BACHELOR OF ARTS (HONOURS)

IN POLITICAL SCIENCE
SEMESTER-III

Core-VI: Introduction to Public Administration

CREDIT: 6

BLOCK: 1,2,3 & 4

AUTHORS

Dr.Sulochana Dash
 CENTRE FOR DISTANCE AND ONLINE EDUCATION, UTKAL UNIVERSITY,
BHUBANESWAR

Program Name: Bachelor of Arts (Hons.) in Political Science

Program Code: 010116
Course Name: Introduction to Public Administration
Course Code: CORE-VI Semester: III Credit: 6 Block No. 1 to 4 Unit No. 1 to 20

EXPERT COMMITTEE:

Prof. Brahamananda Satapathy, (Chairman)

Former Head and Professor, Dept. of Political Science, Utkal University, Vani Vihar,
Bhubaneswar
Dr. Smita Nayak, (Member)
HOD, Dept. of Political Science, Utkal University, Vani Vihar, Bhubaneswar
Dr. Seema Mallick, (Member)
Asst.Professor, Dept. of Political Science, Utkal University, Vani Vihar, Bhubaneswar
Dr. Swapna S. Prabhu, (Member)
Asst.Professor, Dept. of Political Science, Utkal University, Vani Vihar, Bhubaneswar

COURSE WRITER:

Dr.Sulochana Dash, Faculty in Public Administration, CDOE, Utkal University

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UTKAL UNIVERSITY, VANI VIHAR, BHUBANESWAR

 ABOUT THE UNIVERSITY

Founded in 1943, Utkal University is the 17th University of the country and the first
of Orissa. It is the result of the efforts of Pandit Nilakantha Dash, Maharaja Krushna
Chandra Gajapati, Pandit Godavarish Mishra and many others who envisioned a
progressive education system formodern Orissa.

The University started functioning on 27 November 1943, at Ravenshaw College,

Cuttack. It originated as an affiliating and examining body but shifted to its present
campus spread over 400 acres of land at Vani Vihar in Bhubaneswar, in 1962.

A number of Postgraduate Departments and other centres were established in the

University campus. There are presently more than two hundred general affiliated
colleges under the University. It has eleven autonomous colleges under its
jurisdiction, twenty-eight constituent postgraduate departments, 2 constituent law
colleges and a Directorate of Distance &Continuing Education. It boasts of a centre for
Population Studies, a School of Women’s Studies,an Academic Staff College, a pre-
school and a high school. The University also offers a number of self-financing
courses.

NAAC accredited in its 3rd at in 2023. It is a member of the Indian Association of

Universities and the Commonwealth Association of Universities.
 From the Director’s Desk

The Centre for Distance & Online Education, Utkal University has been providing
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We wish you happy reading.

DIRECTOR
 Core-VI: Introduction to Public Administration
BRIEF CONTENTS
Block Block Unit Unit
No. No.
1 Meaning, Scope and Significance of Public
Administration
PUBLIC
1 ADMINISTRATION 2 Approaches to the Study of Public Administration
AS A DISCIPLINE
3 Public and Private administration

4 Evolution of Public Administration

Block Block Unit Unit

No. No.
5 Scientific Management: F.W Tylor

2 6 Ideal-Type Bureaucracy: Max Weber

THEORETICAL
PERSPECTIVE: 7 Administrative Management: Gullick and Urwick
CLASSICAL
8 Administrative Management: Fayol
THEORIES, NEO-
CLASSICAL AND
9 Human Relations Theory: Elton Mayo
CONTEMPORARY
THEORIES 10 Rational Decision-Making Theory: Herbert Simon

11 Ecological Approach: Fred Riggs

12 Innovation and Entrepreneurship: Peter Drucker

Block Block Unit Unit

No. No.
13 Public Policy Concept and Approaches
3
PUBLIC POLICY 14 Public Policy: Formulation Implementation and
AND MAJOR Evaluation
APPROACHES IN
15 New Public Administration, New Public Management,
PUBLIC New Public Service Approach
ADMINISTRATION
16 Good Governance, Feminist Perspective in
Governance

Block Block Unit

Unit
No. No.

17
Leadership
18
4 ADMINISTRATIVE Motivation
MANAGEMENT 19
Communication
20 Decision Making
Contents

Blocks /Units Page No.

BLOCK- 1 PUBLIC ADMINISTRATION AS A DISCIPLINE 1-30

Unit-1: Meaning, Scope and Significance of Public Administration

Unit-2: Approaches to the Study of Public Administration

Unit-3: Public and Private administration
Unit-4: Evolution of Public Administration
BLOCK-2 THEORETICAL PERSPECTIVE: CLASSICAL THEORIES ,
NEO-CLASSICAL AND CONTEMPORARY THEORIES
31-103
Unit-5: Scientific Management: F.W Tylor
Unit-6: Ideal-Type Bureaucracy: Max Weber
Unit-7: Administrative Management: Gullick and Urwick
Unit-8: Administrative Management: Fayol
Unit-9: Human Relations Theory: Elton Mayo
Unit-10: Rational Decision-Making Theory: Herbert Simon
Unit-11: Ecological Approach: Fred Riggs
Unit-12: Innovation and Entrepreneurship: Peter Drucker
BLOCK-3 PUBLIC POLICY AND MAJOR APPROACHES IN PUBLIC
ADMINISTRATION 104- 148

Unit-13: Public Policy Concept and Approaches

Unit-14: Public Policy: Formulation Implementation and Evaluation
Unit-15: New Public Administration, New Public Management, New Public
Service Approach
Unit-16: Good Governance, Feminist Perspective in Governance
BLOCK-4 ADMINISTRATIVE MANAGEMENT 149-178
Unit-17: Leadership
Unit-18: Motivation
Unit-19: Communication
Unit-20: Decision Making
 BLOCK- 1
PUBLIC ADMINISTRATION AS A DISCIPLINE

Unit-1: Meaning, Scope and Significance of Public Administration

Unit-2: Approaches to the Study of Public Administration
Unit-3: Public and Private administration
Unit-4: Evolution of Public Administration

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UNIT-1: MEANING, SCOPE AND SIGNIFICANCE OF PUBLIC

ADMINISTRATION

Structure

1.1 Objectives

1.2 Introduction
1.3 Defining Public Administration
1.4 Features of Public Administration
1.5 Nature of Public Administration
1.6 Scope of Public Administration
1.7 Significance of Public Administration Summary
1.8 Summary
1.9 Key Terms
1.10 Self Assessment Questions
1.11 References

1.1: OBJECTIVES
After going through this unit, you will be able to know:

• Learn the nature and scope of public administration

• Discuss the similarities and differences between public and privateadministration
• Explain the basic features of new public administration
• Describe the essential elements of new public management

1.2: INTRODUCTION
Public administration is a field of study and practice that involves the management, implementation,
and coordination of public policies and programs. It is a crucial aspect of government that focuses on
the organization and functioning of public agencies, as well as the relationships between these
agencies and the citizens they serve. Public administration plays a vital role in ensuring the effective
and efficient delivery of public services, promoting transparency, accountability, and responsiveness
in governmental activities.

1.3 DEFINING PUBLIC ADMINISTRATION

Public administration is like any other administration which is carried out in public interest. It is
an ancient activity common to just about all countries and all levels of government. But as social,

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technological, economical, physical and cultural factors change with time, so do societies differ from
country to country. Consequently, Public administration’s activities and structures also vary from
nation to nation.

The word public administration is the combination of two words—public and administration.
The word “public” stands for the people of a definite territory or state. As the will of the people of a
state is represented by the government, the word “public” also connotes a specialized meaning, i.e.,
governmental. The word Administer is an English word, which is originated from the Latin word
‘ad’ and ‘ministrare’, which means ‘to serve’, ‘to care for’ or ‘to look after people’ .Thus, in simple
words “administration” means the “management of affairs” or looking after the people.
Administration may be defined as the group activity which involves cooperation and coordination
for the purpose of achieving desired goals or objectives.

The term ‘administration’ has been variously defined by different writers. Some definitions of
the word ‘administration’ are as follows :

According to Theo Haimann, “Administration means overall determination of policies, setting

of major objectives, the identification of general purposes, and laying down of broad programmes
and projects”.
According to Newman “Administration means guidance, leadership & control of the efforts of
the groups towards some common goals.

According to Pfiffner and Presthus, administration means “An activity or process mainly
concerned with the means for carrying out prescribed ends.

According to Simon, Smithburg, Thompson, “Administration can be defined as the activities

of groups cooperating to accomplish common goals”.

According to Marx, administration is determined action taken in pursuit of a conscious purpose.

It is the systematic ordering of affairs and the calculated use of resources aimed at making those
happen which one wants to happen.

Public Administration: Meaning

Public Administration is the complex of Governmental activities that are undertaken in public
interest at different levels such as the central, state and local level. It essentially deals with the,
machinery and procedures of Government activities. It is a means by which the policy decisions
are made by the political decision makers.

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Public Administration is decision making, planning the work to be done, formulating
objectives and goals, working with the legislature and citizens of organization to gain public
support and funds for Government programmes, establishing and revising organization,
directing and supervising employees, providing leadership, communicating and receiving
communication, determining work methods and procedures, appraising performance, exercising
control and other functions performed by government executives and supervisors. It is the
action part of the Government, the means by which the purpose and goals of the Government
are realized.

With the emergence of democracy and the concept of modern welfare service of state,
the governmental activities have increased by leaps and bounds. Initially, the Governmental
activities were mainly limited to maintain the law and order, collection of revenue and protecting
the citizens from external aggression. But, nowadays, the Government has to take care of its
citizens from womb to tomb. It means the Government has to provide various goods and
services to people from birth to death and even after that in the form of taking care of the family
of deceased.

Various definitions of Public Administration are as follows-

Encyclopaedia Britannica defines public administration as ‘the application of a policy of a state

through its government.’. Public Administration, therefore, refers to that part of administration,
which pertains to the administrative activities of the government.

Woodrow Wilson is regarded as the father of the discipline of Public Administration. According to
Prof. Woodrow Wilson, “Public Administration is the detailed and systematic application of Law.
Every particular application of a law is an act of administration”.

According to L.D.White, “Public Administration consists of all those operations having

for the purpose of fulfillment or enforcement of public policies .
According to Mc Queen, “Public Administration is the administration related to the
operation of the Government whether Local or Central”.
According to J.M. Pfiffner “Administration consists of getting the work of government
done by coordinating the efforts of the people so that they can work together to accomplish their set
tasks”.
According to H. Walker, “The work which the government does to give effect to a law is called
administration”.
According to D. Waldo who defines, public administration as “the art and science of management as
applied to the affairs of state.”
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All these definitions make it clear that public administration is really government in action. In
common usage, it is concerned with the executive, the operative and the most obvious part of the
government. In other words it is mainly concerned with the executing and implementing part of the
governmental activity, with the question as how low should be administered with equity, speed and
without friction. Therefore, public administration comprises the systematic execution of the will of
the people which has been discovered, formulated and expressed in the form of laws by the
legislation. To summarize, it may be said that public administration is the non-political machinery of
the government carrying on its work for the welfare of the people according to the laws set up by the
state.

1.4 FEATURES OF PUBLIC ADMINISTRATION

• It deals with the implementation of government programmes and policies

• There are many elements to public administration and management, such as laws,
rules/regulations, policies, procedures, and hierarchies
• Public officials have to follow the principles of impartiality, neutrality, anonymity,
impartiality, and ethics
• Public-oriented services are in place
• It covers the management and functioning of different government-centric activities at the
federal, state, and local levels
• All three government branches relate to public administration in the Executive, the
Legislature, and the Judiciary
• The hiring of officials is done as per their level of seniority and merit
• Public administration mainly focuses on action-related matters, such as decision-making,
human resources, and service delivery
• The political executive is the main controlling power
• It focuses on socio-economical development and modification

1.5 NATURE OF PUBLIC ADMINISTRATION

There are two views regarding the Nature of Public Administration, that is, Integral and
Managerial. According to the integral view, ‘administration’ is the total of all the activities –
manual, clerical, managerial, etc., which are undertaken to realise the objectives of the
organisation. In this view, all the acts of Officials of the government from the Attendant to the
Secretaries to the Government and the Head of the State constitute Public Administration. Henri
Fayol and L.D. White are the supporters of this view.

5
According to the managerial view of administration, the managerial activities of people who are
involved in planning, organising, commanding, coordinating and controlling constitute Public
Administration. This view regards the administration as getting things done and not doing things.
Luther Gullick, Herbert Simon, Smithburg and Thompson are the supporters of this view. The
managerial view excludes Public Administration from non-managerial activities such as Manual,
clerical and technical activities.

The two views differ from each other in many ways. According to Prof. M.P. Sharma, the
difference between the two views is fundamental. The integral view includes the activities of all
the persons engaged in administration whereas the managerial view restricts itself only to the
activities of the few persons at the top. The integral view depicts all types of activities from
manual to managerial, from non-technical to technical whereas the managerial view takes into
account only the managerial activities in an organisation. Furthermore, Administration, according
to the integral view would differ fro one sphere to another depending upon the subject matter,
but that will not be the case according to the managerial point of view because the managerial
view is identified with the managerial techniques common to all the fields of administration.

The difference between the two views relates to the difference between management and
operation or we may say between getting things done and doing things. The correct meaning of
the term administration would, however, depend upon the context in which it is used. Dimock,
Dimock and Koening sum up in the following words:

“As a study, Public Administration examines every aspect of the government’s efforts to
discharge the laws and to give effect to public policy; as a process, it is all the steps taken
between the time an enforcement agency assumes jurisdiction and the last break is placed (but
includes also that agency’s participation, if any, in the formulation of the programme in the first
place); and as a vocation, it is organising and directing the activities of others in a public
agency.”

1.6 SCOPE OF PUBLIC ADMINISTRATION

By the scope of Public Administration, we mean the major concerns of Public Administration
as an activity and as a discipline.

Scope of Public Administration as an Activity

Broadly speaking, Public Administration embraces all the activities of the government. Hence as
an activity, the scope of Public Administration is no less than the scope of state activity. In the

6
modern welfare state, people expect many things – a wide variety of services and protection from
the government. In this context, Public Administration provides several welfare and social
security services to the people. Besides, it has to manage government-owned industries and
regulate private industries. Public Administration covers every area and activity within the ambit
of public policy. Thus, the scope of Public Administration is very wide in the modern state.

Scope of Public Administration as a Discipline

The scope of Public Administration as a discipline, that is the subject of studies, comprises the
following:

• The POSDCoRB View

Several writers have defined the scope of Public Administration in varying terms. Gullick sums
up the scope of the subject by the letters of the word POSDCoRB which denote: Planning,
Organisation, Staffing, Directing, coordination, reporting the Budgeting. Planning means
working out in a broad outline the things to be done, and the methods to be adopted to accomplish
the purpose. Organisation means the establishment of the formal structure of authority through
which the work is sub-divided, arranged, defined and coordinated. Staffing means the recruitment
and training of the personnel and their conditions of work. Directing means making decisions
and issuing orders and instructions. Coordinating means inter-relating the work of various
divisions, sections and other parts of the organisation. Reporting means informing the superiors
within the agency to whom the executive is responsible about what is going on. Budgeting means
fiscal planning, control and accounting.

According to Gullick, POSDCoRB activities are common to all organizations. They are the
common problems of management that are found in different agencies regardless of the nature of
the work they do. POSDCoRB gives unity, certainty, and definiteness and makes the study more
systematic. The critics pointed out that the POSDCoRB activities were neither the whole of the
administration nor even the most important part of it. The POSDCoRB view overlooks the fact
that different agencies are faced with different administrative problems, which are peculiar to the
nature of the services, they render and the functions they performed. The POSDCoRB view takes
into consideration only the common techniques of the administration and ignores the study of the
‘subject matter’ with which the agency is concerned. A major defect is that the POSDCoRB view
does not contain any reference to the formulation and implementation of the policy. Therefore,
the scope of administration is defined very narrowly, being too inward-looking and too conscious
of the top management.

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• The Subject Matter View

We all know that Public Administration deals not only with the processes but also with the
substantive matters of administration, such as Defence, Law and Order, Education, Public Health,
Agriculture, Public Works, Social Security, Justice, Welfare, etc. These services require not only
POSDCoRB techniques but also important specialized techniques of their own which are not
covered by POSDCoRB techniques. For example, if you take Police administration it has its
techniques in crime detection, maintenance of Law and Order, etc., which are much more vital
to efficient police work, than the formal principles of organisation, personnel management,
coordination or finance and it is the same with other services too. Therefore, the study of Public
Administration should deal with both the processes (that is POSDCoRB techniques and the
substantive concerns). We conclude the scope of Public Administration with the statement of
Lewis Meriam: “Public Administration is an instrument with two blades like a pair of scissors.
One blade may be knowledge of the field covered by POSDCoRB; the other blade is Knowledge
of the subject matter in which these techniques are applied. Both blades must be good to make
an effective tool”. We may conclude the discussion with the observation of Herbert Simon who
says that Public Administration has two important aspects, namely deciding and doing things.
The first provides the basis for the second. One cannot conceive of any discipline without
thinking or deciding. Thus, Public Administration is a broad-ranging and amorphous combination
of theory and practice.

1.7 SIGNIFICANCE OF PUBLIC ADMINISTRATION

The public administration has to play a significant role as an instrument of development and
change. The administration of the country reflects the genius of its people and embodies their
qualities, desires, and aspirations. Public administration has become an essential segment of
modern society which has witnessed the emergence of what is called by administrative thinkers
an ‘Administrative State’. This means that every activity individual from ‘Womb to tomb’ is
regulated and controlled by the State agencies, that is, administrative agencies. Public
administration refers to an activity in which the government is involved. So, it can be said that
the word public administration has got more significance in the background of government
functions. The most important function of the government is to govern, i.e., to maintain peace
and public order and to ensure the safety and security of the life and property of the citizens. It
has to ensure that contracts are honored by the citizens, and their disputes are settled. This most
significant role of the government is to be fulfilled through the instrument of public
administration. The most important function of the government is to govern, i.e., to maintain
peace and public order and to ensure the safety and security of the life and property of the citizens.

8
 It has to ensure that contracts are honored by the citizens, and their disputes are settled. This most
significant role of the government is to be fulfilled through the instrument of public
administration. At the beginning of civilization, this was probably the only function performed
by the public administration. As civilization has advanced, the government has taken over many
essential functions, but the importance of these basic functions should not be minimized.
Worthwhile progress or development is not possible unless the citizens can live in peace.

1.8 SUMMARY

• The term public administration appears to suggest that there must be non-public or private
administration also. Some thinkers believethat all the administration is one and there is no difference
betweenpublic or private administration.
• The public and private administrations show a number of similarities in practice. We usually
say that all those activities which are performed by the governmental agencies or public
agencies from part of public administration while those performed by the private agencies are
called private administration.
• Periods of turbulence and instability in history often produce newwaves of thought that seek to
challenge the traditional contentsof academic disciplines and therefore, impart to them a new
direction. Since 1968, the evolving discipline of public administration came to be enriched
by the emergence of what came to be known as the New Public Administration.
• The field of public administration has been rife with debate aboutthe New Public Management, as
it is called. This has been like areform agenda that ushered in globally during the last two decades,and
is the outcome of several changes embedded in the social as well as political context in the
Western democracies.
• Government is a plural activity and part of the political system of administrative thinking and
administrative theory.
• Misconceptions about decision-making is at the top of the pyramid,and decision makers corresponds
to the rational comprehensivemodel.
• The theme of Harlan Cleveland is that, real power inside each system, and also with more sharing
of real responsibility with outsiders.
• dministrators do not follow a logical progression of steps in making decisions.

1.9 KEY TERMS

• Public administration: Centrally concerned with the organizationof government policies and
programmes as well as the behaviorof officials (usually non-elected) formally responsible for
their conduct
• New public administration: An anti-positivist, anti-technical and anti-hierarchical reaction
against traditional public administration
• New public management: A management philosophy used bygovernments since the 1980s to
modernize the public sector; abroad and very complex term used to describe the wave of public
sector reforms throughout the world since the 1980s

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1.10 SELF ASSESSMENT QUESTIONS

1. Write a short note on the nature and scope of administration.

2. Provide a brief note on the similarities and dissimilarities betweenpublic and private
administration.
3. Enlist the characteristics of new public administration.
4. Explain how the two fields differ and why the two terms are not interchangeable.
5. Explain the significance of public administration.

1.11 REFERENCEs

Gullick, S. and L. Urwick. 1937. Papers on the Science of Administration. New York: Institute of
Public administration.
Maheshwari, S. R. 1991. Theories and Concepts in Public Administration. New Delhi:
Allied Publishers Ltd.
Pfiffner, J.M. 1946. Public Administration. New York: The RonaldCompany.
Waldo, D. 1967. The Study of Public Administration. New York: RandomHouse.

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UNIT-2: APPROACHES TO THE STUDY OF PUBLIC ADMINISTRATION

Structure

2.1 Objectives
2.2 Introduction

2.3 Approaches to the Study of Public Administration

2.4 Summary
2.5 Key Terms
2.6 Self Assessment Questions
2.7 References

2.1OBJECTIVES
After going through this unit, you will be able to know:

• Analyze the utility of public choice approach

• Understand the decision-making approach
• Explain the systems approach
• Discuss ecological approach based on comparative studies
• Learn public policy approach

2.2 INTRODUCTION
Public administration, as a field of study and practice, encompasses various approaches that offer
distinct perspectives on how government organizations should be structured, managed, and operated.
These approaches reflect evolving theories and changing societal expectations. Understanding these
approaches is essential for scholars, practitioners, and policymakers involved in public administration.

2.3 APPROACHES TO THE STUDY OF PUBLIC ADMINISTRATION

• Philosophical Approach
The philosophical approach has a wide scope because it encompasses all facets of administrative
tasks and articulates the principles that guide them. It frequently draws attention to how
administrative actions rationalise human behaviour. A public administration philosophy is a
classification and analysis framework that considers the values of the administrative institutions as
well as the values and expectations of the people or society they should serve. This could include a
philosophy of the science of administration, i.e., the processes and procedures by which the
administration rates and defends decisions. The philosophical approach is said to be the oldest
approach, examples of which are found in the following works: Republic, by Plato; Leviathan, by
Thomas Hobbes, Second Treatise on Civil Government, by John Locke, Shantiparva of Mahabharat.
11
 • Legal Approach
The Legal Approach is also known as the juristic approach. The proponents of this approach sought
to study public administration as part of the law and focus on the formal legal structure and
organization of public bodies. The legal perspective prioritizes the structure and operations of power.
Emphasis is placed on the formal structure of offices, official responsibilities, scope of authority, and
administrative discretion. Constitutions, codes of law, office manuals of rules and regulations, and
judicial rulings are some of its primary source documents. The use of the legal approach in the study
of public administration is particularly well recognized in some European nations, including
Germany, Belgium, and France. In
these countries, there are two principal divisions of law, namely constitutional law and administrative
law. Constitutional law deals with three organizations of the government, their interrelation and the
distribution of power among them, whereas administrative law is mainly concerned with the structure
and functions of public bodies, departments and authorities. The legal perspective helps comprehend
the legal context in which the administrative system functions. However, by ignoring the sociological
and psychological factors— the informal forces at work in the organization. This approach has been
most popular in the continental countries of Europe like France, Germany, Belgium, the USA, and
Britain. Frank J. Goodnow was the main advocate of this approach.
• Historical Approach
Theorists of the historical approach contend that a complete understanding of any subject requires
knowledge of history. Through a historical lens, the administrative institutions were intended to be
explained. It examines administrative institutions by following their evolution over a specific period.
As a result, this method chronologically arranges and evaluates information on administrative
institutions. The historical technique was emphasized by Woodrow Wilson, the founder of the field
of public administration Opens in New Window, as one of the two approaches best suited for the
study of public administration (the other being the comparative approach). A society with a long
history would greatly benefit from using this strategy due to the distinctiveness of its administrative
structures. This approach studies public administration through the historical developments in the
past having its impact on the present. L.D. White's four outstanding historical books, The Federalists
(1948), The Jeffersonians (1951), The Jacksonians, and The Republicans Era, each examine the early
years of the American federal government. The Arthashastra of Kautilya and the literature on Mughal
and British administration offer glimpses of India's former governmental structure. The biographical
approach to administration and this approach are closely related.
• Case Method Approach
It relates to the recounting of certain incidents that make up or influence an administrator's
judgement. It aims to recreate administrative realities and familiarize public administration students
with them. When Harold Stein was published in 1952, it gained popularity in the United States of
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America. Numerous case studies have been published in India as well by the National Academy of
Administration in Mussoorie and the Indian Institute of Public Administration in New Delhi.
According to Dwight Waldo, the case method will always be a part of public administration research
and instruction.
• Institutional Approach
This approaches to the study of public administration are the oldest, and in terms of number, it has
the largest following. But it is the least homogeneous of all public administration schools as it is
including its protagonists, teachers, and research workers with varied training, ranging from political
scientists to specialists in scientific management techniques. Since the fifties of the last century, there
has been a shift in this approach. Although the study has retained its institutional character, the policy
administration dichotomy has been disqualified after being found too hasty. More attention is now
being given to the normative aspects of the public administration dichotomy has been disqualified
after being found too easy.
• Structural Approach
The Structural Approach is based on the description of the administrative structure of the
governmental bodies. This approach emphasizes the study of POSDCORB techniques of
administration. But the administrative structure and techniques cannot be studied without proper
reference to the environment in which public administration is working as well as the human factor.
Taylor concentrated on the work methods, machines, and materials. He concentrated on the questions
of mechanical efficiency. Scientific Management taking efficiency as the objective, views
administration as a technical problem concerned basically with the division of labour and
specialization of functions. This approach is considered defective because it ignores the human
elements in administration.
• Human Relations Approach
After 1920, a human relations theory was developed to describe how an organization's informal
culture works. Taylor's Scientific Management method, a branch of the wide Classical approach that
gained popularity at the start of the 20th century, sparked the development of this technique. The
entire human culture was influenced by the material and mechanical environment as a result of the
Scientific Management approach. The focus in industries was on raising production. As a result,
labour turned into a commodity and a human cog in the machine. Before employees, the main issues
were poor pay, long hours, unpleasant working conditions, and exploitation of labour. Managers
disregarded the social and psychological demands of the workplace. These forces combined to make
employees disinterested in their jobs. Additionally, as a result of technical advancements in the
workplace, workers' professional and educational levels significantly grew, increasing their
assertiveness towards their rights and interests. The Communist Revolution in the Soviet Union,
together with the class conflict and trade union movement in the United States, served as the stimulus
13
for the development of the human relations approach.
• Behavioural Approach
The term "behavioural approach" refers to the scientific investigation of people in various
organisational contexts. This method's focus is on human behaviour, and all of its findings are drawn
from that. It makes an effort to comprehend why public servants behave in the way that they do. It
uses a variety of methods from behavioural science to comprehend how people behave in a variety
of administrative settings. Instead of concentrating on laws and regulations; it performs scientific
research on how people behave both individually and in groups within various cultural situations. To
do this, businesses have been considered as social systems where informal communication and
interpersonal relationships between employees are given significant consideration. It is believed that
understanding of internal dynamics of administration has a direct bearing on the behavioural
understanding of its employees. Behaviouralism in public administration has its roots in Elton Mayo's
Hawthorne Experiments, which were carried out between 1928 and 1932. By posing a challenge to
the mechanical nature of the work of classical scholars, these studies were successful in exposing the
significance of human dynamics in administration. The Hawthorne
investigations revealed the significance of interpersonal relationships in affecting organisational
performance in addition to confirming the existence of informal organisations inside formal
structures. M.P. Follet's publications, which came before him, stimulated innovative thought in this
field. It is impossible to ignore her contribution to the behavioural approach's growth. Instead; her
ideas might be seen as a predecessor to the behavioural and human relations movements. She
introduced ideas like the law of situations, constructive conflict, democratic leadership, power,
authority, and control, among others, in her well-known book “Dynamic Administration,” which
encouraged Harvard Business School students working under the direction of Elton Mayo to carry
out several experiments that are known as the “Hawthorne Experiments.” The results of these tests
gave traditional and scientific management thought a major shock.
• Systems Approach
According to this system approach in organizational analysis, an organization can be considered a
social system to be studied in its totality in other words, a system is a collection of interrelated parts
that receive inputs, and act upon them in an organizational or planned manner and thereby produces
certain outputs. A system is characterized by three properties. First, it is a set of interactions. Second,
these interrelated activities or elements have a bouncily set around them. The most important activity
of a system is to maintain administrative order and equilibrium among various subsystems. Thus, it
is an assembly of interdependent parts that interact among themselves. Interdependent implies that a
change in one-part influences other parts, or affects the entire system. Individuals are viewed as the
basic unit of organizational systems. All human organizations are open systems. It receives input in
the form of human and material resources and gives out outputs in the form of products, services or
14
rewards to its members as well as to the larger system. Herbert Simon was the chief contributor of
the system approach to the study of organization. According to him, organization is a total system a
composite of all the subsystems which serve to produce the desired output. His basic assumption is
that the elements of organizational structure and function emanate from the characteristics of human
problem-solving processes and rational choice. Therefore, the organization is viewed as a system
comprising individuals making choices and behaving based on their reactions to their needs and
environment
• Ecological Approach
Fred W. Riggs made a pioneering contribution towards developing the Ecological approach, which
analyzed the functioning of administration situated in an environmentand provided important insights
into the functioning of administrative systems in prismatic or developing societies. His important
work “The Ecology of Public Administration” (1961) and “Administration in Developing Countries:
The Theory of
Prismatic Society” (1964) reflects upon this subject. This approach has helped in understanding the
reasons behind the differences in the functioning of administration in different societies and also
within a society. Here administration is considered as a system, which is a unit that continuously
interacts with its environment consisting of economic, social and political components and
influencing each other in multifarious ways. This is premised on the idea that our society is a larger
system consisting of various sub-systems and administrative institutions are one of them. Ecological
analysis has proved to be immensely useful in promoting comparative studies. Through Reflections
of Public Administration (1945), John Gaus introduced the ecological perspective in public
administration.
• Socio-Psychological Approach
Many administrative thinkers have made employee motivation a key topic of study.Scientific
management created the piecework-based payment system because it thought that manipulating
incentives and punishments might encourage employees. It was expected that a worker would be
persuaded to create more because remuneration was based on how much was produced. The idea
behind specialization was that if a person focused on a specific area of labour, he would create more,
which would increase his pay. This notion of motivation was criticized by Elton Mayo's Hawthorne
experiments, but it did not produce a complete explanation of motivation. Abraham Maslow achieved
a breakthrough in human motivation in 1943 with the publication of his work titled "A Theory of
Human Motivation" in the journal Psychological Review. Maslow proposed a hierarchy of human
needs in this essay. Humans are pleasure-seeking creatures who are driven to meet their basic
requirements. Before Maslow, all administrative philosophers of the human relation school adopted
an instrumental view of man, believing that he could be manipulated to become a more productive
tool of the organization. Maslow deviates from this line of thought. He claims that the employee
15
should not be considered a tool since an independent hierarchy of needs motivates him. In other
words, man is a self-actualizing entity. Maslow believes that the best managers are those that increase
their employees' health. This course attempts to clarify Abraham Maslow's and Frederick Herzberg's
perspectives on human motivation while also assessing the influence of their motivational theories
on organizational processes.

2.4 SUMMARY

The approaches to the study of public administration can be divided into normative and empirical
approaches. The normative approaches of public administration concentrate on what public
administration should be. The empirical approach focuses on the description and analysis of actual
administrative situations. Several approaches to the subject have been developed, including the
Historical Approach, Legal Approach, Philosophical Approach, Institutional Approach, Case
Method Approach, System
Approach, Behavioural Approach, Structural Approach, Ecological Approach etc.

2.5 KEY TERMS

• Public choice theory: The subset of positive political theory whichdeals with subjects in
which material interests are assumed to predominate
• Heterogeneity: The simultaneous presence, side by side, of quitedifferent kinds of system,
practices and view points
• Formalism: The degree of discrepancy or congruence betweenthe formally prescribed and
the effectively practiced, between norms and realities
• Nepotism: Providing unfair advantages to one’s own family, especially if one is in a
position that commands power

2.6 QUESTIONS AND EXERCISES

1. Define the term ‘System’. What is the relevance of System Approach for the study of complex
organization in public administration?
2. Explain systems model for policy analysis.

3. Explain the various approaches to the study of public administration.

2. Briefly explain the behavioural approach.

2.7 REFERENCES

Riggs, F.W. 1961. The Ecology of Public Administration. New York: AsiaPublishing House.
Willoughby, W.F. 1927. Principles of Public Administration. Washington:Publications of Institute for
Government Research.
16
Dahl Robert A. 1947. The Science of Public Administration. USA:Blackwell Publishing.
Easton David 1957. An Approach to the Analysis of Political Systems. New York: Ardent Media
Inc.,
Churchman Charles W. 1959. Measurement: Definitions and Theories. USA, New Jersey: Philburn
Ratoosh

17
UNIT-3: PUBLIC AND PRIVATE ADMINISTRATION

Structure

3.1 Objectives

3.2 Introduction
3.3 Public and Private Administration
3.4. Summary
3.5 Key Terms
3.6 Self Assessment Questions
3.7 References

3.1 OBJECTIVES
After going through this unit, you will be able to know:
• What is Public and Private Administration
• Similarities Between Public and Private Administration
• Distinction Between Public and Private Administration

3.2 INTRODUCTION
Public administration refers to the administration which operates in the governmental setting. Private
administration, on the other hand, refers to the administration which operates in non-governmental
settings, that is, business enterprises. Hence, they are also known as governmental administration
and business administration respectively. Public administration is different from private
administration in terms of the environment which is the institutional setting in which it operates. Paul
H. Appleby, Sir Josia Stamp, Herbert A. Simon and Peter Drucker made a distinction between public
and private administrations. According to Appleby, Public administration different from private
administration in three aspects that is a political character, breadth of scope, impact and
consideration, and public accountability.

3.3 PUBLIC AND PRIVATE ADMINISTRATION

The term public administration appears to suggest that there must be non-public or private
administration also. Some thinkers believe that allthe administration is one and there is no difference
between public orprivate administration. There is difference of opinion regarding the relationship
between public and private administration. There are somethinkers who consider that there is no
difference between the two andthat the administrative activities and techniques are similar in all
the organizations, whether they be private or public. Urwick, Mary Parker Follet and Henri Fayol
18
subscribe to this view. According to H. Fayol, ‘we are no longer confronted with several
administrative sciences but withone which can be applied equally well to public and private affairs.’

Similarities and Differences between Public andPrivate Administration

Various thinkers suggest various points of similarities between the two.First, many skills, techniques
and procedures adopted in private and public administration are the same, e.g., accounting, office
procedureand management, etc. This view holds true because of the fact that there is an occasional
inter-change of personnel between the two. It would not have been possible, had there been
difference in the workingof the private and public administrative organizations.

The public and private administration show a number of similaritiesin practice. We usually say
that all those activities which are performedby the governmental agencies or public agencies from
part of public administration while those performed by the private agencies are called private
administration. There are, however, many activities which areperformed both by private and public
agencies. For example, businessactivities were mainly performed by private organizations. But, the
Government has taken upon itself many economic and business activities, which hitherto were the
preserves of private administration.

There are four basic elements of similarity between the public and private administration,
which are as follows:

1. The cooperative element: Public administration is a cooperative group effort in a public

or private setting. In every human organization, be it private or public, the key to
successful operations is the effective utilization of human andphysical resources. Though
the purposes or goals of these organizations may vary but the common factor is the
elementof cooperation which is present in both.
2. The large size of organizations: In all the organizations where the number of
employees is substantially high, the bureaucratic element is present. As it become
difficult for one person to look after all the employees, the intermediate levels of
supervisions are required. In other words various levels of hierarchy evolve and the
organization grows in complexity. Thus, bureaucracy is another major element of
similarity between the two.
3. Scientific analysis: Scientific analysis involves breaking downeach task into its component
parts, studying the movement of the workers, the use made of materials and equipment,
experimenting with different work methods and procedures and finally adopting those
which proved most efficient. This scientific technique is increasingly used in both public
as wellas private administration.
4. The human relations approach: The human relations approach is the main focus of

19
 similarity between the two.

Though there are certain points of similarity between the public and private administration yet no
private organization can ever be exactlysame as a public one. The following are some points of
differences between the two types of administration:

• Political direction: The primary distinction between public andprivate administration lies
in the fact that unlike public administration, private administration is not subjected to political
direction, save in times of the gravest emergency. The ends it pursues are of its own device.
Its objectives generally do not depend upon political decisions. But the administrator under public
administration has to carry on the orders which he gets from thepolitical executive with little
option of his own.

Profit motive: Public administration is conducted with the motiveof service while the motive
of private administration is profit- making. If the establishment of a textile mill brings more
profit tothe capitalist than the establishment of a sugar mill, the former will be preferred by
him, however urgent the need of the lattermay be. If private administration is useful to the
public, its serviceto it is a by-product of profit-making. In public administration somefunctions
are performed by the state, which are entirely money-consuming functions, for instance,
running of a government school or hospital.

• Service and cost: In the matter of public administration only suchamount of money is raised by
taxation which is necessary for therendering of the service. In other words, there is an intimate
relationship between the service rendered and the cost of service charged from the public. A
government budget is generally a deficit budget, i.e., expenditure exceeding the income. In
privateadministration, income often exceeds expenditure because thereis usually an attempt made
to extract as much money as possiblethrough the sale of products or services.

• Nature of functions: Public administration is more comprehensive than private

administration. It deals with the various types of needs of people, for example, in most countries,
it maintains railways to facilitate movement of goods and passengers, provides posts and
telegraphs to facilitate communication, maintain hospitals and dispensaries to protect public
health. In a socialistic state the scope of state activity is still greater since its aim is to achieve
greatest happiness of the greatest number. Private administration does not usually cover the
economic needs of life. Public administration carries out functions, which are vital for the very
existence of the people, forinstance, defence of the country and maintenance of law and order.
Private administration is concerned with less vital functions,e.g., manufacture of cloth, supply of
sugar, etc., Besides, publicadministration monopolizes some of the services. For example,in
India, it alone runs railways, manages posts and telegraphs and maintains an army. No private
individual can undertake any of these functions. In private administration more than one

20
 organization undertakes the same activity, e.g., supply of cloth,plying taxis for hire, etc.

• Public responsibility: Public administration has responsibility to the public. In the words of
P.H. Appleby, ‘Government administration differs from all other administrative work by virtue
of its public nature, the way in which it is subject to public scrutinyand outcry.’ On the other
hand, private administration is only responsible about the people indirectly and generally it
securesits own ends and not the welfare of its people.

• Uniform treatment: Public administration should be consistentin procedure and uniform in

dealings with the public. An officialcannot show favour to some people and disfavour to others.
A private administration, on the other hand need not worry about

the uniformity in treatment. A shopkeeper selling cloth may give cloth on credit, but a clerk in a
post office will not sell stamps oncredit.

• Public relation: The public and private administration also differson the principle of public
relations. In the business world it is employed to win customers, by window displaying, free
samples,design and colour of labels.

• Efficiency: It is felt that private administration is superior in efficiency to public

administration. The glamour for ‘a businessman’s government’ or ‘Commercialization
of the wholemachinery of government’ or privatization of the octroi, electricityproduction and
distribution, etc., shows that the people regard private administration more efficient which
enjoys certain advantages, e.g., differential wage payment as incentive to increase production
and to attract staff of superior ability from rival firms, etc., over public administration which
is marked by red tapism, extravagance, corruption and inefficiency. In a privateadministration
the incentive of more profits impels the individualto devote himself whole-heartedly in his
business. But it does not mean that private administration is always efficient, or public
administration is always inefficient. If the incentive of cash profits is lacking in public
administration then the incentive and desire tomake one’s own administration successful and
win public approvalis present there and with this incentive the administrators devotethemselves
whole-heartedly to achieve the efficiency of the office.

• Organization: Though the principle of ‘organization’ is relevant to both public and private
administration, yet it has greater socialconsequences in the sphere of the former than in the
realm of the latter because a defect in the organization in public administration will do more
harm to the public than a lacuna in private administration. Huxley writes, ‘The state lives in
a glasshouse, we see what it tries to do, and all its failures, partial or total, are made the most
of. But private enterprise is sheltered under opaque bricks and mortar.’

• Monopolistic: In the field of public administration, there is generally a monopoly of

government and it does not allow privateparties to compete with it. For example, in most
21
 countries no person or body of persons can establish post and telegraph, railway, or coin
currency for these are the exclusive fields of the government. This is not so in private
administration wherein thereare several organization competing with each other to supply the
same commodity or to meet the same need. Of course, in certaincases, even private concerns
may have a monopoly.

• Officials remain Incognito: In the public administration even themost senior officials remain
incognito and their identity is not disclosed. This is so because whatever they do, they do in
the name of the government and not in their own name. On the contrary, a private
administration entrepreneur does things on his own behalf and is well-known in the business
circles. In manycases, even business concerns are named after the names of their proprietors.

• Psychological difference: There is also a psychological difference between private and public
administration. In the USA, during World War II, the coal mines were placed under
governmental control and although no appreciable changes in the administration of the coal
mines were made, there came abouta change in the psychology of the workers for now they well
knewthe dangerous consequences of strikes, etc.

According to Simon, the distinction between public and private administration relates mainly to three
points, which are as follows:
1. Public administration is bureaucratic whereas private administration is business like.

2. Public administration is political whereas private administrationis non-political.

3. Public administration is characterized by red tape whereasprivate administration is free

from it.

3.4 SUMMARY

The generalizations which distinguish public administration from private administration by special
care for equality of treatment, legal authorization of, and responsibility of action, public
administration by special care for equality of treatment, legal authorization of, and responsibility of
action, public justification or justifiability of decisions, financial probity and meticulousness, and so
forth are of very limited applicability. Public and private administration are two species of the same
genus, but they have special values and techniques of their own which give each its distinctive
character.

3.5 SELF ASSESSMENT QUESTIONS

1. Discuss the similarities between public and private administration.
2. Discuss the difference between public and private administration..

22
3.6 KEY TERMS

• New public administration: An anti-positivist, anti-technical and anti-hierarchical reaction

against traditional public administration

• New public management: A management philosophy used bygovernments since the 1980s to
modernize the public sector; abroad and very complex term used to describe the wave of public
sector reforms throughout the world since the 1980s

3.7 REFERENCES

• Prasad, D. Ravindra, V.S. Prasad and P. Satyanarayan, 2004, Administrative Thinkers (Ed), Sterling
Publishers, New Delhi.
• Bhattacharya, Mohit, 1998, New Horizons of Public Administration, Jawahar Publishers &
Distributors, New Delhi.
• Bertram, M. Gross, 1964, The Managing of Organisations, The Administrative Struggle, The Free
Press of Glencoe, Collier Macmillan. London.
• Denhardt, Robert B. and Joseph W. Grubbs, 2003, Public Administration: An Action Orientation,
Fourth Edition, Thomson (Wadsworth), Canada.
• Sharma, M.P. and B.L. Sardana, 1988, Public Administration in Theory and Practice, Kitab Mahal,
New Delhi. Srivastava,
• Om Price, 1991, Public Administration and Management, The Broadening Horizons, Volume 1,
Himalaya Publishing House, Delhi

23
 UNIT-4: EVOLUTION OF PUBLIC ADMINISTRATION

Structure

4.1 Objectives

4.2 Introduction
4.3 Evolution of Public Administration
4.4 Summary
4.5 Self Assessment Questions
4.6 References

4.1 OBJECTIVES
After going through this unit, you will be able to know:
• The emerging patterns of Evolution of Public Administration
• The basic concepts of each phase of the evolution of Public Administration

4.2 INTRODUCTION
The term ‘Public Administration’ has two perspectives. First, it is concerned with the activity of
administering the affairs of the government, such as the maintenance of law and order, etc. Second,
it is also associated with many fields of study such as sociology, political science, economics and
philosophy etc. As a discipline, the study of Public Administration started in the 19th century after
Woodrow Wilson, the father of Public Administration had done many commendable works in this
field. It was he who thought
of separating Public Administration from politics to focus wholly on Public Administration as a
separate subject. The evolution of Public Administration began with Wilson’s article, namely ‘The
Study of Administration’ in the Journal of ‘Administration Science Quarterly’, published in 1887.
After the publication of Wilson’s article, a new era for the study of Public Administration evolved
gradually which led to the expansion of Public Administration as a separate discipline and the subject
has been introduced in many important and reputed universities of the world. Though, Public
Administration as a separate social science discipline has evolved with full of ups and downs. The
evolution of Public Administration is divided into the following six phases:

4.3 EVOLUTION OF PUBLIC ADMINISTRATION

The study of public administration has evolved over the past century, with different eras placing
emphasis on distinct theories, approaches, and focal points. Though early notions of a strict

24
separation between politics and administration laid the groundwork for the field of public
administration, scholars have since sought to better integrate politics and administration in
recognition of their interconnected nature. Broadly, the chronology of public administration can be
divided into five stages:

1. The politics-administration dichotomy

2. Principles of administration
3. Era of challenge
4. Identity crisis
5. Public policy perspective

This progression reflects public administration’s growth from a fledgling field focused on the
bureaucratic hierarchy to an interdisciplinary social science drawing on fields like political science,
economics, sociology, and psychology. Through periods of turmoil and reinvention, public
administration has matured into a dynamic discipline engaged with complex policy questions.
Looking back at the evolution of public administration provides insight into the field’s historical
foundations and changing nature. Tracing major stages in its development contextualises current
theories and allows us to anticipate future directions. This overview examines each chronological
stage in turn, charting the discipline’s growth and refinement over more than a century.

Stage 1: Politics-Administration Dichotomy (1887-1926)

The first stage in the evolution of public administration is known as the politics-administration
dichotomy, spanning from 1887 to 1926. This concept originated in an 1887 essay by Woodrow
Wilson titled “The Study of Administration,” in which he argued for a separation of politics and
administration. Wilson believed that administrative activities should be separate from political
activities. He asserted that administration should be run on scientific principles that are autonomous
from political influence. Politics, in Wilson’s view, was associated with policy making, while
administration was concerned with policy execution. Under the politics-administration dichotomy,
elected officials and policymakers handle the political process and make high-level decisions.
Meanwhile, non-elected, professional administrators carry out day-to-day operations and implement
policies in an apolitical, neutral manner. The dichotomy aims to isolate administrative decisions from
the influence of political parties, interest groups, and electoral pressures. This theoretical separation
of politics and administration was highly influential in the field’s early development. It established
public administration as a science, lending it legitimacy and autonomy from political science. The
dichotomy dominated discourse in public administration through the 1920s. However, it later came
under scrutiny as an oversimplified and unrealistic representation of government functioning.

25
Stage 2: Principles of Administration (1927-1937)

This stage was dominated by efforts to identify the principles of public administration. Scholars
sought to define the field and establish it as a science by determining its fundamental theoretical
principles.

Key contributions include:

1. – W.F. Willoughby’s Principles of Public Administration (1927) which presented ideas like
unity of command, hierarchy, accountability, and personnel management.
2. – Leonard D. White’s Introduction to the Study of Public Administration (1926) covered
issues such as the separation of policies and administration, executive leadership, personnel
management, and so on.
3. – Luther Gulick and L. Urwick’s Papers on the Science of Administration (1937) put forth
the POSDCORB acronym – Planning, Organizing, Staffing, Directing, Coordinating,
Reporting, and Budgeting as the key principles of administration.
The principles approach aimed to provide public administration theory distinguishing it from
political science and management. However, it was critiqued for overemphasizing rigid, hierarchical
principles over adaptability to changing contexts. Still, this stage established public administration’s
foundations as a field of administrative science.

Stage 3: Era of Challenge (1938-1947)

There began stage 3 in public administration which is known as the era of challenge, the time being
1938 to 1947. It was a Challenge to the previous age, the challenge to the previous state. Challenge
would mean the people who are formulators of this phase, are questioning the previous phase, that’s
why the challenge. The challenge is that the previous phase had always been talking of all kinds of
principles but this phase says that it is not possible just to go through any kind of understanding of
an organization just by formulating and following principles there has to be more to it. The
Significant publications in the 1940s, Harvard -Simons Administrative Behavior and Robert Dahl’s
essay entitled The Science of Public Administration, Three Problems, were actually if one talks of
what this phase talks about, these two publications talked of the entire phase in their entirety. Simon
argued in his article, The Proverbs of Administration, 1946, that there are no principles of
administration. So he’s trashed is essentially the principal phase that there can be nothing called
principles in administration. He added that these proverbs were nothing more than general statements
based on person-to-person experience and are always lacking in any kind of theoretical formulation
or understanding. For instance, Robert Dahl raised a question about the claim of it being a science

26
once more in 1947. Now the quest for principles of administration according to Robert Dahl, was
obstructed by three factors.

Firstly, the an unavoidable need for normative factors in public administration due to objective
grounds of efficiency that are based on the communication of necessities. Secondly, he spoke against
the machine concept of organization because it was found out that principally the previous school
just spoke of organization being something like a machine. Thirdly, Dahl criticizes this tendency to
generalize and draw universal principles based upon a few examples drawn from narrow countries
and times. So Simon and Robert Dahl once said that there is going to be some kind of principle in
administration. One is trashing it. On the other hand, the other person was of the opinion that this can
never be public administration, this can never be a science because of certain specific factors.

Overall, the Era of Challenge marked an intellectual turning point for the field of public
administration. What had previously been accepted wisdom – the clear separation between politics
and administration – was now under serious debate and skepticism. This helped lay the groundwork
for new theories and philosophies that would emerge in subsequent stages of the evolution of public
administration.

Stage 4: Identity Crisis (1948-1970)

After World War II, the principles-based approach championed by the scholars at the Brownlow
Committee began to receive criticism. Public administration struggled to establish its own identity
as an academic discipline during this stage. The rigidity of the principles outlined previously failed
to account for the complex realities involved in managing large public bureaucracies.Scholars
challenged the idea that management principles should be value-neutral. The relevance of private
sector practices for public sector management was questioned. Thinkers argued that the unique
responsibilities of public administrators demand different principles suited for advancing democracy
and the public interest. The politics-administration dichotomy that dominated the field’s early years
was heavily critiqued. The intertwined nature of policy making and administration made their clean
separation unrealistic in practice. Calls grew for public administration research to become more
problem-oriented with direct relevance to the issues facing governments. Overall, the identity crisis
of public administration during this period stemmed from the difficulties of applying fixed scientific
principles to the ever-changing needs of public bureaucracies. Finding a coherent conceptual
framework to guide research and teaching remained elusive. This spurred efforts to redefine the
field’s purpose and approach in the following decades.

Stage V-Public Policy Perspective (1971-continuing)

27
The main theme that has emerged in this final stage of evolution is to ensure that public policy
analysis is a central concern. Several fields are demonstrating much interest among public
administration scholars, such as policy science, political economy, policy making, policy analysis,
etc., which are linked to the field of public administration. With the abandonment of the traditional
notion of a politics-administration dichotomy, the public policy approach gained acceptance in
administrative analysis. As a result of the separation between politics and administration, Dwight
Waldo concluded that the concept had become an “outworn credo”. In the view of Robert T.
Golembiewski, there are two basic themes that are woven into the public policy approach stage of
the evolution of public administration. The first is the interpenetration of politics and administration
at all levels or at a number of different levels, and the second is the programmatic character of every
aspect of administration. In general, all of these themes tended to focus attention in public
administration on the political or policy-making process as well as on specific public programs or
initiatives. By adopting a public policy approach to public administration, public administration has
gained social relevance, become more interdisciplinary, and expanded the scope of its activities.

Current Trends

Since the 1970s, there have been several major trends in the evolution of public administration
theory and practice:

1. New Public Management – This approach aims to make the public sector more efficient by
borrowing management techniques from the private sector. There is a focus on performance
management, contracting out services, and increasing competition.
2. Digital Governance – The rise of information technology has led to e-government initiatives,
digitization of public services, big data analytics, and new opportunities for public
participation. Many governments are utilising technology to be more responsive, transparent,
and efficient.
3. Collaborative Governance – There is a greater emphasis on horizontal and vertical
collaboration between government agencies, non-profits, private companies, and civic
organisations to address complex policy problems. Networks, partnerships, and co-
production are becoming more common.
4. Evidence-Based Policy making – Policy decisions are increasingly informed by objective
evidence and data analysis. Scientific methods, experimental designs, and impact evaluations
are used to determine the effectiveness of public policies and programs.
5. Participatory Governance – Citizens are participating more actively in public
administration through means like open government data, crowd sourcing, participatory
budgeting, and social audits. The boundaries between administrators and citizens are blurring.

28
 6. Sustainability – Issues like climate change, environmental justice, and social equity have led
to greater emphasis on sustainable development approaches in the public sector. Concepts
like the triple bottom line (social, environmental, economic) are gaining prominence.
These trends demonstrate public administration’s continuing evolution in response to changing
technologies, societal demands, and governance challenges. More innovations will likely emerge in
the future as administrators adapt to new realities and priorities.

4.4 SUMMARY

There have been various phases in the development of public administration as a subject since the
beginning of the last century. The field began with the politics-administration dichotomy in the late
19th century to establish its legitimacy and its independence from political influences. In the 1930s,
the next stage of development involved principles of management and administration. The following
decades posed challenges to the principles outlined above, as the complexities of public
administration became clear.Public administration underwent an identity crisis after World War II as
it sought to define its objectives and direction of travel. It is more recently that public administration
has adopted a public policy perspective, in recognition of the fact that administration cannot be
divorced from broader societal objectives and political process.

In the future, the interdisciplinary nature of public administration, politics, government, and
democratic ideals will continue to be challenging issues. As public servants continue to confront
transnational policy issues, the field may become more global. A few transformations have occurred
in public administration thanks to new public management reforms, information technology, and big
data. Diversity and pragmatism are expected to be the defining elements of tomorrow’s public
administration theory and practice. However, the field’s ultimate aim to promote the public good
through efficient and responsible governance will be unchanged.

Looking ahead, public administration will likely continue grappling with its interdisciplinary nature,
relationship to politics, role in governance, and potential as an instrument for realizing democratic
ideals. The field may become more globalized as public servants increasingly confront transnational
policy challenges. New public management reforms have already transformed aspects of public
administration, while information technology and big data will bring further changes. Rather than a
single governing paradigm, diversity, and pragmatism will likely define the future of public
administration theory and practice. However, the field’s ultimate concern with promoting the public
good through effective and accountable governance will remain unchanged.

4.5 SELF ASSESSMENT QUESTIONS

29
1. Explain in detail each phase of the evolution of Public Administration.
2. Identify three key concepts of each phase of the evolution of Public Administration.
3. Explain the study of public administration in India.

4.6 REFERENCES

• Avasthi and Maheswari, ‘Public Administration’, Laxmi Narayan Agarwal Publishers, Agra,
1993.
• Bhattacharya, Mohit, ‘Public Administration: Structure, Process and Behaviour’, World Press,
Calcutta, 1987.
• Basu, Rumku, ‘Public Administration: Concept and Theories’, Sterling Publishers, New Delhi
1994.
• Henry, Nicholas, ‘Public Administration and Public Affairs’, Prentice – Hall India, New Delhi,
1998.
• Prasad, D. Ravindra & et al, ‘Administrative Thinkers, Sterling Publishers, New Delhi, 1989.
• Raza, Ahmed, ‘Impact of e-Governance on Democratic Decentralization in India’, KILA Journal
of Local Governance, Vol 2 (1), 2015.
• Raza Ahmed, ‘Public Policy Making and citizen participation in India’, Third Concept, April
2014.

30
 BLOCK-2
THEORETICAL PERSPECTIVE: CLASSICAL THEORIES , NEO-
CLASSICAL AND CONTEMPORARY THEORIES
Unit-5: Scientific Management: F.W Tylor
Unit-6: Ideal-Type Bureaucracy: Max Weber
Unit-7: Administrative Management: Gullick and Urwick
Unit-8: Administrative Management: Fayol
Unit-9: Human Relations Theory: Elton Mayo
Unit-10: Rational Decision-Making Theory: Herbert Simon
Unit-11: Ecological Approach: Fred Riggs
Unit-12: Innovation and Entrepreneurship: Peter Drucker

31
UNIT-5: SCIENTIFIC MANAGEMENT: F.W TYLOR

Structure

5.1 Objectives

5.2 Introduction
5.3 The Background
5.4 Concept of Scientific Management
5.5 Objectives of Scientific Management
5.6 Techniques of Scientific Management
5.7 Principles of Scientific Management by Taylor:
5.8 Criticisms of The Scientific Management Movement:
5.9 Summary
5.10 Key Terms
5.11 Self Assessment Questions
5.12 References

5.1 OBJECTIVES
After going through this unit, you will be able to know:

• Examine the theory of scientific management as propounded by FW Taylor

• Highlight the important contributions of Taylor
• Describe the principles developed by these writers and its uniqueness in the study of
• organizations; and
• Compare and contrast the main ideas of these writers.

5.2 INTRODUCTION
Frederick Winslow Taylor (1856–1915) was an American mechanical engineer and one of the
earliest management theorists. He is often regarded as the "Father of Scientific Management" for
his pioneering work in the field of industrial engineering and organizational management.
Taylor's ideas and principles of scientific management were outlined in his influential book, "The
Principles of Scientific Management," published in 1911. He advocated for the application of
scientific methods to industrial processes with the goal of maximizing efficiency and productivity.
Taylor believed that through systematic analysis and optimization of work processes, both
employers and workers could benefit.

5.3 THE BACKGROUND

32
During the latter half of the nineteenth century, when industrial revolution had reached a stage of
maturity, American business and industry were substantially expanding; it was giving rise to a new
managerial class and resultant new problems of industrial planning and management. The practice
of management began to change from a simple day-to-day problem–solving approach to a more
comprehensive and integrated approach. The multiple managerial problems which were faced by the
managers previously started reoccurring. This situation arose because of rapid industrialization. The
working conditions in the factories were chaotic. The work methods, tools and, procedures were
neither standardized nor planned for efficiency. Choice of methods of work was mainly left to the
workers themselves resulting in considerable ad-hoc planning and inefficiency. The need was felt to
increase productivity which required in the long run a more rational and integrated approach to
managerial problems. The concern for increasing the efficiency of workers to increase production
within the least possible time with least possible resources resulted in the origin of the concept of
“Scientific Management” which is used to designate a body of theory and practice directed towards
more rational and efficient performance in industry. While it was used originally with reference to
direct efforts to increase the productivity of labour, the application of the term has since been
extended to include the basic factors in the process of production as a whole.
Frederick Winslow Taylor (F. W. Taylor) Was the father of scientific management. He was born in
March 20, 1856, Philadelphia, Pennsylvania, U.S. In 1873, at the age of 18 he joined as a consultant
of simond Rolling Company and served as apprentice for four years. In 1878, he went to work at the
Midvale Steel Company, Philadelphia, U.S.A. as a shop clerk and then become the position of chief
engineer with in six years of that very organization. While he working at Midvale Steel, he introduced
piece work in the factory. His goal was to find the most efficient way to perform specific task. He
would closely watch how work was being done and then measure the output. In 1898, Taylor joined
Bethlehem steel, where he developed high speed steel with his colleagues for which he received a
gold medal at a paris exhibition. F.W Taylor wrote two most important books which was an
outstanding contribution , that is “ shop management” and “principles of scientific management”
which were published in 1903 and 1911 respectively.

5.4 CONCEPT OF SCIENTIFIC MANAGEMENT

In order to find ways to raise industrial productivity, many experiments were conducted and
suggestions were made by many management thinkers. The development of Scientific Management
is one such effort emerged from such experiments. The prominent economists such as Henry R.
Towne and Henry Metcalfe expressed their concern over the emerging problems of management.
Towne wrote a paper entitled ‘The Engineer as an Economist’ and presented it in 1886 before the
American society of mechanical engineers. Perhaps this paper inspired Fredrick Taylor, who joined
the society in the same year, to devote his attention to the field of Scientific Management. It is
33
interesting to note that the term ‘Scientific Management’ was first coined by Louis Brandies at a
meeting of Engineers held in 1910. Later it was developed by F.W. Taylor into a full-fledged theory.
Taylor began a series of experiments which lasted for more than two decades. He experimented with
machine tools, speed metals and the like. In fact, one line of his experiments led to the discovery of
high speed steel, which made him well known. Other experiments pertained to the way men handled
materials, machines and tools (motion and time study), which led him to the development of a
coordinated system of shop management. He later expanded his concepts to a philosophy which
ultimately had a major impact on the development of management thought. It is due to these
pioneering contributions that Taylor has been acknowledged as the ‘Father of Scientific
Management’.

5.5 OBJECTIVES OF SCIENTIFIC MANAGEMENT

There were five original objectives of the Scientific Management. They were:
a) Industrial processes can be reduced to units for scientific observation and experiments. The
operations of workmen can be reduced to fundamental motions to ascertain in longest, shortest and
average time required for each motion.
b) The standard time prescribed for each operation can be used as the task for each workman to
achieve. Each unit of product can be produced at a designated standard of efficiency and at a
standard cost.
c) The workmen can be instructed in the best methods for achieving the standards and the
responsibility for imparting such instructions should be in the hands of foremen or supervisors.
d) The workmen can be relieved of the responsibility for determining how a process is to be
performed and thereby enable them to concentrate on the development of their mental dexterities.
e) The workmen can be inspired to accept new methods and to acquire dexterity in carrying out the
specification to achieve performance standards.

5.6 TECHNIQUES OF SCIENTIFIC MANAGEMENT

Functional Foremanship: Functional foremanship is the extension of the principle of specialization.
In this technique, Taylor suggested separation of planning and execution functions. According to
him, foreman should be intelligent, educated, tactful, and should possess special knowledge, manual
dexterity, energy and good health.

Since it is very difficult to find all these qualities in a single person, so he suggested that under factory
manager there should be planning in-charge and production in-charge. Under Planning In-charge, he
placed four personnel namely:

34
 • Route clerk: To decide the sequence of step to work of production.
• Instruction card clerk: The instructor gives general instructions to workers regarding their
work.
• Time and cost clerk: To arrange the time for starting and completions of work and prepare
costs sheet.
• Disciplinarian: Expert is responsible to maintain discipline in the production facility and in
the factory.

while under Production In-charge, he placed four personnel namely:

• Gang boss: To ensure all the machines and tools are in place and ready for workers.

• Speed boss: To ensure that the task is completed in the stipulated time.

• Repairs boss: To make sure that machines and tools are in the proper working condition.

• Inspector: To check that the quality of work is up to the mark.

Taylor believed that in this functional type of organization, the foreman can be trained quickly and
specialization becomes very easy.

Scientific Task and Rate Setting: Through scientific investigation the task of every worker has to
be determined considering an ideal environment prevailing in the firm. The standard task is the
amount of work which an average worker functioning in congenial atmosphere of co-operation and
mutual trust is a very important condition to set and to expect the desired results. Taylor called it “A
proper day’s work” .
Work Study: It is a generic term that includes techniques of method study and work measurement
leading to efficiency with the ultimate object of an all-round improvement. Work study is carried on
to examine human work keeping in view motion, time and fatigue all those factors affecting a human
35
being in performing a job. So, work study is comprehensive inclusive of method, motion, time, fa-
tigue and rate setting.

Time Study: Systematic study of time required to do a particular job by an average efficient worker
has to be fixed before a standard work is allotted to him. Time study is primarily to determine the
standard time taken by a workman. It is the art of observing and recording the best way of doing a
piece of work. According to Taylor, it is not possible to assign a worker just the volume of work he
should do-the optimum that can be expected of him.

Motion Study: It is study of the movement of an employee for eliminating unnecessary motions.
This study carried on scientifically ensures most effective and most economical method of doing a
job. The purpose of such study is to ascertain the best method of performance with the last wastage
of time. This process of motion study analysis in the correct methods for an existing job as a result
increase productivity and save time. Method Study: It is finding out the best way of doing the things.
It minimize the cost of production and maximize the product quality and satisfaction of customer. It
determine the ways and means of simplifying design of the product, the improvement in material
handling, transportation, storage etc. are all included in method study.

Fatigue Study: A worker, it must be admitted, gets tired at a certain point of time and if he is
compelled to continue with his work, he suffers, the work itself suffers. So, scientifically it has to be
determine the amount of frequency of rest intervals required to the worker in completing a task. He
should be dissuaded to work further for the benefit of the organization as well as of the worker.
Energy recoupment is a necessity social needs are there. It is ultimately economical for the firm since
it enhances efficiency.

Task Planning: It is a forward-looking task involving steps to remove the causes that may stand in
the way of proper implementation and smooth functioning of the scheme and the organisation.
Preparation of detailed instructions for the workers, according to Taylor, is a must; workers should
not be allowed to follow their own way of doing work that may lead to inefficient production.
Selection and Training: It cannot be over-emphasized that proper- selection of personnel and their
proper training are essential to ensure a better performance of the firm. Scientifically selected
persons, properly trained and placed in the right position can ensure to a great extent a better
accomplishment of the objectives of the firm.
Standardization: Work-standardization is a primary task in Scientific Management. Scientific study
is carried on and then right from recruitment of staff to their placement and performance of work are

36
all standardised. This study is done with a view to securing better quality, more quantity and output,
economy in the use of materials and overheads.

Specialisation: Under Scientific Management, planning & doing in the organisation of the plant are
separated. Functional foremanship is the concept of eight functional foremen,—contemplated by Dr.
Taylor. Taylor compares this system to a large school where children are successfully taken in hand
by one teacher after another, who is trained in his particular subject.

Mental Revolution: A perfect co-operation between management and the managed is a pre-requisite
for a successful organisation. The organisation cannot expect to achieve the desired results unless the
management and the workers go through mental revolution to accept the principles of Scientific
Management. Taylor suggested mental revolution in the outlook of employers and employees.
In brief, the success of scientific management rests primarily on a fundamental change in the attitude
of management and workers both as to their duty to co-operate in producing the largest possible
surplus and as to the necessity for substituting exact scientific knowledge for opinions or the old rule
of thumb or individual knowledge.

Management of Exception: In Scientific Management, it is contemplated that routine matters

should be left to the middle and lower management level personnel and the top management should
concentrate on significant deviations from the normal exception.

5.7 PRINCIPLES OF SCIENTIFIC MANAGEMENT BY TAYLOR:

Science, not the Rule of Thumb: Scientific management suggest doing the work systematically,
determining the work clearly and sequentially. This rule focuses on increasing the efficiency of an
organisation through scientific analysis of work and not with the ‘Rule of Thumb’ method. He
suggest This decision should be based on scientific analysis and cause and effect relationships rather
than ‘Rule of Thumb’ where the decision is taken according to the manager’s personal judgment.

Scientific Selection and Training of Workers: He suggested the procedure for selection of workers
should be designed scientifically. He also suggested the scientific selection of employees based on
job analysis and using various selection tests. The errors committed at the time of selection may be
very costly on later period. If we do not have right workers on the right job, the efficiency of the
organisation will be reduced.
Taylor believed providing training and development facilities to all the employees based on training
needs. Management is responsible for the scientific education and training of workers. This process
helps the organization to develop the employees potentialities and facilitates for organizational
success.
37
Harmony, Not Discord :Taylor indicated and believed that the relationship between the workers
and management should be cordial and completely harmonious. Management and workers should
acknowledge and understand each other’s importance. This requires change of mental attitudes of
the workers and the management towards each other. Taylor called it mental revolution. Taylor also
suggested the mental revolution for both management and workers to achieve total harmony. He
suggest group harmony which can be achieved through satisfying the needs of group members,
eliminating the dissatisfaction and frustration of group members, maintaining healthy interpersonal
relations among the group members and involving them in various group activities.

Cooperation, not Individualism: Scientific management is based on cooperation between

management and workers, as also between workers themselves. Management can earn higher profits
if the workers perform their jobs efficiently and thus ensure better quality, lower costs and larger
sales. Workers on their part can earn higher wages if the management provides them with standard
materials, standard tools, standardised working conditions, training in standard methods, etc.
Therefore management should understand the workers need and take steps to satisfy them and
workers should understand the organizational requirements for maximizing their contribution.

Differential Payment: The basic principles of this system is to penalize a slow worker by paying
him a low piece rate for low level of production and to reward an efficient worker by giving him a
higher piece rate for a higher production. According to Taylor inefficient worker should have no
place in the organization and he should leave the organization by giving him a low piece rate for low
production. Differential piece rate system are introduced in order to motivate the employees to
produce more than the standard level and enhance productivity.

5.8 CRITICISMS OF THE SCIENTIFIC MANAGEMENT MOVEMENT:

For many years, scientific management has been a matter of great debate. Many management
thinkers have commented from various diverse perspectives. It has been supposedly said that the
movement was largely concerned with organizational capability that was observed in purely
mechanistic view point. Labours opposition to Taylorism led to an investigation by Robert Hoxie
on behalf of the United States Commission of Industrial Relations. Hoxie stated that the basic
ideals of scientific management and trade unionism were mismatched. Scientific management
limited itself mainly with the construction, competence and decision-making problems, without
even touching on the psychological and emotional problems of workers such as the routine and
monotony of their work, uncertainty of employment. Sam Lewisohn and Oliver Sheldon, both
management thinkers also commented certain aspects of Taylor’s work. Sheldon stressed the
human aspects of managerial problems, whereas Lewisohn emphasized the maintenance of good
human relations in an organization. The worker, according to Lewisohn wanted justice, status and
38
opportunity above everything else, and hence simply a rise in wages will not automatically lead to
enhanced efficiency M.P. Follett, a well-known administrative thinker stressed out the need to
bridge the gap between the mechanistic approach of Taylor and the approach emphasizing human
relations in organizations. The general accusation that Taylor had abandoned the human factor in
administration led to a series of psychological and sociological
studies with special reference to this factor. The Hawthorne experiment (1927-32) and post-World
War II researches in group dynamics and human relations in industry helped in establishing to a
great extent that psychological and emotional factors were no less important than economic factors
in explaining workers behaviour and determining organizational output and efficiency.
There are studies, however, which counter some of these criticisms. For example, it is significant to
note that Taylor himself recognized the potential for abuse of his methods. This is cleat when he said
that “it may be used more or less as a club to drive workmen into doing a larger day’s work for
approximately the same pay that they received in the past.” Some argue that the current literature
presents a partial view of Taylor’s work. But in fact Taylor anticipated several key motivational
strategies generally associated with human relations movement. He created a sense of mission,
increased two way communication, understood that higher needs are also important as against
economic man approach, used esteem as a motivator and gave workers a chance at self-actualisation,
etc. It is also argued that Taylor’s writings show that he used managers to realise that technical
success requires enhanced human relations and to get an accurate sense of Taylor’s message one has
to read his own account.

5.9 SUMMARY

• The term ‘Scientific Management' was coined for the first time by Louis Brandies in 1910, and

later used by Taylor and others. Henry Lawrence Grant,Harrington Emerson, Frank Bunker
Gilbreth, Lillian Moller Gilbreth, Carl G.Barth, Sanford E. Thompson, Morris L. Cooke and
Horace K. Hathaway alsocontributed to the movement of scientific management.
• Scientific management refers to submission of science to management put into practice. It
engages use of logical methods in decision-making for resolving management problems rather
than depending on rule of thumb or trial and errormethods for the purpose. Basically, scientific
management consists of scrutinyand psychoanalysis of each task, strength of mind of the
standard of work, choose and training of men to carry out their jobs, and make sure that work
isdone in the most well-organized method.
• Taylor doubted the efficacy of the ‘linear' system or the military type of organization in which
each worker is subordinate to only one boss. He replaced this system with what is called
functional foremanship in which the worker receives orders from eight narrowly specialized

39
 supervisors.
• According to Taylor, the essence of scientific management is Mental Revolution. It involves a
complete mental revolution in the attitudes of workers toward theirwork, their fellowmen and
their supervisors. It also involves a complete mentalrevolution in the attitudes of managers
toward their fellowmen, workers and the ways in which they handle their daily problems.
Taylor held that ‘withoutthis complete mental revolution on both sides, scientific management
does notexist.

5.10 KEY TERMS

• Factors of production: The inputs used in the production of the goods andservices

• Economic planning: The long term plans of an incumbent government tocoordinate

and develop an economy
• Acharya: A term used to refer to a spiritually enlightened teacher

• Gotra: A term used to refer to the origin of a family tree. It implies clan lineageand is of
significance while arranging Hindu marriages where marriage betweentwo people belongingto
the same gotra is prohibited.

5.11 SELF ASSESSMENT QUESTIONS

1. Taylor attempts to analyse the workflows of the workers in a factory. The objective of Taylor
is to improve efficiencyof the economy as well as of labourproductivity. It is one of the attempts
to apply for science as well as to the studyof management.

2. In reference to the workers, Taylor came across a tendency on their part to avoid work and

restrict production which was termed as soldiering

3. What are the two different types of soldiering?

4. With the help of an example define gang plank?

5. List the disadvantages of decentralization

5.12 REFERENCES

Wood, John C., Michael C. Wood. (2002). Henri Fayol: Critical Evaluations inBusiness
andManagement, Volume 1. New York: Taylor & Francis.

Bedeian, Arthur G. (1979). The Administrative Writings of Henri Fayol:

Abibliographicinvestigation. Monticello: Vance Bibliographies.

40
Taylor, Frederick Winslow. (2007). The Principles of Scientific Management.
Minneapolis: Filiquarian Publishing, LLC.

Wood, John Cunningham, Michael C. Wood. (2002). F. W. Taylor: Critical Evaluations

inBusiness and Management, Volume 4. New York: Taylor & Francis.
Maheshwari, S. R. (2003). Administrative Thinkers. New Delhi: Macmillan

41
UNIT-6: IDEAL-TYPE BUREAUCRACY: MAX WEBER

Structure

6.1 Unit Objectives

6.2 Introduction

6.3 Life and Works

6.4 Meaning of Bureaucracy

6.5 Features of Bureaucracy Organization

6.6 Max Weber Bureaucracy Theory

6.7 Kinds of Authority and Legitimacy

6.8 Criticisms of Weberian Model of Bureaucracy

6.9 Summary

6.10 Key Terms

6.11 Questions And Exercises

6.12 Further Reading

6.1 OBJECTIVES
After going through this unit, you will be able to know:

• Understand the clear concept of Weber’s idea on Bureaucracy

• Evaluate the Bureaucratic Model as developed by Max Weber

6.2 INTRODUCTION
The bureaucratic model was identified and developed by Max Weber. It contributed immensely to the
development of organizations. It is often used to refer to characteristics which are generic to formal
organizations. He also suggested that bureaucracy is an inevitable consequence of increasing size
and complexity of organizations.
Administrative organization, of which bureaucracy is a part, is not just a twentieth century
phenomenon. It existed in elaborate forms even thousands of years ago in Egypt and Rome, and,
in rather sophisticated forms, in China and India in ancient times. In contemporary society, the
institution has assumed a special dimension. For some writers it is this institution that epitomizes
modern era.

6.3 LIFE AND WORKS

42
Max Weber was a versatile scholar who contributed to many fields of humanity studies viz.
Economics, History, Political Science, Sociology, Public Administration, Law, Religion and Culture
Studies. He was a key proponent of methodological anti-positivism, arguing for the study of social
action through verstehen method, i.e. interpretive means based on understanding the purpose and
meaning that individuals attach to their own actions. So far as Public Administration is concerned,
his seminal contribution is found in his studies of bureaucracy and leadership. His analysis of formal
organization and of bureaucratic model are considered important because of his insight into the nature
of bureaucracy as a rational- legal model of organizational leadership and of his in-depth analysis of
the behavioural characteristics of the bureaucrat as the specimen of politically neutral and
professionally efficient agent of the bourgeois state machinery. Historically, he was contemporary
with the scientific management movement and was well-conversant with the economic, legal,
political and cultural tradition of European society. Weber’s bureaucratic model has been the subject
of both intense admiration as well as sharp criticism. Similarly, Weber’s theories of legitimacy and
domination have formed the basis of a number of further studies.

Maximilian Karl Emil Weber (Max Weber) was born in Erfurt, Prussia (present-day Germany) he
was a German sociologist; described a theory to operate an organization in an effective way
which is known as the bureaucracy management approach or Weberian bureaucracy. Weber’s
father was a reputed lawyer and greatly involved in public life, so his home was constantly immersed
in both politics and academic circles. In 1882, he enrolled at the University of Heidelberg, but after
two years left to fulfill his year of military service at Strassburg. After his release from the military,
Weber finished his studies at the University of Berlin, earning his doctorate in 1889. He studied Law,
Economics, History and Philosophy. He started his career as a professor of Law at the University of
Berlin. In later life he served as a professor of economics at the university of Freiberg (1894) and at
the university of Heidelberg (1896).

Weber has made an outstanding contribution in the field of Sociology and administration. Some of
his major publications and best known works are The Protestant Ethic and the Spirit of Capitalism
(1904) , The Sociology of Religion (1922) and The Theory of Social and Economic Organization
(1925). His works come to public notice and own people’s appreciation after the Second World War
was over.

6.4 MEANING OF BUREAUCRACY

Max Weber was the first social scientist who made a systematic study of Bureaucracy and its
characteristics. One is always reminded of Max Weber whenever there is a discussion on
bureaucracy, i.e, ‘Weberian Model of Bureaucracy’. The term ‘bureaucracy’ has been widely used
with invidious connotations directed at government and business. Bureaucracy is an administrative

43
system designed to accomplish large-scale administrative tasks by systematically coordinating the
work of many individuals. Weber has observed three types of power in organisations: traditional,
charismatic and rational-legal. He has emphasised that bureaucratic type of power is the ideal one.
Historically, a bureaucracy was a government administration managed by departments staffed with
non-elected officials. Today, bureaucracy is the administrative system governing any large
institution, whether publicly owned or privately owned. The public administration in many
jurisdictions and sub-jurisdictions exemplifies bureaucracy, but so does any centralized hierarchical
structure of an institution, e.g. hospitals, academic entities, business firms, professional societies,
social clubs, etc.

6.5 FEATURES OF BUREAUCRACY ORGANIZATION

He found different characteristics in bureaucracies that would effectively conduct decision making,
controlling resources, protecting workers and accomplishment of organizational goals.
Bureaucratic management approach developed by Max Weber is may not suitable for business
organizations but may be suitable for government organizations. From the principles of
bureaucratic organization, it can find these characteristics or features of Bureaucratic Organization
are as follows:
• The high degree of Division of Labor and Specialization.
• There is a well-defined chain of command.
• It follows the principle of Rationality, Objectively and Consistency.
• The relationship among the member of the organization is Formal and Impersonal
relations and it’s based on positions and not on personalities.
• Rules and Regulations are well defined and it indicates the duties and rights of the
employees. These rules apply to everyone from to bottom of the organization and must be strictly
followed.
• Selection and Promotion are based on Technical qualifications.
• Only Bureaucratic or legal power is given importance.

6.6 MAX WEBER BUREAUCRACY THEORY

The bureaucratic management theory, introduced by Max Weber stated that to manage an
organization efficiently, it is essential to have a clear line of authority along with proper rules,
procedures and regulations for controlling each business operation. Bureaucracy refers to the
possessing of control over a group of people or activities through knowledge, power or authority.
After closely observe the above-mentioned features of bureaucracy it can identify certain important
factor of Weberian model of bureaucracy.They are as follows:
Weber gave the following six principles for managing an organization effectively and efficiently:

44
Hierarchy: Weber proposed that there should be a systematic hierarchy in the organization, defining
the position of each employee from top to the lowest level. In such a system, each employee knows
who they have to report, whose orders they need to follow, and what is the role of different personnel
in the organization. . Hierarchy allows for employees to understand and follow the chain of command
from top to bottom.

Division of labor : Each employee has a specific task and target hence enhancing productivity,
promotes efficiency by dividing separate tasks and responsibilities. The whole work should be
assorted into smaller task sets to ascertain that every set of tasks is assigned to the right person, i.e.,
the one who has the capability of fulfilling it. This not only improves the work efficiency but also
ensures proper allocation of job responsibilities.

Formal Rules Regulations and Procedures : There should be a clear set of principles, procedures,
rules and regulations in written form, to be followed universally by everyone working in the
organization irrespective of their position. Procedures are important to any organization and its
processes. Procedures can be in form of policies and together provide direction for daily operations.
Procedures enhance good conduct in an organization, regulate employee performance, provide for
terms of service and improve decision making, while boosting internal processes.

Impersonal Relationships: In an organization, the impersonal relations develop among the

employees, which may lead to favoritism or nepotism. Weber said that the application of rules and
managerial decisions should be impartial and independent of such relations. Moreover, these
decisions must be based on rational and practical grounds rather than favoritism or prejudices.

Formal Selection Process: Weber believed that the workers should be recruited through their
technical skills and expertise instead of ‘first come first selected’ basis. Even the promotion should
be based on performance and merit. This not only leads to better productivity but also adds to
employee’s growth and satisfaction than emotional or impersonal influence.

Career Orientation: According to Weber management should motivate employees to build a long-
term career in the organization by providing job security and performance based incentives to them.
As a result, protect employees from arbitrary dismissal, which should achieve in a high level of
loyalty.

6.7 KINDS OF AUTHORITY AND LEGITIMACY

Legitimacy is the right and acceptance of an authority, usually a governing law or a regime.
Whereas authority denotes a specific position in an established government. Legitimacy is a key

45
element in understanding why people obey their government and other authorities. Weber believed
that there could be only three kinds of legitimate authority, namely Traditional, Charismatic
and Legal-Rational power in the organization:

• Traditional Authority: Traditional authority is legitimated by the sanctity of tradition. The

ability and right to rule is passed down, often through heredity. It does not change overtime, does
not facilitate social change, tends to be irrational and inconsistent, and perpetuates the status quo.

• Charismatic Authority: Under charismatic power, is found in a leader whose mission and vision
inspire others. It is based upon the perceived extraordinary characteristics of an individual. Due to
the extraordinary personality of the managers, the workers are deeply motivated to perform their best
on the task allotted to them.

• Legal-Rational Authority : In legal-rational power, is empowered by a formalistic belief in the

content of the law (legal) or natural law (rationality). the workers either need to abide by the legal
rules or the naturally applicable laws. In short, all the employee need to follow a consistent set of
principles.

6.8 CRITICISMS OF WEBERIAN MODEL OF BUREAUCRACY

Weberian Model of bureaucracy has been extensively criticized by numerous scholars,

academicians and practitioners of public administration mainly on the grounds that the
characteristics of bureaucracy. Robert Merton and other sociologists have questioned the rationality
of the legal-rational model of Weber as it produces certain dysfunctional consequences. To Merton,
the structures - especially its hierarchy and rules, which is rational in Weber’s sense, can easily
generate consequences which are unexpected and detrimental to the attainment of objectives of an
organisation. In stressing this point Merton is only providing a more sophisticated vindication of the
view that bureaucracy means inefficiency. Philip Selznick, pointing to the division of functions in an
organisation, shows how sub-units set up goals of their own which may conflict with the purpose of
the organisation as a whole. Merton and Selznick have shown that the formal specification of
organisational structure outlined by Weber is insufficient as a description of how bureaucrats will in
fact behave, because the officials have their own characteristics as social beings beyond those which
the administrative code specifies. These criticisms reflect the major insights on the behavioural side
of the industrial sociology.

Talcott Parsons, who translated Weber’s famous book Wirtschaft and Gesellschaft, questions the
internal consistency of Weber’s ideal type of bureaucracy. Parsons draws attention to the fact that
Weber expects the administrative staff to be technically superior as well as possess the right to give

46
orders. But this itself gives rise to conflicts within bureaucracy since it is not always possible to
ensure that high position in the hierarchy of authority will be matched by equivalent professional
skill. In such case the individuals working in an organisation will face the problem of whom to obey,
the person with the right to command or the man with the greater expertise. Using Parson’s criticism
as starting point, Alvin Gouldner distinguishes two major types of bureaucracy. Firstly, punishment-
centered bureaucracies, where members of the organisation conform reluctantly to rules which they
consider are imposed on them by an alien group. Secondly, representative bureaucracy, where the
members regard rules as necessary on technical grounds and in their own interest. Gouldner and
others have raised the problems of compliance with rules by the members of an organisation not so
much because of the informal processes arising within an administrative structure but to conditions
outside the organisation which orient the behaviour of the members vis-à-vis the rules. The critics
feel that the Weberian model does not include the orientation of members in relation to the rules in
an organisation. A number of other writers also emphasised on the significant influence of
environmental factors on the behaviour of organisations and pointed to these shortcomings in
Weberian model. Rudolf complained that Weber’s model carries a misconception that administration
was a rational machine and officials were meretechnical functionaries. Reinhard Bendix, one of the
famous intellectual biographers of Weber, argues against the belief that it is possible to adhere to a
rule without intrusion of general social and political values. All rules have to be applied to particular
cases and it is here that the attitude of the officials plays a dominant role in making decisions. A
number of critics like Peter Blau believed that Weberian model of Bureaucracy cannot be applied to
administration of different places and times. Blau felt that a fresh look has to be taken at the concept
of rational administration. In a changing environment “the attainment of organisational objectives
depends on perpetual change in the bureaucratic structure.’ That is why efficiency cannot be
guaranteed by tethering the official to a set of rigid rules. According to Blau, the efficient
administration is possible only when an individual is allowed to identify with the purpose of the
organisation and to adopt his behaviour to his perception of changing circumstances. Robert Presthus
considers that Weber’s concept of bureaucracy makes implicit assumptions about human
motivations, which are not necessarily valid in non-western environments. William Delaney
considers that patrimonial bureaucracy may well be more conducive to economic growth in
underdeveloped societies than rational bureaucracy of the Weberian type. Joseph La Palombara
believes that developing societies may find Russian or Chinese methods of administration more
effective than western bureaucracy.

Simon and March included Weber in the company of classical thinkers like Gulick and Urwick as he
too did not pay any attention to the human behaviour in organisations. Weberian ideal type would
not attain maximum efficiency as it emphasises more on the structure of the bureaucracy than on the

47
human beings who personify it. Philip Selznick and others criticised Weber for his neglect of the
power that a bureaucrat assumes whereby he is ‘increasingly preoccupied with his own social
position and in the end subverts the professed goals of the organisation only on his own power
position’. No impersonal order can stop bureaucrats becoming power mongers and may even
encourage clandestine motives in them. In a democratic setting it is also very difficult to a bureaucrat
to be neutral and impersonal in the face of hectic political activity around him.

Rigid adherence to the principle of hierarchy was also criticised; it does not contribute to repose of
mutual-trust, either in the inter-organisational or inter-personal relation in the administration. This
only embodies ‘mutual suspicion’ as its prime tenet in the relationship patterns of organisation and
their staff. These apart, there are some dangers inherent in this principle, which are disastrous to the
modern administration. The first danger is authoritarianism of the superiors, which is detrimental to
the organisational necessity to work with a team spirit. This is a division tool, which will impede the
forming of bureaucracy into a cohesive team.

6.9 SUMMARY

Weber enunciated some immutable characteristics of legal-rational bureaucracypopularly known as

the Weberian Model of Bureaucracy. These characteristics were hierarchy, merit selection, specialization,
impersonality, etc. He vehementlyasserted that any organization, possessing thesecharacteristics can
perform itsfunctions most rationally and would achieve maximum efficiency and effectiveness. He
characterized his model of bureaucracy as an idea type

6.10 KEY TERMS

• Bureaucracy: Asystem of government in which most of the important decisionsare taken bystate
officials rather than by elected representatives.
• Participatory management: The practice of empowering employees to participate in
organizational decision making.

6.11 QUESTIONS AND EXERCISES

1. On what basis did Weber's analysis of power differ from the analysis made by Marx?
2. What do you understand by the concept of paternalism?
3. How can conflict be resolved in the work place?
4. How does Weber define domination

48
6.12 FURTHER READING

Wood, John Cunningham, Michael C. Wood. (2004). George Elton Mayo: Critical
Evaluations in Business and Management, Volume 1. London: Taylor
&Francis.
Naidu, S.P. (2005). Public Administration: Concepts and Theories. New Delhi:New Age
International.
Graham, Pauline. (2003). Mary Parker Follett Prophet oƒ Management.
Washington:BeardBooks.
Tonn, Joan C. (2008). Mary P. Follett: Creating Democracy, Transƒorming
Management. United Kingdom: Yale University Press.

49
UNIT-7: ADMINISTRATIVE MANAGEMENT: GULLICK AND URWICK

Structure

7.1 Objective

7.2 Introduction

7.3 Life and Works

7.4 Structure of Administration

7.5 Functions of Executive
7.6 Principles of Organization
7.7 Summary
7.8 Key Terms
7.9 Exercises
7.10 References

7.1 OBJECTIVES
After going through this unit, you will be able to know:

• Examine Urwick's classical approach to administration

• Integration of Human and Technical Aspects

• Understand the Executive Functions?
• Know what are the Principles of Organizations
• Understanding the Concept of Departmentalization Theory.

7.2 INTRODUCTION

With the coming of the industrial revolution in the 19th century, many attempts were made to
develop the principles of organisation to meet the requirements of the emerging industry. Among
such attempts mention should be made of the works of F. W. Taylor, an American engineer and
Henry Fayol, a French manager, who developed what today is known as the classical organisation
or management theory. Many others contributed to the conceptualisation of the theory. They
developed theories of keeping organisational efficiency and increased productivity as their goal.
Subsequently, American and British theorists synthesised the organisational or management
theories as applicable to public organisations. Among such writers Gulick and Urwick merit

50
 prominently. Their edited volume The Papers on the Science of Administration (1937) is
considered to be an important landmark in the development of the science of administration. They
synthesised and integrated the ideas, writings and research of earlier theorists on organisations,
structures and executive functions.
Lyndall Fownes Urwick (1891–1983) was a British management consultant and theorist who
played a prominent role in the development of management thought during the early to mid-20th
century. He made significant contributions to organizational theory and management practice.
Here's an introduction to Lyndall Urwick and an overview of his objectives in the field of
management:
Lyndall Urwick was born on March 3, 1891, in England. He had a diverse career that included
military service during World War I and various roles in management consulting, academia, and
government service. Urwick's work was influenced by his experiences and a desire to apply
systematic principles to improve organizational efficiency and effectiveness.

7.3 LIFE AND WORKS

Luther Halsey Gulick III (1892-1993), an acknowledged founder of administrative thought, a pioneer and a
legend, was born in Yumamoto, Japan where he spent his initial twelve years before returning to the USA. He
graduated from Oberlin in 1914 majoring in political science with high honours and obtained Ph.D in 1920
from Columbia
University. He secured Litt.D in 1939 and was conferred LL.D. in 1954. He was Director, Institute of Public
Administration from 1921 to 1961 and later chairma of the Board of Trustees of the Institute for another 21
years. Gulick served on the National Defence Council during the First World War, was Administrator of New
York City
(1954-56) and was Eaton Professor of Municipal Science and Administration at Columbia University (1931-
1942). He undertook several consultancy assignments on administration in the US Administration and several
other countries including one at Calcutta, India concerning water supply under the aegis of World Bank. He
was a member of the President’s Committee on Administrative Management in 1936. He authored more than
20 books and research studies, over 160 articles and 250 unpublished papers, studies, reports, etc. Notable
among his publications include Administrative Reflections from World War II, Metropolitan Problems and
American Ideas,

Modern Management for the City of New York and The Papers on the Science of Administration. He
promoted the establishment of notable institutions like the Brookings Institution, International City Managers
Association, American Society for Public Administration, etc. He was president of both the American Political
Science Association and the American Society of Public Administration; a distinction he shared with LD
White.

51
Lyndall Fownes Urwick (1891-1983), an avid advocate of scientific management, an outstanding management
consultant, thinker and prolific writer, was born in Malvern, Worcestershire, UK. After graduation from New
College, Oxford in 1913, he joined the family business and during the First World War, he joined the army
rising to the rank of Major. In 1922, he joined Rountree at York and later worked as Director of the
International Institute of Management (1928-33). During 1934-61 he was associated with Urwick, Orr and
Partners Limited in the capacities of president, managing director, and chairman. During the Second World
War (1940-42), he worked as an advisor to the Treasury. He chaired the Urwick Committee appointed by the
Ministry of Education to investigate what educational facilities are required to ensure adequate training
facilities for its managers. He was actively involved in spreading management education, he undertook several
consultancies across the globe including the USA and India. He was a key figure in the establishment of the
Administrative Staff College at Henley-on- Thames (now called Henley Management College). He was the
recipient of several international awards and gold medals including the Taylor Key, and Gantt Memorial
Medal (1959) and in 1958 was elected as a Fellow of the International Academy of Management. He published
several books including Management of Tomorrow; The Making of Scientific Management (3 Vols.); The
Elements of Administration; The Patterns of Management and Leadership in the XXth Century Organisations,
Dynamic Administration, Freedom and Coordination. He, along with Gulick, edited The Papers on the Science
of Administration and founded the Administrative Science Quarterly.

Gulick and Urwick had rich experience in working the civil service, military and industrial organisations. It
is because of this, that one finds continued references to discipline and efficiency in their writings. They even
borrowed concepts like line and staff from the military organisation. They were influenced by the machine
model of man developed by Taylor. The studies in industrial management conducted by Henry Fayol also
influenced their thinking.4 Deriving inspiration mainly from their works, the two thinkers synthesised the
classical theory of organisation, which is also known as the Administrative Management theory. They believed
that it is possible to develop a science of administration based on principles. They pointed out the fact that
even an engineer at one time, was considered to be a craftsman who developed his skills at the bench only. It
was only, through empirical observations, analyses and systematized findings committed to recording and
documentation over a considerable period, a science of engineering became possible. In the same way, if the
experiences of administrators are processed it could be possible to develop a science of administration.
Administration hitherto remained an art and there is no reason why it cannot be developed into a science; they
believed.

7.4 STRUCTURE OF ADMINISTRATION

One notable feature in the writings of these thinkers is the importance they attached to the structure
of administration while almost neglecting the role of men in the organisation. Urwick remarks that
‘humanity can't advance its knowledge of organisation unless the factor on the structure is isolated
from other considerations, however artificial such isolation may appear”.He traces a large proportion
of friction and confusion in society, with its major consequences, to the faulty structural arrangements
in organisations. He defined organisation as determining activities that are necessary for a purpose
52
(or plan) and arranging them in groups, which may be assigned to individuals. Thus while the
identification of the tasks and their grouping is given top priority, the individuals to whom the
functions are entrusted come later.

Urwick is aware of the fact that, to begin with, one may not have a clean slate but he suggests that
one may assume to have a clean slate and design an ideal structure of organisation. Any alterations,
if required, may be made later. While conceiving an organisation chiefly as a designing process,
Urwick felt that lack
of design is illogical, cruel, wasteful and inefficient. Illogical because it is inconceivable to appoint
a person and pay him wages without an idea of the position he is likely to occupy. Cruel when an
organisational member does not know the qualifications required for the job and the duties assigned
to him in the job situation. Wasteful because if jobs are not arranged properly, functional
specialisation is not possible and training people to occupy jobs falling vacant due to death or
retirement becomes difficult. Inefficient because the supervisors have nothing to fall back except on
personalities in the event of conflict and confusion.

7.5 FUNCTIONS OF EXECUTIVE:

Gulick condensed the duties of an administrator into a famous acronym POSDCORB incorporating
the first letter of the functions identified. Each letter in the acronym represents one important function
of the manager . They are as follows:

(a) Planning: It is required To fulfill the task of organisation. Planning is the first and most
important step in POSDCORB as it sets the overall structure of the process with activities and
timelines.
(b) Organizing: There is an establishment of formal structure wherein work is divided and
coordinated for the desired objective. Organizing involves right thing in the right place,
everything in a proper place and place for everything. It formally classifying, defining and
synchronizing the various subdivisions of work to be done.
(c) Staffing: This involves recruiting and selecting the right candidates for the job and facilitating
their orientation and training while maintaining a favorable work environment and to do the
work in a professional manner.
(d) Directing: It means giving directions or order to employee to do their work in a systematic
manner. This entails decision making and delegating structured instructions and orders to
execute them.
(e) Co-ordinating: Interrelating of the various kinds of work. It relates not only to the evidence
and conflicts and duplication in organizations but also to secure cooperation and teamwork
between the various units and employees.
53
 (f) Reporting: It involves regularly updating the superior about the progress or the work related
activities. It symbolizes upward flow of information to the executives. Keeping employer
updated of the work done by employee in the organisation through regular reports and research.
(g) Budgeting: Budgeting involves Maintenance of funds under Auditing, Accounting, financial
Planning and Control.

7.6 PRINCIPLES OF ORGANIZATION:

Urwick identified eight principles of administration applicable to all organization. The
principles are as follows:
1. The "principle of Objective"-that all organisation should be an expression of a purpose;
2. The “Principles of correspondence” – authority and responsibility must be co-equal.
3. The “principles of responsibility” – responsibility of superiors for the work of subordinates
is absolute.
4. The “principles of Scalar chain” – a pyramidical type of structure is built up in an
organisation;
5. The “principles of span of control” – a superior cannot supervise directly the work of more
than five or six subordinates whose works interlock.
6. The “principles of specialization” - limiting one's work to a single function;
7. The “principles of coordination” – to work together smoothly , efficiently and effectively.
8. The “principles of definition” – a clear instruction of every duty.

Similarly Gulick expounded ten principles of organisation'.

1. Principle of the Objective: For any organisation to function there has to be an objective
that needs to be fulfilled.
2. The Principle of Specialisation: There is one group that specialises in performance of
specific function.
3. The Principle of Coordination: This principle is important for ensuring coordination in
organisation.
4. The Principle of Authority: In every organisation, various groups have to follow
authority and command of the organisation.
5. The Principle of Responsibility: Since superior claims authority in an organisation
therefore he become responsible for acts of his subordinates.
6. The Principle of Definition: In an organisation, it is imperative that the nature of jobs and
dut

7.7 SUMMARY

54
The contribution of Gulick and Urwick to the administrative theory is:
• Luther Gulick, an acknowledged founder of administrative thought, and Lyndall Urwick, an
outstanding management consultant with rich experiences in civil and military administration made
significant contributions to the synthesis of classical administration. As finance is indispensable for
any administration, the executive has to pay adequate attention to budgeting, financial procedures,
accounting, etc.
• The Papers on the Science of Administration, edited by them, is considered a landmark in the
development of the science of administration. In their view, the process of development of
engineering science, which is based on empirical observations and analysis, is equally applicable to
the development of the science of administration;
• Gulick and Urwick emphasised the importance of structure in the administration. They considered
structure as a designing process and devoted their attention to the discovery of principles based on
which the structure may be designed. They considered principles as a framework of thought and
arrangement of ideas to help in the development of the science of administration;
• Gulick discussed in detail the executive functions and coined POSDCORB by incorporating the
first letters of all the functions of the executive. The acronym, though not comprehensive, helps in
understanding and analysing the functions of the executive;
• Gulick considered a division of work as the basis of organisation. His theory of departmentalisation
addresses the basis of division of work for the creation of departments.
• The four bases of departmentalisation viz, purpose, process, persons and place, popularly known
as the “4Ps”, are extensively used in the creation of departments/units in organisations. Gulick and
Urwick in their writings discussed in detail the application of many other principles like single
executive, staff principle, delegation, span of control, etc.
• Gulick, in his later writings, focused on human factors in administration. Based on over fifty years
of analysis, Gulick observes: “after all governments are constituted of human beings, are run by
human beings and have as their main job, helping, contributing and serving human beings”. He
considered the human being as the dynamic factor intrinsic to the study of administration;
• Gulick also emphasised time as a crucial factor in organisations. He identified five aspects of time,
viz., time as an input, time as an output, time as the flow of events and time as a gap between two or
more significant events or processes and finally timing as a management policy. He considers the
time factor critical in Public Administration;
• The principles of organisation of Gulick and Urwick were criticised for their contradictions and
inadequacy to answer practical organisational questions and also for their neglect of the role of the
human element in organizational processes. In his later writings, Gulick emphasised the role of
human beings in
organisations; and
55
• There cannot be any serious study of the science of administration without reference to the
principles of organisation. Understanding and theorising the dynamic nature of the application of
these principles in different administrative situations is the major challenge of administrative studies
today.

7.8 KEY TERMS

• Zone of indifference: The range in which attempts to influence a person will be perceivedas
legitimate and will be acted on without a great deal of thought.

• Autocratic leadership: A leader, who dictates policies and procedures, decideswhat goals are
to be achieved, and directs and controls all activities without anymeaningful participationby the
subordinates.
• Bounded rationality: The idea in decision-making, rationality of individuals islimited bythe
information they have, the cognitive limitations of their minds andthe finite time they haveto
make a decision.

7.9 QUESTIONS AND EXERCISES

1. Give a brief description of the Principles of Organisations.

2. Describe the Theory of Departmentalization briefly.

3. Write a short note on Single Executive.

7.10 FURTHER READING

• Weihrich, Heinz & Koontz, Harold, Management: A Global Perspective (Tenth Edition), McGraw Hill.
Inc. New York, 1994.
• Dossier, Garg. Management: Leading People and Organizations in the 21 st Century, Prentice Half
International, Inc., New Jersey, 1998.
• Huczynski, Andrej Management Gurus, Routledge, London, T993.
• Clutterbuck. David and Crainer Stuart, Makers of Management, Rupa and Co., Calcutta (Latest Edition).

56
UNIT-8: ADMINISTRATIVE MANAGEMENT: FAYOL

Structure

8.1 Objectives
8.2 Introduction
8.3 The Background
8.4 Life and Works
8.5 Types of Organisational Activity
8.6 Elements of Administration
8.7 Henry Fayol’s 14 Principles of Administration
8.8 Comparison Between Taylor and Fayol
8.9 Summary
8.10 Key Terms
8.11 Exercises
8.12 References

8,1 OBJECTIVES

After going through this unit, you will be able to know:

• Fayol emphasized the importance of a well-defined organizational structure.
• Fayol sought to provide managers with a set of clear and practical guidelines
foreffective management.
• Describe the principles developed by these writers and its uniqueness in the study
oforganizations
• Compare and contrast the main ideas of these writers.

8.2 INTRODUCTION

Henri Fayol (1841–1925) was a French mining engineer, industrialist, and management theorist. He
is best known for his contributions to the field of management theory, particularly his development
of the 14 Principles of Management.
Fayol was born in Istanbul, Turkey, and later became the managing director of a large French mining
company called Comambault. His seminal work, "Administration Industrielle et Générale"(Industrial
and General Administration), published in 1916, outlined his principles of management,providing a
framework for effective organizational management.
Fayol's principles cover various aspects of management, including division of work, authority,
discipline, unity of command, unity of direction, and others. His ideas have had a profound and

57
lasting impact on management education and practice, influencing the development of organizational
and managerial theories.

8.3 THE BACKGROUND

Henry Fayol is the main proponent of the administrative management school of classical theory.
Administrative management school aims to improve organizational productivity by focusing on
methods that managers can use to synchronize internal processes. Fayol believed managerial
practices are keys to driving efficiency in organizations. Therefore, this branch seeks to heighten
managerial performance instead of individual worker efficiency.
Henri Fayol is regarded as the founder of this managerial approach that stressed on a structure of an
organization whose management worked by being guided by universally and scientifically valid
principles of management to get the most out of the workers and achieve the organization’s
objectives. Henry Fayol, also known as the ‘father of modern management theory and he gave a new
perception of the concept of management. He introduced a general theory that can be applied to all
levels of management and every department.
8.4 LIFE AD WORKS
Henri Fayol (Administrative Management) Fayol was born in a suburb of Istanbul, Turkey in 1841.
He studied mining engineering at the ‘École Nationale Superieure des Mines’ academy in Saint-
Étienne. In 1860, Fayol started his career as an engineer at the French coal mining company on 19
years old. In 1988, he became the managing director of this company. In fact ,he spend his entire
career in one company the French mining and metallurgical combine Comentry-Fourchamboult -
Decazeville. Fayol was very successful in this position for over 30 years and retired in 1918. At that
time around 1900 mining company was there but this had become one of the largest producers of
iron and steel in France. At that time this industry was considered to be vital for France. Fayol was
also one of the founders of the principles of modern management. In 1916, he promoted his ideas in
‘Administration Industrielle et Générale’, was first published in France and this was translated into
English in 1949 under the title General and Industrial Administration. This book contains two parts
: the first part is concerned with the theory of administration and the second part with the discussion
on training for administration. In this work Fayol presented his theory of management, known as
Fayolism.

8.5 TYPES OF ORGANISATIONAL ACTIVITY

Fayol felt that the activities of business could be divided into six categories.
• Technical activities : It relates to Production and manufacturing activities.
• Commercial activities : It relates to Buying, selling, and exchange of product activities.

58
• Financial activities : It relates to optimum use of capital.
• Security activities : It relates to Protecting mutual interest of employees and employers.
• Accounting activities : It relates to Book keeping (recording) of profits, costs, liabilities, and
preparing reports such as balance sheets.
• Managerial activities: It relates to Planning, organizing, directing, coordinating, and controlling.

8.6 ELEMENTS OF ADMINISTRATION

The functions of management is to consider it as a process. As a process, management refers to a
series of inter-related functions, that is, planning, organization, command, co-ordination and control.
Planning: Planning means deciding in advance on what, how, and when something is to be done. It
involves projecting the future course of action for the business as a whole and also for the different
sections within it. Planning is thus, the preparatory step for actions and helps in bridging the gap
between the present and the future. In a more concrete sense, the process comprises determination or
laying down of objectives, policies, procedures, rules, programmes, budgets, and strategies.

Organizing :Managers must organize the workforce in an efficient manner and structure and align
the activities of the organization. Managers must also train and recruit the right people for the job,
and always secure a sufficiently skilled and educated workforce. Organizing is the next function of
management. Organizing involves breaking a plan into activities, grouping those activities, and
allocating resources to them. This is done by structuring the functions and duties to be performed by
a group of people for the purpose of attaining the objective of the enterprise.

It is the process of bringing together physical, financial and human resources and developing
productive relationship amongst them for achievement of organizational goals.

According to Henry Fayol, “To organize a business is to provide it with everything useful or its
functioning i.e. raw material, tools, capital and personnel’s”. To organize a business involves
determining & providing human and non-human resources to the organizational structure.
Organizing as a process involves:

• Identification of activities.
• Classification of grouping of activities.
• Assignment of duties.
• Delegation of authority and creation of responsibility.
• Coordinating authority and responsibility relationships.

Commanding :Managers must supervise subordinates in their daily work, and inspire them to
achieve company goals. Likewise it is the responsibility of managers to communicate company goals
59
and policies to subordinates. The commanding of subordinates should always be consistent with
company policies, and every manager should treat subordinates in line with the standards of the
company.

Coordinating :Coordination, as a separate function of management, has been advocated by many

authorities including Henri Fayol. However, coordination, being all pervasive and encompassing
every function of management, is considered to be more an important managerial essence than a
separate management function. Poor coordination is attributed to failure in performance of all the
above-listed management functions.

Coordination deals with harmonizing work relations and efforts at all levels for achieving some
common purpose. It may be described as unifying and achieving harmony among individual efforts
for the purpose of accomplishing group goals. The whole idea of coordination is to adjust, reconcile,
and synchronize individual efforts so that group efforts become more effective and help to achieve
some common objectives.

Without coordinated efforts on the part of the players, it is difficult for the team to win a match.
Coordination is not spontaneous. Differences in approach, understanding, timing, interest, or efforts
have to be reconciled with while synchronizing individual efforts. While managing, a manager
coordinates the work of his or her subordinates.

Controlling :According to Theo Haimann, “Controlling is the process of checking whether or not
proper progress is being made towards the objectives and goals and acting if necessary, to correct
any deviation”.

Controlling is the measurement & correction of performance activities of subordinates in order to

make sure that the enterprise objectives and plans desired to obtain them as being accomplished.
Therefore controlling has following steps:

• Establishment of standard performance.

• Measurement of actual performance.
• Comparison of actual performance with the standards and finding out deviation if any.
• Corrective action.

8.7 HENRY FAYOL’S 14 PRINCIPLES OF ADMINISTRATION

Henry Fayol, also known as the ‘father of modern management theory’ gave a new perception of the
concept of management. He introduced a general theory that can be applied to all levels of
management and every department. The Fayol theory is practised by the managers to organize and

60
regulate the internal activities of an organization. He concentrated on accomplishing managerial
efficiency.
The fourteen principles of management created by Henri Fayol are explained below.

14 management principles are:

1. Division of Work.
2. Authority and Responsibility.
3. Discipline.
4. Unity of Command.
5. Unity of Direction.
6. Subordination of Individual Interests to the General Interest.
7. Remuneration.
8. Centralization.
9. Scalar Chain.
10. Order.
11. Equity.
12. Stability of Tenure of Personnel.
13. Initiative.
14. Esprit De Corps.

1. Division of Work- Henri believed that segregating work in the workforce amongst the worker
will enhance the quality of the product. Similarly, he also concluded that the division of work
improves the productivity, efficiency, accuracy and speed of the workers. This principle is
appropriate for both the managerial as well as a technical work level.

2. Authority and Responsibility- These are the two key aspects of management. Authority
facilitates the management to work efficiently, and responsibility makes them responsible for the
work done under their guidance or leadership. Authority without responsibility leads to irresponsible
behavior whereas responsibility without authority makes the person ineffective.

3. Discipline- Without discipline, nothing can be accomplished. It is the core value for any project
or any management. According to Fayol, “Discipline means sincerity, obedience, respect of authority
& observance of rules and regulations of the enterprise”. This principle applies that subordinate
should respect their superiors and obey their order. It is an important requisite for smooth running of
the enterprise.

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4. Unity of Command- (Principle of One Boss)- This means an employee should have only one
boss and follow his command. If an employee has to follow more than one boss, there begins a
conflict of interest and can create confusion. In other words, a sub-ordinate should not receive
instructions from more than one person Therefore, dual sub-ordination should be avoided unless and
until it is absolutely essential. So, Unity of command provides the enterprise a disciplined, stable &
orderly existence. It creates harmonious relationship between superiors and sub-ordinates.

5. Unity of Direction- Fayol advocates one head one plan which means that there should be one plan
for a group of activities having similar objectives. According to this principle, efforts of all the
members of the organization should be directed towards common goal. Without unity of direction,
unity of action cannot be achieved. In fact, unity of command is not possible without unity of
direction.

6. Subordination of Individual Interest- This indicates a company should work unitedly towards
the interest of a company rather than personal interest. In order to achieve this attitude, it is
essential that - Employees should be honest , sincere , Proper &regular supervision of work.

7. Remuneration- This plays an important role in motivating the workers of a company.

Remuneration can be monetary or non-monetary. However, it should be according to an individual’s
efforts they have made. The quantum and method of remuneration to be paid to the workers should
be fair, reasonable, satisfactory & rewarding of the efforts. Wages should be determined on the basis
of cost of living, work assigned, financial position of the business, wage rate prevailing etc. Fayol
also recommended provision of other benefits such as free education, medical & residential facilities
to workers.

8. Centralization & De-Centralization-Centralization means concentration of authority at the top

level. In other words, centralization is a situation in which top management retains most of the
decision making authority. Decentralization means disposal of decision making authority to all the
levels of the organization. In other words, sharing authority downwards is decentralization.
According to Fayol, “Degree of centralization or decentralization depends on number of factors like
size of business, experience of superiors, dependability & ability of subordinates etc. Anything which
increases the role of subordinate is decentralization & anything which decreases it is centralization.

9. Scalar Chain- Fayol defines scalar chain as ’The chain of superiors ranging from the ultimate
authority to the lowest”. Every orders, instructions, messages, requests, explanation etc. has to pass
through Scalar chain. But, for the sake of convenience & urgency, this path can be cut short and this
short cut is known as Gang Plank.

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A Gang Plank is a temporary arrangement between two different points to facilitate quick & easy
communication as explained below:

In the figure given, if D has to communicate with G he will first send the communication upwards
with the help of C, B to A and then downwards with the help of E and F to G which will take quite
some time and by that time, it may not be worth therefore a gang plank has been developed between
the two.

Gang Plank clarifies that management principles are not rigid rather they are very flexible. They
can be modified as per the requirements of situations .

10. Order- This principle is concerned with proper & systematic arrangement of things and people.
Arrangement of things is called material order and placement of people is called social order.
Material order- There should be safe, appropriate and specific place for every article and every place
to be effectively used for specific activity and commodity. Social order- Selection and appointment
of most suitable person on the suitable job. There should be a specific place for everyone and
everyone should have a specific place so that they can easily be contacted whenever need arises.

11. Equity- Equity means combination of fairness, kindness & justice. It implies that managers
should be fair and impartial while dealing with the subordinates. They should give similar treatment
to people of similar position. They should not discriminate with respect to age, caste, sex, religion,
relation etc. Equity is essential to create and maintain cordial relations between the managers and
sub-ordinate.

12. Stability of Tenure- Fayol emphasized that employees should not be moved frequently from one
job position to another i.e. the period of service in a job should be fixed. Therefore employees should
be appointed after keeping in view principles of recruitment & selection but once they are appointed
their services should be served. According to Fayol. “Time is required for an employee to get used

63
to a new work & succeed to doing it well but if he is removed before that he will not be able to render
worthwhile services”. As a result, the time, effort and money spent on training the worker will go
waste. Stability of job creates team spirit and a sense of belongingness among workers which
ultimately increase the quality as well as quantity of work.

13. Initiative- Workers should be encouraged to take initiative in the work assigned to them. It means
eagerness to initiate actions without being asked to do so. Fayol advised that management should
provide opportunity to its employees to suggest ideas, experiences& new method of work. It helps
in developing an atmosphere of trust and understanding.

14. Esprit de Corps- It refers to team spirit i.e. harmony in the work groups and mutual
understanding among the members. Spirit De’ Corps inspires workers to work harder. Fayol
cautioned the managers against dividing the employees into competing groups because it might
damage the moral of the workers and interest of the undertaking in the long run. To inculcate Espirit
De’ Corps following steps should be undertaken -

▪ There should be proper co-ordination of work at all levels

▪ Subordinates should be encouraged to develop informal relations among themselves.
▪ Efforts should be made to create enthusiasm and keenness among subordinates so that they
can work to the maximum ability.
▪ Efficient employees should be rewarded and those who are not up to the mark should be
given a chance to improve their performance.
▪ Subordinates should be made conscious of that whatever they are doing is of great
importance to the business & society.

8.8 COMPARISON BETWEEN TAYLOR AND FAYOL

Both, F.W Taylor and Henry Fayol have common ideas to share. Both the writers have aimed at
enhancing the efficiency levels of the organizations and formulated the principles accordingly. The
principles formulated by Taylor are known as the ‘principles of scientific management while
principles of Fayol are known as the ‘general principles of management or administration’. Both
have common agreement on certain principles like division of work, specialization, responsibilities
of managers, unity within the group etc. Though the principles formulated by both of them intended
to enhance a positive workplace, but there are significant differences between the two theories. The
key difference between Taylor principles of management and Fayol principles of management is that
Taylor principles consider the workflows and operator efficiency levels in an organization whereas,
Fayol principles of management theory consider top management approach to resolve problems.
Taylor principles of management consider employee efficiency, whereas Fayol principles of

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management consider human and behavioural determinants of the organization. Fayol principles of
management emphasize on activities like planning and controlling, whereas Taylor principles of
management emphasize on work study and time of study of workers. Moreover, Fayol principles put
more emphasis on top management point of view on resolving problems, whereas Taylor principles
emphasize low-level management in an organization. However, Fayol principles can be applied to
any organization; because it is universally applicable, but Taylor principles are applied only to
specialized organizations like production and engineering.

8.9 SUMMARY

• Fayol said that there are certain administrative factors which affect the centralization or
decentralization. The administrative factors mentioned by Fayolare - the age of agency,
stability of its policies and methods, competence of itsfield personnel, pressure for speed and
economy and administrative sophistication. Among these factors, the age of agency is more
important.
• The scalar chain is the chain of superiors ranging from the ultimate (topmost)authority is the
route followed—via every link in the chain—by all communications which start from or go
to the ultimate authority. However inlarge organization's following this path often is too
lengthy.
• Fayol suggests that training is a continuous process, starting from the school and covering in
service training of the employees within an organization. He considers every superior officer
in an organization as a teacher to his immediatesubordinates.

8.10 KEY TERMS

Decentralization: The process of redistributing or dispersing functions, powers,people or

things away from a central location or authority.

Centralization: The concentration of management and decision-making powerat the top

of anorganization's hierarchy.
Esprit de corps: A feeling of pride and mutual loyalty shared by the membersof a group.

8.11 QUESTIONS AND EXERCISES

1. List the disadvantages of decentralization.

2. State the unity of command principle as proposed by Fayol.

3. On what basis has the scientific management movement been criticized?

4. Explain Fayol's ‘Fourteen Principles of Management.'

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8.12 FURTHER READING

Lohia, R. (1976). Marx Gandhi and Socialism. Hyderabad: Scientific SocialistEducational Trust.
Mehta, V. R. (1996). Indian Political Thought. New Delhi: Manohar.
Chamola, S.D. (2007). Kautilya Arthshastra and the Science of Management:Relevance for the
Contemporary Society. New Delhi: Hope India Publications

Wood, John C., Michael C. Wood. (2002). Henri Fayol: Critical Evaluations inBusiness and
Management, Volume 1. New York: Taylor & Francis.

Bedeian, Arthur G. (1979). The Administrative Writings of Henri Fayol: Abibliographic

investigation. Monticello: Vance Bibliographies.

Taylor, Frederick Winslow. (2007). The Principles of Scientific Management. Minneapolis:

Filiquarian Publishing, LLC.

66
UNIT-9: ELTON MAYO

Structure

9.1 Objective

9.2 Introduction

9.3 Life 0f George Elton Mayo

9.4 Contributions of Elton Mayo Towards Hawthorne Experiments

9.5 Main Features of the Human Relations Theory Dispute Resolution

9.6 Significance of Human Relation Theory Aberrations
9.7 Findings and Conclusion
9.8 Criticism of Human Relation Theory:

9.9 Summary

9.10 Key Terms

9.11 Exercises

9.12 References

9.1 OBJECTIVES

After going through this unit, you will be able to know:

▪ Examine the sigificance of human relations and informal organizations asdiscussed
by Mayo and Roethlisberger
• Comprehend the implications of the Human Relations Movement in context
ofadministrative behaviour.
• Ability to appreciate the contribution of George Elton Mayo as a distinct school of

thought pertaining to administrative studies.

• Develop faculty to objectively analyze the contribution of George Elton Mayo to the
fieldof Public Administration.

9.2 INTRODUCTION

George Elton Mayo (1880-1949) born at Adelaide, Australia and much renowned for his distinct
and influential Hawthorne studies and profound work in Industrial Sociology and Industrial
Psychology has been considered one of the pioneers of the human relations approach to the
organization. Elton Mayo, an expert of the fields of logic, philosophy, sociology, psychology,

67
 management and medicine, went on to impart new dimensions to the concepts of industrial
sociology and industrial psychology in those times when Taylorism was at its zenith. He devoted
greater attention to the workers than to the machines and emphasized the indispensability of the
human aspect of organizations while looking into technical and economic aspects of industries. In
the course of his extensive travel in search of suitable profession, Elton Mayo was in United States
from 1926 to 1947 and held the post of Professor of Industrial Research at the Graduate School of
Business Administration, Harvard University and conducted the most intensive studies on human
relations known as Hawthorne Experiments (1927-32) at the Western Electric Company’s
Hawthorne Plant near Chicago.

9.3 LIFE 0F GEORGE ELTON MAYO (26 DEC 1880 — 7 SEPT 1949)

The human relations approach is also known as New Classical approach. Elton Mayo termed it
Clinical approach. It attempts to explain the informal relations among employers and employees are
concerned with moral and psychological rather than legal aspects of an organization. The approach
considers worker not only one of the means of production system but as a man‘

In 1933, Mayo wrote his first most important book entitled ‘The Human Problems of an industrial
Civilization’, ‘Social problems of an Industrial Civilisation’, 1945, ‘Training for Human
Relations’,1949etc. Mayowasan Australian- born American psychologist and sociologist. He is famous
for the Hawthorne studies, which examined the effects of social relations, motivation, and employee
satisfaction on factory productivity.

9.4 CONTRIBUTIONS OF ELTON MAYO TOWARDS HAWTHORNE EXPERIMENTS:

According to Human Relations Approach, management is the Study of behaviour of people at

work. This approach had its origin in a series of experiments conducted by Professor Elton Mayo
and his associates at the Harvard School of Business at the Western Electric Company’s Hawthorne
Works, near Chicago.

These studies brought out for the first time the important relationships between social factors and
productivity. Before it, productivity of the employees was considered to be a function only of
physical conditions of work and money wages paid to them. For the first time it was realized that
productivity depended largely upon the satisfaction of the employees in work situations.

Hawthorne Experiments of Elton Mayo are considered as the bedrock of human relations movement
in the management. These experiments were conducted in the Hawthorne plant of the Western
Electric Company from 1924 to 1932. Some of the major phases of Hawthorne experiments are as

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follows:

1. Experiments to determine the effects of changes in illumination on productivity, illumination

experiments, 1924-27.

2. Experiments to determine the effects of changes in hours and other working conditions on
productivity, relay assembly test room experiments, 1927-28;

3. Conducting plant-wide interviews to determine worker attitudes and sentiments, mass

interviewing programme, 1928-30; and

4. Determination and analysis of social organisation at work, bank wiring observation room
experiments, 1931-32.

1. Illumination Experiment:

The first in the series was ‗The Great Illumination‘ experiment (1924-27) having its objective to find
out the impact of single variable i.e. illumination on the working capacity of workers. Under this
experiment, two groups (control and experimental) of female workers, consisting of six members
each, were formed and located in two different rooms, each group performing the same task. In the
beginning, the rooms were equally illuminated but later on the experimental group was subjected to
changes in the level of illumination. The research team observed both the groups and kept accurate
record of production. The result was that regardless of the level of illumination, the production in
both the groups increased. This experiment was conducted to establish relationship between output
and illumination. When the intensity of light was increased, the output also increased. The output
showed an upward trend even when the illumination was gradually brought down to the normal level.
Therefore, it was concluded that there is no consistent relationship between output of workers and
illumination in the factory. There must be some other factor which affected productivity.

2. Relay Assembly Test Room Experiment:

This phase aimed at knowing not only the impact of illumination on production but also other factors
like wage payments, duration of working hours, rest periods and other physical conditions were
changed from time to time. Further, instead of group incentive plan, an individual piece rate plan was
introduced. All these changes led to continued rise in production. Likewise, provision of refreshment
like tea, coffee and soup as well as reduction in working hours and total work time in a week further
accelerated the output. In this experiment, a small homogeneous work-group of six girls was

69
constituted. These girls were friendly to each other and were asked to work in a very informal
atmosphere under the supervision of a researcher. Productivity and morale increased considerably
during the period of the experiment. Productivity went on increasing and stabilized at a high level
even when all the improvements were taken away and the pre-test conditions were reintroduced. The
researchers concluded that socio-psychological factors such as feeling of being important,
recognition, attention, participation, cohesive work-group, and non-directive supervision held the
key for higher productivity.

3. Mass Interview Programme:

The objective of this programme was to make a systematic study of the attitudes and sentiments of
workers towards management and supervision. Under this workers were asked to express their views
freely on the programs and policies of the management, working conditions and treatment by the
supervisors. This provided an opportunity to as many as 21126 workers who were interviewed with
the help of interview schedule. Initially, a direct approach was used whereby interviews asked
questions considered important by managers and researchers. The researchers observed that the
replies of the workmen were guarded. Therefore, this approach was replaced by an indirect technique,
where the interviewer simply listened to what the workmen had to say. The findings confirmed the
importance of social factors at work in the total work environment.

4. Bank Wiring Test Room Experiment:

This experiment was conducted by Roethlisberger and Dickson with a view to develop a new method
of observation and obtaining more exact information about social groups within a company and also
finding out the causes which restrict output. The experiment was conducted to study a group of
workers under conditions which were as close as possible to normal. Under this 14 employees
consisting of three groups of workmen were selected whose work was of interrelated nature i.e. to
solder, to fix the terminals and to finish the wiring. Wages were paid on the group incentive plan and
each member got his share on the basis of the total output of the group. It was found that the workers
had a clear-cut standard of output which was lower than the management target. The group as per its
standard plan did not allow its members to increase or decrease the output. Although they were
capable of producing more, the output was held down to maintain uniformity. The group became
highly integrated and it used social pressure to set right the erring members by maintaining a code of
conduct. Those workers who tried to produce more than the group norms were isolated, harassed or
punished by the group. The findings of the study are:-

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• Each individual was restricting output.
• The group had its own “unofficial” standards of performance.
• Individual output remained fairly constant over a period of time.
• Informal groups play an important role in the working of an organization.

9.5 MAIN FEATURES OF THE HUMAN RELATIONS THEORY

The human relations theory challenges the concept of an economic man popularized by the classical
theories. It holds that every person is different and not a part of a homogenous mass of human
beings. It also holds that every person works as a part of a work group. It is, therefore, important to
consider the work group and other social factors while trying to determine the behaviour of workers.
The scholars of this school of thought have concentrated on three main features of this theory which
concerns the individual, social aspect of work group (informal organization) and participative
management. A brief description of these significant features is discussed as follows:

(ii) The Individual: The theory emphasizes the uniqueness of each individual. It is said that
each worker brings to the job his own attitudes, beliefs and ways of life as well as certain
skills—technical, social and logical. An organization cannot hire only a part of the man. It has
to put up with his attitude and beliefs if it wants to use his skills. Each person also has
hopes and expectations from his job. These also have to be taken into account by the
organization if it wants a motivated workforce to carry on its activities.
(iii) Work groups (informal organizations): The second aspect of this theory is its emphasis
upon the social dimensions of the work groups. It is observed that man is a social being
and has an overriding need to belong, to be accepted by and stand well in his group. To a
worker, therefore, the work group is as important, if not more, as the formal organization. In
fact, Mayo has gone to the extent of saying that the work group of a man is his real concern
and other things were incidental. The most important contribution of the human relations
theory is, therefore, to consider the impact of work groups (informal organizations) on the
motivation and productivity of the workers. William G. Scott has remarked that these work
groups do not form part of the normal organizational chart and are not shown on the
administrative blue prints of the organization. They arise naturally in the work situation.
Each work group tends to adopt its own has, therefore, to consider the impact of these work
groups on the motivation of workers in an organization. It appears essential to reconcile

the interests of these work groups with those of the organization.

(iv) Participative Management: The third most important feature of the human relations theory
is participative management. It has emerged from the increased emphasis on individual and
work groups. Participative management in fact means participation of the workers in decision-

71
 making about their work conditions. To be meaningful, the participative managements
should ensure that the workers are able to influence the decisions that affect them. It has
been observed that this leads to an increase in the motivation of workers and their
productivity. This is in sharp contrast to the scientific management principles of Taylor. Taylor
held that only experts in job analysis understood enough about the job to be able to improve
it. The specification of jobs and the working conditions were to be decided by the higher
management and not the workers themselves. The human relations theory on the other hand
lays emphasis on the effective participation of the workers in taking decisions that affect
them. The human relations theory thus focusses on what is called informal organization. In
the words of Roethlisberger, ‘too often we try to solve human problems with nonhuman tools
and in terms of non-human data. It is my simple thesis that a human problem requires a
human solution first, we have to learn to recognize a human problem when was see one; and
second, upon recognizing it, we have to learn to deal with it as such and not as it were
something else, a human problem to the brought to a human solution requires human data
and human tools.’

9.6 SIGNIFICANCE OF HUMAN RELATION THEORY

The significance of Human Relation theory is as follows:

• The significance of the human relations theory lies in its primary emphasis
onpsychological motivations and informal group.

• This theory or approach focuses on management as a web of interpersonal relationships.

• It lays greater stress on the behaviour of role occupants in an organization than on the formal
structure of the organization.
• The advocates of this school argue that since management and administration involve
group effort, the study of management must be centered on individual as a socio-
psychological being
• They are more concerned with his motivations.

• They view human relations as the heart of the task of management with leadership.

9.7 HAWTHORNE EXPERIMENTS ON HUMAN BEHAVIOR: FINDINGS AND

CONCLUSION

Mayo’s research findings have contributed to organizational development in terms of human

relations and motivation theory.

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1. The social and psychological factors are responsible for workers’ productivity and job satisfaction.
Only good physical working conditions are not enough to increase productivity.

2. The need for recognition and security is more important in determining workers’ morale and
productivity than the physical conditions under which he works.

3. Employee will perform better if they are allowed to participate in decision making process.

4. The worker is a person whose attitudes and effectiveness are conditioned by social demands from
both inside and outside the work area.

5. The informal relations among workers influence the workers’ behaviour and performance more
them the formal relations in an organization.

6. Informal groups within the work area exercise strong social controls over the work habits and
attitudes of the individual worker.

7. Employee will also work more efficiently, when they believe that the management is interested in
their health and welfare.

8. When Employees are treated with respect and dignity their performance will improve.

9. Good communication between the superiors and subordinates can improve the relations and the
productivity of the subordinates.

10. Special attention, flexibility and freedom to express their views will improve the performance of
the workers.

11. Group collaboration does not occur by accident; it must be planned and developed. If group
collaboration is achieved, then the human relations within a work area may reach a cohesion which
resists the disrupting effects of adaptive society.

9.8 CRITICISM OF HUMAN RELATION THEORY:

Though human relations approach is quite popular yet it has been victim of several criticisms by
scholars like David Ashton, Peter F. Drucker, Alex Carey, Miller and Form, Loren Baritz, B. M.
Selekman, Daniel Bell, Bendix and Fisher, Harold Sheppard etc. The main grounds of criticism are
as under:

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1. The Hawthorne experiment is criticized because there is no scientific base. It is
based on social relationship.
2. Behavior of the workers during the experiments was not natural. It was actually the Hawthorne
effect which gives their best when observed.
3. It was also pointed out that this experiment does not have any guarantee because it has limited
scope.
4. As a result of the impact of human relation approach, human relation become fad and fashion with
many people of the organization. They believe that happy workers are productive workers. This is
not always true.
5. With the passage of time both managers & workers begin to realize disadvantage of the situation.
6. It gave little attention the formal relation while putting greater emphasis on the informal relations.
7. This theory is not aware of the economic dimension and neglected the nature of work.
8. It could not explore the multi dimensional phenomenon of human motivation.
9. Marxists says that it is a new technique to exploit workers as it de-emphasized economic factors.
10. It is Anti-Unions and Pro-Management Bias
11. It is over-concerned with happiness.
12. It does not recognize the conflict as a creative force.

9.9 SUMMARY

• Human Relations Movement became dominant in the theory of administrationdue to the failure
of scientific and administrative management which was considered to be a setbackto the study
of scientific management.
• The Human Relations theory came from the Hawthorne experiments that werecarried outin
USA. These experiments also took place in the late 1920s and early. Elton Mayo of Harvard
and his associates carried out well-known studyon human behaviour at the Hawthorne plant
of the Western Electric Company.Their study formed the basics of this school of management
thought.

• According to the concept of Paternalism, management must assume a fatherlyand

protective attitude towards employees. The impersonal attitude of the commodity concept
was put back by a personal and sometimes super-personalattitude of paternalism. This
leaned towards liberal attitude and was due to growth of the trade unionism during theFirst World
War.

• Elton Mayo mainly concentrated on the working conditions of an organization.It was basically
focussed on industrial labour in the factories. He started his research in a textile mill near
Philadelphia in 1923. The mill provided all thefacilities to the labour which were well
74
 organized. It was considered to be a model organization.

• Mayo and his colleagues concluded that one should not miss the human aspectof organizations
simultaneously emphasizing on the technical and economic aspects of the industries. The
Hawthorne experience recommended a new expertise of managerial skills.In addition to the
technical problems as well asrelated skills, the management should handle human situations.

• The human relations theory challenges the concept of an economic man popularized by the
classical theories. It holds that every person is different andnot a part of a homogenousmass of
human beings. It also holds that every person works as a part of a work group. Itis, therefore,
important to considerthe work group and other social factors while trying to determine the
behaviourof workers.

9.10 KEY TERMS

Hawthorne experiment: The Hawthorne effect was first seen in the 1920sat the Western Electric
Company's Hawthorne Works, from which the term derives. TheHawthorne studies were designed to
find ways to increase workerproductivity.

9.11 QUESTIONS AND EXERCISES

1. Comment upon the significance of Hawthorne's Experiments in the growth of the theory of
organization.
2. Critically appreciate the status of George Elton Mayo as the Father of the Human Relations
Movement.

9.12 FURTHER READING

Maheshwari, S. R. (2003). Administrative Thinkers. New Delhi: Macmillan. Wood, John

Cunningham, Michael C. Wood. (2004). George Elton Mayo: Critical
Evaluations in Business and Management, Volume 1. London: Taylor &Francis.

Naidu, S.P. (2005). Public Administration: Concepts and Theories. New Delhi:New Age
International.

Graham, Pauline. (2003). Mary Parker Follett Prophet oƒ Management. Washington:Beard

Books.

75
NIT-10: RATIONAL DECISION-MAKING THEORY: HERBERT SIMON

Structure

10.1 Objectives

10.2 Introduction

10.3 Herbert Simon Life and Work

10.4 Administrative Ideas of Simon
10.5 Summary
10.6 Key Terms
10.7 Exercise
10.8 References

10.1 OBJECTIVES

After going through this unit, you will be able to know:

• Analyse the contribution of Herbert Simon in the study of decision-making
• Life and work of Herbert Simon

10. 2 INTRODUCTION

Herbert A. Simon (1916–2001) was an American social scientist, economist, political scientist,
and computer scientist who made significant contributions to various fields, including economics,
artificial intelligence, cognitive psychology, and management science. He was awarded the Nobel
Prize in Economic Sciences in 1978 for his pioneering research on decision-making processes
within economic organizations.
Herbert A. Simon's work has left an enduring legacy, impacting fields as diverse as economics,
management, artificial intelligence, and cognitive psychology. His interdisciplinary perspective
and groundbreaking ideas continue to influence research and scholarship across multiple
disciplines.

10.3 HERBERT SIMON LIFE AND WORK

Herbert Alexander Simon (15th June, 1916 - 9th February, 2001) born in Milwaukee, Wisconsin,
USA. He completed his high school in 1933 and entered in the University of Chicago with an interest
in making social science more mathematical, and an intent to major in economics. He majored instead
in political science. Simon’s dissertation, later published as Administrative Behaviour, is as relevant

76
to political science and to organization theory, as is to economics. He obtained his Ph.D. in political
science from the University of Chicago in the year 1943. Simon developed the behavioural theory of
decision making and the concepts of bounded rationality and satisficing. He was awarded Bank of
Sweden Prize in Economic Sciences in memoriam of Alfred Nobel for his research work into the
decision making process within economic organizations in 1978.Crozier referred to Simon as “the
father of thesciences of decision” on the occasion he was conferred Nobel Prize.
He authored Administrative Behavior (1945 1st edition & 1997 4th edition), Public Administration
(1950 joint authorship), Models of Man (1957), Organizations (1958 & 1993co authorship with J G
March), The New Science of Management Decision (1960& 1977), The Sciences of Artificial (1969
& 1981), Models of Thought (1979), Models of Bounded Rationality (1982), Reason in Human
Affairs (1983), Models of my Life (1991) and many others.
Simon argued that administration revolves around rationality and decision making. He was of the
opinion that the development of the pure science of administration is based in social psychology
(behavioural aspects) and its (science of administration) normative base (ideals and rescriptions) is
founded in political science, economics and sociology. He favoured the coexistence of both empirical
and normative approaches for the growth of the discipline of public administration.
Simon views the organisation as a total system, a composite of all the sub-systems which serve to
produce the desired output. He assumes that the element of organisational structure and functions
emanate from the characteristics of human problem-solving processes and rational choices.

10.4 ADMINISTRATIVE IDEAS OF SIMON

The administratives ides of Herbert Simon can be discussed as follows:

DECISION MAKING

Decision-making is an important function of an administrative officer. Every administrator,

in public sector as well as private sector, is required to make decision on various matters. Even
simple tasks cannot be performed without someone being there to take decision. For example an
office cannot start functioning unless there is someone to decide about allocation of work among
employees. On the other hand very important decisions affecting the social and economic
development of the country have to be taken by the senior administrators and politicians. Many of
these complicated decisions are arrived at after a great deal of processing and discussions at various
levels of administration. It may, therefore, be worthwhile for the administrators to know about the
art and science of decision making and to understand the various processes involved in arriving at
a decision. The decision which the organization makes for an individual generally include
specifying his functions, allocating authority and setting limits to his choice. This is done to
coordinate the activities of the individuals in an organization. But the process of decision does not
come to an end. In fact decision making- involves the execution of decision in which even a person
77
working at the lower level has an essential role to play in the accomplishment of the objective of
the organization.

Simon associates ‘administration’ with decision-making. His dominant interest lies in the
decision-making process which is the core of all administrative activity. To him, all administrative
action is decision-making. He says that ‘the task of deciding pervades the entire administrative
organization quite as much as does the task of doing. Indeed, it is integrally tied up with the latter.
A theory of administration must include principles of organization that will ensure correct
decision-making, just as it must include principles that will ensure effective action.

Decision involves an alternative chosen from a number of choices, directed toward a

managerial objective or subgoal. Realistic alternatives were distinct to having real effects
consisting of human resources actions or non-actions tailored by ecological facts and values. In
practice, some of the alternatives may be mindful or insensible. Most of the effects may be
inadvertent as well as planned and most of the resources and trimmings may be incorrectly made
a distinction, to some extent connected, or inadequately comprehensive.

The task of rational decision-making is to choose the option that outcome in the more chosen set of
all the promising consequences. This task may be divided into three required steps:
• The recognition and listing of all the alternatives

• The strength of mind of all the cost ensuing from each of the substitute

• The assessment of the correctness and competence of each of these sets of cost

SIMON’S P R O C E S S OR STAGES OF DECISION-MAKING

According to Simon, there are three stages in the overall process of decision-making, which are as
follows:

• Intelligence activity

• Design activity

• Choice activity

• Review

The intelligence: Activity involves identifying occasions calling for a decision. Executives spend a
large fraction of their time surveying the economic, technical, political and social environment to
identity new conditions that lead to new action.

The Design: Activity comprises inventing, developing and analysing possible courses of action. An
executive may even spend a larger chunk of time seeking to invent, design and develop possible
courses of action for handling situations where decisions are needed.

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 The choice: activity involves selecting a particular course of action from the available choices. For
this, an executive needs a small fraction of his time, since he has to choose among actions already
developed.

Review: It comprises of activities related to review the alternatives and their consequences. Pomerol
and Adam state: “The role of information and attention is particularly fundamental in first two phases of
decision making because managers can only choose between alternatives that they know about and they are
able to document”. They also quoted Simon as “information acts as a constraint on decision”.

Simon says that though these stages appear to be simple and one precedes the other, in practice the
sequence is more complex than what it appears to be. Moreover, Simon was aware of interdependence
between various stages and exclusiveness of each stage as a decision in itself. Further, according to Simon,
the execution of decision is also regarded as a decision making process as that reviews the consequences of
alternative chosen and that brings new kinds of information for the decision maker. Thus, whole managerial
actions are integral part of the process of decision making and it eliminated the conception that the decisions
are “the moment of choice”. Simon states: “All the images falsify decision by focusing on the final moment”

Simon said that decision-making process is not restricted to taking a decision only. It includes carrying
out the decision also. For Simon, the whole managerial action is included in the process of decision-making.

CLASSIFICATION OR TYPES OF DECISIONS MAKING

• Programmed and non-programmed decisions: Herbert A. Simon has classified decisions

into programmed and non-programmed. Decisions are programmed to the extent that they are
monotonous and tedious. Decisions are non-programmed to the extent that they are novel,
unstructured and consequential. There is no cut-and dried method for handling the problem.
Decisions are also classified as being generic and unique decisions. Generic and unique
decisions are similar to programmed and non-programmed decisions, respectively.
• Organizational and personal decisions: Chester Barnard classifies decisions into personal
and organizational decisions. Organizational decisions are those which an executive takes in
his official capacity and that can be delegated to others. Personal decisions are those which an
executive takes in his individual capacity and not as a member of his organization. These
personal decisions are not delegated.
• Policy and operating decisions: Policy decisions are those which are taken by the top
management and which are of fundamental character affecting the whole business. Operating
decisions are those which are taken by lower management cadres for the purpose of executing
policy decisions. Policy and operating decisions are also known as strategic and tactical
decisions respectively.
• Individual and group decisions: Many decisions, even critical ones in organizations are made

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 by the individual manager, who assumes full responsibility for the consequences of such
decisions. Group decisions are those which are made by more than one manager joining
together for the purpose for which they assume collective responsibility.

• Fact-Values in Decision-Making: Herbert Simon views that each decision is based on a

number of value premises i.e. arguments based on rational thinking. Some of these premises
pertain to the decision maker’s preferences, some to his social conditions and some others to
the communication he receives from component units of the organization. To Simon these
premises are of two kinds – values and facts.
He distinguished between facts and values. In simple words: we ask a question what is. The
answer of this question is fact and that can be verified or falsified. A fact is a statement of
reality and therefore a factual premise can be proved by observable a measurable means.
While, the values, that is, the answer of what ought to be are the wishes, objectives and
aspirations or any one of these. The value is an expression of preference. Every decision
consists of a logical combination of fact value premises. Simon says that the behavior of a
rational person can be controlled if the value and factual premises upon which his decision is
based are specified for him. The control over the person can be full or partial.

If all premises are specified then the control is full and if some are left to his discretion then it is
partial. However, there is one important difference between permitting a discretion based of
value premises and a discretion based on factual premises. The latter can always be evaluated
as correct or incorrect where as it is not possible in the case of former. This distinction
between factual and value premises has an obvious bearing on the question of how discretion
can be reconciled with responsibility and account- tability and what the line of division is to
be between policy and administration. Simon advocated the separation of facts and values for
developing the science of administration. He was of the belief that this kind of science can
only be based on facts.

RATIONALITY IN DECISION MAKING

Simon used the term “rationality” with adjectives like “bounded rationality”, “substantive
rationality” and procedural rationality”. He emphasized the necessity of being rational in making a
choice. He defines rationality as one concerned with the selection of preferred behavior alternatives
in terms of some system of values whereby the consequences of behavior can be evaluated. To him
it requires a total knowledge and anticipation of the consequences that will follow on each choice. It
also requires a choice from among all possible alternative behaviors. Simon explained the term
rationality as “the matching of means to ends”. The term ‘means’—instrument purpose–refers to any
state or situation which is earlier in time than some other state or situation while the term ‘ends’—
ultimate purpose— refers to any state or situation which is later in a purpose chain or set of chains.
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The same state or situation may always be a means from one point of view and an ultimate objective
from another.
According to Simon, if appropriate means are chosen to achieve designed goals the decision is
rational. However, there are many complications to this simple test of rationality. Pomerol and Adam
consider that sometimes it raises more problems instead solving them as an individual can draw any
conclusions from a false premise and on the other hand a decision taken on erroneous diagnosis may
be found rational in some sense. Many times, it is difficult to separate means from ends because an
apparent ‘end’ may only be a ‘means’ for some future ‘end’. Besides this, often the connection
between organization activities is obscure or there are certain internal conflicts and contradictions
among the ultimate objectives, or the means selected to attain them (Manoj Sharma, p. 66).
TYPES OF RATIONALITY
Difference Types of Rationality includes:
1. Objective rationality – The decision where the correct behaviour is maximized in the given
circumstances
2. Subject-specific – decision where maximum use of abstract reasoning based on subject
knowledge is made.
3. conscious rationality – A decision where adjustment of means and ends may occur as part of a
conscious process
4. Well-thought rationality – A decision in which a deliberate balance is established between means
and ends
5. Organizational rationality – These are decisions oriented toward the organisation’s goals.
6. Personal rationality- is one in which decisions are directed towards personal objectives
are directed

Simon disputes the concept of total reasonableness in administrative behaviour. He observes that
human behaviour is neither totally rational nor totally non-rational. It includes what he calls bounded
rationality. He debates also the possibility of optimizing decisions which flows from the concept of
total rationality. These concepts are based on the assumption that:
• they know the utilities (values) of all alternatives

• They have an ordered preference among all alternatives

• The decision-makers know all alternatives

Simon finds these assumptions to be fundamentally wrong. He rejects the theory of total rationality
as well. It was based on total rationality. He advances the idea of ‘satisficing,’ a word derived from
satisfaction and sufficing. Satisfying involves the choice of a course of action which is satisfactory
or at least good enough. Simon believed that the concept of limited bounded rationality describes the

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reality of conditions of decision making in an organization Simon mentions the following
characteristics of the reality.
• Managers respond to problems on the basis of preconceived notions.

• The motives and values which come together to define a problem and structure

• Organizational decision makers never have perfect information

• Organizational actors frequently do not agree on basic values goals

• Decision makers typically do not know all the possible alternatives

According to Simon, the administrative man cannot perceive all possible alternatives. He is satisfied
with ‘good enough’ or somehow ‘muddling through’. The administrative man recognizes ‘examining
all possible alternatives’, ‘with relatively simple rules that do not make impossible demands upon
his capacity for thought’. In sense Simon’s administrative man tries to rationalize man. He does not
have the ability to maximize. The difference between maximizing and satisfying is comparative.

BOUNDED RATIONALITY

Theory of bounded rationality was proposed in 1950’s as an alternative to classical omniscient

rationality. The bounded rationality refers to the fact that the decisions are not taken (by agents)
with perfect rationality. Simon is of the opinion that human have a bounded rationality. He rejected
the case of perfect rationality. The economic theory assumes that economic actor maximizes utility
by becoming rational agents and taking decisions based on logic or on cost benefit analysis. Simon
was of the opinion that human decisions should not be assumed as solely based on logical, statistical
or certain other formal model but should be empirically investigated one. Further, the decision
making should take into account three factors, which are: the type of task; the characteristics of the
environment; and the distinct features of the cognitive system (which also includes experience or
expertise) of the decision maker.

However, in practice, it has been found that the assumptions of economic theory are not followed
rather the decision makers make decisions based on the characteristics of environment, task which
requires decision making, and the knowledge, information and understanding (current state of
research and information) of the decision maker about the environment and task pertaining to which
the decision is to be taken. Moreover, how the decision is to be taken or the criterion used to take a
decision is not fixed but may vary according to the expertise of the decision maker.

Simon consider that the humans face complexity of environment (in which decisions to be made)
and possess “limited cognitive system” which make the rational decision making in real life setting
impossible one. Moreover, there is limit of human cognitive system and people may not be
informed of all kinds of relevant information required to take perfect decision. The decisions can
be made with reasonable amounts of calculation, and using relevant information. The expertise to
take decisions by using relevant information and after reasonable calculations limits the quality of
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decision to the expertise of the decision maker. Thus, the perfect rationality is not followed rather
the theory of bounded rationality (which underlines use of reasonable amounts of calculation, and
incomplete information) is utilized to take decisions and relatively good decisions can be made
without the need of analyzing all available alternatives.

Satisficing refers to choosing an alternatives that meets or exceeds one’s (one or multidimensional)
“aspiration level”. However, the alternative so chosen is not guaranteed to be either unique or “the
best” in the sense of a global optimum in mainstream rational choice theory. In such situation,
Simon proposed that the people must go for ‘satisficing’ instead of ‘maximization’. In simple
words, the people must decide to take satisfactory alternative (decision) based on an adequate
criterion from all available options, after evaluating those or without carrying out a full cost benefit
analysis of the possible options. The choice of alternative may not be to a best option but it is good
enough.

10.5 SUMMARY
• Herbert Simon said that the operational administrative decision should be correctand efficientin
orientation. Administrative behaviour of Simon reflects a range of management techniques,
goals and procedures of decision-making, evaluationof accuracy and efficiencyand cognitive
abilities.

• Simon associates ‘administration' with decision-making. His dominant interest lies in the
decision-making process which is the core of all administrative activity To him, all
administrative action is decision-making. He says that ‘the task ofdeciding pervades the entire
administrative organization quite as much as doesthe task of doing.

10.6 KEY TERMS

• Directing: A basic management function that includes building an effective work

climate and creating opportunity for motivation, supervising, scheduling,and disciplining.
• Esprit de corps: A sense of unity and of common interests and responsibilities,as
developed among a group of persons closely associated in a task, cause, enterprise, etc.
• Communication: Apurposeful activity of exchanginginformation and meaningacross
space and timeusing various technical or natural means, whichever isavailable or
preferred.

10.7 QUESTIONS AND EXERCISES

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1. Explain Herbert Simon’s contribution to the field of decision-making.
2. Explain Herbert Simon’s concept of bounded rationality.

10.8 FURTHER READING

• Simon, H. A. (1955) A Behavioral model of rational choice, Quarterly Journal of Economics, 69,
99- 118

• Simon, H. A. (1957), Models of Man, Wiley, New York.

• Simon, H. A. (1967) Motivational and emotional controls of cognition, Psychological Review, 74,
29- 39

• Simon, H. A.(1972) Theories of Bounded Rationality, in Decision and Organization, C.B. McGuire
and R. Radner (Eds.), North Holland, Amsterdam, 161-176

• Simon, H. A. (1976) From Substantive to Procedural Rationality, in Methods and Appraisal in

Economics, S.J. Latsis (Ed.), Cambridge University Press, New York, 129-148.

• Simon, H. A. (1977) The New Science of Management Decision (3rd revised edition), Prentice –
Hall, Englewood Cliffs, NJ

• Simon, H. A. (1979) Models of Thought, Yale University Press, New Haven

• Simon, H. A. (1981) The Sciences of Artificial, (second edition, first edition 1969) MIT Press,
Cambridge Mass

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UNIT-11: ECOLOGICAL APPROACH: FRED RIGGS

Structure

11.1 Objectives
11.2 Introduction
11.3 About Fred W. Riggs
11.4 Tools and Approaches Used by Riggs
11.5 Summary
11.6 Exercises
11.7 References

11.1 OBJECTIVES
After going through this unit, you will be able to know:
• About Fred Riggs
• Tools and Approaches Used by Riggs
• The Ecological Approach and its various model

11.2 INTRODUCTION
A galaxy of administrative thinkers like Max Weber, Luther Gulick, Herbert Simon, Fred W. Riggs
etc. have studied administrative systems from different perspectives, outof them Riggs stands out
because he has provided an integrated approach to understanding administrative systems, from both
ecological and development perspectives. Also, he has been one of the most innovative thinkers,
whose Sala model is indispensable for understanding the administrative system of developing
countries. His vast personal and professional experiences, prolific writings and contributions, have
made him a predominant figure in the discipline of comparative and development administration.
Despite multiple criticisms of his approaches and theories, they are immensely relevant for
understanding the functioning of administrative systems in contemporary times also.

11.3 ABOUT FRED W. RIGGS

Fred W. Riggs is one of the most influential administrative thinkers, who has been a pioneer in the
field of administrative model building and theory formulations. He was born on 3rd July 1917 in
China and died on Feb 9, 2008, in the USA. His contributions in the field of comparative and
development administration are well known. He is widely acclaimed for his ecological approach and
Sala model. His theory finds lots of relevance in understanding the administrative system of
developing countries. Fred Riggs studied at University of Nanking, China from 1934-35. He got his
B.A. from theUniversity of Illinois in 1938. He passed his M.A. in 1941 from Fletcher School of Law

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and Diplomacy. He did his PhD at Columbia University in 1948. He held several important positions
in his entire career. He was a Lecturer, at the City University of New York, from 1947-48; Research
Associate, at the Foreign Policy Association from 1948-51; Assistant to Director, at Public
Administration Clearing House, New York, 1951-55; Arthur F. Bentley Professor of Government,
Indiana University, 1956-1967; Professor of Political Science, University of Hawaii, 1967-1987;
Director, Social Science Research Institute, University of Hawaii, 1970-73; Professor Emeritus,
University of Hawaii, 1987-till his death in 2008. He was associated with various professional
organizations like the American Society for Public Administration, the National Academy of Public
Administration etc. He chaired several committees and working groups like the Comparative
Administrative Group (CAG), the American Society for Public Administration (1960-1971) etc.

1. Honors & Awards

• Dwight Waldo award for lifetime achievements in Public Administration, by
American Society for Public Administration, in April 1991.

• Order of White Elephant, conferred by King of Thailand, in Bangkok, 1986.

• First non-Asian to be honoured by Eastern Regional Organization for Public
Administration, EROPA Conference, Seoul, Korea, 1983.

• Fellow, Center for Advanced Study in the Behavioral Sciences, Stanford, 1966-67.

• Senior Specialist, East-West Center, University of Hawaii, 1962-1963.

• Fellow, Committee on Comparative Politics of the Social Science Research

Institute, for field research in Thailand, 1957-58.

2. Major Works

• Fred W. Riggs, The Ecology of Public Administration, Asia Publishing House, New
Delhi, 1961 (issued under the auspices of The Indian Institute of Public Administration,
New Delhi)

• Fred W. Riggs, Administration in Developing Countries: The Theory ofPrismatic

Society, Houghton Mifflin Co., Boston, 1964

• Fred. W. Riggs, Thailand: The Modernization of a Bureaucratic Polity, East-West

Center Press, Honolulu, 1966

• Fred W. Riggs (ed.), Frontiers of Development Administration, DukeUniversity

Press, 1970

• Fred. W. Riggs, Prismatic Society Revisited, General Learning Press, Indiana

University, 1973

• Fred W. Riggs, Applied Prismatic: A Development Perspective, Center for

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 Economic

Development and Administration, Tribhuvan University, 1978

• Fred W. Riggs & Daya Krishna, Development Debate, Print well, Jaipur, 1987

11.4 TOOLS AND APPROACHES USED BY RIGGS

Fred Riggs has used three tools to develop his analyses: 1. Ecological Approach; 2. Structural
Functional Approach; and 3. Ideal Models. The ecological approach is one of the most notable
contributions made by Riggs, which was aimed at understanding how the environment affects
administration and how administrative activities bring about changes in the environment. Riggs
developed his ecological analysis with the help of a structural-functional approach and ideal models.
Hence, the second tool used by Riggs was a structural-functional approach which is based on the
premise that every system is made up of certain structures that perform specific functions. Social
structuresare considered any pattern of behaviour which has become a standard feature of a social
system. Functions are the role that structures play in a system. Riggs has identified fivetypes of
functions being performed by any society: economic, social, communication, symbolic and political.
An administrative system also consists of specific structures andthe above functions are performed by
certain structures in particular ways. The third tool used by Riggs was the Ideal model, which he
developed to study the features of administrative systems in developing countries. He developed
models corresponding tosocieties of traditional, modern and developing countries and his analyses
drew from his studies of imperial China, America, Thailand, Philippines and to an extent India.
Riggs borrowed various terms and concepts from different subjects like Sociology, Physics and
Biology and also proposed his terms. That is why it is aptly said that the terms used by Riggs to
explain his models are particularly Riggsian.

ECOLOGICAL APPROACH
The ecological approach is one of the most innovative approaches developed by Riggs that has
facilitated comparative studies in Public Administration. Riggs found that most of the western
concepts and theories look “inside” the system, not “outside” -the socio-economic environment. That
is why he observes that Western concepts of Public Administration have major shortcomings in
understanding the problems of developingcountries. Hence, his ecological approach aims at studying
inter-relationships betweenadministration and the environment.

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Various scholars like Prof. John Gaus, Robert A. Dahl, and Robert A. Merton have talked about the
importance of ecology in explaining administrative behaviour. But it was Fred Riggs who made a
substantive contribution to developing the ecological analysis. This approach has helped in
understanding the reasons behind the differences in the functioning of administration in different
societies and also with in a society. Hereadministration is considered as a system, which is a unit that
continuously interacts withits environment consisting of economic, social and political components
and influencing each other in multifarious ways. This is premised on the idea that our societyis a larger
system consisting of various sub-systems and administrative institutions areone of them. Fred W.
Riggs has rightly pointed out that only those studies are ‘truly’ comparative which are empirical,
nomothetic and ecological. Based on ecological analysis, Riggs has created one of the most
innovative models for understanding the administration of developing countries, which is described
below.

FUSED-DIFFRACTED-PRISMATIC MODEL

As described earlier, Riggs has used a structural-functional approach to explain these three models
of societies, in a fused society, a single structure carries out a large numberof functions, whereas, in a
diffracted society, there are specialized and differentstructures to carry out specific functions. The
prismatic societies are those which have both the features of fused and diffracted societies. It is said
that “the ideal models of Riggs such as fused, prismatic and diffracted are hypothetical assumptions
aimed at analyzing the pre-historic, developing and developed societies”. Riggs classified societies
into fused, diffracted and prismatic based on one dimension which is the levelof differentiation. But
in his later publication, “Prismatic Society Revisited” (1975), he realized the limitations of a ‘one-
dimensional approach’ (that is differentiation) and suggests a new definition of prismatic society
based on a ‘two-dimensional approach’.The second dimension was integration. A higher level of
differentiation accompanied by integration, helps in bringing about development. Based on levels of
differentiationand integration, Riggs said, “if a society is highly differentiated and well-integrated,
then it is diffracted, but if it is differentiated and poorly integrated, mal-integrated, then I call it
prismatic”. Further, “if a society is not at all differentiated, if there are no specialists, if everyone can
do everything, then I call it a fused system”.
Prismatic conditions may be present in developed countries also and no country is fullydeveloped.
Development is a relative term, with some countries developed more than others on some scale, but
on others, they have yet to make efforts. The chief features ofRiggs Models are described below:
FUSED MODEL

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Riggs developed his concept of fused society concerning imperial China and the pre- revolutionary
Siamese Thailand. A fused society is characterized by particularism and ascriptive values. It is
functionally diffuse as a single structure carries out all the functions. The economy is agricultural
with almost no traces of industrialization or modernization. Production is low and the barter system
is the mode of exchange. Theroyal family, consisting of the King and his officials have complete
control over the administration and economy of the country. There is distance between King and his
subjects and the king is not accountable to the people.
The people on the other hand have to respect their king and not challenge his authority.As a result,
officials often become corrupt and engage in pursuit of their interests. Family plays a very important
role in such a society and the administrative system is based on the structure of the family, which in
turn helps in maintaining the system. Society is governed by traditional values, customs and beliefs
and they help inmaintaining cohesion in the society. Therefore, those who violate them are not
tolerated and reprimanded. Generally, these societies are static and lack a developed communication
system.

DIFFRACTED MODEL
This model was developed concerning American society. A diffracted society is characterized by
universalism and achievement values. It is marked by functional specialization with each structure
carrying out a specialized function. Society is characterized by industrialization and modernization.
The economy is marketized and it influences all other spheres of activities. Government is
accountable and responsiveto the needs of society and people’s rights. People are also alert about
their expectations from the government and exert pressure to meet their demands. Citizens generally
obey laws and decisions, and policies are made based on consensus among the people. Public
servants do not have absolute powers and there are several checks on the authority. Further, there are
open class structures, in the form of associations that work on rational and scientific basis. These
societies are dynamic and have a verywell-developed communication network. In a diffracted society
there is a high level ofdifferentiation and also an equally needed high degree of integration in the
society, asa result, the functions performed are more productive and efficient.

PRISMATIC MODEL
A prismatic society is marked by selection (which incorporates a mixture of ascription and
achievement). It is defined by poly-functionalism (a combination of functional specificity and
functional diffuseness). Riggs has used fused and diffracted models to analyze the prismatic
characteristics of developing countries. According to Riggs, the prismatic society has achieved a
certain level of differentiation with specialization of roles necessary for dealing with modern
technology but has failed to integrate these roles. Various features of prismatic society are described

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below.
Heterogeneity
Heterogeneity exists to a substantial degree in a prismatic society. It means existence side by side of
diametrically opposite view points, systems and processes. For example, the existence of modern
structures along with traditional structures creates an uneven pattern of development in society. This
heterogeneity is reflected in every sphere of society whether socio-economic, political or cultural
spheres. People like to adopt modern ideas and practices but are unable to give up their traditional
practices. There are urban areas with modern economic practices, intellectual class, developed
communication networks, and Western-style offices, along with pockets of rural areas with an
agriculture-based economy, high levels of illiteracy with village elders exercising control over all
spheres of life, lack of modern infrastructure and primitive communication network.
This heterogeneity is visible in the administrative system of the Prismatic society also. People
enjoying administrative and political offices enjoy great power and prestige and sometimes they
misuse their power and engage in corrupt practices. Despite equal opportunities, the rich and the
privileged enjoy higher posts and privileges in society than the common mass. Though the
government is democratically elected, there is veryless consensus on contentious issues. In a poly-
communal, multi-lingual, ethnically divided society, there are centrifugal forces that pull society in
different directions, as aresult, there is a lack of integration. The administrative system is burdened
with solvingadditional problems in addition to its traditional functions.
Formalism
Formalism refers to the gap between theory and practice, between prescriptions and practices, and
between laws and their implementation. According to Riggs, ‘formalism’refers to the extent “to which
a discrepancy exists between norms and practices, betweenthe prescriptive and descriptive, between
formal and effective power…and actualpractices and facts of government and society”. Formalism
is relatively high in a prismatic society whereas the percentage of realism is high in a fused and
diffracted society. Realism means greater congruence between norms and practices. Further
formalism is found to be prevalent in all areas of life in a prismatic society. For example,public officials
do not adhere to all prescribed laws, following some technical provisions and neglecting more
general terms and objectives. Such behavioural practices accompany official corruption. Riggs
argued that formalistic behaviour is caused by, “the lack of pressure toward program objectives, the
weaknesses of social power as a guide to bureaucratic performances and a great permissiveness for
arbitraryadministration”.
Further, the level of formalism depends upon the type of pressures-exogenous or endogenous applied
for the development or change in the society. According to Riggs, if the pressure is exogenous, the
level of formalism will be higher. In contrast, there is relatively lesser formalism introduced in
society if the source is endogenous.

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Overlapping
According to Riggs, overlapping refers to “the extent to which formally differentiated structures of
a diffracted society co-exist with undifferentiated structures of a fused type”. In diffracted societies,
specialized structures perform different functions, so thereis no overlapping. Similarly, in a fused
society, a single structure performs all the functions and hence occurs with no overlapping. But in a
prismatic society, new modernstructures are created to perform functions, but the older and traditional
structures alsocontinue to perform some of these functions, resulting in confusion and irregularities.

Similarly, modern values are adopted in theory, but in practice, older values getpreference. The
functions of political and administrative offices are impacted by social,economic and cultural factors.
The behaviour of administrative personnel is determinedby various non-administrative factors like
family, religion, caste etc. Some of the dimensions of overlapping in prismatic societies are
‘nepotism’, ‘poly-communalism’,‘the existence of clients, ‘poly-normativism and lack of consensus’
and ‘separation of authority from control’.

Riggs argued that formalism, heterogeneity and overlapping exist more in prismatic societies than in
Western societies because the latter has got a longer period to adjust their behaviour to the evolving
changes whereas in contrast, in developing or transitional societies, they had to rapidly adjust to the
changes in the society. Further inany society, the differences in the pace of development are also
related to the sources of change. Prismatic society encounters changes from both external and internal
sources. Exogenous change is the change caused by external sources (like technical assistance
programs), whereas endogenous change is predominantly caused by internal sources (like
administrative reforms). If the change is caused by both exogenous and endogenous sources, then it
is called ‘equi-genetic’.
Riggs has argued that the more exogenous the process of diffraction, the more formalistic and
heterogenous its prismatic phase; the more endogenetic, the less formalistic and heterogenous. This
is so because suitable alterations in behaviour do not precede exogenous changes, resulting in
heterogeneity and formalism, whereas endogenous changes occur from within, leading to better
adaptation and greater consensus amongst different communities. In their bid to bring about fast
development in the shortest possible time, prismatic societies adopt externally induced changes,
which often breed conflict and tensions in society.

SALA MODEL
Fred Riggs called the administrative sub-system of a prismatic society as ‘Sala’ and developed a
model based on it. The administrative sub-system of a fused society is called a ‘Chamber’ whereas
that of a diffracted society is designated as a ‘Bureau’ or ‘Office’. Each of them has their distinct

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features and characteristics. But the ‘Sala’ of prismatic society displays features of a ‘bureau’ of a
diffracted society and the ‘Chamber’ of a fused society. Some of the features of the Sala model are
described below:

Nepotism
Nepotism is favouritism that is displayed in matters of appointments to various administrative
positions and delivering welfare services. Members of a particular family or group are given
preference in employment and other matters. Government officials often misuse their positions and
extend various benefits to their relatives. Though many rules and regulations exist to guide their
behaviour, they are often violated in practice.
Sala officers are often engaged in personal power aggrandizement and acquisition of material
benefits rather than working for the welfare of the people. In a diffracted society, generally, family
loyalty and kinship do not influence official behaviour. Whilein a fused society, since the character
of the politico-administrative system is patrimonial, so kinship or family is predominant in such a
system. In a prismatic society,universalistic norms are often violated in favour of parochial interests.
Poly-Communalism
Poly-communalism refers to the existence of multiple ethnic and religious communitiesin society.
There are often conflicts between them over interests, distribution ofresources etc. and it makes it
very difficult for politics as well as administration to arrive at a consensus over policy matters.
Members of a certain community when occupying high positions in the administration, give
preference to the members of their community in matters of recruitment, promotion etc. Since
different communities have different interests, they pull society in different directions, creating
problems for the administration. To address this problem, a quota or reservation system is adopted
to provide proportional representation to all communities in the administration. But such
arrangements may lead to further hostility and compartmentalization amongst rival communities.
Existence of ‘Clects’
‘Clects’ are typical prismatic groups making use of modern, associational methods of organization,
but retain diffuse particularistic goals of a transitional type. These have characteristics of attainment
orientation, selectivism and poly-functionalism. ‘Clects’ combine the features of ‘sects’ of the fused
and ‘club’ of the diffracted society. Government officials belonging to particular ‘clects’ seems to be
serving the interests of their respective ‘clects’ rather than the common people. Sala officers
sometimes develop closer relations with particular ‘clects’ or it starts functioning like a clect in itself.
This leads to the violation of universalistic norms and also breeds corrupt practices.
Poly-normativism and lack of Consensus
Prismatic societies are characterized by different norms and values possessed by peopleand that leads
to differences in the society. Due to the co-existence of traditional and modern ideas, and the

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overlapping of ‘formal’ and ‘effective’ standards of conduct, there is a lack of consensus in the
society. Though the Sala officials are appointed basedon high merit in competitive examinations in
their career, for their promotion and transfers, they depend largely on ascriptive ties with their senior
officials. Sala officialsare selective in their following of the modern set of norms, rejecting them
when it is inconvenient. Public expects the bureaucrats to follow all rules and regulations in their
work but when it comes to their interests, they break the rules or seek exemptions to it.
Separation of Authority from Control
Power is exercised in a prismatic society in the form of authority and control, both deriving from
different sources. Explaining this Riggs says that the prismatic society consists of a “highly
centralized and concentrated authority structure overlapping a control system that is highly localized
and dispensed”. The control system works through poly-communalism, clects and poly-normativism.
There is considerable overlapping between the authority of Sala and the control exercised by local
and communal groups, which influences the functioning of administrators and also relationsbetween
politicians and administrators.
In a prismatic society, though the political leaders enjoy constitutional powers, in practice,
bureaucrats dominate the politico-administrative system. They play a more important role in
decision-making and policy formulations than what their formal authority suggests. Riggs has termed
it as an ‘unbalanced polity’ and in such a system, administration becomes unresponsive to the needs
of the people. Arguing further, Riggsreiterated that in such a weak system, where leadership cannot
control bureaucracy, their political parties, voluntary associations and public opinion also fail to
discharge their effective functions.
Further, the influence of political authorities can be judged by their ability to reward orpunish the
administrators. When weak leadership fails to reward the achievements of a Sala official, it can de-
motivate him from his organizational goals and lead to promotinghis interests.
In a prismatic society, bureaucrats exercise considerable influence on the output of Sala.In this regard,
Riggs commented that “there is an inverse relation between the administrative output and
bureaucratic power: the more powerful officials become, theless effective they are as administrators”.

BAZAR-CANTEEN MODEL-PRISMATIC ECONOMY

Riggs has named the economy of a prismatic society as the ‘Bazar-Canteen’ model. Tounderstand
the meaning of this nomenclature, it is essential to understand first how prices are determined in a
prismatic society. Now in a diffracted society, there is a market economy, in which forces of demand
and supply determine the prices of goods. Conversely, in a fused society, ‘arena’ factors-family,
religion and caste considerationsdominate and the economy is based on the barter system, where the
question of price very rarely arises. In a prismatic society, there is the prevalence of both ‘market’
and ‘arena’ factors that interact with each other and produce price indeterminacy, where it is very
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difficult to determine the common price of a commodity or service.
Riggs has studied the exchange relationship between public officials and their clients in terms of
buyer-seller relationships. Further, this buyer-seller relationship is not neutralbut is determined by
various factors. Some of them include family relations, individual acquaintances, bargaining power,
clects memberships etc. Services are sold to such people or communities at lower rates whereas,
those who are outside this preferential category have to pay higher prices. In other words, the
economic organizations act likea ‘subsidized’ canteen, where members of privileged groups are
provided goods and services at subsidized prices. Further, there are ‘tributary’ canteen, where
members of non-influential and less-privileged communities are charged higher prices for the same
services.
Price indeterminacy promotes a bazaar-like atmosphere in a prismatic society involvingconsiderable
bargaining on the amounts of financial dealings about such areas as taxes,fees, rebates and bribes.
Wages in a prismatic society are also indeterminate and unequal. A large number of public officials
may get higher salaries without doing any work. On the other hand, people who may work are paid
less. In such situations, peoplewho earn less are tempted to indulge in corrupt practices. These affect
the norms of official conduct of public officials and which in turn affects the economic sub-system
of a prismatic society.

11.5 SUMMARY

Riggs’ ecological approach and Sala's model are indispensable for studies in comparative and
development administration. It has helped in understanding the functioning of administration from
environmental and developmental perspectives. Through an interdisciplinary approach, it has helped
in understanding the different dimensions of administration in developing countries. There is no
doubt that Riggs is one of the most innovative theory builders in Public Administration. Chapman
has rightly remarked that Riggs's approach and models may be considered sophisticated tools for
describing and diagnosing administrative situations.

11..6 EXERCISES

1. Explain the ecological approach of Fred Riggs?

2. Explain the various model developed by Fred Riggs?

11.7 REFERENCES

• Fred W. Riggs, Administration in Developing Countries: The Theory of

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 Prismatic Society, Houghton Mifflin Co., Boston, 1964
• Ramesh K. Arora, Comparative Public Administration, Associated Publishing
House, New Delhi, 2008
• R.K. Sapru, Theories of Administration, S. Chand & Company Ltd., New
Delhi, 1996
• T.N. Chaturvedi, Comparative Public Administration, Research Publications,
Jaipur, 1999
• D. Ravindra Prasad, V.S. Prasad, P. Satyanarayana, Y. Pardhasaradhi (eds.),
Administrative Thinkers, Sterling Publishers, Greater Noida, 3ed. 2017

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UNIT-12: INNOVATION AND ENTREPRENEURSHIP: PETER DRUCKER

Structure

12.1 Objectives
12.2 Introduction
12.3 Early Life
12.4 Seven Lessons from “Innovation and Entrepreneurship” By Peter F. Drucker
12.5 Administrative Ideas of Drucker’s
12.6 Criticisms of Peter Drucker
12.7 Summary
12.8 Key Terms
12.9 Exercises
12.10 References

12.1 OBJECTIVES
After going through this unit, you will be able to know:

• The Early life of Peter Drucker

• The Concept of Innovation
• The Concept of Entrepreneurship

12.2 INTRODUCTION
Peter Drucker (1909–2005) was an Austrian-born American management consultant, educator,
and author, often referred to as the "father of modern management." His influential work has left
an indelible mark on the field of management and leadership. Drucker's insights have been
instrumental in shaping organizational theory, business management practices, and the
development of management education. Here's an introduction to Peter Drucker Peter Ferdinand
Drucker was born on November 19, 1909, in Vienna, Austria. He earned a doctorate in
international law and public law from the University of Frankfurt in Germany. Drucker, of Jewish
descent, left Germany in the early 1930s due to the rise of the Nazi regime.

12.3 EARLY LIFE

Peter Ferdinand Drucker (Father of Modern Management) was born in Vienna, Austria and had
schooling at the Doubling Gymnasium. He commenced studies at the University of Hamburg but
transferred to the University of Frankfurt where he obtained a Doctorate in Public and International
Law in 1931. He worked as a journalist in Germany but fled to England when Adolf Hitler rose to
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power in 1933. He remained in England until 1937, when he moved to the United States to work as
an adviser to British banks and as a foreign correspondent for several British newspapers; he became
a U.S. citizen in 1943. He was professor of management at the New York University (1950–71) and
professor of social science and management at the Claremont Graduate University (1971–2005).
Peter Drucker came into prominence with the publication of “The New Society”, He has published
more than thirty books, which include studies of Management, studies of socio-economic policies
and essays. His first book was The end of economic man (1939), The future of industrial man (1942),
The concept of Corporation (1946), The practice of management (1954) . Later he published The
Effective Executive (1985). He focused on personal effectiveness and changes in the direction of the
21st century. In 2002 the society of the future was published.
Peter Drucker is considered as the Management guru to which he devoted more than 60 years of his
professional life. He was a consultant, educator, author, professor, economist, writer and social
ecologist. whose writings contributed to the philosophical and practical foundations of the modern
business corporation. He was also a leader in the development of management education, and he
invented the concept known as management by objectives (MBO).

12.4 Seven Lessons From “Innovation and Entrepreneurship” By Peter F. Drucker

Innovation involves finding a new and better way of doing something. Much of our modern society
is based on innovations that have occurred in the past that provide us with the standard of living we
enjoy today. Entrepreneurship and innovation are companion terms. Entrepreneurship involves
looking for a new innovation and taking advantage of it. Peter Drucker is a leading authority on
entrepreneurship and innovation. The seven principles of innovation and Entrepreneurship developed
by Peter Drucker are explained below.

1. The unexpected - An unexpected success, an unexpected failure or an unexpected outside event

can be a symptom of a unique opportunity.

2. The Incongruities- A discrepancy between reality and what everyone assumes it to be, or between
what is and what ought to be, can create an innovative opportunity.

3. Process need - When a weak link is evident in a particular process, but people work around it
instead of doing something about it, an opportunity is available to the person or company willing to
supply the missing link. However, in order to be effective, a process need must be understood, there
has to be some sort of knowledge to do the job required, and lastly, the solution must fit the way
people do the work and want to do it.

4. Market structures - The opportunity for an innovative product, service or business approach

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occurs when the underlying foundation of the industry or market shifts.

5. Demographics - Changes in the population’s size, age structure, composition, employment, level
of education and income can create innovative opportunities.

6. Changes in perception, mood and meaning- Innovative opportunities can develop when a
society’s general assumptions, attitudes and beliefs change.

7. New knowledge - Advances in scientific and nonscientific knowledge can create new products
and new markets.

12.5 Administrative ideas of Drucker’s

Drucker had developed many ideas and conceptualized on different aspects of management theory
and administration. The key theoretical contributions of Peter Drucker are in the areas of business
management and administration are as follows:

1. Nature of Management
2. Management Functions
3. Management by objectives
4. Federalism
5. Organisation Structure
6. Organizational Changes:
1. Nature of Management : Peter Drucker is against bureaucratic management & he emphasized
the management with creative & innovative characteristic. Main object of management is lead
towards innovation. It includes development of new ideas with old one for betterment of
organization.
He has treated management as a discipline as well as profession. As a discipline, management
has its own tools, skills, techniques and approaches. However, management is more a practice
rather than a science. Thus, Drucker may be placed in ’empirical school of management’.

While taking management as a profession. Drucker does not advocate to treat management as a
strict profession but only a liberal profession which places more emphasis that managers should
not only have skills and techniques but should have right perspective putting the things into
practice. They should be good practitioners so that they can understand the social and cultural
requirements of various organisations and countries.

2. Management Functions: According to Drucker, management is the organ of its institution. It

has no functions in itself, and no existence in itself. He sees management through its tasks.
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 Accordingly, there are three basic functions of a manager which he must perform to enable the
institution to make its contribution for:
a) Management comes into existence for specific purpose whether it is hospital, educational
institute, transport, etc.

b) Making work productive & workers achieving.

c) Managing social impacts and social responsibility.

Apart from these there are several functions of management such as: setting of objectives,
decision making, motivation, etc. It covers eight areas such as innovation, productivity,
physical resources, financial resources, profitability, and managerial performance, attitude of
management & public responsibility of management.

3. Management by objectives (M.B.O): Management by objectives (MBO) is regarded as one

of the important contributions of Drucker to the discipline of management. He introduced this
concept in his book The Practice of Management in 1954. MBO includes method of planning,
setting standards, performance appraisal, and motivation.
Management by objectives is the process of defining specific objectives within an organization
that management can convey to organization members, then deciding how to achieve each
objective in sequence. An important part of MBO is the measurement and comparison of
an employee's actual performance with the standards set. Ideally, when employees themselves
have been involved with the goal-setting and choosing the course of action to be followed by
them, they are more likely to fulfill their responsibilities.

Process of M.B.O.: The M.B.O approach is result oriented approach & based on the idea of
effective participation of all the members for achieving objectives. It includes following Five
steps:-

1. Review organizational goal

2. Set worker objective
3. Monitor progress
4. Evaluation
5. Give reward

Setting organisational objectives is the first step in initiating management by objectives. These
objectives should be in line with the organisation’s vision and mission statement. Once goals are
determined by supervisors or top management, then these goals must be communicated through

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 all channels to subordinates, operational staff, and all other levels. In short, the objective setting
must be according to the mnemonic S.M.A.R.T which means:

• Specific: Target a specific area for improvement

• Measurable: Quantify or suggest an indicator of progress
• Assignable: Specify who will do it
• Realistic: State what results can realistically be achieved, given available resources
• Time-bound: Specify when the result(s) can be achieved

According to MBO, the objectives must be informed to the employees at all levels. This enables
the employees to understand their roles and responsibilities. Communication is another important
aspect in this step. High performing employees should be given positive feedback, which is
reinforced in the form of rewards.

The objectives need to be measured on a regular basis to ensure that the work is being done
keeping the objectives in mind. The detection of problems must be done in advance so that the
problem could be prevented or easily sorted. In MBO management, each objectives has sub-
objectives and so on. The managers must motivate and encourage the employees to complete the
sub-objectives.

This is an important aspect of management by objectives. A comprehensive evaluation system

must be in place. Employees must be given honest feedback, and high performance needs to be
rewarded.

4. Federalism: Drucker has advocated the concept of federalism. Federalism refers to centralised
control in decentralised structure. A Decentralised structure goes far beyond the delegation of
authority. It creates a new constitution and new ordering principle. He has emphasized the close
links between the decisions adopted by the top management on the one hand and by the
autonomous unit on the other.

This is just like a relationship between federal government and state governments. In a federal
organisation, local managements should participate in the decision that set the limits of their own
authority. Federalism has certain positive values over other methods of organizing, these are as
follows:
• It allows the top management to focus on the important functions;
• It defines the roles and responsibilities of the employees;
• It sets a benchmark to calculate the success and efficiency of the employees.

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 • It helps to resolve the problem of continuity through giving the managers of various units
education in top management problems and functions while in an operating position.
5. Organisation Structure: Drucker has decried bureaucratic structure because of its too many
dysfunctional effects. Therefore, it should be replaced. There are three characteristics of an
effective organisation structure as explained below:
• The institution must be structured to achieve maximum performance;
• It should contain least possible number of managerial levels;
• It must be responsible for the testing and training of future managers.

There are three aspects in organising that are undermentioned:

• Activity analysis explains the work that has to be done, what kind of work needs to be done,
and what importance needs to be given to the work.
• Decision analysis determines or decides at which level a decision can be made.
• Relation analysis assists in defining the organisational structure.

6. Organizational Changes: Drucker has visualised rapid changes in the society because of rapid
technological development. Though he is not resistant to change, he feels concerned for the
rapid changes and their impact on human life. Normally, some changes can be absorbed by the
organisation but not the rapid changes.

Since rapid changes are occurring in the society, human beings should develop philosophy to
face the changes and take them as challenges for making the society better. This can be done
by developing dynamic organizations which are able to absorb changes much faster than static
ones. Drucker’s contributions have made tremendous impact on the management practices.

12.6 CRITICISMS OF PETER DRUCKER

There is apparent social conflict in a society wherein the worker’s knowledge has startedto have a
bearing on society. What production would be the result of service and the non-knowledge worker
would stand in the face of a society driven by knowledge? Thus,the pertinent challenge facing the
knowledge society would be to provide dignified, decent jobs with income to non-knowledge
workers. In 1987, The Wall Street Journal looked into a few of his lectures and found that he
occasionally twisted the truth.
Furthermore, despite Drucker's reputation for foresight, his predictions were not alwaysaccurate. He
prophesied, for example, that Washington would replace New York as thefinancial hub of the United
States.

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Others contend that "management by objectives," one of Drucker's central ideas, is faulty and has
never been adequately tested. Dale Krueger, a critic, claimed that the approach is challenging to
adopt and that, to achieve their objectives, businesses frequently end up placing too much emphasis
on control rather than encouraging creativity. General Motors was condemned in Drucker's famous
book Concept of the Corporation even though it was the most prosperous company in the world at
the time.

12.7 SUMMARY

• Peter Drucker was the first to depict management as a distinct discipline after F. W. Taylor
and Henri Fayol. He is famous for his innovative thinking in the ways of business and
organizational management. His work and writings turned management theory into a
thoughtful and developingcurriculum among sociologists. He participated in nearly every
aspect of management theory development.

• MBO comprises motivation, performance appraisal, setting-up of standards and method of

planning of employees related to an organization. According tothis theory, the performance
of employee is measured as compared to distinctivestandards for the job. And the general
outcome

• of the theory explain that, if employees help adjust those standards they will be more likely
to fulfill them.

• Drucker is against bureaucratic management and has emphasized managementwith creative

and innovative characteristics. The basic objective of managementis to read towards
innovation. The concept of innovation is quite broad. It mayinclude development of new
ideas, combining of oldand new ideas, adaptationof ideas from other fields or even to act as
a catalyst and encouragingothers tocarry out innovation.

• According to Drucker, a manager has to perform several functions: setting ofobjectives,

making,organizing and motivating. Drucker has attached great importance to the objective
setting function and has specified eight areas whereclear objective setting is required. These
are: market standing, innovation, productivity, physical and financial resources,
profitability, managerial performance and development, worker performance and attitude
and public responsibility.

• Interpersonal relations exert a strong influence on the decision-making processin the

organization.Strained relations between two individuals are likely to leadto blockages in

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 communication andimperfect flow of data and information. Organizational hierarchy, from
this point of view, mayin certain situations bean impediment to rational decision-making.

12.8 KEY TERMS

Matrix organizational structure: A company structure in which the reporting relationshipsare set up
as a grid, or matrix, rather than in the traditional hierarchy.In other words, employees have dual
reporting relationships generally to both afunctional manager and a product manager.

MBO (Management of Business Objectives): A management practice which aims toincrease

organizational performance by aligning goals and subordinate objectives throughout the
organization.

Self-actualization: This involves fulfilling your potential and becoming all thatyou can be

12.9 EXERCISES
1. Evaluate the role of Peter Drucker in the changing scenario of modernmanagement.
2. What do you understand by MBO? Discuss the benefits accruing from MBOin terms ofan
organizational structure.
3. List the two circumstances under which learning occurs?
4. Give three advantages and disadvantages of MBO.

12.10 REFERENCES

Britannica, T. Editors of Encyclopedia (2022, May 15). Peter F. Drucker.

Encyclopedia Britannica. https://www.britannica.com/biography/Peter-F-Drucker

Drucker, Peter F. "Knowledge-worker productivity: the biggest challenge." IEEE

Engineering Management Review 34.2 (2006): 29-29.

Peter F. Drucker on Practical Leadership, by Harvard Business Review Press, 2020.

The Effective Executive by Peter F. Drucker

Innovation and Entrepreneurship: Practice and Principles, by Peter Drucker. New

York: Harper and Row, 1985.

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 BLOCK-3
PUBLIC POLICY AND MAJOR APPROACHES IN PUBLIC
ADMINISTRATION
Unit-13: Public Policy Concept and Approaches
Unit-14: Public Policy: Formulation Implementation and Evaluation
Unit-15: New Public Administration, New Public Management, New Public Service
Approach
Unit-16: Good Governance, Feminist Perspective in Governance

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 UNIT-13: PUBLIC POLICY: CONCEPT AND APPROACHES

Structure

13.1 Objectives

13.2 Introduction

13.3 Meaning of Public Policy

13.4 Approaches to Public Policy

13.5 Summary

13.6 Exercises

13.7 Referenc

13.1 OBJECTIVES
After going through this unit, you will be able to know:
• Definition and Concept of Public Policy
• Approaches to the Study of Public Policy

13.2 INTRODUCTION

Public Policy is as old as Political Science and Public Administration. But the concept of Public
Policy as an academic pursuit emerged in the late half of twentieth century and since then it has been
acquiring new dimensions. Since the beginning the studies on public policies were dominated by
researchers and students of both Public Administration and Political Science. Public administration
was to some extent preoccupied with the activities of administrative machinery, their structures and
their success in achieving their targets/goals. It hardly recognized the role of organizations that
played towards the formulation of policies as one of its main concerns. Yet the policy is an important
element of the administrative process. Policy implies a decision as to what should be done and how,
when it should be done. In the words of Paul Appleby “the essence of public administration is policy
making”. Public Policy is concerned with the pattern of actions directed at social problems or goals
and considerable progress has been in understanding policy content and processes

13.3 MEANING OF PUBLIC POLICY

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The policy is the government’s course of action to achieve the desired ends. Public Policy
includes whatever government intends to undertake or not to undertake. As said by Thomas dye,
policy can be defined broadly as “whatever government choose to do or not to do”. In other
words Public Policies are the governmental rules and programmes, considered individually and
collectively, formulated for the purpose of affecting positive change. Public Policy is basically
a set of rules and regulations set forth that the public law is expected to adhere to. The term
Public Policy always refers to the actions of the government and the intentions that determine
these actions.
There are numerous definitions of Public Policy. Following are some examples.

According to Brooks, “Public Policy is the broad framework of ideas and values within which
decisions are taken and action, or inaction, is pushed by governments in relation to some issues or
problems”.

Marshall Dimock defines it as “consciously acknowledged rules of conduct a guide of administrative

decisions”.

According Frederich, Public Policy is “A proposed course of action of a person, group or government
within a given environment providing obstacles and opportunities which the policy was proposed to
utilise and overcome in an effort to reach a goal or realize an objective or purpose”.

Dodd, in a similar vein, defines Public Policy as “commitment to a course or plan of action agreed
to by a group of people with the power to carry it out”.

Daneke and Steissemphasise the available alternatives to Public Policy and regard it as a broad guide
to present and future decisions, done in light of the given conditions from a number of perspectives;
the actual decision or set of decisions desiged to carry out the chosen course of actions – a projected
programme consisting of desired objectives (goals) and the means of achieving them.

James Anderson defined the Public Policy as a course of action followed by an actor or set of actors
to deal with a public problem.

Some texts define Public Policy as simply “what government does” others say that it is the stated
principles which guide the actions of the government. Public Policy can be conceptualised as a
purposive and consistent course of action produced as a response to a perceived problem of a
constituency formulated by a specific political process, and adopted, implemented, and enforced by

106
a public agency. William Jenkins offered more complex and more conceptualized definition.
According to him Public Policy is a “set of decisions connected together made by a policy actor or
by a set of actors, referring to selecting objectives, and means and reaching them in a specific
situation in which these actors should, in principle have the power to make these decisions.

13.4 APPROACHES TO THE STUDY OF PUBLIC POLICY

The Group Approach

The Group Theoretic Model sees policy-making as a result of interest groups interacting and
compromising. It was proposed by Braybrooke and Lindblom in 1963.

o The model assumes society has many organised interest groups that compete to influence
policy for their benefit. Government officials negotiate compromises between groups. Policy
outcomes reflect the power of competing interest groups. The policy-making process is
incremental, building on past compromises. Rationality is limited as policymakers need more
information, abilities and time. They seek satisfactory solutions.
o The model views policy as a compromise between interest group demands. It focuses on
groups instead of individual policymakers. It does not assume rationality or optimal policy.
Government is a neutral arbitrator responding to group pressures, not making policy alone.
The model of policy-making is incremental, not revolutionary. It emphasises negotiation
between groups, not a rational process. It considers policy stability and change.
o The model recognises interest groups' role in policy-making. It sees policies as outcomes of
negotiation rather than rational choice. It explains policy stability and incremental change.
o The model has weaknesses. It overlooks the role of political parties, elections and public
opinion. It assumes all groups have equal access and influence. It does not consider
implementation and policy outcomes. It provides a static view of the policy-making process.
o While simplistic, the Group Theoretic Model provides insights into understanding policy-
making resulting from bargaining between interest groups. It highlights factors like group
mobilisation, compromise and negotiation that often determine policy outcomes. The model
serves as a useful complement to more rational perspectives of policy-making.
o The Group Theoretic Model sees policy-making as driven by the interaction and
compromises between organised interest groups in society. It provides a different lens for
analysing how and why policies take the forms they do.

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Elitist Approach

The Elite Groups Model says elite or powerful groups make policies. The choices favour the elite,
not regular people.

o The model focuses on rich and powerful people in economics and politics. These elites make
the choices. Policies benefit the elites.
o Normal people have little say in choices. The elites keep decision-making power. The elites
control knowledge, money, the media and political groups. This keeps them powerful.
o Elite groups make choices through social talks. Formal political groups have less power.
Policies sound technical but help the elites.
o This model of policy-making says a small elite group controls political power and choices.
Policy choices favour the interests of the elite, not regular people. The choice-making process
excludes others.
o The model says elite interests explain policy choices the most. Other factors like public
opinion and interest groups matter less.
o Though exaggerated, the Elite Groups Model highlights real things about policy choices. Elite
interests, networks and values do shape many choices. Considering this model with others
can give a complete view of complex choice-making processes. This model of policy-making
helps correct overly democratic views that ignore elite influence.

Also Includes
Incremental Approach

The incremental model is one of the models of policy-making. Policymakers usually follow some
models while making policies. The incremental model focuses on small gradual changes over time
rather than dramatic changes.

o In the incremental model, policymakers focus on making small changes in the existing
policies rather than replacing the whole policy. This is done by adding some bits and pieces
to the existing policies. The changes are done step by step, slowly over time. The previous
policies act as the base, and new changes are made.
o Policymakers follow this model because big changes are difficult to make. By making small
gradual changes, they reduce resistance from various groups. This model needs less
information because the changes required are small. Policymakers already have a lot of
information about the existing policies.
o The incremental model of policy-making has some advantages. First, it needs less
information and analysis. Since the changes are small, policymakers already have enough
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 data about the existing policies. They need not spend time collecting new data or doing
complete analysis. Second, the incremental model is stable. Making small changes preserves
the overall stability of policies. Third, it is less risky. Small changes are easier to implement
and have fewer chances of failure.
o However, the incremental model of policy-making also has some problems. First, it can lead
to unsatisfactory policies. Small changes may not resolve big problems. Critical issues may
remain even after many incremental changes. Second, it may stifle creativity. Since the focus
is on small improvements to existing policies, it disregards new innovative ideas. Third, it
can become slow and isolated from the real world. Incremental changes made internally may
lose touch with the outside world, and its rapidly changing needs.
o Now, let us understand the incremental model through an example. Governments often follow
this model for tax policies. Instead of introducing completely new tax policies, they make
small changes like increasing or decreasing some tax rates. Sometimes they introduce new
small taxes instead of overhauling the whole tax system. This helps reduce resistance from
citizens and businesses using the existing tax system. However, such incremental changes
often fail to resolve fundamental problems in the tax system.
o After understanding the incremental model, we will see how it differs from other models of
policy-making. The most common alternative is the rational model. In this model,
policymakers take a top-down approach. They thoroughly analyse the problem, develop
multiple alternatives and then choose the best alternative. The implementation is done in one
go. In contrast, the incremental model follows a bottom-up approach. It makes small changes
to existing policies based on limited analysis and information.
o The next difference is in the scale of changes. The rational model involves a large-scale
overhaul of policies, whereas the incremental model relies on small step-by-step changes.
The rational model needs more information and analysis compared to the incremental model,
which relies more on learning from the experience of past changes. Finally, the rational model
of policy-making has higher chances of success but also higher risks of complete failure. The
incremental model has lower risks but also lower chances of resolving fundamental issues.

Institutionalist Approach

The institutionalist model is one of the models of policy-making. In this model, institutions and
organisations play a major role in shaping policies. Policymakers within institutions tend to develop
routines, standard operating procedures and norms that influence how policies are made.

o Institutions provide the structure within which policy-making takes place. They determine
who the key actors are, what roles they play and how information is processed. Institutional

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 rules, culture and standard practices constrain the range of policy options that are considered
viable. Over time, institutions develop their own rationality that shapes the thinking and
behaviour of policymakers within them.
o The role of individuals is downplayed in this model. Institutions are seen as having their own
logic that influences individuals as much as individuals influence institutions. Even well-
intentioned policymakers conform to the norms and procedures of their institutions.
Institutional isomorphism, where organisations become more similar over time, also affects
policy choices.
o The institutionalist model focuses on the path dependencies created by institutions. Once an
institution adopts a particular policy approach, it is difficult to deviate from that approach
later on. Past choices and initial conditions create self-reinforcing dynamics that keep the
institution on a particular path. Over time, institutions become committed to established
policies and resist new approaches.
o The institutionalist model of policy-making has certain advantages. Firstly, it recognises that
policymakers are constrained by the institutions they work for. They cannot make wholly
rational or optimal choices. Secondly, it explains why similar policies often emerge from
different institutions dealing with the same issue. Institutional norms and routines determine
policy choices more than problem characteristics. Thirdly, it highlights the stability and
persistence of policies over time.
o However, the institutionalist model also has some limitations. Firstly, it underestimates the
role of individuals in bringing about institutional change. Institutional inertia can be
overcome by skilled individuals. Secondly, it does not consider the interplay between
institutions. Public policy today is made through the interaction of multiple organisations.
Thirdly, institutions do evolve and change over time in response to external pressures. They
are not immutable structures.
o Now, let us understand the institutionalist model through the example of central banks.
Central banks like the Federal Reserve develop institutional policies for setting interest rates.
Over time, these policies become rules and standard operating procedures that new members
have to follow. Individual preferences play a lesser role. Even when economic conditions
change, central banks take time to alter their policies due to institutional inertia. However,
over decades, central bank policies have also evolved in response to new demands and
challenges.
o After understanding the institutionalist model, we will compare it with the rational and
incremental models of policy-making. In contrast to the rational model, where policymakers
act rationally, the institutionalist model sees them constrained by institutions. Institutions
guide what is considered 'rational'. Unlike the incremental model, which focuses on small

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 policy changes, the institutionalist model emphasises institutional path dependencies and the
persistence of policies. New institutions may adopt rational or incremental approaches. But
over time, they develop their own institutional logic of policy-making.
o In conclusion, the institutionalist model of policy-making highlights an important part of
reality - the constraining impact of institutions on policy-making.

Rational Approach

The rational model is one way of making policies. In this model, policymakers think in a logical way.
They want to find the best policy to achieve their goals based on a good study of problems and
solutions.

o In the rational model, policy-making has steps. The first step is defining the problem clearly.
Policymakers explain exactly the nature and size of the problem to be solved. The second
step is setting clear goals and objectives. Clear goals guide finding the right policy solutions.
o The third step is finding different solutions. Policymakers do research and gather information
to develop multiple policy options. The fourth step is analysing these options. Each option is
evaluated based on costs, benefits, feasibility, risk and ability to achieve goals.
o The fifth step is choosing the most optimal policy option. This is done based on logical
analysis and fair criteria. The sixth step is implementing the chosen option. The final step is
evaluating the results to see if the policy achieved its goals. If not, the process is repeated to
find new solutions.
o The rational model says following these logical steps will lead to the wisest and most
reasonable policy choices. Emotions, politics and personal preferences are kept away from
logical analysis. The chosen policy is seen as the 'best' solution, given the available
information.

Systems Approach

One models of policy-making is the systems theoretic model. This model sees policies as emerging
from complex interconnected social systems. The government, citizens, businesses, and other
institutions form a large system. Individual parts interact in nonlinear ways. Events in one area spread
through the system.

o In the systems model, policies emerge from self-organisation within the system. There are no
top-down decisions by the government alone. Instead, interactions between different parts
spontaneously lead to policies. Complex systems cannot be designed from scratch. They self-
organise based on interactions between parts.

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 o The systems model assumes agents within the system behave according to simple rules.
Individuals and institutions follow routines. When all parts follow their own simple rules,
complex collective phenomena emerge. Policies emerge without being planned by any single
entity. The whole system is more than the sum of its parts.
o The model views the policy-making process as dynamic, nonlinear and unpredictable. Small
events can trigger big consequences. Interactions between parts are nonlinear. Cause-and-
effect relationships are not obvious or direct. This makes accurate predictions difficult.
Policies emerge from the chaos and constant change within the system.
o For policy-making, the systems model implies governments should facilitate and enable - not
strictly control. Governments can provide guiding principles and promote interactions
between citizens, businesses and other institutions. But top-down comprehensive policy
design has limits. Policies that emerge from the whole system tend to be sustainable.
o Governments can reform policies by changing how system parts interact - not by directly
changing individual parts. Small interventions that improve interactions and information
flows can lead to big system changes. Removing barriers and facilitating interactions between
citizens, businesses, and government agencies help unstick systems.
o The systems model suggests governments monitor key variables across the system. When
variables change outside safe limits, governments can nudge the system back to stability.
However, governments cannot micro-manage every part of the system. Policies must emerge
from dynamic interactions within the system.
o Overall, the systems theoretic model sees policies as emergent phenomena within complex
social systems. Nonlinear interactions between citizens, businesses, government agencies and
institutions generate policies over time. Governments have limited ability to design policies
directly. Instead, they should create conditions for good policies to emerge from within the
system. While imperfect, the systems model provides a useful framework for thinking about
policies in a holistic, real-world context.

13.5 SUMMARY

The study of public policy is a relatively new field of inquiry in public administration. Various
approaches have been developed for its study. Each approach studies public policy from a different
perspective and this enables a comprehensive study of public policy from various dimensions. In this
module, four approaches have been discussed: group approach, rational choice approach, incremental
approach and policy networks approach. The group approach presupposes that political life is
interaction and struggleamong diverse societal groups, and politics is characterized by controversy
and conflictdue to the activity of interest groups. Public policy is the result of negotiations, bargaining

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and compromises resulting from competition between diverse groups.

13.6 QUESTIONS AND EXERCISES

1. Discuss the concept and definition of public policy.

2. Discuss the approaches of Public Policy.

13.7 REFERENC

Frohock, Fred M., 1979, Public Policy-Scope and Logic, Prentice Hall,Englewoodcliff.

Maclver, R.M., 1966. The Modern State, Oxford University Press. London.

Moore Barrington. 1958. Political Power and Social Theory: Six studies,Cambridge
Harvard University Press

Portney, Kent E., 1986, Approaching Public Policy Analysis, Prentice Hall,
Englewoodcliff.

Sahni, Pardeep, 1987, Public Policy: Conceptual Dimensions, Kitab Mahal,Allahabad.

Saigal Krishan, 1983. Policy Making in India: An Approach to Optimization,Vikas, New

Delhi.

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Unit-14: PUBLIC POLICY: FORMULATION,
IMPLEMENTATION AND EVALUATION

Structure

14.1 Objectives

14.2 Introduction

14.3 The Concept of Public Policy

14.4 Formulation of Public Policy

14.5 Implementation of Public Policy

14.6 Evaluation of Public Policy

14.7 Summary

14.8 Exercises

14.9 References

14.1 OBJECTIVES

After studying this unit, you will be able to understand

• The Concept of Public Policy

• The Formulation of Public Policy
• The Implementation of Public Policy
• The Evaluation of Public Policy

14.2 INTRODUCTION
Public Policy is as old as Political Science and Public Administration. But the concept of Public
Policy as an academic pursuit emerged in the late half of the twentieth centuryand since then it has
been acquiring new dimensions. Since the beginning, the studies on public policies were dominated
by researchers and students of both Public Administration and Political Science. Public
administration was to some extent preoccupied with the activities of administrative machinery, their
structures and their success in achieving their targets or goals. It hardly recognized the role of
organisationsplayed towards the formulation of policies as one of its main concerns. Yet the policy

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is an important element of the administrative process. The policy implies a decision asto what should
be done and how and when it should be done. In the words of Paul Appleby, “The essence of public
administration is policy making”. Public Policy is concerned with the pattern of actions directed at
social problems or goals and considerable progress has been in understanding policy content and
processes. (Howlett& Ramesh: 1995)

14.3 THE CONCEPT OF PUBLIC POLICY

To understand the concept of public policy, we need to be clear about what we mean bythe adjective
"public". In the social sciences, society is extremely difficult to describe and define because of its
vastness and the difficulty of contextualizing it. The word public has several meanings. It comes
from the Latin word publicus (also poplicus). It is related to the English word "populus" or
(population). In general, the public means amass population ("people"). Here it means government.
Public policy, therefore, simplymeans government policy formulated in a political context. Public
order is a matter of common interest. They concern civil or public affairs, official or state affairs.
One wayof defining what is public is to distinguish between the public sphere and the private sphere.
Publicity has become a necessity as smaller associations with a limited role havebeen recognized as
private and coordinate their activities and establish order.
Like society, the idea of politics is difficult to grasp. These can be goals, tasks, objectives, procedures
and social values. Hogwood and Gunn (1984) listed ten uses of the term politics: a camp label;
Expression of the desired facts; concrete proposals; government decisions; formal approval; plan;
Exit; Result; theory or model; and the process. In general, the term political was more limited to the
direction and course of action, which includes policies and conduct. Ayyar (2009) thought that there
is a difference in public policy. Whenever he focuses on the state, it is assumed to have its uniqueness;
the policy as such would have far-reaching reach and impact; there are many actors and
considerations with many external influences. Thomas Dye (1987) wascorrect in his assessment that
"...whatever government's decision to do or not to do" is a matter of public order.
It can be said that public order is a wilful act in pursuit of ends set by those in power and authority.
It shares some common features: a set of choices; defined procedures andapproval levels; Relevance;
Rationality, and organizational and personnel policy. From a general perspective, it has been
described as a process of deciding who gets what, when, where and how. Gerston (2008) identifies
four factors that require public policy:outreach (participants); intensity (the extent to which people
are affected); Duration (how long the issue, problem, or challenge affects people); and resources (a
set of termsto be published). Politicians such as Jenkins, Rose, and Anderson argue that public policy
is best understood in terms of processes. In fact, according to Gilliat (1984), political decisions are
not limited to a top organizational level or an initial phase, but tosomething fluid and ever-changing.
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Policy refers to the plan of action proposed by an individual, group, institution, or government to
achieve specific goals in a specific environment. Public policies are formulated and implemented by
government agencies and officials. You are as old as the government. They are formulated and
implemented to meet the diverse needs and problems of people. For this reason, Paul Appleby sees
decision-making as the essenceof public administration.
There is a close relationship between politics and policy. The policy-making process is a part of
politics and political action. Political considerations and decisions lead to the emergence of policies.
Policies have extensive influence on the minds of people. Therefore, policy-making and
implementation determine the fate of the government, particularly in democratic countries.
Public policy is the result of concerted and collective actions of government over some time. Its
formulation and implementation entail a well-planned course of activities; anda close collaboration
between various governmental agencies.
Meaning of Public Policy
The policy is the government’s course of action to achieve the desired ends. Public Policy includes
whatever government intends to undertake or not to undertake. As saidby Thomas Dye, policy can
be defined broadly as “whatever government chose to do ornot to do”. In other words, Public Policies
are the governmental rules and programmes,considered individually and collectively, formulated to
affect positive change. Public Policy is a set of rules and regulations set forth that the public law is
expected to adhereto. The term Public Policy always refers to the actions of the government and the
intentions that determine these actions.
There are numerous definitions of Public Policy. Following are some important definitions of public
policy.
Brooks: “Public Policy is the broad framework of ideas and values within whichdecisions are taken
and action, or inaction, is pushed by governments concerning some issues or problems”.
Marshall Dimock: public policy as “consciously acknowledged rules of conduct a guide of
administrative decisions”.
Richard and Baldwin: Policy as ―formulation of rules, norms and prescriptionsintended to govern
the subsequent decisions and actions of government”.
Dodd and Michelle: “Public policy implies a commitment to a course or plan ofaction agreed to by a
group of people with the power to carry it out”.
By discussing the above definitions, we can say Public Policy is what government decides or chooses
to do and is the relationship of the government units to the specific field of the political environment
in a given administrative system. Public Policies are goal oriented. To attain the objectives which,
the government has in view for the ultimate benefit of the masses in general, the Public Policies

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are formulated and

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implemented. These are value-laden and arise as sequels of the programmes of the government in
action overtly. Public Policy is a pattern or course of activity of the governmental officials and actors
collectively rather than being termed as their discrete and segregated decisions. Public Policy is
positive in the sense that it depicts and concern of the government and involves its action to a
particular problem on which thepolicy is made.
Nature of Public Policy
Whenever we need to discuss the nature of a concept or a term, there has to be a focus on the attributes
or constituents of it. A large number of related aspects have to be considered while dealing with the
nature of public policy. Since it is inclusive of public-private debate, plan, programme, project, policy
analysis, policy advocacy, and decision, therefore, we have to understand each one of them. Public
policy is crucial forthe development processes of a country and is a collective action for the fulfilment
of the needs and aspirations of the people at large.
• Public policy is a goal-oriented and result-oriented statement. It involves spelling out strategy
and purposive actions to attain the objectives of thegovernment with the ultimate aim of
promotion of public interest.
• Public policy has a futuristic orientation. It is directed towards the future which may be
immediate or long-term.
• Public policy has the sanction of law and authority behind it. Its legally coercivequality is
accepted as lawful and binding by the citizens. This quality of public policy makes it distinct
from the policy of a private organization.
• Public policy is dynamic in the sense that it is continuously formulated and re- formulated in
response to the requirements of the environment and time.
• Public policy may be general or specific, broad or narrow, simple or complex, explicit or
implied, discretionary or exhaustive, and qualitative or quantitative.
• Public policy may be positive or negative. Positively, it depicts the concern of the government
and involves obvious governmental action to deal with a particular issue. Negatively, it
involves a decision by governmental officials regarding not taking action on a particular issue.
• Public policy can take diverse forms like laws, ordinances, court decisions, executive orders,
administrative rules and regulations etc.
• Public policies are of various types. They may be deliberate, appealed, implied, externally
imposed, value-laden, value-free, macro, micro, substantive, regulatory, distributive, or
redistributive.

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14.4 FORMULATION OF PUBLIC POLICY

Policy Cycle

The formation of public policy is shaped through several stages. In each stage, there are multi-
interaction involving more than one actor and components. The notion of a policy cycle, prominent in
the classical view, has its origin in the systems theory and the pioneering work by David Easton on
political systems. May and Wilda Sky (1979) described a policy process as comprising of (1) agenda
setting, (2) issue analysis, (3) implementation, (4) evaluation, and (5) termination. Similarly, Brewer
and de Leon (1983) based their understanding of the policy process on a series, which they define as
(1) initiation, (2) estimation, (3) selection, (4) implementation, (5) evaluation, and (6) termination.
Hogwood and Gunn (1984) also envisage a cycle: issue search or agenda setting; issue filtration;
issue definition; forecasting; setting objectives and priorities; options analysis; policy
implementation; evaluation and review; and policy maintenance, succession or termination.
According to Colebatch (1998), the policy cycle imagines the policy process as an endless cycle of
policy decisions, implementation and performance assessment. Howlett and Ramesh (2003) conceive
of a similar cycle but with more steps: agenda setting (problem recognition); policy formulation
(proposal of a solution); decision-making (choice of a solution); policy implementation (putting the
solution into effect); and policy evaluation (monitoring results).
The policy cycle framework takes into account the feedback between different elementsof the policy
process. Therefore, it draws a more realistic picture of the policy process than earlier stages models.
Under real-world conditions, policies are not the subject of comprehensive evaluations that lead to
either termination or reformulation of a policy. Policy processes rarely feature clear-cut beginnings
and endings. At the same time, policies have always been constantly reviewed, controlled, modified,
and sometimes even terminated. Sometimes, policies are perpetually reformulated, implemented,
evaluated, and adapted. But these processes do not evolve in a pattern of clear-cut sequences.
Instead, the stages are constantly meshed and entangled in an ongoing process (Frank Fischer, Gerald
J. Miller, and Mara S. Sidney; 2006). Hogwood and Peters (1983) suggested the notion of policy
succession to highlight those new policies develop in a dense environment of already existing
policies. Moreover, policies do not develop in a vacuum but are adopted in a crowded policy space
that leaves little space for policy innovation. Instead, new policies (only) 5 modify, change, or
supplement older policies,or more likely compete with them or contradict each other. The policy
cycle focuses attention on generic features of the policy process rather than on specific actors or
institutions or particular substantial problems and respective programs.
This "clumping" of related steps into a sequential order is very useful for analysing public
policymaking (as presented in figure 1) but it does not mean that every policy must take every one
of these steps in this order.
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 Figure 1 Policy Process Cycle

14.5 IMPLEMENTATION OF PUBLIC POLICY

Policy implementation is a lengthy process that begins from designing the content of a policy to
achieving the results. There are a few important dimensions and essential pre- conditions for a
successful policy implementation. The module defines policy implementation and discusses the
processes of policy formulation. Further, it draws various dimensions of policy implementation and
identifies some of the important conditions for the successful implementation of a policy. Up to the
1970s, policy analysts gave little attention to policy implementation aspects. Implementation research
gained significance as many policies have not been implemented well in the mid-1970s.
Policy implementation is an important component of the policy process. It is a lengthy process that
begins from designing the content of a policy to achieving the results. Implementation determines
the success or failure of a policy (Sabatier and Mazmanian:1989). Petrus and Barnard observed a
limitation in understanding the meaning and scope of implementation. According to them, the earlier
studies viewed policy implementation merely as an administrative task or choice. It was assumed
that, once the policy had been legislated and approved, the implementation process would take place
without any further tasks. However, as they argue, this line of thought ignored or glossed over the
complexities involved in policy implementation. They recognized the existing ambiguity about the
beginning of policy implementation and its ending.
According to Bhuyan, Jorgensen and Sharma policy implementation primarily emphasizes the
mechanisms, resources, and relationships that link policies to program action. Policies once adopted
are not always implemented as envisioned at the beginning and do not necessarily achieve the
intended results. The literature on policy science defined policy implementation in various ways. To
begin with, Meter and Hornhold that, “policy implementation encompasses those actions by

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public or private
individuals or groups that are directed at the achievement of objectives outlined in prior policy
decisions”. This definition highlighted two important features of policy implementation: (i)
collective effort of public and private individuals such as government, civil society actors and
individuals (ii) achievement of the objectives which are laid down in the policy content. In a similar
vein, Nakamura and Smallwood understood policy implementation as a process aimed at
accomplishing the goals of a policy. They further defined policy implementation as “the set of
activities and operations undertaken by various stakeholders toward the achievement of goals and
objectives defined in an authorized policy”.
Another definition of policy implementation put forward by Petrus and Barnard is the
“accomplishment of policy objectives through the planning and programming of operations and
projects so that agreed-upon outcomes and desired impacts are achieved”. This definition brings
added importance to the planning and programming of a policy that is aimed at target achievement.
Put together, it is understood that three important elements of policy implementation need attention.
First, policy implementation is nothing but achieving the goals of a policy which are designed at the
beginning of the policy. Second, policy implementation entails the involvement of various factors
such as government, civil society organizations, business groups and individuals. In fact, according
to Sabatier and Mazmanian, the second element, that is, the active involvement of various
stakeholders is an important pre-condition for successful policy implementation. Third, the planning
and programming of a policy are also considered to be critical in the process of implementation.
(Mazmanian & Sabatier:1989).
Stages of Policy Implementation
Policy Initiation:
This involves identifying the appropriate policy to be executed and obtaining the approval of the
computer policy which touches on several aspects of people’s life, broadly seen in the socioeconomic
and political spheres.
Organization:
With the knowledge of goals to attain, manpower, the necessary finance, the equipment,machines and
other relevant materials are mobilized and assembled into workable unitsand organisations for the
realization of set objectives. The motivation techniques and compensations are harmoniously applied
to boost the morale of the workforce towardsgreater achievements.
Operational Strategies:
This is the action stage when the known principles and practices of communication, information,
utilization, data analysis, coordination’s supervision, resources

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management and public relations are skillfully managed to accomplish predestined goals.

Feedback Mechanism:
The knowledge of what has happened is the function of the feedback mechanism. Thismakes a speedy
evaluative analysis of the policy implementation activities and reports observations positive or
negative to the appropriate quarters. The feedback mechanismis a two-way traffic that communicates
not only the roles of the action side of policy execution but also the effects of reactions.
Every nation has its kinds of people, its peculiar political system, its unique environmentand its style
of managing its affairs.

Stages of Policy Making

14.6 EVALUATION OF PUBLIC POLICY

Policy evaluation applies evaluation principles and methods to examine the content, implementation
or impact of a policy. Evaluation is the activity through which we develop an understanding of the
merit, worth, and utility of a policy. For a policy maker,policy evaluation is a means of getting the
relevant information and knowledge Regarding policy problems, the effectiveness of past, and
prevailing strategies for reducing or eliminating the problems to improve the effectiveness of specific
policies and considers the special context of politics and economic variables of the Situation.
Nature
Evaluation deals with a wide range of activities:

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It deals with a wide range of activities because the duty of the different organs of the government is
not only to make the implementation of the policies but alsoon the other side it makes efforts that how
to materialize them. In this process, policy evaluation goes through different processes and methods.
‘Evaluation’ is a more systematic and scientific attempt
Policy evaluation has to be more reliable, structured and measured. With scientific methods and
approaches, it is quite difficult to make policy evaluations.
evaluation is a means of getting the relevant information and knowledge regarding policy problems,
In the due course of the policy evaluation process, it has some issues and problems, which is why a
sophisticated evaluation can bring the policies more transparent and accepted.
Significance
Evaluation is an essential part of the policy cycle, as it facilitates evidence-based policydesign and
implementation, increasing the policy’s accountability and transparency, demonstrating
achievements towards policy objectives and assessing the policy's effectiveness, efficiency, results
and impacts. Needless to say that there are different organs of the government, those are more or less
influence the decision-making or policy-making process in a political system. On the other hand,
they are unable to identify the gaps in policy evaluation and implementation. Without proper gap
findings,it is very difficult to go for another policy creation. So as a result, a just and good analysis
of gaps in policymaking leads towards a better society in which all can live a suitable life.

Criteria for Policy Evaluation

We believe that three other evaluation criteria are relevant to our analysis: cost-effectiveness,
avoidance of international competitiveness impacts and political feasibility. A brief description of
each of the criteria follows.
Environmental Effectiveness
This criterion is intended to determine whether and to what extent a policy will contribute to
environmental improvement objectives. It is one of the big factors or criteria in policy evaluation and
implementation in the changing environment. The behaviour, pattern also affects the system. So
environmental effectiveness can be measured directly or indirectly by expected changes in the
environmental outcome. (Level of CHF emissions into the environment)
Fiscal Impact

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This criterion considers the impact of an environmental policy on a government’s Fiscalposition. A
policy more or less required a perfectly balanced budget. A sound and just economic system leads
towards the possibility of a good policy and it affects policy evaluation as well.
Economic Efficiency.
Economic efficiency refers to the optimal allocation of resources among Alternative uses. A decrease
in economic efficiency or market failure occurs when prices do not reflect true and complete costs.
The relevant example of market failure in this context is the existence of “environmental
externalities,” which occur when environmental costsare not fully incorporated into prices but are
instead borne by society as a whole. A policy change that Adjusts prices to be a better reflection of
true costs should correct market failures that would lead to a sub-optimal allocation of resources. This
correctionwill result in an increase in economic Efficiency as the allocation of resources among
alternative uses improves.
Fairness
It deals with that how the system distributes burdens and benefits in the process of policy
implementation and evaluation. Without fairness and transparency, it is impossible fora good policy.
There are many polluters more or less affecting policy evaluation which is why maintaining fairness
and transparency is vital for policy evaluation.
Cost-Effectiveness
Through cost-benefit analysis, it means what to be the economic cost associated with a particular
policy.
Equity
Thus, refers to the distribution of effects and effort among different groups in society. For example,
the criterion or equity implies the question: are costs and benefitsdistributed equitably among the
Different groups? Society must distribute social benefits, privileges, and employment opportunities
to all sections of society. Equality should be maintained irrespective of class, caste, religion, place of
birth etc.
Public Interest
In a Democratic country like India public interest and demand are at the central point ofevery issue.
Somehow it can be said that the majority should be granted, but the minorityshould not be eliminated.
On this note, we can assume that the common individuals aremuch more interested in the policy
formulation process because if the policy is not in afever of the people it would create a sense of
dissatisfaction which will affect the policy-making as well.
Public Participation/Responsiveness
People’s participation means the participation of people in the administrative process. It implies

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citizens' effective performance of the administrative machinery. It makes the
administration responsive to the needs of. It also says how people are participating in different policy-
making processes, wherein in a democratic setup individual plays a crucial role. They have the
ultimate authority and sovereignty.
Sustainability
Sustainability is an important concept in the development context. It refers b the continuation of the
practices or work done or measures taken under a policy after the termination of current
Interventions, under the same or an alternative policy. In more specific terms, sustainability would
mean: the maintenance of physical facilities produced (such as roads, buildings, etc.)
Models in Policy Evaluation
There are many models in policy evaluation which they are more or less affected by policymaking
and the process of evaluation. While we are talking about models, it studies the structural and
functional changes in policy formulation. In evaluativestudies, quantitative analysis may be sought
to be used primarily for measuring effectsand impacts. Quantitative methods in

14.7 SUMMARY
Public policy-making is the principal function of the state. Since its formulation is a complex and
dynamic process, no theoretical model is adequate to explain the policy formulation. Public
policymaking is a complex, dynamic process whose components make different contributions to it.
It decides major guidelines for action directed at the future, mainly by the governmental organs.

These policies firmly aim at achieving what is in the public interest by the best possible means. Public
policy can be an authoritative allocation of values by the political system, a slight variation from the
previous or existing policy, equilibrium reached out of the competing group struggle, a rational
choice or the preference of the governing elite. It can also be a combination of these processes.
In policy formulation, various agencies participate directly or indirectly. The role of governmental
agencies is direct while the role of non-governmental agencies is indirect. Some of the agencies,
which take part in policy formulation, are the legislature, cabinet, state governments, civil servants,
judiciary, boards and commissions, mass media, political parties, pressure groups and the public.

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14.8 EXERCISES
1. Explain the meaning and nature of public policy?

2. Explain the formulation of public policy?

3. Explain the implementation of public policy?

4. Explain the evaluation of public policy?

14.9 REFERENCES

• Birkland Thomas A., (2005): An Introduction to The Policy Process: Theories,

Concepts, And Models of Public Policy Making, Ar monk; M.E. Sharpe
• Ramesh K. Arora and Rajni Goyal (2012): Indian Public Administration, Vishwa
Parkashan, New Delhi.
• Howlett, Michael, and M. Ramesh, (1995): Studying Public Policy: Policy Cycles
and Policy Subsystems, OUP, Toronto.
• John, Peter, (2012): Analysing Public Policy, 2nd ed., Rutledge, Taylor and Francis
Group, London.
• Pulzl, H., & Treib, O. (2007): Implementing Public Policy. in F. Fischer & G. J.
Mille. (Eds.) Handbook of public policy analysis: Theory, politics, and methods (pp.
89-108). Boca Raton, N.W.: Taylor & Francis Group.
• Goggin, M. L., Bowman, A., Lester, J., & O'Toole, L. (1990): Implementation theory
and practice: Toward a third generation. New York: Harper Collins.
• Anderson, J. E. 2010: Public policy-making- An introduction. Boston MA:
Wadsworth.
• Mazmanian, D. A., & Sabatier, P. A. 1989: Implementation and public policy.
Lanham: University Press of America.

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UNIT-15: NEW PUBLIC ADMINISTRATION, NEW PUBLIC
MANAGEMENT, NEW PUBLIC SERVICE APPROACH

Structure

15.1 Objectives
15.2 Introduction
15.3 New Public Administration: Background
15.4 Minnow-Brook Conference
15.5 Aspect and Features of New Public Administration
15.6 New Public Management
15.7 History and Development of NPM
15.8 Globalization of NPM
15.9 Goals and Impact of NPM
15.10 Relevance of NPM
15.11 Key Terms
15.12 Summary
15.13 Self Assessment Questions
15.14 References

15.1 : OBJECTIVES
After going through this unit, you will be able to know:
• What is New Public Administration
• Aspects of the New Public Administration
• What is New Public Management
• Impacts of New Public Management

15.2: INTRODUCTION
The term new public administration simply means that there was a public administration which was
old. It was in that sense because of giving importance to administration rather than public, principles
and processes rather than values and philosophy, efficiency and economy rather than effectiveness
and service efficiency. The fact behind it is that with the change of major and minor aspects of
society the administration of society has experienced changes and the public administration in
general has to cope with the changing administrative environment. Otherwise it cannot meet the
basic necessities of society. In our analysis of the evolution of public administration, we have already
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noted that towards the end of the sixties of the last century people experienced in administration
developed, new paradigms of public administration were devised, and these were suggested to meet
the new challenges of society. It has been suggested that the administrators must find out new
methods of administration, otherwise the administrative structure will not be in a position to keep
the momentum of change.

15.3: NEW PUBLIC ADMINISTRATION: BACKGROUND

Whatever may the form of government be, there must exist an administration. This is a fundamental
notion and from this comes the notion of new public administration. It is to be noted here that the
concept of new public administration first arose in America. Nicholas Henry says that in 1968 some
enthusiastic administrators took an initiative to hold a conference for finding out ways which would
be capable of dealing with new changes plaguing the administration of American society. These
enthusiasts found that the old public administration was “ineffective”. The time was quite crucial.
The Second World War (1939-1945) completely changed the economic and social structure and the
old administrative system could not deal with this change. So these new enthusiasts proposed that
there had arisen the necessity of devising new methods of administration and the American
administrators call it new public administration. The public administration of pre-1960s was
primarily concerned with the budgeting, efficiency, decision-making and the implementation of
decisions. But the events of post-Second World War threw a challenge to these basic concepts or
aspects of public administration. It was strongly felt that the whole public administration should be
overhauled. The sponsors of new public administration raised some causes such as values, ethics,
and development of individual member in the organization. Again, in the seventies of the last
century, the concept of justice gained enormous importance. This issue of justice was raised by John
Rawls in his famous work A Theory of Justice. John Rawls in his new theory of justice suggested
that the, social and economic inequalities are to be arranged so that they are both reasonably expected
to be everyone’s advantage and attached to positions and offices open to all.

It is further to be noted that in the seventies of the last century liberalism started to assume new
meaning and content. The old liberalism was incapable of meeting new challenges that surfaced in
society. People wanted more liberty and less state restrictions. The exact role of the state would be
like a night watchman. In earlier periods the state was aggressive, so was the public administration.
In the new era the power of the state should be drastically curtailed and the public administration
must adjust itself with new philosophy i.e. the philosophy of liberalism. The values, ethics,

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philosophy of liberalism are not diminished. There must exist bureaucracy. But the purpose and
function of the bureaucracy must be to protect freedom and ensure justice. A concept was circulated
in the academic market and it is new bureaucracy. Nozick‟s Anarchy, State and Utopia was
published in (1974) and John Rawls‟s Political Liberalism (1993) together tossed light on the nature
and functions of state and all these considerably influenced the public administration. It is to be
specially noted that all these works do not deal with public administration but their centre of attention
was modern liberalism and justice. But all these are to be achieved through the instrumentality of
state which means administration of states.

Naturally in one form or other public administration comes to be a powerful factor. The new
public administration wants to emphasize that it must have its own philosophy, ethicsand value
system which shall not stand on the persistence of liberalism. Nozick imagined of a new state
which will be an anarchical state and it will be the result of liberalism. Thus new public
administration is implanted with liberalism, justice and crucial role of state in the attainment of
these principles. The new public administration does not rule outthe decision-making and the
execution of decision as its function. But the periphery of new public administration has
expanded very considerably. An important aspect of new public administration is that there shall
exist bureaucracy but the top bureaucrats must change their outlook and mentality so that
administration can meet the needs of people of present century.
During the period of old public administration there was no existence of globalization
and liberalization and, naturally, the public administration that existed before the seventies of
the last century was not concerned with these two issues. Henry rightly observes, “Beginning in
the 1980s, a number of trends accelerated that harbour thepossibility for fundamental change in
how we perceive government and its administration. We group these trends under the rubrics of
globalization, devolution and redefinition”. In the age of globalization and liberalization no state,
big or small, can be treated as being separated from the rest of the world. Very few multinational
corporations situated in USA and UK are practically controlling the world economy. The public
administration and organization of various countries are gradually coming under their influence
and these states are rather forced to readjust or remodel their administrative structures to make
room for the entry of globalization and liberalization. Not only economy is influenced by
globalization, internet, world•wide environment, travel and communication have gradually come
under the influence of globalization. All these are challenging the time old administrative
systems. The result is public administration is forced to accept the influence of globalization.
The impact of globalization in national economy and public administration can be seen in another
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sector also. Reluctantly or willingly the governments of many countries and America in
particular are abandoning responsibilities towards public administration or administrative
responsibilities and this creates a vacuum in the sphere of public administration. But this vacuum
cannot continue indefinitely. A new model of public administration was badly needed and it is
accepted as „new public administration‟.
According to Fredrickson, New Public Administration is less generic and more public; less
descriptive and more prescriptive; less oriented towards considering what exists to beunalterable
and more oriented towards changing reality; less institution oriented and moreoriented towards
impact on client; less neutral and more normative; no less scientific.
However, the major landmarks towards the growth and emergence of New Public Administration
are discussed below.
1- The Honey Report on higher education for public service in 1967.

2- The Philadelphia conference on the theory and practice of Public administration in

1967.
3- The Minnow-brook conference of 1968

4- Publication of „Towards a New Public Administration: The Minnow-brook

Perspective, edited by Frank Marini, 1971.‟
5- Publication of Public Administration in a time of turbulence (Edited by D. Waldoin
1971.)
6- Publication of Grorge Frederickson’s book on New Public Administration in 1980

15.4: MINNOW-BROOK CONFERENCE

In the theory and Practice, New Public Administration Movement starting from the 1968 Minnow-
brook Conference began to assume new shapes and dimensions. The scholars and public
administration specialists attending the conference strongly felt that the advancement of new
technology and its impact on state activities, change in the outlook of men, the unprecedented
expansion of the study of political science have created a situation which requires a change in the
subject of public administration. Certain conclusions were framed by the specialists who attended
the first Minnow-brook Conference in 1968. Even the relationship between political science and
public administration was discussed. The young scholars who attended the conference felt that
public administration was no longer an ordinary branch of political science; it can reasonably claim
a separate status in the vast field of social science. The second Minnow- brook Conference was held
in 1988. It is again a landmark event in the field of new public administration. Landmark in the sense
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that the term new public administration was first used by the enthusiasts and energetic scholars of
political science and administrator in 1971 and again in 1988 the concept was elaborately discussed
in the perspective of several incidents or new atmosphere.
The US President Reagan introduced several administrative measures to curtail the quantum of state
intervention in economic and social affairs. It is called New Right theory of Neoliberalism. In the
post-Second World War period J.M. Keynes suggested state intervention to fight the economic crisis
and this was accepted by large number of experts as an effective means against economic crises.
Reagan in the USA boldly advocated that the state has very little to do in economic spheres and, not
only in this order to put the state economy in right order the expenditure for social welfare measures
must be drastically curtailed or brought down to the minimum level. The Reaganism in USA or
Thatcherism in Britain put heavy stress on public administration. There was a clear conflict between
public purpose and private purpose or private interest. The state shall perform minimum work for
the public. Private persons shall be allowed and encouraged to do those jobs which were previously
done by the state. The Second Minnow-brook Conference focused its attention to this very aspect.
There was also thematic discussion in the Second Minnow-brook Conference and this changed, to a
large extent, the contents and approach of public administration.

The Second Minnow-brook Conference 1988 adopted several proposals relating to public
administration. Some of them are:

(1) It is the duty of public administration to give special emphasis on the normative aspects of
administration. The participants at the conference wanted to say that the public administration
should not be concerned with what has happened, but what should happen.The classical or old
public administration emphasized not on the normative aspects and that was its drawback.
(2) If public administration starts to pay more attention to normatism or normatic character of
public administration as well as ethics, morality or values the public administrators must also
be prepared to reformulate the policies and methods of administration. In other words, the
accountability of public administrators shall be to normative aspect of public administration.
(3) Another decision adopted by the conference was human society is constantly changingand
the administrators must take into account these changes and they will build up policies in the
background of these changes. In other words, the administrative systemwill change in
accordance with the change of society.
(4) The Second Minnow-brook Conference (1988) suggested that the public administration
must aim at the realization of social justice and equality. For greater justice, redistribution of

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 wealth is essential and the burden of that task inevitably falls upon the administration.
(5) In the past there was a boundary wall between general public and administrators. That wall
is required to be abolished. The public administrators ought to be accountable to the public.
This accountability will bring about a change in the whole system of public administration.
At the beginning of the seventies of the last century the American Academy of Political and
Social Science held a conference and its chief aim was to discuss the theoretical and practical
aspects in great detail. The members of the conference thought the publicadministration must be
released from the confinement of old thought and ideas. To speak the truth the scholars
attending the conference were serious about the role of public administration in changing
society. The attitude and temperament of the scholars was that the subject must be treated as a
separate discipline of clear status and outlook. This outlook helped to build up the foundation of
New Public Administration and this has both academic and practical aspects.

15.5: ASPECTS AND FEATURES OF NEW PUBLIC ADMINISTRATION

An important aspect of new public administration is the public administration has achieved
considerable progress, so far as its subject matter is concerned. Under such circumstances it should
no longer be treated simply as a “branch of political science. The scholars and administrators in
unequivocal terms demanded that it should be regarded as a special subject. Its subject matter shall
be the various aspects of administration, both public and private. Public administration is a separate
discipline. The administrators must be specially trained in order to be good administrators. The
methods and subjects of training shall be decided by the public administration. If necessary the
public administration shall have freedom from necessary principles of other subjects. Public
administration is not a science and for that reason the subject matter of this subject has no scope to
be called a science in the sense physics and chemistry are sciences. But the term science shall be
used in liberal sense and public administration shall be called science in that liberal sense. In 1970,
the National Association of Schools of Public Affairs and Administration was founded. This body
demanded that public administration could properly call itself, and increasingly be recognized as a
separate self-aware field of study. This approach clearly indicates that numerous developments that
took place in the post- Second World War period directly or indirectly came under the aegis of public
administration. The subject matter has increased, so to speak, beyond any imagination.

FEATURES OF NEW PUBLIC ADMINISTRATION

The features of new public administration are discussed below.

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 • Change and Awareness: The administration should bring about certain internal as well as
external changes so that public administration could be made more relevant to the social,
economic, political and technological environment. For this, the administration has to be
more elastic and adjustable to the various changes.
• Client Centricity: This means that the effectiveness of the administrator should be judged
not only from the point of view of the government, but from that of the citizens. If the
administrative actions did not improve the quality of life of citizens then they are not
effective notwithstanding whatsoever rationality and efficiency they may have.

• Structural Changes in Administration: The new public administration approach calls for
small, flexible and less hierarchical structures. In any administration, the citizen‟s
administration interface could become more flexible and comfortable. The organizational
structure should be in tune with the socially relevant conditions.

• Multi-disciplinary Nature of Public Administration: Knowledge from several

disciplines and not just one dominating paradigm build the discipline of public
administration. The political, social, economic, management and human relation
approaches are needed to ensure the growth of discipline.

• Politics-Administration Dichotomy since administrators today are involved in policy

formulation and policy implementation at all the stages. Dichotomy meaning "a division
or contrast between two things that are or are represented as being opposed or entirely
different".

15.6: NEW PUBLIC MANAGEMENT

New Public Management (NPM) is a management or development system that is utilized in

companies, agencies and countries in their entirety. This system emphasizes the concept that ideas
used in the private sector must be successful in the public sector. NPM discussion and investigation
of economic and political systems in various countries have helped modernized the public sector
and policies on a global spectrum. New Public Management is viewed as a more efficient means of
attaining the same product or service; however citizens are viewed as customers and public servers
or administrators hold the title of Public Manager. NPM tries to realign the relationship between
expert managers and their political superiors making a parallel relationship between the two. Under
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NPM, Public Managers have incentive-based motivation and have greater discretion. NPM relies
heavily on disaggregation, customer satisfaction, entrepreneurial spirit, and the Rules of the Game.
Proper utilizing of the NPM system allows the expert manager to have a greater discretion. Public
Managers under the New Public Management reforms can provide a range of choices from which
customers can choose, including the right to opt out of the service delivery system completely.

15.7: HISTORY AND DEVELOPMENT OF NPM

The first practices of New Public Management emerged in the United Kingdom under the leadership
of Prime Minister Margaret Thatcher. Thatcher played the functional role of policy entrepreneur and
the official role of prime minister. Thatcher drove changes in public management policy in such
areas as organizational methods, civil service, labor relations, expenditure planning, financial
management, audit, evaluation, and procurement. Thatcher's successor, John Mayor, kept public
management policy on the agenda of the Conservative government, leading to the implementation
of the Next Steps Initiative. Mayor also launched the programs of the Citizens Charter Initiative,
Competing for Quality, Resource Accounting and Budgeting, and the Private Finance Initiative. A
term was coined in the late 1980s to denote a new (or renewed) stress on the importance of
management and „production engineering‟ in public service delivery, which often linked to
doctrines of economic rationalism (Hood 1989, Pollitt 1993). During this timeframe public
management became an active area of policy-making in numerous other countries, notably in New
Zealand, Australia, and Sweden. At the same time, Organization for Economic Cooperation and
Development (OECD) established its Public Management Committee and Secretariat (PUMA),
conferring to public management the status normally accorded more conventional domains of
policy. In the 1990s, public management was a major item on President Clinton‟s agenda. Early
policy actions of the Clinton administration included launching the National Partnership and signing
into law the Government Performance and Results Act. Currently there are few indications that
public management issues will vanish from governmental policy agendas.
A recent study showed that in Italy, municipal directors are aware of a public administration now
being oriented toward new public management where they are assessed according to the results they
produce.
The term New Public Management (NPM) expresses the idea that the cumulative flow of policy
decisions over the past twenty years has amounted to a substantial shift in the governance and
management of the state sector in the United Kingdom, New Zealand, Australia, Scandinavia, and
North America. A benign interpretation is that these decisions have been a defensible, if imperfect,
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response to policy problems. Those problems as well as their solutions were formulated within the
policy-making process. The agenda-setting process has been heavily influenced by electoral
commitments to improve macro- economic performance and to contain growth in the public sector,
as well as by a growing perception of public bureaucracies as being inefficient. The alternative
generation process has been heavily influenced by ideas coming from economics and from various
quarters within the field of management.

15.8: GLOBALIZATION OF NPM

The basic principles of NPM can be the best be described when split into seven different aspects.
They are the following:
• Because of its belief in the importance and strength of privatizing government, it is critical
to have an emphasis on management by engaging in hands on methods. This theory allows
the freedom to manage freely and open up discretion.
• Performance Standards or Methods
• It’s important to maintain explicit standards and measures of performance in a workforce.
Using this method promotes clarification of goals/intent, targets, and indicators for
progression and success.
• Output Controls
• The next point acknowledges the shift from the use of input controls and bureaucratic
procedures to rules relying on output controls measured by quantities performance
indicators This aspect requires using performance based assessments when looking to
outsource work to private companies or groups.
• Decentralizing of Units
• This point suggest that it is more appropriate to shift from a unified management system to
a decentralized system in which managers gain flexibility and are not limited to agency
restrictions.
• Competition
• This characteristic focuses on how NPM can promote competition in the public sector
which could in turn lower cost, eliminate debate and possibly achieve a higher quality of
progress or work through the term contacts.
• Private sector Management

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 • This aspect focuses on the necessity to establish short-term labor contracts, develop
corporate plans, performance agreements and mission statements. It also focuses on
establishing a workplace in which public employees or contractors are aware of the goals
and intention that agencies are trying to reach.
• Reduction
• The most effective one which has led to its ascent into global popularity focuses on keeping
cost low and efficiency high. Doing more with less.
• Differences between Public and Private Sectors
• New Public Management draws practices from the private sector and uses them in the
public sector of management.
• The New Public Management reforms use market forces to hold the public sector
accountable and the satisfaction of preferences as the measures of accountability. In order
for this system to proceed, certain conditions, such as the existence of competition, must
exist and information about choices must be available.
• Reforms that promise to reinvent government by way of focusing on results and customer
satisfaction as opposed to administrative and political processes fail to account for
legislative self-interest. Institutions other than federal government, the changes being
trumpeted as reinvention would not even be announced, except perhaps on hallway bulletin
boards.

15.9: GOALS AND IMPACT OF NPM

According to Chriostopher Hoodthe New Public Management has seven features or goals
1- Emphasis on professional management in the public sector. 2- Laying of explicit standards and
measures of performance.
3- A shift to greater emphasis on output controls rather than procedures. 4- A shift to disaggregation
of units in the public sector.
5- A shift to greater competition in public sector.
6- A stress on private sector management practices.
7- A stress on greater discipline and parsimony in resource use.
According to R.A.W. Rhodes, the New Public Management has the following central doctrines or
goals. They are
1- A focus on management, not policy.

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 2- The disaggregation of public bureaucracies into agencies which deal with each other on a
user pay basis.
3- The use of quasi-market and contracting out to foster competition.
4- Emphasis on cost-cutting and motto being value for money.
5- A style of management which emphasis output targets, limited term contracts, monetary
incentives and freedom to manage.
Impacts of NPM
In order to attain these goals the government in different parts of the world have used a number of
instruments such as; creation of autonomous public organization; reducing the size of government;
corporatization of government organizations; reducing budgets and welfare expenditure; reforming
civil service structure; performance measurement and evaluation; privatization of public
undertakings; decentralization of authority to lower levels; contracting out services to private
agencies; promoting openness and transparency in administration; encouraging people’s
participation in administration and declaration of citizen charter and so forth.

15.10: RELEVANCE OF NPM

The NPM had a great impact in the 1990s on managing and policy making, many scholars believe
that NPM has hit its prime importance. Scholars like Frank Dunleavy believe New Public
Management is phasing out because of disconnect with “customers” and their institutions. Scholars
cite the Digital Era and the new importance of technology that kills the necessity of NPM. In
countries that are less industrialized the NPM concept is still growing and spreading. This trend has
much to do with a country's ability or inability to get there public sector in tune with the Digital Era.
New Public Management was created in the Public Sector to create change in the field of
disaggregation, competition, and inducements. Using inducements to produce the maximum
services from an organization is largely stalled in many countries and being reversed because of
increasing complexity.

The Post New Public Management (PNPM) has advanced to the Digital Era Governance (DEG).
Dunleavy believes this new way of governance should be heavily centered upon information and
technology. Technology will help reintegrate with the digitalization changes. Digital Era of
Governance provides an exceptional occasion for self- sustainability and growth. However, there
are various factors that will determine whether or not DEG can be implemented successfully. When
countries have proper technology, NPM simply can't compete very well with DEG. DEG does an
excellent job of making services more accurate, prompt and remove most barriers and conflicts.
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DEG also can improve the service quality and provide local access to outsourcers. New Public
Management is often erroneously compared to New Public Administration. The „New Public
Administration‟ movement was once established in the USA during the late part of 1960s and early
part of 1970s. Though there may be some communal features, the central themes of the two activities
are different. The main thrust of the New Public Administration movement was to bring academic
public administration into line with a radical egalitarian agenda that was influential in US university
campuses. By contrast the emphasis of the New Public Management movement a decade or so later
was firmly managerial in the sense that it stressed the difference that management could and should
make the quality and efficiency of public services. It focuses on public service production functions
and operational issues contrasted with the focus on public accountability,” model employer‟ public
service values, „due process,‟ and what happens inside public organizations in conventional public
administration. That meant New Public Management doctrines tended to be opposed to egalitarian
ideas of managing without managers, juridical doctrines of rigidly rule-bound administration and
doctrines of self-government by public-service professionals like teachers and doctors. The table
below gives a side by side comparison of the two systems core aspectscharacteristics

New Public Management New Public Administration

Hands on approach Hierarchy and rules

Explicit standards apolitical civil service

Emphasis on Output Control Internal regulations

Disconnection of units Equality

Importance of the private sector Importance on public sector

Increase timing Stability

15.11: SUMMARY

In summary, New Public Administration seeks to redefine the practice of public administration by
incorporating democratic values, social equity, and a more citizen-centric focus. It encourages
collaboration, decentralization, and a holistic approach to address the complex challenges faced by
contemporary societies. New Public Administration (NPA) is a perspective in the field of public
administration that emerged in the late 20th century as a response to the perceived limitations of
traditional public administration theories. New Public Management represents a paradigm shift

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towards more market-oriented and business-like principles in the public sector. It focuses on
efficiency, accountability, and customer satisfaction, drawing inspiration from private sector
management practices to improve the overall performance of public organizations.

15.12: KEY TERMS

Citizen-Centric: NPA emphasizes placing the needs and interests of citizens at the center of public
administration, ensuring that government actions are responsive to the public.
Social Equity: NPA places a strong emphasis on achieving social justice and fairness in public
policies, aiming to reduce disparities and improve the well-being of marginalized or disadvantaged
groups.
Professionalism: While emphasizing citizen participation, NPA also stresses the need for a
competent and professional public administration workforce to effectively implement policies and
programs.
Downsizing: NPM often involves efforts to reduce the size of government through privatization,
contracting out, and streamlining operations to enhance efficiency.
Managerialism: NPM is often associated with the adoption of private-sector management practices
in the public sector, emphasizing managerial efficiency, accountability, and performance.

15.13: SELF ASSESSMENT QUESTIONS

• What is new public administration? Discuss its basic features.
• What is new public management? Discuss its characteristics.
• Discuss dimensions of New Public Administration.
• Discuss impact of globalization upon new public management.

15.14: REFRENCES

Hood, Christopher (1 March 1991). "A Public Management for all Seasons?". Public
Administration., Hood and Jackson 1991
Farazmand, Ali (February 2, 2006). "New Public Management". Handbook of Globalization,
Governance, and Public Administration: 888.
Barzelay (2001). The New Public Management: Improving Research and Policy Dialogue. Russell
Sage Foundation. ISBN 9780520224438.
Kaboolian, Linda (1998). The New Public Management: Challenging the Boundaries of the

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Management vs. Administration Debate. Public Administration Review.
Chapple, Simon (2019). "From Mandarin to Valet Public Service?". Policy Quarterly.
Marozzi, Marco; Bolzan, Mario (2015). "Skills and training requirements of municipal directors: A
statistical assessment". Quality and Quantity.
Morisson, A. & Doussineau, M. (2019). Regional innovation governance and place-based policies:
design, implementation and implications. Regional Studies, Regional Science.
Schedler, Kuno; Proeller, Isabella (2002). "The New Public Management: A Perspective from
Mainland Europe". In McLaughlin, Kate; Osborne,
Stephen P.; Ferlie, Ewan (eds.). New Public Management: Current Trends and Future Prospects.
New York: Routledge. pp. 163–180. ISBN 0-415-24362-9.

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UNIT-16 : GOOD GOVERNANCE, FEMINIST PERSPECTIVE IN

GOVERNANCE

Structure

16.1 Unit Objectives

16.2 Introduction
16.3 Concept Analysis
16.4 Features of Good Governance
16.5 Feminist Perspective in Governance
16.6 Summary

16.7 Questions and Exercises

16.8 ReferenceS

16.1 UNIT OBJECTIVES

After going through this unit, you will be able to Know:

• Understand what governance is and analyse the concept of good governance
• List the advantages and disadvantages of good governance
• Describe the relation between e-governance and good governance
• Assess the role of decentralization in good governance
• Explain the relevance of citizen’s participation in decentralization

16.2 INTRODUCTION

The term ‘good governance’ refers to the perfect government wherein decisions and laws are made
in a just and fair manner. The characteristic features of ideal governance include participation,
accountability and transparency. A good government is not only effective and efficient but also
impartial and unbiased. It stands by the law and acts according to it. However, ensuring good
governance for all citizens is not an easy task for any country. Still, all countries strive to establish
good governance, to the best of their abilities. This unit concerns itself with the significance of the
concept of good governance and tries to explain it against the background of development, and its
relationship with democracy and financial development. You will learn what governance is and what

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makes governance good or bad. The benefits and drawbacks of good governance will also be
discussed in detail. You will also be able to understand good governance in comparison to e-
governance.

16.3 CONCEPT ANALYSIS

What is Governance?
The laws set forth by leaders, within a defined framework of rules, is referred to as governance. It
refers to various actions taken and progress made in areas due to which certain practices are
established and sustained. It would not be inappropriate to say that the process of governance is one
wherein those who rule also possess the power and authority to state or lay down rules, impose them
on people, and also ensure that they are adapted suitably. Therefore, governance depends on not just
the rules but also the rulers who make the rules. We should know how they both are selected,
identified, established and linked to the society. However, within governance, there is good and bad
governance too. It is difficult to explain the importance of governance since the meaning of the term
itself is unclear or debatable. Good governance is often linked to making the right decisions and
implementing them. It is also at times associated with democracy, civil rights and transparency. It is
considered to have everything to do with the rule of law as well as the efficiency of public services.
Good governance ensures participation and gives importance to consensus, accountability and
transparency. Not only is it fair and inclusive, it focuses on effectiveness, efficiency and
responsiveness. It strictly adheres to the law ensuring minimum corruption. Good governance takes
into consideration the opinions of the minorities and ensures that the weaker and vulnerable sections
of the society are given a patient hearing and included in the decision-making process.

Governance and Good Governance: Varying Definitions

Let us look at what some of the definitions of ‘governance’ say:
• According to Kaufman et al, ‘governance’ refers to the traditions and institutions by which
authority in a country is exercised.
• The World Bank refers to ‘governance’ as the manner in which power is exercised through a
country’s economic, political, and social institutions.
• According to the UNDP, governance is the exercise of economic, political, and administrative
authority to manage a country’s affairs at all levels. It comprises mechanisms, processes, and
institutions through which citizens and groups articulate their interests, exercise their legal rights,

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meet their obligations, and mediate their differences.
The following are the dimensions of governance as stated by the World Bank and
Kaufmann, et al.
• In the opinion of Daniel Kaufmann, Aart Kraay and Pablo Zoido-Lobaton,graft, rule of law and
government effectiveness are the fundamental elements of governance. In addition, they also state
the following dimensions of voice and accountability, political instability and violence, and
regulatory burden.
• Property rights and rule-based governance; the quality of budgetary and financial management;
the efficiency of revenue mobilization; the efficiency of public expenditures; and transparency,
accountability and corruption. – World Bank CPIA indicators. Let us now look at what is good
governance according to various sources:
• It is ‘… among other things participatory, transparent and accountable. It is also effective and
equitable. And it promotes the rule of law.’ – United Nations Development Programme (UNDP)
• It ‘… encompasses the role of public authorities in establishing the environment in which
economic operators function and in determining the distribution of benefits as well as the
relationship between the ruler and the ruled.’– OECD

16.4 FEATURES OF GOOD GOVERNANCE

Let us look at the characteristic features of good governance:
Good governance:
• Is participatory
• Follows the rule of law
• Is transparent
• Is responsive
• Oriented towards consensus
• Ensures equity
• Is effective and efficient
• Is accountable
We will now look at each of these features in slight detail:
• Good governance is participatory: The citizens of any country should possess the right to make
decisions, in a direct manner or by using means that are legal, lawful or by taking the help of
mediating organizations that are legal and will genuinely look after their interests. However, to
ensure such participation, there should be freedom of speech and association. Also, the citizens
should have the capacity to participate in a manner advantageous to them.

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• Good governance follows the rule of law: All laws related to human rights and legal frameworks
should not only be just and fair but implemented in a neutral and unbiased manner.
• Good governance is transparent: Transparency implies free flow of information, and this feature is
to be developed or built. All those seeking information can easily access sufficient amounts of it
directly. They can easily understand and keep track of processes. Good governance is responsive:
All institutions and processes try to ensure that all those involved, that is, the stakeholders are
provided services within a reasonable frame of time.
• Good governance is consensus-oriented: Good governance is all for arbitrating a broad
consensus on all that is beneficial to the concerned group. Consensus is sought on policies and
procedures and other things taking into account the varying interests of people.
• Good governance promotes equity: All citizens, no matter which caste, social level or class they
belong to are given equal opportunities to improve or maintain their well-being.
• Good governance is effective and efficient: When the requirements of the people are fulfilled by
properly organized processes and institutions, the results are naturally effective, as resources are
utilized in the best possible manner.
• Good governance is accountable: All the decision-making bodies whether governmental or non-
governmental, whether from the private sector or the civil society organizations can be questioned
by the community any time as they are answerable to all the stakeholders. Generally speaking, the
accountability of an organization or an institution is bound to be impacted by its decisions or
actions. It is not possible to make anybody accountable by force without ensuring that the rule of
law is followed and there is transparency in the system.

16.5 FEMINIST PERSPECTIVE IN GOVERNANCE

The emergence of the feminist movement all over the world reflecting the concerns of gender
quality and gender justice had its impact on all aspects of human living including social sciences.
Public Administration as a discipline cannot remain insulatedfrom this process. Feminism as a theory
and as a movement is based on the demand forrestructuring the political, economic and social set-up
based on gender equality. it promotes women’s rights and interests and fights for spaces for women
in politics, economy, state, bureaucracy, culture etc. As many of the gender inequalities and
injustices have been institutionalised in the laws of the states and public policies reflecting
patriarchal practices and values there are demands for an end to these. The public policies must be
gender sensitive so also the Public Administration. Feminist movements in the last centuries have
found patriarchal policies and laws as sites of struggle for the correction of discrimination against
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women. Feminism redefinedconcepts of power and domination and challenged the hegemony of
men over women in the power structures covering from family to state to culture. But there is no
unanimity among various groups of feminists. There are radical, liberal, Marxist approaches to
feminism. The movements for the empowerment of women vary according to these different
approaches and types of feminism.

The feminist movement has a long history and there are different waves, first wave, second wave
and third wave. Also, there is a fourth wave. These concentrate on particular issues of women. The
First wave of feminism emerged in Western Europe and fought for the property rights and voting
rights of women. The Second wave that emerged in the 60s focused on civil rights, education, health,
work, child rights, sexualliberation, reproductive rights, the right to abortion etc. it challenged the
sociocultural stereotyping of women and advocated for the right of women to work and to a career.
The third wave of feminism emerged based on the failures of the second wave. It was radical in its
approach and fought for gender equality with a radical approach.

Camilla Stivers is regarded as the initiator of the concept of feminist administrative theory. Her
famous work, ‘Gender Images in Public Administration’, published in 1993brought a revolution in
the administrative theory and approaches. In her words, ‘Feminist theorising critiqued the classical
liberal state for its marked individualism andthe dependence of its clear boundary between public
and private spheres on the exclusion of women and women’s concerns from political life. The
feminist theory offered new ideas about power, the nature of organisations, and leadership and
professionalism; it brought to light fundamental ways in which women have shaped society and
politics. Yet few of these ideas have made their way into conversations about Public Administration,
and defences of the administrative state still show little apparent consciousness that the images of
Public Administration on which they rely have gender dimensions or that feminist political theory
might have a significant role toplay in the legitimacy project.’ Her main argument lies in the fact that
the images of leadership, management, and Public Administration that have administrative power
aregender biased. These ideas are masculine. They perpetuate gender divisions of power and work.
They reproduce male hegemony over females. The feminine is excluded from the power structure
associated with these concepts. So, Public Administration is masculine. She said, ‘It contributes to
and is sustained by power relations in society at large that distributes resources based on gender
(though not solely on this basis) and affects people’s life chances and their sense of themselves and
their place in the world.’

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She advocates strongly for a ‘gender lens’ to look at Public Administration to correct the deep-seated
gender imbalances and inequalities in the administrative state. If Public Administration is seen
through the gender lens, then it will be revealed that public dimensions are gendered, not neutral.
The exercise of public power is done in the nameof public interest, but the public dimension suffers
from the biased historical understanding of the public as a male domain. The private space which is
the domesticsphere is regarded as the domain of women. This binary of public and private space is
totally gender discriminatory. She deconstructed the gender images of the concepts of leadership,
virtue and expertise. Her argument is logical and powerful. 1. The justifications of Public
Administration are based on the subordination of womenthrough an assignment of less important
jobs to women, 2. Public Administration limits opportunities for women as well as their time to
participate in public life, the narrativessurrounding expertise are anti-women and based on the idea of
subordination of women.Likewise, the images of leadership, visionary, decision maker, the symbol
and the definer of reality; all are masculine. Femininity and leadership are contradictory,according
to her.

In the words of Martha Nussbaum, ‘The relationship between gender and governance has too often
been neglected in both theoretical and empirical work. Until very recently,most influential political
thought has been built around a conceptual distinction betweenthe ‘public’ realm of politics, military
affairs, and administration, and the ‘private’ realm of family and domestic life. The public/ private
distinction has been thoroughly criticised as being in many ways misleading and untenable.
Nonetheless, it continues to influence both theoretical and empirical work, with the result that
women’s efforts to gain a voice in governance have been ignored.’ A feminist approach to Public
Administration focuses on identifying gender gaps in administration and then reducing them.
Secondly, it advocates for a women-friendly workplace. But the feminist work in Public
Administration is negligible and the movement for a radical change in Public Administration in
favour of women is also weak.

Another important voice in this regard is Kathy E. Ferguson. She criticised the liberal approach of
placing more women in management positions of administration as insufficient. She advocated for
feminist discourse in administration based on theperceptions and experiences of women. She was
for a non-bureaucratic approach to theorganisation and its problems. There are also other feminist
scholars like Georgia Duerst –Lahti and Rita Mae Kelly who talked of gender power and sex roles
to feminise administration. Carol Edlund discussed feminine leadership style which does not mean
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women leadership but alternative leadership different from masculine leadership. This style can be
by both men and women. Camilla Stivers's recent book, ‘Bureau Men and Settlement Women’
studied Public Administration from a gender perspective. It highlights the contributions of women
in urban America to Public Administration. However, there is a growth of feminist literature in
administration in recent times alongwith an increased representation of women in administration.
Unless the Public Administration is gendered the state and development cannot be inclusive. The
positivedevelopments in this regard need to be consolidated and carried further.

16.6 SUMMARY

Every country citizen's priority is the efficient operation of the government. Theresidents are
willing to pay a price for the high-quality services provided by the government, but what is needed
is a transparent, accountable, and understandable system of governance that is devoid of bias and
prejudice.
To reinstate effective governance in the nation, it is necessary to restructure our nationalpolicy to give
precedence to the Gandhian principle of "Antyodaya."
India should concentrate on fostering probity in governance, as this will make it more moral. The
quest for effective government seems never-ending. Regardless of the nature, structure, or form of
a state, it has been a constant problem for rulers since the very beginning of time. The standard has
been set, and rightfully so, by Alexander Pope:"For forms of government, let fools contest; "what’s
is best administered is best."
It turns out that efficient and effective governance, whether it be in the context of the executive,
judiciary, or legislature, necessitates that the institutions, the delivery mechanism they adopt, and
the framework of supportive rules, regulations, and procedures continuously evolve in harmony with
one another and response to the changing context. It puts the debate over government in a context
that is unique to the era and level of development in any given society. The need for ongoing
adaptation of governance processes is also demonstrated by the shifting roles and responsibilities
of the government, the market, and civil society about one another. It is only reasonable toexpect that
the state will give way to the market and civil society in many areas where it has previously had a
direct but inefficient presence as a result of the acceptance of market liberalism and globalisation.
It consists of places where the State, for instance, has produced commodities and services that are
also produced in the private sector. In some cases, civil society may currently have stronger
institutional capability, but it also incorporates the function of the State as a development driver. A
growing number of developmental tasks, as well as tasks that maintain the social order, must be

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gradually performed by the market and civil society organisations in tandem with the expansion of
markets and the presence ofa conscious and responsive civil society. It entails the expansion of the
market and the realm of civil society, often at the expense of the State. Additionally, it suggests that
theregion of their respective overlaps has grown.

16.7 QUESTIONS AND EXERCISES

1. What is Good Governance? Discuss its features.

2. What are the impacts of Good Governance on traditional Public Administration?
3. Discuss the feminist perspective in governance

16.8 REFERENCES

Behera, M (2021): Inclusive Development & Good Governance, Notion Press,

Chennai
Bevir, Mark (2012): Governance, OUP, London UK
Bhattacharya, M (2017): Public Administration, the world press, Kolkata
Currie, Bob (1996): governance, democracy & economic adjustment in India:
concept and empirical problem, third world quarterly, vol.17, no.4
Fukuyama, Francis (2013): What is Governance, Governance, vol.26, no.3, pp347-
68
Goldsmith, S & Eggers, D. Williams (2004): Governing by Network: The New
Shape of the Public Sector, Brookings Institution Press, and Washington DC.
Laribi, George, A (1999): The New Public Management Approach & Crisis states,
UNRISD Discussion paper, UNRISD, Geneva
Leftwich, A (1994): Governance, the state & the politics of development,
development and change, vol.25, 263-386
Stivers, Camilla (1992): Gender Images in Public Administration: Legitimacy and
the Administrative State, Sage, London
The World Bank, (1992): Governance & Development, Washington DC

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 BLOCK-4
ADMINISTRATIVE MANAGEMENT
Unit-17: Leadership
Unit-18: Motivation
Unit-19: Communication
Unit-20: Decision Making

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 UNIT 17: LEADERSHIP

Structure

17.1 Objectives
17.2 Introduction
17.3 Meaning and Definition of Leadership
17.4 Types of Leadership
17.5 Functions of Leadership
17.6 Theories of Leadership
17.7 Summary
17.8 Key Terms
17.9 Self Assessment Questions
17.10 References

17.1: OBJECTIVES
After going through this unit, you will be able to know:
• What is leadership
• Various type of leadership
• Functions and theories of leadership

17.2: INTRODUCTION
According to P.H. Appleby “The heart of administration is the management of programmes designed
to serve the general welfare. Management is vital to each and every type of organization may it be
public or private, governmental or business due to its dealing with a natural function of human
behavior”. The fundamental characteristic of individual or human behavior is the fulfilment of its
objectives and goals. The 21st century is the gift of individual and organizational management in
which the material existence, human endeavor and technological capacity are fully utilized. It is the
brain of an enterprise. An efficient team of managers can lead an enterprise towards growth and
prosperity. Briefly saying management is concerned with planning, executing and reviewing.

17.3: MEANING & DEFINITION OF LEADERSHIP

Leadership has gained a very important place in the administrations in the present scenario as
there is constantly increase in the public sector organizations. Each and every organization needs
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a competent leadership for its growth, development and prosperity. It is indispensable for the
successful functioning of an organization and attainment of its goals and objectives. It may be
defined as a position of power held by an individual in a group which provides him with an
opportunity to exercise interpersonal influence on the group for organizing and leading their
efforts towards certain goals. Leadership is an attribution that people make about other
individuals. People tend to characterize leaders as having the following traits: intelligence,
outgoing personality, verbal skills, aggressiveness, consistency, determination. They are
expected to have the capacity to motivate others to action. The manner in which leaders
accomplish this varies as leaders and their styles vary greatly. Successful leadership is correlated
to the compliance of followers. In are flection on leadership Winblad (1999) states that leaders
are decisive. They are forced to make a lot of decisions quickly, and they learn the fine distinction
between decisive and authoritarian-a skill in which the relative inexperience of the leader is most
obvious. Leaders should create an environment where there is honesty, inspiration and realistic
goal setting. Communication and clarification of goals should be continuous. Some leaders
develop their team and foster loyalty by making members feel that all the accomplishments
realized are a result of a collective effort.

Some leaders are adept at allowing followers to come to their own decisions and develop on their
own. They may provide very little direction and exercise little authority over the group. There are
other types of leaders, who may referred to as democratic, who provide directions, allows the group
to arrive at their own decisions, offers suggestions and reinforces team members ideas. More
specifically, “the leader encourages members to develop goals and procedures, and stimulates
members‟ self-direction and actualization”. There is also the type of leader who sets the pace, makes
all the decisions for the group without their input, and seeks little approval from team members. This
type of leader exhibits an authoritative style in which the leader takes full responsibility for the team
member‟s progress and accepts few suggestions from the team members. So leadership is a process
whereby an individual influences a group of individuals to achieve a common goal.

Dimock and Dimock defines “Leadership is not power, dominance, social superiority or anything
suggestive of snobbery. Leadership is influence on people not power over them.”

Warren Bennis defines Leadership as “the single defining quality of leaders is their ability to
create and realizer a vision.”

M.P. Follett defines “A leader is not the president of the organization or head of the department
but one who can see all around a situation and understands how to pass from one situation to

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another.”

James Rost defines “Leadership is an influenced relationship among leaders and followers who
in tend real changes that reflect their mutual purposes.”

Keith Davis defines “Leadership is the ability to persuade others to seek defined objectives
enthusiastically.”

Terry defines “Leadership is the activity of influencing people to strive willingly for mutual
objectives.”

Mooney defines “Leadership is the form that authority assumes when it enters into process.”
17.4: TYPES OF LEADERSHIP

There are three basic types of leadership and they are Autocratic leadership, Democratic leadership
and Laissez faire leadership. The Autocratic or Authoritarian leader includes the “feudal” and
“dictatorial” types.

The Democratic or Participative leader includes the “paternalistic”, “participative and development”
types.

The Laissez-faire or Free-rein leadership

1- The Autocratic type- This is also known as authoritarian or directive style of leadership.
This type of leader is work centered or leader centered. The entire authority or power is in
the hands of the leader. He is all powerful. All the policies are decides and formulates by
him. He guides the subordinates and ordered complete obedience from them. The
subordinates are not allowed to participates in the decision making process. The
subordinates are completely depends upon them and are also not aware about the
organizational goals and objectives.

The autocratic leadership type also divided into three sub categories. They are (i) the tough autocrat,
who uses heavily negative influences. (ii) The benevolent autocrat, is often referred to as a
paternalistic leader. (iii) The manipulative autocrat, who makes the subordinates feel that they are
actually participating in decision making process.

2- Democratic type- Democratic Type of Leadership is also known as participative type of

leadership. In this types of leadership the leader allows the subordinates to participate in
the decision making process. All the decisions and policies are arrived at through the group
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 discussions. In this type the communication flows freely and multi-directional. During the
era of human relations approach to administration the style became popular.

3- Laissez- faire Leadership- This is often described as no leadership at all for there is the
absence of direct leadership. This is also called Free-rein leadership. In this style of
leadership the leader gives complete independence to the subordinates in their operations.
He allows them to set their own goals and achieve them. He allows them to set their own
goals and achieve them.Here the leader his subordinates to assume responsibility for their
own motivation, guidance and control. The free reign leader believes that one who leads
the least leads best. The style involves complete freedom for group or individual
decisionwith no or minimum participation of the leader.
17.5: FUNCTIONS OF LEADERSHIP
The functions of leadership in an administrative organization can be discussed in the following
manner. Leadership is an abstract quality in a human being to induce others. It is a quality of an
individual to persuade others to seek defined objectives unreservedly.
David Bowers and Stanley Seashore divided the function into four types. They are (i) Support- it
deals with the behavior that enhances the members feeling of personal worth and importance. (ii)
Goal oriented- Leadership functions to achieve the goals of the organization. (iii) Work Facilitation-
Leadership believes in the activities of planning, scheduling, coordinating and providing resources
and information. (iv) Interactive- Leadership is interactive and encourage group members to develop
close and mutually satisfying relationships.
Hicks and Gullet identifies eight functions of a Leader. They are (i) Supplying organizational
objectives to the members. (ii) Arbitrating on disagreements among organizational members. (iii)
Catalyzing to arouse the subordinate to action. (iv) Suggesting ideas to subordinates. (v) Inspiring
subordinates to work effectively towards accomplishment of organizational goals. (vi) Praising
subordinates to satisfy their recognition and esteem needs. (vii) Providing security to followers when
they face problems. (viii)Representing the organization before others and serving as a symbol of the
organization.
Chester Barnard said that a leader performs four functions such as (i) Determination of objectives.
(ii)Manipulation of means. (iii) Control of the instrumentality of action. (iv) Stimulation of
coordinated action.
Follet said that Leader should perform the three main functions. Such as (i)Coordination
(ii) Definition of purpose . (iii) Anticipation
Petter Drucker said the three main functions such as (i) Lifting of man‟s vision to higher sights.
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 (ii) Raising of man‟s performance to higher standards. (iii) Building of man‟s personality beyond
its normal limitations.
Fiedler identified the two functions of leadership such as (i) Directing Group activities (ii)Co-
coordinating group activities.
17.6: THEORIES OF LEADERSHIP
Leadership has always attracted a wide range of theorists and thinkers in order to explain the
phenomena. There are three theories of leadership such as the Trait Theory, The Behavioural Theory,
and Situational Theory
(I) The Trait Theory- According to this theory the person becomes a leader because of qualities or
traits gripped by him. The theory believes that leaders are born not made. This is also known as
the great man Theory of leadership. This theory is advocated by C. Bernard, O. Tead, Millet, Terry,
Appleby and Schell.According to them those leaders inherit several favourite traits or qualities by
which they are identified in the society. This theory is also criticized as un-universal list of
leadership traits, does not indicate the comparative importance of different traits, ignores the need
for subordinates, does not recognize the influence of situational factors on leadership etc .It had
also no scientific base and empirical validity.

(II) The Behavioural Theory-The Trait Theory deals with the civilizations of the leaders
whereas Behavioural theory deals with the actions of the individuals.It deals with what the keaders
do and how they lead and behave with their subordinates. Their style of communication is different
from person to person.The advocates of the theory are K. Lewin, R.Lippit, R. White, Harris, Burtt.

(III) The Situational Theory:- When the trait and behaviouralists failed to give a proper theory
of leadership, there emerged a theory of situational factors as the researchers turned their attention
towards the situation. The leadership is influenced by situational variable and differing from
situation to situation. According to the theory leadership is multidimensional. The supporters of
the theory are R. Tannenabaum and W. Schmidt.

17.7: SUMMARY
Leadership is the ability to influence, guide, and inspire individuals or groups toward the
achievement of common goals. It involves the capacity to make decisions, provide direction, and
motivate others to work collaboratively. Effective leaders exhibit qualities such as vision, integrity,
empathy, communication skills, adaptability, and the ability to inspire trust and confidence.
Leadership can be situational, with different styles and approaches depending on the context and the
needs of the team or organization. It is not solely tied to a formal position of authority but can emerge
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at various levels within a group. Successful leaders often foster a positive and inclusive
organizational culture, encourage innovation, and focus on continuous improvement. Leadership is
a dynamic and evolving concept, with various theories and models aiming to understand and enhance
the effectiveness of leaders in different settings.
17.8: KEY TERMS
• Vision: The ability to articulate a compelling and inspiring vision for the future, setting the
direction for the team or organization.
• Influence: The capacity to affect the thoughts, feelings, and behaviors of others,
persuading them to align with the leader's goals and objectives.
• Integrity: Demonstrating honesty, ethical behavior, and consistency in actions, fostering
trust and credibility among followers.
• Adaptability: Being flexible and open to change, adjusting leadership style and strategies
based on the evolving needs of the team or organization.
• Courage: The willingness to take calculated risks, confront challenges, and advocate for
what is right, even in the face of adversity.

17.9: SELF ASSESSMENT QUESTIONS

• What is leadership? Discuss different types of leadership.

• Discuss the functions of the leadership.
• Discuss various theories of leadership.

17.10: REFERRENCES

Dahl Robert A. (1947) „The Science of Public Administration‟ USA: Blackwell Publishing

Gullick, S. and L. Urwick (1937) „Papers on the Science of adiministration‟ New York: Institute of
Public Administration

Maheshwari, S.R. (1991) „Theories and concepts in Public Administration‟ New Delhi: Allied
Publishers Ltd.

Pfiffner, J.M. (1946) „Public Administration‟ New York: The Ronald Company.

Waldo, D. (1967) „The study of Public Administration‟ New York: Random House. Riggs, F.W.

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(1961) „The Ecology of Public Administration‟ New York: Asia Publishing House.

Willoughby, W.F. (1927) „Principles of Public Administration‟ Washington: Publications of

Institute for Government Research.

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 UNIT18: MOTIVATION

Structure

18.1 Objectives
18.2 Introduction
18.3 Meaning and Definition of Motivation
18.4 Features and Implications of Motivation
18.5 Types and techniques of Motivation
18.6 Theories of Motivation
18.7 Summary
18.8 Key Terms
18.9 Self Assessment Questions
18.10 References

18.1: OBJECTIVES
After going through this unit, you will be able to know:
• What is motivation
• Different types and techniques of Motivation

18.2: INTRODUCTION
The term “motivation” is derived from the latin word “movere” meaning “to move”. In the
organizational framework motivation indicates a basic Psychosomatic progression.
Motivation is the core of management. It is a willingness to expand energy to achieve a go as or
reward. It is a utility that ignites a burning passion for action among the human beings of an
organization. Motivation connotes a dynamic driving force, which emanates from within. It is an
“inner striving condition which activates or moves individual into action and continues him in the
course of action enthusiastically”. The term motivation has its origin in the Latin word “movere”
which means to move”. Thus, motives are movers to action. Motivation is the process by which
behavior is mobilized and sustained in a particular direction. It is in fact impossible to determine a
person’s motivation until he behaves or acts. Motivation is a general term that applies to the entire
class of drives, needs, goals, and similar forces. A distinction may be made among the words need,
incentive, drives, and motive. The need has to be activated which is the function of incentive. An
incentive is anything that incites or tends to incite toward a specific goal. Needs compel the
individual to do some action so as to satisfy them. However, incentives are external stimuli that give
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value to the outcome of the individual behavior. Drives are subconscious, that motivate distinctive
individual behavioral patterns. A motive is an inner state that activates, directs, sustains, and stops
behavior towarda goal. Goals are desired results towards which behavior is directed.
18.3: MEANING AND DEFINITION OF MOTIVATION
People differ not only in their ability to do, but also in their will to do, or motivation. The motivation
of people depends on the strength of their motives. Motives are defined as needs, wants drives, or
impulses within the individual. Motives arouse and maintain activity and determine the general
direction of the behavior of an individual. Motives are the whys of behavior. They are the reasons
underlying behavior. A person may have hundreds of motives. All motives compete and the
strongest motive determines the behavior. A motive tends to decrease in strength if it is either
satisfied or blocked from satisfaction. Satisfied motives normally do not motivate individuals to
further action.
Morgan said “Motivation is a general term referring to behavior instigated by needs and directed
towards goals”.
Beralson and Steiner said “A motive is an inner state that energies, activities or moves and directs
or channels behavior towards goals”.
Koontz and O’ Donnel “Motivation is a general term applying to the entire class of drives, desires,
needs, wishes, and similar forces that induce an individual or a group of people to work”.
Ferd Luthans, “Motivation is a process that starts with a physiological or psychological deficiency
or need that activates behavior or a drive that is aimed at a goal or incentive”.

18.4: FEATURES AND IMPLICATIONS OF MOTIVATION

The characteristics of motivation are
(i)Motivation is personal and internal feeling, because it is a psychological and mental phenomenon
of the individual. (ii) It is depends upon the behavior of individual. So it is a behavioural concept.
(iii) It is a continuous and endless process. (iv) it is optimistic or pessimist by its nature. (v) It is an
essential and impartial part of management process.
Implications of Motivation
Motivation is one of the vital factors which determines the capability and proficiency of any type of
organization. It is the fundamental characteristics of any organization for the smooth functioning of
it. High and improved motivation provides the following advantages such as (A) The performance
of motivated employee is greater than the nonperformance employee. (B) Motivation boost the
employee to use different factors of production in a systematic and organized way. (C) Good and

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qualitative motivation leads to job satisfaction. (D) It also leads to integration and unification of
individual employee with the fulfillment of organizational objectives.
18.5: TYPES AND TECHINQUES OF MOTIVATION

From the above it can be assumed that motivation can be have two types, i.e. positive and
Negative.
Positive or Incentive Motivation – Positive motivation includes reward, praise, creditfor
work done, competition participation, pride, delegation of responsibility, appreciation,pay etc.
According to Flippo „Positive motivation is a process of attempting to influence others to do
your will through the possibility of gain or reward.‟

Negative or fear Motivation- The fundamentals of negative motivation are based on fear or
force. It has certain limitations like punishment, demotion etc. Instead of these limitations the
negative motivation has been used to achieve the desires behavior of the individual.
Techniques to achieve Motivation
The techniques to achieve motivation are (i) Economical such as wages, incentives, salary, bonuses,
medical reimbursement etc. (ii) Non economical such as praise and prestige, status and pride,
delegation of authority, participation, job security, job rotation, job enlargement, job loading,
working quality etc.
18.6: THEORIES OF MOTIVATION
The theories of motivation is based on two principles such as the content principle and process
principle. According to Fred Luthans the content theories are concerned with identifying the needs
that people have and how needs are arranged. The process theories are more concerned with mental
experiences that go into motivation or effort. According to J S Chandan, “The content theories
attempt to determine and specify drives and needs that motivate people.”The content principles deals
with what motivates people at work the process theories deal with how motivation occur. This
principle is pounded by Maslow, McGregor, Herzberg and Alderfer. The theories are described
below.
(1) Traditional Theory-
The traditional theory of motivation is also known as monistic theory of motivation or economic
theory of motivation or Carrot and Stick Approach to motivation. This theory analyses human
motivation in terms of economic factors. Everyone is economic man. In any society men try to
develop their economic power. This is also based on fear, punishment and reward. F.W. Taylor was
the first major proponent of this theory and after him all other classical thinkers followed his view.

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However this theory was also criticized by the other thinkers. They were, (i) over simplification and
under estimation, (ii) negligence of non-economic factors, (iii) Undermining the socio psychological
factors.

(II) The Hierarchy of Needs by Abraham Maslow

In 1954 Abraham Maslow, in his book Motivation and personality, wrote, need hierarchy is the
first systematic conceptual human motivation. He has also understood human behavior as a psycho-
analysis. He hasdivided the human needs under five levels. The first one is self-actualization needs
consists of hunger,thirst, sex and sleep. The second one is the security needs consists of protection
against natural calamities, threat, danger. The third one is social needs deals with belongingness to
group, family and friendship. The fourth one is the esteem needs which deals with achievement
needs consists of independence, confidence, etc. The fifth one is self- actualization consists of
realization of one‟s potential creativity.

The hierarchy of motivation by Maslow

Self-Actualization Needs

Esteem Needs

Social Needs
Security Needs
Physiological Needs

From the need hierarchy, physiological needs are the most fundamental and necessary for the
individual in a society. The safety or security need occupies the next best fundamental need. Then
the social needs help the individual to secure cherished place in the society by transforming their
behavior. The esteem needs and the self-actualization needs finally come after the satisfaction of all
the other needs. In this way Maslow‟s theory of need hierarchy has had remarkable effect on modern
management approach to motivation.

18.7: SUMMARY
Motivation is a dynamic force setting a person into motion or action. It is core of Management. The
word motivation is derived from the word which means motive. All motives are directed toward
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goals and motivation is the drive to satisfy a want or goal. It is concerned with goal- oriented
behavior. Motivation theories are generalisations about the why and how of employee behaviour.
They suggest the different ways of motivating people. The content theorists concentrate on what
motivates a person while process theorists concentrate on how motivation occurs. Content theorists
focus on needs of people but process theories identify the variables that go into motivation and their
relationships with one another.
18.8: KEY TERMS
• Motivation: Motivation is the willingness to exert high levels of effort towards
organizational goals, conditioned by the effort and ability to satisfy some individual needs.
• Motive: Motives are directed towards goals, which may be conscious or sub- conscious.
• Valence: It is the strength of an employee’s preference for a particular outcome. A valence
of zero occurs when the individual is indifferent toward the outcome.
• Instrumentality: It is a major input into valence. It refers to the degree to which a first-level
outcome will lead to a desired second-level outcome.
18.9: SELF ASSESSMENT QUESTIONS
• Define motivation? Discuss its importance in an organization.
• What if motivation? Discuss its features.
• Discuss the Maslow theory of motivation.

18.10: REFERENCES
March, James G. and Simon, Herbert A., Organisations, New York, 1958
Maslow, A.H., Motivation and Personality, New York, 1954
Mc Gregor, Douglas, The Human Side of Enterprise, McGraw Hill, New York, 1960
Pinder.C. Work Motivation, Scott., Foresman and Co. Glenview III. 1964
Suri, R.K., and Verma.Sanjiv, Organisational Behavior Text and Cases, Wisdom
Publications, New Delhi
Sudha, G.S., Organisational Behavior, Text, Cases and Problems, Malik &Company,
Jaipur
Mittal, N., and Kumar.N., Organisational Behaviour, Anmol Publications, New Delhi.
Victor H. Vroom, “Work and Motivation”, New York, John Wiley and Inc.,1964.

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 UNIT 19: COMMUNICATION

Structure

19.1 Objectives
19.2 Introduction
19.3 Meaning and Definition of Communication
19.4 Types of Communication
19.5 Media and Communication
19.6 Guidelines for effective communication
19.7 Summary
19.8 Key Terms
19.9 Self Assessment Questions
19.10 References

19.1: OBJECTIVES
After going through this unit, you will be able:
• What is Communication
• Different types of Communication
• Guidelines for effective communication

19.2: INTRODUCTION
Communication is considered to be the most important and most effective ingredient of the
management process. Interpersonal communication is fundamental to all managerial activities. All
other management functions involve communication in some form of directions and feedback.
Effective management is a function of effective communication. Probably the most frequently cited
source of interpersonal conflict is poor communication. Many operations have failed because of
inadequate communication, misunderstood messages and unclear instructions. Even in life, in general,
communication plays a very important role among friends, within the family and in all social circles,
since we spend nearly seventy percent of our waking hours communicating; writing, reading, speaking
and listening. ‘Failure to communicate’ is generally cited as a cause of lost friendships, divorces and

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distances between parents and children. Accordingly, communication plays an important role in all
walks of human life as well as organizational life.

19.3: MEANING AND DEFINITION OF COMUNICATION

Communication is an important principle of organization. It is essential for organizational management.
The word communication has been derived from the Latin word “Communis” which means common.
So it may be said that communication is a process of sharing the ideas in common. It is one of the first
principle of organization. For the successful achievement of organizational objectives communication
and effective communication is very vital. It is an assembly unrelated and unorganized individuals,
materials, machines and tools which makes effective for an organization. It is communication which
gives life to an organizational structure. The communication system works like a moving machine in
which organization is none other than the environment. Broadly speaking it deals with the means or
media of transmitting information from individual to individual or place to place. It may occur within
the organization or outside the organization. The word communication includes interchange of thought,
contribution of ideas, information, a sense of sharing, mode of participation, etc. It not only refers to
sharing of information but also good pieces of understanding. Transmission of information, order and
instructions from the top to bottom of the administrative level, transmission of reports, ideas,
suggestions, complaints from the lower to the higher, communication and cross communication in each
and every step of the organization and maintenance of unity through proper communication channel by
avoiding its gap or confusion are the basic significance of the communication theory.
Definitions
According to Millet, “Communication is the blood stream of an administrative organization and
Communication is the shared understanding of shared purpose.”
According to Pfiffner “Communication is the heart of management”.
According to Chester Bernard “The first executive function is to develop and maintain a system of
communication. Communication is the foundation of the cooperative group activity”.
According to Peter Drucker “Good communication is the foundation for sound administration”. and
“Communication is the ability of the various functional groups within an enterprise to understand each
other and each other’s functions and concerns”.
According to N. Weiner “Communication is the cement that makes an organization”.
According to Keith Davis “Communication is the process of passing information and understanding

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from one person to another”

19.4: TYPES OF COMUNICATION

There are various types of communication such as
(A) Internal communication
(B) External communication
(C) Interpersonal communication
(D) Formal and Informal communication
(E) Verbal or written commutation
The internal communication deals with the relationship of the organization with its employees. It
may be upward, downward and across.
The upward communication travels from sub-ordinates to superiors and continuesof the
organizational hierarchy. It is known as subordinated initiated communication. In this type of
communication the information and procedures are non-directive in nature. It is concerned with the
employee‟s relationship with the management.
The downward communication system is Superior-subordinate communication. According
to Katz and Kahn there are five general purpose of downward communication. They are giving
specific task directing towards job instructions, giving information about the process and practice
of organization, providing information about the rationality ofthe profession, instructing the
subordinates about their performance and providing ideological information to facilitate the
propaganda of organizational goals and objectives. This is a type of communication where the
relationship between the employees and the management is cemented by understanding the work
problems and confiding’ s the directions.
External communication deals with public relations which needs to maintain a harmonious
balance between the organizational process and management.
Interpersonal communication brings a bond relationship among the employees of the
organization.
Formal and Informal: communication official channel and unofficial channel respectively. The
formal communication is systematic and well planned, part of organizational structure based on
formal relationship, goal and task oriented, less personnel, slow and structured, rigid and stable,
few chances of falsification, etc.

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The informal communication is spontaneous and unplanned, based on informal relationship directs
towards goals and need satisfaction of individuals, personal and social, instable and flexible,
unstructured and fast, lack of authencity, many chances of falsification.
Verbal or written communication is the other important types of communication. It may be face
to face discussion, telephonic talks, conferences, interviews, public speeches, etc. Written
communication provides permanent record and can be an evidence.
19.5: MEDIA AND COMMUNICATION

Media plays a great role in communication process. It is possible through numerousmedia

which may be divided into three categories. They are Audio for hearing, Visual for seeing and
Audio-Visual for both hearing and seeing. The conferences, meetings, interviews, telephone calls,
broadcasts, public meetings etc. are audio mediums. Circulars, manuals, reports, bulletins and
hands books are visual mediums. Pictures, telegraphs, photographs, posters, cartoons, flags,
insignia, slights, sound motion picture, television, personal demonstration, etc. are the examples of
audio visual mediums.
In the words of Millet important uses of conference are; to gain awareness of a problem; to help in
problem solving; to gain acceptance and execution of decision; to help promote a sence of unity
among the officials of the organization; help in appraising personnel; to encourage an exchange of
information among administrative personnel.
Difficulties of Communication

There are certain difficulties of communication. They are given as under

Language medium of instruction- The Tyranny of words makes the communication process more
difficult. It is because the words are the vehicles of the communication process. The difference in
words and communication hinders the mutual understanding which creates a great turmoil.
According to Terry „words may be classed as extensional and intentional. The former types of
words denote objects that are definite, namely persons, places, and materials are easily
understood.“In contrast, intentional words do not prefer to something that can be pointed out. They
neither always connote an identical meaning to different persons nor the same meanings to the same
persons at all times.”
Ideological Barriers- Ideological barriers arethe most important difficulties which brings a weak
communication structure and weak communication function. According to Pfiffner “Ideological

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Barriers are the differences in the backgrounds, education, andexpectations result in different social
and political views. These are probably the greatest handicaps to effective communication and
probably the most difficult to overcome”

Absence of motivation or desire to communicate is not un-known.

Some managers do not believe that administration is a cooperative endeavour and a groupeffort;
they do not think it necessary to share their ideas with their subordinates. A common
weakness of a subordinate is to report only that information to the superior as is appetizing to him.
This is a sure way of indulging the boss. Nothing can be worse for the confidence of a boss than
encircled by yes men.
Size and Distance

The fourth barrier of communication is size and distance. The bigger an organization and the larger
the number of its employees, the greater is the difficulty of communication. There also a problem
in hierarchical levels. Information must infiltrate through levels each of which may include empire
builders who consciously modify and sabotage higher authority. The problem of distance arises in
the case of an agency having its field agencies scattered throughout the country. If one takes
example then Postal department is the most vital one.
Absence of definite and recognized means of communication

Channels of communication may be formal and informal. In formal agency the information flows
through hierarchical process. All the notes and flows are in the means of communication.
Everything goes on through proper channel in formal organizations. All such procedures
disseminating and creating consensus of opinion and understandingin the agency, but however
detailed and comprehensive the formal channels, there is a tendency for informal channels to be set-
up. According to Appleby,a good deal of circumvention of formal procedures is essential to make
the transaction of businesspossible. Pfiffner and Presthus said the ability to short-circuit formal
channels is, thus, a necessary and valuable art.
Essentialities of Communication: In the words of Millett, there are sevenfactors to make
the communication effective. They are; it should be clear, consistent, withthe expectation of the
recipient, adequate, timely, uniform and acceptable.
According to Terry, there eight practices to achieve the goal. They are inform yourself fully,

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establish a mutual trust in each other, find a common ground of experience, use mutually known
words, have regard for context, secure and hold the receivers attention, employ examples and visual
aids and practice delaying reactions.
19.6: GUIDELINES FOR EFFECTIVE COMMUNICATION

Effective communication, as we know, is vital for managing the employee at work efficiently.
Without having effective communication plans and policy will not be materialized, even not
implemented and that will lead to the wastage as well as stagnation organizational resources. It is
equally important for securing smooth and coordinated functioning of organization for seeking
objectives. Thus, the managers ought to be familiar with several methods, techniques and guidelines
which are helpful in maximizing his communication abilities and efficiency. In order to make
communication process more effective and responsive, the barriers to effective communication can
be handled by the adaptation of following guidelines:

• To reduce and remove perception barrier the sender of message should attempt to know
background level of knowledge of those with whom he is communicating. When the subject
is not clear, asking questions becomes critical for effective communication.

• Language difference can be handled by explaining meaning of unconventional or technical

terms in the simple language. As far as possible use of ambiguous words or the words having
dual meaning or multiple interpretations should be avoided.

• Emotional reactions can be tackled by accepting them as a part of communicating process.

These should be analysed properly when they create problems. If the subordinates are
talking aggressively, it is necessary for the manager to understand their reaction only then
he may be able to improve the situation. And the manager should also think about his own
moods and must know how they influence others.

• Organizational structure, its rigidity and line of command also create a problem which can
be solved by de-emphasizing authority relation and making more use of informal relations
for communicating messages.

• In modern organization the manager to become good communicator has to learn three
important skills, namely, skills of listening, talking, writing and conducting a meeting.

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 • An atmosphere of mutual trust and goodwill is to be created in organization to make
communication process more effective.

• The channels of communication should be direct, short and straight forward to reduce delay
and distortion in communication.

• Communication system of organization should consist of both formal as well as informal

network.

• There should be at least two-way communication channels as to provide necessary feedback

which is essential for its effectiveness.

• In modern organization it is also found that physical layout of work place also influences
communication pattern. Thus, layout should be designed in such a way so as to facilitate
frequent interaction and to maintain privacy that both contribute to effective communication.

19.7: SUMMARY

Communication is derived from the Latin word communicare, meaning "to share". It is the
purposeful activity and exchange of information between two or more participants in order to
convey or receive the intended meanings through a shared system of signs and semiotic rules. The
term communication has been derived from the Latin word communis which means common.
Therefore, communication is a process of transferring the business information in such a way or
language that should be commonly understandable to all concerned. Effective communication takes
place when the received message is understood in the same sense by the receiver as the sender
intends. Communication is a process which involves participation of a sender with a message and a
receiver, who must understand it and respond to it. The importance of communication in
management can be hardly overemphasized. Managerial functions cannot be carried out without an
efficient system of communication. Communication facilitates planning in a number of ways.
Participation of executives in planning is a precondition for getting the task done. This can be
secured only through interaction and communication. Whereas Conflict arises when a person or
group negatively affects or is about to negatively affect the interests of other persons or groups.

19.8: KEY TERMS

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 • Sender: The person or entity initiating the communication and transmitting the message.
• Receiver: The individual or group for whom the message is intended and who interprets and
decodes the message.
• Message: The information, idea, or content being conveyed from the sender to the receiver.
• Context: The circumstances, environment, or setting in which the communication occurs,
influencing its interpretation.

19.9: SELF ASSESSMENT QUESTIONS

• What do you mean by communication?
• Discuss the meaning, process and channels of communication in details.
• Explain formal communication and differentiate it from informal communication.
• Explain the significance of informal communication in management.
19.10: REFERENCES
Chandan, J. S. 2006. Organizational Behaviour (3rd Ed.). New Delhi: Vikas Publishing House Pvt. Ltd.
Johns, Gary. 1988. Organizational Behaviour: Understanding Life at Work. New York:
Scott Foresman and Company. Mintzberg, Henry. 1973. The Nature of Managerial Work. New York:
Harper & Row. Khanks, S. S. 1999. Organizational Behaviour. New Delhi: S. Chand & Company.
Wren, W. A. 1987. The Evolution of Management Thought. New York:
John Wiley & Sons. Mishra, M. N. 2001. Organizational Behaviour. New Delhi: Vikas Publishing
House Pvt. Ltd.
Singh, Kavita. 2015. Organizational Behaviour: Text and Cases. New Delhi: Vikas Publishing House
Pvt. Ltd.

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 UNIT 20: DECISION MAKING

Structure

20.1 Objectives
20.2 Introduction
20.3 Features of Decision Making
20.4 Types of Decision making
20.5 Process of Decision Making
20.6 Models of Decision Making
20.7 Summary
20.8 Key Terms
20.9 Self Assessment Questions
20.10 References

20.1: OBJECTIVES
After going through this unit, you will be able to know:
• Decision making process in administration
• Different types of decision making
• Various models of decision making

20.2: INTRODUCTION
Decision making is a fundamental cognitive process that individuals, groups, and organizations engage
in daily. It involves selecting a course of action or choosing from among various alternatives to address
a particular situation or problem. Decision making is integral to human behavior and is crucial in both
personal and professional contexts. The process of decision making typically begins with the
identification of a problem or the recognition of an opportunity. Once a decision is deemed necessary,
individuals or groups gather relevant information, generate possible alternatives, and evaluate these
options based on a set of criteria. The ultimate goal is to choose the most appropriate course of action
that aligns with desired outcomes and objectives. Various factors influence the decision-making
process, including cognitive biases, emotions, time constraints, and the complexity of the decision at

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hand. Understanding different models of decision making, such as the rational model, bounded
rationality, and intuitive decision making, provides insights into the diverse ways individuals approach
and navigate the decision-making landscape. Effective decision making is a skill that can be honed and
improved through experience, feedback, and a willingness to learn from both successful and less
successful decisions. In organizational settings, decision making is a critical aspect of leadership and
management, impacting strategic planning, resource allocation, and overall performance. Exploring the
intricacies of decision making offers valuable insights into human behavior, problem-solving strategies,
and the dynamics of organizational functioning. Whether facing routine choices or complex strategic
decisions, the ability to navigate the decision-making process is essential for individuals and groups
seeking optimal outcomes in a wide range of situations.
20.3: FEATURES OF DECISION MAKING
Decision making is a complex cognitive process that involves various features and elements. Here are
some key features of decision making:
1. Problem Identification:
Decision making often begins with the recognition of a problem or the identification of an opportunity
that requires a choice or solution.
2. Goal-Oriented:
Decisions are typically made with the aim of achieving specific goals or objectives. The chosen option
is expected to contribute to the desired outcomes.
3. Alternatives:
Decision making involves considering and evaluating different alternatives or courses of action. This
may include generating options and assessing their feasibility.
4. Information Gathering:
Decision makers seek relevant information to make informed choices. This can involve data collection,
research, and consultation with experts or stakeholders.
5. Evaluation Criteria:
Decision makers use criteria to evaluate the various alternatives. These criteria may include factors
such as cost, benefits, risks, and alignment with organizational values.
6. Trade-offs:
Decision making often involves making trade-offs between competing factors. This requires weighing
the advantages and disadvantages of each alternative.

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 7. Decision Makers:
Decisions can be made by individuals or groups, and the decision-making process may vary depending
on the number of participants and their roles.
8. Rationality vs. Bounded Rationality:
Decision makers may follow a rational decision-making model, aiming to maximize utility, or exhibit
bounded rationality, where cognitive limitations impact the thoroughness of the decision-making
process.
9. Uncertainty and Risk:
Decision making is often conducted in an environment of uncertainty and risk. Decision makers must
consider the likelihood of different outcomes and potential consequences.
10. Time Pressure:
Some decisions need to be made quickly due to time constraints. Time pressure can influence the depth
of analysis and the level of consideration given to alternatives.
11. Implementation:
Once a decision is made, it needs to be implemented. This involves creating a plan, allocating resources,
and putting the chosen course of action into practice.
12. Feedback and Adaptation:
Effective decision making involves monitoring outcomes and receiving feedback. Decision makers
should be willing to adapt and adjust their approach based on the results and changing circumstances.
13. Ethical Considerations:
Ethical considerations play a significant role in decision making. Decisions should align with ethical
standards and principles, and their potential impact on stakeholders should be carefully evaluated.

20.4: TYPES OF DECISION MAKING

Decision making can be categorized into various types based on different criteria, such as the level of
involvement, the degree of structure, or the nature of the decision. Here are some common types of
decision making:
1. Programmed Decision Making:
Routine Decisions: These are repetitive, well-defined decisions that follow established guidelines or
procedures. They are usually made in response to routine situations.
2. Non-programmed Decision Making:

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Non-routine Decisions: These are unique or novel decisions that arise in response to unfamiliar or
exceptional situations. They often require more creative and customized solutions.
3. Individual Decision Making:
Made by a Single Person: Some decisions are made by a single individual without consulting others.
This is common in personal or small-scale decisions.
4. Group Decision Making:
Made by a Group or Team: Involves the collective input and participation of multiple individuals.
Group decision making can lead to diverse perspectives and may be beneficial for complex problems.
5. Autocratic Decision Making:
Made by a Single Authority: A single person, such as a leader or manager, makes decisions without
seeking input from others. This approach is efficient but may lack diverse viewpoints.
6. Democratic Decision Making:
Made by Group Consensus: Involves group members participating in the decision-making process,
often through voting or consensus-building. This approach aims to include various perspectives.
7. Intuitive Decision Making:
Based on Intuition or Gut Feeling: Some decisions are made based on intuition or instinctive feelings
rather than a thorough analysis of information. This is common in situations where time is limited.
8. Analytical Decision Making:
Based on Data and Analysis: Involves a systematic analysis of information, data, and potential
outcomes. Analytical decision making aims to minimize risks and make informed choices.
9. Strategic Decision Making:
Related to Organizational Strategy: High-level decisions that have a significant impact on an
organization's overall direction and long-term goals.
10. Tactical Decision Making:
Operational Decisions: Concerned with day-to-day operations and implementation of strategies.
Tactical decisions are often made by middle-level managers.
11. Crisis Decision Making:
Made in Emergency Situations: Involves making decisions quickly in response to unforeseen and
critical events or crises.
These types of decision making are not mutually exclusive, and a decision-making process may involve
elements of multiple types depending on the context and nature of the decision.

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20.5: PROCESS OF DECISION MAKING
The decision-making process involves several stages, and the exact steps may vary depending on the
context and complexity of the decision. Here is a general framework for the decision-making process:
1. Identification of the Decision:
Recognize that a decision needs to be made. Clearly define the problem or opportunity that requires a
decision.
2. Define Goals and Objectives:
Clearly outline the goals and objectives that the decision aims to achieve. This step helps provide a
clear direction for the decision-making process.
3. Gathering Information:
Collect relevant data and information related to the decision. This may involve research, analysis, and
obtaining input from various sources.
4. Generate Alternatives:
Identify and brainstorm various possible solutions or courses of action. Encourage creativity and
consider a range of options.
5. Evaluate Alternatives:
Assess the pros and cons of each alternative. Consider factors such as feasibility, risks, benefits, and
potential outcomes. This step involves a thorough analysis of the available information.
6. Make the Decision:
Select the best alternative based on the evaluation. Choose the option that aligns most closely with the
defined goals and objectives.
7. Implement the Decision:
Put the chosen decision into action. Develop a plan for implementation, allocate resources, and
communicate the decision to relevant stakeholders.
8. Monitor and Evaluate:
Regularly assess the outcomes and effects of the decision. This step involves monitoring whether the
decision is achieving the desired results and making adjustments as needed.
9. Learn from the Decision:
Reflect on the decision-making process. Consider what worked well and what could be improved. Use
insights gained to inform future decision making.

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It's important to note that decision making is not always a linear process, and individuals or groups may
revisit and adjust previous stages based on new information or changing circumstances. Additionally,
the level of formality and the time frame for decision making can vary depending on the nature of the
decision. Complex decisions may involve more detailed analysis and a longer decision-making
timeline, while routine decisions may be made more quickly with less formal deliberation.

20.6: MODELS OF DECISION MAKING

Several models of decision making have been proposed by researchers and scholars. These models
provide frameworks for understanding and analyzing the decision-making process. Here are some
notable decision-making models:
1. Rational Decision-Making Model:
Assumes that decision makers are rational and will make choices that maximize their utility. This model
involves identifying the problem, generating alternatives, evaluating them, and selecting the best option
based on a thorough analysis of available information.
2. Bounded Rationality Model:
Recognizes that individuals may not have the ability to process all available information or consider all
possible alternatives due to cognitive limitations. Decision makers satisfice (choose a satisfactory
option) rather than optimize (choose the best possible option).
3. Incremental Decision Making:
Suggests that decisions are often made through a series of small, incremental adjustments rather than
through a comprehensive analysis of all alternatives. This model is particularly relevant in situations
where there is a high level of uncertainty.
4. Intuitive Decision-Making Model:
Emphasizes the role of intuition and gut feelings in decision making. This model suggests that
experienced decision makers can make effective decisions based on their intuition, especially in
situations where time is limited.
5. Normative Decision-Making Model:
Prescribes the optimal decision-making process, outlining the steps that individuals should take to make
the best choices. It often involves a systematic analysis of alternatives and the consideration of all
relevant information.

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 6. Descriptive Decision-Making Model:
Describes how decisions are actually made in real-world settings, acknowledging that decision makers
may not always follow a rational or normative approach. This model takes into account factors such as
emotions, cognitive biases, and social influences.
7. Garbage Can Model:
Views decision making as a messy process with unclear preferences, fluid participation, and changing
solutions. Decisions are seen as products of streams of problems, solutions, participants, and choice
opportunities that flow through the organization.
8. Cybernetic Model:
Focuses on feedback loops and adjustments in decision making. It suggests that decision makers
continuously receive feedback on the outcomes of their decisions and make adjustments accordingly.
9. Political Decision-Making Model:
Emphasizes the role of power, conflict, and negotiation in decision making within organizations.
Decisions are viewed as outcomes of political processes where different stakeholders with varying
interests influence the final choice.
10. Prospective Hindsight Model:
Involves looking into the future to anticipate the potential consequences of a decision. This model
encourages decision makers to consider the long-term impact and likelihood of success or failure.

These models offer different perspectives on decision making, and their applicability depends on the
context, the nature of the decision, and the individuals involved in the process. Many decision-making
situations incorporate elements from multiple models.

20.7: SUMMARY
Different decision-making models, such as the rational model, bounded rationality, and intuitive
decision making, provide frameworks for understanding the diverse ways individuals approach
decisions. Decision making is an iterative process that involves implementation, monitoring of
outcomes, and the potential need for adaptation based on feedback. Whether faced with routine choices
or complex strategic decisions, individuals and organizations can enhance their decision-making
capabilities through experience, feedback, and a willingness to learn from both successful and less
successful decisions. Effective decision making is a critical skill that contributes to problem-solving,

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strategic planning, and overall success in various aspects of life and work.

20.8: KEY TERMS

• Decision: The selection of a course of action or choice made after considering different
alternatives.
• Problem Solving: The process of finding solutions to difficulties or challenges, often involving
decision-making skills.
• Alternatives: Different options or choices that are available for consideration in the decision-
making process.
• Criteria: The standards or factors used to evaluate and compare alternatives during the
decision-making process.
• Rationality: The concept of making decisions based on logical reasoning and a systematic
evaluation of alternatives.

20.9: SELF ASSESSMENT QUESTIONS

• What is decision making? Discuss features of decision making.
• Discuss different types of decision making.
• Discuss various models of decision making process.

20.10: REFRENCES
Herbert Alexander Simon (1977). The New Science of Management Decision. Prentice-
Hall. ISBN 978-0136161448.
Frensch, Peter A.; Funke, Joachim, eds. (1995). Complex problem solving: the European perspective.
Hillsdale, NJ: Lawrence Erlbaum Associates. ISBN 978-0805813364
Brockmann, Erich N.; Anthony, William P. (December 2016). "Tacit knowledge and strategic decision
making". Group & Organization Management. 27
Kahneman, Daniel; Tversky, Amos, eds. (2000). Choices, values, and frames. New York; Cambridge,
UK: Russell Sage Foundation; Cambridge University Press. p. 211. ISBN 978-0521621724
Triantaphyllou, Evangelos (2000). Multi-criteria decision making methods: a comparative study.
Applied optimization. Vol. 44. Dordrecht, Netherlands: Kluwer Academic Publishers.

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p. 320. ISBN 978-0792366072.
Klein, Gary (2008). "Naturalistic Decision Making". Human Factors: The Journal of the Human
Factors and Ergonomics Society, ISSN 0018-7208

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