Personnel Formalization and the Enhancement Of Teamwork: A public–private comparison

Formalization has long been regarded as one of the most distinctive features of the public sector. Personnel systems in the public sector are particularly formalized due to merit system protections and strong due process requirements. In much of the contemporary public management literature, personnel formalization implies red tape, referring to excessive rules that bring negative outcomes such as employee frustration. The present study offers an alternative view, suggesting that personnel formalization results in high-performance work practices, particularly teamwork, by ensuring that organizations attract the right employees and provide employees with various protections such as worker safety, procedural justice and conflict resolution. Given that public organizations are structured more formally, public sector employees are more likely to work in teams than their peers in the private sector. The authors test this view by using variables from the National Organization Survey (NOS) data set and find strong statistical support. Therefore, personnel formalization is not necessarily equivalent to red tape and not always detrimental to the public sector. It enhances teamwork, a central element of high-performance work practices.     

Differences in leadership behaviour and influence between public and private organizations in Greece

This paper aims at comparing certain managerial aspects which seem to affect and account for the differences in organizational performance between public and private organizations in Greece.

By presenting empirical evidence concerning leadership behaviour and influence in both types of organizations, it becomes apparent that leadership quality is not necessarily the problem in public organizations. A number of leadership substitutes and neutralizers such as bureaucratic controls, external political influence and the limited positive reward power which leaders seem to possess have to be removed in order to enhance the role of leadership in public sector organizations.     

Sustainable procurement in Malaysian organizations: Practices,barriers and opportunities

The purpose of this study is to uncover the extent of sustainable procurement practices amongst procurement directors/managers employed in public and private sector organizations in Malaysia, a developing country where socialization is underpinned by religious beliefs. The results showed there is a significant variation in the adoption of sustainable procurement across the sectors with the private sector registering significantly higher levels of SP practices than their public counterparts. Lack of awareness posed the most significant barrier to sustainable procurement implementation regardless of organizations or sectors whilst improved working conditions, an organization׳s/council׳s/public image, and organizational efficiency and transparency provided optimal opportunities for implementing sustainable procurement practices. Finally this study identified the two new factors of religion and sense of humanity as influencing an employee׳s engagement in sustainable procurement practices.     

Public and Private Management: What’s the Difference?

Critics of New Public Management argue that differences between public and private organizations are so great that business practices should not be transferred to the public sector. In this paper the theoretical arguments on the differences between private firms and public agencies are reviewed, and 13 hypotheses are identified on the impact of publicness on organizational environments, goals, structures and managerial values. Evidence from 34 empirical studies of differences between public agencies and private firms is critically evaluated. Only three of the publicness hypotheses are supported by a majority of the empirical studies: public organizations are more bureaucratic, and public managers are less materialistic and have weaker organizational commitment than their private sector counterparts. However, most of the statistical evidence is derived from studies that use narrow measures of publicness and fail to control for other relevant explanatory variables. Whether the existing evidence understates or overstates the distinctiveness of public agencies is therefore unclear. A research agenda and methods are identified for better comparisons of management in public and private organizations.     

A job to believe in: recruitment in the Scottish voluntary sector

The voluntary sector is an important source of employment in the UK and is increasingly providing services previously provided by the public sector. However, the ability of the sector to provide such services is dependent on the quantity and quality of suitable labour. This article examines recruitment issues in seven case‐study voluntary organisations offering social care in Scotland. Interviews were conducted with 137 managers and employees in these organisations. In addition, to assess potential labour supply, interviews and focus groups were conducted with careers advisers and potential employees. The findings suggest that, with a tightening labour market, uncompetitive pay and misconceptions about the sector, recruitment is a problem. However, job satisfaction is high for current employees, and potential employees whose values are commensurate with the sector might be attracted. The findings thus have relevance not just for the case‐study organisations, but for HRM in the voluntary sector generally.     

Singing the same song: translating HRM messages across management hierarchies in Australian hospitals

The management of expatriation has grown in importance as the numbers of multinational companies has grown significantly since the 1970s. However, public and non-government sector organizations have long traditions of managing expatriates. This paper presents the results of research that compared the manner in which Australian private, public and non-government sector organizations selected their expatriates. The results confirm the numerous reports in the international human resource management (IHRM) literature that, in private sector organizations, selection is carried out largely on the basis of technical competence, with minimal attention being paid to the interpersonal skills and domestic situations of potential expatriates. The limited role of HR managers in this process is also identified. The selection practices of public sector organizations reflect the merit selection policies of this sector. The non-government sector organizations' selection practices differ markedly from those of the organizations in the other two sectors, in that psychological testing is widely used and the family is treated as a unit and included in the selection process.     

Reporting public sector financial results

Part of the process of recent public sector reform has involved replacing traditional cashbased accounts with accrual-based financial statements, similar to those found in the private sector. This article examines the use of accrual-based accounting in the public sector and provides examples from the UK National Health Service of situations where the accruals system may be deemed inappropriate. It shows that one possible response is to withdraw from the accruals mode and revert to cash measures, deeming the accruals adjustments to be ‘merely technical’. An alternative response is to change the mode of operating so that the cash impact of a transaction matches its accruals reporting impact. The conclusion is that there are modifications to public sector accounting practices away from those of the private sector that undermine the metaphor of running the public sector ‘like a business’.     

Better practices in managing layoffs

This article presents eight case studies that illustrate “better practices” in how layoffs are managed in organizations. These examples incorporate such policies and programs as early notification of layoffs, provisions for severance pay and extended benefits, education and retraining for displaced workers, outplacement assistance, clear and direct communication of layoff information, and support services for “survivors” of layoffs. These examples highlight the benefits of collaboration among downsizing businesses, public sector organizations, and unions in helping laid-off employees adjust to unemployment and obtain satisfactory reemployment.     

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.     

Gender organizing in China: a study of female workers' representation needs and their perceptions of union efficacy

This paper investigates gender organizing in China from the perspective of women employees in different industrial sectors and across ownership forms. It identifies women workers' views on their representation needs, level and effect of trade union activities, their related attitude towards unionism as well as alternative forms, if any, of organizing. The study reveals that women employees in government organizations, public sector, state-owned enterprises and private firms have significantly different needs and levels of identification with the union. It argues that the pluralism of employment relations in China across the spectrum of ownership forms and occupational groups should be given more recognition and attention than has been warranted.     

WHAT HAS 20 YEARS OF PUBLIC–PRIVATE PAY GAP LITERATURE TOLD US? EASTERN EUROPEAN TRANSITIONING vs. DEVELOPED ECONOMIES

This paper surveys the literature on public–private sector pay differentials based on 20 years of research in transitioning countries of Eastern Europe (EE) and compares the results with estimates obtained from developed market economies. The majority of empirical studies from EE economies found evidence of public sector pay penalties during the period of economic transition from a communist to market‐based economy. In developed economies, however, the average differential is usually around zero or positive. The public sector pay inequality reducing effect relative to the private sector is greater in transitioning economies than in developed economies. Nevertheless, there is evidence that the sign of the public sector pay gap as well as the relative public sector pay distribution change with the progress of economic transition towards those usually observed in developed economies. Different pay‐setting arrangements between private and public sectors and competition for workers seem to be major arguments for the existence of systematic pay differences between the two sectors.     

Modernising pay in the UK public services: trends and implications

The emerging character of the UK government's public sector pay reforms during the second and third (New) Labour terms of office is reviewed and contextualised. Three settings are examined where pay reform has been actively employed – with the accent on harmonisation, simplification and devolution of practice, with the express intention of restoring public service workforce morale, while improving services to clients – namely, local government, the National Health Service and the Higher Education sector. The evidence is interpreted as illustrating undoubted change, but also significant areas where progress has been less than intended, measured against the government's original programme goals. Equal pay considerations appear to have dominated all three projects reviewed: the failure to date of public sector managements to capitalise on opportunities the new pay architecture affords them to change local working practices may be attributed to a combination of factors discussed in the article. These have given rise to tensions as efforts have been pursued to transplant private sector pay techniques, somewhat hastily in some cases, without due consideration of the institutional context within which public services and proximal institutions function.     

Validating the Construct of Public Service Motivation in For-profit Organizations: A preliminary study

Delineating the theoretical link between individuals’ discretion and motivations in the private sector and their public service behaviours in Chinese society, this study explored public service motivation (PSM) in for-profit organizations. A survey of 348 employees from three engineering consulting organizations in China validated the construct of PSM in for-profit organizations. Besides the positive correlation between conscientiousness and PSM, the current study demonstrated that a positive correlation exists between PSM and community citizenship behaviour (CCB) with love of money (LOM) as a marginal moderator: the positive relationship between PSM and CCB is marginally stronger when LOM is higher, vice versa.     

Institutional isomorphism and whistle-blowing intentions in public sector institutions

Over the years the new institutionalism in public sector analysis has contributed significantly to our understanding of the dynamics of public sector institutions. While it has moved research away from behavioural explanations to recognizing political and cultural contexts, the focus on public sector institutions has been minimal. This research examines, by self-report questionnaire from employees in two government organizations, how institutional mechanisms shape whistle-blowing intentions within the context of a developing country. Despite the country context, findings from this study are encouraging in that participants’ intentions to blow the whistle were found, generally, to be strong.     

Performance management effectiveness: practices or context?

Although much research has focused on the technical or measurement issues involved in employee performance management, this study investigates the mutual influence of practices and context on performance management effectiveness. From a sample of 312 private and public sector organizations with 200 or more employees, the results indicate positive associations between practices – training and employee recognition – and performance management effectiveness. They further underscore the relevance of three contextual variables – culture, climate and the strategic integration of human resource management – as they are also related to more positive performance management outcomes. Implications for research and practice are discussed.     

The influence of strategic HRM and sector on perceived performance in health services organizations

In this study, we examine a variety of management characteristics of for-profit and not-for-profit organizations in the health services (HS) industry. Data collected from Australian senior executives are used to test the relationships between managerial constructs such as employee commitment, customer demandingness, strategic HRM orientation and the adoption of human capital-enhancing human resource (HR) practices and perceived overall performance. Data analysis conducted using the Partial Least Square Modeling show a statistically significant path from commitment to employees, customer demandingness and strategic HRM orientation to the adoption of human capital-enhancing HR practices (such as selective staffing, comprehensive training, and performance appraisal) to perceived organizational performance. The results also show that private sector health service organizations have a higher level of perceived performance.     

Employee perceptions of performance appraisals: a comparative study on Indian banks

Performance appraisal is the most critical human resource practice and an indispensable part of every organization; however, the practice continues to generate dissatisfaction among employees and is often viewed as unfair and ineffective. Indian banking sector is one of the biggest and fastest growing financial service sectors. The post-liberalization era has witnessed significant changes in the structure and operations of banks operating in India. Arrival of new private and foreign banks has given a cause to public sector banks to be more competitive, effective and innovative in their approach. Past researches have compared public and private sector banks and have indicated that new private sector banks are outscoring public sector banks in terms of technical and economic efficiency parameters. However, no study could be found that compared public and private banks in India on fairness perceptions of performance appraisal system. Therefore, this research studied the differences between public and private sector banks with respect to perception of fairness of the performance appraisal system and performance appraisal satisfaction. Perception of fairness of the performance appraisal system has been studied through nine factors. The study used independent samples t-test and qualitative analysis to study the mean differences between the two banks. Results indicated that private sector bank employees perceive greater fairness and satisfaction with their performance appraisal system as compared to public sector bank employees.     

PRODUCTIVITY IN PUBLIC SERVICES

Abstract.  This paper discusses issues arising in the measurement of productivity in public services. Compared to measuring productivity in the private sector difficulties arise because the output of public services is often unpriced and because some public services are consumed collectively. A key problem is measuring the full range of outputs and quality improvements delivered by public sector organizations that are valued by society. Without comprehensive measures of output, productivity statistics may be misleading. I outline methods used in the measurement of both private and public sector productivity and discuss the measurement of public sector productivity in practice. Finally I discuss studies that examine factors underlying productivity differences and productivity growth in public and private sector organizations. Public sector reforms and the use of pilot schemes in public sector organizations present opportunities for research to identify causal effects on productivity.