Reforming Budget ritual and Budget practice: The Case of Performance Management Implementation in Virginia

Abstract

Virginia is accepted as one of the leading examples of performance-based reform among US states. This article reports on some of the key factors that have helped to ensure that these reforms have established performance as a basis for both budget ritual and budget practice. Virginia's strong record of implementation is explained as the result of a consistent legislative basis for reform, effective reform leadership by a core agency, the integration of results-oriented activities into all facets of the financial management process, a focus on high levels of citizen engagement, and an emphasis on ensuring that performance management systems are tailored to be useful.     

Leadership Climate in the Public Sector: Feelings Matter Too!

Abstract

Although there is substantial empirical evidence supporting the important role of leadership in organizational contexts, there is limited empirical evidence that focuses on the distinction between how employees feel about senior leaders and what they think about senior leaders. This is particularly true in the public-sector environment. In this paper, a model is tested that identifies key consequences of affectively and cognitively based perceptions of public-sector senior leadership. Data collected from a large public-sector organization were examined to identify the correlates of affectively and cognitively weighted perceptions of leadership. A series of regression analyses was conducted to identify more clearly the extent to which affectively and cognitively based perceptions of leadership influenced affective commitment, attitudes to change, intention to turnover, and extra-role performance. The results suggest that both affectively and cognitively based perceptions of leadership influenced organizational commitment and cynicism toward change. Extra-role behavior was influenced by the affective dimension alone, and intention to turnover was influenced by the cognitive dimension alone. The results also showed a significant interaction between the affective and cognitive dimensions in predicting intention to turnover. In general terms, the findings will prove helpful to human resource practitioners interested in diagnosing and managing the transformational leadership climate in public-sector organizations.     

Biased Budgeting in the Public Sector: Evidence from Italian Local Governments

Abstract

The purpose of this paper is to analyse, in terms of presence, determinants and purposes, the misrepresentation of expected revenues during budget formulation and the misrepresentation of actual revenues during budget execution. To this end, we use six-year panel data from Italian municipalities with populations above 15,000. Our results suggest that overestimations of current revenues are more frequent than underestimations, during both budget formulation and budget execution. In terms of determinants, our results highlight the impact on revenue misrepresentation of both political orientation and fiscal stress. Finally, in terms of purposes, we show that revenue underestimation during budget formulation and revenue overestimation during budget execution may contribute to the formation of surpluses. The former, in particular, may allow mayors to create a ‘war chest’ in non-election years, which can then be used to increase net borrowing on the eve of elections.     

Institutional Arrangements and State and Local Financial Forecasting

Abstract

The articles in this symposium present various consequences that effectively result in changes from adopted budgets during the implementation phase, which derive from institutional structure. The institutional structures referred to include such attributes as internal policy, procedural methodology, longevity in office, and reward and incentive systems related to performance outcomes

For local governments, structural influences studied include changes in leadership in the executive and legislative branches, longevity in office of budget administrators, and differences related to mayor-council vs. council-manager forms of government. Internal policies reported on cover methodology used to forecast revenues such as quantitative methods versus informed judgment, budgetary controls and spending policy related to mandated spending beyond local government control, and procedures for benchmarking within the agency as well as with peer groups and professional standards.

Consortia of governments are referenced regarding performance evaluation as is the process for gaining consensus between the executive and legislative branches, including expert outside opinion. Other influences on performance outcomes reported on are those tied to the risk-reward system built in to the institutional structure, which includes risk tolerance of the individuals who make pension fund investments.     

Presidential Leadership in a Fractured State: Capacity,Autonomy, and the American State

Abstract

This paper sets out a conceptual framework for studying the conditions under which presidential leadership in the United States can be thought of as autonomous. Unlike others, who view executive institutions as reflections of conflicts between dominant societal forces, I examine the case of the American presidency and focus on organizational–institutional considerations. Specifically, I focus on the process of institutionalization as a means of building capacity, which I argue, in contrast to others, is a necessary condition for autonomy. Additionally, Iargue that work on the presidency, and the American state in general, suffers from a level of analysis problem, which obscures opportunities for identifying and analyzing autonomous presidential leadership. I conclude with thoughts for a research agenda.     

Thailand's Quest For Results-focused Budgeting

Abstract

Budgeting in Thailand is highly centralized. The powerful Bureau of the Budget (BOB) controls each agency's spending in detail through numerous separate budget allocations (detailed line itemizing). After a failed program budget reform in the late 1990s, the Thai Government attempted to introduce a performance-based reform into this centralized, controlled setting. The reform followed a “hurdle” whereby line entities could gain greater discretion over their budgets (and move towards a performance management approach) upon “clearance” of specific hurdles—achieving minimum levels in budget basics. This article examines why this approach did not work.     

Understanding Local Political Leadership: Constitutions,Contexts and Capabilities

Despite Labour's clear vision of a new form of local political leadership, the impact of the Local Government Act 2000 has been limited - but at the same time diverse. Local authorities have overwhelmingly selected the 'least change' option, but have elaborated the new models in a variety of ways. Drawing on case study data and a new institutionalist framework, the article looks beyond formal structures at the emerging practice of local political leadership. The government's structure-led approach has not delivered its 'ideal type' of local political leadership. The interaction of constitutions, contexts and capabilities is producing diverse experiences of political leadership and an uneven patterning of change and continuity. Future reform efforts should concentrate less upon the specification and imposition of formal structures and more upon facilitating local processes of institution-building.     

Administrators and professionals in local government

This article evaluates the shift to an executive and scrutiny model in local government by assessing the changes at Devon County Council. Interviews were used to evaluate support for the changes and identify the key issues and problems. Most members had little enthusiasm for the reforms, support for the changes was dependent on the loyalty of Liberal Democrat backbenchers towards the leadership and central government's legislative agenda. The analysis revealed substantial problems with the operation of the reformed structure and suggested that the changes might fail to deliver the benefits expected by central government.     

TEACHING LEADERSHIP AS ENGAGED 21ST CENTURY SOCIAL SCIENCE: A PORTFOLI O OF TRANSITION LEARNING ECOLOGIES

ABSTRACT

This article explores four questions: (1) What are common themes in meaning among the terms social science, engaged social science, leadership, and teaching? (2) What forces are driving the need to make progress teaching leadership as engaged social science? (3) What examples in the author's portfolio illustrate a search for such progress? (4) What lessons do we draw for a future scholarship of teaching? A conclusion from experience in three recent courses (congressional, naval, and private sector-virtual) is a hypothesis that leadership is an important integrative concept in the 21st century social and behavioral sciences, and that the need for leadership practices of a high order is increasing under conditions of hyperturbulent change. Such leadership can be facilitated through problem-based, student-centered learning ecologies that model requirements to deal with the complex demands of changing boundary conditions. These “courses as transition learning ecologies” will be key mechanisms for future diffusion and increase of knowledge. An implication is to question the impact of this reasoning on the status of the public administration field as a social science. We are at the very early stages of learning how to fulfill these requirements.     

Incoherence between Tax and Development Policies: the case of the Netherlands

Abstract

This article discusses incoherence between tax and development policies, a relatively new area in the debate on policy coherence for development, using a case study of the Netherlands. Dutch business entities play a key role in tax avoidance structures of multinational corporations. We argue that the Dutch tax regime facilitates the avoidance of substantial amounts of tax revenues in developing countries when compared to the Dutch aid budget. As domestic tax revenues are an important source of financing for development, this suggests that the Dutch tax policy is incompatible with the Dutch policy on development co-operation. The lack of policy coherence is largely unintended but it has structural and political causes.     

An Exploratory Study into the Understandings and Awareness of Leadership Ethos and Its Inherent Critical Success Factors by Public Sector Officials in the Department of Trade and Industry (DTI) and the Ministry of the National Economy (ECONAT)

ABSTRACT

The purpose of this study is to examine the understandings of public sector leaders about Leadership Ethos (LE) and its inherent Critical Success Factors(CSFs) looking at their application in the public policy implementation process. The study applied an adapted theoretical paradigm on leadership that borrows from the Western and African contexts. In the light of the aim and objective of the study, both the interview schedule and survey questionnaires were used to gather information with regard to LE and its inherent CSFs. In this view, a semi-structured interview schedule was used to guide both interviews with senior public officials - one in the DTI and one in the ECONAT. A survey questionnaire was administered to public officials at middle and lower management levels working and reporting directly to the interviewed senior public officials. The purpose of the questionnaire was to reduce personal biases inherent in the responses of the senior officials, which appear to be a challenge emerging from self-perception assessments. Research findings suggest that leaders at the DTI and the ECONAT do not sufficiently demonstrate an awareness of LE and its inherent CSFs in the practice of leadership. LE enables leaders garner followers’ trust and obtain their consent; encourage followers’ commitment to organisational goals; and introduce and encourage participatory decision making processes as key factors to successful public policy implementation.     

From the Executive Board to the Classroom. What Debt Relief Means for Education in the Democratic Republic of the Congo (DRC)

ABSTRACT

This analysis re-assesses the IMF’s decision to grant debt relief to the DRC in 2010 based on the country’s poverty reduction and growth performance: would the IMF come to the same conclusion given the current knowledge available about the impact of the debt relief process on public governance and service delivery? First, it shows that, whereas the direct resource effect of this aid modality was minimal, the indirect effect was more significant: the conditionalities attached to the process helped to stabilize the economy and increased the overall budget of the Congolese state. This increased resource availability also sustainably percolated to the education sector. Second, however, the impact on social development was minimal: school enrolment increased but was hardly accompanied by extra budget per pupil, whereas more complicated challenges like disparities in access or quality of schooling were left untouched. The government’s strategy was also partly short-circuited by the electoral process.     

Changes in labour power on district and county councils: Regional patterns and policy consequences

The focus of this article is on the quality and nature of local authority leadership. Local government leadership is male-dominated and appears to be stuck in a mould that is associated with orthodox male views that emphasise operational management rather than transformational leadership. The study shows that traditional views of leadership prevail among elected members, but such views are thought to run counter to the new approaches required for modernisation. As a result it is likely that the types of leadership and skills that are needed to transform local authorities are under-utilised. The study concludes by calling for the development of new models of leadership which capitalise on the talents of both men and women.     

How does trade openness influence budget deficits in developing countries?

Abstract

This paper analyses the effects of trade openness on budget balances by distinguishing the effects of natural openness from those of trade policy. Revealed indicators of natural openness and trade policy are computed. Using GMM-system estimator, the econometric analysis focuses on 66 developing countries over 1974–98. The results show that trade openness increases a country's exposure to external shocks. This enforces the negative impact on budget balances of terms of trade instability. Additionally, trade openness influences budget balances through several other channels: corruption, income inequalities, etc. Then natural openness and trade policy have opposite effects: the former deteriorates budget balances whereas the latter enhances them.     

Russian Local Politics in the Putin–Medvedev Era

Political reforms and changes on the local level by the Putin–Medvedev leadership have resulted in an almost unprecedented turnover of leadership but they have aroused political conflict and even resistance by unsettling the political status quo throughout the 83 subnational units of the Russian Federation. The reforms have resulted in the marginalisation of the authority of city mayors, the recruitment from outside of chief executives of federation regions, and the polarisation of ethnic enclaves by national policies. Destabilising everything is the combination of a United Russia (Edinaya Rossiya) political party bent on national dominance, ambiguous liberal appeals and democratic reforms by President Medvedev, and a global economic recession.     

“I Teach Them Correct Principles and They Govern Themselves”: The Leadership Genius of the Mormon Prophet Abstract

Abstract

In an age characterized by “strong-man” or “leader-centered” leadership styles, Joseph Smith, the Mormon Prophet, set himself apart by leadership behaviors that centered in the conviction that the world of human interaction is governed by interpersonal and moral laws in just the same sense that the physical world is governed by the laws of nature. If one could identify these correct or “fixed principles,” and live in harmony with them, one would thereby gain leadership power and influence. From this belief grew his leadership dictum, “I teach them correct principles, and they govern themselves.” Specifically, we note Smith's emphasis on integrity as a foundation for leadership interaction, both in truth-telling and in living in harmony with the correct principles one knows. In addition, Smith underscored the importance of unleashing the creative talent of followers by trusting them with sizeable responsibilities (empowerment, in today's terms), in demonstrating love for followers, and in having the courage to think and act independently of mainstream thought and practice. His chief concerns in selecting a leadership team included his focus on character, building an organizational structure which would institutionalize over time the principles he taught, and then motivating followers in pursuit of challenging goals.     

Empirical Evidence of Organizational Citizenship Behavior from the Health Care Industry

Abstract

This study examined individual and work group correlates of organizational citizenship behavior (OCB) among a group of 340 technically skilled, professional, and managerial hospital employees (261 women and 79 men). Individual as well as group characteristics influenced organizational citizenship behaviors (OCBs). Implications for leaders and leadership are discussed. Proposals for future research are made.     

TQM in the courts: Maybe so,maybe not

Courts are prime candidates for the application of Total Quality Management (TQM) but also difficult settings in which to implement it. The leadership structure of courts discourages strong leadership but also requires negotiation and mediation to install new programs, so an effective chief judge can bring most of the governing body--the other judges--along when a decision is made to adopt TQM. As turnover on the bench is slow, the governing body remains throughout the period needed to institutionalize TQM. Courts already have a valuable and useful tool for thinking about “customers” and using data effectively in the Trial Court Performance Standards. Courts have been slow to adopt TQM to date, but there is growing interest and several leadership courts using TQM to improve various court functions. Courts' work mostly is processed in assembly-line fashion; using TQM's principles can help courts improve productivity, recognize and respond to customer needs more readily, and generally be better able to obtain taxpayer support. The courts are at once prime candidates for Total Quality Management (TQM) and a setting in which TQM is a hard sell. This article will explore why both elements of this statement are true. Acknowledging the difficulties, this article nonetheless concludes that TQM can and should be sold and that the courts will be better for the effort. Most Americans do not understand how courts work.(') Even less do they understand how courts are managed or why courts should involve any different management issues from other public agencies. To understand both the difficulties in having TQM accepted in courts and the fertile ground they offer, it may help to explore briefly the management context.     

Measuring Progress: Community Indicators and the Quality of Life

Abstract

As communities and local governments increasingly have become concerned about quality‐of‐life issues, community indicators have become a widely used tool to measure the status of the quality of life and progress being made toward improving it. Indicators provide a vehicle for understanding and addressing community issues from a holistic and outcomes‐oriented perspective. They are useful, within the context of an overall community‐improvement process, both as a planning tool, based on a community's vision, and as an evaluation tool to measure progress on steps taken toward improvement. Their usefulness is maximized when they are both directly tied to public‐policy and budget decision making and when the community feels a sense of ownership of the indicators through direct citizen involvement with them. This article briefly describes four major approaches to community‐indicators work, and then in more detail, illustrates one of the approaches called “quality of life.” This approach is illustrated with experiences of the Jacksonville (Florida) Community Council Inc. (JCCI), a pioneer and leader in the community‐indicators movement.     

Tax Collection in Developing Countries – New Evidence on Semi-Autonomous Revenue Agencies (SARAs)

Abstract

Over the last two decades, semi-autonomous revenue agencies (SARAs) have become a key element of public administration reform. They are supposed to improve revenue mobilisation and stabilise state–taxpayer relations. But do SARAs really outperform conventional tax administrations? This article argues that they do. Presenting the results of a panel analysis of local tax collection in Peru between 1998 and 2011, it shows that municipalities with SARAs collect more revenue than those with conventional tax administrations. The results also indicate that local revenue is more stable in municipalities with SARAs, which is good for budget policy and planning.