IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/14754.html
   My bibliography  Save this paper

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/14754/1/MPRA_paper_14754.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    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)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Auriel M. V. Fournier & R. Randy Wilson & Jeffrey S. Gleason & Evan M. Adams & Janell M. Brush & Robert J. Cooper & Stephen J. DeMaso & Melanie J. L. Driscoll & Peter C. Frederick & Patrick G. R. Jodi, 2023. "Structured Decision Making to Prioritize Regional Bird Monitoring Needs," Interfaces, INFORMS, vol. 53(3), pages 207-217, May.
    2. Timothy L. McDaniels & Stephanie E. Chang & David Hawkins & Gerard Chew & Holly Longstaff, 2015. "Towards disaster-resilient cities: an approach for setting priorities in infrastructure mitigation efforts," Environment Systems and Decisions, Springer, vol. 35(2), pages 252-263, June.
    3. Carland, Corinne & Goentzel, Jarrod & Montibeller, Gilberto, 2018. "Modeling the values of private sector agents in multi-echelon humanitarian supply chains," European Journal of Operational Research, Elsevier, vol. 269(2), pages 532-543.
    4. Timothy C. Irwin, 2015. "Defining The Government'S Debt And Deficit," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 711-732, September.
    5. Asogwa & Ikenna Elias & Etim & Osim Etim, 2017. "Traditional Budgeting in Today’s Business Environment," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 7(3), pages 1-7.
    6. Jakub Haas & Eva Gajdošová, 2016. "The Performance Indicators for The State Health-related Expenditures: Lessons from OECD," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2016(1), pages 5-22.
    7. Jay Simon & Donald Saari & Donald Saari, 2020. "Interdependent Altruistic Preference Models," Decision Analysis, INFORMS, vol. 17(3), pages 189-207, September.
    8. Gönenç Yücel & Catherine Miluska Chiong Meza, 2008. "Studying transition dynamics via focusing on underlying feedback interactions," Computational and Mathematical Organization Theory, Springer, vol. 14(4), pages 320-349, December.
    9. Yang, Guo-liang & Rousseau, Ronald & Yang, Li-ying & Liu, Wen-bin, 2014. "A study on directional returns to scale," Journal of Informetrics, Elsevier, vol. 8(3), pages 628-641.
    10. Rodrigo A. Estévez & Carlos Veloso & Gabriel Jerez & Stefan Gelcich, 2020. "A participatory decision making framework for artisanal fisheries collaborative governance: Insights from management committees in Chile," Natural Resources Forum, Blackwell Publishing, vol. 44(2), pages 144-160, May.
    11. Robin Gregory & Doug Easterling & Nicole Kaechele & William Trousdale, 2016. "Values‐Based Measures of Impacts to Indigenous Health," Risk Analysis, John Wiley & Sons, vol. 36(8), pages 1581-1588, August.
    12. Alaa Mohama Malo Alain & Magdy Melegy Abdul Hakim Melegy, 2017. "Program and Performance Budgeting System in Public Sector Organizations: An Analytical Study in Saudi Arabian Context," International Business Research, Canadian Center of Science and Education, vol. 10(4), pages 157-166, April.
    13. Richard M. Anderson & Robert Clemen, 2013. "Toward an Improved Methodology to Construct and Reconcile Decision Analytic Preference Judgments," Decision Analysis, INFORMS, vol. 10(2), pages 121-134, June.
    14. Pham Quang Huy & Vu Kien Phuc, 2022. "Insight into the Critical Success Factors of Performance-Based Budgeting Implementation in the Public Sector for Sustainable Development in the COVID-19 Pandemic," Sustainability, MDPI, vol. 14(20), pages 1-37, October.
    15. Cleemput, Irina & Devriese, Stephan & Kohn, Laurence & Westhovens, René, 2018. "A multi-criteria decision approach for ranking unmet needs in healthcare," Health Policy, Elsevier, vol. 122(8), pages 878-884.
    16. Liu, Shuang & Proctor, Wendy & Cook, David, 2010. "Using an integrated fuzzy set and deliberative multi-criteria evaluation approach to facilitate decision-making in invasive species management," Ecological Economics, Elsevier, vol. 69(12), pages 2374-2382, October.
    17. Ralph L. Keeney, 2007. "Modeling Values for Anti‐Terrorism Analysis," Risk Analysis, John Wiley & Sons, vol. 27(3), pages 585-596, June.
    18. Abbas, Ali E. & Hupman, Andrea C., 2023. "Scale dependence in weight and rate multicriteria decision methods," European Journal of Operational Research, Elsevier, vol. 309(1), pages 225-235.
    19. Cairns, George & Goodwin, Paul & Wright, George, 2016. "A decision-analysis-based framework for analysing stakeholder behaviour in scenario planning," European Journal of Operational Research, Elsevier, vol. 249(3), pages 1050-1062.
    20. Jamie Donatuto & Larry Campbell & Robin Gregory, 2016. "Developing Responsive Indicators of Indigenous Community Health," IJERPH, MDPI, vol. 13(9), pages 1-16, September.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:14754. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.