Since politicization persists, threatening public sector governance and management, there is a need to further understand this phenomenon and its consequences. Previous empirical studies conducted predominantly in the United States have found a negative impact of politicization on performance; however, the reasons behind this relationship remain elusive. In this article, we inquire into the effect of politicization on organizational performance, and we propose that such influence can be explained by a deterioration of human resource management (HRM) practices. Using data from a national survey of municipal managers and mayors in Chile, our results confirm the negative impact of politicization on the performance of public agencies, which is partially mediated by politicization’s deleterious effect on their HRM practices.

We review the literature on people management and performance in organizations across a range of disciplines, identifying aspects of management where there is clear evidence about what works as well as aspects where the evidence is mixed or does not yet exist. We organize our discussion by four lenses, or levels of analysis, through which people management can be viewed: (i) individual extrinsic, intrinsic, and psychological factors; (ii) organizational people management, operational management, and culture; (iii) team mechanisms, composition and structural features; and (iv) relationships, including networks, leadership, and individuals’ relationships to their job and tasks. Each of these four lenses corresponds not only to a body of literature but also to a set of management tools and approaches to improving public employees’ performance; articulating the connections across these perspectives is an essential frontier for research. We find that existing people management evidence and practice have overemphasized formal management tools and financial motivations at the expense of understanding how to leverage a broader range of motivations, build organizational culture, and use informal and relational management practices. We suggest that foregrounding the role of relationships in linking people and performance—relational public management—may prove a fertile and interdisciplinary frontier for research and practices.

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work is licensed under a Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (http://creativecommons.org/ licenses/by-nc-nd/3.0/igo/legalcode) and may be reproduced with attribution to the IDB and for any noncommercial purpose. No derivative work is allowed.Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.Note that link provided above includes additional terms and conditions of the license.The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, or the countries they represent.http://www.iadb.org 2016 i Abstract * This qualitative study explores the degree to which the merit-based selection of public managers leads to better public sector performance. Based on the findings from eight case studies in Chile and Peru, the introduction of the merit-based selection of public managers would have engendered a series of improvements in the internal management and practices of organizations─ more so than in institutional outcomes. Other intangible and perceived benefits include the manager's higher level of legitimacy in, as well as a stronger commitment to, the institution. The study also proposes a future agenda for research.JEL Codes: H10, H11, J45