Developing customer-focused public sector rewards schemes : evidence from the Botswana government's performance based reward system (PBRS)

Purpose – Governmental agencies are interested in improving the quality of their service delivery. One tool that has been used to manage their performance is performance based reward schemes (PBRS). The aim of this paper is to examine the degree to which a sample of these plans, used within the Botswana public sector, is customer-focused. Being more customer-focused should deliver improved public sector service quality.

Design/methodology/approach – This study carried out an evaluation of a sample of Botswana PBRS plans, using multidimensional content analysis undertaken by four expert “evaluators”, to identify the degree to which the PBRS were customer-focused.

Findings – Classifying PBRS plans as being customer-focused was difficult, as the plans had few objectives related to customer experiences or outcomes. Those that did had poorly defined performance objectives, their targets were not specific, or there was limited explicit role responsibility. Thus, PBRS plans seemed not to focus on improving customer outcomes.

Research limitations/implications – The PBRS evaluated do not appear to be customer-focused and, thus, would have limited ability to improve customer experiences (i.e. public sector quality). Further research is needed in other countries to see whether these results are generalisable, and whether service levels vary with more customer-focused PBRS plans.

Practical implications – The results suggest improvements that could be adopted by organisations seeking to make their PBRS schemes customer-focused.

Originality/value – Extensive research suggests that PBRS plans can be used to improve service quality. Most of the studies have focused on the employees' perspectives and have not looked at the degree of customer orientation within the plans.

Organizational change in the public sector: augmenting the demand control model to predict employee outcomes under New Public Management

This study identifies the environmental and personal characteristics that predict employee outcomes within an Australian public sector organization that had, under New Public Management (NPM), implemented a variety of practices traditionally found in the private sector. These are more results-oriented, and their adoption can be accompanied by increased strain for employees. The current investigation was guided by two complementary theories, the Demand Control Support (DCS) model and Conservation of Resources (COR) theory, and sought to examine the benefits of building on the DCS to include both situation-specific stressors and internal coping resources. Survey responses from 1,155 employees were analysed. The hierarchical regression analyses indicated that both external and employee-centred variables made significant contributions to variations in psychological health, job satisfaction, and organizational commitment. The external resources, work based support and, to a lesser extent, job control, predicted relatively large proportions of the variance in the target variables. The situation-specific stressors, particularly those involving harmful management practices (e.g., insufficient time to do job as well as you would like, lack of recognition for good work), made significant contributions to the outcome measures and generally supported the process of augmenting the generic components of the DCS with more situation-specific variables. In terms of internal resources, problem and emotion-based coping improved the capacity of the model to predict psychological health. The results suggest that the impact of NPM can be ameliorated by incorporating the dimensions of the augmented DCS and coping resources into the change programme.

New forms of organising : changing structures, processes and boundaries in a public sector institution

Globalisation, deregulation, privatisation, and advances in communications technologies have intensified competition and impacted on the structures, processes and boundaries that define organisations. Increased competition at both the local and global level calls for increased responsiveness and flexibility, and continuous improvement and innovation. As organisations endeavour to become more attentive and responsive to environmental trends, and customer needs and expectations, they are experimenting with different forms of organising. This has included flattening structures, devolving decision-making responsibility and encouraging greater collaboration and knowledge transfer across functional areas.

The William Angliss Institute of TAFE operates in the post-secondary sector which has experienced significant changes over the past decade as a result of: wide-ranging public sector reforms imposed by successive governments; budgetary cutbacks; accountability and performance improvement pressures; increased national and international competition, industrial relations changes and more demanding, sophisticated customers. This paper draws on the INNFORM Study's three organisational design dimensions of structure, process, and boundaries to examine the nature and degree of change that has taken place at the Institute. Case study findings indicate that while William Angliss has implemetted changes across the three design dimensions, the depth and breadth of these vary and this has impacted on overall performance outcomes. Its experience suggests that even when an organisation adopts a systemic approach and implements changes simultaneously across structure, process and boundaries, optimal performance benefits will not accrue unless these elemental changes are mutually reinforcing and complementary. It also suggests that improvement to processes, particularly communications and human resources practices must be an overarching consideration, as complementary change across all three design dimensions depends ultimately on the contribution and commitment organisational members are prepared to make.

Combating the impact of managerialism on public sector employees

With the widespread and continuing adoption of managerialism in the public sector, ignoring the impact of change on employees could prevent managerialism from achieving its’ goals. This study investigates the efficacy of an augmented demand-control-support (D-C-S) model in predicting three of the key employee outcomes associated with organisational change - psychological health, job satisfaction and organisational commitment. Analyses of a survey of 207 employees in an Australian public sector organisation found that the augmented D-C-S model explained a significant proportion of the employee outcomes. The most important variables were work-based social support and job control. The results indicate that the augmented D-C-S model provides a useful tool for managers considering or implementing organisational change in the public sector.

An investigation of corporate image, customer satisfaction and loyalty-more than just monkey business

Prior research into corporate branding, of which corporate image is a key construct, has focused primarily on products. There has, however, been limited academic research focusing on corporate branding in the leisure services sector. However, in an increasingly competitive environment, leisure services need to treat branding and image management as more than just "monkey business". This study addresses this by developing a model and empirically testing the relationships between corporate image, the dimensions of corporate image, customer satisfaction and loyalty in the context of a Zoological garden. As predicted, a strong relationship was found between corporate image, customer satisfaction and customer loyalty. Our results also suggest that three dimensions of corporate image (adventure, mission/vision and agreeableness) explain a significant propOliion of the variance in satisfaction and loyalty.

Conflict of interest in policing and the public sector

Conflicts of interest are a key factor in the contemporary decline of trust in government and public institutions, eroding public trust in government and democratic systems. Drawing on two unique empirical studies involving policing and the broader public sector, this paper explores the meaning and dimensions of conflict of interest by examining public complaints about conflict of interest and providing distinctive insights into the nature of conflict of interest as a problem for public sector ethics. The paper analyses and explores appropriate regulatory and management approaches for conflict of interest, focusing on three elements: (1) dealing with private interests that are identifiably problematic in the way they clash with the duties of public officials; (2) managing conflicts as they arise in the course of public sector work (manifested in preferential and adverse treatment, and other problematic areas); and (3) developing ethical and accountable organisational cultures. It is concluded that effective and meaningful public sector ethics in the pursuit of the public interest must be based on an ethos of social accountability and a commitment to prioritise the public interest in both fact and appearance.

Improving employee outcomes in the public sector

Purpose – The purpose of this paper is to examine the efficacy of the demand-control-support model, augmented with employee perceptions of organisational justice and degree of met expectations.

Design/methodology/approach – Data were collected from 128 public sector employees working in a large state police force operating under many of the elements of new public management. Hierarchical multiple regression analyses were conducted using four indicators of occupational strain: employee wellbeing, job satisfaction, organisational commitment and intent to quit.

Findings – The results of this study suggest that the demand-control-support model has great utility in identifying those aspects of the work environment associated with employee strain. Job control and social support at work in particular were the most consistent predictors. In contrast, the expectation and justice variables failed to make significant contributions to the model in all but one analysis providing no support for the “injustice as stressor” perspective.

Research limitations/implications – Although a cross-sectional design was utilized, these results highlight the value of applying the parsimonious demand-control-support model to a wider set of outcomes, especially in a public sector environment.

Practical implications – The results emphasize the importance of the relatively neglected “softer” work characteristics support and control. In order to combat the ill-effects of organisational reforms and prompt a shift towards the public value approach, managers operating under elements of new public management should ensure that adequate social support at work is available and that employee control is commensurate with their demands.

Originality/value – This study examined an augmented demand-control-support model and identified that whilst perceptions of justice can influence employee attitudes and wellbeing, the demand, control, and support variables remain the most influential factors with regard to public sector employee attitudes and wellbeing.

Work differences by sector for medical specialists : evidence of a public sector ethos

Work-related characteristics representative of the ethos for medical specialists have been relatively unexplored, particularly compared to the array of research on primary care physicians. Analyses of 4,166 specialists, from the first wave of the Medicine in Australia: Balancing Employment and Life (MABEL) study, revealed that specialists have a choice between either challenging work in the public sector or straightforward yet well-paid work in the private sector. Despite more challenging conditions, health and intent to leave were not key issues for specialists in the public sector, with specialists in private rooms more likely to leave the profession despite more positive work conditions. This result may be due to the public sector ethos suggested in other studies. Ultimately this study provides evidence that suggests differences in the ethos between medical specialists in the public and private sectors.

Servant leadership, trust, and the organizational commitment of public sector employees in China

© 2014 John Wiley & Sons Ltd. So-called servant leaders strive selflessly and altruistically to assist others before themselves, work to develop their followers' greatest potential, and seek to benefit the wider community. This article examines the trust-based mechanisms by which servant leadership influences organizational commitment in the Chinese public sector, using data from a survey of civil servants. Quantitative analysis shows that servant leadership strongly influences affective and normative commitment, while having no impact on continuance commitment. Furthermore, we find that affective trust rather than cognitive trust is the mechanism by which servant leadership induces higher levels of commitment. Our findings suggest that in a time of decreasing confidence levels in public leaders, servant leadership behaviour may be used to re-establish trust and create legitimacy for the Chinese civil service.

Financial accounting reforms in the Australian public sector: an episode in institutional thinking

In recent years in Australia, accounting regulations have been developed that require the adoption of commercial accounting and reporting practices by public-sector organisations, including the recognition of cultural, heritage and scientific collections as assets by non-profit cultural organisations. The regulations inappropriately apply traditional accounting concepts of accountability and performance, notwithstanding that the primary objectives of many of the organisations affected are not financial. This study examines how this was able to occur within the ideas outlined in Douglas’s (1986) How Institutions Think. The study provides evidence to demonstrate that the development; promotion, and defense of the detailed accounting regulations were each constrained by institutional thinking and, as a result, only certain questions were asked and many problems and issues associated with the regulations were not addressed. Thus, it seeks to further our understanding of the nature and limits of change in accounting and the role of institutions in promoting and defending changes to accounting practice.

An empirical investigation of customer satisfaction and loyalty across two divergent bank segments

Customer satisfaction is an important indicator for customer loyalty, and numerous studies have identified the benefits that customer loyalty delivers to an organisation. Nevertheless, research also suggests that satisfied customers still defect. This study investigated the relationship between customer satisfaction and loyalty intentions within the Australian banking industry for two distinct customer segments, retirees and university students. Results indicate no significant difference in the satisfaction levels of either group; however, there were differences with respect to two of the five behavioural intentions dimensions: loyalty and switch. Satisfaction was found to have a significant impact on three of the five behavioural intentions dimensions: loyalty, pay more and external response, suggesting that management should initiate service policies aimed at securing improvements in customer satisfaction. However, there are also other constructs at work aside from satisfaction in determining future behavioural intentions.

Which work characteristics predict employee outcomes for the public-sector employee? An examination of generic and occupation-specific characteristics

The wide-ranging changes that have occurred in the public sector over recent years have placed increasing demands on public-sector employees. A survey of employees within a relatively commercially-oriented public-sector organization in Australia was used to test a demand-oriented generic model of employee well-being and a variety of situation-specific variables. The presence of support at work and the amount of control an employee had over their job were found to be key predictors of employee-level outcomes. Perceptions of pay and the perception of a lack of human resources (HR) were also found to predict employee outcome variables. The results emphasize the impact that middle managers and HR managers can have in terms of reducing the detrimental employee effects that can be caused by the introduction of new public management (NPM) and the potential for a positive impact on employees. In particular, public-sector managers can use the design of jobs and the development of social support mechanisms, such as employee assistance programmes, to maintain, if not improve, the quality of working life experienced by their employees. More broadly, this study has found that the job strain model is a useful tool in a public-sector environment and is likely to be of increasing utility with the continuing introduction or consolidation of NPM over time. Managing these issues in the new public sector could be a key means of protecting the key resource of the Australian public sector - the employees.

The emergence of the public sector expectations gap

This paper focuses on the continuing worldwide phenomenon of homogenisation of audit rules, regulation and procedures between the government and private sectors. The observations are informed by Pusey’s (1991) criticisms of ‘economic rationalism’ as the driving mechanism behind public sector reforms in Australia. The presumed superiority of commercial audit is questioned in association with the work of Hopwood (1983, 1998), Otley and Pierce (1996) and, Power (1992, 1994, 1995, 1996, 1997) that contextualise the role of audit. In the private sector audit there continues to be an ‘expectations gap’ arising from commercial pressures and a rhetorical support for the public interest. It is contended that audit quality in the public sector is driven by a different perception of public interest that has been eroded with the advent of economic rationalism. The consequent emergence of a public sector audit ‘expectations gap’ is an amalgam of new components particular to the government audit environment and, aspects of the private ‘expectations gap’ which have been transplanted into the public domain.