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Carolyn J. Heinrich, Do Government Bureaucrats Make Effective Use of Performance Management Information?, Journal of Public Administration Research and Theory, Volume 9, Issue 3, July 1999, Pages 363–394, https://doi.org/10.1093/oxfordjournals.jpart.a024415
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Abstract
This research on a local job-training agency's use of performance-based contracting addresses a central question: Do JTPA program administrators use the performance standards system effectively to motivate behavior on the part of contractors, behavior that enhances agency performance and is consistent with program goals? I find some evidence that this agency uses information obtained from its performance-based contracting system to make resource allocation decisions. Service providers' performance relative to cost standards emerges as the most important criteria in these decisions. I conclude, however, that the performance standards system is not well designed, as performance measures are not strongly correlated with program goals and the predominance of cost-per-placement considerations has negative implications for service quality.