Strategic management and public organizations: Lessons from the past and prescriptions for the future

The 1990s have become a decade of reflection and rethinking of foundational concepts in the field of public administration. Public adminstrationists are attempting to bring the best of management approaches to bear on the problems facing public organizations. Strategic management has been widely used in the private sector since the 1960s, and has gained increased acceptance in the public sector since the 1980s. It is a management approach that synthesizes much of what management theorists have long recognized as essential to effective management practice. This article traces the development of strategic management and examines what has been learned from the past that will improve future implementation efforts in public organizations.     

Managing the Public Sector in Hong Kong: Trends and Adjustments

Public sector management in Hong Kong was initially designed to rule the territory as a British colony. A number of changes took place in the last quarter century before Hong Kong's reintegration with China and the nature of public sector management has transformed over this period. An overview of administrative principles and practices and an analysis of changes reveal trends that were influenced by both local and international factors. The framework of traditional public administration in the territory adapted effectively to embrace the principles of new public management without much difficulty. The global economic crisis compelled the government to revise its strategies to expand public spending and adopt a further reduced role in the provision of public services. New social, economic and political challenges are driving Hong Kong to adjust to the changing circumstances and trends, and four noticeable shifts can be identified. They include shifts from an administrative to a political executive, from job cuts to job creation, from financial restraint to increased spending, and from public to private sector provision of public services. The trends are driven by local and international forces as well as the progress of democratization and political awareness in Hong Kong.     

Motivating the uninvolved worker: some conceptual and empirical observations

This paper focuses on the issue of whether less involved workers are affected by conventional management practices such as group involvement, merit pay, and participative management. The findings suggest that while these management practices have some influence on the performance of uninvolved employees, that uninvolved employees are behaviorally distinct from more actively involved workers. As a consequence, it may be prudent for managers in the public sector to develop management practices and approaches specifically designed to stimulate low involvement employees.     

SHIFTING SANDS: TEACHING PUBLIC ADMINISTRATION IN A CLIMATE OF CHANGE

This article analyses influences which in recent decades have changed the way in which public administration has been taught in British higher education. Focusing mainly on the former polytechnics, the article argues that a curriculum shift away from the social sciences and towards management, and changes in the nature of the British public sector, have profoundly influenced approaches to teaching public administration. It suggests that learning strategies are closely related to debate about the nature of the discipline and its location within the academic spectrum. The article also raises questions about the extent to which public administration teachers in British universities are equipped to present the more applied and skills-based teaching which has often been adopted in recent years, and the tensions which this might pose particularly in the‘new’universities with the increasing emphasis upon academic research.     

Deregulation and the decline of public administration teaching in the UK

In 1991 eight polytechnics offered a BA in public administration while five universities provided the degree with either public or social policy. Currently, no higher education institution in Britain offers a BA degree solely entitled 'public administration'. The subject area is, however, offered in 16 higher education institutions under a variety of names that include, in any order, the words 'public', 'management', 'policy' and 'administration'. This paper analyses the reasons for the transformation during the 1990s in undergraduate courses for the public sector. It is argued that these changes do not so much derive from academics, employers or students taking on board an enthusiasm for new public management but are as much the consequences of deregulation of student choice and an expansion in student numbers that has not been matched in financial terms. The consequence has been to increasingly move this sector towards business and management teaching geared to private sector interests and away from its more political and social science roots.     

IMPROVED PERFORMANCE IN LOCAL ECONOMIC DEVELOPMENT: A WARM EMBRACE OR AN ARTFUL SIDESTEP?

This article examines the extent to which changing approaches to performance management have had an impact on a range of agencies responsible for local economic development programmes in Britain. It explores the possibility that the effectiveness of public programmes could be more sharply highlighted and incorporated in the performance review of organizations. It demonstrates that major improvements have occurred but that overall the planning and management of local economic development remains largely incremental. While the FMI (Financial Management Initiative) has led to greater understanding of the extent to which corporate and programme accountability can be achieved in public agencies, it is not clear that sufficient momentum has been achieved for future changes to be self-generating. Further progress in performance management continues to be dependent on strong external pressures to publicize, probe and reward demonstrable improvements in public sector performance.     

Forget “Blind Leading the Seeing” – Improving Public Service Management

The aim of this research is to identify the most effective public service management approaches for outsourced services. Our focus is on the phases of transition and service management post provider selection. To reach this aim, comparative case studies across sectors were conducted. The studied cases indicate that managing an outsourced service should not be a separate area of public management research nor practice, but rather a part of service management. Best practices in (outsourced) public service management are provided. Management focus on transition phase after provider selection, performance measurement, and evaluation will bring efficiency to public sector service production.     

Therefore,Is Bureaucracy Dead? Making a Case for Complementarity of Paradigms in Public Administrative Thinking and Discourse

Public Administration has gone through conceptual development to inject renaissance and public value creation. The literature provides a battleground of ideas between bureaucracy, new public management and post NPM with the latter ones chastising bureaucracy. The new developments should be seen as perfecting and correcting some of the extremes of bureaucracy but cannot replace it entirely. Owing to the broad nature of the public sector coupled with complex goals, agencies and mandates; this paper argues for a synergistic relationship and harmonization of the principles espoused by each paradigm; because each may be applicable in specific context, sector and periods.     

QUALITY AND PUBLIC SERVICES

The issue of quality of service is becoming increasingly important in the public service as a result of new approaches that are being adopted to management, notably the development of contract-based management. The argument of this article is that the concept of quality is a particularly difficult one for the public services, because of problems of information asymmetries. The first sections of the article are concerned with the meaning of the concept of quality and the problems of managing quality in the service sector and the public service in particular. The central argument of the article is that there are important problems of information asymmetries between service providers and service consumers. Four different situations of differential information availability are distinguished. The article argues that the issue of quality in the public service is an inherently political one.     

Co‐production as a route to employability: Lessons from services with lone parents

Policy‐makers claim to support personalized approaches to improving the employability of disadvantaged groups. Yet, in liberal welfare states, mainstream activation programmes targeting these groups often deliver standardized, low‐quality services. Such failures may be related to a governance and management regime that uses tightly defined contracting and performance targets to incentivize (mainly for‐profit) service providers to move people into any job as quickly as possible. This article draws on evidence from third sector/public sector‐led services in Scotland to discuss an alternative approach. These services co‐produced personalized support in partnership with disadvantaged service users (in this case vulnerable lone parents). We suggest that, in this case, street‐level co‐production and personalization were facilitated by co‐governance and co‐management in the design and organization of provision. We conclude by identifying lessons for future employability services.     

CONTINUITY AND CHANGE: THE ROLE OF THE HR FUNCTION IN THE MODERN PUBLIC SECTOR

As the public sector has modernized and sought to become more efficient and cost‐effective, the effective and strategic management of people has received increasing prominence and there have been calls for the Human Resource (HR) function to play a more strategic role. However, not much is known about whether the role of the HR function has changed substantively. In this paper, we present empirical evidence from six matched‐pair public sector organizations in the UK to assess whether HR functional roles have changed, as envisaged, into a model more akin to the private sector. The findings highlight the complex and often contradictory nature of HR functional roles, and suggest that new and more strategic roles have not replaced traditional approaches but, rather, have been grafted on, giving rise to a variety of hybrid HR forms.     

Are You Being Served? The Responsiveness of Public Administration to Citizens’ Demands: An Empirical Examination in Israel

Research in public administration (PA) is preoccupied with questions of efficiency and effectiveness which are aimed at improving public sector performance. According to the new public management approach, addressing this prominent challenge must rely upon a comprehensive understanding of citizens'/clients' perceptions of public sector operation and the extent to which public organizations are aware of public needs. This paper suggests a theoretical grounding and empirical examin-ation of the relationship between citizens' demands and PA's responsiveness. Parti-cipants in the study were 281 residents of a large Israeli city who reported their feelings, attitudes, and perceptions of local government activities in a variety of fields. Results indicate that perceptions of PA's responsiveness are affected by both policy and cultural factors (for example business or social orientation of the public authority, entrepreneurship and initiation of changes, ethics, organizational politics) and by the quality of the human resource system and of public servants (for example quality of leadership and management, quality of employees, general stress when contacting public officials). Implications of the study are discussed in light of the ongoing debate regarding the need for a more responsive and efficient new public management and the difficulties it faces in western societies.     

Exploring Contracts as Reinvented Institutions in the Danish Public Sector

Contracts have been on the agenda in public sector reform in most OECD countries. In Denmark, contracts have been considered as one of the most important tools in reorganizing the public sector. The article examines the implementation of contract agencies in central government in Denmark during the 1990s. First, a review of contractual theory distinguishes between 'hard' and 'soft' contracting. Second, recent developments in contracting in Denmark are examined, and three phases of contract agencies are identified. Contracts have been supported by other tools for reporting on performance like annual reports. Third, it is argued that Denmark has put co-operation and negotiation before more strict management and control. The Danish experience can be seen as an alternative to the principal-agent model. The article finishes by discussing the pros and cons of the Danish approach, and suggests that although the pragmatic approach has merits, it may lead to problems in the future concerning the credibility of the whole project.     

Going privately: partnership and outsourcing in UK public services

Public private partnerships provide an important illustration of the way the traditional role of government as employer and service provider is being transformed. While policy–makers argue that the growing role of the private sector is not driven by ideological thinking – that, in fact, both public and private sector organizations can benefit from working together in partnership relations – in practice it is the norms and rules of private sector management that underpin reforms. This paper assesses evidence from two detailed case studies of partnerships and demonstrates, first, that there is little evidence of mutual gains from partnership arrangements and, second, that because of an imbalance of power between public and private sector partners, any gains achieved are not distributed equitably. These results suggest that current reforms need to be refocused around building on the distinctive qualities of services provision in the public sector, rather than expanding the private sector world of markets and contracts.     

Total quality management: panacea or placebo for hospital management?

Total Quality Management (TQM) has gained widespread acceptance and application in both the private and public sector organisations in Australia yet, for a number of complex reasons, the public health sector has not kept pace with these developments. Several attempts have been made recently to introduce TQM into public hospitals although with mixed results. This article examines one of the first of these to draw out the paradoxes and dilemmas confronting those seeking to implement TQM in public hospitals. It is argued that the implementation of TQM or quality programs in health care will require different management and organisational approaches to the ones commonly found in the TQM literature.     

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.     

Public Services, Quangos And Women: A Concern For Local Government

The past eighteen years have witnessed a shift in the locus of much public sector service provision from elected and heavily regulated local government to the more opaque, appointed sector of quasi-autonomous non-governmental organizations (QUANGOs). This shift has been the basis of much debate about the nature of democratic accountability and whether the users of public services are empowered by such decentralization. What has yet to be considered is how the displacement of local authority representation and service delivery may affect different groups of service users. This article is concerned with such issues in relation to women as consumers of public services who, from genuine political as well as expedient motivations, have been relatively well represented by local authorities. The concern here is that as decision making moves away from public view, the need to be seen to accommodate difference is lost, and representative diversity will suffer.     

INDIVIDUALIZATION AND PUBLIC SECTOR LEADERSHIP

This is a conceptual paper whose aim is to relate the development of ‘individualization’ ( Beck and Beck‐Gernsheim 2002 ) to organizational leadership. It does this by examining individualization alongside the implicit assumption on which orthodox approaches to leadership are founded, namely that leadership is an individualized phenomenon. Despite the expanding literature on these topics, particularly that on leadership, these concepts have not been examined in relation to one another. This paper seeks to do this in two ways. Firstly, it highlights the increased attention given to leadership in the UK public sector, locating leadership as a continuation of public sector managerialism. Secondly, it discusses the development of the trend of individualization more broadly. The paper’s main discussion focuses on leadership as an individual activity and of the consequences of that approach. In particular, it argues that individualized leadership presents a restrictive perspective which does not allow for exploration of a broader range of leadership approaches, particularly that of distributed leadership, which have especial relevance for public sector organizations.     

Whānau Ora and the Collaborative Turn

In the context of the ongoing evolution of the field of public management, this article first explores the two interlinked concepts of collaboration and accountability. It suggests that these are understood and applied in a number of different ways. Using research and semistructured interviews with a number of government officials and nongovernment service providers, the article then explains how these approaches are reflected in a current New Zealand initiative of devolved governance—Whānau Ora. The different, and at times conflicting, perspectives of New Zealand’s formal model of public sector management and that of traditional Māori culture are explained.     

Does Ideology Matter? Incentive,Efficiency and Management in the Public Sector

Contracting out has become increasingly popular as a strategy for public sector management for reducing costs, alleviating the burden on government agencies providing services, as well as taking advantage of the practices that have succeeded in the private sector. Generally, the system of management in capitalist liberal democratic systems of government that emphasize rule of law, transparency, performance measurement, and accountability are expected to be more efficient, while socialist regimes are considered to be inefficient due to the lack of these features. This article compares two dissimilar cases of the Hong Kong Special Administrative Region and Shenzhen Special Economic Zone of China. An examination of the management of contract in the area of public housing in these cities reveal that the socialist city of Shenzhen has achieved a higher level of efficiency, while capitalist Hong Kong lags behind in establishing an effective system of management of contracts in the public sector. The finding challenges the traditional assumptions related to efficiency under different ideological regimes.