Roundtable

Abstract

This paper introduces a selection of papers on contemporary developments in public sector management which come from a research conference held in 2004. This paper starts by introducing the New Public Management (NPM) and governance paradigms as alternative high level approaches. Such approaches are well known in the UK and are also of international interest. It then considers whether there are further possible reform paradigms not captured by these rather State centric models. The paper then briefly introduces each of the papers selected from the Conference proceedings. These papers contribute to the literature on the NPM, on the NPM versus governance debate and also generate and apply novel theoretical perspectives.     

New public management and organisational commitment in the public sector: testing a mediation model

This paper focuses on the attitudes of learning professionals towards New Public Management (NPM). In a survey of the UK further education sector (n = 433), NPM beliefs were found to be positively associated with both affective and normative organisational commitment. However, as expected, NPM beliefs were not found to be related to continuance organisational commitment. The results also show that although perceived organisational support mediates the relationship between NPM beliefs and affective organisational comment, it is only a partial mediator of the relationship between NPM beliefs and normative organisational commitment. The theoretical and practical implications of these findings, and potential directions for future research, are discussed.     

NPM Can Work: An optimistic review of the impact of New Public Management reforms in central and eastern Europe

Abstract

This article reviews the New Public Management (NPM) literature in central and eastern Europe (CEE) with the aim of assessing whether reforms have ‘worked’. Increasingly, academics have tended to argue against the suitability of NPM instruments in this region. To understand the impact of this much-debated policy, we first propose a classification of the impacts of NPM geared to the realities of central and eastern European states. Then, we use this classification to carefully review empirical studies across the region over the past 10 years. Unlike much of the recent academic literature, we suggest that NPM can work. NPM policy has not always been successful to the extent expected and promoted, but there is enough evidence to show that some of the central ideas in NPM have led to improvements in public service organization or provision across different organizational settings. An adequate degree of administrative capacity, sustained reform over time and a ‘fitting context’ are the main factors that can tip the scale for the success of these management instruments. The article provides a fresh and transparent assessment of a major administrative development in a growing region with implications for other parts of the world that experience similar challenges and opportunities.     

Notes on contributors

Abstract

Today, many public professionals feel estranged from the policy programmes they implement; that is, they experience ‘policy alienation’. This is of concern as, for satisfactory implementation, some identification with the policy is required. We conceptualize policy alienation based on the sociological concept of work alienation, and show how this can be used in policy implementation research. Studying a Dutch case of professionals implementing a new work disability decree, we observe how NPM practices increase policy alienation because of a perceived dysfunctional focus on efficiency and results. A large number of policy changes and stricter implementation rules further increased policy alienation.     

The spirit of management reforms

Abstract

The article reports on a comparative case study of the administrative cultures of the Australian (Queensland) and the Hungarian governmental administration. The basic finding of the study is that the culture profiles of the two administrative (sub-)systems are surprisingly similar. This finding is used to conclude that the organizational level of administrative culture is unlikely to play a significant role in shaping New Public Management (NPM) reforms. Moreover, this conclusion sheds a cloud of doubt onto the claim frequently found in NPM literature that NPM reforms involve a replacement of ‘outmoded, bureaucratic thinking’ with a ‘culture of efficiency and entrepreneurship’.     

Conceptualizing dysfunctional consequences of performance measurement in the public sector

ABSTRACT

Performance measurement (PM) has become increasingly popular in the management of public sector organizations (PSOs). This is somewhat paradoxical considering that PM has been criticized for having dysfunctional consequences. Although there are reasons to believe that PM may have dysfunctional consequences, when they occur has not been clarified. The aim of this research is to conceptualize the dysfunctional consequences of PM in PSOs. Based on complementarity theory and contingency theory we conclude that dysfunctional consequences of PM are a matter of interactions between PM design and PM use, between control practices in the control system and between PM and context.     

Identifying barriers to the application of standardized performance indicators in local government

Abstract

Local governments in many countries are implementing administrative reforms within the framework of New Public Management (NPM) in order to improve the quality and productivity of public services. The use of performance indicators and benchmarking facilitates evaluation of efficiency regarding the provision of such services and favours the acquisition of better practices. The problems that may arise in the introduction of performance indicators in local government mainly concern the consensual design and standardization of indicators for various entities, the method to be used for calculations and the selection of analytical criteria to be applied to the values obtained. In this article, we identify obstacles that may be encountered in achieving a standardized definition of performance indicators within local government and, on the basis of learning from the practical experience of several large city councils in Spain, formulate strategies to resolve these problems, taking note of the viability and real efficacy of the solutions adopted.     

Public Management in Developing Countries

Abstract

Ten years ago public management in developing countries was reaching the end of a period in which the ‘Washington consensus’ model of a small state was dominant, with downsizing and privatization as its key mechanisms. With reform programmes in disarray and NPM an inadequate replacement, the subsequent decade has been one of ‘reculer pour mieux sauter’, with management dislodged from centre stage by a concern with the domestic and political determinants of reform. We have also seen the return of a poverty agenda, featuring education and health in central roles, to which management specialists have yet to respond fully. This review suggests the need for public management specialists to absorb a political analysis before returning to perennial management concerns.     

Multiprofessional Cooperation and Accountability Pressures

Abstract

This article examines how multiprofessional healthcare teams, working as a post-New Public Management (post-NPM) reform, respond to accountability pressure resulting from the implementation of NPM reforms. The team members use three strategies to respond to this pressure: responsibility avoiding that results in conflict; responsibility ignoring that results in parallel work and responsibility sharing that results in cooperation. Depending on how the professionals respond to different contextual factors, the choice of strategies can either foster or inhibit cooperation in multiprofessional teams. Achieving holistic patient care is threatened when accountability pressure increases for teams that have not yet developed their internal routines of cooperation.     

NPM merger mania Lessons from an early case

A central doctrine of NPM requires the adoption of commercial management techniques to address the espoused goals of saving money and improving collaboration and service co-ordination. This article examines the evidence base for NPM mergers and uses study data to explain how two ingrained features of professional work helped to produce unintended outcomes at an early UK case involving a specialist mental health provider and an acute trust. The emergence of a de facto mental health trust within the merged entity arose from senior professionals' capacity to ‘buffer’ the work of colleagues from the rationalizing spectre of the merger. The persistence of ‘loosely coupled’ practices and structures restricted improvements in collaboration and service co-ordination. It is argued that these two enduring characteristics of professional organization will shape the outcomes of future NPM mergers in mental health care e.g. the creation of social care trusts and mental health ‘super-trusts’) and in other fields such as higher education.     

Reward Contingency, Unemployment, and Functional Turnover

Based on the valence model of expectancy theory and the Cornell model of job satisfaction, this field study investigated the relationship between reward contingency, unemployment, pay satisfaction, job satisfaction, and functional turnover. The latter of which separates turnover into four categories: poor performing leavers, good performing leavers, poor performing stayers, and good performing stayers. It was conducted with a geographically dispersed sample of sales representatives (i.e., from 25 states and 66 cities), resulting in unemployment rates that ranged from 2 percent to 12 percent. The sales representatives were employed by four companies that paid different combinations of salary and commissions, ranging from mostly salary and little commission to 100 percent commission. A discriminant analysis accounted for 62 percent of the variance in functional turnover and achieved an overall classification hit rate of 67 percent across the four functional turnover groups. Follow-up univariate analyses indicated that objective reward contingency (R²=.34), state unemployment (R²=.11), state sales unemployment (R²=.08), education (R²=.09), and tenure (R²=.08) accounted for most of the variance in functional turnover. Perceived reward contingency, pay satisfaction, job satisfaction, age, and gender were not related to functional turnover.     

What Does it Take to Make Surprises Less Surprising?

Abstract

It is not unusual for public management systems to be ‘caught by surprise’ when events unfold which had not been anticipated in policy processes. An empirical example from New Zealand is used to show the contribution complexity theory has to make to helping public management scholars and practitioners understand the origin of surprises and anticipate them. This illustrative case identifies a number of unforeseen events in tertiary education, their origins and effects through a complexity-informed lens. These self-organizing changes can be the source of unwanted surprises (unknown unknowns) which require complexity-compatible approaches to their anticipation and management.     

New Public Management and Citizens' Perceptions of Local Service Efficiency,Responsiveness, Equity and Effectiveness

Abstract

We examine the relationship between a range of new public management (NPM) practices and citizens' perceptions of service efficiency, responsiveness, equity and effectiveness in English local governments. We find that public–private relationships have a negative relationship with citizens' perceptions of all four dimensions of local service performance, but an entrepreneurial strategic orientation exhibits a positive association with all four. Performance management is also likely to positively influence rather than negatively influencing citizens' perceptions of local public services. Further analysis revealed that the impact of NPM practices varies according to the level of socio-economic disadvantage confronted by local governments.     

LIFE STYLE-WORK GROUP STRUCTURE-TASK CONGRUENCE AND JOB SATISFACTION AND PERFORMANCE: A THREE-DIMENSIONAL CONTINGENCY MODEL

A Three -Dimensional contingency‘theory’of organizational behaviour was used to predict job satisfaction and performance in a sample of registered representatives of a national securities firm. Contingency variables composed of individual life style orientation, perceived work group structure and perceived job complexity did not predict a significant amount of variance in the dependent measures. Cautions concerning the assumed universal superiority of contingency predictors over simpler formulations are discussed.     

Public Management as a University Discipline in New European Union Member States

Abstract

Many market-type mechanisms were introduced in the public administration reforms in Central and Eastern Europe (CEE). Therefore public administration higher education in CEE should prepare not only classical public administrators but also public managers to operate in this new environment. This paper summarizes our research results on three new Central European members. The focus is on the scale of public management (PM) programmes, on the proportion of PM courses in the curricula of accredited PM programmes and on the dominant teaching approaches.     

Configurations of New Public Management reforms and the efficiency,effectiveness and equity of public healthcare systems: a fuzzy-set Qualitative Comparative Analysis

ABSTRACT

Fuzzy-set Qualitative Comparative Analysis identifies configurations of New Public Management (NPM) reforms (privatization, consumerism, performance management, and corporatization) associated with perceptions of improvements in healthcare efficiency, effectiveness and equity in 14 European countries. Although these outcomes are pursued concurrently, no combination of the considered reforms appears to support success or failure across the board and the inter-relations between reforms shape their effects. Three NPM reform profiles are evident in Europe; (1) strong reformers, adopting a comprehensive package of reforms that are perceived to perform better than (2) partial reformers, with (3) limited reformers also doing better than partial reformers.     

Public management reform in Denmark

Abstract

This article discusses public management reform in Denmark. First, the institutional features of the Danish public sector are introduced. Danish ministries enjoy a considerable amount of autonomy that makes central co-ordinated public management reform challenging. The second part of the article outlines the contents of public management reform and provides an overview of the major reform initiatives of the last three governments. Denmark's reforms are characterized as a mixture of strategies for modernization and marketization, but with most emphasis on the former rather than the latter. Together with successive governments, the Danish Ministry of Finance has argued strongly for efficiency, economy and effectiveness as key values and they have been institutionalized in modernization efforts. Denmark should now be considered a country where NPM reforms have taken a firm hold.     

Protecting expatriates in hostile environments: institutional forces influencing the safety and security practices of internationally active organisations

Abstract

The operations of internationally active organisations continue to encroach on hostile locations that are vulnerable to the negative consequences of crises such as political upheaval, terrorist attacks or natural disasters. Yet research into how firms ensure the physical and psychological safety and security of international staff in these locations is limited. This article reports an empirical study exploring the expatriate safety and security practices of 28 internationally active organisations from three industries that commonly operate in hostile environments. We unveil starkly different approaches across the three industries, and label these approaches ‘regulatory’ (mining and resources), ‘informal mentoring’ (news media) and ‘empowering’ (international aid and development). We use institutional theory to propose that these configurations reflect legitimacy-seeking choices that these organisations make in response to the various institutional environments that affect each sector. Our results provide a platform for initial theory building into the interrelated elements of organisations’ safety and security practices, and the institutional factors that shape the design of these.     

Threats to new product manufacturability and the effects of development team integration processes

The thesis of this article is that new product manufacturability (NPM) is influenced by certain challenges inherent in new product development (NPD), and by efforts to integrate manufacturing and other functional concerns into the product design process. This research tests the direct and interacting effects of these influences via a survey of 91 completed NPD projects representing a variety of manufacturing industries. While most hypotheses were supported, the analysis also provides some surprising findings. Project complexity and increased levels of design outsourcing are associated with poorer NPM. Product newness and project acceleration are associated with better NPM. All the measured aspects of development team integration are associated with better NPM, including intense manufacturing involvement, a collaborative work environment, supplier influence on the product design, and strong management support in the project. Furthermore, certain integration variables exert moderating effects on relationships between technological uncertainty, product newness, design outsourcing, project acceleration and NPM. By exposing these relationships this research extends the theory of product development influences on manufacturability beyond a focus on engineering-oriented approaches (e.g., design-for-manufacture). The results suggest that larger managerial issues must be addressed and that more contingency-oriented research is needed to explore the benefits and limitations of development team integration processes.     

Identifying the Predictors of Employee Health and Satisfaction in an Npm Environment

Abstract

The Demand-Control-Support (DCS) model is investigated in the context of police officers working within an organization that has relatively widespread uptake of New Public Management (NPM) practices. A survey of 479 police officers from two geographic regions was undertaken and the results indicate that the DCS offers a simple, yet powerful, framework for identifying the conditions to be managed in an NPM-oriented environment. Job control and work-based support predict all four target variables, strengthening the view that decision-making latitude and support from supervisors and colleagues represent critical resources for promoting the well-being, satisfaction and commitment of public sector employees.