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Designing and Managing Programs
Fifth Edition
2
SAGE was founded in 1965 by Sara Miller McCune to support the dissemination of usable knowledge by
publishing innovative and high-quality research and teaching content. Today, we publish over 900 journals,
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3
Designing and Managing Programs
An Effectiveness-Based Approach
Fifth Edition
Peter M. Kettner
Arizona State University
Robert M. Moroney
Arizona State University
Lawrence L. Martin
University of Central Florida
Los Angeles
London
New Delhi
Singapore
Washington DC
4
Copyright © 2017 by SAGE Publications, Inc.
All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or
mechanical, including photocopying, recording, or by any information storage and retrieval system, without
permission in writing from the publisher.
FOR INFORMATION:
E-mail: order@sagepub.com
1 Oliver’s Yard
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United Kingdom
India
3 Church Street
Singapore 049483
Names: Kettner, Peter M., 1936- author. | Moroney, Robert, 1936- author. | Martin, Lawrence L., author.
Title: Designing and managing programs : an effectiveness-based approach / Peter M. Kettner, Robert M. Moroney, Lawrence L. Martin.
Description: Fifth edition. | Los Angeles : SAGE, [2017] | Includes bibliographical references and index.
5
Identifiers: LCCN 2015039160 | ISBN 9781483388304 (pbk.: alk. paper)
Subjects: LCSH: Social service–United States–Planning. | Social service–United States–Evaluation. | Social service– United States–Finance.
Classification: LCC HV95 .K428 2017 | DDC 361.0068/4– dc23 LC record available at http://lccn.loc.gov/2015039160
16 17 18 19 20 10 9 8 7 6 5 4 3 2 1
6
Brief Contents
1. List of Figures and Tables
2. Preface
3. Acknowledgments
4. About the Authors
5. PART I: ASSESSING CURRENT PRACTICES
1. 1. Contemporary Issues in Human Service Program Planning and Administration
6. PART II: PROBLEM ANALYSIS/NEEDS ASSESSMENT
1. 2. The Contribution of Theory to Program Planning
2. 3. Understanding Social Problems
3. 4. Needs Assessment: Theoretical Considerations
4. 5. Needs Assessment: Approaches to Measurement
7. PART III: PLANNING, DESIGNING, AND TRACKING THE INTERVENTION
1. 6. Selecting the Appropriate Intervention Strategy
2. 7. Setting Goals and Objectives
3. 8. Designing Effective Programs
4. 9. Designing Effectiveness-Based Information Systems
8. PART IV: CALCULATING THE VALUE AND COST OF THE INTERVENTION
1. 10. Performance Measurement, Monitoring, and Program Evaluation
2. 11. Impact Program Evaluation and Hypothesis Testing
3. 12. Budgeting for Financial Control, Management, and Planning
4. 13. Developing Line-Item, Functional, and Program Budgeting Systems
9. Index
7
Detailed Contents
List of Figures and Tables
Preface
Acknowledgments
About the Authors
PART I: ASSESSING CURRENT PRACTICES
1. Contemporary Issues in Human Service Program Planning and Administration
The Era of Accountability
Designing for Monitoring, Performance Measurement, and Program Evaluation
The Logic Model
Community Focus
The Issue of Effectiveness
Assessing an Existing Program
What Is Effectiveness-Based Program Planning?
Using Effectiveness Principles to Understand Existing Programs
Defining Programs
Assessing Diverse Populations
Problem Analysis
Needs Assessment
Selecting a Strategy and Establishing Objectives
Program Design
Data Requirements for Performance Measurement
Monitoring and Using Information Technology
Program Evaluation
Budgeting
Implementation Considerations
Summary
Review Questions
PART II: PROBLEM ANALYSIS/NEEDS ASSESSMENT
2. The Contribution of Theory to Program Planning
The Use of Theory in Program Planning
Theory in Practice
Planning Theory
Types of Planning
Application of Planning Theory to Clinical Practice: Problem Solving as Applied to Practice
With Clients
Application of Planning Theory to Macro Practice: Problem Solving as Applied to Program
Planning
Problem Analysis and Needs Assessment
Establishing Goals and Objectives
Designing the Program
Developing a Data Collection System
Developing a Monitoring and Evaluation Plan
Theory in Program Planning
Summary
Review Questions
3. Understanding Social Problems
Addressing Social Problems
Stating Problems as Solutions
The Limitations of This Approach
8
The Need for a New Approach
Identifying a Social Condition
Defining Problems
Social Problems and Standards
Frameworks for Problem Analysis
Summary
Review Questions
4. Needs Assessment: Theoretical Considerations
The Concept of Need
Theoretical Understandings of Need
Needs Assessment and the Planning Process
Factors Influencing the Definition of Need
Different Perspectives on Need
Normative Need
Perceived Need
Expressed Need
Relative Need
An Application
Need Categories and the Planning Process
Determining Who Is in Need
Two Major Problems: Reliability and Availability of Data
Summary
Review Questions
5. Needs Assessment: Approaches to Measurement
Methodologies Used in Measuring Need
Extrapolating From Existing Studies: Normative Need
Strengths and Limitations of Surveys
Using Resource Inventories: Normative Need
Strengths and Limitations of Resource Inventories
Using Service Statistics: Expressed Need
Strengths and Limitations of Service Statistics
Conducting a Social Survey: Perceived Need
Strengths and Limitations of Social or Community Surveys
Holding a Public Forum: Perceived Need
Strengths and Limitations of Public Hearings
Using Focus Groups
Selecting the Best Method
Approaches Useful for Locating Concentrations of High-Risk Groups
An Overview of the Issues
An Example of the Need for Spatial Analysis
Spatial Analysis Defined
Factor Analysis: An Example
Human Service Applications
Summary
Review Questions
PART III: PLANNING, DESIGNING, AND TRACKING THE INTERVENTION
6. Selecting the Appropriate Intervention Strategy
The Program Hypothesis
A Maternal and Child Health Example
Types of Program Hypotheses
Where to Intervene
Example 1: Political Economy as a Factor Contributing to Unemployment
9
Example 2: The Presence of a Child With a Disability as a Factor Contributing to Child
Abuse
Example 3: Sexuality and Teenage Pregnancy
The Process of Developing a Program Hypothesis
Statement of a Condition
Statement of a Social Problem
Needs Assessment
Mothers Working in Marginal Jobs
Program Hypotheses and the Idea of Consequences
From Program Hypothesis to Service
Incorporating Problem Analysis Into Program Design
Benefits of the Program Hypothesis
Summary
Review Questions
7. Setting Goals and Objectives
From Program Hypothesis to Goals and Objectives
The Function of a Mission Statement
Goals and Objectives: A Framework for Action
Agency Example: Safe Haven
The Formulation of Goals
The Formulation of Objectives
Requirements for All Objectives
Clarity
Time Frames
Target of Change
Results
Criteria for Measurement
Responsibility
Outcome Objectives
Process Objectives and Activities
Time Frames
Target and Result
Criteria for Measurement or Documentation
Responsibility
Integrating Outcome Objectives, Process Objectives, and Activities
Is It Worth the Effort?
Summary
Case Example
Review Questions
8. Designing Effective Programs
The Significance of Program Design
Program Design and Diversity
Defining the Elements of a Program
Inputs
Throughputs
Outputs
Outcomes
Specifying the Program Hypothesis
Summary
Case Example
Review Questions
9. Designing Effectiveness-Based Information Systems
10
Documentation Practices in Human Services
Designing a Data Collection System for a Program
Step 1: Consider the Evaluation Context of Data Collection and Aggregation
Step 2: Identify the Programmatic Questions to Be Answered
Step 3: Identify Data Elements
Step 4: Develop a Strategy for Analysis
Step 5: Prepare Format for Monthly Reports
Summary
Case Example
Review Questions
PART IV: CALCULATING THE VALUE AND COST OF THE INTERVENTION
10. Performance Measurement, Monitoring, and Program Evaluation
The Link Between Performance Measurement, Monitoring, and Evaluation and Information
Systems
Feedback and Self-Evaluating Systems
Performance Measurement
Monitoring
Program Evaluation
Program Data Requirements
Coverage Data
Equity Data
Process Data
Effort (Output) Data
Cost-Efficiency Data
Results (Outcome) Data
Cost-Effectiveness Data
Impact Data
Performance Measurement, Monitoring, Program Evaluation, and Program Data
The Utility of Performance Measurement, Monitoring, and Program Evaluation
Summary
Case Example
Review Questions
11. Impact Program Evaluation and Hypothesis Testing
Differentiating Impact Program Evaluation From Performance Measurement
Impact Program Evaluation
Impact Program Evaluation and Hypothesis Testing
Research Designs for Impact Program Evaluation
Single Group Pretest/Posttest Design
Nonequivalent Comparison Group Design
Randomized Experimental Design
Summary
Case Example
Review Questions
12. Budgeting for Financial Control, Management, and Planning
The Differences Between Budgeting and Accounting
The Principal Purposes of Budgeting
The Financial Control Purposes
The Management Purposes
The Planning Purposes
Budgeting and the Systems Framework
Major Models of the Budgetary Process
Major Budgeting Systems
11
Line-Item Budgeting Systems
Functional Budgeting Systems
Program Budgeting Systems
Dealing With Revenue Increases and Decreases
Budgeting in Human Service Agencies and Programs Today
Summary
Case Example
Review Questions
13. Developing Line-Item, Functional, and Program Budgeting Systems
Developing Line-Item Budgeting Systems
Designing the Line-Item Budget Format
Developing Common Budget Definitions and Terms
Identifying All Revenues and Expenses
Balancing the Budget
The Link Between Line-Item, Functional, and Program Budgeting Systems
Developing the Line-Item Budget
Determining the Agency’s Program Structure
Creating the Cost Allocation Plan Format
Identifying Direct and Indirect Costs
Assigning Direct Costs to Programs and Indirect Costs to the Indirect Cost Pool
Allocating Indirect Costs to Programs and Determining Total Program Costs
Total Direct Cost Methodology
Direct Labor Costs Methodology
Direct Labor Hours Methodology
Direct Costing Methodology
Which Cost Allocation Methodology Is Best?
Is Cost Allocation Worth the Effort?
Functional Budgeting Systems
Selecting the Program’s Intermediate Output (Unit of Service) Measure
Determining the Program’s Intermediate Output (Unit of Service) Objective
Computing the Program’s Cost per Intermediate Output (Unit of Service)
Selecting the Program’s Final Output (Service Completion) Measure
Determining the Program’s Final Output (Service Completion) Objective
Computing the Program’s Cost per Final Output (Service Completion)
Program Budgeting Systems
Selecting the Program’s Intermediate Outcome Measure
Selecting the Program’s Intermediate Outcome Objective
Computing the Program’s Cost per Intermediate Outcome
Selecting the Program’s Final Outcome Measure
Determining the Program’s Final Outcome Objective
Computing the Program’s Cost per Final Outcome
A Comprehensive Budgeting System
Summary
Case Example
Review Questions
Index
12
13
List of Figures and Tables
Figures
Figure 1.1 The Logic Model 6
Figure 1.2 Organizational Chart Displaying Programs 9
Figure 1.3 The Logic Model Applied to the Planning Process 12
Figure 2.1 Comparison of Clinical and Program-Level Problem-Solving Processes 32
Figure 3.1 A Comparison of Two Approaches to Problem Analysis 40
Figure 3.2 Framework for Problem Analysis 46
Figure 4.1 Two Definitions of Need 51
Figure 6.1 The Relationships Between Variables 92
Figure 7.1 Relationship of Mission, Goals, Objectives, and Activities 111
Figure 7.2 Organizational Chart Illustrating Safe Haven Programs 112
Figure 7.3 Logic Model as Applied to Process and Outcome Objectives 113
Figure 7.4 Hierarchy of Goals, Objectives, and Activities 114
Figure 7.5 Relationship Between Logic Model and Objectives and Activities 126
Figure 8.1 Logic Model as Applied to Program Inputs 135
Figure 8.2 Flowchart of Client Processing 138
Figure 8.3 Logic Model as Applied to Program Throughputs 142
Figure 8.4 Logic Model as Applied to Program Outputs 149
Figure 8.5 Logic Model as Applied to Program Outcomes 155
Figure 9.1 Dashboard Example Using Self-Esteem Scores by Ethnicity Over the First Quarter 163
Figure 9.2 The Fit of Five Types of Evaluation With Phases of the Logic Model 168
Figure 9.3 The Fit of Information System Data Elements to Phases of the Logic Model 171
Figure 9.4 Time–Series Comparison of Completions in Job Training 185
Figure 10.1 The Systems Framework, Feedback, and Self-Learning Systems 193
Figure 11.1 The Relationship Between Program Hypothesis, Program Design, and Desired Result 205
Figure 12.1 The Systems Framework and the Principal Purposes of Budgeting 218
Figure 12.2 The Systems Framework and the Three Major Types of Budgeting Systems 221
Figure 13.1 Comprehensive Budgeting System 248
14
Tables
Table 4.1 Four Types of Need 58
Table 5.1 Age Distribution, Franklin County 69
Table 5.2 Impairment and Disability, by Age (Rates per 1,000) 70
Table 5.3 Estimates of Persons With Disabilities, Franklin County 71
Table 5.4 Resource Inventory, Franklin County Services for Women Who Have Been Abused, Franklin
County Community Action Agency 73
Table 5.5 Service Utilization Survey, Franklin County Community Action Agency 75
Table 5.6 Correlation Matrix 82
Table 5.7 Factor Analysis 83
Table 5.8 Rank Ordering of Census Tracts by Level of Risk 84
Table 5.9 Indicators by Socioeconomic Status (SES) Areas 84
Table 7.1 The Fit Between the Logic Model and the Program Hypothesis 109
Table 7.2 Examples of Mission Statements 110
Table 7.3 Examples of the Relationships Between Goals and Objectives 115
Table 7.4 Example of an Outcome Objective 119
Table 7.5 Relationship Between Intermediate and Final Outcomes 121
Table 8.1 Variables Related to Program Inputs 133
Table 8.2 Narrative Chart 139
Table 8.3 Throughput Elements 142
Table 8.4 Calculating Units of Service 144
Table 8.5 Output as an Element of Service Design 145
Table 8.6 Calculating Output Units 146
Table 8.7 Dimensions of Quality 148
Table 8.8 Focus of Standardized Measures 151
Table 8.9 Level-of-Functioning Scale Measuring Personal Safety 151
Table 8.10 Outcomes as Elements of Service Design 153
Table 8.11 Calculating Outcome Units 154
Table 8.12 An Illustration of How Intermediate and Final Outcomes Might Be Calculated 155
Table 9.1 Scorecard Example Illustrating a Client’s Scores at Intake and During the First Quarter of
Training 163
Table 9.2 The Relationship Between Hypothesis, Goals and Objectives, and Data Elements 165
Table 9.3 Formative and Summative Evaluations 167
Table 9.4 Some Data Elements to Be Considered in Creating a Profile for Victims of Domestic Violence
172
Table 9.5 Considerations in Developing a Strategy for Data Analysis 182
Table 9.6 Table for Data Analysis 183
Table 9.7 Cross-Sectional Analysis of Safe Haven Clients at Entry 185
Table 9.8 Comparison to Other Data Units on Safety at Entry and Follow-Up 186
Table 10.1 A Comparison of Performance Measurement, Monitoring, and Program Evaluation 195
Table 10.2 Types of Program Data and Related Assessment Questions 197
Table 10.3 Performance Measurement, Monitoring, Program Evaluation, and Type of Program Data 199
Table 11.1 Differences Between Impact Program Evaluation and Performance Measurement 204
Table 11.2 Three Types of Impact Program Evaluations 208
Table 11.3 Major Threats to Internal Validity 209
Table 12.1 An Example of a Line-Item Budgeting System for a Human Service Agency 222
Table 12.2 An Example of a Functional Budgeting System for a Case Management Program 223
Table 12.3 An Example of a Program Budgeting System for a Case Management Program 223
Table 12.4 Budgeting Systems, Revenue Shortfalls, and the Level of Debate 224
Table 13.1 Safe Haven Line-Item Budgeting System 231
15
Table 13.2 Safe Haven Cost Allocation Plan Format 234
Table 13.3 Safe Haven Assigning Salary and Wage Costs 236
Table 13.4 Safe Haven Assigning ERE Costs 237
Table 13.5 Safe Haven Determining the Total Direct Costs of Programs and the Total of the Indirect
Cost Pool 238
Table 13.6 Safe Haven Allocating Indirect Costs to Programs Using the Total Direct Costs Methodology
and Determining the Total Cost of a Program 240
Table 13.7 Safe Haven Allocating Indirect Costs to Programs Using the Direct Labor Hours Methodology
and Determining the Total Cost of a Program 242
Table 13.8 Suggested Bases for the Direct Charging of Indirect Costs 243
Table 13.9 Case Management Functional Budgeting System 246
Table 13.10 Case Management Program Budgeting System 247
16
Preface
Our first edition of this book was published by Sage in 1990 at a time when concepts like “outcomes” and
“performance measurement” were beginning to emerge as important new directions in planning and funding
human service programs. Most of the milestone documents—such as the Government Performance and Results
Act of 1993, Governmental Accounting Standards Board service efforts and accomplishments reporting, United
Way of America’s requirements on measuring program outcomes, and accreditation requirements and funding
policies requiring outcome measurement—had not yet been developed.
At that time we were simply trying to get across the concept that the purpose of measuring results or outcomes
was to determine whether a particular program was worth the investment and that this kind of information could
never be determined by the long-accepted practice of focusing only on “process” or services provided.
It has become clear over the last 25 years that outcome measurement is a worthwhile and widely accepted
principle, and a great deal of research, publication, and policy development has gone into ensuring that the focus
of practice must shift to understanding what types and volumes of services provided for what types of clients get
what results at what cost.
However, it has also become clear that while the basic principles of performance measurement are becoming well
entrenched in federal, state, and United Way policies, and in most grant and contract funding, they have not
made great inroads in terms of being widely translated into everyday practices in public and private human service
agencies. Several researchers and authors have noted that designing and implementing the kinds of information
systems that will produce meaningful outcome findings are still beyond the reach of all but the best funded and
most highly professional human service agencies.
The target audience of this book since the first edition in 1990 has been local agency program managers and
administrators. From the beginning we have been committed to helping local agency supervisors and managers
understand how they can take the principles and concepts associated with outcomes and performance
measurement and translate them into the policies and practices of their local agencies.
For us, this process has always begun with a solid grounding in theories of program planning and theories of
human behavior so that, if local agency personnel choose to undertake the challenge of converting their focus and
data collection systems to client outcomes, they will be able to make the needed changes from the perspective of a
full professional understanding, and not merely as a technician applying a formula. To quote from our first
preface, “The methods and techniques are introduced and discussed within a theoretical perspective. To do
otherwise would imply not only that the subject matter is atheoretical, but that the professional practitioner is
basically a technician. Programs without a sound theoretical base, we believe, are built on a flimsy, unsupported
foundation.”
Building on a sound theoretical base, we have tried to present, in a logical, systematic manner, the steps necessary
to develop successful programs: (1) beginning with the explication of a program hypothesis, (2) continuing
through the articulation of goals and objectives, (3) building in the necessary elements of program design, (4)
collecting meaningful and useful data, (5) evaluating results from a variety of perspectives, and (6) learning how to
analyze the costs associated with each phase of the program.
With each new edition we have tried to be responsive to feedback from faculty, students, and practitioners, and
this edition is no exception. Chapter 1 has been reorganized to focus more on the elements to look for at each
stage of an existing program to determine whether it can be translated to conform to effectiveness-based planning
principles. The questionnaire has been removed from Chapter 1 and put online. In Chapters 2 through 6,
concepts have been explained in new ways and terms clarified to help the reader better grasp their significance. In
Chapters 7 through 9 many graphics have been added to accommodate the visual learner. In response to several
requests, the fit between the logic model and effectiveness-based planning has been further explained in the text
17
and illustrated in flow charts. In Chapters 10 through 13 examples have been updated and budget and evaluation
figures adjusted to reflect current realities of practice.
As requested, we have kept the Safe Haven domestic violence shelter example throughout to enable the reader to
follow the flow of program development from initial articulation of the program hypothesis through the final
stages of program evaluation and budget analysis.
While we are very pleased with the progress that has been made over the last 25 years at the policy and funding
levels, we continue to hope that future programs and services at the local agency level will wholeheartedly adopt a
focus on outcomes and performance measurement, and that local agency administrators, managers, supervisors,
and practitioners will develop a curiosity about the complex questions: What types of services with what types of
clients receiving what types of services get what results and at what cost?
In our fourth edition we included an afterword that offered suggestions about how some agencies have made use
of existing resources, including interns, volunteers, technical expertise, board members, and other resources, to
begin to construct a data collection system that would help to better understand client needs, design meaningful
services, and measure results. This section has been eliminated at the suggestion of several reviewers, the message
being that most local human service agencies already have their hands full and cannot realistically take on anything
of this scope on top of their regular duties. Hopefully policymakers and funders will recognize what it takes at the
local level to produce meaningful data and information on outcomes, and the next major emphasis in the
outcomes movement will be to offer incentives and the level of funding needed to make effectiveness-based
planning a reality.
We wish to thank our reviewers for their very thoughtful responses to the many questions posed to them about
changes needed to the fourth edition. We assure them that their feedback was taken very seriously and
incorporated wherever possible. We hope they and other faculty across the country find the changes helpful. Our
enduring thanks goes to our SAGE Publications acquisitions editor for human services, Kassie Graves. She has
always solicited detailed feedback from reviewers and organized it for us in a way that leads to making the new
edition better than the one before. Our thanks also to Carrie Montoya, senior editorial assistant, for always being
available to respond quickly to our questions and bringing the manuscript through to completion. Ultimately, the
hope of the authors, editors, and reviewers is that this book can help to make the planning process understandable
and useful for students and practitioners.
Peter M. Kettner
Robert M. Moroney
Lawrence L. Martin
18
Acknowledgments
19
About the Authors
Peter M. Kettner
is professor emeritus at the Arizona State University School of Social Work. He is the author of six books,
four of which have been translated into multiple languages. He has also authored over 50 articles,
monographs, and book chapters on the topics of purchase-of-service contracting, privatization, macro
practice in social work, human services planning, and social work administration. Over his 30-year career in
academia, he served as consultant to five different state human service agencies and dozens of local nonprofit
agencies on their purchase-of-service contracting practices and in the design and implementation of
effectiveness-based planning systems. In retirement, he has continued his writing and consultation with local
government and nonprofit agencies.
Robert M. Moroney
is professor emeritus of Social Policy and Planning at the School of Social Work at Arizona State University.
He is the author of 10 books and over 60 articles and book chapters on various aspects of policy, planning,
and program evaluation. He has been associated with a number of policy centers, including the Bush
Institute at the University of North Carolina and the Vanderbilt Institute of Public Policy. He also spent a
year at the invitation of the Joseph Rountree Memorial Trust and the Department of Health and Human
Services, England, examining that country’s social policies affecting the family. He recently was a Senior
Fulbright Scholar with the Department of Social Policy and Social Work, University College Dublin, and
more recently a Senior Fulbright Scholar at Vilnius Pedagogical University. He currently serves as a board
member of the Rosalyn Carter Institute for Human Development. He does extensive consultation with
numerous national, state, and local human service organizations.
Lawrence L. Martin
is professor of public affairs, social work, and public administration at the University of Central Florida in
Orlando. He was previously on the faculty of the Columbia University School of Social Work in New York
City, where he directed the program in social work administration. He is the author or coauthor of 30
books and major monographs and over 100 articles and book chapters on human services administration,
procurement and contracting, performance measurement, state and local government, and budgeting and
financial management. His works have been translated and reprinted in Chinese, French, Korean,
Portuguese, Russian, and Mongolian. He has provided consultation and training to numerous state and
local governments and nonprofit organizations throughout the United States. He has also worked
internationally with governmental and nongovernmental organizations in Canada, France, Germany,
Sweden, and Mongolia.
20
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