Cutback management literature in the 1970s and 1980s: taking stock

Abstract

The main purpose of this article is to take stock of the literature on public sector cutback management in the 1970s and the 1980s, with a specific focus on cutback strategies and the contents of cutbacks. Both theoretical and empirical studies, focusing either on the central or local government level or different policy fields, have been reviewed. The study shows that when governments face cutbacks, they need to address the fundamental choice between across-the-board and targeted cutback strategies. Cutbacks do not occur as one-off single actions but are usually carried out in a number of cutback rounds. The longer-lasting and the more severe is fiscal stress, the more likely it is that the governments will start imposing targeted cuts rather than implementing across-the-board strategies. Looking at the patterns of cutback management in the past is expected to provide useful insights for systematizing the approaches to cutback management and for researching the current crisis. Points for practitioners This article provides an overview of cutback management practices in the 1970s and the 1980s with the expectation that it will contribute to addressing the current fiscal crisis. The pros and cons of targeted versus across-the-board cutback strategies are discussed. The article also looks at various cutback measures including operational cuts (hiring freeze, pay freeze, lay-offs), programme and capital cuts. The study shows that the longer-lasting and the more severe the fiscal stress, the more likely it is that the governments will begin to impose targeted rather than across-the-board cuts. It is found that personnel costs are cut rather reluctantly, and hiring freeze is a dominant measure compared to salary cuts or lay-offs.

The politics of cutback management in thirteen European countries: statistical evidence on causes and effects

“…In our field of public management and administration, that activity was used to be called 'cutback management' in the 1980s. Actually, we derived parts of our analytical framework from the literature on cutback management at that time (Raudla, Savi, and Randma-Liiv 2015). It seems no exaggeration to state that the management of the global financial-economic crisis and subsequent fiscal crisis represent one of the most important challenges for public management today.…”

“…That 'political effort' was interpreted in terms of the governments' cutback decision-making. In the cutback management literature (Raudla, Savi, and Randma-Liiv 2015), the most basic distinction was the one between across-theboard cuts and targeted cuts. Across-the-board measures refer to cuts in equal amounts or percentages, while targeted cuts mean that some face a larger cut than others.…”

Spareadfærd i krisetider: Danske kommuner mellem strategi, omkostningseffektiviseringer og grønthøstere

“…For at forstå hvordan et økonomisk pres påvirker offentlige organisationers spareadfaerd, har teoretikere isaer fokuseret på styrken (hårdhed og laengde) af et økonomisk pres (se fx Raudla, Savi, & RandmaLiiv, 2015) samt årsagen til dette pres, herunder om årsagen til ressourceknapheden opleves som udefrakommende (ekstern) eller selvforskyldt (intern) (Levine, 1978, s. 318-319) 1 . Styrke og årsag til et økonomisk pres forventes således at påvirke spareadfaerden, da pressets størrelse har betydning for nødvendigheden af forandringer, og da den opfattede årsag til presset indvirker på, hvad der lokalt opleves som en 'fornuftig' reaktion på et besparelseskrav.…”

“…I litteraturen om økonomisk pres går en sondring på, om økonomisk pres medfører en dekrementel spareadfaerd eller en målrettet spareadfaerd (Raudla, Savi, & RandmaLiiv, 2015), som fx kan vaere baseret på effektivitetskriterier eller på en central strategisk prioritering af udgifterne (Jørgensen, 1981;Levine, 1985;Pollitt, 2010;Raudla, Savi, & RandmaLiiv, 2015, s. 89). En sådan sondring kan dog skygge for de variationer, der kan vaere i forståelsen af dekrementel og målrettet, og i det følgende gives derfor fire teoretiske bud på krisedrevne besparelsesstrategier.…”

“…2 Denne form for 'baglaens' inkrementalisme benaevnes også ofte 'decrementalism ' (se fxLevine, 1985;Raudla, Savi, & RandmaLiiv, 2015). 3 Casestudierne syntes også at bekraefte, at inkrementelle strategier på højere organisatoriske niveauer godt kunne udmøntes som oplevede effektiviseringer laengere nede i organisationen (Hansen og Kristiansen, 2014b, s. 247).…”