CONCEPT PAPER

Title of the Study: PERFORMANCE MANAGEMENT SYSTEM AND LOCAL

GOVERNANCE OF A MUNICIPALITY

Proponent: JAN ROGER P. YUNSAL MBA 1-B

Background of the study

The managerialist reform movement during the last two decades of the 20 th
century saw considerable changes in the way public sector organizations are being
managed. The introduction of reforms was ultimately seen as necessary because of
the perceived inability of governments to address their day to day problems
resulting in the erosion of public confidence. This reform wave is a worldwide
phenomenon known as the “new public management” (NPM).
Most problem of the government are the result of one thing; poor
governance. If governance is such an important factor in the development of the
country, then it is important to understand the factors leading to poor government
performance, measure it, and improve it. But how do we, measure such a
complex, intangible concept? First we need to define what governance and good
governance is. According to the Australian Government’s Overseas Aid Program
(AUSAID), “Governance is the exercise of power or authority – political,
economic, administrative or otherwise – to manage a country’s resources and
affairs. It compromises the mechanisms, processes and institutions, through which
citizens and groups articulate their interest, exercise, and their legal rights, meet
their obligations and mediate their differences. On the other hand, “Good
governance” means competent management of a country’s resources and affairs in
a manner that is open, transparent, accountable, equitable and responsive to
people’s needs”.
Because the main beneficiary of good governance are the people, local
government units (LGU’s) in the country have also devised a way to measure the
quality of governance in their respective LGUs to monitor their performance and
meet the expectations of their constituents. The performance measurement called
the Local Productivity and Performance Measurement (LPPM) system was
conceptualized in 1982. The system was able to generate information benchmark
on service delivery capabilities and limitations, as well as budgetary prioritization
and allocations of provincial, city and municipal governments, including issues or
concerns that were beyond their authority and competence to address. The LPPMS
was fully implemented from 1984 until it was discontinued in 1986 due to the
belief that is value was already recognized in the local government decision-
making process.

Performance Management System And Local Governance Of A Municipality

 According to Ammon, (2020), today, local governments routinely report
performance measures to city councils, county commissions, and citizens. Many
government officials want to do more with their measures. They want to use them
not just for reporting but also for management purposes—to improve operations
and services. But the measures governments have now often are inadequate for
this expanded role.
Inspired by the reform efforts that have taken shape in most develop
countries, this paper begins with the proposition that performance management is
one of the more essential tools for the country to attain national prosperity and
stability. It recognizes the importance of performance management as a tool to
achieve good governance, which is needed by country to soar from low level of
development to one that is highly competitive and at par with world standard.
The main objective of the study is to determine if the Local Government
Performance Management System is effective in improving local governance in
the Municipality. Specifically, this study aimed to compare the overall
performance index of the Municipality from 2018 - 2022 to see if there are
improvements; to determine if the Local Government Performance Management
System ratings affect the performance of Municipality as a whole; and to find out
if the weak areas pointed out by the Local Government Performance Management
System in previous years had been addressed in succeeding years.

Statement of the Problem

Since the Local Government Performance Management System has been put
in place primarily to boost the performance of local governments in order to serve
the people better, the author aimed to answer this primary question: Is Local
Government Performance Management System in order to answer the primary
question, the following sub-questions were developed:

The following questions are to be addressed accordingly in this study:

1. What is the profile of the participants when grouped according to:

a. age;
b. sex;
c. civil status;
d. educational attainment;
e. political attainment; and
f. Public service or experience?

2. Determine the Performance of Local Government Units in terms of:

a. Governance;
b. Administration;
c. Social service;

Performance Management System And Local Governance Of A Municipality

 d. Economic development; and
e. Environmental management?

3. Determine whether there is a significant variation or difference in the

LGU performance when grouped according to:
a. Number of barangays;
b. Population;
c. Income classification; and
d. Distance from the municipality?

4. Determine whether there is a significant variation or difference in the

Local Government Unit (LGU) performance when grouped according
to:
a. Sex;
b. Age;
c. Educational attainment;
d. Political affiliation; and
e. Public service or experience?
5. Was there improvement in the Local Government Performance
Management System rating from 2018 to 2022? After five years of
using Local Government Performance Management System, which
revealed the weaknesses and strengths of the Municipal Local
Government Unit, is governance situation improving or worsening in
Municipality?
6. What is the impact of the Local Government Performance
Management System in the lives in Municipality?
7. What is the state of local governance performance in the Municipality
from 2018 - 2022 based on the following areas?

Hypotheses

The following hypotheses are advanced:

1. Organizational capacity is expected to contribute to a well-functioning

government.
2. Public Management literature offers few objectives measure of
organizational capacity and scarce empirical analysis of the organizational
capacity government performance relationship.

3. Performance Management System do not significantly influence the

decision process of Municipal Governance.

Performance Management System And Local Governance Of A Municipality

 4. There is no significant relationship between the extent of Performance
Management System and the extent of Local Governance process of the
participants?

Theoretical Framework

According to Ammon (2020), considerable research on Performance

Management System at all levels of government, including state and local, has
been published in recent years. Much of this work has attempted to describe or
explain various aspects of the performance management phenomenon, including
conditions associated with adoption, the motives and reactions of various actors,
and perception about success and failures. This is research about performance
management system of a local governance in a Municipality. A smaller set of
research, because it addresses in a utilitarian way the performance management
system of local government practitioner, comprises the subset of performance
management research for local governance. Performance management researchers
could perform a great service of local governance if a larger portion of their
research tested the efficacy of performance management in the public sector and,
if efficacy is confirmed identified the factors associated with its success.

Conceptual Framework

This study used the logic model (also known as a logical framework,
theory of change, or program matrix), a tool created by Martin Quigley, to
evaluate the effectiveness of a program. Since Local Government Performance
Management System is used to measure and evaluate the quality of governance of
a certain Local Government Unit for purposes of effectively managing and
improving performance, it is imperative to know if the tool is effective in bringing
about change and addressing problem areas that were revealed in the Local
Government Performance Management System result.

Further, the conceptual framework looks into the state of local governance
which is measured using governance indicators, either input or output, and the
state of local development which is measured using development or outcome
indicators. This is to emphasize that governance indicators are based on the
LGU‟s key responsibilities or on those areas which the local government has
direct control. On the other hand, development indicators are not necessarily
within the control of the LGUs but are utilized to determine the development gaps
where the local government, national government and other sectors of the society

Performance Management System And Local Governance Of A Municipality

 can work together in addressing development backlog. Information on the State of
Local Governance Performance and the financial performance, which are both
considered in Local Government Performance Management System, are equally
important inputs in managing LGU performance in local governance.

Since the system is not only concerned with measurement such as

collecting data, analyzing variances, and reporting results Debut in managing
LGU performance by developing action plans to close those gaps, the author
sought to evaluate the effectiveness of the Local Governance Performance
Management System in improving local governance by looking into the result of
the Local Government Unit performance from 2018 to 2022.
Figure 1. Conceptual Framework Schematic Diagram

Determine the
Participants’ Performance of Significant
Profile Significance
Local Government variation or
Age Variation or
Units difference in the
Sex LGU performance difference in the
Civil status Governance; No. of Barangays LGU.
Action Plan
Educational Administration; Population Sex
attainment Social service; Income Age
Political affiliation Economic Classification Educational
Length of public development; and Distance from the attainment
service or Environmental municipality Political affiliation
experience management. Experience in
Public service

Performance Management System And Local Governance Of A Municipality

 Municipality

Local Quality of
Local
Result of Government Governance Improve
Governance
Evaluatio Unit Quality of Stagnated
Performance
Interventions to life of
Evaluation n Declined
improve Citizens

INPUT OUTPUT OUTCOME

Figure 2. Schematic Diagram of the Conceptual Framework

Performance Management System And Local Governance Of A Municipality

Scope of the Study

Municipality of Hinigaran. Specifically, this study aimed to compare the overall

performance index of the Municipality of Hinigaran from 2018 to 2022 to see if there are
improvements; to determine if the Local Governance Performance Management System and
to find out if the weak areas pointed out by the Local Governance Performance Management
System in previous years had been addressed in succeeding years. With this progress, it is
important to measure development and examine if these improvements are brought about,
partly or in whole, by the interventions made by the municipality in response to the
weaknesses that have been pointed out by the Local Governance Performance Management
System tool.

Significance of the Study

This study will benefit the following:

Local Government Unit (LGU). The findings of this study will provide the local
government unit not only in the Municipality but also in Province or in national. Also, it will
provide them with the basic knowledge about the Good governance factors that may
influence their future decision making process. And, it will help them to be fully aware of the
problems are facing in the conduct of their duties and responsibilities in the different areas of
Municipality.

Public Servant. The findings of this study will aid them to address the issues related
to the local governance and also helps public servant for the future decision making.

Public. This study helps community to see or view those programs and progress of
the Municipal and how the Local Governance works.

Employers. This study will help them understand the factors about local governance.

Municipal. The study will provide them with the bird’s eye view of the challenges
that they may be facing in the future. This will make them more vigilant of their actions
towards the right conduct of Good Governance

Future Researchers. This study can be a source of researchable problems and ideas
that require further studies related to Performance Management and Good Governance.

Definition of Terms

● Local Government Units (LGU’s)

● Performance Management System

● Good Governance

Performance Management System And Local Governance Of A Municipality

 o Governance Aspect
o Administrative governance;
o Social governance;
o Economic governance;
o Environmental governance;

 Developmental Aspect
o Social Development;
o Economic Development;
o Environment Development;

 Fundamentals of good governance

o Participation
o Transparency
o Financial Accountability

Research Design

This study used the descriptive method utilizing longitudinal data. The quantitative
method will be used in finding out if there is a marked increase in the score/rating of the LGU
for five succeeding years.

Participants

The author used Municipality, a town in Hinigaran, as the sample of the study.
Hinigaran composed of 24 barangays. The municipality of Hinigaran has a land total area of
154. 92 Hectares, with population of 88,909 as of 2020 Census Statistics. Which the major
industry of the municipality is Agricultural and Fishing (Aqua Marine) with the most popular
products are Nylon Shell, Capiz Shell (Lampirong) and Oyster (Talaba). The municipality
has undergone a series of administrative reforms in the past years. From being second class, it
has been reclassified into a first class municipality. The re-classification was made after the
municipality earned an average annual internal revenue allotment of P 322, 007, 764 as
reflected in its financial statements for calendar year 2022, as certified by the Commission on
Audit. The town has been envisioned to be a character municipality. In fact, the municipality
had garnered numerous awards that are able to realize this vision, having shown considerable
improvement in ways that are easily perceived by its constituents. During year 2013 it was
awarded Seal of Good Environmental Governance (Silver), in 2014 it was awarded Seal of
Good Environment Governance (Bronze) for the exemplary performance in the protection
and conservation of the environment, in 2016 it was awarded Seal of Good Environmental
Governance (Gold), in 2017 it was awarded Seal of Good Environmental Governance
(Platinum), in the year 2018 it was awarded Seal of Good Environmental Governance
(Platinum) and in the year 2019 it was awarded Seal of Good Environmental Governance (2 nd
Platinum). Over the years of the new administration the Municipality has vastly improved in
construction of New Public Market, new Hotel Building (Multi-purpose Bldg.) and new
Hospital Building. With this progress, it is important to measure development and examine if
these improvements are brought about, partly or in whole, by the interventions made by the

Performance Management System And Local Governance Of A Municipality

municipality in response to the weaknesses that have been pointed out by the Local
Government Performance Management System tool.

Instruments

A Local Government Unit self-assessment questionnaire crafted by the DILG was

used as a research instrument. Each LGU has a designated team to answer the questionnaire
online. They are given their username and password to access the online LGPMS and answer
the questions. A 5-point scale (5, excellent; 4, high but not excellent; 3, fair; 2, low; and 1,
poor) is used as basis for rating.

Procedure

Secondary data were collected from the website [Link] under Local
Performance Governance Management System reports. This website contains all governance
performance data of towns, provinces and cities in the country to assess governance
performance and state of local development and to link information to local and national
decisions or actions to promote good governance and local development.

References:

Department of the Interior and Local Government. (2022). DILG LGU Profile CMS: Fiscal
year 2022. [Link]

PHIL ATLAS. (2023). Hinigaran Province of Negros Occidental.

[Link]

Local Government in the Philippines (2002). Concepts and Practices in Decentralization

(Volume III, pp. 327-328). National College of Public Administration and Governance.

Adriano, MN. & Estimada, D. (2014). The Effectiveness of the Local Governance
Performance Management System (LGPMS) in Improving Governance in the
Municipality of San Rafael. (Vol. 1, No. 5, November 2014). Asia Pacific Journal of
Education, Arts and Sciences. [Link]/51551541/APJEAS-2014-
[Link]?1485765557

Ammons David N. 2020. Performance Measurement for Managing Local Government:

Getting It Right. Irvine, CA: Melvin & Leigh.
[Link]

Performance Management System And Local Governance Of A Municipality