M.P.A.

-12
ADMINISTRATIVE THEORY
ASSIGNMENT SOLUTIONS GUIDE (2011-2012)

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Q. 3. Discuss Herbert Simon's views on Classical Theory and his concept of

Bounded Rationality.

Ans. According to the classical theory, decision- making involves a series of steps
like

(a) formulation of the problem and of the goals and objectives

(b) conceptualisation of alternatives and collection of relevant pieces of information

(c) choosing the best course of action or the alternative that would bring the best
return

(d) implementing the decision

(e) evaluating the effectiveness of the decision.

The classical theory assumes that all these steps are strictly followed, that all these
decisions are made in complete rationality with a view to achieve maximum reward.
But according to Simon in actual practice, there is lack of complete information, or
new unforeseen factors crop up and above all the goals of maximum reward, often
involves high costs and even negative consequences. Simon’s view of decision-
making is based on the principles of bounded rationality or the limitations of human
capacity in formulating and solving complex problems. Such limitation arise from
internal or psychological fact of stress or motivations on the one hand or external,
environmental factors on the other hand. Therefore, the behavioural approach states
that decisions may best be made within constraints of the circumstances.
Accordingly, Herbert Simon talks of “satisfying” rather than maximizing the
outcome of a decision. Herbert Simon strictly opposed the principles of
administration developed by the classical theory, he considered it as a “proverb”. He
says classical theory or administrative theory is fatal defect of the current principles
of administration that, like proverbs, they occurs in pairs. For almost every principle
one can find an equally acceptable contradictory principle. Although the two
principles of the pair will lead to exactly opposite organisational recommendations,
there is nothing in the theory to indicate which the proper one to apply. For example,
principle of span of control means a superior can control effectively only a limited
number of subordinates, if it exceeds the number will lead to ineffectiveness. The
classical scholars are of the opinion that a narrow span of control create a tall
hierarchical organisation which conflict with the principles of minimum number of
supervisory levels, implying a flat hierarchy. Another principle, the unity of
command means that in an organisation the employee receive order from only one
superior but it opposed another principle that is the principle of specialisation. The
present organisations are highly complex and due to the reason of specialisation. The
specialist would receive orders from technical as well as general supervisors. Simon
criticised Administrative Theory as it is not scientifically valid and do not have
universal relevance. According to Simon every administrative activity involves both
deciding (decision) and doing (action). To Simon decision-making process is that
which concerned both the process of decision and the process of action. It is a
process which is universally valid. Simon says decision should be based on rational
choice. But hundred per cent rationality, in the administrative behaviour is
impossible because human behaviour is neither totally rational, nor totally non-
rational. Therefore, Simon falls back on the concept of “bounded rationality” to
explain the way in which decisions are made in reality. Operating under the bounded
rationality, a decision-maker with not the risk to maximise on decisions of any
significance. On the other hand he makes only satisfactory decision, that is, decision
do not maximise, and they only satisfy and suffice. In other words a decision-maker
looks for a satisfactory course of action in solving a problem rather than making an
endless search for an ideal solution. He takes into account only those few factors of
which he is aware understands and regards as relevant in making decision.

Q. 4. Define Organisation and identify its major characteristics.

Ans. “Organisation”, according to the dictionary “is the work of connecting in-
terdependent parts so that each has a special function, act, office or relation to the
whole.” It is defined by various scholars according to their perspectives or knowl-
edge. According to Pfiffner, “Organisation consists of the relationship of individual
to individual and of group to groups which are so related as to bring about an orderly
division of labour.” Simon says,

“Organisation means a planned system of cooperative effort in which each

participant has a recognized role to play and duties and tasks to perform.” According
to Schulze William, “an organisation is a combination of the necessary human
beings, materials, tools, equipment and working space brought together in
systematic and effective coordination to accomplish some desired object.” Both
Simon and William emphasise on the cooperation and coordination characters of the
organisation. Weber defines organisation as a corporate group. According to Weber,
“A corporate group is a social relation which is either closed, or limits the admission
of outsiders by rules, its order is enforced by the actions of specific individuals
where regular function this is.” Different scholars have emphasised different
characteristics of organisation according to their perspective, to Barnard there are
four characteristics of the organisation:
(a) Communication

(b) Cooperative efforts

(c) Common objective

(d) Rules and regulations

William Scott defines “organisation as collectivities that have been established for
the pursuit of relatively specific objectives on a more or less continuous basis”. He
emphasises the characteristics of organisation as–

(a) a communication system, (b) fixed boundaries

(c) a normative order (d) an incentive system (e) authority ranks.

Various scholars have defined the organisation in their own way and emphasised on
their characteristics. Generally the term organisation is used in two ways–
organisation as a process and organisation as a unit. But a single definition can not

cover both.

CHARACTERISTICS OF ORGANISATION Organisation have the following

characteristics: (1) Coordination of Activities: Coordination is the important
characteristics of organisation. An organisation not only co-ordinate its members
working within it, but also coordinate all its activities to achieve the goal.
Coordination is essential in an organisation as all its members contribute to
commonly agreed goals. The objective of coordination is activities, which are
performed by the individual only to achieve the goal.

(2) Structure:
A structure, in an organisation is required for coordination of human activities.
Structure provides various centres of authority to control and coordinate the
activities of the individual in the organisation. It also direct the individuals towards
the achievement of goal. Depending upon the size and nature of an organisation,
there is a centre of authority. Coordination among many diverse individuals is not
possible without controlling and guiding the activities of various individuals.
Therefore, there is a hierarchy of authority in the organisation.

(3) Identifiable Aggregation of Human Beings:

Organisation is an identifiable group of human beings. Identifiable group of human

beings determine boundary of organisation. All organisational members identified
itself with the organisation. The identification of human beings is possible as human
group is not merely a number of persons collected at random, but it is a group of
persons who are interrelated. Identifiable groups does not means that all the
individuals know each other personally, but a group of human beings is identified
with the boundary of the organisation.

(4) Purposive Creation: Each and every organisation has certain specific
objectives, or purpose. The objectives are mutually agreed upon by the members of
the group. An organisational objective is a desired state of affairs, which the
organisation attempts to realise. Thus, organisations are interventing elements
between needs and their satisfaction. The success or failure of an organisation
depend upon the achievement of its objectives.

(5) Deliberate and Conscious Creation: Another important characteristic of

organisation is that it created human group deliberately and consciously. It means
that on the basis of contract, relationship between the organisation and its member is
created. Individuals enter in the organisation through a contract. And if there is any
defect or fault, organisation has the power to replace them. Also the organisation
recombine its member through promotion, transfer and demotion.
(6) Norms: Every organisation has followed some specified norms and standards

of behaviour, which force every member of the organisation to apply it. The
employees are bound to behave according to these norms and standards.
Organisational norms act as a binding force on members. In this process, behaviour
of the employees is governed by a system of rewards and punishment. The desirable
behaviour of the employee is rewarded and undesirable one is punished.

Q. 8. Explain the views of Chester Bernard on Administrative Processes of an

organisation.

Ans. Chester Barnard introduced social concepts into the analysis of managerial
functions and process. He is considered an outstanding theorist in modern adminis-
trative thought. Taylor improving the task efficiency of the individual while Barnard
on motivation, executive leadership, authority, organisational decision, national
plan- ning etc. His contribution to organisation theory which highlights the broader
issues of administration such as formal and informal organisational unit between the
indi- vidual and the organisation.

• Organisation as a Cooperative System

According to Barnard an organisation as a system that is subordinate to the larger

system–society. For him all organisations are partial system and they are dependent
upon organisation as a system of consciously coordinated activities or forces of two
or more persons. He says that organisation comes into being when

(i) There are persons able to communicate with each other;

(ii) Who are willing to contribute action; and

(iii) To accomplish a common purpose.

According to him, there are three elements of an organisation, they are:

(a) Communication,

(b) Willingness to serve and

(c) Common purpose.

To Barnard organisation is a cooperative system. He maintains that cooperation

originates in the need of an individual. He emphasizes that no organisation can exist
without a combination of material and non-material incentives. • Concept of
Authority The concept of authority related with power, influence and leadership. The
term authority is derived from the Latin word Auctoritos, which means agreement or
approval. Barnard indicates, authority consists of two aspects: First, the subjective
aspect, the personal aspect, the acceptance of communication as authoritative and
Second, the objective aspect– the character of the communication by virtue of which
it is accepted. A person can accept an authoritative only when four conditions
simultaneously obtain.

(a) He can does understood the communication;

(b) At the time of his decision he believes that it is not inconsistent with the purpose
of the organisation;

(c) At the time of his decision, he believes it to be compatible with his personal
interest as a whole; and

(d) He is mentally and physically able to agree with it.

• Zone of Indifference
Barnard calls the zone of action in which the superior is free to act as “the zone of
indifference”. The size and nature of the zone will be wider or narrow depending
upon the degree to which the inducements exceed the burden of sacrifices that
determine the individual’s adhesion to the organisation. Authority is surrounded by a
“zone of indifference”. Therefore, the executive should be conscious of the zone. He
should issue only those orders, which would fall within the zone and are acceptable.

• Informal Organisations

Barnard defines informal organisation as “the aggregate of the personal contacts and
interactions and the associate grouping of people......”. He believes that the formal
organisation and the informal organisation coexist. He argues that it serves an
important function by establishing general understanding. Customs, habits and
institutions and it creates conditions favourable to the rise of formal organisation.

• The Functions of the Executive

Barnard explains the functions of the executive as:

– First,to provide the system of communication;

– Second, to promote the securing of essential efforts and

– Third, to formulate and define the purposes.

The first function of maintenance of organisational communication has two

components. The first is definition of organisational position and the second is
maintaining a personal system.The second function of securing essential services
from individual also has two main aspects. The first is bringing persons into
cooperative relationship with the organisation and the second is eliciting services
and contributions from such people. The third executive function is the formulation
of organisational objectives and purposes.
Q. 9. Discuss the Anti-Goals and Goals of New Public Administration.

Ans. Since 1968, Public Administration has been enriched by the emergence of what
has come to be known as “New Public Administration”. The term has come to stay
with the publication in 1971 of Towards a New Public Administration:
Minnowbrook Perspective, edited by Frank Marini. This work was largely based on
the Minnowbrook Conference held in 1968 and New Public Administration cannot
be fully understood except in terms of that academic get-together. The politics
administration dichotomy propounded by Woodrow Wilson, slowly gave way to a
gradual recognition of the science of management. F.W. Taylor’s scientific
management movement and Elton Mayo’s Howthorne experiments in the 1920s had
subjected the structures and processes of public organisations to a critical analysis.
Efficiency had become the key concern in public administration. Herbert Simon’s
Administrative Behaviour in the 1940s brought to the force the significance of
logical positivism in the area of policy-making and the need establish a link between
the means and ends. The scope of public administration relate to the other disciplines
such as economics, political science, psychology and sociology. Policy-making
process was considered the most essence part of the public administration. The
influence of the New Public Administration Movement has been a turning point in
this change process. The scholars analysed the five major goals of public
administration namely– relevance, values, social equity, change and client
orientation.

Relevance: Traditionally, efficiency and economy have been the key concerns of
public administration. Public administration has to deal with political and
administrative implications of administrative action.

Values: The conference concern with values, issues of justice, freedom, equality and
human ethics.
Social Equity: It is the primary aspect of administration which fails to work for
minorities.

Change: Public administration is generally considered to be status-quo oriented. The

conference attempted to make the discipline more relevant and social equity oriented
through change and innovation.

Participation: The conference advocated greater participation by all employees in an

organisation in matters of public policy formulation, implementation and revision.

Client-orientation: It is a key goal of public administration. This called for a change

in the attitudes of bureaucrats to the people-oriented.

NEW PUBLIC ADMINISTRATION: ANTI-GOALS

Robert Golembiewski explained three anti-goals of New Public Administration.

These are:

(a) Anti-technology: This implies human beings are not to be treated as cogs in the
machine, to faster the traditional goals of economy and efficiency.

(b) Anti-hierarchy: It as an organisational principle which promotes bureaucracy,

brings in rigidities, kills creativity, innovation and isolates the administrator from the
surrounding environment.

(c) Anti-positivism: Positivism implies absolute uncertainty about facts which are
not certain. This makes administration more rigid.

Q. 10. Examine the relevance of Critical Theory in Public Administration.

Ans. Public administration is a specialised academic field and it essentialy deals

with the machinery and procedures of governmental activities. Generally, adminis-
tration has been defined as a co-operative human effort towards achieving some
common goals. Administration can be found in various institutions such as a busi-
ness firm, a hospital, an university, a government department and so on. Thus public
administration is concerned with the whole range of governmental activity under all
the three branches—legislature, executive and judicialry. Critical theory was born in
the year of 18th century by the contribution of various social scientists such as—
Max Horkheimer, Theoder Adorno, Herbert Marcuse, Georgr Luckacs, Antonio
Gramsci, Jurgen Habermas, Karl Marx, Kant and so on. The basic characteristics of
the critical theory are—contradiction or tensions, dialectic and change. The aim of
the critical theory to change the political system of the state. It works to create con-
sciousness among the individual and work to establish a welfare state. Welfare state
must provide equality to each and every individual in the society. The concept
critical theory is strongly based on individualistic, subjectivist and anti-bureaucratic
thrust. Critical theory relevance mostly to the public administration on certain
activities, which is discussed in the following points:

1. Critical theory had greatly developed by some social thinkers of Frankfurt

School. Frankfurt School beginning in 1920s and its principal members are— Max
Horkheimer, Theoder Adorno and Herbert Marcuse.

2. Critical theory specially come from the work of philosophists and

sociologists, and also all the post- modern public administration theories have given
importance to people in the organisation. Thus people are the key of the
organisation.

3. Critical theory helps for taking action to create social change. Change is the
law of nature. Change bring new process in the political and social system in the
society. So change come through revolution. It change the system and the structure
of the political process. So it is necessary for each and every society. Change
establish democratic form of government and give equality to the individual. It
change the laws and order to state. Thus it established a welfare state.

4. Critical theory create consciousness between the individual and it deals with
equality and democracy principles.

5. It is also replacement of techno-administrative administration of bureaucracy

through debureaucr- atisation and democratisation of administration.

6. The primary objective of a critical theory of public administration is

improving the quality of organisational life by advocating self-reflection and self-
criticism.

7. The approach of critical theory involves a systematic analysis of social

condition which is guided by normative purpose. But critical theory is based on
dialectical change.

8. Recently the concept of critical theory has been changed due to process of
globalisation and technological revolution. Globalisation bring competition between
the individual.

On the whole, the basic aim of critical theory is to reduce the system of domination
or dependence and strongly established human freedom in all the spheres and it
provide a better future. Therefore, changes and reforms in public administration may
be explained from the perspective of critical theory. Critical theory provides the
objectives and normative bases for social inquirey and also it has a narrow and broad
meaning in philosophy and the history of the social sciences. Thus, the aim of the
critical theory is to explain and transform all the circumstances that enslaves human
beings.

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