Contemporary Challenges in Local Government: Evolving Roles and Responsibilities,Structures, and Processes

Editor's Note: The International City/County Management Association (ICMA) celebrates the 100th anniversary of its founding in 2014. This article is the first of several that will appear during the next year about the council‐manager plan to commemorate ICMA's 100th anniversary. Three contemporary leadership challenges face local governments today. The first encourages department heads to more actively work the intersection between political and administrative arenas. The second promotes collaborative work, synchronizing city and county boundaries with problems that have no jurisdictional homes. The third argues that citizen engagement is no longer optional—it is imperative—and that connecting engagement initiatives to traditional political values and governing processes is an important mark of successful community building. These three leadership challenges stem from a widening gap between the arenas of politics and administration—that is, between what is politically acceptable in public policy making and what is administratively sustainable. The gap is fueled by conflicting trends experienced locally and common internationally. Failure to bridge this gap between political acceptability and administrative sustainability results in decreasing legitimacy for governing institutions and increasing challenges.     

Politics of E‐Government: E‐Government and the Political Control of Bureaucracy

This case study reports an innovative e‐government experiment by a local government in Seoul, South Korea—Gangnam‐gu. A new local political leadership in Gangnam made strategic use of e‐government applications to exert greater political control over the local civil service bureaucracy. The authors find that e‐government applications possess political properties that can be applied effectively by the political leadership as instruments to improve control over the government bureaucracy as well as to enhance essential government accountability and transparency. The political circumstances underlying e‐government development as well as its impact on local government are reported, along with key variables associated with this innovation and directions for future research.     

The Impact of Management Capacity on Government Innovation in Korea: An Empirical Study

ABSTRACT

A common assertion within public management is that management capacity drives policy outcomes. This study tests that argument, focusing on an important policy outcome—innovation. Data were drawn from the Korean government to examine the impact of government's management capacity for the adoption and implementation of innovation. The results confirm that both managerial behaviors and structures are drivers of government innovation. The adoption and implementation of innovative projects require full-scale management capacity, encompassing innovative leadership, a quality workforce, appropriate structures/systems, and the ability to manage external influences. These results suggest that public management capacity drives innovation in government by changing managerial behaviors and structures. Implications of these results for managing government innovation are discussed.     

Australian MPs and the Internet: Avoiding the Digital Age?1

New media technologies, such as the internet and email, have been seen as providing opportunities to reinvigorate representative democracy and parliamentary institutions. This article examines the use of new technologies by Australian Members of Parliament (MPs). It looks at the growth and function of MPs' websites and assesses how far such technologies might facilitate changes in their electorate, party and parliamentary roles. We analyse what factors persuade MPs to move online and how they then use the technologies. The results indicate that while websites amongst legislators are growing, they are used primarily as supplementary, administrative tools. Overall, technological innovation in the Australian Parliament is still relatively rare and it appears there are systemic barriers that limit the potential of information communication technologies (ICTs) in the representative process.     

Bending the arc of nonprofit leadership toward justice: Impacts of racial representation and organizational publicness on diversifying executive leadership

Nonprofits are critical partners in the delivery of government-funded human services in the US, but there is evidence of a persistent racial leadership gap in the sector, whereby Black and Latino Executive Directors are dramatically under-represented. Why does this gap persist despite increased attention to this issue in recent years? And what organizational and community-level factors do shape the likelihood that nonprofits will hire a Black or Latino Executive Director (ED)? We answer these questions through a mixed-methods sequential design, drawing on survey data from 606 nonprofit organizations across the US, along with interview data from 12 nonprofit executives representing expert informants in the Chicago metro area. Consistent with theories of representation and publicness, we find demographic representation at the board level positively linked to the hiring of a Black or Latino ED, but government funding has inconsistent effects. We further elaborate on these findings through our qualitative data.     

Transformational Leadership and Organizational Processes: Influencing Public Performance

Leaders are essential actors in public performance improvement and organizational change. However, a key question has not been adequately addressed in prior literature on the topic: how do leadership processes make a difference? Using data on New York City public schools, this article explores the organizational mechanisms by which a specific form of principal's leadership—transformational leadership—influences objective organizational outcomes as measured by standardized test scores. The empirical results indicate that a principal's transformational leadership style affects student test scores through the mediating effects of purposeful performance information use and stakeholder engagement.     

Managing in the Regulatory Thicket: Regulation Legitimacy and Expertise

Although the influence of government regulation on organizations is undeniable, empirical research in this field is scarce. This article investigates how the understanding of and attitudes toward government regulation among public, nonprofit, and for‐profit managers affect organizational performance, using U.S. nursing homes as the empirical setting. Findings suggest that managers’ perceptions of regulation legitimacy—views of regulation fairness, inspectors’ effectiveness, and internal utility of the mandates—positively affect service quality. Subgroup analysis suggests that managers’ views of regulation matter in nonprofit and for‐profit organizations but not in public organizations. In nonprofit homes, performance declines when managers report higher regulatory expertise—better knowledge of the regulatory standards. In for‐profit facilities, frequent communication with regulators lowers quality. These findings suggest that the regulated entities’ views of government regulation are central to their success, which necessitates improvements in the regulatory process.     

Only When We Agree! How Value Congruence Moderates the Impact of Goal‐Oriented Leadership on Public Service Motivation

Questions of how and when managers can motivate the workforce of public organizations are fundamental for scholars and practitioners alike. A dominant assertion is that goal‐oriented leadership strategies, such as transformational leadership, foster public service motivation (PSM). However, existing studies rely on designs that are vulnerable to endogeneity and rarely investigate the scope conditions of the leadership‐PSM relationship. Combining a field experiment with 364 managers and surveys of their 3,470 employees, the authors show that transformational leadership and transactional leadership, when induced experimentally, do not have the claimed positive effect on PSM. In fact, the results indicate that goal‐oriented leadership can have demotivating effects when employee and organizational values are incongruent. Public managers should therefore carefully assess existing levels of value (in)congruence before implementing goal‐oriented leadership strategies, and—in case of value conflicts—seek to align perceptions of the desirable among members of the organization.     

Loan delinquency in community lending organizations: Case studies of neighborworks organizations

Abstract

This article reports on qualitative data gathered through interviews conducted in 1996 with key leadership and staff from 13 community lending organizations. Loan servicing and collection procedures within the organizations were examined. Findings suggest that several organizational factors of nonprofit lenders are related to their loan delinquency rates: social networks, business culture, funding sources, composition of the board and loan committees, staff structure, loan intake, and collection tools.

The study also finds that the nonprofit sector's institutional environment and its partnership with the private sector in a mutually beneficial process influence the loan delinquency rate. More specifically, active participation of local bankers in NeighborWorks¹ loan committees, diverse funding sources (from both the public and private sectors), and a diffusion of business practices through dense social networks are related to NeighborWorks’ loan servicing and collection policy and procedures. These factors in turn influence NeighborWorks’ rehabilitation loan delinquency rates.     

The Challenge of Strengthening Nonprofits and Civil Society

The Winter Commission Report was centrally concerned with improving the performance of state and local governments. Since the issuance of the commission’s report in 1993, the delivery of services by state and local government has been substantially changed by the growing role of nonprofit organizations in providing public services and representing citizen interests. As a result, state and local governments and nonprofit agencies are faced with complex governance challenges. The central argument of this paper is that despite the dramatic changes in the relationship between government and nonprofit organizations in recent years, the key tenets of the Winter Commission report—the need for improved training and education, greater transparency and accountability, more emphasis on performance, and improved citizen engagement—remain deeply relevant in improving the governance of the public services in an increasingly complex policy process and service delivery system at the state and local levels.     

Do Donors Penalize Nonprofit Organizations with Accumulated Wealth?

Does current accumulated wealth by nonprofit organizations influence contributions from individuals? Existing research demonstrates that financial reserves aid program continuity during economic downturns. Yet donors, charity watchdogs, and policy makers voice concern about accumulated wealth in nonprofits. This empirical analysis examines whether the expected negative relationship occurs when donors perceive accumulated wealth as excessive. The results support the conclusion that future contributions are negatively affected when wealth levels are deemed excessive. Nonprofit managers concerned that accumulated wealth will diminish donations should consider financial strategies that will allow their organizations to build modest—but not excessive—reserves.     

Leading the Implementation of ICT Innovations

This article analyzes the associations between leadership, the implementation of information and communication technology (ICT) innovations, and performance. After reviewing theories and empirical evidence from the literature on leading change, ICT innovations, and performance, the authors elaborate hypotheses and test them in an analysis of the implementation of an ICT innovation in a Danish multisite hospital. In a quasi‐experimental research design using panel data, survey responses from more than 2,000 employees before and after the implementation were generated, in addition to qualitative interviews with change agents. Findings indicate how differences in leadership during the ICT implementation process have an important impact on performance after the implementation. Mobilization of initial support, directive leadership through information and technical assistance, participative leadership through employee involvement, and locally adapted implementation processes are important leadership factors associated with performance. The article concludes by discussing broader perspectives of the study and implications for practice, theory, and future research.     

Does Involvement in Performance Management Routines Encourage Performance Information Use? Evaluating GPRA and PART

The Government Performance and Results Act (GPRA) of 1993 and the George W. Bush administration’s Program Assessment Rating Tool (PART) established new routines that were intended to foster performance management practices. Using data from two surveys, the authors find that the involvement of agency employees in GPRA processes and PART reviews generally had little direct effect on performance information use once other factors are accounted for. The main exception is that managerial involvement in GPRA processes and PART reviews is associated with the use of performance data to refine measures and goals. This reflects the limits of government‐wide reform efforts that depend on difficult‐to‐observe bureaucratic behavior. The authors also find that a series of organizational factors—leadership commitment to results, learning routines led by supervisors, the motivational nature of the task, and the ability to link measures to actions—are positive predictors of performance information use.     

Managing the Entanglement: Complexity Leadership in Public Sector Systems

Complexity in public sector systems requires leaders to balance the administrative practices necessary to be aligned and efficient in the management of routine challenges and the adaptive practices required to respond to dynamic circumstances. Conventional notions of leadership in the field of public administration do not fully explain the role of leadership in balancing the entanglement of formal, top‐down, administrative functions and informal, emergent, adaptive functions within public sector settings with different levels of complexity. Drawing on and extending existing complexity leadership constructs, this article explores how leadership is enacted over the duration of six urban regeneration projects representing high, medium, and low levels of project complexity. The article suggests that greater attention needs to be paid to the tensions inherent in enabling leadership if actors are to cope with the complex, collaborative, cross‐boundary, adaptive work in which they are increasingly engaged.     

Nonprofit Policy Advocacy under Authoritarianism

Despite the increasing volume and significance of research on nonprofit advocacy, most studies have focused on the phenomenon only in Western countries. This article expands the scope of the literature by examining the advocacy activities of nongovernmental organizations (NGOs) in authoritarian China. This article focuses on three aspects of advocacy behavior: advocacy investment and use of insider and outsider tactics. Data analyses of an original nationwide survey of 267 environmental NGOs and semistructured interviews with 30 highlight how resource and institutional factors—government funding, government affiliation, foundation funding, and peer collaborations—shape NGO advocacy in China. The findings also suggest ways in which institutional actors may enhance NGOs’ capacity for policy advocacy.     

Measuring the Growth of the Nonprofit Sector: A Longitudinal Analysis

Scholars have examined the effects of various environmental factors on the nonprofit sector to elucidate the role of nonprofits in modern society. However, researchers report a paucity of information on nonprofit growth using longitudinal data, especially outside the United States. This article analyzes 40 years of political, economic, and sociodemographic data in South Korea to test theories of nonprofit growth and to determine whether the concepts and theories developed for Western societies can be successfully applied in South Korea. The results show that demand‐ and supply‐side economic theories account for variations in nonprofit growth, but the existing socioeconomic explanations fail to recognize the political influences on nonprofit development. Nonprofit organizations have emerged from social and economic necessity but have also been nurtured within a political framework.     

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.     

China: Administrative Corruption — Experience in a Comparative Context

As a new world economy emerges what is being learned about the accompanying phenomenon of administrative corruption? To probe this question we combine study of current developments in China with prevailing theories of corruption. The administrative corruption experience, as it has unfolded during the economic development thrust of the Deng reform era, is described and analysed in a comparative context. In specifically interjecting the American experience we suggest that a balanced control response to corruption —rather than an elimination focus—could be a fruitful avenue for policy and research, and that informal, social approaches to corruption control are pregnant with possibilities. China's experience offers a significant opportunity to push the margin of wisdom on these issues as they relate to economic and political development.     

Complexity Science—An Alternative Framework for Understanding Strategic Management in Public Serving Organizations

ABSTRACT

Contemporary public-serving organizations—both government and nonprofit organizations—face increasing pressure to be innovative and adaptable amidst ongoing global changes. However, existing frameworks of strategic management are generally inadequate in managing the tensions between conflicting imperatives to be adaptable and innovative while providing stable and reliable services. In addition, existing strategic frameworks generally assume that strategic processes are dominated by a group of top decision makers. In contrast, public-serving organizations operate under growing legal and normative expectations to involve a diverse range of participants—individuals and organizations—in the strategy process.

In this paper, we propose that complexity science offers promise in providing a theoretical framework that describes inclusive strategic processes that are associated with both innovation and emergent order. To more fully understand the potential contributions of complexity science, we provide an introduction to complexity science and compare and contrast it to the existing frameworks that currently dominate research on strategic management in public-serving organizations. We then describe and illustrate how complexity science informs our understanding of strategy content, formulation, and implementation and its implications for inclusive management practices.     

Leadership and Organizational Culture: Sustaining Dialogue between Practitioners and Scholars

Few topics in the study of contemporary public organizations better illustrate the burdens—and potential benefits—of sustaining dialogue between practitioners and scholars than the interplay between leadership, organizational culture, and public sector performance. Following two decades of intensive research and advocacy, the last 10 years have seen diminished scholarly attention to this subject, while efforts to shape culture remain central to the leadership of public organizations. This essay reflects on the 8 Cs of organizational culture: complicated, control, competence, commitments, credibility, conflict, context, and change.