The city of Smithville is faced with a difficult financial circumstance. The situation is partly due to a general business slump in the state that had affected the city’s revenue. City officials resisted demands for pay raises from the police, fire, and other city employees. Union leaders were critical of the city official’s financial decision making. City Manager Harmsworth acknowledge that budget cuts were inevitable in order to gain control of the financial situation.
ISSUES: These are common issues that municipalities face during economic downturns. In 2002, 16 percent of cities were forced into police budgetary cuts, “even as crime rose and pressure to improve homeland security increased” (Osborne p. 1). Portland cut its police budget by more than 10 percent over three years. City officials must take immediate action in order to manage the financial problem. Local unions feel they are being punished for the mishandling of funds and poor financial decision making by the city officials. Viewing this organization as an organism, shows …show more content…
The unions must be reasonable in their requests, and at this point must understand they may suffer loses to achieve the overall good of the organism. Gareth Morgan stated, “Conflict arises whenever interests collide” (p. 163). Politically, the city officials will benefit from going through informal leaders or persons with powers of influence to assist in receiving understanding and or buy-in among the employees. Mosher states that, “Informal group leaders may become as powerful an influence on their network or group as any rule, regulation, or manager” (p.182). City officials need to reassure employees that with everyone working together during this crises there will be additional compensation in the
ISSUES: These are common issues that municipalities face during economic downturns. In 2002, 16 percent of cities were forced into police budgetary cuts, “even as crime rose and pressure to improve homeland security increased” (Osborne p. 1). Portland cut its police budget by more than 10 percent over three years. City officials must take immediate action in order to manage the financial problem. Local unions feel they are being punished for the mishandling of funds and poor financial decision making by the city officials. Viewing this organization as an organism, shows …show more content…
The unions must be reasonable in their requests, and at this point must understand they may suffer loses to achieve the overall good of the organism. Gareth Morgan stated, “Conflict arises whenever interests collide” (p. 163). Politically, the city officials will benefit from going through informal leaders or persons with powers of influence to assist in receiving understanding and or buy-in among the employees. Mosher states that, “Informal group leaders may become as powerful an influence on their network or group as any rule, regulation, or manager” (p.182). City officials need to reassure employees that with everyone working together during this crises there will be additional compensation in the