Third Edition

1. Introducing Public Administration Third Edition Chapter 5 . . . . . . . . . . . . . . . . . . . . . . The Evolution of Management and Organization Theory Jay Shaftitz & E. W. Russell Dr. Wasim Al-Habil.

2. Chapter Five The Evolution of Management and Organization Theory

3. Key Topics • The Origins of Public Administration • The Evolution of Management Principles • What is Organization Theory? • The Origins of Scientific Management • The Period of Orthodoxy • Bureaucracy • Neoclassical Theory & Systems Theory

4. “Civilization and administration have always gone hand in hand.”

5. The Origins of Public Administration • Management: A term that can refer to both: • The people responsible for running an organization • The running process itself - the utilization of numerous resources to accomplish an organizational goal. • Hierarchy: Any ordering of persons, things, or ideas by rank or level. Administrative structures are typically hierarchical in that each level has authority over levels below and must take orders from level above.

6. The Origins of Public Administration • The Military Heritage of Public Administration: Government administrators are still considered servants in this sense; they are public servants because they, too, have accepted obligations, which means they are not completely free. • Comparing Military and Civilian Principles: • Objective: Direct Every military operation toward a clearly defined, decisive, and attainable objective. • Offensive: Seize, retain, and exploit the initiative. • Mass: Concentrate combat power at the decisive place and time. • Economy of force: Allocate minimum essential combat power to secondary efforts. • Maneuver: Place the enemy in position of disadvantage through the flexible application of combat power. • Unity of command Ensure unity of effort under one responsible commander. • Security Never permit the enemy to acquire an advantage. • Surprise: Strike the enemy at a time/place for which he is unprepared. • Simplicity: Prepare clear, uncomplicated plans, concise orders to ensure thorough understanding

7. The Origins of Public Administration • Comparing Military and Civilian Principles: • Policy should defined. • Work should be subdivided. • Tasks and responsibilities should be specifically assigned and understood. • Appropriate methods and procedures should be developed and utilized by those responsible for policy achievement. • Appropriate resources (men, money, materials). • Authority commensurate with responsibility should be delegated and located. • Adequate structural relationships. • Effective and qualified leadership. • Unity of command. • Continuous accountability for utilization of resources. • Effective coordination. • Continuous reconsideration of all matters

8. What is Organization Theory? • An “organization” is a group of people who jointly work to achieve at least one common goal. • A “theory” is a proposition or set of propositions that seeks to explain or predict something. • The organization theory shows how groups and individuals behave in differing organization arrangements. • Organization theory was always there in the authoritarian model offered by the military.

9. Classical Organization Theory The first school of organization theory rooted in the industrial revolution of the 1700s. • Characteristics of Classical Organization Theory: • Organizations exist to accomplish production-related and economic goals. • There is one best way to organize for production • Production is maximized through specialization and division of labor. • People and organizations act in accordance with rational economic principles.

10. The Origins of Scientific Management • Frederick Taylor, the “father” of scientific management, is the pioneer who developed time and motion studies and provided the impetus around which classical organization theory would evolve. • Through scientific management, Taylor believed that there is ‘one best way’ to accomplish any given task (Shafritz and Hyde, 1997, p.2). He argues that the “one best way” provides the “fastest, most efficient, and least fatiguing production method” (Ibid.). • In 1912, the U. S. House of Representatives investigated Taylor’s systematic use of management techniques. Some of the management techniques or as Taylor called them “duties,” included: • Replacing traditional rule of thumb methods of work accomplishment with systematic, more scientific methods of measuring and managing individual work elements; • Studying scientifically the selection and sequential development of workers to ensure optimal placement of workers into work roles; • Obtaining the cooperation of workers to ensure full application of scientific principles; and • Establishing logical divisions within work roles and responsibilities between workers and management. (From the book of the Principles of Scientific Management, Ibid., 3)

11. Fayol’s six principles • Fayol’s major work, General and Industrial Management, which published in France in 1916 and translated to English in 1925, also came with general principles that can improve the performance of management in every type of organization. • Fayol’s six principles are: • Technical (production of goods) • Commercial (buying, selling, and exchange activities) • Financial (raising and using capital) • Security (protection of property and people) • Accounting • Managerial (coordination, control, organization, planning, and command of people) • Shafritz, Ott, and Jang (2005) states that “Fayol believed that his concept of management was universally applicable to every type of organization” (p.31). • This generic model of Fayol’s general principles had an impact on public administration because it was theorized to work in both public and private organizations.

12. The Period Of Orthodoxy • It covers the development of the public administration between the WWI and WWII. • The tenets of orthodoxy ideology held that the work of government could be neatly divided into decision-making and execution (politics-administration dichotomy of Woodrow Wilson). • This dichotomy, which played an important role in the historical development of PA, would hardly have been possible of scientific management had not evolved when it did. • According to Lynn (1996), orthodoxy “was finished off in public administration after World War II in a series of articles and books” (p.31) including the works of Simon, Dahl, Appleby, Waldo, Long, and Marx..

13. Orthodox and Paul Appleby • Paul Appleby was the Dean of Maxwell School at Syracuse University. • Appleby (1945) contends similarly that, “ Government is different because it must take account of all the desires, needs, actions, thoughts and sentiments of 140,000,000 people.” (Shafritz et al., 2004: p.135). • Paul Appleby, by some accounts wrote the definitive endnotes on the politics­-administration dichotomy. Essentially, Appleby in Big Democracy (1945) compared government to business and determined government was different and that politics is what comprises that difference. Appleby states that: “Other institutions admittedly are not free from politics, but government is politics. Government administration differs from all other administrative work to a degree not even faintly realized outside, by virtue of its public nature, the way in which it is subject to public scrutiny and public outcry. (Paul Appleby in “Big Government” reprinted in Classics of Public Administration, 125)

14. Luther Gulick’s POSDCORB • Gulick’s book “The Papers on the Science of Administration” (1937). • Gulick argues that for governmental organizations to achieve technical efficiency there is need to arrange or structure units and departments according to their level of homogeneity, as failure to do so, as he argues has often been the case, can only lead to unsatisfactory results. • Of significant importance is Gulick’s prescription of the functions of the chief executive, which he derived from Henry Fayol’s general principles of management. • He coined the famous POSDCORB from planning, organizing, staffing, directing, coordinating, reporting, and budgeting, and these were to be equally applicable to all forms of organizations irrespective of type, context and size, presumably exhibiting some general science based qualities.

15. Federalism & Finance • Fiscal federalism is the financial relations between and among the units of government in a federal system. • The assets and financial resources are divided and shared between and among the three levels of government. For example, income tax goes for the federal government and house and property tax goes for the state government. • The theory of fiscal federalism, or multiunit government finance, is one part of the branch applied economic known as public finance. • Medicaid is a federally aided, state-operated, and state-administered program that provides medical benefits for a certain low-income people in needed of health and medical care. • Grant: It is an intergovernmental transfer of funds (or other assets). Since long along time, state and local governments have become increasingly dependent upon federal grants for an almost infinite variety of programs.

16. Bureaucracy • The word bureaucracy is derived from two words; “bureau” and “Kratos.” While the word “bureau” refers to the office the Greek suffix “kratia or kratos” means power or rule. • We use the word “bureaucracy” to refer to the power of the office (Hummel, 1998, 307). • “Bureaucracy” is rule conducted from a desk or office, i.e. by the preparation and dispatch of written documents and electronic ones. • Bureaucracy is borrowed by the field of public administration (PA) from the field of sociology. • It was borrowed by PA in much a similar way that practices of business were borrowed from the field of business administration and economics.

17. Bureaucracy & Max Weber • Weber (1946) presents bureaucracy as both a scientific and generic model that can work in both the public and private sectors (Rainey, 1996). • Max Weber’s work about bureaucracy, translated into English in 1946, was one of the major contributions that has influenced the literature of public administration. • Weber’s bureaucracy consists of the traditional way of thinking in public administration that relied on the same “ingredients” to reform public administration based on the science of administration (Thompson, 2005).

18. Bureaucracy & Max Weber • Weber’s bureaucracy has the following characteristics: • The bureaucrats must be free agents. • The bureaucrats are arranged in a clearly defined hierarchy of offices. • The functions of each office are clearly specified in writing. • The bureaucrats accept and maintain their appointment freely. • The appointments to office are based on the technical qualifications. • The bureaucrats receive money salaries and pension rights. • The office must be the bureaucrat’s sole. • A career system is essential. • The bureaucrats do not have property rights. • The bureaucrats’ conduct must be subject to systematic control.

19. Neoclassical Organization Theory • There is no precise definition for “neoclassical” in the content of organization theory. • This school was important because it initiated the theoretical movement away from he over-simplistic mechanistic views of classical school. • The neoclassicalists raised issues and initiated theories that became central to the foundations of the most schools or approaches to organization theory that followed. • The majority of the writers and authors of the neoclassical school came after the end of the WWII. • They sought to “save” classical theory by introducing modifications based upon research findings in the behavioral sciences.

20. Neoclassical Organization Theory & Herbert Simon • Herbert Simon looked back at the ‘principles’ and argued that they lacked all scientific rigor and they could be mere proverbs. • He deconstructed Gulick’s POSDCORB and dethroned them as confusing facts with values and lacking all scientific rigors (Stillman, 2000). • In his book ‘Administrative Behavior: A Study of Decision Making Process in Administrative Organization’ (1947), he draws on “logical positivist continental analytic philosophy” (Stillmann, 2000, pg. 22) to explain administrative behavior.

21. Neoclassical Organization Theory & Herbert Simon • Herbert Simon looked back at the ‘principles’ and argued that they lacked all scientific rigor and they could be mere proverbs. • He deconstructed Gulick’s POSDCORB and dethroned them as confusing facts with values and lacking all scientific rigors (Stillman, 2000). The POSDCORB functions of the public administration orthodoxy were inconsistent, conflicting, and inapplicable in public administration (Shafritz et al., 2004). • In his book ‘Administrative Behavior: A Study of Decision Making Process in Administrative Organization’ (1947), he draws on “logical positivist continental analytic philosophy” (Stillmann, 2000, pg. 22) to explain administrative behavior.

22. Neoclassical Organization Theory & Herbert Simon • He argued that a true scientific method should be used in the study of administration, but what was used by the orthodoxy lacked the empirical basis to do so. • Simon (1946) believed that for “almost every principle [of orthodoxy] one can find an equally plausible and acceptable contradictory principle.” • Simon proposed the fact-value dichotomy because it provides a stronger basis for a science of administration. Through the behavioral approach, Simon narrowed the scope of rationalism by separating facts from values and introducing his concept of bounded rationality. • Bounded rationality refers to the bounds that people put on their decisions. Because truly rational research on any problem can never be complete, human make decisions on satisfactory as opposed to optimal information. • Simon rejected the politics-administration dichotomy because of its failure to “define a value-free domain required for the development of a science of administration, since administrators are involved in policy functions and thus values consideration” (p.186).

23. Modern Structural Organization Theory • The basic assumptions of the modern structural organization theory: • Organizational are rational institutions whose primary purpose is to accomplish established objectives. • There is a “best” structure for any organization or at least a appropriate structure in light of its given objectives, the environmental conditions. • Specialization and the division of labor. • Most problems in an organization result from structural flaws.

24. Mechanistic and Organic System • This system came up as a result of the fast technological advancements. • British researchers including Tom Burns and G. M. Stalker, developed the theory of “mechanistic” and organic systems” of organization while examining rapid technological change in the British and Scottish electronic industry. • Stable conditions of organizations suggest use of mechanistic form where traditional pattern of hierarchy, reliance on formal rules and regulations, vertical communications, and structured decision-making is possible. • Dynamic conditions of organizations require the use of organic form where there is less rigidity, more participation, and more reliance on workers to define and redefine their positions and relationships.

25. Systems Theory • Since WWII, the social sciences have increasingly used systems analysis to examine their assertions about human behavior. • Systems theory views an organization as a complex set of dynamically intertwined and interconnected elements, including its inputs, process, outputs, feedback loops, and the environment in which it operates and with which it continuously interacts.

26. Comparison Between Systems & Classical Theories • Classical theory tends to be one-dimensional and somewhat simplistic while system theories tend to be multidimensional and complex in their assumptions about organizational cause-and-effect relationships. • The classical school viewed organizations as static (unchanging structures,; systems theorists see organizations as continually changing process of interactions among organizational and environmental elements.

27. Cybernetics System • Cybernetics is a Greek word meaning “steersman.” • Norbert Wiener used this word to mean multidisciplinary study of the structures and functions of control and information processing system in animals and machines. • The basic concept behind Cybernetics is self-regulation-biological, social, or technological systems that can identify problems, do something about them, and then receive feedback to adjust themselves automatically.

28. Review