ABSTRACT

This study examines the issues concerning the current performance evaluations of public institutions and presents suggestions by focusing on the business management category, specifically on the evaluation methods for work efficiency. In order to keep the performance indicator formula simple and to reduce evaluation costs, I suggest evaluating the governance system rather than the performance itself. Further suggestions include lowering weights on productivity and efficiency to help institutions focus on primary goals. While a secure connection between performance and performance-related pay makes employees in public institutions work for the performance indicators, it creates incentives for the manipulation of indicators and results. A link between the evaluation and bonus needs to be limited to the top management rather than being applied to all the employees.