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The Rise and Fall of Bureaucracy: WHY A NEW PUBLIC MANAGEMENT; WHY NOW? willamette/~fthompso/MgmtCon/Fordism_%26_Postfor PowerPoint Presentation
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The Rise and Fall of Bureaucracy: WHY A NEW PUBLIC MANAGEMENT; WHY NOW? willamette/~fthompso/MgmtCon/Fordism_%26_Postfor - PowerPoint PPT Presentation


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The Rise and Fall of Bureaucracy: WHY A NEW PUBLIC MANAGEMENT; WHY NOW? http://www.willamette.edu/~fthompso/MgmtCon/Fordism_%26_Postfordism.html. Transaction Cost Analysis. Markets and organizations are alternative venues for exchange

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The Rise and Fall of Bureaucracy:WHY A NEW PUBLIC MANAGEMENT; WHY NOW?http://www.willamette.edu/~fthompso/MgmtCon/Fordism_%26_Postfordism.html

transaction cost analysis
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
Economic Revolutions of the 20th Century
  • Bureaucratic revolution -- turn of the century
  • Managerialism -- mid-century
  • Information revolution -- NOW
bureaucratic revolution
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
BASIC ELEMENTS OF BUREAUCRATIC ORGANIZATIONS
  • Centralized materials requirements and logistical planning,
  • Coordination by rules and standard operating procedures
  • The merit principle
  • Functional design
  • Decomposition of tasks
  • Sequential processing
progressive movement in us
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
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
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

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