Changing Public Service Organizations: Current Perspectives and Future Prospects

As governments and public service organizations across the globe engage in strategies of institutional and organizational change, it is timely to examine current developments and a future research agenda for public governance and management. The paper commences with reflections on the state of the field, based on an analysis of papers published in the British Journal of Management over the last decade. While there was some variation apparent across the set, the 'typical' article was found to be influenced by the discipline of organizational behaviour, set within the health-care sector, using case-study methods within field-based studies, and investigating shifts in roles and relationships and the management of change. It has also in the past been UK-centric, though the journal editorial policy and our own article call for a stronger international and comparative focus in the future. The second section of the article summarizes the articles and themes contained in this collection of papers on public service organizations. The third section explores a possible research agenda for the future, arguing for the significance of public sector research for the understanding of management more generally, and for examining the interface between private and public organizations (an increasingly common phenomenon). We suggest the need to set public services research in policy and political contexts, and suggest this may reveal organizational processes of wide interest. We call for a wider set of disciplines to engage in public management research, and to engage in moving the agenda from the study of efficiency to effectiveness as defined by a variety of stakeholders. We address the issue of how far public management researchers should become directly engaged with the world of policy and suggest that whether researchers engage in Mode 1 or Mode 2 research, their work would benefit from a stronger theoretical base.     

Performance Decline and Turnaround in Public Organizations: A Theoretical and Empirical Analysis*

Public sector performance is currently a significant issue for management practice and policy, and especially the turnaround of those organizations delivering less than acceptable results. Theories of organizational failure and turnaround derive largely from the business sector and require adaptation to the public service. The performance of public organizations is more complex to measure, is related to institutional norms, and the idea of ‘failure’ is problematic. Empirical findings from a real‐time, longitudinal study of poorly performing English local authorities are used to develop an initial theory of performance failure and turnaround suited to public organizations. The paper argues that the typical performance of public organizations over time is cyclical. Where cognition and leadership capability are absent, organizations fail to self‐initiate turnaround. In this situation authoritative external intervention is necessary. The strategies applied are principally concerned with building a leadership capability that engages senior politicians and managers in order to overcome inertia and collective action problems. The theory is presented in the form of seven propositions that provide a basis for further research across the public sector.     

Ethnic Minority Women in the Scottish Labour Market: Employers' Perceptions

This paper contributes to an under‐researched area through investigating employers' perceptions of ethnic minority women in the Scottish labour market. Adopting a social constructionist approach which acknowledges agency and structure and incorporates insights relating to organizational and social group culture, the study highlights the influence of individual (micro), organizational (meso) and contextual (macro) factors on ethnic minority women's participation in the labour market. The paper is based on qualitative research involving Scottish employers in the public and private sectors to examine perceptions and practices related to the employment of ethnic minority women. Institutional commitment to equality issues is questioned, although individual instances of engagement with key equality issues were sometimes evident. Proactive recruitment strategies and career support for ethnic minority women and men were not in evidence, and there was low awareness of the unique position of ethnic minority women in employment and society. We argue that these findings call for a multi‐level approach to advancing human resources management policy, practice and research within a wider socio‐political environment in which the responsibilities and duties of public sector organizations are clarified and more support is provided for organizational promotion of equal opportunities.     

11 The Effects of Governments on Management and Organization

Abstract

We review and integrate existing research from organization theory, strategy, organizational behavior, economics, sociology and political science on the effects of governments on organization and management, with a focus on how governing ideology and government capability influence independent organizations’ forms, strategies, and their participants’ behavior. When brought together these works suggest significant research opportunities in the fields of management and organization, as well as new perspectives on public policy challenges. Several avenues of potentially profitable empirical research include more attention to the influence of government on corporate strategies, more research on the strategies of pursuing corruption and government capture for competitive advantage, the role of government in fostering innovation and the growth of entrepreneurial organizations, and extra‐organizational contextual effects on managerial and employee organizational behavior. Possible public policy implications are illustrated with an application to the role of organizations in national wealth generation and dispersion.     

Toward a Theory of the Informal Economy

Economic activity taking place within the informal sector—traditionally defined as activity unregulated by law but governed by custom or personal ties—represents an emerging frontier for management researchers with interests from alleviating poverty at the bottom of the economic pyramid to entrepreneurship, innovation, or organizational functioning in advanced knowledge economies. A substantial portion of the world's economic activity takes place informally, with many developing nations having more than one half of their output derived from the informal sector and the advanced economies witnessing an increase in informal economic activity. I review the literature in economics, sociology, political science and public policy, and management and show that defining the informal economy proves problematic; current definitions of the informal economy fail to converge around a unitary construct. I then use these disparities in the literature to generate a model of the informal economy clear enough to foster a distinct research agenda.     

Developing Absorptive Capacity Theory for Public Service Organizations: Emerging UK Empirical Evidence

A strong public policy focus on high performance means that utilizing management knowledge effectively is at a premium for UK public service organizations. This study empirically examined two English public agencies to explore the inter‐sectoral transfer of a strategic management model originally developed in the private sector – absorptive capacity – which is one way of conceptualizing an organizational competence in such knowledge mobilization. Two theoretical contributions are made. First, a new absorptive capacity framework for public service organizations is developed which recognizes the participation of public agency project teams during an innovation process proceeding over time with phases of co‐creation, testing, metamorphosis and diffusion. Second, our novel framework modifies an early influential model of absorptive capacity. Counter to this model, we argue that realized absorptive capacity requires agency from skilled and embedded actors to turn ‘curbing routines’ into ‘enabling routines’ in all four stages. Project (middle) managers have flexibility in their roles to seize episodic moments of opportunity to innovate and achieve service delivery goals, and to build absorptive capacity capability. Absorptive capacity capability develops organically over time. Future research directions are discussed.     

Financial reporting in Europe: Prospects for research

This paper is a commentary on the future of financial reporting in Europe and on how research into accounting issues can be relevant to policy makers. Combining scholarship in accounting with scholarship in management can offer insight into national and global issues where accounting communicates information that affects managerial decisions at the microeconomic level and political decisions at the macroeconomic level. The paper cites examples of recent research in financial reporting and points to the current work plans of leading policy makers to illustrate the potential for researchers to influence policy directions. The context of financial reporting, nationally and globally, and the data available in the public domain, provide continued opportunities for researchers investigating accounting issues in the private sector and the public sector.     

Learning in Public Sector Organizations: A Theory of Action Approach

The importance of learning has since long been acknowledged for both business and public sector organizations. However, learning theory and research have tended to neglect the differences between these organizations, and to develop in separate and unrelated directions. To address these developments, this paper purports, first, to develop a theoretical framework that integrates various concepts from the fields of public policy learning and organizational learning, and that is specifically directed at public sector organizations. Second, the paper purports to illustrate the utility of this framework by applying it to policy-making in a Dutch municipality, the Pegasustown prostitution case.     

Business and Management Impact Assessment in Research Excellence Framework 2014: Analysis and Reflection

The evaluation of research impact is likely to remain an important element of research quality audits in the UK for the foreseeable future. With this paper, we contribute to debates on impact and relevance of business and management studies research through an analysis of Research Excellence Framework 2014 impact scores within the business and management unit of assessment. We offer insights into the organizational contexts of UK business schools within which impact is produced, drawing attention to the issues of linkages with research intensity, grant income generation, research team size, career stage and gender of academics, and whether impact activity is focused on private or public sector organizations and national or international reach. We put forward recommendations for managers responsible for business schools and higher education policymakers regarding management and organizational policies and processes, as well as possible changes to the rules guiding future research excellence audits.     

New Public Management,Service Provision and Non-Governmental Organizations in Bangladesh

New public management (NPM) is now a universal phenomenon dominating the reform agenda of all countries. Bangladesh is no exception. Following the dismal performance of the state-led development the old paradigm of public sector has come under scrutiny. There is now a call for a minimal government. The scale of operations and the role of the government have to be drastically reduced to focus on core functions. In doing so, this will pave the way for the private sector and the civil society organizations to undertake developmental responsibilities in their areas of expertise. This article is an attempt to analyze the significant role played by Non-Government Organizations (NGOs) in rural development service provisions. It argues that the government has to share the developmental responsibilities with NGOs, which have proved their potential in reaching the target population and that an effective partnership is a sine qua non for the meaningful rural development in Bangladesh.     

The Impact of Transformational Leadership on Organizational Citizenship Behaviours: The Contingent Role of Public Service Motivation

In this paper we examine whether the relationship between transformational leadership and organizational citizenship behaviours (OCBs) is contingent on public service motivation (PSM). We propose that PSM may reduce the motivational influences of transformational leaders’ behaviours on followers’ OCBs in public sector organizations. Using a sample of Mexican employees we tested this proposition with structural equation modelling. Our results show that the motivational effects of transformational leadership were less for public sector followers higher in PSM than for those lower in PSM. A follow‐up study in private sector organizations did not reveal a similar interaction effect. These findings appear consistent with previous research demonstrating that PSM is more aligned to the goals and values of public rather than private sector organizations. Nevertheless, the direct effects of PSM on OCBs remained in the private sector.     

Exploring Strategic Positioning in the UK Charitable Sector: Emerging Evidence from Charitable Organizations that Provide Public Services

The UK voluntary sector operates in an arguably enabling policy context. Yet, other external environmental influences have posed major challenges for charitable organizations within the wider voluntary sector. This paper aims to rectify the current lack of empirical research on how charitable organizations have responded in terms of their strategic positioning to the changing external operating environment and policy context. It both explores the positioning strategies adopted by two contrasting British charities that deliver public services in different ways, and investigates the factors that have influenced their choice of positioning strategies. The cases studied extend our knowledge of strategic positioning in organizations other than commercial (for-profit) ones. The findings provide new evidence that charities have begun to strategically position themselves in response to both internal organizational factors and external environmental influences. Emerging lessons from the experiences of the case study organizations provide guidance to charity managers in planning and implementing strategic positioning in their organizations. The findings also underscore the need to develop theoretical and conceptual management models specific to non-profit organizations, such as charities.     

Transforming Public Organizations into Learning Organizations: A Conceptual Model

The concepts of organizational learning and learning organizations have gained popularity in recent organization theory literature as complementary subjects. So far majority of studies on these issues focused on the relationship between organizational learning and its ultimate consequences such as increased innovative capacity, increased productivity, and higher competitive advantage of organizations. Nevertheless, many researchers examined the processes of organizational learning from the standpoint of private enterprises, paying little attention to the dynamics of organizational learning in public sector. This paper is aimed to fill this gap by introducing and discussing the basic constituents of a novel conceptual model which demonstrates the relevant steps in transforming of public organizations into learning organizations.     

The Informal Sector: A Review and Agenda for Management Research

Despite its connotations of non‐compliance, illegality, social exploitation and marginality, the informal sector is a substantial contributor to economic life in developing countries and, increasingly, in more technologically advanced activities. Its prevalence in developed economies has also become more widely recognized. In light of its significance, this paper reviews research on the informal sector from a management and organization scholarship perspective, rather than from an entrepreneurship view, as has been the focus until now. It sets out the atypical management practices that are inherent in the sector, explores the under‐researched relationship between formal and informal firms, and highlights definitional, conceptual and other limitations in extant research. As a step in resolving these issues, the authors present a conceptual model of formality and informality in a three‐dimensional framework that highlights an organizational infrastructure dimension, a view of firms operating along a continuum, and a multi‐level analytical context. Building on this, the authors detail opportunities for enhanced appreciation of in situ management and organizational practices in the informal sector and outline tools for pursuing a management and organization scholarship agenda. Overall, the authors argue that management scholarship has great potential to improve understanding of the informal sector, and that the informal sector provides opportunities to advance management theory, research and practice.     

Technological Diversification: A Systematic Review of Antecedents,Outcomes and Moderating Effects

Technological diversification has been linked to a wide range of phenomena, including financial performance, innovation, product diversification and inter‐organizational relationships. This is the first systematic review of this literature and provides an overview of its historical development and conceptual foundations. It finds that the role of contingency factors impacting the positive relationship between technological diversification and financial performance needs further exploration. Also, it finds that the research on the links between technological diversification and inter‐organizational relationships requires consolidation. This paper suggests three avenues for further research. First, it sets out an agenda for identifying the antecedents of technological diversification. Second, it identifies contextual factors that could shape the relationship between technological diversification and performance. Third, it argues that technological diversification research must engage with contemporary technological and organizational developments such as digital organizations, open boundaries and networks.     

Organizational learning and knowledge in public service organizations: A systematic review of the literature

This paper is a systematic review of the literature on organizational learning and knowledge with relevance to public service organizations. Organizational learning and knowledge are important to public sector organizations, which share complex external challenges with private organizations, but have different drivers and goals for knowledge. The evidence shows that the concepts of organizational learning and knowledge are under-researched in relation to the public sector and, importantly, this raises wider questions about the extent to which context is taken into consideration in terms of learning and knowledge more generally across all sectors. A dynamic model of organizational learning within and across organizational boundaries is developed that depends on four sets of factors: features of the source organization; features of the recipient organization; the characteristics of the relationship between organizations; and the environmental context. The review concludes, first, that defining 'organization' is an important element of understanding organizational learning and knowledge. Second, public organizations constitute an important, distinctive context for the study of organizational learning and knowledge. Third, there continues to be an over-reliance on the private sector as the principal source of theoretical understanding and empirical research and this is conceptually limiting for the understanding of organizational learning and knowledge. Fourth, differences as well as similarities between organizational sectors require conceptualization and research that acknowledge sector-specific aims, values and structures. Finally, it is concluded that frameworks for explaining processes of organizational learning at different levels need to be sufficiently dynamic and complex to accommodate public organizations.     

Building Functional Communities: Concepts for Reframing Social and Fiscal Policy

Given the shrinkage of social service resources in public organizations, a variety of fiscal options to manage costs must be developed to address operational efficiencies and, more importantly, to protect from negatively impacting institutional integrity. The paper which follows addresses a continuum of alternatives which could be considered when examining resource sharing policy options which can build well-functioning communities to the benefit of both the public and private sectors. Data were collected using a case study approach employing focus interviews with school district CEO's, CFO's, business officials and other key public and private sector administrators in thirty-one New York State commmunities and two suburban counties within 25 miles of New York City over a period of three years. An exploratory analysis was used to test a conceptual framework that draws together the literature concerning the types and purposes of interdistrict cooperation. The studies findings concerning cooperative arrangements among organizations led to several conclusions and caveats concerning building functional communities:If sharing is to be supported and developed as a strategy for organizational improvement, organizational leaders will have to be aware of the reasons sharing arrangements are made and the tensions that destroy agreements.If sharing agreements are to be promoted, particularly in the specialized areas that seem to be appropriate for sharing resources, more attention will be needed in identifying likely incentives for mid-level managers, administrators and support staff involved with planning and operating such programs.If sharing is to take place, a common set of data need to be collected and analyzed.If sharing is to get started, pilot programs need to be developed that bring diverse organizations together on a regular basis with a specific sharing agenda.     

Improving Humanitarian Operations through Technology‐Enabled Collaboration

Humanitarian supply chains involve many different entities, such as government, military, private, and non‐governmental organizations and individuals. Well‐coordinated interactions between entities can lead to synergies and improved humanitarian outcomes. Information technology (IT) tools can help facilitate collaboration, but cost and other barriers have limited their use. We document the use of an IT tool to improve last‐mile supply distribution and data management in one of many camps for internally displaced persons after the January 2010 earthquake in Haiti, and we describe other current uses of technology in camp management. Motivated by these examples and the interest among humanitarian organizations in expanding the use of such tools to facilitate coordination, we introduce a cooperative game theory model and explore insights about the conditions under which multi‐agency coordination is feasible and desirable. We also outline an agenda for future research in the area of technology‐enabled collaboration in the humanitarian sector.     

The effectiveness and specificity of change management in a public organization: Transformational leadership and a bureaucratic organizational structure

There is an extensive private sector literature on organizational change management. However, recent studies have suggested that the specific context of public organizations may have consequences for the management organizational change. This study examines to what extent different change approaches and transformational leadership of direct supervisors contribute to the effective implementation of organizational change in public organizations, and to what extent the bureaucratic structure of public organizations makes the implementation of organizational change s3pecific. The implementation of an organizational change in a Dutch public organization is studied using quantitative methods and techniques. The results indicate that bureaucratic organizations may effectively implement organizational change with both planned and emergent change approaches. The contribution of transformational leadership depends on the type of change approach and organizational structure. Transformational leadership behavior of direct supervisors contributes little to planned processes of change, but is crucial in emergent processes of change in a non-bureaucratic context. Although the literature on change management mostly emphasizes the leadership of senior managers, the leadership role of direct supervisors should not be overlooked during organizational change in public organizations.     

Exploring the Predictors of Organizational Preparedness for Natural Disasters

There is an extensive body of research on the determinants of disaster preparedness at the individual and household levels. The same cannot be said for the organizational level. Hence, the purpose of this study is to shed light on the predictors of organizational preparedness for natural disasters. Since leaders of organizations have an incentive to overstate their level of preparedness and because surveys of organizational leaders suffer from selection bias and low response rates, we take the novel approach of interviewing employees about the organizations that employ them. Using an online survey, we collected information from a national sample of 2,008 U.S. employees and estimated the predictors of preparedness at the organizational level. We find, among other results, that organization size (facility level) is a consistent predictor of preparedness at the organizational level. We conclude with policy recommendations and outline an agenda for future research on organizational preparedness for natural disasters.