A Review on Application of Performance-Based Management: A Case of Nepalese Civil Service Reform
A Review on Application of Performance-Based Management: A Case of Nepalese Civil Service Reform
By Bharat Raj Gautam1
1Parliament Secretariat, Kathmandu, Nepal Various reform agendas were applied in Nepalese civil service to improve performance of the employees and organizations. Performance-Based Management (PBM) was introduced in 1990, with the aim to linking the financial incentives with the employees' performance. The main objective of the article is to examine and analyze application of the PBM and affecting factors like political will, bureaucratic commitment, financial resource and performance of monitoring institutions. The reform initiatives before 1990 were traditional, whereas the initiatives after 1990 are under New Public Management (NPM). The PBM was introduced in the Ministries of Agriculture, Health and Education in 2001-2005 (extended up to 2007) by the Governance Reform Program (GRP). The plan couldn't be implemented effectively. Later, the performance-based incentive policy was introduced by Ministries of Finance and General Administration.
The article reviews the literatures on reforms, NPM and PBM. Christensen et al 2007, p. 122 stressed on the structure and culture of the organization, whereas Politt and Bouckaert (2004) emphasized on the structure and the process. The researcher has summarized the reform as ‘necessary for bringing change in the established structure, practice, process and culture for better performance to achieve organizational goals’. According to Christopher Hood, the NPM is "a doctrine that includes professional management, performance orientation, outputs and results”. On the other hand, Chirstensen and Lægreid stated, "It is a combination of managerial and economic theories.” The PBM is the key aspect of modern management. It is the link between the performance and/or accountability and the reward.
Historical institutionalism and policy implementation are the theories applied in the study. Historical
By Bharat Raj Gautam1
1Parliament Secretariat, Kathmandu, Nepal Various reform agendas were applied in Nepalese civil service to improve performance of the employees and organizations. Performance-Based Management (PBM) was introduced in 1990, with the aim to linking the financial incentives with the employees' performance. The main objective of the article is to examine and analyze application of the PBM and affecting factors like political will, bureaucratic commitment, financial resource and performance of monitoring institutions. The reform initiatives before 1990 were traditional, whereas the initiatives after 1990 are under New Public Management (NPM). The PBM was introduced in the Ministries of Agriculture, Health and Education in 2001-2005 (extended up to 2007) by the Governance Reform Program (GRP). The plan couldn't be implemented effectively. Later, the performance-based incentive policy was introduced by Ministries of Finance and General Administration.
The article reviews the literatures on reforms, NPM and PBM. Christensen et al 2007, p. 122 stressed on the structure and culture of the organization, whereas Politt and Bouckaert (2004) emphasized on the structure and the process. The researcher has summarized the reform as ‘necessary for bringing change in the established structure, practice, process and culture for better performance to achieve organizational goals’. According to Christopher Hood, the NPM is "a doctrine that includes professional management, performance orientation, outputs and results”. On the other hand, Chirstensen and Lægreid stated, "It is a combination of managerial and economic theories.” The PBM is the key aspect of modern management. It is the link between the performance and/or accountability and the reward.
Historical institutionalism and policy implementation are the theories applied in the study. Historical