Setting Reasonable Performance Targets for Public Service Delivery

Reaching agreement on a reasonable performance target is a challenge, with costs associated with getting it wrong. Attention in the literature has focused on the potential negative effects of gaming or of creaming. However, even if there is no gami...

Full description

Bibliographic Details
Main Authors: Newman, John L., Azevedo, João Pedro
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2013
Subjects:
ID
PDF
WEB
Online Access:http://documents.worldbank.org/curated/en/2013/03/17453225/setting-reasonable-performance-targets-public-service-delivery
http://hdl.handle.net/10986/13178
id okr-10986-13178
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACHIEVEMENT DATA
ACHIEVEMENT SCORES
ACHIEVEMENT TESTS
ADJUSTMENT
ADMINISTRATIVE COSTS
ADULTS
ATTENTION
ATTRIBUTION
AVERAGE EDUCATIONAL LEVEL
BASIC EDUCATION
CALL
CLASSROOMS
COMPETITIVENESS
CONTINUING EDUCATION
CONTINUOUS LEARNING
DECISION MAKING
DEMONSTRATION
ECONOMIC DEVELOPMENT
EDUCATION AUTHORITIES
EDUCATION DATA
EDUCATION QUALITY
EDUCATION SECTOR
EDUCATION STATISTICS
EDUCATION TARGETS
EDUCATIONAL DISPARITIES
EDUCATIONAL MANAGEMENT
EDUCATIONAL SYSTEM
ELEMENTARY EDUCATION
EMPLOYMENT
ENTERPRISE SURVEYS
ENTREPRENEURSHIP
GENDER
GENERAL PUBLIC
ID
ILLITERACY
INCENTIVES FOR TEACHERS
INNOVATION
INTELLIGENCE
INTERFACE
INTERNATIONAL STANDARDS
INTERVENTIONS
JOB OPPORTUNITIES
JOB TRAINING
LEARNING
LEVEL OF ACHIEVEMENT
LEVELS OF EDUCATION
LITERACY
LITERACY LEVELS
LITERATURE
MANAGEMENT SYSTEM
MANAGEMENT SYSTEMS
MANUFACTURING
NUMBER OF STUDENTS
OPEN ACCESS
PAPERS
PDF
PERFORMANCE INDICATOR
PERFORMANCE MEASURE
PRIVATE INVESTMENT
PRIVATE SECTOR
PRODUCTIVITY
PROFICIENCY
QUALITY EDUCATION
QUALITY OF EDUCATION
QUALITY OF LIFE
RATE OF STUDENTS
RESEARCH INSTITUTIONS
RESEARCHERS
RESULTS
SANITATION
SCHOOL DAY
SCHOOL EDUCATION
SCHOOL MANAGEMENT
SCHOOL PARTICIPATION
SCHOOL PERFORMANCE
SCHOOL STUDENTS
SCHOOL SYSTEM
SCHOOLING
SCHOOLS
SECONDARY EDUCATION
SHOW HOW
SOCIAL RESPONSIBILITY
SOFTWARE COMPONENTS
STATE SCHOOLS
STUDENT ACHIEVEMENT
STUDENT PERFORMANCE
SUPERVISION
TARGETS
TEACHER
TEACHER QUALIFICATIONS
TEACHERS
TEACHING
TEACHING METHODS
TEACHING SKILLS
TEST SCORES
TRAINING CENTERS
TRAINING PROGRAMS
TRANSPORT SYSTEM
UNIVERSITIES
UNIVERSITY DEGREES
USERS
USES
WEB
WORKERS
spellingShingle ACHIEVEMENT DATA
ACHIEVEMENT SCORES
ACHIEVEMENT TESTS
ADJUSTMENT
ADMINISTRATIVE COSTS
ADULTS
ATTENTION
ATTRIBUTION
AVERAGE EDUCATIONAL LEVEL
BASIC EDUCATION
CALL
CLASSROOMS
COMPETITIVENESS
CONTINUING EDUCATION
CONTINUOUS LEARNING
DECISION MAKING
DEMONSTRATION
ECONOMIC DEVELOPMENT
EDUCATION AUTHORITIES
EDUCATION DATA
EDUCATION QUALITY
EDUCATION SECTOR
EDUCATION STATISTICS
EDUCATION TARGETS
EDUCATIONAL DISPARITIES
EDUCATIONAL MANAGEMENT
EDUCATIONAL SYSTEM
ELEMENTARY EDUCATION
EMPLOYMENT
ENTERPRISE SURVEYS
ENTREPRENEURSHIP
GENDER
GENERAL PUBLIC
ID
ILLITERACY
INCENTIVES FOR TEACHERS
INNOVATION
INTELLIGENCE
INTERFACE
INTERNATIONAL STANDARDS
INTERVENTIONS
JOB OPPORTUNITIES
JOB TRAINING
LEARNING
LEVEL OF ACHIEVEMENT
LEVELS OF EDUCATION
LITERACY
LITERACY LEVELS
LITERATURE
MANAGEMENT SYSTEM
MANAGEMENT SYSTEMS
MANUFACTURING
NUMBER OF STUDENTS
OPEN ACCESS
PAPERS
PDF
PERFORMANCE INDICATOR
PERFORMANCE MEASURE
PRIVATE INVESTMENT
PRIVATE SECTOR
PRODUCTIVITY
PROFICIENCY
QUALITY EDUCATION
QUALITY OF EDUCATION
QUALITY OF LIFE
RATE OF STUDENTS
RESEARCH INSTITUTIONS
RESEARCHERS
RESULTS
SANITATION
SCHOOL DAY
SCHOOL EDUCATION
SCHOOL MANAGEMENT
SCHOOL PARTICIPATION
SCHOOL PERFORMANCE
SCHOOL STUDENTS
SCHOOL SYSTEM
SCHOOLING
SCHOOLS
SECONDARY EDUCATION
SHOW HOW
SOCIAL RESPONSIBILITY
SOFTWARE COMPONENTS
STATE SCHOOLS
STUDENT ACHIEVEMENT
STUDENT PERFORMANCE
SUPERVISION
TARGETS
TEACHER
TEACHER QUALIFICATIONS
TEACHERS
TEACHING
TEACHING METHODS
TEACHING SKILLS
TEST SCORES
TRAINING CENTERS
TRAINING PROGRAMS
TRANSPORT SYSTEM
UNIVERSITIES
UNIVERSITY DEGREES
USERS
USES
WEB
WORKERS
Newman, John L.
Azevedo, João Pedro
Setting Reasonable Performance Targets for Public Service Delivery
geographic_facet Latin America & Caribbean
Brazil
relation Policy Research Working Paper;No. 6385
description Reaching agreement on a reasonable performance target is a challenge, with costs associated with getting it wrong. Attention in the literature has focused on the potential negative effects of gaming or of creaming. However, even if there is no gaming or creaming taking place, there can still be costs associated with setting a level of the performance target that is either too low or too high. On the one hand, if the negotiated performance target is too low, there is a strong risk that the target would be met without any change in behavior or performance from what would have been realized without a performance management system. In that case, there would be no benefit -- only the cost of covering the administrative costs associated with developing the monitoring and management systems. On the other hand, if the negotiated performance target is too high, there could also be significant costs. The exact nature of the costs depends on which one of two unattractive options the principal chooses to follow once it becomes apparent that the performance targets were set unrealistically high. If the principal chooses simply to waive any possible repercussions for the agents for not meeting the performance targets, this can undermine the credibility of the system. If the principal insists on holding agents to meeting the performance targets -- no matter how unrealistic they were -- this can breed resentment and adversely affect future productivity. This paper considers some approaches to target setting that have been used in the literature and proposes an approach based on the use of quantile regressions to construct a Characteristic Adjusted Performance distribution of performance to guide the selection of targets. The paper then presents two concrete examples of applications of this approach related to the setting of targets on School Test Scores and Improvement in Homicide rates in Police Districts in the State of Minas Gerais, Brazil.
format Publications & Research :: Policy Research Working Paper
author Newman, John L.
Azevedo, João Pedro
author_facet Newman, John L.
Azevedo, João Pedro
author_sort Newman, John L.
title Setting Reasonable Performance Targets for Public Service Delivery
title_short Setting Reasonable Performance Targets for Public Service Delivery
title_full Setting Reasonable Performance Targets for Public Service Delivery
title_fullStr Setting Reasonable Performance Targets for Public Service Delivery
title_full_unstemmed Setting Reasonable Performance Targets for Public Service Delivery
title_sort setting reasonable performance targets for public service delivery
publisher World Bank, Washington, DC
publishDate 2013
url http://documents.worldbank.org/curated/en/2013/03/17453225/setting-reasonable-performance-targets-public-service-delivery
http://hdl.handle.net/10986/13178
_version_ 1764422899325730816
spelling okr-10986-131782021-04-23T14:03:07Z Setting Reasonable Performance Targets for Public Service Delivery Newman, John L. Azevedo, João Pedro ACHIEVEMENT DATA ACHIEVEMENT SCORES ACHIEVEMENT TESTS ADJUSTMENT ADMINISTRATIVE COSTS ADULTS ATTENTION ATTRIBUTION AVERAGE EDUCATIONAL LEVEL BASIC EDUCATION CALL CLASSROOMS COMPETITIVENESS CONTINUING EDUCATION CONTINUOUS LEARNING DECISION MAKING DEMONSTRATION ECONOMIC DEVELOPMENT EDUCATION AUTHORITIES EDUCATION DATA EDUCATION QUALITY EDUCATION SECTOR EDUCATION STATISTICS EDUCATION TARGETS EDUCATIONAL DISPARITIES EDUCATIONAL MANAGEMENT EDUCATIONAL SYSTEM ELEMENTARY EDUCATION EMPLOYMENT ENTERPRISE SURVEYS ENTREPRENEURSHIP GENDER GENERAL PUBLIC ID ILLITERACY INCENTIVES FOR TEACHERS INNOVATION INTELLIGENCE INTERFACE INTERNATIONAL STANDARDS INTERVENTIONS JOB OPPORTUNITIES JOB TRAINING LEARNING LEVEL OF ACHIEVEMENT LEVELS OF EDUCATION LITERACY LITERACY LEVELS LITERATURE MANAGEMENT SYSTEM MANAGEMENT SYSTEMS MANUFACTURING NUMBER OF STUDENTS OPEN ACCESS PAPERS PDF PERFORMANCE INDICATOR PERFORMANCE MEASURE PRIVATE INVESTMENT PRIVATE SECTOR PRODUCTIVITY PROFICIENCY QUALITY EDUCATION QUALITY OF EDUCATION QUALITY OF LIFE RATE OF STUDENTS RESEARCH INSTITUTIONS RESEARCHERS RESULTS SANITATION SCHOOL DAY SCHOOL EDUCATION SCHOOL MANAGEMENT SCHOOL PARTICIPATION SCHOOL PERFORMANCE SCHOOL STUDENTS SCHOOL SYSTEM SCHOOLING SCHOOLS SECONDARY EDUCATION SHOW HOW SOCIAL RESPONSIBILITY SOFTWARE COMPONENTS STATE SCHOOLS STUDENT ACHIEVEMENT STUDENT PERFORMANCE SUPERVISION TARGETS TEACHER TEACHER QUALIFICATIONS TEACHERS TEACHING TEACHING METHODS TEACHING SKILLS TEST SCORES TRAINING CENTERS TRAINING PROGRAMS TRANSPORT SYSTEM UNIVERSITIES UNIVERSITY DEGREES USERS USES WEB WORKERS Reaching agreement on a reasonable performance target is a challenge, with costs associated with getting it wrong. Attention in the literature has focused on the potential negative effects of gaming or of creaming. However, even if there is no gaming or creaming taking place, there can still be costs associated with setting a level of the performance target that is either too low or too high. On the one hand, if the negotiated performance target is too low, there is a strong risk that the target would be met without any change in behavior or performance from what would have been realized without a performance management system. In that case, there would be no benefit -- only the cost of covering the administrative costs associated with developing the monitoring and management systems. On the other hand, if the negotiated performance target is too high, there could also be significant costs. The exact nature of the costs depends on which one of two unattractive options the principal chooses to follow once it becomes apparent that the performance targets were set unrealistically high. If the principal chooses simply to waive any possible repercussions for the agents for not meeting the performance targets, this can undermine the credibility of the system. If the principal insists on holding agents to meeting the performance targets -- no matter how unrealistic they were -- this can breed resentment and adversely affect future productivity. This paper considers some approaches to target setting that have been used in the literature and proposes an approach based on the use of quantile regressions to construct a Characteristic Adjusted Performance distribution of performance to guide the selection of targets. The paper then presents two concrete examples of applications of this approach related to the setting of targets on School Test Scores and Improvement in Homicide rates in Police Districts in the State of Minas Gerais, Brazil. 2013-04-12T16:43:08Z 2013-04-12T16:43:08Z 2013-03 http://documents.worldbank.org/curated/en/2013/03/17453225/setting-reasonable-performance-targets-public-service-delivery http://hdl.handle.net/10986/13178 English en_US Policy Research Working Paper;No. 6385 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Brazil