<abstract xmlns="http://www.w3.org/1999/xhtml"><p><bold>Background:</bold> For many years, performance indicators have served as a valid instrument for the evaluation of the public sector quality and efficiency in the majority of developed countries. Such measurements allow internal and external evaluation of the efficiency of the budget and public companies. <bold>Objectives:</bold> The aim of the paper is to determine to what extent public sector entities in the Federation of Bosnia and Herzegovina (FB&amp;H), as a representative of transition countries, measure and report performance indicators. <bold>Methods/Approach:</bold> An electronic survey has been conducted among representatives of cantons in FB&amp;H and public utility companies in the Canton of Sarajevo. The Mann-Whitney test was applied in order to test differences between public sector entities according to their performance. <bold>Results:</bold> The Mann-Whitney non-parametric tests show that the degree of measuring and reporting performance indicators in the public sector in FB&amp;H has a direct impact on the operational results shown in financial statements. <bold>Conclusions:</bold> EU legislation encourages the development of competition between different programs, products and services in the public sector. This paper sheds light on the causes and consequences of the absence of valid performance measurement in the public sector of FB&amp;H and provides possible solutions to overcome identified problems within measurement, reporting and monitoring of performance indicators.</p></abstract>

Background: For many years, performance indicators have served as a valid instrument for the evaluation of the public sector quality and efficiency in the majority of developed countries. Such measurements allow internal and external evaluation of the efficiency of the budget and public companies. Objectives: The aim of the paper is to determine to what extent public sector entities in the Federation of Bosnia and Herzegovina (FB&H), as a representative of transition countries, measure and report performance indicators. Methods/Approach: An electronic survey has been conducted among representatives of cantons in FB&H and public utility companies in the Canton of Sarajevo. The Mann-Whitney test was applied in order to test differences between public sector entities according to their performance. Results: The Mann-Whitney non-parametric tests show that the degree of measuring and reporting performance indicators in the public sector in FB&H has a direct impact on the operational results shown in financial statements. Conclusions: EU legislation encourages the development of competition between different programs, products and services in the public sector. This paper sheds light on the causes and consequences of the absence of valid performance measurement in the public sector of FB&H and provides possible solutions to overcome identified problems within measurement, reporting and monitoring of performance indicators.

Performance Measurement in Public Sector of Transition Countries

University of Sarajevo, School of Economics and Business, Bosnia and Herzegovina

Business Systems Research Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Performance Measurement in Public Sector of Transition Countries"}

Background: For many years, performance indicators have served as a valid instrument for the evaluation of the public sector quality and efficiency in the...

Performance Measurement in Public Sector of Transition Countries

Publié en ligne: 10 sept. 2014

Pages: 72 - 83

Reçu: 02 juil. 2013

Accepté: 30 sept. 2013

DOI: https://doi.org/10.2478/bsrj-2014-0011

Mots clés
performance measurement, performance indicators, public sector, international public sector accounting standards, performance audit

© 2014 Benina Veledar et. al.

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Performance Measurement in Public Sector of Transition Countries

Publié en ligne: 10 sept. 2014

Pages: 72 - 83

Reçu: 02 juil. 2013

Accepté: 30 sept. 2013

DOI: https://doi.org/10.2478/bsrj-2014-0011

Mots clésperformance measurement, performance indicators, public sector, international public sector accounting standards, performance audit

© 2014 Benina Veledar et. al.

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Mots clés
performance measurement, performance indicators, public sector, international public sector accounting standards, performance audit