Is lump-sum budgeting crowding out intrinsic motivation? Stories from the field
Type
presentation
Date Issued
2007-10-27
Author(s)
Helmuth, Utz
Abstract
This paper proposes that the motivation crowding theory is a useful tool for the study of motivational effects caused by the change of management concepts. An empirical study of the introduction of ‘lump-sum budgeting' as a budgeting method in organizations applying New Public Management (NPM) highlights three aspects: First, affected public managers respond differently to the new method. Second, their responses are framed in a sensemaking process influenced by their biographical background and specific organizational context. Third, this casts doubt on deterministic behavioral assumptions that could be attributed to lump-sum budgeting and NPM. We theorize acceptance of new management concepts with the crowding theory, providing an analytical framework to better understand the diverse responses.