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.

     

Why Do Nonprofit Performing Arts Organizations Offer Free Public Access?

A number of studies have shown that arts and cultural programs offer multifarious benefits to individuals and communities. However, there has been little discussion in the public management literature regarding access to cultural programs for people with limited disposable income. Although the arts industry is increasingly emphasizing the importance of expanding cultural access for all, we know little about what drives individual nonprofit organizations’ strategies. This article draws on benefits theory and resource dependence theory to explore the relationships between different types of revenue and the extent to which performing arts nonprofits offer free access. The authors use a unique data set compiled by DataArts to test how various types of revenue influence accessibility to the arts and find that performing arts nonprofits receiving grants from local governments, foundations, and corporations offer more free access. The article concludes with a discussion of study implications and an application of benefits theory to other types of nonprofits.     

Which Nonprofit Organizations Borrow?

The tax benefit, bankruptcy value, and pecking-order theories of corporate capital structure are discussed in context of nonprofit organizations. A bivariate probit model shows that coefficients differ between models meaning mortgages and tax-exempt bonds are not equivalent forms of debt. Organizations with proportionally more program revenues, contributions, total assets, total revenues, and executive compensation are more likely to have a mortgage. Nonprofits that rely on special event fund-raising or contributions have a lower probability of using bond financing. The use of debt is also influenced by the nature of the organization's mission as measured through the NTEE classification.     

Overspending in Public Organizations: Does Strategic Management Matter?

ABSTRACT

In the wake of the financial crash, many governments across the globe are seeking to curb expenditure in public sector organizations. To assess the extent to which public organizations can make strategic choices that might result in lower expenditure, we explore the relationship between strategic management and overspending in English local governments. The effects of strategic stances and actions on overspending are tested using multivariate statistical techniques. The empirical results show that an innovative strategic stance results in overspending as does a commitment to the development of new services, while a reactive strategic stance and decentralized decision making are associated with lower levels of overspending. Our analysis provides support for arguments that public organizations can make strategic choices that result in tighter control of their budgets.     

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.     

Strategic Positioning and the Financing of Nonprofit Organizations: Is Efficiency Rewarded in the Contributions Marketplace?

This article addresses the question of whether operational efficiency is recognized and rewarded by the private funders that support nonprofit organizations in fields ranging from education to social service to arts and beyond. Looking at the administrative efficiency and fundraising results of a large sample of nonprofit organizations over an 11-year period, we find that nonprofits that position themselves as cost efficient—reporting low administrative to total expense ratios—fared no better over time than less efficient appearing organizations in the market for individual, foundation, and corporate contributions. From this analysis, we suggest that economizing may not always be the best strategy in the nonprofit sector.     

How Do Public Organizations Learn? Bridging Cultural and Structural Perspectives

How do public organizations learn? The organizational learning literature suggests distinct cultural and structural routes to learning. However, such categorizations oversimplify. Leaders seeking to foster learning should recognize that most relevant organizational variables combine structural and cultural aspects, which are mutually dependent on one another. The strongest influences are the existence of work groups that are purpose driven and incorporate the views of all members, including dissenting views. Such learning forums can be fostered through formal requirements, but they need appropriate cultural characteristics to succeed. Mission orientation, decision authority, information systems, and resource adequacy are also positively related to improved organizational learning.     

Looking for Friends,Fans, and Followers? Social Media Use in Public and Nonprofit Human Services

This article uses interviews and Internet data to examine social media use among nonprofit organizations and county departments involved in the delivery of human services in a six‐county area in south‐central New York State. Social media use was modest, with nonprofit organizations much more likely to use it than county departments. Organizations used social media primarily to market organizational activities, remain relevant to key constituencies, and raise community awareness. Most organizations either had a narrow view of social media's potential value or lacked a long‐term vision. Barriers to use included institutional policies, concerns about the inappropriateness of social media for target audiences, and client confidentiality. Findings build on recent research regarding the extent to which nonprofit organizations and local governments use social media to engage stakeholders. Future research should investigate not only the different ways organizations use social media but also whether organizations use it strategically to advance organizational goals.     

Administrative Growth and Grant Payouts in Nonprofit Foundations: Fulfilling the Public Good amid Professionalization?

The Tax Reform Act of 1969 remains the core governing policy for the U.S. foundation sector, primarily for its qualifying distributions mandate, which ensures a baseline spending of foundation assets toward charitable purposes. However, implementation of this policy required additional foundation administrative resources and contributed to significant professionalization of the foundation sector. This article focuses on the payout requirement's potential paradox of accountability, as administrative expenses can be counted toward fulfilling foundations’ qualifying distributions. Using a 14‐year panel of grantmaking foundations, the analysis seeks to understand whether professionalization, measured by operating and administrative expenses, contributes to or crowds out grantmaking. Findings indicate that professionalization of the foundation sector has a small yet practically and statistically significant positive association with foundation grantmaking. From a policy perspective, the current structure of the qualifying distributions mandate does not appear to lead to a crowding out of grant allocations as administrative expenses grow.     

Paternalistic or Participatory Governance? Examining Opportunities for Client Participation in Nonprofit Social Service Organizations

Nonprofits represent a substantial group of third-party agents that deliver public services, yet little is known about the extent to which these organizations embrace participatory governance practices. Using survey data from nonprofit social service agencies in Michigan, the author examines how these organizations provide opportunities for client participation and identifies factors that contribute to these practices. Four methods of securing client involvement are examined: participation in agency work groups, client feedback surveys, advisory boards and committees, and client service on the agency board of directors. The results indicate that government funding plays a systematic role in promoting these activities within nonprofits. These findings carry important implications for the government–nonprofit contract relationship by demonstrating that government funding shapes the practices of nonprofits in ways that promote democratic governance.     

What Causes the Death of Public Sector Organizations? Understanding Structural Changes and Continuities in Korean Quangos

ABSTRACT

This study explores the determinants of structural changes and continuities of public sector organizations in Korea using longitudinal data. Focusing on the political costs of termination, we examine external and internal factors that are closely linked to the political incentives to terminate quangos. This article primarily addresses the following question: What determines the termination of public sector organizations? The model suggests that survivability of public sector organizations largely depends on external factors such as political, institutional, and social changes. Specifically, quangos are more likely to be terminated during political turnovers and the period when presidential power is maximized. Termination seems easier for politicians when social demands are mature enough to blow away political burdens and cynicism. Although organizations with fewer resources are more vulnerable to external pressures and shocks, none of the quango-specific factors significantly affect the survivability of Korean quangos.     

What Determines Ethical Behavior in Public Organizations: Is It Rules or Leadership?

Leadership is widely seen as having an important role in fostering ethical conduct in organizations, but the ways in which the actions of leaders intersect with formal ethics regulation in shaping conduct have been little researched. This article examines this issue through a qualitative study of the operation of the “ethical framework” for English local government, which entailed all councils adopting a code of conduct to regulate the behavior of local politicians. Studying local government provides an opportunity to examine how personal and managerial factors combine to influence ethical conduct and to analyze the ways in which ethical leadership is exercised through multiple people in leadership roles (politicians and managers). The article finds that organizations that exhibit consistently good conduct have multiple leaders who demonstrate good conduct but also act to preempt the escalation of problems and thereby minimize the explicit use of ethics regulation.     

More Similarities or More Differences? Comparing Public and Nonprofit Managers’ Job Motivations

Existing research on career motivations tends to focus either on the difference between private and public organizations or on the difference between nonprofit and for‐profit firms. Although commonalities exist, the literature suggests that there also are many differences in what motivates public and nonprofit employees. Employing data from the National Administrative Studies Project III, this research examines how seven motivational aspects correlate with the choice between public and nonprofit employment. The authors find that managers who value advancement opportunities, a pension and retirement plan, and the ability to serve the public in their jobs are more likely to accept a job in the public sector, whereas managers who value family‐friendly policies and increased responsibility are more likely to accept a position in the nonprofit sector. Participation in volunteering is positively associated with nonprofit employment. The authors suggest a possible link between volunteering and the unique nonprofit motivation that is differentiated from public service motivation.     

Agencification of Public Service Delivery in Nigeria： An Empirical Study of Selected Public Agencies in Lagos State

There have been efforts to establish agencies as part of a strategy to improve service delivery world-wide. In Nigeria, agencies have also been established at both the national and state levels. The Lagos State Government has also established various agencies to fulfill different government functions in the state. After many years, the activities of these agencies have improved the delivery of services to the people in Lagos State, but there is still much to be done. This is why this study examines agencification of public service delivery in Nigeria with reference to Lagos State. The study uses mixed methods and triangulated data to achieve the research objectives. Questionnaire was used to collect data from service users and departmental officials. Face-to-face interviews were conducted with key officials of the selected agencies. Key documents were also reviewed. The findings reveal： lack of human resources capacity, inadequate financial management skills, and poor management of service providers, and the environment of the people of Lagos State are not considered in the conception and the implementation of the service-delivery-driven agencies. The study therefore recommends that agencification of public service in Lagos State as conceived if properly implemented can contribute to effective public service delivery.     

The Life and Death of Public Organizations: A Question of Institutional Design?

Why do some public organizations grow old and others die young? Since Herbert Kaufman first posed this question, considerable research has been devoted to answering it. The findings of that research suggest that the design of new public organizations affects, to a significant degree, their survival chances. In this article, we test whether and how “design factors” affected the durability of the so‐called New Deal organizations initiated under FDR's first term. Our findings confirm that design factors do matter, but their effects change over time. We draw out some potential implications for institutional design and sketch a renewed research agenda to determine why some public organizations survive environmental pressure whereas others succumb to it.     

Does Good Performance Reduce Bad Behavior? Antecedents of Ethnic Employment Discrimination in Public Organizations

Equal treatment is a key feature of modern bureaucracy. However, several studies have shown that public organizations discriminate against ethnic and racial minorities to different degrees. Which organizational features explain differences in discrimination is largely unknown. This article proposes that organizational performance relates to an organization's likelihood of engaging in employment discrimination and argues that poor‐performing organizations tend to be less open to new ideas and that decision makers in such organizations are more prone to stereotyping behavior. The study combines a field experiment in which applications were sent to real job vacancies in 71 Danish public schools with administrative data on the schools. Bayesian analyses show that minority applicants generally faced discrimination but that they experienced a higher callback rate from better‐performing schools than from poorer‐performing schools. Implications for practice and research are discussed.