CONTEXT FOR ORGANIZATION
THEORY

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

 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
 TO
 PUBLIC ORGANIZATIONS ARE THE SAME AS
BUSINESS
 TO
 PUBLIC ADMINISTRATION IS A
PROFESSIONAL FIELD
 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

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

 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

MORALE
EMPLOYEE/UNION
DEMANDS
BUDGET
CONSTRAINTS
HEAD
OR
MANAGER
HEAD
OR
MANAGER
PROFESSIONAL
ASSOCIATIONS.
DEMANDS
OF UNITS
NEED TO MAINTAIN OR INCREASE PRODUCTIVITY

 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?

 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





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








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









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
GAMESMAN
MACCOBY AND THE
1981 PFEFFER – POWER IN
ORGANIZATIONS








1983 ROSABETH MOSS KANTER AND
THE CHANGEMASTER
1988 ZUBOFF AND THE AGE OF THE
SMART MACHINE
1990
ARTIFACTS
1997
BEYOND
GAGLIARDI AND SYMBOLS AND
1992 OSBORNE AND GAEBLER RE-
INVENT GOVERNMENT
VIRTUAL ORGANIZATIONS AND
2000 SNOOK ANALYZES SYSTEMIC
BREAKDOWN IN FRIENDLY FIRE
2002 PERROW AND ORGANIZING AMERICA:
WEALTH, POWER AND ORIGINS OF CORPORATE
CAPITALISM

 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

 KATZ AND KAHN
– ENERGETIC AND INTERDEPENDENT INPUTS-
OUTPUTS
 SILVERMAN
– SOCIAL INSTITUTIONS WITH SPECIAL
CHARACTERISTICS AND LEGITIMACY
 COHEN, MARCH, OLSEN
– COLLECTION OF ISSUES LOOKING FOR
RESOLUTION AND DECISION MAKERS
LOOKING FOR WORK

 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???

 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
 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
 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
2 ND PRINCIPLE – SELECT AND DEVELOP
WORKMEN
3 RD PRINCIPLE – BRINGING SCIENCE
TOGETHER WITH TRAINED WORKERS
4 TH PRINCIPLE – DIVIDING WORK
BETWEEN WORKERS AND MGT.

FAYOL’S PRINCIPLES OF
MANAGEMENT
 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
 MACRO LEVEL
DETERMINISTIC
NATURAL SELECTION
VOLUNTARISTIC
COLLECTIVE ACTION VIEW
SYSTEM STRUCTURAL
VIEW
STRATEGIC CHOICE
MICRO LEVEL









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






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

 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?







 INDUSTRIAL REVOLUTION
– EFFICIENCY AND EFFECTIVENESS
ORGANIZATION BY DECISION SETS
ORGANIZATIONS AS PURPOSIVE
ENTITIES
INTEGRATING INDIVIDUALS
ORGANIZING AS REVEALED SELF-
INTEREST
ORGANIZING AS SOCIAL ACTION
OGANIZING AS DISCOVERED
RATIONALITY

 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

 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

 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









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

 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 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)

 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

 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

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

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

 ACHIEVE BEST
POLITICAL
OUTCOMES
 SATISFY INTERESTS
OF CITIZENS
 LEGITIMIZE
GOVERNMENT
 DEMOCRATIC
MORALITY

 ACCESS TO
INFORMATION
 ACCESS TO
DECISIONMAKING
 ABILITY TO OPEN
ISSUES FOR PUBLIC
DISCUSSION
 CONSIDERATION OF
ALL CLAIMS
ASSERTED

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?

 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

 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

 STRUCTURING PUBLIC
DELIBERATION FOR
THOUGHTFULNESS AND ETHICS
 DIALOGUE NOT MONOLOGUE
 DIALOGUE FREE OF DOMINATION
AND DISTORTION
 INSTITUTIONALIZED DISCURSIVE
STRUCTURES

 EQUALITY AND
SYMMETRY
 ALL HAVE RIGHT
TO QUESTION
 ALL HAVE RIGHTS
TO CHANGE THE
RULES OF
DISCOURSE

 LEGITIMACY
 DIVERSITY AMONG CITIZENRY
 FREEDOM AND LIBERTY
– CHILLING EFFECT
– OVERBREADTH
– LEAST RESTRICTIVE ALTERNATIVE
 PROPERTY RIGHTS
 DUE PROCESS
 INDIVIDUALITY
 PRIVACY
 EQUITY

 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

 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

BURTON AND OBEL 1998
 FORMALIZATION


CENTRALIZATION
COMPLEXITY
 CONFIGUATION
 COORDINATION
 CONTROL
 INCENTIVES

 Grounds for opposition to organic system theories
 Indifference to merits of human relations theory
 How to maximize individual utility through rational choices?

Jeremy Bentham - 1948
 Composed of individual persons who are considered members
 Community interest is the sum of individual interests




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

 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

 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?

 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

 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

 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






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

 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

 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?







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



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)





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





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







SHARED BELIEFS
SHARED
UNDERSTANDINGS
UNDERLYING
ASSUMPTIONS
COMMON
ORIENTATION
PATTERNS OF
MEANING
STORIES TOLD IN
ORIENTATION

 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

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












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

PETER SENGE - 1990



LEARNING HOW TO
LEARN TOGETHER
COMPONENT
TECHNOLOGIES
FIVE DISCIPLINES
– SYSTEMS THINKING
– PERSONAL MASTERY
– MENTAL MODELS
– BUILDING SHARED
VISION
– TEAM LEARNING

OSBORNE & GAEBLER - 1992
 CATALYTIC


COMMNITY-OWNED
MISSION DRIVEN
 RESULT ORIENTED
 CUSTOMER DRIVEN
 ENTERPRISING
 ANTICIPATORY


DECENTRALIZED
MARKET ORIENTED



PERPETUATING MALE
REALITY ACKER-1992
– GENDER DIVISIONS
– SYMBOLS AND IMAES
– INTERACTIONS
– DEMANDS FOR GENDER-
NEUTRAL BEHAVIOR
ORG CULTURES THAT
ARE BARRIERS TO
PERFORMANCE
– WORKFORCE 2000 –
1987
– MANAGING DIVERSITY IS
A CRUCIAL
COMPETENCY