How NPM-inspired-change impacted work and HRM in the Irish voluntary sector in an era of austerity

Abstract

PurposeThe purpose of this article is to explore how NPM influenced the Irish NPVCS and triggered changes in work and HRM at a time of austerity.Design/methodology/approachUtilising a case study framework, the study draws on qualitative data from 38 Managers/Supervisors in two Government funded organisations in the Physical and Sensory Disability (PSD) subsector.FindingsResults indicate that due to the sector's dependence on Government funding, NPM entered the Irish NPVCS bloodstream via institutional forces of coercive, normative and mimetic isomorphism. These translated into a more formalised, standardised and commercial approach to work and HRM and downward pressures on pay and terms and conditions of employment in the sector, creating a more business facing and disciplined sector.Research limitations/implicationsAs a cross-sectional study using two large representative case study organisations from the PSD subsector, it has high generalisability for this subsector but less so for the wider Irish NPVCS. It brings into focus the sector's Achilles heel of over-reliance on Government funding and uncovers important issues which merit exploration in other subsectors of the Irish NPVCS.Practical implicationsThe study provides evidence of how NPM and austerity inspired change in human resource management practices in the sector and offers insights to Managers and other stakeholders on how the sector is changing and the challenges that must be addressed, especially around asserting its independence from Government funding.Originality/valueThe study extends our understanding of NPM and HRM in the context of the Irish NPVCS and austerity.