Regardless of where we live, the management of the public sector impacts on our lives. Hence, we all have an interest, one way or another, in the achievement of efficiency and productivity improvements in the activities of the public sector. For a government agency that provides a public service, striving for unreasonable benchmark targets for efficiency may lead to a deterioration of service quality, along with an increase in stress and job dissatisfaction for public sector employees. Slack performance targets may lead to gross inefficiency, poor quality of service, and low self-esteem for employees. In the case of regulation, inappropriate policies can lead to unprecedented disasters. Examples include the decimation of fish stocks through mismanagementof fisheries, and power blackouts through inappropriate restrictions on electricity generators and distributors. Efficient taxation policies minimise the tax bill for citizens. In all of these cases, efficient management is required,...

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