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 times they are a changin’? transformative organizational innovations in financial services in the UK

Much of the management guru-based literature emphasizes the transformational capacity of organizational innovations (OIs). The excellence, quality and reengineering literature purports to abandon hierarchy, bureaucracy and management control; to eradicate conflict and instil an new team and quality-based ethos. Yet much remains unknown about how these OIs are operationalized. Here we question both theoretically and empirically the validity of such transformational claims by reference to our research within financial services. We argue that despite considerable changes, OIs remain both a condition of, and location for, the exercise of organizational power relations. Bureaucratic and hierarchical structures continue to pervade organizations. Work-related pressures and tensions abound concerning issues such as control over the quality versus the quantity of work output, work intensification and job insecurity. All of which impinge upon the performance of OIs, and belie notions of a ‘transformation’ of organizational cultures, structures or strategies.     

Psychological safety climate and workplace bullying in Vietnam’s public sector

The bureaucratic and impersonal nature of public management can fertilize workplace bullying and risks for psychological health and safety. Psychological safety climate (PSC) is an important indicator to reduce psychological hazards. Yet, there have been few studies conducted to examine the existence of PSC in the public sector in non-Western economies. This study examined the implementation of PSC and its effects on 274 employees from six branches of a Vietnamese public sector organization. The results suggest that senior management in organizations should consider positive work conditions and an effective system of policies, procedures, and practices for the prevention of psychosocial hazards.     

Gender representation and organizational size: examining opportunities for members’ involvement in membership organizations

Members are the most important stakeholders in membership organizations; their involvement can enhance organizational effectiveness, accountability, and legitimacy. Previous literature, however, has primarily explored these concepts by focusing on staff involvement or client participation. This paper examines the determinants of members’ involvement in membership organizations using cross-sectional data from Lebanese membership organizations. Primary findings suggest that members’ involvement is affected by the gender of leadership, internal fiscal capacity, and the size of the organization; small organizations, those led by women, and organizations with greater internal fiscal capacity are more likely to have greater participation by members.     

‘Managing successful change in the public sector’: a view from the consultants’ world

Our paper presents the results of a survey on the perceptions of 680 Italian public-sector consultants on the drivers of successful organizational change according to Fernandez and Rainey’s model. The results show that the consultants mostly confirm the model, though recognizing that the various drivers have different degrees of relevance. A clear vision and plan for change and the top management’s commitment are seen as central in change processes, whereas interestingly, resource availability and a comprehensive approach to change appear to play a less relevant role.     

What factors influence the organizational commitment of public sector employees in China? The role of extrinsic,intrinsic and social rewards

This study investigates the relationship between extrinsic, intrinsic and social rewards, and the organizational commitment of 239 Chinese public sector employees. Hierarchical regression analysis revealed that although variables included to measure extrinsic and social rewards were strongly related to organizational commitment, variables included to measure intrinsic rewards had limited influence. These findings suggest that the antecedents of organizational commitment in the Chinese public sector are significantly different from those in the Chinese private sector and public sector organizations in the West.     

‘Intended’ and ‘implemented’ HRM: the missing linchpin in strategic human resource management research

We argue that inconclusive findings in the SHRM literature regarding the relationship between HRM systems and organizational performance may result primarily from methodological weaknesses and a failure of researchers to distinguish between HR practices intended by the organizations and those actually implemented. Rather than relying upon a single respondent per organization as is the norm, we contrast reports of both managers and non-managers from inside and outside HR departments to highlight differences between intended and implemented HRM. The findings, arrived at with the help of 195 interviews, 508 questionnaire responses and several company documents, support our expectation: implemented HRM may be substantially different from intended HRM; consistent implementation increases employee satisfaction with HRM, which is positively related to organizational performance. The current study thus highlights new factors that require attention in developing HR–performance analyses and also suggests that a mere imitation of HRM in the hopes of improving organizational performance creates no value. It is crucial that HR departments and managers remain committed and supportive to the development of effective HRM systems by focusing upon actual ‘implementation’ within their organizations.     

The profile of the ‘Good Judge’ in HRM: A systematic review and agenda for future research

In light of the pivotal importance of judgments and ratings in human resource management (HRM) settings, a better understanding of the individual differences associated with being a good judge is sorely needed. This review provides an overview of individual difference characteristics that have been associated with the accurate judges in HRM. We review empirical findings over >80 years to identify what we know and do not know about the individual difference correlates of being an accurate judge. Overall, findings suggest that judges' cognitive factors show stronger and more consistent relationships with rating accuracy than personality-related factors. Specific intelligences in the social cognition domain, such as dispositional reasoning (complex understanding of traits, behaviors and a situation's potential to manifest traits into behaviors) show particular promise to help understanding what makes an accurate judge. Importantly, our review also highlights the scarcity of research on HRM context (selection vs. performance appraisal settings) and judges' motivation to distort ratings. To guide future research, we present a model that links assessor constructs to key processes required for accurate judgment and ratings in HRM contexts. The discussion suggests twenty questions for future work in this field.     

The Bribery Paradox in Transition Economies and the Enactment of ‘New Normal’ Business Environments

We develop a novel, sense-making perspective on corruption in transition economies. Prior research has focused on understanding why some entrepreneurs are more likely to pay bribes than others. It typically assumes that paying bribes will lead to an intended – albeit unfair – competitive advantage. We challenge this assumption and uncover a bribery paradox: drawing upon sense-making logic, we argue that beyond gaining an immediate benefit from bribing, entrepreneurs who frequently pay bribes may in the longer run be enacting a ‘new normal’ business environment perceived as high in obstacles, especially in transition countries. As sense making is grounded in identity construction and one’s social context, we argue that owners of family firms will be especially vulnerable to the dangers of perceiving greater obstacles over time and enacting an obstacle-ridden ‘new normal’ business environment. We find empirical support for our framework on a sample of 310 privately held small and medium-sized enterprises (SMEs) from 22 transition economies.     

Musgrave’s vision of the public sector: the complex relationship between individual, society and state in public good theory

Richard Musgrave introduced the notion of a public good after reading an obscure publication by Lindahl in German in 1910. His great contribution to knowledge was to provide a clear and comprehensive structure for thinking about the process of achieving an “optimal” allocation of resources across public and private goods based individual preferences and the role of government in that process. A number of ambiguities and issues in Musgrave’s vision remain only partially resolved including the need to incorporate “higher laws” or community values into the allocation process.      

‘Sweet deals’: State-owned enterprises,corruption and repeated contracts in public procurement

We show how a price analysis of stable relations between customer and supplier in the public procurement of homogeneous goods can help differentiate opportunistic from honest behaviour among economic agents. We consider two types of stable relations: repeated procurements and connections based on the state ownership of suppliers. On the basis of a large dataset on the procurement of granulated sugar in Russia from 2011 to 2013, we find that for private suppliers, prices of repeated contracts were lower compared to one-time deals when procured through more transparent procedures and higher when procured through non-transparent procedures. For non-transparent procedures, we observe significant overpricing of contracts with state-owned suppliers compared to private suppliers, especially in the case of repeated contracts, whereas for competitive e-auctions, there is only a small difference between the contract prices of state-owned suppliers and private suppliers.     

Formal sector job growth and women’s labor sector participation : The case of Mexico

This paper looks at the effects of demand and supply on the determinants of labor sector (school, home work, informal, and formal) participation between Torreon and Tijuana, Mexico for married and single women. Comparisons between the two cities are used to capture differences in labor demand. Torreon is a traditional city with an agri-industrial base and Tijuana is a border city with large export processing (maquiladora) and tourism sectors, both of which demand female labor. Factors influencing labor supply include both individual and household characteristics. Married women, given the strong cultural tradition of working in the home, do not significantly increase their paid labor participation with higher labor demand or changing characteristics of the household. Personal characteristics have the greatest impact on labor sector participation. Single women do, however, increase their formal sector participation with additional employment opportunities and respond to household needs by moving in and out of the paid labor market. Results indicate that increases in labor demand in Mexico from the NAFTA could expand formal sector labor force participation of single women.     

The ‘textual attitude’ and new technology

One of the most important tasks information systems executives face is making sense of emerging opportunities for organizational innovation through information technology. However, the parlance of information systems practitioners yields a variety of metaphors suggesting that this crucial task is a perilous one, in which success is far from assured. This paper reports on an interpretive study of these metaphors, using data from field interviews. Five images are identified, which evoke certain hazards and illuminate aspects of a successful executive response. The subsequent analysis of these images reveals how they serve constructively in promoting rationality in sensemaking, against a background that includes an ontologically problematic innovation and belief formation under institutional pressure. The paper concludes with some thoughts on the wider role of discourse in innovation sensemaking.     

The HR function in purchaser–provider relationships: insights from the UK voluntary sector

This article explores how inter-organisational relations with the state impact on the status of human resource (HR) professionals in voluntary organisations. It reveals a constrained and under-resourced HR function in voluntary organisations, implementing few strategic interventions. Explanations centre on the dynamics of power relations, institutional forces, the exercise of strategic choice and management of risk between purchasers and providers and their interaction with competencies among individual actors, attitudes of senior managers and the focus by voluntary sector managers on organisational mission. It warns that these external and internal factors will produce similar outcomes in sectors and economies characterised by arm's-length contractual relations.     

The whole is more than the sum of its parts? How HRM is configured in nonprofit organizations and why it matters

Evidence points to the central importance of configurations of mutually reinforcing HR practices as they are assumed to provide the basis for understanding how HRM relates to organizational performance. While progress has been made regarding the construction and effects of HR architectures in the for-profit literature, few studies investigate how HR architectures are configured in nonprofit organizations (NPOs). Therefore, this paper aims to advance a conceptual model that captures the relationship between ideal types of HR architectures and performance in NPOs. We develop theoretical propositions that provide further insight on the HR programs and HR practices that define the HR architectures and entail implications about variations in performance outcomes in NPOs.     

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.     

How culture-sensitive is HRM? A comparative analysis of practice in Chinese and UK companies

There has been some concern about the extent to which models and practices of HRM are capable of being transferred from one country to another. This emerged in the late 1970s as concern that Japanese ideas might be adopted uncritically by US companies, and during the 1980s as concern that these ideas, after recycling within the US, might not be totally appropriate for consumption in other parts of the world. Further urgency is added to the question by the pressures on many organizations to develop their businesses internationally, or globally – since this increasingly means they have to consider and establish HRM policies which can span different national systems and cultures.

This paper considers the problem through a direct comparison of practices in matched Chinese and UK companies in order to establish where variations occur both within and between countries. It is evident that there are considerable variations in the form of HRM in different settings, but also some surprising similarities. Thus, for example, there are more similarities in manpower planning systems between Chinese companies and some of the UK companies than there are between all the UK companies. In this case it can be concluded that these elements are not greatly affected by national (and assumed cultural) differences. On the other hand, there is a sharp difference between the UK and Chinese companies with regard to pay and reward systems, but much consistency within each country. This suggests that there may be deep-seated differences between the two countries with regard to attitudes towards rewards which will limit the transfer-ability of HRM ideas in this area.     

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.