Securing institutional legitimacy or organizational effectiveness?

Purpose: The purpose of this paper is to consider the impact of a major initiative (the National Competition Policy) and pieces of legislation (the Local Government Act and the Local Government Finance Standards) on the internal practices of a large Australian local authority.

Design/methodology/approach: A theoretical framework is developed using new public management (NPM) and neo-institutional theory literatures to explain the findings. A case study approach was applied to collect the data for the research.

Findings: The findings reveal that the National Competition Policy 1993, the Local Government Act 1993 and the Local Government Finance Standards 1994 mainly have brought about significant changes to the organisation's internal management control processes, such as financial reporting, budgeting and performance appraisal. The changes brought in appeared to be coincidentally similar to NPM ideals. Furthermore, senior managers (such as the chief executive and divisional heads) played a major role in implementing new accounting technologies (activity-based costing and the balanced scorecard type performance measurement system).

Research limitations/implications: Future research on public sector financial management from the outset of organisational contexts could considerably further the stock of knowledge in this area, especially given the rapid changes occurring within the public sector throughout the world. Future research may wish to extend this study by assessing how external legitimating functions become internal reality, the perceptions of reality of the organisational members, and how these perceptions change over time.

Practical implications: The findings reported provide evidence to further our understanding of how the introduction of private sector styles of organisational practices into large areas of the public sector brought about significant changes in the demand for “new” financial management practices.

Originality/value: The findings reported on in this paper will open a new path of research that may increase our understanding about the factors that play a role in the design of management and accounting systems in a public sector context. Further, they will help policy makers and public sector managers in their day-to-day decision-making.

The organizational legitimacy of the Bauhaus

Gaining and maintaining organizational legitimacy can be a major issue
for social and political structures such as cultural organizations. Legitimacy, sometimes called credibility, brings with it access to resources needed for survival and development. Organizations without legitimacy tend not to be successful in attracting grants, subsidies, and sponsorships. Research suggests that legitimate organizations may be seen as valuable social structures (Hybels 1995; Suchman 1995) and come to be “taken for granted” as part of the social fabric. In this article, I explore organizational legitimacy using the framework of institutional theory. I first define legitimacy and then discuss the key concepts of organizational legitimacy. Next, I present a case study based on an art/craft/design school. The school, known as the Bauhaus, existed between 1919 and 1933 in three German cities—Weimar, Dessau, and Berlin. Deterministic views of the pre–World War II environment suggest that the Nazi party was responsible for the closure of the Bauhaus. I argue that other factors were apparent. The Nazi regime was becoming a significant force in the late 1920s, but the story of the Bauhaus becomes more complex when viewed under the rubric of arts management and organizational legitimacy. In this article, I discuss how the Bauhaus sought and managed legitimacy and the role that the state and other actors played in granting that legitimacy. In conclusion, I offer a summary of the relevance of legitimacy to contemporary arts organizations.

Power, politics and legitimacy in information systems implementation : an ethnographic study

Systems implementation is inherently a political process. However, the majority of the literature in the area of systems implementation takes a simplistic look at factors attributed to success. These studies provide empirical evidence that “human factors” such as “top management support” contribute to a successful implementation. Rather than accept this, we challenge this view and explore two “human” issues – power and legitimacy inside systems implementation. By exploring the implementation of a learning management system at the University of New Zealand, issues such as power and legitimacy affect the way an implementation team collaborates. Systems implementation is a complex and messy process and we need to understand the implementation process, acknowledging that top management support is not always necessary to “successfully” implement a system.

Emotional turmoil at the Bauhaus : problems of internal and external legitimacy : an historical case study

Walter Gropius established the Bauhaus in Germany in 1919. The organization established one of the most important design movements of the twentieth century. The organization had a very brief existence and was fraught with disruptions and emotional turmoil. Despite the difficulties, Gropius managed to keep the organization alive long enough for its extraordinary creativity to be harnessed and developed. The organization closed in 1933, but by that time its legitimacy as a source of design and pedagogy was assured. Organizational survival is often dependent on government subsidies, support through sales, donations or sponsorships. A factor in attracting this support is the perceived legitimacy of the organisation. Legitimacy is defined as a degree of consensus that the meanings and behavior of an organisation are valid and desirable by society in
general. Legitimacy remains an undeveloped concept. This paper reviews relevant theories of legitimacy, considers the role of emotions in shaping legitimacy and the emotions evoked as legitimacy is negotiated by internal and external stakeholders. A historical case study of the Bauhaus provides the backdrop for portraying the focal role emotions can play in institutionalization. The paper concludes with a discussion of the lessons of legitimacy available to contemporary cultural organisations.

Public satisfaction with police : using procedural justice to improve police legitimacy

Policing research and theory emphasises the importance of supportive relationships between police and the communities they serve in increasing police effectiveness in reducing crime and disorder. A key reason people support police is that they view police as legitimate. The existing research literature, primarily from the United States, indicates that the most important factor in public assessments of police legitimacy is procedural justice. The present study is the first in an Australian jurisdiction to examine the effect of procedural justice and police legitimacy on public satisfaction with police. Using responses to a large postal survey (n = 2611), findings show that people who believe police use procedural justice when they exercise their authority are more likely to view police as legitimate, and in turn are more satisfied with police services. This study differs to US-based research in the greater importance of people's evaluations of instrumental factors in judgments of police legitimacy. The findings are important as they confirm that people's assessments of fair and effective policing in Australia will be enhanced by policing strategies that emphasise the use of procedural justice in encounters with the public.

Nurturing regulatory compliance: Is procedural justice effective when people question the legitimacy of the law?

Procedural justice generally enhances an authority's legitimacy and encourages people to comply with an authority's decisions and rules. We argue, however, that previous research on procedural justice and legitimacy has examined legitimacy in a limited way by focusing solely on the perceived legitimacy of authorities and ignoring how people may perceive the legitimacy of the laws and rules they enforce. In addition, no research to date has examined how such perceptions of legitimacy may moderate the effect of procedural justice on compliance behavior. Using survey data collected across three different regulatory contexts – taxation (Study 1), social security (Study 2), and law enforcement (Study 3) – the findings suggest that one's perceptions of the legitimacy of the law moderates the effect of procedural justice on compliance behaviors; procedural justice is more important for shaping compliance behaviors when people question the legitimacy of the laws than when they accept them as legitimate. An explanation of these findings using a social distancing framework is offered, along with a discussion of the implications the findings have on enforcement.

Regulating more effectively : the relationship between procedural justice, legitimacy and tax non-compliance

In recent years, a significant number of middle-income taxpayers have been making use of aggressive tax planning strategies to reduce tax. In many cases, it is unclear whether these are designed and used by tax- payers to minimize tax legally or to avoid tax illegally. Those that are designed to exploit loopholes in tax law need to be dealt with in a way that restores faith and equity to the system. But how can tax authorities best manage taxpayers who may have inadvertently become involved in such illegal tax planning practices? Using longitudinal survey data, it will be shown that attempts to coerce and threaten taxpayers into compliance can undermine the legitimacy of the Tax Office's authority, which in turn can affect taxpayers' subsequent compliance behaviour. Responsive regulation, which is based on principles of procedural justice, will be discussed as an alternative enforcement strategy.

Assessing the legitimacy of humanitarian intervention : purpose, authority and means

This study looked at military deployments that seek to promote human rights, including operations in Somalia, Rwanda and Kosovo. While a legitimate humanitarian purpose and international authority for these missions can be demonstrated, finding the appropriate means of action - or how to best conduct the operation - remains very difficult, ensuring similar future missions will remain controversial.

Reformulating higher education and renewing legitimacy through advancing sustainability : the alternative approach of Universiti Sains Malaysia

The Universiti Sains Malaysia Accelerated Programme for Excellence (APEX) program is an attempt to engage the difficult and complex problems of competition, moral leadership and responsibility in Malaysian education. This paper discusses and gives an analysis of some central issues with regards to USM' s reform agenda. I seek to place the USM project within a broader debate over the nature of reform and the possibilities of business unusual in the Malaysian and global environment. The paper is part of a broader project of theorization of USM in the context of understanding what APEX is and how it truly offers a new and vigorous engagement with the problems of higher education in Malaysia. 

The prospects of deliberative global governance in the G20: legitimacy, accountability, and public contestation

This article contends that the ‘G’ system struggles to play a legitimate and effective role in global governance and argues that the G20 could play a important role if the forum was more publically accountable. This article argues that because of increasing forms of public contestation, the broadening agenda of the G8 and G20 and the uncertain status of global cooperation, that the legitimacy of the ‘G’ system is being questioned. As such, it is appropriate to consider deliberative avenues whereby public views could be considered by the G20 in a systematic way to foster forms of accountability. This consideration is animated by deliberative democracy theory and republican theory which advance a normative agenda which seeks to transform governance structures by enhancing the role of deliberation and public reasoning in political life. The article outlines the development of the ‘G’ system's legitimacy, considers possible modes of accountability and public involvement with respect to the G20 and examines the implications of more formalised public deliberation with respect to the G20.