Counting Numbers, but why? : A theoretical discussion on the selection of indicators in public performance measurement

This paper argues that public organizations with a legitimacy problem use their performance management system mainly to explain their effectiveness; while organizations in areas where the organizational legitimacy is not questioned in the same way instead focus on measures of efficiency. The paper approaches the question of how a public organization selects indicators to measure its performance. Opposite to common academic trends towards the usage of very complex models, this paper uses an abstract model based on rational-choice-institutionalism with boundedly-rational actors.
These will present potential ideas on how large-n-studies of different performance management systems could be conducted successfully.

Volltext: http://www.ipmn.net/index.php/archives/ipmj-free-archive/doc_download/196-platzgummer-2013