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Challenge of Effective Public Management


Challenge of Effective Public Management By Chandra-nuj Mahakanjana, Ph.D. GSPA, NIDA 9/11 Weakness in the way agencies were organized and managed Organization and ... – PowerPoint PPT presentation

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Title: Challenge of Effective Public Management

Challenge of Effective Public Management
  • By
  • Chandra-nuj Mahakanjana, Ph.D.

  • 9/11
  • Weakness in the way agencies were organized and
  • Organization and managerial problem ? inadequate
    communication and handling crucial info

Understanding management of public organizations
  • Skepticism about government
  • Public-private continuum
  • Body of management knowledge has paid too little
    attention to the public sector ? managing
  • Legitimate skepticism about public org VS.
    recognition of their indispensable roles in

  • Need to improve their effectiveness
  • Government context (envi) influences public
    organization and management ? constraining
  • Gov organization and managers perform better than

  • More authority responsibility to Dept. of
    homeland security
  • Go against the trend of anti gov. movement
  • Resentment of taxes and ineffective government
  • Politicians attack Bureaucracy
  • Red tape

  • Public org (in the U.S.) ? great achievement
  • Small proportion of the GDP
  • Low taxes
  • Strong anti-gov role demand for a strong and
    active government have continued

  • Both government private activities have
    strengths and weaknesses
  • Both are still very crucial for its existence
  • Challenge ? designing the mix and balance of the
    two while attaining effective management of both

  • Organization Behavior
  • Psychology
  • Individual behavior
  • Group behavior
  • Organization Theory
  • Sociology
  • Org as a whole
  • Org envi
  • Goals
  • Effectiveness
  • Strategy
  • Decision making
  • Change management

Public Management
  • Ineffective public management
  • Effective operation
  • Control over by democratic processes
  • Need to be balanced

Dilemmas of improving public management
  • Improving ? Reform
  • Negative, control-oriented
  • Damage public service at the end

Defining Effective Public Management
  • Perception of government incompetence ? crisis in
    public management
  • Confusion between reinventing government
    government cutback

Image of incompetence
  • Why?
  • People in private sector are smarter?
  • Government employees are lazy and corrupt?
  • Government cannot get any work done?

  • Lots of successful government programs, but no
    attention given
  • Negative image remains
  • Media ? Public sector failures are more difficult
    to hide than failures in private sector
  • Fishbowl atmosphere

Rules and regulations in public sector
  • Not designed for rapid and effective operation
  • But to combat fraud and improper political
  • If rules and regulations are ignored ? media
    public will suspect fraud or corruption

  • Fishbowl atmosphere ? always negative image of
    public manager

Image problem
  • Bumbling bureaucrat (stereotype by media
  • Inept bureaucrat ? national economy
  • Too simple ? ignore the benefit of government
    programs in economic growth (ex. infrastructure)
  • Social security program ? more opportunity for
    young generation (not having to take care of
    their parents)

  • causes
  • 1) Bureaucrat bashing by the media politicians
    ? easy to do and draw more attention than trying
    to explain how complex their situation is
  • Public policy process is so complicated and
    involve trade-off (usually not notice by the

  • 2) Bureaucrat avoiding choices
  • Using vague language to avoid choices
  • Making choices ? draw criticism (both from
    internal public in general)
  • 3) Extreme Formality (red tape)
  • Rely on written communication
  • Focus on accountability
  • Habit
  • Leads to in effective and costly management
    practices ? negative image

  • 4) Public managers ? lack of control over goal
    setting (unlike those in private sector)
  • Private sector ? BOD is controlled or related to
    org managers
  • Public sector ? BOD elected legislators and
    executives )who are more focusing on their
    political popularity more than organizational
  • Political interests always change without much
  • Successful public managers 1) adjust programs
    rapidly, 2) foresee changes in policy direction,
    3) build org capacity for change

  • 1) Negative image ? Bureaucrats self perception
  • negative thinking
  • psychology of failure
  • Ex. Roper family (p.5)
  • self-defeated define success as the absence
    of failure
  • Low expectations
  • Ignore sense of vision
  • Make fun of those who are ambitious
  • Same manager in private sector ? fired
  • In public sector ? impossible to fire ? hard to
    measure performance objectively
  • Hard to measure success (unlike balance sheet
    in private sector

  • 2) Letting the constraint constrain you
  • Accept problems and obstacles (instead of
    searching for solutions) ? explanation for
  • Give up easily
  • Due to the love-hate relationship with government
    (need government to do things for them but not
    to them)

  • 3) Allowing caution to become inertia
  • Caution? paralysis
  • New projects are abandon once tentative negative
    signals are received (ex. some other powerful
    public orgs do not favor the project proposal
  • Ex. Internet USPS (p. 10)
  • Emphasize process over product
  • Standard operation procedures (SOP)

  • 4) Hiding behind ambiguity
  • Use of unclear language
  • Ex. disturbed man
  • Hide their actions behind unclear phases, passive
    voice, refuse to agree to logical conclusions
  • To prevent outsiders from understanding who is
    doing what to whom!!
  • To hide poor or nonexistent performance (using
    vague statement of goals, unclear assignments of
  • Create impression that they are achieving goals
    while actually achieving very little
  • Focus on image more than actual performance
  • Ex. preventive-retaliatory invasion
  • Ex. revenue enhancements tax increases

  • 5) Forgetting that people matter
  • Forgetting that org people ? people count
  • Effective Management art of getting people to
    do the right things ? obtain resources to create
    incentives to achieve org goals
  • Org as organic entities (living, breathing,
    being) organism ? need nourishment from envi
  • Public managers usually ignore this essential
    concept? forgetting to interact and communicate
    with people who work for them ? deal with staff
    as abstractions ? productivity impaired ? org
    lost ability to attract resources from its envi

  • Ex. of empowering people (p.13)
  • Goodwill Industries of Tulsa ? shifting people
    from welfare to work ? (Nonprofit, receiving
    grants from Oklahoma state)
  • In 2000 ? Okl. Started to give grants based on
    outcome rather than output
  • Output placing most people from welfare to work
  • Outcome meaningful welfare-to-work number of
    people who keep their new jobs) ? staff need to
    spend more time with their clients to make sure
    they suit the job
  • Allowing people to do their best
  • Focusing on goal
  • Giving staff to feel they are in control of what
    they are doing

  • Effective public manager must understand the
    psychological, economic, and social needs that
    motivate their workforce
  • BUT, normally, public managers are not trained to
  • Rudeness ? dealing with subordinates as they were
    not valuable human beings
  • Have one personality for their staff/another
    personality for their boss
  • Example p. 15

Innovative, Effective Public Manager
  • Effective management
  • active, aggressive, and innovative effort to
    overcome constraints and obstacles
  • Positive with Can-do attitude
  • Make things happen
  • Pursue goals by thinking and acting strategically
  • Understand why things are happening and how
    things can be changes
  • Touch with informal network (SC?) ? information,
    ideas, initiatives
  • Learning, teaching, experimenting, changing
  • Understand org envi
  • Able to Project the effect of the envi
  • Understand constrain and influence of the envi
  • Entrepreneurship

  • Risk taking
  • Bigger numbers of government employees
  • Professionalization of government service (MPA,
  • Public management ? more on private contractors
    to provide services
  • Privatization, competition, contracting
  • Innovative public-private partnership (ex.)

Need for effective and innovative public
  • Economic reason (free market)
  • Modern industrial life
  • Labor moved from direct production of food,
    clothing, and shelter ? manage info, provide
    services, profession
  • Econ downturn, disease, terrorists, fear of
    flying, homeless ? government intervention
  • Trend ? reduce government role ? threat to
  • Reality ? economic interdependence is a far great
    constraint than power of government
  • Growth of government reflection of economic
    reality (material consumption)

  • Government (Traditional value)
  • Liberty, family, spirituality, envi preservation
  • Plastic bags toxic-free envi
  • Fresh fruit safe pesticides
  • Material wealth spiritual fulfillment
  • Free market DOES NOT designed to protect
    traditional value

What Makes Public Organizations Distinctive
  • Experts on management Org ? treat differences
    bt public private orgs as unimportant issue
  • Generic theory of organization
  • Broadly apply to all types of organizations
  • Standard principles to govern administrative
    structures of all organization

Public Organizations
  • If public and private organizations are the same
    ? questions are
  • Can we nationalize all industrial firms?
  • Can we privatize all government agencies?

  • If no, this means there are some important
    differences in the administration of public and
    private organization

Purpose of public organizations
  • Public organization inevitable components of
    free-market economies (Downs, 1967)
  • Thomas Hobbes ? State of Nature

Politics Market
  • Political Hierarchy ? Polyarchy ? Political
    authority ? social control
  • People willing to stop at red light vs. paying
    them to do so
  • Can be clumsy, ineffective, poorly adapted to
    local circumstances, resistance to change

  • Market ? voluntary exchanges
  • Producers
  • ? induce customers to engage willingly in
    exchanges with them
  • ? incentive to produce what consumers want, as
    efficiently as possible
  • Freedom flexibility
  • Efficiently use of resources
  • However, have limited capacity in handling
    certain problems (ex.?) that require government

  • Public goods Free riders
  • tragedy of the common
  • Services that benefit to everyone in society
  • Free-riders ? get common benefit, let others pay
  • Individual incompetence
  • People lack sufficient edu or info to make wise
    individual choices in some areas ex. medicines,
    food safety ? need government regulations

  • Externalities/Spillovers
  • Costs that spill over to other people who are not
    part of a market exchange (air pollution, water
    contamination ? Government intervention (EPA
    Environmental Protection Agency)

  • Government ? correct problems that economic
    market creates or unable to address
  • Monopolies
  • Income redistribution
  • Provide services that are too risky/too expensive
    for private competitors to provide (facility for
  • Conservative economists
  • ? think that market will eventually solves all
    these problems
  • ? Government makes these problems worse

Political Rationales for Government
  • Maintain law, justice, social organization
  • Maintain individual rights freedom
  • Provide national security and stability
  • Promote general prosperity
  • Provide direction for the nation communities
  • Provide services that are not exchanged on
    economic markets (but based on general social
    values, public interest, politically imposed
    demands of groups (politics)

Meaning and Nature of Public Organizations
Public Management
  • Public (Latin) ? people
  • Private (Latin) ? set apart from government as a
    personal matter

Three major factors
  • Interests affected
  • benefits or losses are communal or individuals
  • Access to facilities, resources, information
  • Agency
  • A person/org acts as individual or for the
    community as a whole

Agencies Enterprises Continuum
  • Agencies ------------------- Enterprises
  • (Public)

Ownership Funding
Public Ownership
Private Ownership
Public Funding (taxes, gov contract)
Private Funding (sales, private donations)
Distinctive Characteristics of public Management
  • Environmental Factors
  • Organization-Environment Transactions
  • Organizational Roles, Structures, and Processes

Environmental Factors
  • No economic markets for outputs
  • Depend on governmental funding
  • No incentives for cost reduction, efficiency,
    effective performance
  • Low efficiency allocating resources
  • Weak reflection of consumer preferences
  • Weak supply-demand relations
  • Less clear on market indicators and info that
    lead to managerial decisions

  • Heavy formal legal constraints
  • Oversight by legislative branch, executive
    branch, courts
  • Constraints on operation procedures
  • Managers have less autonomy in making choices
  • Leading to more and more formal administrative
  • External formal authorities involved
  • Intensive external political influences
  • Bargaining, negotiating, lobbying, public
    opinion, interest groups, constituent pressure
  • Need political support

Organization-Environment Transactions
  • Production of public goods
  • Handle externalities
  • Outputs are not transferable to economic market
    at a market price
  • Gov activities are coercive, monopolistic,
    unavoidable, unique sanctioning power
  • Financing of activities are mandatory
  • Activities have broader impact and greater
    symbolic significance
  • Involve public interest
  • Pressure on public managers
  • Expectation of fairness, responsiveness, honesty,
    transparency, and accountability

Org roles, structures, and processes
  • Unclear goals
  • Vagueness, intangibility, hard to measure goals
    and performance criteria
  • Debatable value-laden goal (clean envi, public
    safety, better living standards for the poor,
  • Multi goals
  • Efficiency, accountability, transparency,
  • Fairness, equality, distribution, moral

  • Conflicting goals
  • Involve trade-off (due to limited resources)
  • Value conflicting
  • Efficiency vs. transparency
  • Efficiency vs. social equality
  • Efficiency vs. accountability

  • More political roles
  • More meetings with external interest groups and
    political authorities
  • More skill on balancing external political
    relations with internal management functions
  • Weaker authority over subordinates (due to
    institutional constraints, ex. civil service
    personnel system, purchasing procurement
  • Turnover of top executive leaders (elections,
    political appointments

  • Structure
  • More red-tape, elaborate bureaucratic structure
  • More constraints on administration

Environment of Public Organizations
  • public organizations tend to be subject to more
    directions and interventions from political
    actors and authorities who seek to direct and
    control them
  • Public manager ? ability to analyze and monitor
    their environment

General Environmental Conditions
  • Technological conditions ? knowledge and
    capability in sciences, etc
  • Legal conditions ? law, regulations, legal
    procedures, court decisions
  • Political conditions ? political process,
    institution, and forms of government in a given
    society ? capitalism, socialism, communism,
    electoral outcomes, political party system
  • Economic conditions ? prosperity, inflation,
    interest rates, tax rates, labor, capital,
    economic market

  • Demographic conditions ? age, gender, race,
    religion, ethnic
  • Ecological conditions ? physical envi, climate,
    pollution, natural resources
  • Cultural Conditions ? predominant values,
    attitudes, beliefs, social customs, socialization
    process, family structure, work orientation

Examples of Political and Institutional
Environments of Public Organizations
  • General values
  • Political economic traditions
  • Constitution provisions (ex. democratic elections
    and representation/ unitary state/ fused power,

  • Values performance criteria for government orgs
  • Efficiency
  • Effectiveness
  • Timeliness
  • Reliability
  • Reasonableness
  • Accountability
  • Legality
  • Responsiveness to rule of law
  • Responsiveness to public demands
  • Ethical standards
  • Fairness, equal treatment
  • Openness to criticism

  • Institutions actors with political authority
  • Chief Executive
  • Legislatures
  • Courts
  • Other governmental agencies
  • Other levels of government
  • Interest groups (client groups, constituency
  • Professional associations
  • News/media
  • Public opinion
  • Individual citizens with requests for services

  • Conflicting values ? Challenges to public managers

Leadership, Managerial Roles Organizational
  • Inborn (Trait Theories)
  • Identify traits of effective leaders, ex. height,
    intelligence, enthusiasm, persistence
  • Learned trait

  • Definition of leadership
  • Executive
  • Managerial
  • Supervisory
  • Informal leadership

  • General definition (Lundstedt 1965)
  • ? leadership involves influencing the behavior
    of others in any group or organization, setting
    goals, formulating paths to those goals, and
    creating social norms in the group

Three levels of leadership in Bureaus
  • Executives
  • ? establish bureaus structure (including
    positions filled by managers and supervisors
  • ? maintain general view of the bureau and its
    place within political envi
  • ? Interpret political statements of intentions
    (unclear contradictory) into rational goals
  • ? Create environment that encourage goal
  • ? close attention to org environment (take
    advantage of opportunity protect org from

  • manager
  • ? depend on rules regulations that define their
    power over others
  • ? interpret org goals (set by executives) in
    concrete manner (into structure, procedure, tasks
  • ? often pulled by superiors subordinates
  • ? focus on how org can be best organized to
    achieve the overall goals established by

  • Supervisor
  • ? focus on motivation, productivity,
    interpersonal relations
  • ? work directly with production process
  • ? protect subordinates from political pressure

  • Informal leadership
  • ? have no official leadership positions
  • ? need to understand informal leadership
    phenomenon along with formal one

  • Definition of leadership ? two common elements
  • Group phenomenon ? 2 or more people must be
  • Influence process

  • Influence
  • ? flow from leaders to followers
  • ? Followers grant the leadership role
    to leader
  • ? leaders rallying people together and
    motivating them to achieve some common goals

Influence Tactics (Yukl 1994)
  • Rational Persuasion
  • Inspirational Appeals
  • Consultation
  • Ingratiation
  • Personal Appeals
  • Exchange
  • Coalition Tactics
  • Legitimating Tactics
  • Pressure

  • Authority ? rational basis of power
  • Rational side of org ? what an org should do
    according to the official, formal dictates of org
  • Political side of organization ? what
    organizations actually do

  • the rationally based formal right to make
    decisions and influence behavior to implement
    decisions based on formal organizational

  • Authority a right determined by an obligation
  • Authority is solely associated with formal org,
    with formal sanction or approval from society

Forms of authority
  • Managerial authority
  • Staff authority
  • Situational authority
  • Operative authority

Managerial Authority
  • Managers are responsible for acquiring,
    deploying, controlling resources needed to
    accomplish objectives
  • Rights to choose among alternatives
  • The right to enforce those choices based on
    official position
  • Principle of parity of authority and
    responsibility ? Balance between responsibility

Staff Authority
  • Suggestions recommendations about the solutions
    to problems, procedure, or improvements
  • Right to recommend
  • Right to suggest
  • Right to advise
  • Right to attempt to exert influence to gain
    acceptance for ideas
  • Ex. TQM, suggestion boxes, employee empowerment,
    decentralizing org.

Situational Authority
  • Hybrid authority
  • Contains both managerial and staff authority
  • Delegated by managers to a staff expert

Operative Authority
  • All members have this authority
  • ? make certain decisions about how, in what
    order, which tools they carry out their tasks
  • ? right to work without undue supervision

  • the ability to impose ones will on others
  • the ability of one person to affect the
    behavior of someone else in a desired way
  • Based on factors such as knowledge, authority,
    information, personality, resource control

  • Authority ? simple power associated with formal
  • Power ? influence that does not necessarily
    depend on formal organizational recognition
  • Example

Two Perspectives on Power
  • The French and Raven Power Typology ? individual
    bases of power
  • Dependency, Critical Contingencies, and Power ?
    how individuals, groups, or departments gain
    power through dependency relationships

French Raven Power Typology
  • Sources potency of power in org
  • Rational/legal power
  • Reward Power
  • Coercive power
  • Referent power
  • Charismatic power
  • Expert power

Dependency, Critical Contingencies, and Power
  • Power through control of resources
  • Power through solving critical or strategic
  • Level of substitutability
  • Power and location in the org
  • Power and position in the org

How to assess power ?
  • Determine by sources or origin of power ?
    judgment about how much of particular power a
    person/department possesses
  • Determine by consequences of decisions made by
    various actors
  • Determine by power symbols ? larger office,
    luxurious furniture, more expensive company cars
  • Representational indicators of power ?
    memberships on influential boards or committees

  • The use of power in organization
  • Effort ? energy ingenuity? to fill power
  • Control of information flows
  • Dominant coalitions ? group holding extensive
    power authority that may be separate from
    formal power

  • Organizational politics (Pfeffer)
  • those activities taken within organizations to
    acquire, develop, and use power and other
    resources to obtain ones preferred outcomes in a
    situation in which there is uncertainty or a lack
    of consensus about choice

Executive leadership
  • Most important ? influence ? skillful playing of
    political game ? power
  • Administrative conservators
  • Preserve institution
  • Improve institution
  • what is political climate?
  • what is the resource base?
  • what is the potential for mobilizing support for
    the program?

  • Four functions for executive leadership
  • The creative task of setting goals
  • The capacity to build policy into an
    organizations social structure
  • Maintaining values and institutional identity
  • Reconciling the struggle among competing interests

The Managers
  • in the middle
  • Traits (Stogdill 1981)
  • Capacity? intelligence, alertness, verbal
    facility, originality, judgment
  • Achievement ? scholarship, knowledge
  • Responsibility ?dependability, initiative,
    persistence, aggressiveness, self-confidence
  • Participation ? activity, sociability,
    cooperation, adaptability, humor
  • Status ? Socioeconomic position, popularity
  • Situation ? mental level, status, skills, needs
    and interests of followers, objectives to be

Values held by successful managers
  • Support ? understanding, kindness, considerate
  • Conformity ? follow regulation, doing what is
    accepted, proper, socially correct
  • Recognition ? attracting favorable attention
    being admired, looked up to
  • Independence ? free to make decision
  • Benevolence ? generous, helping and sharing with
    those who are less fortunate
  • Leadership ? have authority over people

Managerial roles
  • Figurehead role (also executives)
  • Leader ole
  • Liaison role ? web, network of relations
  • Monitor role ? problem, opportunity
  • Disseminator role ? interpret info passing on
    to sub
  • Spokesperson role
  • Entrepreneur role
  • Disturbance-handler role
  • Resource-allocator role
  • Negotiator role

Managerial characteristic (Mintzberg)
  • Work pace ? no break, grueling pace, long hours
  • Activity duration variation ? engage in wide
    variety of activities
  • Action rather than reflection ? gravitate toward
    active aspects of their jobs
  • Communication media usage ? written messages,
    scheduled meetings, unscheduled meetings,
    observational tours, telephone messages

The Supervisors
  • getting the work done
  • Three major focuses
  • Production
  • Maintenance of individual morale
  • Maintenance of group cohesiveness

  • Supervisory behavior (Bass 1990)
  • Consideration ? extent to which a leader shows
    concern for the welfare of the other members of
    the group, appreciation of good work, stress
    importance of job satisfaction
  • Initiation of structure ? extent to which a
    leader initiates activities in the group,
    organizes it, defines the way work is to be

Path-Goal Theory of Leadership
  • Effective leaders increase motivation and
    satisfaction among subordinates when they help
    them pursue important goals
  • Leaders help subordinates to see the goals
  • The paths to achieve those goals
  • How to follow those paths effectively
  • Show the values of outcomes
  • Using appropriate coaching and directing
  • Removing barriers and frustrations to those paths

House Mitchells 4 leadership styles
  • Directive ? Leaders give specific directions and
  • Supportive ? stress on encouraging, sympathetic
    relations with subordinates
  • Achievement-oriented ? leaders set high goals and
    high expectations for subordinates performance
    and responsibility
  • Participative ? leaders encourage subordinates to
    suggest opinions and suggestions

  • Directive leadership
  • ? good for ambiguous task
  • ? bad when task is well structured and clear
  • Supportive leadership
  • ? good when tasks are frustrating and stressful
  • ? bad when groups or other parts of org already
    provide plenty of encouragement
  • Achievement-oriented leadership
  • ? good for tasks toward ambitious goals
  • Participative leadership
  • ? good for ambiguous task that subordinates
    feel their self-esteem is at stake
  • ? participation allows them to influence
    decisions and work out solutions

Leader-Member Exchange Theory (LMX)
  • Dyadic relationships
  • between a leader and individual subordinates
  • On development of low-exchange and hi-exchange
  • Low-exchange relationships
  • ? little mutual influence between the leader and
  • ? subordinate follows formal role requirements
  • ? receive standard benefit (salary)
  • High exchange relationships
  • ? leader establishes with a set of trusted
  • ? mutual influence relations
  • ? subordinates receive benefits in the form of
    more interesting assignments and participation in
    important decisions
  • ? leaders expectation of hard work, loyalty,
    more responsibility

Transformational Leadership