Government Performance Project Research Articles

Management Capacity, Financial Resources, and Organizational Performance: Evidence from State Transportation Agencies

Scholars have shown the importance of financial resources to organizational performance. More money should enhance performance. However, this predicted link between funding and performance is often unrealized—more resources do not automatically improve the production of public organizations. We contend the skillset of management in charge of that money matters in the funding-to-performance link. We test how managerial capacity moderates how financial resources shape organizational performance. We hypothesize that a higher managerial capacity can lead to a stronger relationship between financial resources and organizational performance in the public sector. This is empirically tested in the context of road infrastructure development with data from all 50 U.S. state transportation agencies from 1995 to 2013. We find that the relationship between improvements in road quality (organizational performance) and capital and physical maintenance expenditures (financial resources) is stronger with high scores on the Government Performance Project quality of capital and infrastructure management (managerial capacity).

Asset Maintenance Practices and Challenges in U.S. Counties

This study explores capital asset maintenance practices and challenges in U.S. counties, which have been understudied in previous public administration research. We also compare the current practices with those found in the 2001 Government Performance Project (GPP) analysis. Interviews with 20 officials in 12 counties revealed six themes. Four of these are concerned with maintenance challenges: the economic environment, politics, human resources, and information systems. The other two themes relate to efforts that have been made by these counties to enhance maintenance through cost management and additional funding. Overall, we found that asset maintenance in these counties was negatively affected by the Great Recession, and that there is still a substantial level of unfunded maintenance, which is only slightly better than what was reported in the GPP, despite a recent focus on improvements.

Turnover, voluntary turnover, and organizational performance: evidence from municipal police departments

INTRODUCTION A traditional assumption of turnover studies is that turnover is an important organizational problem, and therefore, it should be reduced (Staw, 1980, p. 254). According to the human capital theory (G. Becker, 1962; Schultz, 1961), specific knowledge may impose particular costs on the employer if employees with specific knowledge quit. In the public sector, human resources and their expertise have also been emphasized for producing better organizational performance (Ingraham & Selden, 2002). A government that does not have the right people and expertise at the right time is likely to produce ineffective organizational performance (Government Performance Project Final Assessment, 2003, p. 9). (1) Based on the traditional assumption about turnover effects, most turnover studies have focused on why employees quit and how to prevent employee turnover, regardless of the sectors (e.g., Fields, Dingman, Roman, & Blum, 2005; Herrbach, Mignonac, & Gatignon, 2004; William H. Mobley, 1982; Price, 1977; Tourangeau, Cummings, Cranley, Ferron, & Harvey, 2010; Wagner, 2007). In fact, turnover had not been a big concern in the public sector until the brain drain issue was raised in federal agencies when baby boomers began to retire. Since then, most of the turnover studies have focused on identifying reasons regarding why employees quit, to prevent further resignation in the public sector (e.g., Lewis, 1991; McCabe, Feiock, Clingermayer, & Stream, 2008; Whitaker & DeHoog, 1991; Wilson, 1994). In the private sector, however, researchers have investigated the actual consequences of turnover (e.g., Alexander, Bloom, & Nuchols, 1994; Dalton, Krackhardt, & Porter, 1981; Johnston & Futrell, 1989; J. Shaw, Gupta, & Delery, 2005), based on the question that traditional assumption of turnover effects may be wrong (Abelson & Baysinger, 1984; Staw, 1980). No turnover-effect research on public sector was carried out until Meier and Hicklin (2008), and possible reasons for this neglect of turnover effects include difficulty in both measuring performance (H. Hatry, and Fisk, D., 1992; H. Hatry & Fisk, 1980) and agreeing upon performance measures in the public sector (Meier & Hicklin, 2008, p. 574), and lack of available data as a result. While employee turnover has been an issue in the U.S. in the past decade, not much is known about the turnover effects. Instead of taking the traditional assumption about turnover effects and trying to reduce turnover rates as much as possible, it is necessary for managers to understand how organizational performance will be affected by employee turnover before taking managerial actions to deal with turnover issues. If we just try to maintain turnover at a minimum level, it may cost too much to organizations due to high retention costs that include higher pay and better benefits, like high turnover rates would cost too much to organizations due to high replacement costs that include recruiting and training costs (e.g., Abelson & Baysinger, 1984; Glebbeek & Bax, 2004). The present study probes turnover effects on organizational performance in the public sector and tests the traditional assumption of turnover effects in law enforcement contexts. More specifically, this study focuses on the effects of turnover among sworn officers in municipal police departments after differentiating voluntary and involuntary turnover based on a suggestion of the turnover literature. According to the turnover studies (e.g., Abelson & Baysinger, 1984; McElroy, Morrow, & Rude, 2001; William H. Mobley, 1982; Price, 1977; J. D. Shaw, Delery, Jenkins, & Gupta, 1998), voluntary turnover needs to be differentiated from involuntary turnover before being examined, because treating these two kinds of turnover equally would result in overlooking their different etiologies and consequently mislead. TURNOVER EFFECTS The human capital theory can be a theoretical foundation for a traditional assumption about turnover effects, and for examining the relationship between turnover and organizational performance (J. …

Social Capital, Management Capacity and Public Service Performance

Many scholars and policy-makers contend that social capital and management capacity are associated with better public services. It is also likely that organizations with the capacity to manage effective co-production are better able to realize these benefits. To test these assumptions, we explore the independent and combined effects of social capital and management capacity on the performance of major public services in the US states using Robert Putnam's index of social capital and the Government Performance Project's index of state management capacity.1 We find that social capital is associated with higher performing public services, and that strong management capacity enhances its positive effects.

What Factors Affect Management Quality? State Infrastructure Management and the Government Performance Project

Whether the US$131 billion set aside for infrastructure projects under the American Recovery and Reinvestment Act of 2009 can make a lasting contribution to improving the nation’s public infrastructure will depend, in part, on the quality of infrastructure management systems and practices in the states. In this article, we examine the factors that influence how well state governments plan for and manage public infrastructure using results from the 2005 and 2008 Government Performance Project. The pooled Tobit regression analysis shows that capital management quality is affected by political variables such as divided legislatures and legislative term limits, fiscal institutions including tax and expenditure limits, and environmental demand factors, specifically the extent of urbanization.

Introduction to the Symposium: PBB—Works Like the BCS?

Public Administration ReviewVolume 71, Issue 3 p. 352-355 Introduction to the Symposium: PBB—Works Like the BCS? Katherine Willoughby, Corresponding Author Katherine Willoughby Georgia State UniversityKatherine Willoughby is a professor of public management and policy in the Andrew Young School of Policy Studies at Georgia State University. Her research focuses on state and local government budgetary and fi scal management. Her book Policy and Politics in State Budgeting (M. E. Sharpe, 2001), coauthored with Kurt Thurmaier, examines the relationship between budgeting and policy development in American state governments. Dr. Willoughby served as the grading team leader in the area of budget and fi nancial management for the 2005 and 2008 Government Performance Project, a national effort funded by the Pew Charitable Trusts and its Center on the States. She is a past chair of the Association for Budgeting and Financial Management.E-mail:kwilloughby@gsu.eduSearch for more papers by this author Katherine Willoughby, Corresponding Author Katherine Willoughby Georgia State UniversityKatherine Willoughby is a professor of public management and policy in the Andrew Young School of Policy Studies at Georgia State University. Her research focuses on state and local government budgetary and fi scal management. Her book Policy and Politics in State Budgeting (M. E. Sharpe, 2001), coauthored with Kurt Thurmaier, examines the relationship between budgeting and policy development in American state governments. Dr. Willoughby served as the grading team leader in the area of budget and fi nancial management for the 2005 and 2008 Government Performance Project, a national effort funded by the Pew Charitable Trusts and its Center on the States. She is a past chair of the Association for Budgeting and Financial Management.E-mail:kwilloughby@gsu.eduSearch for more papers by this author First published: 09 May 2011 https://doi.org/10.1111/j.1540-6210.2011.02354.xCitations: 10Read the full textAboutRelatedInformationPDFPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessClose modalShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat Citing Literature Volume71, Issue3May/June 2011Pages 352-355 RelatedInformation

Management Practices and State Bond Ratings

One of the central claims of public administration is that management matters for the performance of public entities. Quantifying the impact of organizational management is thus central to the empirical evaluation of this claim. Utilizing novel features of the Government Performance Project (GPP), we assess the impact of state-level management practices on the credit quality of US states. The central challenge—that both the GPP data and bond ratings take the form of ordinal grades—suggests a common solution utilizing multiple indicators of a latent construct (management capacity and credit quality) with appropriate measurement models. After describing the characteristics of the measurement approach, we derive management capacity scores from the GPP data and credit quality scores using bond ratings from the three rating agencies. These derived scores then allow us to test linkages between credit quality of the US states and broad aspects of their relative management capacity. On the whole, we show that financial management capacity influences credit quality, while the evidence is less clear that other forms of management capacity matter.

Management Capacity and State Municipal Bond Ratings

Most state governments issue general obligation (GO) bonds in the financial market to borrow money. Assigned by credit agencies, state GO bond ratings reflect states’ perceived credit quality and affect their borrowing costs. Despite many studies on the determinants of municipal bond ratings, little has been known about the association between state management capacity and bond ratings because management capacity is generally difficult to quantify. However, state governments’ performance grades assigned by the Government Performance Project (GPP) provide a great opportunity to study how people perceive and respond to state governments’ management capacity. This study finds that states with higher GPP grades tend to have higher state GO bond ratings, but the relationship may be nonlinear as people are more sensitive to the extremes of perceived performance. In particular, we observe a “performance premium” scenario in which S&P bond ratings grow at an increasing rate as state GPP grades improve.

Financial Management Grades for the States: A Prospective Use

This research examines whether financial management grades awarded to the states by the Government Performance Project (GPP) can provide some prospective gauge of fiscal performance in proximate years, particularly on the downside of the business cycle. Our findings confirm the weaker fiscal condition in both 2002 and 2003 of states that received lower financial management grades from the GPP in 2001, suggesting that these grades have the potential to be prospective as well as retrospective. These results, however, are tempered by several concerns that inform our suggestions for additional research to further assess the prospective potential of financial management performance grades.

The Impacts of State Capital Management Programs on State Economic Performance

Although the normative literature advocates systematic capital management practices, empirical studies investigating the tangible benefits of these practices are rare. Based on previous findings that public investment affects economic growth, this study extends the model of government spending and economic growth to investigate the effect of systematic capital management programs on state economic performance. Using panel data from 1997 to 2004 and the Government Performance Project's data on state capital management practices, the empirical results indicate that highly systematic capital management programs positively alter the relationship between the state's capital spending levels and the state's economic growth rate.

An Empirical Examination of the Statutory Characteristics and Effects of Highway and Transportation Commissions on DOT Capital Management Capacity

A majority of the states have created, by statute, some type of external body (such as a board or commissions) to oversee their departments of transportation (DOTs). The focus of this research is on two types of commissions: highway-only commissions and multimodal transportation commissions. We review the authorizing statutes that establish these boards and commissions to identify their statutorily defined membership characteristics and roles. We then empirically estimate the possible contribution of commissions'statutory characteristics to a measure of DOT capital and infrastructure management capacity taken from the Government Performance Project. The findings suggest that commissions are designed to promote the general interest in the efficient allocation of transportation resources. They also suggest that large commissions may improve management capacity by fostering more open discussion. There were no significant differences between highway-only and multimodal transportation commissions.

Government performance project

Government performance project

Government performance project

Government performance project

Human Resource Management in American Counties, 2002

Human resource management (HRM) in public organizations is changing as there are numerous policy, procedural and structural reforms underway. Human resource management studies have focused primarily at the state and federal levels, with relatively fewer comprehensive views of county governments. This article looks at human resource management roles, structures and practices from the perspective of county government using data from the Government Performance Project. The article describes approaches to reforms, the role and structures of the central HRM department, and the range of HRM practices related to selection, training, classification and compensation. The study finds that while different innovations and reforms have been adopted, county governments continue to function somewhat traditionally, leaving many opportunities for additional reforms to improve county governance.

The Management Performance of the U.S. States

The Maxwell School's Government Performance Project rated the management successes of the 50 states in several areas, such as capital management, human resources and information technology in 1998 and 2000. Variability among the states was significant. Viewing the Maxwell School data as something to be explained, we focus on political institutions, social characteristics and the economic environments in the states. We review hypotheses that predict management performance, and we test them empirically. We find that states high in social capital, states with professional legislatures, and states with vibrant entrepreneurial economies are more likely to be better managed. A state's tax burden and the governor's powers seem unrelated to the Maxwell School scores. States with a high density of good government groups tend to be poor performers, presumably because citizens join such groups hoping to improve their unsatisfactory state governments.

Capital Management Practices in U. S. Counties

Management of capital assets is crucial to maximizing government resources. This study analyzes capital management systems in 40 large U. S. counties, based on results from the Government Performance Project. Quantitative scores are developed to compare the counties with each other and with recommended practices in three areas: capital planning, project management, and asset (or preventive) maintenance. Counties score highest in project management, and lowest in asset maintenance. Long-term planning is common. Innovative practices in specific counties are also discussed.

The Relationship Between State Government Performance and State Quality of Life#

This article examines the relationship between government performance and quality of life in the American states. We contend that the management capacity of state governments should have direct, tangible impacts on the overall social and economic well‐being of state citizenry. In order to test this idea, we examine the influence of state management capacity (using the 1999 Government Performance Project grades), alongside other economic and political variables, on two prominent measures of state quality of life—The Morgan Quitno “Most Livable State” Index and State Policy Reports' (SPP) “Camelot Index.” We find that both state economic conditions and governmental policy priorities have significant impacts on state performance levels. But, our results clearly indicate that the management capacity of state governments also contributes directly to improving the overall quality of life for state citizens. #A version of this article was presented at the Annual Meeting of the Western Political Science Association, March 27–29, 2003, Denver, Colorado.

Capacity, Management, and Performance

Amid the focus of public management reforms on improving the performance of public organizations and their managers, there has been little empirical attention to the links between performance and management systems and activities; little attention has been paid to how and under what circumstances `management matters.' This study reports data from the Government Performance Project (GPP), with information of all 50 states. The GPP model argues that fundamental management systems are not only amenable to comparison across states but can provide critical components of the capacity that is basic to longer term effectiveness and performance. This article considers the extent to which capacity facilitates performance in financial management, analyzing the factors that contribute to the maintenance of rainy day funds (RDFs). The authors argue that arriving at positive performance for such indicators requires not only administrative capacity but also rules that shape political behavior that will support performance.

A review of state procurement and contracting

Are states effectively managing contracting and procurement activities? Are they striking the right balance between central administrative control and empowerment through delegation? How effective is training and monitoring? How do these practices compare to the principles of best practice? What role will information technology play in the future for procurement and contracting? As part of the Government Performance Project, budget, procurement, and contracting managers in 48 states were surveyed, providing descriptions of their procurement and contracting practices. There are numerous developments that speak to the practical details of contemporary public management. Five key findings are (1) information technology needs are challenging states, with some responding well, but others struggling, (2) in most states staff training needs to be improved, (3) restrictions prohibiting “best value” purchasing need to be removed, (4) states can learn from and improve practices by partnering with other governments and private organizations, and (5) most states use a hybrid of both centralized and decentralized management structures when it comes to contracting and procurement.

The Quality of Management and Government Performance: An Empirical Analysis of the American States

Government performance is an enduring concern for students of public management, public administration, and political science. Government's administrative arrangements and managerial behavior can profoundly influence programmatic content, activities, and outcomes; therefore, considering public management's effects is necessary for a true understanding of public policy and government performance. This article uses data from the Maxwell School's Government Performance Project to examine the relationship between state governments’ managerial capacity and a measure of government performance (specifically, state policy priorities). We find that state management capacity has direct effects on state policy commitments: States possessing higher levels of management capacity tend to favor programmatic areas that distribute societal benefits widely (that is, collective benefits) as opposed to narrowly (that is, particularized benefits). Our analysis demonstrates that public interest group activity, government ideology, and citizen ideology each have significant, predictable effects on state policy commitments. Thus, our findings place managerial capacity alongside other more commonly studied state characteristics as an important influence on government activities.