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.     

THE MANAGEMENT OF PUBLIC PROVISION

Abstract: This work addresses the special character of public management by positing some important distinctions under-represented in current academic literature. In exploring the primary distinction between public administration and public management, the analysis proceeds from a treatment of public management as control of a production process uniquely configured as a combination of policy brokerage and resource management, to a demonstration of the economic agency (value addition) of public managers. The paper also presents a contextual analysis of the scope and scale of the public sector as this pertains to a model of "public provision", and introduces some new ideas regarding the temporal characteristics of public management as it responds to a discrete set of three cycles: the budget cycle, the product cycle and the policy cycle.
This work aims to provide tools for analysis which both distinguish public administration from public management and distinguish the economic agency of private managers from that of public managers. The general argument is that the "public provision process", while similar to a conventional production process, contains unique and important responsibilities which need to be understood and defended. By the same token, public managers ought to be empowered by a knowledge and identity which express their importance as economic agents who contribute both to the commonweal and to the wealth of the nation.     

PUBLIC SECTOR CULTURE MANAGERIALISM OR MULTICULTURALISM?

Abstract: Despite dramatic change in the Australian public sector, little attention has been paid to organisational culture. With the importation of private sector strategies and structures the traditional values of public administration have been eroded. Public organisations and their members have experienced consequences of "culture shock", even "cultural revolution". Managerialism is an introduced culture which has been criticised by some academics and public servants. It is seen as inappropriate to the distinctive values and operating context of the public domain, as purporting to value-free technique while in effect operating as the mystifying ideology of a dominant elite. Managerialism has been constructed, it is argued, on simplistic and now superseded concepts of rational "management man", goal setting and planning. While managerialism is not the culture which will endow public organisations with new meaning and propel them to excellence, it can expect to increase its hold in the absence of the development of new models of the culture of public organisation. While new public sector cultures will need to be organisation-specific, to accommodate the differentiation between and within public organisations, an overarching framework of public sector values and principles will be required. One of the distinctive features of most public sector organisations is die number and diversity of their stakeholders. A multi-cultural model of public sector culture is proposed, which construes this diversity of subcultures as an instrument of strategic flexibility.     

Managing and Leading in the Next Century

A 'quick scan' of the literature on management and leadership reveals a wealth of writings ¹ This article offers a broad overview and some thoughts, based on personal observation and experience, on future management and leadership needs in the Australian public sector. The present article first outlines, by way of illustration, some key pressures for continuing change within Australia's public sector and their possible implications for future management needs. Second, it addresses the distinction between 'management' and 'leadership'; and suggests that while the requirements placed on public sector management will continue to change, the skills required of public sector leaders are essentially timeless (and differ, in some respects, from private sector stereotypes of 'leadership').
Finally the article suggests why and how we should be seeking to develop 'leadership in depth' within public sector organisations, drawing on some illustrations from the Australian Department of Administrative Services.     

Mandate, Independence and Funding: Resolution of a Protracted Struggle Between Parliament and the Executive Over the Powers of the Australian Auditor-General

This paper examines a political struggle in the Australian federal sphere over parliament's right, exercised through the Office of the Auditor-General, to oversee the accounts and management practices of the executive and entities created by legislation to deliver public services. The period from the early 1970s witnessed a dramatic shift in the method of delivering government services to the community and an increasing attention to economy, efficiency and effectiveness in their administration and delivery. The Australian government has increasingly used private sector organisational models and modern management and accounting practices to deliver a wide range of services. The rise of these 'new public management' practices resulted in an erosion of traditional parliamentary oversight of government management and reporting activities. This historical analysis is based upon Porter's (1981) processual analytical framework. The analysis focuses on the action of groups such as the executive, parliamentary committees and the Office of the Auditor-General as evidenced in documents produced in response to critical events. Models developed by Funnell and Cooper (1998) are used to characterise the transition of public sector audit from a traditional administrative model to a corporatist model.     

Public Sector Labour Relations in Western Australia – An Overview

The election of a LiberalNational Coalition government in 1993 heralded a period of significant and sustained change in Western Australian public sector labour relations. As legislator, the Coalition government embarked upon a program to decentralise and deregulate the Western Australian industrial relations system; as an employer, the government has had to respond to the economic imperatives which have faced most employers in recent years. The result has been a period of major change in the public sector – employment levels have declined as services have been privatised or contracted out; the proportion of non-permanent and part-time employees has risen significantly. Individual workplace agreements have been introduced; individualised performance-related management and reward systems have increased; and the scope for union involvement has diminished, as has the level and density of union membership. The experience of the public sector therefore reflects many of the workplace changes that are also found in the private sector. It also brings the government's industrial relations policies into sharper focus.     

The Australian way of government and public sector commercial reform: from a lucky to a clever country?

In recent years, Australia has struggled to remain in the top twenty developed countries, globally. The reality is that Australia's natural resource and agricultural bases no longer serve to provide sustainable national competitive advantage. In the past decade, therefore, government initiatives have aimed to produce a range of industry policies, apparently designed to strengthen the economic base, enhance government and industry responsiveness and productivity, and to attract increased overseas investment. The modernization of Australian public sectors and the adoption of private sector business principles, especially commercialization and privatization, have been critical aspects of competitive reform. This article examines several of the key strategies adopted by Australian governments, especially those designed to enhance national competitive advantage, to determine which strategies may be working, or not working, and why. Particular emphasis is placed on the role of governments as corporate business managers and their ability to respond to commercial realities on a business management, as distinct from an ideological, basis. (© 1997 by John Wiley & Sons, Ltd.)     

The social policy of the firm

The welfare state concept hides an important aspect of modern industrial societies. In capitalist countries welfare is provided through a mixture of public and private initiatives. The author suggests that the concept welfare economy more fully captures the economic interpenetration of public and private sectors. The growth of fringe benefits illustrates the extent to which private enterprise performs the welfare function.Government increasingly intervenes through processes of mandating, stimulating, regulating, and supporting, using private enterprise as the vehicle for delivery of welfare services. Government's traditionally conceived role as welfare service provider is also changed through recognition that it is both an employer and purchaser, significantly impacting society's original income distribution.An earlier version of this essay was presented as a lecture at the University of Melbourne and published in Ronald F. Henderson, The Welfare Stakes: Strategies for Australian Social Policy, Melbourne: Institute of Applied Economics and Social Research, 1981.     

PUBLIC MANAGEMENT OR PUBLIC ADMINISTRATION?

Abstract: The debate over managerialism has been the most controversial issue in Australian public administration journals in recent years. Although most articles have been critical, there have been responses in favour of the changes by senior public servants. One unfortunate consequence of this debate has been the appearance of a gap between academic public administration and public service practice.
This paper argues that, from several angles, the work now carried out by public services is management rather than administration. It argues that managerialism is a long-overdue reform to a model which has outlived its usefulness. The traditional model of public administration was an irrelevance for many years; it was never efficient or effective and deserved to be replaced. However, public management does not necessarily mean the widespread and uncritical adoption of practices from the private sector. What it should mean is that a distinctive public management needs to be developed. This should take account of the differences between the sectors, but still recognise that the work being done by public servants is now managerial rather than administrative.     

The Curse of Sisyphus: Public Sector Audit Independence in an Age of Economic Rationalism

Consistent with the economic rationalist philosophy which now pervades the decisions and policies of all Australian governments, the persuasive aura of competitive markets has been used to justify the provision by the private sector of an increasing range of public services. Governments who have been consistently antagonised by the findings of the auditor-general are now attempting to use the arguments for competition in the public sector to diminish the stature and role of the auditor-general. In place of audit models which are based upon an auditor who is able to conduct audits on behalf of parliament, the auditor-general is to be increasingly isolated from the means to audit. This represents the onset of a radical interpretation of public sector audit which will usher in the last days of an independent public sector audit function.     

THE TRIUMPH OF ECONOMIC RATIONALISM: THE TREASURY AND THE MARKET ECONOMY

The 1980s have seen the triumph of economic rationalism. Greater efficiency has become a sacred goal. Increased competition and the unlocking of market forces, we are told, are the key means to obtain it. Proponents of economic rationalism insist that the public sector is riddled with inefficiencies. The private sector, by contrast, is self-evidently superior. To the extent that the private sector often operates less than optimally, a major reason is the plethora of perverse governmental regulations which hamper its efficiency. Despite the problems, the public sector needs to model itself wherever possible on the private. And where public sector activities can be or are being done in the private sector, then the public sector should surrender such activities. The inevitable result will be an increase in net economic welfare: the economy will become more dynamic and scarce resources will be allocated more efficiently. Such is the rhetoric of the economic rationalists.     

How clients' characteristics affect organization performance: Lessons from education

Those who support a greater role for the private sector in the delivery of social services cite evidence indicating that private organizations are more efficient than public agencies. Many of the quality differences between the two types of organizations, however, stem from differences in the composition of the client groups they serve; and these differences in turn stem from regulations that have the effect of sorting the clients of these organizations into groups with distinctly different socioeconomic characteristics. The challenge is to design the public regulations that govern private providers of social services in a way that reduces the tension between clients' demands for access and providers' demands for autonomy. The federal government's experience with education vouchers in the 1970s illustrates the difficulty of meeting this challenge.     

Re-evaluation of the Importance of the Public Service: Tasmania's Collaborative Program

In considering what should be the role of government in a community like Tasmania we need to understand the context within which we are working. We are a small population that is almost without exception a branch economy. No major corporations are based here – we have branch offices or divisions of major companies. We lack a managerial class – headquarters and management staff are based elsewhere – decisions made by the level of management based in our state do not take the welfare of the state into account. Our private sector does not have the capital and quite clearly the capacity to take up the challenge posed by a reduction of government services or a contraction of services. When public sector jobs are cut in Tasmania they stay cut. The private sector does not step into the breach and create jobs. Tasmania has always relied, to a large extent, on the public sector for its economic viability – with the contraction of public sector funding, the viability of the state's economy has been seriously eroded.     

Does Fiscal Stress Induce Privatization? Correlates of Private and Intermunicipal Contracting, 1992–2002

Using Census of Governments data, preferences for private and intermunicipal contracting by U.S. counties during the 1992–2002 period are modeled as a function of established economic and political factors. After distinguishing between private and intermunicipal contracting, there is no evidence that fiscal stress induces privatization. High debt levels are associated with fewer publicly delivered services, but counties with high debt are as likely to partner with neighboring municipalities as they are with private firms. Political factors are weak predictors of either form of contracting. The strongest and most reliable predictor of both private and intermunicipal contracting is the creation of new public services. These findings imply the strategic use of contracting for trial, temporary, or contingent services.     

Symposium: Exporting Government Services

To explore the prospects for exporting government services, guest symposium editor RFI Smith invites three agencies to comment on their experience. This overview stresses the need to specify carefully costs and benefits in taking operations offshore — both in strict financial terms and in dealing with perception and accountability issues.
The prospects for exporting public sector skills and services are at the same time tantalising and frustrating. After initial enthusiasm in the 1970s and 1980s, the management of export programs has turned out to be complex, demanding and not without controversy. Such programs have challenged their proponents to be at once sophisticated in business management, rigorous and transparent in public accountability, and sensitive to the capabilities and ambitions of private sector providers of similar services. Further, after approximately 10 to 20 years of experience in different Australian jurisdictions, aims, methods and estimates of results remain diverse.     

THE PUBLIC SERVICES AND CO-OPERATTVE FEDERALISM

A paper of this type clearly calls for some definition of terms. Although "The Public Services" are usually seen to comprise the State Public Services and the Australian Public Service, in reality of course, government institutionalized services to the public go beyond these seven agencies. All the statutory authorities—Commissions, Corporations, Boards and Trusts—are part of public administration; so also are local government bodies. There are in the various public services some agencies which form part of the public service proper (i.e. a Department defined as such under one or other of the Public Service Acts) whereas in others they have the independence of a corporate entity. In South Australia for instance the whole state water supply and sewerage services are provided by one public service department, the Engineering and Water Supply Department. In the other states those services are provided by more than one agency and these range from government departments and local governing bodies to statutory authorities. A similar division of responsibility exists in the road construction area where some states perform their highway undertakings through the agency of a statutory authority, while others prefer the tighter Ministerial control of a government department.     

The Interface management frontier: Modernizing local government. Part three

At the beginning of the 21st Century, local government faces the major challenge of restructuring and managing a new interface with its social, economic, and political environment. The devolution of public tasks to society requires a redefinition of the role of local government. The shift from producing to guaranteeing the remaining services requires at least the adoption of best practices from private-sector strategic marketing, production, and purchasing management. The restructuring of local government for customer satisfaction and decentralized decision-making requires careful attention to the demands of democratic political control, as well as to legitimate public interests that may not be included in the customer-satisfaction model. Thus, public management of local government cannot be content with internal modernization, but must redefine its relationships with its environment.     

The Balancing Act: Using Private Money for Public Projects

As public resources become scarcer, private donations for capital projects and public services may become increasingly important. Modern donors, using the new philanthropy philosophy common now in the nonprofit sector, may desire more control over the use of their funding than in the past. This research examines the effects of private donations on capital decision making, and explores the balancing act required by public officials between best practices and private norms in this process. The study uses the city of Omaha, Nebraska case, where corporate and individual donors have made significant financial contributions for the construction of a convention center/arena and a baseball stadium. Findings include both costs and benefits of this approach, and may be beneficial for theory‐building related to this relatively unexplored topic, as well as for practitioners faced with similar needs and demands.     

Mega Donors’ Perspectives on Philanthropy and Government Relations in Israel

Philanthropists’ involvement in the development and implementation of social policies is a growing yet understudied phenomena. Captured in the model of alternative politics, in which self-provision of public services emerges when citizens face the failure of private and public mechanisms, not only in terms of obtaining sufficiently high-quality services, but also in terms of utilizing political channels to influence public policy, and poses major challenges to the political system. This dynamic of welfare states in recent decades is contested, since while it provides new streams of funding and innovative and professional capacities, it also has potential negative repercussions to democratic processes, equity and universalism of social policies. In-depth interviews with fourteen Israeli mega donors are used to show how mega donors promote relations between philanthropy and government in Israel that are based on voluntary cooptation in which the government regulates the philanthropic activity in Israel. By voluntarily granting the government a mandate to regulate philanthropic activity, the mega donors lead philanthropy into a situation in which philanthropy’s autonomy may be jeopardized and its agendas may be subordinated to the priorities, preferences and business-minded worldview of the ruling elite - the political elite (government) and the business elites (mega donors).     

Policy planning and management dialogue with countries in transition

The economic and social transformation of the socialist state is a central concern of public policy planning. This article discusses three aspects of this challenge: the growth of policy interventions in the welfare state; modalities of public policies; and the organization of public policy planning. Modernization of public management in the west underscores the respective rationalities of state and market. The modern welfare state is now under financial pressure, cutbacks proceed and privatization and deregulation take hold. The author appraises these trends and their implications for countries in transition. Emphasis is placed on the need to demarcate public and private whilst at the same time building in social protection through public participation in policy planning.