Reforming Social Services in Hong Kong: The Role of Contracting and Performance Management in the Non‐Profit Sector

Abstract

Contracts and performance management, along with the concept of consumerism, have become the fundamental metaphors for New Public Management (NPM) and key changes in the public service. 'Doing well while doing good' and finding generally acceptable accountability measures for social services have become the perennial aspirations of planners, service providers and funders. This article examines the contingent factors and rationales behind the quality movement and recontracting exercise in reforming the delivery of personal social service programs in Hong Kong within the framework of New Public Management (NPM). It explains the use of long-term relational contracts rather than the standard business contracts between the government as funder and non-profit organisations as service providers. It also deals with the complex relationships among quality issues, quality standards, consumerism, accountability, performance indicators, and performance management.

Program design, implementation and performance: the case of social health insurance in India

“…While the conditions promoting sub-optimal performance due to innate features of the health sector cannot be eliminated, their undesirable effects can be contained and even overcome through careful design of effective governance arrangements (Williamson, 2005). Effective governance of implementation includes formal mechanisms such as monitoring, authority and penalty, as well as informal mechanisms such as reciprocity, trust and relational norms (Wong, 2008).…”

Permission-based Leadership and Change Management in Hong Kong's Nongovernment Organisations

“…These subsidised NGOs work together with their respective government departments in their designated areas of need. In reality, their work and policies are strongly influenced by the government departments and are aligned to the general social climate as shaped by their administrators (Wong, 2008;HKCSS, 1987 andScott, 2003;Pearson, 2005).…”

“…Government subsidies provide about 60% to 80% of an NGO's operating costs, and roughly 20% comes from programme income (Wong, 2008). Charitable donations and foundation grants constitute a small fraction of the NGO's revenue stream.…”

Challenges facing the elderly care industry in Hong Kong: the shortage of frontline workers

“…In fact, elderly service providers are facing increasing difficulty to keep pace with the mass demand for their services. With such high demand and limited funding being allocated, elderly service workers are often forced to overwork but are underpaid and experience high work stress [ 4 ]. Elders, in turn, are being put at risk for substandard services caused by insufficient funding, mismatch of benefits allocation, the lack of manpower, highly stressed staff and much more.…”