ABSTRACT

This chapter explores the concepts of performance in the context of competition. The 1980s saw a greater emphasis on a market-place economy in the delivery of public services. Government reforms have been rigorously applied to both government departments and to public authorities with the intention to establish clear management accountability by exposing managers to competition in one form or another. Linked to this clarification of objectives has been the introduction of performance-related pay. Although sight must not be lost of the spending position of both the budget manager and the organisation as a whole, it is apparent that a number of other factors impact on the capacity to live within a particular budget dimension. These may be brought together into a collection of factors which are often referred to as goodwill. Budget managers may themselves inhibit the effectiveness of a system through the manifestation of open hostility, or through latent and subversive opposition to the direction being taken.