The aim of this thesis is to analyze empirically the effect of the management performance evaluation system on the public enterprises’organizational performance. Specifically, the change in management performance evaluation system was to analyze the impact on the management performance of public enterprises. The management performance evaluation system for public enterprise has been regarded as the effective performance management system and governance structure. Management performance evaluation system is growing day by day because of the controversy about the usefulness and importance of management effectiveness evaluation system and impact on the performance of public institutions has made a lot of empirical and objective analysis of the study. But the situation that the majority of empirical research attempts to study through comparison with non-introduction of public sector performance management evaluation and comparison of before and after the introduction of management evaluation. That is, it does not consider the performance of the management evaluation system from different perspectives.10 KEPCO subsidiaries have received an annual management performance evaluation by an external management evaluation teamof KEPCO since 2002. As from 2011, six companies that produce electricity designated as ;;a market-type public enterprises’ were subject to government management evaluation. The purpose of this study was to evaluate the change in the management performance evaluation method to find out whether the government management performance evaluation system influences the management performance of public enterprises. The management performance of public enterprises are represented in public service and management efficiency. First, management efficiency is greatly organizational effectiveness, human resources efficiency, financial management efficiency, profitability and productivity were separated. Publicity of the power company is measured by the number of generator failure. A total of about 11 variables for 12 years from 2002 to 2013, the data were examined.Ⅰ. The changes in management performance evaluation system willhave a positive impact on the operational efficiency of public enterprises.Ⅱ. The Publicity of power companies before and after the change willbe the difference.I tested these two hypotheses with a difference-in-differences model and t-test. To do this, I constructed panel data sets consisting of 12 time series(2002∼2013, per year) observation on each of 10 cross sectional units on all 10 dependent variables. The DID analysis is mainly used to verify the effectiveness of specific policy measures, as appropriate research techniques to assess causality. It has set up 10 variables except number generator failure as the dependent variable. When the independent variables were composed of time dummy, group dummy, ;;time and group interaction term’. In addition, by setting the assets as control variables were controlled for differences in organization size between the two groups.The testing results for sub-items of hypotheses are as presented below
.1-1.The changes in management performance evaluation system can improve the operation management efficiency.(rejected)1-2.The changes in management performance evaluation system can improve the labor cost management efficiency.(rejected)1-3.The changes in management performance evaluation system can improve the personnel management efficiency.(rejected)1-4. The changes in management performance evaluation system can improve the financial management efficiency.(rejected)2-1. The changes in management performance evaluation system can improve the net income.(rejected)2-2. The changes in management performance evaluation system can improve the operating profit. (rejected)2-3. The changes in management performance evaluation system can improve the return on investment.(rejected)2-4. The changes in management performance evaluation system can improve the ratio of net income to net sales.(rejected)3-1. The changes in management performance evaluation system can improve the labor productivity.(rejected)3-2. The changes in management performance evaluation system can improve the value-added output.(rejected)4. The number of generator failure after evaluation method changes will increase.(accepted)The change of management performance evaluation system did not have a positive impact on improving business performance. In fact, it is switching to public sector management evaluation conducted by the government while developing inter-company competition has been strengthened. And effectiveness of supervision over the management incentive was considered relatively higher. However, the results from this study was analyzed that due to changed management evaluation index system.The main terms of management efficiency indicators focusing on individual companies has changed. Clearly there was a room for improvement in the performance of this section should be noted that the operational efficiency has not been improved as verified in this study.The overall results of this study believe that due to the specificity and the governance structure of the electricity industry. The focus of management evaluation indicators are that there is a limitation on the general operational efficiency. Taking into account the peculiarities of the power generation industry must reinforce the surface to highlight the power industry overall efficiency.Theoretical and methodological limitations in this study and even have the character as an exploratory study. And access to the new perspective on the effectiveness of the management performance evaluation system was attempting to analyze. This is the significance of this thesis.