The Big End of Town Meets the Local Council: The Investment Habitus of Four Sets of Australian Councils during the GFC

The Global Financial Crisis of 2008 led to a substantial write‐down in the value of investments such as collateralised debt obligations (CDOs) with one class of investors being NSW Local councils.  This article analyses interviews with four different investor types (or sets) of local councils, each of which took a substantially different approach to CDO investment. This categorisation into sets was based on interviews of 28 individuals working within 14 local councils as well as commentaries on legal cases involving a class action of local councils suing Lehman Brothers Australia as well as Grange Securities over losses in their investments. This article adopts Bourdieu's Theory of Practice to describe and explain behaviour regarding decisions to invest (or not) in CDOs. Interesting themes arise regarding differing views on the appropriate role of local councils, and on the degree and form of ‘capital’ (which includes knowledge, competencies, skills, and economic resources) that a council should have before investing in sophisticated financial products. This article explores the role that field, habitus, and capital played in moderating and influencing council investment making decisions. The analysis shows that these Bourdieuian concepts can be utilised to help explain individual behaviour. This case study shows that excessive capital left in the hands of individuals may result in suboptimal decision making. Local councils may need to consider ways of implementing policies and procedures that can be used to moderate individual action.     

How nonprofits grow: a model.

When nonprofit organizations operate in a field of service that might otherwise be provided by government or by for-profit organizations, such as schools, hospitals, or museums, their decisions on the type and amount of services to be delivered are motivated by factors that are quite distinctive. Because they must operate on a break-even basis with revenues raised on a voluntary basis, nonprofit organizations typically take on activities from which they derive no satisfaction in order to subsidize activities that they regard as of higher value. As a result, the mix of services they offer and the charges they impose will generally be quite different from those of a government institution or a for-profit organization.     

Toward Interest Inarticulation: A Major Consequence of Corporatism for Interest Organizations

The main issue discussed is the difficulties in collective action. Three logics of collective action are identified and discussed in terms of their implications for solidarity within interest organizations and for organizational action. Both solidarity and organizational action are important for successful policymaking. Policies can be decided without the support of the members, but their implementation may thus prove difficult. The theoretical issue of interest articulation by interest organizations is the important one here. The article concludes that encompassing organizations will most likely have difficulty in articulating a definite organizational policy. It is maintained that corporatism and public responsibility-taking can severely hamper the articulation of organized special interests. They lead to interest inarticulation. This may lead to legitimacy problems for the organization and be one explanation for the recent decline in certain established interest organizations in Sweden and recent discussions on the future of corporatism.     

Gender and Emotional Labor in Public Organizations: An Empirical Examination of the Link to Performance

Scholars of public organizations have begun to emphasize emotional labor in studies of gender in the workplace, finding that the skills women bring to organizations are often overlooked and undercompensated even though they play a vital role in the organization. Emotional labor is an individual's effort to present emotions in a way that is desired by the organization. The authors hypothesize that employers with greater emotional labor expectations of their employees will have more effective interactions with clients, better internal relationships, and superior program performance. This article tests the effects of emotional labor in a bureaucratic workforce over time. Multiple regression results show that organizations with more women at the street level have higher overall organizational performance. Additionally, emotional labor contributes to organizational productivity over and above its role in employee turnover and client satisfaction.     

Voter reaction to legislator dissent across political systems

Research shows that legislators who dissent from the political line of their party are rewarded among constituents. This raises concerns about future party cohesiveness and, in turn, parties’ ability to govern and voters' ability to hold parties accountable. However, nearly all studies are conducted in single-member district systems, such as the United States and United Kingdom, which are generally considered most-likely settings for observing such effects. In this note, we conduct a country comparative study of voter reaction to legislator dissent across single-member and multi-member district systems (US, UK and Denmark). Building off existing theories, we argue that voters in multi-member districts also reward legislator dissent but that the reward is significantly weaker. We support this argument with observational and experimental data. Our results suggest that concerns regarding party governance and accountability associated with legislator party dissent extend to—but are less pertinent in—the more widespread multi-member district systems.     

The Reformer's Spirit: How Public Administrators Fuel Training in the Skills of Good Governance

The public administration literature has long identified public administrators as key players in achieving government reform. Public managers may be motivated to provide employee access to training in governance skills by several factors, including the need to fulfill the current functions of government, to expand employee responsibilities, or to reform administrative processes and/or programs. The authors examine the impact of public managers on the availability of governance skills training by observing how the desire to achieve reform influences their training decisions in light of other motivating factors. They find that training in citizen input, client relations, and performance indicators are significantly and substantively more prevalent in organizations when public managers believe that such training is necessary for reform, and that the more “democratic” a skill, the more likely a reform motivation will outweigh other factors.     

Marginal vote seeking in multi member districts

Differences in the number of seats that similar vote shares can deliver make some votes more marginal than others. In multi-member district systems, high-marginal-return votes are very volatile and research has assumed that parties do not go after them. This paper rejects this assumption, introducing a theory of marginal vote seeking across multi-member districts. By leveraging a novel mathematical algorithm and a cross sectional data set, we find evidence that parties seek marginal votes in these systems despite their volatility. In the case of the poverty alleviation programs used here, their use to attempt to secure marginal votes overwhelms the program’s poverty alleviation goals. Estimates suggest that a district’s share of a program’s budget can increase by as much as 8% simply because of this district’s likelihood of delivering marginal votes.     

The Limits and Possibilities of Volunteering: A Framework for Explaining the Scope of Volunteer Involvement in Public and Nonprofit Organizations

Despite popular rhetoric concerning the benefits of volunteerism for public and nonprofit organizations, the use and management of volunteers to assist in the delivery of services is uneven: some organizations rely heavily on volunteer labor for this purpose, while others circumscribe volunteer contributions or eschew volunteer involvement altogether. This article introduces eight dimensions of volunteer involvement—four involving organizational decisions and four regarding volunteers’ decisions—that make up the overall scope of volunteer involvement in an organization. Based on a review of the literature, the article presents a conceptual framework and several research propositions concerning how organizational characteristics, volunteer management, and environmental factors affect the overall scope of volunteer involvement in an organization.     

Do Networks Really Work? A Framework for Evaluating Public‐Sector Organizational Networks

Although cooperative, interorganizational networks have become a common mechanism for delivery of public services, evaluating their effectiveness is extremely complex and has generally been neglected. To help resolve this problem, we discuss the evaluation of networks of community-based, mostly publicly funded health, human service, and public welfare organizations. Consistent with pressures to perform effectively from a broad range of key stakeholders, we argue that networks must be evaluated at three levels of analysis: community, network, and organization/participant levels. While the three levels are related, each has its own set of effectiveness criteria that must be considered. The article offers a general discussion of network effectiveness, followed by arguments explaining effectiveness criteria and stakeholders at each level of analysis. Finally, the article examines how effectiveness at one level of network analysis may or may not match effectiveness criteria at another level and the extent to which integration across levels may be possible.     

Pressure,Legitimacy, and Innovative Behavior by Public Organizations

According to New Public Management (NPM) doctrines, public organizations involved in service delivery and policy implementation will be induced to innovative behavior if they have enough managerial autonomy and simultaneously are subjected to managerial pressure, such as result control by government or competition of other providers. This NPM pressure‐response model is tested by using survey data on 84 Flemish public organizations. These tests provide evidence for the assumed effect of NPM‐like pressure on the innovative behavior of public organizations. However, the empirical model shows more complex relationships as is assumed by NPM doctrine. These complex relationships are corroborated and explained by making reference to a multiple‐case study of four Flemish public organizations. An expanded political/administrative pressure‐response model, referring to legitimacy as a motivational force, is suggested in order to explain innovative behavior by public organizations. This model may help to understand the preconditions for spontaneous adaptation of public organizations.     

Manpower planning and development in an organization

Manpower planning has in the past relied too much on the forecasting of manpower requirements in an organization or a society. It should be more concerned with gaining a better understanding of people, and how to develop and match their skills to what organizations or societies require. Employees should be involved in the formulation of manpower policy objectives. Manpower planning involves a ‘stocktaking’ of the workforce and its skills; forecasting the future demand and supply of skills; and diagnostic approach so that adjustments can be made to meet organizational and/or country objectives. The essence of the diagnostic approach is in the understanding of the reasons for any imbalance between the supply of and demand for manpower.     

Performance and Management in the Public Sector: Testing a Model of Relative Risk Aversion

Research has demonstrated that management influences the performance of public organizations, but almost no research has explored how the success or failure of a public organization influences the decisions of those who manage it. Arguing that many decisions by public managers are analogous to risky choice, the authors use a well‐validated model of relative risk aversion to understand how such choices are influenced by managers’ perceptions of organizational performance. They theorize that managers will be less likely to encourage innovation or give discretion to employees when they are just reaching their goals relative to other performance conditions. Analyses of responses to the 2011 and 2013 Federal Employee Viewpoint Surveys provide considerable support for these assertions. The findings have significant implications for our understanding of the relationship between management and performance in public organizations.     

The politics of fund raising through grantsmanship in the human services

Funds for human service programs and services are declining, and selection criteria for funds are becoming more objective. These conditions are creating an imbalance in the system which will result in a significant change in human service funding and delivery. The climate is ripe for increased competition among those who obtain funds for human services. This article attempts to define how that competition will ultimately generate a spirit of cooperation among the survivors. To reach that point, however, grantsmen/providers, to be competitive, will need to sharpen their technical writing skills and their political skills, that is, they need to become more shrewd, prudent, and diplomatic. This article suggests some methods for improving technical grant-writing skills and developing political skills among grant writers.     

District magnitude and representation of the majority’s preferences: a comment and reinterpretation

Drawing on new data that combine recorded votes from the Swiss National Assembly with canton-level referendum results on identical legislative proposals, Portmann et al. (Public Choice 151:585–610, 2012) develop an innovative strategy to identify the effect of district magnitude on the relationship between representatives and their constituents. We replicate PSE’s central result and also estimate a related model that allows for the possibility of non-monotonicity in the relationship between district magnitude and representatives’ deviance from referendum median voters. Our results indicate that representatives elected in low-magnitude multi-member districts deviate from canton-level majorities less than either MPs from single-member districts or those from high-magnitude multi-member districts.     

Organizational implications of information technology in third world countries

The effective implementation of IT initiatives within organizations depends on its degree of acceptance at the national level and its rate of absorption within the focal organization. This paper focuses on the latter by addressing the key issues influencing the capacity of organizations to successfully implement IT initiatives. The various issues are investigated based on a case study approach using examples from Tanzania, and organized into a systems framework by considering the role of the psycho-social, the technical, the structural, the goal and the managerial systems in turn. The conclusion highlights the need of appropriate education if the full benefits of IT are to be harvested.     

Medical aid as protest: acts of citizenship for unauthorized im/migrants and refugees

This article examines organized efforts by citizens to provide medical aid to unauthorized migrants in Germany. A case study of an activist organization in Berlin highlights how prevailing forms of governance through citizenship are disrupted. Three major themes are explored. First, historical contingencies and policy realities explain why, given examples of grassroots protest by migrants in other settings, efforts in Germany have been driven primarily by citizens. Second, migrants' biolegitimacy shapes specific ideas of relative deservingness. As a result, advocacy for some groups, such as survivors of torture or refugees from specific geopolitical settings, is more highly valued than that which addresses needs of unauthorized labor migrants. Finally, although their sustained efforts have resulted in challenges to policy and called into question prevailing notions of citizenship, medical activist organizations have become increasingly institutionalized, which may jeopardize their goals. As this case illustrates, the distinctive ethics associated with providing medical care has the ability to disrupt the scaling of citizenship by the state by treating noncitizens – especially ‘illegal’ noncitizens – ostensibly as citizens, thus protesting citizenship as the exclusive organizing principle of German society.     

Share the Wealth: Redistribution Can Increase Economic Efficiency

People frequently face uncertain income and the threat of loss can inhibit economic investments. Government redistribution can insure citizens against economic losses, but its effect on people’s investment decisions depends on how they react to redistributive rules. We apply methods from experimental economics to study how a redistributive institution affects people’s investment decisions. Experiment 1 tests whether redistribution can increase economic efficiency when people face risk problems—investment opportunities that are profitable on average but could result in a loss. In a between-subject design, participants decide whether to make a risky investment either individually or under an institution that redistributes earnings equally among four group members. We find greater investment and profits when participants are required to share their earnings. In Experiment 2, we examine free-riding by comparing an institution that allows non-investors to exploit investors to an assortment institution that matches investors with investors. We find that vulnerability to free-riding suppresses investment, whereas an assortment mechanism increases investment by preventing free-riding and thereby facilitating risk pooling.     

Democracy,dictatorship and decision costs

This paper tries to help bridge the inductive and the deductive traditions in the study of democracy. I identify two empirical patterns, which I call the paradox of conflict and the paradox of decision importance. More conflict ridden societies are both less likely to be democracies, and, when democratic, more likely to be consensual rather than majoritarian. Similarly, important (revolutionary, regime-transforming) decisions are less likely to be democratic but, when democratic, they are more likely to be consensual. I use a decision-cost-minimizing model of democracy to explain those patterns. The model is developed out of the metaphor of institutions as decision producing firms, attempting to maximize quality and minimize cost of those decisions. Its main intellectual source is the transaction cost-minimizing view of organizations but the formalism owes most to Buchanan and Tullock's Calculus of Consent.     

The Fables and Foibles of Federal Capital Budgeting

This article critically evaluates the notions behind proposals to institute capital budgeting at the federal level. Four critical assumptions are found to be behind the contention that capital budgeting will improve federal investment policies: (1) an agreed-upon and accepted definition of a capital budget exists; (2) a capital budget "adds value" by improving the quality of information; (3) better information leads to better decisions; (4) better decisions lead to better actions. Each of these assumptions is evaluated using examples drawn from various levels of government and from the private sector. The general finding is that if these assumptions hold, then it is reasonable to expect that capital budgeting will lead to better programmatic decisions. Unfortunately, one or more of these assumptions usually does not hold and for this reason the case for federal capital budgeting is not very strong