Person:
Manning, Nick

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Public administration reform; public financial management; governance
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Last updated: January 31, 2023
Biography
Nick Manning retired as Head of the World Bank’s Governance and Public Sector Management Practice in December 2013. He led the development and implementation of the Bank’s updated approach to Public Sector Management.   Nick was previously the World Bank Manager for Public Sector and Governance for Latin America and the Caribbean.   He has also served as Head of the Public Sector Management and Performance Division at the OECD and as the World Bank Lead Public Sector Management Specialist for South Asia.   Nick has held advisory positions on public management for the Commonwealth Secretariat and for UNDP in Lebanon. Nick began his public sector career in local government in the U.K. and, before moving to international advisory work, was Head of Strategic Planning for an inner London Borough.  He is a Visiting Professor at the Herbert Simon Institute for Public Policy, Administration and Management; adviser to the Commonwealth Association for Public Administration and Management; member of the editorial board of the Public Management Review; honorary Senior Research Fellow in the Institute for Development Policy and Management at the University of Manchester; and a member of the advisory group for University of London Queen Mary Master's program in Public Administration.

Publication Search Results

Now showing 1 - 3 of 3
  • Publication
    The Promise of Performance Pay?: Reasons for Caution in Policy Prescriptions in the Core Civil Service
    (Oxford University Press on behalf of the World Bank, 2014-08-05) Hasnain, Zahid; Manning, Nick
    There is a vast body of literature on performance-related pay (PRP), with strongly held views from opponents and proponents. This study reviews this literature, disaggregating the available evidence by the different public sector contexts, particularly the different types of public sector jobs, the quality of the empirical study, and the economic context (developing country or OECD settings), with the aim of distilling useful lessons for policy-makers in developing countries. The overall findings of the review are generally positive across these contextual categories. In particular, the findings from high quality studies, based on a simple scoring method for internal and external validity, of PRP in public sector-equivalent jobs show that explicit performance standards linked to some form of bonus pay can improve the desired service outcomes, at times dramatically. This evidence primarily concerns “craft” jobs, such as teaching, health care, and revenue administration, apparently negating (at least in the short term) the behavioral economics concern about the crowding out of intrinsic incentives. The available evidence suggests that if policy-makers are sensitive to design and vigilant about the risks of gaming, then PRP may result in performance improvements in these jobs in developing countries. However, it is difficult to draw firm conclusions from the review about the effect of PRP in core civil service jobs for three reasons. First, there are very few studies of PRP in these organizational contexts. The work of senior administrators in the civil service is very different from that of many private sector jobs and is characterized by task complexity and the difficulty of measuring outcomes. Second, although some studies have shown that PRP can work in even the most dysfunctional bureaucracies in developing countries, there are few cases illustrating its effectiveness or otherwise outside OECD settings. Finally, few studies follow PRP effects over time, providing little information on long-term effects and adjustments in staff behavior. We conclude that more empirical research is needed to examine the effects of PRP in the core civil service in developing countries.
  • Publication
    Public Sector Human Resource Practices to Drive Performance
    (World Bank, Washington, DC, 2012-10) Manning, Nick; Hasnain, Zahid
    Many Governments wrestle with the issue of designing an appropriate set of human resource practices to motivate public servants to perform. Identifying the right set of practices for the public sector is a source of some controversy, and passions run high particularly in relation to the use of monetary incentives, often referred to as performance-related pay or performance based pay. This GET note reviews recent research on a range of practices Governments utilize to drive employee performance, which rest on the assumptions that public servants are motivated in two ways: (i) ‘intrinsically’ (i.e. internal factors motivated by ‘the right thing to do’), and (ii) ‘extrinsically’ (i.e., external validation from rewards offered by others). Generally, a Human Resource Management (HRM) system designed to motivate employee performance will utilize practices in two broad categories related to: (i) ‘external incentives’ (e.g., financial incentives), and (ii) ‘opportunities to perform’ focusing on ‘intrinsic’ factors (i.e. self-directed work). Within ‘external incentives,’ a financial incentive may either act over the long term (e.g., deferred compensation) or in the short term (e.g., performance-related pay). This note applies this conceptual framework to more clearly understand the range of practices Governments are using to improve staff performance, as well as the pre-conditions for their success. Given the recent attention on performance-related pay, we take a deeper look at the evidence underlying the shorter term performance-related pay, reviewing evidence from both OECD and middle income countries. Annex one provides a brief overview on the theories of motivation for those interested in the theoretical underpinnings of the work, and annex two presents’ experiences of performance pay in practice. This Note draws heavily from performance-related pay in the public sector: A review of theory and evidence (Hasnain and others 2012), a recent review of the literature in fields including political science, public administration, business management, and psychology.
  • Publication
    Performance-related Pay in the Public Sector : A Review of Theory and Evidence
    (World Bank, Washington, DC, 2012-04) Hasnain, Zahid; Manning, Nick
    The objective of this paper is to provide a review of the theoretical and, in particular, empirical literature on performance-related pay in the public sector spanning the fields of public administration, psychology, economics, education, and health with the aim of distilling useful lessons for policy-makers in developing countries. This study to our knowledge is the first that aims to disaggregate the available evidence by: (i) the quality of the empirical study; (ii) the different public sector contexts, in particular the different types of public sector jobs; and (iii) geographical context (developing country or OECD settings). The paper's main findings, based on a comprehensive review of 110 studies of public sector and relevant private sector jobs are as follows. First, we find that overall a majority (65 of 110) of studies find a positive effect of performance-related pay, with higher quality empirical studies (68 of the 110) generally more positive in their findings (46 of the 68). These show that explicit performance standards linked to some form of bonus pay can improve, at times dramatically, desired service outcomes. Second, however, these more rigorous studies are overwhelmingly for jobs where the outputs or outcomes are more readily observable, such as teaching, health care, and revenue collection (66 of the 68). There is insufficient evidence, positive or negative, of the effect of performance-related pay in organizational contexts that that are similar to that of the core civil service, characterized by task complexity and the difficulty of measuring outcomes, to reach a generalized conclusion concerning such reforms. Third, while some of these studies have shown that performance-related pay can work even in the most dysfunctional bureaucracies in developing countries, there are too few cases to draw firm conclusions. Fourth, several observational studies identify problems with unintended consequences and gaming of the incentive scheme, although it is unclear whether the gaming results in an overall decline in productivity compared to the counterfactual. Finally, few studies follow up performance-related pay effects over a long period of time, leaving the possibility that the positive findings may be due to Hawthorne Effects, and that gaming behavior may increase over time as employees become more familiar with the scheme and learn to manipulate it.