Is Red Tape Hindering the HRM Value Chain in the Public Sector?

Abstract

Red tape is often framed as a characteristic deeply rooted in all subsystems of public organizations which significantly impacts the human resource management (HRM) process. According to the HRM process, for example transformational line managers implement HRM practices which subsequently will be perceived by employees and then lead to several outcomes on multiple levels (employee, organization, and society), While it is argued that red tape is deeply rooted in this process, studies only focused on the direct effects of red tape on leadership behavior, perceived HRM and employee/organizational outcomes, but never studied how it is really ingrained in the processes. We therefore fill this gap. Moreover, the HRM and red tape literature only focused on employee and organizational outcomes, while societal outcomes are understudied. The research-question therefore is: To what extend does red tape hinder the direct and indirect relations between transformational leadership, perceived HRM, and (employee-, organizational- and societal) well-being? Based on a representative sample of 4,688 Dutch public servants it can be concluded that red tape negatively moderates the relations between transformational leadership and both organizational and societal outcomes but in contrast to expectations positively moderates the mediation of transformational leadership through HRM satisfaction on these two outcomes.