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203 Management by Objectives in European Public Employment discussion paper FS I 01 - 203 Management by Objectives in European Public Employment Services Hugh Mosley, Holger Schütz, Nicole Breyer May 2001 ISSN Nr. 1011-9523 Revised version of the research report ‘Operational Objectives and Performance Indicators in European Public Employment Services’ prepared for the European Commission, Directorate General for Employment and Social Affairs, Contract No. VC/1999/0082 The authors are grateful to Christopher Engelmann and Robyn Wiesener for indispensable research assistance and secretarial support. Special thanks are due to PES officials, managers and other experts who kindly gave their time for interviews, responding to our questionnaire, or who provided background information, and to Ronald van Bekkum at the European Commission for advice and assistance. The authors alone are responsible for the contents. email: Hugh Mosley: [email protected] Holger Schütz: [email protected] ZITIERWEISE / CITATION Management by Objectives in European Public Employment Services Discussion Paper FS I 01 -203 Wissenschaftszentrum Berlin für Sozialforschung 2001 Forschungsschwerpunkt: Research Area: Arbeitsmarkt und Labour Market and Beschäftigung Employment Abteilung: Research Unit: Arbeitsmarktpolitik und Labour Market Policy and Beschäftigung Employment Wissenschaftszentrum Berlin für Sozialforschung Reichpietschufer 50 D-10785 Berlin e-mail: [email protected] Internet: http://www.wz-berlin.de Abstract This paper surveys and compares national experience with performance manage- ment in European public employment services (PES) in the form of ‘management by objectives’ (MBO). Part I of this paper reviews the relevant performance management literature and defines key terms. Part II presents the results of a stocktaking survey of the use of operational objectives, performance indicators, benchmarking and related managerial practices in all 15 EU Member States and Norway. Part III reports the re- sults of a comparative analysis and more in-depth assessment of national experience with management by objectives in Austria, France, Great Britain, and Sweden. Part IV summarizes principal findings and presents main conclusions. Ten of the eighteen PES organizations surveyed were found to use management by objectives: Austria, Denmark, the Flanders regional PES (VDAB) in Belgium, France, Germany, Great Britain, Finland, the Netherlands, Norway, and Sweden. In summary, the impact of MBO-systems depends strongly on design and implementation features. If based on principles of ‘good-practice’, MBO can improve the efficiency and effective- ness of PES operations. Zusammenfassung In diesem Papier wird eine Bestandsaufnahme zu Verbreitung und Praxis der Zielsteuerung (Management by Objectives, MBO) in europäischen Arbeitsverwal- tungen vorgelegt. Teil I rekapituliert die relevante Forschungsliteratur und entwirft einen analytischen Bezugsrahmen. In Teil II wird ein empirischer Überblick zur Steuerung mittels Zielen und Indikatoren in europäischen Arbeitsverwaltungen gege- ben. Unter 18 Arbeitsverwaltungen sind Zielsteuerungsansätze für die zehn Länder Dänemark, Deutschland, Finnland, Flandern (VDAB), Frankreich, Großbritannien, Niederlande, Norwegen, Österreich, und Schweden nachzuweisen. Teil III vergleicht vertiefend die Managementansätzen in den Arbeitsverwaltungen Österreichs, Groß- britanniens, Frankreichs und Schwedens. Für den Erfolg (oder Mißerfolg) der Zielsteuerung sind Design- und Implementationsfaktoren entscheidend. Wenn Prin- zipien ‘guter Praxis’ beachtet werden, kann die Effektivität und Effizienz der Arbeits- verwaltung mittels MBO gesteigert werden. Table of Contents Page Executive Summary .................................................................................................. i Introduction ..........................................................................................................1 PART I: Conceptual Framework and Research Design......................................3 1. Basic concepts and definitions of performance management ............................3 2. Key analytical issues of management by objectives (MBO) in Public Employment Services (PES) organizations .........................................6 2.1 Prerequisites and pitfalls of successful MBO Commitment of top management and government.........................................................6 2.2 Design features of goals, operational objectives and performance indicators .......................................................................8 2.3 Decentralization and policy discretion, centralization vs. decentralization in target settings.................................10 3. Research design ..............................................................................................11 PART II: Survey of National Experience with Operational Objectives and Performance Indicators in EU PES Organizations ......................13 1. MBO dissemination ..........................................................................................13 2. PES goals and operational objectives: similarities and differences.................................................................................................19 3. Process of formulation of goals, operational objectives, and targets .......................................................................................................22 PART III: Country Case Studies ...........................................................................29 1. Austria: PES performance management profile ...............................................29 1.1 The organizational context.......................................................................29 1.2 The AMS performance management approach.......................................29 1.3 Inventory of goals, objectives and performance indicators ......................32 1.4 Process analysis: definition and implementation of policy goals, objectives and indicators.................................................39 1.5 The management information system......................................................41 1.6 Performance assessment and benchmarking performance assessment within the MBO approach ...............................42 2. Great Britain: PES performance management profile ......................................45 2.1 The organizational context.......................................................................45 2.2 The PES performance management approach .......................................46 2.3 Inventory of goals, objectives and performance indicators .................................................................................................47 2.4 Process analysis: definition and implementation of policy goals, objectives and indicators.................................................51 2.5 The management information system......................................................53 2.6 Performance assessment ........................................................................54 3. Sweden: PES performance management profile .............................................59 3.1 The organizational context.......................................................................59 3.2 The PES performance management approach .......................................60 3.3 Inventory of goals, objectives and performance indicators .................................................................................................61 3.4 Process analysis: definition and implementation of policy goals, objectives and indicators.................................................64 3.5 The management information system......................................................66 3.6 Performance assessment and benchmarking..........................................67 4. France: PES performance management profile ...............................................69 4.1 The organizational context.......................................................................69 4.2 PES performance management approach...............................................70 4.3 Inventory of goals, objectives and performance indicators .................................................................................................71 4.4 Process analysis: definition and implementation of policy goals, objectives and indicators.................................................74 4.5 The management information system......................................................75 4.6 Performance assessment and benchmarking..........................................77 5. Comparing performance management in Austria, France, Sweden and Great Britain...................................................................81 5.1 The PES performance management approach .......................................81 5.2 Goals, targets and indicators ...................................................................83 5.3 Institutional aspects: planning and implementation process ....................................................................................................84 5.4 Performance assessment ........................................................................86 5.5 Benchmarking: comparing performance and identifying good practice ..........................................................................89 PART IV: Summary and General Conclusions ....................................................91 1. Principal findings..............................................................................................91 2. Concluding remarks .........................................................................................96
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