As society develops and becomes more complex and diversified, the demand for the public services of the people is also diversifying. The government has been hampered by the direct provision of public services to meet the needs of all complex and diverse populations, and eventually provided a significant portion of public services through the establishment of public enterprises, which are a mix of public and private sectors.
The importance of public enterprises, which are established and operated according to various perspectives, is increasing due to their importance in the national economy. The number of public enterprises increased 23 from 298 in 2007 to 321 in 2016, and the budget of public enterprises was 292.2 trillion won in 2006, 32.2% of Korea''s GDP, To 40.7% of GDP of about 627.1 trillion won in 2015. The number of public sector employees is about 280,000 in 2006 and 287,000 in 2015, which is about one-third of all civil servants and about 1% of the total economically active population.
If public enterprises, which occupy a large portion of the national economy, are inefficient and fail to produce results, they may impair the national economy as well as the management performance of the enterprises themselves.
The purpose of this study is to contribute to the improvement of management evaluation system of public enterprises and the rationalization of management of public enterprises in the future by analyzing the factors affecting the management performance of public enterprises and deriving policy implications. For this purpose, the environmental factors of public enterprises were categorized, and the management performance was divided into publicity and profitability. First, we explored the structural characteristics of public enterprises'' management performance through literature research such as previous research. Second, we analyzed the effect of changing the management evaluation system represented by adjustment of indicators and weights to achieve policy objectives. To do this, we verify the significance of the path of the performance model of public enterprises in 2012-2013 and 2014-2015, and then examine the impact of the institutional change on the management performance through comparative analysis. Third, we analyzed the effect of the environmental factors of public enterprises on the management performance using the result of management evaluation of public enterprises in 2014-2015. Finally, based on the results of analysis, policy implications and implications related to the performance management of public enterprises will be derived in the future.
The results of this study are as follows.
First, it was analyzed from the evaluation result of 2012-2015 that the performance structure model of a public enterprises designed based on the Malcolm Baldrige model in 2007 is working well.
Second, we analyzed the effect of changes in the management evaluation system of public enterprises in 2014. Although the PLS-MGA attempted to analyze the significant difference in the path before and after the institutional change, it did not confirm the significance of the path difference in all the paths, and did not find statistically significant effect of institutional change.
Third, the effects of environmental factors on the performance structure of public enterprises were analyzed. As a result of the analysis, it was confirmed that the political environmental factors had a negative impact on profitability. It is confirmed that the economic environment factors negatively affects the profitability by supporting few research results rather than the existing research results. The organizational characteristics were analyzed to have a strong influence on the performance structure of public enterprises. Chief leadership factors did not see the results you want by running the autonomous and responsible management to evaluate the intended separation of the chief engineer in the original government exert a positive influence on business performance causal structure. It is found that the learning innovation factors directly affect the motivation, organizational capacity, and profitability of the public institution''s management performance causation structure and indirectly affect publicness and evaluation results.
As a result of the analysis of this study, the learning innovation factors confirmed to be working well should be strengthened continuously. In the case of political factors, it is necessary to improve the system to prevent indiscriminate intervention by the government sector. In the case of economic environmental factors, it affects the profitability by supporting the small scale, and further research is needed. In the case of organizational characteristics, there is a constant problem raised, but the problem has not been solved even in the change of management evaluation standards in 2014. If such a problem persists, the reliability of the evaluation system may become a problem because it deteriorates the acceptability of the evaluation result of the evaluation institution. In the future, further research on ways to minimize the excessive influence of organizational characteristics on the performance structure of public enterprises is needed. In the case of Chief leadership factors, it is necessary to establish concrete leadership strengths based on autonomous and responsible management, since independent evaluation does not have a great influence on the performance of public enterprises for autonomous and responsible management.
There are limitations of this study.
First, it is difficult to generalize the research results by setting only the enterprises to be evaluated by the Ministry of Strategy and Finance.
Second, there is a limit to the in-depth study on the management evaluation system as only the official data of government is used as the basic data for analysis of the measurement and structural model.
Third, this study used cross-sectional data at specific time points as data for achieving research purpose. As the use of cross-sectional data does not show the long-term trend of the system and the environment, the scope of analysis of the data until 2007, when the same performance structure model was maintained, will be expanded and detailed analysis will be done.