Statutory corporations in Hong Kong : an assessment of their performance management systems

Abstract

This dissertation analyses the performance management systems of statutory corporations from four major sectors in Hong Kong with reference to their background of establishment and significance. The sectors have been chosen in the light of their socio-economic importance and contribution to the livelihood of the Hong Kong community. They include trade promotion, air transport facilitation, arts development, and public housing provision. Statutory corporations have incorporated status that empowers them to pursue specific economic and commercial objectives whilst also meeting important socio-political goals and commitments. Their structures are provided for in the statutory requirements, with their performance management systems being open to assessment against their purposes as stipulated in the ordinances. A significant statutory corporation from each of the four major sectors is selected for in-depth analysis using a case study approach based largely on content analysis of the performance management systems of these statutory corporations in Hong Kong, as complemented by responses from senior staff in the organisations. The analysis covers a period of 15 years from 2003/04 when the Home Affairs Bureau (HAB) launched its review exercise on advisory and statutory bodies (ASBs), until 2017/18 as the end of the time in which the empirical research for the study was carried out. The focus is on the performance management systems of the corporations, especially the identification of essential elements that could add to effective performance in a sustainable manner. The study addresses research questions that are directly intertwined and linked to the assessment of the performance management systems of the corporations. Key elements of the systems are identified are essential features of how the corporations operate in pursuit of their goals and objectives. An analytical framework is established to structure and guide the empirical analysis in the study. It comprises important concepts of governance and public action as contextual considerations of significance to the study. It appreciates that various types of organisations are involved, with particular emphasis on statutory corporations as a distinctive type of semi-autonomous government organisation. These corporations, like other organisations in the government, are recognised as having the need for well-established performance management systems that are appropriate to their functions and to the demands of public accountability and control. The review of ASBs in Hong Kong conducted by the HAB has laid down a set of guiding principles based on which relevant government bureaux can conduct in-depth reviews of the statutory bodies under their purview (HAB, 2002). The review exercise of the HAB has provided a good foundation for carrying out the research and analysis of this study. The performance management systems of the selected statutory corporations are analysed with reference to their performance highlights, performance measurement, performance control and reviews, and performance reporting. The main findings are identified by examining the similarities and differences in their statutory corporation status of establishment and the various performance features they have shown. The study of these organisations recognises that they have been established as statutory corporations for various reasons and in particular circumstances. Essentially, they are expected to act flexibly and perform effectively with a high level of autonomy, especially when performance management systems are in place for monitoring and reviewing purposes. Key elements of their performance management systems are essential for themto operate effectively on behalf of the government. It is found that key performance indicators (KPIs) for these organisations are usually drawn up for measurement and evaluation purposes. The corporations have boards set up as the main governing and monitoring bodies, with their composition and functions specified in the relevant ordinances. Their performance reviews are facilitated by internal and external auditors, together with corporate governance requirements which play an important role in maintaining the sustainable development of these corporations. Submission of reports is another statutory obligation for these organisations to strengthen the transparency of their operations. Relevant recommendations are made for possible change and reform in the light of the analysis. Also, the limitations of the study are acknowledged, along with suggestions on lines of future research. Of particular significance will be comparative studies of statutory corporations in similar and other sectors locally, as well as in other governmental systems.