The Ability to
Implement Performance
-
Based Budgeting
Generally, unsuccessful implementation of every plan in an organization is the result of low capacity or
inability of the organization. There are different dimensions to organizational ability such
as human force
potential, performance assessment potential and technical ability. Research and report results also suggest
that the aforementioned dimensions can be considered the key factors to the implementation of
performance
-
based budgeting.
Performan
ce
Assessment Potential
:
Performance assessment refers to the measurement of results and
outputs of every system or the governments. Many governments
consider measurement of outputs to be
time
-
consuming and difficult. Therefore, some governments are still
defining their outputs. Information
resulting from performance assessment shall be used in management, decision making, resource
allocation, and the design of incentives so that performance
-
based budgeting is implemented significantly.
On the other hand,
results of performance assessment
shall be accurate and reliable. In addition, problems
of performance assessment may prevent the potential implementation of performance budgeting.
Human
Force Potential
:
The presence of human forces with academic degrees
in every system and
organization is inevitable.
However, human forces have to have
expertise to
assess
performance and
maintain/administer
data banks.
The availability of expertise to formulate performance objectives and to
connect users of organization pe
rformance information can contribute to the implementation of
performance
-
based budgeting.
Technical
Ability
:
Currently, governments
are assessing technologies required for
implementing
performance
-
based budgeting. However, the shortage of financial resources for the development of new
financial and information systems is the most important problem with the implementation o