The Korea Local Administration Review

Despite its positive aspects, the local agency management evaluation systemhas some problems scholars and practitioners pointed out. One of thoseproblems is the business-size effect on the management evaluation. That is,large-sized corporations are more likely to get excellent grades in themanagement evaluation whereas small-sized ones rarely have a chance to getthe better grades due to the halo effect of organization size on the evaluation.This problem may undermine the credibility and acceptance of the managementevaluation system. the actual survey and correlation analysis shows that thelarger the public corporation, the higher the management evaluation grade. Thebusiness-size effect is caused mainly by the non-metric criteria by which thebig size corporations get the better grade in the evaluation. Based on theresults of analysis, the following proposals were made to solve the problem ofbusiness-size effect on the evaluation. First, the difference in the managementenvironment the evaluated agencies have should be reasonably considered.Second, obvious evaluation criteria for non-metric indicators should beprepared for the fair evaluation. Third, the evaluation result should not beutilized to control over the public corporations but contribute actually to theirmanagement system renovation.
□ Keywords: local public corporations, facilities management corporation,management evaluation system, management evaluation indicator,publicness, business size