The Application of Performance Management Systems Framework in Public Healthcare: Evidence from a Field Study

Abstract

Several studies in different countries have focused on performance management in public healthcare services, including the impact of new performance management systems (hereafter, PMS) and how the design of PMS has yielded unintended consequences. This paper examines the application of performance management systems framework in public healthcare services. Ferreira and Otley’s (2009) performance management framework was used to analyze the data. The empirical findings of the study demonstrate that the vision and mission of the studied organization were clearly stated and communicated to employees. Also, evidence indicates that NSH’s PMS composed of loosely coupled elements. Our analysis shows lack of involvement of subordinates in the strategic process and the absence of specific performance targets. Furthermore, our finding reveals the existence of biasness in performance rating. A key research implication is that the PMS framework adopted can be meaningfully used to generate insights into performance management issues in public sector healthcare organizations.