Trust and Welfare State Reform: The Example of the NHS

This article discusses the impact of New Public Management on public trust in welfare state institutions, using the example of NHS reform. Discussion of trust in public institutions across political science, psychology and sociology indicates that it is based on both rational/objective considerations (competence and capacity to deliver the service) and affectual/subjective factors (shared values, belief that the trustee shares the trustor's interests). The New Public Management foregrounds individual responsibility and incentives for both suppliers and users of services, in the NHS example in quasi‐markets, management by target and patient choice. These accord with an individualized market rational‐actor model rather than with affective considerations. Analysis of attitude survey data on the NHS confirms that rational/objective and affectual/subjective factors contribute to public trust in this field. However, a comparison between perceptions in England, where the internal market has been vigorously pursued, and Scotland, where the purchaser/provider split was discarded after devolution, indicate that the market does not offer a royal road to perceptions of superior quality in the objective factors. Conversely, the more market‐centred system can make progress in relation to the more subjective affectual factors.     

Causes of ambiguity aversion: Known versus unknown preferences

Ambiguity aversion appears to have subtle psychological causes. Curley, Yates, and Abrams found that the fear of negative evaluation by others (FNE) increases ambiguity aversion. This paper introduces a design in which preferences can be private information of individuals, so that FNE can be avoided entirely. Thus, we can completely control for FNE and other social factors, and can determine exactly to what extent ambiguity aversion is driven by such social factors. In our experiment ambiguity aversion, while appearing as commonly found in the presence of FNE, disappears entirely if FNE is eliminated. Implications are discussed.      

Gesellschafterausstieg in großen Familienunternehmen

Zusammenfassung  Dieser Beitrag befasst sich mit dem Ausstieg von Gesellschaftern aus Familienunternehmen als bedeutendes Corporate Governance-Problem. Im Mittelpunkt steht die Untersuchung der Wirkung von Ausstiegsmotiven, Rahmenbedingungen sowie Ausstiegsbarrieren auf die Belastung von Unternehmen und Familie durch den Gesellschafterausstieg. Eine explorative empirische Untersuchung von 55 gro?en deutschen Familienunternehmen liefert Ans?tze für eine Organisationstheorie des Familienunternehmens und für praktische Empfehlungen bei der Gestaltung von Satzung und Ausstiegsverhandlung.

---

Summary  This article deals with the exit of shareholders in family owned businesses as an important corporate governance problem. We mainly analyse the effect of exit motivations, exit conditions, and barriers to exit on the exit’s burden for the company and the family. An explorative empirical study of 55 large German family owned businesses comes up with ideas for an organization theory of family owned businesses as well as some practical recommendations for statutes and exit negotiations.

     

Heuristic Coordination of Decentralized Inventory Systems Using Induced Backorder Costs

In this paper, we investigate a one‐warehouse multiple‐retailer system, where the inventory control decisions are coordinated using a near optimal induced backorder cost, β*. All installations use continuous review installation‐stock (R, Q) policies. The analysis builds on an approximation model where the stochastic warehouse delays are replaced by their correct averages. The contributions include insights as to how β* is influenced by system parameters, and the determination of simple closed form β* estimates. The latter offering a practical means to achieve coordinated control of large size systems.     

How to keep good staff from leaving

There are many moves you can make to maintain staff morale, provide staff with challenges and keep them content.     

The Role of the Private Market in Day-care Provision for Children in Need

This article examines the role that the private day-care market plays within the range of day-care services offered by 12 local authorities for children in need. It examines how local authorities have developed their use of private day-care services generally, and goes on to discuss three models of sponsored childminding practice which were identified in the study. Although authorities have generally been innovative in developing their work with independent day-care providers, if they are to continue to purchase good quality services for children in need they need to ensure that private day-care providers receive adequate levels of training and support, and that steps are taken to address existing gaps in both private and local authority day-care services.     

Social Security Reform in China's Transition to a Market Economy

This paper begins by describing the origins of a social security system that was based on a series of institutional splits that resulted in the development of a fragmented system characterized by inequity and incomplete coverage. The entitlements embedded in this system have proved difficult to revise in the light of changing circumstances and the pressures associated with economic transition, demographic change and the newly emerging problems of open unemployment and urban poverty. These developments, particularly the latter, are creating new demands on a system already struggling to adjust to structural problems of coverage and financial soundness. A series of extensive reforms in the areas of pensions and unemployment insurance and a rationalization of administrative arrangements and responsibilities have been introduced over the last two decades, but further reform seems inevitable as external pressures and policy priorities change. A key goal of the reform process has been to transfer responsibility for social security from enterprises to the state, but the system still suffers from a series of serious financial problems. Despite the extensive reforms that have already been introduced, these problems and the structural imbalances underlying them will require further action. The most important of these imbalances relate to the split between the nature and role of social security in the urban and rural sectors, the role of the commercial provision and its relationship with the state, and the extension of programmes aimed at poverty alleviation.