A Methodology for the Measurement of Internal Managerial Efficiency in Public Enterprises

Abstract

The objective of the study is to present a methodolgy for the measurement of internal managerial performance in public enterprises. In general, public enterprises have to satisfy two criteria in their performance. The first is to meet objectives which were set by the government when the public enterprises were founded. The second is to achieve profitability• as a business unit. Due to these somehow contrasting• criteria, it is said that the measurement of internal managerial efficiency in public •enterprises presents a complicated measurement problem.

In this study, the focus of the analysis is placed on the efficiency of the managerial performance. Efficiency is used here to refer to whether a given amount of source in a public enterprise is utilized in a way to achieve the greatest result. Thus, the analysis of efficiency is primarily concerned with an investigation of management practices• and its effect on the companys performance. The analysis could be made by means of in-depth interviews with top executives and departmental managers in public enterprises.