Improving public sector productivity is important but challenging task. Thornhill (2006) has recognized three main reasons for why public sector productivity is vital. First, the public sector is considerable service provider that produces social services (affecting labour quality) and business services (affecting cost of inputs) in the economy. Second, the public sector uses tax resources in its service production. Third, the public sector is a major employer. Thus, changes in public sector productivity can have significant implications for the economy (Linna, Pekkola, Ukko and Melkas, 2010). Yet, problems in public sector productivity continue to be a major developmental issue all around the world (Dunleavy and Carrera, 2013; Obeng, 2012). For example, Milakovich (1990) has stated that only few governments have succeeded in improving the quality of service, productivity, and reducing costs at the same time. Problems in public sector productivity raise the following question: Why managing the public sector productivity is difficult?
This study tries to shed a light on the problematic nature of the public sector productivity management by conducting an empirical research. By examining goverment agencies' productivity in Finland between years 2006-2010 and Great Britain's sectoral productivity it can be studied how changes in labour resources and total inputs will reflect to outputs, work productivity, and total productivity. In one hand, whether or not cutting the labour resources and total inputs improve productivity in public sector. On the other hand, will increasing the labour resources or total inputs mean that productivity will fall or raise. It is also interesting to see whether or not improved labour productivity will quarantee increasements in total productivity. After analysing statistically the relationships between labour resources, total inputs, outputs, work productivity and total productivity a premilinary insights from the challenges of productivity management are collected with interviews from goverment officials.
References
Dunleavy, P. and Carrera, L. 2013) "Growing the productivity of government services", Northampton, Mass.: Edward Elgar
Linna, P. Pekkola, S, Ukko, J. and Melkas, H. (2010),"Defining and measuring productivity in the public sector: managerial perceptions", International Journal of Public Sector Management, Vol. 23 Iss 3 pp. 300 - 320
Milakovich, Michael E. (1990), "Total quality management for public sector productivity improvement." Public Productivity & Management Review: 19-32.
Obeng, P. (2012), “Changing attitudes and behaviour in the public service for enhanced productivity: The role of the chief executive,” A presentation at the conference of chairpersons and CEOs of public boards and organisations, Capital View Hotel, Koforidua, Ghana, Friday, March, 9
Thornhill, D. (2006), “Productivity attainment in a diverse public sector”, paper presented at the Institute of Public Administration Seminar on Promoting Productivity in a Diverse Public Sector, Dublin, 21 April.
