SPEA-V 185 Final Exam Study Guide PDF

Preview

Summary

The final exam study guide for SPEA-V 185....

Description

V185 Exam 3 Study Guide Social Science Basics: ● Define and identify the four major components of the scientific method ○ Theory- Some basic understanding of things that help us simplify and explain complex relationships. ○ Operationalization- How to turn abstract concepts into something tangible/meaningful? ○ Observation- How to measure? ○ Analysis- How to demonstrate causality or pattern? ● Define the following terms and be prepared to identify each when given an example: independent variable, dependent variable, normative statement, empirical statement. ○ Independent variable- Causes, explanations. Things that we think are important factors in driving the outcomes (dependent variables) that we are interested in. ○ Ex: ideology, motivation, the political and economic situation, etc. ○ Dependent Variable- A factor, event, or outcome that we want to explain. ○ Ex: Performance of a public organization, outcomes for clients of public programs, the decisions that policymakers make, etc. ○ Empirical statement- The way the world is (or at least the way we think it is), based on what we can observe. ○ Normative statement- The way we think the world ought to be.

What is Public Management?: ● What is public management? ○ Public management is the formal/informal process of guiding human interaction toward public organization objectives. Refers to two things: ■ The people responsible for running a public organization ■ The actual process and strategic combination of resources, both human or otherwise, needed to implement public policy. ● What is public policy? ○ Public policy is the action (or inaction) of the government with regard to a

particular issue or set of issues. What government does (or purposely doesn’t do) ■ Attempts to solve some problem that impacts a large segment of society ■ Involves authoritative political institutions ■ Has implications for the “public interest” ● What is bureaucracy? What are the strengths and weaknesses of this organizational form? ○ A specific form of organization defined by complexity, division of labor, performance, professional management, hierarchical coordination and control, strict chain of command, and legal authority. ■ Division of Labor- allows for task specialization and expertise/// ● can create problems for worker morale. ■ Hierarchy of Authority- makes it clear who is in charge and who has the authority to make decisions/// ● can stifle good ideas from front-line workers and can also create ethical issues when workers are asked to blindly follow immoral or illegal commands. ■ Written rules/regulations- ensure that there are clear expectations about roles and responsibilities and create a standardization of outcomes for clients/// ● makes it hard to innovate, change, or adapt decisions to individual situations or circumstances. ■ Impersonality- ensures that everyone is treated the same, regardless of their status, personal relationships, or political connections/// ● creates alienation and makes the organization feel cold and uncaring. ■ Employment-based on technical qualifications- helps to prevent discrimination and also raises the quality of service delivery by attracting those who are most qualified for the job/// ● depends on how well these qualifications can be objectively measured and can miss some important interpersonal skills.

● What is the politics-administration dichotomy, and how is it related to the progressive

movement? What is the primary goal that was associated with public management during this era? ○ The study of public administration as a neutral instrument distinct from policy and politics. ○ Connected to the progressive movement because it formed out of the thinking of that time period. ○ Goal: To separate politics from administration ■ The administration should focus on “neutral competence” and technical expertise; should not take sides in politics. ■ Politicians should defer to administrators when implementing politics. ● Describe how the US bureaucracy has grown and developed over time. Be familiar with the major events on the timeline. ○

What is a Public Organization?: ● What are polyarchies and markets? What are the advantages and disadvantages of each? How are these two economic structures used in the United States? ○ Markets- buyers and sellers participate voluntarily, prices determined based on the

amount that people are willing to pay, sellers must compete to produce the highest quality goods for the lowest costs. ○ Polyarchies- The government controls the means of production, relies heavily on coercive mechanisms of command and control, based on central planning. ○ In the U.S. we have a mixed economy, some goods are produced primarily via markets and private sector organizations. Others primarily produced and delivered by government agencies. ● What is a public good, and what characteristics do these goods have? Be able to identify a public good from a list of examples. How does the classification of goods as public goods relate to the ways that people think about the appropriate role of the government in providing these goods? ○ If you think that a good is a public good, then public goods are goods that are very difficult for the market to provide because of the market structures around these goods, non-excludable and non-rivalrous. If you think a good is a public good, you think the government should provide the good. ○ Public goods are known as “collective goods” and a few examples include air, news, sunshine, etc. ● What is a free-rider? Be able to identify from a list of examples. ○ Collective action problem that arises when people who share a group’s goals do not join or contribute to it because their personal contribution seems too small to make a difference and they get their benefits whether they participate or not. ○ Examples include: ■ If someone builds a lighthouse, all sailors will benefit from its illumination – even if they don’t pay towards its upkeep. ■ Cleaning a common kitchen area. It would be good if we all contributed to cleaning the kitchen but there is a temptation to leave for someone else – who will do it all for us. ● What are market failures? What are the major causes for market failures? ○ Market Failures occur when goods and services in the free market are not distributed in a way that benefits society. Market failures are characterized by environments where each individual makes the correct decision for themselves,

but those prove to be the wrong decisions for the group. ○ Monopolies, information asymmetries, externalities, and free-riders cause market failures. ● What are externalities? Be prepared to identify both positive and negative externalities from a list of examples. ○ When the costs and/or benefits of the production/exchange of goods are felt by those not directly involved in the transaction. ■ Can be positive (educated citizens, vaccinations, etc.) or negative (pollution, traffic noise, public health threats). ● What is public value? Give an example of how such value might be created? ○ Created when an agent of the government deploys public resources in a way that enhances citizen lives or responds to public preferences. ■ Created an output that is greater than the sum of its parts. ■ Seen as a mechanism for managers to make democracy work. ● What is a public failure? Be able to identify a public failure from a list of examples. ○ Exists when political institutions do not translate both the public and private sector. ○ Can be due to mistakes made by public officials, or by more systemic problems with the political institutions themselves. ■ As of 2019, 67% of Americans indicated that marijuana should be legal, but the sale of it is still illegal in many states and by the federal government. ● What are the two dimensions of “publicness” identified by Bozeman? Be prepared to use these two dimensions to compare and contrast different organizations. ○ Economic Authority- The extent to which an organization competes in the marketplace for revenues. → High economic authority= less public and vice versa. ○ Political Authority- The degree to which an organization is constrained by government rules and regulations. → High political authority= more public and vice versa.

● What is “realized publicness”? ○ What does the organization do on a daily basis and how does it do that, asking the extent to which the organization is doing things to further public value. Similarities and Differences Between Public and Private Organizations: ● What are the three major positions that people tend to take when it comes to private versus public sector comparisons? Be prepared to defend which position you think is most correct, as well as the weaknesses of each argument. ○ Public organizations are ineffective, gov is bad and doesn’t work right. The private sector is more efficient and innovative. ○ The two sectors are fundamentally different, there are different values that play a role in the public sector. ○ There are some minor differences between the private sector and public sector organizations, but they are ultimately fairly similar. ● How do public organizations tend to differ from private organizations in terms of their approach to risk? ○ Public organizations tend to be more risk averse (don’t take risks), mainly because: ■ Concerned about potential scandals ■ Basically no financial incentives for taking risks means that costs of failure are high, but rewards are low. ● Why are public organizations generally more rules-driven and legalistic in nature? ○ This is because the Constitution outlines a series of limitations on government, there are due process rights of employees and citizens, and politicians often put additional rules in place to prevent abuse of power. ■ Due process rights- The guarantees that a person has the right to the fair application of the law before they can be imprisoned, executed, or have their property seized. ● What is goal ambiguity? How does goal ambiguity impact organizational performance? How do public and private organizations differ in terms of goal ambiguity, and why do these differences exist? ○ A lack of clarity among employees and other stakeholders about what the

organization's goals and objectives are. Often associated with lower performance and there’s a degree of difficulty in maintaining and motivating employees. ○ Public organizations tend to have more goal ambiguity than private organizations ■ They have a greater number of goals. ■ Many stakeholders with varied preferences. ■ Difficult to measure some goals. ● What is a civil service system? Why did it adopt in the United States? What are some potential problems or challenges created by the civil service system? ○ Pendleton Act established a Civil Service System to oversee the hiring and firing of government employees. ○ Most of the people who work for the federal government are not politically appointed. ○ Vast majority are hired and fired according to “merit” regulations. ○ Some argue that the civil service reforms have gone too far ■ Often several steps that must be taken before a civil servant can be fired ■ Makes it difficult to fire employees who are incompetent ● What is public service motivation? What does it say about the differences between the motivations of public and private employees? ○ A theory that argues that public employees are motivated more by altruistic ideas/ethos as compared to the private sector. ■ Intrinsic rewards of making a difference are seen as more important than extrinsic rewards. ● What role does the political environment play in shaping the differences between management in the public and nonprofit sectors? ○ Arguably the biggest difference between public and private organizations is the influence of politics. ■ Public organizations are held to different standards than private organizations in terms of transparency and accountability. The Role of the Nonprofit Sector: ● What role has the nonprofit sector historically played in the US with regards to social welfare and other services?

○ The size and scope of American government was fairly limited until after the Industrial Revolution and the New Deal Reforms in the 20th century. ○ Private charities and religious organizations rather than public agencies took the lead in providing many social services. ■ Assistance for the poor, elderly, or disabled ■ Provision of medical care ■ Education ● What are the key differences between nonprofits versus for-profit organizations? Versus the government? ○ Most nonprofits are relatively small organizations with limited resources ■ Few staff ■ Not highly professionalized ■ Mostly rely on volunteers ○ Others, however, are huge organizations that rival the public sector and large corporations in resources and expertise. ● What kinds of differences exist within the nonprofit sector, particularly as it relates to mission/purpose, size, professionalism, and annual budget? ○ Over 50% of charities have budgets that are under $500,000 per year. ● What is the top source of revenue for public charities? ○ Fees for goods and services and private contributions including donations and corporate contributions (Private fees and government fees). ● What are 501c(3) organizations? How are these organizations treated in terms of the tax code? What limitations are placed on organizations seeking to be classified as a 501c(3) organization? ○ The U.S. tax code provides several exemptions for donations to many nonprofit organizations that are classified by the IRS as 501c(3). ■ The organization must not be organized or operated for the benefit of private interests. ■ No part of the organization’s net earnings may “insure to the benefit of any private shareholder or individual.” ● What are 501c(4) organizations? What role have these organizations played in American

politics in recent years? How do the limitations on 501c(4) organizations compare to those for 501c(3) organizations? ○ The NRA, Planned Parenthood, NAACP, Americans for Prosperity, and Organizing for Action are all examples of 501c(4) organizations. ○ Exempt from federal taxes on income ○ The primary purpose, (over 50% of revenue) must be spent to further social welfare. ○ Allowed to do more political lobbying than 501c(3) and can intervene in political campaigns. ○ Donations are generally not tax-deductible. ● What implications did the 2017 Tax reform act have for private donations to charities? ○ It essentially doubled the standard deduction. ● Approximately what portion of Americans volunteer once a year? Which groups are most likely to volunteer? ○ 25% of Americans volunteer at least once per year. Women are more likely than men, those aged 35-44 are most likely while 16-24 are least likely, and college graduates are more likely than others to volunteer. ● What is a wicked problem? Provide a definition and give an example. ○ Highly connected problems that when you try to solve it’s hard to do because there are a lot of other factors that go along with it: poverty, substance abuse, criminal justice, and racial inequality. ● Under what conditions is it constitutional for the government to provide money to faithbased nonprofits? ○ Public funding should not support religious activities, but it may be given to faithbased organizations to support their social service activities. ● What is school choice? What are the arguments in favor and against school choice? ○ This refers to a variety of policies that provide students an option to attend a school other than the public school they would be assigned to based on location. Privatization and Contracting Out: ● What is privatization? Has privatization been increasing or decreasing in recent years? ○ The movement to reduce government expenditures and to return government

assets and operations to private businesses. ● What are some examples of instances where privatization has resulted in improved services? What are some examples where privatization has been problematic? ○ Competition and outsourcing: procedures that allow private contractors to bid jobs previously held exclusively by government employees. ○ Sometimes there is a lack of competition in private vendors, contracts require a significant amount of effort to oversee and enforce, and there is potential for unintended consequences and perverse incentives in some policy areas. ● What is a “hollow state”, and why are some concerned that the US is becoming such a government? ○ A government distinct from the programs it funds, disengaged from the people it serves. ■ Erosion of forums for political disclosure and deliberation ■ Accountability issues ■ Disconnect between citizens and government causes a decrease in commitment to collective action and trust in the public sector. ● What is a complete contract? What is opportunistic behavior, and how do incomplete contracts create opportunities for this to occur? ○ In a world with perfect information and purely rational actors, contracts would be complete. ■ Stipulate what each party should do for every possible contingency ■ Map every possible situation to a set of stipulated actions and outcomes. ○ Incomplete contracts have gaps, missing provisions, and ambiguities. ■ These gaps create the potential for opportunistic behavior. ● “Unanticipated non-fulfillment of a contract or agreement.” ● What is a transaction cost? What are the three major types of costs associated with transaction costs? ○ Costs associated with making an exchange or trade. ■ Information costs- Effort spent determining the quality and prices of goods and services (comparing various sellers to determine who to do business with).

■ Bargaining and contracting costs- Time and resources needed to draw up terms for the exchange. ■ Enforcement and regulation costs- Making sure you get what you paid for (or if you’re the seller, that you get paid what you were promised). ● Under what conditions will transaction costs tend to be high, and when will they tend to be low? What implications do high or low transaction costs have for contracting out efforts? ○ Low: ■ Many sellers of the same good ■ Price and quality of the good are easy to observe ■ Little to no uncertainty about the future ○ High: ■ Few sellers of the same good ■ Price and quality are difficult to observe ■ High uncertainty about the future Decision-Making Processes in Organizations: ● What are prospect theory ○ Models built on assumptions of rational behavior assume that actors make decisions based on maximizing wealth or utility. ○ Most importantly, people respond differently to perceived losses than to perceived gains. ■ Losses are often weighed between 2 and 3 times as heavily as logically equivalent gains ■ Losing $10 hurts as much as winning $20-$30 ● What is loss aversion? ○ One way that this is a differential reaction to losses vs gains impacts decisionmaking is with respect to decisions about risk ■ Because losses hurt more than gains feel good, people are generally riskaverse ■ If a decision can be framed in a way as to be thought of as avoiding a loss, however, people will become more tolerant of risk and willing to take

chances. ● What are System 1 and System 2 modes of decision-making? Which system is used most of the time? ○ System 1 “thinking fast”- is the intuitive and emotionally based way that people react automatically. ○ System 2 “thinking slow”- is the deliberate, logical, rational style of decision making. ■ The majority of decisions we make are done via system 1, subconsciously. ● What is confirmation bias? (see video) Be ready to give a definition of these, and to identify examples of each. ○ Refers to the phenomena wherein people not only seek out info that supports their existing opinion, but they also tend to ignore or discount info that challenges their beliefs. ■ Sports fans and referees ■ Political issues such as climate change, the economy, and even the current situation with Covid-19 mask requirements. ● What does it mean to be a rational actor? Be familiar with each of the criteria used to define rationality in the technical sense of the term. ○ You are able to rank-order your preferences, based on the expected utility of each option. ○ These rank-ordered preferences are stable and transitive. ○ Analyze all possible alternatives, figure out which wi...