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Challenges in the Implementation of Performance Management

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Challenges in the Implementation of Performance Management CHALLENGES IN THE IMPLEMENTATION OF PERFORMANCE MANAGEMENT. CASE STUDY OF THE RUSSIAN PUBLIC SERVICES, KRASNOYARSK CITY Anastasiya Kichigina Faculty of Social Sciences and Humanities, London Metropolitan University Submitted in partial fulfilment of the requirements for the degree of Doctor of Philosophy January, 2017 1 DECLARATION I certify that the work I have presented for examination for the PhD degree by London Metropolitan University is solely my own work, other than where I have clearly indicated that it is the work of others. 2 ACKNOWLEDGEMENTS I was awarded a fee waiver Vice-Chancellor scholarship by the London Metropolitan University for three years of my research course which commenced in January 2012. I would like to express my sincere gratitude to the London Metropolitan University and particularly to ex Vice Chancellor Professor Malcolm Gillies and the Academic Leader of Research and Graduate Studies Dr Wendy Stokes for making the PhD study possible. I was thrilled to learn of my selection for this honour and I am deeply appreciative of your support. Dr Diana Silvia Stirbu, my Principal Supervisor, provided feedback and advice on all aspects the research design and the thesis. I sincerely thank Diana for offering her time and energy to me. Her guidance helped me in all the time of research and writing of this thesis. I am also thankful to Pat Gray, the Head of School of Social Professions and Associate Dean for Partnerships for discussions, feedback and advice on the different chapters and providing understanding of the doctoral research process. Diana and Pat’s supervision enhanced my research journey and I thank them for this. I would like to thank my line manager Professor David Leon for their insightful comments, feedback and encouragement. I could not have imagined having a better line manager and mentor. I am forever indebted to my friend Kevin Kiernan for his enthusiasm, guidance, proof reading and unrelenting support throughout this process. I have never met anyone who believes in me more. Thank you Kevin for being a substitute for my family. 3 ABSTRACT Many public sector organisations worldwide have implemented performance management systems to improve performance. Performance management was initially designed by the private sector in Western countries and then adopted by the public sector. Now, performance management has become a global reform also implemented in the public sector of countries in transition such as Russia. A system of performance management has been designed and introduced by the federal government of the Russian Federation in 2007 as a part of the Administrative reform agenda. Success in implementing the performance management in the public sector organisations has varied. The thesis explores the experience of implementing a system of performance management in the local governance of the Russian Federation for the period of time 2013- 2014. It addresses a series of questions prompted by the process of implementation. First, the thesis explores the actual process of performance management implementation in the context of the Russian local government. Second, it provided the insights on the attitudes and perceptions of the local authority managers regarding the performance management purpose and implementation. Third, it explores the major challenges encountered during the process of the implementation. Drawing upon theoretical assumptions of the policy transfer theory, institutional theory and the integrated approach to performance management system, this thesis proposes a richer understanding of the Russian local government performance management implementation in practice as it is looking at the same phenomenon from different angels. The thesis employs a single method qualitative case study approach. Data is collected mainly through semi-structured interviews, with support of documentary research and participant observations. Study particularly looks at the local governance of the Russian public sector by using Krasnoyarsk City Administration as a case study. The study gives effect to the basic principles and values of public administration in relation to the implementation of performance management system. The study contributes to the current theories and debate on the mainstreaming and institutionalizing of public service delivery to determine organisational performance by governmental institutions. Particularly, this contributes to the existing body of knowledge regarding challenges 4 encountered during the implementation of Performance Management System in the public sector organisations. It adds to understanding of the public managers’ experience of implementing a performance management system in local government and it contributes to the research in this field conducted in transition countries. 5 TABLE OF CONTENTS ACKNOWLEDGEMENTS ............................................................................................... 3 ABSTRACT ....................................................................................................................... 4 1. INTRODUCTION..................................................................................................... 13 1.1. Aim and objectives ................................................................................................ 15 1.2. Research questions ................................................................................................. 16 1.3. Research theory and methods ................................................................................ 17 1.4. Outline of the study................................................................................................ 18 2. NEW PUBLIC MANAGEMENT AS AN INTERNATIONAL PHENOMENON .... 20 2.1. New Public Management concept ......................................................................... 20 2.2. New Public Management criticism ........................................................................ 24 2.3. New Public Management in the context of the policy transfer.............................. 28 2.4. Transferring of New Public Management Ideas: lessons drawing ........................ 36 3. THEORETICAL PERSPECTIVES ON PERFORMANCE MANAGEMENT .......... 40 3.1. Conceptual framework ........................................................................................... 40 3.2. Performance management within management theory .......................................... 43 3.2.1. Organisational theory .................................................................................... 44 3.2.2. Contingency theory ....................................................................................... 45 3.2.3. Systems theory .............................................................................................. 46 3.2.4. Agency theory ............................................................................................... 46 3.2.5. Social learning theory ................................................................................... 48 3.2.6. Goal setting theory ........................................................................................ 48 3.3. Performance management implementation: why ‘perfect implementation’ is unattainable in practice? ............................................................................................... 50 3.4. Factors of success in performance management implementation ......................... 61 3.4.1. Change management factors ......................................................................... 62 3.4.2. Alignment of strategic plan with management systems ................................ 62 3.4.3. Organisational culture and leadership ........................................................... 64 3.4.4. Training and creating a learning organisation ............................................... 65 3.4.5. Rewarding good performance ....................................................................... 66 3.4.6. Flexibility and simplicity .............................................................................. 66 3.4.7. Involvement of all staff and communication ................................................ 67 3.4.9. Monitoring, reviewing and evaluation .......................................................... 67 3.4.10. Key stakeholders engagement ..................................................................... 68 3.5. Performance management implementation: barriers and challenges .................... 69 6 4. THEORETICAL FRAMEWORK OF THE STUDY ................................................. 79 4.1. Institutional theory ................................................................................................. 79 4.2. Performance management as an integrated system: strategic, operational and individual levels ............................................................................................................ 81 4.3. Five Factor Performance Management Model ...................................................... 86 5. CASE STUDY: FROM REFORMS TO PERFORMANCE MANAGEMENT ...... 89 5.1. Introducing performance management system in Russia ...................................... 89 5.2. Public administration reforms implementation in the Russian Federation ............ 91 5.3. The Civil Service Reform ...................................................................................... 93 5.4. The Budget reform ................................................................................................. 94 5.5. The Administrative reform ...................................................................................
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