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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