Abstract
The aim of this thesis is to assess the impact of the 'good employer' directive (s.56, State Sector Act 1988) on Human Resource Management (HRM) in the public sector. It is suggested that the aim of the directive was to compel employers in the public sector to create an outcome of employee well-being as an objective of the HRM function. This required the use of an employee-centred model of HRM. As the State in New Zealand is currently reviewing how it achieves this aim, this is an opportune time to conduct a review of the directive.
This study includes an empirical examination of the objectives of the HRM function, together with HRM practice in the four functional areas covered by the directive (good and safe working conditions, recruitment and selection, training and development, and equal employment opportunity) and employee perceptions of well-being. A research framework was developed to measure the impact of the good employer directive. This identified the predicted relationships between the directive and HRM outcomes. The main study was completed using a survey approach. In addition, a number of smaller analyses using secondary data sources were also undertaken.
Results show the directive impacted on HRM policy development and the use of employee centred HRM practice in the public sector. Compared to the private sector, the public sector has higher levels of policy development in the four areas covered by the directive, and considerably more employee-centred practices in place. The judiciary suggested that the directive placed a greater onus of responsibility on public sector employers to be 'good', and analysis of statistical data show the outcomes for equal employment opportunity groups specifically targeted by the directive to be superior in this sector. However, from the employees' perspective, these positive results do not have a significant impact. As a consequence, any conclusions that the directive has been effective in improving the outcomes for employees must be tempered.
The findings of this study contribute to the literature in a variety of important ways. Some valuable insights have been gained into public sector HRM and employee views about HRM. It is concluded that, whilst the directive has impacted on HRM practice, there may be problems with how the State in New Zealand seeks to define a 'good employer'. Different functional areas of HRM appear to have a different impact on employee well-being. Only those areas of HRM considered important to employees are likely to produce desirable outcomes for employees. Furthermore, perceptions of employee well-being are related to the operationalisation of FIRM practice, but not to the numbers of HRM practices. This provides empirical support for assertions that suggest that the relationship between levels of HRM practice and employee well-being is not as strong nor as important as the relationship that exists between employee perceptions about actual practice and employee well-being. This has implications for practitioners, suggesting it is the importance placed on HRM, and the quality of HRM practice, together that have the greatest potential to contribute to employee wellbeing.