Performance Contracts and Goal Attainment in Government Agencies

ABSTRACT

Public sector reforms introducing performance contracts provide a unique opportunity to investigate goals set for government agencies and factors affecting goal attainment. The article maps the set of goals contained in performance contracts for Danish government agencies in 2000, 2005, and 2008. Performance contracts are found to reflect the complex character of agency goals with performance goals ranging from project initiation to reducing case work time or increasing productivity. The article also analyzes factors affecting goal attainment. Agencies with a large percentage of goals focused on project initiation and production exhibit higher levels of goal attainment. Also, goal attainment improves as agencies and ministries gain experience with performance contracts.

For practitioners, it is relevant that contracts target a wide variety of goals and over time focus increasingly on results. Contracts serve to focus agency attention as three quarters of all demands are met. A crucial factor seems to be whether agencies are in control of formulating and meeting goals. Efforts to improve the contract regime may thus concentrate on enabling government departments to secure ambitious and relevant performance goals.     

Public Service Motivation,Task, and Non-task Behavior: A Performance Appraisal Experiment with Korean MPA and MBA Students

ABSTRACT

Appraisals of public employees are important for a host of reasons, and particularly so with the increasing emphasis on pay-for-performance systems and performance-based management in the public sector. However, managerial appraisals of employees can be somewhat subjective and our understanding of the appraisal process in the public sector is largely U.S.-centric. In this study, we explore whether characteristics of managers, like a rater's public service motivation (PSM), affect appraisal outcomes for their subordinates. Using a mixed experimental design, we analyze these dynamics in a non-U.S. context with MBA and MPA students enrolled in one of Korea's top universities. We find that rater PSM moderates the influence of both task and non-task behavior on an employee's performance appraisal.     

The Link Between Job Satisfaction and Organizational Commitment: Differences Between Public and Private Sector Employees

ABSTRACT

Employees in the public and private sectors experience different working conditions and employment relationships. Therefore, it can be assumed that their attitudes toward their job and organizations, and relationships between them, are different. The existing literature has identified the relationship between organizational commitment and job satisfaction as interesting in this context. The present field study examines the satisfaction–commitment link with respect to differences between private and public sector employees. A sample of 617 Greek employees (257 from the private sector and 360 from the public sector) completed standardized questionnaires. Results confirmed the hypothesized relationship differences: Extrinsic satisfaction and intrinsic satisfaction are more strongly related to affective commitment and normative commitment for public sector employees than for private sector ones. The results are discussed, limitations are considered, and directions for future research are proposed.     

Zone of Acceptance under Performance Measurement: Does Performance Information Affect Employee Acceptance of Management Authority?

Public sector employees have traditionally enjoyed substantial influence and bargaining power in organizational decision making, but few studies have investigated the formation of employee acceptance of management authority. Drawing on the “romance of leadership” perspective, the authors argue that performance information shapes employee attributions of leader quality and perceptions of a need for change in ways that affect their acceptance of management authority, conceptualized using Simon's notion of a “zone of acceptance.” A survey experiment was conducted among 1,740 teachers, randomly assigning true performance information about each respondent's own school. When employees were exposed to signals showing low or high performance, their acceptance of management authority increased, whereas average performance signals reduced employee acceptance of management authority. The findings suggest that performance measurement can alter public sector authority relations and have implications regarding how public managers can use performance information strategically to gain acceptance of management authority and organizational change.     

How Creating Semiautonomous Agencies Affects Staff Satisfaction

Abstract

Structural reforms such as the creation of autonomous agencies are a widely heralded solution for a multitude of problems in the public sector. These reforms have effects on public employees. This article shows how the structural disaggregation of ministries into autonomous agencies affects staff satisfaction with the organization. The article discusses three cases, where Dutch public organizations were either disaggregated from a ministry or reaggregated to the ministry. These structural reforms constitute a quasiexperimental setting where effects on agency staff and parent ministry staff are compared. In one case, creating the agency led to a decrease in staff satisfaction with the organization as compared to the staff that remained within the ministry. A second case showed that these negative effects linger and can last for more than eight years. An inverse organizational change—reaggregation—caused inverse effects: increasing satisfaction with the organization.     

Shaping Psychological Contracts in the Public and Private Sectors: A Human Resources Management Perspective

ABSTRACT

Organizational choices shape the way in which individuals experience their employment relationship. Given the multiple differences between the public and the private sectors, this study seeks to identify variations in employee perceptions of their psychological contract depending upon the sector in which they work. The psychological contract is seen as lying at the heart of the employer-employee exchange relationship. The study took place in Greece, and involved 398 employees from the public sector and 747 from the private sector. Participants were asked to evaluate 41 organizational obligations, on the basis of how important they believed them to be in terms of a desirable employment relationship. Factor analyses revealed 10 contract dimensions, while multiple analyses of variance suggested that the sector of employment and organizational tenure had a significant impact—both separately and in combination—on employees' view of their contract. The practical implications for effective human resources management and the limitations of the research are discussed at the end of the article.     

The Grass is Greener,But Why? Evidence of Employees’ Perceived Sector Mismatch from the US,New Zealand,and Taiwan

ABSTRACT

To answer the question of who wants to work for the government, scholars have relied on a few approaches, including sector preference, sector-based comparison of work motives, and sector-switching patterns of job mobility. The present study offers a related but distinct approach: perceived sector mismatch. The attractiveness of public sector jobs differs greatly across countries; thus, in order to present a more comprehensive study, we examine data from the U.S., New Zealand, and Taiwan, where attitudes towards public sector jobs differ significantly as a result of different public service laws and traditions. Across all three samples, we find that, among private sector employees, the preference for a public service job is related to socio-economic disadvantage. Among public sector workers, reasons for perceived sector mismatch vary, but often suggesting job dissatisfaction in current public sector jobs, rather than perceived advantages of the private sector (including compensation). These findings are followed by theoretical and practical implications from this comparative study.     

Comparing Public and Private Managers' Leadership Styles: Understanding the Role of Job Context

ABSTRACT

Comparing public and private managers is a major subject in the public management literature, but there have been only a few empirical studies of the differences in their respective leadership styles. Traditionally, leadership style is explained by the characteristics of the manager, the employees, and their job. This study explains leadership by the manager's job context: the degree of job complexity, role clarity, and job autonomy. We argue that differences in job context explain the use of different leadership styles in the public and private sector. To clearly specify the importance of sector, the study investigates direct, mediating, and moderating effects. Based on a survey of Danish public and private managers with 949 respondents, this article shows that job context variables vary significantly between public and private sector managers. The article provides some explanations for why public managers use more participative leadership, while private ones use more directive leadership.     

Strategic Human Resource Practices: Introducing Alternatives for Organizational Performance Improvement in the Public Sector

Can public sector organizations increase productivity through competition in spite of inherent limitations, such as budget constraints? This study addresses that question by examining the impact of four factors that contribute to employees’ expectations regarding competitive work environments on organizational performance in terms of overall quality of work and client satisfaction. The four factors measured include rewards for merit such as salary and benefits, opportunities, organizational rules, and the capacity to deal with risks as perceived by employees. Using data on public and nonprofit sector employees, expectations for merit rewards were positively related to employees’ perception of organizational performance when the conditions of performance‐based organizational rules and risk‐taking behaviors were also satisfied. Moreover, employees’ perceptions of organizational performance tended to increase when they felt that organizational rules were oriented toward performance plus organizational members and top leaders exhibited greater risk‐taking behaviors. However, no correlation was evident between employees’ expectations of opportunities and perceived organizational performance.     

A Review of: “Exploring Positive Identities and Organizations: Building a Theoretical and Research Foundation edited by Laura Morgan Roberts and Jane E. Dutton”

ABSTRACT

Public service motivation (PSM) has been shown to be positively related to job satisfaction in the public sector, but there are two gaps in the literature. First, not only PSM but also pro-social motivation directed towards helping specific others (called user orientation) may affect job satisfaction. Second, the relationship between job satisfaction and these two types of pro-social motivation, PSM and user orientation, may also be found in the private sector. This study tests whether job satisfaction is associated with PSM and user orientation, and whether these associations differ between public and private employees. Using data from a survey of Danish employees (n = 2,811), we generally find positive relationships between the two types of pro-social motivation and job satisfaction, but the strength of the associations vary between occupations. The PSM–job satisfaction association does not differ significantly between the private and public sector, while the user orientation–job satisfaction association is strongest for private employees. This suggests that to understand the relationships between pro-social motivation, employment sector, and job satisfaction, future studies could fruitfully consider incorporating other types of pro-social motivation such as user orientation.     

The Ethical Implications of Altering Public Sector Accountability Models: The Case of the Atlanta Cheating Scandal

ABSTRACT

Outcome based policies promote the use performance accountability models. However, the impact these policies have on the ethical culture of public sector organizations has not been adequately assessed. This research examines performance accountability reforms by examining the City of Atlanta’s implementation of federal and state performance policies. The analysis reveals the use of performance models in vulnerable organizations negatively impact employees’ ethical behavior. Teachers and administrators altered test results, delivered threats, misled parents and students about performance outcomes, and were dishonest with state investigators to give the illusion that performance goals had been met or exceeded.     

Institutions or Contingencies? A Cross‐Country Analysis of Management Tool Use by Public Sector Executives

Management tools are often argued to ameliorate public service performance. Indeed, evidence has emerged to support positive outcomes related to the use of management tools in a variety of public sector settings. Despite these positive outcomes, there is wide variation in the extent to which public organizations use management tools. Drawing on normative isomorphism and contingency theory, this article investigates the determinants of both organization‐oriented and client‐oriented management tool use by top public sector executives. The hypotheses are tested using data from a large‐N survey of 4,533 central government executives in 18 European countries. Country and sector fixed‐effects ordinary least squares regression models indicate that contingency theory matters more than normative isomorphism. Public executives working in organizations that are bigger and have goal clarity and executive status are more likely to use management tools. The only normative pressure that has a positive impact on management tool use is whether public sector executives have a top hierarchical position.     

The Public/Private Cleavage in a Welfare State: Attitudes Toward Public Management Reform

This study contributes to the growing literature on differences in attitudes between public and private sector employees, particularly with respect to their receptivity or resistance to public management reforms. We begin by asking the question: to what degree does perceived self-interest play a role in accounting for attitudes toward public management reforms such as downsizing, privatization, and public spending? Using attitudinal data from Sweden, a social welfare state with a large public bureaucracy, a tension is observed both among public employees in different levels of government and between public and private sector employees. In the context of public management reforms, national government employees emerge as more right-leaning politically and more supportive of public management reforms than those working in local government. The analysis finds, particularly among national government employees, that while interest as measured here is strongly related to attitudes toward reform, status as a public employee and status as a public bureaucrat are not as significant as other components of interest in accounting for attitudes toward public management reform.     

Speaking Like Statesmen or Scientists: Differentiating Congressional and Administrative Views on Data

ABSTRACT

Do legislators and executives speak of data the same way when speaking about public sector data? Public management scholarship and public performance policies often emphasize data-driven decision making as the path to making government efficient and effective. Whether the public policy makers mean the same thing when they speak about data in discussions of data-driven performance and decision making is unknown. In this article, the authors present an analysis of the language of data in conversations about government performance. Two frameworks are identified for the role of data in public performance—the statesman’s and the scientist’s. A corpus-level analysis of over 30 years of government documents is used to demonstrate the differences between these two approaches. This research builds consciously on the work of previous scholars seeking to map the nuances of data-driven performance management policies in the U.S. federal government.     

Who Needs Leaders the Most? The Interactive Effect of Leadership and Core Self-Evaluations on Commitment to Change in the Public Sector

ABSTRACT

The purpose of this article is to shed light on an understudied topic in public administration, namely, commitment to organizational change. Specifically, this study examines the extent to which the quality of the relationship between employees and their managers positively influences employees’ commitment to change. Further, it investigates whether this relationship varies as a function of a person's core self-evaluations, that is, the valence of a person's self-regard. Evidence from a multivariate regression analysis in a public sector organization at the local level in the UK revealed that individuals who have high-quality relationships with their managers are more likely to be accepting of change; this is especially true for individuals with lower levels of core self-evaluations. Implications for theory and practice are discussed.     

New Perspectives on Public Service Motivation: Symposium Introduction

ABSTRACT

A possible “dark side” of goal setting, namely perfectionism and its relationship with employee performance, was investigated. A study of police officers (n = 235) revealed that perfectionists' predisposition to (1) set goals that they perceive to be extremely high, and (2) base evaluations of self-worth on the attainment of those goals were positively related to maximum performance, namely promotional exam scores. The mediating variable was perceived effort. In the second study involving police officers (n = 242), however, perfectionism displayed a complex relationship with typical performance. The two dimensions of perfectionism, perceived high goals and contingent self-worth, were negative predictors of this criterion through their relationship with emotional exhaustion. Nevertheless, the goal difficulty dimension was a positive predictor of typical performance.     

Malaysia's experience in implementing the new performance appraisal system

Malaysia introduced a new performance appraisal system in 1992, as part of its administrative reform efforts to improve the public sector performance in achieving higher productivity and service quality. The New Performance Appraisal System is a departure from the traditional system of appraising employees as it is a performance-based reward system and emphasis is given to performance planning, performance monitoring and review, performance feedback, and development of action plan to coach and counsel employees on an on-going basis. The most notable features of the NPAS include the need to set annual work targets and standards of performance between the manager and the subordinate, a mandatory mid-year review of the work performance in relation to the target set, the use of different appraisal forms for different categories of employees according to grades, and the setting up of a Panel on the Coordination of Performance Appraisal and Salary Progression in each ministry/agency to ensure fair, transparent and objective appraisal, and the selection of excellent employees for reward and recognition. Nevertheless, to ensure the effective implementation of the NPAS, various issues need to be addressed such as commitment by top management, rater bias, training and quotas for recognition and reward.     

Drifting towards convergence? Motivation and performance management in state and private companies in the provision of telecom services in Ghana

The concept of expectancy on which many of the theories of workplace incentive programmes are based, claims that when employees are given a particular level of motivation, it will result in some level of performance. The general perception in Ghana is that public sector employees do not perform as efficiently as private sector workers because they lack incentives to do so. However, few studies have compared the incentive structures of the two sectors. Using empirical evidence from four telecom companies in Ghana, this article shows that the gaps between ‘state’ and ‘private’ have narrowed. Also, while incentive structures such as salary, fringe benefits and job (in)security are converging, critical performance management processes like employees' participation in decision‐making, performance appraisal, monitoring and credibility of sanctions are drifting apart. This article concludes that differences in performance between state and private companies may be explained by performance management processes and not incentive structures. It cautions that improved salaries and other office perquisites may not by themselves achieve organisational performance. Rather, incentives should be embedded in a broader approach through effective performance management processes. The information in the article is relevant to the ‘borderline’ part of the public sector under a deregulated environment. Copyright © 2007 John Wiley & Sons, Ltd.     

The Role of Psychological Climate on Public Sector Employees' Organizational Commitment: An Empirical Assessment for Three Occupational Groups

ABSTRACT

In an effort to understand how proximal work environment shapes public sector employees' work attitudes, this study examined how perceptions of psychological climate were related to the extent of affective commitment in three occupational groups: clerical, professional, and managerial/executive. Data were gathered from 267 employees in 11 New York State agencies. Results indicated that the strength of association between measures of psychological climate and affective commitment varied across occupational groups. Implications of these results with respect to developing effective strategies for enhancing public sector employees' organizational commitment are discussed in detail.     

We All Need Help: “Big Data” and the Mismeasure of Public Administration

Rapid advances in our ability to collect, analyze, and disseminate information are transforming public administration. This “big data” revolution presents opportunities for improving the management of public programs, but it also entails some risks. In addition to potentially magnifying well‐known problems with public sector performance management—particularly the problem of goal displacement—the widespread dissemination of administrative data and performance information increasingly enables external political actors to peer into and evaluate the administration of public programs. The latter trend is consequential because external actors may have little sense of the validity of performance metrics and little understanding of the policy priorities they capture. The author illustrates these potential problems using recent research on U.S. primary and secondary education and suggests that public administration scholars could help improve governance in the data‐rich future by informing the development and dissemination of organizational report cards that better capture the value that public agencies deliver.