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Diagnosing performance management and performance budgeting systems: A case study of the U.S. Navy

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  • Webb, Natalie J
  • Candreva, Philip J

Abstract

We present here a case study of an organization within the U.S. Navy that created a new organizational construct and performance management system. We explore the issues faced by naval leaders as they attempt to use their performance information to make resource allocation decisions at the sub-organization level, and base budgets at the organization and service (navy) level. We attempt to diagnose many of the practical problems a government organization encounters when implementing a performance management system, to include trying to inform budgets, and make recommendations on actions that would improve the strength of the performance system. We find in the organization a good conceptual framework, organizational enthusiasm, and reasonable attempts to link disparate information systems into a coherent whole. The good intentions are hindered, however, by inadequate accounting systems, a lack of understanding of cost accounting methods, weak use of terminology and longstanding institutional attitudes. This case confirms challenges associated with both performance management systems and performance budgeting found in the literature, and we offer recommendations for public officials considering such endeavors.

Suggested Citation

  • Webb, Natalie J & Candreva, Philip J, 2009. "Diagnosing performance management and performance budgeting systems: A case study of the U.S. Navy," MPRA Paper 14754, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:14754
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    References listed on IDEAS

    as
    1. Allen Schick, 2007. "Performance Budgeting and Accrual Budgeting: Decision rules or Analytic Tools?," OECD Journal on Budgeting, OECD Publishing, vol. 7(2), pages 109-138.
    2. Ralph L. Keeney & Robin S. Gregory, 2005. "Selecting Attributes to Measure the Achievement of Objectives," Operations Research, INFORMS, vol. 53(1), pages 1-11, February.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Muhammad Dahlan, 2018. "Interactive Use of Performance Measurement Systems and its Impact to Firm Performance: Evidence from West Java Province Local-Owned Enterprise, Indonesia," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 148-152:2.

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    More about this item

    Keywords

    performance management; performance budgeting; public budgeting;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems

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