The Lump Sum Grant Initiative for Hong Kong Social Services Harvard Case Solution & Analysis

Despite its reputation as a bastion of the free market, Hong Kong has long been home to a well-developed, government-supported "social sector." While many non-governmental social service organization started as a purely private and voluntary, the government during the 1980's and 1990's, began to pay an increasing share of their budgets from fees, known as "subsidy." In the mid-1990's, however, leaders of nonprofit social service organizations are becoming increasingly concerned that the conditions under which their organizations receive government support including wages, job descriptions, staffing and set by the government, allowed too little management flexibility. This case describes the evolution of substitution "subsidy" system that, instead of providing support for specific items and materials, instead provide a social service non-profit organizations " lump sum "grants a pot that NGO leaders to distribute. Body parts complexity of planning and implementation of such a transition, focusing among other things on the transition mechanisms necessary to ensure continuity of service and a minimum work force of destruction. government has to deal with the fears is a senior social employees that the new system will give managers an incentive to replace them with newer, younger employees. In addition to the opportunity to discuss specific dilemmas in Hong Kong, it can be the starting point for a more general discussion on the different conceivable relationship between the public and nonprofit sectors, and as such mechanisms as a practical matter, effected. HKS Case Number 1630.0 "Hide
by Howard Husock, Herman Leonard 26 pages. Publication date: 01 Oct 2001. Prod. #: HKS225-PDF-ENG

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