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The Evolution of Management and Organization Theory

The Evolution of Management and Organization Theory. Lecture 5 – Administrative Processes in Government. The Origins of Public Management. The key to the city – harks back to an era when the only way into a city was through a locked gate.

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The Evolution of Management and Organization Theory

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  1. The Evolution of Management and Organization Theory Lecture 5 – Administrative Processes in Government

  2. The Origins of Public Management • The key to the city – harks back to an era when the only way into a city was through a locked gate. • The profession of management began and developed as the profession of arms. • War is not possible without an effective system of public administration. • Military officers were the first public administrators.

  3. The Origins of Public Management • The profession of management began and developed as the profession of arms. • First armies were mobs with managers. • Gradually developed hierarchy, line and staff personnel, logistics and communications. • The continuing influence of ancient Rome. • The transfer of managerial control from those of wealth and power to those with professional expertise first happened in the Roman army. • The power of technical expertise would not be seen again until Napoleon.

  4. The Origins of Public Management • The continuing influence of ancient Rome. • Origins of merit system. • Origins of civil service (to regulate pay). • The core features of modern public administration were first found in the Roman Empire. • Depersonalization, separation of public and private funds, hierarchy, functional specialization. • The virtue of military service (as training in administration).

  5. The Origins of Public Management • The military heritage of public administration. • The history of the world can be viewed as the rise and fall of public administrative institutions. • Rome was effective because the army’s organizational doctrine made it superior to its competitors and because it was backed up by a sophisticated administrative system of supply backed by taxes.

  6. The Origins of Public Management • The military heritage of public administration. • The Roman empire only fell when its legions degenerated into corps of mercenaries and when its supply and tax bases were corrupted. • Both victorious soldiers and successful managers tend to be inordinately admired and rewarded as risk takers.

  7. The Significance of Administrative Doctrine • All organizations are guided by a doctrine of management that reflects basic values. • The first administrative doctrine (military): Do this or die! • Modern example (Henry Ford): All that we ask of men is that they do the work which is set before them. (Implication: or be fired! Better than being shot.)

  8. The Significance of Administrative Doctrine • More sophisticated doctrines are needed when meaningful and fulfilling work for its employees is the central goal of an organization. • These doctrines are generally more conducive to long-term organizational effectiveness and productivity.

  9. The Significance of Administrative Doctrine • Doctrine and attitudes affect morale and performance and more importantly organizational culture. • Organizational culture affects the overall competence or incompetence of the organization.

  10. The Significance of Administrative Doctrine • Each organization’s doctrine remains in place until technological and situational changes make the organization’s adaptations less useful and render the organization incompetent. • Every major political revolution can be said to be caused by the same thing – poor public administration.

  11. The Significance of Administrative Doctrine • The evolution of management principles. • Authoritarian or traditional management is the classical model of military governance applied to civilian purposes. • Managers under an authoritarian doctrine value order, precision, consistency, and obedience. • This authoritarian model has been gradually been replaced with less centralized, more participatory models. • Why? Because they work better with sophisticated workers.

  12. The Significance of Administrative Doctrine • Comparing military and civilian principles. • No royal road to administrative wisdom. No hard and fast principles. But: • Nine principles of war (U.S. Army). • Objective: Direct every, military operation toward a clearly defined, decisive and attainable objective. • Offensive: Seize, retain, and exploit the intiative. • Mass: Concentrate combat power at the decisive place and time.

  13. The Significance of Administrative Doctrine • Comparing military and civilian principles (contd.) • Nine principles of war (contd.) • Economy of force: Allocate minimum essential combat power to secondary efforts. • Maneuver: Place the enemy in a position of disadvantage through the flexible application of combat power. • Unity of command: For every objective, insure unity of effort under one responsible commander.

  14. The Significance of Administrative Doctrine • Comparing military and civilian principles (contd.) • Nine principles of war (contd.) • Security: Never permit the enemy to acquire an advantage. • Surprise: Strike the enemy at a time and/ or place and in a manner for which he is unprepared. • Simplicity: Prepare clear, uncomplicated plans and clear, concise orders to ensure thorough undestanding.

  15. The Significance of Administrative Doctrine • Comparing military and civilian principles (contd.) • Catheryn Seckler-Hudson’s 12 principles of management. • Policy should be defined and imparted to those who are responsible for its achievement. • Work should be subdivided, systematically planned, and programmed. • Tasks and responsibilities should be specifically assigned and understood.

  16. The Significance of Administrative Doctrine • Comparing military and civilian principles (contd.) • Catheryn Seckler-Hudson’s 12 principles of management. • Appropriate methods and procedures should be developed and utilized by those responsible for policy achievement. • Appropriate resources in terms of availability and priority should be equitably allocated. • Authority commensurate with responsibility should be delegated and located as close as possible to the point where operations occur and decisions need to be made.

  17. The Significance of Administrative Doctrine • Comparing military and civilian principles (contd.) • Catheryn Seckler-Hudson’s 12 principles of management. • Adequate structural relationships through which to operate should be established. • Effective and qualified leadership should head each organization and each subdivision of the organization. • Unity of command and purpose should permeate the organization.

  18. The Significance of Administrative Doctrine • Comparing military and civilian principles (contd.) • Catheryn Seckler-Hudson’s 12 principles of management. • Continuous accountability for utilization of resources and for the production of results should be required. • Effective coordination of all individual and group efforts within the organization should be achieved. • Continuous reconsideration of all matters pertaining to the organization should be a part of regular operations.

  19. The Significance of Administrative Doctrine • Comparing military and civilian principles (contd.) • The military list is more policy oriented, more leadership directed, than the civilian list. • The military approach underlies the reinventing government movement.

  20. What Is Organization Theory? • A proposition or set of propositions that attempts to explain or predict how groups and individuals behave in differing organizational arrangements.

  21. What Is Organization Theory? • Classic organizational theory. • Organizations exist to accomplish production-related and economic goals. • There is one best way to organize for production, and that way can be found through systematic, scientific inquiry. • Production is maximized through specialization and division of labor. • People and organizations act in accordance with rational economic principles.

  22. What Is Organization Theory? • Theory derived from organizational structures and procedures during the industrial revolution. • Adam Smith and the pin factory. • The Wealth of Nations, 1776. • Laissez-faire. • Economic rationale for the factory system. • All formal organizations are force multipliers.

  23. The Origins of Scientific Management • The basic problem with the traditional hierarchical organization was that it was dependent upon the proper enculturation of individual supervisors at every level for its success. • Changes in the environment can make hierarchical organizations less competent.

  24. The Origins of Scientific Management • Origin of the staff concept to overcome limitations of a single mind and fleeting time. • The general staff concept has been adopted by industrial and governmental organizations.

  25. The Origins of Scientific Management • The influence of Frederick W. Taylor (1911). • Father of the scientific management movement. • Scientific management principles. • Replacing traditional, rule of thumb methods of work accomplishment with systematic, more scientific methods of measuring and managing individual work elements; • The scientific study of the selection and sequential development of workers to ensure optimal placement of works 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.

  26. The Origins of Scientific Management • Henri Fayol’s general theory of management (six principles, 1916, 1949). • Technical (production of goods) • Commercial (buying, selling, exchange). • Financial (raising and using capital). • Security (protection of property and people). • Accounting. • Managerial (coordination, control, organization, planning and command of people).

  27. The Origins of Scientific Management • Fayol (contd.). • Dominant principle was management. • Division of work. • Authority and responsibility. • Discipline. • Unity of command. • Unity of direction. • Subordination of individual interest to general interest. • Remuneration of personnel.

  28. The Origins of Scientific Management • Fayol (contd.). • Dominant principle was management (contd.). • Centralization. • Scalar chains (supervisors). • Order. • Equity. • Stability of personnel tenure. • Initiative, and. • Esprit de corps.

  29. The Period of Orthodoxy • Interwar period a period of orthodoxy in public administration. • Work of government could be divided between decision-making and execution. • Administration was a science with discoverable principles.

  30. The Period of Orthodoxy • Paul Appleby’s polemic. • Politics and administration inextricably entwined. • Luther Gulick (1937, POSDCORB). • Planning (outline and methods). • Organizing (structure). • Staffing (personnel). • Directing (decision-making). • Coordinating (task management). • Reporting (communication and record-keeping). • Budgeting (fiscal planning, accounting, and control).

  31. The Many Meanings of Bureaucracy • First, “the bureaucracy is the totality of government offices or bureaus that constitute the permanent government of the state. • Second, “the bureaucracy” refers to all of the public officials of a government, both high and low, elected and appointed. • Third, bureaucracy is often used as a general invective to refer to any inefficient organization encumbered by red tape.

  32. The Many Meanings of Bureaucracy • Fourth, bureaucracy refers to a specific set of structural arrangements (Max Weber). • Bureaucrats are free as individuals, but not as employees. • Hierarchy. • Clearly specified functions. • Freedom of hiring. • Appointment by merit.

  33. The Many Meanings of Bureaucracy • Fourth, bureaucracy refers to a specific set of structural arrangements. • Due compensation and due process. • Sole occupation. • Advancement by merit or seniority. • Non-proprietary rights in position. • Strict controls.

  34. Neoclassical Organization Theory • The neoclassical theorists gained their reputation by attacking the classical theories. • Important source of the power and politics, organizational culture, and systems theory. • Herbert Simon. • Bounded rationality and satisficing. • Programmed and unprogrammed decision-making. • Management information systems.

  35. Neoclassical Organization Theory • The impact of sociology. • Philip Selznick – Organizations are made up of individuals whose goals and aspirations may not coincide with the organization’s.

  36. Modern Structural Organization Theory • Basic assumptions • Organizations are rational institutions whose primary purpose is to accomplish established objectives through control and coordination. • There is a “best” structure for any organization in light of objectives, environment, products or services, and the technology of the production process. • Specialization and division of labor increase the quality and quantity of production. • Most problems result from structural flaws.

  37. Modern Structural Organization Theory • Mechanistic and organization systems. • Mechanistic – traditional bureaucracy, best in stable conditions. • Organic – less rigidity, more participation, and more reliance on workers, best in dynamic conditions.

  38. Systems Theory • Systems theory views an organization as a complex set of dynamically intertwined and interconnected elements, including inputs, processes, outputs, feedback loops, and the environment. Any change in one element causes changes in other elements.

  39. Systems Theory • Cybernetics – Norbert Wiener (1948).

  40. Systems Theory • The learning organization. • Built on the doctrines of participation • Maslow’s hierarchy of needs. • New component technologies (the five disciplines). • Personal mastery. • Mental models. • Building shared vision. • Team learning. • Systems thinking.

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