Outsourcing internal audit services : an empirical study on Queensland public-sector entities

A study of Queensland public-sector entities suggests outsourcing of internal audit services to be extensive (88%), with 51% of respondent agencies adopting co-sourcing and 37% of the agencies fully outsourcing. Results suggest that internal audit outsourcing is largely adopted for non-financial reasons such as lack of technological know-how and service quality rather than financial reasons. Deficiencies of current governance arrangements concerning internal audit outsourcing include (1) a lack of audit committee involvement in outsourcing processes, particularly in co-sourcing entities, and (2) inadequate segregation of duties whereby the same senior management is involved in key arrangements including selection, approval, negotiation and evaluation of contractual performance.

Using job strain and psychological contract theories to predict employee wellbeing in a reformed public sector agency

This study investigates the Issues that contribute to employee wellbeing in a public sector agency having undergone substantial reform The research is based on a model that is initially demand-oriented, and is expanded to incorporate psychological contract breach and organisational justice. Hierarchical regression analyses were conducted on the 1,010 completed surveys The results confirm the value of the Job strain model (JSM) and that the inclusion of breach and fairness were worthwhile extensions of the JSM Future research may wish to extend this approach and incorporate more of the social aspects of the work situation m studies of employee wellbeing.

Market virtues and public failures : antecedents to public sector reform in the contract state

This paper considers the historical factors that have contributed to the pressures for reform in the Australian State of Victoria which proved to be more radical than paths taken by the Commonwealth Government and any other Australian states. As public management in Victoria made tentative steps towards market orientated practices, the inexperienced public officials, together with a mixture of political, economic, administrative and social factors made the government more vulnerable to a perceived need for reform. Australia, like the United Kingdom and New Zealand with which it shares similarities of government structure, commenced the path of reform in a tentative manner with major reforms being implemented by powerful leaders. Powerful reformers were Margaret Thatcher in the United Kingdom, a group of like minded politicians from Treasury in New Zealand and in the Australian State of Victoria, Jeff Kennett. Each capitalised on a sense of crises to move their reform agenda forward at a rapid pace. Victoria is offered as an illustration of how the past provides a means of understanding why Premier Jeff Kennett was able during the 1990's, to implement public sector reform into Victoria in such a dramatic way.

Integrating job stress and social exchange theories to predict employee strain in reformed public sector contexts

This research examines the organizational characteristics that contribute to employee wellbeing in public sector agencies that have undergone substantial organizational change. Two studies were undertaken, the first involving 2,466 police officers working in a state-based law enforcement agency, whereas the second comprised 1,010 occupationally diverse employees working in a State Government authority. The research was guided by a theoretical framework that begins with a model underpinning many large-scale job stress investigations—the job strain model (JSM)—and is expanded to incorporate widely used social exchange variables (i.e., psychological contract breach and organizational fairness). The results of hierarchical regression analyses from both studies confirm the value of the JSM. There was also strong support for extending the JSM to include the breach and fairness variables; however, proposed interactions between job demands and organizational fairness failed to add to the explanatory value of the model. The implications of these results particularly for public sector organizations that have undergone extensive reforms consistent with New Public Management are discussed.

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.

Connected but not online: a snapshot of generation Y in Australia

Much has been written in the United States about Generation Y and it adoption of, and attitudes towards, media and digital communication technologies.  But relatively little is known about this generation's attitudes to these things in Australia.  This paper provides a snapshot of media and technology use by year 2 and 3 public relations and journalism majors at Deakin University in Australia.  It is based on a survey conducted in March 2006 at the university's Waurn Ponds campus in Victoria.  Because of the nature of the sample, it should be noted that this is a snapshot of one group of students.  It is not possible to extrapolate these findings to other groups in other states or countries around the world.  That is the role of further research.  This survey does provide a revealing snapshot of one group of students at one place in time.  All of the students studied have a mobile phone and all have fast access to the Internet at university.  Almost all have access to the Internet at home (two thirds via broadband).  But they spend far less time on the Internet compared with their counterparts in the United States.  Almost all are avid consumers of broadcast news.  They prefer the print forms of books and magazines.  Yet they appear to be indifferent to the form of the newspaper they consume - print or online are equally acceptable.

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.

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.

A psychological contract perspective to the link between non-profit organizations' management practices and volunteer sustainability

This study applies the concept of the psychological contract to the relationship between management practices and volunteers. Formalization of the voluntary sector is impacting on volunteers’ experiences and may breach the psychological contract from the volunteers’ perspective. This mixed method study interviewed 67 volunteers and volunteer coordinators/administrators, and collected mail survey information from 152 volunteer organizations. The transactional management practices of keeping formal records and not paying volunteers out of pocket expenses are negatively associated with volunteer recruitment and retention. Alternatively, publicly recognizing volunteers through a volunteer newsletter supports volunteers’ relational expectations and is positively linked to adequate volunteer numbers. Our findings have important implications for the human resource development practices of non-profit organizations in dealing with their volunteers: they suggest that the relational expectations of volunteers are an important aspect of the psychological contract, which could be used by organizations as a framework for developing management practices that fit the volunteer ethos of trust and networks.

IT consultants' voluntary contract termination - a psychological contract perspective

This research explores the question why IT consultants terminate their employment contracts in a labour market with job drought, downsizing and salary cuts when they were among those who kept their jobs during layoffs. A process model for the maintenance of a psychological contract between employees and employers is presented, which combines the concept of psychological contract with a theory of the relation between intrinsic motivation and management practices and with theories of identity, self-esteem, influence and power. The research verifies and specifies the model based on a revelatory case study. The model helps explaining IT consultants’ behavior of voluntarily terminating their employment contracts beyond the crisis situation in the IT industry some years ago which motivated this research originally. It should assist managers in a more general context in avoiding practices, which might lead to their employees’ loss of intrinsic motivation and as a consequence to the loss of valuable employees for the organization.

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.

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.