2. A. Administration Vs Management
In the 1970s & 1980s there was a debate about:
(a) the role of market and politics
(b) the role of the state in producing goods
and services.
Issues raised by the debate:
Differences between how organizations located
in the public and private domains are structured
and managed. i.e. the question of differences in
the processes of running public and private
organization
3. 1. First View – Yes
– Differences in the ways the organizations in
the two domains are run
– Management
i. Associated with the rationalist approach to
organization decision making
ii. Rationalist approach sees managers as the
agents for achieving organization goals and
corporate growth
iii. Through the use of most efficient resources.
4. • Administration
i. Associated with the public sector
ii. Public officials implement policies determine
by political executives
iii. Policies implemented must be within the
framework of the law
iv. Efficient use of resources is secondary matter.
5. 2. Second View
- Mgt & administration are simply
different
terms for describing similar activities.
The words can be used interchangeably
- This view explains that managerial
practices and activities of managing are
generic. i.e. managerial practices in the
private organizations could be transferred
to public organizations and vice versa.
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6. 3. Third View
◦ New changes in management approach that
emerged in the 1980s
◦ Different from traditional ‘public
administration’ and ‘private business mgt’
◦ Led to the new public sector mgt
◦ According to Perry and Kraemer (1983), NPM
merges traditional public administration with
the instrumental orientation of business mgt
◦ NPM addresses the unique nature of public
organizations which come from:
i. The scope and impact of their decisions
ii. Their fundamental political character
7. B. Public Administration
1. Two major areas of importance
– Provision of services
– Enforcement of laws and regulations
The service functions include:
- Maintenance of roads & highways
- Administration of grants and loans
The regulatory functions include:
- Regulation of trade practices (esp. that of restrictive in
nature)
- Enforcement of employment regulations etc.
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8. 2. Meaning of Public Administration
Term is easier to explain than define
Some definitions:
i. “The use of managerial, political and legal
theories and processes to fulfill legislative,
executive and judicial governmental
mandates for the provisions of regulatory
and service functions for the society as a
whole or for some segments of it”
(Kernaghan and Siegel, 199: 6; cf
Rosenbloom, 1986)
9. ii. “the application of organizational decision-
making, and staffing theory and procedures
to public problems” (Kernaghan and Siegel,
199:6; cf Vocino and Rabin, 1981).
iii. “the study and practice of the tasks
associated with the conduct of the
administrative state” (kernaghan and Siegel,
1999:6; cf Richardson and Baldwin, 1976)
iv. “the coordination of individual and group
efforts to carry out public policy”
(Kernaghan and Siegel, 1999: 6; cf Pfiffner
and Presthus, 1967)
10. • 3. Distinguishing Factors in
Administration of Public & Private
Organizations:
• (a) service-versus-profit distinctions
• (b) politicians concerned with winning
public support
• (c) accountability
• (d) human resource management system
• (e) the “public nature” of PA
11. • (a) Service-versus-profit distinctions
– Most commonly cited mission of the PA
• i. bureaucrats assist political executive
• ii. bureaucrats response to the demand of
the public
• Iii. Public organization (PuO) operates less
efficient than private organization
– Raison d'être of private organization is profit
(i.e. its bottom line)
12. – PuO receives money through annual
appropriations from public treasury. Not
worrying about profit. Most government
operations are monopolistic (e.g.. Police), so
public has no choice from competing
organization for the delivery of services.
– PrO – compete efficiently in the market place.
13. – Government provides ‘public good’
• i.e.. Goods that benefit all members of the society
(e.g. national defense & pollution control)
• Public good funded through general tax system
• Benefits – difficult to measure
• Private good (e.g. a packet of cigarette) – based on
‘user pay’
14. (b). Politicians concerned with winning
public support
to win political support politicians often
make decisions that are not efficient in
many respects.
More concerned about what the public
think about their personality & policy
initiatives
Public judged them this way rather than on
how well do they manage their
departments.
15. • (c) Accountability
• one of the major constraints on productive
mgt in the Pu sector (Annual Report of the
Auditor General of Canada, 1993) because
of “the body of administrative regulations
and the conflicting accountability
requirement that limit managerial
authority & autonomy”
16. one factor that hinders efficiency in
government.
in government many factors affecting
accountability:
◦ (a) scale & complexity of the operation
◦ (b) desire for political control of the bureaucracy
◦ (c) search for consistency & coordination
lines of authority & responsibility clearer in
PrO
17. • (d) Human Resource Mgt System
• complicated and rigid (e.g. in job
classification, personal rules and staffing)
• harder to hire & fire
• other things to consider include: ethnicity
(hire not according to merit or technical
proficiency).
18. (e) The ‘Public Nature’ of PA
requires it to be conducted with publicity.
many government deliberations done are
closed doors.
however, compared to PrO, many
governmental decisions are subjected to
public scrutiny.
e.g. construction of a new airport attracts
more attention than the construction of an
industrial plant even though its social &
economic impact may be greater.
19. • THEREFORE – 2 major characteristics
accounting for differences between PuO &
PrO:
• (i) scope & complexity of governmental
activities, and
• (ii) the political environment in which
those activities are conducted.
20. • Kernaghan & Siegel (1999) argue that given
those 2 considerations – “the issue of
whether public or private administration is
more efficient is not the most relevant
concern”. The critical question is “whether
PA is conducted as efficiently as can
reasonably be expected”.
21. Uniqueness of the Public Sector
• Lawton and Rose (1994: 6-7) argue about the
uniqueness of the public sector;
Public Sector organizations not exposed to
competitive world of the market. Hence no incentive
to reduce costs or operate efficiently.
Objectives are usually ill-defined & expressed in
vague terms such as serving the public, maintaining
law and order, reducing inequality, reducing poverty
or improving health.
Strategic planning is difficult because of the short-
terms considerations of politicians.
22. • The PuSector organization is susceptible to
greater and more open accountability with
politicians, pressure groups, taxpayers and
voters all having an interest in the
performance of the PuSector.
• All functions of the PuSector limited by
statutes.
• The PuSector is funded by taxation and not
by charging for its services.
23. • Certain goods have to be provided by the
state. Defense, law and order and street
lighting are consumed collectively and are,
in theory, equally available to all. The
provision of such ‘public goods’ cannot be
left to the vagaries of the market.
24. Role of the State to be Reduced
• Reduced expenditure on the PuServices. This will
allow income tax to be reduced.
• Taking out of state control companies and
industries that are best operated by
PrOrganizations.
• The sales of assets.
• Exposing services to competition.
25. Transition from Public Administration
to Public Management
• Survey conducted by the OECD in its 12 member
countries incl. Finland, Greece, Turkey, the USA
and the UK on the new approach in PuSector
mgt. found out a number of gen. themes
emerging.
• (a) a move away from central government to
more localized forms of government;
• (b) an increasing role for the not-for-profit sector
in the provision of services;
26. • (c) increase in the use of PrSector for delivering
services;
• Central government taking on more strategic
role; and
• Increasing awareness of costs and the need to
examine alternatives to central taxation as the
main revenue.
27. Perception about Administrators and
Managers
Administrators are seen as:
◦ following rules and regulations;
◦ The carrying out of decisions that are taken by others; and
◦ Following routines, bureaucratic, risk-avoiding.
Managers are seen as
◦ Dynamic
◦ Entrepreneurial
◦ Innovative
◦ flexible
28. The Framework of Cooperate
Governance
Governance is the process of directing and
controlling an organization.
Corporate Governance deals with issues about
leadership, stewardship, control, performance
management, accountability and ethics in an
organization.
Until recently, corporate governance is a concept
that is considered to be the preserved of the
PrSector. But the need to adopt this framework
into the public PuSector has been adopted.
29. • Barrett (1999) for example see Corporate Governance as this:
“What we are basically addressing in discussions relating to
the mgt and operation of PuSector organizations, and also
private businesses where they are involved, are ways to
improve organizational performance and accountability.
Good corporate governance is central to this focus… In
particular…on using corporate governance approaches to
improve performance and accountability in the changing
operational framework that is developing with greater
privatization and commercialization of the PuSector
involving PrSector provision of PuServices (sometimes in
competition with the PuSector. It is not an issue about
shifting the goals posts but it is also about playing on a
different surface with different rules”
