Public Sector Organizations and Cultural Change

Since the height of the privatization debate in the 1990s, changes in government policy have resulted in significant transformation in the public sector. Some organizations have made the transition from government bureaucracy to business venture successfu

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Public Sector Organizations and Cultural Change Chris Bilney and Soma Pillay

PUBLIC SECTOR ORGANIZATIONS AND CULTURAL CHANGE Copyright © Chris Bilney and Soma Pillay 2015 Softcover reprint of the hardcover 1st edition 2015 978-1-137-45080-7 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission. In accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6-10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. First published 2015 by PALGRAVE MACMILLAN The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire, RG21 6XS. Palgrave Macmillan in the US is a division of Nature America, Inc., One New York Plaza, Suite 4500, New York, NY 10004-1562. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. E-PDF ISBN: 978-1-137-44534-6 ISBN 978-1-349-57018-8 ISBN 978-1-137-44534-6 (eBook) DOI: 10.1057/9781137445346 Distribution in the UK, Europe and the rest of the world is by Palgrave Macmillan®, a division of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Library of Congress Cataloging-in-Publication Data Bilney, Chris. Public sector organizations and cultural change / Chris Bilney and Soma Pillay. pages cm Includes bibliographical references and index. ISBN 978-1-349-57018-8 (alk.paper) 1. Organizational change. 2. Administrative agencies—Reorganization. 3. Civil service reform. 4. Public administration. I. Pillay, Soma, 1967– II. Title. JF1525.O73B55 2015 331.7'61355—dc23 2015016040 A catalogue record for the book is available from the British Library.

Contents

List of Illustrations

vii

Acknowledgments

ix

1

The Historical Context of the Public Sector Culture

1

2

Privatization, Corporatization, Bureaucracies, and Change

15

3

Perspectives on Institutional Theory

59

4

Hope, Frustration, and Despair: Some Reflections

81

5

Psychological Contract, Organizational Citizenship, and Double Bind

101

6

Stress and Coping during Change

127

7

Conclusion

143

References

165

Index

181

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List of Illustrations

Figures 2.1 2.2 5.1

The transition from traditional bureaucracy to privatization— a conceptual framework

29

The difficulties of public sector culture change as a barrier to privatization

34

Critical components