SUPAG Insights November 2024

ANTECEDENTS OF LOCAL GOVERNMENT PERFORMANCE MANAGEMENT SYSTEM EFFECTIVENESS IN THE PHILIPPINES

REGINALD G. UGADDAN

ABSTRACT

Despite the increasing focus on results-oriented governance, there remains a limited empirical understanding of what drives the effectiveness of performance management systems in local governments, especially in developing contexts such as the Philippines. Although the existing literature emphasizes the significance of performance management, it often neglects the interplay of environmental, leadership, and institutional factors that shape system outcomes. This study aims to fill this gap by examining the antecedents of Performance Management System Effectiveness (PMSE) in Philippine local governments. Utilizing survey data from 485 local government employees across the Cagayan Valley region and the province of Isabela, hierarchical regression analysis was conducted to identify key predictors of PMSE. The results indicate that political and mass public influence significantly enhance PMSE, while instrumental and participative leadership styles, as well as leader-member exchange (LMX), are strong predictors of leadership effectiveness. Among institutional factors, a hierarchical culture supports effectiveness, whereas red tape and centralization inhibit it. These findings suggest that political alignment, enabling leadership behaviors, and reducing bureaucratic barriers are crucial for fostering effective performance systems. The study provides practical insights for public sector reform and contributes to advancing scholarship on performance management in local governance settings.

Keywords: performance management system effectiveness, leadership style, organizational culture, red tape, centralization, local government