MANAGERIALISM PPA 400 PPA 400 Lecture by Daphne H. Washington

WHAT IS MANAGERIALISM  Emerged within the Reinventing Gov’t movement  Entrepreneurial management  Using creativity to transform organizations  Policy revolutionaries  Forcefully argue for creative solutions

REENGINEERING  Use of behavioral and technological sciences  More sophisticated and radical than simple reorganization  Focuses on cost, quality, service and speed

REENGINEERING  Usually Includes the Following Steps:  Process Mapping  Customer Assessments  Process Visioning

REENGINEERING  Is a Radical Change Strategy  Means Starting Over  Requires looking at old processes with new eyes  Must challenge old assumptions

REENGINEERING  Barriers Include:  Bureaucratic turf issues  Employee Resistance to Change  Lack of incentives  General skepticism

REENGINEERING  Examples from the Class??

EMPOWERMENT  Gaining Power, by Giving away Power  Manure Theory  Productive Power  Only works where manager is self- confident, doesn’t feel threatened by subordinates, and can delegate effectively

EMPOWERMENT  Self Directed Work Teams  Highly trained  6 – 18 people in group  Fully responsible for well-defined segment of work

SELF DIRECTED TEAMS  Results in Fewer Job Categories Needs Authority to go with responsibility Needs appropriate Reward system Frees upper management to Coach & Plan

ENTRPRENEURIALISM  Managers need to be transformational leaders  Entrepreneurial vision needed at every level in organization  Citizens desire government to operate like business  But can It? Shouldn’t It have Constraints?

CONSTRAINTS  Gov’t Operations aren’t inefficient solely because Stupid People work there.  Inefficiency is due to :  Competing interests  Accountability  Due Process

PERFORMANCE MANAGEMENT Primary responsibility of org’s leader Is the Systematic Integration of all aspects of the enterprise  View is toward performance outcomes

COMPONENTS OF  Specifying clear and Measurable Goals  Systematic use of performance indicators  Use of Performance Appraisals  Use of Performance Incentives  Linking people & $ resources to budget cycle  Regular review at end of each planning cycle

THE POLITICS OF Can originate with an elected official Can be coincidental to someone’s term in office Can be the result of public demand or expectation

MANAGEMENT CONTROL  To respond to the need to report to external groups  To allow administrators to find out what’s going on inside an organization

CONTRACTING FOR PERFORMANCE  Formal, Informal or Psychological  Between Supervisors & Subordinates  Between Organizations  Between organization and private sector  Between organization and clients  Not the same as Employment Contract

EMPLOYMENT CONTRACT  Defines Role  Responsibilities (Do’s and Don’ts)  Terms and Conditions of Employment  (e.g. reasons for discipline and termination)

PERFORMANCE CONTRACT  Contains specific goals  Contains rewards and sanctions if key targets are (or not) achieved  Rewards often financial  Applies usually to executive level  Can apply in other areas where output improvement can be measured  Model links individual to organizational performance

PURCHASER - PROVIDER  One government agency enters in a contract with another who will deliver the services.  Contract specifies outcomes desired or performance efficiency criteria  May contain penalties  Should contain incentives

PRODUCTIVITY MEASUREMENT  In public sector;  Measured by relationship between the Quantity and Quality of outcomes..  Minus the Quantity of Resources used to produce the goods or service

BARRIERS  Rigid rules  Inflexible systems preventing or thwarting hiring, promoting or termination.  Lack of ability to reward and punish  Lack of ability to easily get additional funds if needed  Inability to reap benefit from savings or efficiencies

T Q M  Brainchild of Edwards Deming  Uses statistical quality control methods  Key is management creating a culture receptive to the Quality concept  Difficult to sustain  Argued that annual performance measurements focused on defects

Customer Centered  New attitude of government  Correctly views citizen as customer  8 Principles governing customer service  Survey often, Post Standards and Results, Benchmark Performance, Provide Choices, Make information easily available, Pleasant surroundings, Provide Redress for poor service