Business Models and the Transfer of Businesslike CentralGovernment Agencies

At the same time as many researchers in public administration are suggesting the emergence of similar New Public Management (NPM) forms in Organization for Economic Co-operation and Development (OECD) countries, a substantial number of those working in comparative political economy are rediscovering differences between countries. This paper explores a key component of NPM—business-like central government agencies—in four countries: the UK, the U.S., Germany, and Japan. So far, the private sector side of the NPM story has largely been neglected. However, the business-like agency model as developed in the UK was influenced by the Anglo-American system of corporate governance. In comparative political economy, the Anglo-American system is seen as different from that in Germany or Japan. These differences are important for understanding transfer through emulation of the UK agency model by policy-makers in other countries. An apparent inconsistency may be developing, with governments using an NPM form based on an Anglo-American model of business that is far from universal in business itself.     

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.     

Traditions and Public Sector Reform: Comparing Britain and Denmark

A governmental tradition is a set of beliefs about the institutions and history of government. In this article I argue the Anglo-Saxon governmental tradition interprets public sector reform differently to the Rechtsstaat , participation tradition of Denmark, leading to different aims, measures and outcomes. In the Introduction, I define NPM arguing that is has become everything and is, therefore a meaningless term. I identify six dimensions to public sector reform: privatization, marketization, corporate management, regulation, decentralization and political control. In section 2, I describe the six dimensions of public sector reform in Britain and Denmark. In section 3, I explain the idea of a governmental tradition and argue the idea is essential to understanding the differences between Britain and Denmark. In section 4, I compare British and Danish governmental traditions, arguing the key differences lie in beliefs about the constitution, bureaucracy and state-civil society relations. Finally, I provide a summary explanation of the differences and argue that traditions not only shape the aims, measures and outcomes of public sector reform but also lead to different interpretations of reform and its dilemmas. In Britain, the key dilemma concerns central steering capacity. In Denmark, the main dilemma is democratic accountability.     

Understanding evolving public motivational practices: An institutional analysis

New public management (NPM) has been the focus of research and reform practices in countries globally since the late 1970s. This article looks at NPM in historical perspective with particular attention to understanding the evolution of public motivational practices. Three different eras and motivational models common in OECD countries are discussed—the bureaucratic model, the NPM model, and the new public service model. This long‐linked historical perspective highlights the interplay between administrative theory and realpolitik. It is possible to see how certain priorities have been a result of or led to the preservation, the adaptation, or the discontinuation of practices in alignment with the values and behaviors of the successive reform eras. Additional research into the dynamics of change in the public sector is suggested.     

Lessons from the new public management in commonwealth nations

The New Public Management (NPM) is unlike any other public sector reform for the simple fact that it is practitioner-driven as well as a global movement. However, what works in one public sector circumstance may not work in another political, social, or economic setting. By surveying the Commonwealth countries I find that NPM reforms are taking place in all Commonwealth countries regardless of their various stages of economic and political development. This evidence confirms that the administrative reform of NPM measures is truly a global public sector reform movement.     

Administrative reform in a changing political environment: The case of Hong Kong

Since 1989, the Hong Kong government has implemented a programme of public sector reform that is based on the principles of ‘new public management’. The reforms initially focused mainly on financial management reform, including delegating responsibilities for resource allocation; re-defining the roles of the central resource branches; setting up trading funds in departments that provide services directly to the public; and instilling a new corporate culture of service throughout the government. Some progress has been made in implementing the reforms. In 1993, the government realized that further civil service reform was necessary to support the reforms. The government proposed to delegate more authority to department heads on personnel matters; give managers more freedom to manage personnel; and simplify personnel regulations and procedures. These ‘new public management’-type reforms are usually associated with stable, relatively unchanging environments. In Hong Kong, however, the reforms have been proposed and carried out in an environment of considerable political turbulence which has both facilitated and hindered their implementation. Because of the declining legitimacy of the colonial government, British authorities may not have the political capacity to implement the reforms. Opposition from both department heads and civil service unions to aspects of the reforms has already emerged.     

Public sector reform in a poor,aid‐dependent country,Tanzania

African public sectors went through many changes during the 1960s and 1970s in response to political, economic and social pressures. They expanded in size but remained, at least in design, hierarchical and centralized. Their formal relations to society did not undergo any significant changes either. Generally, the reforms now under way are significantly different from earlier ones. Most are inspired by the new public management (NPM) paradigm. They are also much more radical in their aims, among which are: to reduce the core functions of the state; redraw the boundaries between political and administrative responsibilities; emphasize efficiency; redefine relations between public and private sectors; strengthen accountability; reduce corruption; reorganize organizations and staff; change values and attitudes; and exploit new technologies. This article focuses on a paradox of reform in Tanzania: multiple changes are pursued in the public sector despite fragile domestic political support to the reform package as a whole and despite few service delivery improvements on the ground. It is argued that this is the result of substantial external influences, fragmented domestic policy making, weak links between policy making and implementation, and questionable assumptions about some of the key NPM‐inspired reform measures. Moreover, the analyses highlight a number of differences with some of the recent reform literature. Copyright © 2000 John Wiley & Sons, Ltd.     

Downsizing the civil service in developing countries: golden handshakes or smiling farewells?

Some researchers have suggested innovative ways to successfully implement civil service reform in developing countries. Although most approaches to implementing public sector management reform are still very much process-driven, and focus almost exclusively on civil service reform, long-term success in making the public sector more efficient may be better assured if civil service reform is but one outcome of a broader public sector management reform agenda. Particularly, re-focussing from traditional input-driven reform thinking towards output-oriented measures, such as the introduction of accrual budgeting in the public sector, may well result in greater popular acceptance and, thus, longer-term success for sensitive reform programs. Although output-driven accrual budgeting is by no means a panacea for all public sector illnesses, it can at least set the scene for profound and durable cultural change in the public sector. © 1998 John Wiley & Sons, Ltd.     

WOLF'S MODEL: Government Failure and Public Sector Reform in Advanced Industrial Democracies

Many developed nations have embarked on public sector reform programs based on the New Public Management (NPM) paradigm. This article seeks to evaluate the efficacy of NPM reform strategies as a means of dealing with the problem of “government failure” in public sector hierarchies by examining these strategies through the analytical prism provided by Wolf's theory of nonmarket failure. Drawing on the New Zealand experience, we explore the potential for NPM reform initiatives to mitigate the problems of nonmarket supply. Moreover, we examine how “autonomous policy leadership” and “advocacy coalition networks” can overcome the various obstacles to the successful implementation of reform strategies delineated by Wolf under his “conditions of nonmarket demand”. The article then focusses on the efficacy of NPM in removing, or at least reducing, the various forms of government failure identified in Wolf's taxonomic catalogue of nonmarket failure. We conclude by assessing some of the likely tradeoffs involved in the application of NPM reform programs.     

A Comparative Analysis: New Public Management — The Way Ahead?

A set of measures constituting 'New Public Management' (NPM) has been adopted worldwide (Pollitt 1995). This article describes their implementation in the State of Victoria. In particular, the article assesses the reforms within the context of Pollitt's eight elements of NPM reforms that have taken place in management in the public sector in Victoria and, to varying degrees, in all OECD countries. It argues that the evaluation of the success of NPM in Victoria should be addressed by independent evaluations of the impacts of the changes within the political, executive and operational spheres of government, and on consumers and the public service itself. The article offers some lessons for those in government following Victoria's example of the implementation of NPM.
Good governance is critical to ensuring that challenges to society are dealt with adequately (OECD 1995:5).     

New Public Management and Management Education: Foundations of Successful Management Reform

International experience shows that the main objective of New Public Management (NPM) reform has predominantly been to overcome the current crisis in funding and public service delivery. The achieving this objective has involved adopting a philosophy of 'more for less' or, in other words, by enhancing 'value for money' in public service delivery. To this end,NPM reforms have generally aimed at replacing the inherited or traditional bureaucratic structure of management with a market – or at least a competition-based – contract arrangement. As is the case in any contested market setting, the main concern of state and public administration is no longer merely to ensure a legally correct application of laws, but also to use scarce resources as 'efficiently' as possible in the pursuit of the desired ends of increased productivity and 'more for less'.     

Paradoxes of Public Sector Customer Service

The use of customer service ideas in government continues to be widespread, although the concept and its implications for public sector service production and delivery remain poorly developed. This paper presents a series of paradoxes related to customer service and its use in government. The central and most troubling paradox is that customer service techniques and tools applied to government may lead to increased political inequality even as some aspects of service are improved. The argument is structured by examination of the following: the predominant structural features of service management in theprivate sector, the assumption that customer satisfaction is a central objective of service firms, the understanding of customer service that informs current federal reform efforts, and the operational and political challenges of customer service as a public management objective.     

Public Sector Reform in Australia: An Evaluation of the Corporatisation of Sydney Water, 1995 to 2002

The corporatisation of Sydney Water from 1995 onwards formed part of a much broader process of public sector reform in Australia. However, Sydney Water represents an unusual case study of corporatisation since it has embodied two distinct forms of corporate structure over the period 1995 to 2002; both the company model and the statutory model. This article seeks to evaluate the success or otherwise of this corporatisation process using ‘internal’ measures of the performance appraisals undertaken by ‘outside’ bodies in six main forums: The independent assessments against operating licence conditions; NSW government's annual assessments of government businesses performance; Sydney Water's own performance measurement against corporate business plans; water reform measures stipulated by the Council of Australian Governments; industry financial performance indicators as measured by the Water Services Association of Australia; and an international assessment conducted by the UK Office of Water Services.     

Public Sector ‘Modernisation’: Examining the Impact of a Change Agenda on Local Government Employees in England

Can public sector reform change service performance for the better? This is a hotly contested debate that carries significant theoretical and practical importance. In England, as in many countries, modernisation was at the heart of local government reform and represented an interpretation of New Public Management into a policy framework. This paper examines the role of the modernisation change agenda in England and what this has subsequently meant for ‘service improvement’. Drawing on both document analyses and qualitative interviews with local government employees, we find that while modernisation sought to establish continuous improvement, unintended consequences of modernisation have led to Staff Reductions, Skill Deficiencies, and Loss of a Competent Middle Core in local government, as well as performance outcomes creating an environment for Commissioning, Service Reduction, and Self‐Policing. Implications for the lasting roles and behaviours of public managers affected by this national change agenda are discussed, and conclusions for theory and practice are drawn.     

Diffusion of Corporate Risk‐Management Characteristics: Perspectives of Chief Audit Executives through a Survey Approach

This study examines how corporate risk‐management characteristics in Australian public universities have diffused under an environment of conflicting management cultures. The findings reveal that corporate risk‐management characteristics have diffused in a pluralist form to satisfy stakeholders of different management approaches across its governance levels as opposed to a unilateral form aligned to the corporate approach. The accepted practice of this adapted version challenges the existing notion that the adoption of corporate control processes in the public sector is problematic, and provides insights into the emergence of a hybrid control process to address the needs of multiple stakeholders. These findings have policy implications for defining a new hybrid governance‐control paradigm for the public sector as an alternative to the corporate‐influenced control paradigm, and provide avenues for further research to confirm the phenomenon with other corporate control processes, public‐sector entities, and if so its impact on effective governance.     

Focusing on public value: Something new and something old

This article develops two propositions. First, that the public sector needs new stories that make sense of recent storms of change. Second, that focusing on ‘public value’ helps tell a useful new story. Much contemporary commentary comes from analysts working within a particular field of thought. However, problems of public policy and management are hard to discipline. Public value is not the property of particular political parties, public service institutions, academic disciplines or professions. Public value is defined and redefined through social and political interaction. Such interaction involves politicians, officials and communities. Focusing on public value enables one to aggregate issues for scholarly analysis in terms that should also make sense to citizens and communities, political activists and people responsible for delivering public services. The article argues that: recent agendas for public sector change overlap and that implementation is incomplete; the skills of analysts and activists in the public sector, and in associated sectors delivering public services, need large components of expertise in interpreting ambiguous patterns and the management of complex relationships; and that the cumulative impact of succeeding agendas is to widen the scope of issues in play. Large components in both reform and agendas have involved bringing the public sector firmly under political control. However, the later emphasis on consultation and participation places political executives under great pressure. The more deliberation is promised the more is demanded. There is increasing pressure for the task of exploring for public value to be shared more widely. The article develops its key propositions by exploring three main themes: first, the notion of public value and the emphasis in it on search and interaction as a basis for political and managerial leadership; second, the contested impacts of recent agendas of change in the public and other affected sectors which have widened the scope of issues in play but have left key institutional and policy issues unresolved; and, third, a sample of current and emerging issues in which asking questions about public value may help activists, politicians and managers more creatively focus their attention. Focusing on public value can help communities, service providers and political leaders ask and answer a new and wider range of questions while continuing to learn from recent experience, however complex and contested.     

NOT JUST BRICKS AND MORTAR: EEO IN HOMESWEST

Abstract: Moves by both state and federal governments to implement private sector management practices in government administration have received attention from a number of writers. Feminist critics of corporate management argue that, in very devolved situations, public sector management concentrates on the achievement of program outcomes to the detriment of other management objectives and Equal Employment Opportunity is ignored. The contention that efficiency and effectiveness are promoted at the expense of equity under a regime of public sector corporate management will be addressed through a case study of the West Australian Housing Commission, Homeswest. This paper examines the results of Equal Employment Opportunity programs in a highly corporatised state government agency.     

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 CORPORATE MANAGEMENT FRAMEWORK AS ADMINISTRATIVE SCIENCE: A CRITIQUE

Abstract: A corporate management framework has been the basis for a transformation of Australian public administration in recent years. Program budgeting, corporate planning, performance contracts, program evaluation and new forms of efficiency scrutiny are among the techniques introduced. They stem from a dominant paradigm of technical and instrumental rationality, within which a framework of practical remedies and technologies of power carries the corporate management label. Four concepts underly this framework and its techniques: the product format, instrumentalism, integration and purposive action. The framework has fundamental problems. The product format is inappropriate for many public services and overvalues quantifiable, single-purpose outputs while denigrating claims of worth and effectiveness made on non-economic grounds; instrumentalism ignores the political dimensions of public organisations; integration denies the value of decentralised forms of service development and delivery and, paradoxically, contradicts current private management precepts; and purposive action displays an unwarranted optimism about the potency of technical rationality under central direction. The four principles must be reviewed as offering few prospects for genuine and lasting reform.     

Governance Reform in Thailand: Questionable Assumptions, Uncertain Outcomes

This article examines the nature of governance reform in Thailand. The argument is that Thai citizens are not especially benefiting from the public reform initiatives of Thai governments because government reformers made fourquestionable assumptions about reform which have in turn produced uncertain outcomes and provided the opportunity for government reformers to avoid responsibility for their reform choices. First, the reformers support the belief that a global reform paradigm with ready-made reform packages exists which can be easily transplanted in the Thai public sector. Second, the reformers prefer to define success largely as reform output rather than reform outcomes or long term reform consequences. Third, Thai government reformers have overemphasized the efficiency aspects of the new public management at the expense of other governance goals. Fourth, governance reform in Thailand has been portrayed as a managerial problem instead of a political one. The author supports his arguments by drawing on theoretical debates in the international literature on administrative reform, and relating these debates to the Thai case. Governance reform in Thailand is still at an early stage, but the role of unintended consequences is important to administrative reform. Furthermore, the Thai case may reflect governance reform in other countries as well.