How Do Public Managers Learn from Performance Information? Experimental Evidence on Problem Focus, Innovative Search, and Change.

Management decisions are considered important for the performance of public organizations, but how does information about performance influence management decision‐making? Developed from Simon's notion of bounded rationality, the behavioral model of performance‐based learning suggests that managers...

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Published in:Public Administration Review Vol. 82; no. 5; pp. 946 - 958
Main Authors: Hansen, Jesper Asring, Nielsen, Poul Aaes
Format: Article
Published: Wiley-Blackwell Sep2022
Subjects:
Online Access:View this record in EBSCOhost
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        atl: How Do Public Managers Learn from Performance Information? Experimental Evidence on Problem Focus, Innovative Search, and Change.
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          Hansen, Jesper Asring
          Nielsen, Poul Aaes
        affil: Aarhus University, , Denmark
      su:
        Public officers
        Public administration
        Human behavior models
        Decision making
        Reason
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        subj:
          Public officers
          Public administration
          Human behavior models
          Decision making
          Other General Government Support
          Reason
      ab: Management decisions are considered important for the performance of public organizations, but how does information about performance influence management decision‐making? Developed from Simon's notion of bounded rationality, the behavioral model of performance‐based learning suggests that managers adjust their understanding of organizational problems, search for information, and consider initiating change when their organization performs below aspirations. In this paper, we offer experimental evidence of how performance information affects the attitudes and decision‐making of public managers. We leverage two experiments conducted among managers in public education. Study 1 uses a question‐order experiment to prime only treated respondents to consider performance, whereas study 2 uses treatments with high‐ and low‐performance signals. We find that low performance affects problem focus but not managers' intention to conduct innovative search. We also find that low‐performance signals increase preferences for immediate performance‐oriented changes but not for other types of changes. We discuss the implications for management decision‐making. Evidence for Practice: Performance information holds the potential to generate organizational learning and inform public managers' decisions about important problems, priorities, and organizational change.Public managers become more focused on direct performance‐oriented changes when performance is low, whereas high performance lets them engage in other types of changes.Performance information alone does not ensure that public managers are focused on generating innovative solutions to performance problems.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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