This book applies various theoretical tools to explore the advantages and disadvantages of performance management systems, the ways in which they can be improved, and the strategies through which they can be designed and integrated into the policy making process. By providing both theoretical insights and practical applications, it offers a unique perspective. Using four methods of research that have been rarely applied in the performance management literature: formal (game-theoretical) modelling, operational management, new institutionalism, and cross country statistical comparisons based on international data sets, the book illuminates different aspects of performance management systems in the public sector. It offers an integrative theoretical framework for explaining and designing such systems and their integration into the policy making process, and will open up new avenues of research, expose scholars and students to new methodological tools and equip public officials, politicians and citizens with practical methods for improving the performance of the public sector.