Human Resource Management in a Public-Sector Context

Human resource management (HRM) scholars studying HRM in a public-sector context hold that the public-sector context is distinctive despite decades of reforms oriented on private-sector management principles. Distinctive characteristics include (1) the multiple goals that public organizations serve, making vertical alignment of HRM difficult; (2) the constraints on managerial autonomy resulting from red tape and trade union involvement; and (3) employees’ public service motivation, which is antithetical to performance management. However, there is a lack of evidence on public- versus private-sector differences in the human resource practices that are actually applied. Using Cranet 2014/15 survey, this chapter examines whether public-sector institutional characteristics affect the application of human resource practices as theoretically expected. The results show that, compared to the late 1990s, HRM in public organizations continues to differ in some respects from HRM in private-sector organizations, but not in other respects. The traditional belief that public-sector HRM is not outright aimed at efficiency and effectiveness still holds. The public service ethic and the resilience of collectivized industrial relations likely contribute to this. However, the traditional public-sector HRM orientation on employee well-being is less distinctive, which will likely affect the position of public organizations in the labor market.