1. Kay 235: Introduction to Management
Lecture 1
Subject: The development of public administration, and its relationship with management
Reading: Greene, Chapter 2

2. Notes The syllabus is available at: Today’s lecture
Today’s lecture

3. Introduction Beginnings of Public Administration (PA) PA is:
Woodrow Wilson `Study of Administration` article (1887)
Politics & Administration Dichotomy/Separation
PA is similar to Business Administration (BA)
PA is:
Managing the affairs of the state
Implement a variety of policies
What do governments do
In general: Education, Health, Justice, Internal & External Security
More specifically: Establishing speed limits and enforcing them

4. How to define PA? It is a social science
Studies social phenomena and human behavior
It is a multidisciplinary field
Includes political science, management & law
Some says PA has an `identity crisis`
It is both an academic discipline, and a practice/profession.
The two are closely linked.

5. The issues that PA deals with
What does government do?
How to understand complexities in public organizations?
What is the environment in which public organizations function?
How they function?
What they do?
Why they do it?

6. SOME BACKGROUND Thomas Hobbes 17th C. Adam Smith, 18th C.
Leviathan
Adam Smith, 18th C.
The Wealth of Nations
Invisible hand
Alexis De Tocqueville, 19th C.
Democracy in America
Power of associations

7. Degree of Government Involvement in Economy
Limited Involvement
Adam Smith, Wealth of Nations
Invisible hand
The aggregate of people’s self interests make up of the public interest
Larger Involvement
Hobbes
Reasons
Externalities
Monopolies
Imperfect Information
Examples: Roosevelt, Wilson, FDR
Some Actions
Break up monopolies

8. Primary Objective of PA
Multiple criteria/objectives
Effectiveness
Achieving stated objectives
Efficiency
Achieving objectives with minimum resources (time, money, personnel…)
Responsiveness
To the needs of the society
Social Equity
All these things and more…
Objective: Better society through better government

9. PA as a practice/profession
PA programs train future public administrators
Training includes courses in:
Management
Organizational theory and behavior
Personnel administration
Budgeting & financial management
Administrative History and Law
PA offers new courses as it responds to changes
E-government
Ethics

10. History of PA
PA and bureaucracy is many centuries old, but the PA discipline is new:
US PA begins with Wilson`s 1887 article, `The Study of Administration`
PA is born out of political science
Still, there is a productive tension between the two.

11. Development Stages of PA
1. CLASSICAL PERIOD ( )
Politics & administration dichotomy/separation
A generic view of administration
No real difference between PA & BA
Universal principles of scientific management
BA techniques may be applied to PA

12. Stages of PA-2 1. THE CLASSICAL PERIOD (1900-1940)
A mechanistic view of the people and the world
It is thought that money is the primary motivation
A strong reaction against corruption in government
Cleaning up government from partisan politics and favoritism
Bringing competence to government by applying scientific methods
Primary Goal
Establishing competent and neutral professional administration

13. Politics & Administration Dichotomy
Formulating government policies by democratic processes such as election and the parliamentary processes
Administration
Execution of these policies
Powers of government
Legislature: Parliaments (Politics)
Executive: Central and local government (Administration)
Judiciary: Courts (Both formulate and execute policies (Both politics and administration)

14. Politics & Administration Dichotomy
Woodrow Wilson believed that
Administration executes the law
There is little difference between PA & BA
Government could and should be more businesslike in its operations
Mixing politics & administration is both ineffective & inefficient
Government employees should be selected for their merit
They should be free from political influences and pressures

15. Scientific Management
Founder: Frederick W. Taylor
Universal principles of management
There is a `one best way` of implementing policies.
PA was focusing on upper management
Taylor focused on lower management
Assembly line workers
How to make production/workers more efficient

16. Scientific Management
Taylor believed that
There was always a `one best way` of doing things
Time and motion studies for workers
Money was thought to be the main motivator
A very mechanistic view of the world

17. Hawthorne Studies Conducted by Elton Mayo Beginning in 1927
Examined the relationship between workers, work environments & productivity
His research started the `Human Relations Movement`
Importance of informal groups
Beginning of the `behavioralist movement`

18. Other Contributors Max Weber Mary Parker Follett
Defined the bureaucratic form of organization
Also known for authority types
Traditional, charismatic and legal-rational
Mary Parker Follett
Offered a management philosophy based on
Individual motivation and group problem solving
Participatory management

19. Other Contributors Gulick and Urwick
Papers on the Science of Administration (1937)
Famous acronym: POSDCORB
Planning
Organizing
Staffing
Directing
Coordinating
Reporting
Budgeting

20. End of the Classical Period
The rise of the administrative state in 1930s
Emerged in response to the problems of
The Great Depression of late 1920s
And the World War II

21. Stages of PA: Stage 2 2. BEHAVIORIST PERIOD (1940-1970)
Affected by both political science and management
Disputed the scientific principles
Advocated the study of behavior
Application of economics on bureaucracy
Anthony Downs: Forerunner of the public choice theory

22. Other Contributors Chester Barnard Herbert Simon
The Functions of the Executive (1938)
Organization as cooperative systems
Managers balance the needs of the individual & the organization with effective communication
Herbert Simon
Administrative Behavior
Classic management principles are contradictory
Simon argued that there are limits for human organizations to handle and process information
Rational decision-making within limits
Bounded rationality, satisficing
People give `good enough` decisions, rather than pursuing the best course of action

23. Behavioralism: Multidisciplinary
Behavioralists studied individual behaviors rather than institutions
E.g. participatory decision-making
Multidisciplinary character:
Systems theory, taken from biology
Public Choice Theory, from economics
Self-interested bureaucrats, instead of pursuing the public interest
Comparative PA: In other countries

24. PA as management Similar curricula
Organizational theory
Human resource management
Information systems
Budgeting
Oriented towards a generic management theory

25. PA & BA: Similar or Different?
The focus is on similarities & differences
Government, private and non-profit comparisons (Greene, page 58)
Graham Allison Article (Next week)
Just a few arguments (More details next week)
Short term focus in PA
Budget process and political pressures
Limited term leadership
Relatively quick turnover of appointed PA leaders

26. Some Contributions to PA by Management Scholars
Theory X and Y
Douglas McGregor
Process of Motivation
Victor Vroom
Managerial Grid
Robert Blake and Jane Mouton

27. Stages of PA: Stage 3 3. THE NEW PA (1968-1980s)
A radical change in the PA discipline
Very normative and activist period
Rejected the rationality of the behaviorist school
Foci
Organizational humanism
Participatory bureaucracy
Representative bureaucracy
Bureaucracy should address social inequalities
Concerned more with equity than efficiency

28. Stages of PA: Stage 4 4. THE REFOUNDING PERIOD (1980--)
Challenges to mainstream PA (New Public Management)
Main challenges
Public choice theory
Bureaucrats are motivated by self-interest
Privatization
Reinventing government movement

29. The Refounding Period
Oil crises and fiscal stress of late 1970s and early 1980s resulted in
Privatization
One again, efficiency became very important
Still, efficiency should be balanced with other competing goals
Such as accountability and equity.