THE MANAGEMENT OF PUBLIC PROVISION

Abstract: This work addresses the special character of public management by positing some important distinctions under-represented in current academic literature. In exploring the primary distinction between public administration and public management, the analysis proceeds from a treatment of public management as control of a production process uniquely configured as a combination of policy brokerage and resource management, to a demonstration of the economic agency (value addition) of public managers. The paper also presents a contextual analysis of the scope and scale of the public sector as this pertains to a model of "public provision", and introduces some new ideas regarding the temporal characteristics of public management as it responds to a discrete set of three cycles: the budget cycle, the product cycle and the policy cycle.
This work aims to provide tools for analysis which both distinguish public administration from public management and distinguish the economic agency of private managers from that of public managers. The general argument is that the "public provision process", while similar to a conventional production process, contains unique and important responsibilities which need to be understood and defended. By the same token, public managers ought to be empowered by a knowledge and identity which express their importance as economic agents who contribute both to the commonweal and to the wealth of the nation.     

Institutional Constraints,Managerial Choices,and Conflicts in Public Sector Supply Chains

In this research, we compare the governance mechanisms that public sector managers and private sector managers leverage when responding to conflict in supply chain relationships. We find evidence that public sector managers are more likely than private sector managers to rely on written (formal) contract mechanisms, but that both public and private managers use relational (informal) governance mechanisms to similar extents. We also find that managers from both sectors perceive an improvement to the quality of the exchange relationship when a relational approach is emphasized in managing the conflict. Our research provides an important contribution to our understanding about the actions public managers take in dealing with supply chain conflicts and suggests potential policy alternatives to foster contracting efficiency and effectiveness.     

New Public Management and ‘Photocopy’ Bargaining in the Australian Public Service

The industrial relations policy of the Federal Coalition Government is to encourage industrial bargaining to occur at the enterprise or individual level, free from ‘outside’ influences. While it encourages devolved bargaining at the agency and individual level within the Public Service (Australian Public Service) this policy creates tensions with its role as a centralized policy maker, economic manager and employer of the APS workforce. It also conflicts with the APS' adoption of New Public Management. In practice, the government retains considerable centralised control over agency bargaining outcomes, which is a de facto method of pattern bargaining. By analysing the substantive outcomes from nine APS agency level certified agreements (hours of work, pay and leave entitlements), the article discusses whether this one size fits all' model is evidence of an appreciation that public sector industrial relations is separate and distinct from private sector industrial relations, or another example of duplicity in the federal coalition government's ideology driven approach to industrial relations.     

From New Public Management to Public Value: Paradigmatic Change and Managerial Implications

Both practitioners and scholars are increasingly interested in the idea of public value as a way of understanding government activity, informing policy‐making and constructing service delivery. In part this represents a response to the concerns about ‘new public management’, but it also provides an interesting way of viewing what public sector organisations and public managers actually do. The purpose of this article is to examine this emerging approach by reviewing new public management and contrasting this with a public value paradigm. This provides the basis for a conceptual discussion of differences in approach, but also for pointing to some practical implications for both public sector management and public sector managers.     

The political economy of an African public enterprise: A longitudinal case study of the administrative and economic operations of the Sierra Leone Port Organization

In most of the post-colonial states of sub-Saharan Africa, both the size of the state bureaucracy has grown and its functions proliferated. Whatever the economic rationale of public sector organizations, they do not exist and operate in a social and political vacuum. This paper argues that they are typically an integral part of a patron clientelist political and economic system on which the foundations of government sometimes depend. The consequences for the economic performance of public sector organizations arising out of this socio-political context is now widely recognized in the growing literature on African public enterprise. Contributions to this discussion, however, have tended to be dominated by economists and public administration specialists who have generally adopted a technocratic problem solution approach. In isolating their analyses of the performance of African parastatals from an appraisal of the role of the state, this approach fails to situate adequately the problem of performance in its proper context. This paper provides a case study which examines the administrative and economic operations of the Sierra Leone Port Organization in the colonial and post-colonial states. In arguing that problems of performance of African public sector organizations also require political solutions this discussion extends the discussion beyond a technocratic focus.     

Herbert Simon’s Forgotten Legacy for Improving Decision Processes

ABSTRACT:

Public administration scholarship could benefit from a return to its Simonean roots for distinctively managerial insights about decision processes. Though Simon is often juxtaposed with Dwight Waldo and portrayed as a rationalist focused on the limits of human cognition, a full understanding of his work reveals a rich understanding of the decision context that managers face. Simon argued that decisions should (1) account for norms and values; (2) link means to ends; (3) identify feasible alternatives; and (4) automate processes where automation improves transparency and evaluation. To date, economics and psychology have exploited these insights to a greater degree than has the study of management and administration in the public sector. We use one example of a structured decision process in a salmon fishery and another in a case of religious and cultural conflict in schools as illustrations of the potential for Simon’s decision principles to improve public sector decision making.     

Registered Traveler Program: The Financial Value of Registering the Good Guys

We discuss how the Registered Traveler (RT) program can enhance simultaneously aviation security and passenger convenience. We point out some of the potential weaknesses in the program from both a security and civil liberty perspective. The RT program is a public–private partnership between the Transportation Security Agency (TSA) and the private sector. As in any partnership between private enterprises and the public sector, there are tensions that must be monitored, managed, and resolved. We note that financial distress of a RT service provider will place increased pressure on TSA resources. We review the resources allocated by the public and private sectors and the natural tensions that exist between companies investing capital with the expectation of earning a market rate of return and an agency of the Department of Homeland Security, the TSA, with one of its responsibilities being to assure the safety and security of air travel.     

Outsourcing Public Health Laboratory Services: A Blueprint for Determining Whether to Privatize and How

In a continuing effort to reform and reinvent the way public organizations do business, the outsourcing of services has become a popular tool, particularly as resource constraints limit options available to governments. All too often, the decision is made, for reasons of ideology or resource constraints, to outsource services without giving careful consideration to the impact of privatization on the core missions of an agency, or whether privatization, in fact, offers real cost savings. Purchasing tools designed for traditional commodity purchases are often grossly unsuited for making decisions on specialized technical services.
This article suggests a process for the evaluation of an option to outsource laboratory services. It suggests that, prior to contracting or privatizing services, the concerned agency should evaluate:
the impact on the agency's core mission
the availability, stability, and reliability of private sector service providers
the relative costs of internal and external (public or private sector) service providers
the potential impact on regulatory enforcement
the ability to monitor the performance of external providers
potential conflicts of interest
Based on this model, the ongoing internal evaluation of services offers public agencies management tools to obtain the best value for the taxpayer dollar, not only in terms of the raw cost per test, but also in managing the quality of the services.     

The “baby steps” in mainstreaming sustainable public procurement in Ghana: A “double‐agency” perspective

The emerging literature on public procurement policy suggests that public procurement may be leveraged to advance several public policy agenda. Hence, many countries have reformed their public procurement process towards social and environmental outcomes termed sustainable public procurement. These reforms have often been launched in response to international initiatives such as the global 10‐year framework for action on sustainable consumption and production by the Johannesburg implementation plan in 2002 and the Sustainable Development Goals. Yet, empirical evidence on the drivers and benefits of SPP in developing countries is still scarce. This gap is addressed with a qualitative case study of six public sector institutions in Ghana. On the basis of elite interviews, this paper highlights barriers to mainstreaming SPP in Ghana's public sector. We further advance the scanty principal–agency literature by establishing a double‐agency relationship in the context of SPP, which depicts limited agency cases where principals lack the capacity to defend their own interests.     

A Comparison of the Values and Commitment of Private Sector, Public Sector, and Parapublic Sector Employees

This study investigated differences in general values, work values and organizational commitment among 549 private sector, public sector, and parapublic sector knowledge workers. No differences in general values were observed across sectors, although five significant work value differences were revealed: parapublic employees value work that contributes to society more than public servants, who value it more than private sector employees; parapublic employees value opportunities for advancement less than both public and private sector employees; public servants value intellectually stimulating and challenging work more than parapublic employees; and private sector employees value prestigious work more than public servants. Private sector employees displayed greater organizational commitment than the employees in the other two sectors. Overall, the findings suggest only limited value differences among employees of the various sectors. The finding of some work value differences between employees in the public and parapublic sectors suggests that these two groups merit separate consideration in comparative studies such as this one.     

PRODUCTIVITY IMPROVMENT IN GOVERNMENT AGENCIES: AN ETHICAL PERSPECTIVE

The general nature of the productivity ethic is discussed, with i t s limitations i n the public sector being stressed. The economic institutional model upon which the private sector business productivity construct is built is compared with the political institutional model operating in governmental agencies. Value paradoxes and dilemmas of government policymakers and administrators supporting agency productivity improvement efforts are analyzed. The study concludes that a better understanding of the limited nature of the productivity vision as well as i t s unique ethical characteristics would do much to improve governmental performance and the morale of public employees.     

US state government privatization: Implications for social equity and inequality?

Privatization of state government services is commonplace, but our understanding of its effects is limited by data availability. We study the relationship between American state government contracting and public sector wages. Governments have used public sector employment to support a variety of goals, including social equity and economic development, but privatization, as a new public management (NPM) reform, may shift the focus. Our empirical analysis shows that state privatization of service delivery is associated with decreases in the public sector wage premium, but that these effects are not driven by gender, race, or low-levels of educational attainment. The fidelity of the implementation to NPM values conditions these effects. We also find that contracting service delivery is associated with a lower public sector wage premium for middle-class workers.     

Economic Rationalism and Public Sector Ethics: Conflicts and Catalysts

Given recent focus on unethical activity and failings in corporate governance in the private sector, this paper briefly overviews the application of 'economic rationalism' in public administration and its impacts on the ethics of public sector decisions. It is argued that although 'unethical' decisions in public administration may be influenced by the economic imperatives embodied in 'economic rationalist' policies, it does not follow that the application of economic principles is necessarily inconsistent or injurious to ethical outcomes. In many instances the application of economic principles in public administration adds value by making existing ethical conflicts transparent and enabling more informed decisions.     

Formal Procedures, Informal Processes, Accountability, and Responsiveness in Bureaucratic Policy Making: An Institutional Policy Analysis

This study examines the role of public notice and comment in the development of 42 rules. These procedures can provide useful information to policy makers about the preferences of those who stand to be affected by agency actions. More importantly, they serve as cues for the accommodation of interests and the resolution of conflict through processes that are grounded in agencies' accountability to political officials. Yet, an examination of the interrelationship between formal, procedural constraints and the informal processes surrounding them reveals that the effects of notice and comment in promoting bureaucratic responsiveness are limited in ways that have received little systematic analysis. A consideration of the tension between the instrumental goal of procedural accountability and the political tasks that often dominate bureaucratic policy making suggests that it is desirable to return to the original use of notice and comment as a device for exposing agencies to the views of affected interests.     

An Options Pricing Method for Calculating the Market Price of Public Sector Pension Liabilities

State and local public sector employee pensions are widely known to be underfunded, but pension financial reports do not reveal the true extent of funding shortfalls. Pension accounting methods assume that plan investments can earn high returns without taking any account of the market risk involved. This gives a false sense of the financial strength of public sector pensions and understates risks to taxpayers. Since accrued pension benefits are legally and constitutionally protected, any pension funding shortfalls must be met by taxpayers. This benefit guarantee amounts to an effective put option on plan investments, the cost of which is not disclosed under current actuarial accounting. This paper uses an options pricing method to calculate the market value of taxpayer guarantees underlying public sector pensions. The average funding ratio declines from 83 percent under actuarial accounting to 45 percent under this options pricing approach. The typical state has unfunded public pension liabilities three times larger than its explicit government debt. Public pension shortfalls equal an average of 27 percent of state gross domestic product, posing a significant fiscal challenge in coming years. Accurate measures of public pension liabilities are important for policy makers, taxpayers, investors considering the economic environment in which to start or locate a business, and bond purchasers considering the risk premia appropriate to municipal government bonds that are in practice subordinate to public pension liabilities.     

What Explains Agency Heads’ Length of Tenure? Testing Managerial Background,Performance, and Political Environment Effects

There are a number of influences on how long an agency head serves. The importance of particular influences, in turn, depends on the prospective destination of the agency head: elsewhere in the public sector, the private sector, or retirement. The authors estimate survival models of agency heads’ tenure using panel data on British central government executive agencies from 1989 to 2012. Findings suggest that chief executives of poorly performing agencies are encouraged to retire sooner. There is no evidence that a change in political control increases the risk of any form of exit, suggesting that political pressure to leave is not substantial for this type of official. Outsiders—agency heads recruited from outside central government—are relatively difficult to retain for a longer time, such that potential shortfalls in suitable managers caused by retirements in an aging workforce may be difficult to make up by appointing from this source.     

Global Public Policy, Partnership, and the Case of the World Commission on Dams

This article examines the potential for partnership to address two major challenges in public service: (1) the evolving sociopolitical context of public service, that is, the increasing incidence and intensity of conflict among diverse stakeholders; and (2) the formulation of acceptable and feasible global public policy. The partnership approach, its value added, and its operationalization are examined through the World Commission on Dams, a partnership designed to resolve conflicts over large dam projects. The analysis identifies lessons that are specific to conflict-based partnerships for global public policy making and regarding partnership work more generally. The importance of converging interests, policy champions, democratic processes, and perception are highlighted. Intense conflict provides incentives for joint solution, but process agreement is paramount, and conflict resolution is not a one-time effort for all. The World Commission on Dams demonstrates that partnership is an effective and efficient approach to addressing conflictive policy issues.     

The utility of bonding social capital

Abstract

In most studies of social capital, bridging social capital is emphasized as ‘good’ for democracy and economic performance. It is rarer to find studies showing that bonding social capital can bring positive effects. Mostly, bonding social capital is either overlooked or depicted as the ‘villain’ that leads to ethnic conflict, intolerant behaviour and poor economic and democratic development. In this article, it is argued that this picture needs to be revised. If we assume that bonding trust is a negative force for development and democracy, we ignore a substantial portion of the political history of the West. Also, new empirical evidence from India suggests that bonding social capital is related to good governance. High levels of bonding trust cannot only facilitate political cooperation. They may also work as a shield against public sector employees who attempt to exploit citizens in a corrupt or clientelistic manner. The conclusion drawn in the article is that the view of social capital as a prime mover with inherent normatively attractive qualities should give way to a perspective where social capital is more properly regarded as an intermediate variable where the way it is combined with, or interacts with, other factors determines outcomes.     

The Northern Ireland Peace Process in an Age of Austerity

The steady drip of dissident Republican attacks forms the backdrop to this special issue of Political Quarterly. Moreover, this comes at a time of economic austerity, when Northern Ireland faces unprecedented cuts to its public sector‐dominated economy. The economic crisis in the South adds an additional layer of uncertainty to the picture. In the past, economic deprivation has been associated with conflict in Northern Ireland and elsewhere. Might the peace dividend and constitutional settlement which have underpinned the Northern Ireland ‘miracle’ since 1994 be under threat? Or is there now sufficient momentum in both of Northern Ireland's main ethnic communities that such an outcome can be safely averted? This paper summarises the thinking of our symposium and special issue on this topic, updating our picture of the Northern Ireland peace process.