Divergent Effects of Cutback Strategies on Organizational Capacities: Evidence from U.S. Counties

Budget cuts are nearly ubiquitous threats to government agencies in today’s world. This study develops and tests contingency hypotheses on the effects of the use of cutback strategies on public manager’s evaluations of organizational capacities. We conduct and analyze a nationwide survey of health and human services directors in U.S. county governments. The results show cutback strategies have divergent effects on public managers’ perceptions of multifaceted organizational capacities, suggesting that policymakers should pay attention to how to better design cutback programs to mitigate adverse side effects.