The effect of stakeholder culture on managers’ perceptions of stakeholder attributes in Australian not-for-profit organizations

We examine the relation between stakeholder culture and managers’ perceptions of stakeholder attributes of power, legitimacy, and urgency in Australian not-for-profit (NFP) organizations. Examination of this relation is important because managers’ perceptions of stakeholder attributes determine how stakeholder relationships are managed, which affects (positively or negatively) the ability of NFP organizations to fulfil their social mission. Data were collected through a survey of top managers of 478 NFP organizations. Our results show that the stakeholder cultures of altruist and instrumentalist, manifesting different moral values, differentially affect NFP managers’ perceptions of the three stakeholder attributes for clients and government. Specifically, an altruist stakeholder culture affects managers’ perception of client legitimacy, while an instrumentalist culture affects managers’ perception of government power. We also investigate the mediating effects of power and legitimacy on the relation between stakeholder cultures and urgency. We find that managers’ perceptions of power and legitimacy act as crucial cues for managers to perceive stakeholder urgency. Our study contributes to the stakeholder management literature and has important implications for managers of NFP organizations in managing stakeholder relationships in the contemporary environment.     

Resource Dependence,Alternative Supply Sources,and the Design of Formal Contracts

Employing a resource dependence theoretical framework, the authors analyze a set of recently awarded contracts between the Environmental Protection Agency and its suppliers to determine how joint dependence, supplier dependence, and government dependence affect contract design—specifically, the decision to use a cost‐plus (flexible) contract. Findings provide evidence that organizations choose contract designs that will reduce uncertainty related to securing critical resources. However, different dimensions of dependence have different effects: (1) higher levels of joint dependence lead to more flexible governance forms; (2) the lack of alternative suppliers is a more important factor than high levels of financial dependence; and (3) the parties involved in government procurement are likely to perceive government as a unique type of organization, which, in turn, has implications for contract design choices. The authors conclude with managerial strategies for restructuring power/dependence relationships to achieve the contract design most likely to yield a surplus in the exchange.     

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.     

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.     

Implications of GASB's New Reporting Model for Municipal Bond Analysts and Managers

This article explores the implications of the new Government Accounting Standards Board (GASB) Statement No. 34 reporting model for municipal bond analysts and managers. Bond analysts and state and local government managers have overlapping objectives for the use of governmental financial information, but managers also face the costly task of implementing the new model. The new and improved financial information provided by the new reporting model will permit users of the information to better understand a government's long-term and short-term financial position and changes in financial position. The new model also has important ramifications for evaluating performance, particularly regarding the reporting of net costs for each program or function.     

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.     

Accounting for Time: Comparing Temporal and Atemporal Analyses of the Business Case for Diversity Management

Public management strategies have an inherent temporal component: managers take action at one time, and employees or organizations respond at a later time. However, it is common to study such strategies using atemporal research. Concerns about the inadequacy of this approach have led scholars to advocate for public management research that incorporates time. Because following this advice is difficult, it is important to evaluate how the omission of time affects the understanding of public management strategies. This article compares temporal and atemporal analyses of the business case for diversity management—the expectation that organizations that manage diversity well will also improve their performance. Using survey and personnel data drawn from U.S. federal government subagencies, the article shows that both analyses support this general expectation. However, the cross‐sectional analysis, by failing to account for organizational inertia, portrays diversity management as more potent than the analyses taking time into account.     

Before There Was Enron,There Was Orange County: A Study of Local Government Financial‐Oversight Committees

Recent financial scandals in some of America's largest corporations have prompted popular speculation that a similar crisis may occur within the public sector and, therefore, that government and nonprofit organizations should be required to adopt financial oversight practices similar to those that are mandated of publicly‐traded corporations in the Sarbanes‐Oxley Act of 2002. One of those mandated practices—the use of financial‐oversight committees—is already a common practice in public organizations, though little is known about its effectiveness. This study uses a national sample of local governments to examine whether financial‐oversight committees improve financial control and strengthen stakeholder confidence in financial reporting. The findings provide preliminary support for the use of financial‐oversight committees as an effective tool to improve financial accountability in local government.     

Fight,Flee or Fulminate: Prime Ministerial Challengers,Strategic Choices and the Rites of Succession

Prime ministers often have to work with prime ministerial aspirants, senior ministers who regard themselves as possible successors. But can these challengers seize the job when the prime ministers are reluctant to stand down? Using evidence from Canada, Britain and Australia, the article explores the conditions in which successions have taken place and the capacity of the prime ministerial aspirants to expedite the process. It identifies three alternative strategies that are shaped by the party rules in the different countries. The aspirants may flee, fight or fulminate. Which strategy will best improve their chances of winning the top job depends on the traditional or developing modes of leadership election that their parties have adopted. Some processes provide the means to assassinate the leader. Others have no opportunity to act; rivals can do nothing but wait, either in or outside parliament. The article finds that the broader the constituency that elects the leaders, the more secure those leaders are when their reputation declines.     

The Anatomy of Retention in the U.S. Federal Government: Exit,Voice, or Money?

Employee turnover—due to retirement, moving from one work unit to another, or leaving an organization entirely—imposes considerable costs on organizations. While private organizations make use of several high-powered incentives to retain workers, public organizations typically lack comparable incentives. Fortunately, public employees frequently possess stronger intrinsic motives to stay. Our results indicate that employee voice is an especially useful tool in the U.S. federal government. Evidence is also consistent with a substantial “contagion” effect: when others in an agency seek to leave, individual employees in that agency are more likely to report turnover intentions than similar employees in agencies with more “stayers.”     

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.     

The Boston Marathon Bombings: Who's to Blame and Why It Matters for Public Administration

This article examines how elite attributions of blame—statements from politicians and high‐level public administrators assigning responsibility for failure to prevent the Boston Marathon bombings—affect citizens’ beliefs regarding which government organizations, if any, are culpable for failing to prevent the bombings. The primary hypothesis is that public administrators, owing to their greater credibility relative to politicians, will more strongly influence citizens’ notions of who is to blame. Findings show that public administrators are viewed as significantly more credible among Democrats, and this credibility advantage translates into influence. Additionally, blame statements implicating the Federal Bureau of Investigation for failing to prevent the Boston Marathon bombings are particularly influential among Republicans, and exculpatory statements are particularly influential among Democrats. As discussed in the context of the Boston Marathon bombings, the public process of attributing blame for a perceived governmental failure has important implications for public administration.     

Political Parties and Intergovernmental Relations in 1984: The Consequences of Party Renewal for Territorial Constituencies

Democratic and Republican efforts at party renewal have differedin approach, but both can be recognized as intergovernmentalphenomena having significant implications for American federalism.The Democratic Party's national charter and delegate selectionrules, for instance, have federalized the governing structureof the party. The national Republican Party organization hasdeveloped such a large base of financial resources andcampaignservices that state Republican parties and candidate committeeshave begun to accept national party authority along with itsmoney. Moreover, as national, state, and local parties and candidatesincreasingly coordinate their delegate selection, finance, andother campaigh activities, they may transform the decentralizedparty system that has been a protector of state and local influencewithin the federal government. National ideological constituencieswithin both party organizations may rival territorial and functionalconstituencies for the attention of federal elected officials.     

Corporate Psychopaths and organizational type

This paper looks at one of the members of the ‘dark triad’ of managers with malevolent personalities and investigates whether Corporate Psychopaths are to be found at greater levels of incidence in any particular type of organization. The paper introduces the topic of research into the characters of leaders and explains why this is important. It then discusses who Psychopaths and Corporate Psychopaths are in comparison with the other members of the ‘dark triad’; Machiavellians and Narcissists. The paper discusses some of the theoretical implications of having Corporate Psychopaths in organizations and then presents some evidence that they are to be found at greater incidence levels in financial service institutions and the civil service rather than in primary industries and retail services. The paper looks at the implications of the presence of Corporate Psychopaths in terms of lower levels of corporate social responsibility and mentions that Corporate Psychopaths also influence productivity and organizational constraints. Copyright © 2010 John Wiley & Sons, Ltd.     

Red Tape: Developing and Validating a New Job‐Centered Measure

Red tape studies typically focus on burdensome rules that have negative effects on organizations, as perceived by managers. The one‐item general red tape scale is representative of this approach. However, scholars have called for improved measures that address the scale's shortcomings. This article introduces a new measurement scale that features (1) red tape as a two‐dimensional construct that includes compliance burden and lack of functionality and (2) a job‐centered approach that measures red tape as experienced by employees in their jobs rather than more generally in the organization. A set of survey questions derived from interviews with government employees was validated using data from 1,203 government employees. The findings indicate that the two‐dimensional job‐centered red tape scale is reliable and valid. The authors conclude that this measure can improve research and be used by managers for a “quick scan” to detect the location and severity of red tape.     

Outsourcing in the public services: a comparative analysis of practice,capability and impact

This article analyses thinking and practice concerning privatization and outsourcing in the public services and compares recent trends with the findings of an extensive comparative survey of outsourcing conducted at Cranfield School of Management. Particular attention is paid to the systems and processes being outsourced, their importance to the organization and the impact of outsourcing on public service organizations. The results of the survey suggest that public service managers are more skilful than managers from the private sector at handling the transactional aspects of outsourcing. However, managers from public service organizations, unlike managers from the private sector, assert that outsourcing is damaging the running of public service enterprises. It is concluded that until the political and administrative processes are more closely aligned public service managers will continue to hold a more negative view of outsourcing. Copyright © 2001 John Wiley & Sons, Ltd.     

Audit Recommendation Follow-Up Systems: A Survey of the States

This article presents the results of a survey of audit recommendation follow-up systems currently utilized by state governments. The lack of empirical research on audit recommendation follow-up systems represents a void in the public sector financial management literature. To fill this void, the authors developed a survey instrument, which was mailed to each state auditor's office having primary responsibility for following up on audit recommendations made during the annual Comprehensive Annual Financial Report (CAFR). The purpose of the study is three-fold: (1) to describe the major elements of state government audit recommendation follow-up systems currently in use, (2) to encourage managers, analysts, and others working at all levels of government to access policies and procedures for audit recommendation follow-up within their own organizations, and (3) to encourage other researchers to explore these systems in greater depth and detail, particularly their uses in financial management, reporting, and other decision-making activities. U.S. Government Auditing Standards (commonly called The Yellow Book) requires auditors to communicate their findings and provide recommendations that lead to improvements in government operations and programs. Government managers and officials must follow up (monitor) on audit recommendations to ensure their effective implementation. This research represents an initial effort to develop a profile of the characteristics of state government audit recommendation follow-up systems currently in use.     

Does Ethical Leadership Matter in Government? Effects on Organizational Commitment,Absenteeism, and Willingness to Report Ethical Problems

Recent ethical scandals involving managers in government organizations have highlighted the need for more research on ethical leadership in public sector organizations. To assess the consequences of ethical leadership, 161 managers in a large state government agency and 415 of their direct reports were surveyed, and personnel records were obtained to measure absenteeism. Results indicate that after controlling for the effects of employee characteristics, perceptions of procedural fairness, and supportive leader behavior, ethical leadership reduced absenteeism and had a positive influence on organizational commitment and willingness to report ethical problems. Implications of the findings and suggestions for future research are presented.     

Exploring the Role of Nonprofits in Public Service Provision: Moving from Coproduction to Cogovernance

This article investigates the determinants of nonprofits' involvement in cogovernance, or the planning and design of public services, using a unique data set of park‐supporting nonprofit organizations in large U.S. cities. The results indicate that nonprofits are more likely to get involved in cogovernance when they are younger, larger, and operate in communities that are more resourceful and stable. In addition, the likelihood of nonprofits' involvement in cogovernance is negatively associated with the level of social capital and government capacity to provide corresponding public services. The article points to an emerging mode of government‐nonprofit collaboration that goes beyond the production and delivery of public services. As public managers face extensive challenges in sustaining the desired level of public services, these findings have important policy implications for efforts to promote citizen participation and cross‐sector solutions to complex social problems.