The effect of using performance measurement systems on public sector performance (A case study: Municipalities of Mazandaran province)

The aim of the present research, with focuses on two role of performance measurement system (incentive-oriented and exploratory use) and a key organizational features contractibility, is to investigate the effect of using performance measurement system on public sector performance. The research population is comprised the urban services and urban development units of Municipalities of Mazandaran province. In order to hypotheses testing, data were collected through questionnaire. For research models estimation, OLS regression has been used. Research findings show that 1 unit increase in incentive-oriented use leads to 0.26 units increase in performance that 0.21 units is due to direct effect and 0.05 units is due to indirect effect. Also, 1 unit increase in exploratory use leads to 0.34 units increase in performance that 0.33 units is due to direct effect and 0.01 units is due to indirect effect. According to the results, the managers of the public sector is recommended, considering the emergence of new public management, use the incentive-oriented and exploratory measures in evaluating the performance of their units.