Tomi Rajala, Harri Laihonen and Petra Haapala
This paper aims to understand performance management as a social phenomenon by investigating the challenges of performance dialogue, a phenomenon where participants jointly…
Abstract
Purpose
This paper aims to understand performance management as a social phenomenon by investigating the challenges of performance dialogue, a phenomenon where participants jointly interpret performance information and discuss it while identifying the actions needed to manage the performance according to this information.
Design/methodology/approach
The research aim is achieved by conducting an interview study. Empirical data were collected by interviewing 30 public managers in three Finnish municipalities and subjecting it to content analysis using inductive category development.
Findings
The research provides empirical evidence from challenges in engaging in performance dialogue. It moreover derives a comprehensive conceptual model categorizing factors inhibiting performance dialogue.
Practical implications
Difficulties in conducting organizational performance dialogues are better explained. The findings support the management of performance dialogue by helping practitioners to identify challenges associated to these dialogues.
Originality/value
This study contributes to current conversations on performance management by showing that performance dialogues are no miracle cure for problems in performance information use. Moreover, the authors demonstrate that complications in performance information use are intertwined in many ways.
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Tomi Rajala, Harri Laihonen and Petra Kokko
Fragmentation can inhibit joint goals and performance measures. Therefore, the purpose of this study is to investigate the level of fragmentation between public, private and third…
Abstract
Purpose
Fragmentation can inhibit joint goals and performance measures. Therefore, the purpose of this study is to investigate the level of fragmentation between public, private and third sectors in a hybrid organization's performance management systems and the effects of this fragmentation to propose hypotheses and new research methods for future studies.
Design/methodology/approach
The inductive research design was based on a mixed method approach. As empirical data, a survey, interviews and documents were used in this case study examining a hybrid organization called Welfare Alliance.
Findings
The results showed low-level fragmentation in the performance management system of the hybrid. Although the level of fragmentation was low-level, it affected the hybrid's ability to implement joint performance goals and measures. Performance management practices suffered as a consequence.
Originality/value
As a theoretical contribution to research addressing performance management in hybrids, the study proposes new concepts and theoretical hypotheses concerning fragmented performance management systems in hybrids. These theoretical hypotheses propose how performance goals and measures can become fragmented because they isolate service production units and activities from each other. The proposed hypotheses for future studies also attempt to provide explanations for how fragmentation can spread from one management function to another (i.e. from goal setting to performance measurement).
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Tomi Rajala and Harri Laihonen
Lack of knowledge and performance information sharing between actors is one manifestation of fragmentation in public performance management. This study aims to understand what…
Abstract
Purpose
Lack of knowledge and performance information sharing between actors is one manifestation of fragmentation in public performance management. This study aims to understand what managerial means are used for connecting performance dialogues and how these means affect fragmentation in performance management.
Design/methodology/approach
In this cross-sectional research design, the authors reviewed documents, interviewed public managers, observed workshops and held thematic discussions with public managers in one Finnish municipality. To analyze the empirical data, the authors used thematic analysis and both inductive and deductive research approaches.
Findings
The analysis revealed nine managerial means that public managers use for connecting performance dialogues to decrease fragmentation. These were (1) defining the division of labor between different dialogues, (2) assigning resources for performance dialogues, (3) generating convincing narratives for promoting collaboration, (4) providing the same performance information to collaborators, (5) building joint information systems, (6) establishing integrative performance dialogue hubs, (7) naming the gatekeepers, (8) offering training for dialogues and (9) synchronizing performance dialogues. Based on our findings, most of these means can preserve, increase or decrease fragmentation depending on their design.
Originality/value
The results of the study are valuable because the performance management literature has not investigated what managerial means are used to connect performance dialogues and how these means can preserve, increase or decrease fragmentation.
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Tomi Rajala and Harri Laihonen
The purpose of this paper is to propose a definition for dialogic performance management and investigate the managerial choices that dialogic performance management necessitates…
Abstract
Purpose
The purpose of this paper is to propose a definition for dialogic performance management and investigate the managerial choices that dialogic performance management necessitates from public managers.
Design/methodology/approach
The research strategy was based on a narrative analysis grounded in relativism and constructivism. Multiple data collection methods were used in this case study to examine a local government in Finland.
Findings
The paper proposes a definition and provides practical illustrations of the concept of dialogic performance management. The empirical findings are a set of managerial choices used to orchestrate dialogic performance management.
Practical implications
The concept of dialogic performance management encourages practitioners to ask themselves whether their current performance management practices are based on managerial monologues, rather than dialogues that incorporate staff into the performance management. The results also show that managerial choices shape the form of dialogic performance management.
Originality/value
The previous accounting and performance management literature has not examined the managerial choices that are used to shape dialogic performance management. In this research, the authors identify these types of managerial choices in the case organisation. The research is valuable because only after explicating managerial choices can one start to examine why dialogic performance management either fails or succeeds when public managers orchestrate it.
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Tomi Rajala and Lotta-Maria Sinervo
Although politicians' use of performance information affects political decisions and, through them, the well-being of society, there is a lack of studies exploring what contextual…
Abstract
Purpose
Although politicians' use of performance information affects political decisions and, through them, the well-being of society, there is a lack of studies exploring what contextual factors are associated with annual active performance information use among politicians. Furthermore, past studies on this subject have been cross-sectional rather than longitudinal.
Design/methodology/approach
In this qualitative case study, triangulation of observations and 10 semi-structured interviews were used to ensure the robustness of findings. The study was conducted in a Finnish municipality known as Kangasala.
Findings
A dialogue culture, constructive political climate, trusted information sources and high-quality information attained via accessible information channels explained the high information use in primarily unfavorable conditions to such use. The authors’ findings contradict many prior interview and survey studies that did not recognize the simultaneous contributions of the information provider, channel and quality, along with organizational and environmental factors to high performance information use. The results contradict to some extent the findings from other countries as these studies have explained high levels of use with unique combinations of drivers, whereas we identify common attributes of these combinations and talk about their meaning in the success of Kangasala's public financial management. However, the findings of this case study cannot be generalized.
Originality/value
This study describes a case organization that created a supportive environment for politicians' frequent performance information use that contributed to improvements. Past studies provide little knowledge about establishing sustained high levels of information use among politicians, so the case offers ideas and inspiration for improving this use.
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This study examines unexplored horizontal accountability types between public, private and third sector actors within a hybrid organization. The case organization was applying a…
Abstract
Purpose
This study examines unexplored horizontal accountability types between public, private and third sector actors within a hybrid organization. The case organization was applying a novel alliance model to generate service paths for heterogeneous clientele consuming cultural, educational, health and social services. It was first to do so in Finland.
Design/methodology/approach
This research is on a case study that used documents and interviews to examine the design of the horizontal accountability. The descriptive analysis focused on identifying what type of formal accountability system was designed (i.e. who is the account holder, and who is accountable and for what and why).
Findings
An imbalanced accountability system was identified because accountability obligations were unevenly distributed between public, private and third sector actors. The private sector was the most accountable for performance, and the third sector (i.e. voluntary sector) was the least accountable. As account holders, the public, private and third sector actors were judging their conduct as account providers. This created a biased horizontal accountability system. The hybrid's accountability system was dynamic because the contracts made to establish the hybrid included opportunities to change horizontal accountability if future changes to the external environment affect too drastically the potential to achieve the hybrid's goals.
Originality/value
Three new concepts are proposed for studying dysfunctional accountability systems: dynamic, biased and horizontally imbalanced accountability.
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Presidents have constitutional powers and are incentivized to use performance information that is essential to economic leadership practices. However, presidents have not…
Abstract
Purpose
Presidents have constitutional powers and are incentivized to use performance information that is essential to economic leadership practices. However, presidents have not previously been studied in this context. The purpose of this paper is to examine how two sitting presidents use numerical performance information in their speeches. A speech is a formal talk given to a large number of individuals at a particular instance.
Design/methodology/approach
Empirical data were obtained from 85 presidential speeches given by the president of Estonia and 35 by the president of Lithuania. The speeches were analyzed using qualitative and quantitative content analysis. Inductive inference, descriptive statistics and statistical tests were used to propose new theoretical ideas for future research.
Findings
Studied presidents used extensively numerical performance information, primarily outcome information. Also, the presidents used performance information differently, even though both presidents operated in a similar political context and had similar individual characteristics. The differences were in part explained by speech length but not speech context. Older age, doctoral degree, and longer administrative and political career were associated with lower use.
Practical implications
The study provides preliminary results on how presidents use performance information and what type of performance information is most useful in presidential speeches that address the nation and conduct economic leadership.
Originality/value
New analytical models are presented that can be used to study the intensity of performance information use in rhetoric. Conceptual definitions of the various levels of intensity in performance information use are also introduced. In general, presidential performance information use adds a new dimension to existing research.