Constraints in the Implementation of Performance Management Systems in Developing Countries

Abstract

Performance management has become a key element in modern public sector governance. As a result, many developing countries have introduced it as a means to measure organizational and individual efficiency in order to ensure that public sector organizations meet the needs of the public. However, the implementation of performance management systems in many of these countries has been affected by a number of institutional and capacity constraints such as culture, institutional fragmentation, public apathy, and leadership support, thus making it difficult for many of them to realize the `benefits' of such a system. This article examines these constraints with a focus on Ghana. Utilizing information obtained from interviews of senior bureaucrats and chief executive officers of state-owned enterprises (SOEs), it is argued that without a critical analysis of these constraints, performance management no matter how attractive it may be will not achieve the desired results in developing countries.