(Non) rationality and choice architecture: a behavioural approach to public administrative discretion in New Zealand

Abstract

Purpose

A central question of public administration is how political principals secure the cooperation of administrators within organisational frames and contexts; increasingly, rational influences are being considered alongside bounded rationality and non-rational influences. This paper aims to explore the intent of New Zealand’s Public Service Act 2020 in managing administrative behaviour.

Design/methodology/approach

The methodology is primarily ethnographic, combining emic and etic perspectives. A mixed-methods approach comprises participant observer field notes and meeting documentation, substantiated by official documents; documents were analysed thematically and triangulated with other data sources.

Findings

The Public Service Act introduces new bounds on administrative behaviour. The stated rationale for these changes reveals an attempt to set limits on the principal–agent relationship between politicians and administrators and causes predictable deviations from rational behaviour by cultivating public service motivation and a unified public service identity.

Research limitations/implications

As the legislation in question was only passed in 2020, it is too early to definitively assess the ultimate impact of legislation on administrative behaviour. This case study demonstrates that behavioural approaches to public administration are being applied intentionally by governments. The choice architecture created in the case study blends rational, bounded, and non-rational influences. Together, this produces a bricolage of semi-relevant theories from other disciplines, especially psychology, to explain administrative behaviour. Further refinement is needed to develop a cohesive and comprehensive theory of administrative behaviour that can account for contemporary practice.

Practical implications

Administrators act as agents of political principals, within ethical and rules-based limitations and influenced by public service motivation and social identity. Shifting from implicit to explicit choice architecture does not negate possible tensions between bounds and can signal them more explicitly. Shared symbols are sometimes intended to influence identity and therefore adherence to behavioural norms.

Originality/value

This paper explores the manipulation of choice architecture as a viable strategy for altering behaviour for the better and, to the best of the authors’ knowledge, is the first known instance of choice architecture being “legislated in” rather than merely “showing through”. This study illustrates the blending of rational, boundedly rational and non-rational factors into a choice architecture for public administrators that help mediate the biases and challenges of principal–agent relationships (which form a cascade in New Zealand’s public administration system).

Citation

Scott, R.J. and Merton, E.R.K. (2023), "(Non) rationality and choice architecture: a behavioural approach to public administrative discretion in New Zealand", International Journal of Organizational Analysis, Vol. 31 No. 5, pp. 1257-1278. https://doi.org/10.1108/IJOA-12-2022-3555