Building Support? The Importance of Verbal Rewards for Employee Perceptions of Governance Initiatives

The relationship between managers’ use of rewards and employees’ motivation is controversial, but recent research suggests that employee perceptions of governance initiatives can help us understand the association. Experimental evidence further emphasizes the difference between verbal and material rewards, and this study therefore analyzes real-world public managers’ use of these different rewards and their employees’ perceptions of a governance initiative. This enables us to shed light on a mechanism through which rewards can be connected to motivation. Can rewards contribute to a supportive perception of governance initiatives and potentially crowd-in motivation? This is analyzed in a multi-level dataset with 82 Danish school principals and their 1,273 employees. Managers’ use of contingent verbal rewards is positively associated with employees’ perceptions of the relevant governance initiative, while the corresponding association between material rewards and employee perceptions is weak and statistically insignificant when controlling for other types of managerial behavior. Although the findings need to be tested in an experimental design, they suggest that verbal rewards are a promising tool for public managers.     

Managing Employee Motivation: Exploring the Connections Between Managers’ Enforcement Actions,Employee Perceptions,and Employee Intrinsic Motivation

A number of studies show that the use of external interventions such as command systems and economic incentives can decrease employee intrinsic motivation. Our knowledge of why the size of “the hidden cost of rewards” differs among organizations is, however, still sparse. In this article, we analyze whether local managers—the primary enforcers of external interventions—affect how employees perceive a command system and thereby affect employee intrinsic motivation. Using a multilevel dataset of 1,190 teachers and 32 school principals, we test whether principals’ use of “hard,” “mixed,” or “soft” actions to enforce a command system (obligatory teacher-produced student plans) is associated with teacher intrinsic motivation. Results show that teachers experiencing “hard” enforcement actions have lower intrinsic motivation than teachers experiencing “soft” enforcement actions. As expected by motivation crowding theory, part of this association is mediated by teachers’ student plan requirement perception. These findings support the motivation crowding argument that employee intrinsic motivation depend on the employees’ need for self-determination.     

How Should We Estimate the Performance Effect of Management? Comparing Impacts of Public Managers’ and Frontline Employees’ Perceptions of Management

Many areas of public management research are dominated by a top-focused perspective in which emphasis is placed on the notion that managers themselves are usually the best sources of information about managerial behavior. Outside of the leadership literature, managers are also the typical survey respondents in public management studies. An alternative perspective on management can be provided by subordinates’ perceptions of what management is doing. Surveys of subordinates and of managers each pose potential advantages and potential disadvantages when it comes to measuring management, and each approach is likely to prove more fruitful for measuring certain management functions. Using a unique data set of parallel surveys on management with managers and their subordinates as respondents, we examine the differences and relationships between Danish school managers’ and teachers’ perceptions of management functions and the implications of such relationships for organizational performance. We find a surprisingly low correlation between manager and teacher responses regarding the same management functions. Teacher responses are better predictors of student performance for management aspects that are visible to and mediated by teachers. However, manager responses better predict performance for manager expectations that are less visible to employees.     

Intensifying Social Exchange Relationships in Public Organizations: Evidence from a Randomized Field Experiment

In accordance with social exchange theory, prominent streams of management research emphasize the importance of reciprocal exchange relationships between organizations and their employees. When employees perceive themselves as supported by the organization, they reciprocate with increased work motivation. However, we do not know how this knowledge can be developed into management initiatives that increase public employees’ perceived support, because severe endogeneity problems make it difficult to estimate the effect of organizational support on employee commitment outside the laboratory. We use a randomized field experiment involving more than 800 public employees to estimate the effect. We find no average effect of the organizational support treatment on the employees’ perceived organizational support. Yet, a subgroup analysis shows a positive treatment effect when the employees’ local front‐line managers felt less supported prior to the intervention. We discuss the implications for theory and management practice. ©2012 by the Association for Public Policy Analysis and Management.     

Public Employees’ Perceived Promotion Channels in Local China: Merit‐based or Guanxi‐orientated?

Do performance or personal ties (guanxi) matter more in the promotion of local public employees in China? In this paper, we examine public employees’ perceptions of the roles played by merit and guanxi in promotion. We adopt a configurational approach to classify public employees’ perceptions of the reasons for their promotion into four groups: merit‐based, guanxi‐orientated, ambidextrous (both), and fatalistic (neither). A recent survey of 886 public employees shows that around 40% see promotion as merit‐based and 20% as guanxi‐orientated, with 10% perceiving promotion to be ambidextrous and 30% fatalistic. Younger employees with higher rank are more likely to perceive promotion to be merit‐based, whilst highly educated and highly ranked employees with strong public service motivation are more prone to see promotion as ambidextrous. Those who perceive promotion to be ambidextrous are more satisfied with promotion fairness, suggesting that a subtle balance needs to be maintained between merit‐based and guanxi‐orientated promotion channels, rather than rejection of any guanxi element.     

Political Control and Managerial Survival in State‐Owned Enterprises

This article explores the impact of political determinants on the survival of managers in state‐owned enterprises (SOEs). Drawing on theories of bureaucratic delegation, it is argued that preference divergence between principals and agents as well as among principals is a major driver of managerial turnover. More specifically, the partisan affiliation of SOE‐managers with the government, the opposition, or individual ministers can serve to explain the length of their tenure. The analysis employs Cox proportional hazard regressions to test these hypotheses on an original data set of 1,671 managers serving in 87 public corporations in Austria between 1995 and 2010, thus presenting one of the first large‐n analyses of political appointments in a parliamentary system. The results strongly support the proposition that partisan affiliation drives managerial survival.     

So Hard to Say Goodbye? Turnover Intention among U.S. Federal Employees

Why do U.S. federal government employees choose to leave the federal service? By focusing on turnover intentions, this article develops propositions about why employees anticipate leaving their jobs along three dimensions: (1) demographic factors, (2) workplace satisfaction factors, and (3) organizational/relational factors. Two distinct measures of turnover intention are advanced that reflect those who intend to leave their agency for another position within the federal government and those who intend to leave the federal government for an outside position. The 2006 Federal Human Capital Survey is used to test the impacts of three clusters of independent variables on these measures of turnover intention. The findings suggest that overall job satisfaction and age affect turnover consistently. Practical recommendations are outlined for public managers seeking to boost employee retention.     

Do Australian public sector employees have the type of culture they want in the era of new public management?

New public management theory proposes that public sector organisations should be managed more like private sector organisations. It is therefore expected that public sector managers will have preferences for an organisational culture that will reflect the culture of private sector organisations, with an external rather than internal orientation. The current research investigated the idea that managers' perceptions of ideal organisational culture would be different to the bureaucratic model of culture (internally oriented), which has traditionally been associated with public sector organisations. Responses to a competing values culture inventory were received from 925 public sector employees. Results indicated that the bureaucratic model is still pervasive; however, managers prefer a culture that is more external, and less control focussed, as expected. Lower level employees expressed a desire for a culture that emphasised human relations values.     

Organizational Pathology Compared to What? Impacts of Job Characteristics and Career Trajectory on Perceptions of Organizational Red Tape

Early studies of organizational red tape emphasized that worker perceptions of organizational rules and procedures are dependent on workers’ frames of reference. However, most prior studies do not account sufficiently for how and why these reference points vary across employees, even if they work within the same or similar organizational contexts. While the effects of contemporaneous employee attitudes on perceptions of red tape have been considered in prior analyses, how do perceptions of organizational rules and procedures as red tape relate to workers’ prior career trajectories and occupational contexts? Variable norms and expectations across organizations as well as across the public and private sectors may produce different attitudes toward rules and procedures. Of equal import, current occupational characteristics are relatively unexamined in studies of worker perceptions of red tape. Using a survey of state level public managers, this paper examines how employees’ perceptions of red tape are mediated by their prior career trajectories and experiences, as well as by their occupational context. Implications for theory and practice are discussed.     

Performance and Management in the Public Sector: Testing a Model of Relative Risk Aversion

Research has demonstrated that management influences the performance of public organizations, but almost no research has explored how the success or failure of a public organization influences the decisions of those who manage it. Arguing that many decisions by public managers are analogous to risky choice, the authors use a well‐validated model of relative risk aversion to understand how such choices are influenced by managers’ perceptions of organizational performance. They theorize that managers will be less likely to encourage innovation or give discretion to employees when they are just reaching their goals relative to other performance conditions. Analyses of responses to the 2011 and 2013 Federal Employee Viewpoint Surveys provide considerable support for these assertions. The findings have significant implications for our understanding of the relationship between management and performance in public organizations.     

The Effect of Problem Severity,Managerial and Organizational Capacity,and Agency Structure on Intergovernmental Collaboration: Evidence from Local Emergency Management

Like most public managers nowadays, local emergency managers operate within complex, uncertain environments. Rapid changes in the scope and severity of the issues increase the extent of intergovernmental collaboration necessary to address such challenges. Using a large data set of county emergency management agency directors, variations in intergovernmental collaboration reflect influences from problem severity, managerial capacity, and structural factors. The results demonstrate that public managers who perceive problems as severe, possess specific managerial skills, lead high‐capacity organizations, and operate in less complex agency structures collaborate more often and more effectively across governmental boundaries.     

Is Leadership in the Eye of the Beholder? A Study of Intended and Perceived Leadership Practices and Organizational Performance

Leadership is a matter of both intentions and perceptions, which do not necessarily always match. Because employees’ motivation and commitment are only affected by leadership if they notice it, employee‐perceived leadership is expected to have a stronger correlation with organizational performance than leader‐intended leadership. This expectation is tested for transformational and transactional leadership, as both types of practices are expected to increase performance. Using a sample of 1,621 teachers and 79 Danish high school principals, the authors find that leader‐intended and employee‐perceived transformational and transactional leadership are only weakly correlated and that only employee‐perceived leadership practices (both transformational and transactional) are significantly related to objectively measured school performance. The results show that it is important to distinguish between intended and perceived leadership and that leaders should be aware of how their practices are perceived.     

The effect of stakeholder culture on managers’ perceptions of stakeholder attributes in Australian not-for-profit organizations

We examine the relation between stakeholder culture and managers’ perceptions of stakeholder attributes of power, legitimacy, and urgency in Australian not-for-profit (NFP) organizations. Examination of this relation is important because managers’ perceptions of stakeholder attributes determine how stakeholder relationships are managed, which affects (positively or negatively) the ability of NFP organizations to fulfil their social mission. Data were collected through a survey of top managers of 478 NFP organizations. Our results show that the stakeholder cultures of altruist and instrumentalist, manifesting different moral values, differentially affect NFP managers’ perceptions of the three stakeholder attributes for clients and government. Specifically, an altruist stakeholder culture affects managers’ perception of client legitimacy, while an instrumentalist culture affects managers’ perception of government power. We also investigate the mediating effects of power and legitimacy on the relation between stakeholder cultures and urgency. We find that managers’ perceptions of power and legitimacy act as crucial cues for managers to perceive stakeholder urgency. Our study contributes to the stakeholder management literature and has important implications for managers of NFP organizations in managing stakeholder relationships in the contemporary environment.     

Gender Congruence and Work Effort in Manager–Employee Relationships

This article uses data on public school teachers and principals to examine whether teachers who share the gender of their principal work more overtime hours than teachers who do not. Findings show that gender congruence is associated with overtime hours for female teachers but not for male teachers. This result holds between schools and within schools: female teachers with female principals work more overtime hours than female teachers with male principals, and female teachers with female principals work more overtime hours than male teachers who work in the same school, for the same female principal. In light of multiple competing explanations for this finding, the author explores why gender congruence matters for female teachers but not for male teachers.

Practitioner Points

• Female teachers with female principals work more overtime hours than female teachers with male principals.
• Female teachers with female principals work more overtime hours than male teachers who work in the same schools, for the same female principals.
• Gender congruence is not associated with overtime hours among male teachers.
• Female teachers’ overtime hours are associated with female principals’ overtime hours, suggesting that female teachers emulate female principals’ work behavior.

     

Zone of Acceptance under Performance Measurement: Does Performance Information Affect Employee Acceptance of Management Authority?

Public sector employees have traditionally enjoyed substantial influence and bargaining power in organizational decision making, but few studies have investigated the formation of employee acceptance of management authority. Drawing on the “romance of leadership” perspective, the authors argue that performance information shapes employee attributions of leader quality and perceptions of a need for change in ways that affect their acceptance of management authority, conceptualized using Simon's notion of a “zone of acceptance.” A survey experiment was conducted among 1,740 teachers, randomly assigning true performance information about each respondent's own school. When employees were exposed to signals showing low or high performance, their acceptance of management authority increased, whereas average performance signals reduced employee acceptance of management authority. The findings suggest that performance measurement can alter public sector authority relations and have implications regarding how public managers can use performance information strategically to gain acceptance of management authority and organizational change.     

The role of authentic leadership on healthcare Street-Level Bureaucrats’ well-being during the pandemic

This study uses Conservation of Resources Theory, to explain Street-Level Bureaucrats’ (SLBs) workplace behavioural responses to threats to their well-being. We examine whether authentic leadership within street-level organisations positively impacts employee well-being by increasing SLBs’ perception of personal resources, and reducing their perceptions of work harassment. The research design comprises a survey that solicited quantitative and qualitative data from 163 healthcare SLBs working in Australian hospitals during the pandemic in April 2020. Analysis of the means indicates low levels of satisfaction with leadership and low levels of well-being for SLBs. The structural equation modelling findings show that poor leadership is associated with higher levels of work harassment and lower levels of employee well-being. Qualitative data support these findings. As healthcare workers were already listed as over-represented in the stress-related workers compensation statistics, one strategy may be to improve the level of organisational support by upskilling managers in authentic leadership behaviours with the aim of increasing their perception of support so as to increase employee well-being. This will benefit employees and their families, and the community they service.

Points for practitioners

• Street-Level Bureaucrats (SLBs) have been increasingly experiencing the public sector gap (demand outstripping supply of resources) because of the dominance of the austerity-driven managerialist paradigm.
• The recent COVID-19 crisis amplified the severity and impact of the public sector gap causing increased perceptions of work harassment and reductions in SLBs’ well-being.
• However, SLBs with high levels of Psychological Capital had a natural buffer in place to protect their well-being, and as such, they perceived less work harassment and erosion of their well-being.
• The way forward is to complement the austerity-driven managerialist paradigm in management decision-making with authentic leadership behaviours focused on maximising the well-being of SLBs and the public.

     

Teacher Skill Development: Evidence from Performance Ratings by Principals

We examine the dynamic nature of teacher skill development using panel data on principals’ subjective performance ratings of teachers. Past research on teacher productivity improvement has focused primarily on one important but narrow measure of performance: teachers’ value-added to student achievement on standardized tests. Unlike value-added, subjective performance ratings provide detailed information about specific skill dimensions and are available for teachers in non-tested grades and subjects. Using a within-teacher returns-to-experience framework, we find, on average, large and rapid improvements in teachers’ instructional practices throughout their first 10 years on the job as well as substantial differences in improvement rates across individual teachers. We also document that subjective performance ratings contain important information about teacher effectiveness. In the district we study, principals appear to differentiate teacher performance throughout the full distribution instead of just in the tails. Furthermore, prior performance ratings and gains in these ratings provide additional information about teachers’ ability to improve test scores that is not captured by prior value-added scores. Taken together, our study provides new insights on teacher performance improvement and variation in teacher development across instructional skills and individual teachers.     

Advice Networks in Public Organizations: The Role of Structure,Internal Competition,and Individual Attributes

Interpersonal networks are increasingly important for organizational learning and performance. However, little is known about how these networks emerge. In this article, exponential random graph models are employed to explore the underlying processes of advice network formation in 15 organizations. The author examines the influence of (1) structural effects (reciprocity, transitivity, multiplexity), (2) actor attribute effects (job function, tenure, education, self‐efficacy), and (3) peer competition. Results suggest that employees rely more on reciprocity, closure, and similarity in job function than on peer expertise or status when seeking advice. In addition, employees who perceive greater levels of competition with peers are significantly less likely to both seek and provide advice. As public organizations look to private sector strategies that promote internal competition to improve efficiency and accountability, public managers need to be aware of the negative implications those strategies can have on interpersonal networks and organizational learning.     

Red Tape: Developing and Validating a New Job‐Centered Measure

Red tape studies typically focus on burdensome rules that have negative effects on organizations, as perceived by managers. The one‐item general red tape scale is representative of this approach. However, scholars have called for improved measures that address the scale's shortcomings. This article introduces a new measurement scale that features (1) red tape as a two‐dimensional construct that includes compliance burden and lack of functionality and (2) a job‐centered approach that measures red tape as experienced by employees in their jobs rather than more generally in the organization. A set of survey questions derived from interviews with government employees was validated using data from 1,203 government employees. The findings indicate that the two‐dimensional job‐centered red tape scale is reliable and valid. The authors conclude that this measure can improve research and be used by managers for a “quick scan” to detect the location and severity of red tape.     

Marching to Different Drummers? The Performance Effects of Alignment between Political and Managerial Perceptions of Performance Management

The relationship between politicians and bureaucrats is central to the administration of modern democratic societies, yet it often is neglected in studies of the performance of public organizations. In this article, the authors examine the performance effects of alignment between politicians’ and senior managers’ perceptions of one of the more pervasive public management reforms over recent decades: performance management. Evidence from a panel of English local governments supports the hypothesis that alignment of views between politicians and senior managers on performance management is associated with better organizational performance. Furthermore, this relationship is strengthened in organizations that display higher levels of role flexibility by managers and greater trust between politicians and managers.