Corporate Performance Management - Tool for New Public Management

Abstract

This paper deals with implementation of principles of Corporate Performance Management in public sector. Nowadays, public organizations are looking for ways to become more efficient and, in some respect, to gain a competitive advantage. The concept of use of selected management methods of private sector and their use of public administration is called New Public Management, which has not clearly defined boundaries and it is still open to new possibilities and tools. Due to increasing pressure on organizations, no matter if private or public, on compliance with the principles of sustainable development, authors define crucial economic, environmental and social indicators which should be included in overall performance evaluation of each organization. Because implementing sustainable development principles into organizational performance management should bring wide range of effects, for example contribution to cost savings, better efficiency of processes, or strengthen relationship within the community and customer loyalty.