Management & Public Administration: Evolution of thought
Transcript of Management & Public Administration: Evolution of thought
By Syndicate Group 12:
Ram Niwas Meena,
Ram Singh,
Mohammad Tayyab,
Shipra Srivastava,
Nitisha Mann,
Kunal Angrish,
Bishop Sarkar,
Charu Nigam
Management & Public
Administration: Evolution of thought
Outline
What is Administration?
What is an organization?
What is Pub Ad?
Difference Between Management and Public Administration
Paradigms – Evolution of Thought
LPG - Reforms
Good Governance
Administration , Management, Organization –
used interchangeably
What is an organization?
Goal Oriented
• Objective
• Ethos
• Roles and Responsibilities
Human Grouping
• Management
• Personnel
Performing functions
• Decision Making Functions
• Implementation / Execution Functions
Funds
Functions
Functionaries
Economic
Efficient
Effective
3 Fs of Organization
3 E concerns/ Aim
Govt Organizations include:
Ministries
Secretariat
Field Agencies
Departments – Water, Electricity etc
PSUs
Training academies etc
Administration as:
As an activity: Administration is as old as the society itself
As a subject/ Discipline : Study of administration is a new
domain and dates back to the First essay in 1887 by
Woodrow Wilson : “ The Study of Administration”
Administration is the performance of activities in
Activities impacting Govt exchequer
For the people, serving the people
What does “Public” Mean?
Public Administration
Study of Govt. Organizations
That exist in Political Setups(Environment)
Is the management of public agencies implementing
public policies to fulfill state purposes(Aim) in the
public interest
activities of groups cooperating to accomplish the
common goals of government.
Example of activities of Govt in Public interest:
maintenance of law and order, communications, public health,
education, etc.
Difference Between Administration and
Management
Public Administration has:
Principle of uniformity
Principle of external financial control
Principle of service motive
Paul H. Appleby - public administration is different from private administration in three important aspects:
political character
breadth of scope
impact and consideration and public accountability
Ethos of both Public administration and pvt administration
differ
One focuses on profit motive and the other on public
interest
Public administration aims at delivering public goods and
services to all the citizens
Management / Pvt Administration focuses on economic,
efficient good quality service to the ones who pay for the
services
Similarities
Managerial Aspects: planning, organizing,
coordinating and controlling
accounting aspects like maintenance of accounts,
filing, statistics and stocking are the similar
hierarchical chain of command or reporting as
the organizational structure
Propensity to getting influenced, adopt and need
for reform
personnel and financial concerns – leaves,
welfare, motivation, training, productivity
Due to the similarities between public and a private
administration functions
authors like Henry Fayol, M P Follet, Lyndall Urvick did not treat
the two as different.
Henry Fayol said that all kinds of administration function on
some general principle
planning, organizing, commanding and controlling
Evolution of Thought
Broadly, there are five stages in the chronology of the evolution
of Public Administration as a discipline:
Stage 1: Era of Orthodoxy: Politics administration
dichotomy (1887-1926)
Began with the 1887 essay on “The Study of Administration” by
Woodrow Wilson
Wilson believed in the Science of administration
Goodnow- “ Politics has to do with the policies and expression
of state will” ; “ Administration involves execution of these
policies”
Water tight separation between politics & Administration
Stage 2: Principles of administration
(1927-1937)
Scholars believed in fundamental principles of administration
applicable in general parlance to all types of administration
irrespective of public or private organizations
That can enhance economy, efficiency and effectiveness of
public administration
Value neutrality
Public administration as science- experiments to find best
methods and bench marking etc
Scientific Management Movement- F.W.Taylor
Mohit Bhattacharya observed that – Public aspect of Public
administration was literally dropped in this phase and extreme
emphasis was given to the principles of adminisrtation
Stage 3: Public Administration as Political Science: Era of challenge (1938-1947) Challenges faced by the discipline from behavioral thinkers and
Human Resource school of thought
Challenging the over simplistic assumptions of a rational economic man
Hawthorne experiments – elton Mayo
Stage 4: Public Administration as Administrative Science-(Management) Crises of identity (1948-1970)
Post war period- challenges in society
return of ‘values’ in Public administration
cross cultural as well as cross national study of administration
New Public Administration
Comparative Public Administration
Stage 5: Public Administration as Public Administration:
Public policy perspective (1971 onwards)
Reinventing & Reengineering Government
New Public Management
New Public Service
Post Modernism
Locus vs Focus
Robert Golembiewski analysed the above paradigms in terms
of the stress given to the thinkers of the particular era /
paradigm on “LOCUS” & “FOCUS”
Locus- Where does the study of Public administration lie -
context
Focus- What is the domain of specialists of public
administration
Present Paradigm
Focus and Locus both coincide
Systems approach to studying organization
Focus on delivery of public goods and services –
economically, efficiently, effectively
Government Governance Good Governance
Minimum Government
Maximum Governance
Stage 1: Politics Administration
Dichotomy
September 19, 2016 20
Woodrow Wilson
“The Study of Administration”
1. Stressed the need for a scientific study of administration.
2. Delineated conduct of government as a field for analytical study.
3. He provided rationale for public administration as an academic
discipline and professional specialization.
September 19, 2016 21
Political Science deals with “ WHAT” of Govt.
Public Administration deals with “HOW” of Govt.
1. Economy
2. Efficiency
3. Effectiveness
Politics Administration Dichotomy
Rests on a functional-structural view of government, dividing
governmental authority between elected and administrative
officials along functional lines
Administration/ Executive is of two types
Elected Representatives (Policy Formulation)
Career Bureaucrats( Policy Implemenation)
This paradigm was the beginning of Public administration as
a discipline where attempt was made to see administration
and politics as completely distinct from each other
September 19, 2016 23
•The Study of administration could be new as a discipline
•But there is a well written mention of study of
administration in Indian Scriptures- Kautilya’s Arthshastra
September 19, 2016 24
The central theme of Kautilya’s Arthashastra is:
“PrajasukheSukham Raja, Prajacha HiteHitam..”
“In the happiness of the subjects lies the benefit of the king and in
what is beneficial to the subjects is his own benefit” – (1.19.34)
Kautilya‘s Arthashastra
September 19, 2016 25
According to Pandit Nehru:-
Chankya‘s Arthashastra deals with a vast variety
of subjects and covers almost every aspect of
theory and practice of government.
R C Majumdar considers the Arthashastra as the
classical work on the study of political science
and administration and as the high
watermark of Indian Political thought.
September 19, 2016 26
Nature of State
Nature of Duties
Saptanga Theory/Prakritis
1. The Swamin OR The Ruler
2. The Amatya OR The Minister
3. The Janapada OR Population
4. The Durga OR The Fortified Capital
5. The Kosha OR The Treasury
6. The danda OR The Army
7. The Mitra OR Ally and Friend
September 19, 2016 27
Principles of Public Administration
Principles of authority, obedience and discipline,
of duty and interest, and of responsibility.
Principles of division of labour, of coordination,
of separation, of hierarchy, and of equity
September 19, 2016 28
Machinery of Government
Financial Administration
Home Department
Justice
Wage and Salaries
Recruitment and Training
Relationship between Organs of State
Stage 2: Principles of Administration
(1927-1937)
Henri Fayol
Founder of “ Management Process School ”
Origin of his management concepts
Management and public administration
Ideas about managerial activity as regards industrial undertakings.
Elements of management
Attributes of good manager
1. Division of work
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual
interest to general interest
7. Remuneration
1. Centralisation or
decentralisation
2. Scalar chain
3. Equity
4. Order
5. Stability of tenure
6. Initiative
7. Esprit de corps
Fayol’s Principles of management
Frederick Taylor
1. Father of scientific management
2. Applicability of his ideas
3. Concept of “ skiving or soldiering ”
4. Use of scientific studies
5. Fundamental concept
6. Philosophy of scientific principles
* Science, not rule of thumb
* Harmony, not discord
* Co-operation, not individualism
* Maximum output in place of restricted output
* Development of each man to his greatest efficiency and prosperity
Scientific Principles
• Development of true science
• Scientific selection of workers
• Scientific education and development of workers
• Division of work and responsibility
• Fayol vs Taylor
Stage 3: ERA OF CHALLENGE
(1938-1947)
35
Main idea : human relations- behavioral approach to the study of public administration.
The idea of politics administration dichotomy was dropped.
The principle-approach to organizational analytics was rejected because it laid emphasis only on formal structure of organization & neglected the socio-psychological aspects of organization behavior.
Hawthrone studies by Harvard Business School under the leadership of Elton Mayo stated the importance of role of informal organization in determining the organizational efficiency. This gave rise to “ HUMAQN RELATIONS THEORY “.
Herbert A Simon threw light on behavioral approach to public administration . “ decision-making – heart of public administration “.
Robert Dahl : No science of public administration is possible unless The place of normative values are made clear(Ethos) The nature of man and his conduct in public administration context
is clearly understood(Rational Economic Man vs Thinking Social Being)
Comparative studies
ELTON MAYO : Father of Human
Relations Theory
36
Concentrated on the study of workers behaviour & the
production capacity taking into consideration physiological,
physical, social, economic & psychological aspects.
Hawthrone studies (1924-1932)
Conducted in Western Electric Company at Hawthrone near Chicago-
USA in 4 phases :
Illumination Experiment (1924-27)
Relay Assembly Test Room Experiment (1927)
Mass Interview Programme (1928-31)
Bank Wiring Experiment (1931-1932
Conclusion :
37
Social & psychological factors at the workplace & not the physical conditions of work determine the employee’s morale & output.
Organization is a social system.
Non-economic rewards & sanctions significantly affect the worker’s behavior, morale, output.
Workers are social animals.
Division of labor strictly on specialization is not necessarily the most efficient approach.
The workers have a tendency to form small groups (informal organization) which sets up the productions norms and behavioral patterns.
Workers react to management as members of informal groups and not as individuals.
Leadership style of supervision and participation play a central role in worker’s behaviour, satisfaction & productivity.
Human Relation Theory
38
Human relation theory of organisation has 3
elements :
Individual
Informal organization : L D White defines it as “ the set of
work relationships that grow out of mutual interation of
people working together over a long period of time.”
Participative Management : participation of workers in
decision making with regard to their work conditions . This
in in direct context to scientific management of F.W.Taylor.
Classical theory Vs. human relations theory
39
Sno PERSPECTIVE CLASSICAL THEORY HUMAN RELATIONS
THEORY
1 Emphasis on - Formal organizational structure. Informal organization.
2 View organization as- Rational and impersonal system Emotional and social system.
3 Advocates workers as - “economic man view” “social man view”
4 Concentrates on - Physiological and mechanical aspects of
organization
Sociological and psychological aspects
of organization
5 Organizational behavior
is-
Product of rules & regulations made by
management.
Product of attitudes, sentiments &
feelings of employees.
6 Assumption- People are homogeneous. People are heterogeneous.
7 Style of supervision- Authoritarian Democratic
8 View of man- Atomistic Social
9 Organizational
efficiency depends on-
Structural built according to principles. Human relations and worker’s
satisfaction and morale.
10 Focus on - Physical environment of job Social environment of job.
Taylor Vs Mayo
40
Sno. PERSPECTIVE TAYLOR MAYO
1 Concept- Economic man Social man
2 Workers are- Isolated and unrelated individuals. Social animals
3 Focus- Physiological & mechanical dimensions. Sociological & psychological dimensions.
4 Advocates on- Autocratic management. Participative management.
5 Assumption on
organizational
man-
Rational and logical Social and emotional
6 Concerned with- Motivation of the workers only Motivation of both managers and
workers
7 Advocated on- Monistic theory of motivation Socio-economic theory of motivation.
8 Stressed on- Technical skills. Social skills.
9 Subscribed to- Rabble hypothesis
(passive view of man)
Rejected rabble hypothesis and
subscribed to ‘herd hypothesis’
Stage 4: Public Administration as
Administrative Science-(Management)
“State of Crises of identity” (1948-
1970)
In the backdrop of Second World War, when most countries
were facing multitude of problems in various spheres of life
Different disciplines tried to find answers to questions of
existence of and roles and responsibilities of state
Public Administration in this phase revived itself and brought
the focus back to development of administrative theories
So the thrust in this paradigm was to develop public
administration theories with the right locus as well as focus
This brought a paradigm on New Public Administration
Crisis of Identity
Some thinkers returned to Mother discipline of Political
Science – “ A Theory of public administration means in our
times a theory of politics also”
Others moved towards a scientific study of administration
with a broader focus and a better established locus
Various developments in this phase
Rise of Human Relations Approach
Growth of Comparative Public administration- Pub ad is
culture bound; Normative
Ecological approach – F W Riggs
Development Administration
Emergence of New Public Administration
Public choice approach- creating options / choice for the
client/ people
New Public Administration: Revived
Focus on Goals
Relevance – nither the dicipline nor the practice of public
administration was able to give answers to problems faced by
various countries : Meaningful studies
Values
Social Equity - values of being in a govt set up
Change - as an instrument to bring social change
Client Focus – Public interest
“Anti Goals” of NPA
Anti- Positive Rejected Public Administration as “Value Free”
Anti Bureaucratic/ Anti Hierarchical- organization behavior – need for communication within the organization as
against scalar chain and strict unity of command was focused- Thinkers like Chester Bernard- “Cooperative System” Herbert Simon- “informal channels of communication” in social relationships
in the organization
Anti Technical- Human resource school, Ecological
Dwight Waldo
Denied politics – administration dichotomy
Critical of organizational approach Undue importance on structure & functions in organizations
Formal, socio-emotional aspects ignored
Brought the contemporary focus into the study of public
administration
Participation, decentralization & representative bureaucracy
Participation- political as well as organizational(increasing
citizens as stake holders in policy formulation)
More autonomy within the govt organizations- delegated
powers for decision making at various levels
Decentralization client centered administration
Played a Key Role in New Public Administration Movement
to revive the identity of the discipline- Minnowbrooks
Perspective
Monnowbrooks conferences were a series of conferences that
began n 1968 with the formation of CAG
Simon- Decision Making
Decision making is a process
End decision- value based / ethos of the organization matter
Method- scientific bounded rationality based/ calculated and
measured for efficiency
Programmed and Non Programmed decisions
Stage 5: Public Administration as
Public Administration: Public policy
perspective (1971 onwards)
New Public Management
Second Minnowbrook Conference (1988)
Changed Scenario
Organized when US economy was upbeat.
Focus was on Liberalisation, Privatisation, Globalisation.
Proposed New Public Management
Reinventing ; Re engineering Government
Monopoly Facilitator of businesses
Why Did the Things Change..?
Thatcherism
a belief in free markets
Rather than planning and regulating business and
people's lives, government's job is to get out of the way.
“The problem with socialism is that you eventually run out of other
people's money”
Reaganomics • Tax Cuts
• increased military spending
• Proposed slashing of government programs
“If it moves, tax it. If it keeps moving, regulate it. And if it stops moving,
subsidize it”
Peter Drucker
• Founder of modern management
• Single most important thought leader in
the world of management
• Believed that ‘management’ is a generic term and not related to business alone.
• Criticized government administration as “fat, flabby, expensive and unproductive”. Argued that
Government is a “poor manager”, is concerned with procedures and not objectives, “dramatises’
issues and is characterized by “non-result”.
Remedies -‘Continuous improvement’ should be built into functioning of govt system;
-‘Benchmarking’- comparing performance with all other players.
- negative incentives e.g. budgetary cuts for non-performance.
- public organizations to define objectives of performance, quality and costs.
New Public Management (NPM)
Backgound of Druckers views
Contemporary Realities (Thatcher, Reagan)
NPM
(Christopher Hood)
Crisis in 1991
Mohd Tayyab
1991- India Faced Balance of Payments Crisis.
• Break-Up of Soviet Union
• Iraq-Kuwait War
• Slow Growth of Important Trading Partners
• Political Uncertainty and Instability
• Loss of Investors’ Confidence
• Fiscal Indiscipline
• Rise in External Debt
Reason for Crisis in 1991
Macroeconomic Indicators and Balance of
Payments Situation in 1990-1991
The trade deficit increased from Rs. 12,400 crore in 1989-90 to Rs.
16,900 crore in 1990-91.
The current account deficit increased from Rs. 11,350 crore in 1989-
90 to Rs. 17,350 crore in 1990-91.
The CAD/GDP ratio increased from 2.3 in 1989-90 to 3.1 percent in
1990-91.
The fiscal deficit to GDP ratio was more than 7 percent during the two
years 1989-90 and 1990-91.
The foreign exchange reserves, meant to cover import costs for two
years (1989-1991),were just sufficient to cover close to two and half
months of imports.
The average rate of inflation was 7.5 percent in 1989-90,
which went up to 10 percent in the year 1990-91. In 1991-
92, it crossed 13 percent. The GDP growth rate which was
6.5 percent in 1989-90, went down to 5.5 percent in 1990-
91.
The Balance of Payments crisis also affected the performance
of industrial sector. The average industrial growth rate was 8
percent in the second half of 1980s. In 1989-90, it was 8.6
percent and in 1990-91 it was 8.2 percent.
India’s foreign exchange reserves stood at Rs. 5,277 crore on
31 December 1989, which declined to Rs. 2,152 crore by
the end of December 1990. Between May and July 1991,
these reserves ranged between Rs. 2,500 crore to 3,300
crore.
India’s external debt increased from Rs. 194.70 crore (USD
23.50 billion) in 1980-81 to Rs. 459.61 crore (USD 37.50
billion) in 1985 – 86.
It went up to Rs. 1,003.76 crore (USD 58.63 billion) in
1989-90.
In 1990-91, it was Rs. 1,229.50 crore (USD 63.40 billion)
Rise in External Debt
Consequences….
The economic situation of India was critical.
The government was close to default; With India’s foreign
exchange reserves at USD 1.2 billion in January 1991 and
depleted by half by June, an amount barely enough to cover
roughly three weeks of essential imports, India was only
weeks way from defaulting on its external balance of
payment obligations.
Immediate steps taken by GOI…
Government of India's immediate response was to secure an
emergency loan of USD 2.2 billion from the International
Monetary Fund by pledging 67 tons of India's gold reserves
as collateral.
The Reserve Bank of India had to airlift 47 tons of gold to the
Bank of England and 20 tons of gold to the Union Bank of
Switzerland to raise USD 600 million.
The Chandra Shekhar government had collapsed a few
months after having authorised the airlift.
The move helped tide over the balance of payment crisis and
kick-started P.V.Narasimha Rao’s economic reform process.
NPM: New public management
Ram Singh
Management techniques and practices drawn mainly from the
private sector:seen as a global phenomenon
NPM reforms shift the emphasis from traditional public
administration to public management
Key elements
various reforms like decentralizing management within public
services (e.g., the creation of autonomous agencies and devolution of
budgets and financial control),
use of markets and competition in the provision of public
services (e.g., contracting out and other market-type mechanisms),
increasing emphasis on performance, outputs and
customer orientation
NPM reforms have been driven by a combination of
economic, social, political and technological factors
Common feature of countries going down the NPM route
has been the experience of economic and fiscal crises
which triggered the quest for efficiency and ways to cut
the cost of delivering public services
New Public Management Model
Objective :
To propose a new point of view towards the organizational design in the public
sector
TO propose a more decentralized control of resources and exploring other service
delivery models to achieve better results,
The core themes for the New Public Management:
A strong focus on financial control, value for money and increasing efficiency
Introducing audits at both financial and professional
Deregulating the labor market
Discouraging the self regulatory power of the professionals and handing over the
power from individuals to management
Encouraging more entrepreneurial management than bureacracy with high
retrospective accountability requirements upwards
Introducing new forms of corporate governance
Economic Reform, July 1991 Public administration in India in 1991 had heavily influenced by
Washington Consensus
This consensus, encapsulated by John Williamson, reflected the
free-market approach to development followed in those years by
the IMF, World Bank, and key U.S. government agencies
Ten Points:
1. Fiscal discipline
2. Redirection of public expenditure priorities toward health,
education, and infrastructure
3. Tax reform
4. Unified and competitive exchange rates
5. Secure property rights
6. Deregulation
7. Trade liberalization
8. Privatization
9. Elimination of barriers to direct foreign investment (DFI)
10. Financial liberalization
Economic reform In India (implementation of
WC in a disguised form)
Two - fold reform measures
1- Macroeconomic stabilization measures (Demand side
management )
Reducing public expenditure ( for reducing F.D., Inflation
and CAD)
2- Structural adjustment reform measures (Supply-side
management )
All policies to boost aggregate supply of Goods and
services in economy (LPG model of development)
L- Liberalization (Pro-market and pro-capitalist inclination of
Economic Policy)
P- Privatization (Promoting greater role of Private sector in
Economic System and Promoting principle of LAISSEZ-FAIR)
G- Globalization (Integrating domestic Economy with world
economic system through external sector liberalization
measures)
New Face of Public Administration after Economic Reform
It has changed the role of Government in its administrative
mechanism (From regulator to Facilitator and manager)
Promoting Efficiency , accountability and making
administration responsive through various measures
Effective implementation of Right to Information Act.
Ensuring equitable growth and inclusive development.
Crisis management
Public Order.
e-governance.
S - Simple.
M - Moral
A - Accountable
R - Responsible.
T - Transparent.
National e-Governance Plan (NeGP),
(31 Mission Mode Projects (MMPs))
Number of e-transactions per 1000 people. (Andhra, Himachal- Field
Situation)
Changing Paradigms
Good Governance
Minimum government maximum governance.