THE PUBLIC MANAGEMENT CHALLENGES OF CONTRACTING WITH NONPROFITS for SOCIAL SERVICES

ABSTRACT

States and municipalities increasingly pursue privatization as a way to deliver public goods and services because of two expected outcomes, reduced costs and quality improvements. Several reasons are frequently cited for these anticipated benefits ranging from market competition to increased management flexibility and discretion to fewer rules and regulations. One policy area in which government has privatized many services through contracting with nonprofit organizations is social services. Contracted services are as diverse as providing shelters for the homeless, vocational education and job retraining, domestic violence services, refugee esettlement, child and elder abuse services, and food banks. A proliferation of public administration and nonprofit organizational scholarship has examined a range of issues associated with the government-nonprofit social service contracting relationship, not the least of which are topics related to management, measurement, and accountability. This article examines the public management challenges and implications of contracting with nonprofit organizations for the delivery of social services.     

PUBLIC SERVICE MODERNIZATION AND TRADE UNION REFORM: TOWARDS MANAGERIAL LED RENEWAL?

It is a curious feature of the debate about the UK Labour government’s modernization agenda that the consequences for trade unions have been almost wholly neglected. Focusing on a case study of UNISON, the public service trade union that is dominant in local government and health, this paper argues that UNISON has emulated key aspects of the modernization agenda, adopting a dual strategy to union renewal. It has attempted to rebuild workplace organization, but has placed strong emphasis on managerial‐led renewal, adopting many components of the target culture. These measures have created tensions within the organization that mirror some of the broader contradictions of the modernization agenda. The paper concludes by considering the implications of these findings for public service union renewal.     

THE PRACTICE OF CONTRACTING IN PUBLIC PRIVATE PARTNERSHIPS: TRANSACTION COSTS AND RELATIONAL CONTRACTING IN THE IRISH SCHOOLS SECTOR

This paper explores the practice of contracting in public private partnerships (PPP). Focusing on the first Irish PPP to provide secondary schools, it draws on perspectives from transaction cost economics and socio‐legal theory. It finds that the ex ante contractual setting was undermined by pushing forward with the PPP before conducting an adequate level of project appraisal. It explores the experiences of key stakeholders in the ex post contracting stage and concludes that the conduct of contracting practice was not characterized by the shift to relational contracting expected under PPP. Whereas this approach to contractual governance did not hinder the development of broadly trusting relations between the client and contractor, this was not manifest in terms of relations between the contractor and schools. A significant degree of conflict was evident in some schools‐contractor relations, something which can be attributed to sources of transaction costs, including incomplete information, bounded rationality and uncertainty.     

REMOVING THE CULTURAL AND MANAGERIAL BARRIERS IN PROJECT‐TO‐PROJECT LEARNING: A CASE FROM THE UK PUBLIC SECTOR

Project‐based initiatives form a major part of government investment and, so, learning from past projects should be a major concern for public sector organizations. Previous research has explored systems and processes for project‐based learning but little research has examined the social and cultural factors that enable this learning to be applied with useful effect. This paper reports on two successive major UK government projects. The introduction of independent learning accounts (ILAs) and the subsequent introduction of educational maintenance allowances (EMAs) following the scrapping of the former. Although similar in many respects, the first was a major failure while the second, having learned the lessons of the first, was acclaimed as a success. Using a cultural analysis, this case study shows how project‐to‐project learning enabled the EMA project team to learn from the failed project. This resulted in two significant changes in government and civil service organizational culture.     

TRANSFORMING PUBLIC SERVICES: CONTRACTING FOR SOCIAL AND HEALTH SERVICES IN THE US

Government contracting with private service organizations has grown rapidly in the United States in the last 25 years. Advocates of contracting hope that it will spur competition among service agencies, lowering costs and improving service quality. In practice, however, contracting departs significantly from this competitive model. Instead, government and private agencies develop long-term relationships which can be considered regimes governed by specific norms and expectations. These regimes profoundly influence the delivery of services and the politics of contracting. This article analyses these regimes in the context of the contested nature of public authority. The article concludes with suggestions for reforming public policy to improve the performance and effectiveness of contracted services.     

PUBLIC VALUE CREATION BY CROSS‐SECTOR COLLABORATIONS: A FRAMEWORK AND CHALLENGES OF ASSESSMENT

This article proposes ways to assess the public value that cross‐sector collaborations produce. It introduces a framework featuring three dimensions of public value – democratic accountability, procedural legitimacy, and substantive outcomes – that reflect distinct priorities and concerns for public administration. Utilizing examples from research on a multi‐year cross‐sector collaboration in the transportation field, we illustrate the framework's application and identify techniques and challenges for assessing the collaborative creation of public value. The article concludes with questions and propositions to guide future research.     

CHANGES IN PUBLIC SERVICE BARGAINS: MINISTERS AND CIVIL SERVANTS IN DENMARK

The concept of public service bargain (PSB) has been reintroduced in recent times to the study of public administration to analyse the division of roles between ministers and the civil service in the context of public service reforms ( Hood 2000, 2001, 2002 ; Hood and Lodge 2006 ). The empirical investigation of the concept of PSB in general and changes in PSBs in particular is, however, limited. This article addresses this limitation by investigating what causes changes in public service bargains, particularly with respect to the provision of advice. As argued by Hood, we demonstrate how changes in PSBs can be explained by a combination of changes in the environments of ministries as well as the interests of the political actors. Furthermore, we point to the professional qualifications of civil servants as well as their interests as causes of change which, until now, have not received sufficient attention in the PSB literature. The article is based on a longitudinal case study of PSB between ministers and the permanent civil service in Denmark.     

NEW PUBLIC MANAGEMENT IN PUBLIC SECTOR ORGANIZATIONS: THE DARK SIDES OF MANAGERIALISTIC ‘ENLIGHTENMENT’

For many years the proponents of New Public Management (NPM) have promised to improve public services by making public sector organizations much more ‘business‐like’. There have been many investigations and empirical studies about the nature of NPM as well as its impact on organizations. However, most of these studies concentrate only on some elements of NPM and provide interesting, but often anecdotal, evidence and insights. Perhaps exactly because of the large amount of extremely revealing and telling empirical studies, there is, therefore, a lack of a systematic identification and understanding of the nature of NPM and its overall relevance. This paper contributes to a systematic identification and understanding of the concept of NPM as well as its multi‐dimensional impact on public sector organizations. First, the paper aims at (re‐) constructing a comprehensive taxonomy of NPM's main assumptions and core elements. Secondly, the paper tries to provide a more comprehensive and meta‐analytical analysis of primarily the negative consequences of NPM‐strategies for public sector organizations as well as the people working in them.     

THE IMPACT OF PUBLIC SERVICE MOTIVES ON WORK OUTCOMES IN AUSTRALIA: A COMPARATIVE MULTI‐DIMENSIONAL ANALYSIS

There is a general consensus that individuals who are driven to serve the public interest can possess a mix of public service motives for engaging in altruistic actions. This article proposes that when analysed simultaneously, some public service motives may play a more important role than others in influencing work outcomes. The pressing questions are which ones and how? Through a survey of a group of Australian public sector employees, this article explores the relationship between the various dimensions of public service motivation (PSM) and the common work outcomes: organizational commitment, job satisfaction and job motivation. The combinations of PSM dimensions that had a greater impact on these work outcomes are also found to vary with different outcomes.     

PUBLIC MANAGEMENT AND POLITICS: SENIOR BUREAUCRATS IN FRANCE

Why is new public management reform so difficult to implement in France? In order to answer this question, this article examines the changes that have affected the higher civil service since the late 1970s. Decision‐making networks have been considerably politicized, and public policies are now largely devised by ministerial cabinets staffs. Simultaneously, the tasks of career senior civil servants are increasingly technical and specialized. The management reforms undertaken since 2002 by an economically liberal government might have offered senior bureaucrats the opportunity to regain a more active professional role, but the reforms run counter to their political culture, since the large majority of them still share a leftwing political ideology. Reformers seem to have no other choice than to change the institutional system in order to resolve this contradiction.     

‘LEADERISM’: AN EVOLUTION OF MANAGERIALISM IN UK PUBLIC SERVICE REFORM

This paper argues that ‘leaderism’– as an emerging set of beliefs that frames and justifies certain innovatory changes in contemporary organizational and managerial practice – is a development of managerialism that has been utilized and applied within the policy discourse of public service reform in the UK. The paper suggests that ‘leaderism’ is an evolution of entrepreneurial and cultural management ideologies and practices. An analysis of the articulation of leaderism with public service reform in the UK is presented. The paper problematizes the construals of leadership contained within these texts and reflects on their promotion of leadership as a social and organizational technology. ‘Leaderism’ is argued to be a complementary set of discourses, metaphors and practices to those of managerialism, which is being utilized in support of the evolution of NPM and new public governance approaches in the re‐orientation of the public services towards the consumer‐citizen.