Journal of Finance and Accounting
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Journal of Finance and Accounting. 2014, 2(3), 41-50
DOI: 10.12691/jfa-2-3-1
Open AccessArticle

Complexities in Performance Measurement and the Reaction of Actors: The Case of Tanzania

Mkasiwa T.A1, and Gasper A.F1

1The Institute of Finance Management, Tanzania

Pub. Date: June 24, 2014

Cite this paper:
Mkasiwa T.A and Gasper A.F. Complexities in Performance Measurement and the Reaction of Actors: The Case of Tanzania. Journal of Finance and Accounting. 2014; 2(3):41-50. doi: 10.12691/jfa-2-3-1

Abstract

The purpose of this paper was to explore the challenges and complexities of performance measures which caused less than desired behavior in the Tanzanian Local Government Authorities (LGAs). Specifically, the paper focuses on performance measures under the Local Government Development Grant (LGDG) system. The LGDG was the performance based grant system established to link LGAs’ performances and their financing. The methodology of the research incorporates review of LGDG documents, field-based interviews and observation. The results are interpreted using the law of decreasing effectiveness (de Bruijn and Van Helden, 2007) and Oliver (1991)’s strategic responses to institutional pressure. The study provides a more detailed analysis of the law of decreasing effectiveness and contributes by adding a component of complexity, to contribute to the causes of pervasive effect. The paper also explains how acquiescence and manipulation strategies (Oliver, 1991) can occur concurrently.

Keywords:
performance measures NPM tanzania local governments law of decreasing effectiveness

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