The Impact of Performance Management Under Environmental Turbulence

Document Type

Article

Publication Date

11-27-2018

Publication Title

The American Review of Public Administration

Abstract

Performance management is an established concept in the public sector, with several empirical studies supporting its beneficial impact on organizational performance. Research on performance management, however, is still in initial stages and mostly examines the impact of this practice under stable environmental conditions. This study adds to the literature by analyzing the effect of this system on performance of local transit agencies in a turbulent environment characterized by the Great Recession and its aftermath. Exploratory factor analysis (EFA) on survey responses from 162 local transit agencies in the United States is used to extract the four components of performance management, namely, formal strategic planning, logical incrementalism, performance measurement, and performance information use. Ordinary least squares (OLS) regression analysis shows that an independent use of formal strategic planning and logical incrementalism has a negative impact on organizational performance under turbulence. Performance measurement and a blend of formal strategic planning and logical incrementalism, however, show a positive impact.

Original Citation

Pasha, O., & Poister, T. H. (2019). The Impact of Performance Management Under Environmental Turbulence. The American Review of Public Administration, 49(4), 441–453. https://doi.org/10.1177/0275074018814245

DOI

10.1177/0275074018814245

Volume

49

Issue

4

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