The Performance measurement in local governments and a research on the effects of external factors over local governments`performance

iiiABSTRACTTHE PERFORMANCE MEASUREMENT IN LOCAL GOVERNMENTSandA RESEARCH ON THE EFFECTS OF EXTERNAL FACTORS OVER LOCALGOVERNMENTS? PERFORMANCESemih BİLGEFinance Administration DepartmentAnadolu University, Institute of Social Sciences, February 2006Advisor: Prof. Dr. Fazıl TEKİNThe following factors make the use of performance measurement andaudit in local governments a more obvious necessity: The closeness of localgovernment agencies to the citizens, i.e. customers of the public services incomparison to central government agencies, the high capacity of change inlocal governments, more easily questioning and following by the taxpayers ofthe goods and services produced by local governments in comparison to thosethat are produced by the central government.This study focuses on two main objectives. Firstly, a literature review aboutperformance measurement in local governments was undertaken andinformation about performance measurement systems and practices isprovided. Secondly, a statistical model is created in order to measure theeffects of the external factors on achievement indicators that are used inmeasuring the performances of the local governments that are included in theBEPER Project in Turkey, and the results are interpreted.In the first chapter, in order to avoid the confusion over the concepts, theconcept of performance measurement and its meaning in the public sector areexplained. In the second chapter, the development of the performancemeasurement in local governments is discussed and its importance andbenefits are emphasized. Then, the creation process of performancemeasurement systems in local governments is explained and differentapproaches in the process are discussed. In the third chapter, someapplications of performance measurement systems in the world are explained.Finally, in order to explain the role of the external factors on indicators that areused in measuring the performances of local governments, a statistical model,directed towards the metropolitan municipalities of the BEPER Project, iscreated and the findings and results obtained from the research are evaluatedand recommendations are made.