Innovation and Implementation in the Public Sector: An Examination of Public Entrepreneurship

This article develops an empirical measure of public entrepreneurship and uses it to discover the correlates that distinguish between those participants in a policy domain who are seen as more or less important in the entrepreneurial process. Looking at two rural regions dealing with telemedicine technologies, the authors examine the role of personal attributes and situational attributes in predicting who will emerge as the most mentioned public entrepreneurs on these issues in their community. Status in the local community, membership in the health professions, and strong local focus and ties are the most instrumental variables in distinguishing between those in a policy domain who are more likely to be identified as entrepreneurial. The authors provide an empirical test that can, for the first time, identify in a comparative context the traits that distinguish more entrepreneurial individuals from less entrepreneurial ones (or nonentrepreneurial ones) participating in the same policy domain.     

Funding Levels and Gender in Public Pension Plans

Using a comprehensive sample of 2002 and 2005 U.S. public retirement systems, we found that public pension plan underfunding grew dramatically in these years despite a good economy, increasing state tax revenues, and strong stock market returns on average, plans were only 83% funded. Teacher plans and plans with the most retirees were more underfunded. We found no significant differences related to asset allocations or actuarial assumptions about inflation and rate of return. A primary factor associated with significantly lower underfunding was more female active participants in the plan, suggesting another risk to women's retirement income.     

Public Sector Corporate Governance Disclosures: An Examination of Annual Reporting Practices in Queensland

In the public sector, corporate governance is an expression that is yet to be explicitly defined. This paper examines the existing public sector literature in order to derive a set of broad principles of corporate governance in the public sector. These principles are then applied through a content analysis of corporate governance disclosures in a group of government‐owned corporations, state government departments, local governments and statutory bodies. The results indicate the set of principles derived is generally applicable to various forms of public entities. However, due to a lack of an established public sector corporate governance framework, the disclosure of corporate governance is piecemeal. Government‐owned corporations achieved better disclosure practices in most principles than other public sector bodies. The paper aims to stimulate debate on public sector corporate governance and provides a basis for a more extensive survey on corporate governance disclosures.     

An Options Pricing Method for Calculating the Market Price of Public Sector Pension Liabilities

State and local public sector employee pensions are widely known to be underfunded, but pension financial reports do not reveal the true extent of funding shortfalls. Pension accounting methods assume that plan investments can earn high returns without taking any account of the market risk involved. This gives a false sense of the financial strength of public sector pensions and understates risks to taxpayers. Since accrued pension benefits are legally and constitutionally protected, any pension funding shortfalls must be met by taxpayers. This benefit guarantee amounts to an effective put option on plan investments, the cost of which is not disclosed under current actuarial accounting. This paper uses an options pricing method to calculate the market value of taxpayer guarantees underlying public sector pensions. The average funding ratio declines from 83 percent under actuarial accounting to 45 percent under this options pricing approach. The typical state has unfunded public pension liabilities three times larger than its explicit government debt. Public pension shortfalls equal an average of 27 percent of state gross domestic product, posing a significant fiscal challenge in coming years. Accurate measures of public pension liabilities are important for policy makers, taxpayers, investors considering the economic environment in which to start or locate a business, and bond purchasers considering the risk premia appropriate to municipal government bonds that are in practice subordinate to public pension liabilities.     

What's in a Sector? The Shifting Career Plans of Public Policy Students

Recent decades have seen a trend in which public policy graduates shun government and enter private-sector employment. In part, the shift reflects changing sectoral opportunities, but its magnitude and consistency are puzzling—even troubling—in light of the need for public-sector talent. Data from a two-year series of surveys and interviews with policy students reveal that many begin their training with uncertain career goals and ambivalence about public-sector work. Interest in government declines from entry to graduation, and it appears that the policy curriculum—heavy on analytic methods and conveying cautions about policy making—does little to promote a public-sector orientation. Those planning to enter government are strongly motivated by a desire to have an impact, whereas those drawn to the private sector seek financial resources and professional development. Many anticipate fluid careers and choose positions expected to offer growth, a feature more commonly associated with private than public jobs.     

A Longitudinal and Comparative Analysis of the Funded Status of State and Local Public Pension Plans

Although state and local public pension plans hold approximately one-third of the $3 trillion asset total of U.S. pension funds and represent sixteen million workers, relatively little research has been done on their funded status. This article presents the results of a longitudinal and comparative analysis of the funding condition of state and local public pension plans. The study includes 205 plans representing 91 percent of the total assets and approximately 94 percent of the members of state and local public pension plans. By examining the period from 1988 through 1992, the article provides a general 'assessment of the funded status of state and local public pension plans and concludes that, as a whole, the plans are adequately funded and have improved in their funded condition over time.     

Understanding Public Sector Ethics: Beyond Agency Theory in Canada's Sponsorship Scandal

ABSTRACT

Public sector ethics is a topic of ongoing concern in developed democracies. The most popular theoretical approach to this issue is found in principal–agent theory literature. This approach assumes that public sector organizations are populated by principals and agents, each of whom pursue their own self-interest, with agents having a persistent informational advantage. A second approach to ethical conflicts focuses on cognitive processes. According to cognitive theory, all decision makers are vulnerable to “ethical numbing,” particularly in organizational settings that condone the substitution of personal agendas for organizational goals. We argue that Canada's sponsorship scandal has been interpreted almost exclusively from a principal–agent perspective, with subsequent reforms firmly based on introducing new rules to oblige agents to advance the interests of principals. While more faithful adherence to established rules by agents would have avoided a scandal, such adherence is unlikely to be achieved through incentives, monitoring, and penalties as suggested by principal–agent theory. The policy message contained in and implied by the cognitive framework suggests that the focus must be on creating an organizational learning environment that discourages responsible public officials from reframing decision situations in a manner that allows them to become morally disengaged.     

公共管理视域中的第三部门：功能、优势及困境

第三部门与公共管理无论从理念还是实践层面都具有紧密的内在联系。第三部门是公民社会的组织,在公共管理的多元主体体系中,代表来自市场和政府之外的力量。在公共管理中,第三部门发挥独特的功能,它已经成为推动经济发展、提供社会公共服务、推进民主政治进程、维护社会稳定、促进社会资本积累的重要力量。第三部门功能的发挥源于第三部门在贴近民众、行动灵活、创新性、专业性、广泛性方面具有独特的优势。同时,第三部门由于内外两方面的原因,存在活力缺失的困境。第三部门要走出困境,客观上需要第三部门自身、政府和社会的共同努力。     

Toward a Theory of Performance Reporting to Achieve Public Sector Accountability: A Field Study

Governments in many countries are implementing performance reporting systems. Many advocates claim that performance reporting results in accountability and effectiveness. There is no theory to justify these claims and guide implementation. This paper presents five field studies of five performance‐reporting systems to begin building theory. Four locations are optimistic; one is not. Mere adoption of performance reporting is not effective. Broad involvement across all government levels is important. Communication and integration with strategic planning and agency management are essential. Two theoretical streams, accounting in organized anarchies and the constitutive role of accounting, are useful theoretical bases.     

Innovation Agents in the Public Sector: Applying Champion and Promotor Theory to Explore Innovation in the Australian Public Service

Innovation is critical to organisational success and is a process steered, and potentially thwarted, by individuals. However, despite the importance of public sector innovation given the complexity of policy issues faced and the sector's specific contextual features, our understanding of innovation processes in government requires expansion. This study, using in‐depth case analyses of three Australian Public Service agencies, focuses on understanding the ‘human component’ of the innovation process by drawing on both innovation champion and promotor theories to explore, through the lens of organisational power, how multiple human agents progress public sector innovations. The results highlight the key, and often tandem, roles of individuals at multiple organisational levels who work to inspire and motivate others to progress an innovation (champions) and those with specific power bases who help overcome organisational barriers to innovation (promotors).     

Political Embeddedness of Public Pension Governance: An Event History Analysis of Discount Rate Changes

State governments are frequently said to manipulate the discount rate assumption to make pension funding look better, reduce employers' and employees' pension contributions, or relieve fiscal stress. Building a model from the political embeddedness perspective and applying an event history analysis to the 81 largest state‐administered pension plans in the United States, the authors found that more politically embedded pension boards were actually more likely to reduce their plan's discount rate. Public union coverage and government political ideology, however, had no significant impact on discount rate changes. These findings reveal the effect of political embeddedness on pension planning decisions and provide useful insights into the intricate process of setting pension discount rates in a new era of more muted investment return expectations. This article points to both political and financial pressures facing pension boards and state governments for many years to come.     

Internal and External Determinants of Formal Plans in the Nonprofit Sector

ABSTRACT

The study of formal planning in nonprofits and the public sector is thriving, with management gurus providing abundant advice on its value and proper execution. We address a related, but broader issue: why has the management tool of formal planning become prevalent in organizations with a public goal in the first place? To answer this question, we draw on insights from institutional theories of organization, bringing a fresh perspective to the increasingly common practice of formal planning in the administration of public entities. Using a unique dataset constructed from interviews with a random, representative sample of the leaders of 200 nonprofits in the San Francisco Bay Area, we analyze the factors associated with the presence of a formal plan. We combine the interview data with details on organizational characteristics from tax reports and consider the features of nonprofits that plan using logistic regression. The findings reveal that size and capacity are important, but links to an external, rationalized environment dampen the effects of both. Thus, functional factors, while important, are insufficient to explain why nonprofits engage in planning. For those interested in promoting formal planning as a management tool, our findings provide insight into other organizational features that promote the use of planning. And for those concerned with the potentially deleterious effects of this tool in the nonprofit sector, we show that certain types of organizations seem adept at maintaining a less formal structure.     

Public Sector Organizations and Reputation Management: Five Problems

ABSTRACT

This article discusses five problems that most public organizations will face when adopting a popular, yet largely unexplored management concept: reputation management. The inherently political nature of public organizations constrains their reputation management strategies. Furthermore, they have trouble connecting with their stakeholders on an emotional level, standing out as unique and differentiated organizations, communicating as coherent bodies, and maintaining excellent reputations. In this article, we examine in depth the nature of these problems and seek to contribute to a more nuanced understanding of the possibilities and limitations of reputation management in a public sector context.     

Rediscovering Implementation: Public Sector Contracting and Human Services

There is vast literature on how to implement public policies, with endless case studies emphasising a few key lessons. The drive to contracting in the public sector raises familiar threats to coherent program implementation, and adds those of control and incentives. Contracting fragments program responsibility among multiple contractors, and separates policy agencies from service delivery contractors. It raises questions about political control and accountability, and the prospect of gaps between intention and outcome. This paper 'rediscovers implementation' by reviewing the practical difficulties of constructing public-private relationships which can deliver quality human services. After considering broad arguments about the efficacy of contracting, the paper turns to the provision of human services by examining the contracting out of welfare services and the Job Network. Our argument is modest: that public sector contracting fails if the challenges of implementation are not addressed explicitly, since service delivery through the private sector can falter for exactly the same reasons as traditional public bureaucracies.     

Drug Testing in the Public Sector: An Interpretation Grounded in Rosenbloom's Competing-Perspectives Model

In the last few decades, drug testing has become a major policy issue in the workplace, with a host of actors competing to promote their own needs and interests. Employers, for example, seek ways to combat the use and abuse of illegal substances by employees. At the same time, unions and their employees legitimately seek to limit overly intrusive or unfair methods of testing. The courts have also been major players in the policy arena of drug testing, as witnessed by the surfeit of case law setting parameters around what is and is not legal and constitutional in terms of drug testing.
In an effort to move the drug-testing debate forward, this article examines the competing interests in drug testing, interests that ultimately frustrate the courts, policy makers, employees, and their unions from reaching a consensus on the use of drug tests in the public sector. To systematically examine this issue, Rosenbloom's competing-perspectives model of public administration is applied. The article concludes with policy recommendations for public managers.     

An Examination of the Public Good Externalities of Professional Athletic Venues: Justifications for Public Financing?

A review of the literature shows that stadiums and arenas are insignificant in terms of creating employment, engendering aggregate increases in local spending, and increasing per capita income levels. Public subsidies, then, may be better justified with reference to the nonpecuniary, public good externalities of professional athletic venues. This research examines whether the public good externalities of Baltimore's Oriole Park and Cleveland's Jacobs Field justify the use of taxpayer resources to finance such projects. This research finds that the public good externalities of Oriole Park and Jacobs Field are determinants of willingness to support the use of taxpayer resources to finance stadium projects.     

Economic Rationalism and Public Sector Ethics: Conflicts and Catalysts

Given recent focus on unethical activity and failings in corporate governance in the private sector, this paper briefly overviews the application of 'economic rationalism' in public administration and its impacts on the ethics of public sector decisions. It is argued that although 'unethical' decisions in public administration may be influenced by the economic imperatives embodied in 'economic rationalist' policies, it does not follow that the application of economic principles is necessarily inconsistent or injurious to ethical outcomes. In many instances the application of economic principles in public administration adds value by making existing ethical conflicts transparent and enabling more informed decisions.     

Traditions and Public Sector Reform: Comparing Britain and Denmark

A governmental tradition is a set of beliefs about the institutions and history of government. In this article I argue the Anglo-Saxon governmental tradition interprets public sector reform differently to the Rechtsstaat , participation tradition of Denmark, leading to different aims, measures and outcomes. In the Introduction, I define NPM arguing that is has become everything and is, therefore a meaningless term. I identify six dimensions to public sector reform: privatization, marketization, corporate management, regulation, decentralization and political control. In section 2, I describe the six dimensions of public sector reform in Britain and Denmark. In section 3, I explain the idea of a governmental tradition and argue the idea is essential to understanding the differences between Britain and Denmark. In section 4, I compare British and Danish governmental traditions, arguing the key differences lie in beliefs about the constitution, bureaucracy and state-civil society relations. Finally, I provide a summary explanation of the differences and argue that traditions not only shape the aims, measures and outcomes of public sector reform but also lead to different interpretations of reform and its dilemmas. In Britain, the key dilemma concerns central steering capacity. In Denmark, the main dilemma is democratic accountability.