WHAT’S VALUED MOST? SIMILARITIES AND DIFFERENCES BETWEEN THE ORGANIZATIONAL VALUES OF THE PUBLIC AND PRIVATE SECTOR

In recent administrative and organizational literature much attention has been paid to values that guide organizational and managerial behaviour in the public and private domain. Comparative empirical research efforts, however, are sparse. This article reports the results of a comparative empirical survey of 382 managers from a variety of public and private sector organizations in The Netherlands. Contrary to much recent literature that presupposes the intermixing or convergence of value systems guiding governance in different kinds of organizations, the results of this study show two distinct and relatively classical value systems for government and business as well as a ‘common core’ of important organizational qualities. These are accountability, expertise, reliability, efficiency and effectiveness, all of which are considered crucial in both public and private sector organizations. Additional analysis shows that value preferences are primarily attached to sector rather than to age, gender, working experience, or previous employment in the other sector.     

Leading the way: the integral role of local government within a multisector partnership delivering a large infrastructure project in an Australian growth region

Multisectoral partnerships with local government have emerged as a strategy for solving ‘wicked’ problems in communities, although research about these types of public–private partnerships is limited. Available evidence suggests that differentials in power and status, value bases and perspectives on priorities have been problematic in partnership building with community. This paper examines the role of local government as the funded, lead organisation, in a public–private partnership for planning, designing and constructing a business accelerator in one of Australia’s growth regions. Partnership scope, role and outcomes were measured against a conceptual framework mapping success indicators. Findings show core principles for successful partnership were achieved and supported by the role, capacity and commitment of local government to forming strong working relationships with consortium partners. Relationship building and commitment to collective project outcomes were pivotal to success. Further research is needed to assess whether emerging trends hold and consolidate over time.     

COMPARING BUSH–CHENEY AND CLINTON–GORE PERFORMANCE MANAGEMENT STRATEGIES: ARE THEY MORE ALIKE THAN DIFFERENT?

Successful performance management strategies are intrinsically linked to the political environment in which public policy‐making occurs. Since the mid‐1990s, many governments have re‐examined how to simultaneously reduce costs, increase performance and achieve results. Public agencies are experimenting with performance measurement and management systems designed to meet public policy goals and respond to citizen demands. Various reform models have been proposed and public administrators now expend considerable time, effort and resources exchanging ‘best practices’, finding ‘best value’, and ‘rethinking’ government operations. Although equally important, less effort has been devoted to performance management (PM) within increasingly complex, ideologically charged and politicized decision‐making environments. Despite significant increases in productivity, more theoretical and empirical research is needed to assist public managers in applying private market‐based alternatives to public service delivery structures. This article compares the PM initiatives of the Clinton–Gore Administration in the United States, known as the National Performance Review (NPR), with President Bush‘s Presidential Management Agenda (PMA). Following the comparison, a theory‐based research agenda is proposed to determine which of many approaches best ‘fits’ the varied and often contradictory systems for delivering public services in a decentralized governance system.     

Endogenous Determinants for Renegotiating Concessions: Evidence from Local Infrastructure

The engagement of local government in public–private partnerships (PPPs) for the provision of infrastructure and public services is a global trend. Light rail services, water systems, waste management systems, schools, sport centres and social housing are simply a few examples of sectors in which the private sector is becoming more actively involved with local authorities. Most of these engagements are conducted through the use of mixed companies and contractual concessions. However, both of these uses suffer from a major shortcoming – renegotiations. Contracts are often renegotiated within a few years of being signed, and some evidence reveals that the results might not protect the public interest. This article aims to understand how and why renegotiations of local concessions occur by examining the specific characteristics of contracts (endogenous determinants). To illustrate the discussion, a case study of a light rail system is analysed, exemplifying the effect of a contractual renegotiation. The authors argue that contractual renegotiation can be useful in decreasing contract incompleteness, but a poorly designed contractual clause can allow for opportunistic concessionaire behaviour.     

Administrative and regulatory reform of Korea in a time of national crisis

Korea has undertaken all-out efforts to reform its economy and government to be ready for the new era of global competition and overcome the current economic crisis. Public sector reform seeks to liberalize the market economy by removing unnecessary government interventions in the private sector. The realization of the “four S's” - a small but strong government with the smarts to manage future uncertainties and a sensitivity to the people's needs - is the ultimate vision for the public sector reform. Regulatory reform calls for at least fifty percent of all government regulations eliminated by the end of 1998 and the rest of the regulations improved based on a set of rational principles. One key aspect of regulatory reform is focused on removing barriers to foreign direct investment. Epochal changes in the public sector including governmental regulations are expected to bring Korea up to global standards for business competition and government performance.     

PUBLIC SECTOR PAY BARGAINING: COMPARABILITY, DECENTRALIZATION AND CONTROL

Public sector pay, as a key component of public expenditure, has been a major issue for government since the mid-1970s. This article analyses public services pay bargaining since 1979 and examines the continuing tension between the control of public sector pay levels on the one hand and the wish to make pay levels more responsive to external market forces on the other.
The article concentrates on the changes in pay bargaining in the public services. It does not purport to provide a detailed economic analysis of the outcomes of the various phases in public sector pay policy, but does attempt to explain the process implications of the political contingencies and rationale driving government policy on pay determination. In particular it notes the resilience of national pay-setting arrangements and pay comparability throughout most of the period under review, despite the political rhetoric, emphasizing the pragmatism of government policy. The latter section of the article reviews the current policy, with its emphasis on decentralized pay determination, and considers these new developments within the context of private sector collective bargaining theory.
The evidence from the private sector suggests that pay determination in the private sector is complex and that levels of bargaining relate to various factors. Decentralization is neither a panacea for poor performance nor necessarily problem free. Devolved pay determination can lead to problems of control over costs and, in the context of high levels of trade union organization, to pay'leapfrogging'. The article concludes that there is a continuing contradiction between the role of the government as an employer, keen to devolve pay decisions to local level, and that of economic regulator with responsibility for the wider economy. This continuing tension indicates that decentralized pay bargaining in the public sector will be limited in its scope by some form of central government control.     

Crossing the Boundaries between ‘Third Sector’ and State: life-work histories from the Philippines,Bangladesh and the UK

The three-sector model—encompassing the private, public and non-governmental or ‘third’ sectors—is important to much of the research that is undertaken on development policy. While it may be analytically convenient to separate the three sectors, the realities are more complex. Non-governmental actors and government/public sector agencies are linked in potentially important (though often far from visible) ways via personal relationships, resource flows and informal transactions. This paper seeks to understand these links by studying the ‘life-work histories’ of individuals who have operated in both the government and third sector. Two main types of such boundary crossing are identified: ‘consecutive’, in which a person moves from one sector to the other in order to take up a new position, and ‘extensive’, in which a person is simultaneously active in both sectors. Drawing on a set of recently collected life-work history data, the paper explores the diversity of this phenomenon in three countries. It examines the reasons for cross-over, analyses the experiences of some of those involved, and explores the implications for better understanding the boundaries, both conceptual and tangible, that both separate and link government and third sector in these different institutional contexts.     

Going privately: partnership and outsourcing in UK public services

Public private partnerships provide an important illustration of the way the traditional role of government as employer and service provider is being transformed. While policy–makers argue that the growing role of the private sector is not driven by ideological thinking – that, in fact, both public and private sector organizations can benefit from working together in partnership relations – in practice it is the norms and rules of private sector management that underpin reforms. This paper assesses evidence from two detailed case studies of partnerships and demonstrates, first, that there is little evidence of mutual gains from partnership arrangements and, second, that because of an imbalance of power between public and private sector partners, any gains achieved are not distributed equitably. These results suggest that current reforms need to be refocused around building on the distinctive qualities of services provision in the public sector, rather than expanding the private sector world of markets and contracts.     

Disinvesting in America? the legacy of consumption policy in the 1980s

This article traces patterns of consumption, low productivity, debt accumulation and slow economic growth. Rather than calling for an increased emphasis on market and corporate incentives, the author calls for increased public investment. He favors particularly increases in scientific research and development and technology, in public works to rebuild the infrastructure, and calls for a public administration associated with increased investment in government.

The New Deal and the Great Society established the foundations of the public policy and administration of consumption—income transfer, entitlement, loan, loan guarantee, credit, subsidy, tax expenditure, and related programs designed to maintain or improve the income levels and social and economic well being of many elements of the United States population. Such programs now constitute approximately 50 percent of the federal budget. In the late 1980s, the United States entered into a new international economic, technological, and demographic order in which the public administration of investment will be increasingly important. The “public administration of investment” is defined as the administration of policies designed to produce future benefits for the nation through investment in people, knowledge and technology, the environment and public infrastructure, and public systems and public service.

Several trends in the 1980s contributed to the increasing importance of the public administration of investment. The first trend was the continuation of the low rate of productivity growth in the United States, a condition that has persisted since the early 1970s. ⁽¹⁾

Despite low productivity growth, the United States as a nation continues to spend as if productivity were increasing at pre-1973 rates and to borrow from other nations to make up the difference. The result has been large public and private debt. Increased productivity growth will require additional public as well as private investment if the United States is to maintain its standard of living and capacity to pursue social justice and other values into the next century.

The second trend has been the globalization of technology and the economy. The United States has been losing the comparative advantage it once enjoyed in many scientific and technological fields, as technological know-how has spread throughout the world. The United States fell further behind in the 1980s in the development of new production processes and in the commercialization of new processes and products in consumer electronics, semiconductors, and other fields.⁽²⁾ There is compelling evidence that both the private and public sectors underinvested in developing the scientific and technical workforce that will be essential in the global technological competition of the future.⁽³⁾ More generally, by many measures the education system of the United States has not been producing a well-educated workforce or well-educated citizens.⁽⁴⁾

The third trend of the ’80s was the maturation of the baby boom generation. This generation is now in the high consumption stage of its life cycle—homes, cars, and other consumer goods. The aging of the baby boom generation in the early decades of the twenty-first century will pose a complex challenge to public policy and administration. Early in the twenty-first century, the baby boomers will enter a stage of life usually marked by reduced consumption and higher saving.⁽⁵⁾ At the same time, increased longevity suggests growing demands on both public and private systems for income maintenance, health care, and social services. New technologies will compound health care costs. Unless saving and investment are increased now to partially support the baby boom generation in retirement, the “baby bust” generation that followed the baby boom will face a heavy burden of support.⁽⁶⁾ Currently, the Social Security Trust Fund does not have a single penny in it because the Treasury is borrowing the funds to reduce the federal deficit. Substantially increased productivity or substantially higher taxes will be necessary to replenish the fund in the early twenty-first century.

To compound the problem, by the year 2050, for the first time in American history (according to the middle series of Census projections), there will be more old than young Americans. The age cohort 60 and older will make up 28 percent of the population, while the age cohort 1-19 years will make up about 23 percent of the population.⁽⁷⁾ This is in stark contrast to the 16 percent of the population 60 and over, and the 32 percent of the population 1-19 years, in 1980. Greatly increased saving, increased productivity, substantially lower standards of living for working people, extended working years, or an influx of immigrant workers will be needed to produce the benefits that are promised in the entitlement programs of the federal government and expected by the American people.

Finally, many observers perceived an increase in private greed during the last decade in the United States and a growing indifference to common concerns—eroding public infrastructure, the highest infant mortality rate among industrialized nations, the highest rate of child poverty, and similar social conditions. They see a preoccupation with current pleasure at the expense of future benefits, and a decline in social discipline and civic virtue. To some observers, the United States has been in a temporary cycle of preoccupation with private needs.⁽⁸⁾ To others, civic virtue in the United States has been in decline.⁽⁹⁾

In any event, diminishing growth may intensify each individual's desire to protect his or her interests. In this context, redistribution in the pursuit of social equity will become increasingly difficult.     

Regulation Inside Government: Public Interest Justifications and Regulatory Failures

Regulation is normally thought of as government regulation of the private sector, particularly business. However, there is a developing literature on regulation inside government, exploring the ways in which government regulates itself through a range of bodies which set standards for public sector organizations, monitor them and seek to bring about compliance with those standards. Reading across economic theories of business regulation to regulation inside government, this article suggests that the current wave of reform inside the UK public sector implicitly reflects a public interest view of regulation. However, the analogous public interest justification for the regulation of business has been heavily criticized and regulatory failures have been suggested including regulation in the interest of regulated bodies, regulation in the interest of regulators and the high costs of operating regulatory systems.     

Actions by Political Officials Have Weakened the Federal Government Workplace: Downsizing Has Cut Lower Level Workers the Most and Replacing Federal Employees with Private Corporations Costs Much More,Creating the Need for Immediate Reform

Abstract

The authors of this paper are four practitioners each of whom has many years of experience working in the Federal government and also has pursued doctoral studies in public or business administration. Three ideas developed in this paper are that: (1) the Federal civil service has been changed from being a model workplace to a much less desirable one; (2) although downsizing has been touted as an efficiency and economy measure, lower level employees experienced the most cuts and (3) the current practice of replacing Federal employees with private corporations costs much more. Over the past two decades private sector workplaces in the United States, and now the Federal government workplace, have experienced so much change that previous theories, concepts, models, and expectations no longer hold. Just as private industry workplaces have been changed by downsizing, reorganizations, mergers, elimination of middle management, and outsourcing, so, too, has the Federal government workplace been fundamentally altered. Reducing the number of government workers, replacing Federal employees with private firms, increasing the number of officials with political agendas, and using harsh personnel management practices have transfigured the Federal workplace. Examples of factors that have contributed to a changed workplace include: the Civil Service Reform Act which replaced the Civil Service Commission with the Office of Personnel Management; importing private sector approaches into the government, e.g., the Grace Commission; replacing the Civil Service Retirement System with the Federal Employees Retirement System; pressure to downsize and privatize; and many elements of the National Performance Review and Government Performance and Results Act. Now that the metamorphosis away from the traditional Civil Service borne of the Pendleton Act is nearly complete (although the new paradigm is not entirely clear), questions about the effects of a changed government workplace are being raised. Some people believe the metamorphosis is from a caterpillar to a butterfly, while others think the opposite. Whether the changed Federal government is a thing of beauty or a distasteful organism will be determined over time by observations and assessments of the effects of the change. These effects will be both internal to the government workplace, itself, and external to it, involving the products, services, outputs, and outcomes it produces. This paper begins by describing some of the politically mandated changes that have altered the very foundation of the Federal government workplace over the past 20 years and made it a much less desirable place to work. Next, some of the effects of two politically mandated changes are examined: (1) downsizing or reducing the number of Americans who can work for their government and (2) contracting out or replacing government workers with private corporations. Political officials have told the media and the American public that these changes were needed to improve the government's efficiency, effectiveness, and economy. It has been suggested that these initiatives will reduce costs. However, an examination of downsizing and contracting out shows the opposite effect. While overall the Federal government has fewer employees now than in 1961, the statistics indicate that lower level employees have been cut the most:

• The number of secretaries decreased by 39% between 1992 and 1998.

• The blue collar workforce is down 40% since 1982, e.g., Supply Clerical and Technician (?35%), Accounting Technician (?24%), and Electronics Mechanic (?41%).

• Between 1993 and 1998 the number of GS‐1 to GS‐10 employees fell from 767,000 to 594,000.

• In 1983 the number of GS‐1 to GS‐10 workers exceeded GS‐11 to GS‐15 by nearly 300,000, while in 1997 GS‐11 to GS‐15 outnumbered the lower level workers by 44,000.

Although authoritative cost comparison studies are difficult to conduct because top officials have made little provision to collect information on the cost of contracting with private firms or the number of contract employees, available information indicates that it is much more expensive than using government employees. The contracting out we are talking about is not the usual kind—building ships or planes, or acquiring computer systems or special expertise not available in the government. Rather, it is contracting with private firms to do jobs that are currently being performed by Federal employees. Not satisfied with the level at which firms are being substituted for Federal employees, actions by political officials have created an environment which now favors private corporations and where they can be given work at top management's discretion, often regardless of cost. In fact, today most contracting out is done without the use of Circular A‐76 Cost Comparison Studies. There is empirical and logical evidence that shows that replacing government employees with private corporations is more expensive. For example, a study by the Department of the Army documents what people close to contracting have always known—that it is far more expensive to contract with a private firm for work than to have Federal employees do it. Logically, the government incurs additional items of cost when replacing Federal employees with private corporations. First, there is the profit that goes to the firm. Second, there is the firm's overhead which pays for corporate offices, staffs, and CEOs. Third, there are the costs of the contracting and award process and of contract administration and management. Although the worker on a government contract may be paid a little less than a government worker, the cost of the worker is only a third to a half of what the government pays the firm. Thus, replacing government workers with private firms usually costs far more and it is not unusual for it to cost two to three times as much. This paper partly is based on the authors' long experience in the Federal government. It is not based on the organizations in which they are currently employed.     

Public policy and management issues in Taiwan's development

This symposium examines the experience of Taiwan's development and focuses on the role of government and the importance of public policy and management to the development. The symposium introduction paper consists of three sections addressing the following issues. First, the introduction section offers reasons for studying Taiwan's development experience. The second section provides an overview of the literature related to the relationship between government and economic development. Finally, the last section summarizes the major issues and findings emphasized in each symposium paper.     

CAN GOVERNMENT INFORMATION SYSTEMS BE INFLEXIBLE TECHNOLOGY? THE OPERATIONAL STRATEGY REVISITED

Recent failures of government information systems to achieve their objectives have highlighted the risk involved in large-scale information technology projects. This article looks at one example, the computerization of the UK social security system, in the light of recent discussions of large-scale technologies and the particular problem of inflexible technologies as defined by Collingridge. It is argued that large-scale government computing projects can fit the criteria of inflexible technologies, although this is not an inherent feature of information technology. There are always more flexible alternatives available: this is illustrated using examples from both private and public organizations.     

Does Ideology Matter? Incentive,Efficiency and Management in the Public Sector

Contracting out has become increasingly popular as a strategy for public sector management for reducing costs, alleviating the burden on government agencies providing services, as well as taking advantage of the practices that have succeeded in the private sector. Generally, the system of management in capitalist liberal democratic systems of government that emphasize rule of law, transparency, performance measurement, and accountability are expected to be more efficient, while socialist regimes are considered to be inefficient due to the lack of these features. This article compares two dissimilar cases of the Hong Kong Special Administrative Region and Shenzhen Special Economic Zone of China. An examination of the management of contract in the area of public housing in these cities reveal that the socialist city of Shenzhen has achieved a higher level of efficiency, while capitalist Hong Kong lags behind in establishing an effective system of management of contracts in the public sector. The finding challenges the traditional assumptions related to efficiency under different ideological regimes.     

Did Public Transfers Crowd Out Private Transfers in Korea During the Financial Crisis?

How effective are public transfers in protecting households facing financial crisis-induced negative shocks? Existing studies have not yet carefully considered the inter-relationship between public transfers and the existing private transfer network. In the context of the financial crisis in Korea, this paper investigates the possible crowding-out effect of public transfers on private transfers by explicitly considering the endogenous responses of private transfers against public transfers. By using two Korean household-level panel data sets for the periods of 1995–1998 and 1998–2003, we found a post-crisis, but not pre-crisis crowding-out effect of public transfers; more importantly, a crowding-in effect is observed during the crisis. The results suggest that private transfer networks were strengthened under the initial phase of the financial crisis, which possibly complemented public transfers due to the lack of effective formal safety nets, while public transfers became effective after the crisis, thereby replacing private transfers. Our results suggest that particularly at the initial stage of the crisis, the government could have played an important role in assisting households to weather the negative impacts of the crisis.     

Forecasting the Effectiveness of Policy Implementation Strategies

Primarily, policies are intended to address economic, social and environmental problems. When implementing a policy, any government will be faced with the decision as to what strategy to adopt in order to meet the objectives set out by the policy in the most cost effective way. Several such Policy Implementation Strategies (PIS) may be available, making such a decision not so straightforward. With limited funds available, such a decision has particular importance for budgeting. This paper proposes forecasting PIS effectiveness as a decision support tool. The nature of Structured Analogies (SA) is considered suitable for generating such forecasts. A simpler version of SA, semi-structured analogies (S-SA), where experts do not need to recollect the exact outcome of analogies, is tested. Empirical findings suggest that in the hands of non-experts, the S-SA approach improves forecast accuracy when compared to unaided judgment. Accuracy improves further when forecasts are produced in groups.     

Local Government Public Servants Performance and Citizens Participation in Governance in Nigeria

Abstract

This paper examines the performance of public administrators at the local government level in Nigeria. It traces the development of local governments in Nigeria from 1945 to present times. It argues that the shift in the critical decision‐making powers and functions of local government requires its public administrators to be better‐trained professionals. However, without citizens' participation in governance, public servants' accountability will be low. The study addresses the following questions: How do public sector performance and development of actions by citizens affect accountability in the local governments? How much training do public administrators in Nigeria's local governments have in public management? What is the relationship between performance and citizenship participation in local governments' development process? The question of interests in this study is how public administration at the local government level can better serve Nigeria's communities and in so doing develop authentic relationship with citizen groups, and equitably enhance public trust, legitimacy, and performance of the public sector in the nation.     

CHANGE IN THE MANAGEMENT OF PUBLIC SERVICES

This article identifies the main themes in recent changes in public sector management and shows the extent of the challenge to past organizational assumptions. While recognizing the objectives of the changes could bring benefits if realized, it argues that there are a series of issues that are unresolved. The language of consumerism, the development of government by contracts, the form of performance management and the use of quasi-markets are seen as creating problems. These are seen as deriving from an attempt to apply approaches drawn from the private sector to the public domain. It is argued that they need to be balanced by approaches that recognize the values of the public sector.     

Partnerships and public procurement: building social capital through supply relations

As one means of dealing with an increasingly interdependent or shared power 'noone in charge' world (Bryson and Crosby 1992) and adapting the public sector to the demands of the global economy, successive administrations in the UK have aimed to develop a more strategic approach to public procurement by emphasizing inter–departmental co–ordination and establishing long–term partnership relations with suppliers. This has proved to be a difficult task, however, as the operating framework and culture of the public sector have hindered the development of interorganizational relationships and trust. By focusing on the co–operative processes and interaction within central government departments and between departments and the private sector, this paper aims to analyse and identify the obstacles to, and opportunities for, implementing long–term supply relations and facilitating departmental co–ordination. While the paper argues that partnership relations can build social capital, it also shows that these resources can have both positive and negative effects for public procurement. To conclude, lessons for developing collaborative arrangements in public procurement are identified.     

THE PUBLIC/PRIVATE SECTOR CLEAVAGE REVISITED: THE IMPACT OF GOVERNMENT EMPLOYMENT ON POLITICAL ATTITUDES AND BEHAVIOUR IN 11 WEST EUROPEAN COUNTRIES

This study explores a refined model of public/private sector cleavage voting. Assuming that market and work experiences are crucial for people to develop common political views, it investigates three contexts that shape government employees' willingness to vote as a single constituency: the branch of public sector production, the occupational status, and the type of service economy. Estimation results obtained from regressions on European Social Survey (ESS) data indicate that government employees in public health, education and service production rather than public administration utilize sector cleavage voting. Regardless of their actual occupational status, public health and education employees show persistently stronger attitudes in favour of expanding state responsibility. With respect to party choice, stronger signs of alignment along the sector cleavage are observed in Social Democratic service economies. In sum, the public/private sector cleavage continues to matter in a more complex way than a simple sector dichotomy would suggest.