The Impact of The Implementation of Goal Setting Theory and Agency Theory on Performance: Evidence from Indonesian Public Sector Organizations (original) (raw)

International Journal of Approximate Reasoning, 2013

Abstract

The aim of this study is to give empirical evidence about the impact of the implementation of goal setting theory andagency theory on the performance of local governmental units in the Special Region of Yogyakarta Province. The samples were the SKPD’s chairmen or chairwomen who lead the governmental services atthe province level (D I Yogyakarta) and the regency level (Kota Yogyakarta, Kabupaten Sleman,Kabupaten Gunung Kidul, Kabupaten Bantul, and Kabupaten Kulon Progo), and they must be in their term of office for at least one year. This study analyzed their perceptions about the statements in the questionaire. The data were analized by partial least square (PLS) with Smart PLS Version 2.0. The findings showed empirical evidence of the impact of clear and measurable goals on qualitative and quantitative performance, and the impact of performance measurement indicators on quantitative and qualitative performance are consistent with goalsetting theory, but the impact of decentralizati...

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