1. 1 Lecture 2 Theoretical Development of Bureaucratic Model Introduction to Public Bureaucracy

2. 2 Organization Theory and the Role of Government’s Structure Foundations of Organization Theory 1) Classical approaches: hierarchy and rules - Structural theory (bureaucratic model) 2) Challenges to classical views - Humanist approach - Pluralist approach - Third-party approach - Formal theory

3. 3 Structural Approach The Roman military heritage of public administration Hierarchy (chain of command) -Top-down delegation of authority from higher officials to lower ones Authority -Government has rightful power to make decisions within constitutionally defined limits, with the expectation of widespread compliance

4. 4 Kettl. D. F. 2011. The politics of the administrative process. 5 th ed. CQ Press.

5. 5 Structural Approach: Assumptions Organization exists to achieve economic goals like the maximization of production (maximization of technical efficiency). Systematic and scientific approach is one best way to organize production. Production can be maximized through specialization and division of labor. People and organizations act according to rational economic principles.

6. 6 Structural Approach: Administrative Implications Narrow, defined specialization (division of labor) Internal specialized structure (hierarchy, chain of command) Rules of the game for the agencies’ units and position holders Staff of experts (professionalism) Outside definition of roles and responsibilities –ex. Legislature has authority to alter the agency

7. 7 Two Models of the Structural Approach Classical model: POSDCORB by Gulick (1930s) –Clearly bounded jurisdictions of authority and responsibility –Subdivision of positions immediately under the top position –Technical efficiency –Objective principles of organization (ex. POSDCORB)

8. 8 Two Models of the Structural Approach Bureaucratic model: Weber (1946) –Legitimacy of the system of authority: based on legal- rational authority –Protestant work ethics –The need for a charismatic leader –A value-free approach to social research Three types of authority and bureaucracy -Traditional authority -Charismatic authority -Legal-rational authority

9. 9 Challenges to Structural Approach and Systems Theory Humanist approach: wants to humanize organizations, condemns impersonality of bureaucratic hierarchy Pluralist approach: interest-group pressures, wants less orderly model of an organization's interactions Third-party approach: recognizes contracting-out, delegation of authority to third parties Formal approach: structural perspective with emphasis on principal-agent theory, economic approach

10. 10 Humanist Approach Emphasis on the individual workers in the organization Scientific management movement: Frederick Taylor (1900s) studied how long it took workers to accomplish specified tasks –Perceived as dehumanizing Human relations movement: 1950s, happy workers are more productive –Belief that large organizations would work better if top officials changed their behavior Sensitivity training: team building activities for corporate executives

11. 11 Pluralist Approach Emphasizes the responsiveness of a government organization to society’s politically active interest groups Administrative organizations are the product of this conflict and accommodation of interests Organizational culture: stresses variation among agencies; generalizations about structure of authority are problematic

12. 12 Third-Party Approach The more government relies on third-party tools, the less it fits structural models Organizational structure: an administration’s internal framework Organizational structure is being mixed with public-private partnerships Network analysis: organizations help one another because they discover that cooperation advances their own goals as well

13. 13 Formal Approach Bureaucracies are networks of contracts built around systems of hierarchies and authority Basic assumptions 1)Individuals seek self-interest 2)Employees work because they receive pay and fulfillment 3)Employers pay workers to get the job done 4)Market determines pay scale Principal and agent theory and Transaction costs

14. 14 One Example of the Formal Approach Principal-agent theory: higher-level officials (principals) initiate the contracts and then hire subordinates (agents) to implement them Workers are responsible to top-level officials (principals) through contracts in exchange for specific rewards Results will be only as good as the contracts Contracting-out and transaction costs

15. 15 Conclusion Each approach embodies a significant truth about government organizations Error of these approaches lies in overgeneralization Important to study reality Need to formulate middle-range theories: those that explain a limited range of phenomena