Abstract

The public sector on the African continent is viewed by critics as dysfunctional, inefficient and ineffective in meeting and addressing societal demand in a turbulent socio-economic environment. The proponents of neo-economic liberalism are of the view that the introduction and application of private sector management principles to the public sector will address service delivery deficiencies. The study focuses on the challenges to implement private sector management principles in the public sector. The objective of the study was not to argue for or against the neo-economic liberalism but rather to come to an understanding of the challenges that hinders the introduction of private sector management principles generally and particular performance management system to the public sector. The locus of the study was local government in the Western Cape Province of the Republic of South Africa. A comparative case study approach was used to draw inferences and answer the research question. The findings indicated that implementation challenges do exist but juxtaposed this with successful implementation. The study concludes with a proposed model for implementing private sector management principles to the public sector.

Key words: Private sector management principles, new public management, neo-economics, performance management, local government.