Goats or wolves? Private sector managers in the public sector

Public administration reforms have propagated the use of private sector management skills in the public sector, and an increased openness to managers with a private sector background. This has created a debate between those who think private sector experience improves public institutions by bringing core managerial values such as results orientation, efficiency, or openness to innovation, and those who argue that private sector experience can damage core public sector values, such as impartiality and equity. Despite the abundant anecdotal evidence, broad empirical evidence on the effects of private sector experience on public managers' values remains limited. Using data from a survey among central government top managers in 18 European countries, we show that public managers with private sector experience have, as expected, more core managerial values. Yet, unlike the conventional view, core public values do not suffer.     

Breaking down the barriers? New public management in the European commission

On 15 March 1999, the mass resignation of the College of Commissioners amidst accusations of fraud, mismanagement and nepotism was the catalyst for potential transformation of the European bureaucracy in a radical way. The Commission is at the centre of networks of European governance but it only demonstrates a ‘shadow of a cohesive administrative culture’ (Cini 1996: 223). The managerial reforms which have finally been engaged by the Commission twenty years later than its member countries focus primarily on efficiency and accountability in order to bridge the ‘EU's management deficit’ (Metcalfe 2000: 824). This paper seeks to argue that reforms in the European Commission can only be successful if a cultural analysis is carried out, developing a distinctive approach to European public management in order to lay the basis for new forms of European governance. Copyright © 2002 Henry Stewart Publications.     

Trends in the Higher Civil Services of Anglo-American Systems

The managerial reforms that have been implemented in the public sectors of many countries over the past decade are part of an international trend (Aucoin 1990, 134). Managerial reform in public administration can be seen as a Zeitgeist , a pervasive idea whose time has come. As Caiden (1988, 354) points out, effective administrative reform can be sustained only by a "crusading spirit" or the burning flame of idealism, and such a flame has blazed up in the past ten years. History may well show that the managerial reforms of the late 20th century had as dramatic an impact on public administration as the merit reforms of the late 19th century.
These managerial reforms have invariably involved an emphasis on giving the public better value for money, and have usually included the introduction of efficiency measures and corporate planning techniques, the improvement of financial management procedures, the assessment of performance in terms of results against goals, the adoption of private sector human resource management practices, and the use of management information systems and other management tools. The implementation of such managerial reforms has typically been heralded by the establishment of a unified elite group of senior executives in the higher civil service. This paper reviews the recent trends in the higher civil services of America, Canada, Britain and Australia, and considers how they exemplify the managerial approach to administrative reform.¹     

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.     

Managing for Results in State Government: Evaluating a Decade of Reform

State governments in the United States have enthusiastically embraced the idea of managing for results. This appears to represent a victory for New Public Management policy ideas transferred from New Zealand, the United Kingdom, and Australia. The managing for results doctrine that emerged from these countries called for an increased focus on results but also increased managerial authority to achieve results. In return, it was claimed, governments would enjoy dramatic performance improvement and results-based accountability. This article assesses the implementation of public management reform in the United States and argues that the managing for results doctrine has been only partially adopted. State governments selected some of the New Public Management ideas but largely ignored others. In short, state governments emphasized strategic planning and performance measurement but were less successful in implementing reforms that would enhance managerial authority, undermining the logic that promised high performance improvements.     

What could be achieved with greater public hospital autonomy? Comparison of public and PNFP hospitals in Uganda

The policy of hospital autonomy has been discussed for some time in Uganda. There is little evidence from Uganda or elsewhere that increased autonomy will improve hospital performance. This article compares the performance of three private not‐for‐profit (PNFP) and public hospital pairs to address this question. PNFP and public hospitals have similar management structures but PNFP hospitals had better trained managers and a church affiliated chair in the hospital management committee. Both types have problems with personnel management but these appear more pronounced in public hospitals. Drug supply management appears better in PNFP hospitals. Overall, workloads are similar, but analysis of patterns of utilisation and prices across services suggest that patient choice of facilities is influenced by relative price levels, and that willingness to pay is higher for PNFP services. PNFP hospitals are more successful at generating revenue. There are no clear differences in efficiency between PNFP and public hospitals but there is some evidence of higher quality levels in PNFP hospitals. PNFP hospitals' performance is plausibly related to three areas of managerial autonomy. First, better management of drug supply is facilitated by their freedom to purchase drugs from the open market. Second, greater success with personnel management is plausibly related to their greater autonomy over staffing. Third, higher levels of cost recovery are enabled by their freedom to set fees. However, differences in accountability and competence of hospital management, and population willingness to pay for services may also help to explain differences. Further, the use of PNFP financing strategy by public hospitals has implications for universal access to hospital services. Although there appear to be potential advantages from greater public hospital autonomy, the Ugandan government should ensure it has developed strategies to enhance public hospital management and to protect access to public hospitals before advancing further with hospital autonomy policy. Copyright © 2002 John Wiley & Sons, Ltd.     

From managerial reform to democratic reformation: Towards a deliverative public administration

In the State of Victoria, Australia the Kennett government implemented a radical public sector reforms matched perhaps only in Britain and New Zealand. Responding to fiscal crisis, the Government balanced the budget, attracted new investment and capital projects, and instilled new economic confidence. However, the revolution had its costs. This article examines the effects of managerial reform on accountability and democracy. The structures, systems and methodologies of the Government eliminated real deliberation over options, benefits and costs. The quality of public discourse between government and constitutents about the democratic process was stifled. An economic and fiscal perspective replaced a political and legal understanding of public bureaucracy. The article provides a case study of Victorian reforms, and a theoretical examination of the case, suggesting that public administration should be reconceptualized in more pluralistic and democratic terms.     

Reinventing the Governance of Public Finances in Remote Indigenous Australia

The economies of remote Indigenous settlements are dominated by public finances. The current system of governing public finance is highly saturated, fragmented and centralised, and this has a corrosive effect on local governance capability. The political accountability of leaders to their constituents is weakened in favour of an administrative accountability ‘upwards’ to higher authorities. New Public Management reforms have promoted administrative deconcentration, over political devolution, and this has been accompanied by an influx of public servants, Non‐Government Organisations (NGOs) and private contractors, and a decline in Indigenous organisations and local government. The end result in many settlements is a marked disengagement of Indigenous people in their own governance. There is evidence of considerable political capabilities existing within local government electorates. Decentralised financing arrangements can be used to catalyse these capabilities and then address deficits in administrative and technical performance.     

The Synthetic Control Method for Comparative Case Studies: An Application Estimating the Effect of Managerial Discretion Under Performance Management

Public management researchers are often interested in estimating the effects of aggregate-level management reforms and policy changes, but they frequently rely on observational data that pose a number of threats to internal validity. The synthetic control method for comparative case studies (SCM) has great potential for advancing public management scholarship by addressing some of the methodological challenges associated with observational data and providing intuitive graphical results that help researchers communicate their findings to audiences unfamiliar with quantitative methods. SCM uses a transparent, data-driven algorithm for selecting a weighted combination of control units that act as a plausible counterfactual for estimating causal effects. This article demonstrates SCM by investigating the effect of enhancing managerial discretion under performance accountability systems in the context of public education. The article also provides a number of possible avenues for future public management research using SCM and practical guidance for applying the method.     

Regulating Public Services: How Public Managers Respond to External Performance Assessment

Performance management systems have become a key component of contemporary public administration. However, there has been only limited analysis of the social construction of performance by public managers who are subject to them. This article examines the ways in which public managers create, maintain, and disrupt performance management practices. The authors find that managers make external performance assessments perform for themselves by constantly negotiating boundaries in ways that combine bureaucratic and managerial rationales. The authors argue that the ways in which organizational boundaries are constructed are fundamental to understanding the success or failure of performance management systems and the transformation of managerial ways of thinking about performance into a logic of improvement through which contemporary public sector reforms become embedded.     

THE FINANCIAL ACCOUNTABILITY AND CONTROL STRUCTURE OF PUBLIC SECTOR UTILITIES*

Abstract: Profit-based financial measures have been given prominence in the present financial accountability and control systems of public sector utilities in Australia. As a result, periodic evaluation of financial accountability and managerial performance suffers from a lack of objective-orientation. Assessing the financial accountability and controlling the activities of public utilities properly requires information consistent with their operational environment. Neither clear financial policies and targets, nor a set of environment-specific performance measures have been outlined by the government. The paper proposes that, in addition to profit measures, consideration should also be given to non-profit measures if an improvement is really desired in the monitoring of managerial performance and in accountability of those utilities which operate in virtual monopoly or near-monopoly situations.     

Public service reform: A comparative west European perspective

This article compares recent public service reforms in Britain, France and Germany in terms of reform origins, the trade‐off between managerial and administrative values in the overall reform orientation and the balance within managerial reform between public choice and business management strands. An explanation is advanced of variations in national reform profiles which draws on elements of both political economy and historical institutionalist approaches. Particular importance is attributed to the composition of French and German administrative reform policy communities, and to the resilience of collectivist ideals of public service within the respective memberships, as compared with Britain.     

The New Public Administration: management innovations in government

Over the last two decades there have been some fundamental changes in the working of government which have resulted in major and visible management innovations in the organizational structures and systems of government aimed at delivering greater efficiency, and more responsive and flexible public services. The innovations have led to the ‘New Public Administration’. This article identifies the innovations in thinking about the role and functioning of government; about service users; about administrative structures and about staff. The article also discusses the strategies and actions employed in the new synergy between the public and private sectors, as well as the reforms in financial planning and control systems. In conclusion, the broad objectives of these reforms have been to shift emphasis from developing plans to developing key strategic areas; to shift emphasis from inward-looking systems to developing partnerships; to shift emphasis from inputs and processes to outputs and outcomes; and to shift emphasis towards managing diversity within a unified public service. Finally, managerial pragmatism and political conviction are highlighted as essential to motivating management innovation in government. (© 1997 by John Wiley & Sons, Ltd.)     

From Measurement to Management: Breaking through the Barriers to State and Local Performance

The Winter Commission’s aspirations for improvement of governance at the state and local level resulted in proposals to modernize public institutions and systems to remove the barriers on executive and managerial authority to act. Improving government performance and accountability to citizens requires leadership to empower employees by reducing rules, increasing discretion, and rewarding innovation. The performance measurement movement and its related performance management movement are public management trends of wide influence in state and local government that are both an adjunct to, and a reflection of those aspirations. Case studies of cities that have sought to develop and use performance measurement and engage citizens demonstrate great potential to improve governance and manage for results that citizens want. But even exemplary jurisdictions face challenges using evidence‐based, data‐driven performance management approaches. Promoting best practice requires better scholarship to understand the determinants of successful implementation, adoption, and use of performance measurement. The outcomes of performance management systems are generally unmeasured and little is known about their cost effectiveness or endurance over time. The promise is there, but our expectations should be tempered.     

The challenge of evaluating systemic change: the case of public management reform

At what stage of reform in the public sector does it become possible to conduct a thorough appraisal of results and how does one know when this stage has been reached? How should such an assessment be undertaken? By what methods can comprehensive and far-reaching systemic reforms be evaluated in the arena of public management during recent decades, particularly in countries like Australia, Britain and New Zealand? Most assessments have focused upon specific changes in management practice including the introduction of performance pay, the move to accrual accounting, the growth of contracting-out, the separation of policy and operations or the devolution of human resource management responsibilities. Alternatively, they have dealt with management changes in particular policy domains –such as health care, education, community services or criminal justice –or within a particular organization (department, agency or private provider). By contrast, there have been relatively few macro evaluations –comprehensive assessments of the impact of root-and-branch changes to the system. The problems of evaluation in the arena of public management are inherently complex and the way ahead is by no means clear. This article offers some broad reflections on the limitations to policy evaluation in the field of public management, and more particularly explores the obstacles confronted when assessing the consequences of systemic management reforms. It focuses on recent changes in the New Zealand public sector to illustrate the general themes because these reforms constitute one of best examples of systemic change anywhere in the world.     

The new public management paradigm and the search for democratic accountability

Can we permit empowered, responsive civil servants to make decisions and be innovative and still have democratic accountability? This important question haunts those who would advocate a “new public management.” The proponents of a new public management paradigm emphasize performance the ability of their strategy to produce results. But they cannot ignore the troubling question of political accountability. They must develop a process that not only permits public managers to produce better results but also provides accountability to a democratic electorate.     

Regulatory reform in the era of new technological development: The role of organizational factors in the public sector

What is the role of organizational factors in fostering regulatory reform in response to new technological development? Existing studies provide useful frameworks to understand regulatory reform in rapidly changing circumstances but still lack a systematic analysis of how organizational factors affect regulatory reform in the public sector. To fill this gap, we examine the impact of several institutional elements that are central to defining organizational characteristics, such as job tasks, bureaucratic autonomy, and organizational culture. We theorize that regulatory reform is more likely when public sector organizations are more receptive to external changes, which are determined by these characteristics. We leverage original surveys from over 1,000 civil servants in Korea, one of the front runners in new technological development, and find support for our prediction. We find that the implementation of regulatory reforms is more likely when (i) organizational tasks are relevant to scientific and technological development, (ii) higher levels of bureaucratic autonomy are granted, (iii) agency heads demonstrate stronger leadership, and (iv) organizational culture is less authoritarian. Our study makes clear contributions to the literature on public management and regulation theory, and has important implications for regulatory reform in the face of new technological development.