Performance Measurement Framework

CHAPTER-5

PERFORMANCE MEASUREMENT
FRAMEWORK
Developing a performance measurement system is an important phase in the municipal
organisation. It involves the development of a framework within which performance
measurement process will happen, which may be called a performance measurement
framework (PMF). The PMF is an organised process for gathering information to determine
how well the policy, programme and activities are established to meet the needs of the
stakeholders and achieve the goals. The PMF of the municipal organisation is based on the
measurement of results against three dimensions of service delivery system, namely,
efficiency of local services, the value of the input, output and impact of the results and the
quality of services on the acceptable level of performance. Accountability, transparency,
public oriented and integrated service delivery system is the key elements of performance
measurement system. The concept and objectives of the PMF applicable to the municipal
organisations have been discussed in this chapter. The steps and different phases of PMF have
also been dealt out in this chapter. This chapter also highlights on the different approaches
like, employees PMF, monitoring and reporting framework, planning and budgeting
framework.
INTRODUCTION
As discussed in the earlier chapter, performance measurement is an essential tool in
public sector organisations today like business organisations. The activities and
functions of the public sector organisations are rapidly changing day by day. New acts,
rules and regulations are introducing time to time by the appropriate regulatory
authorities for the development these organisations. The public sector organisations
are also facing tough competition and strong challenges towards performing their
activities. These changing scenarios sometimes make it difficult to measure the
performance of all the sections of this organisation. Therefore, for the benefit of the
stakeholders the systems of measuring the performance of these organisations are
required to be modified occasionally. In this aspect, for the implementation of new
systems in measuring the performance, the internal set up such as administrative
control and structure of the organisation may need to be altered. The essence of

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performance measurement comes to exist, then for the arrangement of requirements,

expectation, planning of performance, monitoring of performances and reviewing the
performance. An appropriate framework can facilitate the organisation set up a
complete effective structure. Therefore a suitable framework has to be developed
integrating performance and productivity by gathering information quickly and
enacting changes. A comprehensive performance measurement framework assists the
management to assess the overall performance of an organisation. It may be designed
by using the performance tools such as strategy, human resource, review and
standard etc. There are some other essential factors such as, evaluating the past
performance and analyses of the result which are closely associated with the
performance measurement framework.

Regarding the use of performance measurement framework (PMF) in an organisation,

Jones (2009) suggests that the PMF is formed to provide a consistent, transparent and
logical structure for identifying, aligning and linking computarised outcomes and
monitoring. In general sense performance measurement framework may be defined
as a complete structural platform on which organisations can set up a common
effective goal and can develop a minimum standard to achieve the goal. In the
municipal organisation the PMF concretes on the standard operational activities of the
organisation, which can successfully perform within the given setup. The performance
measurement framework of the municipal organisation may be analysed from three
aspects: from accountability aspect, from service aspect and from the view point of
the processes.

Accountability aspect

The Performance measurement framework of the municipal organisation can be

treated as an accountability framework for public service delivery process, such as
inputs, outputs and results. It deals with community services which focus on the effort
across the specified public service zone in delivering services and appropriate results.
It identifies the strategic points at which performance is measured and reported it to
the appropriate place in every level of input, output and process. It creates a true
culture of visibility, acceptability, viability, accountability and performance

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enhancement by its innovative features.

Services delivery aspect

Performance measurement framework is a systematic approach to the service of

performance, by which performance is managed, monitored, reviewed and reported
at all the levels in the organisation. It brings together the strategies, plan and policies
to deliver the quality of service. It is for all concern from the higher level of authorities
to the stakeholders to look at the individual performance as well as overall
performances of the organisation. It helps to draw a comparison between present
performances with the pervious performance of the individual as well as organisation.

From the viewpoint of processes

Performance measurement is a comprehensive process in which everyone from the

top level authority to employees, officers to supervisors, advisors to stakeholders, and
suppliers to investors are performing in their respective area of performance in the
municipal organisation. It can be used as an inclusive and integrated method of setting
strategic plans in efficiency measurement of the municipalities.

NATURE OF PERFORMANCE MEASUREMENT FRAMEWORK

In case of public sector organisations like municipalities, performance measurement

framework has defined exactly the structure of different service sectors, on the basis
of which the municipal organisation promises to provide civic services in the local
area. The PMF focuses on the formulation of the line of action of the all the
departments of the municipality and send it to the next higher stage. All the statistical
evidence of actual facts is identified and delivered it to the appropriate place. These
documents are used to determine the progress towards specific defined
organisational objectives. A good PMF of the municipal organisation is generally
formed to focus on the stakeholders and is used to measure the right things in the
right way. The characteristic features of the performance measurement framework of
the municipal organisation may be summarised in the following ways:

1. A PMF must be meaningful, which is easy to understand, unambiguous and will

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 Performance Measurement Framework

be formed for a meaningful structure.

2. There must have a significant planning, good coordination and a sound

implementation strategy within the framework.

3. In the municipality, it acts within the jurisdiction of the organisation and

manage by a group of people who engage with the different municipal
activities and who are appointed to act for the purpose of measuring the
performance of the organisation.

4. It is the integration of data and information on the individual activity or group

of activities on every functional area of the organisation. All the data and
information so collected from various departments for the purpose of applying
it in the performance measurement process may be used for performance
analysis within the normal framework.

5. There must be included a good leadership and commitment in the framework

based on the top level data analysis process.

6. It is very simple to measure and easy to evaluate the developmental activities

which help to drive improvement.

7. It is absolutely attached to the target of the organisation and worked towards

achieving the goal with the help of the key performance indicators such as
income, expenses and efficiency of the municipality.

8. It deals with the appropriate employee improvement system that control over
their activities throughout the performance of the computarisede. The
continuous improvement policies, computarisede and procedure within the
performance measurement system are the key elements of a performance
measurement framework.

OBJECTIVES OF PERFORMANCE MEASUREMENT FRAMEWORK

The primary object behind a performance measurement framework should be to get
optimum result. It is aimed at making the public sector organisations as a better
performer. The output comes out through a system formed in a PMF, which builds a
bridge between the administrators and others. It sets up a proper system of servicing

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activities from the bottom level to the top of the organisation. In the municipalities
the quality of service delivery and the performance of the administrators may suffer
without developing a performance measurement framework in the organisation. It is a
continuous improvement process to improve the service delivery system in the
municipality comparatively at a lower cost. Regarding the purpose of introducing PMF
in the municipal organisation, Hans de Bruijn (2005) observed that performance
measurement leads to transparent and can thus play a role in the accountability
process. A municipal organisation can make clear what services it provides and - by
means of an input-output analysis-what costs are involved. The aims and objects of
the performance measurement framework may be summarised below;

1. Promote culture: The main objectives of PMF are to promote the healthy
practices in the performance measurement framework among individuals,
political representative, officials and the administrators.

2. Provide high quality of services and policy: The next objective is to achieve in
the high quality service capability just in time and to enhance the quality of
service rendered in service jurisdiction so that the fixed assets can be properly
utilised. As a result the quality of policy and decision making in the managerial
level would be improved.

3. Introduce new ideas: Through introducing the new ideas for generating
resources, municipalities can make a plan for the optimum utilisation of the
available resources. Again to implement the new methods and system in the
municipal organisations, the performance information is to be collected,
organised, analysed which will be reflected in the performance report. It also
helps to demonstrate how the system will operate or how the organisations
are producing results or how the resources are utilised.

4. Optimum utilisation of manpower: The aims of PMF are to appropriate

selection of person and optimum utilisation of manpower to deliver services
on time. Again, it assists to identify the roles and responsibilities an individual
starting from lower level employees to administrators.

5. Build a sweet relationship: PMF develops an outstanding bonding between

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the role players from lower level, to top level including the elected
administrative officials of the municipalities.

6. Create an integrated planning process: The next stage is to manage from the
planning stage to the final stage of performance and reporting. Again to
develop an integrated planning process in the municipalities, it is required to
go through the procedure of the system linked to the organisational activities.

7. Increase the accountability: Another object of PMF is to determine the lines of

accountability for performance for reporting to develop the organisation in an
economical, effective, efficient manner.

8. Increase the employees' performance: Again, the aim of PMF is to compile the
results as per the requirements of the act and to prepare a draft report of the
process relating to employee performance measurement.

9. Improve the overall performance: lastly the purpose of PMF is to take

practical steps to improve the organisational performance by motivating the
role players in developing better ways to achieve the goal.

STEPS OF PERFORMANCE MEASUREMENT FRAMEWORK

A performance measurement framework is developed mainly for the purpose of
developing better service delivery mechanism in the municipal services. The municipal
service delivery system includes fund generation, fund allocation, perfect citizen
charter, proper utilisation of fund, creation of man power, develop new ideas, etc.
Strategic performance measurement monitors the implementation and effectiveness
of an organisation’s strategy which determines the organisation's operational
efficiency. Many organisations now actively seek to differentiate themselves from
their competitions in terms of service, flexibility, customization, innovation and rapid
response (Andy Neely, 2001). In the municipal organisation the PMF serves as guide to
enable the correct steps to be followed. So for designing, testing and implementing a
suitable performance measurement framework in the municipalities, distinctive steps
may be personalized to meet the organisation’s particular requirements. There are
main four key steps of a good performance measurement framework;

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 Performance Measurement Framework

Step-1: Conversion of the organisation into desire standard of performance:

Performance measurement is a continuous process of implementing the system to get
desired (budgeted) result as determined at the beginning of the year. So for
conversion into desire standard of performance, following points are taken into
consideration:

I. Set up overall goals and objectives of the organisation.

II. Examine the existing system of documentation relating to measure.

III. Identify dimensions of performance measurement and possible sources of

collecting data.

IV. Schedule the information and resources required to support the system.

V. Determine the methods of evaluating performance.

VI. Define roles and responsibilities of the role players such as administration,
officials, employees and citizens.

VII. Confirm desire target and set up standard performance at the end of the PMF
process.

Step-2: Compare the desired performance with the actual achievable standard: The
second step of the performance measurement framework is to compare the desired
standard of performance with the actual outcomes. The following aspects should be
taken into consideration relating to this step:

I. Develop the structure of desire target of the individual and group of

performers in the organisational overall performance;

II. Develop the statement of actual performance;

III. Identify the strategy taken as a course of action for implementation of the
methods identified in step one;

IV. Identifying the reporting of the existing achievable standard;

V. Identify the further sources and introduction of data thereon;

VI. Brief the result of the higher level of frameworks;

Step-3: Identification of the gap: The gap between current and desired performance
now has to be measured in this step. Some of the metrics already exist and their

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current performance data must be collected, along with the data for new metrics.
Once all the data has been collected to identify the current performance, the target
level of performance for the short term, medium and long term must be decided. For
this step the following features are to be taken into consideration:

I. Identify the causes of the gap between the actual and budget result;

II. Ensure data and information collection accuracy and ensure that the same has
been based on performance analysis;

III. Identify the significant level of difference in any level of measuring

organisational performance;

IV. Ensure that the measurement have been made for the right things at the right
time;

V. Preparation of report, any gap of budgeted and actual results are identified
and sent it in the appropriate place of interest.

Step-4: Initiation of taking action for improvement of the result: Performance

measurement framework is a system meant for success. In the last step of the process
of performance measurement framework and after making the review of the result, it
is required to take necessary actions on the outcomes of the performance results. This
step includes the following:

I. Identification of end outcomes

II. Review and analysis the result

III. Determination of poor area

IV. Action is taken for improvement the result

V. Rectification of mistake, if any

PHASES OF PERFORMANCE MEASUREMENT FRAMEWORK

It is observed from the above discussion that performance measurement framework

does not depend on a particular factor. It can also be mentioned that the performance
measurement framework is not limited by a single issue or does not exist in isolation.
PMF is the combination of planning, performing, evaluating and revising the work
plan. There is a cyclical layout in which the framework shows a process of finishing the

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activities. In the cyclical framework, there are four sets of measurement activities,
acting for improving the quality of services. These sets of performance measurement
activities are called phases of a performance measurement framework. These phases
are Plan phase, Develop phase, Check phase and Review phase (figure-5.1). These
operational components are discussed below;

Figure- 5.1

PHASES OF PERFORMANCE MEASUREMENT FRAMEWORK

PLAN

PERFORMANCE
MANAGEMENT DEVELOP
REVIEW
FRAMEWORK
CYCLE

CHECK

Source: Developed by the researcher

Plan Phase
The first phase of a performance measurement framework is planning phase. In the
planning phase performance objectives and standards are determined and
communicate it to the rest of the organisation. In a general sense in this phase, future
performance requirement of target, action and behavior are identified. Relationship
between strategic objectives such as municipal planning, developing strategic and
operational objectives such as care full handling of funds are developed in this phase
where short term, middle term and long term objectives are identified. Although the
municipal administration is the main authority on developing planning, but the
individual, group who is involved with the municipality is also the part of the planning
process. Sometimes plans also challenged the individual which is also achievable one.

In developing the plan phase in the field of municipal activities, focus is given on the

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 Performance Measurement Framework

target about: What to do? Why to do? When to do? How to do? The outcomes of
these intentions are to set of strategic objectives which describe how the municipal
resources are being utilised and allocated to the different service sectors for the
setting future strategy, where commitment is an important element of the entire
planning period. "Unless commitment is made, there are only problems and hope, but
not plan" (Drucker, P., 1958).

Develop Phase

The second phase of the performance measurement cycle is the development of stage
one where individuals as well as organisational performances are identified. Priority
has been given to develop the precedence of planning activities. This is perhaps the
most important phase of the performance measurement framework, where actual
base works such as services in the local area or allocation of funds of the municipality
are started. This is the phase where action is taken to achieve the desired objectives at
the targeted performance level. A system is used to collect, prioritise, select, authorise
and manage strategic, operational plan for improving the objectives. This phase
focuses on the development of the skill and knowledge according to potentiality of
the individual and team. Corrective action may be taken where progress is not as up
to the standard desired level. In this stage few opportunities such as identification of
the area to be developed, technical improvement, and support mechanism may be
created and support is given as required for meeting the needs. While maintaining the
desired level of performance this phase ensure an effective balance between the
planning of the administration and the executors of operational activities in the
municipal area. An important aspect of developing phase is the allocation of resources
and authorisation of expenditure properly.

Check phase

Checking the performance of the individual, their group and organisation are analysed
in this phase. This is a place where strength and weaknesses are judged and
satisfaction comes in case of doing something well. This phase also allows and
encourages the people involved in the activities to do better in future. Following
points are to be kept in mind for this phase:

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 Performance Measurement Framework

I. Check the plan and budgeted target which is initially taken for consideration by
the Board of Councilors of the municipalities;
II. Check the way by which the administration and employees are performed
considering the factors such as rules and regulations, acts thereon;
III. Check the needs of the citizen and the requirements of the employees and
executive agencies of the municipalities;
IV. Check the amount of work done and the problem behind the non execution of
the part of the work;
V. Regular checking of performance at all levels of municipal work, whether that
is preferably best or not.

Review phase

This is the final stage of performance measurement frameworks where evaluation is

made on the basis of performance. Review is the process of setting the activities from
the beginning of the planning stage till the end of the result. In this process a standard
operational and strategic policy is established for future. All the problems related to
the performance of the organisation within the developmental activities are analysed
here. Ultimate decisions are taken by the authority on the basis of the results which
will give the future benefit of the municipal organisation. This phase always looks at
the results, which help to determine whether the proper, effective decisions have
been taken in every step or not. It helps to build a more effective performance
measurement process. Regular performance review keeps a constant touch with what
is happening and what to do.

Success and failure may be determined through the interpretation of these four
phases of a performance measurement framework. Shortcomings in implementing
various aspects of these phases lead to the strategy achievement failures identified in
these phases. These phases identify the practice and methods that are followed to
manage performance.

EXISTING FLOW CHART OF WORK EXECUTION IN THE MUNICIPALITIES OF WEST

BENGAL

The West Bengal Municipal Act, 2006 describes the municipal authorities such as (a)

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 Performance Measurement Framework

the Municipality (b) the Chairman in Council and (c) the Chairman, the various
committees such as Borough Committee, Ward Committee and Standing Committee
other committees like the Heritage conservation committee and special committee of
the municipalities. This Act also explains the constitution of the joint committee, self-
help group and community development society and poverty alleviation cell in the
municipal organisation (Detailed have been discussed in Chapter 2).

Section 14 of the said act also describes the constitution of Board of Councilors. Under
this section, the councilors elected in a general election or by election of a
municipality and members nominated by the government under clause (b) of
subsection (1) of section 13 shall constitute the board of councilors for a period of five
years.

Figure- 5.2
FLOW CHART OF WORK EXECUTION IN WEST BENGAL MUNICIPALITIES

MUNICIPAL MUNICIPAL
WARD NO. WARD NO.
A B

SELF
LOCAL PEOPLES REALIZATION LOCAL PEOPLES
OPENION / DEMAND OPENION / DEMAND

INVOLVEMENT
WARD COMMITTEE OF COMMITTEE WARD COMMITTEE
MEETING MEMBERS, MEETING
MUNICIPAL OFFICERS,
WARD COUNCILOR

OUT COMES FEEDBACK OUT COMES

(PROPOSALS) (PROPOSALS)
CHAIRMAN IN
COUNCIL

BOARD OF COUNCIL
OUT COMES (PROPOSALS)

EXICUTIONS
&
FINAL RESULTS
MONITORING TEAM FOR IMPLEMENTATION

ADMINISTRATIVE FINANCE ENGINEERING OTHER

DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENTS

FLOWCHART OF WORK EXICUTION

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 Performance Measurement Framework

In a newly constituted municipal area, all the powers or functions, vested with the
municipal authorities under this act or under any other law. Considering the Act, a
flow chart for the work executed applicable to the municipal organisation in West
Bengal has tried to develop in figure 5.2. The figure shows that the initial
requirements come from the local people and the demand is placed in the ward
committee meeting. This demand is then placed in chairman-in council meeting,
which is ultimately judged, passed and sanctioned by the BOC. The approval of the
BOC then forwarded to the official and the staffs of the municipalities for
implementation through a monitoring team.

APPROACHES OF PERFORMANCE MEASUREMENT FRAMEWORK

The performance measurement framework ensures to assess, measure and evaluate

the organisational performance from different critical perspectives, based on its
existing strategic planning and agreed with the organisational mission and values. It is
a systematic process of work planning, setting exceptions, continuously monitoring,
skill developing, utilising of capacity building and periodically renew of performance.
The performance measurement framework is also the representation of the rating,
recording, recognising and rewarding the good performance of the municipal
employees. It is a decision making process which provides essential information about
the status of the strategic goal objectives and performance. The performance
measurement framework is the implementation of performance measurement
computarised in the overall process of running the various municipal activities.
Municipal administration prepares the annual report with the help of municipal
officers by using the performance tools used for the performance measurement. The
different approaches of the PMF applicable to the municipal organisation are briefly
discussed below;

1. FRAMEWORK OF PLANNING AND BUDGETTING

Planning and Budgeting are essential tools of managerial control which has also
played an important role in the municipal organisation to measure the overall
organisational performance. The performance plan consists of developing the
objectives of each functional area of the municipality. A performance standard will be

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 Performance Measurement Framework

developed for implementing the organisation's strategy and assigning individual

accountability for results. Planning enables the organisation to anticipate the fund
allocation in various projects, based on previous study and future prediction.
Performance budgets use a statement of mission, goals and objectives to explain why
the money is being spent. Budgeting consists of identifying, prioritizing, acquiring and
allocating the resources needed to carry out the plan. Performance budgeting consists
of three elements, namely, the result, the strategy and the activity. Both planning and
budgeting is the path of allocating resources to the developmental activities to
achieve specific objectives based on programme, goals and results. Clearly defined
objectives provide the means to delegate responsibility and accountability to those
who will do the work. There are mainly five phases of performance planning and
budgeting namely, the deliberate planning strategy based on local demand for the
coming year, prepared by the appropriate officers, sanction of the planned budget by
the BOC, implementation of the budget and finally assessing the performance by the
municipal authority on the basis of the report placed by the monitoring team.

Figure-5.3

PLANNING AND BUDGETING FRAMEWORK

PLANNING
PERFORMANCE (BASED ON NEED)
EVALUATING
(BY PROPER
AUTHORITY)

ASSESSING THE DEFINE PLANNING,

PERFORMANCE DEVELOPING
& REVISION OF PLANNING

REVISE TARGETS
& PLANNING
& BUDGET
WORK EXECUTION DEVELOPING
BUDGETING PREPARING
BUDGET (BY APPROPREATE
ON PRIORITY BASIS AUTHORITY)

SANCTION THE DRAFT

BUDGET FOR
EXECUTION
BUDGET
IMPLIMENTING
(BY MONITORING
STAFF)

BUDGET
SANCTIONING
Source: Developed by the researcher (BY BOC)

In the municipalities of West Bengal the board of councilors will prepare plans for the
coming year with the help of planning staff, which is based on a goal setting road map,

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 Performance Measurement Framework

strategy formulation and developing budgets. On the basis of a plan, the experts of
the municipalities, mainly the financial advisers will prepare the budgeted estimate
accompanied by the accounting staff and other officials, so that the time required for
planning, budgeting and performance measurement may be reduced because of
better working planning and greater operational efficiency. This budgeted estimate
will be sanctioned in a Board of councilors meeting, giving stress to form a disciplined
organisation with good coordination among functions and activities. Then the process
of implementing the plan will be started (figure-5.3). Maintained the standard of
performance through combining the product of strategic thinking of planning and
budget schedule, after implementation the performance of the role players that will
be monitored. An appropriate step is to be taken depending on the performance.

2. MONITORING AND REPORTING FRAMEWORK

Figure-5.4

MONITORING AND REPORTING FRAMEWORK

PERFORMANCE
IMPROVEMENT

M CONTINEOUS
IMPROVEMENT SELF
O POLICIES
N AND
I STAKE HOLDERS
TEAM
T REQUIREMENTS
O PERFORMANCE
PUBLIC
R SATISFACTION REPORT
I
N PERFORMANCE
G REFERENCE

Source: Developed by the researcher

Performance measurement is an ongoing process which runs across the organisation

to get desired results through the implementation of the strategic plan in the

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 Performance Measurement Framework

municipalities. A monitoring team formed by the BOC to look after the performance
objectives set out in the planning phase. This framework involves continuous
improvement policy of gathering the data so collected through regular monitoring
from the individual and team activities of the municipalities and timely submission of
reports to the appropriate authority. It is required to monitor how data is collected,
stored, verified and analysed to fulfill the stakeholders’ requirements, so that the
municipal authority can detect poor performance early. Public satisfaction is an
important component of this framework where corrective measures are taken to
modify the plan if necessary and to mention the performance standard. Finally the
performance of the organisation will be reviewed and feedback will be submitted to
the appropriate authority using relevant performance indicators and other measures
comparing correct performance with the past performance. The monitoring and
reporting framework is shown in figure in figure 5.4

3. REVIEW AND EVALUATION FRAMEWORK

Performance review and performance evaluation of the municipal organisation are a

process of assessing its own performance. It is the process to find out whether the
municipality is going in the right way or it is doing the right thing. Municipality sets out
the service area for taking necessary actions to be improved. In this process, the aims
and purpose of each activity of the municipality are to be clarified. It identifies the
problem while performing the activities and also tries to solve the problem which is
deliverable and achievable. This framework challenges, compares, consults and
completes the current level of performance with the others. A model of review and
evaluation framework applicable to municipalities is shown in figure 5.6. This model
shows that the objectives of each department will be identified first and examine the
performance of individual, team, department with relevant document or through
consultation with sub-committees guided by the relevant municipal act and rules. The
following additional factors may be considered while developing the review and
evaluation framework in the municipal organisation.

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 Performance Measurement Framework

Figure-5.5
REVIEW & EVALUATION FRAMEWORK
IDENTIFY EXAMINE

MISSION ROLE MUNICIPAL DEPARTMENT

ORGANIZATIONAL

VISION STANDARDS
ADMINISTRATION SECTION OVERALL
PERFORMANCE
MEASUREMENT

STRATIGIES CAPABILITIES
COMMITTIES INDIVIDUAL
PERFORMANCE PERFORMANCE

GOAL REQUIREMENTS

CHECK EVALUATE

Source: Developed by the researcher

The review and evaluation framework includes the following features;

I. Review to look at whether the current level of performance of the municipal

employees or Group of employees, official, administrator, committees and
department is better than that of the previous performance.

II. Oversee ongoing responsibilities of the evaluation activities and co-ordinate

the individual employee with the monitoring team or higher authority.

III. Receive the results of the performance evaluation and take appropriate steps.

4. ORGANISATIONAL PERFORMANCE MEASUREMENT FRAMEWORK

The Organisational Performance Measurement framework is the result of aggregation

of other performance measurement framework, namely, planning and budgeting,
monitoring and operative, ward committee performance measurement etc. of the
municipalities. Overall activities of the municipalities take into consideration in this
framework. Work planning, progress monitoring, the systematic recording of the

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 Performance Measurement Framework

information, rating of successful achievement and rewarding of good employees of

the municipalities are the main factors of the organisational performance
measurement framework. It is the combination of some useful components like the
context of the municipal structure, content of the rules, acts and guidelines, the
process of taking feedback in consultation with departmental employees, the
improvement of the municipal service rendering activities and outcomes of the
individual, team, departmental performance, which is shown in figure 5.6.

Figure-5.6

ORGANISATIONAL PERFORMANCE DEVELOPMENT FRAMEWORK

PERFORMANCE AGREEMENT

CULTURE
CONTEXT MANAGEMENT STYLE

STRUCTURE

PERFORMANCE PLANNING
PERFORMANCE REVIEW

PROCEDURE

CONTENT GUIDE LINE

DOCUMENTATION

OBJECTIVESETTING

PROCESS FEEDBACK REVIEW

CONSULTING / COACHING

CITIZEN SERVICE

FUNCTION RESPONSIBILITIES

IMPROVEMENT

INDIVIDUAL

COMMITTEE
RESULT ADMINISTRATIVE

ORGANIZATIONAL

ORGANIZATIONAL PERFORMANCE
Source: Developed by the researcher

The following factors should be considered while developing this framework:

I. Develop appropriate communication mechanism to disseminate evaluation

information to establish the performance evaluation, keeping in mind the
objectives of the municipalities and provide better service to the local
community.

II. Develop mechanism to assess whether the performance evaluation process

and information produced continue to be useful for promoting towards the
goal.

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 Performance Measurement Framework

III. Identify sustainable strategy and mechanism to ensure the performance

evaluation process and the accountability and research.

IV. Strategic performance measure monitors the implementation and

effectiveness of an organisation's strategy, determine the gap between actual
and targeted performance and determine the organisation effectiveness and
operational efficiency.

5. ADMINISTRATIVE PERFORMANCE MEASUREMENT FRAMEWORK

The administrative performance measurement framework of municipal organisation is

a system of controlling the public service of the municipality. The entire activities are
managed by the administrators in the dimensions of providing services with regard
the citizen value. Citizen satisfactions fully depend effective on the performance of the
administration. Policy framing project and implementing the decision in every activity
of the municipalities is the key and important factors of this administrative
performance measurement framework. The administrative performance
measurement framework is comprised of four factors namely planning, executing,
monitoring and evaluating the activities of the municipality. Again six sets of activities
are performed within these four factors of the municipal set up (figure 5.7). These six
activities are given below;

I. Firstly, proper set up planning strategies, objectives and target of the

municipalities for collecting, analysing the data, modification of plan if needed
and fixed up a standard to be performed.

II. Secondly, the proper distribution of functions among individuals and group.
The methodology of the work execution, including the amount of data
collected, summarisation of data, analyse the data and building time frame are
to be set out to complete the entire procedure till to complete the functions.
Frame out a standard under the control of the ward councilors.

III. Thirdly, proper allocations of resources to the different wards of the

municipality towards performing the functions and maintaining the
responsibilities to achieve the desired success.

IV. Fourthly, effectively analysing, regular monitoring the activities, appraising

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individuals and teams, identify achievements, organising training schedule on

need basis and reporting the results to the appropriate authorities.

V. Fifthly, taking necessary action and corrective measures to overcome the

problem if arises. Action taken for improvements where performance
standards have not been achieved. Crete a best practice of competition at all
levels of employees to present the municipality in most desire levels.

VI. Finally, it is required to introduce the reviewing, rewarding and penalizing

system in the municipalities. Rewarding is for providing better services to the
local citizen, the first generation of revenue fund, optimum utilisation of
resources, utilisation of capital fund within the time limit. Penalizing is for
non-utilisation of capital grant within the plan period, the illegal appointment
of an employee to avoid the payment of salary of un-sanctioned employees of
the municipalities from own fund.

Figure-5.7
ADMINISTRATIVE PERFORMANCE MEASUREMENT
FRAMEWORK

PLANNING

PERFORMANCE
SETTING

INDIVIDUAL
PERFORMANCE GROUP
EVALUATING REVIEW ADMINISTRATION PLANNING
EXECUTING

MANAGING
PERFORMANCE

MONITORING
Source: Developed by the researcher

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6. WARD COMMITTEE PERFORMANCE MEASUREMENT FRAMEWORK

Ward committee consists of local councilors, reputed persons from the locality, others
members of the local community and the chairman of the municipality. The
formation, composition and functions of ward committee have been discussed in the
2nd Chapter. The role of local people is very important in the ward committee
meeting. As they are the main sources of supplying information about the basic needs
of the citizen. Local government is responsible to fulfill that need. Therefore the
overall performance of a municipal organisation is largely depending on the
performance of ward committee. The infrastructural development work starts from
community level on the basis of the demand of the local people. Local people are the
best judge of thinking the local area services. Without involved with local people
municipality cannot run a plan successfully. The ward committee performance
measurement framework is shown in figure-5.8.
Figure-5.8

WARD COMMITTEE PERFORMANCE MEASUREMENT FRAMEWORK

SELECT
OBJECTIVE

IDENTIFY
PROBLEMS

RESULT OUTCOME
IDENTIFY FREQUENT
MEASUREMENT
WARD SUB-PROBLEMS MEETING
COMMITTEES

OUTPUT
MEASURE ACTIVITIES

FEEDBACK
RESPONSIBILITIES

Source: Developed by the researcher

While developing this framework the following factors are to be considered:

I. After identifying the problem and sub-problem of any local area of the
municipality, prepare an initial report of the problem and present the reports

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in the meeting of the ward committee for discussion. Again, present an initial
report of the ward committee meeting of the board of councilors with primary
recommendation for action. Arrange the frequent meeting of the said
committee.
II. Receive an initial report of work so performed from the monitoring team and
present the progress report to the board of councilors, including the final
report of performance in every level and make a comparative statement with
the similar types of work.
III. Receive the proposals for the development work. Form a monitoring system
and communicate the strategy to disseminate the evaluation information as
well as to look after the activities for making a priority list of work to be
executed
IV. Develop a performance measurement system in the committee.

7. EMPLOYEES PERFORMANCE MEASUREMENT FRAMEWORK

Figure-5.9

EMPLOYEES PERFORMANCE MEASUREMENT FRAMEWORK

HIGH PERFORMING
ORGANIZATION

OUTCOMES
ACTION
PLAN

MEASURING
TALLENT

RESULT
EMPLOYEES
PERFORMANCE
INPUT
IDENTIFYING DEVELOPING
TALLENT TALLENT

FEEDBACK

IMPACT

ACTIVITIES

Source: Developed by the researcher

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The government of West Bengal determines the number of posts for appointment of
the full time employees in the municipalities. The municipal authority may appoint the
casual, part time or contractual employees for running the activities of the
municipalities on need basis. Municipal employee plays an important role to maintain
the steady performance regarding developmental activities, as well as the delivery of
basic services to the local people of the municipality. Therefore, it is very important to
monitor the employees' performance on a regular basis to build an effective municipal
organisation. After that feedback is taken to review the result to work performed by
the employees. The standard levels of performances of the employees are set out. If it
is found that any employee is unable to reach the targeted level, then identify the
problem they are facing. Timely reward and recognition of the accomplishment also
motivates the employees to improve the performance. Accurate performance
measurement not only forms the basis of an actual performance review, but also gives
way for judging and measuring employee potential. Employee performance
measurement also compress the quality of works compliance with the desire
standard, the cost involved to run the activities and the time taken to achieve the
goal. It is shown in figure-5.9. Some of the common points of the employee's
performance measurement frameworks are given below:

I. Setting of organisational goal and frame out the activities towards achieving
the target at desired level through defining the plan of action, including the
role, duties, responsibilities of the employees.

II. Establish a clear picture of current employees' performance, including the

statement of the behavior, skill, efficiencies, competencies and knowledge of
the employees used for results.

III. Forming a self assessment system and establish a framework of feedback of

the employees to submit report on a regular basis to the authorised person.
On the basis of individual, team and departmental report, recommendations
can be drawn for forming a further action plan.

IV. Make a comparison between previous performance and the actual

performance. Compare the actual performance with the desired level of

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performance.

V. Arrangement of training, coaching, workshop, seminar, debate, etc. for

improvement of the individual performance of the employee and to identify
the area to be focused on further improvement on the basis of results.
Ensuring capacity to deliver objectives through learning and skill development.

8. STAKEHOLDERS PERFORMANCE MEASUREMENT FRAMEWORK

The primary object of local government is to provide the basic services to the local
people within its jurisdiction. The data and information relating to the services in the
local area will be identified by the stakeholders and present it to the appropriate
place. A model for measuring the performance of the stakeholders helps the board of
councilors, administrations and other associates to make the municipalities in more
exception. Stakeholder's performance measurement framework is a common
monitoring performance progress platform based on which a strong and standard well
performed organisation is formed (figure-5.10). It includes the following:

I. Formation of a preliminary committee to watch the initial situation and to

develop a demand statement.

II. Adopts and identify the priority and objectives of the developmental plan.
Adopts the strategy to overcome the problem.

III. Approve the changes of the priorities, objectives, short term target of the
municipality.

IV. Organize to meet the needs of people in better quality. Continuous

improvement effort. Justify the fund utilisation for the local people. Public
responsibility and social commitment.

V. Communicating the performance report to the stakeholders

VI. Selecting the performance measure to focus on that point.

VII. Documenting performance measurement practice, feedback and lessons

learned.

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 Performance Measurement Framework

Figure-5.10

STAKE HOLDERS PERFORMANCE MANAGEMENT MODEL

AUTHORITIES

ADMINISTRATOR
SUPPLIERS

COMPITITORS
INVESTORS
ORGANIZATION

FUNDING
AGENCIES
&
EMPLOYEES
OTHER
AGENCIES

ENVIRONMENT

Source: Developed by the researcher

The Performance of a municipal organisation may be called success if the municipality

achieves its short and long term objectives through smoothly operating its functions.
Effective performance measurement of the municipality must address both the
strategic and operational planning of the municipal administrations. The performance
measurement framework sets out the expected results of the municipal services. It is
intended to communicate the overarching framework through which the municipal
service department collects and track performance information about the intended
results of the department. Following are the three indicators of performance
measurement frameworks which may be considered as effective for municipal
organisation.

Input indicators: Costs, resources and time used to produce outputs in accordance
with the input indicators.

Output indicators: The extent to which the municipality's activities or processes

produce outputs in accordance with the output indicators.

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Outcome indicators: The total improvement brought by outputs in accordance with

outcomes indicators.

Performance measurement frameworks are to be formed in the understanding that

the organisation will run smoothly in the future and the performance will be increased
at all levels. For managing the organisational performance it is requires to develop an
effective framework of performance measurement. While forming the framework
some important issues are there, which are required to rise.

Firstly, what are the key objectives that the organisation want to achieve and how
does it go for achieving the objectives.

Secondly, what are the strategies and plan that the organisation adopts and how does
it assess and measure the performance?

Thirdly, what are the level of performance does the organisation need to achieve and
how does it go?

Fourthly, what are the rewards for better performance and what are the penalties for
poor performance?

Finally, what are the information exchange procedures and how does it relate to
mood, emotions and behaviors?

The answer to all the questions may be solved by developing the performance
measurement framework in every level municipal of activity. For developing an
effective performing organisation, the 1st step is to define the goal. 2nd step is to
formulation of the strategy. 3rd step is to develop the activities. 4rth step is to report
and review the functions and the 5th step is to finalize and settle the outcomes.

135