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Spring 2019

ISSN 0890-913X

Volume 34, Number 1

Categories: Spring 2019 | Housing

Hierarchical Management Structures and Housing the Poor: An Analysis of Habitat for Humanity in Birmingham, Alabama

Stefanie Haeffele, Mercatus Center at George Mason University

Virgil Henry Storr, George Mason University

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TheJournalofPrivateEnterprise34(1),2019,15–37HierarchicalManagementStructuresandHousingthePoor:AnAnalysisofHabitatforHumanityinBirmingham,AlabamaStefanieHaeffele�MercatusCenteratGeorgeMasonUniversityVirgilHenryStorrMercatusCenteratGeorgeMasonUniversity______________________________________________________AbstractHierarchicalmanagementstructuresperformquitedifferentlyinthepublicandprivatesectors.Inthepublicsector,thesestructuresencounterknowledgeproblemsthatimpairtheirabilitytolearnabouttheeffectivenessoftheirprogramsandtheneedtoadjusttheirefforts.Intheprivatesector,however,becausetheymustattractcustomersordonorsinordertoremaininexistence,thesestructuresareepistemicallywellpositionedtoreceivefeedbackontheiroperations.ThisanalysisexaminestheabilityofprivateversuspublicbureaucraciestoprovidehousingforthepoorbyexaminingthehierarchicalstructureandfeedbackmechanismsofHabitatforHumanityincomparisontofederalefforts.Pastgovernmenteffortshavegenerallyfailedtoimprovehousing,resultinginslumsandurbanblight.Conversely,nonprofitorganizationssuchasHabitatforHumanity,whichrelyonhierarchicalmanagementstructuresbuthaveaccesstomorerobustfeedbackmechanisms,haveproventobeeffectiveathousingthepoor.WefocusontheHabitatforHumanityInternationalaffiliateinBirmingham,Alabama,andshowthatithasproducedlastingimprovementsinhousingconditions.______________________________________________________JELCodes:D64,D73,B53Keywords:affordablehousing,nonprofits,HabitatforHumanityI.IntroductionHierarchicalmanagementstructuresperformquitedifferentlyinthepublicandprivatesectors.Inthepublicsector,thesestructuresoftenencounterknowledgeproblemsthatimpairtheirabilitytolearnabouttheeffectivenessoftheirprogramsandtheneedtoadjusttheirefforts.Intheprivatesector,however,becausetheymustattractcustomersordonorstoremaininexistence,thesestructuresare

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Title	Hierarchical Management Structures and Housing the Poor: An Analysis of Habitat for Humanity in Birmingham, Alabama
Authors/Creators:	Stefanie Haeffele, Mercatus Center at George Mason University Virgil Henry Storr, George Mason University
Year:	2019
Volume:	34
Number:	1
Pages:	15 - 37
Publisher:	The Association of Private Enterprise Education
ISSN:	0890-913X
Document Type:	Articles
Keywords:	affordable housing, nonprofits, Habitat for Humanity

Citation:
Haeffele, Stefanie; Storr, Virgil Henry / 2019. "Hierarchical Management Structures and Housing the Poor: An Analysis of Habitat for Humanity in Birmingham, Alabama." The Journal of Private Enterprise, 34(1): 15-37.