1. Public Management Research Conference
“Seeking Excellence in a Time of Change”
May 25-27, 2012
Fudan University, Shanghai, China
Learning to Make the Job Market Work:
Capacity Building in Public Employment Agencies
Dr Alberto Asquer
Lecturer of Business Strategy and Policy
Faculty of Economics
University of Cagliari, Italy
Visiting Fellow
Robert Schuman Centre for Advanced Studies
European University Institute

2. 1. Overview summary
The implementation of “Active Labor Market Policies” often
entails that public employment agencies need to develop the
capacity to deliver services to the unemployed for which no
expertise and practices had ever been accumulated in the past.
How do public employment agencies develop the capacity
to effectively deliver Active Labor Market Policies?
The organizational change process may be especially
troublesome, when
(a) statutory tasks enlargement are combined with
(b) decentralization of responsibility to sub-national
governments, within
(c) a political context not fully supportive of inter-governmental
collaboration.

3. 2. Theoretical background
Studies on organizational change in the public sector miss
providing a full account of what affects the path and outcome of
organizational change process (Thomas, 1993).
Some argue that external support from political overseers
and key external stakeholders is a factor that contributes to
successful organizational change (Fernandez and Rainey,
2006).
Others hold that external political stakeholders generally seek
to attain a successful enterprise for the benefit of various groups
(“stewardship theory”) (Harrow, 2001; Donaldson and Davis,
1989, 1991).

4. 3. Research method
Question: How does the process of organizational change in
public sector agencies unfold, especially when political context
conditions include lack of support for inter-governmental
collaboration?
Case: Organizational change process in four public
employment agencies (Centri Servizi per il Lavoro or CSL) in
Cagliari province, Italy, during the implementation of 2001 labor
market reform (2001-2011)
Case path and outcome: Development of novel organizational
routines for the delivery of ALMP services, that resulted in
(a) consolidation of new work practices, but also
(b) failure to provide demonstrably well-performing routines for
the delivery of ALMP services.

5. 4. Organizational changes in the CSL in Cagliari province
The regional government passed new legislations on labor market
policy, providing the establishment of 28 CSL (2003, 2005) as
agencies of the provincial governments.
CSL were established and staffed with former employees of local
branches of the Ministry of Labor (SCICA) (about 180) and with
new recruits among young social science graduates (about 270),
who were offered short-term job contracts (6 months) periodically
renewed.
Regional government was not fully supportive of the CSL (e.g., by
doing competing policy initiatives and lacking coordinating
programs) and planned to centralize labor services at the regional
level, adding to the threat to “hollow out” the competences of the
provinces (often portrayed as source of waste of public money).

6. 4. Organizational changes in the CSL in Cagliari province
Organizational design of the CSL separated “traditional” labor
services (performed by former SCICA personnel) from ALMP
services (conducted by the new recruits).
Despite job rotation and other initiatives, the two groups of
employees developed a conflictual relationship.
The new recruited staff developed professional standards and
codes of conducts for performing ALMP services, especially by
networking and sharing knowledge and experience.
Performance of ALMP services, however, remained relatively
disappointing, provided that greater concern was placed with
quantity of service delivery rather than quality and that the
temporary staff remained generally uncommitted to CSL.

7. 5. Explanatory arguments for the case path and outcome
Components of the Organizational change
explanatory argument process features
Consolidation of new Lack of demonstrably
Explanandum work practices well-performing routines
Features of
Initial conditions
permanent staff
Tasks enlargement
Policy design features Tasks enlargement Allocation of responsibilities
to regions and LGs
Modality of recruitment
Policy process features Modality of recruitment
“Silos” organizational design
Conflict on competences
Context conditions between regions and LGs
Certification
Hypothesized social Protection of identities and roles Attribution of threats
mechanisms Polarization

8. 6. Conclusions
The (a) quest for legitimacy for new ALMP services and (b) efforts
to protect professional identities and roles, together with (c)
particular organizational design features, led to the development
of organizational capabilities (learning) to delivery ALMPs.
However, (a) focused concern for quantity rather than quality and
(b) conditions of recruitment of ALMP staff, together with (c)
features of the political context, led to restraining from
perfecting organizational routines.
Political context conditions related to lack of inter-
governmental collaboration did not seem to hamper the
development of new work practices, but did play a (negative) role
on the attainment of well-performing organizational routines.

9. Thank you

10. Thank you