Schizophrenic Public Administration Reform in Hungary. Tension between anti-NPM systemic and pro-NPM organizational reforms

The aim of this paper is to shed the light on the relationship between New Public Management and Hungary’s Zoltán Magyary Public Administration Development Programme. As will be shown, the Magyary Programme has a dual structure. The systemic reforms run counter to the NPM philosophy because the main goal is the centralization of public administration, while NPM clearly advocates decentralization. At the same time, reform proposals on the organizational level conform to NPM. The inconsistencies in the Magyary Programme itself and the probable political and organizational resistance towards its proposals could delay the introduction of reforms on the organizational level.

Schizophrenic public administration reform in Hungary. Tension between anti-NPM systemic and pro-NPM organizational reforms

The aim of the paper is to highlight the main characteristics of the recent Hungarian public administration reform, as well as to reveal the inconsistent nature of some of its elements and to describe the connected risks. The starting point of the article is the Magyary Zoltán public administration development programme. The reform steps are compared to the ideal type NPM approach. The Hungarian public administration reform can be characterized by strong centralization and the revitalization of Hungarian anti-liberal traditions at macro level, and by the support of the enhancement of market rules and management at micro level.

Introduction of soft budget constraint as an analyzing tool into public management. The case of the Hungarian public administration reform

Public management reforms are usually underpinned by arguments that they will make the public administration system more effective and efficient. In practice, however, it is very hard to determine whether a given reform will improve the efficiency and effectiveness of the public administration system in the long run. Here, I shall examine how the concept of the soft budget constraint (SBC) introduced by János Kornai (Kornai 1979, 1986; Kornai, Maskin & Roland 2003) can be applied to this problem. In the following, I shall describe the Hungarian public administration reforms implemented by the Orbán government from 2010 onward and analyze its reforms, focusing on which measures harden and which ones soften the budget constraint of the actors of the Hungarian public administration system. In the literature of economics, there is some evidence-based knowledge on how to harden/soften the budget constraint, which improves/reduces the effectiveness and hence the efficiency of the given system. By using the concept of SBC, I also hope to shed some light on the rationale behind the Hungarian government’s introduction of such a contradictory reform package. Previously, the concept of SBC was utilized narrowly in public management studies, mostly in the field of fiscal federalism. My goal is to apply the concept to a broader area of public management studies. My conclusion is that the concept of SBC can significantly contribute to public management studies by deepening our knowledge on the reasons behind the success and failure of public administration reforms.

Content and drivers of performance management in agency-type organizations of the hungarian public administration

The improving performance of public administration and the reform of public financing system have been on agenda in Hungary for many years, in accordance with the international trends. However, governments have not expected and supported creating of a performance-oriented public administration in a comprehensive and explicit way. Nevertheless, there are bottom-up initiatives at organizational level, which target performance-oriented organizational function. The research focuses on organizations of central public administration where the successful application of performance management methods is most likely based on the international literature. These are the so called agency-type organizations, which are in Hungary called autonomous state-administration organizations independent of the Government (e.g. Hungarian Competition Authority), government bureaus (e.g. Hungarian Central Statistical Office), and central offices subordinated to the government (either the cabinet or a ministry) (e.g. Hungarian Meteorological Service). The studied agencies are legally independent organizations with managerial autonomy based on public law. The purpose of this study is to get an overview on organizational level performance management tools applied by Hungarian agencies, and to reveal the reasons and drivers of the application of these tools. The empirical research is based on a mixed methods approach which combines both quantitative methods and qualitative procedures. The first – quantitative – phase of the author’s research was content analysis of homepages of the studied organizations. As a results she got information about all agencies and their practice related to some performance management tools. The second – qualitative – phase was based on semi-structured face-to-face interviews with some senior managers of agencies. The author selected the interviewees based on the results of the first phase, the relatively strong performance orientation was an important selection criteria.

Human resources management, citizenship behavior, and turnover intention in the portuguese public administration

Framed by a social exchange perspective, this study address the issue of whether positive employees’ perceptions about human resource management practices influence positive attitudes and behaviour. We hypothesize that human resource management practices (HRMP) have a significant negative effect on intention to voluntary leave the organization and a positive effect on organizational citizenship behaviour (OCB), and that OCB could mediate the relationship between HRMP and turnover intention. A sample of 165 employees from the Portuguese public administration participated in the study. Data was analysed through descriptive statistics, confirmatory factor analysis and hypotheses were tested using single and multiple linear regressions. Results indicate that HRMP is positively associated with OCB, but only internal communication practice is highly valued by Portuguese public employees and successfully predicts OCB. HRMP also show a positive association with turnover intention but only celebration and recognition practices are predictors of turnover intention. Contrary to our hypothesis OCB did not acted as mediator between HRMP and turnover intention. Some suggestions on managerial human resource practices were proposed as well as some main questions raised in the Portuguese public administration context.

The administration of unemployment insurance and the public employment service in Germany, January, 1938,

Foreword signed: Joseph P. Harris, director of research, Committee on Public Administration, Social Science Research Council.

Turbocharging Networks in the Public Sector

Networks have come to occupy a key position in the strategic armoury of the government, business and community sectors and now have impact on a broad array of policy and management arenas. An emphasis on relationships, trust and mutuality mean that networks function on a different operating logic to the conventional processes of government and business. It is therefore important that organizational members of networks are able to adopt the skills and culture necessary to operate successfully under these distinctive kinds of arrangements. Because networks function from a different operational logic to traditional bureaucracies, public sector organizations may experience difficulties in adapting to networked arrangements. Networks are formed to address a variety of social problems or meet capability gaps within organizations. As such they are often under pressure to quickly produce measurable outcomes and need to form rapidly and come to full operation quickly. This paper presents a theoretical exploration of how diverse types of networks are required for different management and policy situations and draws on a set of public sector case studies to understand/demonstrate how these various types of networked arrangements may be ‘turbo-charged’ so that they more quickly adopt the characteristics necessary to deliver required outcomes.

Performance measurement and feedback in a public sector program

Establishing a framework for measuring the performance of public sector programs is fraught with dangers. Many public sector organisations are satisfied with measuring activity in programs and fail to see the need for establishing a framework that will meet the needs of participants and measure outcomes as well as activities. This paper explores how a government department in Queensland went about establishing a performance management framework to measure the outcomes and activities in a program that was a public private partnership. Findings indicate that using an iterative consultative approach performance measure can be put in place that are meaningful and assist the participants to review the program.

Who or what decides how stakeholders are optimally engaged by governance networks delivering public outcomes?

As the problems involving infrastructure delivery have become more complex and contentious, there has been an acknowledgement that these problems cannot be resolved by any one body working alone. This understanding has driven multi-sectoral collaboration and has led to an expansion of the set of actors, including stakeholders, who are now involved in delivery of infrastructure projects and services. However, more needs to be understood about how to include stakeholders in these processes and the optimal ways of developing the requisite combination of stakeholders to achieve effective outcomes. This thesis draws on stakeholder theory and governance network theory to obtain insights into how three networks delivering public outcomes within the Roads Alliance in Queensland engage with stakeholders in the delivery of complex and sensitive infrastructure services and projects. New knowledge about stakeholders will be obtained by testing a model of Stakeholder Salience and Engagement which combines and extends the stakeholder identification and salience theory (Mitchell, Agle, and Wood, 1997), ladder of stakeholder management and engagement (Friedman and Miles, 2006) and the model of stakeholder engagement and moral treatment of stakeholders (Greenwood, 2007). By applying this model, the broad research question: “Who or what decides how stakeholders are optimally engaged by governance networks delivering public outcomes?” will be addressed. The case studies will test a theoretical model of stakeholder salience and engagement which links strategic management decisions about stakeholder salience with the quality and quantity of engagement strategies for engaging different types of stakeholders. The outcomes of this research will contribute to and extend stakeholder theory by showing how stakeholder salience impacts on decisions about the types of engagement processes implemented. Governance network theory will be extended by showing how governance networks interact with stakeholders through the concepts of stakeholder salience and engagement. From a practical perspective this research will provide governance networks with an indication of how to optimise engagement with different types of stakeholders.