Public Value, Private Interest: Can quality management address the challenges to government performance identified by Public Choice Theory?

Abstract

Governments spend billions in tax revenue each year in pursuit of public value. However income is determined via legislation not performance and the integrity of resource allocation decisions is undermined by lack of accountability. This study investigates whether the principles and practices of quality management can mitigate challenges to government performance identified by Public Choice Theory. The study used a mixed-methods multiple case-study to determine the relationship between quality practice uptake, organisational quality mandates and the values staff expressed about their work in Australian social welfare services. Quality scores were established using a priori coding of practice alignment with the International Standard for Quality Management Systems, ISO9000. Scores were based on observation of contract documents and semi-structured interviews with staff across eleven social welfare programs. Staff values were inductively derived from their language choices in interview using Appraisal Analysis and Grounded Theory coding. Quality scores were then tested for any statistical relationship with staff values. Average quality score across social welfare programs was low, with government agencies scoring lower than non-government agencies, and ISO9000 principles relating to leadership, staff engagement, and continuous improvement scoring below average. Staff values predicted higher staff quality scores, but lost statistical significance when quality mandate scores were included in mediation analysis. When aligned with ISO9000 principles, organisational quality mandates were statistically significant predictors of both staff quality scores and staff values, indicating that staff values and narratives are shaped by quality mandates that engage and empower staff, in ways similar to ISO9000 principles. This study provides evidence that quality management can address rational self-interest challenges to government performance identified by Public Choice Theory.