Searching for managerial discretion: how public managers engage managerialism as a rationalization for increased latitude of action

ABSTRACT

This article focuses on the managerial discretion that public managers experience. More specifically, it discusses how managerialism is an embedded ideological stance that influences understandings of public sector governance. I argue that managers’ perceptions of discretion are affected by these understandings. The analysis draws on empirical data from a longitudinal study, demonstrating how public managers engage discourses emanating from managerialism in order to rationalize increased discretion. The findings suggest that customer perspectives functions as a rationalizing factor for engaging public managers’ transition towards increased discretion. As such, this article contributes to knowledge about managerial discretion as well as managerialism.     

Gaming the system: building an online management game to spread and gather insights into the dynamics of performance management systems*

ABSTRACT

Extensive research has produced many insights into the dynamics of performance management systems. Spreading these complex insights among students and practitioners can be a daunting task. Gathering new insights can be equally challenging. This article introduces a novel tool for teaching and researching performance management, reporting on the design and first use of a free online management game. Players take the role of a hospital manager trying to satisfy multiple stakeholders through applying different performance management instruments. While students learn about the complexities of performance management, researchers gather data about the pathways individuals pursue while navigating performance management systems.     

Agent based model of a simple economy

This article proposes a model of a simple economy based on a set of agent-based modeling principles. The model is based on the ??trust game?? formulated by Berg et?al. (Games Econ Behav 10:122?C142, 1995), and anticipates a random matching of partners taking in to account adaptive agent behavior. Simulation in the NetLogo programming environment, using profile distributions obtained from empirical studies, has shown the most successful agents to posses low parameters of trust in the role of Sender and high parameters of trustworthiness in the role of Receiver.     

Pitfalls in VAR based return decompositions: A clarification

We analyze the pitfalls involved in VAR based return decompositions. First, we show that recent criticism of such decompositions is misplaced and builds on invalid VAR models and erroneous interpretations. Second, we derive the requirements needed for VAR decompositions to be valid. A crucial – but often neglected – requirement is that the asset price needs to be included as a state variable in the VAR. In equity return decompositions this requirement is equivalent to including the dividend–price ratio in the VAR. Finally, we clarify the intriguing issue of the role of the residual component in return decompositions. In a properly specified first-order VAR, it makes no difference whether cash flow news or discount rate news is backed out residually, and it makes no difference whether both news components are computed directly or one of them is backed out residually.     

A test for randomness in behaviour

In biological analysis of behaviour, transition matrices occur of which the diagonal entries are essentially zero. For such transition matrices, a model of randomness is constructed, with a test for the hypothesis that this model holds.     

The dynamics of preference formation

A model is developed and estimated which explains the formation of individual preferences on consumption under the influence of contacts with others (preference interdependence) and own consumption over time habit formation). The model employs a cardinal utility function which can be measured independently of behavioral assumptions. Since preference interdependence has been analyzed earlier, the paper concentrates on habit formation, the preference interdependence component being imputed from an earlier study. Due to data restrictions and measurement error, special econometric provisions must be made. Preference interdependence appears to explain two thirds of individual preferences and habit formation one third.     

Improving Human Wellbeing and Ecosystem Health on BC’s Coast: The Challenge Posed by Historic Resource Extraction

Synopsis Haida Gwaii and the Great Bear Rainforest (GBR) comprise the world’s largest intact coastal temperate rainforest. British Columbia has encouraged industrial logging of this region. As a result, ecological values have been eroded and natural capital has been drawn down. The logging industry has provided few local economic benefits. Colonization and industrial resource extraction have contributed to high levels of social distress in First Nations communities. Since 2001, logging companies, environmental organizations, and the provincial and First Nations governments have collaborated in developing an Ecosystem Based Management (EBM) approach. EBM is intended to maintain ecosystem integrity and improve human wellbeing. In 2006, the province began implementing EBM by setting aside one third of the GBR’s land base from logging and by proposing transitional EBM requirements. This paper draws on stumpage and forest cover data to analyze natural capital depletion. The analysis indicates that much of the GBR’s natural capital, as represented by timber, has been depleted. Industrial logging was already on the decline before the decision was taken to implement an EBM approach. Expectations for improved socio-economic outcomes under EBM may not be realistic given the constraints implied by past logging. If EBM performance is measured using conventional economic indicators without accounting for past depletion, it risks being found to have failed the goal of improving human wellbeing. This would create pressure to relax EBM provisions to allow more logging, an outcome that would fail both ecosystems and human communities in the long term. If much reduced extraction levels are to support local human wellbeing, a greater share of economic benefits must be retained locally.      

Investigating Managers' Exploration and Exploitation Activities: The Influence of Top‐Down,Bottom‐Up,and Horizontal Knowledge Inflows*

abstract This paper develops and tests hypotheses on the influence of managers' knowledge inflows on managers' exploration and exploitation activities. Based on a survey among managers of a leading electronics firm, the findings indicate, as expected, that top‐down knowledge inflows of managers positively relate to the extent to which these managers conduct exploitation activities, while they do not relate to managers' exploration activities. Furthermore, as expected, bottom‐up and horizontal knowledge inflows of managers positively relate to these managers' exploration activities, while they do not relate to managers' exploitation activities. We contribute to current literature on exploration and exploitation by focusing on the manager level of analysis, and by adding the importance of knowledge flow configurations to studies which investigate the impact of organizational factors on exploration and exploitation.