Management & Public Administration: Evolution of thought By - - PowerPoint PPT Presentation

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

• f 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

• f 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

• f 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

• fficials 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

• f 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,

• f duty and interest, and of responsibility.

 Principles of division of labour, of coordination,

• f 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
• f 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

• rganization

Sociological and psychological aspects

• f 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

• rganizational

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

Wh Why Did id t the e Thin ings gs Change ge..?

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

• f 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.