The Impact of Performance Management on Performance in Public Organizations: A Meta-Analysis

TLDR: This article conducted a meta-analysis on the impact of performance management systems on performance in public organizations and found that the average effect of the average performance management on performance is quite small, however, the effect of performance systems are substantially larger when using best practice management practices in high quality studies.

Abstract: Performance-based management is pervasive in public organizations; governments around the world have created performance management systems with the hope that they will contribute to organizational effectiveness. However, there has been little comprehensive review of the effect of performance management on public sector performance. This paper conducts a meta-analysis on the impact of performance systems on performance in public organizations. Meta-analysis combines the findings from a number of studies into a single study. This paper contributes to the current literature in three ways. First, it examines the effect of the average performance management system. Second, it examines the influence of management through performance management best practices and whether they moderate the average effect. Third it examines the effect of time on the performance of performance management. Using 2,188 effects coded from 49 studies, I find that that the average effect of performance management on performance is quite small. However, the effect of performance systems are substantially larger when using best practice management practices in high quality studies -- management practices have a substantial effect on the effectiveness of performance management systems. The evidence for the influence of time on the effectiveness of performance systems is mixed.