SUMMARY
Performance measurement is a modern managerial instrument used to quantitatively express the outputs and outcomes of certain public organizations. These pieces of information are then used to make rational decisions about organization’s future functioning. Performance measurement is a highly advocated instrument whose importance has expanded since the 1980s and it is being used by a growing number of countries. Croatia is presently at the beginning stage of performance measurement implementation. The purpose of the paper is to explain the legal regulation of performance measurement momentarily existing in Croatian state, regional and local administration de lege lata, and to assess the real effect which this regulation has led to. This is done by using the data provided by a number of conducted researches and the review of relevant literature. The purpose of the paper is also to suggest changes for further expansion of performance measurement in Croatian public administration. Methodologically, the paper is based on legal analysis of the regulation in five sectors: financial management and control, state audit, strategic planning, internal organization and civil servants’ status, secondary documents analysis and questionnaire research results.