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.     

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 versus public ownership and economic performance: evidence from Italian local utilities

In the last century local public services have often been reformed. The declared outcome of the most recent reforms is the privatization and liberalization of the sector. However, in almost all European countries, the privatization of local public services has been only partial, because local governments have sought to privatise a minority stake in the public owned-companies, while remaining committed to retaining public ownership and control over the longer-term as a means of protecting public interest. The phenomenon of mixed public–private companies emerged as a result of this process. In this context, the article investigates whether differences in financial performance can be found between public–private companies and totally public-owned enterprises. Empirical quantitative studies on this particular topic are quite lacking at the moment. The present study tries to fill this gap through an empirical analysis on a sample of 623 Italian local utilities. The results of the study suggest that there are differences in economic performance between local utility companies with varying degrees of public ownership. In particular, public–private utilities show better economic performance than publicly owned firms, especially in terms of profitability. The results also seem to suggest that the majority private ownership is not necessary for better performance. In other terms, public–private partnership—and not private majority ownership—seems to be the key point for good performance.     

Regulating private monopolies and promoting competition

This article describes developments in the British telecommunications industry in its transition from the public to the private sector. These developments are not particular to this industry alone. The 1980s are seeing a movement away from direct government control in large organizations in the public sector and towards privatization, for reasons that are both political and economic. The experience of the telecommunications industry has both particular and general relevance.     

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.     

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.     

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.     

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.     

Consensual commitment: A grounded theory of the meso-level influence of organizational design on leadership and decision-making

This research examined the relationship between organizational design and leadership in decision-making teams. It used a grounded theory-based qualitative research design. The validity of the research was enhanced by data triangulation, wherein quantitative psychometric data augmented the qualitative data that are traditionally used. The research was based upon two organizations within the substantive setting of the knowledge industry. The higher order category of consensual commitment explained effective decision-making. At the meso-level of leadership modeling, organizational design influenced both leadership style and decision-making. Specifically, an organizational design that generated lateral job roles and a relational leadership orientation was found to enhance consensual commitment, and provided a level of assurance against dysfunctional team dynamics.     

Organizational change and rigidity during crisis: A review of the paradox

When and how do existential crises, threatening business continuity, stimulate organizational change or cause the opposite—rigid preservation of established business practices? This question remains unresolved, despite three decades of deliberations in the academic literature, which still yields contradicting theoretical arguments and empirical results. One view argues and finds support for the hypothesis that posits an amplified propensity to change within threatened organizations. The other view supports the threat-rigidity thesis, implying reinforcing habitual practices. In this paper, we provide a novel holistic typology of organizational crises and then review the literature on the topic, summarizing existing insights within a theoretical framework comprising three interrelated sequential processes: organizational cognition, decision-making, and implementation. We analyze the gaps in the field's knowledge within each process and propose a research agenda to address these voids.     

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.     

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.     

Emotional strain and organizational citizenship behaviours: A meta-analysis and review

This paper provides a qualitative review and quantitative summary of the relationship between emotional strain and organizational citizenship behaviour (OCB), and discusses five potential moderators of the strain-OCB relationship. OCB refers to discretionary behaviours that benefit organizations and their members. Emotional strain is important to consider because it has a broad impact on employee behaviours and is possibly more fundamental than other forms of strain. However, it has received less attention than aspects of job-related strain, such as job dissatisfaction. Based on the results of 29 empirical studies with 52 unique effect sizes, meta-analytic results revealed a negative relationship between strain and OCB (corrected estimate of the population correlation coefficient, ρ=-.16). Furthermore, this relationship is moderated by the type of OCB (OCB directed at the organization vs. that directed at individuals), type of organization (private vs. public), publication status (published vs. unpublished), OCB rating source (self vs. other), and type of sample (full-time employees vs. employed students). We present theoretical and practical implications of these findings, including steps that could be taken by organizations to increase OCB and to reduce emotional strain, and suggest directions for future research.     

Multiple Time Series Analysis for organizational research

While multiple time-series analysis (MTSA) is a well-established method in economics, marketing, and finance, few studies have applied MTSA in organizational research. With the growing availability of data sources that contain detailed time-series data and the increasing importance of longitudinal designs, we argue that MTSA blends well with organizational research. We exemplify the possible applications of MTSA to the topics of social media, innovation, ambidexterity, and top management teams. We illustrate the state-of-the-art MTSA technique – Vector Autoregressive (VAR) model – by explaining the key methodological steps needed to estimate and interpret the results and providing a software tutorial in R and STATA. In line with the rising popularity of social media data, we employ a dataset that combines public social media data from Facebook with corporate reputation data from a private data source. We conclude with a discussion on the applicability, limitations, and extensions of MTSA for academics and practitioners.     

From start to finish: Flexi-time as a social exchange and its impact on organizational outcomes

We employ arguments from social exchange theory to develop a framework explicating the relationship between flexi-time and employee absenteeism, employee turnover, and organizational profitability. Then, employing data from 1,064 private sector organizations located in France, Germany, Hungary, Ireland, Italy, Sweden, and the United Kingdom, we test our hypothesized model via path analysis. We found flexi-time to have a significant negative relationship with employee turnover and a significant positive relationship with organizational profitability, controlling for organizational, industry, and country factors, as well as other flexible work arrangements. The relationship between flexi-time and absenteeism did not reach significance in our estimations. We highlight the implications of our work and outline directions for future research.     

Privatization and Agency Status: Identifying the Critical Factors for Performance Improvement

Earlier research into the impact of public and private ownership on economic and financial performance concluded that performance may be affected but that the relationship is more complicated than policy makers have often assumed. This paper is concerned with explaining these earlier results in terms of changes in the internal environment of organizations. Six key internal characteristics are identified from the management literature and the history of ten UK organizations is summarized in terms of these characteristics. The model appears to be robust. Performance changes and lack of change are explained by the internal environment. The results are congruent with organizational theory which suggests that the internal environment has to adapt to changes in the external environment.     

Men Doing and Undoing Gender at Work: A Review and Research Agenda

While research on gender in organizations has not only documented sustained gender inequality, it has also offered an understanding of how gender is enacted through doing and undoing gender. An underexplored aspect concerns how men can do and undo gender to support or hinder gender equality processes in organizations. Doing gender is then understood as creating gender difference while undoing gender would conversely mean to reduce gender difference. The former is supporting gender inequality while the latter means moving toward gender equality. This article therefore provides a systematic review of empirical articles that discuss how men are doing and undoing gender within an organizational context. It is shown that undoing gender practices of men in organizations are under‐researched and a research agenda of how men can undo gender at work is thus developed. This article makes a two‐fold contribution: first it offers a refinement of doing and undoing gender approaches and second, it develops a research agenda for exploring how men can undo gender at work.     

The U.S. Forest Service and Its Responsibilities under the National Environmental Policy Act: A Work Design Problem

The U.S. Forest Service’s responsibilities under the National Environmental Policy Act entail a wide range of activities including scoping, scientific analysis, social and economic analysis, managing public input and involvement, media relations, regulatory analysis, and litigation. These myriad duties raise several important organizational and management questions. First, is the U.S. Forest Service capable of discharging these widely varying tasks with high levels of effectiveness and efficiency? To what extent should these activities be outsourced to private contractors or other providers? For those responsibilities retained in-house, what organizational structure best supports their effective and efficient execution? To address these questions, this article draws on concepts from new institutional economics and insights from the privatization and strategic organizational design literatures.     

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.     

The high cost of low wages: Economic scarcity effects in organizations

Due to current economic circumstances (e.g., stagnating wages, increasing material aspirations, mounting student debt), an increasing number of employees are prone to experiencing economic scarcity, defined here as the perception that one has fewer financial resources than one's needs require. In this paper, we focus primarily on an under-studied population in the organizational sciences: The working poor—employees who hold jobs but do not earn enough to sustain a reasonable standard of living for themselves and their dependents. Taking into account recent research suggesting that scarcity can have profound psychological consequences, we argue that organizations have a vested interest in reducing feelings of financial deprivation among its employees because the psychology of scarcity has the potential to spill over into organizational functioning. Furthermore, we assert that most organizations’ approaches to managing low-wage work are not only ineffective at reducing the spillover effects of scarcity on organizational outcomes, but also increase their endurance because they do not account for the behavioral consequences of financial deprivation. As such, we present more sustainable initiatives through which organizations can reduce scarcity among its employees. Finally, we discuss ways in which organizational researchers can become more involved in relevant public policy debates.