Employment, privatization, and managerial choice: Does contracting out reduce public sector employment?

Fernández, Sergio; Smith, Craig R.; Wenger, Jeffrey B.

doi:10.1002/pam.20227

Cited by 47 publications

(58 citation statements)

References 16 publications

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“…It has been used to improve the quality of services as well as to reduce the cost of public services. However, Fernandez, Smith, and Wenger (2006) found that contracting out contributes to a drop in full-time employment in the public sector and an increase in part-time public employment. A study on privatization in Germany indicates that members of the public service tend to oppose privatization, because they feel that privatization may reduce the status and role of public service as well as threaten their job security (Legge & Rainey, 2003).…”

Section: Two Types Of Public Administrative Reformmentioning

confidence: 93%

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New Link between Administrative Reforms and Job Attitude: The Role of Interpersonal Trust in Peers as a Mediator on Organizational Commitment

Park

2011

International Review of Public Administration

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Since the 1997 Korean financial crisis, a wide range of administrative reforms in Korea have taken place. The new public management, which emphasizes improving organizational performance, has been the key factor of the Korean administrative reforms. These administrative reforms affect organizational commitment through organizational trust within public organizations. Prior studies focused on examining how supervisory trust mediates the relationship between administrative reforms and organizational commitment. This study focuses on the role of interpersonal trust in coworkers, which prior studies have not examined. Results indicate that interpersonal trust in coworkers mediates the relationship between administrative reforms such as job insecurity, empowerment and participation, and organizational commitment. Professional reforms are more related to organizational commitment than market-oriented reforms.

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Section: Two Types Of Public Administrative Reformmentioning

confidence: 93%

“…To begin with, contracting-out may have a negative impact on the trust in management. Public employees are dissatisfied with reduction of their role in public service, because privatization decreases the number of services directly provided by the public division (Fernandez et al, 2006).…”

Section: Contracting Outmentioning

confidence: 99%

New Link between Administrative Reforms and Job Attitude: The Role of Interpersonal Trust in Peers as a Mediator on Organizational Commitment

Park

2011

International Review of Public Administration

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“…Chandler and Feuille (1994) have provided a more sophisticated view on unions showing that adversarial union relations with city management increase the likelihood of contracting out when compared to no union at all; conversely, cooperative relations between union and city have the opposite effect. Finally, Fernandez, Smith, and Wenger (2007) decompose public employees and find that contracting public services to the for‐profit sector generates a decrease in full‐time public employment but an increase in part‐time employment.…”

Section: Theorymentioning

confidence: 99%

The Effects of Administrative Professionals on Contracting Out

2008

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An often-debated subject in the public administration literature concerns why some units contract out more than others. The present article decomposes the influence of public employees on municipal contracting as different types of employees have different skills and incentives and must be treated accordingly. First, the analysis shows that the apparent negative relationship between public employees in general and municipal contracting is partly reflecting the fact that the number of public employees is endogenous to contracting. Second, we suggest that administrative professionals and not bureaucrats in general have a positive impact on contracting. This is because administrative professional skills are vital for carrying out a tender and because contracting is essentially a part of administrative professionals' bureau-shaping interests. Finally, we find support for two often-discussed claims in the literature, namely, the influence of prosperity and ideology.

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“…The author later on mentioned that the challenges of outsourcing such as, the need for public sector organisations to measure performance, administer contracts and determine levels of responsibility or accountability can translate into high costs for the local authorities. Fernandez et al (2012) highlighted that the argument for outsourcing of public services has clear disadvantages for the magnitude of the public workforce and public employment in that it reduces it. Outsourcing functions to the private sector saves money most of the time and most of the savings tend to disadvantage the employees of the local authorities.…”

Section: Financial Implications Of Outsourcing On Lasmentioning

confidence: 99%

Causes of Poor Service Delivery and the Feasibility of Outsourcing to Improve Services in Local Authorities

Wadesango¹,

Mhaka²,

Chikomo³

et al. 2018

JEBS

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This theoretical paper was undertaken to ascertain the causes of poor service delivery and to establish if outsourcing of public service delivery could be used to improve local Authority services. It interrogated and critiqued documents on what other researchers in their different contexts had established in view of the feasibility of outsourcing as a strategy to improve service delivery. It emerged in this study that political interference, lack of citizen participation. lack of funds and corruption were the main causes of poor service delivery in local authorities. Therefore, outsourcing was seen to bring quality and affordable services for the public while costs savings and emergence of hidden costs were the financial implications unveiled for the local authorities (LAs). Social costs, accountability for public service delivery and quality shading were cited to be the outsourcing challenges. It also emerged in this study that outsourcing can increase service quality and provide affordable services for the public. Taking into account the information that was accumulated and examined, the researchers came to the conclusion that the current services being offered by local authorities are very poor and this is attributed to many causes such as political interference, lack of citizen participation, lack of funds and corruption. The study therefore, concludes that outsourcing could be a feasible option to use to improve service delivery by local authorities.

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Employment, privatization, and managerial choice: Does contracting out reduce public sector employment?

Abstract: We examine the effects of governments ' use

Cited by 47 publications

References 16 publications

New Link between Administrative Reforms and Job Attitude: The Role of Interpersonal Trust in Peers as a Mediator on Organizational Commitment

New Link between Administrative Reforms and Job Attitude: The Role of Interpersonal Trust in Peers as a Mediator on Organizational Commitment

The Effects of Administrative Professionals on Contracting Out

Causes of Poor Service Delivery and the Feasibility of Outsourcing to Improve Services in Local Authorities

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