Does performance matter? Barriers and potential of performance management in Finnish Police Force
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School of Business |
Master's thesis
Ask about the availability of the thesis by sending email to the Aalto University Learning Centre oppimiskeskus@aalto.fi
Authors
Date
2017
Department
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Mcode
Degree programme
Accounting
Language
en
Pages
89
Series
Abstract
In public sector performance information is used to demonstrate responsible use of public money and to convince external bodies of an entity’s legitimacy. Performance isn’t measured in the first place for the reason that performance could be managed. This thesis attempts to explore factors that may hinder utilizing performance measurement and management practices in agency level. The thesis studies a specific setting in which one entity, the case organization National Police Board, manages several geographical units one step below ministry level. In a single qualitative case study setting, agency-wide procurement and accounts payable functions are examined and barriers for possible adoption of performance measurement and management are identified. Pre-adoption barriers were identified by perceiving current state of things as a pre-stage in a management accounting change process. Potential for change was assessed to be somewhat low. Despite good theoretical possibilities for measurement in terms of measurability of performance and having suitable benchmarks inside organization, reality presents several tangible costs but intangible benefits, which may impede future adoption of performance management. The thesis states that different kind of structural challenges in public sector can also be considered as barriers. Experience shows that this seemingly private management practice isn’t easy to apply to public context. Defining performance and creating both technical as well as cultural consequences of performance are first recommended steps for case organization to be taken. Exposing organization to great extent to idea of measuring performance could set the ground favorable for performance management. There is a lot of potential in utilizing relative performance evaluation, which is also one of the rare means that organization can factually use. Leaving performance information only for internal use for agency and letting professionals to find best performance indicator for themselves could help avoiding possible negative effects of performance measurement.Description
Thesis advisor
Vaivio, JuhaniKeywords
performance management, performance measurement, public sector, barriers of change, potential for change