The chapter discusses the notion of privatization in its relation to public human resource management (PHRM). Battaglio highlights the pros and cons, challenges and opportunities of privatization in the context of PHRM, as well as laws that affect it. Privatization can be beneficial and cost-reducing but public sector employees should be aware of probable difficulties that may cause more significant issues and expenses. Thus, to achieve the best outcomes within privatization, outsourcing or contraction in PHRM, one should be sure that a company initially represents governmental values.
The chapter’s most important concepts: private and public agencies should conform with many regulations; laws affecting PHRM are constitutional, statutory, regulatory and contract; required skills for managing contracts in the public sector; privatization’s pitfalls. The fifth and the most significant concept is that both private and public agencies “have an obligation to uphold values that our government holds” (Battaglio, 298). It implies that constitutional values should be above all, whether the public sector transfers ownership to a private one or private actor transfers ownership to a public one.
This concept matters to public sector employees since a lack of maintaining constitutional values can cause additional issues, expenses and legal procedures. The day-to-day work of government employees implies reflection of public values, such as fairness and equity; neglect of these values will affect their work and harm the state.
Privatization, outsourcing or contraction imply many challenges and laws and may be efficient and cost-reducing just in that case when both actors reflect constitutional values.
Battaglio, R. Paul. Public Human Resource Management: Strategies and Practices in the 21st Century. SAGE Publications, 2014.