Managerialism, MBO and Performance Appraisal in Regional Local Government - Victoria

The Kennett government in Victoria during the late 1980s and early 1990s undertook a significant managerialist reform agenda. As part of the reform process the Victorian Local Government Act, 1989 was introduced and major changes were made in the strategic direction, organisation and control of Victorian local government. One of these changes was the introduction of fixed term performance contracts for all senior management staff. As a result, senior management issues such as promotion, training, remuneration and contract renewal are now directly influenced by performance evaluation. This paper examines the performance evaluation process in practice in order to determine its outcomes. It found considerable commitment by CEOs and senior officers to the system, but quantitative outcomes are more difficult to identify. This is a regional study, set in six local government units in Gippsland, Victoria.