Organisational Effectiveness: Debates behind measurement issues in the Public Health Sector

Abstract

This paper presents a discussion and exploration of influences into the development of performance measurements in the public sector. Such measures are subject to individual (rational decision-makers), managerial (goal congruent) and organisational (political philosophy) variations A case study (PHARMAC) is used by way of example to describe one organisation’s response to the complex relationships that exist within the public health sector. However, this paper does not attempt to describe or prescribe how public sector entities should behave. Rather, it is hoped to enable those responsible for developing public sector performance measures through an informed presentation of the influences on such actions.