The Korea Local Administration Review

This study analyzes an influence of institutional character and externalenvironment on the performance score in order to present a constructivealternative for performance evaluation methodology. The study found that anorganization is more likely to improve the performance scores when it hasmore staffs and assets per capita and profit per capita in the perspective ofinstitutional variable. In terms of the environment factor, an organization ismore likely to have higher score of management performance when a localgovernment, where the organization is located, has higher income level. A highsignificance of characteristic and environmental factors on performance scoresimplies that the evaluation system should consider these factors in theperformance indicators and rating grades of evaluation methodology. Based onthe research findings, the study presents the policy recommendation onconsisting performance indicators and rating grades in 2009 Local PublicEnterprise Performance Evaluation System.