The Rise and Fall of Bureaucracy:
1 / 12

- PowerPoint PPT Presentation

  • Uploaded on

The Rise and Fall of Bureaucracy: WHY A NEW PUBLIC MANAGEMENT; WHY NOW? Transaction Cost Analysis. Markets and organizations are alternative venues for exchange

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about '' - betty_james

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Slide1 l.jpg

The Rise and Fall of Bureaucracy:WHY A NEW PUBLIC MANAGEMENT; WHY NOW?

Transaction cost analysis l.jpg
Transaction Cost Analysis

  • Markets and organizations are alternative venues for exchange

  • That the choice of venue boils down to a question of information costs

    • search costs

    • negotiation costs

    • monitoring and enforcement costs

  • Reducing information costs can radically affect organizational designs and market structures

Economic revolutions of the 20th century l.jpg
Economic Revolutions of the 20th Century

  • Bureaucratic revolution -- turn of the century

  • Managerialism -- mid-century

  • Information revolution -- NOW

Bureaucratic revolution l.jpg
Bureaucratic Revolution

  • The efficacy of government provision and control increased relative to the market, decreasing the payoffs to free markets, secure property rights, and minimal government intervention;

  • The efficacy of hierarchically coordinated systems increased relative to the market and other self-organizing systems, increasing the payoff to hierarchy and vertical integration;

  • The efficacy of centralized allocation and ex-ante control increased relative to decentralized allocation of resources and ex-post control, increasing the payoff to scale; and

  • The efficacy of functional structures increased relative to process-oriented structures, increasing the payoff to scope.

Basic elements of bureaucratic organizations l.jpg

  • Centralized materials requirements and logistical planning,

  • Coordination by rules and standard operating procedures

  • The merit principle

  • Functional design

  • Decomposition of tasks

  • Sequential processing

Figure 1 l.jpg
Figure 1


Figure 2 l.jpg
Figure 2


Progressive movement in us l.jpg
Progressive Movement in US

  • War Department under Root

  • USDA Forest Service

  • Municipal Reform

  • Contracting out of services replaced by in-house production

    For example: NYC Dept. of Sanitation

Elements bureaucracy hierarchy managerialism l.jpg
Elements: Bureaucracy/hierarchy/managerialism

  • Professionalization, expertise,

  • Regimentation/task specialization

  • Functional specialization

  • Divisionalization

  • Differentiation of staff from line functions--planning and control

  • Specialization of clerical functions--planning and control

  • Accrual accounting (annualization)

  • Cost accounting

  • Donaldson Brown’s system of corporate control

  • Internal allocation of capitol

Impact of the information revolution on business and government l.jpg
Impact of the Information Revolution on Business and Government

The market restored?

Versus hierarchy -- virtual organizations

Versus government -- deregulation & privatization

Organizations transformed

Radical downsizing, decentralization, and de-specialization

Time-based structures, process focused designs, Networked organizational structures

Slide11 l.jpg

EVENTS THAT TRIGGER INSTITUTIONAL INNOVATION GovernmentDemographic changesNew knowledgeGap between expected and actual events or outcomes— i.e., unanticipated or surprising success or failureChronic dissatisfaction with actual outcomesMood or fashion changes

Exhibit a l.jpg
Exhibit A Government