Transcript CONTEXT FOR ORGANIZATION THEORY

CONTEXT FOR ORGANIZATION
THEORY
PUA 703-001
DR. SPRINGER
FALL, 2007
KEY QUESTIONS TO ANSWER
THEORY TO PRACTICE. . .
WHAT DO I NEED TO KNOW ABOUT
THIS ORG?
 HOW CAN I FIND OUT?
 HOW CAN I USE THE INFORMATION
THAT I GET?
 MAKING CHOICES
 MAKING SENSE OF WHERE I AM
 WHAT KNOWLEDGE AND HOW TO
APPLY

WHAT IS THE ROLE OF
GOVT?





A NECESSARY
EVIL?
TO SHOW THE
WAY?
TO PROTECT,
PRESERVE,
PROMOTE?
TO MAKE IT
WORK?
TO ENGAGE?
WHY STUDY FORMAL
THEORIES?







USING THEORIES AS BENCHMARKS
QUESTIONS TO ANSWER
ISSUES TO BE CONSIDERED
WHERE WE STAND
THOUGHTFUL RECONSTRUCTION OF HOW
WE SEE THE WORLD AROUND US
EMPHACIZING AND DE-EMPHACIZING
CERTAIN THINGS AND LEAVING SOME OUT
ROLE MODELS
– REPRESENTATION OF REAL LIFE
– MOLECULAR STRUCTURES VS MODEL CARS
BUILDING THEORIES


FROM
PUBLIC ADMINISTRATION AS PART OF THE
GOVERNMENTAL PROCESS


PUBLIC ORGANIZATIONS ARE THE SAME AS
BUSINESS


TO
PUBLIC ADMINISTRATION IS A
PROFESSIONAL FIELD


TO
USUALLY FOCUSING ON
COMPLEX ORGS.
 CARRYING OUT GOVERNMENT MANDATES
BUILDING THEORIES OF PUBLIC
ORGANIZATIONS

PUBLIC ADMINISTRATION AS PART OF
GOVERNMENTAL PROCESS
 GOVT IS LIKE BUSINESS RE: EFFICIENCY
 PUBLIC ADMINISTRATION AS A PROFESSION
 COMPLEX ORGS
– BUREAUCRATIC STRUCTURES
– AUTHORITY RELATIONSHIPS
• PRINCIPAL-AGENT THEORY
– PUBLIC ADMINISTRATION AS GOVT ADMINISTRATION
WITH AMBIGUOUS GOALS
– SERVICE FIRST?
– DEMOCRATIZATION OF ORG DETERMINES
PUBLICNESS OF MGT PROCESSES
STACKING THE DECK
American Pol. Sci. Review, Vol. 81, No. 3
www.jstor.org

SHOULD PUBLIC
MGRS BIAS THE
SEARCH FOR
OPTIONS?
 SHOULD
POLITICIANS
ANTICIPATE AND
CONTROL
SOLUTIONS?
REDEFINING THE FIELD

PROCESS NOT STRUCTURE
 CLARIFY EARLIER PERSPECTIVES
– POLITICAL
– ADMINISTRATIVE
– PROFESSIONAL

PUBLIC NATURE NOT GOVT SYSTEMS
 MANAGING CHANGE PROCESSES IN
PURSUIT OF PUBLICLY DEFINED
SOCIETAL VALUES
REDEFINING THE FIELD

BRINGING TWO PERSPECTIVES
TOGETHER
– DEMOCRATIC POLITICAL THEORY
• FREEDOM, JUSTICE AND EQUALITY
– ORG. THEORIES
• MANAGING CHANGE IN PURSUIT OF PUBLICLY
DEFINED VALUES

CRITICAL ROLE OF PUBLIC MGR
– INTERPERSONAL AND STRUCTURAL
RELATIONSHIPS AND CHANGE
– DESIGN AND IMPLEMENTATION OF SOCIETAL
VALUES
– DEFINING ETHICAL BASIS FOR PUBLIC MGT
WHY STUDY FORMAL
THEORIES?
PROVIDE A BENCHMARK
 MORE COHERENT AND
INTEGRATED UNDERSTANDING
 MORE THAN SIMPLE OBSERVATION
–CONTEXT
 MODELS AS A REP. OR REAL LIFE

– LIKE MODEL CARS

LANGUAGE
– SAID, UNSAID, SAID NEXT
INSIDE FORCES ON A
PUBLIC AGENCY MANAGER
MORALE
EMPLOYEE/UNION
DEMANDS
AGENCY
BUDGET
CONSTRAINTS
AGENCY
HEAD
OR
MANAGER
HEAD
OR
MANAGER
PROFESSIONAL
ASSOCIATIONS.
DEMANDS
OF UNITS
NEED TO MAINTAIN OR INCREASE PRODUCTIVITY
TWO CASES: EFFICIENCY VS.
EFFECTIVENESS?

KEN WELCH AS AN INTERN STUDIES THE
RECRUITMENT PROCESS AND GETS TO
KNOW RICK, TIM AND THE DIRECTOR
– WHAT MOTIVATES EACH?
– HOW DID HE COME TO UNDERSTAND
THE BUREAUCRACY?
– WHAT COMMUNICATION PATTERNS?
– WHAT ROLE ACQUISITION OF
KNOWLEDGE?
– HOW TO COPE WITH OR DIRECT ORG
CHANGE?
TWO CASES: EFFICIENCY VS.
EFFECTIVENESS?

JOHN AND CAROL TAKE OVER A
NEW HOUSING-LOAN PROGRAM
AND DISAGREE ON APPLICATION
PROCESSING
– CUT RED TAPE OR EDUCATE?
– HOW DOES WHERE THEY SIT
DEFINE WHERE THEY STAND?
THE POLITICAL & CULTURAL
ENVIRONMENT OF PUBLIC POLICY &
IT’S ADMINISTRATION

WHAT IS PUBLIC POLICY
– Public Policymaking in a Republic
– Executive Powers
• The Restricted View
– Wm. Taft and Strict Constructionism
• The Prerogative Theory
– John Locke and Executive Privilege
• The Stewardship Theory
– T. Roosevelt and Actions in the Public Interest
THE POLITICAL & CULTURAL
ENVIRONMENT OF PUBLIC POLICY &
ITS ADMINISTRATION

THE POLICY MAKING PROGRESS
– Agenda Setting
• Process of ideas bubbling up for consideration
• Anthony Downs – Preproblem, Alarmed Discovery,
Recognition, Decline of Public Interest, Post Problem
Phase
– Decision Making
• Rational
• Intelligence, Recommending, Prescribing, Invoking,
Application, Appraisal, and Terminating Phases
– Implementation – small decisions at the margin
• Seven Reasons for Incrementalism
– Evaluation
– Feedback
RATIONAL ACCORDING TO
HERMAN SIMON
1958

MAKING OPTIMAL CHOICES IN
HIGHLY SPECIFIED ENVIRONMENT
– IDENTIFYING ALTERNATIVES A GIVEN
– CONSEQUENCES FOR EACH
• CERTAINTY, RISK, AND UNCERTAINTY
– DECISIONMAKER CAN RANK CHOICES
BASED UPON CONSEQUENCES
– GOOD SELECTION POSSIBLE
– MINIMAX RISK=MAXIMUM BENEFIT AND
MINIMUM CONSEQUENCE
THE POLITICAL & CULTURAL
ENVIRONMENT OF PUBLIC POLICY &
ITS ADMINISTRATION

POWER--THE EXTERNAL
PERSPECTIVE
– Pluralism
• Assuming the shifting of power within a
democracy
– Group Theory
• Madison – Federalist Paper #10
• Interest Groups Will Be Heard and Can Be
Managed
– Organizational Goals
– Internal Power Relationships
THE POLITICAL & CULTURAL
ENVIRONMENT OF PUBLIC POLICY &
ITS ADMINISTRATION

THE CULTURES OF PUBLIC
ADMINISTRATION
– The Outside Cultural Environment
– The Inside Cultural Environment
– Professional Socialization
– Symbolic Management
THE EVOLUTION OF
ORGANIZATIONAL AND
MANAGEMENT THEORY
From Moses Meets a
Management Consultant to New
Public Management
A CHRONOLOGY
400 B.C. SOCRATES – MGT IS AN ART UNTO ITSELF
 360 B.C. ARISTOTLE – CULTURAL CONTEXT
 1776
ADAM SMITH – OPTIMAL ORGANIZATION
OF PIN FACTOR
 1813
ROBERT OWEN – EMPLOYEES ARE VITAL
MACHINES
 1910
LOUIS BRANDEIS AND FREDERICK
TAYLOR - SCIENTIFIC MANAGEMENT
 1922
MAX WEBER –BUREAUCRACY AS A
STRUCTURE

A CHRONOLOGY
1937
GULICK’S POSDCORB
 1940
MERTON AND THE DYSFUNCTIONS OF
BUREAUCRACY
 1946
SIMON ATTACKS THE PRINCIPLES
APPROACH
 1948
WALDO ATTACKS THE GOSPEL OF
EFFICIENCY
 1949
SELNICK AND TVA’S COOPTATION
 1954
DRUCKER AND MANAGEMENT BY
OBJECTIVES
 1957
ARGYRIS AND THE CONFLICT
BETWEEN PERSONALITY AND THE
ORGANIZATION

A CHRONOLOGY

1961
THOMPSON FINDS
DYSFUNCTION DUE TO ABILITY VS AUTHORITY
 1962
PRESTHUS’ UPWARDMOBILES,
INDIFFERENTS AND AMBIVALENTS
 1964
CROZIER – BUREAUCRACY AS
AN ORGANIZATION THAT CANNOT LEARN FROM
ERRORS
 1966
BENNIS PROCLAIMS DEATH TO
BUREAUCRATIC INSTITUTIONS
 1968
HERZBERG – MOTIVATORS,
SATISFIERS AND HYGIENE FACTORS
 1972
CLEVELAND – CONTINUOUS
IMPROVISATION IS REQUIRED
 1976
MACCOBY AND THE
GAMESMAN
 1981
PFEFFER – POWER IN
ORGANIZATIONS
A CHRONOLOGY

1983
ROSABETH MOSS KANTER AND
THE CHANGEMASTER
 1988
ZUBOFF AND THE AGE OF THE
SMART MACHINE
 1990
GAGLIARDI AND SYMBOLS AND
ARTIFACTS
 1992
OSBORNE AND GAEBLER REINVENT GOVERNMENT
 1997
VIRTUAL ORGANIZATIONS AND
BEYOND
 2000
SNOOK ANALYZES SYSTEMIC
BREAKDOWN IN FRIENDLY FIRE
 2002
PERROW AND ORGANIZING AMERICA:
WEALTH, POWER AND ORIGINS OF CORPORATE
CAPITALISM
MOSES CREATES FIRST
BUREAUCRACY
JETHRO – INSTEAD OF
COUNSELING EVERYONE –
TEACHING ORDINANCES AND LAWS
SO THEY FIND THEIR OWN WAY
USING BASIC PRINCIPLES
 HAVING TO DEAL WITH ONLY THE
HARD CHOICES

EIGHT DEFINITIONS OF
ORGANIZATION

WEBER
– OBEY ORDERS

WALDO
– STRUCTURE OF INTER-RELATIONS

BARNARD
– CONSCIOUSLY COORDINATED
ACTIVITIES

SELZNICK
– STRUCTURAL EXPRESSION OF
RATIONAL ACTION
EIGHT DEFINITIONS OF
ORGANIZATION

KATZ AND KAHN
– ENERGETIC AND INTERDEPENDENT INPUTSOUTPUTS

SILVERMAN
– SOCIAL INSTITUTIONS WITH SPECIAL
CHARACTERISTICS AND LEGITIMACY
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COHEN, MARCH, OLSEN
– COLLECTION OF ISSUES LOOKING FOR
RESOLUTION AND DECISION MAKERS
LOOKING FOR WORK
BRINGING THEORIES INTO
PERSPECTIVE
DOMINANT METAPHORS
 PRIMARY UNITS OF ANALYSIS
 RELATION OF INDIVIDUAL TO ORG.
 MEANING OF RATIONALITY
 PRIMARY VALUES EMBODIES IN
THEORITICAL PERSPECTIVES
 “GENERIC” NO DIFFERENCE
BETWEEN PUBLIC AND PRIVATE
SECTOR THEORIES???

THREE ARENAS OF PUBLIC
ORGANIZATION

INTER-ORGANIZATIONAL
– PUBLIC ADMINISTRATOR ACTS AS AGENT

INTRA-ORGANIZATIONAL
– PUBLIC ADMINISTRATOR HAS A PLACE IN
THE ORGANIZATION

ORGANIZATION TO INDIVIDUAL
– INTERACTIONS WITH INDIVIDUALS INSIDE
AND OUTSIDE AND DISCRETION
BUREAUCRACY ACCORDING TO
MAX WEBER
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1. FIXED AND OFFICIAL JURISDICTIONAL
AREAS DEFINED BY REGULATIONS
2. AUTHORITY AND SUPERVISION
3. WRITTEN AND PRESERVED FILES
4. EXPERT TRAINING IS ASSUMED
5. OFFICIAL ACTIVITY DEMANDS AND
RECEIVES FULL CAPACITY
6. MANAGEMENT FOLLOWS STABLE,
COMPLETE AND UNDERSTANDABLE
RULES
POSTURE OF THE OFFICIAL
ACCORDING TO WEBER
OFFICE HOLDING IS A VOCATION
 SOCIAL ESTEEM
 APPOINTED BY LEGITIMATE
AUTHORITY
 TENURE FOR LIFE
 COMPENSATION AND PENSION
 SET FOR A CAREER WITHIN
HIERARCHY OF PUBLIC SERVICE

THE EVOLUTION OF MANAGEMENT
& ORGANIZATION THEORY

THE ORGINS OF PUBLIC MANAGEMENT
–
–
–
–
–
–
The Continuing Influence of Ancient Rome
The Military Heritage of Public Administration
Comparing Military & Civilian Principles
The Principles Approach
The Cross-Fertilization of Military & Civilian
Management
THE EVOLUTION OF MANAGEMENT
& ORGANIZATION THEORY

Key Concepts
– Merit system
– Public Works
– Police
– Commander in Chief
– Span of Control
– Unity of Command
THE EVOLUTION OF MANAGEMENT
& ORGANIZATION THEORY

WHAT IS ORGANIZATION THEORY?
– Classical Organization Theory
•
•
•
•
Production related and economic goals
Systematic Organization
Division of Labor
People Act Rationally
– Adam Smith and the Pin Factory
• Laissez-faire capitalism
THE EVOLUTION OF MANAGEMENT
& ORGANIZATION THEORY

THE ORGINS OF SCIENTIFIC MANAGEMENT
– Frederick W. Taylor
•
•
•
•
Time and Motion, Measuring Management
Worker Development
Worker Cooperation
Division of Work
– Fayol’s General Theory of Management
• Six Principles – technical, commercial,
financial, security, accounting, management
FREDERICK TAYLOR
PRINCIPLES OF SCIENTIFIC MGT.DECEMBER, 1916
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RESTRICTING WORKER OUTPUT HURTS THE
WORKER
PRACTICE PRECEDES THEORY
GOODWILL IS CREATED AMONG WORKERS
WORKERS ASSUME NEW BURDENS
VOLUNTARILY
THE SCIENCE OF SHOVELING AT
BETHLEHEM STEEL
COSTS MONEY AND JUSTIFIES PROFIT
MR. BARTH INCREASING WORK 2-3 TIMES
THROUGH ANALYSIS
FREDERICK TAYLOR
PRINCIPLES OF SCIENTIFIC MGT.DECEMBER, 1916

1ST PRINCIPLE: LEARNING THE SCIENCE
OF WORK BY STUDYING MOTION AND
TIME ON THE JOB
 2ND PRINCIPLE – SELECT AND DEVELOP
WORKMEN
 3RD PRINCIPLE – BRINGING SCIENCE
TOGETHER WITH TRAINED WORKERS
 4TH PRINCIPLE – DIVIDING WORK
BETWEEN WORKERS AND MGT.
FAYOL’S PRINCIPLES OF
MANAGEMENT
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


DIVISION OF WORK
AUTHORITY AND RESPONSIBILITY
DISCIPLINE
UNIT OF COMMAND
UNITY OF DIRECTION
SUBORDINATION OF INDIVIDUAL TO
GENERAL INTEREST
REMUNERATION OF PERSONNEL
CENTRALIZATION
FAYOL’S PRINCIPLES OF
MANAGEMENT
CLEAR LINE OF AUTHORITY
 ORDER
 EUITY
 STABILITY OF TENURE OF
PERSONNEL
 INITIATIVE
 ESPRIT DE CORPS

THE EVOLUTION OF MANAGEMENT
& ORGANIZATION THEORY
• THE PERIOD OF ORTHODOXY- between
the wars
• Paul Appleby’s Polemic
– Govt is different because Govt is Politics
• Luther Gulick’s POSDCORB
POSDCORB AS AN ORGANIZING
PHILOSPHY
PRIMARY ACTIVITIES OF THE
EXECUTIVE
 CONSEQUENCE:

– EMPHACIZING MEANS OF
ADMINISTRATION NOT PURPOSE
– DICHOTOMY BETWEEN POLITICS AND
ADMINISTRATION
– EFFICIENCY OF WORK IS IMPORTANT
THRU DIVISION OF LABOR
POSDCORB AS AN ORGANIZING
PHILOSPHY
PLANNING
 ORGANIZING
 STAFFING
 DIRECTING
 COORDINATING
 REPORTING
 BUDGETING

FOUR VIEWS OF ORGANIZATION
DETERMINISTIC

VOLUNTARISTIC
MACRO LEVEL
NATURAL SELECTION
COLLECTIVE ACTION VIEW
SYSTEM STRUCTURAL
VIEW
MICRO LEVEL
STRATEGIC CHOICE
FOUR BUREAUCRATIC POSTURES
TOWARD A COMPOSITE
APPROACH

APPROACH
 FORM
 SCOPE
 COVERAGE
 MOTIVE OR VALUES
 ORIGINS
 NET IMPACT ON PUBLIC INTEREST
 NET IMPACT ON PERFORMANCE

WEBERIAN OR RESPONSIBLE
 REPRESENTATIVE
 PUBLIC SERVICE
 PUBLIC CHOICE
ADMINISTRATIVE
DECISION-MAKING



DECISION MAKING: CHOICES
EFFICIENCY VS. EFFECTIVENESS
PRODUCTIVITY
– WEBER – LEGAL/RATIONAL (INSTRUMENTAL)
AUTHORITY

RIGHTS AND THE ADEQUACY OF
PROCESS
– PUBLIC WELFARE ADMINISTRATORS AND
THEIR CLIENTS

REPRESENTATION AND CONTROL OF
DISCRETION
– ROLE OF MORAL OBLIGATION/CODES OF
ETHICS
WHAT DOES PUBLIC
ADMINISTRATION DEAL
WITH?

DECISIONS THAT
– AFFECT PEOPLE’S LIVES
– ARE MADE IN THE NAME OF THE
PUBLIC
– USE PUBLIC RESOURCES
TAME AND WICKED PROBLEMS
 PERSONAL VS. ORGANIZATIONAL
ACTION

FOUR QUESTIONS TO THINK
ABOUT. . .

WHAT IS THE PUBLIC ADMINISTRATION
FRAMEWORK?
 WHAT ARE THE THEORIES THAT APPLY
TO ORGANIZATIONAL BEHAVIOR?
 HOW WOULD YOU DEFINE
ORGANIZATIONAL THEORY?
 COMPARE AND CONTRAST CLASSICAL
AND NEOCLASSICAL APPROACHES TO
ORGANIZATIONAL BEHAVIOR
DONALD RUMSFELD AND
PRISONER ABUSE AT ABU
GHRAIB - 2004

AS A TRUSTED OUTSIDER AND
ADVISOR TO RUMSFELD
– WHAT FACTORS BROUGHT THIS TO
CRISIS?
– TO WHOM AND FOR WHAT IS
RUMSFELD MOST RESPONSIBLE?
– WHAT STEPS TO TAKE TO ADDRESS
AND RESOLVE THE CRISIS?
– WHAT ARE THE LESSONS LEARNED?
MOVING FROM
CLASSICAL ON. . .

INDUSTRIAL REVOLUTION
– EFFICIENCY AND EFFECTIVENESS






ORGANIZATION BY DECISION SETS
ORGANIZATIONS AS PURPOSIVE
ENTITIES
INTEGRATING INDIVIDUALS
ORGANIZING AS REVEALED SELFINTEREST
ORGANIZING AS SOCIAL ACTION
OGANIZING AS DISCOVERED
RATIONALITY
SUPERINTENDENT’S REPORT

1856 – ERIE RAILROAD COMPANY
SETTLED PRINCIPLES
 DIVISION OF RESPONSIBILITIES
 POWER TO CARRY OUT
 MEANS OF MEASUREMENT
 PROMPT REPORT OF ERRORS SO
CORRECTED
 DAILY REPORTS, CHECKS AND BALANCES
 ADOPTION OF SYSTEM TO ALLOW
GENERAL SUPERINTENDENT TO DETECT
AND CORRECT ERRORS IMMEDIATELY
THE ENGINEER AS AN
ECONOMIST

SEPARATE FROM THE AMERICAN
SOCIETY OF MECHANICAL ENGINEERS
 SHOP MANAGEMENT
– ORG. , RESPONSIBILITY, REPORTS, SYSTEMS
OF WORK, EXECUTIVE MANAGEMENT

SHOP ACCOUNTING
– TIME, WAGES, COSTS, BOOKKEEPING,
EXPENSES, RECORDS OF RESULTS AND
PROFITS
CLASSICAL SCHOOL
1930’S AND INFLUENTIAL TODAY

1. ORGS EXIST TO ACCOMPLISH
PRODUCTION RELATED GOALS
 2. ONE BEST WAY TO ORGANIZE
 3. PRODUCTION IS MAXIMIZED THROUGH
SPECIALIZATION AND DIVISION OF
LABOR
 4. PEOPLE AND ORGANIZATIONS ACT IN
ACCORDANCE WITH RATIONAL
ECONOMIC PRINCIPLES
THE ECONOMY OF INCENTIVES
CHESTER BARNARD - 1938

SPECIAL INDUCEMENTS FOR PRODUCTIVITY
– MATERIAL
– PERSONAL DEVELOPMENT
– WORKING CONDITIONS
– IDEAL BENEFACTIONS
• SATISY PERSONAL IDEALS RELATED TO FUTURE
AND ALTRUISM
– ORGANIZATION ATTRACTIVENESS

INCENTIVES DIFFER BY ORG. PURPOSE
– INDUSTRIAL – PRODUCTION OF MATERIAL GOODS +
LIMITED MATERIAL REWARDS
– POLITICAL – PERSONAL PRESTIGE/MATERIAL
REWARDS IMPORTANT TO IDEAL BENEFACTIONS
– RELIGIOUS – FAITH/LOYALTY MADE POSSIBLE BY
MATERIAL CONTRIBUTIONS
BUREAUCRATIC STRUCTURE
AND PERSONALITY
ROBERT MERTON - 1957

THE DYSFUNCTIONS OF BUREAUCRACY
–
–
–
–
–
–
SECRECY
OCCUPATIONAL PSYCHOSIS
OVERCONFORMITY
SECULAR AND SACRED DIVISION OF LABOR
DEPERSONALIZATION
DISCREPANCY BETWEEN IDEOLOGY AND
FACT
• SERVANTS OF THE PEOPLE?
– QUESTIONS TO BE ANSWERED
• PRESTIGE SYMBOLS TO INNER CIRCLE?
THE EVOLUTION OF MANAGEMENT
& ORGANIZATION THEORY

“MODERN” STRUCTURAL
ORGANIZATION THEORY
– Talcott-Parsons 1951
– Social Systems vs. Political Organizations
– Basic Assumptions
•
•
•
•
ORGANIZATIONS ARE RATIONAL
BEST STRUCTURES
DIVISION OF LABOR
PROBLEMS ARE STRUCTURAL
– Mechanisms and Organic Systems
THE EVOLUTION OF MANAGEMENT
& ORGANIZATION THEORY
NEOCLASSICAL ORGANIZATION
THEORY- 1776 TO 1937
 ORGANIZATIONS DO NOT EXIST AS
ISLAND

– Herbert Simon’s Influence
• SATISFICING
• BOUNDED RATIONALITY
– The Impact of Sociology
• SELZNIK – GOALS AND VALUES NOT
NECESSARILY ALIGNED
• OPENING UP ORGANIZATIONS
ORGANIZATIONS AS
NON-RATIONAL INSTITUTIONS
SELSNICK - 1948

ORGANIZATIONS AS ECONOMIES
 ORGANIZATIONS AS ADAPTIVE SOCIAL
SYSTEMS
 STRUCTURAL-FUNCTIONAL ANALYSIS
– SECURITY, STABILITY CONTINUITY,
RECALCITRANCE, HOMOGENEITY OF
OUTLOOK

CO-OPTATION
– PROCESS OF ABSORBING NEW ELEMENTS
AS A MEANS OF AVERTING THREATS
ORGANIZATIONS AS A
COLLECTION OF BEHAVIORS
Cyert & March -1959

COALITIONS
– OBJECTIVES SET THRU BARGAINING,
INTERNAL CONTROLS AND ADJUSTING TO
EXPERIENCE
– EXAMPLE: COMMITTEE AND PAINTING
– PREDICTIVE THEORY
•
•
•
•
•
•
DEMANDS AND PROBLEMS FOR MEMBERS
TOOL TO CHANGE DEMAND OVER TIME
ATTENTION-FOCUS TOOL FOR DEMANDS
ATTENTION-FOCUS TOOL FOR PROBLEMS
DEMAND EVALUATION PROCEDURE
TOOL FOR CHOOSING AMONG VIABLE COALITIONS
THE EVOLUTION OF MANAGEMENT
& ORGANIZATION THEORY

SYSTEMS THEORY
– SYSTEMS ANALYSIS-RIGOROUS COLLECTION,
MANIPULATION AND EVALUATION OF DATA TO
MAKE GOOD DECISIONS
– CYBERNETICS – ADAPTIVE SYSTEMS REQUIRING
MULTI-DISCIPLINARY APPROACHES
– THE LEARNING ORGANIZATION-PERSONAL
MASTERY, MENTAL MODELS, SHARED VISION,
TEAM LEARNING, SYSTEMS THINKING
THE EVOLUTION OF MANAGEMENT
& ORGANIZATION THEORY

THE ORGINS OF PUBLIC MANAGEMENT
–
–
–
–
–
The Continuing Influence of Ancient Rome
The Military Heritage of Public Administration
Comparing Military & Civilian Principles
The Principles Approach
The Cross-Fertilization of Military & Civilian
Management
NEO-CLASSICAL:
ORGANIZATIONS AS DECISION
SETS

FROM SYSTEM, HIERARCHY,
STRUCTURE TO NEO-CLASSICAL:
– HUMAN ANALYSIS
– DECISIONMAKERS
– SERIES OF CHOICES
– RATIONAL LINKAGES
– BOUNDED BY ORGANIZATIONAL
PURPOSE
FAYOL’S FOURTEEN
PRINCIPLES

PRINCIPLES APPLY DIFFERENTLY IN
DIFFERENT SITUATIONS
 ADMINISTRATION: TO BRING A BETTER,
ORDERED LIFE FOR THE ORGANIZATION
AND THOSE WORKING IN IT
– SUBORDINATION OF INDIVIDUAL INTERESTS
TO COMMON GOOD
– HIERARCHY
– CENTRALIZATION
– UNITY OF COMMAND AND MANAGEMENT
FAYOL’S PRINCIPLES OF
MANAGEMENT-1916







DIVISION OF WORK
AUTHORITY AND RESPONSIBILITY
DISCIPLINE
UNIT OF COMMAND
UNITY OF DIRECTION
SUBORDINATION OF INDIVIDUAL TO GENERAL
INTEREST
REMUNERATION OF PERSONNEL
– JOB, PIECE, BONUSES, PROFIT SHARING, PAYMENT IN
KIND, WELFARE WORK, NON-FINANCIAL INCENTIVES

CENTRALIZATION – ALWAYS THERE JUST
QUESTION OF PROPORTION
FAYOL’S PRINCIPLES OF
MANAGEMENT
SCALAR CHAIN: CLEAR LINE OF
AUTHORITY
 ORDER
 EQUITY
 STABILITY OF TENURE OF
PERSONNEL
 INITIATIVE
 ESPRIT DE CORPS

CONSEQUENCES OF POSDCORB
LUTHER GULICK
WILSONIAN CONTEXT: ACHIEVING
MEANS WITHIN A DEMOCRACY
 EMPHASIS ON DIVISION OF WORK
 ORGANIZATION AS A TECHNICAL
PROBLEM
 CENTRALITY OF EFFICIENCY

KEY TERMS

SATISFICING: LIMITS TO DECISION MAKING
 RATIONAL MAN: ANALYZES COMPLEXITIES AND
MAXIMIZES CHOOSING BEST ALTERNATIVE
 BOUNDED RATIONALITY: LIMITING
ADMIISTRATIVE RATIONALITY DUE TO
– COMPLETE KNOWLEDGE OF
CONSEQUENCES
– FUTURE MUST BE ANTICIPATED
– ALTERNATIVE BEHAVIORS LIMITED
– ORGANIZATIONAL SETTING
– PSYCHOLOGICAL STATE
• NARROW INTERPRETATION
KEY TERMS







INSTRUMENTAL RATIONALITY – SUBJECTIVE
MEANS-END REASONING
DECISION – CONCLUSION DRAWN FROM SET OF
VALUE AND FACTUAL PREMISES
EFFICIENCY –MAXIMIZE ATTAINMENT OF CERTAIN
ENDS WITH SCARCE RESOURCES
EFFECTIVENESS-ACCOMPLISHING ORG
OBJECTIVES AND OVERALL PERFORMANCE
PUBLIC PROBLEMS – EXTRA-ORGANIZATIONAL
AUTHORITY –POWER TO MAKE DECISIONS WHICH
GUIDE THE ACTIONS OF ANOTHER
COORDINATION – THE PRINCIPLES OF
ORGANIZATIONS IN TOTO OPERATING THRU A
SUPERME COORDINATING AUTHORITY (URWICK)
SIMON’S ACCEPTED
ADMINISTRATIVE PRINCIPLES

ADMIN. EFFICIENCY INCREASED BY:
– SPECIALIZATION OF THE TASK
– ARRANGING MEMBERS IN DETERMINATE
HIERARCH OF AUTHORITY
– LIMITING SPAN OF CONTROL TO A SMALL
NUMBER
– GROUPING WORKERS ACCORDING TO
PURPOSE, PROCESS, CLIENTELE AND PLACE

KNOWLEDGE IS NEUTRAL
– VALUES OF USER APPLY

TEHCNOLOGY IS APPLIED KNOWLEDGE
AND NEUTRAL
RATIONAL ACCORDING TO HERMAN
SIMON
1958

MAKING OPTIMAL CHOICES IN HIGHLY
SPECIFIED ENVIRONMENT
– IDENTIFYING ALTERNATIVES A GIVEN
– CONSEQUENCES FOR EACH
• CERTAINTY, RISK, AND UNCERTAINTY
– DECISIONMAKER CAN RANK CHOICES BASED
UPON CONSEQUENCES
– GOOD SELECTION POSSIBLE
– MINIMAX RISK=MAXIMUM BENEFIT AND
MINIMUM CONSEQUENCE
HERBERT SIMON’S
ACCEPTED ADMINISTRATIVE
PRINCIPLES


EFFICIENCY IS INCREASED BY
1. SPECIALIZATION
2. GROUP IN HIERARCHY
3. LIMITING SPAN OF CONTROL
4. ORGANIZING ACCORDING TO PURPOSE,
PROCESS, CLIENTELE AND PLACE

OVERHAULING THE PROVERBS NOT
PRINCIPLES OF ADMINISTRATION
1. DEVELOP A VOCABULARY
2. STUDY THE LIMITS OF RATIONALITY
DECISION-SET
CHARACTERISTICS

DECISION MAKING IS FOCAL POINT OF
ADMINISTRATION
– MAKING DECISIONS, ANALYSIS, PRIORITIZING,
COMMUNICATION

CORE MODE OF OPERATION IS
INSTRUMENTAL RATIONALITY
 EFFICIENCY AS A MEASURE
 ROLES MORE IMPORTANT THAN
INDIVIDUALS
 WHAT ROLE REPRESENTATION AND
CONTROL OF DISCRETION??
OPEN SYSTEMS AND SYSTEM
MANAGEMENT
OPEN SYSTEMS – ANY ORGANIZATION
THAT INTERACTS WITH ITS
ENVIRONMENT
 STRUCTURAL/FUNCTIONALISM – ORGS
EXPLAINED IN TERMS OF
CONTRIBUTION TO MAINTAINING THE
SYSTEM
 SYSTEMS THEORY – DYNAMIC
RELATIONSHIPS OF INPUTS,
PROCESSES, OUTPUTS, FEEDBACK
LOOPS, ENVIRONMENT

NEO-CLASSICAL APPROACHES
WHAT ARE THE DISTINGUISHING
CHARACTERISTICS?
 WHERE DO INDIVIDUAL EMPLOYEES
FIT?
 ARE THEY ALL THE SAME?
 WHAT DO THEY MISS?
 HOW WOULD THEY ADDRESS THE
LOCAL EDUCATION AUTHORITY ALES
RAKOVICH’S DILEMMA?

HUMAN RESOURCE THEORY
PRINCIPLES
ORGANIZATIONS EXIST TO SERVE
HUMAN NEEDS
 ORGANIZATIONS AND PEOPLE
NEED ONE ANOTHER
 WHEN THE FIT IS POOR, ONE OR
BOTH SUFFER
 A GOOD FIT BENEFITS BOTH

HUMAN RESOURCE THEMES
LEADERSHIP
 MOTIVATION
 INDIVIDUALS IN TEAMS AND
GROUPS
 EFFECTS OF WORK ENVIRONMENT
 USE OF POWER AND INFLUENCE
 ORGANIZATIONAL CHANGE

HUMAN RESOURCE THEORY







MUNSTERBERG – FINDING AND SHAPING
PEOPLE TO FIT NEEDS
PEOPLE, GROUPS, RELATIONSHIPS AND
ORG ENVIRONMENT
HAWTHORNE EXPERIMENTS
MASLOW’S THEORY
THEORY X & THEORY Y
MAXIMUM INFORMATION AND INFORMED
DECISIONS (ARGYRIS, 1970)
GROUPTHINK (JANIS, 1971)
WHAT ROLE LEADERSHIP?

MANAGER
– FORMAL AUTHORITY

LEADER
– EFFECTIVE USE OF INFLUENCE
– RELATIONSHIP BETWEEN PEOPLE
WHERE INFLUENCE IS UNEVENLY
DIVIDED
– CANNOT FUNCTION IN ISOLATION
ESSENTIAL FUNCTIONS OF
LEADERS AS EXECUTIVES
CHESTER BARNARD - 1938
PROVIDE SYSTEM OF
COMMUNICATION
 PROMOTE THE SECURING OF
ESSENTIAL EFFORTS
 TO FORMULATE AND DEFINE THE
PURPOSES AND GOALS OF AN
ORGANIZATION

LEADERSHIP APPROACHES

TRAIT
– LEADERS ARE BORN NOT MADE
• PERSONALITY CHARACTERISTIC
– TRANSACTIONAL
• BASED ON AN INTERACTIONS
• FOCUS ON THE LEADER AND ON SUBORDINATES
– CONTINGENCY OR SITUATIONAL
• PARTICIPATORY LEADERSHIP
• LAW OF THE SITUATION
• CONTINUUM FROM BOSS-CENTERED TO
SUBORDINATE -CENTERED
– CULTURAL AND TRANSFORMATIVE
• CHANGING CULTURAL ASSUMPTIONS
– WHERE TO FROM HERE?
LIFE CYCLE OF LEADERSHIP

THE MANAGERIAL GRID
– CONSIDERATION VS INITIATING STRUCTURE
– TEAM MANAGEMENT VS IMPOVERISHED
– ADDING AN EFFECTIVENESS GRID

MOVING FROM
– HIGH TASK LOW RELATIONSHIP TO HIGH ASK HIGH
RELATIONSHIPS
– LOW HIGH RELATIONSHIPS LOW TASK TO LOW TASK
LOW RELATIONSHIPS


LIKERT – EMPLOYEE CENTERED
DIFFICULTIES
– CHANGING STYLE
– CHANGING PERFORMANCE
CONTINGENCY THEORY
SELECTION AND TRAINING OF
LEADERS
 CO-ACTING TASK GROUPS
 ADMINISTRATIVE AND
SUPERVISORY STRATEGIES
 MOVING FROM NOVEL TO FAMILIAR
 STRUCTURED SITUATIONS VS.
CRISES

CALLING FOR
TRANSFORMATIONAL LEADERS
TICHY AND ULRICH

ASSUMPTIONS
– TRIGGER EVENTS INDICATE CHANGE IS
NEEDED
– A CHANGE UNLEASHES MIXED FEELINGS
– QUICK FIX LEADERSHIP LEADS TO DECLINE
– REVITALIZATION REQUIRES
TRANSFORMATIONAL LEADERSHIP
• VISION
• MOBILIZATION OF COMMITMENT
• INSTITUTIONALIZATION OF CHANGE
PHASES OF CHANGE

THREE-PHASE PROCESS
– ENDINGS
– NEUTRAL
– NEW BEGINNINGS

QUALITIES OF THE LEADER
– EQUITY, POWER, FREEDOM AND DYNAMICS
OF DECISIONMAKING, TOUGHNESS,
SEIZING OPPORTUNITIES

CORPORATE CULTURE PROVIDES A
WAY OF UNDERSTANDING + MEANING
ROLES OF LEADERSHIP IN
STRATEGY FORMULATION
ED SCHEIN






PERCEIVE WHAT IS HAPPENING IN
ENVIRONMENT
INFORMATION THAT MOTIVATES
CHANGE
VISION FOR PSYCHOLOGICAL SAFETY
ACKNOWLEDE UNCERTAINTY
ACKNOWLEDGE ERROS IN THE
LEARNING PROCESS
MANAGE THE PHASES OF CHANGE
LEARNING LEADERS
ED SCHEIN






PERCEPTION AND INSIGHT
MOTIVATION
EMOTIONAL STRENGTH
ABILITY TO CHANGE THE CULTURAL
ASSUMPTIONS
ABILITY TO CREATE INVOLVEMENT AND
PARTICIPATION
ABILITY TO LEARN A NEW CULTURE
EMOTIONAL INTELLIGENCE
MAKES A LEADER
DANIEL GOLEMAN





SELF-AWARENESS
SELF-REGULATION
MOTIVATION
EMPATHY
SOCIAL SKILL
LEADERS , DOUBT AND
SENSEMAKING
KARL WEICK

THE VALUE OF
UNCERTAINTY
 LEADING BY
COMPASS
–
–
–
–
–
ANIMATION
IMPOVISATION
LIGHTNESS
AUTHENTICATION
LEARNING
EFFICACY AND EFFECTIVENESS
MARTIN CHEMERS

THE ROLE OF INTELLIGENCE
 FUNCTIONAL LEADERSHIP
–
–
–
–
IMAGE MANAGEMENT
RELATIONSHIP DEVELOPMENT
RESOURCE DEVELOPMENT
TRANSFORMATIONAL – TRANSCEND AND TRANSFORM
• WEBER’S CHARISMATIC


SELF EFFICACY
FOUR TYPES OF EMOTIONAL INTELLIGENCE
–
–
–
–
TO FACIITATE THINKING
TO UNDERSTAND OWN EMOTIONS
EMPATHY
REGULATION OF SELF TO CONTROL AND PROMOTE
PERSONAL GROWTH
FROM OLD PUBLIC
ADMINISTRATION TO PUBLIC
SERVICE









FOUNDATIONS
HUMAN BEHAVIOR
PUBLIC INTEREST
RESPONSIVENESS
MECHANISMS
ACCOUNTABILITY
ADMINISTRATIVE DISCRETION
ASSUMED ORGANIZATIONAL STRUCTURE
ASSUMED MOTIVATION BY PUBLIC
ADMINISTRATORS AND SERVANTS
SERVING CITIZENS NOT CUSTOMERS




CIVIC VIRTUE AND DEMOCRATIC CITIZENSHIP
THEORIES OF CITIZENSHIP
THE ROLE OF THE CITIZEN
BUILDING CITIZEN INVOLVEMENT
– FIVE TENETS



PUBLIC SERVICE AS AN EXTENSION OF
CITIZENSHIP
NEW PUBLIC MANAGEMENT AND CUSTOMER
SATISFACTION
NEW PUBLIC SERVICE AND QUALITY CITIZEN
SERVICE
ACCOUNTABILITY ISN’T SIMPLE
WHAT ARE WE RESPONSIBLE FOR?
 TO WHOM ARE WE ACCOUNTABLE?
 BY WHAT MEANS WILL WE ACHIEVE
OUTCOMES AND BE ACCOUNTABLE
FOR THEM?

SERVING CITIZENS NOT CUSTOMERS




CIVIC VIRTUE AND DEMOCRATIC CITIZENSHIP
THEORIES OF CITIZENSHIP
THE ROLE OF THE CITIZEN
BUILDING CITIZEN INVOLVEMENT
– FIVE TENETS



PUBLIC SERVICE AS AN EXTENSION OF
CITIZENSHIP
NEW PUBLIC MANAGEMENT AND CUSTOMER
SATISFACTION
NEW PUBLIC SERVICE AND QUALITY CITIZEN
SERVICE
BUILDING CITIZEN
INVOLVEMENT

ACHIEVE BEST
POLITICAL
OUTCOMES
 SATISFY INTERESTS
OF CITIZENS
 LEGITIMIZE
GOVERNMENT
 DEMOCRATIC
MORALITY
BUILDING
CITIZEN INVOLVEMENT




ACCESS TO
INFORMATION
ACCESS TO
DECISIONMAKING
ABILITY TO OPEN
ISSUES FOR PUBLIC
DISCUSSION
CONSIDERATION OF
ALL CLAIMS
ASSERTED
DEFINING PUBLIC SERVICE
QUALITY
CARLSON + Schwarz, 1995








CONVENIENCE
SECURITY
RELIABILITY
PERSONAL ATTENTION
PROBLEM-SOLVING APPROACH
FAIRNESS
FISCAL RESPONSBILITY
CITIZEN INFLUENCE
SEEKING THE PUBLIC INTEREST







WHAT IS THE PUBLIC INTEREST?
NORMATIVE MODELS
ABOLITIONIST VIEWS
POLITICAL PROCESS THEORIES
SHARED VALUES
OLD AND NEW PUBLIC ADMINISTRATION AND
THE PUBLIC INTEREST
WHAT ARE WE RESPONSIBLE FOR?
 TO WHOM ARE WE ACCOUNTABLE?
 BY WHAT MEANS WILL WE ACHIEVE
OUTCOMES AND BE ACCOUNTABLE FOR
THEM?
Key Concepts

PUBLIC INTEREST AS THE BEST
RESPONSE TO ALL INTERESTS AND
CONCEPTS OF VALUE
 PUBLIC INTEREST IS BEST
UNDERSTOOD THROUGH INDIVIDUAL
CHOICES
 PUBLIC INTEREST IS DEFINED BY
POLITICAL PROCESS
 PUBLIC INTEREST AS PUBLIC VALUE
CONSENSUS
FORCES THAT MISCONSTRUE
THE PUBLIC INTEREST
SOCIAL – HIGH LEVEL OFFICIALS ARE
NOT REPRESENTATIVE OF POPULATION
 SPECIALIZATION LEADS TO NARROW
INTERESTS
 BUREAU IDEAOLOGY (DOWNS)

–
–
–
–
–
POSITIVE BENEFITS VS. COSTS
EXPANSION VS. CURTAILMENT
GENERAL BENEFITS VS. SPECIAL
PRESENT EFFICIENCIES VS. PAST FAILURES
ACHIEVEMENTS AND CAPABILITIES VS.
FAILURES AND LIMITATIONS
SHIFTING IN PEOPLE AND
PERFORMANCE AREAS

TRADITIONAL
– SINGLE SYSTEM
– FAIRNESS IS
SAMENESS
– PROCESS/RULES
– PROMOTION BASED
ON TECH. EXPERTISE
– JOB FOR LIFE
– PROTECTION
JUSTIFIES TENURE
– CENTRAL PERSONNEL
AGENCY

NEW PUBLIC SERVICE
– MULTIPLE SYSTEMS
– DIFFERENTIATION
BETWEEN DIFF. TALENTS
– PERFORMANCE/RESULTS
– HIRE, DEVELOP,
PROMOTE
– CORE VALUES
– PERFORMANCE AND
EMP. NEED
– CENTRAL AGENCY WITH
EMPOWERED MANAGERS
NEW APPROACHES TO
REGULATION

COMPLIANCE THROUGH DETERRANCE IS
MISGUIDED AND MUST BE REPLACED BY:
–
–
–
–
–
–
–
–
PARTNERS
ONE-STOP SERVICES
IMPACTS VS. OUTPUTS
PROBLEMS VS. VIOLATIONS
FEASIBILITY VS. UNIVERSAL ENFORCEMENT
NEGOTIATION AND EDUCATION AS TOOLS
STRATEGIC ENFORCEMENT TARGETS
DEALING EFFECTIVELY WITH WORST
VIOLATORS
TOWARD NEW POLITICAL
APPROACHES TO REGULATORY
ADMINISTRATION
BEYOND POLITICAL HACKS OF THE
PAST
 PUBLIC AS AN AGENCY
CONSTITUENCY

– AARP, CONSUMER GROUPS

FORWARD LOOKING ASSESSMENT
– NEPA, REGULATORY FLEXIBILITY ACT,
PAPERWORK REDUCTION ACT
LEGAL APPROACHES TO
REGULATORY ADMINISTRATION




ADVERSARY
PROCEDURES
NEUTRALITY AND
THE ADMINISTRATIVE
LAW JUDGE
DUE PROCESS
PROTECTION
REASONABLENESS
– PROPERTY RIGHTS
AND TAKINGS
REGULATORY ADMINISTRATION

NARROW VS.
BROAD PUBLIC
INTEREST
 BALANCING
PRIVATE
INTERESTS
AGAINST ONE
ANOTHER
 PROTECTING
AGAINST
DISASTER
NEW PUBLIC SERVICE

PUBLIC
ADMINISTRATORS
ARE
RESPONSIBLE
FOR ENHANCING
CITIZENSHIP AND
SERVING THE
PUBLIC INTEREST
VALUING CITIZENSHIP OVER
ENTRPRENUEURSHIP

GOVERNANCE
– EXERCISE OF PUBLIC AUTHORITY

NEW ROLES FOR GOVERNMENT
– LEGAL AND POLITICAL RULES
– PROTECTING ECONOMIC INTERESTS
– ASSURE DEMOCRACY AND SOCIAL EQUITY



ADMINISTRATION AND ADMINISTRATOR’S ROLES
SERVICE
PROCESS
–
–
–
–
INVOLVEMENT
INFORMATION
CONSULTATION
ACTIVE PARTICIPATION
REINVENTING THROUGH NATL
PERFORMANCE REVIEW
1997











FLEXIBLE RESPONSIVE HIRING SYSTEMS
REFORM PAY CLASSIFICATIONS
ORGANIZATIONAL DEVELOPMENT
INCENTIVE AWARDS
SUPPORT MGT IN DEALING WITH POOR PERFORMERS
MARKET-DRIVEN TRAINING
FAMILY FRIENDLY WORKPLACES
CROSS-TRAINING AND INTERAGENCY COLLABORATION
ELIMINATE RED TAPE – AUTOMATE INFORMATION
LABOR-MANAGEMENT PARTNERSHIPS
INCENTIVES FOR VOLUNTARY SEPARATIONS
DELIBERATIVE DEMOCRACY
STRUCTURING PUBLIC
DELIBERATION FOR
THOUGHTFULNESS AND ETHICS
 DIALOGUE NOT MONOLOGUE
 DIALOGUE FREE OF DOMINATION
AND DISTORTION
 INSTITUTIONALIZED DISCURSIVE
STRUCTURES

3 CONDITIONS FOR
LEGITIMACY

EQUALITY AND
SYMMETRY
 ALL HAVE RIGHT
TO QUESTION
 ALL HAVE RIGHTS
TO CHANGE THE
RULES OF
DISCOURSE
PUBLIC ADMINISTRATION
AND CONSTITUTIONAL
RIGHTS

LEGITIMACY
 DIVERSITY AMONG CITIZENRY
 FREEDOM AND LIBERTY
– CHILLING EFFECT
– OVERBREADTH
– LEAST RESTRICTIVE ALTERNATIVE





PROPERTY RIGHTS
DUE PROCESS
INDIVIDUALITY
PRIVACY
EQUITY
MODERN STRUCTURAL
THEORIES
PUA 703-001 –FALL 2007
DR. CHRISTINE SPRINGER
MOVING ON AFTER WORLD
WAR II






ORGANIZATIONAL EFFICIENCY IS THE
ESSENCE OF ORG. RATIONALITY
RATIONALITY INCREASES PRODUCTION
IN TERMS OF REAL GOODS AND
SERVICES
STRUCTURE, CONTROL COORDINATION
ONE BEST STRUCTURE
SPECIALIZATION AND DIVISION OF
LABOR STILL IMPORTANT
MOST ORG PROBLEMS ARE
STRUCTURAL
ORGANIZATIONS AS
NON-RATIONAL INSTITUTIONS
SELSNICK - 1948

ORGANIZATIONS AS ECONOMIES
 ORGANIZATIONS AS ADAPTIVE SOCIAL
SYSTEMS
 STRUCTURAL-FUNCTIONAL ANALYSIS
– SECURITY, STABILITY CONTINUITY,
RECALCITRANCE, HOMOGENEITY OF
OUTLOOK

CO-OPTATION
– PROCESS OF ABSORBING NEW ELEMENTS
AS A MEANS OF AVERTING THREATS
ORGANIZATIONS AS A
COLLECTION OF BEHAVIORS
Cyert & March -1959

COALITIONS
– OBJECTIVES SET THRU BARGAINING,
INTERNAL CONTROLS AND ADJUSTING TO
EXPERIENCE
– EXAMPLE: COMMITTEE AND PAINTING
– PREDICTIVE THEORY
•
•
•
•
•
•
DEMANDS AND PROBLEMS FOR MEMBERS
TOOL TO CHANGE DEMAND OVER TIME
ATTENTION-FOCUS TOOL FOR DEMANDS
ATTENTION-FOCUS TOOL FOR PROBLEMS
DEMAND EVALUATION PROCEDURE
TOOL FOR CHOOSING AMONG VIABLE COALITIONS
SOCIO-TECHNICAL APPROACH
BURNS AND STALKER - 1961

STABLE VS.
DYNAMIC
CONDITIONS
 MECHANISTIC VS.
ORGANIC ORG.
 SECURITY VS.
UNCERTAINTY
FORMAL VS. INFORMAL ORGS

BARNARD – 1938
– UNCONSCIOUS ATTITUDES,
UNDERSTANDING, CUSTOMS, HABITS
CREATING THE CONDITION UNDER WHICH
FORMAL ORGANIZATION ARISES

BLAU + SCOTT – 1962
– BUREAUCRATIZATION = AMT OF EFFORT
DEVOTED TO MAINTAINING THE ORG
–
NUMBER OF ADMIN. PERSONNEL,
HIERARCHIAL CHARACTER, STRICT
ENFORCEMENT OF RULES, REIGID
COMPLIANCE TO RULES
STRUCTURING ACCORDING TO
PRODUCT OR FUNCTION
WALKER AND LORSCH - 1968

GROUPING BY WORKER OR BY PRODUCT
– MAXIMUM USE OF A SPECIAL KNOWLEDGE?
– EFFICIENT USE OF EQUIPMENT?
– BEST CONTROL AND COORDINATION?
 BEHAVIORIST FINDINGS
– RELATIONSHIP BETWEEN ACTIVITIES AND
THOUGHTS AND BEHAVIORS
– COLLABORATION AND INTEGRATION
– COMMUNICATION AMONG SPECIALISTS
 CLUES FOR MANAGERS
– CROSS-FUNCTIONAL TEAMS
– FULL-TIME INTEGRATORS
– MATRIX OR GRID ORGANIZATIONS
KEY TERMS

DIFFERENTIATION =
SPECIALIZATION IN A RAPIDLY
CHANGING ENVIRONMENT
– REQUIRES CONTROL, COORDINATION
AND INTEGRATION
DONUT ORGANIZATIONS
 ORGANIZATIONAL NETWORKS
 VIRTUAL ORGANIZATIONS

FIVE PARTS OF AN
ORGANIZATION
MINTZBERG - 1979





OPERATING CORE
STRATEGIC APEX
THE MIDDLE LINE
TECHNOSTRUCTURE
SUPPORT STAFF
IN DEFENSE OF BUREAUCRACY
JAQUES - 1990



HIERARCHIAL LAYERS ALLOW ORGS TO COPE
WITH DISCONTINUITIES
MANAGERS NEED TO UNDERSTAND AND BE
ACCOUNTABLE
– FOR ADDING VALUE
– SUSTAINING TEAM
– SETTING DIRECTION AND ENGAGING
SUBORDINATES
ACCOUNTABILITY IS POSSIBLE WITH AUTHORITY
– VETO APPLICANTS
– MAKE WORK ASSIGNMENTS
– DECISIONS ABOUT RAISES AND REWARDS
– INITIATE REMOVAL
TECHNOLOGY AS A TOOL
BURTON AND OBEL 1998







FORMALIZATION
CENTRALIZATION
COMPLEXITY
CONFIGUATION
COORDINATION
CONTROL
INCENTIVES
Market Theories: Rational Self
Interest

Grounds for
opposition to
organic system
theories
 Indifference to
merits of human
relations theory
 How to maximize
individual utility
through rational
choices?
Community as a Fictitious Body
Jeremy Bentham - 1948
Composed of
individual
persons who are
considered
members
 Community
interest is the
sum of
individual
interests

MARKET THEORIES:
ORGANIZING AS REVEALED
SELF-INTEREST



HOW INDUCE MGRS TO ACT IN BEST INTEREST OF
OWNERS AND THOSE IN CONTROL
ANSWERING ECONOMIC QUESTIONS
– CONTRACTUAL NATURE
– BOUNDED RATIONALITY
– SIGNIFICANCE OF INVESTMENT IN SPECIRIC
ASSETS
– SPECIFIC RIGHTS VS. RESIDUAL RIGHTS
– EFFECTS OF IMPERFECT INFORMATION
EMERGENCE AND EXPANSION OF ORGS GIVEN
COST OF UNCENTAINTY, INFORMATION, BOUNDED
RATIONALITY AND COGNITIVE BARRIERS
Self-Interest and Market
Organizing Theory





Collective Action is
Aggregation of Individual
Choice
Organizing manages
individual conflicts
Rules needed to adjudicate
conflicting preferences
Satisficing not maximizing
choices in decisions
Satisficing results in
incremental change
FRAMING INSTITUTIONAL
ACTION

INTERPLAY OF
INTRESTS, GROUPS
AND INDIVIDUALS
– PUBLIC CHOICE THEORY

IMPORTANT
LIMITATIONS TO WHAT
CAN BE DONE BY
PUBLIC PLANNING
– Satisficing (Simon)
– Political
• What is legitimate?
• What can be reasonably
acted on?
Administration as Political

Challenging the
possibility/ desirability of
tightly structured orgs
reaching goals of internal
efficiency and control
 Agreeing with System
Theorists
– Engaging political
environments
– Internal Rules Stabilize

Disagreeing
– Decisions not Structure
WHAT ARE THE RULES?

PUBLIC CHOICE AS
REPRESENTED BY
BUCHANAN, TULLOCK AND
OSTROM
– CONSTITUTIONAL RULES
– IMPROVING GOVT
PERFORMANCE MEANS
MAKING IT MORE
DEMOCRATIC AND EFFICIENT
– DEFINING HUMAN
MOTIVATIONS SO AS TO
DERIVE A PREFERRED
THEORY OF VALUES
– BASIC ASSUMPTIONS ENABLE
EXPLANATION OF PAST,
PRESENT AND PREDICTION OF
FUTURE
MARKET THEORISTS

SCOT, DAVID HUME, JEREMY BENTHAM,
JOHN STUART MILL
– UTILITARIANSIM

JAMES BUCHANAN, GORDON TULLOCK
AND VINCENT OSTROM
– PUBLIC CHOICE

CHARLES LINDBLOOM, DAVID BRAYROOKE
– INCREMENTALISM DISJOINTED

ALBERT HIRSCHMAN
– ECONOMIC
– FAILING TO RESPOND TO REPAIRABLE LAPSES
IN PERFORMANCE
KEY TERMS





AGENCY THEORY – MANAGERS ARE AGENTS OF THE
OWNERS AND DELEGATED AUTHORITY
PROPERTY RIGHTS THEORY – HOW COSTS AND
REWARDS ARE ALLOCATED TO PARTICIPANTS IN AN
ORGANIZATION
TRANSACTION COST THEORY – HOW TO MAINTAIN
PRINCIPAL-AGENT RELATIONSHIPS AND MINIMIZE COSTS
OF TRANSACTIONS AND MANAGEMENT DECISIONS AND
SOCIAL INTERDEPENDENCE
UNANIMITY RULE – INDIVIDUALS ARE PROTECTED
AGAINST COERCIAN AND EXTERNAL DAMAGE
PUBLIC CHOICE – DECISION-MAKING ARRANGEMENTS
ESTABLISH THE TERMS AND CONDITIONS FOR MAKING
CHOICES.
– MAKING GOVERNMENT MORE DEMOCRATIC AND EFFICIENT
MORE KEY TERMS
SELF-INTEREST – HEDONISM VS
ALTRUISM
 INCREMENTALISM - DECISIONS THAT
TAKE INTO ACCOUNT ONLY THE
MARGINAL OR INCREMENTAL
DIFFERENCES BETWEEN PROPOSAL
AND EXISTING STATE OF AFFAIRS
 DISJOINTED – LACK OF CONSCIOUS
COORDINATION IN DECISIONMAKING

CRITICS OF THE MARKET
THEORIES
HIRSCHMAN - 1970

MARKET FORCES ARE AT BEST A
PARTIAL CONDITION FOR ORG
RESPONSIVENESS
 EXIT, VOICE OR LOYALTY
 CONDITIONS FOR CORRECTION
– MEANS TO EXPRESS DISSATISFACTION
– TIME AND RESOURCES TO MEND WAYS
– SELF-INTERESTED REASONS FOR TAKING
SERIOUSLY EXIT OR VOICE OF CLIENTS OR
CITIZENS
Questions to think about . . .
What are the tenets or assumptions
of market theories?
 What types of behavior do market
theories explain?
 How do market theories explain the
behavior of organization members?
 What insights do market theories
provide about orgs?
 How are market theories different
from classical theories?
 What is the market metaphor?

POWER AND POLITICS






COMPLEX SYSTEMS OF INDIVIDUALS AND
COALITIONS
CONFLICT IS INEVITABLE
INFLUENCE, POWER AND POLITICAL ACITIVTY
PRIMARY TOOL
GOALS ACHIEVED THROUGH MANUEVERING
INTERDEPENDENCE OF ORG UNITS
POWER IN ORGS
– CONTROL OVER SCARCE RESOURCES
– ACCESS TO POWER
– CENTRAL POSITION IN POTENT COALITION
– WORKING THE RULES
– CREDIBILITY
KEY TERMS
POWER – THE ABILITY TO GET THINGS
DONE THE WAY ONE WANTS THEM DONE
AND TO INFLUENCE PEOPLE
 SOCIAL POWER – POWER BETWEEN
TWO AGENTS BASED UPON REWARDS,
COERCIVE , LEGITMATE, REFERENT AND
EXPERT POWER
 SOCIAL CHOICE-POWER IS THE RESULT
OF INFLUENCE EXERTED BY NUMEROUS
COMPONENTS AND RESPONSIVENESS IS
A FUNCTION OF CHANCE, FORCE, OR
PROCESS

THE EVOLUTION OF MANAGEMENT
& ORGANIZATION THEORY

“MODERN” STRUCTURAL
ORGANIZATION THEORY
– Talcott-Parsons 1951
– Social Systems vs. Political Organizations
– Basic Assumptions
•
•
•
•
ORGANIZATIONS ARE RATIONAL
BEST STRUCTURES
DIVISION OF LABOR
PROBLEMS ARE STRUCTURAL
– Mechanisms and Organic Systems
KEY TERMS

SATISFICING: LIMITS TO DECISION MAKING
 RATIONAL MAN: ANALYZES COMPLEXITIES AND
MAXIMIZES CHOOSING BEST ALTERNATIVE
 BOUNDED RATIONALITY: LIMITING
ADMIISTRATIVE RATIONALITY DUE TO
– COMPLETE KNOWLEDGE OF
CONSEQUENCES
– FUTURE MUST BE ANTICIPATED
– ALTERNATIVE BEHAVIORS LIMITED
– ORGANIZATIONAL SETTING
– PSYCHOLOGICAL STATE
• NARROW INTERPRETATION
BUREAUCRATIC STRUCTURE AND
PERSONALITY
ROBERT MERTON - 1957

THE DYSFUNCTIONS OF BUREAUCRACY
–
–
–
–
–
–
SECRECY
OCCUPATIONAL PSYCHOSIS
OVERCONFORMITY
SECULAR AND SACRED DIVISION OF LABOR
DEPERSONALIZATION
DISCREPANCY BETWEEN IDEOLOGY AND
FACT
• SERVANTS OF THE PEOPLE?
• QUESTIONS TO BE ANSWERD
– PRESTIGE SYMBOLS TO INNER CIRCLE?
KEY TERMS







INSTRUMENTAL RATIONALITY – SUBJECTIVE
MEANS-END REASONING
DECISION – CONCLUSION DRAWN FROM SET OF
VALUE AND FACTUAL PREMISES
EFFICIENCY –MAXIMIZE ATTAINMENT OF CERTAIN
ENDS WITH SCARCE RESOURCES
EFFECTIVENESS-ACCOMPLISHING ORG
OBJECTIVES AND OVERALL PERFORMANCE
PUBLIC PROBLEMS – EXTRA-ORGANIZATIONAL
AUTHORITY –POWER TO MAKE DECISIONS WHICH
GUIDE THE ACTIONS OF ANOTHER
COORDINATION – THE PRINCIPLES OF
ORGANIZATIONS IN TOTO OPERATING THRU A
SUPERME COORDINATING AUTHORITY (URWICK)
ORGANIZATIONAL CULTURE




CHALLENGING RATIONAL
THEORISTS
ORGANIZATIONS AS COLLECTION
OF VALUES, LIEFS, PERCEPTIONS,
BEHAVIORAL PATTERNS
BEHAVIOR IS PREDETERMINED BY
MEMBERS’ ASSUMPTIONS
ORGS ARE ONLY RATIONAL IF:
– SELF-CORRECTING SYSTEM OF
INTERDEPENDENT PEOPLE
– CONSENSUS ON OBJECTIVES AND
METHODS
– COORDINATION THROUGH SHARED
INFORMATION
– PREDICTABLE PROBLEMS AND
SOLUTIONS
ORGANIZATIONAL
SYMBOLISM

MEANINGS AS SOCIALLY
CONSTRUCTED REALITIES
 INTERPRETATION IS MOST
IMPORTANT
 AMBIGUITY AND
UNCERTAINTY PRECLUDE
RATIONALITY
 PEOPLE USE SYMBOLS TO
REDUCE AMBIGUITY
– ROOT METAPHORS, SHARED
MEANINGS, INTEGRATING
SYMBOLS
CHANGING ORG.
CULTURES
TRICE AND BEYER 1993




CAPITALIZE ON
PROPITIOUS
MOMENTS
COMBINE CAUTION
WITH OPTIMISM
UNDERSTAND
RESISTANCE TO
CHANGE
CHANGE ELEMENTS
BUT MAINTAIN
CONTINUITY
CHANGING ORG.
CULTURES
TRICE AND BEYER 1993




RECOGNIZE
IMPORTANCE OF
IMPLEMENTATION
SELECT, MODIFY AND
CREATE RIGHT
CULTURAL FORMS
MODIFY
SOCIALIZATION
TACTICS
FIND AND CULTIVATE
INNOVATIVE
LEADERSHIP
DEFINITIONS OF ORG CULTURE






SHARED BELIEFS
SHARED
UNDERSTANDINGS
UNDERLYING
ASSUMPTIONS
COMMON
ORIENTATION
PATTERNS OF
MEANING
STORIES TOLD IN
ORIENTATION
COMMON RITUALS

INITIATION
 REWARD
 DEGRADATION
 RENEWAL
 CONFLICT
REDUCTION
 INTEGRATION
 ENDING
 COMPOUND
REFORM THROUGH CHANGE
1980’S AND 1990’S

LASTING ORG.
REFORM REQUIRES
CHANGE IN ORG
CULTURE
 TOTAL QUALITY
CONTROL
–
–
–
–
–
PRODUCTIVITY
FLEXIBILITY
RESPONSIVENESS
RE-EINGINEERING
CUSTOMER SERVICE
APPLYING JAPANESE
METHODS
OUCHI - 1980

THEORY Z ORGS
– CULTURAL
CONSISTENCY NOT
HIERARCHY
– CLANS NOT MARKETS
OR HIERARCHIES
– DIFFICULTIES IN
TRANSLATION
– SOCIAL ORGS VS.
FORMALITY
– BUREAUCRACY VS.
DISCRETION
– BALANCING FREEDOM
AND INTEGRATION
ATTRIBUTES OF
EXCELLENCE
PETERS - WATERMAN











BIAS FOR ACTION
CLOSE TO CUSTOMER
AUTONOMY
ENTREPRENUERSHIP
PRODUCTIVITY THROUGH
PEOPLE
HANDS-ON
VALUE-DRIVEN
STICK TO KNITTING
SIMPLE FORM
LEAN STAFF
LOOSE-TIGHT
LEARNING ORGANIZATIONS
PETER SENGE - 1990

LEARNING HOW TO
LEARN TOGETHER
 COMPONENT
TECHNOLOGIES
 FIVE DISCIPLINES
–
–
–
–
SYSTEMS THINKING
PERSONAL MASTERY
MENTAL MODELS
BUILDING SHARED
VISION
– TEAM LEARNING
REINVENTING GOVERNMENT
OSBORNE & GAEBLER - 1992









CATALYTIC
COMMNITY-OWNED
MISSION DRIVEN
RESULT ORIENTED
CUSTOMER DRIVEN
ENTERPRISING
ANTICIPATORY
DECENTRALIZED
MARKET ORIENTED
GENDER AND DIVERSITY

PERPETUATING MALE
REALITY ACKER-1992
–
–
–
–

GENDER DIVISIONS
SYMBOLS AND IMAES
INTERACTIONS
DEMANDS FOR GENDERNEUTRAL BEHAVIOR
ORG CULTURES THAT
ARE BARRIERS TO
PERFORMANCE
– WORKFORCE 2000 –
1987
– MANAGING DIVERSITY IS
A CRUCIAL
COMPETENCY