Kay 235: Introduction to Management Lecture 1 Subject: The development of public administration, and its relationship with management Reading: Greene, Chapter 2

Notes The syllabus is available at: Today’s lecture http://yunus.hacettepe.edu.tr/~myildiz/courses Today’s lecture

Introduction Beginnings of Public Administration (PA) PA is: Woodrow Wilson `Study of Administration` article (1887) Politics & Administration Dichotomy/Separation PA is similar to Business Administration (BA) PA is: Managing the affairs of the state Implement a variety of policies What do governments do In general: Education, Health, Justice, Internal & External Security More specifically: Establishing speed limits and enforcing them

How to define PA? It is a social science Studies social phenomena and human behavior It is a multidisciplinary field Includes political science, management & law Some says PA has an `identity crisis` It is both an academic discipline, and a practice/profession. The two are closely linked.

The issues that PA deals with What does government do? How to understand complexities in public organizations? What is the environment in which public organizations function? How they function? What they do? Why they do it?

SOME BACKGROUND Thomas Hobbes 17th C. Adam Smith, 18th C. Leviathan Adam Smith, 18th C. The Wealth of Nations Invisible hand Alexis De Tocqueville, 19th C. Democracy in America Power of associations

Degree of Government Involvement in Economy Limited Involvement Adam Smith, Wealth of Nations Invisible hand The aggregate of people’s self interests make up of the public interest Larger Involvement Hobbes Reasons Externalities Monopolies Imperfect Information Examples: Roosevelt, Wilson, FDR Some Actions Break up monopolies

Primary Objective of PA Multiple criteria/objectives Effectiveness Achieving stated objectives Efficiency Achieving objectives with minimum resources (time, money, personnel…) Responsiveness To the needs of the society Social Equity All these things and more… Objective: Better society through better government

PA as a practice/profession PA programs train future public administrators Training includes courses in: Management Organizational theory and behavior Personnel administration Budgeting & financial management Administrative History and Law PA offers new courses as it responds to changes E-government Ethics

History of PA PA and bureaucracy is many centuries old, but the PA discipline is new: US PA begins with Wilson`s 1887 article, `The Study of Administration` PA is born out of political science Still, there is a productive tension between the two.

Development Stages of PA 1. CLASSICAL PERIOD (1900-1940) Politics & administration dichotomy/separation A generic view of administration No real difference between PA & BA Universal principles of scientific management BA techniques may be applied to PA

Stages of PA-2 1. THE CLASSICAL PERIOD (1900-1940) A mechanistic view of the people and the world It is thought that money is the primary motivation A strong reaction against corruption in government Cleaning up government from partisan politics and favoritism Bringing competence to government by applying scientific methods Primary Goal Establishing competent and neutral professional administration

Politics & Administration Dichotomy Formulating government policies by democratic processes such as election and the parliamentary processes Administration Execution of these policies Powers of government Legislature: Parliaments (Politics) Executive: Central and local government (Administration) Judiciary: Courts (Both formulate and execute policies (Both politics and administration)

Politics & Administration Dichotomy Woodrow Wilson believed that Administration executes the law There is little difference between PA & BA Government could and should be more businesslike in its operations Mixing politics & administration is both ineffective & inefficient Government employees should be selected for their merit They should be free from political influences and pressures

Scientific Management Founder: Frederick W. Taylor Universal principles of management There is a `one best way` of implementing policies. PA was focusing on upper management Taylor focused on lower management Assembly line workers How to make production/workers more efficient

Scientific Management Taylor believed that There was always a `one best way` of doing things Time and motion studies for workers Money was thought to be the main motivator A very mechanistic view of the world

Hawthorne Studies Conducted by Elton Mayo Beginning in 1927 Examined the relationship between workers, work environments & productivity His research started the `Human Relations Movement` Importance of informal groups Beginning of the `behavioralist movement`

Other Contributors Max Weber Mary Parker Follett Defined the bureaucratic form of organization Also known for authority types Traditional, charismatic and legal-rational Mary Parker Follett Offered a management philosophy based on Individual motivation and group problem solving Participatory management

Other Contributors Gulick and Urwick Papers on the Science of Administration (1937) Famous acronym: POSDCORB Planning Organizing Staffing Directing Coordinating Reporting Budgeting

End of the Classical Period The rise of the administrative state in 1930s Emerged in response to the problems of The Great Depression of late 1920s And the World War II

Stages of PA: Stage 2 2. BEHAVIORIST PERIOD (1940-1970) Affected by both political science and management Disputed the scientific principles Advocated the study of behavior Application of economics on bureaucracy Anthony Downs: Forerunner of the public choice theory

Other Contributors Chester Barnard Herbert Simon The Functions of the Executive (1938) Organization as cooperative systems Managers balance the needs of the individual & the organization with effective communication Herbert Simon Administrative Behavior Classic management principles are contradictory Simon argued that there are limits for human organizations to handle and process information Rational decision-making within limits Bounded rationality, satisficing People give `good enough` decisions, rather than pursuing the best course of action

Behavioralism: Multidisciplinary Behavioralists studied individual behaviors rather than institutions E.g. participatory decision-making Multidisciplinary character: Systems theory, taken from biology Public Choice Theory, from economics Self-interested bureaucrats, instead of pursuing the public interest Comparative PA: In other countries

PA as management Similar curricula Organizational theory Human resource management Information systems Budgeting Oriented towards a generic management theory

PA & BA: Similar or Different? The focus is on similarities & differences Government, private and non-profit comparisons (Greene, page 58) Graham Allison Article (Next week) Just a few arguments (More details next week) Short term focus in PA Budget process and political pressures Limited term leadership Relatively quick turnover of appointed PA leaders

Some Contributions to PA by Management Scholars Theory X and Y Douglas McGregor Process of Motivation Victor Vroom Managerial Grid Robert Blake and Jane Mouton

Stages of PA: Stage 3 3. THE NEW PA (1968-1980s) A radical change in the PA discipline Very normative and activist period Rejected the rationality of the behaviorist school Foci Organizational humanism Participatory bureaucracy Representative bureaucracy Bureaucracy should address social inequalities Concerned more with equity than efficiency

Stages of PA: Stage 4 4. THE REFOUNDING PERIOD (1980--) Challenges to mainstream PA (New Public Management) Main challenges Public choice theory Bureaucrats are motivated by self-interest Privatization Reinventing government movement

The Refounding Period Oil crises and fiscal stress of late 1970s and early 1980s resulted in Privatization One again, efficiency became very important Still, efficiency should be balanced with other competing goals Such as accountability and equity.