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It is common for organizations and individuals alike to set goals, objectives they want to reach. Instinctively, people have felt that having clearly defined goals is useful for achieving the desired results, and goal setting has been used as a way of improving organizational and personal performance.
The fact that China is rapidly emerging as one of the most powerful countries worldwide is no longer a secret. Besides its trading power, large population and Gross Domestic Product (GDP), China is also an example of good practice when it comes to its governmental administration. From at least the mid-1980s, the Chinese government has implemented a Performance Management system that has grown in complexity and sophistication.
“Winning this prestigious award for the second year in a row, Changi Airport Singapore is showing itself to be much more than an airport. It offers a travel experience in itself and continues to develop its quality standards to be named the world’s favorite airport again.” Edward Plaisted, Chief Executive Officer of Skytrax
Being a public educational institution, the University of Massachusetts (UMass) has ensured a means for the widest range of citizens to be able to access their performance measures. Due to the need for transparency and accountability, they have issued a Performance Report in March 2014, which was made publicly available.
An important issue in performance management is determining the right price to pay for a service provided by another party. The principle – agent problem arises when one party (agent) agrees to work in favor of another party (principle) in return for some incentives. In other words, the principal–agent problem or agency dilemma concerns the difficulties in motivating one party (the “agent”), to act in the best interests of another (the “principal”) rather than for his own interests.
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