The (non) equivalence theorem when there are matching grants as well as lump sum grants

In developing their influential equivalence theorem Bradford and Oates (1971) implicitly assume that there is a lump sum grant only. This paper explores whether the equivalence result continues to hold when the lump sum grant is part of a program of grants-in-aid which includes a matching grant. It is shown that the equivalence results as stated by Bradford and Oates does not hold in these more general circumstances; however, a much weaker equivalence result does hold. This finding is important because there has been a tendency in the empirical literature to assume that the equivalence result holds under quite general circumstances. It is also shown here that the combined use of lump sum and matching grants can produce a reverse flypaper effect.     

Bureaucracy,inefficiency, and time

This paper examines the bureaucrat's choice between devoting resources to economic rents (organizational slack) and maximizing the budget of the agency. A new model of bureaucracy is developed using utility rather than a demand function as its foundation. It is shown that increases in income alter the slack-budget constraint to favor organizational slack over budget-maximization. Modern federal bureaucracies in the U.S. are predicted to be slack-maximizing and X-inefficient.     

The Role of Slack in Local Government Finances

The research presented here adopts an organizational approach to develop three regression models that examine why local governments accumulate slack in the form of unreserved fund balances, and what is the impact of slack resources on local governments' short‐term fiscal conditions and decisions about spending and revenues. Using data on Chicago suburban municipalities and their governments, the first model estimates the effects of long‐term and short‐term conditions (fiscal and governing) on unreserved fund balances. The second and third models examine the impact of slack resources and other factors on year‐end deficits or surpluses and changes in spending and own‐source revenues. The results show that ending balances, expenditures (size), and long‐term fiscal conditions have the greatest effect on fund balances, and that slack and current fiscal conditions have the greatest effect on ending balances and changes in revenues and spending.     

The "common sense" of the nonprofit hospital tax exemption: a policy analysis.

Although rarely discussed prior to the 1985 Utah Supreme Court ruling against Intermountain Health Care Inc., the question of whether to grant tax exemptions to nonprofit hospitals is currently being debated by federal, state, and local legislators, and by the courts. Changes to current policy seem likely. This policy analysis: (1) presents the historical and legal background; (2) examines the economic, political, and organizational implications of current tax-exemption policy; and (3) offers three alternatives to this current policy. The analysis indicates that the current policy provides little incentive for nonprofit hospitals to make contributions of charity care. Of the alternatives, eliminating the exemption is not politically feasible at this time; regulating hospital operations and outputs portends an implementation nightmare; and tying tax subsidy levels to output levels of charity care--perhaps the strongest and most efficient incentive--would require an unlikely political consensus on what constitute valid and reliable measures of charity care. If there is a movement toward subsidies, then linking subsidy amounts to levels of charity care will depend on whether policy analysts can design satisfactory empirical measures. With the advent of universal health coverage, the demand for charity care will decrease. The problem for tax-exempt hospitals will then become justifying the exemption by demonstrating the extent to which they generate community benefits at no or reduced cost to society.     

论组织冲突成因及管理对策分析

组织总是不断面对各种矛盾与冲突。组织的沟通不畅、架构不合理、成员的差异和组织资源的不足,都可造成冲突。组织冲突的管理水平关系着组织内部的和谐与稳定。冲突问题处理不当,直接影响组织目标的实现甚至威胁组织的生存和发展。必须认识到冲突具有正反两方面的作用,管理者应运用合理的管理策略将破坏性冲突转化为建设性冲突,使组织能够不断自我反省,不断创新与进步。文章通过分析、探讨组织冲突的类型和原因以及相关管理对策,为组织冲突管理的研究探索新的思路。     

Bureaucratic choice and nonoptimal provision of public goods: Theory and evidence

Local governments' allocation decisions are modeled in the context of a slack maximizing bureaucrat who produces public goods according to a production function that includes both provision and the constituents' socio-economic characteristics. To gain a better understanding of the determinants of slack, comparative statics and an empirical study of Illinois municipalities are conducted. The indirect output distance function provides efficiency scores upon which we regress several variables, representing socio-economic characteristics, costs and competition measures. We find that slack or inefficient behavior is associated with richer communities, lower education levels and a lack of competition for residents among municipalities.     

Does Organizational Image Matter? Image,Identification, and Employee Behaviors in Public and Nonprofit Organizations

Organizational image, identity, and identification are powerful concepts in terms of understanding members’ behaviors and beliefs. In particular, the term “image” has frequently been used to describe the overall impression of the organization, but most scholars have only focused on organizational image as it is perceived by external audiences. However, organizational image as perceived by members within an organization is critical for determining its impact on individual employees’ motivation, work behaviors, and further performance at work. This article explores the roles of organizational image and identification in explaining organizational behaviors—extra‐role behavior and absenteeism—in public and nonprofit organizations. A series of seemingly unrelated regressions were used to analyze survey data from 1,220 respondents. Results show that organizational image is positively related to employee identification, and identification has a significant influence on promoting extra‐role behavior and lowering employee absenteeism.

Practitioner Points

• Organizational image as perceived by members of an organization is an aggregate of individual employees’ perceptions of the organization based on their own experiences and judgments (perceived organizational identity) and outsiders’ judgments about the organization (construed external image).
• Both perceived organizational identity and construed external image influence the extent to which employees are likely to identify themselves as part of their organization.
• The higher an employee's level of identification, the more he or she is likely to engage in extra‐role behavior.
• Managing organizational image and identification in a positive way can significantly reduce costly voluntary employee absences, which are reasonably avoidable absences.

     

Organizational turnaround: moving beyond one-size-fits-all solutions

Abstract

Literature on organizational turnaround has frequently suggested, but rarely investigated, the possibility that turnaround strategies for failing organizations must be matched to the specific needs of the organization. Building on work related to causes of decline in private sector literature, this study offers a framework for matching strategic interventions to the current state of an organization’s functioning in terms of resources (material and human), coordination (horizontal and vertical), and the environment. Using a panel dataset of New York City schools, we find that two understandings of turnaround that often appear mutually exclusive—that an organization can improve performance by shoring up weaknesses and that an organization should play to its current strengths—can complement each other and may both appropriately describe different types of organizational challenges.     

Incentive Effects of Expanding Federal Mass Transit Formula Grants

Public subsidies to industries firms incentives to alter their behavior. When calculating the effects of such programs, previous assessments of transit subsidies have not included the effects of these incentives on the firms' output. This article reports the responses of mass transit firms to the federal transit subsidy program and changes the Transportation Equity Act for the 21st Century (TEA 21) made to that program, as predicted by a structural model of output choice. TEA 21 increases bus service in medium‐sized cities by 6‐8 percent, butincreases service in large cities by only 1‐2 percent. The formula's incentive tier is weak, and the size of the subsidy depends little on whether that output results in increased ridership. The formula could be redesigned to provide stronger incentives to lower cost and increase ridership, thus encouraging a more efficient response from transit firms. © 2001 by the Association for Public Policy Analysis and Management.     

Modernization Programs in Perspective: Institutional Analysis of Organizational Change

Contemporary reform programs give students of comparative public administration a new chance to update their theoretical ideas about organization and organizing. Do forms of government and political institution matter? If so, what are the effects of different organizational forms? Why do we have the institutional forms we have? How can we explain their origins, persistence and development? This article explores the possible value of organization theory for the study of comprehensive administration reform. An attempt is made to specify how modernization efforts may be affected by properties of existing institutions. It is argued that contemporary modernization programs are based on an instrumental view of organizational decision-making and change. An institutional perspective is then outlined.     

How organizational structure can reduce rent-seeking

In multi-tiered organizations, individuals can engage in unproductive rent-seeking activities both within and between the divisions of the organization. Nevertheless, a multi-tiered organizational structure can induce efficiency gains by decreasing rent-seeking. We present a model of production and simultaneous internal and external rent-seeking, assuming a logistic contest success function. In equilibrium, there is generically either internal or external rent-seeking, but not both. A multi-tiered organization leads to less rent-seeking and higher welfare, even though the production technology gives no reason for any specific organizational structure. Our findings constitute a new efficiency rationale for multi-tiered organizations.     

New Financing Instruments for State and Local Capital Facilities

Municipal bonds traditionally have been classified into two general types: term bonds, paid off in a lump sum at the end of the term of the loan, and serial bonds, retired in annual installments. Beginning in the late 1970s, however, a number of new fiscal instruments have been devised to meet the changing needs of the municipal bond market. While these new financing techniques are not a panacea, their careful application may uncover some real opportunities for meeting the needs of local government for expanded capital facilities.     

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.     

Organizational and Spatial Determinants of Fiscal Stress: An analysis of Norwegian Municipalities

Two types of factors are thought to lead to fiscal stress of municipalities in Norway: municipal organization and spatial characteristics. Organizational and political factors include the rationality of the agency of government, the ability of the resource coordinator to achieve a balance, and the coordination of governmental policies. Spatial factors include industrial presence and north-south regional differences. Only the two spatial variables are significantly correlated with the budget difficulties. Case studies, though, show organizational factors and the interplay between organizational and spatial factors can be important determinants for fiscal stress.     

The Electoral Effectiveness of Party Organization: Norway, 1945–1977*

Latent Variable Partial Least Squares analysis has been used to model the impact of political party organization on stable and changing patterns of party vote in Norway from 1945 to 1977. For the Norwegian Labor Party, the elaboration of a strategy of organizational encapsulation is at least as important as the economic base for maintaining the stability of the party's electoral support; it also depresses support for the opposition parties. Short-run fluctuations around the long-run stability, however, are more influence by economic changes than party organizational strategies, with the exception of the divisive 1973 election, when party organization was important for maintaining the party vote. For the non-Labor parties, party organization is less important than economic variables.     

Beyond 5 Percent: Optimal Municipal Slack Resources and Credit Ratings

Local governments tend to keep large amounts of slack financial resources to hedge against risk and uncertainty. To date, there has been little empirical research on whether those slack holdings are inadequate, adequate, or perhaps excessive relative to those risks and uncertainties. I address this gap in current research by using credit quality as a criterion to consider “optimal” slack resource levels. I find that for a national sample of local governments, slack resources’ effect on credit quality is statistically but not substantively significant. Having some rather than no slack increases, the likelihood of receiving a more desirable rating by 5–9 percent, but large slack holdings have little if any additional effect. These findings have implications for future work on slack resources, and for debt management broadly.     

THE USE OF TAX INCENTIVES FOR PUBLIC TRANSIT AS A SUBSIDY ALTERNATIVE

The objective of this paper is to propose a positive means of encouraging the use of public transit, through the creation and utilization of incentives aimed at stimulating demand. A tax incentive is proposed and examined as a form of revenue source subsidy which can be coupled with a congestion tolllgasoline tax policy to accomplish this demand stimulation, and is examined in light of the associated public policy issues. Taken into account are the typology of subsidy, the justification for subsidy, the sources of subsidy and the impact of different types of subsidy on economic factors, such as price and cost.     

Testing the input-process-output model of public participation

The characteristics of participatory institutions can be articulated in three main dimensions: input, process and output. The common assumption is that a dependency relationship exists, with process serving as a mediator between input and output. This paper puts the model to a rare empirical test drawing on a unique dataset of 70 Spanish advisory councils. Through a combination of exploratory factor and path analyses, we analyse the dimensionality of input, process and output and investigate the direct and indirect impact of inputs on process and outputs. Our analysis provides evidence that input factors have a direct impact on the output factor transparency, but their impact on effects on policy and participant satisfaction is mediated by the process factor deliberation. Further, the capacity of the public administration to steer the advisory council (wardship) mediates negatively the impact of input variables on transparency. The analysis provides a nuanced account of how different input and process design characteristics of participatory institutions have profound direct and indirect effects on their outputs.     

Deadlines,routines, and change

Routines, the habitual and predictable behavior patterns of an organization, play central roles in both maintaining organizational performance and in adapting such performance to changing conditions. Deadlines interact with routines in important ways in influencing the course of organizational adaptation. This paper examines the role of routines and deadlines in influencing change in a regulatory program. It describes the adaptation of routines in the Environmental Protection Agency's (EPA) water pollution and pesticide programs in response to pressures and deadlines imposed by Congress, the courts, and the White House. The programs analyzed offer contrasting glimpses of the effects of routines on organizational change. Routines may be collective and shared by the members of an organization or unique to the specific groups or subgroups within it. When the organization primarily has widely-shared routines, few options will be perceived; consequently, collective routines tend to blunt the impact of pressures for change. On the other hand, routines that become fragmented, diverse, and individual in the face of repeated external pressures may facilitate change.     

Defense Supplementals and the Budget Process

Supplemental appropriations provide emergency adjustments to the current year, usually for national defense contingencies and natural disaster emergencies. Recently, they have adopted some of the complexities of the regular appropriation process. For example, both the president and Congress may suggest when a supplemental is a dire emergency and thus beyond spending discipline and when it must be offset. Some supplementals have paid for nonemergency activities, others have resulted in funding decreases, and still others have resulted in spending in future years. Compared to the normal appropriation process, supplementals are usually passed expeditiously. Defense supplementals are generally precisely priced, whereas disaster supplementals tend to be lump sum estimates.