Public-Sector Reform: Employment Security and Quality of Decision Making in the Australian Taxation Office

This article examines the impact of structural reforms and industrial relations changes on the employment security and decision behaviors of middle-level managers in the Australian Taxation Office (ATO). This article is based on an empirical study using focus group and survey data that investigated how structural change and public-sector reforms substantially altered the employment environment. This research reveals that the ATO environment can be characterized by low morale, risk aversion, fear, and distrust brought about, in part, by employment insecurity. Where middle managers perceived organizational threats to their employment security, they engaged in self-protective “survivor” behaviors even when no such threats to their employment security existed. The article concludes that a substantial number of middle-level managers, survivors of years of restructuring, downsizing, and organizational change, were unlikely to display high-quality decision-making behaviors.