Decision making model to performance management in the public sector administration

Abstract

The aim of this paper is to present proposal for a decision tree applicable to performance management using the principles of "3E's", i.e. economy, effectiveness and efficiency. Nowadays, the topic of performance management in public administration institutions is very up-to-date. The first part of the paper concentrates on explanation of the context of the public administration performance and the accounting reform realized nowadays in the Czech Republic. Then there are discussed the results of research from the year 2011. Therefore, these results show the use of principles of economy, effectiveness and efficiency of the receivers and payers of public finance, especially in the area of transfers. Conclusions - the decision making model can be used to improve performance management in this area.