Competitive Tendering and Contracting in the Australian Public Sector

The Hilmer reforms, and recent reports from the Industry Commission, advocate a significant shift toward competitive tendering for Australian public services. This article discusses the policy debate in the light of recent developments in the economic theory of contracts.
It will be argued that, although more intense competition can, on some occasions, generate apparent efficiency gains, it can also generate efficiency losses. Following Stigler, it will be argued that the general tendency for competition to generate cost reductions may be explained in terms of increased work intensity, and does not therefore involve a net social welfare gain. Such issues will be examined in relation to the Industry Commission (1995b) draft report on Competitive Tendering and Contracting by Public Sector Agencies, with particular attention to the issue of net social welfare benefits of contracting out. It is suggested that the Industry Commission estimates of efficiency gains available through contracting out are based on an incomplete sample, ignore the social transfer implied in reducing costs and are unlikely to hold for many sections of the public sector.     

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.     

Leadership and Meaningful Work in the Public Sector

There have been many important studies on leadership in the public administration discipline; however, scholarly inquiry still lags behind related disciplines such as psychology and business administration. This article helps fill that gap by analyzing the role that public leaders play in making work more meaningful for their employees, which, in turn, has a positive influence on employee job outcomes. Specifically, the authors analyze the mediating role of work meaningfulness in the relationships between leader‐member exchange and organizational commitment, work effort, and work‐to‐family enrichment. Samples from education, health care, and local government are used. Results show that leadership strongly influences work meaningfulness, which, in turn, influences job outcomes. In addition, the impact and extent of leadership and work meaningfulness are higher in health care and education than in local government. The results emphasize the importance of leadership and meaningful work in the public sector.     

Centrelink – Viewed from the Community Sector

The government's introduction of a new service delivery agency, Centrelink, to deliver a range of programs including income support has been heralded as a major step forward in government service provision. Certainly no one would dispute that an improved level of service delivery can have major benefits for many low-income and disadvantaged people. However, it is becoming more apparent that there are tensions between the strong emphasis being placed on improving customer services and a social security system predicated on rights and entitlements under legislation. In a system where the former takes priority, the satisfaction of numerous customers with relatively uncomplicated situations may well be considered a more valuable outcome than the satisfaction of one person with a very complex situation that may require a high input of resources. When dealing with a 'service' such as income support – where people's access to assistance can make a fundamental difference to their ability to live decently – it is imperative that great care is taken before managerial and administrative models, such as a 'purchaser-provider split', are imported from other sectors. This article will explore these issues from the perspective of the community sector, particularly those who assist and advocate on behalf of low-income and disadvantaged people.     

Japan: The Prospects for Public Sector Change

There have been some public sector changes in Japan, especially since 1981. The changes have contributed to the country's outstanding economic development. Recent events, however, question whether these changes have been sufficient and whether the sector is meeting the needs of Japanese society today.
Many of Japan's political, economic and social certainties disappeared in the 1990s including automatic economic growth and the 38 year reign of the conservative Liberal Democratic Party government. These developments and events such as the Kobe earthquake, the HIV blood contamination scandal and the collapse of financial institutions suggest that a more fundamental reform of the public sector is still required.     

Public Sector Governance — Future Issues for Australia

Governments in many countries today find themselves in unchartered waters as they attempt to redefine their role, including how they relate to the business and community sectors and to citizens more broadly. There is currently a serious questioning of what are the appropriate structures, institutions, processes and organisational relationships required in an environment placing much more emphasis on collaboration with partners within the public sector and also outside it. Globalisation and the increased importance placed on competition, increased use and variety of information technologies and changes in values and political beliefs have contributed to this new environment (for example, see Davis and Keating 2000; Edwards 2001). Alongside this, and particularly noticeable in Australia, is a public sector facing uncertainties as it attempts to adopt private sector governance practices in the belief that this will lead to greater efficiency in achieving outcomes.     

The Future of Public Sector Pensions

The dramatic rise in life expectancy and longer retirement has created serious concerns about the long‐term affordability of public sector pensions. Drawing on insights from a recent inquiry into public sector pension reform, commissioned by the Conservative–Liberal Democrat Coalition and led by the author, this article outlines the challenge faced by policy makers and sets out how it should be addressed. It argues that, with 12 million people active in this part of the pensions system, and estimates that the gap between contributions and payments will grow from £3bn to £10bn in the next decade, the government has no choice but to enter the ‘lions’ den’ of pensions’ policy. It contends that any long‐term solution is to be crafted cannot be based solely on economics, but must also answer fundamental questions of ethics and equity.     

Rethinking Leadership for the Public Sector

Leadership and management are best thought of as a matter of competencies. Or are they? The paper challenges the current orthodoxy in Australia on this question, and suggests that leadership and management need to be regarded as reflecting opposing values. The paper also distinguishes between charismatic and collective forms of leadership, and proposes the latter as likely to be of greater value in a public sector context. A challenge for public sector organisations is how to strike and maintain a suitable balance between management for ongoing operations and leadership for deep–reaching change. Strategies for developing collective leadership capability are suggested.     

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.     

Governance Issues for Public Sector Boards

The push to apply corporate governance arrangements from the private sector into the public sector is a manifestation of the ongoing search for ways to improve accountability and performance. This small interview study reports on the experience of senior Commonwealth public servants and board directors trying to work within the corporate governance frameworks set out in the Commonwealth Authorities and Companies Act (1997) and the Financial Management and Accountability Act (1997). It suggests that lines of accountability can be blurred, formal authority can be subverted, and safeguards to protect the public interest, against harms such as political patronage, may be weak or absent. Many agencies do not have appropriate procedures for assessing their own governance arrangements. There is considerable resistance to the notion that a central authority should be established with the dedicated purpose of overseeing governance arrangements and practices in the Commonwealth.     

The Changing Face of Public Sector Employment

While it is easy, and almost a national sport, to criticise the traditional model of public sector employment as being too generous, there is a rationale for its distinctiveness. The career service model that endured for most of the last century was aligned to the bureaucratic form of public administration of that time. As public administration was 'transformed' into public sector management through the importing of private sector techniques, so too has public sector employment been varied in pursuit of greater efficiency, flexibility and responsiveness.     

The Australian Public Sector and New Governance

The AJPA resumed publishing the Administrative Chronicle in 1996. Each year the editors invite a distinguished writer to contribute an administrative essay reviewing developments in the previous year. They are asked to examine trends and topics of major importance rather than simply providing a chronology of events. In inviting contributors the editors have attempted to incorporate different views across Australia. Previous chronicles have included J Stewart (55)1; S Prasser (56)1 and J Homeshaw (57)3.     

Mayoral Public Sector Work Experience and Tax Collection Performance in Colombian Local Governments

ABSTRACT

Local governments in Latin America tend to have limited capacity to collect taxes. Existing theory explains tax collection performance as a function of political, socio-economic, and cultural factors. Yet across Latin America, tax collection performance varies greatly between localities that are similar along these dimensions. We suggest that organizational capacity, represented by managers' human capital, explains variation in local tax collection performance. We test this theoretical idea against panel data on most Colombian local governments, where elected mayors are the top managers determining the local tax collection strategy. We examine two indicators of tax collection performance: (1) the per-capita amount of property tax collected and (2) property tax collected as a percentage of total property valuation. Controlling for important confounders, the length of the mayor's prior public sector work experience is positively associated with the per-capita amount of property tax collected but not the percentage of total property valuation collected in property tax. Our results suggest that Colombian mayors gain relevant skills over their career. Our study has implications for other developing countries with a similar property tax collection system.     

Unionization and Work Attitudes: How Union Commitment Influences Public Sector Job Satisfaction

This article explores whether union commitment dampens public sector job satisfaction. By examining the connection between union commitment and two workplace attributes that are presumed to be more prevalent in public sector workplaces—perceptions of higher red tape and greater public service motivation—this article develops three hypotheses exploring the direct and indirect relationships between union commitment and public sector job satisfaction. The findings from a series of structural equation models indicate that union commitment directly increases members’ job satisfaction, but it more prominently increases members’ job satisfaction indirectly by reducing perceived red tape and enhancing public service motivation.     

Curriculum Development for Public Sector Financial Management

Inadequate curriculum materials frequently impede the teaching of public sector financial management to graduate and mid-career students. The Curriculum Development Project at the School of Public Affairs of the University of Maryland has produced a draft curriculum that emphasizes the use of microcomputers and associated analytical skills in integrating topics in finance, accounting and budgeting.     

The Directions of Constitutional Change: Implications for the Public Sector

Constitutional change is in the air and this applies to the constitutional system, not just the documents that we call the Commonwealth and state constitutions in Australia. The causes of change are multitudinous but two warrant special mention: (a) natural or endemic change in the economy and society at large, and (b) political causes.     

Cynicism about Change,Work Engagement,and Job Satisfaction of Public Sector Nurses

This paper uses the job demands‐resources theory to examine the consequences of changes on nursing work. Data were collected from 220 public sector nurses in Australia to test the model. We conducted a two‐wave data collection process where independent variables (organisational change, workload, job control, nursing administrative stressors, cynicism about organisational change, and demographic variables) were collected in Time 1. The dependent variables (nursing work engagement and job satisfaction) were collected 6 months later. Changes to nursing work were found to cause high workload and an increase of administrative stressors that leads to an increase in nurses’ change cynicism. Job control was needed to cope with the increase in workload and reduction in cynicism about change. Cynicism about organisational change was found to have a direct negative effect on nurses’ engagement which in turn was found to negatively impact job satisfaction. Our contribution to theory and practice arises from the discovery that the connections between organisational change, work environment variables, and job outcomes of nurses are more complicated than previous research suggests. Theoretical and practical implications will be discussed.