Public Managers’ Skills Development for Effective Performance Management: Empirical evidence from Italian local governments

Performance management has become an important element of the reform agenda of public sector around the world. However, scholars and practitioners highlight that many public administrations do not manage performance very well. A ‘litmus test’ of the success of a performance-based reform is observing whether public managers use performance information to make better-informed decisions. Having said that, the aim of this article is to see whether public managers of Italian local governments in the Apulia region (the South of Italy) use performance information after the last performance-based reform (Brunetta’s Reform: decree No. 150/09). The learning purpose is analysed and discussed. The research may suggest scholars, practitioners and policy makers the routes for developing performance utilization in difficult organizational contexts where performance management systems do not work.     

Improving the green public procurement performance of Chinese local governments: From the perspective of officials’ knowledge

Green public procurement (GPP) is one of the crucial environmental policy tools for sustainability. Although GPP has been implemented in many developing countries, its performance is in urgent need of improvement. This study focuses on the perspective of procurement officials’ knowledge and develops a new conceptual model with direct and moderating effects to explore factors that may affect Chinese procurement officials’ GPP performance. Using data collected from 139 Chinese local government officials and employing hierarchical regression analysis, this study finds that procurement officials’ awareness of GPP implementation policies exerts a positive, direct impact on their GPP performance. Procurement officials’ receiving GPP training and working in local governments included in a mature China national sustainable community (CNSC) program can positively moderate the relationships between their awareness of GPP implementation policies and GPP performance. However, awareness of GPP-related regulations does not have the same effect. Meanwhile, even the mature CNSC program cannot exert a positive, direct impact on GPP performance. This study deepens the research on influence factors of GPP performance, the policy implications can be useful for policymakers in China and other developing countries.     

Identifying the impact of geographical proximity on spillover effect of FDI: The evidence from Indian local firms’ performance gains

This paper investigates the role of geographical proximity on FDI spillovers from foreign to Indian local firms. We use data set of the manufacturing firms between 1988 and 2018 in India, estimating the productivity based on Cobb–Douglas production function. For measuring geographical proximity, the coordinates of each firm, represented to as ‘latitude and longitude’, provided by Google maps geocoding API is used. To conduct spatial analysis, we adopted the revised ‘SINM’ (Spatial Industrial Network Model)’ with GMM estimator, and used firm based point spatial unit. The analysis, in particular, reveals that within 30 km–70 km distance the presence of FDI creates significant positive backward and negative horizontal spillovers, but gradually decaying as threshold increases. Meanwhile, the negative horizontal spillovers to Indian local firms located within industrial clusters turned to positive, and the positive backward spillovers more magnifies compared to non-clustered firms. Based on these findings, we suggested the several policy implications regarding the development of industrial cluster, FDI promotion policy, and location decision for foreign investors.     

Line managers’ AMO to manage employees’ performance: the route to effective and satisfying performance management

Abstract

Performance management systems are used to increase employees’ performance with the ultimate aim of increasing organizational performance. Organizations rely on line managers to implement performance management systems and to engage in a continuous process of goal-setting, feedback, coaching and performance appraisal with their employees. Drawing on the AMO theory, we predict that the effectiveness of performance management implementation will be a function of three factors. First, line managers should have the Ability to enact the activities that are involved in performance management. Secondly, they should be Motivated to perform these activities. Thirdly, line managers should have sufficient Opportunity to fulfill these activities on top of the demands from other organizational. If not, they could experience role conflict. We developed several cross-level hypotheses. The data came from 71 line managers and 318 employees working in Flemish education. Hierarchical linear modelling found that line managers’ AMO to implement performance management systems was positively related to employees’ satisfaction with the system. These relationships were mediated by employees’ perceptions that the performance management system is strong. A strong system signals that its features are salient across employees and that the system is clear and understood. This study has several theoretical and practical implications.     

The effect of mergers on firms’ costs: evidence from the HMO industry

We examine the effect of mergers on firms’ costs, using a national data set that contains information on both pre- and post-merger costs for firms in the Health Maintenance Organization (HMO) industry. By utilizing data on all HMOs that operated in the United States from 1985 to 1997, we observe enough mergers to obtain estimates of both short-run and relatively permanent merger effects. On average, we do not find evidence that mergers allowed HMOs to realize greater economies of scale or that mergers improved efficiency by shifting the cost function. On the other hand, mergers between HMOs that produce Medicare and other products are likely to create dis-economies of scope that increase costs.     

Does confidence enhance performance? Causal evidence from the field

We analyze the effect of self‐confidence on performance using data from top‐level professional biathlon competitions. We exploit this dual nature of the sport by using snow conditions affecting performance on the skiing track as exogenous variation in confidence on the shooting range. Using round‐level data on 254 competitions between 2009 and 2013, we show that the less confident athletes are, the worse their performance is on the shooting range. Effects for women are estimated to be generally smaller and less robust. We show that our results are not driven by fatigue or exhaustion specific to the competitive setting we analyze.     

Public employees’ psychological climates and turnover intention: evidence from Korean central government agencies

The psychological climate has been argued to influence employees’ work attitudes. However, despite the abundance of recent empirical studies on turnover intention, multiple psychological climate types as predictors of turnover intention have rarely been explored in the public management domain. This study used the four types of psychological climates – clan, developmental, hierarchical and rational – of the competing values framework, which is typically used to analyse organizational effectiveness. Challenging the assumption held in prior studies of linear associations between the psychological climate and turnover intention, this study examined U-shaped associations. Curvilinear associations are based on the rarely tested assumption that an overly biased psychological climate has a deleterious effect on turnover intention. The regression results corroborated a U-shaped association of clan and rational (market) climates with turnover intention but revealed a linear association for the hierarchical climate. These findings, determined using large-sampled data from Korean central government agencies, can advance the understanding of the psychological climate and turnover intention in public management.     

Learning about individual managers’ performance in UK pension funds: The importance of specialization

This study examines the performance of managers over time, as well as its persistence, taking into account both manager characteristics and market conditions. Applying parametric and non-parametric methodologies, we examine a sample of UK equity pension fund managers. Our results help to understand the importance of manager assignments in the industry and reveal the importance and benefits of management specialization. We find certain manager performance persistence, revealing that some managers are better than others and possess superior investment skills. Additionally, we find that managers achieve better results when they run a single fund or one investment-objective funds, which allows managers to focus on specific tasks. Nonetheless, manager performance varies with market conditions and highlights managers’ different skills. Specialist managers perform better in bullish markets, and generalists perform better in bearish periods.     

The role of interpersonal affect in performance appraisal: evidence from two samples – the US and India

The interpersonal affect, a li ke–dislike relationship between a supervisor and his/her subordinate, has traditionally been conceptualized as a source of bias in performance appraisals. However, some researchers have argued that the interpersonal affect may not be a bias, especially where it develops as a result of past performance. In this field study, using data from 190 supervisors in the US, and 113 supervisors in India, we delineate the relationship between interpersonal affect and performance ratings. In both samples, interpersonal affect and performance level were found to have significant effects on performance ratings. Results from the US sample indicated that raters are able to separate their liking for a subordinate from actual performance when a ssigning performance ratings, suggesting that the interpersonal affect does not operate as a bias in the appraisal process. Results from the Indian sample, however, suggest that supervisors inflate ratings of low performers, suggesting that local cultural norms may be operating as a moderator.     

Opening up the black box: a UK case study of top managers’ attitudes to their performance related pay

This paper examines the attitudes of the top managers within one large financial services organization in the UK to fixed and variable components of their compensation package. The rationale for performance-related pay for senior managers is to align their interests with those of the shareholders, but little is known about the views of top managers on the effectiveness of such incentives. The results suggest that the design of effective bonus systems is not just a technical issue: perceptions of market fairness with respect to the compensation package and the clear communication of goals are important in getting senior managers to focus on shareholder interests.     

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.     

Management and performance of Non-Profit Institutions: finding new development trajectories—evidence from Italy

This work tries to deal with Non-Profit Institutions (NPIs) recent challenges, addressing a potential response to the need of managerial approaches and schemes to improve the comprehension of the phenomenon. In particular, the main aim is to identify the prevailing trajectories on which to build a potential theoretical “virtuous” management model. In this perspective, using a statistical analysis on a small case study, the research proceeds to test the coherence of theoretical insights with a possible multifaceted pattern for NPIs in which professionalization, civic-engagement and accountability represent the three fundamental dimensions of what could be defined as “The Cuboid of NPIs Management”.

     

The cooperation strategies for the performance improvement in the cruise sea–land logistics: evidence from Italy

Quality & Quantity - This paper aims to measure the terminal’s performance in the cruise sea–land logistics using the methodology of stochastic frontier analysis. A 10-year study...     

Firms’ innovation performance and the role of the metropolitan location. Evidence from the European periphery

ABSTRACT

This paper assesses the role of metropolitan location in explaining firms’ innovation performance while accounting for other internal and external determinants of innovation. Using micro-level dataset and controlling for firm-specific, sector-specific and region-specific features, we identify a nuanced effect of location within metropolitan areas on the innovative performance of companies The results prove to vary for the different measures of innovation output of firms and in particular there is no metropolitan advantage detected for binary self-declared measures of innovations. The advantage is detected for the count-based quantity of innovation measures which is shown to critically depend on the higher performance of metropolitan-based firms in patenting and licencing. The interlinkages between location and firm-size matter and the results are asymmetric with particular benefits arising for micro-firms in their patenting and licencing.     

Using DEA for measuring teachers’ performance and the impact on students’ outcomes: evidence for Spain

This research contributes to the ongoing debate about differences in teachers’ performance. We introduce a new methodology that combines production frontier and impact evaluation insights that allows using DEA as an identification strategy of a treatment with high and low quality teachers within schools to assess their performance. We use a unique database of primary schools in Spain that, for every school, supplies information on two classrooms at 4th grade where students and teachers were randomly assigned into the two classrooms. We find considerable differences in teachers’ efficiency across schools with significant effects on students’ achievement. In line with previous findings, we find that neither teacher experience nor academic training explains teachers’ efficiency. Conversely, being a female teacher, having worked five or more years in the same school or having smaller class sizes positively affects the performance of teachers.     

Managerial mindset as the mechanism of the country-of-origin effect: evidence from Chinese multinational enterprises’ approach to employer associations

The country-of-origin effect (COE) on employment practices in multinational enterprises (MNEs) has become an important area of international human resource management research. However, research on the mechanisms of the COE, a fundamental and critical aspect of the country-of-origin phenomenon, is scant. This study seeks to empirically explore the mechanisms through which country-of-origin influences Chinese MNEs’ approach to host-country employer associations. Analysis of qualitative data from 13 Chinese MNEs revealed that country of origin affected the approach of Chinese MNEs to host-country employer associations in the form of transfer of managerial norms. It also revealed that it was the mindset of those home-country nationals who were key decision-makers at subsidiaries that enabled the COE in Chinese MNEs. This paper highlights the importance for future studies of international strategic human resources management to pay attention to micro-foundations of cross-border practice transfer and to incorporate analyses of managerial cognition in the investigation of MNEs’ management practices.     

Exploring the antecedents of municipal managers’ attitudes towards citizen participation

Meaningful and representative citizen participation depends greatly on administrators’ attitudes. This study examines antecedents of municipal managers’ attitudes towards citizen participation based on their perceptions of its likely contributions and costs. Using data from two American states – New Jersey and Pennsylvania – the research found that a manager’s professional identity and knowledge of successful peer group practices involving citizens influenced both perceptions. In addition, the research found that institutional factors such as red tape and city council diversity influenced a manager’s perceptions about the cost of citizen involvement. Theoretical and practical implications of these findings are discussed.     

Public servants’ workplace learning: a reflection on the concept of communities of practice

Workplace learning is not only for the purpose of improving work skills, but also of establishing linkages between different social resources. Scholars such as Lave and Wenger (Situated Learning: Legitimate Peripheral Participation, 1991) suggest that a community of practice (CoP) is formed by members’ common interests with a friendly informal atmosphere, within which the participants may feel free, to sharpen their skills and broaden their horizons. The concept of CoPs actually highlights the importance of using social resources to optimize the knowledge within the context of organization. However, because the learning situation is very informal, some scholars suggested that learning within a CoP may be too scattered to manage it well. For this study, the researchers use the concept of CoPs to examine public servants’ workplace learning and lay the focus on shared practices in the public sector in order to reflect on the concept of CoPs. The semi-structured interview method was employed, and most of viewpoints in this study were derived from 10 personnel departments in the public sector in Taiwan including 22 interviewees. The research supports the view that shared practices which are derived from the public servants’ daily official tasks are an important key to members’ informal learning. The concept of official tasks implies a compulsory atmosphere which enables related interactions to be compelled to happen. This will hopefully provide a solution for the loose discipline learning in CoPs.     

Predicting future financial performance of banks from management’s tone in the textual disclosures

Quality & Quantity - Predicting bank performance is important for investors and regulatory authorities. Previous research on non-financial firms has shown that augmenting the numeric...