Purpose: The article focuses in the management and assessment of human performance in the public sector in the state of Kosovo as a key factor for sustainable development and quality increase in the local governance level. Usually management of performance measurement in local governance was concentrated in result delivery without talking into consideration the key factors for effective work such as performance measurement indicators. Nowadays this correlation between performance measurement management and quality increase of services is becoming very important. The article aims to consider and support the fact that the linkage of local government performance assessment is strongly affecting the service quality toward consumers and citizens. Design/Methodology/Approach: For the purpose of this study we have covered a broad literature review followed by primary data collection through questionnaires and semi-structured interviews with key experts, relevant reports and other related documentation. Findings: The paper found that there is dissatisfaction among stakeholders with actual way and framework for management of performance measurement and highlights the necessary changes and advancement toward an improved framework for modern performance measurement in order to increase the service quality and satisfy the needs of businesses, consumers and citizens, while indirectly supports the motivation in the workplace. Practical Implications: The paper will serve as a guide for public sector management and aims to facilitate the motivation among employees. This will lead to increase of efficiency and indirectly will support the overall satisfaction among costumers, citizens and businesses. Originality/Value: The research aims to establish valuable performance management systems and develop a model that will serve as one tool for motivation, service quality and efficiency increase between public sector and public management.

peer-reviewed