How Do Performance Gaps Affect Improvement in Organizational Performance? Exploring the Mediating Roles of Proactive Activities

Abstract

According to the extensive literature on performance gaps, the various reference points of the problem identification process affect the managerial decisions of public managers. In this article, we propose a theory about the public management decision-making processes based on the roles of proactive behaviors, specifically regarding how identifying such problems (performance gaps) leads to performance improvement. Using panel data from Korea covering 2005–2014, this analysis provides support for our assertion that not all reference points are equally important to public managers’ proactive responses; however, we find evidence supporting the importance of perceiving the external reference point of problem identification as a significant precedent for successful organizational performance. Our results also indicate that practitioners need to become involved in greater feedback processes when searching for proactive solutions that remedy poor organizational performance. This suggests that the creation of diverse and sophisticated performance feedback systems can strengthen public managers’ abilities to find solutions for organizations. Ultimately, the findings enhance our understanding of the relationship between performance gaps and performance improvement by examining the role of public managers’ proactive behaviors.     

Emerging Indicators and Bureaucracy: From the Iron Cage to the Metric Cage

ABSTRACT

Among the New Public Management (NPM) tools that have been implemented, one of the most common is use of indicators. Many studies have argued that imposition of an indicator entails a bureaucratization process. But the scholarly debate on these instruments has been shaped by a vertical perspective and has been focused on the effects of top-down indicators on organizations at the local level. In this paper, we wish to lay the emphasis on an emerging indicator, constructed and used by the actors themselves within a local forest management unit. We wish to draw attention to the manner in which, at the micro-level, a performance measure is worked out. We argue that these emerging indicators place a new locus of power in the hands of rangers but, rather than emphasizing hierarchy and chain of command, such indicators do not contribute to development of a Weberian iron cage. In contrast, there appears a metric cage, a mix of pragmatic rationality (instrumental and communicative), non-fixed rules, and technical-normative authority.     

Managing in the Regulatory Thicket: Regulation Legitimacy and Expertise

Although the influence of government regulation on organizations is undeniable, empirical research in this field is scarce. This article investigates how the understanding of and attitudes toward government regulation among public, nonprofit, and for‐profit managers affect organizational performance, using U.S. nursing homes as the empirical setting. Findings suggest that managers’ perceptions of regulation legitimacy—views of regulation fairness, inspectors’ effectiveness, and internal utility of the mandates—positively affect service quality. Subgroup analysis suggests that managers’ views of regulation matter in nonprofit and for‐profit organizations but not in public organizations. In nonprofit homes, performance declines when managers report higher regulatory expertise—better knowledge of the regulatory standards. In for‐profit facilities, frequent communication with regulators lowers quality. These findings suggest that the regulated entities’ views of government regulation are central to their success, which necessitates improvements in the regulatory process.     

Ethnic Diversity and Organizational Performance: Assessing Diversity Effects at the Managerial and Street Levels

ABSTRACT

As the public sector workforce becomes more ethnically diverse and as government agencies make attempts to manage that diversity, the importance of understanding how diversity affects workplace interactions and work-related outcomes increases. Little public-sector research has examined the impact of diversity on performance outcomes. This article seeks to fill this gap by studying the effects of the ethnic diversity of managers and street level public officials on work-related outcomes. We use basic in-group/out-group theories from psychology to formulate research questions relating diversity and performance, along with empirical research on the effects of diversity on work-related outcomes. We then use data from schools to test the relationship between ethnic diversity and organizational performance, identifying different impacts for managerial diversity and diversity among teachers. Results are consistent across three different models: manager diversity is routinely non-significant in predicting organizational performance, while teacher diversity has a consistently significant, and negative, impact on performance. These findings suggest that process-oriented problems are causing diverse organizations to experience drawbacks instead of gains, and that any benefit that could be drawn from a diversity of viewpoints is overshadowed by communication and collaboration problems.     

Management Activity and Program Performance: Gender as Management Capital

Do men and women manage differently? Do their efforts have different impacts on public program performance? Building from a formal treatment of public management and performance, this study investigates how the interaction of gender and management strategies influences organizational performance. Focusing on several hundred public organizations and their top managers over a three‐year period, the analysis maps the gender question onto Mark Moore's distinction among managing upward toward political principals, downward toward organizational agents, and outward toward the networked environment. Findings indicate that women and men as top managers have different performance impacts, and these impacts vary by managerial function as well.     

The Reformer's Spirit: How Public Administrators Fuel Training in the Skills of Good Governance

The public administration literature has long identified public administrators as key players in achieving government reform. Public managers may be motivated to provide employee access to training in governance skills by several factors, including the need to fulfill the current functions of government, to expand employee responsibilities, or to reform administrative processes and/or programs. The authors examine the impact of public managers on the availability of governance skills training by observing how the desire to achieve reform influences their training decisions in light of other motivating factors. They find that training in citizen input, client relations, and performance indicators are significantly and substantively more prevalent in organizations when public managers believe that such training is necessary for reform, and that the more “democratic” a skill, the more likely a reform motivation will outweigh other factors.     

Marching to Different Drummers? The Performance Effects of Alignment between Political and Managerial Perceptions of Performance Management

The relationship between politicians and bureaucrats is central to the administration of modern democratic societies, yet it often is neglected in studies of the performance of public organizations. In this article, the authors examine the performance effects of alignment between politicians’ and senior managers’ perceptions of one of the more pervasive public management reforms over recent decades: performance management. Evidence from a panel of English local governments supports the hypothesis that alignment of views between politicians and senior managers on performance management is associated with better organizational performance. Furthermore, this relationship is strengthened in organizations that display higher levels of role flexibility by managers and greater trust between politicians and managers.     

公共组织及运行评价的国际经验与启示

现代社会中,对公共组织及其运行的评价具有重要的现实意义。从国际经验看,对公共组织及其运行的评价特色在于以治理理论为依托;以共识性的公共价值为评价的主要内容;以规则性指标和实践性指标相结合;以单一性指标和综合性指标相结合;以客观指标和主观指标相结合;以过程指标与绩效指标相结合;注重将新的时代元素融入评价内容,回应复杂环境的挑战;重视持续性和规范性。对我国而言,应该以国际经验为参考,以我国国情为基础,发展出一套本土化的评价指标体系,并建立可持续的评价机制。     

The effects of boundary spanners on trust and performance of urban governance networks: findings from survey research on urban development projects in the Netherlands

Previous research has extensively analyzed the role, and indicated the importance, of network management for the functioning and performance of public or governance networks. In this article, we focus on the influence of boundary spanning actors in such networks—an aspect less examined in the governance network literature. Boundary spanners are considered to be important for governance network performance. Building on the literature, we expect a mediating role of trust in this relationship. To empirically test these relationships, we conducted survey research (N = 141) among project managers involved in urban governance networks: networks around complex urban projects that include the organizations involved in the governance process (the formulation of policies, decision making, and implementation) in these complex projects. We found a strong positive relationship between the presence of boundary spanners and trust and governance network performance. The results indicate a partially mediating role of trust in this relationship. Furthermore, we found that these boundary spanners originated mainly from private and societal organizations, and less from governmental organizations.     

Making Good Use of Partners: Differential Effects of Managerial Networking in the Social Care Domain

ABSTRACT

Public managers engage in networking relationships with a wide variety of external actors and organizations from which they can draw different types of support and resources. Most empirical studies on managerial networking merely present different intensities of external networking in general, as if it were a unidimensional concept. In practice, however, public managers strategically differentiate between functional or task-related groups of external partners, based on the specific policy context. Moreover, such differentiation in networking behavior can be expected to systematically impact agency and public program performance outcomes. This article derives contextualized hypotheses on how managerial networking affects the performance of Dutch local governments in the social care domain. Multilevel structural equation analyses of 3,257 social care clients in 71 local governments provide evidence that bilateral client-interest networking is more beneficial to the Social Support Act's overall goal of improving the level of social participation of clients than professional networking. Moreover, the effect is indirect: managerial networking with client interest groups improves the physical self-reliance of clients, enabling them to engage in social activities.     

Collaborative Behavior and the Performance of Government Agencies

ABSTRACT

While collaboration among individuals, work groups, and organizations is central for understanding the performance of public agencies, most studies have focused on collaboration between organizations or sectors. We develop a model that focuses on two types of collaborative behavior: between persons (both horizontal and vertical) and between work units. We empirically test our hypotheses using data on work collaboration and perceptions of public agency performance from the United States federal government. We introduce a method for estimating the impact of different types of collaborative behavior that also accounts for nonlinear effects and a dependent variable that takes ordered values. We find that intra-organizational collaborative behavior has a large impact on organizational performance and that horizontal collaborative behavior between workers has the greatest impact among the specific types.     

The Impact of Customer Orientation on Government Employee Performance

ABSTRACT

This article explores the impact of “customer service” orientation on government employee performance. Although public organizations have been encouraged to become customer-centered organizations, concerns exist about the application of such market orientations to the management of government organizations. This article joins in the customer orientation debate by exploring the impact of customer orientation on employee motivation and performance. Using quantitative and qualitative analysis of data from civilian employees at a Department of Defense installation, this study explores the impact of customer orientation on employee performance and motivation, across time and work roles.

Consistent with previous research that suggests that customer orientation is positively associated with public and private employee performance and work attitudes, the results of this study suggest that customer service orientation has a strong positive impact on employee performance and motivation. Employee customer orientation provides a connection to the organization's goals consistent with employees' affective and normative values of public service, and feedback necessarily to improve service delivery. The impact of formal management systems may be enhanced by their ability to strengthen an employee's customer orientation. Ultimately, however, efforts to create a more “market”-based orientation focused on institutional customers who purchase services may have limited impact, or even a deleterious effect on, employee performance and motivation, unless also accompanied by formal linkages to service beneficiaries.     

Philanthropy and the housing crisis: The dilemmas of private charity and public policy

Abstract

American philanthropy has historically sought to address the nation's housing crisis, especially among the poor. This article compares private philanthropy's response to the housing crisis in two important eras of economic transformation: the period between the Civil War and World War I (the Progressive Era), when the United States was undergoing large‐scale urbanization and industrialization, and the period from the 1980s through today, when the United States became integrated in a global economy and confronted the shock of deindustrialization, widening economic disparities, and deepening urban decay.

Following the historical review, the article focuses briefly on the current housing crisis and the dilemmas that private foundations and nonprofit organizations face in trying to develop a coherent strategy to address the problem. It closes with a proposal for a partnership between private foundations and housing organizations that can address the need to change both public opinion and public policy toward housing.     

A Review of: “Lessons of Disaster: Policy Change After Catastrophic Events by Thomas A. Birkland”

ABSTRACT

Managers in many public domains have to meet major challenges today, which is why it is essential to focus on their working conditions in order to develop a sustainable situation. In the present study, the aim was to explore different types of managerial situations and how they discriminate in health, motivation, and performance outcomes. Using the job demands-resources model as a framework, four demands and three resources were included in a cluster analysis in order to answer the research question. In total, 548 managers in Sweden participated, including heads of department, middle managers, firstline managers, team leaders, and functional managers. The most important finding was that the eight clusters of managerial situations that were found discriminated in a distinct way against each other regarding health, motivation, and performance. The results can be used as guidance for organizational intervention as both very satisfactory and very unsatisfactory situations are identified.     

对各国非营利组织理事会绩效评价研究的分析与评述

理事会是非营利组织的管理、决策及监督机构,也是非营利组织的核心资源,理论和实践表明,理事会绩效与非营利组织绩效存在正相关关系,非营利组织理事会绩效的评价有助于理事会的开发和组织治理水平的提高。本文以绩效评价的四个核心内容：绩效内容与范围的界定、绩效指标设计、绩效数据收集与分析、绩效评价结论为线索,对各国非营利组织理事会绩效评价研究进行综述,以期为同行及社会各界的研究提供参考。本文对绩效指标的具体测量与计算方法未予展开,也没有论及非营利组织理事会绩效评价的局限性。     

Advice Networks in Public Organizations: The Role of Structure,Internal Competition,and Individual Attributes

Interpersonal networks are increasingly important for organizational learning and performance. However, little is known about how these networks emerge. In this article, exponential random graph models are employed to explore the underlying processes of advice network formation in 15 organizations. The author examines the influence of (1) structural effects (reciprocity, transitivity, multiplexity), (2) actor attribute effects (job function, tenure, education, self‐efficacy), and (3) peer competition. Results suggest that employees rely more on reciprocity, closure, and similarity in job function than on peer expertise or status when seeking advice. In addition, employees who perceive greater levels of competition with peers are significantly less likely to both seek and provide advice. As public organizations look to private sector strategies that promote internal competition to improve efficiency and accountability, public managers need to be aware of the negative implications those strategies can have on interpersonal networks and organizational learning.     

The Politics of Governance Ratings

ABSTRACT

Some international organizations, and most prominently the World Bank, play a leading role in the supply of cross-country governance ratings. The paper draws on interviews of World Bank staff to understand why the World Bank produces cross-country comparable indicators and to bring to light the current controversies within the World Bank about existing indicators and future work on governance indicators. It also attempts to explain why so many external users rely on the Worldwide Governance Indicators, despite the limitations of these indicators and the large number of more meaningful, alternative indicators available. It argues that both robust and meaningful indicators and more qualitative research are necessary to give better reform advice to developing countries.     

Mayoral Public Sector Work Experience and Tax Collection Performance in Colombian Local Governments

ABSTRACT

Local governments in Latin America tend to have limited capacity to collect taxes. Existing theory explains tax collection performance as a function of political, socio-economic, and cultural factors. Yet across Latin America, tax collection performance varies greatly between localities that are similar along these dimensions. We suggest that organizational capacity, represented by managers' human capital, explains variation in local tax collection performance. We test this theoretical idea against panel data on most Colombian local governments, where elected mayors are the top managers determining the local tax collection strategy. We examine two indicators of tax collection performance: (1) the per-capita amount of property tax collected and (2) property tax collected as a percentage of total property valuation. Controlling for important confounders, the length of the mayor's prior public sector work experience is positively associated with the per-capita amount of property tax collected but not the percentage of total property valuation collected in property tax. Our results suggest that Colombian mayors gain relevant skills over their career. Our study has implications for other developing countries with a similar property tax collection system.     

Managerial Networking in Nonprofit Organizations: The Impact of Networking on Organizational and Advocacy Effectiveness

Public management scholars are interested in the ways that public managers can improve the performance of their organizations and, by extension, public service outcomes. However, public sector outcomes are increasingly being produced by nonprofit organizations. Nonprofits have encountered increased pressures to improve effectiveness in recent years, both from their funding entities and from the public. A growing body of public management research has shown that managerial networking can pay dividends for organizational effectiveness, yet no studies to date have considered the effects of managerial networking on nonprofit effectiveness. This is the first study to apply the basic elements of Meier and O'Toole's model to the nonprofit sector. Using survey data from a random sample of 314 nonprofit human service organizations in 16 U.S. states, the authors explore the frequency of various networking relationships on organizational and advocacy effectiveness. The findings reveal that political networking increases advocacy effectiveness and community networking increases organizational effectiveness.     

How Organizational Identity Affects Hospital Performance: Comparing Predictive Power of Mission Statements and Sector Affiliation

Abstract

Organizational identity is an important concept in organizational theory, as it can contextualize the behavior of organizations and members. The literature presents divergent perspectives on organizational identity: some studies have characterized organizational identity as constrained by institutional forces, whereas others have contended it is socially constructed by organizational members. Studies have largely focused on the former perspective, measuring organizational identity by sector affiliation; the latter approach has rarely been empirically tested. Therefore, in addition to sector affiliation, this article proposes a different approach to operationalizing organizational identity by examining hospitals’ mission statements. The study also examines which of these dual forces have more predictive power regarding organizational performance. Together with hospitals’ sector affiliation, we test how the presence and frequency of mission statement language regarding access, cost, quality, or unique organizational values affect hospitals’ various performance metrics. Regression analyses with 172 acute hospitals in Florida reveal significant relationships between types of mission statement content, sectors, and performance indicators.