Public administrative reform in Indonesia accelerated after the country experienced economic and political turbulence in 1999. As part of the reform policy, the central government introduced performance management systems in order to improve the capacity of public institutions, particularly local governments. The thesis uses semi-structured interviews to answer, how effective is the performance management system in Indonesian local government? How do rational/technocratic and political frameworks affect the effectiveness (or ineffectiveness) of performance management system? The evidence suggests the performance management system in the Indonesian public sector is ineffective. This is indicated by gaps between performance indicators and actual performance, by the non-use of performance information and by the behaviour of those who are supposed to be influenced. The ineffectiveness may be explained by both rational/technocratic factors, and political/cultural factors. Based on our findings, those elements affect effectiveness of the performance management system. However, respondents emphasised that political/cultural elements were more fundamental to successful use of performance information, but present more difficult and challenging issues to reform. Indonesian government agencies compete with each other to maintain a role in the context of decentralisation, each seeking to prevent too much accumulation of power by any other agency. Therefore, although the government agencies may favour a technocratic approach, they will resist any comprehensive technocratic scheme of system integration, particularly in the performance management system. The Indonesian public sector may thus represent a case of ‘political technocracy’ in which rationality is limited by political interests.
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The use of performance information in the Indonesian public sector: the role of rational/technocratic and political/cultural frameworks