Does management by objectives stifle organizational innovation in the public sector?

Abstract. Does management by objectives stifle organizational innovation in the public sector? The authors explore this possibility by describing five common characteristics of mbo and then contrasting them with four characteristics of innovative organizations. The comparison suggests that mbo -pressures lead to organizational stress that is often resolved by the creation of two working environments; one for the pursuit of innovative objectives, and one for the pursuit of regular objectives. This could lead to dysfunctionalism in the form of abandoned objectives-objectives that might have been achieved if mbo were not used. The authors conclude with four implications for public-sector managers: (1) the practice of including innovation objectives along with traditional objectives in the same set of objectives is questionable; (2) broader objectives, perhaps pointing in the general direction of the innovations sought, might be more productive in some cases than specific objectives; (3) possible incompatibility between mbo and innovation might be lessened if innovative ventures are pursued in ad hoc organizational structures; and (4) management by objectives and innovation are not necessarily compatible.     

The Reinvention of Public Personnel Administration: An Analysis of the Diffusion of Personnel Management Reforms in the States

Reform is a common theme in American public administration. During the twentieth century at least 12 major administrative reforms have taken place at the federal level and countless others in state and local governments. Frequently, these reforms have addressed the operation of public personnel management systems. Recent efforts associated with the reinventing government movement, for example, have proposed numerous alterations to civil service rules and procedures, and many jurisdictions have implemented significant changes in their personnel practices. This article examines the extent to which these kinds of personnel reforms have been implemented by state governments. A reform index is developed to document the considerable variation among the states in their approach to personnel practices. Several state characteristics are associated with scores on this index, including legislative professionalism, which bears a positive relationship to reform, and the level of unemployment within a state and the proportion of state employees associated with public employee unions, which are both negatively associated with reform.     

Budgetary Decision Making by Executive and Legislative Budget Analysts: The Impact of Political Cues and Analytical Information

We explore the extent to which attributes of individual analysts and institutional factors lead to budgetary decisions based on political cues and/or analytical information among executive and legislative budget analysts. We surveyed executive and legislative budget analysts in 13 western states to ascertain the factors that influence their budgetary decisions. The findings build on evidence from previous studies that confirms the complexity of factors affecting budget analysts' decisions, and they provide empirical support to analysts' use of a combination of information labeled "budget rationality" by Thurmaier and Willoughby. Also, we provide more conclusive evidence that both executive and legislative analysts follow similar decision-making patterns.