Construction of Performance Evaluation System for Public Projects Based on Public Satisfaction

By Man, Liu; Qifa, Jiang | International Management Review, January 1, 2018 | Go to article overview

Construction of Performance Evaluation System for Public Projects Based on Public Satisfaction


Man, Liu, Qifa, Jiang, International Management Review


Introduction

With the developing economy, Chinese governments increasingly pour lots of funds in public works. From 2006 to 2015, annual fixed assets in municipal public utility construction roared from 576.51 billion yuan to 16204.4 billion yuan (MOHURD 2016). Due to the large scale of investment in public works, there are inevitably accumulated problems, such as projects of low quality, and then casualties damaged by these defective public works, high pollution, resource wasting, and even corruption, etc. The performance evaluation of public works, refers to using scientific and normative evaluation methods to compare anticipated target, process and results of economy of public investment behavior, efficiency, and comprehensive evaluation (Zhu et al. 2009). Therefore, performance evaluation is now transparent to public and is taken seriously. However, the performance evaluation system of public projects in China is still in its infancy and needs to be perfect. Moreover, the goal of public projects is to maximize public interest so that public satisfaction will be an important indicator of public project performance evaluation. After consideration of the above issues, this article provides certain guiding role for the government to improve the performance evaluation of public project.

Literature Review

Reviews on the Performance Evaluation of Public Project

The United States is the world's earliest countries taking account of examination and assessment of public projects. In the 1960s, American accounting agency firstly established the rules, e.g., Economy, Efficiency, and Effectiveness, recognized as "3E" government performance of typical structure paradigm, and later joined Equity, building the structure factors of "4E". Also in January 1993, the United States Congress passed the Act of Government Performance & Results, as an important legal basis for performance evaluation of public projects used by the science and technology departments. Project output should not only contain economic profits, but also include social benefits. This definition provides a measure of social benefits and foundation for the national economic evaluation (Depuit, 1884). After social benefits are presented, the performance evaluation gradually goes into the public view; organizations can get citizen trust through performance evaluation, the public will think the corresponding reasonable after the tax return (Ammons 1995). Advocated by the public, the emphases should be laid on the questions such as effective administration, accountability fulfilling, meeting stakeholders' expectation, result-oriented (Flynn, 1997).

Since the 21st century, regarding public project performance evaluation in China, great progress has been made. In 2006, Methods and Parameters of Economic Evaluation for Construction Projects was authoritatively issued by departments of central governments. Building a set of the reasonable and feasible index to scientifically evaluate public projects is necessary (Jia et al., 2003), to improve management and performance (Zhang, 2006). Only by this comprehensive and effective evaluation index, performance evaluation can be exactly implemented, in-depth analysis can be reached, and finally performance improvement can be targeted (Du et al., 2008). Chinese scholars have made some penetrations. Evaluation methods, indicators, standards, and procedures are analyzed for different types of public projects, for example, science and technology projects (Li et al., 2004), fiscal expenditure projects (Zhang et al. 2007), and environmental protection projects (Zhai et al., 2009).

Reviews on Public Satisfaction

As a result of increased focus on performance evaluation by governments, public satisfaction, which centers around the public and set public perception as the criterion, moves into the public view. Once OECD proposed the idea of an analogy between the public and the client, which indicates that public administration is a kind of service, and the public is the same as clients. …

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