The ‘third hand’: Private sector consultants in public sector accounting change

Abstract

This paper explores the role of large private sector consulting firms in the promotion and implementation of public sector accrual accounting. By focusing on an early adopter of accrual accounting for its entire public sector, this research presents an analysis of the activities of large consulting firms in the process of a significant public sector accounting change. The role of consultants in the change is presented by analysing primary data extracted from archival sources and oral histories provided by a number of prominent actors classified as users of information (politicians), producers of information (bureaucrats) or accounting consultants. The role and impact of the consulting firms' actions can be better understood by applying concepts of non-coercive isomorphism and the interplay between self-interest and perceived public interest. The consulting firms are shown to have used phantom images to promote the case for accounting change. This was done with a zealous belief that bringing public sector accounting into line with private sector accounting was an inherently righteous objective.     

The ‘post-bureaucratic’ public sector organization. New organizational forms and HRM in ten UK public sector organizations

This paper evaluates the extent to which ‘post-bureaucratic’ organizational forms have been introduced to the UK public sector and the implications for human resource management policies and practices in the sector. The study draws from interview data at ten public sector organizations including local authorities, the National Health Service, the Civil Service, police authorities, broadcasting and transport. It concludes that certain structural changes have been made, but that older functional lines of authority still exist and thus post-bureaucratic claims are misleading. However, a harsher working environment has arisen for managers in these public sector organizations, with longer hours and a more complex working environment. Older certainties such as job security, a safe career path and seniority-based pay have all been eroded.     

Is the service sector different in size heterogeneity?

We examined whether significant differences in size heterogeneity exist between the service and the manufacturing industries by using PL exponents as the proxy for intra-industry size heterogeneity. For the purpose, we analyzed firm size distribution (FSD) and estimated the PL exponents, on the right tails of FSD, of the service and manufacturing industries in Korea for the period 2008–2012 using the Business Activity Survey dataset created by the Korean National Statistical Office As a result, we observed that the estimates of the PL exponents for the service industry are lower than those for the manufacturing industry (\(\upalpha _\mathrm{Service}<\upalpha _\mathrm{Manufacturing}\)) regardless of size variable, year, and dataset. This relationship may be related to the weaker negative relationship between the size and growth of the service industry, which made the slope of the PL distribution in the right tail of the FSD smoother. This finding implies that size heterogeneity may be more distinctive in the service industry than in the manufacturing industry. In addition, the PL exponents of sales were larger than those of assets and smaller than those of employees (\(\upalpha _\mathrm{Asset}<\upalpha _\mathrm{Sales}<\upalpha _\mathrm{Employee}\)) regardless of industry, year, and dataset. We also observed the PL exponents in the survived-firm dataset to decrease, compared to those in the all-firm dataset.     

Retirement timing in Europe: does sector make a difference?

This study uses Survey of Health, Ageing and Retirement in Europe data and event history analysis to determine the effect of sector of employment on retirement timing of older workers aged 50+ in 11 European countries. The findings suggest that older workers in the industrial and financial sectors retire earlier than those in the service sector.     

Institutional tensions and private sector promotion in Tanzania: whose agenda?

This paper examines the current phase of transition of Tanzania's economy from state-led to market-led development, and considers the impacts of this transition on technological capabilities. The focus is on the different agendas and practices which surround private sector promotion in Tanzania, and examines these from the viewpoint of three sets of actors: the state, aid donors and the private sector itself. It is argued that while there is a consensus that private sector promotion is the way forward for Tanzania to rebuild its industrial and technological base, there are differences of opinions between the main players and there are differences between what is said (the agendas) and what is done (the practice). Historical enmities and distrust between sections of the private sector also contribute to these differences. The conclusion identifies a possible emerging consensus and new alliances between African and Asian Tanzanian business interests that can have a positive impact on technological capabilities and industrial renovation.     

Towards more disorganised decentralisation? Collective bargaining in the public sector under pay restraint

While sector‐level collective bargaining can provide the institutional leverage to sustain and improve employment standards, a proliferation of disorganised local settlements may reduce its effectiveness. This article examines this proposition for local government in the UK, highlights the risks of a ‘destructive’ disorganisation of employment relations and calls for a renewal of articulation mechanisms between sector and local levels of collective bargaining.     

A resilient social economy? Insights from the community food sector in the UK

At a time of global economic and environmental crisis, academic and policy debates are re-emphasizing the potential of the social economy in providing an alternative development model that reconnects communities with their resource-base and enhances their ‘resilience’. The goal of this paper is to explore this potential through a focus on the practices and values of those who are concretely involved in the social economy. Based on data collected on five community food enterprises in Oxfordshire, UK, the analysis focuses on the perceptions of social entrepreneurs in relation to the ‘alternativeness’ of the social economy, its potential for expansion and its resilience. The research highlights the capacity of social entrepreneurs to empower local communities through a process of collective mobilization of local resources. Theoretically, this study generates new insights into the nature and meanings of resilience as a process of creation of more self-reliant communities of people, places, tools, skills and knowledge. From a policy and practice perspective, the paper raises the need for regional development strategies that capture the gains of these isolated initiatives, particularly in relation to their innovative capacity to create a shared vision that fosters synergies between local ecological, social and economic resources.     

Mission or money? Competitive challenges facing public sector nonprofit organisations in an institutionalised environment

• This paper exposes the impact of competitive grant funding on public sector nonprofit volunteer organisations, using institutional theory to explain developments within this sector. A conceptual model is developed from which five propositions are derived. Bushcare units, in experiencing institutional pressures, respond in ways that affect their culture, structure and routines, resulting in the possibility that their mission will be compromised. In the process of targeting competitive grants, preparing grant applications, managing increased reporting requirements and recruiting volunteers, Bushcare units should apply a mission ‘filter’ to ensure their mission is not compromised in the pursuit of money. Bushcare New South Wales (NSW), an Australian environmental organisation, provides an empirical illustration of the proposed conceptual model.

Copyright © 2007 John Wiley & Sons, Ltd.     

Innovation labs in the public sector: what they are and what they do?

This article is a first comprehensive attempt to globally map and analyse innovation labs (i-labs) in the public sector. The article analyzes theoretical reasons why i-labs are created in the public sector and tests these assumptions in practice. During the empirical study, thirty-five such organizations all over the world were identified. The research is based on a two-step approach: first, a comprehensive survey was carried out followed by an extensive in-depth interview with the managing figures of i-labs; eleven i-labs responded. The article finds support for the assumptions of external complexity, technological challenges, emulation, and legitimization as reasons behind the creation of i-labs.     

Have the lecturers lost their voice? Involvement and participation in the devolved Further Education sector

One of the key principles underpinning Further Education (FE) college ‘incorporation’ was the notion that good management resides only in the private sector. Hence, if decision-making responsibility were decentralized to local levels, FE managers would have the freedom to experiment with practices borrowed from the private sector such as TQM and HRM. Examining the validity of this assertion, this paper explores: the extent to which participative management approaches (central to TQM and HRM) have been adopted in FE; the antecedents that explain the approach taken; and consequences of the emergent approach. In the event we found no evidence of participation beyond the perceptions of some members of the Senior Management Team (SMT). While obstacles to a more participative approach included the stringent funding regime, work intensification, proletarianization, casualization, remoteness of the SMT and general management competence, role-overload at middle management level was found to be particularly influential. A non-participative management style was also seen as deleterious to the functioning of the college as senior managers were failing to draw on repositories of creativity and expertise lower down the organizational hierarchy.     

A Dawn of Convergence?: Third sector policy regimes in the ‘Anglo-Saxon’ cluster

Abstract

Since the 2008 financial crisis, the third sector policy and regulatory regimes in the ‘Anglo-Saxon cluster’ have been subject to considerable policy churn. Comparing the reforms in the ‘meta-policies,’ regulations and financing in England, US, Canada and Australia, this analysis identifies both significant policy convergence and divergence. A new ideational landscape has emerged that is dominated by a focus on transparency, impact and social innovation. Convergence is not the whole story, however. In particular, the overarching meta-policies are absent, increasingly weak or divisive, suggesting a future characterized by the sporadic intervention of parochial politics and the likelihood of increased difference.     

HRD practices in local private sector companies and MNC subsidiaries in Australia, 1996–2009

This study charts human resource development (HRD) practices in locally owned private sector companies (APS) and subsidiaries of overseas-headquartered multinational companies (MNCs) located in Australia from 1996 to 2009.Using data from three iterations of the CRANET Australia survey, the research analyses the degree of difference between APS and MNCs, tests whether HRD practices are increasing in sophistication and if there is convergence or divergence between the two groups. The influence of company size and industry category is also explored as separate independent variables. The results suggest a decreasing overall level of HRD sophistication, that MNC subsidiaries are generally operating at a higher level of sophistication than APS companies and that there is directional, but not final, convergence.     

Employer preferences,collective agreements and the Australian resources sector: a paradox of limited commodification?

There is a commonly held view that firms in high‐wage/skill‐intensive sectors will tend to provide wages and working conditions that are above market‐clearing levels. This article empirically examines this claim by analysing the content of all collective agreements concluded in the resource sector in Australia after the enactment in 2006 of the Workplace Relations Amendment (Workchoices) Act. This legislation gave employers unprecedented ability to place downwards pressure on employee entitlements. In the resource sector, however, the quantitative results indicate that firms maintained, in the main, substantive standards but used extensively key regulatory provisions to gain an unprecedented level of control over both functional and numerical flexibility.     

Does lending behaviour of banks in emerging economies vary by ownership? Evidence from the Indian banking sector

While much has been discussed about the relationship between ownership and financial performance of banks in emerging markets, literature about cross-ownership differences in credit market behaviour of banks in emerging economies is sparse. Using a portfolio choice model and bank-level data from India for 9 years (1995–96 to 2003–04), we examine banks’ behaviour in the context of credit markets of an emerging market economy. Our results indicate that, in India, the data for the domestic banks fit well the aforementioned portfolio-choice model, especially for private banks, but the model cannot explain the behaviour of foreign banks. In general, allocation of assets between risk-free government securities and risky credit is affected by past allocation patterns, stock exchange listing (for private banks), risk averseness of banks, regulations regarding treatment of NPA, and ability of banks to recover doubtful credit. It is also evident that banks deal with changing levels of systematic risk by altering the ratio of securitized to non-securitized credit.     

Co-operation and co-opetition as open innovation practices in the service sector: Which influence on innovation novelty?

This study aims to identify the influence of co-operation practices and the use of internal and external information sources on the propensity of firms to introduce new to the market innovations in the service sector. Data come from the 4th Community Innovation Survey, which covers the years 2002-2004. A logistic regression model is applied with the degree of novelty of good/service innovation as dependent variable. The analysis of the parameter estimates shows that firms provided with information from market sources and from internal sources as well as firms involved in science-based collaboration for their product innovations are more likely to introduce new to the market innovations, whereas information coming from competitors seems to have a negative influence on the degree of novelty of innovation.     

What happened when the Americans took over Britain's electricity industry? Exploring trans-national sector effects on employment relations

Pressures stemming from the country of origin are seen increasingly as the single most important influence on multinational companies, and American managements are famed particularly for their marked preferences for non-unionism and for pay systems linked to performance. The dramatic inflow of American investment into the British electricity industry from 1996 onwards provides an opportunity to observe the development of these influences. In fact, employment relations reform was not driven by the concerns of American owners to any significant degree, but tended to follow patterns already very well established in the utilities sector in the UK. This can only be understood in the context of similar developments in sector-level governance in both countries, and the processes through which this drove international strategies at higher levels, affecting investment and organizational structure.     

Management strategies in the Czech telecommunications sector: a comparative study of Český Telecom and T-Mobile

This article compares employment relations (ER) strategies at the incumbent fixed line Czech telecommunications company (TelCo), ?eský Telecom (?T), and the T-Mobile subsidiary, T-Mobile Czech Republic (TMCZ). It considers the extent to which the firms were able to introduce Western-style HRM practices within the context of three changing dynamics. First, the collapse of communism in the former Czechoslovakia was followed by rapid economic liberalization and privatization in the Czech Republic. Second, telecommunications sectors worldwide were subject to deregulation and the rapid diffusion of new technologies. Third, fixed line and mobile TelCos were subject to differing challenges and opportunities. The article uses path dependency, institutionalist and strategic human resource management (SHRM) related theories to assist in this analysis. It concludes that by 2005 the introduction of Western-style HRM practices into the Czech telecommunications sector appeared less constrained by former institutional and historical constraints. TMCZ's ER policies were further influenced by its parent firm's transnational strategies that sought to coordinate better its subsidiaries and create a ‘global’ brand. Despite the differing circumstances of the fixed line and mobile sectors, by 2005 ER practices and strategies at the two firms were to an extent converging, as ?T continued to cut costs and TMCZ adjusted its strategies to better accommodate a saturated market. Given these changes the article postulates that the Czech telecommunications sector has now shifted towards a mature transformation stage, as ER strategies increasingly reflect Western-based SHRM practices and concepts.     

The role of the public sector in the provision of housing supply in Turkey, 1950–2009

This study examines the changing role of the public sector in Turkey with regard to housing provision since 1950, and particularly since 2000, and seeks to clarify how public intervention has affected housing provision and urban development dynamics in major cities. Three periods may be identified, with central government acting as a regulator in a first period characterized by a ‘housing boom’. During the second period, from 1980 to 2000, a new mass housing law spurred construction activity, although the main beneficiaries of the housing fund tended to be the middle classes. After 2000, contrary to emerging trends in both Northern and Southern European countries, the public sector in Turkey became actively involved in housing provision. During this process, new housing estates were created on greenfield sites on the outskirts of cities, instead of efforts being made to rehabilitate, restore or renew existing housing stock in the cities. Meanwhile, the concept of ‘urban regeneration’ has been opportunistically incorporated into the planning agenda of the public sector, and — under the pretext of regenerating squatter housing areas — existing residents have been moved out, while channels for community participation have been bypassed.     

Poachers and gamekeepers: processes of class-based organisational closure and usurpation in Sri Lanka’s emerging private sector

In a qualitative study based on 25 interviews, we examine highly skilled workers’ accounts of class-based closure in emerging occupational sectors in Sri Lanka. Our findings reveal holes in the entrance criteria firms demanded to secure their elite status. Highlighting how individuals who were excluded at junior levels negotiate entry at mid/senior levels, we show how ‘poachers turn into gamekeepers’, illuminating the dialectical relationship between exclusion and inclusionary usurpation. We contextualise organisational closure, highlighting the influence of wider societal effects on the process.