Transcript Document
chapter 15 Managerialism & Social welfare By Janet Newman Introduction • This chapter focuses on social welfare in the UK through the 1980s and 1990s • The key elements of the social welfare system in the UK are , Health ,Housing , Education , welfare and children care . • Newman explores the key themes in the restructuring of welfare services in the UK. • The author addresses the significance of the new managerializm for decision making with reference to the impact of the development on professional decision making. Introduction • Managerialism as defined by Newman means designing welfare systems as if they are businesses. That is imitating a market by introducing measures like internal competition and performance measurement . This is seen as an attack on classic bureaucracy . It is described by some as “enterprise” where the only virtuous organisational type is enterprise & not bureaucracy. Post-war welfare state • Bureaucratic administration was a rational, rule bounded & with a hierarchical approach • It provided the organizational context in which welfare professionals, doctors , teachers and social workers exercised their professional judgment . • This combination of administrative rationality & professional expertise guaranteed – the neutrality of the welfare state – protected the exercise of professional judgment • However , this regime was not without its critics Critics • Socialist, feminists & anti-racists directed their critics at professionals & bureaucrats. 1. Public choice theory (Neo-Liberal). • Public choice theory is a branch of economics that study the decision-making behavior of voters, politicians and government officials from the perspective of economic theory. It can be considered as a bridge between economics and political science. A- Politicians do not devote their lives for our benefits • are motivated by self interest B - Bureaucrats are self- interested utility-maximizers & will not carry out always the wishes of politicians • even if expressing public good C- Inefficiency is in the best interest of bureaucrats 2. New Right Thinking (Neo-Conservatism) • Focused on the social consequences not on economic inefficiencies ( as in Neo-liberal) • Focused on paternalism of the regime or the “Nanny State Effect” – – – Encouraged dependency culture Undermined self-reliance Undermined moral welfare of society • Ex. Provision of housing & benefit to lone parents encouraged unmarried women to have children 3. Political and bureau-professional powers were seen to threaten any cultural change unless there are yields to them.( local governments verses central governments) 15.1 Dismantling the old organization • The different forms of critics legitimated the introduction of new managerial techniques and the strengthening of managerial power. • The success of this new managerialism is based on its vision of the power of management to transform rule-bound , inert & bureaucratic corporations into dynamic & competitive enterprises • “Efficient management" is the key to waste control , diminishing political powers and introducing economies to the system and making more self reliant citizens. Bureaucracy is: Management is: Rule-bound Inward-looking Compliance-centered Ossified Innovative Externally oriented Performance centered Dynamic Professionalism is: Management is: Paternalist Mystique-ridden Standard-oriented Self-regulating Customer-centered Transparent Results-oriented Market-tested Politics are: Management is: Dogmatic Interfering Unstable Pragmatic Enabling Strategic 15.2 Managerialism as discourse • Managerialism does not form a unified body of knowledge, but can be understood as a set of discourses, each of which draws on a different knowledge base. Each discourse is a structured set of ideas which has an internal coherence. • Studying different discourses of managerialism can help to unlock some of the changes in the roles, practices & purposes that accompanied the process of welfare state restructuring Managerialism Discourses I. Neo-Taylorism • • Characterized by cost control & decentralization. Based on an assumption that : – Workers are individual units responding directly to fairly simple incentives and punishments Managerial control of the workforce could be enhanced by the application of scientific principles of work design & an organizational structure of scientific management. – • When applied to public management, it refers to a – Strengthening of the control & measurement of work through mechanisms such as:• • • – Target-setting Performance indicator Monitoring & control of the work process Functional & mechanistic orientation . • This discourse offers roles based on – The elimination of waste – Cost control – Performance management • The dominant language is based on :- Calculations – Counting – Measuring – Assessing • The focus is on inputs rather than outputs . It focuses on the first two E’s ( economy and efficiency) Conclusion • Rather than getting rid of bureaucracy, it has sometimes reproduced it. • Meeting the financial target is the top priority for Neo-Taylorism II. The Excellence Approach Discourse • Peters & Waterman conducted a study where they by identified the ingredients of the US corporation’s success and found the importance of “The organizational culture”. They found that :The stronger the culture and the more it is directed towards the market-place the less need is there for :- • – – – • The role of top management is – – • Policy manuals Organizational charts Detailed procedures & rules To build a strong unified culture Encourage workforce commitment rather than exerting detailed control over work process The mode of control is affective rather than directive • This discourse has a strong link with a set of related discourses such as : – Human resources management – Leadership & staff empowerment – Focus on last E ( effectiveness) Conclusion • It gave rise to very different sets of injunctions. • Achieving service improvement & satisfying customers is the Excellence Approach essence. • This form combined with Neo -Taylorism form may be present in a single organization giving rise to a mixed messages for the staff. III.Consumerism & Quality Discourse • Consumerism view a service user – – • • Not as a passive recipient of bureau-professional decision But as an active participant in the process of defining needs & wants ( i.e. enterprising ) The emphasis on customer was welcomed by many professionals seeking to empower service users. The idea of customer Centeredness, Quality and Customer choice provided a new logic of legitimation for government reforms – – Changes is driven through the name of customer Legitimation in terms of greater choice or increased consumer power Conclusion • The discourse of consumerism implies shift in roles , relationships and identities of welfare providers • They have to be – – – – Responsive Enabling Empowering in their interaction with users Judged according to their performances IV. Business Entrepreneurship (The language of business) • That is modeling welfare services on ideas & practices drawn from the private sector. It interacts with both Neo-Taylorism & the Excellence discourses . In this discourse :- • – – – Organizations should be more efficient with a firmer managerial grip on performance. Managers should have more freedom to respond to the demand of customer. Key figures are imported from industry & commerce to help transform the institution of government. Conclusion • • • In Neo-Taylorism : managers are controllers Excellence Discourse : managers are innovators & transformers Business Discourse: managers are entrepreneurial actors. 15.3 Power, decision-making & the reordering of relationship • The focus is on the interaction between managerialism & bureau-professionalism . Each is the source of a different form of power , each orders relationships in a particular way and each gives rise to a different judgment in the process of decision making. ( see table slide 21 ) • Concerning the 3 different forms of power , they are:– Professional power – Bureaucratic power – Managerial power A. Professional power • Based on the acquisition of special knowledge & thus to claim expertise in making judgment within a defined field of decision making and thus affect resource allocation. Knowledge • – – – • Enable professionals to diagnose problems Identify & formulate needs Categorize & treat “Clients” Knowledge basis of professional bureaucracy legitimate particular goals such as :– Solving problems & treating clients B. Bureaucratic power • • Decision making is based on the “Exercise of rules” Viewed as a mean to ensure that decisions are made fairly on the basis of equitable application of universal rules on entitlement . It allowed discretion to the individual worker within rules confines. C. Managerial power • • Creates a conscious cost culture among employees. Two strategies helped to define what or who should constitute a legitimate demand on organizational resources adopted:1- “Cream skimming strategy which involves targeting a service towards particular group users 2- “Boundary management” strategy which is concerned with shifting cost between organizations. Both form part of the managerial logic for decision making • • Managerialism is based on the idea that managers must be given the right to manage • The place of managerialism in state restructuring was more than simply a transfer of private sector practices into welfare services , it was by itself undergoing transformations. For-example in :a) Management/workforce relation : It should develop direct relationship between managers & work force in place of collective bargain. b) Organizational & inter-organizational relationship:The process of decentralization & the introduction of market mechanism by process of fragmentation , diffusing and localization of decision making to various parties is important. Bureaucratic Professional Managerial R e l a ti o n s h i p Who has access Citizens Gate keeping Legally mechanism defined entitlements Extent to citizen Access knowledge of shaped by what is available Clients defined as having needs Customers or consumers Professional needs assessments Professional groups Rationing & priority setting Cream skimming & boundary management Basis of decision Application of Application of universal rules professional Limited resources Types of risk taken into account Political Financial, organizational knowledge & expertise Clinical or social 15.4 The paradoxes of managerialism • The idea that there has been a wholesale shift from “old” public administration to a “new” public management has been challenged as an oversimplified view of change.Clark & Newman raise two important difficulties in this shift. 1. Gaps between what is described in textbooks or reports and what happens on ground – Sometimes change is welcomed because it is seen to bring benefits – Sometimes it is actively resisted and if resistance is strong enough , a particular initiative may be modified . 2. They tend to tidy away some of the complexity & messiness of change – Different managerial discourses may not easily fit together since they require different management style . Hypocrisy may occur . Tension may arise between an approach based on winning commitment & giving staff responsibility for their own performance on one hand and the constant monitoring & checking by the center on other hand • Some of the key tensions that may arise are between: a) Centralization & decentralization – – The key issues are the distribution of power between center & periphery The nature of the control systems put in place by the center b) Flexibility & standardization ( due to centralization tendency) – Ex. potential tension between central government or national agencies and local government c) Empowerment & control – The requirement that welfare organization become more business like implies a shift in culture • Importance of the probity of process to achievement of results d) Management , policy & politics – In practice it has been difficult to sustain a clear boundary between policy (the realm of politics) and administration In conclusion : Evaluating Managerialism is not an easy task . Efficiency has become the dominant ethos in this new managerial regime but is not sufficient as a single tool and as single imperative