Public planning and political strategy

Planning theory and practice derived from corporate experience, management science and rational decision theory have had little influence on decision-making in the public sector. The political environment and organizational complexity of public decision making render conventional approaches to objective, rational, comprehensive planning of limited value in government agencies and in private corporations involved in public policy making. A more effective approach to strategic planning and management must be based on an understanding of the political dynamics through which policies are made. It must adopt a variety of styles directly related to major functions in the policy making process and use a variety of political intervention and influence techniques that facilitate the implementation of plans and policies.     

Is it the Brazilian Way? Extending the Comparison of Public and Private Organizations

This study investigates the differences in select organizational characteristics, managerial practices and work attitudes among 670 public and private sector workers in Brazil. The results indicate that in some aspects there is a moderation effect by type of organization. For example,when public employees score high on autonomy and task significance, perceive organizational practices as favourable, and keep membership in the same organization, they tend to be more satisfied than private sector workers. Overall, the findings highlight the need for more international comparisons to gain a better understanding of the public-private distinction.     

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.     

Need to choose between cutting people and pay? A work sector may matter if maintaining work attitudes is your concern

Despite the increase in the cases of reducing payroll costs (i.e., the costs of wages and salaries), studies that directly compare the effects of related methods (cutting pay vs. downsizing) on work attitudes are extremely limited. Moreover, there has been no effort to answer the question of “who” is more or less affected by one method over the other. This study directly compares the effects of cutting pay vs. downsizing on work attitudes (i.e., affective commitment and job satisfaction) of remaining employees (i.e., employees whose pay is cut vs. survivors of downsizing). The study also examines the moderating effect of the work sector (private vs. public sectors) in this comparison. To do this, 4,359 Irish workers who participated in the 2009 National Workplace Survey (NWS) were analyzed. The analysis reveals no overall difference in the effects of the two methods in maintaining the work attitudes of remaining employees. However, this comparison is moderated by sector. In the private sector, downsizing better maintained the work attitudes of remaining employees than cutting pay. In the public sector, in contrast, there was no significant difference in these effects between the two methods. The results challenge the earlier belief that pay cuts cannot be a feasible alternative to downsizing due to their detrimental effect on employee motivation. The study outcomes indicate that this concern is applicable only in the private sector. Thus, the findings suggest that organizations in the public sector can utilize the pay cut option (rather than downsizing) to gain social approval, which can also be an essential resource that allows firms to better compete in the market.     

Wage Linkages Between Private and Public Sectors in Sweden

Abstract. The paper examines wage linkages between private and public sectors in Sweden by means of Granger causality tests and estimation of error correction models. Wage changes in central and local governments are Granger caused by private sector wage changes. Public sector wage increases involve error correction mechanisms; the lower the relative wage in the past, the higher the current wage increases. Increases in unemployment are associated with relative wage improvements for public sector employees.     

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.     

Public-Private Governance Regimes in the Global Sphere

Globally, there are challenges and threats that cannot be targeted by a single actor, even if it may be a national state, legitimized and willing to act. Hence, new collaboration regimes were created: international organizations, but also – formal or informal – cooperations with the private sector. Our paper discusses organization forms of these cooperations or ‘global public private partnerships’ (GPPP) theoretically and outlines framework conditions for the use of these global partnerships. Additionally, the health sector will be tackled exemplarily to delineate in how far GPPP are largely depending on the nature of the good provided.     

A POLITICAL ECONOMY THEORY OF FISCAL POLICY AND UNEMPLOYMENT

This paper presents a political economy theory of fiscal policy and unemployment. The underlying economy is one in which unemployment can arise but can be mitigated by tax cuts and increases in public production. Such policies are fiscally costly, but can be financed by issuing government debt. Policy decisions are made by a legislature consisting of representatives from different political districts. With the available policies, it is possible for the government to completely eliminate unemployment in the long run. However, with political decision making, the economy always has unemployment. Unemployment is higher when the private sector experiences negative shocks. When these shocks occur, the government employs debt‐financed fiscal stimulus plans which involve both tax cuts and public production increases. When the private sector is healthy, the government contracts debt until it reaches a floor level. Unemployment levels are weakly increasing in the economy's debt level, strictly so when the private sector experiences negative shocks. Conditional on the level of workers employed, the mix of public and private output is distorted.     

SOVEREIGNS VERSUS BANKS: CREDIT,CRISES, AND CONSEQUENCES

Two separate narratives have emerged in the wake of the Global Financial Crisis. One interpretation speaks of private financial excess and the key role of the banking system in leveraging and deleveraging the economy. The other emphasizes the public sector balance sheet and worries about the risks of lax fiscal policy. However, the two may interact in important and understudied ways. This paper examines the co‐evolution of public and private sector debt in advanced countries from 1870 to 2012. We find that in advanced economies financial crises are not preceded by public debt build‐ups nor are they more likely when public debt is high. However, history shows that high levels of public debt tend to exacerbate the effects of private sector deleveraging after financial crises. The economic costs of financial crises rise substantially if large private sector credit booms are unwound at times when the public sector has little capacity to pursue macroeconomic and financial stabilization.     

The Public–Private Job Satisfaction Differential in Italy

Abstract. This paper uses Italian survey data for 1995 to study the differences in satisfaction for six non‐pecuniary job attributes between public and private sector workers. Results indicate that public employees differ from private employees in the way they evaluate satisfaction with job security, consideration by colleagues, and safety and health job features, whereas there are no differences in their assessment of satisfaction with effort levels and interest for the job. In particular, we find that the premium for public employees is quantitatively higher, especially in the case of satisfaction with employment losses. Moreover, there are significant differences in the determinants of satisfaction across sectors.     

A New Look at the Public Wage Premium in Italy: The Role of Schooling Endogeneity

This paper uses a sample of male workers to estimate public and private wage structures and the public wage premium for Italy. Results from a model with endogenous sector and schooling suggest that public employees have on average lower unobserved wage potentials in both sectors than private employees, but work in the sector where they benefit from a comparative wage advantage. Schooling is positively correlated with wages in both sectors, and controlling for that is crucial to get more reliable estimates and predictions. The associated average unconditional public wage premium is 12 per cent. The net premium is 9 per cent, but not statistically significant.     

MANAGING THE ENVIRONMENTAL EXTERNALITIES OF TRAFFIC LOGISTICS: THE ISSUE OF EMISSIONS

Companies are increasingly being held accountable for the life‐cycle impact of their products and services. Transportation is frequently a major component of this life‐cycle impact. Hence, to reduce total environmental impact, logistics managers will have to become more sophisticated in their understanding of how they can reduce the environmental impact of their transportation operations, without negatively affecting the cost or effectiveness of these operations. In line with this mandate, we quantify the dynamic impact of road vehicles on the environment. In most emission models, a constant speed is used depending only on the specific road type. Using such a model will lead to an underestimation of the effective emissions. It turns out that the differences with a more realistic dynamic assessment model are significant. The analysis here suggests that the policy consequences of these differences for both public sector managers and private companies are potentially quite important.     

Why Do People from Southern Italy Seek Jobs in the Public Sector?

This paper analyses the choice open to a worker seeking a job in the public and private sectors of the labour market. The private sector is identified by a steeper wage profile and by lower job security than the public sector. The reservation wage for the two sectors is calculated in the first part of the paper. The results reveal that the reservation wage for the public sector is higher than that for the private sector. The effect of career prospects, job riskiness and labour demand on optimal time allocation between the search in the two sectors is then analysed. Finally, an empirical analysis is made in order to study Italian workers’ search strategies. It highlights relevant geographical differences which can be interpreted through the theoretical results obtained in the paper.     

Public Sector Wage Premium in Canada: Evidence from Labour Force Survey

Although previous research has pointed to a public/private sector wage gap for men and women in Canada, the extent of this gap has not been measured in recent years. Using data from the Canadian Labour Force Survey for September 2008, and using an endogenous switching regression framework to control for self‐selection, I find that both men and women earn a wage premium in the public sector in Canada, although the premium is higher for women. The pure wage premium or economic rent that public sector workers receive relative to their counterparts in the private sector is $1.09, or 5.4 per cent for men and $3.15, or 20 per cent for women. An analysis of selection in the pubic/private sector reveals that public sectors workers are ‘positively selected’ on observables and consist of the ‘cream of the crop’.     

The effect of public involvement on firm inefficiency: evidence using Japanese private firms

The purpose of this paper is to investigate the effect of public involvement on firm inefficiency. Public involvement is defined as the actions taken by governments to control firm management, as expressed in regulation and public ownership. We make the following three contributions. First, we show public involvement is an important determinant of the inefficiency of private firms. Although public involvement has been shown to influence firm behavior in public or regulated sectors, existing studies in the private sector tend to ignore its effects. Second, we analyze firm inefficiency rather than firm performance by focusing on cost factors. Previous work tends to use performance measures such as return on assets or return on equity rather than inefficiency measures to judge a firm’s management level. Performance measures are problematic, however, in that they are affected by not only cost factors but also demand factors. Therefore, we must separate these factors when we analyze a firm’s management. Third, we use a stochastic cost frontier model for the estimation. Although this is a suitable approach for estimating firm inefficiency, it is rarely used for private firms. Our results suggest that public ownership increases firm inefficiency while regulation decreases firm inefficiency. It is also clear that the effect of public ownership is not significant in the manufacturing industry, while it is strongly significant in the nonmanufacturing industry. This shows the importance of studying the effect of public involvement in the private sector.     

Marketing planning in a service economy

This article discusses the need for effective planning of the vital services which support modern industrial economies. The influence of the public sector on private industry has grown substantially over the past decade. Government intervention in industry is no longer unique; the public sector and the private sector are in tandem and corporate planners in both areas should establish and develop a fruitful dialogue.     

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.     

Saudization (Localization) – A critical review

Abstract

This paper introduces the concept of Saudization and critically reviews its existing and potential impacts and consequences. It identifies that Saudization has positively contributed to reducing the overall percentage of foreign labor. However, there have been some difficulties, such as a decline in competitiveness among regional business companies with respect to a business friendly environment, and reduced direct foreign investment, which influenced the reduction of the tax on foreign investors. Saudization should place importance on skill development among Saudi nationals by strengthening educational and vocational training, and providing time-specific incentives, rather than relying only on a quota system. Saudization should be implemented more through market forces and incentives. Collecting comprehensive information on the nature and magnitude of Saudi unemployment could be a first step in developing appropriate Saudization policies. This paper suggests appropriate coordination and consultation between the government, the private sector and the public at large, so that any policies on Saudization become more easily acceptable and executable in both the public and private sector.     

The queen bee: A myth? The effect of top-level female leadership on subordinate females

We investigate the effect of female leadership on gender differences in public and private organizations. Female leadership impact was constructed using a quasi-experiment involving mayoral elections, and our research used a sample of 8.3 million organizations distributed over 5600 Brazilian municipalities. Our main results show that when municipalities in which a woman was elected leader (treatment group) are compared with municipalities in which a male was elected leader (control group) there was an increase in the number of top and middle female managers in public organizations. Two aspects contribute to the results: time and command/role model. The time effect is important because our results are obtained with reelected women – in their second term – and the command/role model (the queen bee phenomenon is either small, or non-existent) is important because of the institutional characteristics of public organizations: female leaders (mayor) have much asymmetrical power and decision-making discretion, i.e., she chooses the top managers. These top managers then choose middle managers influenced by female leadership (a role model). We obtained no significant results for private organizations. Our work contributes to the literature on leadership by addressing some specific issues: an empirical investigation with a causal effect between the variables (regression-discontinuity design – a non-parametric estimation), the importance of role models, and how the observed effects are time-dependent. Insofar as public organizations are concerned, the evidence from our large-scale study suggests that the queen bee phenomenon may be a myth; instead, of keeping subordinate women at bay, our results show that women leaders who are afforded much managerial discretion behave in a benevolent manner toward subordinate women. The term “Regal Leader” instead of “Queen Bee” is thus a more appropriate characterization of women in top positions of power.