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Hidden costs of cuts: Austerity, civil service management and the motivation of public officials in Central and Eastern Europe after the crisis

Author

Listed:
  • Jan-Hinrik Meyer-Sahling

    (University of Nottingham)

  • Barbara Janta

    (RAND Europe)

  • Iveta Reinholde

    (University of Latvia)

  • Christian van Stolk

    (RAND Europe)

Abstract

The implementation of austerity measures presents a dilemma for governments. While austerity measures such as cutbacks aim to reduce costs and enhance public sector efficiency, the same measures might undermine the motivation of employees and, consequently, the prospects of effectively implementing austerity programmes. Based on a survey of ministerial officials in Poland and Latvia, this article finds that the scale of cutbacks explains a larger decline of staff motivation in Latvia than in Poland. The article further shows that motivation was more likely to decrease after the crisis if austerity measures involved cutbacks such as staff reductions, recruitment freezes, and a reduction of training opportunities.

Suggested Citation

  • Jan-Hinrik Meyer-Sahling & Barbara Janta & Iveta Reinholde & Christian van Stolk, 2016. "Hidden costs of cuts: Austerity, civil service management and the motivation of public officials in Central and Eastern Europe after the crisis," European Journal of Government and Economics, Europa Grande, vol. 5(2), pages 120-137, December.
    • Handle: RePEc:egr:ejge00:v:5:i:2:p:120-137
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    References listed on IDEAS

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    1. Leslie, Keith & Canwell, Adam, 2010. "Leadership at all levels: Leading public sector organisations in an age of austerity," European Management Journal, Elsevier, vol. 28(4), pages 297-305, August.
    2. B. Peters & Jon Pierre & Tiina Randma-Liiv, 2011. "Global Financial Crisis, Public Administration and Governance: Do New Problems Require New Solutions?," Public Organization Review, Springer, vol. 11(1), pages 13-27, March.
    3. Chung-An Chen & Chih-Wei Hsieh, 2015. "Does Pursuing External Incentives Compromise Public Service Motivation? Comparing the effects of job security and high pay," Public Management Review, Taylor & Francis Journals, vol. 17(8), pages 1190-1213, September.
    4. David Lodge & Marta Rodriguez-Vives, 2013. "How long can austerity persist? The factors that sustain fiscal consolidations," European Journal of Government and Economics, Europa Grande, vol. 2(1), pages 5-24, June.
    5. George A. Boyne, 2002. "Public and Private Management: What’s the Difference?," Journal of Management Studies, Wiley Blackwell, vol. 39(1), pages 97-122, January.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

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    More about this item

    Keywords

    economic crisis; austerity; cutbacks; civil service reform; motivation; Central and Eastern Europe;
    All these keywords.

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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