Board diversity and strategic orientation: Evidence from India

This study leverages the upper echelons theory to investigate the effect of board diversity (gender, age, education, and tenure) on the strategic orientation of a firm in terms of its exploration- exploitation. It also investigates the moderating role of the technological intensity of the industry for analyzing the relationship between board diversity and exploration–exploitation of the firm. The technological intensity of the industry is classified as high-tech and low-tech. This study brings to light the role of the contingency factors in influencing the board's strategic choice. The study is based on panel data set of Indian Top-200 companies listed on the National Stock Exchange for the period between 2010 and 2015. The present study's findings indicate that an increase in board diversity leads to more exploration than exploitation. Further, the effect of board diversity is more pronounced in high-tech than the low-tech industries.     

Ethnic Diversity and Organizational Performance: Assessing Diversity Effects at the Managerial and Street Levels

ABSTRACT

As the public sector workforce becomes more ethnically diverse and as government agencies make attempts to manage that diversity, the importance of understanding how diversity affects workplace interactions and work-related outcomes increases. Little public-sector research has examined the impact of diversity on performance outcomes. This article seeks to fill this gap by studying the effects of the ethnic diversity of managers and street level public officials on work-related outcomes. We use basic in-group/out-group theories from psychology to formulate research questions relating diversity and performance, along with empirical research on the effects of diversity on work-related outcomes. We then use data from schools to test the relationship between ethnic diversity and organizational performance, identifying different impacts for managerial diversity and diversity among teachers. Results are consistent across three different models: manager diversity is routinely non-significant in predicting organizational performance, while teacher diversity has a consistently significant, and negative, impact on performance. These findings suggest that process-oriented problems are causing diverse organizations to experience drawbacks instead of gains, and that any benefit that could be drawn from a diversity of viewpoints is overshadowed by communication and collaboration problems.     

The Right Mix? Gender Diversity in Top Management Teams and Financial Performance

Recent research has illustrated that demographic diversity influences the outcomes of public sector organizations. Most studies have focused on workforce diversity; by comparison, little is known about how managerial diversity affects organizational outcomes. This article focuses on gender diversity in the top management teams of public organizations and its relationship to financial performance. Theory suggests that management diversity can be a positive asset for organizations, allowing for the use of more diverse knowledge and human skill sets. Results of this study, however, suggest that organizations may only be able to leverage these advantages if they have a supporting management structure. In a longitudinal study of top management teams in Danish municipalities, the authors find that gender diversity in top management teams is associated with higher financial performance, but only in municipalities with a management structure that supports cross‐functional team work. These results are interpreted in light of existing theory, and implications are suggested.     

Are minorities free riders? Applying the social resistance framework to public goods production in Central-Eastern Europe

One of the key reasons for the scholarly and policy concern about the rising levels of ethnic diversity is its apparently detrimental effect on the production of public goods. Although numerous studies have tackled that issue, there is still much ambiguity as to the precise micro-level mechanisms underpinning this relationship. In this article, a novel theoretical explanation for this relationship is proposed, building on the social resistance framework. This proposition is tested using a new cross-sectional public opinion survey covering 14,536 respondents in 817 neighbourhoods across 11 Central Eastern European countries. Analysing national minorities defined by postwar border changes means one can overcome the endogeneity problem faced by research based on immigrant groups. The findings show that it is the combination of a minority group's discrimination and its spatial clustering that makes minorities reluctant to contribute to public goods. The article constitutes a novel theoretical and methodological contribution to the research on the effects of diversity on public goods provision.     

Burdened by Bureaucracy? Determinants of Administrative Intensity in Public Organisations

ABSTRACT

Why does the level of administrative intensity—the bureaucratic component of the workforce—vary across public organisations? We address this question by developing and testing a model that is derived from structural contingency theory and public choice theory. The results show that administrative intensity is higher in small organisations, in turbulent external environments, and in organisations with big budgets. Furthermore, we find that the impact of organisational size is nonlinear, that large size mitigates the effects of turbulence, and that administrative intensity is a cause as well as an effect of bigger budgets. The theoretical and practical implications of these results are discussed.     

Fit for the Job: Candidate Qualifications and Vote Choice in Low Information Elections

Cues and heuristics—like party, gender, and race/ethnicity—help voters choose among a set of candidates. We consider candidate professional experience—signaled through occupation—as a cue that voters can use to evaluate candidates’ functional competence for office. We outline and test one condition under which citizens are most likely to use such cues: when there is a clear connection between candidate qualifications and the particular elected office. We further argue that voters in these contexts are likely to make subtle distinctions between candidates, and to vote accordingly. We test our account in the context of local school board elections, and show—through both observational analyses of California election results and a conjoint experiment—that (1) voters favor candidates who work in education; (2) that voters discriminate even among candidates associated with education by only favoring those with strong ties to students; and (3) that the effects are not muted by partisanship. Voters appear to value functional competence for office in and of itself, and use cues in the form of candidate occupation to assess who is and who is not fit for the job.

     

Employee Voluntary and Involuntary Turnover and Organizational Performance: Revisiting the Hypothesis from Classical Public Administration

ABSTRACT:

This article examines the effects of voluntary, involuntary, and absolute turnover rates on organizational performance. Adopting human capital and cost-benefit theories, this article posits that voluntary and involuntary turnover would have a linear negative and an inverted U-shaped relationship with organizational performance, respectively, and that an absolute turnover measure can prevent us from revealing the distinct effects of different types of turnover. Using four years of data from Florida school districts, primary findings suggest that involuntary turnover has an inverted U-shaped relationship with organizational performance, first positive and then negative, while the relationship between voluntary turnover and organizational performance remains inconclusive. The findings also suggest that absolute turnover rates can mask the complex and dissimilar impact that various types of turnover have on organizational performance.     

Board Diversity,Stakeholder Representation,and Collaborative Performance in Community Mediation Centers

Does board diversity or representativeness influence organizational performance? Though it is understudied in both the public and the nonprofit sectors, learning more about this critical subject can enhance organizational performance within highly collaborative settings. Community mediation centers, which rely on multiple public and private resources to meet their programmatic objectives, provide excellent case studies for analyzing the impact of different kinds of interorganizational linkages on organizational performance. A multitheoretic view incorporating agency, resource dependence, and stakeholder perspectives is employed through a national sample and a two‐stage analysis using a logic model to test the cumulative impact of board characteristics and interorganizational relationships on organizational outcomes. Organizations’ collaborative capacity depends on several kinds of boundary‐spanning activities, including network ties, revenue sources, and the number of stakeholder groups represented on the board.     

Employment,privatization, and managerial choice: Does contracting out reduce public sector employment?

We examine the effects of governments' use of alternative service provision on public employment using panel data from a nationally representative sample of local governments. We model the effects of alternative service provision on the size of the public workforce and hypothesize that alternative provision jointly impacts both full‐ and part‐time employment. We find evidence of an inter‐relationship between these employment types. Our results from seemingly unrelated and 3SLS regressions indicate that full‐time employment in the public sector declines when additional services are provided by for‐profit providers, while part‐time employment increases. The net employment effect in the public sector is negative when government services are moved to the for‐profit sector. These combined effects result in a compositional shift toward more part‐time public sector employment. © 2006 by the Association for Public Policy Analysis and Management     

Quasi-Contractual Ministerial Steering of State Agencies: Its Intensity,Modes, and How Agency Characteristics Matter

ABSTRACT:

This article demonstrates the value of conceptualizing four ideal types when studying ministries’ contract steering of state agencies—relational, double-whammy, performance, and behavioral steering—each defined by its combination of input- and output-oriented steering. In the system under study—Norway—about half of all agencies are subjected to steering with a clear profile; the other half are not. The two profiles often dismissed or overlooked in existing research—relational and double-whammy steering—are most common. Thus, introducing a contract regime has not meant a clear shift from input to output control, as posited by some. Most agency characteristics under study—size, age, political salience, and tasks—have significant effects on the likelihood that an agency is subjected to one type of steering or another. Still, the analysis suggests that agency-level characteristics constrain ministerial choice about which steering to practice only to a limited extent.     

Never Change a Winning Policy? Public Sector Performance and Politicians' Preferences for Reforms

Despite the increasing stress on performance in public sector organizations, there is still little empirical evidence on whether—and if so, how—politicians respond to performance information. This article addresses this research gap by linking registry statistics on school performance in Norway's 428 municipalities with data from an information experiment embedded in a survey of local politicians. Findings show that school performance bears only a weak relationship to politicians' preferences for resource‐related reforms, but it strongly affects preferences for governance‐related reforms, indicating the importance of accounting for heterogeneity across alternative types of (school) reforms. Moreover, local politicians are, on average, well informed about school performance. This reflects the force of local inhabitants' high information level on politicians' accountability.     

The Effects of Performance Information on Public Resource Allocations: A Study of Chile's Performance-Based Budgeting System

ABSTRACT

This article reports the findings of a mixed-methods study of the effects of performance-related considerations on the allocation of public resources in Chile. The study considered aspects and stages of the budgetary process that most previous research on the relationship between performance assessments and the budget has tended to disregard. By virtue of this distinctive approach, the study identified many instances of performance considerations' influence that many other studies would have failed to capture. Because of its strictly exploratory character, the study could not establish how typical the different types of effects identified are. But it suggests that the effects most neglected in the literature may account for a great portion, if not for most, of the performance assessments' impact on the quality of public spending.     

Extending the Theory of Goal Ambiguity to Programs: Examining the Relationship between Goal Ambiguity and Performance

One of the main assumptions of empirical studies conducted on the influence of goal ambiguity in public management is that goal ambiguity relates negatively to performance. However, this relationship has rarely been tested at the program level because common goal ambiguity and performance measures for disparate government programs have been scant. The availability of Program Assessment Rating Tool (PART) results for a number of federal programs provides the opportunity for an analysis testing the foregoing assumption. Measures of program goal ambiguity—target, timeline, and program evaluation—are shown to have negative relationships with different program performance scores, taking into account alternative influences or biases on performance. This analysis extends the theory of goal ambiguity by providing the first analysis of large‐sample federal programs. The theoretical and practical implications are presented in the discussion and conclusion.     

Managing Diversity in U.S. Federal Agencies: Effects of Diversity and Diversity Management on Employee Perceptions of Organizational Performance

Diversity in the workplace is a central issue for contemporary organizational management. Concomitantly, managing increased diversity deserves greater concern in public, private, and nonprofit organizations. The authors address the effects of diversity and diversity management on employee perceptions of organizational performance in U.S. federal agencies by developing measures of three variables: diversity, diversity management, and perceived organizational performance. Drawing from the Central Personnel Data File and the 2004 Federal Human Capital Survey, their findings suggest that racial diversity relates negatively to organizational performance. When moderated by diversity management policies and practices and team processes, however, racial diversity correlates positively with organizational performance. Gender and age diversity and their interactions with contextual variables produce mixed results, suggesting that gender and age diversity reflect more complicated relationships. This article provides evidence for several benefits derived from effectively managing diversity.     

How Creating Semiautonomous Agencies Affects Staff Satisfaction

Abstract

Structural reforms such as the creation of autonomous agencies are a widely heralded solution for a multitude of problems in the public sector. These reforms have effects on public employees. This article shows how the structural disaggregation of ministries into autonomous agencies affects staff satisfaction with the organization. The article discusses three cases, where Dutch public organizations were either disaggregated from a ministry or reaggregated to the ministry. These structural reforms constitute a quasiexperimental setting where effects on agency staff and parent ministry staff are compared. In one case, creating the agency led to a decrease in staff satisfaction with the organization as compared to the staff that remained within the ministry. A second case showed that these negative effects linger and can last for more than eight years. An inverse organizational change—reaggregation—caused inverse effects: increasing satisfaction with the organization.     

Opening the Black Box of Administrative Reform: A Strategic-Relational Analysis of Agency Responses to Termination Threats

ABSTRACT

How do public agencies respond when reform proposals threaten downsizing, reduction in functions, or termination? Agency survival during administrative reform is conventionally explained by structural characteristics, informed by the hardwiring thesis derived from the politics of the U.S. federal government. Parliamentary systems provide greater opportunity for agency reform, but there is little evidence of how agencies respond to such proposals or how proposals are altered prior to decision. We consider agencies as active participants in the reform processes, using strategic-relational theory to analyse their strategizing. The article employs detailed empirical evidence on 12 agencies subject to reform by the UK government between 2010 and 2013. We identify three archetypical defence strategies—technical expert, network node, and marginal adaptor—and argue that coding agency strategies alongside structural analysis can help better explain reform outcomes.     

Ability to Face Threats of Cyberterrorism: Factors Associated with Organizational Competence

ABSTRACT

Acts of cyberterrorism represent potential, significant negative effects to property, infrastructure systems, security, and an overall way of life. These disruptions garner significant attention from government and the public. Managers concerned by threats of cyberterrorism should understand the components that enhance organizational competence so that doubt and fear do not overtake organizational members when faced with such extreme events. Although organizational competence is important in everyday organizational behaviors, the presence of confidence in organizational abilities is especially critical when operating in the midst of the ambiguity and destructive disruptions associated with cyberterrorist threats. We empirically assess three factors associated with competence for organizations facing simulated cyberterror attacks. Our results support the relationship between two of these factors—organizational identification and deference to expertise—with organizational competence. These findings contribute to research concerning the antecedents critical to organizational competence and also add to the growing research on cyberterrorism.     

Reexamining Causes and Consequences: Does Administrative Intensity Matter for Organizational Performance?

ABSTRACT

This study examines the relationship between organizational structure (size and complexity) and administrative intensity and, subsequently, the effect of administrative intensity on organizational performance in the context of four-year institutions of higher education in the United States between 2003 and 2009. Organizational size has a negative effect on administrative intensity and supports the notion of economies of scale. Size and complexity also interact such that complexity has a greater effect on total administrative intensity in larger organizations. While administrative intensity has a nonlinear relationship with degree productivity, suggesting a tipping point of 30% total administration, it has little direct effect on graduation rates.     

Business Experts on Public Sector Boards: What Do They Contribute?

Although public management reforms around the world have given business experts an enhanced role in the governance of public sector organizations, the impact of this change is poorly understood. Drawing from the literature on board human capital as a theoretical framework and focusing on the case of hospital boards in the English National Health Service, this concern is addressed by investigating whether increasing the presence of individuals with business expertise has any significant relationship with organizational performance. The findings show that while business expertise appears to have no influence on service quality, it does have a positive effect on financial performance. However, this only applies to governing boards that are less experienced in terms of their collective tenure. The findings lend partial support to board capital theory but also show that in certain conditions generic business expertise can be a valuable asset for public sector organizations.     

Organizational Influences,Public Service Motivation and Work Outcomes: An Australian Study

ABSTRACT

This research examines the influence of organizational factors—intrinsic rewards, extrinsic rewards, work relations with management, and work relations with co-workers—on the relationship between public service motivation (PSM) and two work outcomes: job satisfaction and organizational commitment. Using data from the 2005 Australian Survey of Social Attitudes of over 2,200 employees in the Australian public and private sectors, this study found a direct and significant association between the two work outcomes and PSM (and the PSM-fit variable). Despite their significant and direct effects on the work outcomes, the organizational factors did not show any significant moderating effects on the relationships between PSM-fit and the two work outcomes.