Public Sector Organizations and Reputation Management: Five Problems

ABSTRACT

This article discusses five problems that most public organizations will face when adopting a popular, yet largely unexplored management concept: reputation management. The inherently political nature of public organizations constrains their reputation management strategies. Furthermore, they have trouble connecting with their stakeholders on an emotional level, standing out as unique and differentiated organizations, communicating as coherent bodies, and maintaining excellent reputations. In this article, we examine in depth the nature of these problems and seek to contribute to a more nuanced understanding of the possibilities and limitations of reputation management in a public sector context.     

Reputation and Public Administration

This article examines the application of organizational reputation to public administration. Organizational reputation is defined as a set of beliefs about an organization’s capacities, intentions, history, and mission that are embedded in a network of multiple audiences. The authors assert that the way in which organizational reputations are formed and subsequently cultivated is fundamental to understanding the role of public administration in a democracy. A review of the basic assumptions and empirical work on organizational reputation in the public sector identifies a series of stylized facts that extends our understanding of the functioning of public agencies. In particular, the authors examine the relationship between organizational reputation and bureaucratic autonomy.     

Directing Corporate Entrepreneurship Strategy in the Public Sector to Public Value: Antecedents,Components, and Outcomes

ABSTRACT

Over the last three decades, organizations worldwide have used corporate entrepreneurship (CE) as a means of building new competencies, revitalizing operations, achieving renewal, and/or creating value for stakeholders. However, little is understood about factors triggering corporate entrepreneurship strategy (CES) within organizations not driven by profit motives. The purpose of this article is to conceptualize CES in the public sector in order to synthesize, integrate, and link the key concepts within the CE domain, thereby creating new public value and generating new economic activity for the benefit of multiple stakeholders. The public sector CES model includes (1) the antecedents of public sector CES (external environmental conditions that generate entrepreneurial activity); (2) the key components of CES (entrepreneurial strategic vision, organizational conditions that support entrepreneurial processes and behavior, entrepreneurial orientation (EO) that reflects the overall level of such processes and behavior, and individual levels of entrepreneurial behavior); and (3) outcomes of CES within the public sector (organizational outcomes resulting from entrepreneurial actions, including the development of venturing and renewal that, in turn, leads to enhanced public value). We discuss how our model contributes to the CE literature, followed by implications for scholars and practice and future research directions.     

International Comparison of Public and Private Employees’ Work Motives,Attitudes, and Perceived Rewards

This article presents a conceptual perspective on the distinctive characteristics of public organizations and their personnel. This perspective leads to hypotheses that public organizations deliver distinctive goods and services that influence the motives and rewards for their employees. These hypotheses are tested with evidence from the International Social Survey Programme in order to compare public and private employees in 30 nations. Public employees in 28 of the 30 nations expressed higher levels of public‐service‐oriented motives. In all of the countries, public employees were more likely to say they receive rewards in the form of perceived social impact. In most of the countries, public employees placed less importance on high income as a reward and expressed higher levels of organizational commitment.

Practitioner Points

• The findings presented here add to previous evidence that public employees seek and attain more altruistic and public‐service‐oriented rewards than private sector employees. In particular, we add evidence that these differences hold in many different nations and cultural contexts.
• Compensation and incentive system reforms in many governments have often concentrated on financial incentives and streamlining procedures for discipline and removal. Such matters are important but should not drive out concerns with showing public employees the impact of their work on the well‐being of others and on the community and society. Leaders and managers should invest in incentive systems that emphasize such motives and rewards.
• Leaders and managers should invest in the use of altruistic and socially beneficial motives and rewards in recruiting systems.

     

Does Ethical Leadership Matter in Government? Effects on Organizational Commitment,Absenteeism, and Willingness to Report Ethical Problems

Recent ethical scandals involving managers in government organizations have highlighted the need for more research on ethical leadership in public sector organizations. To assess the consequences of ethical leadership, 161 managers in a large state government agency and 415 of their direct reports were surveyed, and personnel records were obtained to measure absenteeism. Results indicate that after controlling for the effects of employee characteristics, perceptions of procedural fairness, and supportive leader behavior, ethical leadership reduced absenteeism and had a positive influence on organizational commitment and willingness to report ethical problems. Implications of the findings and suggestions for future research are presented.     

Communicating corporate social responsibility: an exploratory case study of a major UK retail centre

• Corporate 'social responsibility [CSR] is neither a fad nor an optional extra. The interest in it is reflective of a deeper change in the relationship between companies and their stakeholders. Healthy business requires a healthy community, and should be contributing to its creation and maintenance. The public increasingly wants to know about companies that stand behind the brands and products presented to them. And use their power to reward ‘good’ companies and punish the ‘bad’ ones. (Lewis, S. 2001 ).
• CSR is becoming ever more important in the modern business environment, as is evident by the fact that most leading public companies include a specific statement on their CSR policy within their annual reports. Indeed, changing societal expectations, increasingly intrusive media reporting, and ever more sophisticated and powerful pressure groups have caused all organizations to consider more carefully their wider social responsibilities not only out of altruistic reasons, but because of the need to consider the potential impact of their policies on their wider stakeholder relationships.
• It is argued in academic and professional writing that CSR orientated organizations benefit from a series of tangible and intangible benefits, when stakeholders are informed of their orientation. Corporations have reacted to these calls and this belief in a business case and are implementing CSR programmes or corporate change to bring about new corporate mindsets, and are in‐turn communicating the results of these programmes. However, in order to be able to effectively communicate it is necessary that organizations clearly understand the concept of CSR, both from a managerial perspective and homogeneous and individual stakeholder perspective.
• Aiming to help address this lack of understanding, the proposed paper provides a case examination of stakeholder and management perspectives of CSR in the North West of England in a retail setting. The study was conducted in 2003 around a Major UK retail centre using a mix method approach that drew out management cognate viewpoints on CSR and quantitatively tested these findings against stakeholder viewpoints on CSR. The study is served as a pilot for future studies into the area.
• It found that within the context of the case that the managers and stakeholders (when taken as one homogeneous group) shared a similar view of the concept of CSR. Additionally, the weaknesses of the research pilot brought to the surface methodological improvements that could impact on future researches into the area.

Copyright © 2006 John Wiley & Sons, Ltd.     

Reputational impact of Covid-19 pandemic management on World Health Organization among Indian public health professionals

Organizational reputation is critical for successful stakeholder engagement. A crisis can affect the organizational reputation and alter stakeholder perception about organizations. The current study investigates the impact of the Covid-19 pandemic and its management on the World Health Organization's (WHO's) reputation among Indian public health professionals (PHPs). The study applies the situational crisis communication theory (SCCT) model to investigate the reputational impact of the pandemic on WHO among the study subjects. The study results indicate that most Indian PHPs attribute the current Pandemic to WHO. Their current reputation has dropped compared to their earlier reputation among Indian PHPs. The same is reflected in their behavioral intent, with the PHP's willingness to follow WHO guidelines on public health issues significantly reduced. The study also finds empirical support for the SCCT Model.     

Integrating public affairs information strategy with organizational practices in healthcare delivery organizations

To develop and implement policy, lawmakers rely on the input from external experts and stakeholders. Public affairs professionals are responsible for monitoring the sociopolitical environment and responding to public policy proposals on behalf of firms and organizations. However, how public affairs operate intraorganizationally and develop information strategies is not clear nor consistent in the literature. The purpose was to explore how public affairs engage with internal stakeholders to leverage their knowledge for information strategies in responding to policymakers. Knowledge transfer served as a theoretical framework through a qualitative multiple case study of 3 not-for-profit healthcare delivery organizations. Primary data were collected using semistructured interviews from public affairs (n = 11) and healthcare professionals (n = 18) along with a review of organizational documents and public records. Patterns and themes emerged through cross-case synthesis, presented as a process-based model and theory. Public affairs structures and decision-making processes varied across cases indicating no coherent approach by practitioners. Intraorganizational engagement and knowledge transfer processes were managed both consistently and ad hoc, through informal and formal methods. Practitioner strategies and tactics were identified to facilitate internal interaction such as filtering policy issues and effective communication methods. Common institutional barriers were identified that made stakeholder engagement a challenge. This study provides insight into understanding how public affairs practice internally and supports the fundamental importance of linking knowledge into public policymaking.     

Agile: A New Way of Governing

The evolving concept of “agile” has fundamentally changed core aspects of software design, project management, and business operations. The agile approach could also reshape government, public management, and governance in general. In this Viewpoint essay, the authors introduce the modern agile movement, reflect on how it can benefit public administrators, and describe several challenges that managers will face when they are expected to make their organizations more flexible and responsive.     

Understanding the changing role of public sector performance measurement in less developed countries

This article develops a framework for understanding changes in the demand for and supply of performance information in public sector organizations in less developed countries (LDCs). New Institutional Sociology (NIS) is used to argue that pressures from specific stakeholders stimulate organizations to produce particular performance information. The article distinguishes three groups of stakeholders (i.e. funding bodies, statutory boards and purchasers), and elaborates on the performance dimensions these stakeholders are interested in. The group of funding bodies, with their interest in financial performance information, used to be the most important group of stakeholders. However, statutory boards and purchasers are gaining importance as a result of recent public sector reforms, which include decentralization, marketization and the implementation of anti‐corruption programs. As a consequence of pressures coming from these stakeholders, new performance dimensions, such as the quality and quantity of services and the political governance structure, will be added to organizations' performance measurement (PM) systems. Whether these and other—often more traditional financial—performance dimensions will be balanced and integrated throughout organizations depends on the power positions of the various stakeholders. The arguments presented in this article intend to stimulate public sector organizations in LDCs to design and redesign PM systems as a response to changing stakeholder interests. Copyright © 2010 John Wiley & Sons, Ltd.     

Is There a Nonprofit Advantage? Examining the Impact of Institutional Context on Individual–Organizational Value Congruence

This article addresses an important question: do nonprofit organizations have an advantage over public organizations in fostering individual–organizational value congruence? The authors argue that nonprofit organizations do have an advantage. This is because institutional differences between the two sectors become manifest through nonprofit status and the extent of external control, which influences the organization and the individual. External control and sector status (nonprofit versus public) determine the extent of centralization, organizational goal ambiguity, and work autonomy. In turn, these three organizational characteristics shape individual–organizational value congruence. Although the results provide support for the nonprofit advantage thesis, it is worth noting that organizational effects on individual–organizational value congruence are more powerful. Indeed, the results suggest that managerial and organizational actions, compared with sector status, are more likely to influence individual–organizational value congruence.     

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 Do Public Organizations Learn? Bridging Cultural and Structural Perspectives

How do public organizations learn? The organizational learning literature suggests distinct cultural and structural routes to learning. However, such categorizations oversimplify. Leaders seeking to foster learning should recognize that most relevant organizational variables combine structural and cultural aspects, which are mutually dependent on one another. The strongest influences are the existence of work groups that are purpose driven and incorporate the views of all members, including dissenting views. Such learning forums can be fostered through formal requirements, but they need appropriate cultural characteristics to succeed. Mission orientation, decision authority, information systems, and resource adequacy are also positively related to improved organizational learning.     

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.     

Stakeholder engagement as communication design practice

Stakeholder engagement competence is here framed as an ongoing matter of communication design—that is, professionals and organizations of all sorts are challenged to invent forms of engagement with organizational stakeholders making communication possible that may otherwise be difficult, impossible, or unimagined. An original framework for articulating logics of communication design that addresses extant shortcomings in understanding stakeholder engagement competence is introduced. The framework draws into relief how communication for stakeholder engagement is conceptualized and valued by professionals and organizations. The communication design practice framework provides a path for opening up the black box of stakeholder engagement to advance communication competence in professional practice and organizational communication. The framework is illustrated by reconstructing, from current corporate social responsibility practice, two competing communication design logics for constructing dialogue and stakeholder engagement. One logic, grounded in the shared value framework, reprises a common theme about business that points to constructing communication to maintain the primacy of shareholders in stakeholder networks and to seek profitability in social, environmental, and economic problems. The other logic introduces an alternative communication design logic grounded in commitments to collaborative governance and open innovation. This logic is for stakeholder networks to generate and manage multiple values that address matters of social, cultural, environmental, and economic concerns. We then consider some key implications for engagement practice and competency for inventing forms of dialogue and stakeholder engagement to create value in the new globalized, mediated context. Communication design practice opens new ways of thinking about stakeholder engagement that has implications for cultivating professional practice and improving organizational decision‐making about investing in communication resources and infrastructure. Copyright © 2015 John Wiley & Sons, Ltd.     

Collaborative Innovation: A Viable Alternative to Market Competition and Organizational Entrepreneurship

There are growing pressures for the public sector to be more innovative but considerable disagreement about how to achieve it. This article uses institutional and organizational analysis to compare three major public innovation strategies. The article confronts the myth that the market‐driven private sector is more innovative than the public sector by showing that both sectors have a number of drivers of as well as barriers to innovation, some of which are similar, while others are sector specific. The article then systematically analyzes three strategies for innovation: New Public Management, which emphasizes market competition; the neo‐Weberian state, which emphasizes organizational entrepreneurship; and collaborative governance, which emphasizes multiactor engagement across organizations in the private, public, and nonprofit sectors. The authors conclude that the choice of strategies for enhancing public innovation is contingent rather than absolute. Some contingencies for each strategy are outlined.     

Leadership and Organizational Culture: Sustaining Dialogue between Practitioners and Scholars

Few topics in the study of contemporary public organizations better illustrate the burdens—and potential benefits—of sustaining dialogue between practitioners and scholars than the interplay between leadership, organizational culture, and public sector performance. Following two decades of intensive research and advocacy, the last 10 years have seen diminished scholarly attention to this subject, while efforts to shape culture remain central to the leadership of public organizations. This essay reflects on the 8 Cs of organizational culture: complicated, control, competence, commitments, credibility, conflict, context, and change.     

Perceptions of Public and Private Performance: Evidence from a Survey Experiment

Media, politicians, and reform proponents frequently assert that public sector organizations are inefficient and burdened by administrative procedures. But are negative stereotypes of the public sector reflected in people's perceptions of public service provision? Given the methodological challenges of isolating the perception of publicness from other factors related to public organizations, little is known about whether public organizations have a negative image. The authors use a survey experimental design to isolate the effect of publicness on perceptions of the performance of hospitals. The results suggest that public sector organizations have a negative image on productivity‐related aspects of performance but not on normative aspects of performance. As this article is a randomized experiment, it provides strong evidence regarding the causal nature of the relationship between publicness and perceptions of performance. Implications for researchers aiming to understand these mechanisms and for public managers concerned about the image of their organization are discussed.     

Organizational Citizenship Behavior in the Public Sector: A Systematic Literature Review and Future Research Agenda

This article presents a systematic literature review of organizational citizenship behavior (OCB) in the public sector. The findings show that although OCB is gaining more attention in the public sector, research often does not take specific public sector characteristics or concepts into account. Based on the available evidence, the authors develop a framework of antecedents, outcomes, mediators, and moderators of OCB. Three areas for future research are recommended: (1) regarding theory: link OCB to public sector concepts such as bureaucratic red tape, public leadership, and public service motivation; (2) regarding research designs: use stronger survey designs, experiments, and case studies and devote more attention to cross-sectoral and cross-country differences; and (3) regarding the consequences of OCB: address the gap in our knowledge of how OCB has an impact on public organizations, including negative impacts.