To What Extent Can Private Sector Approaches to Human Resource Management Be Directly Transferred Into the Public Sector? an Illustration of the Nhs Case
TO WHAT EXTENT CAN PRIVATE SECTOR APPROACHES TO HUMAN RESOURCE MANAGEMENT BE DIRECTLY TRANSFERRED INTO THE PUBLIC SECTOR? AN ILLISTRATION OF THE NHS CASE.
INTRODUCTION
Since the advent of new public management reforms, private sector managerial approaches are fast gaining attention in various public sectors. This is due to the belief that on-going global economic constraints and fiscal crises are demanding for more organisational effectiveness with minimal cost, and private sector practices are believed to be more efficient than its public sector counterpart. It is within this context that human resource management practices are being transferred into the public sector for better performance.
However, several literatures have debated the numerous differences between the public and private sector and often concluded that effectiveness of privately transferred human resource practices into the public sector are likely to be strained (Rainey et. al., 1976). One argument is that public sector goals as opposed to its private counterpart, are unclear and intangible and therefore, outcome becomes difficult to measure towards performance. Moreover it is also argued that public sector workers are inherently motivated and as such cannot be monetarily motivated towards performance. Also, managers in the public sectors are often argued to have limited autonomy posed by politicians leading to a strain on the performance process. And finally, the constant financial deficit in the public sector has also been argued to limit its performance and reward systems.
The case of the NHS as a public sector in the UK will be used to answer the above question. It will first start with a brief description of the NHS, and then provide an overview of what human resource management means and what its practices are. The effects of these practices (performance management, appraisals, and rewards) would then be reviewed in specific NHS examples in relation to the contrasting public
INTRODUCTION
Since the advent of new public management reforms, private sector managerial approaches are fast gaining attention in various public sectors. This is due to the belief that on-going global economic constraints and fiscal crises are demanding for more organisational effectiveness with minimal cost, and private sector practices are believed to be more efficient than its public sector counterpart. It is within this context that human resource management practices are being transferred into the public sector for better performance.
However, several literatures have debated the numerous differences between the public and private sector and often concluded that effectiveness of privately transferred human resource practices into the public sector are likely to be strained (Rainey et. al., 1976). One argument is that public sector goals as opposed to its private counterpart, are unclear and intangible and therefore, outcome becomes difficult to measure towards performance. Moreover it is also argued that public sector workers are inherently motivated and as such cannot be monetarily motivated towards performance. Also, managers in the public sectors are often argued to have limited autonomy posed by politicians leading to a strain on the performance process. And finally, the constant financial deficit in the public sector has also been argued to limit its performance and reward systems.
The case of the NHS as a public sector in the UK will be used to answer the above question. It will first start with a brief description of the NHS, and then provide an overview of what human resource management means and what its practices are. The effects of these practices (performance management, appraisals, and rewards) would then be reviewed in specific NHS examples in relation to the contrasting public
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