Private Sector Management Techniques Research Articles

Strategic Performance Measurement and Management: The Distinctive Nature of the Public Sector and Implications on Performance Measures

Purpose : Strategic performance measurement and management (SPMM) as a subject has come over increased research radar over the last four or so decades. The so-called “performance measurement revolution” of the 1980s to 1990s concentrated on the private sector. “Business managerialism” and “accountingisation” kicked-in into the public sector with transplanting of hitherto private sector management techniques under New Public Management (NPM) and other administrative reform programmes by various governments internationally. Specifically, the 1990s saw the implementation of modern multi-dimensional SPMM systems originally in the private sector. Considering the nuanced nature of the public sector, the transfer of SPMM systems from the private to the public sector has not been straightforward due to technical, conceptual and behavioral factors. This paper contrasts the features of the private and public sectors and investigates the implication of the distinctive nature of the public sector on the application of SPMM in the public sector. This will augment our perceptions and comprehension of existing public sector SPMM theory and practice. Design/Methodology/Approach: The study adopted a systematic literature review (SLR), a mode of research which has been widely adopted and strongly justified for adoption in business and management research since the turn of the 21st century. The study conducted a content and thematic analysis on the commonalities and differences between private and public sectors and implication of the differences on public sector strategic performance measurement and management. The study itself covered 233 published and unpublished documents covering the seven decades to 2023 which to our knowledge constitutes the most comprehensive update on the public-private debate trends to date. Findings: The study thoroughly interrogated the literature perspectives or models on the commonalities and differences between the public and private sectors. The study then deep-dived into the underlying characteristics which differentiate the public and private sectors producing one of the most detailed side-by-side analyses of public-private differentiation based on organisational characteristics, dimension, or concept of all time. The systematic review further identified and derived several thematic areas related to public-private differences and went on to establish the implications of the public-private divergences from an SPMM perspective especially as it relates to the derivation and application of public sector performance measures. These findings are critical for both practitioners and academics as they explore the subject of transplanting private sector SPMM practices into the public sector which is another overripe area for research. The findings provide public managers with a comprehensive and critical cog in their management toolbox as they navigate the practical realities and difficulties of implementing SPMM in the public sector’s unique and complex environment. Research Limitations: The main challenge with conducting a comprehensive research of this magnitude relates mainly to the broad range of literature covered, the unwieldy and onerous analysis and lots of judgement calls which could impact bias and replicability. Practical Implications - This paper conducts a comparative analysis of the key features of the private and public sectors found in the literature and evaluates how they drive attendant management practices in the two sectors and specifically how the public sector’s distinctive nature impacts on the measures of performance. Originality/value - Studying the differences and how they impact the choice of public sector KPIs is crucial in attempting to address the myriad of challenges and potential hindrances to future institutionalisation of SPMM in contemporary PSOs. Exploring and understanding the differences and similarities between public and private sectors is a beneficial springboard to cultivate erudition, cross-pollination and facilitation of knowledge transfer between the two sectors of the contemporary global political economy. Keywords: Strategic, performance management, performance measurement, performance measures, key performance indicators, public-private differences DOI: 10.7176/PPAR/13-2-03 Publication date: March 31 st 2023

The Link Between Sustainability Reporting and the Core Characteristics of Sustainable Human Resource Management

Abstract Background The concept of sustainable human resource management is becoming a core subject of sustainability reports. Current discussions in the literature focus on how to integrate human resource management (HRM) with sustainability issues and emphasise the concept of “sustainable human resource management” rather than “sustainability and human resource management.” This focus requires a more comprehensive company perspective through the lens of company goals, people, processes and the strategic orientation dimensions of an HRM–sustainability relationship. Within this perspective, new approaches are needed to concentrate on sustainable HRM issues. Research aims The aim of this study is to analyse the contents of the sustainability reports in terms of sustainable HR characteristics and HR orientation dimensions. The content analysis design is based on an integrated approach of the classification of sustainable HR characteristics through HR orientation dimensions. The sustainability reports of seven financial institutions from the Borsa Istanbul Sustainability Index (BIST) are analysed for the year 2019 in order to determine to which degree sustainable HR is actively involved in the sustainability reports. Methodology In this study, an in-depth content analysis is performed on corporate sustainability reports of selected companies in order to form the link between HR orientation and sustainability. This content analysis stands on the integration of two different approaches drawn from the literature (Ehnert, 2014; Ulrich, 1997). Findings The results revealed that there are significant differences between the people-oriented scores and process-oriented scores in private banks, while the scores are more balanced in public banks. Additionally, findings support the shift in the public sector from the traditional bureaucratic model to a new management approach that transfers private sector management techniques to the public sector.

ENTREPRENEUR MANAGEMENT, ENTREPRENEUR MUNICIPALITY AND LOCAL DEVELOPMENT

Girişimcilik, kaynakların ekonomik bir şekilde kullanılacağı harekete geçme faaliyetidir. Girişimci yönetim ise yeni politikalar oluşturmayı, mevcut fırsatlar için iç ve dış çevre analizi yapmayı, büyümeyi hedefleyen bir örgüt oluşturmayı ve etkili bir vizyon ve misyon kararı almayı hedefleyen bir yönetim yaklaşımıdır. Daha çok işletme yönetiminde kullanılan girişimci yönetim, 1980’li yıllardan sonra geleneksel yönetime muhalif olarak oluşturulan yeni kamu yönetiminin de gündemindedir. Yeni kamu yönetimi, kamuda hizmetlerin özel sektör sunumuna açılmasını ve özel sektör yönetim tekniklerinin kullanımını öngörmektedir. Özel sektör yönetim tekniklerinin kullanımı, yönetimdeki işleyişi, etkili ve verimli kılmakta ve yerel kalkınmadaki hızın artmasını sağlamaktadır. Kalkınma, yerelin gelişmişliği ile başlamaktadır. Bu gelişmişliği sağlamadaki en önemli görev ise bir yerel yönetim biri olan belediyelere düşmektedir. Bu çalışma, yerel yönetimlerde girişimci yönetim anlayışını ele almakta ve girişimci yönetim politikalarının ülkenin kalkınmasına hangi ölçüde katkıda bulunduğu üzerine bir inceleme yapmaktadır. Çalışma, yerel yönetim birimi olan belediyeler ile sınırlandırılmış, belediyeler dışındaki diğer yerel yönetim birimleri çalışmanın sınırı dışında bırakılmıştır. Çalışma sonucunda girişimci yönetim anlayışının kamu yönetimine olumlu katkılarda bulunduğu, ülkedeki ekonomik ve sosyal kalkınmanın gerçekleştirilmesine büyük katkı sağladığı anlaşılmaktadır.

Compliance Issues in Higher Education

Abstract Efficiency in the 1980’s, quality in the 1990’s, compliance in the 2010’s - private sector management techniques and mechanisms find their way to public services. This paper facilitates the understanding of how compliance management controls can improve operations and prevent or detect failure or wrongdoing. The last few years’ empirical research and benchmark studies demonstrate how organizations are confused about the use of compliance controls. In brief, better organized and integrated IT controls generally lead to better compliance all over the business.

İSVEÇ’TE YENİ KAMU İŞLETMECİLİĞİ VE YEREL SİYASET

Since the late 1970s and 1980s local important legal reforms have been carried out in Sweden. In accordance with the basic argument of new public management reforms, has begun to transform the public administration. It is in the public sector in many countries such as Sweden which said the transformation of the competitive market in the public sector use of private sector management techniques and mechanisms of understanding to approximate. Particularly in local government has been involved in any changes to be made that the new local government act on the basis of “new public management” in accordance with the public in 1991. Therefore, this period of reform in the public sector responsibilities and resources in order to make effective and eliminate public criticism, the Central and the local market have being share.

Applicability of Lewin’s Change Management Theory in Australian Local Government

Public sector organisations are now expected to shift policy towards greater competition and to apply private-sector style management practice to the public domain. Around 70 per cent of all change programs initiated report a failure of the change effort. A lack of a valid framework to guide the implementation and management of organisational change is a major reason for the poor success rate of change initiatives. Public sector organisations are increasingly adopting private sector management principles and practices. Many private sector management techniques, applied without appropriate change management techniques have been criticised for creating problems, such as the language of consumerism, the contracting-out culture, and the monitoring and management of performance. Local government (City councils) are typically considered to be resistant to innovation and are relatively inert compared to other forms of organisation. This article examines the ‘process’ of organisational change. Among other theories, process-based change theories consider change as an on-going process. Thus, change typically occurs in multiple steps that take a considerable amount of time to unfold and efforts to bypass steps seldom yield a satisfactory result. Planned change advocates that organisations move from one fixed stage to another, through a series of pre-determined stages. This article concludes that Lewin’s (1951) planned approach to change can still be used to investigate change management in the city councils. Lewin’s (1951) models are highly generic. It argues that the focus of the change must be on the behaviour of the group, concentrating on factors such as group norms, roles, interactions, and socialisation processes. Lewin’s (1951) models are more relevant to incremental and isolated change projects which are often the case for the Australian local government. The model tends to be more appropriate for organisations, such as city councils, that are based on traditional top-down, command-and-control style of management, with segmented, small units and slow change timelines.

Financial reports and decentralization in municipal governments

Some reforms implemented in the Spanish municipal sector have led to an increasing managerial decentralization. This decentralization has made municipal financial statements lose relevance, since devolved entities are not disclosed in these statements. Accordingly, we have made an empirical analysis of 54 big Spanish municipalities in order to evaluate the impact of decentralization on the municipal financial statements. The survey shows a great concern among practitioners about the importance of global reports. Furthermore, devolved entities should be included in the global reports if the municipality has the authority to approve their budget. This feature shows a legal/budgetary bias of municipal officials, who focus on legal and budgetary constraints more than on managerial indicators. We think this bureaucratic approach should evolve to another one with a higher degree of private sector management techniques.

Emotional Suppression to Regulated Empathy: From One Face of Control to Another

During the 1970s the neutral face of bureaucracy in the Australian national employment service was partially replaced by emotional expression. New recruits introduced emotions as a coping strategy in response to work intensification and insufficient training. As government policies subsequently weakened bureaucratic control mechanisms of internal labour markets while also adopting private sector management techniques, emotions became recognised as part of improved service delivery. Measurement and evaluation followed, moving the use of emotions full circle—from suppression, to autonomous use, to recognition, to prescription (or regulated empathy). Two key points are argued. Firstly, workers did not experience emotional labour equally. Secondly, part of the motivation for management s recognition and incorporation of emotions into policy must be perceived as an attempt to tighten behavioural controls over workers, through a customer service focus.

The British Labour Government's Reform of the National Health Service

The recent general election in Britain saw healthcare as the dominant issue amongst voters. The victorious Labour Party responded to this concern with a set of reforms designed to introduce greater private-sector involvement in the delivery of healthcare. These reforms are ill-thought-out. The standard of care in British private hospitals is below that found in public hospitals, whilst new contracting arrangements are likely to increase the administration costs within the system. Faith in private-sector management techniques is misplaced at a time when the real problem facing the NHS is that of capacity. The Labour Party is also committed to redefining some aspects of healthcare as a personal responsibility and not a right, moving Britain towards a more market-based healthcare system.

Alternatives to Competitive Tendering and Privatisation: A Case Study from the Australian Health Industry

The international trend towards economic and financial management reforms is well documented with most governments now being involved in public sector restructuring programs, which have at their core the aim of improving the quality of administrative functions through a more responsive approach by state agencies (OECD 1996). In nations with administrative systems derived from British models these efforts may be generally referred to as ‘the de-Sir Humphreying of the Westminister model’ (Hood 1990:105). In essence this approach has had three aims. First, it has attempted to diminish the role of thestate and make the bureaucracy more responsive to political leaders. Second, it has aimed for greater efficiency through the use of private sector management techniques. Third, it has focused on the citizen as a customer and service recipient (Aucoin 1990:16).

Transformation of ministries of health in the era of health reform: the case of Colombia.

Ministries of health are being called upon to lead major health reforms; at the same time they must reform themselves to become more modern institutions and assume new and different functions and roles in the more dynamic reformed system. The literature on public administration and on health reform has recommended many processes of institutional reform and development, building on private sector management techniques, popularized by 'reinventing government' and 'total quality management'. More recently, thoughtful insights have emphasized improving public management through a focus on creating 'public value'; on political, as well as administrative, leadership; improving institutional performance through strengthening the 'task networks' of organizations needed to achieve strategic objectives; and creating a learning culture within the organization. This article applies these recent approaches to the specific needs of ministries of health in order to improve their capacity to lead major health reforms. This combined approach is then used to analyze and make recommendations to the Ministry of Health in Colombia where the authors were providing technical support for a major new health reform.