Assessing measurement model of performance management in government agencies using SEM-PLS analysis

Abstract

The government has formed various formulations of national development objectives. The problem formulation has pushed the government to evaluate every existing work program. Performance assessment is carried out on various existing development on public sectors to optimize performance management. This paper explains the government performance measurement model using the structural equation modeling based on partial least squares (SEM-PLS) method. Measurement of performance management is based on three factors: 1) institutional dimension; 2) operational dimensions; 3) value-added dimension (Alawaqleh, 2021; Kasannudin, 2021; Muizu & Sari, 2019). This research was conducted by distributing questionnaires to local governments in Yogyakarta, West Java, and South Sumatra. As a result of this study, the significant impact of operational measurement, value-added measurement and institutional policy on improving the performance of the organization was confirmed. The study found that the first factor in establishing sustainable performance management is the operational dimension which is one of the keys to sustainable performance management through government evaluation systems. This study is expected to be an important input for policymakers and practitioners in the development and implementation of sound and sustainable performance management systems.