The financial management initiative in the u.k. public sector: the symbolic role of performance reporting

The emerging principles of performance reporting are explored in the context of urban policy and inner city regeneration programmes in the UK, upon which a great deal of evaluative research has been carried out in the last decade. The paper questions the extent that performance management principles as embodied by the FMI are necessary for public accountability. It illustrates that implementation of performance reporting in the urban regeneration programme has had a symbolic role in generating myths and images about practice which imply that the “rational model” of decision making is in operation. The imposition of performance reporting cannot per se guarantee improvements, in the sense of learning, in the organising approaches adopted by public sector organisations.     

Accounting for human resource development in the public sector

This article evaluates the merits of utilizing human resource accounting (HRA) concepts to account for human resource development (HRD) in the public sector. It describes the development of the economic theory of human capital and the increasing recognition of human resources as human assets of public organizations to be managed and accounted for in a manner similar to capital assets. The development of HRA concepts concerning human resource value and cost is discussed. These HRA concepts are applied to HRD and to current and potential uses in external financial reporting and internal managerial accounting in public organizations. This article concludes that the application of HRA concepts to HRD would have significant benefit for the operational and strategic management of human resources in public organizations. Using HRA information in internal managerial decision making would demonstrate the value gained in excess of costs incurred for such activities. The application of HRA concepts in pubic organizations, whether to internal managerial accounting and decision making or to public sector financial reporting, would heighten the priority of HRD activities by recognizing them as asset building rather than as an expense.     

The impact of the financial sector on economic development: Some cross-section evidence

Conclusion This paper has attempted to analyze the effect of the development of the financial sector, as reflected by the extent of financial deepening, in the economic development of countries. The Theoretical framework integrating financial growth to real growth is basically an adaptation of the Gurley-Shaw theory of finance in the development context, but with emphasis placed upon the supply-leading role of the financial sector. The empirical results of this study although not conclusive, indicate that financial deepening leads to a higher rate of capital accumulation and a higher level of per capita income. The lack of definitiveness of our evidence in support of the financial theory of economic development is due to a lack of comparable data on financial institutions, other than banks, for the different countries. Thus, although our study lends support to the supply-leading thesis, further judgement of the thesis must await more detailed empirical analyses.     

The leadership environment of public sector executives

Olshfski uses critical incident methodology to describe the leadership environment of state cabinet officials. The rich data set offers insight into how state executives (1) learn about their jobs, (2) exercise discretion to determine their policy agenda, and (3) operate in the political environment of state administration. She concludes by pointing out discrepancies in our understanding of leadership and offers suggestions for leadership, research, and teaching.

Somerset Maugham is said to have begun all his lectures by saying there are only three things that one must know in order to be a good writer: the only problem being that no one knows what those three things are. The same might be said of leadership research. For example, Stogdill's survey of leadership research contains over 3,000 references and Bass's revision documents over 5,000 references.⁽¹⁾ The preface to Stogdill's survey assesses the status of leadership research: “four decades of research on leadership have produced a bewildering mass of findings…. The endless accumulation of empirical data has not produced an integrated understanding of leadership. “⁽²⁾ A more pithy evaluation is offered by Bennis and Nanus, “never have so many labored so long to say so little.”⁽³⁾ Yet, most people still vigorously believe in the importance of the leader and leadership research.⁽⁴⁾

Recognizing the confusion in the field of leadership research, this study attempts to describe the context within which public executives operate. It is assumed that the executive's operating environment determines the extent to which leadership is possible. Critical incident methodology is used to illustrate how public sector executives conceptualize their environment and how they operate based on that conceptualization. This research is driven by two questions: What is the leadership environment of the state cabinet executive? Secondly, how does the leadership literature facilitate the understanding and interpretation of executive leadership in the public sector?     

Decentralisation and government provision of public goods: The public health sector in Uganda

While many developing countries have devolved health care responsibilities to local governments in recent years, no study has examined whether decentralisation actually leads to greater health sector allocative efficiency. This paper approaches this question by modeling local government budgeting decisions under decentralisation. The model leads to conclusions not all favourable to decentralisation and produces several testable hypotheses concerning local government spending choices. For a brief empirical test of the model we look at data from Uganda. The data are of a type seldom available to researchers–actual local government budgets for the health sector in a developing country. The health budgets are disaggregated into specific types of activities based on a subjective characterisation of each activity's ‘publicness’. The empirical results provide preliminary evidence that local government health planners are allocating declining proportions of their budgets to public goods activities.     

Drug testing in the public sector: The role of unions

Not surprisingly, unions have traditionally played an active role in employee drug testing. And, although the U.S. Supreme Court upheld the constitutionality of drug testing in two 1989 decisions, unions have continued to wage challenges to urinalysis under the U.S. Constitution and in the labor arena. As this research shows, federal as well as state and local government unions have had some success in challenging the categories of employees targeted for testing, good faith bargaining over drug testing, and due process and equity violations around testing.     

Policy entrepreneurship in the development of public sector strategy: the case of London health reform

The development of health policy is recognized as complex; however, there has been little development of the role of agency in this process. Kingdon developed the concept of policy entrepreneur (PE) within his ‘windows’ model. He argued inter-related ‘policy streams' must coincide for important issues to become addressed. The conjoining of these streams may be aided by a policy entrepreneur. We contribute by clarifying the role of the policy entrepreneur and highlighting the translational processes of key actors in creating and aligning policy windows. We analyse the work in London of Professor Sir Ara Darzi as a policy entrepreneur. An important aspect of Darzi's approach was to align a number of important institutional networks to conjoin related problems. Our findings highlight how a policy entrepreneur not only opens policy windows but also yokes together a network to make policy agendas happen. Our contribution reveals the role of clinical leadership in health reform.     

Project management and job satisfaction in the public sector

The article addresses the question of the impact of project management on employee job satisfaction. After noting that the literature generally does not provide much information on the subject, the results of a study conducted in Garland Texas are presented. The Garland data, based on an analysis of twenty-two matched-pairs of employees (a group who had served on project teams were matched with a similarly-situated group who had not), indicated that project management does change employee opinions about management practices. Indeed, in terms of decision-making processes, goal-setting, interaction and upward communication processes, there were significant differences between the two groups. The study concludes that part of this effect may be similar to a “Hawthorne Effect”.     

Public sector reform and the public interest in Australia

Contemporary public sector reforms in Australia have been dominated by efficiency, productivity and contestability considerations captured in the National Competition Policy (NCP). Both in the reform process in general and in the NCP processes in particular, the lack of priority attributed to non‐economic concerns such as co‐ordination, equity, representation, political accountability, consultation and distributive outcomes has been a serious omission. The idea of public interest, once central to democratic public administration, has re‐emerged to challenge the perceived excesses of economic rationalism as the unifying idea of reform. In this article it is argued that substantive situational manifestations of public interest can be used to complement rather than undermine the efficiency, productivity and contestability objectives of public sector reform.     

Review of public budgeting and financial management

User charge is an alternative option to privatizing public service provision. But its use as a policy instrument, compared with that of asset sales or contracting out, for instance, is less researched and documented. This paper tries to fill the gap. By contrasting the experiences of employing user charge for two public services in Hong Kong with diametrically opposing results, this paper offers preliminary conclusions on several lessons, which governments, in their drive toward improved efficiency, can learn in commercializing their trading activities. Implications to public policy making are also suggested. These include: the user-pays principle has to be applied equitably, the public service market has to remain depoliticized, the management has to be transformed to behave more entrepreneurially, and the users have to be educated.     

Criteria for developing performance measurement systems in the public sector

The United States Government is placing increased emphasis on the development of financial measures, and measures of program effectiveness. The authors discuss government efforts in these areas. Various approaches and criteria are presented for the development of performance measurement systems, as well as generic criteria for selecting performance indicators, and obstacles to the process. Experience indicates that development of a performance measurement system is best served by a strategic planning approach with top management support, active management participation in goal setting, a small manageable number of goals, a strong link with the budget process, and an independent evaluation process.     

Managerial attitudes of public sector managers in Sub-Saharan Africa

Africa, and more specifically Sub-Saharan Africa, is faced with severe economic problems. The public sector, both the political and the managerial, is under severe attack to change its approach to the organization and management of society and its administrative System.

There is today, external, and to some extent internal, pressure to downsize the administrative system, to privatize, and to generally give up the prominent role played by the administrative system in the production and distribution of the general welfare.

This study attempts to assess the attitudes of public sector managers in Sub-Saharan Africa to what may be called universal managerial concerns such as problem-solving, leadership, job challenge, change, and organizational culture. It also assesses the level of satisfaction with career and particular positions of Sub- Saharan African mangers. In assessing attitudes and levels of satisfaction, we compare managers' attitudes with managers from other third world countries. The study concludes with the findings that routineness of work generates negative attitudes while bureaucratization and experience initiate positive attitudes towards universal managerial concerns.     

On the unintended consequences of publishing performance data in the public sector

Most performance indicator schemes in the public sector have been implemented on the assumption that they will yield benefits in terms of efficiency and equity. Less attention has been paid to the potential costs of such schemes. Drawing on experience from a range of sources, this paper identifies eight consequences of publishing performance data that are not necessarily intended, and which are likely to be dysfunctional. The paper gives examples of such phenomena from the UK public sector, and suggests ways in which they can be mitigated. While not challenging the desirability of publishing performance data, the paper concludes that the performance indicator philosophy is based on inadequate models of production and control. Most performance indicator schemes will therefore fail unless serious consideration is given to the deficiencies described in this paper.     

Governance traditions and narratives of public sector reform in contemporary France

This article explores the basic traditions of governance in contemporary France and the narratives of public sector reform associated with them. It should be stressed right from the outset that this article does not aim to describe the set of public sector reforms that have been implemented in France in the last ten years or so. Instead, the aim is to demonstrate the similarities and differences between the narratives of the left and the right with regard to these reforms and to show how these narratives help to explain the types of reform that have been enacted. The basic argument is that there is a certain commonality to both the left and the right with regard to their narratives of public sector reform. At the same time, though, there are differences of emphasis both within each tradition and between the two main traditions themselves. Except where indicated, all translations are the author's own.     

TQM and labor-management cooperation-- a noble experiment for the public sector

Recent initiatives by the Clinton Administration to promote labor-management cooperation and to reinvent government suggest reconsidering the efficacy of total quality management (TQM) and labor-management cooperation initiatives in the public sector. Key elements of both initiatives, for example, process improvement/innovation, focus on the customer, and employee empowerment, are inherent parts of the National Performance Review (NPR) and, as such, are critical to the achievement of NPR outcomes. Achieving these outcomes involves the simultaneous transformation of agencies and unions. This is no small task. The challenges and risks involved in such a large-scale transformation are identified, as well as the factors that make the public sector an appropriate (and safe) place for the American labor movement to experiment with new ways to manage relationships.     

Institutionalising ethics in the queensland public sector: Discussion of research into ethics education for public officials

This paper presents a case for a comprehensive approach to the institutionalisation of ethics in public sector organisational contexts. It argues that education and training have a central role in such strategies. The setting for this discussion is the State of Queensland, Australia, which is currently implementing a public sector ethics program. In particular, the author reports and analyses research conducted in the State of Queensland, Australia, in the latter half of 1993. The research explored the expectations of Queensland public sector managers as to the nature of ethics education programs. Analysis of the research supports the view that, with some reservations, public sector managers indicate significant support for the institutionalisation of public sector ethics in an educational framework.     

Traditions of governance: interpreting the changing role of the public sector

The role of the state is changing under the impact of, for example, globalization. The changes have been variously understood as the new public management (NPM), the hollowing–out of the state and the new governance. This special issue of Public Administration explores the changing role of the state in advanced industrial democracies. It focuses on the puzzle of why states respond differently to common trends.
This introductory article has three aims. First, we provide a brief review of the existing literature on public sector reform to show that our approach is distinctive. We argue that the existing literature does not explore the ways in which governmental traditions shape reform. Second, we outline an interpretive approach to the analysis of public sector reform built on the notions of beliefs, traditions, dilemmas and narratives. We provide brief illustrations of these ideas drawn from the individual country articles. Finally, we outline the ground covered by all the chapters but we do not summarize and compare their experiences of reform. That task is reserved for the concluding article.