Structure and the Performance of Public Organizations: Task Difficulty and Span of Control

Scholars of public organizations have long been interested in understanding how organizational structures shape organizational performance. This is an important question because if links between structure and performance exist, then manipulating organizational structures may lead to improvements in organizational performance. This study examines how one structural attribute, span of control, shapes performance in a large set of public organizations. Specifically, our focus is on how structure shapes performance when task difficulty varies. We hypothesize that structural attributes such as spans of control have limited effects on performance when organizations address very easy or very difficult tasks. When organizations address moderately difficult tasks, the impact of structure on performance should be greatest. Our analysis of 678 school districts in Texas covering the years 1994 to 1997 reveals that span of control variables have the greatest impact on student performance under moderately difficult task scenarios.     

When do Public Managers Imitate Each Other? Mimetic Decision Making in Contracting Decisions of Danish Municipalities

Using organizational new institutional theory, this paper explores a core mechanism underlying contracting decisions in public organizations. A central proposition of this branch of institutional theory is that uncertainty leads to organizational isomorphism. The present study investigates this proposition by asking: When does perceived uncertainty lead public managers to imitative behavior in contracting out decisions? Contrary to most previous studies, we apply an individual level approach and relate different types of perceived uncertainty of decision makers to mimetic decision making. We define mimetic decision making as when decision makers deliberately obtain information about other organizations in order to possibly imitate them. In a survey of Danish municipal managers facing important and complex contracting decisions, we test our hypotheses about three types of perceived uncertainty and mimetic decision making. The results show that technological uncertainty is strongly related to mimetic decision making among public managers. However, we do not find significant results for either volume uncertainty or performance uncertainty. The paper illustrates how uncertainty, through mimetic decision making, is connected to organizational isomorphism. It further highlights that future studies should pay attention to the multidimensionality of uncertainty and its consequences.     

The Economic Value of Market Information for Farmers in Developing Economies

In developing countries, farmers lack information for making informed production, manufacturing/selling decisions to improve their earnings. To alleviate poverty, various non‐governmental organizations (NGOs) and for‐profit companies have developed different ways to distribute information about market price, crop advisory and farming technique to farmers. We investigate a fundamental question: will information create economic value for farmers? We construct a stylized model in which farmers face an uncertain market price (demand) and must make production decisions before the market price is realized. Each farmer has an imprecise private signal and an imprecise public signal to estimate the actual market price. By examining the equilibrium outcomes associated with a Cournot competition game, we show that private signals do create value by improving farmers' welfare. However, this value deteriorates as the public signal becomes available (or more precise). In contrast, in the presence of private signals, the public signal does not always create value for the farmers. Nevertheless, both private and public signals will reduce price variation. We also consider two separate extensions that involve non‐identical private signal precisions and farmers' risk‐aversion, and we find that the same results continue to hold. More importantly, we find that the public signal can reduce welfare inequality when farmers have non‐identical private signal precisions. Also, risk‐aversion can dampen the value created by private or public information.     

Making a match: inexperienced physician executives and the job market

Hospitals and other health care organizations are adding physician executives at such a rate that demand is outstripping supply-there are more opportunities for seasoned physician executives than there are physicians with track records as medical managers. It is possible that hiring management will have to consider the employment of a physician who wants to be in management but has no track record as a physician executive. In some cases, it may even be preferable to employ a neophyte physician executive, especially when the physician is a respected clinician already on the organization's medical staff. In selecting such a physician, however, an evaluation must be made of the probability that the physician will be successful in the new role. The author points to 10 criteria that the hiring organization should observe in hiring inexperienced managers.     

“See You in Court”: How CEO narcissism increases firms' vulnerability to lawsuits

Although some researchers have suggested that narcissistic CEOs may have a positive influence on organizational performance (e.g., Maccoby, 2007; Patel & Cooper, 2014), a growing body of evidence suggests that organizations led by narcissistic CEOs experience considerable downsides, including evidence of increased risk taking, overpaying for acquisitions, manipulating accounting data, and even fraud. In the current study we show that narcissistic CEO's subject their organizations to undue legal risk because they are overconfident about their ability to win and less sensitive to the costs to their organizations of such litigation. Using a sample of 32 firms, we find that those led by narcissistic CEOs are more likely to be involved in litigation and that these lawsuits are more protracted. In two follow-up experimental studies, we examine the mechanism underlying the relationship between narcissism and lawsuits and find that narcissists are less sensitive to objective assessments of risk when making decisions about whether to settle a lawsuit and less willing to take advice from experts. We discuss the implications of our research for advancing theories of narcissism and CEO influence on organizational performance.     

Dealing with Pluralism: A Response to Michael Zigarelli's Article on How Title VII Erodes the Mission of the Religious University

This response to Professor Zigarelli will consider three main elements within his argument – the religious university, preferential hiring, and the maintenance of a distinctive culture – in order to identify and clarify his normative presumptions and to suggest some implications of his views about religious universities for other organizations, like business corporations. It concludes by suggesting that Zigarelli should move from an orthodox to a more liberal response to pluralism in organizations.     

Transformational Leadership Education and Agency Perspectives in Business School Pedagogy: A Marriage of Inconvenience?

We critique transformational leadership education in university business schools based on a literature review, a study of the websites of 21 leading business schools, and an analysis of two presentations to business school students at Massachusetts Institute of Technology and Stanford University by the former CEO of General Electric, Jack Welch. Our critique draws attention to the unresolved tension between two motivating ideas that underpin much teaching in business schools: collective interest ideas that permeate transformational leadership education; and self-interest ideas derived from agency theory. Transformational leadership tends to be depicted as a process by which leaders exert a 'top-down' influence over the activities of others, while simultaneously asserting that their organizations have a common purpose and pursue a collective interest. We highlight the risk that business schools are producing graduates who will attempt to appeal to common needs (guided by precepts of transformational leadership) but who will simultaneously enact contradictory performance management systems (guided by agency theory). We encourage business school educators in leadership to adopt approaches which are more critical, relational and reflexive. We suggest some general directions for an alternative leadership prospectus, based on followership, the promotion of critical upward communication within organizations, and the recognition of leadership as a contested, discursive and co-constructed phenomenon.     

IMPROVING THE DELIVERY OF SPECIAL EDUCATION AND RELATED SERVICES IN PUBLIC SCHOOLS

The utility of organizational behavior management (OBM) for improving the delivery of special education and related services in public school districts was investigated in three experimental studies. Each study employed a multiple baseline design to judge the efficacy of an OBM intervention on service delivery problems common to most public school organizations. The problems and OBM interventions were: (1) expanding the range of functioning of school psychologists through performance feedback; (2) training special service teams to develop valuable individual education programs (IEPs) with a behavioral, in-service training program; and (3) ensuring the implementation of a special education resource room program by means of program consultation. All interventions were implemented by public school program managers and staff. In each study, the particular intervention resulted in improvement in service delivery performance. Results of the studies are discussed within the context of the recently enacted legislation for the education of handicapped children and in terms of generality to mental health, business, and industrial settings.     

Importance of fairness in humanitarian relief distribution

Abstract

This article is inspired by some of the challenges faced by non-governmental organizations in the distribution of humanitarian relief to vulnerable rural communities. A major concern of these organizations is to warrant that relief is distributed in an impartial and transparent way, which gives rise to the notion of fairness. This article thus discusses the importance of fairness in relief distribution and how it can be defined, especially in a context where delivery of vital items must be ensured periodically. We also propose some performance indicators to measure fairness, which can be useful to organizations that are held accountable for the impartiality of their decisions. Finally, an empirical study of an academic case, inspired by a rural aid distribution problem, is used to analyse how different mathematical formulations may contribute in helping crisis managers integrate fairness or equity in their decisions.     

Performance Decline and Turnaround in Public Organizations: A Theoretical and Empirical Analysis*

Public sector performance is currently a significant issue for management practice and policy, and especially the turnaround of those organizations delivering less than acceptable results. Theories of organizational failure and turnaround derive largely from the business sector and require adaptation to the public service. The performance of public organizations is more complex to measure, is related to institutional norms, and the idea of ‘failure’ is problematic. Empirical findings from a real‐time, longitudinal study of poorly performing English local authorities are used to develop an initial theory of performance failure and turnaround suited to public organizations. The paper argues that the typical performance of public organizations over time is cyclical. Where cognition and leadership capability are absent, organizations fail to self‐initiate turnaround. In this situation authoritative external intervention is necessary. The strategies applied are principally concerned with building a leadership capability that engages senior politicians and managers in order to overcome inertia and collective action problems. The theory is presented in the form of seven propositions that provide a basis for further research across the public sector.     

The ups and downs of managing employed physicians

The number of employed physicians is growing, posing new challenges to physician executives. Managing employed physicians begins during the hiring process. Once the new physician is on board, an organization should appoint a mentor to help the new employee adjust. Compensation remains a consistent challenge in most organizations with employed physicians. One of the most popular compensation models involves a market-based salary with the opportunity for a performance bonus.     

Why Do Established Practices Deinstitutionalize? An Actor‐Centred Approach

Drawing on 63 in‐depth interviews from three American multinationals, we investigate how individual actors negotiate the interplay of insider and outsider pressures on the deinstitutionalization of four employment practices in an institutionally complex setting. Existing institutional theory highlights different degrees of deinstitutionalization, from complete abandonment of practices to partial erosion, with an underlying presumption of organizations and actors striving for stability and stasis. However, the present study finds that actor reconciliation of interacting insider and outsider pressures can result in three distinct phases of deinstitutionalization (complete, partial and negotiated deinstitutionalization), which crucially coexist, suggesting perpetual instability and change. The authors conceptualize the individual‐level enabling conditions for each of these different phases of deinstitutionalization, highlighting a range of actor responses as well as differences in how actors exercise agency across each phase. Examining actor negotiation of the interplay of insider and outsider pressures improves our understanding of how individuals engage in differential institutional work when responding to practice deinstitutionalization.     

Social Activism in and Around Organizations

Organizations are frequent targets for social activists aiming to influence society by first altering organizational policies and practices. Reflecting a steady rise in research on this topic, we review recent literature and advance an insider-outsider framework to help explicate the diverse mechanisms and pathways involved. Our framework distinguishes between different types of activists based on their relationship with targeted organizations. For example, “insider” activists who are employees of the target organization have certain advantages and disadvantages when compared with “outsider” activists who are members of independent social movement organizations. We also distinguish between the direct and indirect (or spillover) effects of social activism. Much research has focused on the direct effects of activism on targeted organizations, but often the effects on non-targeted organizations matter more for activists goals of achieving widespread change. Drawing on this framework, we identify and discuss eight specific areas that are in need of further scholarly attention.     

Einf��hrung von Kommunikationsstandards in Unternehmensnetzwerken �C ein gestaltungsorientierter Ansatz bei dezentraler Entscheidungsstruktur

Standards and technologies (e.g. in the area of web services) that are currently discussed in research and practice will strongly change IT-based communication between organizations. However, the decision to standardize is accompanied by the risk of introducing a standard that is not adopted by other organizations afterwards. Hence, the interdependencies among the standardization decisions due to positive network effects result in a coordination problem, which is referred to as ??the standardization problem??. If the standardization decisions are taken by autonomous actors (e.g. legally independent organizations) that do not know the standardization decisions of the other actors in the network, this standardization problem arises for a decentralized decision structure and incomplete information. Thus, actors have to decide under uncertainty on whether to standardize or not. To avoid resulting inefficiencies and wrong decisions, we propose a formal, normative approach. This approach allows an actor within the network to anticipate the standardization decisions of the other actors and the associated network effects. Central to our approach are the consideration of interdependencies among the standardization decisions and the solution of the resulting system of equations.     

Theoretical and Interpretation Challenges to Using the Author Affiliation Index Method to Rank Journals

We formally review the Author Affiliation Index (AAI) method as originally conceived by David Harless and Robert J. Reilly from the Economics Department at the Virginia Commonwealth University School of Business and as subsequently developed and interpreted by Gorman and Kanet in their 2005 article. Through this formal review, we first highlight and discuss two important informational inputs that can impact the stability of the AAI scores for journals in any given set of to‐be‐evaluated journals. We then identify and challenge interpretations related to these scores (one theoretical, one statistical) offered by Gorman and Kanet that result in misleading conclusions about journal quality and that may potentially motivate inappropriate editorial behavior. For important professional decisions of hiring, performance evaluation, promotion, and tenure, we conclude by cautioning against sole reliance on the AAI method for ranking journals and against exclusive interpretation of the score computed via the AAI method as an indicator of journal quality.     

The Decline of Deference: The Political Context of Risk Communication

Risk communication is seen as an important adjunct to the process of siting locally noxious facilities. To understand how risk communication might function in such a process, one needs to understand the political context that gives rise to public opposition to such facilities in the first place. This analysis draws on a variety of data to describe the decline of deference, a situation in which a hostile and alienated public is mobilized primarily through ad hoc voluntary organizations, and is increasingly reluctant to defer important decisions to institutional elites. Risk communication programs must be designed to offset the trends that result in the decline of deference. This conclusion differs markedly from the conventional wisdom that risk communication is merely a device for providing information to citizens so sthat they may make more rational decisions.     

DIVERSITY IN ECONOMICS: AN ANALYSIS OF JOURNAL QUALITY PERCEPTIONS

It is still debatable whether scientific diversity is a virtue or a disadvantage for the development of a discipline. Nonetheless, diversity among scientists with respect to their journal quality perceptions plays an important role in hiring and promotion decisions. In this article we examine the degree of diversity within economics based on the journal quality perceptions of 2,103 AEA economists worldwide. Specifically, we empirically test for factors that might explain differences in an economist's journal quality perceptions. These factors include an economist's geographic origin, school of thought, journal affiliation, field of specialization and research orientation. Indeed, we find that a significant degree of diversity in journal quality perceptions exists between economists that belong in different subgroups. These results might explain the frequent debates in tenure and promotion committees where journal standings are used for the evaluation of a researcher's output. (JEL: A12, D12)     

5 Public Administration and Organization Studies

Abstract

The study of public organizations has withered over time in mainstream organization studies research, as scholars in the field have migrated to business schools. This is so even though government organizations are an important part of the universe of organizations—the largest organizations in the world are agencies of the U.S. government. At the same time, the study of public administration, once in the mainstream of organization studies, has moved into a ghetto, separate and unequal. Centered in business schools, mainstream organization research became isomorphic to its environment—coming to focus on performance issues, which are what firms care about. Since separation, the dominant current in public administration has become isomorphic with its environment. In this case, however, this meant the field moved backward from the central reformist concern of its founders with improving government performance, and developed instead a focus on managing constraints (i.e., avoiding bad things, such as corruption or misuse of power, from occurring) in a public organization environment. Insufficient concern about performance among public administration scholars is particularly unfortunate because over the past 15 years, there has occurred a significant growth of interest among practitioners in improving government performance. The origins and consequences of these developments are discussed, and a research agenda for organization studies research that takes the public sector seriously is proposed.     

Building Functional Communities: Concepts for Reframing Social and Fiscal Policy

Given the shrinkage of social service resources in public organizations, a variety of fiscal options to manage costs must be developed to address operational efficiencies and, more importantly, to protect from negatively impacting institutional integrity. The paper which follows addresses a continuum of alternatives which could be considered when examining resource sharing policy options which can build well-functioning communities to the benefit of both the public and private sectors. Data were collected using a case study approach employing focus interviews with school district CEO's, CFO's, business officials and other key public and private sector administrators in thirty-one New York State commmunities and two suburban counties within 25 miles of New York City over a period of three years. An exploratory analysis was used to test a conceptual framework that draws together the literature concerning the types and purposes of interdistrict cooperation. The studies findings concerning cooperative arrangements among organizations led to several conclusions and caveats concerning building functional communities:If sharing is to be supported and developed as a strategy for organizational improvement, organizational leaders will have to be aware of the reasons sharing arrangements are made and the tensions that destroy agreements.If sharing agreements are to be promoted, particularly in the specialized areas that seem to be appropriate for sharing resources, more attention will be needed in identifying likely incentives for mid-level managers, administrators and support staff involved with planning and operating such programs.If sharing is to take place, a common set of data need to be collected and analyzed.If sharing is to get started, pilot programs need to be developed that bring diverse organizations together on a regular basis with a specific sharing agenda.     

Outcome-related Performance Indicators and Organizational Control in the Public Sector1

There is increased interest in the widespread dissemination of outcome performance data to secure enhanced strategic control of public sector organizations. This paper adumbrates the rationale for such schemes, and outlines the potential distortions induced by excessive reliance on outcome-related performance indicators, inferred from experience in the management control and Soviet literature. The paper gives an outline of the performance review process in the United Kingdom National Health Service, and presents the results of a case study of the impact of the publication of outcome performance data in the maternity services. The research detected many of the expected distortions arising from reliance on performance indicator schemes, and concludes that they may have significant dysfunctional consequences. The paper does not however advocate the abandonment of performance audit in the public sector. Instead, it warns that great attention should be given to the managerial incentives implicit in any strategic control scheme, and that the style with which the scheme is applied will have important bearings on its effectiveness.