This implies that people should be given equal chances of employment in the public organizations they intend to work in. any person who is qualified for any vacant position in the public organization should be recruited. Since the federal government funds public organizations, it will follow that through fiscal federalism, the government will regulate the way the funds should be used. The federal government has a superior fiscal capacity and as a result, it takes financial responsibility of the public organizations (Super, 2005).
This means that the government will be in control of all the budgetary plans of the public organization. This is a negative impact to the public organization since it cannot run its operations as required. In fact, the management of the organization cannot take great decisions without informing the federal government of it. In this case, the federal government may even decide all the employees to be recruited in the public organization including the disabled but qualified people. Further, it happens that federalism initiates the delegation of control from the federal government to the state. This affects the public organizations negatively in that there is initiated by politics.
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