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Foundations of Modern Management and New Public Management

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Downsizing. Speed. Transparency. Efficient Service delivery to people ... b) Contracting Out' c) Downsizing bureaucracy. e)Service to Citizens ... – PowerPoint PPT presentation

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Title: Foundations of Modern Management and New Public Management


1
Foundations of Modern Management and New Public
Management
  • Amita Singh
  • Centre for the Study of Law and Governance
  • JNU

2
Key Management Principle
  • "Profitability is the Key to Value. If You've Got
    it, Flaunt It. If You Don't Have It, Get It
    (business strategy). If You Can't Get It, Get Out
    (capital strategy)."
  • --- Bill Fruhan (Financial Strategy Studies in
    the Creation, Transfer and Destruction of
    Shareholder Value)

3
Role of Management   
  • Investing Decisions (Capital Strategy) CEO,
    Entrepreneurship, RD, Shareholder Value, Venture
    Capital
  • Financing Decisions (Accounting), CFO, Finance
  • Operating Decisions (Business Strategy)
    Competitive Intelligence, Control-Corporate,
    Culture-Corporate, Customers, Distribution, 

4
Management History
  • Competence is not innate but a result of
    training..Impact of training on productivity
  • 4 booksPiece Rate System,Shop floor Management,
    Art of Cutting Metals, Principles of Scientific
    Management.


Frederick W. Taylor
1856-1915
5
Pillars of Modern Management
  • Standard Output in relation to time
  • scientific selection of workers
  • managers should be inspirational forces
  • managers-workers are interdependent.

6
Evolution of Modern Management
  • Management is the result of the technological
    advancement that followed the industrial
    revolution. Within one hundred and fifty years
    from 1750 to 1900 capitalism and technology
    conquered the globe and created a world
    civilization
  • Peter Drucker 1993.

7
TAYLOR BABBAGE
  • Time and Motion Studies
  • Differential Piece Rate System
  • ShopFloor management
  • Functional Foremanship
  • Entrepreneurial management through a
  • Rigid investigation of management
  •   Cost determination
  •   Wage incentives

8
  • HUGO MUNSTERBERG Psychology Industrial
    Efficiency
  • HENRY L.GANT
  • Task and Bonus System

9
HUMAN RELATIONS MOVEMENT
  • ELTON MAYO
  • ROETHLISBERGER
  • DICKENSON
  • Hawthorne Western Electric Company,USA.
  • 1926-1933
  •  Human Relations
  •   Motivation
  • Behavioural Industrial Psychology

10
MODERN ORGANIZATIONAL MANAGEMENT
  •   Multidimensional reach Chester Bernard
    ,Functions of the Executive
  •     Multivariate systems Rise of modern
    Governance
  •     Information Processing Ability Allen Schick
    Cybernetic State
  •     Learning Organization Donald F.Kettl
    1994,Gifford Eizabeth Pinchots 1993 Intelligent
    organization
  •     Situational systems Cleland and Kings
    project based,,Tapscott and Caston Virtual.,
    Network Rhodes ,Snow and Miles.
  •     Cross Cultural
  •     Socially responsible management

11
NEW PUBLIC MANAGEMENT
  •           Cost cut
  •           Downsizing
  •           Speed
  •           Transparency
  •           Efficient Service delivery to people
  •           Increasing participation
  •           Economy

12
Ideological Roots of NPM
  • Thatcherism 1979
  • Reaganism 1980
  • Brian Mulroney of Canada
  • Public Choice Agency Theory Transaction-Cost
    Economics.

13
BASICS OF NPM
  • a) Decentralization
  • b)Contracting Out c) Downsizing bureaucracy
  • e)Service to Citizens
  • f)Financial and Taxation Reforms
  • g)Law and Regulatory Reforms
  • h)Information Technology Reforms
  • i) Opening Up

14
SUSTAINABILITY INDICATORS
  • Micromanagement Motivation Measurement.
  • Resonance, Rigor (theory) and Relevance
    (action).

15
BASIC READINGS
  • Peter Savages Dismantling the Administrative
    State
  • Osborne and Gaebler 1992 Reinventing
    Entrepreneurial State
  • Hood 1991 articles with Jackson
  • Clinton-Gore Report From Red Tape to Results
    Creating a government that Works better and

16
DRAWBACKS
  • predictability of rule makingissues of
    human rights, labour laws and social justice.
  • political stability entitlement
    obligation and corporatism
  • freedom from corruption Loss of democratic
    accountability and ministerial accountability

17
DEPENDENCE ON E-GOVERNANCE
  •  Kenyas foreign exchange fraud
  •  Computerization led to breakdown of human
    coordination at Ghana Volta River Authority
    because extra income was lost
  • South East Asian Countries and also African
    countries faced work stalling at Electricity
    Companies due to computerization of meters.

18
MANAGEMENT A HOLISTIC PARADIGM
  • Lynton Caldwell, An ultimate task
    ---maintaining the viability of spaceship earth
    and giving its evolution a direction beneficial
    to humanity

19
THANKING YOU
  • 28.1.2008
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