Yi's comprehensive exam

YI’S COMPREHENSIVE EXAM

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COMPREHENSIVE EXAM

Cutting Costs in Financial Hard Times: Massachusetts Towns

Consider a Police Merger

Yi Xing

Fall Semester

University of Georgia


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To: Hamilton and Wenham’s Selectmen and Leaders

From: Yi Xing

Date: 10, 24, 2014

Re: Massachusetts Towns Consider a Police Merger

Executive Summary

Hamilton and Wenham are facing the decision of whether to merge two towns’ police

departments or to seek other strategies in order to cut costs in a time of financial difficulty. The

idea of merging the police departments has brought out many conflicts since its inception. In

order to cut costs, as well as benefit both towns in the future, I recommend that Hamilton and

Wenham share the patrol force in the short term to lower the cost pressure, while strengthening

their internal managerial effectiveness for pursuing merger options in the long term.

Background

The main purpose of the idea of merging Hamilton’s and Wenham’s police departments

is to reduce costs for both during the economic recession. Using Swartz’s analysis, based on the

given scenario of the two towns, merging their police departments could reduce costs by an

estimated $514,130 in total, which is 21.39% of the two police departments’ total costs in 2009.

There are two ways to merge the police departments based on advice provided by the Division

for Local Service. One is to create a “regional police district”, and the other is to forge an “inter-

municipal agreement”. However, regardless of the benefits that can be brought by a merger, the

idea of merging has been voted down more than two times since 1980 due to controversies


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among the public, as well as politics, and the different management styles of two

departments . In the year of 2009, the merger idea was brought up and removed from the table

again.

Define the Issues

In both Hamilton and Wenham, the major cost is from the regional school district. The

second major cost is from the police departments, which are unique to each town (for more detail

please see Section A, Supplement I). Since the regional school district is an independent

government entity, Hamilton and Wenham’s town governments could not impose a budget limit

on schools. Therefore, reducing the expenses of the police departments is the most effective way

for that situation to save costs. The main issue in this case is how the two police departments

handle the internal managerial change for cutting cost. There are three options that can be

considered with regards to solving these managerial issues.

Option I:

Hamilton and Wenham’s police departments should remain the status quo, but Hamilton should

focus on improving their internal performance because current disconduct interferes with

organizational effectiveness and saving costs in the long term.

Analysis:

In Hamilton, the legal cases relating to the police department have cost the town more

than 5 million dollars, and having four of their five leadership personnel on leave has reflected a

problem in their internal personnel management. According to the “conceptual framework of

government performance project” (Rainey, 2009), an organization’s capacity to handle human


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resource management has a direct effect on an organization’s overall performance. Therefore,

Hamilton should develop a plan for improving their internal management, which would include

reorganizing structure, as well as cutting and recruiting employees. Additionally, they should

provide better clarification of their employees’ duties and responsibilities by having their

employees refer to the “human capital standard” (Nigro, 2007) (For furture details, please see

Supplement II). It is also necessary that Hamilton’s police department improves its internal

environment by reshaping its “cultural condition”. As Dr. Hal G. Rainey explains, “The general

environment conditions can influence organization” (Rainey, 2009). Positive internal

performance will lead to effective management of personnel and service providing. Moreover, it

will lead to future cost saving due to fewer lawsuits, fewer position vacancies, and better

employee performance. What’s more, improved internal performance and management will also

increase public confidence and supports.

However, by adopting this option, Hamilton may not save costs in the short term. It might

take Hamilton one or more years to develop and implement plans for achieving better

management. These new developments would likely present additional challenges in terms of

redesigning employees’ rules and duties, which may decrease employees’ well-being.

Option II:

For the sake of efficiency on cutting costs, the Hamilton and Wenham’s police departments

should draft a contract for sharing patrolmen over the short term.

Analysis:

This option is based on Rosenbloom’s theory: the main value of public administration is

to “do proper things with utmost possible efficiency and at the least possible cost either of money


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or of energy” (Rosenbloom, 1983). The Hamilton and Wenham police departments together

spend around 11% (400,000 dollars) of their total salary payments on employee overtime

payments and reservists annually. By sharing patrolmen, the two towns can expect an immediate

decrease in the need for reservists and overtime payment, which can collectively save the two

towns 7.9 percent ($288,768) of their total salary payments. What’s more, because reservists are

not usually keep abreast of update event or policy changes, both departments can expect to

promote the consistency through improving the internal communication by possibly eliminate

the use of reservists.

However, simply sharing patrolmen can only solve the surface problem, yet will not

solve the existing managerial problems in the Hamilton’s police department. The small amount

of savings by sharing patrolmen can be overshadowed by the cost of mismanagement and other

lawsuits in the future.

Option III:

The Hamilton and Wenham’s police departments should insist on the merger option to either

create a regional police district or forge an “inter-municipal agreement” for pursuing effective

services through labor sharing.

Analysis:

By creating a “regional police district” or forging an “inter-municipal agreement,” the

two police departments expect to provide more professional service, since they will share

information, knowledge, approaches, and skills. In addition, by creating a regional police district,

the two departments can expect their performance to become more unified and controlled, since

a regional police commission would oversee the regional department. Furthermore, by adopting


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this merger option, the two departments can also achieve better and more effective services

through a relief from the stress of using labor and resources that are stretched too thin over the

long term by sharing administrative services, patrol, and other tangible and intangible assets.

These changes can improve both police department’s effectiveness managing and the services it

provides.

However, there are many disadvantages to merge the two police departments. Firstly, a

merger requires both police departments to integrate their organizational structures, especially

employee positions and job descriptions, to meet the merger requirements. Two police

departments need to negotiate with each other to achieve a consistent mission, objectives and

goals. What’s more, merging could be very time consuming and expensive. For instance,

appointing regional commissioners and arranging process and people for collective baegaining

can be a time consuming and expensive activity. Secondly, by merging the two departments, the

employees of the departments may experience changes in the organizational culture. Especially

for the town of Wenham, the employees enjoy the small town feel of their department and do not

want to lose this close work environment. Employees in Wenham may feel less motivated if they

have to transfer from a small town to a big district and weather different leadership styles.

Thirdly, the residents in both towns may also suffer from this transition. The public identity of

the police departments built through the histories that these the two departments have shared

with their constituents may also be eliminated by the merger. In addition, the regional district

may also cost the two towns more money and time based on a restriction of regional rules: for

example, “towns have no right to limit the budget that is assessed by the regional commission.”

Last but not least, referring to the regional school district and the existence of the inter-municipal


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agreement they create, more conflicts would emerge in terms of the roles, autonomies and

responsibilities of both towns.

Recommendation

The core value of the managerial approach to public administration is geared toward “the

maximization of effectiveness, efficiency, and economy” (Rosenbloom, 1983). Therefore,

Hamilton and Wenham should consider these criteria when making a final decision. I would

recommend the two towns consider Options I and II as short-term plans, while still keeping in

mind Option III for a long-term plan. For Option I, improving internal performance increases the

effectiveness of management. For Option II, sharing patrolmen is more efficient strategies than

merging the police department since it will save time and energy. Option II can fulfill the core

value of efficiency.What’s more, adopting Option III for a long-term solution is very healthy for

both departments’ economy, and by being well organized, they will achieve effectiveness, as

well.(for comparing the saving of each option, please see Section B, Supplement I)

Conclusion:

For both towns, cutting costs through merge also need to consider the political,

managerial, and legal issues. The three options above are based on the managerial issues and

neglect the other key actors of government, such as the involvement of nonprofits and other

departments. It would be more realistic to consider all factors and actors for a thorough analysis

of this case.


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Supplement I

Section A

The Analysis of FY2009 Hamilton and Wenham Town Budgets

3.30% 1.27%

60.16%

28.42%

5.30%

0.31%

1.24%

FY2009 Hamilton Total and Selected Expenses

Debt Elder Van Emergency Report Center

H-W Regional School District Library Others

Police Recreation Waste Reduction Enterprise

FY2009 Hamilton and Wenham Town Budgets, Totals & Selected Expenses

Budget Catalog Hamilton Percentage Wenham Percentage H&W Total Cost Without Merging PDs

H&W Cost Percentage Without Merging PDs

H-W Regional School District

$ 15,860,621.00 60.16% $ 7,402,243.00 44.70% $23,262,864.00 54.19%

Police $ 1,397,641.00 5.30% $ 1,095,933.00 6.62% $2,493,574.00 5.81%

Library $ - 0.00% $ 701,227.00 4.23% $ 701,227.00 1.63%

Recreation $ 82,311.00 0.31% $ - 0.00% $ 82,311.00 0.19%

Elder Van $ - 0.00% $ 56,192.00 0.34% $ 56,192.00 0.13%

Emergency Report Center

$ 334,495.00 1.27% $ - 0.00% $ 334,495.00 0.78%

Waste Reduction Enterprise

$ 327,800.00 1.24% $ - 0.00% $ 327,800.00 0.76%

Debt $ 869,121.00 3.30% $ 671,662.00 4.06% $1,540,783.00 3.59%

Others $ 7,493,007.00 28.42% $ 6,633,492.00 40.06% $14,126,499.00 32.91%

Total $ 26,364,996.00 100% $ 16,560,749.00 100% $42,925,745.00 100.00%


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4.06% 0.34%

44.70%

4.23%

40.06%

6.62%

FY2009 Wenham Total and Selected Expenses




3.59% 0.13%

0.78%

54.19%

1.63%

32.91%

5.81%

0.19%

FY2009 Hamilton Total and Selected Expenses





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Section B

Comparison of Saving of Each Option

Expecting savings in the

long term

$288,768.00

$514,139.00

$0.00

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

Option1 Option2 Option3

Options Comparison

Savings in Dollars


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Supplement II

Plans for the improvement of Hamilton’s internal performance

a. Recommendations for Hamilton’s staff recruitment:

Since the lieutenant and one sergeant have left the department permanently, and one sergeant is

expected to be out on leave during the summer of 2009 for medical leave, Hamilton needs to

recruit more staff to fill these vacancies. The recommendations are as follow:

1. The Hamilton Police Department shall recruit, on a one-two year contract, a lieutenant

for filling the lieutenant vacancy.

2. The Hamilton Police Department shall recruit one to two temporary staff members, who

have related expertise, for helping the newly recruited lieutenant and assisting the one

sergeant.

3. The Hamilton Police Department should consider taking the advantage of internal

recruitment, because the office staff in the office already know much more about the

department than external candidates. The alternative is asking the related nonprofits or

state government to help with the recruitment process. Usually nonprofits have more

resources than the government does. With nonprofit organizations’ help, Hamilton can

expect to find highly qualified staff members in a short time.

4. When doing the recruitment, the Hamilton Police Department should pay attention to the

details. For example: “Assure that accurate information will be readily accessible to all

interested parties through a variety of media.” (Nigro, 2007)


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b. Recommendations for a new organizational structure:

c. Recommendations for leadership style and dimension of structure

The path-goal theory of leadership holds that “effective leaders increase motivation and

satisfaction among subordinates when they help them pursue important goals.” (Rainey, 2009) It

is important to pay attention to mold a type of leadership that is helpful for the current situation.

The recommendations are as follows:

1. The newly recruited chief shall more closely follow a “directive” leadership style to set

specific directions and expectations in order to improve internal performance.

2. The newly recruited lieutenant shall more closely to a “supportive” leadership style to

encourage a high motivation among employees.

3. What’s more, leaders in the Hamilton police department shall also foster a formalized

structure. For better performance, leaders shall train employees in the department to be

aware of and follow the specific rules and regulations.

4. Leaders shall also create an environment to encourage more involvement of the employees.

Chief

Lieutenant

Sergeant Detective

Patrolmen

Temporary

Staff


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d. Recommendations to improve Hamilton’s internal environment

1. Encourage communication between the chief and his/her employees:

a) Encourage unoffical communication between chief and employees

b) Set at least one meeting per week to exchange thoughts and to report on going process

c) Set gatekeepers for controling the flow of information between departments

d) Set liaison person for transmiting important information

2. Reclarify the values and goals of the Police Department

(All employees in Hamilton’s police department should keep in mind the values, mission

and goals)

3. Cultivate employees’ attitudes and beliefs


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References

Nigro, F., Nigro, L., & Kellough, J. (2007). Recruitment and Selection. In The new public

personnel administration (p. 87). Itasca, Ill.: F.E. Peacock.

Rainey, H. (2009). Analyzing the Environment of Public Organizations. In Understanding and

managing public organizations (4th ed., p. 91). San Francisco, CA: Jossey-Bass.

Rainey, H. (2009). Organizational Goals and Effectiveness. In Understanding and managing

public organizations (4th ed., p. 159). San Francisco, CA: Jossey-Bass.

Rosenbloom, D. (n.d.). Public Administrative Theory and the Separation of Powers. Public

Administration Review.

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