Public organization

1. Public OrganizationPublic Organization
Form, Structure,Form, Structure,
Nature and CultureNature and Culture
Paper presented byPaper presented by
Dr. Md. Shamsul ArefinDr. Md. Shamsul Arefin

2. Parliament
Public office Accountability Mechanism
on
2

3. 3

4. 4

5. Definition of Organizations
 An organization is a collection of people working
together in a coordinated and structured fashion to
achieve one or more goals.
 Two or more people working together to achieve
something (that often cannot be accomplished alone)
 Shared
– vision?
– mission?
– values?

6. Public office
 Public office are strongly influenced by the people that
form part of them.
 Public office can take in part of the personality of the
people within them and their attitudes, perceptions and
behaviors affect how an office will operate.
 Public offices are created by the government to protect
the public from certain business practices or to protect
offices from one another.
 Examples include the Environmental Protection Agency
and the Department of Occupational Safety, Health and
Welfare.

7. Structure of a Public Office
Bangladesh Railway
Finance Department
Bangladesh Railway
Finance Department
A & R = Accounts and Reports
ADG = Additional Director General
BR = Bangladesh Railway
CGDF = Controller General Defence Finance
DCAG = Deputy Comptroller and Auditor General
DG = Director General
FA & CAO = Financial Adviser & Chief Accounts Officer
FC = Finance Controller
JDG = Joint Director General
SFC = Senior Finance Controller
A & R = Accounts and Reports
ADG = Additional Director General
BR = Bangladesh Railway
CGDF = Controller General Defence Finance
DCAG = Deputy Comptroller and Auditor General
DG = Director General
FA & CAO = Financial Adviser & Chief Accounts Officer
FC = Finance Controller
JDG = Joint Director General
SFC = Senior Finance Controller
Training AcademyTraining AcademyAudit DirectoratesAudit Directorates
Defence Finance
Department
Defence Finance
Department
CAG OfficeCAG Office
DCAG (Senior) Gr.
II
DCAG (Senior) Gr.
II
CGDF Gr. IICGDF Gr. II DG Financial
Management Academy,
Gr. II
DG Financial
Management Academy,
Gr. II
DCAG (A&R) Gr.
III
DCAG (A&R) Gr.
III
DCAG (Procedure)
Gr. III
DCAG (Procedure)
Gr. III
JDG (Finance), (BR)
Gr. III
JDG (Finance), (BR)
Gr. III
FA & CAO (East), BR Gr.
III
FA & CAO (East), BR Gr.
III
FA & CAO (West), BR Gr.
III
FA & CAO (West), BR Gr.
III
FA & CAO (Project), BR
Gr. III
FA & CAO (Project), BR
Gr. III
Addl. FA & CAO BR-3
Gr. IV
Addl. FA & CAO BR-3
Gr. IV
SFC (Army)
Gr. III
SFC (Army)
Gr. III
SFC (Navy)
Gr. III
SFC (Navy)
Gr. III
SFC (Air Force)
Gr. III
SFC (Air Force)
Gr. III
SFC (Defence Works)
Gr. III
SFC (Defence Works)
Gr. III
SFC (Defence
Purchase) Gr. III
SFC (Defence
Purchase) Gr. III
DG
Post, Telegraph & Telephone Audit
Directorate, Gr. III
DG
Post, Telegraph & Telephone Audit
Directorate, Gr. III
DG
Local and Revenue Audit
Directorate, Gr. III
DG
Local and Revenue Audit
Directorate, Gr. III
DG
Commercial Audit Directorate, Gr. III
DG
Commercial Audit Directorate, Gr. III
DG
Works Audit Directorate
Gr. III
DG
Works Audit Directorate
Gr. III
DG
Railway Audit Directorate
Gr. III
DG
Railway Audit Directorate
Gr. III
DG
Civil Audit Directorate
Gr. III
DG
Civil Audit Directorate
Gr. III
DG
Foreign Aided Projects Audit
Directorate, Gr. III
DG
Foreign Aided Projects Audit
Directorate, Gr. III
DG
Defence Audit Directorate,
Gr. III
DG
Defence Audit Directorate,
Gr. III
DG
Mission Audit Directorate,
Gr. III
DG
Mission Audit Directorate,
Gr. III
DG
Performance Audit Directorate,
Gr. III
DG
Performance Audit Directorate,
Gr. III
ADG (Finance) Bangladesh
Railway (BR) Gr. II
ADG (Finance) Bangladesh
Railway (BR) Gr. II
7

8. PUBLIC SECTOR PURVIEW
IPSASB FrameworkIPSASB Framework
““Public sector refers to Governments, RegionalPublic sector refers to Governments, Regional
Government, Local Governments & Related GovernmentGovernment, Local Governments & Related Government
entities including Agencies, Boards, Commissions &entities including Agencies, Boards, Commissions &
Enterprises”Enterprises”
Public Sector Covers all Arena of Public ServicesPublic Sector Covers all Arena of Public Services
Provided by the Following Agencies:Provided by the Following Agencies:
 Government MinistriesGovernment Ministries
 Divisions /Directorates / DepartmentsDivisions /Directorates / Departments
 Government Sub-Ordinate OfficesGovernment Sub-Ordinate Offices
 Local Government AuthoritiesLocal Government Authorities
 Autonomous/Semi-Autonomous BodiesAutonomous/Semi-Autonomous Bodies
 Public Sector CorporationsPublic Sector Corporations
 Foreign Aided Projects (SCOPE/SPEMP B)Foreign Aided Projects (SCOPE/SPEMP B)
 State Owned Enterprises (SOEs)State Owned Enterprises (SOEs)
 State Owned Bank (SOB)State Owned Bank (SOB)
 Hospitals/Educational Institutions etc.Hospitals/Educational Institutions etc.
Bangladesh Public Sector Coverage
8

9. Traditional Organizational Structure
Stockholders
Board of directors
President
Legal Staff
Vice
President of
Purchasing
Vice
President of
Sales and
Marketing
Vice
President of
Finance
Vice
President of
Manufacturing
Vice
President of
Research and
Engineering
Vice President
of
Administration
Industrial
Relations
Personnel
Employee
Relations
Training
Safety
Medical
Management
Services
Security
Food
Services
Technical
Services
Report Publ.
Library
Drafting
Research
Engineering
Mechanical
Design
Electrical
Design
Materials
Engineering
Sytems
Engineering
Design
Support
Reliability
Maintainability
Value
Engineering
Logistical
Support
Prototype
Development
Test and
Evaluation
Industrial
Engineering
Manufacturing
Engineering
Plant
Engineering
Production
Operations
Tooling
Fabrication
Subassembly
Assembly
and testing
Inspection
Production
Shops
Quality
Control
Budgeting
General
Accounting
Cost
Accounting
Payroll
Forecasting
Financial
planning
Market
Analysis
Customer
Liaison
Sales
Supply
Support
Field Service
Purchasing
Price
Estimating
Contracts
Management
Subcontracts

10. Project Organizational Structure
President
Vice President of
Research and
Engineering
Other Vice
Presidents
Systems
Engineering
Project
Management
Mechanical
Design
Electrical
Design
Materials
Engineering
Project X
Project Z
Project Y

11. The Nature of Management
 Management is a set of activities directed at an organization’s
resources with the aim of achieving organizational goals in an
efficient and effective manner.
The components are
 Planning
 Decision Making
 Organizing
 Leading
 Controlling
The resources are
 Human
 Financial
 Physical

12. Changing Nature of Organizations
Shift from .
 Hierarchical (tall) to decentralized (flat)
structures
 Climate of authority (control) to climate of
coaching (support through performance feedback)
 Analog to digital (computerized information
technology)
 National to Regional

13. Three Important ConstructsThree Important Constructs
 Organizational Identification (process & product)
– People, policies, products, services, customers,
values
Job Satisfaction
– The degree to which employees feel fulfilled by
their job and related experiences.
– A pleasurable or positive emotional state from the
appraisal of one’s job or experiences
 Communication Satisfaction
– The degree to which employees feel that
communication is appropriate and satisfies their
need for information and work relationships

14. Organizational structure
 System of relations, governing activities of employees,
reliant upon one another to meet common goals
 Embedded in position descriptions
 Pictured in position relationships shown on
organizational charts
 Revealed in distribution of authority and communication
channels
 Varies from the simple to complex
 Can be formal or informal
 May be centralized or decentralized
 Marked by specialization and coordination

15. Organizational Culture
The system of norms, beliefs and assumptions, and values that
determine how people in the organization act—even when that action
may be at odds with written policies and formal reporting
relationships.”
• Edgar H. Schein
 The culture of an organization is the set of values that helps its
members understand what the organization stands for, how it does
things, and what it considers important.
 A strong organizational culture can shape the firm's overall
effectiveness and long-term success and help employees to be more
productive.

16. Organizational culture
Organizational culture is a
communicatively constructed,
historically based system of assumptions,
values, and interpretive frameworks that
guide and constrain organizational
members as they perform their
organizational roles and confront the
challenges of their environment.
Organizational culture provides meanings
for routine organizational events, thereby
reducing the amount of cognitive processing

17. Elements of Organizational Culture
 Symbols: decoration, signs, clothing
 Language: use of terminology
 Standards of behavior: meetings
 Slogans: sayings
 Mythology: stories that are repeated
 Ceremonies: special events, celebrations

18. Bureaucracies
Distinguished by:
 Governing rules –often rigid
 Division of labor
 Chain of command
 Specializations
– authority,
– delegation,
– credibility.
 Delegation to public administrations –
– Reducing the costs of administering patronage-employment systems
– Encouraging efficiency and loyalty to the public interest by structuring
careers.

19. Bureaucratic Structure
 Pyramidal
– Top Level Management
– Middle Level Management
– Floor Supervisors
– Floor Workers
 Research indicates that restructuring usually
results in the elimination of middle management
positions
 Horizontal and vertical components

20. Vertical Structure
 Hierarchy
– Provides the conduit for authority to flow,
traditionally from top down (scalar principle)
– Delegation entails assignment of authority
from super-ordinate to subordinate
– Units may be centralized or decentralized
– Unity of command means each employee has a
supervisor

21. Power and/or Authority
 Authority: right of supervisor to direct
subordinates; flows from chain of
command; vested in position, not person
 Power: ability to influence the behavior of
others; may derive from: management,
ability to reward, expertise, and/or respect

22. Different kind of Power
Reward power: ability and resources to obtain
rewards for those who comply, e.g. pay,
promotion, recognition, privileges
Coercive power: ability to punish or to bring about
undesirable outcomes, e.g. withholding pay rises &
promotion, withdrawing friendship, formal
reprimands
Legitimate power: the right to exercise power
because of leader’s position in the organisation
Referent power: subordinate’s identification with
the leader because of attractiveness, reputation, or
charisma
Expert power: competence, special knowledge or
expertise in a given area. Expert power is normally

23. Management
Theory X
 Management styles: Douglas McGregor (1960)
polarised (caricatured?) managers’ attitudes
 Theory X:
– Average person has an inherent dislike of work
– People must be coerced, controlled, directed,
threatened with punishment
– Average person prefers to be directed, and wishes
to avoid responsibility

24. Theory Y
 McGregor suggested:
 Theory Y
– Physical and mental effort is as natural event
– Man will exercise self-direction for objectives to which he is
committed
– Commitment to objectives is a function of reward
– Average person learns to accept and seek responsibility
– Imagination and creativity is widely distributed
– People’s potentials are only partially utilised
 "When one treats people with benevolence, justice and
righteousness, will be happy to serve their leaders.” Sun Tzu (circa
400 BC)

25. Theory X
Autocratic
Theory Y
Objective setting
(Laissez Faire)
Theory Z
Democratic
Your style might
be anywhere in
this continuum
Theory Z
 Theory Z: WS Ouchi, 1980s
– Well managed companies in US and Japan had lifetime employment,
collective decision making, promotion from within, non-specialised
career paths
– Characterised as a “democratic” management style

26. 26
Public organizations matter
 Three management mechanisms for public
administrations;
– public finances: how the money is controlled;
– civil service: how people are managed;
– organization: how activities are coordinated.
 organization (“hierarchy”) is a “system of consciously coordinated activities or forces
of two or more persons”.
 Organizations are social systems, hence complex.
 Public organizations (“bureaucracies”) are the state’s agents for public collective
action.
 Studying public organizations goes to the heart of governance and corruption issues:
– public organizations deliver public services with more or less efficiency, equity, honesty, and
accountability

27. 27
Public organizations are different: A Comparison
A. Private organizations B. Public organizations
1. Organizational rationality is bounded, and
progress is often by trial and error.
Similar, but uncertainty may be less.
2. Worker motivation is complex, extending
beyond economic incentives into social and
personal needs.
Similar: the people are no different.
3. Organizations have a non-formal
organizational culture key to determining the
actual tasks and the sense of mission.
Similar.
4. Organizations have the characteristics of
living, evolving systems.
Much less so: they are born, allowed to change
and allowed to die much less easily.
5. There is a great variety of types of
organization, responding to different and
changing needs and environments.
There is a smaller variety. A ministerial hierarchy
with large, wholly public sub-organizations
is the dominant form.
6. The external “authorizing environment” – i.e.
the external influences on what the
organization does and how it does it – is
important and complex.
Centralized control of resources and regulation of
personnel and procedures mean considerably
less managerial autonomy from the external
environment.

28. 28
The new model of public administration
 Limited government (checks and balances):
– Constitutional separation of powers
 Semi-autonomous public administrations:
– Self-regulation within structural and procedural
constraints.
 Hierarchical organization of administrations
(Max Weber):
– meritocracy;
– specialized agencies within a hierarchical command
structure;
– financial planning and control;
– codified records.

29. 29
Changes in public organizations
 The growth of citizen voice:
 Progressively stronger electorates, in terms of their knowledge and
ability to organize
 Recent, more systematic efforts to make public administrations more
accountable, efficient, and responsive.
 The core techniques borrow from the managerial methods of the
private sector.
 Better management, better information
 Improved management technologies, including the falling cost of
information, make the control problem potentially more soluble.

30. 30
Concluding Remarks
 Privatization.
 Quasi-market competition
– Management, relational, and personnel contracts; competition
between public agencies; inter-agency fee charging; out-sourcing.
 Performance orientation: changing the accountability relationship
from an emphasis on inputs and legal compliance to one on
outputs.
– Results-oriented budgeting, full-costing of products.
 Devolution of discretion. Devolution of decision making:
reducing the burden of hierarchical rules and fostering greater
discretion at lower points in the hierarchy.
– Decentralization of personnel-management.
 Specialization by splitting policy making and policy
implementation, service financing and service delivery.
– Executive agencies, hospital trusts.
 Client-focus: reporting to and "listening" to the clients of the
public sector.
– Citizen’s Charter; e-government, participative budgeting.