PRODUCTIVITY BARGAINING IN COMMONWEALTH GOVERNMENT ORGANIZATIONS

Abstract: Despite several experiments with productivity bargaining in the Commonwealth employment sector, the rigidity of employment conditions was considered to be a limiting factor to the wider application of this technique to the public sector. Nor did it appear to be suitable for adoption within the compulsory arbitration system. However the frustrated expectations of blue collar employees in government employment during the Labor government's term of office stimulated the exploration of productivity bargaining as a way of achieving reduced working hours without contravening efforts to restrain wage inflation. The events within the Australian Post Office (later to become the Australian Postal Commission and the Australian Telecommunications Commission), the Commonwealth Serum Laboratories Commission, the Overseas Telecommunications Commission and the Reserve Bank of Australia are described and some differences in the processes involved noted. The nature and significance of productivity bargaining as a technique for the immediate future are also discussed, particularly in the light of continuing stagflation and the interest of the government in wage restraint and national productivity growth.     

Delegation without Agency Loss? The Use of Performance Contracts in Danish Central Government

Performance contracts entered between ministerial departments and their agencies are used throughout the Danish central government. The article analyzes the use of performance contracting in 2005. The analysis draws on transaction cost theory and actor-centered institutionalism, stressing the bargaining aspect of hierarchy and the importance of economic and political transaction costs. The analysis shows considerable variation in the content of performance demands. Ministries with different organizational designs use contracts in markedly different ways and agencies with a strong interface to individual citizens and businesses are more likely to meet demands regulating policy delivery and service levels. Further, contracts contain substantive clauses, the terms of which are largely assessable. It also shows that performance contracts only rarely specify demands related to cost efficiency within agencies. Many of these results are statistically significant, even though a general point is the wide variation in the implementation of performance contracts between individual ministries.     

PRODUCTIVITY BARGAINING IN THE AUSTRALIAN PUBLIC SECTOR: A CASE STUDY

Abstract: Standard hours of work have been relatively uniform throughout the work force in Australia. Reductions have occurred only after careful consideration by the industrial tribunals and/or the parliaments. Provision of special treatment in this matter for particular groups of employees has been limited. The use of productivity bargaining techniques to secure reduced standard hours of work for a relatively small proportion of the work force — as occurred in the public sector in the mid-1970s — represented a significant departure from previous practice. This is a study of the first of these cases which, in effect, set the ground rules for a series of similar cases conducted later within the Commonwealth public sector. It sets out the steps which were necessary to have the productivity agreement accepted and points out novel features which arose in the application of the productivity bargaining technique.     

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.     

Overcoming the Barriers to Cooperation: Intergovernmental Service Agreements

Interlocal cooperation through service‐sharing agreements has a long history, but its use has increased in popularity during the last 20 years. The decisions of local government units to collaborate through intergovernmental service agreements are best understood as a two‐stage process. The first stage, in which communities decide whether to consider interlocal cooperation, involves the nature of the immediate problem faced plus specific demands for performance and efficiency gains that can result from service cooperation. In the second stage, communities confront a question of institutional supply, and hence must overcome inherent bargaining and collective action issues in order to forge interlocal agreements. Heckman probit estimates of such complex relationships using data drawn from a 2003 ICMA survey suggest strong support for this model. The authors conclude by discussing the role of network relationships among local actors for reducing transaction costs and facilitating intergovernmental collaboration.     

The politics of productivity and the politics of anti-communism: American and European labour in the Cold War

The ‘politics of productivity’, an attempt to raise levels of industrial productivity in Europe by transcending class conflict and creating a consensus in society for economic growth, was a prominent element in Marshall Plan thinking. It constituted a central focus of the European Recovery Program's labour programme administered by American trade union officials who staffed the Marshall Plan's Labor Division. This programme was initially supported by the American Congress of Industrial Organizations (CIO), until hostility to collective bargaining in the local business community, combined with the unwillingness of senior Marshall Plan administrators to insist on collective bargaining as the price of receiving American assistance, blighted the project. This contribution contrasts the CIO's initial support for the productivity programme with the American Federation of Labour's (AFL) more direct strategy of combating communism at the level of organization and propaganda. It concludes by describing how the competing claims of these two American labour organizations for US government funding became a significant factor in American labour's conduct of Cold War politics.     

Public Pensions and Collective Bargaining Rights: Evidence from State and Local Governments

An aging workforce and increasing retirement benefits are ongoing problems for states and municipalities. Unions are often blamed for governments offering too generous pension benefits. This contributes to budgetary pressures in some state and municipal governments. This article analyzes the impact of collective bargaining on pension benefit generosity under different economic conditions. The study finds that the impact of collective bargaining on pension benefits is not consistent over time or across pension plans. Collective bargaining has a positive effect on pension benefits under worsening economic conditions. Additionally, unions indirectly influence pension benefit generosity through campaign donations and unionization intensity. The findings suggest mixed impacts of collective bargaining on different groups of public employees regarding pension contributions. The article concludes with implications for the role of unions in public financial performance and strategic human resource management during fiscal austerity.     

Managing Performance at Local Government Level: The Cases of the City of Brisbane and the City of Melbourne

Local governments have been involved in a continuous reform process during recent decades. In many cases, this process has focused on the introduction of performance measurement and management. Reforms have evolved from the mere use of indicators to integrated management systems. In this article, the Balanced Scorecard, a system designed to answer the need for integrated management systems, is used as the framework to analyse how local governments have managed the use of performance management systems. The demands for better public performance, for greater customer focus, for enhanced decision-making and for increased responsiveness have an important role in the design of performance management systems. In addition, a perceived crisis in the area of management can act as catalyst for the implementation.     

ADOPTING PERSONNEL PRODUCTIVITY INNOVATIONS IN AMERICAN LOCAL GOVERNMENTS

Improving the productivity of public employees has increasingly attracted the attention of urban policymakers and administrators concerned about the quality, cost, and efficiency of governmental service delivery. A national survey of local personnel managers was undertaken to ascertain the degree of jurisdictional receptivity to personnel-based management tools, preferred approaches, and the most serious policy and institutional barriers to the implementation of these changes. Research findings concerning the adoption of personnel reforms are generally consistent with those reported in prior studies except for an increase in the utilization of job enrichment techniques by local administrators. The reluctance of labor organizations to accept productivity bargaining and the unwillingness of local authorities to consider financial incentive plans for governmental executives are cited b y our respondents as the chief obstacles to greater managerial effectiveness.     

Participation, Fragmentation and Union Response: The 1998–2000 ACT Public Sector Bargaining Round and the Workplace Relations Act

The current Australian Capital Territory (ACT) public sector workplace bargaining round lasted more than two years with most agreements involving a trade-off between low wage outcomes and protection of job security within performance improvement measures. The main focus of this paper is on government and agency experiments with bargaining structures and processes. The first was a limited and largely unsuccessful attempt in 1998 and 1999 at participative agreement making without the involvement of the key unions. The second, a selective decentralisation of bargaining to parts of a single business, was more successful: of 50 agreements, over 40 have been achieved. The procedural success of the decentralisation strategy is a significant outcome. However, the fragmentation strategy contained internal contradictions and required strong centralised policy control of bargaining agendas and outcomes, leading to delays and breeding distrust. Unions conducted effective defensive campaigns against non-union agreements and involuntary redundancies, but face their own dilemmas in finalising this round and preparing for the next.     

Using brain skill assessments to increase productivity in development administration

This article describes how BMS (brain skill and management styles) assessments have and can be used to increase productivity in development administration. The article starts with a brief outline of the management climate which executives face in developing countries (crisis and rapidly changing environments). The article points out that although developing countries have significantly increased their productivity by using traditional quantitative management tools and techniques, they increasingly find that these approaches need to be supplemented with other techniques more appropriate to the environment they must contend with. BMS programmes have been found to be one tool which, combined with established training programmes can serve to increase productivity in developing nations with existing personnel. The article describes what a BMS programme is (identifying human brain skills and management styles that exist in organizations, and matching these skills/styles to the management problem at hand where they can be best employed to enhance productivity), and illustrates how this technique has been used successfully in one developing country. The BMS programme applications in the article are based on the results of testing over 2000 managers and also the experience from implementing in-depth BMS programmes in several countries in a wide variety of organizational settings (business, government, education, military and health).     

Verhandeln statt Argumentieren oder Verhandeln durch Argumentieren? Eine empirische Analyse auf der Basis der Sprechakttheorie

In a recent debate in German political science the terms ?bargaining and arguing“ have been construed as semantic opposites in the same dichotomous way as the terms ?strategic action and communicative action“ and ?game theory and discourse theory“. This paper rejects the notion of these dichotomies and presents a new theoretical approach to distinguish bargaining and arguing as modes of communicative resolution of conflicts. On the basis of speech act theory a method for the empirical analysis of bargaining and arguing processes is developed and demonstrated with an example of interest conflict resolution by mediation. Three conclusions can be drawn: First, in empirical processes of communicative conflict resolution, in almost all cases both arguing and bargaining will be present. Second, within the context of an interest conflict, arguing is not an alternative to bargaining, but a means for bargaining. Third, in the example in question a sequential structure could be observed: The resolution of disagreements over facts and values by arguing took place before the resolution of interest conflict by bargaining.     

The effectiveness of the road accident fund (RAF) performance‐management development system at the RAF office in Durban,South Africa

In today's globalised business world characterised by a high level of competition and unstable markets, businesses are called upon to utilise their resources in the most effective and efficient manner to survive. It has become critical for businesses to monitor their employees' performance and to constantly develop and train employees to eliminate inefficiencies and improve productivity. Performance management has come to play an indispensable role in helping organisations reach their productivity goals. However, research indicates that many organisations have failed to implement and maintain effective performance‐management systems owing to employees' negative attitudes towards performance‐management practices. This paper through a quantitative approach investigates the effectiveness of the Road Accident Fund (RAF) performance‐management development system (PMDS) at the RAF office in Durban, South Africa. The sample of participants were selected from different structures across the organisational hierarchy. The key findings from the study indicated that within RAF performance management review outcomes are very subjective; the performance management system is not fully implemented; there is inconsistent implementation of performance management amongst different departments; and a lack of managers' involvement in implementing the performance management system. Some of the recommendations made include the use of 360° feedback appraisal for employee performance evaluation; keeping up‐to‐date job profiles outlining the roles and responsibilities of staff; and making sure that employees are aware of performance measurements and performance criteria used during performance reviews to reduce subjectivity.     

The problem of polarization

This paper offers a unified political economy explanation of political extremism and moderation regarding income redistribution. Unlike the standard spatial voting model, the explanation herein recognizes that extremists are distinguished not only by their political positions, but also by the intensity with which they hold them. The paper uses an extension of Aumann and Kurz’s (Econometrica 45(5):1137–1161, 1977) bargaining model to endogenize moderation and extremism in the context of democratic voting. The extension shows that low-income voters tend to be bolder in their redistributive demands and high-income voters tend to be more tenacious in defending them. These hypotheses are evaluated empirically using the Political Action Panel Study.     

Bicommunal Systems: Guyana, Malaysia, Fiji

Drawing on the experiences of Guyana, Malaysia, and Fiji, thisarticle examines the hypothesis that bicommunal systems havea high potential for conflict, violence, and even disintegration.In all three countries there is segmentation along ethnic lines.Rather than a "balance" existing between the groups in eachcountry, one group is hegemonic. Nevertheless, although thereis not exact proportionality in the ethnic composition of thecabinet, civil service, and so on, there is some approach toit. Within the context of hegemony, some bargaining among groupsis permitted, though less so in Guyana, which has fewer economicresources and is more reliant on coercion. However, there canbe no bargaining about the existence of hegemony. Two otherfeatures have contributed to a relatively low degree of conflictin each of the three countries—recent happenings in Fijinotwithstanding: the absence of external intervention and thefact that the ethnic groups are not so greatly concentratedgeographically as to encourage demands for secession.     

AUSTRALIAN PUBLIC POLICY AND THE PROBLEM OF FRAGMENTATION

Abstract: Politics matters in policy. In particular, the way in which a society organises its structures for bargaining affects the extent to which it is able to solve the general problem of "externalities" resulting from private choice. Two "ideal type" societies, the corporatist and the pluralist, are contrasted. It is suggested that the apparently superior economic performance of corporatist societies may be due to the fact that they have more efficient means of making collective choices than do pluralist societies. It is argued that, as a society which is best described as fragmented rather than pluralist or corporatist, Australia may be missing out on the advantages offered by well-structured bargaining. In particular, it may be possible significantly to improve decision-making practices by means of an Accord between business and government which promotes policy-related trade-offs within an agreed general framework.     

Crisis Management in Hindsight: Cognition, Communication, Coordination, and Control

This article argues that cognition is central to performance in emergency management. Cognition is defined as the capacity to recognize the degree of emerging risk to which a community is exposed and to act on that information. Using the case of Hurricane Katrina to illustrate the collapse of the standard model of emergency management without a clear focus on the role of cognition, the author reframes the concept of intergovernmental crisis management as a complex, adaptive system. That is, the system needs to adjust and adapt its performance to fit the demands of an ever-changing physical, engineered, and social environment. The terms of cognition, communication, coordination, and control are redefined in ways that fit the reality of practice in extreme events. A reframed intergovernmental crisis management system may be conceived as a dynamic interorganizational system that is characterized by four primary decision points: (1) detection of risk, (2) recognition and interpretation of risk for the immediate context, (3) communication of risk to multiple organizations in a wider region, and (4) self-organization and mobilization of a collective, community response system to reduce risk and respond to danger.     

Managing Racial Diversity: Matching Internal Strategies with Environmental Needs

Although demographic diversity has been of paramount concern to researchers and practitioners in public management, studies exploring managerial strategies to capitalize on and respond to the needs of diverse client populations are scarce. This article examines strategies for managing diversity as a way to buffer environmental challenges in service delivery and performance resulting from heterogeneous client demands. Findings suggest that administrators prioritize diversity efforts when faced with higher levels of regulatory violations (a performance measure). A higher percentage of black residents is associated with lower service quality. However, the effect of managerial strategies for diversity on performance is conditioned by the racial composition of the clients: as the percentage of black nursing home residents increases, diversity management efforts are associated with a lower number of regulatory violations. Similarly, at higher levels of racial heterogeneity, diversity management efforts are associated with fewer regulatory violations.     

Anomalies in Political Economy

Results in cognitive psychology and experimental economics indicate that under identifiable conditions individuals do not act in an economically rational way. These results are important for Political Economy. Anomalies appear in the behaviour of voters, politicans and administrators. Economic markets do not fully eliminate anomalies in the aggregation process. It is shown that political aggregation by democracy, bargaining or bureaucracy may weaken or strengthen such individual anomalies. Moreover, institutions can partially be interpreted as endogenously emerging as a result of individuals' demands to cope with anomalies.     

The theory of economic regulation and public choice and the determinants of public sector bargaining legislation

In this study we used the theory of economic regulation and public choice to derive a model to explain the pattern of public sector bargaining laws among the states. We find this type of legislation is influenced by the following demand factors: (1) the extent of public sector union membership, which represents the interest group hypothesis, has a positive influence on pro-union legislation; (2) the extent of employer opposition to unions, as measured by unfair labor practice charges against employers in representation elections, has a negative effect on bargaining laws; (3) two taste variables — the salaries of public employees and the percent of nonwhite employment in the state — have a positive influence on these laws. A result which will be surprising to many people is that the extent of private sector union membership has no significant influence on the passage of public sector bargaining legislation.Our empirical analysis indicates that supply factors are also important in explaining the pattern of public employee bargaining laws across the state. We find that states are more likely to enact pro-union legislation under the following conditions: (1) constituents appear to hold pro-labor views as represented by their Congressmen's voting record; (2) neighboring states have passed mandatory bargaining laws; and (3) when competition is greater among the political parties.