CONTROL PATTERNS IN CONTRACTING‐OUT RELATIONSHIPS: IT MATTERS WHAT YOU DO,NOT WHO YOU ARE

The contracting‐out of public services has often been accompanied by a strong academic focus on the emergence of new governance forms, and a general neglect of the processes and practices through which contracted‐out services are controlled and monitored. To fill this gap, we draw on contracting‐out and inter‐organizational control literatures to explore the adoption of control mechanisms for public service provision at the municipal level and the variables that can explain their choice. Our results, based on a survey of Italian municipalities, show that in the presence of contracting‐out, market‐, hierarchy‐, and trust‐based controls display different intensities, can coexist, and are explained by different variables. Service characteristics are more effective in explaining market‐ and hierarchy‐based controls than relationship characteristics. Trust‐based controls are the most widespread, but cannot be explained by the variables traditionally identified in contracting‐out and inter‐organizational control studies.     

Developing New Forms of Partnership With the ‘Market’ in the Procurement of Public Services

This article provides a conceptual framework for understanding the key differences between newly emerging ‘market’ relationships and more traditional forms of procurement by public sector organizations. It highlights how multiple relationships between service clients in the public sector and other stakeholders mean that service clients may often co‐produce welfare changes in their communities in ways which professional and commercial providers cannot easily control and may not fully understand. It highlights the very different nature of collaborations which affect single commissioners and contractors (relational contracting), multiple commissioning bodies with a unified procurement policy (partnership procurement) and multiple commissioning bodies with diverse procurement policies empowered by a single purchasing body (distributed commissioning). The article suggests that traditional conceptions of the ‘market’ and of ‘market management’ are now outdated and need to be revised to take into account the potential of collaborative relationships between multiple stakeholders in the public domain.     

Co‐production as a route to employability: Lessons from services with lone parents

Policy‐makers claim to support personalized approaches to improving the employability of disadvantaged groups. Yet, in liberal welfare states, mainstream activation programmes targeting these groups often deliver standardized, low‐quality services. Such failures may be related to a governance and management regime that uses tightly defined contracting and performance targets to incentivize (mainly for‐profit) service providers to move people into any job as quickly as possible. This article draws on evidence from third sector/public sector‐led services in Scotland to discuss an alternative approach. These services co‐produced personalized support in partnership with disadvantaged service users (in this case vulnerable lone parents). We suggest that, in this case, street‐level co‐production and personalization were facilitated by co‐governance and co‐management in the design and organization of provision. We conclude by identifying lessons for future employability services.     

GOVERNMENT CALLING: PUBLIC SERVICE MOTIVATION AS AN ELEMENT IN SELECTING GOVERNMENT AS AN EMPLOYER OF CHOICE

The article assesses public service motivation as a possible influence in the attractiveness of government as an employer by embedding it into a person‐organization fit framework. First, a theoretical framework is developed and all relevant concepts are discussed. In addition, a set of hypotheses concerning the research question is developed. A sample of 1714 final year masters students demonstrates that the presence of public service motivation positively correlates with the preference for prospective public employers. For government organizations that display a high degree of publicness, the effect of public service motivation as a predictor for employer preference is stronger. Next to building a middle range theory on public service motivation, the article also reveals that public service motivation is present at a pre‐entry level.     

BETTER REGULATION IN EUROPE: BETWEEN PUBLIC MANAGEMENT AND REGULATORY REFORM

Can the European regulatory state be managed? The European Union (EU) and its member states have looked at better regulation as a possible answer to this difficult question. This emerging public policy presents challenges to scholars of public management and administrative reforms, but also opportunities. In this conceptual article, we start from the problems created by the value‐laden discourse used by policy‐makers in this area, and provide a definition and a framework that are suitable for empirical/explanatory research. We then show how public administration scholars could usefully bring better regulation into their research agendas. To be more specific, we situate better regulation in the context of the academic debates on the New Public Management, the political control of bureaucracies, evidence‐based policy, and the regulatory state in Europe.     

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.     

Analysis of Changes in External Accountability and Accounting in Privatized Industries: A Case Study of British Gas

This study investigates the consequences of regulation for organizational and accounting change in privatized industries by means of a case study of the gas industry, with particular emphasis on issues of accountability and the role of accounting information. The paper extends Stewart and Ranson's (1988) discussion of the distinctive conditions which apply to public and private sector organizations by highlighting an important interim phase in relation to privatized industries, where public service obligations coexist to varying degrees with private sector objectives. The extension of their framework of public and private sector models to include a new 'commercial' model provides the basis for an analytical framework encompassing the three cultures — that is, public service, commercial and competition — which is used to understand organizational change in the gas industry.     

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.     

From-Long Term To Short-Term Contracting

One can look at the arrival of New Public Management and the extensive public sector reforms inspired by this theory from many angles. Here we examine the shift from long-term contracting, typical of bureaucracy and traditional enterprises, to short-term contracting, borrowed from private sector governance methods. Short-term contracting has three principal uses in the governance of the public sector: (a) contracting with service providers after a tendering/bidding process; (b) contracting with the CEOs of the incorporated public enterprises; and (c) contracting with executive agencies about what they should deliver. Theoretical analysis, supported by substantial empirical evidence, suggests that short-term contracting eliminates the extensive post-contractual opportunism connected with long-term contracting, but is vulnerable to precontractual opportunism. Short-term contracting is not just another public sector reform fad, but constitutes a new tool for government which increases efficiency when handled with prudence.     

Unpacking value destruction at the intersection between public and private value

Public services do not always create value. Rather, when poorly organized and/or delivered, they can destroy value and make service users' lives worse. However, such “value destruction” is presently weakly conceptualized in public management theory. Consequently, this paper is devoted to the empirical examination of value destruction and hence its conceptualization. At the heart of the paper, we recognize the multiplicity of public value and private value objectives in complex public service environments and the dyadic tension between these two value constellations. Drawing upon qualitative data derived from public carbon reduction projects, we establish a conceptual framework. This framework accounts both for the types of value destruction and for the tension between public and private value. Subsequently, the framework disentangles the value destruction concept into four categories: value ignorance, value disproportion, value backlash, and value exploitation. Finally, the implications of this new conceptual framework for public management theory and practice are explored.     

CHANGE IN THE MANAGEMENT OF PUBLIC SERVICES

This article identifies the main themes in recent changes in public sector management and shows the extent of the challenge to past organizational assumptions. While recognizing the objectives of the changes could bring benefits if realized, it argues that there are a series of issues that are unresolved. The language of consumerism, the development of government by contracts, the form of performance management and the use of quasi-markets are seen as creating problems. These are seen as deriving from an attempt to apply approaches drawn from the private sector to the public domain. It is argued that they need to be balanced by approaches that recognize the values of the public sector.     

PUBLIC SERVICE VALUES: A NEW APPROACH TO THE STUDY OF MOTIVATION IN THE PUBLIC SPHERE

This article details an approach for empirically eliciting and examining public service values and their impact on decisions made by public servants. The approach involves adaptation of the Schwartz Portrait Values Questionnaire such that it: (1) elicits values relevant to an individual's public service role rather than broad personal values; and (2) incorporates values omitted by the Schwartz framework, including those identified by Jørgensen and Bozeman and others. To examine the impact of public service values on specific public management decisions, we use structured decision context statements similar to those proposed by Tetlock. We find that: (1) the adapted instrument maps favourably to the Schwartz personal value space; (2) the public service values space includes value sets that expand and refine the personal value space defined by Schwartz; and (3) the public service values elicited can be used to predict decisions made by respondents in specific public service decision contexts.     

DIFFUSION OF STANDARDS: THE IMPORTANCE OF SIZE,REGION AND EXTERNAL PRESSURES IN DIFFUSION PROCESSES

Organizational standards or guidelines, although commonly applied in public sector organizations, are rarely studied systematically. We report insights gained here into the circumstances present when organizations adopt standards by studying the diffusion of the Common Language Standard (CLS). Neo‐institutional organization theory constitutes the theoretical framework, which highlights the empirical phenomenon that standards occasionally spread extremely rapidly to some – but not all – organizations within the same field. Empirical evidence from quantitative surveys of civil servants and elected officials in Danish municipalities is used to analyse the field and organizational levels. The levels of external pressure and organizational resources are important in order to understand why some municipal organizations have adopted the CLS whereas others have not. We find that the initial source of the standard as well as regional pressure play a strong role, something which contradicts other studies indicating that diffusion from organization to organization is more significant.     

Multiple principals,multiple problems: Implications for effective governance and a research agenda for joint service delivery

The multiple principal problem refers to multiple collective action problems that organizations face when they must balance (competing) interests of multiple stakeholders under joint service delivery. It negatively affects different types of organization, yet we know little about how organizations (can) mitigate it. We expand a framework based on principal–agent theory, review the literature, and consider implications for effective governance of joint service delivery in the public sector. We observe that joint service delivery can lead to free‐riding and duplication in monitoring, lobbying by principals, and increased autonomy for agents, leading to inefficiency. We build a research agenda and tentatively suggest, based on the literature, that an interface approach, where an elected unitary actor is placed in a middle tier between politics and service delivery, might best mitigate the multiple principal problem, which is currently not dealt with effectively in public management.     

EXIT AND VOICE IN LOCAL GOVERNMENT RECONSIDERED: A ‘CHOICE REVOLUTION’?

Market‐based public management reform has introduced customer choice among competing providers of public services. Choice entails exit, an option which Albert Hirschman famously reserved for the market, while voice is the key mode of communication in political life. Based on elite and mass surveys, the article studies how exit is perceived by citizens and local political and administrative leaders in Norway and Sweden, and how the two strategic options relate to each other. Citizens are more positive towards customer choice and exit than are leaders, albeit with some variation across different public service sectors. Political and administrative leaders are positive towards customer choice models as a strategy to empower clients but more critical in terms of the potential loss of accountability and control that contracting out services may entail.     

ISSUE FRAMING AND SECTOR CHARACTER AS CRITICAL PARAMETERS FOR GOVERNMENT CONTRACTING‐OUT IN THE UK

This article shows that variations in how two UK governments justified contracting‐out (issue framing), combined with shifting sector‐derived incentives for union activism (sector character), can help explain the extent of contracting‐out. Janitorial service, an activity of the UK government that should have been ‘low hanging fruit' for its prolific reformers, proved difficult to contract‐out for Thatcher's New Right Conservatives, but easier to contract‐out for Blair's New Labour. The New Right government framed contracting‐out narrowly, as merely an improvement in operational efficiency, and its reform faced unions that stood to lose a great deal from movement of janitorial jobs to private firms. In contrast, the New Labour government framed contracting‐out broadly, as a means to efficient social justice, and faced unions with low stakes in government janitors. As a consequence, UK government units could expect lower benefit and higher cost from contracting‐out janitors under Thatcher than they would under Blair.     

Measuring Innovation – Applying the Literature-Based Innovation Output Indicator to Public Services

Governments have been encouraging public service organizations to innovate. However, little is known about the extent of innovation in public service organizations. A private sector approach to the measurement of innovation - the literature-based innovation output indicator (LBIOI) - is applied to public service organizations to address this significant information gap. The method is described and then explored in one public service sector, English housing associations. A sample of 257 innovations is constructed and then subject to analysis. This initial testing of the LBIOI indicates that the approach can be applied across public services to create longitudinal data sets, which will enhance the communication of good practice and the use of evidence in public policy, management and research. This methodology is demonstrated to offer initial insights to public service innovation and would allow relationships to be explored notably innovation and performance, a relationship central to government's promotion of innovation.     

Competition and Contracting in the Transition from CCT to Best Value: Towards a More Reflexive Regulation?

Following publication of the government’s proposals for a statutory framework of Best Value, and the introduction of regulations increasing the flexibility of CCT pending its abolition, this paper examines the relationship between the compulsory regime and its likely successor. First, the paper suggests that the Best Value frame-work is likely to impose a range of regulatory, monitoring and enforcement constraints similar in effect to the formal requirements that operate under CCT. Continuity with Conservative policy will be reinforced practically through transitional arrangements for the gradual abolition of CCT and the phased introduction of its replacement. Second, the paper argues that contracting is likely to continue to have a significant role under the new regime as the natural adjunct to the voluntary competitive processes that will be the preferred management tools for securing improvements in service performance. Open tendering and public-private sector partnership arrangements, both of which imply contractual governance, are given explicit priority in the consultation document over benchmarking, performance indicators and other comparative public management mechanisms. Third, the paper argues that local authorities are likely to want to retain and develop contracting arrangements that potentially permit a degree of control over service provision that might not be available were more radical service-providing alternatives to be adopted, involving the complete transfer of functions outside the public sector and/or their vesting in independent companies. Finally, the paper assesses the transition from CCT to Best Value from the theoretical perspective of responsive and reflexive regulation. Following a brief account of the reflexive failures of CCT, the paper argues that, although the Best Value framework is characterized by inherently reflexive processes involving self-review, consultation and standard-setting, its relative success is likely to depend ultimately both on the tightness with which legislation is drafted and on the manner of its practical interpretation, implementation and enforcement.     

The communicative policy maker revisited: public administration in a twenty-first century cultural-choice framework

In recent years, public administration thinking shifts the focus from the internal public organisation behaviour towards cross-boundary operation that is, operation across governments and sectors. Public bureaucrats become agents in a multiple-interest political environment within which not only technical management issues are discussed, but also dynamic public values are shaped through a dialogical process. In a cultural choice framework, governments operate different service portfolios and the source of allocation problems occurs due to interdependencies between these functions and variation in public preferences. Beyond service production costs, there exist variable characteristics, such as citizen interest, market competition, and managerial structure and operating behaviour in the aggregate responsibilities governments take. Progressive public administrators need to respond to a threefold challenge: The global versus local challenge to define cultural variability; the leadership challenge to interact with citizens; and the cross-boundary challenge to develop a collaborative rather than a competitive future.     

WOMEN’S MOVEMENTS AND NEW PUBLIC MANAGEMENT: HIGHER EDUCATION IN SWEDEN AND ENGLAND

This article considers change in academe in Sweden and England, focusing on gender equity and the new public management reforms. In drawing on social movement theory, it is argued that public sector agendas in these countries have been affected by the influences of their respective women’s movements as well as by the new public management. The article explores these developments through the experiences of a group of employees whose voices are heard infrequently in the literature, those in middle‐level academic positions in universities who are responsible for delivering change. It is argued that the rational, hierarchical, masculine discourses of the new public management offer challenges to women’s movement supporters, whose influences and responses are examined. It is contended that the use of social movement theory, as a vehicle through which to conceptualize change, offers a number of insights. These are: the contribution made to gender equity by women who are not self‐defined feminists or strongly committed to equal opportunities, known as femocrats; the contribution made by some supportive men to gender equity; and the potential for future collective opposition to the new public management from women’s movements.