The Evolution of Management and Organization Theory

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 armys
  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 organizations doctrine remains in place
  until technological and situational changes make
  the organizations 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-Hudsons 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-Hudsons 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-Hudsons 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-Hudsons 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 Fayols 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).

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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 Applebys 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 organizations.

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
• Maslows hierarchy of needs.
• New component technologies (the five
  disciplines).
• Personal mastery.
• Mental models.
• Building shared vision.
• Team learning.
• Systems thinking.