Implications of Organizational Climate and Ethical Leadership on Reengineering in Municipal Government

Abstract

For the past two decades, increasing demands have been placed on government to "do more with less." These pressures have resulted in innovative searches by officials to "find" practical solutions that enhance organizational productivity within stable to declining operational resource environments. Business Process Reengineering has been touted recently by organizational theorists as an innovative method for improving organizational cost-effectiveness, increasing responsiveness to clients, and enhancing service delivery (Hammer and Champy, 1993' Manganelli and Klein, 1994; Linden, 1994; Hyde, 1995). The advent and application of reengineering in government, however, has not been without fierce debate. Offsetting the positive aspects of its utilization, reengineering has been criticized as resulting in dehumanizing workforce reductions and increasing workloads for downsizing survivors. In environments of substantial dynamic change, concern exists for damaging cooperative relationships of management and labor. This study examines survey responses obtained from managers and supervisors in four Florida smaller sized municipal governments. It assesses the influence that organizational climate and ethical leadership have on instituting governmental process changes. The research results indicate a strong relationship between positive organizational climate and successful process reengineering. Less evidence exists to support a similar impact of ethical practices on reengineering outcomes.