This report makes for fascinating (though dry) reading:
he origins of performance management in UK HEIs has been associated in general with the advent of New Public Management (NPM) and, in particular, to the changes proposed by the Jarratt Committee in the management of universities
The NPM movement, which emerged in the 1980s and remains influential today, aims to improve the performance of publicservices in terms of their efficiency and their effectiveness. NPM is based on economic rationalism and promotes practices that are typically used in for-profit sector organisations, such as external audits, results-based management, quantitative performance measures, performance targets and individual performance appraisals. NPM defines itself as fundamentally different from old public management characterised by professionalism, self-management, implicit standards and mostly qualitative performance indicators. NPM promotes the view that management and managers are essential and desirable for the appropriate administration of public sector institutions NPM emphasises the idea of accountability and the need for increased transparency and availability of information. The NPM movement has led to an increased focus on performance and performance management at all levels in public services.In line with the NPM movement, in the mid 1980s a committee of vice-chancellors and principals known as the Jarratt Committee was established to review the efficiency and effectiveness of UK HEIs. The recommendations of this committee introduced significant changes in the management of HEIs. Among other actions, the committee proposed that institutions use performance management practices such as quantitative performance indicators and staff performance appraisals. It also suggested that HEIs be less dependent on public funding and more cost conscious when managing their resource.