Running Head: PUBLIC ADMINISTRATION

Determinants of Productivity in public corporations in the United States

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Abstract

Production is a major topic that most organizations both in the public and private sectors

have been concerned with over the years. The public sector is also of importance because of the fact

that taxpayers money is utilized when it comes to financing operations of corporations. The level of

production is affected by a number of factors. This research was aimed at understanding factors that

affect the level of production in public corporations in the United States. Financing levels,

management and employee motivation are the key factors that were studied in this research. The

outcome revealed a strong positive correlation between the level of production and factors that were

identified. The research provides a basis for future studies with regard to public corporations and

production.
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INTRODUCTION

Public corporations are institutions that are owned by the government whose sole purpose is

to engage in production of certain goods or provision of services with the aim of ensuring socio-

economic wellness of citizens. Goods manufactured or services offered maybe those tat the private

sector might not be in a position to provide because of lack of maximum incentives or profit in the

sector. The performance of public corporations in the United States remains a major issue of

concern to its citizens. Productivity is a measure of how well these organizations are serving initial

objectives.

Most corporations in the United States have been performing below expectations and thus

putting the huge amounts of money allocated to them to question. Taxpayer resources are injected

into state corporations with the sole objective of making sure that better results are achieved along

the way. Productivity is a measure of how well these resources are utilized and whether the outcome

matches the kind of investment put in them through allocations by the government of United States.

Productivity can be said to have occurred only when the highest level of performance has been

attained.

Low production in public corporations in the United States has a direct impact on

government and citizens of United States in that it reduces effectiveness and wellness concurrently.

Given the low productivity levels in public corporations, the question has been to establish the cause

and at the same time look at ways through which the same can be mitigated. In spite of government

financial assistance which is aimed at improving service delivery, there are strategies that need to be

adopted in ensuring that the level of productivity has been enhanced. However, improving

productivity in state corporations needs to be done strategically through an understanding of factors

that influence their performance.

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There has been a concerted effort on the side of the government and private sector to ensure

that the productivity levels within public corporations has been enhanced. Federal and state

governments for instance have been involved in organizing seminars for those who work and

manage public corporations. The main objective has been to enhance the capacity of those working

in public corporations and at the same time ensure that they become very much productive in nature.

On the other hand, bribery and corruption have been blamed for the manner in which they hamper

productivity levels within the public sector.

Weak organizational norms area also a major that affect the running process of government

corporations in the United States. The problem of productivity in government corporations in the

United States is well versed and thus a major concern for al scholars. This could be attributed to a

number of reasons that have been cited in past studies. Understanding factors that affect productivity

within public organizations in the United States is one of the best strategies that can be utilized in

ensuring that management and outcome has been enhanced. This study is concerned with finding

factors that affect productivity levels in public corporations in the United States with St. Lawrence

Seaway Development Corporation (SLSDC) as a case study.

There are a number of factors that the study identified which will act as variables under

investigation in this particular study. Quality of service delivery at any corporation charged with the

responsibility of serving the public is an issue of interest and therefore investigating the same will

yield results that can be used for future studies and development. The main research question will be

to identify the relationship between the independent variable (production in government

corporations) and dependent variables (factors affecting productivity in government corporations). It

is this relationship that will help in understanding the interconnection between these two variables.
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The following four factors have been identified as of importance and determinants of

productivity in government owned corporations in the United States.

a. Financing levels

b. Management

c. Employee motivation

Financing levels

Productivity in government
Management
corporations

Employee Motivation

The image above is a summarized indicator of the perceived relationship between variables that are

under investigation in this particular study. The operational definition of variables is as follows:

a. Productivity: The amount of output by a public corporation in the United States.

b. Financing levels: The amount and timing of financing that is given to a public corporation by

the government of the United States.

c. Management: The kind of control and management strategies that are adopted by the

management of public corporations in the United States.

d. Employee motivation: The willingness and spirit of those employed in the public

corporations in the United States.

To explain the interrelation that exists among them, there are a number of hypotheses that

were formulated for purposes of testing and arriving at conclusions. Below is a list of hypotheses

that were tested in the study.

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Null hypothesis: Financing levels, management and employee motivation affects the level of

productivity in government owned corporations in the United States.

H1: High financing levels increases the level of production in government corporations in the

United States.

H2: Proper management styles increases the level of production in government corporations in the

United States.

H3: High levels of employee motivation increase the level of production in government corporations

in the United States.

The theoretical understanding of this relationship is that high levels of production are likely

to be influenced by the level of financing, management style and the manner in which employees are

motivated. The approach to this study will be a longitudinal one where the selected factors will be a

case study one with the selected corporation being the main focus. Results obtained will be

extrapolated to other corporations owned by the government in the United States. International

standards that govern the manner in which such research methods are adopted allow for the use of

information obtained inferring to other organizations.

Resources available indicate that there has been a number of studies carried out in the area of

production with little focus being emphasized on state corporations and how their performance is

affected in one way or the other. A review of literature available shows that much has been placed

on the private sector and thus creating a gap in resources that are available for use. Carlson (2017),

notes that many state corporations have not been subjected to studies that focus on their productivity
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levels and this is because of unavailability of information that focuses heavily on their productivity

levels and the direct impact that they have on the society.

The core understanding is that all corporations are financed from the government treasury

which is in turn sourced from the taxpayers. Dimock & Leazes (2009) notes that there is a common

understanding in the public with regard to how organizations are managed and the impact that the

same has on ensuring that they are productive. Public corporations are in most cases associated with

people who manage the same and thus their management style is what determines the outcome of

every strategy that they adopt along the way. Motivation levels are also a major concern and this is a

factor that is shaped by other variables such as working conditions and the manner in which the

same affects the satisfaction levels. Addressing the issue means that there must be a way through

which the management adopts methods that increase the production levels.

Razo (2010) notes that overall success of government organizations in the United States is

wholly determined by strategies that they execute in the quest to deliver better services to citizens.

Financing that is timely in nature and wastage of resources that might result in the same is also an

issue that has to be addressed according to the author. Poor productivity levels in public

corporations affects the lives of American people in one way or the other and thus need to ensure

that the trend has been addressed according to the author. In spite of government’s commitment

towards making sure that goals are met and in a timely manner, it remains an area of concern in as

far as challenges are addressed and the impact that this is likely to have on the success of most

corporations.

In a comparative study between the public and private sector productivity levels, () notes that

there are a number of ideas that government corporations can be able to learn from the private
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sector. Poor organization and operation strategy is another challenge that continues to affect the

manner in which the public sector yields results. The conflict of objectives in most government

owned corporations has resulted in a state of laxity and this continues to affect the kind of

production levels that are posted (Wang, 2014). An ineffective and inefficient management strategy

is one of the biggest challenges when it comes to addressing the low levels of productivity that have

been witnessed in the public sector.

Further research has shown that people who work in public corporations might have different

career goals that are not aligned to those that have been set by the organization in general. The

manner in which institutions are structured and career growth patterns is the biggest strategy when it

comes to making that employees are motivated and ready to work. Behaviors of employees and the

manner in which management is structured affects the pattern through which government

corporations operate and the impact that the same has on ensuring that its objectives have been

attained in the process.

METHODS

The data that was utilized in this particular study was obtained from the General Social

Survey that is carried out by NORC. The data was obtained from the site and filtered for the purpose

of making sure that only relevant data with regard to opinions and relevance of this particular

research were utilized. The dependent and independent variables formed the basis upon which the

study was undertaken and the kind of data that was utilized. The 2012 data set was utilized in this

study after applying the filters and ensuring that it contained information that was relevant to the

study.
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The survey involved responses that were obtained from respondents from the public sector

but the data was non-institutionalized. The questions that were utilized in the study were closed

ended ones with the sole aim of ensuring that the response yielded specific information regarding

government corporations financing, management and employee satisfaction and motivational levels.

The dependent variables in this case included financing, management styles and employee

motivational levels with regard to how the organization is structured. Questions structured on a

degree of strongly agreeing or strongly disagreeing and how the same was being scored informed

the data collection and analysis.

The independent variable that was under investigation in this study is the production level in

government corporations in the United States. The level of production in these organizations and

how it is has been affected by listed variables and the correlation among the two was of major

concern to this particular study. The level of production was categorized into low, medium and high

production. The overall data and analytical strategies were adopted along the way to make sure that

the true reflection of the correlation among variables has been understood and interpreted.

The analytical part of the study focused on data collected and at the same time several

descriptive statistical analyses undertaken to understand the study in general. Frequency of

responses, medium, high and low responses were recorded and analyzed in the study. The pairing of

each dependent and independent variable was done and cross-tabulation as well as chi-square

analysis done. The measure of association and chi-square methods provided the relationship among

variables as indicated in the results section.

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RESULTS

The tables below show the cross tabulation of responses obtained and the cross association

between the independent and dependent variable that was under investigation in this study. The first

thing to note is that the null hypothesis hold and thus cannot be rejected as there is an indication of a

correlation between the independent and dependent variables in this particular study.

Financing levels

Financing levels & productivity High level Low level Total

levels in Public Corporations financing financing
Highly likely 54 (19.21) 56 (20.74) 110(19.96)
Somehow likely 126(44.83) 104(38.51) 230(41.76)
Not likely 101(34.94) 110(40.74) 211(38.29)
Total 281(100) 270(100) 551(100)

Table 1: Financing levels and production in public corporations in the United States.

The table above is an indication of the correlation between financing levels and the rate of

production in public corporations in the United States as provided in the research. Figures in the

brackets are an indication of percentages of those who were sample. Chi-square- 830 and df =3,

p=738). The implications of these results serve to indicate a unique trend in as far as financing is

concerned.

Management Style

Management & productivity Poor Effective Total

levels in Public Corporations Management Management
Style Style
Highly likely 16 (27.58) 68(57.14) 84(47.45)
Somehow likely 28(48.27) 31(26.05) 59(33.33)
Not likely 14(24.13) 20(16.80) 34(19.20)
Total 58(100) 119(100) 177(100)

Table 2: Management style and production in public corporations in United States.

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The second table above presents the tabulated data that shows the relationship between the

management style and productivity levels in public organizations in the United States. The

hypothesis could not be rejected because the data indicates a strong relationship between

management style and productivity. The linear by linear association in the study was projected at

=0.29. The highly likely category in this case presented much more detailed information with regard

to the manner in which the research findings were presented.

Employee Motivation levels

Employee Motivation & High Low Total

productivity levels in Public Motivation Motivational
Corporations Levels Levels
Highly likely 67(57.26) 43(50) 110(54.18)
Somehow likely 38(32.47) 28(32.55) 66(32.51)
Not likely 12(10.25) 15(17.44) 27(13.30)
Total 117(100) 86(100) 203(100)

Table 3: Employee motivation levels and productivity in public corporations in the United States.

Table 3 is a presentation of results obtained from responses and calculations with regard to

employee levels of motivation and how the same affects productivity in public corporations in the

United States. The data indicates that motivation among employees is perceived to be the greatest

factor that affects their level of production and at the same time how these organizations are affected

by levels of production. Motivation can be in terms of the payment that they receive and how the

same affects their zeal and energy to work for the organization in general. Based on the ranking,

motivation comes first, followed by management style and lastly financing levels when it comes to

looking at the weight and impact of each variable that was under investigation in the research.

In general, results obtained from this study are instrumental in informing the manner in

which production is affected in most public organizations in the United States and the manner in
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which the same affects results that are posted. In all the three categories, there is a belief that

variables cited affect the level of production in public corporations and therefore an issue of

concern. However, financing is at the lowest bearing in mind that it is done by government through

the kind of taxes that are collected along the way.

DISCUSSION, CONCLUSION & RECOMMENDATIONS

The results that were obtained in this study serve to indicate that production in public

corporations is affected by a number of factors that are related to internal and external factors. The

null hypothesis that was adopted in this particular holds and this is supported by empirical data that

is presented in the study. Past researchers have been able to understand public organizations in the

realm of services that they offer and this has not factored in the kind of factors that affect production

levels.

Financing is a major factor for public organizations in the United States and this can be seen

in the manner in which the United States government has been able to budget for most state

corporations. However, findings of this particular research have shown that steady financing of

public corporations affects productivity but at a lower level (Yang, 2011). Availability of money

that has been budgeted for and management of the resource as been tied together in past researches

and thus affected by other extraneous factors. On the other hand, employee motivation and

management styles are key when it comes to determining the level of output in public organizations.

In conclusion, public corporations in the United States play a very critical role when it comes

to performing several duties and delivery of services that cannot b performed by the private sector.

The United States is a nation with a number of public corporations assigned different duties and thus

financed by public money. Their performance and production has been a subject of discussion over

the years. The focus of this study was to identify factors that affect the level of production in public
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corporations in the United States. Financing levels, management and employee motivation have

been cited as the main factors that affect the level of production in these organization. There was a

strong positive correlation among variables that were under investigation. Future research should

focus on the impact that these variables have and how the same can be enhanced when it comes to

making sure that the required levels have been achieved in production.
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References

Carlson, R. (2017). The Use of Public Relations Research by Large Corporations. Public Opinion

Quarterly, 21(3), 341. doi: 10.1086/266726

Dimock, M., & Leazes, F. (2009). Government Corporations. Public Administration Review, 49(1),

85. doi: 10.2307/977236

Razo, A. (2010). Polycentric Orders and the Governance of Public Economies. Transnational

Corporations Review, 2(2), 17-34. doi: 10.1080/19186444.2010.11658231

Wang, W. (2014). Foreign Multinational Production in Canadian Manufacturing

Sector. Transnational Corporations Review, 6(1), 26-41. doi:

10.1080/19186444.2014.11658379

Yang, Y. (2011). Technological Innovation and Geographic Organization: Choice of

Production. Transnational Corporations Review, 3(1), 13-26. doi:

10.1080/19186444.2011.11658270
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Appendix

Figure 1: List of variables and interrelation

Table 1: Financing level and impact on production in public corporations

Table 2: Management style and impact on production in public corporations

Table 3: Employee motivation and impact on production in public corporations