and performance. Originality/value – Even though the balanced scorecard forms the platform for the performance management framework, the author assesses both the direct and indirect effects of the performance determinants on the overall organisational performance using structural equation modelling, a technique that performs simultaneous analysis.