Does performance management system implementation reduce fragmentation in an Indonesian local government?

Abstract

The paper examines whether Performance Management System (PMS) implementation in an Indonesian local government has reduced fragmentation in its administration. A qualitative case study is used, with data collected through in-depth interviews with the key actors, and also focus group discussions. The case site is a city that is implementing PMS while, at the same time, changing its mission from business-oriented growth to be focussed on outcome measures of village empowerment. The findings show that a PMS system was not fully implemented in the organisation. Despite this imperfect implementation, shared goals concerning developmental outcomes have overcome the issue of mission fragmentation, as they focus managers’ attention on organisational and national objectives. This has also led to better cooperation between units and departments/agencies within the city and with the village community. This study offers insights pertaining to PMS implementation and its influence on public administration fragmentation in a unique context.