Page 1
1
1
INTRODUCTION TO PUBLIC
ADMINISTRATION
Unit Structure
1.0 Objective
1.1 Introduction
1.2 Meaning of Public Administration
1.3 Evolution of Public Administration
1.4 Present Status of Pub - Ad: (Pub -Ad in the Age of LPG)
1.5 Review Question
1.0 OBJECTIVE
To understand the theory of Public administration.
To Learn the Evolution and contemporary relevance of
Administration
1.1 INTRODUCTION
Public administ ration has occupied a central place in the in the complex
and fasting changing modern society. Public administration (PA) is a
system of organization and action concerned with performance of various
activities of the government , it is an instrument for the realization the
goals of government as are aspect of government activity has co-existed
with every political system as the action part of government for the
fulfillment of the objectives set by the political decision makers.
Historically , the kau tilay‟s Arthashastra , The Mahabharat a and Ramayana
contain many insigh tful observations about the organization and working
of the government . In the history of western political thought Aristotle‟s
Politics and Mach iavelli‟s „the Price‟ are important contributions to both
political and administrative issues and ideas.
As a field of systemati c study, public administration cannot however claim
a long history. In eighteenth century the German Scholars felt interested in
this branch of academic inquiry. An essay by Woodrow Wilson published
in 1887 is considered to be the symboli c beginning of study of public
administration. With the growing importance of government in the wake
of expanding public functions, public adm in became highly complex and
more and more specialized. The need for better management of public
affairs of government working and for training of public employees was
voiced by practioner and academies alike.
munotes.in
Page 2
2
1.2 MEANING OF PUBLIC – ADMINISTRATION
I Meaning :
The word „Administer‟ is derived f rom Latin word, ad ministr ator, which
means to serve, to direct to control, to manage affairs. Thus administration
is a technique which is applied by the authority in power to serve for
which people are united. It is a rational human activity which is inherent in
any organized social l ife public or private. It is a co -operative human
effort toward achieving some common goal. To define Administration –
1. Administration is the determined action taken in pursuit of conscious
purpose – Z.A. Vieg
2. Administration is the organization and use of m an and material to
accomplish a common purpose - F.A. Nigro
3. Administration is the direction, co -ordination and control of many
persons to achi eve some purpose - L.D. Whit e
After a clear understanding of the term „administration‟ we are now make
it clear the Meaning of public –ad.
The term „public‟ itself is quite clear; it refers to the people‟s
administration . In reali ty it refers to the peoples ad carried on for the
people. By whom? T he answer is the authority o r the government. Thus
„Pub-ad‟ „in its simplest meaning refers to the government administration
carried on by the government for the peop le. Some definitions of pub ad
are
1. Public administrations consist of all those operations having for their
purpose the fulfillment or enf orcement of public policy - L.D. White
2. It is the detailed and systematic application of Law. – Woodrow
Wilson
3. Pub-ad is the art and science of management as applied to the affairs
of the state. – Dwight Waldo
II Traditional and Modern Views:
E.N. Gladden said that the field of pub -ad is mainly a debate over
definitions various scholars have defined it in different ways. The
traditional writers have defined it in its narrower sense, whereas the
modern scholars have defined it its wider sense. Let us examine the both
views.
According to the traditional narrow point of view, pub -ad is the executive
branch of the government. The scholars Simon , Lutner Gullick, W.F.
Willoughby etc . have advocated for this view. This view has emphasized
the locus but not the focus of pub -ad. It locates pub -ad in the executive
branch of the government and denied. Its main bus iness is to get the things
to do. Thus in short, the traditional view present s two narrow formalistic
and legalistic picture of public –administration.
munotes.in
Page 3
3
However the modern scholars like M.E. Dimock, FA Nigro etc. have used
the term in its wider sense. This view advocates that pub -ad is not only
responsible for executing the policies of the government but it also
contributes in formulating the policies. Though the judiciary is solely
responsible for justice but the administrative part of judiciary, which is
equally important, is taken care of by the pub -admin e.g. Policy makers
are handicapped without the help of adm in while making polices and the
same way judiciary has to depend on the concerned departments for
feedback which is required for deciding the case.
III Nature of Public – Administration :
An important question regarding the nature of pub -admin , what comprises
the administrative activit ies?
There are two differen t views. The first is „Integral view‟ and the second is
„managerial view‟.
a. Integr al View :
Integr al view held that pub -admin is the sum total of all the activities i .e.
Manual, Cle rical, Managerial, technical etc., L.D. While sh ares this view,
as he said that „Pub-admin consists of all those operations…..” This view
makes the scope of Pub -admin vast and wide as it engaged the activities
ranging from the manger to that of sweeper in their coordinated efforts to
serve the enterprise as administration.
b. The Managerial View:
The managerial view on the other hand advocates that only the managerial
activities constitutes administration. It laid stress on the technique of
management by the authority . This emphasis on „getting things done‟
Lutner Gullick is a cham pionship of this view. The „posd corb‟ formulae of
Luthar Gullick have expressed the managerial activities in nutshell. The
other scholars, who have supported this view are – Henry Fayol, Herbert
Simon, Smith berg etc.
In short the nature of pub -admin is the direct outcome of the environment.
The real core of administration is not the method of management but the
service that it renders to the people. Pub -administration is a study of
intricate and complex network of human relationships and forms of
organization designed to live together in society. It is a means to achieve
an end and not end itself. It is concerned with the non -political aspects of
administration.
IV. Scope of Public Administration :
The scope of Public Administration is meant its major interests and
commitments as a discipline and as an activity. It is both a subject of study
and practice.
munotes.in
Page 4
4
a. The scope as a discipline :
Public Administration as a discipline lacks consensus about its scope.
Mainly for two reasons. Firstly till the end of 20th century, the scholars
have not recognized it as a separate social science. It was studied as a part
of political science. Even today also in some universities it is considered
as a part of political science. Secondly public administration is a
interdisciplinary social science combined with the study of economics,
management and some other social science. Most of the theories of public
administration are either drawn or dominated by the management and
economics theorists . Along with social and political aspects. However in
spite of the domination of management and economics, it has remained a
part of political science because the ultima te aim of public administration
is to secure the people. It is an action part of the state. Therefore study of
public a dministration as discipline can not be an autonomous social science
away from political science and other social science. Being an inter
disciplinary social science it will continue to draw theories and philosophy
from other social sciences by strengthening its roots in state administration
only.
b. Scope as subject matter :
The managerial view of public administration includes the scope of
managerial techniques used in administration. Luther G ullick has given
formula viz. „ POSDCORB‟ to describe the scope of public administration
from tries point of view
P - stands for planni ng, it is a preparation for action.
O – Stands for organization – creating the formal structure of authority
S - means staffing i.e. Recruitment of suitable candidates.
D - Stands for direction issuing orders and giving guidelines
Co - stands for co-ordination i.e. harmoni zing and inter -relating various
Parts .
R - Means reporting i .e. providing information and data to authority
B - Represents budgeting include preparation, passing and execution
of budget.
Though the „POSDCORB‟ formula proved necessary development in
1930‟s, it proved to be too limited in explaining the full scope of the
dynamic field of today‟s public administration. Therefore the scope of the
discipline includes the entire administrative system, its structure,
function s, process and behavior at different levels. The scope of Public
Administration is enlarged by the emergence of new approaches to its
study and new concepts. Public admini stration today extends to all those
operations and activities of institutions in the corporate sector, which
depends upon the government funding.
V Significance of the study :
Public Administration lies at the center of modern society which has
witnessed the emergence of the „Administrative State‟. It serves as the munotes.in
Page 5
5
basis of government; it is responsible for implementing the laws and
policies of the government it delivers the promised goods and services to
the people. In democratic state the policies, programs cannot be successful
without efficient and impartial public administration. In modern
democracies , public administration participates in policy formulation by
giving advice and technical assistance to the policy makers. It acts as a
great stabilizing forc e in society. The administration function ensures the
continuance of the existing order. Public administration provides number
of services like protection of people, maintenance of law and order facility
services, development and we concerned with managing change in pursuit
of publicly defined societal values.
The number of factors contributed to the significance of public
administration in modern society. Mainly e .g. The Scientific and
technological development industrial revolution, Economic planning
socialistic and welfare state ideas etc. Even after the emerge nce of a New
politics agenda i.e Liberalization etc . the importance of public
administration has not declined, even after adopting the polices of „de -
bureaucratization. The public administration has taken a new turn based on
efficiency and effectiveness. It has given birth to new ideas and conce pts
like Goo d governance and E -Governance etc.
1.3 EVOLUTION OF PUBLIC ADMINISTRATION
I. Introduction :
In order to understand the evolutionary steps and the present status of
public administration as a discipline it is quite useful to examine its
development in historical perspective. The study of public administration
developed as an offshoot of political science and until recently public
administration as an academic subject was the very plain step sister of this
discipline. With the expansion of government activities and with more and
concern about efficiency and economy, the discussion slowly started on
better performance of the public sector. The movement for governmental
reform gathered momentum in USA , where intellectual efforts were
systematically expanded for the steady development of an exclusive body
of knowledge on the structure and functioning of public administration .
II We can identify the following stages in the ev olution of public
administration as a discipline.
Stage I 1887 -1926 : the era of politics administration dichotomy
Stage II 1927 -1937 : Value free Science of management.
Stage III 1938 -1947 : Human relations approach.
Stage IV 1948 -1970 : Identity Crises Behavioral and policy making
Approach .
Stage V 1971 -1990 : New Publ ic Administration
Stage VI 1991 Onwards : New Public Management.
munotes.in
Page 6
6
Let us discuss the above stages in detail :
I Stage I : Politics Administration dichotomy
It is commonly believed that Woodrow Wilson ‟s 1887 Journal article. The
study of Administration is said to be the beginni ng of the discipline of
Public administration. He sought to make a functional distinction between
political activities in public organisations. He said that Pu b-admin is only
concerned with the implementation of public policies which are politically
decided. He argued the need for a separate science of administration.
Frank Goodnew further elaborated the Wilson ‟s theme. He argued that
politics and administration are two disti nct functions of the government .
The locus of pub administration is identified in gov ernment bureaucracy
while that of political activity in Legislature . In early 20th century the
American Scholar L.D. White published (1926) his introduction to study
of pub - administration the first text book in the field.
II Stage II : Value free science of management :
This phase has emphasized principles approach to administration W.F .
willoboughby published a book „Principles of Adm in‟ in 1927. He
believed that in administration there are certain fundamental principles of
general application analogous to those characterizing any science. The
„public‟ aspect of pub - administration was virtually dropped at this stage
and the focus was on „efficiency‟ hence it was called as value free science.
„Scientific Management‟ (FW Taylor) handle the business of
administration became the slogan. The principles approach to
administration was further developed by Henry Fayol, Gullick and
Urwicks, Mooney and Railey. The advocates of the principles approach
worked out a number of administrative principles such as unity of
command, span of control etc . they beli eved in the universalit y of
administrative principle . Towards the end of this phase the discipline has
legitimized. If had become crystallized into what is called „classical‟ or
„orthodox‟ pub- administration .
III Stage III: Human Relations approach :
During this period the first two paradigms – politics administration
dichotomy and principle approach were attacked and rejected. The
Hawthorn experiment pioneered the human relations approach. The
approach brought out the limitations of the machine concep t of
organization in „Scientific Management‟. This approach draws attention to
the social and psychological factors of work situation. The human
relations approach had a strong effect on pub - administration in the post
war period. It emphasized the human i nterpersonal and informal factors in
the functioning of formal organization. C.I. Bernard e .g, noted the
significance of informal organization in his writings .
IV Stage IV: Behavioral and policy making approach :
This stage was heralded by two significant publications in 1940s i.e.
Herbert Simons‟ Administrative Behaviour‟ and Robert Dhals‟ the science munotes.in
Page 7
7
of PA: Three problems Simons book is a critique of older pub -
administration . He focused on „Decision Making‟ and insisted that
administrative theory must be derived from the logic and psychology of
human choice. He identified two mutually supportive streams of thought
one was development of pure science of administration and secondly
broad range of values for public policy.
Robert Dhal identified three imp problems in the evolution of science of
pub administration . Firstly , frequent impossibility of excluding normative
considerations from the problems of pub -administration . Secondly the
science of pub - administration must be study of certain aspects of human
behavior and thirdly establishing prepositions about administrative
behavior.
V Stage Vth - New Public Administration :
The ivth stage o f evolution was influenced by ( in the last phase of the era)
FW Riggs humanistic school, Rise of comparative pub - administration and
entered into the vth stage with an idea of „New PA‟ . The discipline of pub -
administration has registered new concepts and theories like ecological
approach, public choice theory, critical theo ry etc. This stage has sho wn
much concern for public policy analysis. Policy making and decision
making have become the primary areas of study in public - administration .
The new pub - administration movement which marked a Turn ing point in
the growth of the discipline . The literature on „New PA‟ lays emphasis on
four maj or themes. Firstly the Relevance relates to the character of the
knowledge itself. The new movement demanded radical curriculum
change to facilitate meaningful stud ies oriented toward the realities of
public life.
Secondly values – It openly rejected the value neutral position taken by
behavioral political scientist and management oriented pub -ad
administration .
Thirdly social equity – The purpose of public organization is the
reduction of economic social and psychi c suffering and the enhancement
of life opportunities for those inside and outside the organization.
Fourthly the change – To serve the cause of social equity is to activi ty
work for social change. This is the motto of new pub - administration .
VI Stage VI : New Public Management:
In 1988 the social environment of Min ubrook -II was markedly different
from that of its predecessor. Min ubrook -II sought to establish its identity
by focusing on the current and future vision of the field of pub -
administration . In 80s and 90s pub - administration has register ed notable
changes in its development. New paradigms such as new public
management, Entrepreneurial government , Good -Governance, E -
Governance etc . have emerged in the study of pub - administration in munotes.in
Page 8
8
response to the new policies of liberalization, Globalization and
privatization.
The evolutionary process indicates the shifting boundaries of the discipline
in respon se to constantly emerging social needs. It has gained self-
confidence as an independent subject of study.
1.4 PRESENT STATU S OF PUB - ADMINISTRATION: (PUBLIC -ADMINISTRATION IN THE AGE OF LPG)
Pub- administration today has variation, eclecticism and an applied nature.
It is clear that today pub - administration is he terodox. It is an academic
field but it is importantly the confluence of parts of various fields. Pub -
administration is necessarily an interdisciplinary subject. Throughout its
evolution it h as remained a fairly instrumental and pragmatic field mainly
on the problems of the society and polity.
The classical model of pub lic administration (Popularly known as
Wilsonian and Weberian model ) was oriented towards structural reforms
and rationality. The post Weberian view of pub lic administration has
basically been people oriented. The old idea of pub lic administration being
unique required a sheltered bureaucracy is now under change now it is
argued that pub -administration must be accessible, accountable,
competitive and transparent.
In 1990s saw the emergence of a new model of public sector management.
This has been variously called, new public management, market based
pub- administration , entrepreneurial government etc.
Role of Pub -adm in in the age of LPG:
Taking into account the remarkable changes took place in public sector
management the role of state and admi nistration has rapidly changed.
a) Role of Government /State :
The New public management (NPM) emphasizes on structural
adjustments in government . It aims at limited role of govt . including
downsizing the bureaucracy. It lays down the i mportance of Governance.
The NPM has a people dimension. The new role of state on governance
instead of Government. It is catalytic government or it is more facilitator
than governing the state. It desires to push control of many services out of
bureaucracy. It encourages competition to increase the level of
performance and minimize the cost. It is customer driven and result
oriented to improve the organizational functioning it prefers to
decentralize the authority down to the lowest level.
Under NPM public sector decision making struct ure are so designed as to
let man agers manage. Political Leadership would be concerned only with
macro policies and goals. The NPM stipulates that public servants should munotes.in
Page 9
9
have to accept more personal accountability. The NPM contributes to our
understanding of the effective blending of the political and administrative
aspects of governance. The developing countries have responded
positively to the new paradigm, and trying to remove the traditional
rigidity about the public sphere.
b) Role of Administration:
It is difficult to segregate the role of state and administration in the
changed era. As the NPM has changed the structural set up of the state
(from Government to Gover nance and tradition controller to facilitator)
the administration machinery was bound t o change, not structurally alone
but with functioning methods and attitudinal changes.
The focus of NPM is on efficient management in providing high quality
goods and services that citizen‟s value. It favorites for rigorous
performance appraisal and measurement of individuals and originations.
The people are redefined as active customers. The rewards of public
servants are based on the fulfillment of performance targets. The NPM
advocates for receptiveness to com petition and an open minded attitude of
public sector as opposed to the private sector. It accepts the participative
decision making a reality in a bottom up approach to utilize the fuel
potential of the people at basic operating levels. The liberalization and
privatization process has resulted into cutting down the size of
bureaucracy making pub - administration more c ompetiti ve‟ (as they have
to compete with private sector, nationally and g lobally) The NPM
philosophy was basically triggered by a combinati on of economic issues
and geo -political changes resulting in reduced financial resources for the
governments. In short the LPG approach has brought theoretical and
practical changes in administration. However the process is still on. The
developing nations like India are facing some new challenges to i mbibe
the new changes.
1.5 REVIEW QUESTIONS
1. Define Public Administration.
2. Discuss the Nature of Pub -admin.
3. Explain the scope of Pub -admin.
4. Discuss the importance of Pub -admin with reference to developing
nations.
5. Trace briefly the evolution of pub -admin.
6. Write a note on „New pub -admin‟.
7. Critically examine the role of Pub -admin under NPM or LPG.
***** munotes.in
Page 10
10
2
THEORIES OF ADMINISTRATION
Unit Structure
2.0 Objectives
2.1 Scientific Management Theory: F.W. Taylor
2.1.1 Scientific Management
2.1.2 Taylor‟s Work
2.1.3 Taylor‟s pursuit of a science of work:
2.1.4 Principles of Scientific Management
2.1.5Summary
2.1.6 Check your progress:
2.2 Bureaucratic Theory: Max Weber
2.2.1 Problem of particularism in wo rking of organizations:
2.2.2 Max Weber‟s Classification of Authority:
2.2.3 Features of Bureaucratic Organizations:
2.2.4 Criticism
2.2.5 Summary
2.2.6 Check your progress.
2.3 Human Relations Theory: Elton Mayo
2.3.1 Determinants of human relations in the Organization:
2.3.2 Elton Mayo
2.3.3 Hawthorne Experiments (1924 -1932)
2.3.4 Summary
2.3.5 Check your progress
2.4 Suggested Readings
2.0 OBJECTIVES
In the later part of the 19th century the public administration emerged as an
independent discipline. Ever since then various theoretical approaches
contributed towards the development of concepts, vocabulary and ideas to
the study of public administration. In the course of more than one century
of evolution of the subject three approaches attract attention of the student
of the discipline of public administration. In this unit, an attempt is made
to elaborate and explain the contribution of F.W. Taylor, Max Weber and
Elton Mayo. Their respective theories are S cientific Management Theory,
Bureaucratic Theory and Human Relations Theory. The learner will be
acquainted with basic concepts from these theoretical approaches, major
assumptions and evaluation. munotes.in
Page 11
11
2.1 SCIENTIFIC MANAGEMENT THEOR Y: F.W. TAYLOR
F.W. Taylor was the early twentieth century management thinker. He
modernized theory of management. He pioneered modern management
approaches and techniques to improve the efficiency of industrial
activities. He argued that like any other s ocial or personal activity
management is also a science. Every human activity requires efficient
performance in order to deliver desired output. Application of scientific
principles enhances the productivity of those activities. Owing to his
efforts to dev elop science of management at the turn of twentieth century
F.W. Taylor is regarded as the father of Scientific Management. He was
born in Pennsylvania State of United State of America in the year 1856.
He died in 1915. He was engineer by profession. Throu ghout his
engineering career he pursued his academic and research interests. His
major works are A Piece -rate System (1895), Shop Management (1903),
The Art of Cutting Metals (1906) and The Principles of Scientific
Management (1911).
2.1.1 Scientific Mana gement :
The idea of scientific management emerged in later part of 19th Century as
a response to the exponential growth of industrialization in America.
During this period, managerial functions gained importance in the process
of production. In changing circumstances, a managerial class emerged as
crucial link between the workers and owners. New manag erial challenges
began to crop up followed by new approach to resolve them. The old class
of managers was engaged in supervisory functions of handling day to day
problems. A new situation required all -inclusive, comprehensive, long -
term approach to deal wi th the emerging managerial problems, which were
not faced earlier. The term „scientific management‟ was coined by Louis
Brandies in 1910. He argued that considerable amount of money can be
saved by applying methods of scientific management. F.W. Taylor use d it
in his book of 1911, The Principles of Scientific Management.
2.1.2 Taylor’s Work:
1. Piece -Rate System:
Taylor proposed a piece -rate system to improve the wage administration in
factory. He suggested,
a) To determine a „rate‟ or „standard‟ time required by the workman
through observation and analysis of time taken by him to complete the
job.
b) To pay the wages to workmen as per „differential rate‟ system of
piece work, wherein they will be paid in accordanc e to their
performance vis -à-vis standard time and production.
c) To follow the principle of „Paying men and not positions‟ so that
better performers will gain more incentives and thus greater
motivation will lead to enhanced production. munotes.in
Page 12
12
2. New philosophy of Management :
Taylor recommended shift in the philosophy to run the organization at
workshop and management. He observed that traditional managers were
authoritarian and therefore ill -suited for changing industrial atmosphere.
Taylor observed that management neglected its functions and shifted its
burden to the labour while keeping for itself minor responsibility. He
advised that management should take the responsibility for determining
standards, planning work, organising, controlling and devising incentive
schemes. He added elements of planning, organising and controlling in the
responsibilities of managers. In this way he improvised job of
management and made it comprehensive to suit to the contemporary
business challenges. According to him foremost objecti ve of management
should be to pay high wages and have low unit production cost to achieve
the increased industrial efficiency. The principal object of management,
according to Taylor, is to secure the highest possible prosperity for both
the employer as we ll as to each employee. His philosophy of scientific
management is that there is no inherent conflict in the interest of the
employers, workers and consumers. The primary concern of Taylor was
that the results of higher productivity should equally benefit all people i.e.
workers, employers, and consumers in the shape of higher wages to the
workers, greater profits to the management and payment of lower prices
for the products by the consumers. In addition to it was had following
objectives:
a) To solve manage ment problems by applying scientific methods or
research and experiments;
b) To standardize working conditions and place the workers on the basis
of scientific criteria;
c) To give formal training to workers and to provide them specific
instructions to perform t he prescribed motions with standardized tools
and materials; and
d) To ensure friendly cooperation between workers and the management.
3. Defects in traditional style of management :
Taylor observed the managerial and work practices at Midvale Steel
Company. He concluded that there are certain defects in the management
of his times. They were mainly:
a) Management had no clear understanding of worker -management
responsibilities;
b) Lack of effective standards of work;
c) Restricted output because of “natural soldering ” and “systemic
soldering” of work by the workers;
d) Failure of management to design jobs properly and to offer the proper
incentives to workers to overcome soldering;
e) Most decisions of the management were unscientific as they were
based on hunch, intuition, past experience, and rule -of-thumb;
f) Lack of proper studies about the division of work among departments;
and munotes.in
Page 13
13
g) Placement of workers without consideration of their ability, aptitude
and interests.
There were bitter labour -management conflicts over the quan tity of output.
Realising that the new industrial scheme was essential to prevent
encounters, he began searching for a science of work.
4. Soldiering:
Soldiering or skiving is an act of workers, purposefully performing below
the level of their potential capacity. Through this they save their job by
avoiding being noticed by the management for non -performance of the
duties and also secure various objectives. According to Taylor there are
three main reasons for soldiering behaviour of workers.
1. Workers belie ve that if they produce more, the increased production
may cause some of the workers as excess. And hence workers will
lose the job.
2. Workers fear that if they produce more than regular, then every time
the management will expect same from them. As a resul t of increased
supply of output their wages may fall.
3. Workers follow rule -of-thumb and unscientific methods and practices
which result in wastage of their time and effort.
To counter the practice of soldiering and to improve efficiency, Taylor
conducted experiments to determine the best level of performance for jobs
and the conditions necessary to achieve that level. He used stop watches to
measure the time spend during worker‟s sequence of motions and to
determine the „one best way to perform a job‟. Hi s experiment at
Bethlehem Steel works to determine the standard sequence of motions and
movements reduced the number of workers shovelling coal from 500 to
140 without any loss of production.
2.1.3 Taylor’s pursuit of a science of work:
F.W. Taylor followed sc ientific methods to answer the problems of
management as perceived by his inquisitive mind.
a) In Midvale and Bethlehem Steel Company he conducted series of
experiments to find answers to questions like what tools to be used?
What should be the cutting speed ? What feed should be used? etc. He
experimented with machine tools, speeds, metals, materials. His
experiments led to the discovery of high -speed steel that
revolutionised the art of cutting metals.
b) In the development of the shop system, Taylor wished to know, that
under controlled conditions how long a man or a machine would or
should take to perform a given task, in a specified process, using
specified material and methods. He used scientific fact -finding
methods to determine empirically instead of trad itionally the right
ways to perform tasks with the help of a stopwatch. munotes.in
Page 14
14
c) Taylor recognized the need for scientific method of selection of the
right men for the right jobs considering their initial qualifications and
potential for further learning.
d) He wanted the effective supervision of a worker and his working
conditions after placing the worker in the right place. Taylor was
striving to lay down the basis of the healthy personnel management
i.e. to match the worker‟s abilities to the job.
e) In other experiments on motion and time study he analysed how the
workers handled materials, machines and tools and developed a
coordinated system of shop management. Taylor set out to determine
scientifically the ability of workers in dealing with equipment and
materials and this approach led to the true beginning of scientific
management.
2.1.4 Principles of Scientific Management :
Taylor‟s philosophy of management was based on following basic
principles of scientific management:
a) Replacement of Old Rule of Thumb Method and Development of
True Science of Work :
Taylor had strongly believed that application of scientific methodology
and brings solutions to the problems of human organizations. In his career
he systematically employed s tages of scientific investigation such as,
outlining objectives, defining problem, and collection of data through
experimentation in controlled atmosphere, analysis and conclusion. He
believed that this will enable the organizations to enhance productivity ,
help the workers to increase earnings and help the company to prosper.
b) Scientific Selection and Training of Workers :
It is advisable to standardize working conditions and place the workers on
the basis of scientific criteria. Every job requires suitable skills and
aptitude in the operator. I t involves selecting a right person for a right job.
It is the responsibility of the management to evaluate the character, nature
and performance of each worker with a view to find out their capabilities.
The procedure for selection of workers should be scientifically designed.
Management should take the responsibility of the scientific education and
training of selected workers so that they will avoid wrong methods of
work.
c) Co-Operation between Labour and Management:
There should be co operation between the workers and the management.
This requires transformation in the mental attitudes of the employees and
employers towards each other. Only when such a change in the attitude
will take place, that they will t urn their attention towards increasing
profits. They will fight over the distribution of profits.
munotes.in
Page 15
15
d) Equal Division of Responsibility:
Taylor suggests equal division of responsibility between the managers and
the workers. The management should assume responsibility for the
managerial work like direction, planning, control and supervision for
which it is better suited.
2.1.5 Summary :
F. W. Tay lor‟s theory of scientific management is one of the pioneering
efforts in the development of public administration as truly a scientific
discipline. His departure from the traditional style of management laid the
foundation of managerial studies. His nume rous experiments along
dividing a job into pieces and organize the production through scientific
ways produced greater results and standardization. His project
management systems are still used in the corporations as fundamental
principle of work place man agement.
2.1.6 Check your progress:
1) Explain F. W. Taylor‟s idea of piece -rate system.
2) What is soldiering?
3) What are the Taylor‟s principles of Scientific Management?
2.2 BUREAUCRATIC THEORY: MAX WEBER
Max Weber (1864 -1920) has made significant contributions to the fields
of organizational studies, management and organizational communication.
He is well known for his work on the theory of bureaucracy. He was a
German sociologist and political economist. He believed that the then
exist ing approaches to the understanding of working of organizations had
serious problems, especially around the area of authority. He wrote at the munotes.in
Page 16
16
times when Germany was undergoing the industrial revolution. His work
on bureaucracy contributed a lot bureaucrac y to help Germany to manage
its growing industrial ambitions.
2.2.1 Problem of particularism in working of organizations :
He was concerned with the feudal and patrimonial structures hampering
the efficient functioning of the big organizations that the industrial age has
created. He observed that the decision making processes in the
organizations were largely managed on the basis of relationships, kinship
or family in other words, customs. This is called traditional authority. A
major problem with this way of organizing is that of favouritism to which
he labelled as particularism, where employees were hired or fired for a
variety of non -organizational reasons, such as their religion, race, sex, and
relation or family connections. He called it particulari sm because a
particular group of people was having a very disproportionate influence
over the organization. The decision making was concentrated in the hands
of a few people and they were not the qualified people to run the
organization in efficient manner . He saw this as disadvantageous to
organizations. He favoured a more rational approach to manage
organizations. He wanted them to achieve their goals more rationally,
especially through clarified leadership and clarified rules for decision
making.
2.2.2 Max Weber’s Classification of Authority:
Weber classified authority in three types based on the sources of
legitimacy. They are: 1) traditional authority, 2) charismatic authority and
3) legal -rational authority. Traditional authority derives the legitima cy
from belief in age -old customs and traditions. This authority is by nature
feudal and patrimonial. The official invites the respect and obedience
owing to their inherited status. Charismatic Authority derives legitimacy
from the personality traits of th e occupant and is based on heroism, or
exemplary character of an individual person. A kind of super human or
extraordinary qualities of the leader invites the obedience from followers
who have personal devotion towards the leader. Max Weber favoured the
legal rational authority. He found it more in tune with the democratic and
liberal nature of the modern society. In terms of leadership, he
recommended that the legitimate authority of leadership positions should
be formalized and fixed to the positions the y occupy. According to him
it‟s not the individual charisma or inherited hereditary privilege but the
position the one holds in the organizational structure that should determine
the legitimacy of the authority. In this way, he wanted to be consistent
with societal law where organizations should be run by formal rules and
policies. He wanted the organizations rules and policies to parallel the
kind of rules that we see in society. And most importantly, he thought the
authority should reside in the position or the office. It should not reside
with the individual person, the personality, because even if the person in
position leaves the organization and there is change of guard in the
organization the new incumbent should have the decision making power munotes.in
Page 17
17
and inf luential enough to run the system without any break. So he wanted
to keep it much more legal and rational.
2.2.3 Features of Bureaucratic Organizations:
According to Max Weber, bureaucratic organizations exhibit the following
features:
1) Division of labour among the participants, specialization of functions,
precise definition of authority and responsibility structure.
2) Policy making and administration are separated.
3) Hierarchy of office with unity of command, a kind of pyramid
structure, at the bottom of that pyramid are all the employees and
above is the managerial class.
4) A set of general rules that govern performance was big part of
bureaucracy. This protects the organization from whims and wishes of
the managers. Precedents are follow ed; procedures are standardized.
Personal life is separated from work life.
5) Rules and decisions are documented and communicated in writing.
6) The selection of personnel is done on the basis of technical
qualifications. Equal treatment to all employees. Decisions are based
on technical advice. Impersonal control of staff.
7) Employees view employment as a career. Their tenure is protected
against unjust and arbitrary removal from office.
According to Max Weber, bureaucracy is a complex organization assigne d
to perform specific tasks. He said that bureaucracy was an „ideal type‟ or
rule based on a system of rational rules, as opposed to either tradition or
charisma. The central feature of his perspective is its rationality, because it
reflects the advance of reliable, predictable and efficient means of social
organization. Bureaucratization is linked to the emergence of capitalist
economies -greater pressure for economic efficiency and the emergence of
large -scale business units. With the development of modern state and
adoption of the welfare role the bureaucracies found to be in the situation
with increase of responsibilities. Bureaucratization is also stimulated by
the pressure of democratization, which weakens ideas such as tradition,
privilege and duty, an d replaces them with belief in open competition and
meritocracy.
2.2.4 Criticism :
Weber‟s theory of bureaucracy has been criticised on the following
grounds:
1) Bureaucratization showers the decision making process.
2) It created a new class of bureaucrats as pressure groups within the
organizations.
3) The long chain of commands exhausts the valuable resources.
4) Individual initiatives are killed in the web of formalities and
procedures. munotes.in
Page 18
18
5) Creates difficulty in identifying and removing incompetent
incumbents.
6) Unthinking compliance with rules and procedures, become ends in
themselves and detract from the achievement of organizational goals
7) It implies that centralized organization is superior to decentralization
organizational forms.
8) Max Weber was silent on the i nfluence of unofficial leaders.
9) Weber offered no theory of how a bureaucracy would respond to
external pressures for change.
10) Work involves serving the organization faithfully in return for
security and long -term career.
11) The organization becomes the basis f or employees‟ entire way of life.
Workers‟ self -identities depend on their roles in the organization and
may leads to occupational psychosis.
2.2.5 Summary :
According to the bureaucratic theory of Max Weber, bureaucracy is the
basis for the systematic functioning of public administration. It is mainly
designed to ensure the efficiency or modern organization. It rationalize the
power structure in the administra tion with emphasis on division of labour,
hierarchy, rules and impersonal relationship.
2.2.6 Check your progress:
1) Explain Weber‟s classification of authority.
2) What are the main features of Weber‟s model of bureaucracy?
4) Why did Weber advocate legal rational authority?
munotes.in
Page 19
19
2.3 HUMAN RELATIONS THEORY: ELTON MAYO
The human relations theory was developed in 1930s. The theory criticized
the basic postulates of the classical theory of organization. The prevalent
theory of organization set out by the likes of F.W. Taylor (1856 -1915),
Henry Fayol (1841 -1925), Luther Gul ick (1892 -1993), Lyndall Urwick
(1891 -1983) and Max Weber (1864 -1920) considered the organization as a
formal mechanical structure. Those theories neglected the social -
psychological -cultural needs of the individuals who comprise these
organizations. The cl assical approach did not take in to account the social,
psychological, cultural elements of human existence while developing the
understanding of the organization. The human relations theory challenged
the mechanical and formal view of organization by expl aining the role of
human factors in the functioning of formal organizations. The human
relations theory was the outcome of findings of experiments conducted
during interwar period. These studies concluded that individual attitudes,
formal -informal relation ships and leadership styles are key determinants
of the organizational productivity.
2.3.1 Determinants of human relations in the Organization:
According to human relations theory human relations in the organization
are determined by individual, informal organization and participative style
of management.
The Individual:
Human emotions and perceptions are important determinants of our
organizat ional behavior. Human relations at work place influence the
process of production and organizational output. According to human
relations theory the individual in an organization desire supportive team.
Healthy human environment at the work place results i n better employee
satisfaction at the workplace. Human motivations and informal group
dynamics are important than formal and mechanical process. Management
should pay attention to workers economic, social and psychological needs.
Informal Organization:
The human relations theory emphasized the role of informal dynamics
operating at the work place. As per the theory, the workers are humans
first; therefore workmanship that deprives them of the joy and happiness
of being together and sharing unstructured bon ds with fellow workers fails
to motivate them to put in their optimum efforts in their job. This happens
despite of meticulously designed physical environment of the workplace
and offering financial incentives to them.
Participative Management:
The hum an relations theory endorses the participative management.
Participation of workers in decision making process in the organization is
important condition of building healthy organizational culture.
Development of practices that facilitates participation of the workers
results into developing strong interpersonal bonds among the workers and munotes.in
Page 20
20
the management. It gives the workers a sense of ownership of the
organizational resources and improves their productivity.
2.3.2 Elton Mayo :
The theory owes much to th e work of Elton Mayo (1880 -1949), an
Australian born industrial researcher and organizational theorist. Famous
Hawthorne Experiments were conducted under his leadership. His major
writings are Democracy and Social Freedom (1919), The Human
Problems of an I ndustrial Civilization (1933), The Political Problems of an
Industrial Civilization (1947). Other writers contemporary to him and
followed human relations approach are F.J. Roethlisberger, William J.
Dickson, W. Lloyed, E. Warner and L.J. Henderson.
2.3.3 Hawthorne Experiments (1924 -1932) :
Hawthorne experiments were carried out at the Western Electric Company
in USA between 1924 to 1932 by the Harvard Business School. The
experiments were conducted by Elton Mayo and his colleagues.
a) The research problem:
The Western Electric Company at Hawthorne was manufacturing
telephone system bells and employing about 25,000 workers. The
management at the Western Electric Company was concerned about low
productivity in the organization. The management had two assumptions
about what affects productivity of the workers more:
Firstly, proper physical work conditions like ventilation, temperature,
lighting and wage incentives for workers have a positive correlation with
the productivity of the organization.
Secondly, improper job design, fatigue and other similar conditions of
work have negative correlation with organizational productivity.
Illumination of the work place too was considered as the factor that affects
the quality, quantity and safety at the work place. The National Research
Council of the National Academy of Science conducted a research to
identify the relationship between illumination of the work place and the
efficiency of the workers. The study was conducted at the Hawthorne
Plant of the Company.
The study was conducted in three phases which are as follows:
The great illumination experiment (1924 -1927)
Human Attitudes and Sentiments Experiments (1928 -31)
Social Organization (1931 -32)
b) The great illumination experiment (1924 -27):
The great illumination experiment was conducted before the participation
of Mayo and his team in the study. The aim of the experiment was to
determine the effects of physical conditions on productivity. The specific
objec tive was to see if illumination of the work place has any relationship munotes.in
Page 21
21
with the productivity of the workers. Degree of illumination represented
the availability of proper physical condition. As a part of the experiment
two groups of female workers, each co nsist of 6 members, were formed
and kept in two different rooms. Both groups were given same tasks. In
the beginning of the experiment physical conditions of both the groups
were maintained constant. Later the physical conditions were slowly
changed to obs erve the impact of changing conditions on the output. The
study was carried out for a period of one -and-a half years. It was observed
that regardless of the varying degrees of illumination, both the groups
reported increased production. Changes were made i n other working
conditions as well, like working hours, rest breaks etc. Every time the
groups displayed performance improvement. The experimenters concluded
that physical conditions have little effect on the productivity of workers if
the work environment has well established norms of cooperativeness and
productivity. This is feasible if the workers are given sense of importance
and are supported and motivated by the informal social dynamics at the
workplace.
c) Human Attitudes and Sentiments Experiments (1928 -31):
The second phase of the study was conducted between 1928 and 1931.
The purpose of the study was to understand and explain the role of human
attitudes and sentiments in determining the level of productivity in the
organization. In the Western Ele ctric Company plant at Hawthorne 21,126
workers were asked to speak their views and opinions about the
management, the working conditions, behavior of their superiors with
them, policies of the company etc. Their responses were analyzed and
studied.
It was observed that after venting out the grievances and complaints the
workers felt positive about the working conditions. This was despite of the
fact that in reality no change was brought in the working conditions by the
management that the workers complai ned about. The research concluded
that the workers are preoccupied with their personal problems which
Mayo terms as 'pessimistic reveries'. These problems cause
underperformance of the workers. If they are given proper outlet to relieve
those pessimistic r everies the workers will gradually feel satisfied at the
work place.
This phase of the Hawthorne experiments established that the employees if
treated respectfully and allowed to express themselves freely at the work
place may feel greater satisfaction ab out the job. Management can only
learn about the real issues influencing the productivity if workers have a
trust in the management and express openly about the problem they face.
The experiment highlighted that appreciation of the feelings and
sentiments of the workers is a key to keep them motivated in order to
contribute towards greater production.
munotes.in
Page 22
22
d) Social Organization (1931 -32):
The third and final phase of the study known as 'the Bank Wiring
Experiment' was conducted during 1931 -32. The experiment w as designed
to observe the behavior of workers in groups. It was based on the
understanding that the organization is a social structure and the people
working in it are social beings who have innate tendency to form and
interact with the groups and get inf luenced by the intragroup dynamics.
Employees working in three trades solder, fixing the terminals and
finishing the wiring were selected. All these jobs are separate but
interrelated. They were offered wages on the basis of output of the group
they were part of.
The experiment gave interesting findings. The management set a formal
target as standard output but the workers informally decided their own
standard which was lower than the management expectation. The group
developed informal unified social st ructure and regulated the production
by using various tactics and prohibited the members from deviating from
the target that they set for themselves. The workers were allowed neither
to produce more than the informally set target nor less than it. No one
should tell a supervisor anything against fellow workers. And those who
are given supervisory responsibilities should behave like a comrade,
should not maintain distance from co -workers.
e) Implications of Hawthorne Experiments:
Hawthorne experiments proved as mile stone in development of theories
of organization. The findings of the experiments questions earlier
postulates of classical managerial thinking and brought in the fore an idea
that human aspects of organizations shall n ot be overlooked while thinking
about the technical and economic aspects. The employees are humans and
not machines. They need to be understood and be treated as a social being
whose basic impulses drive them towards freedom. The organizations
constitutes of both formal and informal sub structures. Social and
psychological factors predominate the informal set up within the
organization and are more decisive than the formal structures of rules and
incentives.
2.3.4 Summary:
Human relations theory was deve loped between two world wars. It
stretched the question of enhancing productivity and output to next level.
While the earlier thinking on the question of productivity focused on the
formal and mechanical aspect of administration, the human relations
theory added the human aspect to it. It stressed that employees are human
beings and therefore carry the baggage of their existence in socio -psycho -
cultural sense to the workplace. They have innate tendency to shape their
environment and alter to give them sense of security and freedom. Any
understanding of organization is incomplete without taking into
consideration the attitudes, emotions and basic impulses of which they are
made up of.
munotes.in
Page 23
23
2.3.5 Check your progress:
1. What are the determinants of human relations in an organization?
2. Explain in brief about three phases of Hawthorne Experiment?
2.4 SUGGESTED READINGS
Basu Rumki; Public Administration: Concepts and Theories; Sterling
Publishers Private Ltd., New Delhi, 2019
Chakrabarty Bidyut and Chand Prakash; Public Administration;
Orient BlackSwan, Hyderabad, 2017
Prasad Ravidra, et.al (ed.); Administrative Thinkers; Sterling
Publishers Private Ltd., New Delhi, 2010
S. R. Maheshwari; Administrative Thinkers; MacMilan India Ltd.,
New Delhi, 1998.
*****
munotes.in
Page 24
24
3
BASIC PRINCIPLE AND
THEORIES OF ORG ANISATION
Unit Structure
3.0 Objectives
3.1 Basic Principle
3.1.1 Introduction
3.1.2 Important Principles
3.1.3 Review Questions
3.2 Theories of Organistion
3.2.1 Introduction
3.2.2 Motivation Theory
3.2.3 Review Questions
3.3 Leadership Theory
3.3.1 Introduction
3.3.2 Management and Leadership
3.3.3 Leadership styles
3.3.4 Leadership Theories
3.3.5 The Trait Theory
3.3.6 Criticism of Trait Theory
3.3.7 Contingency Theory of Leadership
3.4 Review Questions
3.0 OBJECTIVE
To learn the basic principles of organisations
To study the different theories of Organisation
To understand the concepts and theories of leadership and
management
3.1 BASIC PRINCIPLE
3.1.1 Introduction :
The dictionary meaning of the term “Principle” is standard accepted guide
to action‟. According to Henry Fayol, Principles are acknowledged truths
regarded as process on which one might rely. Every organization - Public
or private have their o wn style of functioning. However there are certain
broad principles which are universally valid . Thus principles are the basic
idea on which the organizations run munotes.in
Page 25
25
In the early 1930s , J.D Mooney and A .C Reliey have attracted the
attention of scholars toward the need of principles of organization.
Broadly speaking the principle of organization is a contribution of
classical thinkers such as Henry Fayol Luther Gullick, Lyndalurwick,
Money and Relief etc. However the behaviori st thinkers like Herbernt
Simon, Marry Parker Follett etc. have criticized and rejected the existence
and rigidity of these principles but in spite of this, these principles are
going to stay as useful techniques for building and functioning o f
organization. It is true that they may not be applicable rigidly. These
principles are guiding force for the effective functioning of organization,
with elasticity in its application as per the changing circumstances. The
study of organization cannot be completed with cut the principles.
One more thing to be rem ember that almost all classical thinkers have
given a list of principles, e .g. Lutner Gullicks has enunciated about ten
principles, urwick has identified eight principles, Henry Fayol -14
principl es about 29 principles have been derived from Taylors scientific
management. We found certain overlapping and duplication of principles
in these lists. Some of the major principles which are commonly studied
while studying the organization are
3.1.2 Important Principles :
1. Hierarchy
2. Span of control
3. Unity of Command
4. Co-ordination
5. Delegation
6. Centralization – Decentralization
7. Authority & Responsibility
8. Communication
9. Specialization and
10. Leadership etc.
However , we are going to discuss only three principles (as per our
Syllabus ) i.e. Hierarchy , Delegation and centralization –Decent only.
A. Hierarchy:
This principle is also known as „scalar processes . By the early 1900 , Max
Weber‟s bureaucratic model emphasized the principle of hierarchy . Henry
Fayol, Mooney and Relied also used the term „Scalar Process‟ Hierarchy
consists in the term „Scalar Process‟. Hierarchy consists in the un iversal
application of superior subordinate relationship through a number of levels
of responsibility reaching from top to the bottom of the structure. (L.D.
White)
I) Hierarchy involves two types of communication : the upward
communication and the downward communication. Thus hierarchy in one munotes.in
Page 26
26
sense keeps the superior informed about what is going on in the
organiz ation and in another sense flow of orders and decisions in a
descending order. The mostly heavily hierarchical organisations are found
in military organization. Actually every Organisation is divided into
number of division and subdivisions for administrative convenience.
Pyramid structure. A B G C H D I E Bridge or J Gang
plunk K F F L
It is obvious that orders and decisions flows in a descending order i.e.
from A to F through the channels of B C D E , who are considered as
immediate subordinates of ABC respectively. The flow of information in a
similar way moves upward from F to A through EDCB. The flow of
communication from A to L and vic e versa refers to the various divisions
of an organization. However in la rge organizations t he scal ar path is rather
long. Henry Fayol has suggested an alternative „Gang Plunk‟ roof for
horizontal communication between the two managers operating at the
same level in the hierarchy.
ii) Features of Hierarchy :
The main features of hierarchy can be noted as per following.
1) It is a system of descending authority in which the higher level
exercises various overriding powers over the Lower Levels.
2) It is a system of commands and control from top to bottom.
3) At each level of hierarchy the superior authority is responsible for
getting the work done from his subordinates.
4) Responsibility and obedience run upwards from bottom to top.
5) The authority vested at each level should be common surate with the
responsibility entrusted to him.
iii) A dvantages of hierarchy:
The principle of hierarchy has the following major advantages or merits.
1) It promotes division of work and specialization in the organization.
2) It helps in the free flow of information and orders along the line. munotes.in
Page 27
27
3) It is possible to inte grate the activities of various units and sub -units
of an organization into a concrete whole.
4) It facilitates delegation of authority and responsibility and thus
develops many centers of decision making in the organization.
5) It creates sense of duty and responsibility among the employees at
each level of the organization.
6) The system of proper channel serves as a basis of superior –
subordinate relationship and creates principle of discipline.
7) It leads to functional specialization at each level in the organization.
8) It eases the problem of superior sub -ordinates conflicts if any arises in
the organization.
9) It removes/reduces congestion of work at apex level.
10) Hierarchy and system of rules ensure de personalization and
efficiency –max weber
iv) Disadvantages of hierarchy:
The principle of hierarchy is no t free from de merits. The main
shortcomings are as per the following -
1) It causes unnecessary delay in the disposal of work.
2) It may lead to superiority complex among the superiors and inferiority
complex among the sub -ordinates.
3) It leads to red -tapism and encourages corruption, also promotes
deception and insensitivity to the public wishes .
4) Over emphasis on hierarchy may destro y the cordial relationship in
the organization.
5) There is a possibility of suffering the career advancement for young
recruits due to hierarchical levels of organization.
However in spite of these shortcomings the principle of hierarchy has
established its place in building the administrative organizations. All
organizations (Small, big, public , private) all built up on the lines of
hierarchy. It is true that the traditiona l hierarchical organisations do no
longer exist . In the age of new technology and market oriented pub -admin
a new structure of organization is taking place, known as „Matrix
Organisation ‟ where there is scope for innovation, initiative flexibility tec h
in the modern administration.
B) Delegation of Authority :
I) Introductio n:
Every administrative organization is based on superior – subordinate
relationship each having a specified area of operation. The efficiency of
organization depends on the honest and timely performance of their
respective duties. There is a division is not of the same degree, it cannot be
equated with the concept of „delegation‟. Generally the supervisors are
assigned the work of supervision and others with more manual work.
munotes.in
Page 28
28
Meaning:
The term delegation means to give away or to assign with. It is an act of
administration in granting authority to accomplish a particular assignment.
According to L.D. White – „Delegation of authority means greater energy,
higher sense of responsibility and better morale among field officers‟.
Mooney defines – delegation as th e conferring of specified authority by a
superior person to a lower authority.
According to Millett - The essence of delegation is to confer discretion
upon others to use their judgments in meeting specific problems within the
framework of their duties.
The delegation of authority is more important in large and complex
organization than the small and simple organization. No chief executive
alone can handle the work and hence delegation becomes inevitable.
Secondly no single authority is capable of working after the technology
and administrative aspects together. The process of delegation is usually
regarded as the key to the efficient functioning and its goal attainment.
III) Features of Delegation:
Some of the characteristics of this principle can be not ed below -
1) Delegation of authority is exercised by the higher authority only.
2) The authority is delegated to the subordinates who are capable of
handling the work.
3) The technical assignments are delegated only to the
technical/specialized persons in the organ ization.
4) The delegation can be downward, upward (at middle level) or equal
level.
5) Delegation of authority does not mean an abdication of authority. No
higher authority can escape from his responsibility.
6) The degree of delegation depends on the nature of work and
responsibilities involved.
7) Delegation involves the assignments of the power of decision making
without it, it is always futile.
8) Delegation involves dual authority ie. To do the job and to get the job
done.
9) Delegation of authority is not a permanen t feature. The authority
delegated can be revoked at any time.
10) The delegator has to develop a mechanism for exercising effective
control over the persons to whom authority has been delegated.
IV) Limitations of Delegation :
All powers o r work of higher authority can not be delegated because the
chief executive is the final decision making authority and is responsible munotes.in
Page 29
29
for the consequences and results of the decisions. Some of the limitations
can be noted below :
1. Constitutional and legal matters.
2. The compete nce of the subordinate staff.
3. Unstable and frequently changing conditions of work.
4. Appointing powers and rule making powers.
5. Power of policy making.
These are some aspects which cannot be delegated.
V) Forms of delegation:
It is not a rigid or scientific classification of delegation. Just to understand
the nature and for study purpose the forms are mentioned. Generally the
forms of delegation based on the extent of authority delegated. These are -
1) Full or partial : When the de legation is complete renunciation of
power by the superiors, it is full delegation. When only new power is
conferred it is partial delegation.
2) Conditional or unconditional : When the powers are conferred
without any condition it is unconditional and next is vice versa
3) Formal and informal : When authority is delegated through some
written laws and rule, it is formal delegation. Informal delegation is
based on customs, conversation and understanding.
4) Direct and indirect delegation : When the delegation is done direct
between delegating authority and subordinate to whom authority is
delegated. It is direct delegation. Indirect delegation is made through
an intermediate .
In whatever manner authority is delegated capacity intelligence, will and
confidence. These features are essential between both the parties to make
delegation more effective and purposeful.
VI) Advantages of Delegation:
Delegation has the following advantages to its credits -
1) It saves time of higher authority by reliving him of certain routine
functions.
2) It develops an increased sense of responsibility among the
subordinates
3) It develops a cordial and trustworthy relationship in the org.
4) Proper delegation minimizes delay and red -tape increase efficiency
and economy.
5) It provides training to the sub ordinates in the art of sharing
responsibility and authority.
VII) Barriers to Delegation :
There are two types‟ barriers in the delegation process.
munotes.in
Page 30
30
A) Organizational barriers:
1. Controlled and centralized management
2. Inadequate mechanism for delegation
3. Ill trained/ in experienced staff.
4. Un willingness of higher authority
5. Size and location of the organization
B) Psychological barriers :
1. Ego of higher authority
2. Feeling of insecurity among higher authority
3. Incapable subordinates
4. Apathetic towards accepting authority
5. Lack of knowledge of delegation.
C) Cent ralization and Decentralization:
The issue of centralization - Decentralization is essentially a problem of
relationship between higher and lower levels of organiza tions in the matter
of making decisions. It relates to the organizational structuring. Every
organization involves, to a greater extent, power, rule and authority. There
is a simple relationship between these factors. ie. The authority rules the
organizati on through power. The effective functioning of an organization
depends on prompt decisions making for which the high authori ty is
responsible, but they can not alone take all the decisions hence powers are
decentralized.
I. Meaning of Centralization:
Broadly speaking centralization refers to the concentration of power of
decision making at the center.
1) L.D. White : The process of transfer of administrative authority from a
lower to a higher level of government is called centralization. It signifies
the concentration of authority at the top of the administrative pyramid. The
top level may be head quarter or chief executive. It is centralized system.
Thus centralization incline tendency is also known as centripet al tendency
where in authority travels upwards towards the head.
Merits and Demerits of Centralization :
The centralized administrative system achievers effective control over the
entire administrative system. It also ensures uniforms policies, methods
and procedures. It avoids the abuse of authority at the local level and
duplication of work. It secures economy in carrying out administrative
procedures. The swift means of communication which are at our disposal
have made centralization easier. The needs o f modern defense and
economic planning are the factors which contribute to centralization.
Central direction and supervision makes national economic policy
possible.
munotes.in
Page 31
31
However the centralization has certain disadvantages too
The overburdened central authority may suffer from incapacity to bear the
burden of responsibility. The centralized system does not allow local
initiative and discretion, which is essential to resolve local level problems.
It leads to autocratic control ov er subordinates and rigidity in approach to
problems. It leads to delay in arriving decisions. In centralized system
many times the central authority makes decisions without local knowledge
which differ from locality to locality. It does not provide any op portunity
to the people to participate in the administration.
De-Centralization :
The process of transfer of administrative power from a higher to lower
level of government is called decentralization. It implies the establishment
of relatively autonomous f ield and regional offices and delegation of
decision making power and functions to them. Decentralization is not
synonymous with delegation. Delegation implies transfer of certain
functions by the central authority to local authority. Whereas ,
decentralization signifies the central authority diverting itself of certain
powers which are given away to the autonomous local authorities.
There are two types of decentralization viz . political decentralization and
administrative decentralization. Pol itical decentralization implies creation
of new levels of autonomous units within the state. Administrative
decentralization means delegation of administrative responsibility ,
authority and discretion to administrative units having jurisdiction over
one pr ogramme of function in a geographi c area. Administrative
decentralization can be territorial or functional. Administrative
decentralization applies to administrative units such as district, division,
zone, circle etc. Functional decentralization applies to technical or
professional local authorities.
Advantages & Disadvantages of Decentralization:
Decentralization helps in solving problems more effectively through
understanding of local situation. It provides in centive and initiative to
work with great autonomy to the field units. It works close to the people. It
prom otes managerial values of efficiency economy and effectiveness.
Decentralization is an opportunity to participate in the administrative
process to the people. It reduces the burden of work o f central authority. It
creates in the field officials a feeling of greater confidence and ability to
meet the challenging tasks of their job. Decentralization makes possible to
conduct certain experiments in polic ies and programme .
Decentralization has certain de merits too much decentralization may lead
to chaos, as it makes co -ordination and integration difficult. It reduces the
importance of central authority in comparison to the field units.
Decentralization is more expensive as it involves duplication of work
parochialism, local narrow mindedness, absence of uniformity are some of
the defects of decentralization. munotes.in
Page 32
32
To conclude, centralization or decentralization involves the problem of
relationship between higher and lower levels o f organization. Too much
centralization or decentralization is not acceptable. There should be a
balance between these two. Acceptance and application of both the
principles depend on the size, nature of organization and nature of
function to be performed. It also depends on the capacity and ability of the
local units to accept the challenge.
3.1.3 Review Questions :
1. What are the major principles of organization?
2. Define Hierarchy. Write its features.
3. Critically examine the merits and demerits of hierarchy.
4. Explain the meaning and features of delegation.
5. What are the limitations and barriers of delegation?
6. Define centralization and de -centralization.
7. Write the merits and de-merits of centralization and de -centralization.
3.2 THEORIES OF ORGANISTION
3.2.1 Introduction :
Organisation is complex entities. The intellectual equipment used to
explain and predict their behavior is also complex. Therefore simple
answer does not suffice. Organisation Theory consists of a tentative,
plausible explanation of how and why organisations develop and change
and why organisations and its members behave the way they do. The
development of techniques for the administration of Organisa tion has
certainly been influenced by Organisatio n Theory. Organisation theories
can be classified into -
1. Classical Theories
2. Neo- Classical Theories
3. Modern Theories
4. Post Modern Theories
However such classification may not be universal and suitable for all time.
The main theories which relates to the above classification are shown in
the chart.
We are not going to explain all the theories shown in the chart. Because
the syllabus contains only two theories of motivation and two theories of
leadership. Hence the notes contain only those four theories munotes.in
Page 33
33
Broad classification of organization Theories
I Classical II Neo Classical III Modern IV Post Modern 1. Scientific Management (FW Taylor) 2. Principles of org. (Fayol, Gullick etc.) 3. Bureaucratic Theory (Max Weber) 4. Maxian Theory (Mark & Michel) 5. Management org (Chester Bernard) 1. Human Relations Theory (EI to 12 Mayo) 2. The Group dynamics 3. Decision making (Herbert –Simon) 4. Theory of x4 y (Macgroger and macllend) 5. The Hierarchy Needs Theory (Maslow & Herzberg) 6. Hygine Theory (F.Herzberg) 7. Leadership Theories 1. The prismatic sala Model (FW. Riggs) 2. Humanistic approach (Chris Argyaris) 3. Participative Management 4. Behavioral theory (Dwight waldo) 5. Management paradigm (PeferDrycker) 6. public Policy Approach 7. Development Administration. (FW. Riggs) 1. New Public Admin 2. New public management 3. Good governance 4. Accountability Paradigm 5. LPG & Public Admin 6.Administrative entries 7. Post Modernism : Some discourse
NB. – The above classification is not rigid.
3.2.2 Motivation Theory :
Introduction:
The term motivation refers to the motives in action. Motives are defined as
needs, wants drives within the individual motives arouse and maintain
activity in an individual and direct his behavior towards a goal or reward.
Stephen Robbins defines motivation as, the willingness to do something
and is conditioned by this actions ability to satisfy some needs for the
individual James Draver, Motivation refers to the phenomena involved in
the operation of incentives or drives.
Motivations is greatly influenced by two factors -
1) The intrinsic forces within the human being and
2) The external stimuli which are perceived by the human beings as
incent fires.
munotes.in
Page 34
34
Motivation plays a significant role in determining the performance level of
the employee. The effective fulfillment of organizational goals depends
upon the motivation strength of its employees.
What are the ways by which people are motivated to work har d and
produce better results? This question has been a major concern of
management theorist. There are two categories of motivation theories ie.
Traditional and modern.
The traditional theories emphasis on economics factors. These are
Monistic Theory , Eco nomic Theory and Carrot and Stick approach.
The modern theories propounded by Maslow, Herrberg, Alderfer and Mc -
Grogor. The Mc -Gregor theory is given below -
Dougl as Mc -Gregor’s Theory of X and Y:
Douglas Mc -Gregor (1906 -64) was a social psychologist. His theoretical
construct characterizing Theory X and Y assumes a quest for high
performance in the org. The major work of Mc -Gregor consists of the
following.
1. The human side of enterprise (1960)
2. Leadership and Motivat ion (1966)
3. The professional manager (1967)
He sought an answer to motivation in the nature of man. He proposed two
opposite assumptions about the nature and behavior of people at work.
One is labeled as Theory X and another is theory Y.
The theory X assumes that most people –
1. Are lazy and dislike work.
2. Prefer to be directed
3. Are not interested in assuming responsibilities
4. Want safety above all.
This theory traditionally known as the carrot and the stick “theory and is
based on the mechanistic approach to human relations. The above
assumptions of theory X have certain implications about human
motivation. This theory X projects negative image of people.
Accompanying this philosophy is the belief that – money fridge benefits
and the threat of puni shment motivate people. Managers who accept this
theory prefers to rely upon disciplinary methods, fear and punishment to
extract performance from the empl oyees.
Mc-Gregror himself questions the validity of theory X. He says that this
theory does not work at all once man has reached an adequate subsistence
level and is motivated primarily by higher needs. Theory X fails to
describe human nature. Hence he comes o ut with an al ternative theory „ Y‟.
munotes.in
Page 35
35
Theory „Y‟ – The Theory „Y‟ assumes that most people.
1. Does not inherently dislike work.
2. People exercise self-direction and self-control in the for which he is
committed.
3. The most important reward is the satisfaction and self-actualizing
needs .
4. The average human being is ready to accept responsibility.
5. Every person has potential; it is to be fully utilized.
Theory Y leads to pre occupation with the nature of relationship which
encourages commitment to organizational objec tives. This theory
recognizes interdependence of human organizations and participative
management. This theory assumes the integration of behavior which is the
key process in management. McGregor calls this theory Y an open
invitation to innovation.
Through his theory of X and Y Mc -Gregor made an attempt at
compromise between the view points of the traditionalists and modern
behaviouralists. Thus Mc -Gregor is regarded as the bridge between the
traditional and modern theories of motivation.
3.2.3 Review Questions
1. Define theory how you will classify the theories of org.
2. What is motivation? Write the influencing factors of motivation.
3. Critically examine the theory of X & Y.
3.3 LEADERSHIP THEORY
3.3.1 Introduction:
The term „Leadership ‟ has never been clearly defined. There are as many
different definitions to define the concept. Leadership is equated with –
power, influence, superiority with or over the people: Generally leadership
is related with the process o f influencing group activi ties towards the
accomplishing goals in a given situation. Leadership is a relationship
between two or more people in which influence and power are unevenly
distributed. According to FA Nigro‟ the essence of leadership is
influencing the action of others‟ Leaders do not flourish in vacuum . The
essence of leadership implies that followers must consent to being
influenced leaders gain their authority over the people by consensus alone.
munotes.in
Page 36
36
Leadership is not a lay figure. He helps the people and resolves the
difference. He develops team work in the group. He represents the group.
He is an intermediary between the work groups and management . Renisis
Likert says it as „Linking pins‟. He is a counselo r of the groups and helps
to eliminate the emotional diseq uilibrium. He possesses power and
authority to act in a way that will stimulate a positive response from the
workers. He exercises different types of powers i .e. coercive , rewarding
legitimate, expert etc.
3.3.2 Management and Leadership :
Leading and managing are not synonymous. Leaders are essential while
managers are necessary. The distinction between leadership and
management can be summarized as per the following chart.
Leadership Management 1. Influencing Behaviour of other seeking co-operation 2. Leaders conquer the context 3. A Leader innovates 4. Leader is original 5. Leader develops 6. Leader develops 7. The Leader inspires trust. 8. The Leader has a long range perspective 9. The Leaders asks what and why 10. The Leader has his eye on the horizon. 11. The Leader originates 12. Leader challenges statco 13. Leader do the right things 14. Leader influence attitude and opinion of people 15. Leaders are strategists and facilitators Working with individual and groups to accomplish goals. Manages surrender to it Manages administers. Manages is copy. Manager maintains Manager focuses on system and structure. Manages relies on control. The manager has a short range View. The manager asks how and when. The manager has an eye on the bottom line. The manager initials. The managers accept it. Manager do the things right. Manager influence actions and decisions. Manages are for formers.
3.3.3 Leadership styles:
The behavior exhibited by a leader during supervision of the work of his
subordinates is known as leadership styles; broadly speaking leaders have
three types of styles.
1) Autocratic : When the powers of decision making are centralized it is
autocratic leadership. He exercises complete control over
subordinates/ followers . He sets the group goals and structures the work.
2) Democratic : The Democratic type of leadership always prefers to de
centralize the powers, believes in consultation and participating
approach. Subordinates are encourage to develop their potentials
assume greater responsibility and helps to develop cohesive group. munotes.in
Page 37
37
3) Free –rein: these types of leadership beli eves in complete delegation of
powers and authority to subordinates. This is a type of collective
leadership. Group consensus and collective decisions are always
initiated. In practice this type of Leadership never trusts .
Though the Leadership styles are theoretically classified as per the above,
but in practice pure type of one kind of leadership is not found. Generally
leadership is found mixed in mature. No leadership can be successful with
one kind of traits.
3.3.4 Leadership Theories:
Leadership is a crucial ingredi ent in organizational effectiven ess. It is a
complex interpersonal process of influencing behavior. Leadership is
complex and multidimensional in character.
There are various theor ies of leadership propounded be haviors scholars.
Some of the important theories are named below.
1. The great man Theory
2. The charis matic Theory
3. The trait Theory
4. The behavioral approach
5. The contingency Theory
The behavioral theories of leadership are mainly of four types -
a) Likers system of management
b) Michigan studies
c) Ohio state studies
d) Managerial grid Theory
[Here we are concerned with two theories i.e. Trait theory and
contingency ]
3.3.5 The Trait Theory:
This is the first major formal approach to the study of leadership. It was
primary Theory in leadership developed between 1900 and 1940.
According to the trait approach leaders are conceited of as persons based
with certain qualities that made it relativel y easy for them to bend others to
their will. In short it is based on an assumption that „Leaders are born, not
made. Therefore all the enquiries and investigations about the leadership
were made identify the physical, mental and personality traits of vari ous
leaders. Various studies of traits are made of which Ralphstogdill and
Edward Gheselli are considered as imp -
Identified Traits of Leaders:
Research studies comparing the traits of leaders with non -leaders found
that leaders tend to be som e confident and more intelligent than non -
leaders. Stoogaill found from various researchers mainly the five traits of
leadership i .e. Physical –Energy, appearance, fitne ss etc . Intelligence – munotes.in
Page 38
38
creativeness, judgement etc . personality - self-confidence , and enthusiasm
etc. task relat ed- achievement, initiative , Social standing and status etc .
Edward Gheselli noted significant co -relations between leadership and
motivation. He identified 13 traits of which some are very important e .g.
Supervision skill, occupational ach ievement, intelligence, decisiveness ,
self-assurance and initiative etc.
3.3.6 Criticism of Trai t Theory:
The trait approach of Leadership has been disproved in research. The
Theory does not revealed any single trait applicable to all successful
leaders. There is little consistency in the list of key leadership traits
developed by the researchers. Most of the traits attributed to leaders are
also possessed by many non -leaders. This theory ignores the needs of
subordinates and also ignores situational varia bles such as the task and the
organsational climate.
Dis-Satisfaction with the trait approach caused most researchers to focus
attention on the actual behavior and actions of leaders. Therefore the tide
of opinion about importance of traits for leadership effectiveness began to
change from the late 1940s.
3.3.7 Contingency Theory of Leadership :
The contingency model has been developed mainly by fielder and vroom
yet ten in the year 1967 and 1973 respectively . Fiedlers theory is a
milestone in leadership research. He has suggested three major situational
variables which determined the appropriate style of leadership for a given
situation.
1. Leader - Member relations : The extent to which leader is personality
attractive to his group members and is respected by them.
2. Task structure : The extent to which the task is defined and structural
in terms of goals to be achi eved and means for achieving goals.
3. Position power : The extent of power and authority that the leader ‟s
position provides.
Fielder demonstrated that the effectiveness of task orientation and people
orientation depends on the situation. Task oriented leaders tend to perform
best in group situation that are either very favorable or unfavorable to the
leader. Re lationship oriented leaders tend to perform best in situation that
are intermediate in favorableness .
In 1973 vroom and yetten, using a decision making frame work developed
a contingency model of leadership. This theory is based on the a ssumption
that situational variables interacting with personal attributes result in
leaders behavior is that can affect organizational effectiveness. The
leader‟s possible behaviors are contingent upon the quality of the decision
made and the acceptance of it by the group members. This model
emphasis the situational nature of the leadership function. An effective munotes.in
Page 39
39
leader is one who is able to match his style to the situation in an
appropriate way.
There are other situational models and theories that have re ceived wide
attention i n leadership research. They are –Tannebaum -Schmidt continuum
of leader behavior, the house – Mitchell path goal Theory and the Hersey
Blanchard three d imensional leader effectiveness , odel. Actually the roof
of the situational approac h lies in chester Bernard‟s insight that
organizations depend upon behavior of leaders and its followers in various
situations. Sometimes different situations require differe3nt leaders. It is
believed that situational approach is necessary to portray ac tually the
complexities of leadership process.
3.4 REVIEW QUESTIONS
1. Define leadership
2. Differentiate the leadership from management
3. What are the various types of leadership styles?
4. Which leadership styles better?
5. Critically examine the Trait Theory of Leadership.
6. Explain the co ntingency Theory of Leadership.
*****
munotes.in
Page 40
40
4
CONTEMPORARY TECHNIQUES IN
ADMINISTRATION
Unit Structure
4.0 Objective
4.1 Good Governance
4.2 E-Governance
4.3 Public Private Partnership
4.4 Review Questions
4.0 OBJECTIVE
To understand the concept of good governance and study the elements of
administrations. Students will learn major concept of public private
partnership model its features and limitations.
4.1 Good Governance :
The concept of „Good Governance is a recent origin. There are three ways
to understand the new concept.
Firstly it is an attempt to widen the scope of public administration.
Secondly it is an externally dictated term invented to prescribe aid -
conditionality
Thirdly it is genuinely democracy – intensify ing concept to made public
administration.
The term „Governa nce‟ that has assumed significance since 1989 with its
advocacy by the World Bank . The word bank 1992 defines governance as
the manner in which power is exercised in the management of country‟s
economic and social resources for development. Governa nce depends on
three factors
1) The form of political regime
2) The process by which authority exercised
3) The capacity of government to des ign, formulate and implement
policies.
Governance is a more encompassing phenomenon than Government.
Governance stands for establishment, operation and networking of social munotes.in
Page 41
41
institutions. The widened concept of governance later termed as g ood
governance .
The transformation of public system from “ bureaucra tic‟‟ to citizen -ism‟ is
called as Good governance. In a broader sense it refers to all those
activities in which the concern is towards citizens. The emphasis is on the
shift from bureaucratic behavior to citizen –center behavior where citizens
occupy place importance Good governance aims at achieving much more
than the efficient management of economic reso urces. It is broad reform
strategy to make government more open, responsive, accountable and
democratic, regulate the private sector and strengthen instit utions of civil
society.
The major pre requisites of good governa nce are :
1) The capacity to get thi ngs done and free the administration from
conventional formalism.
2) To promote open market friendly and competitive economics .
3) To highlight the importance of rule of law, human rights, participatory
development and democratization.
4) The equity and legitimacy aspects are more important than good
management.
5) Promoting civil societies and establishment of social institutions.
In short governa nce should be society cent ered.
The second Administrative Reforms commission (ARC) (2005 ) observed
that “The public administrative machinery responds well when there is
clarity of objective and provision for adequate resources and
accountability enforced.”
The major features of “Good Governanc es can be summarized (from
the above discussion) as per the following :
1. Good Governance is the basic elements of democracy are built to
serve citizens.
2. Transparency is the key elements of good governance which builds a
relationship based on mutual faith.
3. Participation of citizens in governmental activiti es is a symbol of trust
which is a part of good governance.
4. Account ability is the hallmark of ever demo cratic government which
has been strengthened by good government
5. Efficiency and economy are notable parts of good governa nce top
accomplish desired goals.
6. Good governance provides an opportunity to people to be a part of
governance.
7. Public private partnership is initiated in good governance.
8. Governments role is limited to facili tator and governance only. munotes.in
Page 42
42
9. De -bureaucratization & d e-control are major features of good
governance.
In the current phase of globalization public adm in has assumed particular
importance with the object to exercise effective economic sovereignty and
control over national resources and environment and to ens ure that their
use by the private sector. The primary goal of governance should be to
strengthen national unity and integration .
4.2 E -GOVERNANCE
Governance recognizes the capacity to get things done which does not rest
on the power o f government to command or use its authority - It sees
government as able to use new tools and techniques to steer and guide.
The focus of NPM is on performance output along with transparency
accountability and goals rather than administrative processes. It aims to
initiate overall change in culture and envi ronment of the public
organization . It inculcates market valves in public organization . To
achieve all these objectives it was necessary to evolve new techniques of
performance measures based on outputs. Good gove rnance came to be
equated with sound development management.
Sound development management is based on measuring standards of
performance and techniques of control. The new technology based on
electronics equipment‟s like computers, networking internet etc . are useful
to develop a new management and communication system in
administration. Western capitalist countries are far ahead in using these
techniques. Fast communication and paperless administration has been
possible with the use of modern electronic t echniques use of these
techniques from bottom to top level in administration has initiated the
process of E Governa nce major elements of E -Governance can be
indentified as per the following –
1. Use of computer and ICT related technology at all levels of
administration.
2. Integration of various departments through network technology has
not only made the communication faster and easy but to establish co -
ordination among various departments. I t is possible to eradicate the
drawbacks of overlapping and duplication.
3. It is possible to provide various interrelated services at single point at
any counter through networking system.
4. Networking system provides transparency and relevant informat ion
can be made available to the people through website and portal.
5. It is possible for administration to make documentation and database
ready at any given time.
6. The data and information can be made accessible to general public to
ensure the transp arency in adm in. munotes.in
Page 43
43
7. The required documents can be made avai lable on line to the
concerned.
These are some impor tant features and benefits of E -Governance . Now
days we have accusto med with E Governance and it is not a new thing for
the young generation. After having the experience of corona cala mity it
has been realized the importance of E -Governance . During this period all
most all activities of the government admin were carried out in distance
made i .e. Theory online business. It is possible in the comi ng decade that
most of the government business will be performed through E mode.
However there are some difficulties in setting of hundred percent E -
Governance firstly the availability electricity (24x7) throughout the
country including remote areas.
Secondly the availability of quality equipment‟s to operate system at all
levels. Thirdly trained staff should be made available at all levels and the
general public should also be made aware about the use of new techniques.
Fourthly the attitudes bureaucrats and general public should be changed in
favor of using the new system.
Finally the success of E-Governance depends on the attitude of stake
holders the politician‟s bureau -crafts and general public.
E-Governance does not mean to remain always and a loop from the
people. Remain connect with the people is precondition for democratic
administration. E -Governance is a means to an end it is not end itself.
4.3 PUBLIC PRIVATE PARTNERSHIP
The public sector faces increasing demands to run government like a
business, importing private sector concepts such as entrepreneurism
privatization, treating the citizens like a „customer‟ and management
techniques desired from the production process. Th e new public
management seeks to emphasize efficient, instrumental implementation of
policies etc. given the importation of private sector man agement
techniques into public administrators are expected to be entrepren eurial,
offer great customer service and practice the latest management
techniques. There is however potential problems with making me public
service more business likes because there is a difference in the operating
norms of private and public sector organisations . The problems in seeking
a rea sonable balance between approaches lies in the solution that operating
with private sector entrepreneurial techniques in the public sphere. This
idea has given birth to the concept of public private partnership.
munotes.in
Page 44
44
Meaning:
Public private partnership (PPP) is a method of implementing government
programs with the private sector. The term private also includes N GOs,
Corporates, Voluntary org anisations, firm‟s individuals etc.
PPP combines the resources of government with those of private agents in
order to deliver societal goods‟ Government of India defines that “PPP
projects means a project based on contract between government and
private sector company for delivering an infrastructure service on payment
of user charges.‟
There are three things which distinguish PPP from direct services by the
government
1) A partnership based on well-designed contract.
2) A Contract can be long term or short term.
3) Flexible decision making
Objectives of PPP :
PPP has some important objectives laid down in the Eleventh Five year
Plan the plan has clearly mentioned that the PPP will be executed in Public
services at a reasonable cost. It aims at bringing private resources into
public projects and not public resources into private projects major
objectives of PPP are –
1) A policy option to leverage the govt . (All three Levels ) and markets to
encourage private investments.
2) To initiate private investments in public projects.
3) To promote innovativeness and flexibility in publi c organization.
4) To promote and safeguard interests of the stakeholders.
Major components of PP:
The PPP comprises the following components which enable PPP to work
smoothly and effectively.
1. Political Leadership: The government plays a key role in the
partnership. Hence the concerned political head should be capable,
committed and prepared to do the agreement with the private firm
2. Bureaucracy: To level bureaucrats who are generally involved in
drafting and a making the agree ment should be well informed and
prepared for the same. They are main players from the government
side.
3. Public Sector : If PPP is related with the publ ic sector, the top level
offici als of the un dertaking must be ready for PPP . As they have to
change th eir bureaucratic working into business like working.
4. Clarity in agreement and plan: While making agreement with
private firm, the agreement with terms and conditions and
development plan, mentioning each stage of development should be
clear and in writ ten from munotes.in
Page 45
45
5. Provision for resources : PPP projects must mention the estimated
cost of projects and continuous flow of resources to be made
available, share of each partner etc. In short a complete and perfect
financial plan should be ready be fore execution.
6. Quality Commitment: There should be guarantee from noth sides
about the quality of input used in the project and the quality of
finished goods or final services to be provided to the customers.
7. Communication : The stake holders of the PPP should be given
appropriate and timely information and data through regular
communication. Ultimately it is a public project raised on public
resources.
Evaluation/Criticism :
The PPP is a 20th century innovation. When the economies of developing
countries liberalized (Mainly after IInd world war After induction of LPG
concept In India – after 1991) The PPP concept has emerged and entered
in the public services. The Government has started synchr onizing its
activities and private initiative has been encouraged to entre. PPP is not a
final answer to all questions. It is true that PPP is cost effective, gives
quality goods or services, it has greater flexibility and transparency,
provides better soc ial services to the people etc. Most importantly it is
more democratic concept based decentralization
However as mentioned above that PPP is not final answer to all questions.
The economic system (LPG privati zation etc.) has various drawbacks PP
is a part of open system. The crux of the problem is that government
cannot escape from providing services to the people. There is a possibility
of garbing the public resources in the name of PPP by the private
entrepreneurs. The nexus between politicians, bureau -crafts and private
entrepreneurs may lead to co rruption and exploitation. It is difficult to fix
the accountability in such situation. If the proper means controls are used
and ex ecuted the PPP may be useful. It is also t rue that no nation can
afford to go back from the open system.
4.4 REVIEW QUESTIONS
1. Write a note on “Good Governance ‟
2. What is E -Governance ?
How useful is E -Governance in Public Administration?
3. Critically examine the concept of „public private partnership‟ (PPP)
*****
munotes.in