THE INFLUENCE OF THE EMPLOYMENT STATUS OF PUBLIC EMPLOYEES ON THEIR WORK EFFICIENCY, SATISFACTION AND PUBLIC ORGANIZATION PERFORMANCE IN ISRAEL

Abstract

Since the 1980’s, there was a growing interest into the privatization of public sector in Israel, under the influence of New Public Management. The present study analysis the influence of the employment status of public employees in Israe, on their work efficiency, satisfaction and on their organization performance. Using a quantitative research approach, 11 hypotheses were tested on a sample of 550 public employees with different employment status in the local authority of Givat Shmuel Municipality in Israel. The results show that that there is a strong relationship Cramer's V = 0.441 and significant correlation between an efficient employee (including/excluding causes of absenteeism) and employees with the different status of the employment (P <0.05, 388.44 = (44) 2χ). Also, the results indicate that between an efficient employee, excluding the factor of absenteeism, and status of employment there is a strong relationship, but weaker than the employee efficiency when including the factor of absenteeism: Cramer's V = 0.394 (P <0.05, 309.73 = (56) 2χ). A positive correlation was found between employees’ quality of service and the local authority’s performance (rs=0.541, p<0.05). An important finding is that an employee who is satisfied with his job, despite the tension arising from the different employment status as well as a low level of commitment among the other contract workers, is a motivated employeewho will still contribute a higher level of performance of the public authority. Several recommendations for public managers are also formulated.