Contracting Out Local Government Services to Private Agents: An Analysis of Contract Design and Service Delivery Performance in Ghana

Contracting out is generally justified on the principle that as governments contract out part of their responsibilities in service provision to private agents, they harness the power of market competition which leads to efficiency in service provision. In working with private contractors, local governments (LGs) face problems related to agent opportunism, while agents also face risks such as dereliction of payment responsibility by LGs for services delivered. The literature shows that these problems are addressed through a web of contractual arrangements. Using agency theory, this study investigates the relationship between contract design and quality of services delivery in three Ghanaian cities (Accra, Kumasi and Tema). The study found a surprising negative correlation between contract document and agents' performance. The paper concludes that effectiveness of contracting out documents depends on contract management capacity of government administrators. In its absence, LGs that contract out are exposed to risks. The paper uses the findings to reflect on the inherent deficiencies in agency theory and Africanist literature on patronage.     

Using Appreciative Inquiry to Engage the Citizenry: Four Potential Challenges for Public Administrators

In the United States, calls for new citizen engagement strategies have continued to grow at the local government level. One answer is Appreciative Inquiry. As part of a larger study conducted in 2007, the question was posed to public administrators, “What challenges do you see regarding using an Appreciative Inquiry approach to increase citizen participation in local government?” Findings based on a content analysis of the data identified four challenges in particular. Discussion suggests public managers need to be aware of these challenges but depending on local conditions they can be mitigated or overcome.     

Absence of Vertical Linkages and the Quest for Decentralized Service Delivery in Pakistan: An Innovation under Constraints

Local Government Ordinance, 2001 aimed to create a service-orientated local government by devolving many public services from the provincial to local levels. However, in many cases, local governments either did not have the capacity to manage them or the services extended across different geographic jurisdictions. The new system also restructured the three sub-national levels but without any vertical hierarchical linkages between them, and asked them to coordinate public service provision between them. This article suggests different remedies, including developing vertical administrative linkages and the reconstitution of Zila Mushawarat Committee to undertake coordination functions at intra-district level.     

Beyond Paternalism Towards Social Capital: Local Governance Reform in Portugal

An urge to reform local government in Portugal requires a sensitive approach to the role of social capital and, particularly, to the consequences of local governance arrangements in its formation. This research agenda, greatly influenced by the identification of positive externalities of social capital, has generated several claims regarding the need for proactive and objective top-down initiatives. Though assuming that institutions and public policies can have positive effects on social capital building, this article tries to contribute to the debate, focusing on the challenges met by local administration reform, arguing that it requires a four-fold approach: the identification of local government functions and the role of the State; a close look at institutional design and citizen engagement mechanisms; correct tools for allowing civil society reinforcement and social capital building; and recognizing political leadership as a fundamental aspect of a governance arrangement.     

The Effect of New Legislation on the Disclosure of Performance Indicators: The Case of Spanish Local Governments

This article analyzes the effect of new accounting legislation on the disclosure of performance indicators in the financial statements of Spanish local governments. Based on agency and institutional theories, the article also assesses whether the disclosure of performance indicators is used to make the monitoring of local government performance easier for stakeholders or merely to project an image of good management. The results show that the enactment of new legislation has only led to a partial implementation, most local governments disclosing financial and budgetary indicators but very few providing indicators related to the performance of public services. The institutional theory (symbolic value) seems to be the rationale that best explains this pattern of disclosure.     

The Mediating role of Job Satisfaction in the Relationship between Organizational Justice and Employee Outcomes

Grounded in Social Exchange Theory and Equity Theory, this study examined the mediating role of job satisfaction on the relationships between organizational justice and employee’s outcomes. The study applied PLS-SEM to analyze data obtained from 142 employees. The results show significant relationships exist between organizational justice dimensions and job satisfaction and between job satisfaction and employee’s outcomes. Furthermore, the study found the mediating effect of job satisfaction on the hypothesized relationships. This paper contributes to the existing human resources literature on employees’ outcomes and guides management on how to improved employees’ job satisfaction and employee outcomes.     

Community Council Cooperation: The Lake Macquarie City Council Co-Governance Delegation Model

In its Better, Stronger Local Government, the Independent Local Government Review Panel (2012a, 2012b) advanced several claims regarding the performance of New South Wales (NSW) local government, including the supposed need for additional “sub-council” governance structures. This article argues that there is no need to “reinvent the wheel” in NSW local government by introducing additional “sub-council” structures since existing regulation already enables local authorities to engage in local co-governance. Using the example of the Lake Macquarie City Council (“LakeMac”) “delegation model,” the article shows that LakeMac has been successful in its endeavors to engage widespread community participation in co-governance to manage council facilities.     

Entrepreneurship and Participation in Public Management Reforms at the Local Level

This article seeks to discuss who the policy entrepreneurs are and who participates in the policy-making process of public management reforms at the local level. In order to answer the research questions, a multi-unit and multi-case research study was carried out in three municipal governments: Barcelona, Boston and Turin. The subjects of the study were 15 innovations in management implemented between 1992 and 2007. The first conclusion is that politicians predominantly take the entrepreneurial role in introducing innovations in public management, regardless of the technicality of the innovation. As far as political participation is concerned, public management reforms are still dealt with as in-house matters, even when public managers want to be recognised as promoting the positive values of political participation.     

Local Expenditure Interaction in Italian Municipalities: Do Local Council Partnerships Make a Difference?

This paper investigates interdependence among local councils in Italy in their public spending and distinguishes between possible sources of this interdependence. We find significant positive interaction among neighbouring local councils in regard to both spending at the level of total expenditure and spending on different sub-categories. Attempts to identify the source of this horizontal interaction seem to reject the yardstick competition hypothesis. Addressing the role that local council partnerships may play in internalising fiscal externalities, we suggest that expenditure interaction may be driven by spill-over.     

A ‘Fruitless Obsession with Accuracy’: The Uses of Sensemaking in Public Sector Performance Management

Sensemaking provides a framework for understanding and interpreting managers' working lives, based on a thorough critique of rational choice models. It refutes rational choice, and aims not to predict, prove or control but simply to explain: the making of sense. This article, based on the author's original prizewinning MBA thesis, presents research undertaken in 2005–2006 on the uses of sensemaking in understanding local government organisations' contrasting experiences of performance management systems: an internal system in Canadian city government, and an externally-imposed system in the form of the now abandoned Comprehensive Performance Assessment (CPA) in British local government. Key literature utilised includes social and organisational psychologist Karl Weick, British complexity theorists such as Ralph Stacey, and a literature on the politics of organisational behaviour (such as Guy Peters et al.). A critique of rational choice and summary of sensemaking precedes an account of phenomenological case study research across two countries, undertaken using ethnographic field methods. The author argues that using sensemaking to understand performance management systems provides a further imperfect means of making sense of inherent organisational equivocality. These systems are radically interpreted as devices for making sense of experience in organisations in which human behaviour cannot be expected to be forever accurately predicted and controlled. Conclusions with enduring relevance for practising managers are presented on the personal, tactical, methodological and philosophical ‘uses’ of sensemaking in managers' working lives.