Public versus Private Managers: How Public and Private Managers Differ in Leadership Behavior

This article aims to find out whether there are behavioral differences between public and private sector managers. Two groups of public managers (managers of social insurance agencies and public school principals) and a group of private managers (two samples) are investigated. Behavioral dimensions are investigated including leadership style (task, relationship, and change orientation), decision‐making style (the functions of sensing, intuition, thinking, and feeling), and motivation profile (achievement, affiliation, and power motivation). An analysis of data from 459 managers in four organizations in Sweden reveal significant differences in behavior between public and private managers. However, no significant differences in leadership behavior are discovered among public managers. Possible explanations for such differences and similarities are explored.     

Attracting private investment to contaminated properties: The value of public interventions

We employ a mail survey of private developers that uses conjoint choice experiments and Likert‐scaled attitudinal questions to examine preferences for policy instruments and incentives intended to encourage brownfield cleanup and redevelopment. Our analysis suggests that developers judge public hearing requirements at brownfield redevelopments unattractive, but that they place a relatively high value on liability relief—from both cleanup costs and claims by third parties. Reimbursement of environmental assessment costs is not particularly attractive. We also find considerable heterogeneity among developers in the value they place on these incentives, depending on their experience with contaminated sites. © 2006 by the Association for Public Policy Analysis and Management     

A shrinking state? Politics,economics and private health care in Thailand

This article explores the political and economic forces involved in the development of privatization policies within the health care sector in Thailand. It is suggested that many of the motivating factors behind private sector growth are outside of the health sector; the general macroeconomic environment and tax incentives have stimulated private sector expansion. Within the Ministry of Public Health a preoccupation with improving care in rural areas and an unclear policy line on the private sector has facilitated this expansion. Only recently has private sector growth come to the policy agenda. During this lag period a number of interest groups have developed. It will be difficult to overcome these entrenched interests in order to change policy direction. Meanwhile, problems of rapid cost inflation and inequity face the Thai health care system. Although this case study focuses upon the health care sector in Thailand it would appear relevant both to other sectors and to other countries. The relationship between development models based upon pro-private, pro-market tenets and the establishment of a satisfactory social policy is questioned.     

The Public Service Mutual: Theories of Motivational Advantage

Public service mutuals are a form of employee‐led organization in which service workers spin out of the public sector to form “mutuals” that contract back with government to provide a service. This article draws on economic and psychological theory to demonstrate that mutuals can align both self‐interested and altruistic or public service motivations so as to serve the social good; moreover, by offering greater autonomy to public service professionals, mutuals are predicted to encourage energetic and persistent behaviors. In both cases, there is an advantage over alternative forms of organization such as the public sector bureaucracy, the shareholder‐owned private firm, or the nonprofit organization. The employee‐led mutual form, however, may not appeal to risk‐averse workers, its collective decision‐making systems may be inefficient, and external mechanisms may be required to ensure that organizational outcomes are always directed toward the social good.     

A Review of: “Exploring Positive Identities and Organizations: Building a Theoretical and Research Foundation edited by Laura Morgan Roberts and Jane E. Dutton”

ABSTRACT

Public service motivation (PSM) has been shown to be positively related to job satisfaction in the public sector, but there are two gaps in the literature. First, not only PSM but also pro-social motivation directed towards helping specific others (called user orientation) may affect job satisfaction. Second, the relationship between job satisfaction and these two types of pro-social motivation, PSM and user orientation, may also be found in the private sector. This study tests whether job satisfaction is associated with PSM and user orientation, and whether these associations differ between public and private employees. Using data from a survey of Danish employees (n = 2,811), we generally find positive relationships between the two types of pro-social motivation and job satisfaction, but the strength of the associations vary between occupations. The PSM–job satisfaction association does not differ significantly between the private and public sector, while the user orientation–job satisfaction association is strongest for private employees. This suggests that to understand the relationships between pro-social motivation, employment sector, and job satisfaction, future studies could fruitfully consider incorporating other types of pro-social motivation such as user orientation.     

Private Sector Imprinting: An Examination of the Impacts of Private Sector Job Experience on Public Manager's Work Attitudes

What are the attitudes of public managers who have had full‐time private sector work experience? Public managers with private sector work experience report different perspectives when compared to their counterparts who have spent their entire careers in the public sector. Though private sector work experience negatively correlates with job satisfaction, it only does so for the “new switcher,” whose last job was in the private sector. As careers advance, the negative impact seems to wane, leaving a public sector workforce that, in part as a result of their private sector work experience, are relatively more intrinsically motivated and involved in their jobs. We conclude with discussion of implications for human resources management.     

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.

     

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.     

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.     

Addressing Public Risks: Extreme Events and Critical Infrastructures

We consider noncoercive means for harnessing the efforts of the private sector as partners with public authorities for addressing potential harms from widely dispersed risks. Our focus is the public and private sector approach in the United States to protecting the nation's critical infrastructures. We empirically address how two key elements of this approach—mobilization of attention and planning partnerships—work to foster “communities of interest” that pursue common sets of solutions for risk reduction. Our depiction of the varied communities of interest underscores differences in starting points in creating such communities, in the ability to mobilize and focus attention within them, and in the likelihood of sustaining efforts to address threats to critical infrastructures. The fundamental issue raised by our research is striking an appropriate balance between governmental and private sector roles in addressing risks for which it is hard to create and sustain protective actions.     

Public–Private Partnerships and the Public Accountability Question

Public–private partnerships (PPPs) are growing in popularity as a governing model for delivery of public goods and services. PPPs have existed since the Roman Empire, but their expansion into traditional public projects today raises serious questions about public accountability. This article examines public accountability and its application to government and private firms involved in PPPs. An analytical framework is proposed for assessing the extent to which PPPs provide (or will provide) goods and services consistent with public sector goals of effectiveness, efficiency, and equity. Six dimensions—risk, costs and benefits, political and social impacts, expertise, collaboration, and performance measurement—are incorporated into a model that assists public managers in improving partnerships’ public accountability.     

Person-Environment Fit and Public Service Motivation

This article incorporates insights from Person-Environment Fit theories to the discussion about the effect of Public Service Motivation (PSM) on vocational outcome variables. Analysis of a large Dutch dataset shows that workers with a PSM fit are more satisfied and less inclined to leave their job and the organization they work for than workers without such a fit. This is in accordance with the main hypothesis. Other results underline the importance of the PSM concept as they show that public sector workers have a higher level of PSM than private sector workers. Moreover, private sector workers with high levels of PSM are inclined to look for a job in the public sector, which is in accordance with a main propositions of the PSM framework. The article finishes with a discussion on theoretical and methodological issues raised by the analysis and puts forward some suggestions for further research.     

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.     

Public Sector Labor Relations Scholarship: Is There a “There,” There?

Public sector union membership is thriving compared to the private sector. Moreover, public employee unions play a significant role in policy making at every level of government. Yet research on public sector labor relations is sporadic and uneven, perhaps negligible. Why so? This article surveys the literature on public sector unionism and seeks to answer that question. Its conclusion points to a course of action for renewing interest in this seminal field among public administration, management, and policy scholars.     

Recovering,Restoring, and Renewing the Foundations of American Public Administration: The Contributions of Herbert J. Storing

Public administration continues to face an identity crisis that turns on the question of whether the animating principles of the discipline are to be discovered in the political foundations of a given regime, or whether they are to be found in more universal and transcendent principles of scientific management. Herbert J. Storing reframed the identity crisis as a problem arising from America’s constitutional system of governance. In doing so, he created an important role for public administration in democratic governance. This role took the form of “closet statesmanship” and, in practice, requires the exercise of prudential judgment that looks more like judicial decision making than scientific management. In summarizing Storing’s writings, the authors convincingly argue that he has much to teach us about the ongoing debate regarding the role of the bureaucracy within America’s 87,576 systems of government.     

Drifting towards convergence? Motivation and performance management in state and private companies in the provision of telecom services in Ghana

The concept of expectancy on which many of the theories of workplace incentive programmes are based, claims that when employees are given a particular level of motivation, it will result in some level of performance. The general perception in Ghana is that public sector employees do not perform as efficiently as private sector workers because they lack incentives to do so. However, few studies have compared the incentive structures of the two sectors. Using empirical evidence from four telecom companies in Ghana, this article shows that the gaps between ‘state’ and ‘private’ have narrowed. Also, while incentive structures such as salary, fringe benefits and job (in)security are converging, critical performance management processes like employees' participation in decision‐making, performance appraisal, monitoring and credibility of sanctions are drifting apart. This article concludes that differences in performance between state and private companies may be explained by performance management processes and not incentive structures. It cautions that improved salaries and other office perquisites may not by themselves achieve organisational performance. Rather, incentives should be embedded in a broader approach through effective performance management processes. The information in the article is relevant to the ‘borderline’ part of the public sector under a deregulated environment. Copyright © 2007 John Wiley & Sons, Ltd.     

Development of the Natural Resources of the Moon and Other Celestial Bodies: Economic and Legal Aspects

The path of gradual commercialization of current space applications, such as launch services, satellite communication services, direct broadcasting services, satellite remote sensing and navigation services, and satellite weather monitoring services, will most likely be followed by future activities of use of space resources. Ventures, like mining the natural resources of the Moon and asteroids, are likely to become technologically feasible in the near future. The question is what would be the most appropriate approach to address the future needs of exploitation of space resources: should it remain the exclusive province of state governments; should the private sector take over such space activities; or should a public-private partnership type of venture be encouraged? As state governments are becoming constrained by budget deficits, an increased reliance on private sector involvement in space activities involving the extraction and use of space resources is to be expected. When deciding whether to invest in commercial ventures of resource use exploitation, any potential private investor will be faced with the issues of economic costs, risks, and perceived regulatory barriers. This study argues that the perceived regulatory barriers, i.e., the licensing requirement, the “common heritage of mankind” principle of international space law, and protection of intellectual property rights, are not obstacles to economic development. Governments should provide both policy and regulatory incentives for private sector participation in the area of space natural resource use by funding basic research and development and by sponsoring liability insurance for private ventures among other incentives.     

Public Regulation and Private Lawsuits in the American Separation of Powers System

This article investigates causes of the legislative choice to mobilize private litigants to enforce statutes. It specifies the statutory mechanism, grounded in economic incentives, that Congress uses to do so, and presents a theoretical framework for understanding how certain characteristics of separation of powers structures, particularly conflict between Congress and the president over control of the bureaucracy, drive legislative production of this mechanism. Using new and original historical data, the article presents the first empirical model of the legislative choice to mobilize private litigants, covering the years 1887 to 2004. The findings provide robust support for the proposition that interbranch conflict between Congress and the president is a powerful cause of congressional enactment of incentives to mobilize private litigants. Higher risk of electoral losses by the majority party, Democratic control of Congress, and demand by issue‐oriented interest groups are also significant predictors of congressional enactment of such incentives.     

Competition, Marketisation, Public Services and Public Ethics

The topic I address provides an embarrassment of scope. At the same time, it allows the development of a theme that is worthwhile discussing. When in the public sector is it worthwhile to import private sector concepts, principles and practices and when would the adoption of a private sector model be injurious to the state's constituents? The theme is worthwhile discussing, in part because some of Australia's jurisdictions appear to be adopting what they consider to be private sector practices, without an adequate framework to guide them. Because there is no proper framework, mistakes are made which could have been avoided. There is also some evidence that the public is uneasy about the loss of ‘public’ from the term public services. It would not be in the public’s own interests to resist, for no good reason, the adoption of private sector principles where that would allow more cost-effective services. The topic also allows a discussion on the influence on public sector ethics of the trend to place senior public servants on contracts that can be disposed of without a reason or prospect of appeal.     

Public and private sector wages interactions in a general equilibrium model

It is common wisdom that public sector wages are not determined in the same way as private sector wages. At the same time, the empirical evidence available for OECD countries finds a strong positive correlation between public and private sector wages. In this paper, we develop a model that is consistent with a political economy view of the determination of public sector wages and employment, while being consistent with the said empirical evidence. Public finance constraints are crucial: In booms, governments expand employment and wages, while in downturns, lack of tax revenues forces the government to cut back the wage bill.