ORGANIZATIONAL RESPONSES TO MUNICIPAL BUDGET DECREASES (FROM MANAGING THE PRESSURES OF INFLATION IN CRIMINAL JUSTICE 1979, BY H JEROME MIRON - SEE NCJ-59239)

• NCJ Number: 59242
• Author(s): A GLASSBERG
• Date Published: 1979
• Length: 7 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. REPRINTED FROM PUBLIC ADMINISTRATION REVIEW, (JULY/AUGUST 1978)

Annotation

PRIVATE SECTOR MODELS FOR DEALING WITH DECREASES IN AVAILABLE RESOURCES ARE EXAMINED IN ORDER TO CLARIFY WAYS PUBLIC ORGANIZATIONS, ESPECIALLY MUNICIPAL GOVERNMENTS, SHOULD RESPOND TO BUDGET CUTBACKS.

Abstract

ALTHOUGH MOST BUDGETING LITERATURE ASSUMES GRADUALLY EXPANDING BUDGETS, RECENT FINANCIAL CRISES IN NEW YORK CITY AND OTHER CITIES INDICATE THAT BUDGET DECLINES WILL BECOME INCREASINGLY COMMON. UNLIKE PUBLIC ORGANIZATIONS, PRIVATE ORGANIZATIONS PROVIDE MANY EXAMPLES OF ORGANIZATIONAL CHANGE DURING RESOURCE SCARCITY OR CUTBACKS. PUBLIC BUDGETING LITERATURE BASED ON THE CONCEPT OF INCREMENTALISM IS INAPPLICABLE IN SITUATIONS LIKE THAT OF NEW YORK CITY, WHERE THE CITY WORKFORCE DECLINED BY 20.8 PERCENT BETWEEN JUNE 1975 AND JUNE 1977. BECAUSE LEADERSHIP ABILITIES AND GOALS ARE MORE IMPORTANT IN CRISIS DECISIONMAKING THAN IN OTHER SITUATIONS, DEVELOPMENT OF NEW THEORY SHOULD FOCUS FIRST ON TYPES OF LEADERSHIP. THE FIGUREHEAD AND BROKER TYPES OF LEADERSHIP ARE LESS LIKELY TO BE EFFECTIVE IN CRISIS MANAGEMENT THAN IS THE CIVIC ENTREPRENEUR TYPE. TWO PRIVATE SECTOR LEADERSHIP MODELS, THE TOUGH LEADER WHO DRASTICALLY CUTS OVERHEAD AND HOLDS DOWN LABOR COSTS, AND THE REVITALIZING ENTREPRENEUR WHO REDIRECTS THE ORGANIZATION INTO A NARROWER SPHERE OF ACTIVITY, MAY BE APPLICABLE, ALTHOUGH IN DIFFERENT TYPES OF ORGANIZATIONAL SETTINGS. A THIRD MODEL, THE 'RECEIVER IN BANKRUPTCY,' IS RELEVANT WHEN A SMOOTH WINDING DOWN OF AN ORGANIZATION IS REQUIRED. IN THE NEW YORK CITY FINANCIAL CRISIS, CHANGES IN THE BOARD OF HIGHER EDUCATION, THE HEALTH AND HOSPITAL CORPORATION, AND OTHER AGENCIES, ILLUSTRATE APPLICABLE LEADERSHIP MODELS. BECAUSE BUDGET DECLINES ARE LIKELY TO CONTINUE, UNDERSTANDING OF INCENTIVES AND DISINCENTIVES ON BOTH MANAGERS AND FINANCIAL INSTITUTIONS AND ORGANIZATIONS SUPPORTING GOVERNMENT, AS WELL AS UNDERSTANDING OF LEADERSHIP, ARE ESSENTIAL. FOOTNOTES INCLUDING REFERENCES ARE INCLUDED. FOR RELATED ARTICLES IN THIS VOLUME, SEE NCJ 59239-59241, AND 59243-59246. (CFW)