The public administration paradox: an organisation with a low degree of institutionalisation

Abstract

This paper identifies the distinctive characteristics of the internal labour market of the public administration. It gives some examples of innovation in human resource management (particularly in the field of performance-related pay), and discusses whether and how these processes provide a solution to the problems of identity, efficiency and conflict that have affected the public administration on a broad front over the last decade. The main results of the analysis have revealed the weak institutionalisation of the public administration. The selection criteria by which the organisation determines the professional mix of occupational structure and creates a basis for performance behaviour and attitudes are very weak. Limited mobility and poor wage dynamics are the factors most strongly affecting the internal labour market. This, along with other factors discussed in the paper, makes it extremely difficult to enact private sector principles suitable to the public administration (regardless of the specific traits of the organisations concerned). Without certain structural and social preconditions, managerialism cannot provide a solution; legislation alone is not sufficient to bridge the gap and does not create the conditions for improving the organisation of public administration.