Is Performance Management Reform Living up to its Expectations? An Analysis of Public Management Reform in China’s Guangdong Province

Abstract

Performance management has a long tradition in China, but questions remain as to its effectiveness. This article presents the results of a comparative time-series analysis that assessed the impact of performance management reform in the province of Guangdong, China, on two outcomes of interest—improved citizen satisfaction with government performance and improved government financial performance. The study used data survey data on citizen satisfaction from the Government Performance Evaluation Center in China and financial data from the statistical yearbook and the fiscal yearbook from 2010 to 2014. This coincides with two periods of development of performance management in China: (1) before 2012, when efforts focused on economic development followed by an emphasis on citizen-oriented and sustainable government services; and (2) between 2012 and 2014, when pilot programs of performance management systems were implemented. A difference-in-differences test comparing the outcome variables before and after the pilot project in Guangdong suggests that overall performance management reform had a positive impact on citizen satisfaction but it had mixed results on financial performance in the county-level jurisdictions that implemented the pilot program.

Keywords:

• Chinese local government
• citizen satisfaction
• financial performance
• performance management
• performance measurement

Notes

1 In China, county-level jurisdictions (including counties, districts and county-level cities) are governed by prefecture-level cities.

2 The Chinese government is divided into five administrative levels–central government, provincial government, prefecture-level government, county-level government, and township-level government (Ma, 2017).

3 Wang Yang, who was Provincial Party Committee Secretary, proposed and explained the concept of “Happiness in Guangdong” at the 8th plenary session of the 10th Provincial Party Committee of Guangdong Province in January 2011.

4 CCDI: China Will Increase the Intensity of Performance Management Pilot Work, From the official website of the central government: http://www.gov.cn/jrzg/2012-08/12/content_2202567.htm

5 Seminar on Government Performance Management. From the official website of the central government: http://www.gov.cn/gzdt/2011-12/07/content_2013937.htm

6 Official documents: Notification on Implementing Pilot Work of Government Performance Management in Yunfu (No. 42 of 2012); Interim Provisions for Performance Management of Foshan (No. 4 of 2013).

7 Official document: Notification on Implementing Pilot Work of Government Performance Management in Guangdong Province (No. 7 of 2012).

8 Results of the National Government Debt Audit (No. 35 of 2011), National Audit Office.

9 Li Keqiang, Premier of the State Council, stated in a report that a policy of large-scale reduction of taxes and fees will be implemented. The target in 2019 was to reduce corporate tax burden and social insurance contributions by nearly 2 trillion yuan. The central government also expected to cut general expenditures by more than 5%, and reduce spending on official overseas visits, official vehicles, and official hospitality by another 3%.

10 The samples included 100 respondents for populations under 300,000; 150 for populations of 300,000–500,000; 200 for populations of 500,000–800,000; 250 for populations of 800,000–1 million; 300 for populations of 1–1.5 million; 400 for populations of 1.5–2 million; and 500 for populations higher than 3 million (Ma, 2016).

11 Samples of telephone interviews accounted for less than 10% of the total sample size. Results were tested and found not significantly different from the respondents interviewed in person.

Additional information

Notes on contributors

Xing Zhang

Xing Zhang, Ph.D., holds a postdoctoral position at the School of Public Management, South China University of Technology. His research interests include public performance management, evidence-based management and financial policy of education.

Michele Tantardini

Michele Tantardini, Ph.D., is an assistant professor of public administration in the School of Public Affairs at Penn State Harrisburg. His research interests are in the broad areas of public and performance management, focusing on performance information use, organizational social capital, and public service motivation.

Younhee Kim

Younhee Kim, Ph.D., is an associate professor of public administration in the School of Public Affairs at Penn State Harrisburg. Her research interests are in the broad areas of public and performance management, focusing on performance measurement, public entrepreneurship, digital governance, data and information, and citizen participation.

Patria de Lancer Julnes

Patria de Lancer Julnes, Ph.D., is associate dean of academic programs and professor at the Marxe School of Public and International Affairs at Baruch College, CUNY. Her research interests include performance measurement, government accountability, innovations in government, and health disparities. She was recently elected fellow of the National Academy of Public Administration.