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Beyond the figures: Lump-sum budgeting as a management concept in public sector organizations
Type
presentation
Date Issued
2007-09-18
Author(s)
Helmuth, Utz
Abstract
As part of the of the New Public Management (NPM) reforms in many countries budgeting has often been a key issue on the agenda of NPM protagonists. Called "one-line budgeting" in the Commonwealth or "lump-sum budgeting" and "devolved budgeting" in other countries, these initiatives have in common that they give more freedom to the administrative bodies. In the following, we will summarize these methods by the term "new budgeting". The legislative bodies substitute a detailed budget by a net sum of money devolved to the administration combined with objectives the latter has to deliver. The idea is to transform an input based controlling of administrations to an output or outcome based controlling.
Proponents associate several positive aspects with the new budgeting for public organizations. It is been argued, that the flexibility of administrations will increase, since they are able to allocate resources corresponding to current needs. Further, the motivation of employees should be improved by the responsibility they get. Thinking in terms of costs might increase among public servants. Finally possible conflicts of interest between the purchaser of a service (the administrative bodies) and the financer (the legislative bodies) should be objectified.
However, these reforms require a change process in the organizations and might also raise the problem that both bodies have to find their roles within the new power play.
In an empirical research project of 1.5 years we examined with a quantitative and a qualitative design consequences of new budgeting in Swiss public administrations. The proposed paper for the ABFM conference reports on the qualitative part of the study, focussing on organizational questions as the impact of power regimes and experiences of public servants from administrations which introduced new budgeting. The research design consisted of semi-structured interviews with employees at the management level. We discuss the idea of leadership through new budgeting and the evolution of degrees of freedom of employees. Another topic are changes in the relationship of legislative and administrative bodies. Interviewees tell about how they experienced this change process and which difficulties both parties undergo to arrange with their new roles in the power play of new budgeting. Finally the paper covers reflections on promises of more flexibility and personal responsibility. Those promises were usually used by its protagonists to attract the reform for involved public managers. However, later they might become empty promises and public managers are confronted with feelings of betrayal. Within the interviews an image of new budgeting was presented that not fully corresponded to what theory predicts. Rather, individuals describe the work with new budgeting often as an ambiguous challenge, were they had to learn to cope with new power regimes.
Proponents associate several positive aspects with the new budgeting for public organizations. It is been argued, that the flexibility of administrations will increase, since they are able to allocate resources corresponding to current needs. Further, the motivation of employees should be improved by the responsibility they get. Thinking in terms of costs might increase among public servants. Finally possible conflicts of interest between the purchaser of a service (the administrative bodies) and the financer (the legislative bodies) should be objectified.
However, these reforms require a change process in the organizations and might also raise the problem that both bodies have to find their roles within the new power play.
In an empirical research project of 1.5 years we examined with a quantitative and a qualitative design consequences of new budgeting in Swiss public administrations. The proposed paper for the ABFM conference reports on the qualitative part of the study, focussing on organizational questions as the impact of power regimes and experiences of public servants from administrations which introduced new budgeting. The research design consisted of semi-structured interviews with employees at the management level. We discuss the idea of leadership through new budgeting and the evolution of degrees of freedom of employees. Another topic are changes in the relationship of legislative and administrative bodies. Interviewees tell about how they experienced this change process and which difficulties both parties undergo to arrange with their new roles in the power play of new budgeting. Finally the paper covers reflections on promises of more flexibility and personal responsibility. Those promises were usually used by its protagonists to attract the reform for involved public managers. However, later they might become empty promises and public managers are confronted with feelings of betrayal. Within the interviews an image of new budgeting was presented that not fully corresponded to what theory predicts. Rather, individuals describe the work with new budgeting often as an ambiguous challenge, were they had to learn to cope with new power regimes.
Language
English
Keywords
Globalbudget
Globalhaushalt
devolved-budgeting
lump-sum budgeting
crowding out
motivation
HSG Classification
contribution to scientific community
Refereed
No
Event Title
EGPA Conference 2007
Event Location
Madrid, Spain
Subject(s)
Division(s)
Eprints ID
43826