This study aims to understand performance management as a social phenomenon by investigating the challenges of performance dialogue, a phenomenon where participants jointly interpret performance information and discuss it while identifying the actions needed to manage the performance according to this information Design: The research aim is achieved by conducting an interview study. Empirical data was gathered by interviewing 30 public managers in three Finnish municipalities and subjecting it to content analysis utilizing inductive category development. Findings: The research provides empirical evidence from challenges in engaging in performance dialogue. It moreover derives a comprehensive conceptual model categorizing factors inhibiting performance dialogue. Practical implications: Difficulties conducting organizational performance dialogues are better explained. The findings support the management of performance dialogue by helping practitioners to identify challenges associated to these dialogues. Originality/value: This study contributes to current conversations on performance management by showing that performance dialogues are no miracle cure for problems in performance information use. Moreover, we demonstrate that complications in performance information use are intertwined in many ways.
Purpose The highest decision-making body in a municipality is the council, whose members are elected every fourth year. Therefore, local politicians are in the key position in using financial information in decision making. The purpose of this paper is to study Finnish local politicians’ use of financial information. Design/methodology/approach This paper studies the speech of local politicians as they describe financial operations and financial position of the municipalities they represent. Here, the words of local politicians are considered an expression of their use of financial information. The use of financial information includes its impact on decision making. The focus is on the impact of different individual characteristics of financial information use in speech about financial operations and financial position. The paper employs qualitative empirical data collected through semi-structured thematic interviews with members of the Finnish local government. Data are analyzed with descriptive statistical methods. Findings Local politicians use financial information when they talk about financial operations and financial position of their municipality. Individual characteristics, such as political experience, affect the use of financial information. Experienced local politicians are familiar with financial information and use it more systematically than inexperienced politicians. Contrasted to expectations, financial expertise has a negative impact on financial information use. Moreover, in general, the ideology of politicians does not affect their use of financial information. Originality/value The paper sheds light on the value of individual characteristics of financial information use. It develops and tests hypotheses based on previous research on the impact of individual attributes of local politicians in the Finnish local government.
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