Caught in an evaluatory trap: a dilemma for public services under NPFM

This paper presents a challenge to public sector managers, policy-makers and interested academics. Drawing on the findings of previous international comparative studies of new public financial management (NPFM) reforms, it concludes that public services and their providers are caught in an ‘evaluatory trap’. The continual promotion of NPFM reforms, despite their evident repeated failure to meet specified achievements, is argued to be generating a cycle of ever-decreasing public services at ever-increasing costs per service unit. As the legitimacy of public services increasingly rests on the need to be seen as efficient and effective and as definitions of efficiency frequently demand adoption of the latest set of NPFM reforms, it follows that the future for public services is in question.     

The perceived importance of HR duties to Danish line managers

Today, HR scholars widely acknowledge that realising HRM requires the involvement of all managers and that the personal motivation of line managers plays an important role in their successful involvement. Yet, previous research has neglected to study how line managers rate the importance of particular HR duties and how the importance assigned to HR duties varies across managers. Based on a survey of 1,500 Danish managers, we find that ‘motivating others’ is considered the most important HR duty whereas ‘team building’, ‘handling conflicts’ and ‘coaching’ are considered the least important HR duties. Female top managers in the public sector exhibit the greatest interest in HR whereas men at lower managerial levels in the private sector give lowest priority to HR work. We conclude with possible explanations for the observed differences in a Danish context and beyond and provide suggestions for facilitating managerial involvement in HRM. In doing so we are well aware that the Scandinavian model of HRM in general and the Danish implementation in particular may represent a unique frame for the results.     

The take-up of human resource management by mainstream companies: key lessons from research

Drawing upon a major British study involving over 300 interviews in fifteen case organizations from the private and public sectors, this paper draws out the essential elements of recent changes in industrial relations. In particular, it examines the significance of human resource management initiatives for the practice of industrial relations. The main thrust of the paper examines the ways, and the extent to which, mainstream organizations have transposed and absorbed concepts and practices from the highly publicized ‘lead cases’ into their own routines.

The central argument has three component elements: a whole array of managerial initiatives was launched in the period covered by the research; many of the more far-reaching of these were devised and driven from outside personnel or industrial relations management; cumulatively, these initiatives have impacted on the conduct of industrial relations.

A key concept which is identified and explored is that of HRM/IR ‘dualism’. This is the attempted bolting-on of HRM techniques and language alongside prevailing, albeit to some extent diluted, IR proceduralism. Many of the significant changes in labour management practices stemmed from initiatives taken by general managers, manufacturing directors and line managers. Transformative initiatives in the guise of culture change and structural change often carried profound implications for industrial relations even though these initiatives would not traditionally be regarded as part of industrial relations proper.     

Implementing the third way

This article examines the transfer of NPM strategies by comparing Service Charter initiatives in the United Kingdom, United States and Australia. These three countries, together with Canada and New Zealand,are partofwhathas beendescribedas the ‘core’ new public management (NPM) policy community (Common 1998). Service Charters are an NPM strategy intended to change the culture of public service delivery to focus on the needs of the users, identified as ‘clients’ or ‘customers’. The objectives are to make service providers more responsive to users by guaranteeing specific standards for service delivery, providing a substitute for competition and a benchmark for measuring service quality. The first section examines the historical and political context of the development of the Citizen's Charter and Service First programmes in the UK, customer service plans in the USA and Government Service Charters in Australia. The second section explores the similarities and differences between these charter initiatives based on analysis of public documents. There is evidence of convergence at the ideological level as managerial values underpin the service charter frameworks in all three jurisdictions (Walsh 1994; Pollitt 1995; Kettl 1997). Despite drawing from a similar toolkit influenced by private sector techniques, significant differences between the country contextshaveresultedindivergent strategies. Timing in the three countries examined suggests that national politics rather than global policy convergence is more significant in explaining the development of service charters. This case study provides evidence of policy transfer rather than policy convergence (Common 1998). The final section considers the limitations of the customer service model. Monitoring quality iscentral to theprogrammes in all three countries. Performance monitoring is essentially a quantitative methodology that requires criteria and indicators for measuring the quality of service delivery and programme outcomes. Two problems are considered. The first is the difficulty of specifying and measuring service quality. The second is that quality indicators derived from services marketing and management research do not take into account the characteristics of public services.     

Relevant and Preferred Public Service: A study of user experiences and value creation in public transit

When public service success is dependent upon creating value that attracts users, public managers can benefit from adopting private sector principles. This article draws on the theory of attractive quality and strategic management research to focus on the theoretical and managerial implications of how organizations’ resource allocations affect user experiences. The present study shows how public transit organizations’ achievement of twenty-five different service requirements affected their offerings’ relevance and preference among 930 users. This article increases the understanding of how strategic choices and prioritization between various service requirements affect both the effectiveness and efficiency of (public) service offerings.     

Political Authority and Bureaucratic Resilience

Abstract

Consumerism and choice have become prominent ideas in the design and delivery of public services. Often perceived as a way to improve the quality and value of public services, potential downsides and areas of concern that relate to a consumerist approach are frequently ignored. This review essay takes a critical stance on the application of a consumerist discourse to public service provision and management by exploring four key areas of concern: definitional problems, questions about the concept's transferability from a private to a public sector setting, the problematic nature of ‘choice’, and difficulties associated with implementing consumerist ideas within public service contexts..     

Strategy in the Public Sector: Management in the Wilderness

ABSTRACT The central question addressed in this paper is ‘Why have organizational strategies emerged in the public sector?’ Two broad answers are suggested. First, ‘strategies’ profile the organization through identifying aims, outputs and outcomes. Public services must, now, provide such transparency in order to secure on‐going funding from government bodies. Once ‘strategies’ are being produced, they also offer an organizational vision that potential additional funding agencies can buy into (with both commitment and money). And public services are short of resources. Second, ‘strategies’ signal greater devolved responsibility in the public sector for both acquiring resources and achieving results. They enable the inclusion of managerial priorities and values in setting the direction of public services. And politicians desire more control over the professionals that dominate public services whilst, simultaneously, wanting to make them more responsible for outcomes. This article explores the growth of strategic planning in a particular area of the public sector – the national parks. Strategies as ‘dormant documents’ and strategies as ‘funding pitches’ are discussed. It is suggested that, in the public sector, strategies should be the object of strategy.     

Individualism and collectivism: into the 1990s

New, employer-led initiatives in the management of human resources are said to have pitched the emphasis towards the ‘individualistic’ rather than the ‘collectivistic’ aspects of the employment relationship. The marginaliza-tion of trade unions and collective bargaining which this has entailed are but two (albeit fundamental) facets of a wide-ranging set of issues and repercussions. Individualization of employment policies throws up dilemmas and unresolved challenges for managers, trade unions and employees.

In embarking upon a major new empirical research project it has become necessary to revisit and review the utility of the currently available literature. In particular, how well would the traditional approaches to modelling individualism and collectivism cope with the new directions taken by recent managerial initiatives? The results of this analysis contribute the heart of this article. It is suggested that previous approaches ignore key dimensions of change which managers are currently pursuing. A new set of categories is proposed for understanding the mix of individual and collective elements in current developments. It is argued that these more accurately reflect current issues and tensions in management strategy.     

Managerial Behaviour Research in Private and Public Sectors: Distinctiveness, Disputes and Directions

A managerial behaviour approach is identified that has sought to understand managerial work by analysing the day‐to‐day behaviour of individual managers: what do managers do? It is argued that this approach is distinctive and that its distinctiveness is valuable and has not received adequate attention. The distinctiveness is defined by its research background, object, focus and methodology. The managerial behaviour approach has developed from research over nearly fifty years: long enough for there to have been a variety of disputes about what has, or ought to have been, achieved. The relevance of these criticisms and what later research has done to meet them is assessed. Recent research directions are identified and suggestions are made for building on the distinctiveness. It is concluded that the institutional embeddedness of managerial work should attract further scholarly attention, and that the contribution of researchers in the public sector, who come from a differentdisciplinary background, needs to be integrated with that of researchers from organizational behaviour as they can contribute new conceptual approaches, which could help to revivify this field of research.     

Comparing the impact of management on public and private sector nurses in the UK,Italy, and Australia

The research examined the impact of management upon employee outcomes (perceptions of discretionary power, well-being, engagement, and affective commitment), comparing public and private sector nurses in Australia, the United Kingdom, and Italy. Overall, 1,945 nurses participated in a self-report survey within these core- and laggard-New Public Management countries. While management influenced employee outcomes for each country, there were significant differences between the public and private sectors, with private sector nurses reporting higher perceptions of outcomes. Importantly, nurses’ engagement was affected by management practice for each country. This study raises important implications for nurse managers, especially public sector managers, described within.     

Getting Trapped in the Suppression of Exploration: A Simulation Model

The benefits of strategically balancing exploitation and exploration are well documented in the literature. Nonetheless, many firms tend to overemphasize exploitation efforts, a situation commonly referred to as the ‘success trap’. Previous studies have attributed this behaviour to managerial incompetence or myopia. However, some management teams appear to adequately recognize the exploration need, while not being able to bring about the required strategic change. We draw on system dynamics modelling to investigate this phenomenon. A simulation model is developed and then the behaviour of a selected firm is replicated to uncover the underlying processes. As such, we develop a process theory of the success trap at the managerial level, coined the ‘suppression process’. This process theory describes and explains how the interplay between top managers, board members, and exploitation–exploration activities can trap the firm in the suppression of exploration.     

Comparative performance appraisal practices and management values among foreign and domestic firms in India

Countering culture-based analyses indicating homogeneity in Indian management practices, this empirical study compares performance appraisal practices and management values in India by firm ownership. Differences in Indian private investor corporations, public sector enterprises, foreign/joint ventures and private family businesses are examined to assist managers to adapt selectively to firms in the changing Indian economy. Theoretical and managerial implications, as well as future directions for research are discussed.     

PERFORMANCE-RELATED PAY FOR TEACHERS: An examination of the underlying objectives and its application in practice

Performance-related pay (PRP) is being introduced for schoolteachers in England and Wales at a time when policy makers are concerned with the ‘mission to modernise’ and the requirement for ‘change’ to take place in the public sector (Cabinet Office 1999: 4). In a number of recent government publications, public sector pay has been heralded as an important mechanism that will ensure public services are ‘efficient’ and of ‘high quality’. Kessler and Purcell (1992) examine the managerial objectives underlying the current application of PRP in organizations and provide a useful framework to explore and evaluate PRP systems. Their framework has been adopted to consider the implications of implementing PRP for teachers.     

Municipal corporatization in Germany and Italy

Abstract

During the last few years, the local government sector in European countries has undergone a number of important changes. Among the various reform initiatives has been the externalization of public services, such as corporatization, contracting-out, public–private partnerships and privatization. The key goal of this article is to describe and explain the evolution of local public services provision in the two selected countries, with a particular focus on ‘corporatization’. The article seeks to draw a picture of the actual municipal landscape with the administrative core and its various corporations. Furthermore, it will discuss the reasons for corporatization trends and their impact on the corporate governance structures of municipalities in Germany and Italy.     

Is Ulrich's model useful in understanding HR practitioners' roles in non-western developing countries? An exploratory investigation across private and public sector organizations in the Sultanate Kingdom of Oman

This study set out to explore whether Ulrich's model is useful in understanding HR roles in non-western developing countries such as Oman. The study surveyed a random sample of 780 HR practitioners, line managers and employees from public and private sector organizations. In addition 12 HR practitioners and managers were interviewed to supplement the data collected from the survey. The findings indicate that HR practitioners in Oman perform all the roles. However, ‘strategic partner’ is the least performed role. The findings also indicate that HR practitioners in the private sector are more likely to perform all the five roles to a greater extent than their counterparts in the public sector. We also found partial support for our proposition that HR practitioners in the public sector would play more ‘operational’ roles (e.g. employee advocate or functional expert) than ‘strategic’ roles (i.e. strategic partner or HR leader). The study revealed that Ulrich's model is robust enough to help in the understanding of HR roles in a non-western, developing country context. The findings are discussed within the context of institutional and cultural frameworks. The paper argues for more research to improve the understanding of how socio-economic and cultural factors influence HR roles and how they are performed.     

Effects of performance measurement system inconsistency on managers’ role clarity and well-being

In this paper we explore the impact of PMS inconsistency on managerial role clarity and well-being. In addition, we investigate if problems with PMS inconsistency can be dealt with by convincing superiors to loosen their control reactions to variances, giving managers job autonomy and providing managers with support from superiors, peers and staff functions. Based on survey responses from 799 managers in one public sector organization and 187 managers in one private sector organization we conclude that PMS inconsistency has negative effects on managers’ role clarity and well-being. This situation does not improve if superiors practice loose control; on the contrary, it seems to make managers’ work situation worse. Job autonomy and support appear to be better coping methods since they have direct positive impacts on managers’ role clarity and well-being that counteracts the negative effects of PMS inconsistency.     

ORGANIZATIONAL CULTURE AND WORK GROUP BEHAVIOUR: AN EMPIRICAL STUDY

This paper reports on a research study about the organizational cultures of a number of textile manufacturing plants from both the public and the private sector in Ahmedabad, India. These plants were shown to vary along one aspect of their work-group behaviour, namely the rate of ‘loitering’ among loomshed workers. The concept of ‘culture’ is defined in terms of the shared beliefs, values, norms and traditions within the organizations. Methods of observation and informal open-ended interviews were used to identify elements and/or dimensions of organizational culture, which were subsequently measured through structured interviews with loomshed workers. The study shows a definite relationship between ‘culture’ and ‘loitering’; however, the critical elements of culture influencing loitering behaviour vary from public to private sector plants. The implications of the findings of the study for the plants under reference, for production organizations in general as well as for organization theory are discussed.     

Flexible Working Practices In the Public,Not-For-Profit and Commercial Leisure Sectors In SCotland

Public sector leisure managers in the UK have been struggling, since the extension of compulsory competitive tendering to leisure management in 1989, to reconcile the conflicts between becoming more consumer led and satisfying the needs of the ‘recreationally deprived’. Rationalization has ensured that a fundamental priority for managers has been the introduction of more cost-effective working practices. This article examines the diversity in employment practices across the three sectors of the leisure industry, that is, the public, not-for-profit and private sectors. The case study evidence presented found clear differences between the sectors. Although managers in not-for-profit leisure facilities have more freedom to use greater flexibility in employment practices as compared with their public sector counterparts, they are still somewhat constrained by having to meet the social objectives set by their Board of Directors. Private sector managers were found to be providing the highest proportion of full-time jobs, although they offered lower conditions of employment. This was made possible by the funding certainties created by regular monthly/annual customer memberships.     

Recruitment and retention in front‐line services: the case of childcare

This article highlights how problems of recruitment and retention in front‐line services create a particular challenge to traditional HRM models and solutions. Private day nurseries make an interesting example of the challenges facing managers in the service sector as the combination of a feminised workforce, a price‐sensitive service, public–private competition and state regulation create particular difficulties. We report on a study of 33 day nurseries involving interviews with managers and employees over an eight‐month period. Our findings show that childcare providers have to cope with recruitment and retention problems associated with high‐end interactive service provision compounded by gender segregation and small business characteristics. Our analysis of employer and employee perspectives examines labour market issues affecting recruitment, and categorises the reasons for staff turnover into internal ‘push’ factors, external ‘pull’ factors, outside factors and functional turnover.