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Negative Weights for Performance Measures

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2009

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https://doi.org/10.1080/10967490903103284
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International Public Management Journal. Taylor & Francis. 2009, 12(3), pp. 332-344. ISSN 1096-7494. eISSN 1559-3169. Available under: doi: 10.1080/10967490903103284

Zusammenfassung

Quantitative performance measurement is a controversial idea in the public sector. This paper argues that management by measurement is sensible if the measurement methods have a sufficient quality. In particular, quantitative performance measures have to address problems of gaming and monitoring intensity. I look at the assignment of negative weights to poor, but informative, performance measures even if these measures have a positive correlation with the non-contractible performance objective. In a simple agency relationship, I show how a poor measure with negative weight can serve as an indicator for manipulation. However, the benefits derived from a negative weight may come at the price of increased measurement risk. Healthcare and research organizations provide examples of how negative weights can improve performance measurement.

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ISO 690EISENKOPF, Gerald, 2009. Negative Weights for Performance Measures. In: International Public Management Journal. Taylor & Francis. 2009, 12(3), pp. 332-344. ISSN 1096-7494. eISSN 1559-3169. Available under: doi: 10.1080/10967490903103284
BibTex
@article{Eisenkopf2009Negat-58034,
  year={2009},
  doi={10.1080/10967490903103284},
  title={Negative Weights for Performance Measures},
  number={3},
  volume={12},
  issn={1096-7494},
  journal={International Public Management Journal},
  pages={332--344},
  author={Eisenkopf, Gerald}
}
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