PRINCIPLES AND THEORIES OF PUBLIC MANAGEMENT

(MAPM5014)

MASTER OF URBAN MANAGEMENT (MPM) CFMDS

Instructor: Dr. Desalegn Sherkabu Abadama (Assistant Professor)

OCTOBER 2021
 Anti-Covid 19 Protocol /Safety Precautions
1. Sit only one at a table; distance it a meter from a friend
2. ensure efficient janitorial service
3. ensure cleaning materials and technology and garbage cans are
available,
4. avail masks for trainees with affordable price;
5. distance front row 2 meters from the wall and 1 meter amid
students;
6. prohibit group activities with close contacts;
Anti-Covid 19…cont’d

7. ensure adequate ventilation and that students all wear

masks;
8. classroom doors and windows should remain open
during class;
9. forbidden to touch any teaching material such as LCD;
10. persons assigned to open and close doors should use
gloves;
11. promote peaceful learning.
General Introduction:
Instructor
Name : Dr. Desalegn Sherkabu Abadama (Assistant Profesor of Public Management)
Office location : Block 07, 3rd Floor
Office No.: 323
Consultation : Friday 10:00-12:00 AM
E-mail Contact: desalegnsherkabu08@[Link]
❑Students
Name
Professional Background
Organization
Expectations About Course
Contents:
Ch1. Introduction to Public Management
[Link] of Management
[Link] of Public Administration
[Link] of Management
[Link] of Management
[Link] Public Management
[Link] Effective Management in Public Sector
[Link] issues in the public sector
[Link] Sector Innovation
Objectives:
• Understand public management in terms of three branches of
government.
• Understand regulative/patterns of public sector management in different
countries;
• Apply tools and methods for implementation of programs;
• Apply theories and principles of Public Management in day to day official
administrative environment;
• Mitigate the barriers of innovation in public sector;
• Evaluate the gap between theories of public sector management and its
practices.
 Assessments:
Type Percent Time

20% November 20th (9th Week)

Group assignment: Case Analyses
Presentation
20% November 30th (7th Week)
Individual assignment: Article Review
20% December 10th (8th Week)
Test
40% January 15th , 2022
Final
100%
Total
ENTRY 2020/21 PM. W.E. SECTION GROUP II PRINCIPLES AND
THEORIESOFPUBLIC MANAGEMENT
 ENTRY 2020/21 PM. W.E. SECTION
• Damtewpublic@[Link],
wondafrashsemuni7@[Link],
ketesfaye76@[Link],
mitikubekl5@[Link],
workuzewdie07@[Link],
reward@[Link],
[Link]@[Link],
samuelayalew21@[Link],
shemsutura@[Link],
belaynehmelak20@[Link],
zerihungadisa174@[Link],
bilalhussena@[Link]
 Ch1. Introduction to Public Management
• Management Defined
• Different scholars from different disciplines view and
interpret management from their own angles.
• The economists consider management as a resource like
land, labour, capital and organization.
• The bureaucrats look upon it as a system of authority to
achieve business goals.
• The sociologists consider managers as a part of the
class elite in the society.
11
Ch1. Introduction to Public Management …cont’d

The Seven Habits Model of Management

and Leadership:
1. Be proactive,
2. Begin with the end in mind,
3. Put first things first,
4. Think win-win,
5. Seek first to understand and then to be
understood,
6. Synergize, and
7. Learn from previous experience.
Stephen Covey, Management and leadership
12
author
Ch1. Introduction to Public Management …cont’d

Is a distinct process
''Management

consisting of planning, organizing,

actuating and controlling; utilizing
in each both science and art, and
followed in order to accomplish
pre-determined objectives."
George R Terry (1877 - 1955)
American Professor , 14th president of the Academy
of Management; noted for his early work on
management, and writer of the 1st books, entitled
Principles of Management 13
Ch1. Introduction to Public Management …cont’d

"Management is the art of getting

things done through others and with
formally organized groups.“

Harold Koontz
(1909-1984)

14
Ch1. Introduction to Public Management …cont’d

Management is a multipurpose
organ that manage a business
and manages Managers and
manages Workers and work.

Peter Ferdinand Drucker

(1909 – 2005)

15
Ch1. Introduction to Public Management …cont’d

"Management is the art of knowing

what you want to do and then seeing
that they do it in the best and the
cheapest way."

Frederick Winslow Taylor

(1856 – 1915)

16
Ch1. Introduction to Public Management …cont’d

"Management may be defined as the Pics to be sought

process by means of which the purpose

and objectives of a particular human group
are determined, clarified and effectuated"

Peterson and Plowman

(ND)

17
Ch1. Introduction to Public Management …cont’d

Management is the art of getting

(3 September 1868 – 18
December 1933)

things done through people."

This is commonly quoted to be one among
popular definitions of Management.
Parker Follett
(1868 – 1933)
18
Ch1. Introduction to Public Management …cont’d

❑ An analogous definition of what

management is after Chandan (1997) of
a typical day’s routine of a “typical
Ethiopian House wife.”.

❑ It’s my ever best definition so far of

management.
❑ I used this Ethiopian modelist of the
Ethiopian National Tourism since my
childhood period, Werknesh Abdisa
19
 1. 1.1 What is public Management all
about?
What does Public mean?
What is Public Management ?
Let’s first see the roots of the key terms
❑ “maneggiare” that is handling things, animals (Latin,
manus, a hand)

20
1.1 What is public Management…cont’d

Often to give public a meaning we contrast it with

private
The basic meaning of public is “pertaining to the people”
coming from Latin publicus
A matter of collective concern for a society
Public as open to scrutiny, to public display, transparent

21
What is Public Management ?...cont’d

Public as “non-rivalry” and “nonexcludability”

The simplest meaning of public management could be the
management of a public organization.
Broadly speaking, public management is very often
referred to governmental management, that is the
management of the government (Central, Regional, Local)
or of an agency controlled by the Government.

22
Public Management…cont’d

• Public management, largely focuses on government

and non- for- profit administration
• It contends that private and public management are
somewhat similar
• Therefore, government officials can learn from the
management methods used in the private sector

23
The Role of Government
• Welfare of the public
• Maintaining law and order
• Promote all round development
• Enactment
• Regulation

24
Introduction to Public Management…cont’d

1.2 The significance of studying public management

❑Understand certain concepts and principles
❑Distinguish private and public management
❑Analyze basic techniques in public management
❑Appreciate the key role of ethics
❑Appreciate the significance of public sector management in the
development of Ethiopia

26
Introduction to Public Management…cont’d

1.3 Public and private sectors management

Similarities:
❑Planning
❑Co-operation
❑Co-ordination
❑Authority, etc.

27
Introduction to Public Management…cont’d

Differences
• Motto
• Scale
• Accountability
• Transparency
• Red-tapism
• Flexibility
• Duration
• Incentives
28
Differences…cont’d

❑ Relationship
❑ Bureaucratic
❑ Autonomy
❑ Ethics
❑ Competition
❑ Sustainability
29
 Review Questions

[Link] the role of government in the

development of the nation
[Link] similarities and differences
in public and private sectors
management.
30
References:
Hughes, Owen (2005) Public Management and Administration: An
introduction (3rd edn), Palgrave Macmillan, New York.

Greene, Jeffrey (2005) Public Administration in the new century: A

concise introduction, Wadsworth, Victoria.

31
 [Link] of Management
2.1 Pre-classical contributors
Early Approaches to management
• Ideas about how to mange organizations have been around since
times immemorial.
Examples: Egyptian pyramids and the Great Wall of China
• Mgt as a field of knowledge a recent phenomenon : the early 20
century

32
Pre-classical contributors (middle and late 1800s):

❑ Human Resource Management Pioneer

❑A successful British entrepreneur
❑ Progressive industrialist who recognized
need for good overall management of an
organization’s human resources.
❑He argued that money spent improving
labor was smart investment
Robert Owen (1771-1858)

33
Charles Babbage: Inventor and Management
Scientist
❑ Advocated division of labor and job
specialization.
❑ Promoted time studies to establish
performance standards and rewards for
exceeding standards.
Charles Babbage (1792-1871):

34
[Link] of Management…cont’d

2.2 Classical viewpoint

Classical Approach
Classical Management can be divided into three separate schools:
❑Scientific Management
❑Administrative Approach
❑Bureaucratic approach

35
Scientific Management
Some of the earliest advocates of scientific management were:
• Fredrick Winslow Taylor
• Frank and Lillian Gilbreth
• Henry Gantt

36
Scientific Management…cont’d

❑ Known as “father of scientific

management
❑ Soldiering Problem: An Insight
❑ Workers indulge in soldiering for three
main reasons:
1. Fear of loss of job incase of
increased productivity
2. Faulty wage systems
3. Outdated methods of working
Frederick Winslow Taylor 37
Frederick Winslow Taylor…cont’d

• “The principal object of management should be to

secure the maximum prosperity for the employer,
coupled with the maximum prosperity for each
employee.
• The words "maximum prosperity" are used, in their
broad sense, to mean not only large dividends for the
company or owner, but the development of every
branch of the business to its highest state of excellence,
so that the prosperity may be permanent.”

38
Frederick Winslow Taylor…cont’d

• We can see and feel the waste of material things.

Awkward, inefficient, or ill-directed movements of men,
however, leave nothing visible or tangible behind them
• “What we are all looking for, however, is the ready
made, competent man; the man whom some one else has
trained.
• It is only when we fully realize that our duty, as well as
our opportunity, lies in systematically cooperating to
train and to make this competent man, instead of in
hunting for a man whom some one else has trained, that
we shall be on the road to national efficiency.”
39
Frederick Winslow Taylor…cont’d

• In the past the man has been first; in the future the
system must be first. … developing first-class men; and
• under systematic management the best man rises to
the top more certainly and more rapidly than ever
before.”

40
Frederick Winslow Taylor…cont’d

Major Managerial practices that emerged from Taylor’s

Approach:
• Piece-rate system
• Time-and-motion study

41
Other Proponents of Taylor’s Approach …cont’d

❑ Frank Gilbreth – “Father of motion

study”
❑ Lillian Gilbreth associated with
research pertaining to motion study
❑ Motion study: The way of finding
best sequence and minimum no. of
motions.
- Classification Scheme
- Micro Motion Study
42

Frank and Lillian Gilbreth

 Other Proponents of Taylor’s Approach …cont’d

❑ Henry Gant was a consulting engineer

specializing in control system for shop
scheduling.
❑ He saw the importance of human element
in productivity and introduced the concept
of motivation as used in the industry
today.
❑ He introduced the two new features next
in Taylor’s wage and bonus incentive
schemes.
Henry Gantt (1861-1919) 43
Other Proponents of Taylor’s Approach …cont’d

❑ Task-and-bonus system
• a system of incentive wage payment whereby a
worker receives a guaranteed hourly rate and
• for accomplishing or bettering a set task a bonus
that is a percentage of his hourly rate for the time
allowed for the task.

44
Other Proponents of Taylor’s Approach …cont’d

❑Gantt Chart
• A Gantt chart is a type of bar chart that illustrates
a project schedule, named after its inventor, Henry
Gantt (1861–1919), who designed such a chart around
the years 1910–1915
• The chart provides a graphic representation of the flow
of work required to complete a given task.
• The Chart represents each planned stage of the work,
showing both scheduled times and actual times.
45
Other Proponents of Taylor’s Approach …cont’d

• This Gantt chart is a precursor of modern day

control techniques like Critical Path Technique
(CPM) and the Programme Evaluation and Review
Technique (PERT).
• Modern Gantt charts also show
the dependency relationships between activities and
the current schedule status.
• Look the example on the slide next.
46
47
Other Proponents of Taylor’s Approach …cont’d

• A Gantt chart created using Microsoft

Project (MSP).
• Note (1) the critical path is in red,
• (2) the slack is the black lines connected to non-
critical activities,
• (3) since Saturday and Sunday are not work days
and are thus excluded from the schedule, some
bars on the Gantt chart are longer if they cut
through a weekend. 48
Administrative Approach
❑Focus: coordination of internal activities of
organizations
❑Appeared a continuation of Wdrow Wilson’s
Theory of Public Administration
❑Administration is more about law, control,
accountability, etc.

49
General theory of management
Henry Fayol (1841-1925)

Developed general theory of

management.

50
Business Operations of an Organization
Acc. To Fayol, business operations of an organization could
be divided into 6 activities:
1. Technical – Producing and manufacturing products

2. Commercial - Buying, selling , exchange

3. Financial – Search for optimal use of capital

51
Business Operations of an Organization…cont’d

4. Security Activities - Protecting employees and property

5. Accounting Activities - Recording and taking stock of cost,

profits and liabilities

6. Managerial Activities - Planning, Organizing,

Commanding, Coordinating, Controlling

52
 Principles of management
Principles of management

❑ Division of work ❑ Remuneration

❑ Authority ❑ Centralization
❑ Discipline ❑ Scalar chain
❑ Unity of command ❑ Order
❑ Unity of direction ❑ Equity
❑ Subordination of individual ❑ Stability of tenure
interest ❑ Initiative
❑ Espirit de corps
53
Principles of management…cont’d

• These 14 principles are guidelines for every management

function.

• The manager must act according to these principles of

management; in order to reach the goal and create a
surplus.

• They are universally accepted.

• The guidelines help the managers to do their job
according to their responsibility.
54
These 14 principles:
1. Division of work
• Division of work leads to specialization, and
• Specialization helps to increases efficiency and efficiency
which results in improvements in the productivity and
profitability of the organization.

55
2. Authority
• Authority must be equal to Responsibility.
• There should be a balance between Authority (Power) and
Responsibility (Duties).
• The right to give orders should not be considered without
reference to responsibility.
• If the authority is more than responsibility then chances
are that a manager may misuse it.
• If responsibility is more than authority then he may feel
frustrated.
56
3. Discipline
• Outward mark of respect in accordance with formal or
informal agreements between a firm and its employees.
• It means respect for the rules and regulations of the
organization.
• It may be Self-discipline, or it may be Enforced discipline.
• No slacking or bending of rules, not allowed in any
organization. The works must respect the rules that run the
organization.
• To establish discipline, good supervision and impartial
judgment are needed.
57
4. Unity of Command
• A subordinate (employee) must have and
receive orders from only one superior (boss or
manager).
• A subordinate must report to only one superior.
• It helps in preventing dual subordination.
• This decreases the possibilities of “Dual
subordination” which creates a problem is a
function of managers.
58
5. Unity of Direction/Unity of Direction
• activities aimed at the same objective should be
organized so that there are one plan and one person
in charge.

• These activities that aim at same objective/s must be

directed by one manager, and he must use one plan.

• E.g. all marketing activities such as advertising, sales

promotion, pricing policy, etc., must be directed by
only one manager.
59
6. Subordination of Individual Interests to the General
Interest
• The interest of one individual or one group should not
prevail over the general good.
• The individual interest should be given less importance,
while the general interest should be given the most
importance.
• If not, the organization will collapse.
• The interest of the organizational goal should not be
sabotaged by the interest of an individual or on the group.60
7. Remuneration
• Remuneration is the price for services received. Pay should be
fair to both the employee and the firm.
• If an organization wants efficient employees and best
performance, then it should have a good remuneration policy.
• This policy should give maximum satisfaction to both
employers and employees.
• It should include both financial and non-financial incentives.
• Compensation should be based on a systematic attempt to
reward good performance.
61
8. Centralization
• It depends on the size of the company and the
quality of its managers. In centralization, the
authority is concentrated only in a few hands.
• In decentralization, the authority is distributed to all
the levels of management.
• No organization can be completely centralized or
decentralized.

62
8. Centralization…cont’d

• If there is complete centralization, then the subordinates will have

no authority (power) to carry out their responsibility (duties).
• Similarly, if there is complete decentralization, then the superior
will have no authority to control the organization.
• Therefore, there should be a balance between centralization and
decentralization.
• As for decision of the degree of centralization of the specific
organization, managers should retain final responsibility; but
should give subordinates enough authority to do the tasks
successfully.
63
9. Scalar Chain/Chain of command
• It is the formal line of authority, communication, and responsibility
within an organization.
• It is usually depicted on an organizational chart, which identifies the
superior and subordinate relationships in the organizational
structure.
• This chain implements the unity-of-command principle and allows
the orderly flow of information.
• Under the unity of command principle, the instructions flow
downward along the chain of command and accountability flows
upward. The More clear-cut the chain of command, the more 64

effective the decision-making process and the greater the efficiency.

10. Order
• A place for everything and everything in its place’ the
right man in the right place. There should be an Order
for material/things and people in the organization.
• Order for things is called Material Order and order for
people is called ‘Social Order’. Material Order refers to
“a place for everything and everything in its place.”
• Social Order refers to the selection of the “right man
in the right place”.

65
Order…cont’d

• There must be an orderly placement of the resources

such as Men and Women, Money, Materials, etc.

• Human and material resources must be in the right

place at the right time. Misplacement will lead to
misuse and disorder.

66
11. Equity
• While dealing with the employees a manager should
use kindliness and justice towards employees
equally.
• Equity is a combination of kindness and justice.
• The equity principle suggests that the managers
must be kind as well as equally fair to the
subordinates.
• It creates loyalty and devotion in the employees
toward the organization.
67
12. Stability of Tenure of Personnel
• Although it could take a lot of time, Employees need to
be given fair enough time to settle into their jobs.

• An employee needs time to learn his job and to become

efficient.

• The employees should have job security because

instability leads to inefficiency.

• Successful firms usually had a stable group of employees.

68
13. Initiative
• Without limits of authority and discipline, all levels of
staff should be encouraged to show initiative.
• Management should encourage initiative.
• That is, they should encourage the employees to make
their own plans and to execute these plans.
• This is because an initiative gives satisfaction to the
employees and brings success to the organization.
• It allows the subordinates to think out a plan and do what
it takes to make it happen.
69
14. Esprit De Corps
• Esprit de Corps means “Team Spirit”. Therefore, the
management should create unity, co-operation, and
team-spirit among the employees.

• They should avoid dividing and rule policy. Harmony,

cohesion among personnel. It’s a great source of
strength in the organization. It is a quality in every
successful business.
70
Bureaucratic Approach

Max Weber

71
Bureaucratic Approach…cont’d

❑Bureaucracy derived from German word buro, meaning

office.
❑Observed practice of nepotism and condemned it.
❑Was a German sociologist, historian, jurist, and political
economist,
❑among the most important theorists on the development
of modern Western society

72
Bureaucratic Approach…cont’d

❑Emphasized the need for organizations to function on a

rational basis
❑He was a key proponent of methodological anti-
positivism, arguing for the study of social
action through interpretive (rather than empiricist)
methods,
❑The former works based on understanding the purpose
and meanings that individuals attach to their own actions.
73
Bureaucratic Approach…cont’d

❑ Weber's main intellectual concern was in understanding the

processes of rationalisation, secularisation, and
"disenchantment",
❑He took these to be the result of a new way of thinking
about the world, associating such processes with the rise
of capitalism and modernity.

74
Bureaucratic Approach…cont’d

• Weber would first elaborate his theory in his seminal

work, The Protestant Ethic and the Spirit of
Capitalism (1905),
• where he attributed ascetic Protestantism as one of
the major "elective affinities" involved in the rise
of market-driven capitalism and the rational-
legal nation-state in the Western world.

75
Bureaucratic Approach…cont’d

• Arguing the boosting of capitalism as a basic tenet

of Protestantism, Weber suggested that the spirit of
capitalism is inherent to Protestant religious values.
• Protestant Ethic would form the earliest part in
Weber's broader investigations into world religion,
as he later examined the religions of
China and India, as well as ancient Judaism, with
particular regard to their differing economic
consequences and conditions of social stratification.
76
Bureaucratic Approach…cont’d

• In another major work, "Politics as a Vocation", Weber

defined "the state" as an entity that successfully claims
a "monopoly of the legitimate use of physical
force within a given territory".
• He would also be the first to categorise social authority
into distinct forms: charismatic, traditional, and rational-
legal.
• Among these categories, Weber's analysis
of bureaucracy emphasized that modern state
institutions are increasingly based on the latter (rational-
legal authority).
77
Bureaucratic Approach…cont’d

• His analysis of modernity and rationalisation would

significantly influence the critical theory associated
with the Frankfurt School.
• After the WWI, he was among the founders of the
liberal German Democratic Party.
• He also ran unsuccessfully for a seat in parliament
and served as advisor to the committee that drafted
the ill-fated democratic Weimar Constitution of 1919.
After contracting Spanish flu, he died
of pneumonia in 1920, aged 56.
78
Bureaucratic Approach…cont’d

• In 1897, Weber died two months after a severe

quarrel with his son that was never resolved.
• After this, Weber became increasingly prone to
depression, nervousness and insomnia, making it
difficult for him to fulfill his duties as a professor.
• His condition forced him to reduce his teaching
and eventually leave his course unfinished in the
autumn of 1899.
79
Bureaucratic Approach…cont’d

Theories
• Bureaucratic model (rational-legal model)
• Max Weber's theory of bureaucracy, also known as the "rational-legal"
model, attempts to explain bureaucracy from a rational point of view.[
• Firstly, Weber argued that bureaucracy is "based on the general
principle of precisely defined and organized across-the-board
competencies of the various offices" which are "underpinned by rules,
laws, or administrative regulations."
• In particular, Weber notes three aspects that "constitute the essence of
bureaucratic administration" in the public sector, and "the essence of a
bureaucratic management of a private company" in the private sector:
80
Bureaucratic Approach…cont’d

• As Weber noted, real bureaucracy is less optimal and

effective than his ideal-type model.
• Each of Weber's principles can degenerate, especially when
used to analyze individual levels in an organization.
• However, when implemented in a group setting in an
organization, some form of efficiency and effectiveness can
be achieved, especially with regard to better output.

81
Bureaucratic Approach…cont’d

Characteristics of Bureaucracy
❑A highly structured,
❑formalized and
❑impersonal organization.

82
Characteristics of Weber’s Bureaucracy

❑Work specialization
❑Abstract (Nonrepresentational/Theoretical)rules
and regulations
❑Impersonality of Managers
❑Hierarchy of organization structure
83
Characteristics of Weber’s Bureaucracy…cont’d

❑Bureaucratic Model emphasized on the following

which can also be taken for principles of
Bureacucracy:
➢Qualification (merits), and
➢Discipline.

84
 2.3 Behavioral viewpoint/Neo-classical theory

Mary Parker Follet

85
 Human Relations Approach

Abraham Maslow

86
Human Relations Approach,,,cont’d

Three assumptions:
• Needs are never completely fulfilled

• Through over actions we satisfy our unsatisfied needs

• Hierarchical of needs

87
Maslow’s Hierarchy of Needs

88
Maslow’s Hierarchy of Needs…cont’d

89
90
 BRAINSTORMING

•Do you agree with Maslow’s

Ranking of sex?
•Why and How?
91
 Criticism of Maslows’ Theory
❑Ranking of sex
• The position and value of sex on the pyramid has also been a
source of criticism regarding Maslow's hierarchy.
• Maslow's hierarchy places sex in the needs category along
with food and breathing; it lists sex solely from an
individualistic perspective.
• This placement of sex neglects the emotional, familial,
and evolutionary implications of sex within the
community, although others point out that this is true
of all of the basic needs.
92
Criticism of Maslows’ Theory…cont’d

• The needs may not follow a definite hierarchical order. E.g. ,

even if safety need is not satisfied, the social need may
emerge.
• The need priority model may not apply at all times in all
places.
• The level of motivation may be permanently lower for some
people. E.g. a person suffering from chronic
unemployement may remain satisfied for the rest of his life
if only he get enough food.
93
Maslow’s Hierarchy …cont’d

• Maslow suggested that different needs can be

relatively independent from one end needs to another.
• Once a person has addressed on the physiological
needs, different kinds of needs arise, people are not
motivated them to cover.
• He also said that there is a localized physical basis for
the claim. Physiological

94
• Ranking of sex[edit]
• The position and value of sex on the pyramid has also been a
source of criticism regarding Maslow's hierarchy. Maslow's
hierarchy places sex in the needs category along with food and
breathing; it lists sex solely from an individualistic perspective. For
example, sex is placed with other physiological needs which must
be satisfied before a person considers "higher" levels of
motivation.
95
Maslow’s Hierarchy of Needs…cont’d

❑Maslow's theory is so influential

❑Most later motivational theories are based on Hierarchy of
Needs theory of Abraham Maslow needs system;
❑The following include among a few of them.

96
Maslow’s Hierarchy of Needs…cont’d

2) Douglas McGregor: Theory X and Theory Y.

3) Frederick Herzberg and his Motivator-Hygiene. Theory.
4) Victor Vroom and his Expectancy theory.
5) McClelland's Human Motivation Theory
6) Adair and a fifty-fifty rule:
7) Oldham's work on job enrichment and job enlargement.
97
Theory X and Theory Y

Douglas
McGregor

Challenging Traditional
Assumptions about
Employees

98
Theory X and Theory Y…cont’d

99
Theory X and Theory Y
Theory X:Workers Theory Y: Workers
•Dislike work •View work as natural
•Must be threatened with •Self-directed
punishment
•Exercise self-control
•Avoid responsibilities
•Accept responsibility
•Seek formal direction
•Seek responsibility
•Require security
•Make innovative decisions 100

•Little ambition
Theory X and Theory Y…cont’d

Theory X and Theory Y

• Theory X represents the traditional management and
leadership style in which management and direction is
of the most important moments.

• He argues that people have an inherent dislike of

work and, if possible, they will avoid it.

101
Theory X…cont’d

• He further described in this statement that

“management should struggle with the inherent
human tendency to avoid work.
• Particular approach to management based on
control enforcement and penalties needed to facilitate
organizational goals.
• So people prefer to delegate, but without any
liability.
102
Theory X and Theory Y…cont’d

• He argued that the achievement is a function of rewards

associated with achievement.
• In addition, people have a natural inclination to learn and
accept and seek justice.
• He also believes that creativity is a matter for the entire
organization and must be distributed among the entire
population.
• He claims that the organization does not use all the
intellectual capacity of human beings.
103
Theory X and Theory Y…cont’d

• McGregor (1960) concluded that the approach to

management based on the theory Y can be
• effectively motivating staff to collect.
• However, he conceded that the theory of X is greater
than/suitable for competition in the industry, at least in
circumstances in which it was formulated: the then
modern era.

104
McGregor…cont’d

• Theory Y is to integrate individual and

organizational purposes.
• This proposal is the view that the physical and
mental effort in work naturally.
• Therefore, relying on expert management relations,
such as self-study and self-control.

105
Two-factor motivation theory:

Frederick
Herzberg,
An American Psychologist

106
Two-factor motivation theory …cont’d:

• Based on the definition of motivation, he developed a

motivator-hygiene theory.
• He decided that the factors with positive effect on job
satisfaction and others that lead to stress at work
• antonymic NOT job satisfaction rather than job
satisfaction.
• Managers need to increase enrichment work to
achieve efficient use of human resources.
107
Expectancy Theory of Motivation

Victor Vroom
Professor, motivation theorist,
University of Michigan

108
Expectancy Theory….cont’d

• Victor Vroom (1965) results indicate that the motivation of

rational expectancy.
It offers
• a theory on the assumption that people make choices to
maximize pleasure and minimize pain.
• Meanwhile, he acknowledged that staff will be motivated if
they consider that: Expectation refers to the degree of employee
beliefs about his or her efforts will lead to improved
performance.
109
 Expectancy theory
Individual 1 Individual 2 Organizational
Effort performance Rewards

1. Effort-Performance relationship = Expectancy

2. Performance – Rewards relationship = Instrumentality
3. Reward-personal goals Relationship = valance

Personal Goals
Expectancy Theory….cont’d

• Officer would be justified if he or she believes that

the performance can be achieved.
• This refers to the degree of belief of the worker or
features of works will lead to a certain result as a
reward.
• In the last quarter, valence refers to the value of the
worker sits on the remuneration

111
Expectancy Theory….cont’d

• If the employee appreciates the award, he will be

motivated to efforts to solve a specific problem
targets.
• Employee beliefs about hope, cooperation
and valence of psychological interaction between the
driving forces for creation.
• As a result, the employee acts in a way that brings
pleasure and avoids pain.
112
Expectancy Theory….cont’d

• Effort will lead to better performance.

• Increased productivity will lead to desired rewards,
apparently as wages, promotions, and benefits as
their own pleasure.
• The distinction may be a special need, and probably
enough to cost.
• On the basis of three assumptions mentioned above,
Vroom distinguishes three relevant concept, hope,
cooperation and valence. 113
Factors that Affect Expectancy:

• Availability of the right kind of resources

• Like time, raw materials, etc.
• The skills and knowledge of the employees.
• Support from the top management to get jobs done
in terms of right information and support from the
supervisors.
Advantages of the Expectancy Theory
• It is based on self-interest individual who want to
achieve maximum satisfaction and who wants to
minimize dissatisfaction.
• This theory stresses upon the expectations and
perception; what is real and actual is immaterial.
• It emphasizes on rewards or pay-offs.
• It focuses on psychological extravagance where
final objective of individual is to attain maximum
pleasure and least pain 115
Limitations of the Expectancy Theory
• The expectancy theory seems to be idealistic because
quite a few individuals perceive high degree
correlation between performance and rewards.
• The application of this theory is limited as reward is
not directly correlated with performance in many
organizations. It is related to other parameters also
such as position, effort, responsibility, education, etc.

116
 Implications of the Expectancy Theory
• The managers can correlate the preferred outcomes to the aimed
performance levels.
• The managers must ensure that the employees can achieve the aimed
performance levels.
• The deserving employees must be rewarded for their exceptional
performance.
• The reward system must be fair and just in an organization.
• Organizations must design interesting, dynamic and challenging jobs.
• The employee’s motivation level should be continually assessed t
hrough various techniques such as questionnaire, personal
interviews, etc.
117
A Fifty-Fifty Rule Motivation Theory:

John Adair
British academic who is
a leadership theorist and
author of more than forty
books (translated into
eighteen languages) on
business, military and other 118

leadership
A fifty-fifty rule Motivation…cont’d

• “Pareto Principle” can be understood in different

ways.
• One interpretation shows that “80% of your really
productive and creative work will be carried out in
20% of their time” (cited in: Adair, 2006).
• He based on it, developed fifty-fifty rule motivation
to formulate.
• He established that fifty percent of motivation living
INSIDE a person, and the other fifty percent are OUT.
119
Adair and a fifty-fifty rule…cont’d

• Adairs’ rule spread the responsibility of

motivation to followers and leaders.
• Fifty-fifty rule leads us to back to earth, to reality.
• This can be regarde an invitation to managers and
leaders to take their task was playing his role d as in
the motivation for criticizing the quality of its
staff work.

120
[Link] of Management…cont’d

❑Emphasis on Human Element

❑Focus on Group Influences
• Human Element
• Groups
• Power Sharing

121
Hawthorne Experiment

Elton Mayo
Focus on Human Relations

122
Hawthorne Experiment…cont’d

Four phases:
❑Illumination Experiments 1924-27
➢the effects of changes in illumination on productivity
❑Relay Assembly Test Room Experiment 1927-28
➢effects of changes in hours and other working conditions on
productivity
❑Interview Phase 1928-30
➢plant-wide interviews to determine worker attitudes and sentiments
❑Bank wiring observation room experiment 1931-32
➢Determination and analysis of social organisation at work
123
Hawthorne Experiment…cont’d

Contributions of the Experiment

Prejudgments
❑Job performance depends on the individual worker
❑Fatigue is the main factor affecting output
❑Management sets production standards

124
Hawthorne Experiment…cont’d

Elton Mayo

An Australian born
psychologist,
industrial researcher, and
organizational theorist;

Human Relationist and founder of

Organizational Behavior School
125
Human Relationist…cont’d

• Mayo's team visiting the Hawthorne plant in Cicero,

Illinois carried out a number of "experiments" to look
at ways of improving productivity.
• The research involved manipulating length of rest
and lunch periods and piecework payment plans.
• productivity partly depended on the informal social
patterns of interaction in the work group

126
Human Relationist…cont’d

• people's work performance is dependent on both

social relationships and job content.
• He suggested a tension between workers' "logic of
sentiment" and managers' "logic of cost and
efficiency" which could lead to conflict within
organizations.

127
Hawthorne Experiment…cont’d

Major Findings
❑The group is the key factor in job performance
❑Perceived meaning and importance of the work determine
output
❑Workplace culture sets its own production standard

128
Implication of Mayo Theory:
❑In early 1930, the theorist Elton Mayo’s proposed motivation
by his work and contributed such factors as:
• More communication
• Good team work
• To show interest in others
• Work with others in the decision-making process
• Work for the welfare of others
• Provide job interesting and disposable.
129
2.4 Quantitative management viewpoint

POSDCORB
Gulick (1892–1993)
A political scientist; served on the three
member Committee on Administrative
Managemen ;in 1937 appointed by
President Franklin D. Roosevelt to
reorganize the executive branch of the
federal government 130
[Link] of Management…cont’d

Quantitative management
❑Emerged during World War II
❑Application Includes:
➢Application of statistics
➢Optimization models
➢Information Models
➢Computer Simulations

131
Branches of quantitative approach:
❑Management Science
❑Operations Management
❑Management Information System

132
Branches of quantitative approach…cont’d

Management Science
❑Need for management science???
❑Areas of usage:
• Capital Budgeting and cash flow management
• Production Scheduling
• Development of product strategies
• Planning for human resource development programs
• Maintenance of optimal inventory levels
• Aircraft Scheduling
133
Branches of quantitative approach…cont’d

❑ Operations Management:
• Applied form of management science.
❑ Concerned with:
➢ Inventory Management
➢ Work Scheduling
➢ Production Planning
➢ Facilities, location and design
➢ Quality assurance
134
Branches of quantitative approach…cont’d

Management Information System

❑Focus:
• Designing and implementing computer based information
system

135
[Link] of Management…cont’d

2.5 Contemporary viewpoint

i. Systems Theory
[Link] theory

136
 Systems Views/Systems Theory
Karl Ludwig von Bertalanffy
(1901 – 1972)
❑ an Austrian biologist
known as one of the founders of ne of
the principal authors of the
interdisciplinary school of thought
known as General Systems Theory (GST)
❑ Occupies an important position in the
intellectual history of the twentieth
century. Followed by Kenneth E.
Boulding, William Ross
Ashby and Anatol Rapoport working
in mathematics, psychology, biology,
137

game theory, and social network

Systems Views…cont’d

• This theory is the interdisciplinary study of systems.

• A system is a cohesive group of interrelated and
interdependent parts which can be natural or human-made.
• Every system is bounded by space and time, influenced by
its environment, defined by its structure and purpose, and
expressed through its functioning.
• A system may be more than the sum of its parts if it
expresses synergy or emergent behavior.

138
Key Systems concepts
• System: An entity made up of interrelated,
interdependent parts.
• Boundaries: Barriers that define a system and
distinguish it from other systems in an environment.
• Homeostasis: The tendency of a system to be resilient
with respect to external disruption and to maintain its
key characteristics.
• Adaptation: The tendency of a system to make the
internal changes to protect itself and keep fulfilling its
purpose.
139
Key Systems concepts…cont’d

• Reciprocal transactions: Circular or cyclical

interactions that systems engage in such that they
influence one another.
• Feedback loop: The process by which systems self-
correct based on reactions from other systems in the
environment.
• Throughput: Rate of energy transfer between a
system and its environment over time.
• Microsystem: The system closest to the client. 140
Key Systems concepts…cont’d

• Mesosystem: Relationships among systems in an

environment.
• Exosystem: A relationship between two systems that
has an indirect effect on a third system.
• Macrosystem: A larger system that influences
clients, such as policies, administration of
entitlement programs, and culture.
• Chronosystem: A system composed of significant
life events affecting adaptation. 141
Systems Views…cont’d

❑Examples of social system theories include:

➢Control theory by James Clerk Maxwell
➢Action theory by Parson ,and
➢Social systems theory by Luhmann

142
Systems Views…cont’d

• Systems theory is manifest in the work of

practitioners in many disciplines, for example”
• the works of biologist Ludwig von Bertalanffy,
• linguist Béla H. Bánáthy,
• sociologist Talcott Parsons, and
• in the study of ecological systems by Howard T.
Odum, Eugene Odum and is Fritjof Capra's study
of organizational theory, and
143
Systems Views…cont’d

• in the study of management by Peter Senge,

• in interdisciplinary areas such as Human Resource
Development in the works of Richard A. Swanson,
and in
• the works of educators Debora Hammond and
Alfonso Montuori.

144
Systems Views…cont’d

• As a transdisciplinary, interdisciplinary,
and multiperspectival endeavor, systems theory brings
together principles and concepts from:
• ontology, the philosophy of science, physics, computer
science, biology and engineering as well
as geography, sociology, political
science, psychotherapy (especially family systems
therapy), and economics.
• Systems theory promotes dialogue between
autonomous areas of study as well as within systems
science itself.
145
Systems Views…cont’d

❑Others remain closer to the direct systems concepts

developed by the original theorists:
❑For example, Ilya Prigogine, of the Center for
Complex Quantum Systems
❑at the University of Texas, Austin, has
studied emergent properties, suggesting that they
offer analogues for living systems.

146
Systems Views…cont’d

• Important names in contemporary systems science

include Russell Ackoff, Ruzena Bajcsy, Béla H.
Bánáthy, Gregory Bateson, Anthony Stafford
Beer, Peter Checkland, Barbara Grosz, Brian
Wilson, Robert L. Flood, Allenna Leonard, Radhika
Nagpal, Fritjof Capra, Warren McCulloch, Kathleen
Carley, Michael C. Jackson, Katia Sycara, and Edgar
Morin
147
Systems Views…cont’d

• Von Bertalanffy opened up something much broader

and of much greater significance than a single
theory: he created a new paradigm for the
development of theories.
• Systems theory became a widespread term used for
instance to describe the interdependence of
relationships created in organizations.

148
Systems Views…cont’d

• A system in this frame of reference can contain

regularly interacting or interrelating groups of
activities.
• Some theorists recognize that organizations have
complex social systems; separating the parts from
the whole reduces the overall effectiveness of
organizations.

149
Systems Views…cont’d

• The systems view is a world-view that is based on the

discipline of SYSTEM INQUIRY. Central to systems
inquiry is the concept of SYSTEM.
• In the most general sense, system means a
configuration of parts connected and joined together by
a web of relationships.
• The Primer Group defines system as a family of
relationships among the members acting as a whole. Von
Bertalanffy defined system as "elements in standing
relationship."
150
Systems Views…cont’d

• The contemporary work of Peter Senge provides

detailed discussion of the commonplace critique of
educational systems grounded in conventional
assumptions about learning, including:
• the problems with fragmented knowledge and lack
of holistic learning from the "machine-age thinking"
that became a "model of school separated from daily
life
151
Systems Views…cont’d

The goals of systems theory:

• It aims at modeling a system's
dynamics, constraints, conditions, and to elucidate
principles (such as purpose, measure, methods,
tools) that can be discerned and applied to other
systems at every level of nesting, and in a wide
range of fields for achieving optimized equifinality.

152
Systems Views…cont’d

• GST is about developing broadly applicable concepts

and principles, as opposed to concepts and principles
specific to one domain of knowledge.
• It distinguishes dynamic or active systems from
static or passive systems.
• Active systems are activity structures or components
that interact in behaviours and processes.
153
Systems Views…cont’d

• Passive systems are structures and components that

are being processed. E.g. a program is passive when it
is a disc file and active when it runs in memory.
❑Sees the “big picture” in organizations
❑Stresses external environment influences
❑How the parts relate to each other to create the
whole
❑How to link units together harmoniously so that an
efficient system emerges (integration)
154
Systems Views…cont’d

❑ Systems psychology and Systems thinking

• Systems psychology is a branch of psychology that
studies human behaviour and experience in complex
systems.
• It received inspiration from systems theory and
systems thinking, as well as the basics of theoretical
work from Roger Barker, Gregory Bateson, Humberto
Maturana and others.
155
Systems Views…cont’d

• In systems psychology, "characteristics

of organizational behaviour, for example individual
needs, rewards, expectations, and attributes of the
people interacting with the systems, considers this
process in order to create an effective system".
• Systems thinking is the ability or skill to perform
problem solving in complex system.

156
Systems Views…cont’d

• System theory or systems science is an

interdisciplinary study of systems in which System
Thinking can be learned.
• A system is an entity with interrelated and
interdependent parts; it is defined by its boundaries
and it is more than the sum of its parts (subsystem).

157
Systems Views…cont’d

Systems thinking in a User-centered design process

❑Systems thinking is a crucial important part of
a User-centered design process and necessary to
understand the whole impact of a
new HCI Information System.
❑Overlooking this and developing software without
insights input from the future users is a serious
design Flaws.
158
Systems Views…cont’d

• These Flaws can, for example, lead to complete

failure of Information Systems, increased stress and
mental illness for users of Information Systems
leading to increased costs and a huge waste of
resources.
• IEEE estimates that roughly 15% of the estimated 1
trillion dollars used to develop Information Systems
every year is completely wasted and the produced
systems are discarded before implementation by
entirely preventable mistakes 159
Conclusion:
❑Changing one part of the system affects other parts and
the whole system, with predictable patterns of behavior.
• It may be possible to predict these changes in
patterns of behavior.
• For systems that learn and adapt, success
depend upon how well the system is engaged with
its environment.
• Some systems support other systems,
maintaining the other system to prevent failure.
160
Systems Views…cont’d

❑This system approach gives manager a new way of looking

at an organization as a whole and as a part of the larger,
external environment

❑Two types of systems:

• Open System- which interacts with its environment
• Closed System – which does not interact with its
environment
161
162
Systems Views…cont’d

❑So, are you for open or closed

system?
❑Why? Explain!

163
Contingency theory
• Also known as situational theory.
• Developed by managers, consultants and researchers who
tried to apply the concepts of the major schools of
management thought to real life situation.
• Ohio State University administered extensive questionnaires
measuring a range of possible leader behaviors in various
organizational contexts.

164
Contingency theory…cont’d

• Two types of behaviors proved to be especially typical of

effective leaders:
(1) consideration leader behaviors that include building good
rapport and interpersonal relationships and showing support
and concern for subordinates and
(2) initiating structure leader behaviors that provided
structure (e.g., role assignment, planning, scheduling) to
ensure task completion and goal attainment.
165
Contingency theory…cont’d

• According to this theory, there is no one best way manage

all situations
• The optimal course of action is contingent (dependent)
upon the internal and external situation.
• Contingent leaders are flexible in choosing and adapting to
succinct strategies to suit change in situation at a particular
period in time in the running of the organization.

166
Contingency theory…cont’d

• About the same time, investigators from the

University of Michigan distributed questionnaires in
organizations and collected measures of group
productivity to assess effective leadership
behaviors.
• The leadership behavior categories that emerged
from the University of Chicago were similar to the
consideration and initiating structure behaviors
identified by the Ohio State studies.
167
Contingency theory…cont’d

• However, these leadership behaviors were named

relation-oriented behavior and task-oriented
behavior.
• This research was later extended by Robert Blake
and Jane Mouton in 1964 to suggest that effective
leaders score high on both these behaviors.

168
Contingency theory…cont’d

• They suggested that previous theories such

as Weber's bureaucracy and Taylor's scientific
management had failed.
• This is because they neglected that management
style and organizational structure were influenced by
various aspects of the environment: the contingency
factors.
• There could not be "one best way" for leadership of
all organizations.
169
Contingency theory…cont’d

Contingency approaches
• Fiedler (1993), described how two main factors contribute to
effective or successful leadership and points them out as
(1) “the personality of the leader and
(2) the degree to which the situation gives the leader power,
control and influence over the situation”
• Leadership personality can be broken up into two main
motivation schools of thought for leaders: task motivated or
relationship motivated
170
Contingency theory…cont’d

• The way that Fiedler suggests individuals determine

their motivation preference is through the Least
Preferred Co-Worker Score or LPC.
• The second aspect that Fielder says determines
success is the specific situation and the degree to
which the leader feels in control of the outcome of
their actions.

171
Contingency theory…cont’d

• Fred Fiedler's contingency model developed a metric

to measure a leader's style called the Least Preferred
Co-worker.
• The test consists of 16-22 items they are to rate on a
scale of one to eight as they think of a co-worker they
had the most difficulty working with.
• A high score indicates that the test taker is relational
in style and a low score indicates the test taker is more
task orientated in style.
172
Contingency theory…cont’d

• Situational favorable-ness was described by Fiedler in terms of three

empirically derived dimensions:

❑Leader-member relationship – high if the leader is generally accepted

and respected by followers
❑Degree of task structure – high if the task is very structured
❑Leader's position power – high if a great deal of authority and power
are formally attributed to the leader's position

• Situations are favorable to the leader if all three of these dimensions

are high.
173
Contingency theory…cont’d

How to apply Fiedler’s Contingency Model:

❑Understand your leadership style - this information can be obtained
by completing a Least-Preferred Co-Worker Scale. Low LPC
indicates a task-oriented leader and high LPC indicates a
relationship-oriented leader

• Understand your situation - you have to describe your situation

using the empirically derived dimensions

• Decide which leadership style is best - this is mostly determined by

which characteristics of a certain situation are low, unstructured, or
poor, so the best fit leader can come in and make that
characteristic better in that circumstance
174
Review
• Authority vs responsibility
• Scalar chain
• Centralization
• Unity of command vs unity of direction
• Systems view as the input-through-put –output –Feedback process;
• Permeable systems vs closed system
• What should be the role of the manager in Mc Gregors’ Theory X and
Y?
• Approaching your article review assignment Skillfully
175
[Link] of Public Administration

3.1 Traditional Public Administration

• Public Administration is what government does.
• Woodrow Wilson: Politics/Administration dichotomy, 1886.
• William F. Willoughby: Public administration had universal aspects that were
applicable to all branches of government, 1918.
• Leonard D. White: Administration is a unitary process that can be studied
uniformly, at the federal, state, and local levels; The basis for study is
management, not law; 1926.

176
Traditional Public Administration
◼ Henri Fayol: ◼ Principles of management
◼ Gulick And Urwick: ◼ “POSDCORB”

◼ Elton Mayo: ◼ Human relations movement

◼ Douglas Mcgregor: ◼ Theory X and

◼ Frederick Taylor : ◼ Scientific management

◼ Max Webber: ◼ Bureaucracy

◼ Herbert Simon: ◼ Decision making

177
[Link] of Public Administration…cont’d

3.2 New Public Administration

❑In the early 1990's, a new managerial approach to public
administration began to take hold
❑It seeks to improve public sector performance
❑It shifts the emphasis from traditional public administration to
public management, pushing the state towards ‘managerialism’
❑The traditional public service delivery, based on the principles of
bureaucratic hierarchy, centralization and direct control is replaced
by a market-based public service management.
178
[Link] of Public Administration…cont’d

the context in which change taking place...

• Globalization
• Budgetary deficit
• Information technology revolution
• Providing high-quality services that citizens value
• Adoption of private sector concepts of customer service
• Increasing the autonomy of public managers
179
New Public Management (NPM)…Cont’d

• Focus on outcomes not process

• Aims at reducing the costs,
• Measuring and rewarding individuals on whether they meet
performance targets
• The organizations would be expected to develop flatter
internal structures (i.e. fewer layers)
• Devolve operational authority to front-line managers

180
New Public Management (NPM)…Cont’d

• With a downsized number of staff, many services

would be ‘contracted out’
• Government should collaborate with other
government and the nonprofit and private sectors to
achieve social goals
• An institutional separation of public demand
functions, public provision and public service
production functions.
• NPM is “results oriented", "customers focused",
181
 NPM Vs. TPM
TPM NPM
Prudence, stability, Entrepreneurship, flexibility,
Values: probity, accountability, creativity

Risk Tolerance: Risk averse Risk taking

Accountability: Process accountability Accountability by result

Hierarchical, Decentralized, partnerships,

Structure: centralized contracts
182
New Public Management: Criticism
❑Promising too much to its impracticability and anti-
democratic
❑Treating "citizens" as "customers“
❑People are viewed as economic units, not as democratic
participants.
❑In fact, NPM’s overriding interest is managerial flexibility
and cost efficiency without concern for fairness, equity,
transparency and accountability
183
Criticism…cont’d

❑The NPM’s failures have been documented in two European

countries of Switzerland and Netherlands.
❑In both cases, Legislators have voted against NPM’s
application in local government administration, and a key
overriding concern in both countries has been expressed
regarding the loss of democratic control, accountability, and
fairness, as well as lack of promised efficiency.

184
Reinventing Government Movement
❑Bureaucratic model was developed in conditions very different from
those existing in the 21st Century.
❑It developed in a slower-paced society, when change carry on at a
leisurely manner.
❑It developed in an age of hierarchy, when only those at the top of the
pyramid had enough information to make informed decisions.
❑It developed in a time of mass markets, when most people had
similar wants and needs.

185
Reinventing Government Movement…cont’d

❑Today’s environment demands institutions that are extremely

flexible and adaptable
❑It demands institutions that deliver high quality goods and
services
❑It demands institutions that are responsive to their customers
❑Offering choices of non-standardized services;
➢That lead by persuasion and incentives rather than commands
➢That give their employees a sense of meaning and control
186
Reinventing Government Movement…cont’d

Reinventing Government Movement

1. Catalytic Government: Steering Rather Than Rowing.
2. Community Owned Government: Empowering Rather
Than Serving.
3. Competitive Government: Injecting Competition Into
Service Delivery.
4. Mission-driven Government: Transforming Rule-driven
Organizations
5. Results-oriented Government: Funding Outcomes, Not
Inputs. 187
Reinventing Government Movement…cont’d

6. Customer-driven Government: Meeting The Needs of The

Customer, Not The Bureaucracy.
7. Enterprising Government: Earning Rather Than Spending.
8. Anticipatory Government: Prevention Rather Than Cure.
9. Decentralized Government: From Hierarchy to
Participation and Teamwork.
10. Market-oriented Government: Leveraging Change
Through The Market.
188
 Review Questions

1) Explain the evolution of traditional public

management
2) Explain New Public Management (NPM)
3) Elaborate the reinventing government movement
4) Describe new public service model
189
 References
❖Greene, Jeffrey (2005) Public Administration in the new century: A
concise introduction, Wadsworth,Victoria
❖Hood, C. (1991), A Public Management for All Seasons?, Public
Administration 69, pp. 3-19.
❖Hughes, Owen (2005) Public Management and Administration: An
introduction (3rd edn), Palgrave Macmillan, New York
❖Osborne D, Gaebler T. (1992). Reinventing Government. Reading, MA:
Addison- Wesley. 405 pp.
❖ollitt, C. (1990), Managerialism and the public services: the Anglo-
American experience. Oxford: Blackwell.

190
Appendix: Characteristics of the NPM
Budget Cuts Vouchers Accountability Performance
for Auditing
Performance

Privatization Customer Concept Decentralization Strategic

(One-Stop-Shops, Planning/
Case management) Management

Separation of Provision and Production Competition Performance Changed

Measurement Management
Style

Contracting Out Freedom to Manage Improved Accounting Personnel

(Flexibility) Management
(Incentives)

User Charges Separation of Improved More Use of

Politics and Financial Information
Administration Management Technology
191
 [Link] Public Management
6.1 Introduction
• Compare two or more public managements
• The emergence of CPA as a field is linked to the process of
decolonization and the expansion of nation-states
• CPA in its origins attempt to help develop the
administrative practice of developing nations
• CPA was a “cold war” strategy to contain communism

192
CPA …cont’d

• CPA as a field became somewhat irrelevant after financial

support dried out because it could not established itself
• CPA shifted from the development practice into academic
debate
• Changes around the world (foreign debt, neoliberalism,
etc.) offered a great opportunity for the revival of the field

193
Significance of comparison

Helps to improve
• Reliability and applicability of public management
knowledge.
• Management
• Economy
• living standard
• Organizational structures
194
Significance…cont’d

• Woodrow Wilson, and other pioneers, drew upon the

European experience to get a perspective on the US model
• Britain "borrowed" the idea of the ombudsman from
Scandinavia--there was no precedent for it in the British
tradition But it seemed to work.

195
Objectives of CPA
• To formulate general principles and concepts by studying
specific administrative problems and systems
• To present far reaching analysis of different: Cultures,
Nations, Systems
• To extend the scope of modern public administration
• To find out the causes of their success and failures by
locating comparative circumstances of diverse
administrative forms and systems
• To point out the necessity of administrative improvement 196
Scope of CPA

• Macro level studies

• Middle level studies

• Micro level studies

197
Approaches to the Study of CPA
❑Structural Functional Approach (Dwight Waldo)
• Exposition is that there is a structure of every administrative
system
• By the structure and its organs various functions are
performed
• The comparative study and analysis of the these structures
performing diverse functions is the principal aim
• According to this approach PA is Like a scooter or a motor car
• All these parts perform their functions with coordination and
interdependence
198
Approaches to the Study of CPA

• Ecological Approach ([Link])

• All plants can not grow in all climates
• Public administration is affected by ecology of the
country
• The ecology of the country has to be taken into view

199
Approaches to the Study of CPA

• Behavioral Approach (Herbert Simon)

• Study should be made upon behavior
• Employees working in an organization harbors: feelings
and aspirations
• Behavior is affected by psychological conditions
• Individual and social conditions mould behavior

200
Variables used for comparison
• CPA is the comparative study of institutions, process, and
behaviors in many contexts
• Context (or environment in comparative analysis generally
refers to all external influences that affect
management,such as:
• Political system
• Culture
• Economy
201
Variables used for comparison
INSTITUTIONS
• Branches of government
• Bureaucracies
• Political Parties
PROCESSES
• Policy making
• Agenda setting
• Decision Making
BEHAVIORS
• Self-interested behavior (rent-seeking)
• Socially motivated behavior 202
Variables used for comparison
POLITICAL SYSTEM
• Democratic regime
• Authoritarian regime
CULTURE
• Traditional
• Modern
ECONOMY
• Market driven
• Planned
• Mixed
203
THE ECOLOGICAL MODEL

INSTITUTIONS
PROCESSES
BEHAVIORS

POLITICS
CULTURE

204
Comparative Public Management

• In sum, CPA cannot be disentangle from politics

• Politics is a key intervening variable
• Thus, cross comparison of different political structure
become essential to advance the knowledge and practice
of PM
• Do public administrators behavior vary under different
political systems with the same level of development ?
Example: India vs. China
205
Questions

Discuss the comparative public management.

What is the significance of comparison?
Describe problems of comparison?
Explain variables used for comparison.

206
References
❖ Greene, Jeffrey (2005) Public Administration in the new century: A concise introduction,
Wadsworth,Victoria.
❖ Heady, Ferrel (2001) Public Administration: A comparative Perspective (6th edn), Taylor &
Francis Group, Pennsylvania.
❖ Hughes, Owen (2005) Public Management and Administration: An introduction (3rd edn),
Palgrave Macmillan, New York.
❖ Peters, Guy (2004) Politicization of the Civil Service in Comparative Perspective: The
Quest for Control, Routledge, London.

207
Ecology and Administration
• Ecology in simple words relates to 'Environment‘
• And this environment includes physical, social and cultural aspects
• The ecological approach to Public Administration was first
propagated popularly by Fred W. Riggs who studied administrative
systems in different countries
• In his ecological studies, Riggs gave the concept of structural
functional approach as a means to study the environment and
administration relation
• According to this approach, every society has various structures
that perform specific functions like political, economic, social,
symbolic and communicational functions in the society 208
[Link] of Management
4.1 Power and Authority
• Authority is the right given to a manager to achieve the
objectives of the organization.
• It is (1) a right to get the things done through others; (2) a
right to take decisions; and (3) a right to give orders to the
subordinates and to get obedience from them.
• A manager cannot do his work without authority.

209
Power and Authority…cont’d

• A manager gets his authority from his position or post. He

gets his authority from the higher authorities.
• Likewise, the lower and middle-level managers get their
authority from the top-level managers. The top-level
managers get their authority from the shareholders.
• Authority always flows downwards. It is delegated from
the top to the bottom.

210
Power and Authority…cont’d

• Power is a broader concept than authority. It is the ability

of a person or a group to influence the beliefs and actions
of other people. It is the ability to influence events.
• It can be personal Power.
• A person gets his personal power from his personality or
from his expert knowledge.
• For example, Doctors, Lawyers, Engineers, Programmers,
etc. get their power from their expertise and professional
knowledge.
211
Power and Authority…cont’d

• Power can also be legitimate or official power. This power

comes from a higher authority.
• In management, authority differs from power in the
following SIX ways:-

1. Nature
2. Flow
3. Legitimacy
212
Power and Authority…cont’d

1. Organizational chart
2. Level of Management
3. Legitimcy
4. Position and person

1. Nature: While Authority is the formal right given to a

manager to make decisions or to command; Power is the
personal ability to influence others or events.
213
Power and Authority…cont’d

2. Flow:
• Authority flows downwards in the organization because it
is delegated by the superiors to the subordinates.

• Power can flow in any direction. Even subordinates have

power over their superiors, if they can influence their
behavior. So power can flow upwards, downwards or
horizontally.

214
Power and Authority…cont’d

3. Organizational Charts
• Authority relationships (superior-subordinate
relationships) can be shown in the organization charts.
• Power relationships cannot be shown in organization
charts.
QUESTION:
• Which specific administrative management principle of Henry
Fayol are we discussing now?

215
Power and Authority…cont’d

4. Level of Management
• Authority is given to a position or post.
• The manager gets the authority only when he holds that
position.
• Authority depends on the level of management.
• Thus, the Higher the level of management, the higher will
be the authority and vice-versa.

216
Power and Authority…cont’d

• Power resides (lives) in the person who uses it.

• It does not depend on the level of management. It can exist
at any level of management.
• Even a lower-level manager or a worker can have power to
influence the behavior of a top-level manager.

217
Authority and Power …cont’d

QUESTION:
• So, will you choose to remain less powerful or want to strive
for more power in your organization?
• Why and how?
• Why do you think is that?
• Do you think you can reverse that reality?

218
Authority and Power …cont’d

5. Legitimacy
• Authority is always official in nature. So it is legitimate.
• Power need not be official in nature. So it need not be
legitimate.
6. Position and Person
• Authority is given to a position or post. The manager gets
the authority only when he holds that position.
• Power resides (lives) in the person who uses it.

219
[Link] of Management …cont’d

4.2 Efficiency and Effectiveness

• Management terms: Efficiency and Effectiveness
• Peter Drucker has argued that "performance can be
measured in terms of two concepts viz., efficiency and
effectiveness“
• His “The Practice of Management” Book has been popular
and after his quotes next.

220
ON Efficiency and Effectiveness

221
4.2 Efficiency and Effectiveness…cont’d

• Effective: producing the intended or expected result Efficient

Performing or functioning in the best possible manner with
the least waste of time and effort.
• Efficiency: "doing things right" and effectiveness means
"doing the right things“
Illustration: The Case of three young boys on their car Wash
duties
Suppose that two young boys, Sisai and Dawit, are trying to
change a tire on their cars (each one doing it for you the
owner): 222
Efficiency and Effectiveness…cont’d

Case 1: Sisai on the Cleaning

• Sisai starts by taking out the jack and placing it under the car.
He quite doesn’t know where to position it, so he goes by
trial and error and wastes a lot of time doing it.
• After 20 minutes he finally manages to fix it, so he proceeds
to lift the car and change the tire.
• What do you say? Will you be happy?

223
Efficiency and Effectiveness…cont’d

Case 2: Dawit on the Cleaning

• Dawit starts by grabbing a towel and cleaning the tire. He
wants to make the thing shiny before he changes it. And
mind you he is very good and fast at cleaning every little
detail of the tire.
• You seem to be happy here. Don’t you?

224
Efficiency and Effectiveness…cont’d

Case 3: Tesfaye on the Cleaning

• Now, if we had a third person, Tesfu, who could change the
flat tire using the right steps and doing it quickly.
• I hope you may be tempted to also plan to give some tips?
Won’t you?

225
Efficiency and Effectiveness…cont’d

Feedback:
• As you can see Sisai was doing the right thing, but he was
doing it poorly.
• We can say that he was being effective, but not efficient.
• On the other hand, we can say that Dawit is being efficient,
because he is cleaning the tire fast and thoroughly, but he is
not being effective, because cleaning is a step that is not
required at all when changing a tire
• We could say that Tesfaye was both effective and efficient.
He performed his task without wasting resources including
time.
226
Efficiency and Effectiveness COMPARED:
Effectiveness Efficiency
Efficiency is about doing things
Effectiveness is about in an optimal way, for example
doing the right task, doing it the fastest or in the least
Meaning
completing activities expensive way. It could be the
and achieving goals. wrong thing, but it was done
optimally.
Effort oriented No Yes
Process Oriented No Yes
Goal oriented Yes Yes
Time oriented No Yes 227
Efficiency and Effectiveness COMPARED:…cont’d

• Scientifically, Efficiency defined as the output to input ratio

• Focuses on getting the maximum output with minimum
resources
• Effectiveness constantly measures if the actual output meets
the desired output
• Efficiency focuses on the process or ‘means’ whereas
Effectiveness focuses on the end
• Efficiency is restricted to the present state whereas
effectiveness involves thinking long-term
228
[Link] of Management …cont’d

4.3 Accountability
❑It is the simple statement to indicate that there are
consequences for one's actions
❑It is fundamental to any society that is democratic
❑Lincoln "Government of the People, By the People, and
For the People”
❑It is the extent to which one must answerable to his/her
higher authority
229
4.3 Accountability…cont’d

▪ "I’ll pay a price if I don’t do it right."

▪ Required to explain or justify all of the reasons for one’s
actions
▪ Accountability always assumes a prior responsibility for we
always lay out what we expect before we can lay out what
the consequences will be for failure to meet the
expectations
▪ Includes judgment and the extent of judgment for the
success or failure to do, complete, or protect that for which
a person is held accountable
230
[Link] of Management …cont’d

4.4 Economy
• The prudent management of resources to avoid extravagant
expenditure
• The state of a country or region in terms of the production
and consumption of goods and services and the supply of
money
• How do we measure the ‘progress’ of economy?
➢The most common way of measuring the progress of
economy is to measure ‘growth’
➢Growth usually is measured by looking at the change in GDP
(or GNP)
231
4.5 Span of Control
• Span of control is the number of subordinates for whom a
manager is directly responsible.
• The two diagrams next illustrate two different spans of
control. As you see them, answer the following questions.

1. How do you compare the two Spans of control?

2. Are they Narrow or Broader?
3. What are the pros and cons?
4. Are you for the one to the left or the one to the right? Why?
232
•stopped
233
4.5 Span of Control…cont’d

234
4.5 Span of Control…cont’d

• The Span of control with three may be considered Narrow

while that with seven be Broader!
• There is no best Span of control; a suitable span of control
will depend upon a number of factors:
• The experience and personality of the manager.
• The nature of the business. If being a line manager requires
a great deal of close supervision, then a narrower span might
be appropriate

235
4.5 Span of Control…cont’d

• The skills and attitudes of the employees. Highly skilled,

professional employees might flourish in a business adopting
wide spans of control
• The tradition and culture of the organization. A business
with a tradition of democratic management and empowered
workers may operate wider spans of control

236
4.5 Span of Control…cont’d

237
4.6 PLANNING
The process of Planning include among others

❑ Setting objectives, and

❑ Determining what should be done to accomplish
objectives

238
PLANNING…cont’d

• “Planning is a mental predisposition to do things in

orderly way, to think before acting and to act in the
light of facts rather than guesses”.
• Planning is deciding best alternative among others to
perform different managerial functions in order to
achieve predetermined goals. Urwick

239
4.7 Communication
• Communication is a process by which meaning is assigned
and conveyed in an attempt to create shared
understanding.
• It requires a vast repertoire of skills in interpersonal
processing, listening, observing, speaking, questioning,
analyzing, gestures, and evaluating enables collaboration
and cooperation.

240
Communication …cont’d

• The transference and understanding of meaning

• Communication Functions
• Control member behavior
• Foster motivation for what is to be done
• Provide a release for emotional expression
• Provide information needed to make decisions
241
The Communication Process

242
Key Parts of Communication Process

• The Sender – initiates message

• Encoding – translating thought to message
• The Message – what is communicated
• The Channel – the medium the message travels through
• Decoding – the receiver’s action in making sense of the
message
243
Key Parts of Communication Process…cont’d

• The Receiver – person who gets the message

• Noise – things that interfere with the message
• Feedback – a return message regarding the initial
communication
• Channel
➢The medium selected by the sender through which the
message travels to the receiver

244
Communication Channels
• Types of Channels
❑Formal Channels
➢Are established by the organization and transmit messages
that are related to the professional activities of members
❑Informal Channels
➢Used to transmit personal or social messages in the
organization. These informal channels are spontaneous and
emerge as a response to individual choices
245
Interpersonal Communication
• Oral Communication
• Written Communication
• Nonverbal Communication

246
The Grapevine
• Three Main Grapevine Characteristics
1. Informal, not controlled by management
2. Perceived by most employees as being
more believable and
reliable than formal communications
1. Largely used to serve the self-interests
of those who use it
247
The Grapevine…comt’d

• Grapevine Results from:

➢ Desire for information about important situations
➢ Ambiguous conditions
➢ Conditions that cause anxiety

• Insightful to managers
• Serves employee’s social needs

248
Effective communication …cont’d

Barriers to Effective Communication

• Filtering
➢ A sender’s manipulation of information so that it will
be seen more favorably by the receiver
• Selective Perception
➢ People selectively interpret what they see on the basis
of their interests, background, experience, and
attitudes
249
Barriers to Effective Communication…cont’d

• Information Overload
➢ A condition in which information inflow exceeds an
individual’s processing capacity
• Emotions
➢ How a receiver feels at the time a message is received
will influence how the message is interpreted

250
More Barriers to Effective Communication
• Language:
Words have different meanings to different people
• Communication Apprehension:
Undue tension and anxiety about
oral communication,
written communication, or both
• Gender Differences:
Men tend to talk to emphasize status
while women talk to create connections
251
PLANNING---cont’d

• “Planning is deciding in advance what to do, how to do and who is to

do it.” Koontz & O’Donell,
Planning enables managers to decide:
❑ What is to be done?
❑ Who is to do it?
❑ How is to be done?
❑ When is to be done?
❑ Where is to be done?
❑ Why is to be done?
• Planning bridges the gap between where we are to, where we want to
go.
• It makes possible things to occur which would not otherwise occur”.
252
Reflection
• PLANNING is not what we do in the future
• What then is planning?
• Planning is about what we will do now to make the future
all we want it to be

253
Questions
▪ Distinguish Efficiency and Effectiveness
▪ Explain Accountability
▪ Distinguish Power and Authority

254
References
❖Hughes, Owen (2005) Public Management and Administration: An
introduction (3rd edn), Palgrave Macmillan, New York.
❖Greene, Jeffrey (2005) Public Administration in the new century: A
concise introduction, Wadsworth,Victoria.

255
4.6 Planning
❑ The process of setting objectives, and determining what
should be done to accomplish objectives
PLANNING is not what we do in the future
❖What then is planning?
❖Planning is about what we will do now to make the future
all we want it to be

256
Planning…cont’d

Planning enables managers to decide

• What is to be done?
• Who is to do it?
• How is to be done?
• When is to be done?
• Where is to be done?
• Why is to be done?

257
 Review Questions

▪ Distinguish Efficiency and Effectiveness

▪ Explain Accountability
▪ Distinguish Power and Authority

258
References
❖Hughes, Owen (2005) Public Management and
Administration: An introduction (3rd edn), Palgrave
Macmillan, New York.
❖Greene, Jeffrey (2005) Public Administration in the
new century: A concise introduction, Wadsworth,
Victoria.

259
[Link] of Management

Content:
5.1 Management By Objectives
5.2 Total Quality Management
5.3 Business Process Reengineering
5.4 Benchmarking
5.5 Balanced Scorecard
5.6 Six Sigma
5.7 Decentralization
260
5.1 Management by Objectives
• The term Management By Objectives was first popularized by
Peter Drucker (1954) “The Practice of Management”
• MBO relies on the defining of objectives for each employee
and then to compare and to direct their performance against
the objectives which have been set
• It aims to increase the performance of the organization by
matching goals with the objectives

261
5.1 Management by Objectives…cont’d

• MBO is a managerial method whereby the manager and

employees
➢Identify major areas in which the employee will work
➢Set standards for performance
➢Measure results against those standards
➢The results need to be achieved in a given time-frame

262
Management By Objectives…cont’d

Guidelines for Setting Objectives:

• SMART Criteria:
• Specific
• Measurable
• Achievable
• Relevant
• Time-Specific
263
Management By Objectives…cont’d

Common Errors to Avoid When Developing Objectives:

• Too many objectives

• Too complex objectives
• Too long or too short time period
• Objectives that are not measurable
• Objectives for which the cost is too high

264
Weaknesses of MBO:
• Development of objectives can be time consuming
• Increase the volume of paperwork in an organization
• Difficulty in setting agreed and harmonized goals

265
[Link] of Management …cont’d

5.2 Total Quality Management

◼ TQM is the art of managing the whole to achieve
excellence
◼ Quality is excellence that is better than a minimum
standard
◼ It is conformance to standards

◼ ISO 9000:2000 definition of quality- It is the degree to

which a set of inherent characteristics fulfills
requirements
266
5.2 Total Quality Management…cont’d

TQM basic Concepts

◼ Management commitment

◼ Focus on customers

◼ Quality at all levels of the workforce

◼ Continuous improvement of the business process

◼ Establish performance measures for the processes

◼ Effective involvement and utilization of the entire workforce

267
5.2 Total Quality Management…cont’d

Effects of poor Quality:

• Low customer satisfaction
• Low productivity, sales & profit
• Low morale of workforce
• Delay in shipping
• High repair costs
• Greater waste of material
268
5.2 Total Quality Management…cont’d

Benefits of Quality:
• Higher customer satisfaction
• Reliable products/services
• More productivity & profit
• Better morale of workforce
• More market share
• Better quality of life for all
269
The Deming Cycle
•The Deming Cycle, or PDCA Cycle (also known as PDSA
Cycle), is a continuous quality improvement model consisting
out of a logical sequence of four repetitive steps for
continuous improvement and learning: Plan, Do, Check
(Study) and Act.
•The PDSA is also known as The Deming Wheel of
Continuous Improvement Spiral. 270
The Deming Cycle…cont’d

•Its was originated by the eminent statistics expert Mr.

Walter A. Shewart, in the 1920s.
•He introduced the concept of PLAN, DO and SEE.
•The late Total Quality Management (TQM) guru and
renowned statistician Edward W. Deming modified the
SHEWART cycle as: PLAN, DO, STUDY, and ACT.
•Along with others, Deming went to Japan as part of the
occupation forces of the allies after World War II.
•Deming taught a lot of Quality Improvement methods to the
Japanese, including the popular PDCA Cycle.
271
Figure: PDCA Cycle

272
[Link] of Management …cont’d

5.3 Business Process Reengineering

❑Frederick Taylor’s Scientific Management was contributive
step towards the introduction of BPR
❑Scientific Management involves breaking the manufacturing
process down to a cycle of simple sequences
Davenport developed some principles:
1)A science should be developed for each work activity,
identifying the ‘best way’ to perform it.
273
Davenport developed some principles…cont’d

1)People performing an activity should be scientifically

selected to have the proper capabilities, and then trained in
the science and their skills developed.
2)Management’s relationship with workers should be one of
cooperation in performing the work according to the science.

Michael Hammer and James Champy popularized the concept

of BPR in response to the proliferation of disjointed and
inefficient business processes
274
5.3 Business Process Reengineering …cont’d

• Synonyms: BPR, business transformation, process innovation

etc…
• Refers to radical redesign of business processes
• Aims at
➢eliminating repetitive, paper-intensive, bureaucratic tasks
➢reducing costs significantly
➢improving product/service quality

275
5.3 Business Process Reengineering …cont’d

• Must examine the “root” of business processes, structures,

and policies
• Don’t fiddle with the old; cast it away and begin anew
(rethink rather than only change)
• Not small, incremental improvements
• BPR seeks order of magnitude improvements in cost, quality,
service, and speed
• Use of IT to assist in these

276
BPR: Practices in Ethiopia
• The Ethiopian Custom Authority service delivery: Before and
After BPR
• Before: Securing loading permits from Djibouti used to take
43 work steps (processes) and 2 days
• After: it only takes 6 steps 15 minutes to get the service
• Before: Checking and fixing a container with a customer seal
used to take 8 steps and two days
• After: it only takes 3 steps and 40 minutes to get the same
service
277
 BPR is not TQM
Process(TQM)
Improvement Process(BPR)
Innovation

Degree of Change Incremental Radical

Starting Point Existing Process Clean Slate
Frequency of Change Continuous One-Time
Inception/Participation Top-Down/Bottom-Up Top-Down
Scope Narrow Broad; Process-oriented
Risk Moderate High
Primary Enabler Statistical Control Information Technology
Type of Change Cultural Cultural and Structural
278
 Review Questions

▪ Elaborate Business Process Reengineering

▪ Explain Total Quality Management
▪ Describe Management By Objectives

279
 References
❖Davenport,T. and Short, J. (1990), ‘The new industrial engineering:
Information technology and business process redesign’, Sloan
Management Review, 11-17, Summer 1990.
❖Greene, Jeffrey (2005) Public Administration in the new century: A
concise introduction, Wadsworth,Victoria.
❖Hammer, M., ‘Reengineering work: don’t automate, obliterate’, Harvard
Business Review, 104-112, July-August 1990.
❖Hughes, Owen (2005) Public Management and Administration: An
introduction (3rd edn), Palgrave Macmillan, New York.

280
5.4 Benchmarking
• Benchmarking is the practice of comparing business
processes and performance metrics to industry bests
and best practices from other companies.
• Benchmarking is used to measure performance using a
specific indicator (cost per unit of measure, productivity
per unit of measure, cycle time of x per unit of measure or
defects per unit of measure) resulting in a metric of
performance that is then compared to others.
281
5.4 Benchmarking…cont’d

Types of Benchmarking?
• Process benchmarking focuses on the day-to-day
operations of the organization. Ex- customer
complaint process, the billing process
• Performance benchmarking focuses on assessing
competitive positions through comparing the
products and services of other competitors

282
5.4 Benchmarking…cont’d

• Also referred to as "best practice benchmarking" or "process

benchmarking",
• This process is used in management in which organizations
evaluate various aspects of their processes in relation to best-
practice companies' processes, usually within a peer group
defined for the purposes of comparison.
• It helps organizations to develop plans on how to make
improvements or adapt specific best practices, usually with the
aim of increasing some aspect of performance.
• Benchmarking may be a one-off event, but is often treated as a
continuous process in which organizations continually seek to
improve their practices.
283
5.4 Benchmarking…cont’d

The 12 stage methodology consists of:

1. Select subject
2. Define the process
3. Identify potential partners
4. Identify data sources
5. Collect data and select all partners
6. Determine the gap
7. Establish process differences
8. Target future performance
9. Communicate
10. Adjust goal
11. Implement
12. Review and recalibrate
284
Types of Benchmarking?...cont’d

• Strategic benchmarking deals with long term results

• Cooperative benchmarking organizations invite best in class
organizations to meet with their benchmarking team to
share knowledge
• Internal benchmarking is used to identify the best in house
practices in the organization and to disseminate these
practices throughout the organization

285
Types of Benchmarking?...cont’d

• Functional benchmarking - a company will focus its

benchmarking on a single function to improve the operation
of that particular function.
• Complex functions such as HR, Finance and Accounting
and ICT are unlikely to be directly comparable in cost and
efficiency terms and may need to be disaggregated into
processes to make valid comparison.
• Best-in-class benchmarking - involves studying the leading
competitor or the company that best carries out a specific
function.
286
Types of Benchmarking?...cont’d

• Operational benchmarking embraces everything from staffing

and productivity to office flow and analysis of procedures
performed.
• Energy benchmarking - process of collecting, analysing and
relating energy performance data of comparable activities
with the purpose of evaluating and comparing performance
between or within entities.
• Entities can include processes, buildings or companies.
Benchmarking may be internal between entities within a
single organization, or - subject to confidentiality restrictions
- external between competing entities.
287
[Link] of Management …cont’d

5.5 Balanced Scorecard

◼ In 1990 the Nolan Norton Institute sponsored a multi-
company study: “Measuring Performance in the Organization
of the Future”
◼ David Norton and Robert Kaplan:
❑ Introduced the Balanced Scorecard in 1992 as a business
performance system designed to implement organizational
strategy
288
David Norton and Robert Kaplan…cont’d

❑ The scorecard uses the process of setting specific and

challenging goals that translate an organization's mission
and strategy into a comprehensive set of performance
measures

289
5.5 Balanced Scorecard …cont’d

290
The Balanced Scorecard Dimensions

291
Balanced Scorecard …cont’d

Key Principles
• Translate the Strategy into Operational Terms
• Align the Organization to the Strategy
• Make Strategy Everyone's Everyday Job
• Make Strategy a Continual Process
• Mobilize Leadership for Change

292
Balanced Scorecard …cont’d

Criticism of the balanced scorecard:

This can be broken into three distinct (but overlapping) areas
of concern.
• When it was originally proposed the lack of any formal validation of the
ideas. Kaplan and Norton notoriously failed to include any citations of
earlier articles in their initial papers on the topic, an absence noted.
• E.g. Flamholtz observed that no validation was provided for the choice
of the "four perspectives" of the 1st Generation design:
• The BSC does not provide a bottom-line score or a unified view with
clear recommendations: it is simply a list of metrics (e.g., Jensen 2001.

293
Balanced Scorecard …cont’d

• The model fails to fully reflect the needs of stakeholders – putting bias
on financial stakeholders over others.
• Early forms of BSC proposed by Kaplan & Norton focused on the needs
of commercial organisations in the USA – where this focus on
investment return was appropriate.
• The BSC does not address important aspects of nonprofit strategy such
as social dimensions, human resource elements, political issues and the
distinctive nature of competition and collaboration in nonprofit settings.
[Link] of Management …cont’d

5.6 Six Sigma

▪ Six Sigma is the measure of quality that strives for near
perfection
▪ It is a disciplined, data-driven methodology focused on
eliminating defects
▪ A Six Sigma defect is defined as anything that falls outside of a
customer's specifications
▪ Six Sigma is a reference to a statistical measuring system,
equivalent to just 3.4 defects per every million opportunities
295
5.6 Six Sigma…cont’d

Why Six Sigma?

◼ Intense competitive pressures – especially from rapid

globalization
◼ Greater consumer demand for high quality products and
services
◼ Little tolerance for failures of any type
◼ Top management (and stockholder) recognition of the high
costs of poor quality
296
 Sigma and % Accuracy
Defects per Million % Accuracy Opportunities (DPMO)
One Sigma 691,500 30.85%
Two Sigma 308,500 69.15%
Three Sigma 66,810 93.32%
Four Sigma 6,210 99.38%
Five Sigma 233 99.977%
Six Sigma 3.4 99.9997%
Seven Sigma 0.020 99.999998%

297
Key Players of the Six Sigma Team

◼ Champion: the person responsible for instilling the vision of Six Sigma
and communicating it across the firm
◼ Master Black Belt: the person with extensive experience with the Six
Sigma methodology
◼ Black Belts: the person who has knowledge of the Six Sigma process
and understanding of the tools to be used
◼ Green Belts: Green Belts are essentially assistants to the Black Belts in
their job
298
[Link] of Management …cont’d

5.7 Decentralization
• Decentralization of authority means systematic effort to
bring dispersal (spreading) of decision making authority to
the lower levels of the Organization
• According to Henry Fayol, "Everything that goes to increase
the importance of the subordinate’s role is decentralisation,
• Everything that goes to reduce subordinate’s role is
centralisation"
299
5.7 Decentralization…cont’d

• Decentralization is just opposite to centralization

• Under centralization, authority is mostly concentrated at the
top level management
• Decentralization is delegation not from one individual to
another but delegation to all units in an Organization

300
5.7 Decentralization …cont’d

Advantages
▪ Improves the quality of decision-making at the top
level management
▪ Faster response to changing circumstances
▪ Decentralized organizational structure is most
favorable for raising the morale and motivation of
subordinates
▪ Excellent training for future top level executives
301
5.7 Decentralization …cont’d

Limitations
▪ Decentralization may lead to the problem of co-
ordination
▪ Decentralization may lead to inconsistencies
▪ Decentralization is costly as it raises administrative
expenses on account of requirement of trained
personnel to accept authority at lower levels

302
 Review Questions

▪ Elaborate Benchmarking
▪ Explain Balanced Scorecard
▪ Describe Six Sigma
▪ Discuss Decentralization

303
 References
❖Greene, Jeffrey (2005) Public Administration in the new century: A
concise introduction,Victoria: Wadsworth.
❖Hughes, Owen (2005) Public Management and Administration: An
introduction (3rd edn.), New York: Palgrave Macmillan.
❖Kaplan, R. S. and D.P. Norton (1992) The Balanced Scorecard: Measures
that Drive Performance, Harvard Business Review, (January-February):
71-79.

304
 [Link] Public Management
6.1 Introduction
• Compare two or more public managements
• The emergence of CPA as a field is linked to the process of
decolonization and the expansion of nation-states
• CPA in its origins attempt to help develop the
administrative practice of developing nations
• CPA was a “cold war” strategy to contain communism

305
CPA …cont’d

• CPA as a field became somewhat irrelevant after financial

support dried out because it could not established itself
• CPA shifted from the development practice into academic
debate
• Changes around the world (foreign debt, neoliberalism,
etc.) offered a great opportunity for the revival of the field

306
Significance of Comparison:
Helps to improve
• Reliability and applicability of public management
knowledge.
• Management
• Economy
• living standard
• Organizational structures
Significance…cont’d

• Woodrow Wilson, and other pioneers, drew upon the

European experience to get a perspective on the US model
• Britain "borrowed" the idea of the ombudsman from
Scandinavia--there was no precedent for it in the British
tradition But it seemed to work.

308
Objectives of CPA
• To formulate general principles and concepts by studying
specific administrative problems and systems
• To present far reaching analysis of different: Cultures,
Nations, Systems
• To extend the scope of modern public administration
• To find out the causes of their success and failures by
locating comparative circumstances of diverse
administrative forms and systems
• To point out the necessity of administrative improvement 309
Scope of CPA

• Macro level studies

• Middle level studies

• Micro level studies

310
Approaches to the Study of CPM

• Structural Functional Approach (Dwight Waldo 1913 –2000)

• Ecological Approach ([Link] 1917 -2008)
• Behavioral Approach (Herbert Simon 1916 -2001)
Structural Functional Approach
❑ Clifford Dwight Waldo1913 –
2000) was an American political
scientist and is perhaps the defining
figure in modern public
administration.
❑ Recognized for his contributions to
the theory of bureaucratic
government,
❑ one of the most important political
scientists of the last 100 years
Approaches to the Study of CPM…cont’d

• Exposition is that there is a structure of every

administrative system
• By the structure and its organs various functions are
performed
• The comparative study and analysis of the these
structures performing diverse functions is the principal
aim
• According to this approach PA is Like a motor car
• All these parts perform their functions with coordination
and interdependence
313
Behavioral Approach
❑ Herbert Alexander Simon (1916 -
2001)
❑ An American economist, political
scientist and cognitive psychologist,
❑ whose primary research interest was
decision-making within
organizations and is best known for
the theories of "bounded
rationality" and "satisficing".
Approaches to the Study of CPM…cont’d

• Study should be made upon behavior

• Employees working in an organization harbors: feelings
and aspirations
• Behavior is affected by psychological conditions
• Individual and social conditions mould behavior

315
Approaches to the Study of CPM…cont’d

Variables Used for Comparison:

• CPA is the comparative study of institutions, process, and
behaviors in many contexts
• Context (or environment in comparative analysis generally
refers to all external influences that affect management,
such as: Political system, Culture and Economy.

316
Approaches to the Study of CPM…cont’d

POLITICAL SYSTEM
• Democratic regime
• Authoritarian regime
CULTURE
• Traditional
• Modern
ECONOMY
• Market driven
• Planned
• Mixed
317
Approaches to the Study of CPM…cont’d

INSTITUTIONS
• Branches of government
• Bureaucracies
• Political Parties
PROCESSES
• Policy making
• Agenda setting
• Decision Making
BEHAVIORS
• Self-interested behavior (rent-seeking)
• Socially motivated behavior
318
References
❖ Greene, Jeffrey (2005) Public Administration in the new century: A concise introduction,
Wadsworth,Victoria.
❖ Heady, Ferrel (2001) Public Administration: A comparative Perspective (6th edn), Taylor &
Francis Group, Pennsylvania.
❖ Hughes, Owen (2005) Public Management and Administration: An introduction (3rd edn),
Palgrave Macmillan, New York.
❖ Peters, Guy (2004) Politicization of the Civil Service in Comparative Perspective: The
Quest for Control, Routledge, London.

319
Approaches to the Study of CPM…cont’d

• In sum, CPA cannot be disentangle from politics

• Politics is a key intervening variable
• Thus, cross comparison of different political structure
become essential to advance the knowledge and practice
of PM
• Do public administrators behavior vary under different
political systems with the same level of development ?
Example: India vs. China
320
Questions

Discuss the comparative public management.

What is the significance of comparison?
Describe problems of comparison?
Explain variables used for comparison.

321
Ecological Approach ([Link])
❑ Fred W. Riggs (1917-2008)
❑ A political scientist and pioneer in
administrative model building and
theory formulation.
❑ Known for his works in
Comparative Public Administration,
especially his Riggsian Model.
❑ A Professor Emeritus at Political
Science Department of University
of Hawaii.
Approaches to the Study of CPM…cont’d

• All plants cannot grow in all climates

• Public administration is affected by ecology of the
country
• The ecology of the country has to be taken into view

323
THE ECOLOGICAL MODEL

INSTITUTIONS
PROCESSES
BEHAVIORS

POLITICS
CULTURE

324
Ecological Approach ([Link])…cont’d

Ecology and Administration:

• Ecology in simple words relates to 'Environment‘
• And this environment includes physical, social and cultural aspects
• The ecological approach to Public Administration (PA) was first
propagated popularly by Riggs who studied administrative systems
in different countries
• In his ecological studies, Riggs gave the concept of structural
functional approach as a means to study the environment and
administration relation
• According to this approach, every society has various structures
that perform specific functions like political, economic, social,
symbolic and communicational functions in the society
Ecology and Administration…cont’d

❑He stated that if studies of Public Administration had to

become really comparative then it has to shift:
• from being Normative (Establishing, relating to, or deriving
from a standard or norm, especially of behavior) to
empirical (Based on, concerned with, or verifiable by
observation or experience rather than theory or pure logic)
Ecology and Administration…cont’d

• from Ideographic (case by case study and not related to

one another) to nomothetic (relating to the study or
discovery of general scientific laws)
• from non-ecological (closed and confined to one area) to
ecological (open and cross cultural).
Ecology and Administration…cont’d

Fred W. Riggs First model

• Fred W. Riggs listed two theoretical models to explain the
administrative systems in the comparative context
The First one is as follows:
• a) Agraria: Agraria is agriculture dominated society with Imperial
China as an example. In Agrarian primordial preferences like caste
is given more priority
• b) Transitia: It is on the path to become a developed society from an
agricultural society. E.g. India and Thailand
• c) Industria: It refers to a developed or Industry dominated society.
USA is an example of this society
Fred W. Riggs First model…cont’d

Riggs' Agraria-Transitia-Industria First Model Criticism:

• It does not help in examining the transitional societies .
• It does not provide sufficient mechanism to study mixed-
type societies.
• It assumes a unidirectional movement from an agraria stage
to an industria stage
• Its major stress is on the environment of the administrative
system but not on the administrative system
• It is too general with little resemblance to concrete reality
Fred W. Riggs Second Model…cont’d

• Consequently Riggs abandoned this typology and

proceeded to better it and that resulted in a new
typology/model he designed which can be compared to the
Agrarian model.
• Accordingly,
➢ the Prismatic society can be compared to the Transitia
model
➢ the Diffracted society can be compared to the Industrial
model.
Fred W. Riggs Second Model…cont’d

Fused-Prismatic-Diffracted Model (Second Model)

❑ This Fused society can be compared to the Agrarian model

❑ the Prismatic society can be compared to the Transitia model

❑ the Diffracted society can be compared to the Industria model.

Fred W. Riggs Second Model…cont’d
Fred W. Riggs Second Model

• The new model is based on the principle of a prism and

how it diffracts fused colours of white light back into the
seven colours of the spectrum when passed through it
❑White light represents a society with very less degree of
specialization and development
❑the diffracted spectrum reflects the highly specialized
and developed society and
❑The in between prismatic society is the transition society
• He stated that neither of the extreme sides exist in totality
or as it is but in varying degrees as suitable to the ecology
Ecology and Administration…cont’d

FUSED MODEL (Ex- Imperial China):

• Heavily dependent on agriculture
• Economic system based on barter system
• Royal family and special sects dominate
• Ascriptive values dominate
Ecology and Administration…cont’d

• What is an Ascriptive Value?

• What are its impacts on business?
Ecology and Administration…cont’d

• This implies the importance of respect and how it is

given or earned.
• Ascribed status isn’t always obvious.
• For example, the brother of the company president
may be a line manager; yet he may have far more
importance in the organization than his position title
may imply. Treating him in a manner with less
respect than expected could lead to problems.
• High achievers may feel stuck in a system that
honors ascription, like workers in a family business
who know, no matter what, the son of the owner will
be the next president.
Ecology and Administration…cont’d

• Many organizations honor both ascription and

achievement by offering benefits tied to length of
service and benefits, such as performance bonuses
and commissions, tied to productivity.
• This is a reconciliation that honors elders while
honoring the achievements of anyone in the
organization, including the elders.
• Learning to recognize and reconcile cultural
differences gives business people more options for
gaining better results.
Fred W. Riggs…cont’d

DIFFRACTED MODEL (Second Model):

• Each structure carries out its own functions
• Economic system based on market mechanism (demand and
supply)
• Responsive government
• General consensus among all the people on all basic aspects of
social life
PRISMATIC MODEL (Example India, Thailand,etc):
• A prismatic society has achieved a certain degree of differentiation
or specialization
Features of Prismatic Model…cont’d

Heterogeneity :
•Simultaneous existence of different kinds of system and
viewpoints. Example - rural-urban
•Political and administrative officers enjoy enormous
influence
•Privileges for select groups which may be communal thus
creating problem in administration
Features of Prismatic Model…cont’d

• Formalism:
• Excessive adherence to prescribed forms
• Discrepancy between formally prescribed and effectively
practiced norms
• Rules and regulations are prescribed but wide deviations
are observed
• Hypocrisy in social life
Features of Prismatic Model…cont’d

• Overlapping:
• Differentiated structures coexist with undifferentiated
structures of Fused type
• New or modern social structures are created, but
traditional social structures continue to dominate
• Example - Parliament, Government Offices exist but
behavior is still largely governed by family, religion,
caste, etc.
Features of Prismatic Model…cont’d

• Administrative subsystem is called the SALA MODEL (The

Spanish word, 'Sala', has a variety of meanings like a government
office, a room)
• Objective is social welfare but priority is personal
aggrandizement/glorification
• Non cooperation among rival communities also reflects in
administration
• Existence of clects – The dominant group who use modern methods
of organization but retains diffuse and particularistic goal of
traditional type
• For promotion officers depend on ascriptive ties Nepotism,
corruption and inefficiency
Sub-systems of the Prismatic Model
• Economic subsystem which is also called the Bazaar -
Canteen Model:
• Market factors (demand and supply) as well as area
factors (religious, social, family) dominates the economy
• This leads to price indeterminacy further deteriorating
economic conditions encouraging black marketing,
hoarding, adulteration etc.
Sub-systems of the Prismatic Model…cont’d

• Price of services vary from place to place, time to time and

person to person
• Economic subsystem acts like subsidized canteen to
priviledged & tributary canteen to members of less
priviledged, politically non influential or members of
outside group
• Wage relation: Wide gap exists for same work. Persons
with less wage may feel motivated to earn more by
illegitimate means
 Criticism of Riggs' Fused-Prismatic-Diffracted
Second Model
• Usage of scientific words does not make administration
science
• It has highly technical description
• Prismatic and Sala models are equilibrium models and does
not lead to social change
• Lack of measurement of level of diffraction in prismatic or
diffracted society
• Diffracted society is also not desirable because it is static
and in equilibrium
 Criticism of Riggs' Fused-Prismatic-Diffracted Model…cont’d

• Lack of international perspective

• Wrong analytical tool
• Fails to explain the role of administration in society
• Overlapping is not specific phenomena of prismatic society
but exists in diffracted society also
• Prismatic model has a negative character
 Questions

Describe Ecology and Administration

Explain different models of Fred W. Riggs
 References

❖ Heady, Ferrel (2001) Public Administration: A comparative

Perspective (6th edn),Taylor & Francis Group, Pennsylvania.

❖ Raja, Selvin (2012) F.W. RIGGS

[Link] 15 November,
2012
Ch7. Performance Management in Public Sector

Objectives
By the end of the two sessions all participants will be able to:
Explain Performance management in public sector
Examine Characteristics of High-performing government
organizations
Discuss The human capital movement
 [Link] Effective Management…cont’d

Objectives:
Performance management in public sector
Characteristics of High-performing government organizations
The Human Capital Movement
7.1 Performance management in public sector

◼ Performance management (PM) reminds us that being busy is not

the same as producing results
◼ It focuses on achieving results
◼ PM is often used interchangeably with
➢ performance evaluation
➢ performance appraisal or performance measurement
◼ The conventional wisdom is that to manage performance one has
to first be able to measure it

352
7.2 Characteristics of High Performing Gov’t Org.
◼ In order to deal with extreme competition, there has been a strong
interest among managers in identifying the characteristics of HPOs
High Performance Organization is an organization that achieves:
◼ results that are better than those of its peer group over a longer
period of time by
❑ being able to adapt well to changes and react on these quickly

❑ setting up an integrated and aligned management structure

❑ continuously improving its core capabilities

❑ truly treating the employees as its main asset

7.2 Characteristics of High Performing Gov’t Organizations
◼ Set clear, ambitious, measurable and achievable goals
◼ Create a sense of ownership
◼ Design a good and fair reward and incentive structure
◼ Continuously simplify and improve all the organization’s processes
◼ Continuously innovate products, processes and services
◼ Strive to be a best practice organization
◼ Constantly identify and exploit new technologies to gain
competitive advantage
◼ Hold people responsible for results and be decisive about non
performers
7.3 The Human Capital Movement
◼ The human Capital (HC) can be defined as "the knowledge
and skills that individuals acquire during their life and
use to produce goods services or ideas in market or non-
market circumstances.“
◼ HC is the economic value that an employee provides to an
employer
◼ Economists’ concept of HC advantage is embedded in what
is known as “efficiency wage theory.”
◼ Simply put, an efficiency wage is an above-market wage
◼ Pay people more than they can earn elsewhere
The Human Capital Movement…cont’d

◼ The new era of globalization of the late 20th century and early 21st
century has seen an increase in the movement of human capital
as new job and business opportunities are opened by
globalization
◼ It led the focus on human capital mobility and brain drain
◼ The international movement of human capital comprises the
movement of scientists, doctors, engineers and other
professionals across frontiers
◼ The outflow of human capital is not only led by better
opportunities for study and work in the developed countries
(pulling factors) but also by economic and political conditions at
home (pushing factors)
 Questions

▪ What is performance management?

▪ Examine characteristics of High-performing government
organizations
▪ Discuss the human capital movement
References:
❖Armstrong, Michael (2006) Performance Management: Key
Strategies and Practical Guidelines (3rd edn), London:
Kogan Page

❖Poister, Theodore (2003) Measuring Performance in Public

and Non-profit Organizations, San Francisco: Jossey-Bass

❖Rainey, Hal (2003) Understanding and Managing Public

Organizations (3rd edn), San Francisco: John Wiley and
Sons, Inc
Public-private partnership
Objectives:

By the end of the two sessions all participants should be able to:

Describe the concept of Public-Private Partnerships (PPP)

Explain different types of PPP
Examine PPP in Ethiopian Context
PPt….cont’d

Session Objectives
Reasons for Establishing PPP
Basic Characteristics of PPP
Advantages and Disadvantages of PPPs
Typical Funding Sources
Questions
References
PPP Concept…cont’d

PPPs Defined:
◼ Public private partnerships (PPPs) are arrangements typified by
joint working between the public and private sector
◼ A public–private partnership (PPP, 3P, or P3) is
a cooperative arrangement between two or
more public and private sectors, typically of a long-term
nature.
◼ In other words, it involves government(s) and business(es)
that work together to complete a project and/or to provide
services to the population.
PPP Concept…cont’d

◼ They are complementary with multistakeholder

governance which is a key target of United
Nations Sustainable Development Goal 17 which are a
form of voluntary commitment.
◼ PPts have been implemented in multiple countries, are
primarily used for infrastructure projects, such as the
building and equipping of schools, hospitals, transport
systems, and water and sewerage systems.
◼ PPPs are closely related to concepts such
as privatization and the contracting out of government
services.
PPP Concept…cont’d

◼ The OECD formally defines public-private-partnerships as

"long term contractual arrangements between the
government and a private partner whereby the latter
delivers and funds public services using a capital asset,
sharing the associated risks".
◼ The advancement of PPPs, as a concept and a practice, is
a product of the new public management of the late 20th
century and globalization pressures.
PPt….cont’d

Reasons for Establishing PPP:

◼ Growing demand for basic services
◼ Inability of governments to meet the demand
◼ Limited financial resources with public sector
◼ Lack of access to advanced technology
◼ Red-tapism in public sector
Basic Characteristics of PPP
PPP include four basic characteristics:

❑ Shared goals

❑ Shared resources

❑ Shared risks

❑ Shared benefits
Advantages of PPP

◼ Ability to control costs and bear risk

◼ Flexibility
◼ Innovativeness
◼ Economies of scale/scope
◼ Expedited project completion
◼ Improved quality
◼ Use of private resources
Dis-advantages of PPP
◼ Selection of partners can be tricky
◼ Conflicts of interest
◼ Shifting of responsibilities from governments
◼ Sustainability is questionable
◼ Ethical considerations
 Reflection:
◼ A defining aspect of many infrastructure P3s is that most of the up-
front financing is bore by the private sector. The way this financing
is done differs significantly by country.
◼ For P3s in the UK, Bonds are used rather than bank loans.

◼ In Canada, P3 projects usually use loans that must be repaid within

5 years, and the projects are refinanced at a later date.
◼ In some types of public private partnership, the cost of using the
service is borne exclusively by the users of the service—for
example, by toll road users.
Question: So, what do you say about the Ethiopian case?
Typical Funding Sources:

❑ Tolls
❑ Taxes

❑ Fee

❑ Grants

❑ Loans

❑ Bonds., etc.
Typical Funding Sources…cont’d

❑ Tolls-a source of revenue for road building and

maintenance, paid for by road users and not from general
taxation.
❑ Taxes -The income that is gained by governments

through taxation. It is the primary source of

government revenue
❑ Fees-
Typical Funding Sources…cont’d

❑ Grants-a non-repayable fund or product disbursed or given

by one party. Often, grant makers include gov’t depa’t,
corporation, foundation or trust,
❑ Loans-Acting as a provider of loans is one of the main

activities of financial institutions such as banks and credit

card companies. The interest provides an incentive for the
lender to engage in the loan.
Typical Funding Sources…cont’d

❑ Bonds-A bond fund or debt fund is a fund that invests in bonds, or

other debt securities.
❑ It is an instrument of indebtedness of the bond issuer to the

holders.
❑ The most common types of bonds include municipal bonds and
corporate bonds.
❑ Bonds can be in mutual funds or can be in private investing where

a person would give a loan to a company or the government., etc.

Typical Use:
Contracting with a private company to:
◼ Renovate- to restore (something old, especially a building) to a
good state of repair.
◼ Construct-build or erect (something, typically a building, road, or
machine).
◼ Operate-Run a certain production or service provision system

◼ Maintain and Manage –The first is about making a certain

production or service provision system continue: to make a situation
or course of action continue in the same way as before. The latter is
about handling and keep control of something such as a weapon or
tool
PPP Models:
The following are but among Some of the PPPt models:
(i) Build-Operate-Transfer (BOT)
(ii) Build-Own-Operate-Transfer (BOOT)
(iii) Build-Operate-Maintain (BOM)
(iv) Design-Build-Operate-Maintain (DBOM)
PPP Models…cont’d

(i) Build-Operate-Transfer (BOT)

▪ This BOT model represents a complete integration of the
project delivery: the same contract governs the design,
construction, operations, maintenance, and financing of the
project.
▪ After some concessionary period, the facility is transferred
back to the owner.
▪ A Concession is a grant of rights, land or property by a
government, local authority, corporation, individual or other
legal entity.
PPP Models…cont’d

(ii) Build-Own-Operate-Transfer (BOOT)

◼ A BOOT structure differs from BOT in that the private
entity owns the works.
◼ During the concession period, the private company
owns and operates the facility with the prime goal to
recover the costs of investment and maintenance
while trying to achieve a higher margin on the project.
◼ BOOT has been used in projects like highways, roads
mass transit, railway transport and power generation.
PPP Models…cont’d

(iv) Design-Build-Operate-Maintain (DBOM)

◼ DBOM model is an integrated procurement model that combines
the design and construction responsibilities of design-build
procurements with operations and maintenance.
◼ These project components are procured from the private sector in
a single contract with financing independently secured by the
public sector project sponsor.
◼ Also called "turnkey" procurement and build-operate-transfer
(BOT).
PPP Models…cont’d

(iii) Build-Operate-Maintain (BOM)

❑ The counterparts are the engineering, construction
and end-user companies.
❑ It is a figure of financing a project until its productive
stage.
Questions:

▪ Elaborate Reasons for Establishing PPP

▪ Explain Basic Characteristics of PPP
▪ Describe Advantages and Disadvantages of PPPs
▪ Discuss Typical Funding Sources of PPPs
Reference:

❖Hughes, Owen (2005) Public Management and

Administration: An introduction (3rd edn), Palgrave
Macmillan, New York.
❖Greene, Jeffrey (2005) Public Administration in the
new century: A concise introduction, Wadsworth,
Victoria.
[Link] ISSUES IN THE PUBLIC SECTOR

Objectives:
By the end of the two sessions all participants will be able to:
Appreciate strategic management in public sector
Explain marketing in public sector
Distinguish government and governance
Elaborate evidence based policy and practice
Discuss E-government
Contents:
Strategic management in public sector
Government and governance
Moving to E-government: the role of ICTs in the public
sector
[Link] ISSUES IN THE PUBLIC SECTOR …cont’d

8.1 Strategic Management in public sector organizations

◼ Strategy has become very significant

Strategic Decisions are Concerned with:

◼ Scope of an organization’s activities

◼ Matching the organization’s activities to its environment

long-term direction for the organization

◼ It has become an attractive management tool to reformers
8.1 Strategic Mgt. in public sector organizations …cont’d

What is strategic management ?

◼ Strategic management is the art of managing employees in a
way that maximizes the potential of achieving business
objectives

◼ Since the 80s, there has been a large influx of private sector
principles and tools into the public sector in the attempt to
improve efficiency and effectiveness.
Strategic Management in Public Sector

◼ Bryson defined Strategic Planning as “a disciplined effort to produce

fundamental decisions and actions that define what an organization
is, what it does, and why it does it”
◼ The general mood of the public has been that public managers must
‘do more with less’
◼ Analysis of the environment
◼ Strategic options
Government and Governance:

◼ The term governance was first used in France in 14th C where it

meant ‘seat of government’
◼ The term became much more popular with World Bank’s Report of
1989
◼ The WB defined governance as the “exercise of political power to
manage a nation’s affairs”
◼ It assumes a multiple stakeholder scenario where collective
problems can no longer be solved only by public authorities but
require the cooperation of other players (e.g. citizens, business,
voluntary sector, media)
Moving to e-Government: The Role of ICT in Public Sector
◼ In 1990s, governments throughout the developed world first
became interested in the potential contribution of Information
and Communications Technologies (ICTs)
◼ Its aim was mainly to transform public services and governance
◼ Soon, the developing world has followed the route
◼ The ICTs help manage data and information faster and better
Moving to e-Government: The Role of ICT in Public Sector …cont’d

CASE EXAMPLE
◼ In the mid-1990s, the Australian State of Victoria decided to invest
heavily in the development of e-government as a way of providing
cost-efficient, modern public services for a small population spread
over a large geographical territory
◼ Since then, Victoria has become one of the acknowledged leaders in
ESD.
◼ The ESD development was helped by a number of factors, including:
❑ Strong political leadership

❑ Effective project management

❑ A population that was willing to engage with new technology
Brain Storming

❑ Discuss in small groups and report.

1. What is your overall impression about e-governance
in general?
2. What are the different e-services that are available to
for you today?
3. Which of them did you use?
4. Did you enjoy them or?
Moving to e-Government: The Role of ICT in Public Sector …cont’d

CASE EXAMPLE
❑ A key feature is the extensive and well-designed website
❑ This site clusters services by topic (e.g. arts, business, consumers, health)
❑ And by life event (e.g. getting married, going to school, turning 18)
❑ It also allows citizens to avail a wide range of services:
➢ Paying for services and licenses
➢ Registering a change of address
➢ Ordering duplicate certificates
➢ Registering for a vote
➢ Lodging completed forms
 Questions:

▪ What is the significance of strategic management in public

sector
▪ Explain marketing in public sector

▪ Distinguish government and governance

▪ Elaborate evidence based policy and practice

▪ Discuss E-government
 Reference:

❖Armstrong, Michael (2006) Performance Management:

Key Strategies and Practical Guidelines (3rd edn),
London: Kogan Page.
❖Bovaird T & Loffler (2003) Public Management and
Governance, London: Routledge.
❖Rainey, Hal (2003) Understanding and Managing Public
Organizations (3rd edn), San Francisco: John Wiley
and Sons.
[Link] SECTOR INNOVATION

Objectives:
At the end of the session the students should be able to:
❑Discuss the need for innovation in the public sector
❑Identify both the driving forces and barriers to innovation in the
public sector
 [Link] SECTOR INNOVATION…cont’d

Contents
❑Concepts and definition of Innovation
❑A brief history of public sector innovation
❑Rationale for Public sector innovation
❑Types of Innovation
❑Tools of public sector innovation
❑Driving Forces and Barriers of innovation
 9.1 Concepts and definition of Innovation
❑Creativity and innovation go together.
Stoner and Freeman defined:
❑Creativity as the generation of a new idea where as
Innovation as the translation of such an idea into a new
product, service or method of production
❑Innovation is "the conception and implementation of
significant new services, products, ideas or ways of doing
things in order to improve or reform them, and involves
taking risks.
9.1 Concepts and definition of Innovation…cont’d

• An innovative government or org. introduces innovations as

an Inventor or early adopter many times within a short
period of time.
• It invents, adopts and disseminates innovations quickly
❑Creativity and Innovation are ingredients of public sector
❑They are considered as two sides of the same coin,
because any org.s can only make full use of its ideas in the
presence of both creative and innovative human resources
❑They enable the organizations in the public sector to
anticipate change
9.1 CONCEPTS AND DEFINITION OF INNOVATION…CONT’D

❑ Stoner and Freeman explain that the elements of

creativity and innovation flourish best in dynamic and
tolerant organizational atmosphere.
❑ They noted that in order to encourage and manage
creativity and innovation,
1. Managers must understand the creative process,
2. Know how to select people with creative ability,
3. Be able to stimulate creative behavior, and
4. Provide an organizational climate that nurtures
creativity.
 Brain Storming

• Discuss and report in small groups.

• Assume you are a manager of the organization you are
working in.
• You needed to but how can you distinguish Staff
members with creative and innovative capabilities?
9.2 Organizational Creativity and Innovation
❑Org.s differ in their ability to translate the talents of their
members into new products, processes, or services.
❑To enable their org.s to use creativity most effectively,
managers need to be aware of the process of innovation in
org.s and to take steps to encourage this process.
❑The creative process in org.s involves three steps:
[Link] generation,
[Link] solving or idea development, and
[Link]
9.3 A Brief History Of Public Sector Innovation
❑ Innovation has become the emblem of the modern society, a
panacea for resolving many problems, and a phenomenon to be
studied
❑ The term Innovation first appeared in the Middle Ages

❑ innovation has acquired real importance in the twentieth century

❑ The discourses on innovation have been generally of three kinds:

innovation as a factor for change in society, innovation as
progress, and innovation for its own sake, such as for personal
recognition, prestige or professional identity
9.3 A Brief History Of Public Sector Innovation …CONT’D

❑ Innovation is discussed in scientific and technical literature, in

social sciences such as sociology, management and economics, and
in the humanities and arts
❑ Innovation is also a central idea in the popular imaginary, in the
media and in public policy
❑ Many people spontaneously understand innovation to be
technological innovation
❑ Studies on technological innovation simply use the term
innovation, although they are really concerned with technological
innovation. However, etymologically and historically, the concept
of innovation is much broader
9.3 A Brief History Of Public Sector Innovation …CONT’D

❑ It is hard today to imagine technology without thinking of the

market. One frequently hears of innovations that are marketed by
firms

❑ The genealogical study rests on six elements. It starts with the

study of words (or terms), their genesis and transformation, and the
cluster of concepts involved in speaking about innovation:
invention, ingenuity, imagination, creativity, etc.
9.4 Rationale For Public Sector Innovation
❑ Innovativeness is becoming increasingly interesting to both the
public and private sectors

❑ Both people working in organizations and the organizations

themselves would benefit greatly if they could innovate when
opportunities present themselves
9.5 Types of Innovation
❑ Product innovation
❑ Process innovation
❑ Innovation in business models
❑ Incremental or breakthrough innovation
❑ Reverse innovation
9.6 Tools of Public Sector Innovation
❑ Program Budgeting
❑ Strategic Planning

❑ Total Quality Management

9.7 Driving Forces and Barriers of Innovation
9.7.1 Driving Forces of Innovation
➢ External DFs can be searched in the: globalization trends,
governmental policy, common regional policy, competitors
attack to the market, new technology way of work, etc.
➢ Internal DFs can be searched in the: Top-management
behavior, appropriate internal coordination, innovative and
advanced technology level, new organizational structure, new
product and global challenges reflected on the employees
association …
➢ These internal and external Driving forces are key to strategic
thinking
9.7.2 Barriers of Innovation

❑ Contextual barrier has been the general lack of the conditions

and systems for innovation. Generally, public services have not
been safe environments for innovation. From a systemic
perspective, they have lacked systems for innovation and
change.
❑ This has been true in terms of organizational culture, lack of
community (safety) among employees, lack of critical thinking,
symbolic barriers, and lack of environmental scanning and
networking.
❑ From an individual perspective it has meant lack of openness to
certain kinds of ideas and lack of intrinsic motivation.
Barriers of Innovation…cont’d

❑ Top-down and bureaucratic management strategies and

structures will lead to lack of creativity in dealing with problems
and opportunities
❑ They also focus on the urgent and unimportant rather than the
long-term and important
❑ Such management structures affected individuals too, often
creating extrinsic rather than intrinsic motivation in public service
workers
❑ Lack of will
Barriers of Innovation…cont’d

❑ Unsupportive culture
❑ Lack of resources
❑ Poor implementation
❑ Poor communication and
❑ Lack of jurisdiction
Conclusion:

❑ Innovation in public sector has become essential in twenty first

century
❑ It is important to deliver goods in a smart manner to the people
at affordable prices
❑ The public managers need to identify the driving forces of
innovation and try to removes obstacles to innovation
QUESTIONS:

❑ Difference between creativity and innovation

❑ Examine the importance of innovation in public sector

Wow!

Congratulations!