CUTBACK MANAGEMENT IN AN ERA OF SCARCITY - HARD QUESTIONS FOR HARD TIMES (FROM MANAGING THE PRESSURES OF INFLATION IN CRIMINAL JUSTICE 1979, BY H JEROME MIRON SEE NCJ-59239)

• NCJ Number: 59240
• Author(s): C H LEVINE
• Date Published: 1979
• Length: 11 pages
• Sponsoring Agency: US Dept of Justice NIJ Pub
• Corporate Author: US Dept of Justice
• Publication Format: Document
• Publication Type: Instructional Material
• Language: English
• Country: United States of America
• Note: *This document is currently unavailable from NCJRS. EARLIER VERSION OF THIS ARTICLE PRESENTED AS AN ADDRESS TO THE AMERICAN ASSOCIATION FOR BUDGET AND PROGRAM ANALYSIS, WASHINGTON (DC), NOVEMBER 7, 1978

Annotation

THEORETICAL AND PRACTICAL ISSUES RELATED TO THE DECLINE IN PUBLIC ORGANIZATIONS DURING PERIODS OF FISCAL AUSTERITY, AND THE CONCOMITANT NEED TO MANAGE CUTBACKS IN PROGRAMS AND PERSONNEL, ARE EXAMINED.

Abstract

FOR THE PAST SEVERAL DECADES, ORGANIZATIONAL ANALYSTS HAVE ASSUMED CONDITIONS OF RESOURCE ABUNDANCE AND CONTINUOUS AND UNLIMITED ECONOMIC GROWTH. RESULTING MANAGEMENT STRATEGIES HAVE EXPECTED CONTINUING GROWTH IN PUBLIC REVENUES AND EXPENDITURES. YET TAXPAYER REVOLTS EXEMPLIFIED BY CALIFORNIA'S PROPOSITION 13, AND FINANCIAL CRISES SUCH AS THE BANKRUPTCY OF NEW YORK CITY, ILLUSTRATE THE ERROR OF THESE ASSUMPTIONS. BOTH ADMINISTRATIVE THEORY AND PUBLIC POLICY HAVE FAILED TO ADDRESS ISSUES INVOLVED IN ORGANIZATIONAL DECLINE. AMONG PROBLEMS EXPERIENCED DURING SUCH DECLINE ARE DETERIORATION IN MANAGEMENT INFORMATION SYSTEMS, DIFFICULTY IN MAINTAINING ORGANIZATIONAL FLEXIBILITY, PERSONNEL PROBLEMS, AND HARDSHIPS CAUSED BY INFLATION. PUBLIC ORGANIZATIONS DECLINE DUE TO BOTH INTERNAL AND EXTERNAL FORCES AND TO POLITICAL AND ECONOMIC OR TECHNICAL FACTORS. AMONG TACTICS AVAILABLE TO RESIST DECLINE IS DIVERSIFICATION OF PROGRAMS, CLIENTS, AND CONSTITUENCIES; AMONG TACTICS TO SMOOTH DECLINE IS THE ELIMINATION OF LOW-PRESTIGE PROGRAMS. FIVE POSSIBLE DECISION RULES FOR ALLOCATING CUTS ARE SENIORITY, A HIRING FREEZE, UNIFORM PERCENTAGE CUTS IN ALL DEPARTMENTS, EQUALIZING SACRIFICES BASED ON MARGINAL UTILITY, AND ZERO-BASE BUDGETING. A BROAD-SCALE SOCIETAL DECLINE IN RESOURCES AND ECONOMIC GROWTH WILL RESULT IN EITHER AUTHORITARIAN METHODS OF ALLOCATION OR CHANGES IN VALUES AWAY FROM MATERIAL CONSUMPTION AND TOWARD MORE EFFICIENT RESOURCE USE. THIS LATTER ALTERNATIVE IS PREFERABLE BUT WILL REQUIRE MAJOR ATTITUDINAL AND PUBLIC POLICY CHANGES. FOOTNOTES INCLUDING REFERENCES ARE INCLUDED. FOR RELATED STUDIES IN THIS VOLUME, SEE NCJ 59239-59240 AND 59242-50246. (CFW)