ABSTRACT
The positive effects of performance measurement were discussed in Chapter 1. Performance measurement promotes transparency and innovation, it is an incentive to be productive, may help to de-bureaucratize an organization, promotes learning and may enhance an organization’s intelligence position. There is another picture, however, apart from this beneficial effect of performance measurement: performance measurement creates a large number of perverse effects. I shall outline these effects in this chapter (Sections 2-8) and I give an initial explanation for them (Section 9). In Chapter 3, I discuss the dynamics of performance measurement: what effects will manifest themselves in the long term?
