Avoiding Negative Effects of Performance Measurement in Public Organizations: A System Thinking Approach

This paper explores the negative consequences that can arise in public organizations due to the misuse of performance measurement, resulting in unintended dysfunctional effects in practice. It highlights the importance of conducting research to assist public organizations in selecting appropriate performance measures that align with the core purpose of the public organization. To address this need, a three-step conceptual model is proposed, emphasizing a system thinking approach over traditional control and command thinking. By adopting this model, public organizations can better navigate the landscape of performance measures to avoid negative of dysfunctional effects that arise from a micro-management focus in practice.