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Historically public sector personnel policies and
practices have been targets of reform. These
reforms consisted of transferring private sector
techniques to a public sector perceived to be more
bureaucratic and less efficient. Private sector
research is replete with evidence of a connection
between superior human resource management (HRM)
practices and the performance outcome of
profitability. Public sector outcomes are more
difficult to connect directly to management
practices. As a result, the focus of public sector
reform has become one of improving the processes of
management rather than improving the outcomes of
government. The linkage between reform and outcome
is assumed. This study suggests municipalities are
likely to improve their performance by implementing
reforms found to be predictive of higher municipal
bond ratings. Evidence suggests for reforms to be
successful differences between private and public
sectors must be considered when implementing
change. This point, coupled with a systems view of
HRM, help minimize deadly combinations commonly
associated with public sector reform and maximize powerful connections .
practices have been targets of reform. These
reforms consisted of transferring private sector
techniques to a public sector perceived to be more
bureaucratic and less efficient. Private sector
research is replete with evidence of a connection
between superior human resource management (HRM)
practices and the performance outcome of
profitability. Public sector outcomes are more
difficult to connect directly to management
practices. As a result, the focus of public sector
reform has become one of improving the processes of
management rather than improving the outcomes of
government. The linkage between reform and outcome
is assumed. This study suggests municipalities are
likely to improve their performance by implementing
reforms found to be predictive of higher municipal
bond ratings. Evidence suggests for reforms to be
successful differences between private and public
sectors must be considered when implementing
change. This point, coupled with a systems view of
HRM, help minimize deadly combinations commonly
associated with public sector reform and maximize powerful connections .