ABSTRACT
Market-based economy is generally accepted as the appropriate model for global and national economic development. However, the public sector organizations will continue to deliver critical services and play a significant role in any economy. Just like the private sector, the PEs are equally driven by the concerns of cost, efficiency, and responsiveness toward their stakeholders. However, unlike the private sector, it is difficult to identify suitable measures of performance in PEs. Further, dependence on public-funded, fixed, short-term budgets creates its own peculiarities and political imperatives. Nonetheless, BM in the public sector has proved to be equally, if not more, successful. Considering the importance of BM in PEs, this entry attempts to review some of the literature with the objective of understanding the major issues in performance improvement and discussing the application of BM in PEs. A framework for BM in PEs has also been outlined. It is hoped that this entry will serve as background work for further research in this area.
