Public management and organizational performance: The effect of managerial quality

This paper presents the first large study of public management quality and its effect on program performance. Using 5 years of data from more than 1000 Texas school districts, the authors measure quality as the additional salary paid to school superintendents over and above the normal determinants of salary. This measure of managerial quality is positively correlated with 10 of 11 performance indicators covering organizational goals ranging from standardized tests to school attendance. These relationships hold even in the presence of controls for other determinants of program success. The measure has the potential to be used in tests of existing management theories, thus moving the literature beyond case studies to more systematic research involving many subjects. © 2002 by the Association for Public Policy and Analysis and Management.