ODISHA STATE OPEN UNIVERSITY

Programme Name: BACHELOR OF ARTS IN POLITICAL SCIENCE

Programme Code:BAPS Course Name: PUBLIC ADMINISTRATION
CourseCode:UPS-C-403 Semester:4 Credit:4
Unit No : 1to16
BOARD OF STUDIES

Prof. (Dr.) Sartik Bagh Prof. (Dr.) Johani Xaxa

Subject Expert Subject Expert
Professor, Department of Political Science Former Professor, P.G Department of
Babasaheb Bhimrao Ambedkar University, Political Science and Public
Lucknow, Uttar Pradesh, - 226025 Administration, Jyoti Vihar,Burla, 768019
Prof. (Dr) S.P Guru Subject Prof. Sadiq Sait Subject
Expert Expert
Former Professor, P.G. Department of CEO Ulektz, Edu. Tech Member,
Political Science and Public Administration, Hyderabad
Jyoti Vihar, Burla, 768019
Dr. Subhadra Maharana, Dr. Suresh Chandra Patel (Member)
(Head-in Charge) Convener Associate Professor, Political Science,
Assistant Professor, OSOU, Political Science Odisha State Open University, Sambalpur
Odisha State Open University, Sambalpur
Dr. Ratnakar Ray (Member) Dr.Roshan Ekka (Member)
Assistant Professor, Political Science Assistant Professor, Political Science,
Odisha State Open University, Sambalpur Odisha State Open University, Sambalpur
 COURSE WRITERS
Dr. Aswinee Kumar Supakar
Assistant Professor, OSOU

Mr. Bighneswar Rout

Assistant Professor, OSOU

EDITORIAL COMMITTEE
Dr. Ratnakar Ray Dr. B.K. Mahakul
Assistant Professor, OSOU Assistant Professor, OSOU
Dr.Roshan Ekka Dr. Suresh Chandra Patel
Assistant Professor, OSOU Associate Professor, OSOU

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Odisha State Open University, Sambalpur Public Administration

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 SLM Structure

Name of the
BACHELOR OF ARTS (POLITICAL SCIENCE)
Programme
Credit Value 166 Credits
Notional Credit Hours 4980 Hours

Fourth Semester

Course Code UPS-C-403 Credit Value 04 Credits

Public Administ
Administration Notional Credit
Course Title 120 Hours
Hours

Unit Name of the Title Sub Points under the Unit

01 Public Administration as a
Discipline: Meaning, Nature and  Introduction
Scope  What is Administration?
 Administration, Organisation and
Management
 Defining Public Administration
 Nature of Public Administration
 Scope of Public Administration
 Importance of Public Administration
 Role of Public Administration under
Liberalisation, Privatisation and
Globalisation (LPG)
 Conclusion
 Key Concepts
 Model questions
 References

02 Evolution of Public Administration  Introduction

 Phase I -Politics
Politics-Administration
dichotomy (1887–1926)
1926)
 Phase II -Principles
Principles of Administration
(1927–1937)
 Phase III-Era of Challenges (1938- (1938
1947)
 Phase IV- Crisis of Identity (1948-1970)
(1948
 Phase V- Public Policy Perspective
(1970-1990)
Page 1 of 5
  Phase VI - (1991-present)
 Study of public administration in India
 Conclusion
 References

03 Politics-Administration Dichotomy,  Introduction

Public vs. Private Administration  Politics-Administration Dichotomy
 Distinction Between Public and Private
Administration
 Similarities Between Public and Private
Administration
 Summary
 Key Words
 Model Qquestions
 References
04 New Public Administration  Introduction
 Evolution and Definition of New Public
Administration
 Difference between Public
Administration and New Public
Administration
 Criticism of New Public Administration
 Summary
05 New Public Management  Introduction
 The New Public Management
 Assessment of New Public
Management
 Difference between New Public
Management (NPM) and New Public
Administration (NPA)
 Summary
06 Good Governance  Introduction
 Governance
 Good Governance
 Eight principles of good governance
 Criticisms of the idea and practice of
good governance
 Feminist Perspective on Governance
 Summary
07 Organizations: Formal & Informal,  Introduction
Line and staff organizations  Importance of Organization
 Meaning of Organization
 Principles of Organization
 Types of Organization

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  Formal Organization
 Informal Organization
 Line and Staff
 Conclusion
 Key Concepts
 Activities
 References
08 Principles of Organization:  Introduction
Hierarchy, Span of Control, Unity of
Command  Hierarchy
 Meaning of Hierarchy
 Features of Hierarchy

 Advantages of Hierarchy
 Demerits of Hierarchy
 Unity of Command: Introduction
 Historical Background
 Meaning of Unity of Command
 Concept of Unity of Command
 Principles of Management Described by
Hierarchy
 Span of Control: Concept and Concerns
 Conclusion
 Activities
 References

09 Principles of Organization:  Introduction

Delegation, Decentralization,  Delegation of Authority: Meaning and
Coordination Definition of Delegation
 Hindrances and Limitations to
Delegation
 Delegated Legislation
 Coordination: Introduction
 Definition of Coordination
 Coordination and Cooperation
 Types of Coordination
 Principles of Coordination
 Essential Features of Coordination
 Centralisation and Decentralisation:
Introduction
 Centralisation: Meaning
 Decentralisation: definitions and
meaning

Page 3 of 5
  Approaches to Decentralisation
 Types of Decentralisation
 Advantages Vs Disadvantages
 Factors Governing Centralisation and
Decentralisation
 Conclusion
 Key Words
 Activities
 References
10 Administrative Management theory,  Introduction
Bureaucratic Theory  Life and Works
 Structure of Administration
 Henri Fayal’s Administrative Theory of
Management
 Weber’s bureaucratic theory
:Rationalization
 Summary
11 Scientific Management Theory  Introduction
 Background
 Life and Work of F.W Taylor
 Soldering of work
 Concept of Scientific Management
 Impact of Scientific Management
 The Critical Evaluation
 Summary
12 Human Relations Theory  Introduction
 The First Enquiry as Early Experiments
 Human Relations Theory
 The Hawthorne Studies
 Great Illumination
 Human Attitudes and Sentiments
 Social Organization
 Summary
13 Bureaucracy: Structure& Processes;  Introduction
Recruitment  Structure of Bureaucracy
 Process of Bureaucracy
 Recruitment Procedure of Bureaucracy
 Role of Bureaucracy
 Summary
14 Training, Ethics in Administration  Introduction
 Importance of training and development
 Need for training and development
 Employee capacity building strategy
 Training in Public Administration
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  Ethics in Administration
 Summary

15 Contemporary challenges &  Introduction

Perspectives: e-Governance, Public-  Contemporary Challenges for State
Private Partnership  Contemporary perspectives for state
 e-governance
 Public-Private Partnership (PPP)
 Public-Private Partnership (PPP) Mode
in Infrastructure and Development
 Summary
16 State vs Market Debate  Introduction
 State-Market Relationship in Public
Administration
 Impact of Globalization on the Role of the
State in the State-Market Relationship
 Summary
 Key Words
 Model Qquestions
 References
 Additional Readings

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 UPS-C-403/OSOU

Unit-1: PUBLIC ADMINISTRATION AS A DISCIPLINE:

MEANING, NATURE AND SCOPE
Structure:
1.0 Learning Objectives
1.1 Introduction
1.2 What is Administration?
1.3 Administration, Organisation and Management
1.4 Defining Public Administration
1.5 Nature of Public Administration
1.6 Scope of Public Administration
1.6.1 Scope of Public Administration as an Activity
1.6.2 Scope of Public Administration as Discipline
1.7 Importance of Public Administration
1.7.1 Importance of Public Administration as Specialised Subject of Study
1.7.2 Importance of Public Administration as an Activity
1.8 Role of Public Administration under Liberalisation, Privatisation and Globalisation
(LPG)
1.9 Summary
1.10 Key Words
1.11 Model Questions
1.12 References

1.0 LEARNING OBJECTIVES

After going through this Unit, you should be able to:
 Define Administration and Public Administration
 Describe the nature of Public Administration
 Explain the Scope of Public Administration
 Ascertain the importance of Public Administration
 Analyse the role of Public Administration under Liberalisation, Privatisation and
Globalisation.

1.1 INTRODUCTION

Public Administration as an activity and as a subject of study occupies a prominent place

in the modern complex societies. Administration as an activity is as old as society, but as a
subject of study it is essentially concerned with the study of administration of public affairs.
As an area of study it originated, with the publication of Wilson’s “Essay on study of
Administration” in 1887. As a process, administration occurs in both public and private

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organizations. Public Administration is basically concerned with the organization of

government policies and programmes as well as the behaviour of officials. In the wake of
rise of organized societies and the state intervention in every wake of human life, Public
Administration acquires added significance. Public Administration embraces all the
activities of the government. As an activity the scope of Public Administration is no less than
the scope of state activity. In the modern welfare state people expect many things – a wide
variety of services and protection from the government. In this context Public
Administration provides a number of welfare and social security services to the people
Public Administration had its origin when human beings crossed the primitive stage and
entered the stage of civilization. Starting in a small way, it has been increasing in its scope
and importance ever since. It is now central for the progress and even survival of the human
society. In this lesson we shall try to understand the meaning of Public Administration and
on that basis, see what factors contribute to its importance in general and its importance in
developing countries in particular.

1.2 WHAT IS ADMINISTRATION?

The word ‘administer’ is derived from the Latin word administrare, which means “to care
for or to look after, to manage affairs”.
Broadly speaking, the term administration appears to bear at least four different meanings or
different senses depending upon the context in which it is used:
1. As a Discipline: The name of a branch of learning or intellectual discipline as taught
and studied in colleges and universities.
2. As a Vocation: Type of work/trade or profession/occupation, especially one that
involves knowledge and training in a branch of advance learning.
3. As a Process: The sum total of activities undertaken to implement Public Policy or
policies to produce some services or goods.
4. As a Synonym for ‘word’ Executive or Government: Such other body of persons in
supreme charge of affairs, for example, Manmohan Singh Administration, Bush
Administration, etc.

The concept of Administration is defined by a few famous writers.

E.N. Gladden
“Administration is a long and slightly pompous word, but it has a humble meaning, for it
means to care for or look after people, to manage affairs…. is determined action taken in
pursuit of conscious purpose”.
L.D. White
“The art of administration is the direction, co-ordination and control of many persons to
achieve some purpose or objective”.

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Brooks Adams
“Administration is the capacity of coordinating many, and often conflicting, social energies
in a single organism, so adroitly that they shall operate as a unity.

J.M. Pfiffner and R. Presthus

“Administration is the organisation and direction of human and material resources to achieve
desired ends.”

Luther Gullick
“Administration has to do with getting things done, with the accomplishment of defined
objectives”.

Felix A. Nigro
“Administration is the organisation and use of men and materials to accomplish a purpose”.
A brief analysis of the definitions listed above reveals that administration comprises two
essentials, namely (1) cooperative effort, and (2) pursuit of common objectives. One does
not find any administration if there is only a common purpose without a collective effort or
vice-versa. Administration is also called a ‘technology of Social relationships’. Thus,
administration is a process common to all group effort, public or private, civil or military,
large scale or small scale. It is process at work in a department store, a bank, a university, a
high school, a railroad, a hospital, a hotel or a local government.

1.3 ADMINISTRATION, ORGANISATION AND MANAGEMENT

The three terms administration, organisation and management are used interchangeably. It is
pertinent to know the differences and distinctions between these three terms.
According to William Schulze, “Administration is the force, which lays down the object for
which an organisation and its management are to strive and the broad policies under which
they are to operate. An Organisation is a combination of the necessary human beings,
materials, tools, equipment and working space, appurtenances brought together in systematic
and effective co-relation to accomplish some desired object. Management is that which
leads guides and directs an organisation for the accomplishment of pre-determined object.”

According to Oliver Sheldon, “Administration is the function in an industry in the

determination of the policy. Management is the function in an industry concerned with the
execution of policy within the limits set by administration and the employment of the
organisation for the particular objects set before it. Organisation is the formation of an
effective machine, management of an effective executive, administration of an effective
direction. Administration defines the goal; management strives towards it. Organisation is
the machine of management in its achievements of the ends determined by the
administration.”

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Some scholars of Public Administration are closely associated with the first view that is,
Administration is a determinative function. Management, on other hand is an executive
function that is primarily concerned with carrying out the broad policies laid down by the
administration. Organisation is the machinery through which coordination is established
between administration and management.

1.4 DEFINING PUBLIC ADMINISTRATION

Public Administration is an aspect of the larger field of administration. It exists in a political

system for the accomplishment of the goals and objectives formulated by the political
decision makers. It is also known as governmental administration because the adjective
‘public' in the word ‘Public Administration’ means ‘government’. Hence, the focus of Public
Administration is on public bureaucracy, that is, bureaucratic organisation of the
government.
Encyclopaedia Britannica defines Public Administration as ‘the application of a policy of a
state through its government.’
Public Administration, therefore, refers to that part of administration, which pertains to the
administrative activities of the government.

Now we will try to look into the definitions of Public Administration provided by various
scholars.

Woodrow Wilson
Public Administration is the detailed and systematic execution of law. Every particular
application of law is an act of administration He further says, “Administration is the most
obvious part of the government; it is the government in action; it is the executive, the
operative, the most visible side of the government.”

L.D. White
“Public Administration consists of all those operations having for their purpose the
fulfillment or enforcement of public policy.”

Percy Mc Queen
“Public Administration is related to the operations of government whether local or central.”

Luther Gulick
Public Administration is that part of the science of administration, which has to do with the
government; it concerns itself primarily with the executive branch where the work of the
government is done; though there are obviously problems also in connection with the
legislative and judicial branches.

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J.M Pfiffner
“Administration consists of getting the work of government done by coordinating the efforts
of people so that they can work together to accomplish their set tasks”

Dwight Waldo
“Public Administration is the art and science of management as applied to the affairs of the
State.”

H.A. Simon, D.W. Smithburg and V.A. Thompson

“By Public Administration is meant, in common usage, the activities of the executive
branches of national, state and local governments, Government corporations and certain
other agencies of a specialised Character. Specifically excluded are judicial and legislative
agencies within the government and non-governmental administration.”

Nicholas Henry
“Public Administration is a broad-ranging and amorphous combination of theory and
practice; its purpose is to promote a superior understanding of government and its
relationship with the society, it governs, as well as to encourage public policies more
responsive to social needs and to institute managerial practices attuned to effectiveness,
efficiency and the deeper human requisites of the citizenry”.
The traditional definitions of Public Administration, which are given above reflect the view
that the Public Administration is only involved in carrying out the policies and programmes
of the government. It reflect that it has no role in policy making and also locates the
administration in the executive branch but today the term Public Administration is used in a
broader sense that it is not only involved in carrying out the programmes of the government,
but it also plays an important role in policy formulation and covers the three branches of the
government.

F.A. Nigro and L.G. Nigro

According to them Public Administration 1) is co-operative group effort in a public setting
2) covers all three branches-executive, legislative, and judicial, and their inter-relationships
3) has an important role in the formulation of public policy and is thus a part of the political
process 4) is different in significant ways from private administration and 5) is closely
associated with numerous private groups and individuals in providing services to the
community”.
In sum, it can be analysed from the above definitions that Public Administration:
 Is the non-political public bureaucracy operating in a political system;
 Deals with the ends of the State, the sovereign will, the public interests and laws;
 Is the business side of government and as such concerned with policy execution, but it
is also concerned with policy-making;
 Covers all three branches of government, although it tends to be concentrated in the
executive branch;

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 Provides regulatory and service functions to the people in order to attain good life;
 Differs significantly from private administration, especially in its emphasis on the
public; and
 Is interdisciplinary in nature as it draws upon other social sciences like political science,
economics and sociology.

1.5 NATURE OF PUBLIC ADMINISTRATION

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

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

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

The difference between the two views relates to the difference between management and
operation or we may say between getting things done and doing things. The correct meaning
of the term administration would however, depend upon the context in which it is used.
Dimock, Dimock and Koening sum up in the following words:
“As a study Public Administration examines every aspect of government’s efforts to
discharge the laws and to give effect to public policy; as a process, it is all the steps taken
between the time an enforcement agency assumes jurisdiction and the last break is placed
(but includes also that agency’s participation, if any, in the formulation of the programme in
the first place); and as a vocation, it is organising and directing the activities of others in a
public agency.”

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1.6 SCOPE OF PUBLIC ADMINISTRATION

By the scope of Public Administration, we mean the major concerns of Public

Administration as an activity and as a discipline.

1.6.1 SCOPE OF PUBLIC ADMINISTRATION AS AN ACTIVITY

Broadly speaking, Public Administration embraces all the activities of the government.
Hence as an activity the scope of Public Administration is no less than the scope of state
activity. In the modern welfare state people expect many things – a wide variety of services
and protection from the government. In this context Public Administration provides a
number of welfare and social security services to the people. Besides, it has to manage
government owned industries and regulate private industries. Public Administration covers
every area and activity within the ambit public policy. Thus, the scope of Public
Administration is very wide in modern state.

1.6.2 SCOPE OF PUBLIC ADMINISTRATION AS A DISCIPLINE

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

the following:

The POSDCoRB view

Several writers have defined the scope of Public Administration in varying terms. Gullick
sums up the scope of the subject by the letters of the word POSDCoRB which denote:
Planning, Organisation, Staffing, Directing, Co-ordination, reporting the Budgeting.
Planning means the working out in broad outline the things to be done, the methods to be
adopted to accomplish the purpose. Organisation means the establishment of the formal
structure of authority through which the work is sub-divided, arranged, defined and
coordinated.

Staffing means the recruitment and training of the personnel and their conditions of work.
Directing means making decisions and issuing orders and instructions. Coordinating means
inter-relating the work of various divisions, sections and other parts of the organisation.
Reporting means informing the superiors within the agency to whom the executive is
responsible about what is going on. Budgeting means fiscal planning, control and
accounting.

According to Gullick, the POSDCoRB activities are common to all organizations. They are
the common problems of management which are found in different agencies regardless of
the nature of the work they do. POSDCoRB gives unity, certainty, and definiteness and
makes the study more systematic. The critics pointed out that the POSDCoRB activities
were neither the whole of administration, nor even the most important part of it. The

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POSDCoRB view overlooks the fact that deferent agencies are faced with different
administrative problems, which are peculiar to the nature of the services, they render and the
functions they performed. The POSDCoRB view takes into Consideration only the common
techniques of the administration and ignores the study of the ‘subject matter’ with which the
agency is concerned. A major defect is that the POSDCoRB view does not contain any
reference to the formulation and implementation of the policy. Therefore, the scope of
administration is defined very narrowly, being too inward looking and too conscious of the
top management.

The Subject Matter View

We all know that Public Administration deals not only with the processes but also with the
substantive matters of administration, such as Defence, Law and Order, Education, Public
Health, Agriculture, Public Works, Social Security, Justice, Welfare, etc. These services
require not only POSDCoRB techniques but also have important specialised techniques of
their own which are not covered by POSDCoRB techniques. For example, if you take Police
administration it has its own techniques in crime detection, maintenance of Law and Order,
etc., which are much and more vital to efficient police work, than the formal principles of
organisation, personnel management, coordination or finance and it is the same with other
services too. Therefore, the study of Public Administration should deal with both the
processes (that is POSDCoRB techniques and the substantive concerns). We conclude the
scope of Public Administration with the statement of Lewis Meriam: “Public Administration
is an instrument with two blades like a pair of scissors. One blade may be knowledge of the
field covered by POSDCoRB; the other blade is Knowledge of the subject matter in which
these techniques are applied. Both blades must be good to make an effective tool”.

We may conclude the discussion with the observation of Herbert Simon who says that Public
Administration has two important aspects, namely deciding and doing things. The first
provides the basis for the second. One cannot conceive of any discipline without thinking or
deciding. Thus Public Administration is a broad-ranging and an amorphous combination of
theory and practice.

1.7 IMPORTANCE OF PUBLIC ADMINISTRATION

Public Administration has occupied a pivotal role in society. Its importance can be
understood by the role it plays in the day to day life of human beings. The significance of
Public Administration is manifold. It takes the responsibility of addressing the issues of
citizens, it acts as a stabilizing force, it looks after the welfare of the people, it is the
responsibility of Public Administration in improving healthcare and education systems;
pursuing equality and social justice; supporting industry and economic growth, and
promoting community sustainability and environmental protection. However, for better
clarity we can divide basic activities of Public Administration i.e., as subject of study and as
an academic discipline and try to unravel its significance.

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1.7.1 IMPORTANCE OF PUBLIC ADMINISTRATION AS SPECIALISED SUBJECT

OF STUDY

The study of administration assumed significance, according to Woodrow Wilson, as a

consequence to the increasing complexities of society, growing functions of state and growth
of governments on democratic lines. This exhaustive list of functions made to think as to
‘how’ and in what ‘directions’ these functions should be effectively performed. To this
Wilson suggested that there was a need to reform the government in the administrative field.
As per Wilson, the object of administrative study is to discover what government can
properly and successfully does and how it can do these things with utmost efficiency and the
least possible cost either of money or of energy.

The importance of Public Administration as a specialised subject can be attributed to the

following reasons:
• One of the important reasons is the practical concern that the government today has to
work towards the public interest. The First and foremost objective of Public Administration
is to efficiently deliver public services. In this context, Wilsonian definition of the subject as
efficiency promoting and pragmatic field was the first explicitly articulated statement on the
importance of a separate discipline of Public Administration. During the first half of the
preceding century, a numbers of countries have appointed committees to look into the
problems of administration and recommended suitable administrative machinery to respond
to diverse public needs. The Haldane Committee Report (1919) in Britain; the President’s
Committee on Administrative Management (1937) in the United States; A.D. Gorwala
Committee’s and Paul H. Appleby’s Reports in India are some of the examples of the efforts
by various countries to make changes in Public Administration. During the last four decades
also, a number of reports, produced by committees/commissions appointed by governments
in various countries or multilateral agencies, and books published by scholars have enriched
the discipline and provided new perspectives to Public Administration to tune it to the
changing needs of the times. They include: Report of the Committee on The Civil Services
(Fulton Committee Report, U.K., 1968);Various reports of the Administrative Reforms
Commission (India, 1967-72); Reinventing Government (U.S.A., look by David Orborne
and Ted Gabler, 1992), Governance and Sustainable Development (UNDP, 1997) and World
Development Report: Building Institutions for Markets (The World Bank, 2002).

• Administration is looked at, in the social science perspective, as a cooperative and social
activity. Hence the concern of academic inquiry would be to understand the impact of
government policies and operations on society. What kind of society do the policies
envisage?; To what extent administrative action is non-discriminatory?; How is Public
Administration functioning and what are the immediate and long term effects of
governmental action on the social structure, the economy and polity?; etc. are questions
requiring careful analysis. From the social science perspective, Public Administration, as a
discipline, has to draw on a variety of sister disciplines such as History, Sociology,
Economics, Geography, Philosophy, Psychology, etc., with the objective to explain and not
just to prescribe.

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• Public Administration has a special status in the developing countries. Many of these
countries, after independence from the colonial rule have stressed upon speedy socio –
economic development. Obviously, these countries have to rely on government for speedy
development. The latter requires a Public Administration to be organised and effectively
operated for increasing productivity quickly. Likewise, social welfare activities have to be
effectively executed. These aspects have given birth to the new sub-discipline of
development administration. The emergence of development administration is indicative of a
felt need for a body of knowledge about how to study the third world administration and at
the same time to bring about speedy socio-economic development with government’s
intervention. Development administration has therefore, emerged as a sub-discipline to serve
the cause of development.

• Public Administration, as witnessed holds a place of significance in the lives of people. It

touches them at every step. For most of their needs, the citizens depend upon Public
Administration. In view of the important role of Public Administration in the lives of people,
the citizens of a country cannot ignore. Therefore, its teaching should become a part of the
curriculum of educational institutions. People must get to know about the structure of
government, the activities it undertakes and the manner in which these are actually
performed. The study of Public Administration will contribute to the realisation of the values
of citizenship.

1.7.2 IMPORTANCE OF PUBLIC ADMINISTRATION AS AN ACTIVITY

The contemporary age, which has witnessed the emergence of ‘Administrative State’, Public
Administration has become an essential part of society and a dominant factor. The functions
it is called upon to perform, have expanded in scope and nature, and what is more, are
continually increasing. Many of them are more positive in nature because they care for the
essential requirements of human life, be it health, education, recreation, sanitation, social
security or others. It is, therefore, a creative factor, with its motto being ‘human welfare’.
These functions are over and above its regulatory functions. The view points of eminent
scholars, as referred to below, amply reflect the significance of Public Administration.
Woodrow Wilson: “Administration is the most obvious part of government; it is
government in action, it is the executive, the operative and the most visible side of the
government.”
Brooke Adams: “Administration is an important human faculty because its chief function is
to facilitate social change and to cushion the stock of social revolution”.
W.B. Donham, ‘If our civilization fails, it will be mainly because of breakdown of
administration’.
Paul H. Appleby: ‘Administration is the basis of government. No government can exist
without administration. Without administration government would be a discussion club, if
indeed, it could exist at all’.

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The role of Public Administration in various facets is noted below:

• Basis of the Government: A Government can exist without a legislature or an independent
judiciary. But no Government can exist without administration.
• An instrument for providing services: Public Administration is mainly concerned with
the performance of various activities performed by government in the public interest. Felix
A. Nigro aptly remarks, “The real core of administration is the basic service which is
performed for the public”
• An instrument for implementing policies: Modern governments go a long way in
formulating and adopting sound policies laws and regulations. It should not be forgotten that
such policies, laws, etc. are not merely printed papers. Such paper declarations of intent are
translated into reality by Public Administration thus converting words into action and form
into substance.
• A stabilising force in society:
Public Administration is a major force for bringing stability in society. It has been observed
that though government often changes, but violent change is seldom experienced by
administration. An element of continuity between the old and the new orders is provided by
Public Administration. It does not hold true only of constitutional changes of government in
democratic countries, but is also reflected when there are revolutionary changes in the form
and character of government.
• An instrument of social change and economic development:
Public Administration’s role as a change agent is particularly crucial in developing nations.
It is expected of the state at present to work for accelerating socio-economic change and not
to be a passive agency to maintain the status quo.
• Technical Character:
The present day government is expected to provide various services to its population. The
increase in the number of functions undertaken by the government requires highly
specialised, professional and technical, services. Modern Public Administration usually
represents a galaxy of all of a nation’s occupations.
According Gerald Caiden Public Administration has assumed the following crucial roles in
contemporary modern society:

 Preservation of polity;
 Maintenance of stability and order;
 Institutionalisation of Socio-Economic changes;
 Management of large scale commercial services;
 Ensuring growth and economic development;
 Protection of the weaker sections of society;
 Formation of public opinion; and
 Influencing Public policies.

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The points mentioned below summaries the reasons for the growing importance of Public
Administration:

• Emergence of Welfare and Democratic state

Emergence of welfare and democratic state has led to an increase in the activities of Public
Administration compared to that of the laissez-faire state. The state has to now serve all
sections of people in the society. This amounts to enhanced responsibilities of Public
Administration. Public Administration is also to regulate and control private economic
enterprises to meet the objectives of the state.
• Industrial Revolution
The industrial revolution gave rise to socio-economic problems making the government to
assume new roles and responsibilities such as protection and promotion of the rights of
workers in industrial establishments, etc. Consequently, the state has enacted a number of
Industrial and Labour laws and it is imperative for Public Administration to implement such
laws in order to meet the requirements of labour welfare.
• Scientific and Technological Development
Scientific and technological developments have brought about welcome additions in
infrastructure such as power, transport and communication system. The invention of
telephone, telegraph and other mechanical devices such as typewriter, tale-printer, and
calculators, photocopying machines, computers, fax and the electronic mail has brought
revolutionary changes in office administration. All these have made possible ‘big
government’ and ‘large scale administration’. Besides changing the ethos and character of
Public Administration, the revolution in information and communication technologies have
contributed to improved delivery of services to people.
• Economic Planning
Centralised economic planning has been pursued in many developing countries as a method
for socio-economic development. It requires a large number of experts and elaborates
administrative machinery for plan formulation, implementation, monitoring, and evaluation.
Apart from the reasons cited the rapid growth of population, modern warfare, increase in
natural and manmade disasters, decline in social harmony, increase in violence due to
conflicts, communal riots, ethnic wars, terrorism, etc. have increased the importance of
Public Administration.

It goes without saying that Public Administration is not only the operative but also the most
obvious part of the government. It is government in action and occupies a significant place
not merely as an instrument of governance but also as an important mechanism for
preserving and promoting the welfare of community. It has substantive impact upon the life
of the people. It is a vital process charged with implementation of pre-determined, welfare
oriented, and developmental objectives.

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1.8 ROLE OF PUBLIC ADMINISTRATION UNDER

LIBERALISATION, PRIVATISATION AND GLOBALISATION (LPG)

Since the 1980s a number of countries, have been influenced by the concept of liberalisation,
privatisation and globalisation. In the 1980s India has also started the process of
liberalisation, privatisation and globalisation (LPG). One form of LPG has entrusted the
management of public sector enterprises partially or fully to private companies. Another
form of LPG is disinvestment in public sector enterprises, which is followed in India. As a
result of this the public sector enterprises find themselves in a competitive and challenging
environment. However, the role of Public Administration under LPG continues to quite
significant. It requires dismantling of a regime of regulations, controls, restrictions, licences,
secrecy and delay. The bureaucracy has to play an investor friendly, responsive, transparent,
open and competitive role. So, this requires necessary administrative reform, which should
aim at elimination of redundant practices, procedures, administrative laws and corruption.
Thus, the policy of LPG affects the role, values and skills of public bureaucracy. It also
decreases the scope of the functions of the state, resulting in minimum of state interference
in the lives of the individuals. The state is called upon to oversee the operational side of the
enterprises. This gives the state a new role as regulator.

Today, the role of Public Administration is towards more of governance, then of direct
involvement. The Public Administration has to play enabling, collaborative, cooperative,
partnership and regulatory roles. Coming to the core areas such as defence, atomic energy,
law and order, foreign policy it has a direct role to play. In certain other areas such as
telecommunications, airlines, insurance, etc., it has to compete with the private sector, for
which there should be regulatory commissions to provide for equal level playing fields for
both the sectors. There are other areas which it can have partnership with the citizens for
efficient delivery of services, for example, maintenance of schools, hospitals, irrigation
water and civic amenities. An example we can give is the ‘Bhagidari Scheme’ adopted by
the Delhi Government. In certain areas like electricity, water and transport it can have
partnership with the private sector. A number of states have partnership with the private
sector in providing these services. Other such areas are protection of forests, empowerment
of women, micro credit, health schemes, and awareness programmes; it can have partnership
with the Non Governmental (NGO) and Voluntary Organisations.

In analysing the emerging role of Public Administration in the new millennium, we are
dealing with governance. And governance implies that Public Administration has to operate
in a wider context and coordinate efforts and activities of the governmental agencies at
various levels with that of the market/the private sector, civil society groups, NGOs and
contextual participant or elected local government bodies, self-help groups, etc. The role and
character of Public Administration had seen a major transformation. Although it appears that
its directly handled operations have declined in that its directly handled operations have
declined in some of the non-traditional areas, Public Administration has to provide synergy
and direction for many collaborative, cooperative and regulatory activities with other
segments of the society. The accent is also on promotion of greater public participation. Yet,

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it is still accountable for the outcomes of all the activities in which it participates directly or
indirectly.

1.9 SUMMARY

In this unit we have identified meaning, nature and scope and basic differences between
Public and Private Administration. Emphasis is placed on discussing the importance of
Public Administration as a subject of study and as an academic discipline. As an activity
Public Administration is as old as civilization but as an academic discipline Public
Administration is just over hundred years. The significance of Public Administration
depends upon the nature of State. When the nature of State was laissez-faire, Public
Administration used to play a limited role. The adoption of welfare state concept after
Second World War changed the nature of State from laissez-faire to welfare resulted in
enhanced role of Public Administration and its activities. In a welfare state Public
Administration took the responsibility of looking after the welfare of people from womb to
the tomb. Means no activity was left untouched by the Public Administration. In its
embryonic stage, Public Administration was primarily concerned with the regulation of
group action and moulding of behaviours. At a later stage it undertook to cater to general
welfare and also promotion of human happiness. Public Administration has gained immense
importance since the emergence of Administrative State. Its functions both in the capitalist
and the socialist states have become manifold. It is an instrument not only for protecting and
restraining but also fostering and promoting.

In developing democracies like India which are striving utmost to ameliorate the lot of the
teeming millions Public Administration has become the ininstrument of change and
development and powerful agency for effecting national integration.
With the ushering in of era of welfare states, the administration is construed as a “moral act”
and “administrator a moral agent”. Public Administration has become the machinery for
formulating plans and programmes and carrying them out. All this clearly reflects that Public
Administration is imperative for all societies-developed or developing, dictatorial or
democratic.

1.10 KEY WORDS

1. Equality: The idea that all persons have an equal claim to life, liberty, and the pursuit of
happiness.
2. Globalisation: The process of globalisation not only includes opening up of world
trade, development of advanced means of communication, internationalisation of
financial markets and services, growing importance of multinational corporations,
population movements and, more generally, increased mobility of persons, goods,
capital data and ideas, but also of infectious diseases and environmental problems like
pollution.

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3. Liberalisation: A process of freeing the economy, from various Governmental

regulations such as industrial licensing, controls on pricing and distribution of products
and services, imports and exports and foreign exchange regulations; control of capital
issues by companies; credit controls, restriction on investment, etc., so that the
development and operation of the economy is increasingly guided by freely operating
market forces. Thus liberalisation is essentially a process of withdrawal of all direct
controls on the economy.
4. Privatisation: It means transfer, from the public to the private sector, of ownership or
control over assets or activities. Privatisation fosters efficiency, encourages investment
and thus new growth and employment and frees public resources for development of
infrastructure and social programmes.
5. Red Tape: The ribbon that was once used to bind government documents; the term now
stands as the symbol of excessive official formality and over attention to prescribed
routines.
6. Regulation: The totality of government controls on the social and economic activities
of its citizens; the rule making process of those administrative agencies charged with
the official interpretation of laws.
7. Synergy: The enhanced result of two or more people, groups or organisation working
together. In other worlds one of one equals three! it comes from the Greek “Synergia”,
which means joint work and cooperative action. The word is used quite often to mean
that combining forces produces a better product.

1.11 MODEL QUESTIONS

1. Consider public administrative operations with which you have recently dwelt or are
familiar as a functionary or as a citizen.
2. Discuss the meaning and Scope of Public Administration.
3. Explain the significance of Public Administration.
1.12 REFERENCES
 Pugh, D.S; 1985, Organisation Theory: Selected Readings (Ed), Penguin Books,
Middlesex, England
 Prasad, D. Ravindra, V.S. Prasad and P. Satyanarayan, 2004, Administrative Thinkers (Ed),
Sterling Publishers, New Delhi.
 Bhattacharya, Mohit, 1998, New Horizons of Public Administration, Jawahar Publishers &
Distributors, New Delhi.
 Marc Holzer & Richard W. Schwester (ED), ‘Public Administration: An Introduction’,
Routledge, England, UK, 2019.
 Jay Shafritz & E. W. Russell (et al), Introducing Public Administration, Routledge Jay
Shafritz (Author), E. W. Russell (Author), 2016
 Baker, R.J.S., 1972, Administrative Theory and Public Administration, Hutchinson
University Library, London.
 Bertram, M. Gross, 1964, The Managing of Organisations, The Administrative Struggle,
The Free Press of Glencoe, Collier Macmillan., London.

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 Denhardt, Robert B. and Joseph W. Grubbs, 2003, Public Administration: An action

Orientation, Fourth Edition, Thomson (Wadsworth), Canada.
 Sharma, M.P. and B.L. Sardana, 1988, Public Administration in Theory and Practice, Kitab
Mahal, New Delhi. Srivastava,
 Om Prie, 1991, Public Administration and Management, The Broadening Horizons,
Volume 1, Himalaya Publishing House, Delhi

1.12 ADDITIONAL READINGS

 Public Administration Foundations (2017) by Brundage, V
 Public Administration in Action (2021) by Nicholas, R. M., & Louis, E.
 Handbook of Public Administration (2018) by McKinney, M. D., & Drury, M. R.
 Public Administration Theory (2020) by Finer, H
 Modernizing Public Administration (2019) by Kettl, D. F., &Svara, J

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Unit-2 Evolution of Public Administration

Structure:
2.0 Learning Objectives
2.1 Introduction
2.2 Phase I -Politics-Administration dichotomy (1887–1926)
2.3 Phase II -Principles of Administration (1927–1937)
2.4 Phase III-Era of Challenges (1938-1947)
2.5 Phase IV- Crisis of Identity (1948-1970)
2.6 Phase V- Public Policy Perspective (1970-1990)
2.7 Phase VI - (1991-present)
24.8 Study of public administration in India
2.9 Summary
2.10 Key Words
2.11 Model questions
2.12 References
2.13 Additional Readings

2.0 LEARNING OBJECTIVES

After reading this chapter, the learners will be able to:
 To understand the historical development of Public Administration as a discipline.
 To examine the key phases in the evolution of Public Administration theory and
practice.
 To critically analyze the changes in Public Administration over time and how these
shifts influenced governance and management.
 To explore how each phase of Public Administration addresses the challenges of its
time.

2.1 INTRODUCTION
The term "Public Administration" can be understood from two key perspectives. First, it
refers to the process of managing government affairs, such as maintaining law and order.
Second, it is intertwined with various academic fields like sociology, political science,
economics, and philosophy. The formal study of Public Administration began in the 19th
century, largely due to the contributions of Woodrow Wilson, who is considered the father
of the discipline. Wilson was instrumental in advocating for the separation of Public
Administration from politics, allowing the field to develop as a distinct area of study. His
pivotal work, the article "The Study of Administration", published in 1887 in the Journal of
Administration Science Quarterly, marked the beginning of a new era for Public
Administration as an academic discipline. Following this, Public Administration gradually
evolved into a distinct field of study, gaining prominence in universities around the world.
Despite facing numerous challenges, the development of Public Administration has been
marked by several phases, each contributing to its growth as a separate social science
discipline. These phases can be categorized into the following six stages:

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2.2 Phase I- Politics-Administration Dichotomy (1887–1926)

The first phase of Public Administration, known as the era of the politics-
administration dichotomy, began with Woodrow Wilson’s 1887 article “The Study of
Administration.” Wilson’s work laid the groundwork for Public Administration as a distinct,
systematic field of study, advocating for a clear separation between politics and
administration. He argued that politics and administration have different functions: politics
involves the formulation of policies, while administration focuses on implementing those
policies. Wilson’s famous assertion was that "administration falls outside the defined sphere
of politics," meaning administrative decisions should not be influenced by political agendas,
even though political decisions set the administration's goals. He also stressed that Public
Administration should be studied scientifically, with an empirical and comparative
approach, to understand its principles across different countries and contexts. The discipline,
according to Wilson, should be viewed as a science of administration, focusing on
efficiency, effectiveness, and innovation in governance.

• Easing the paths of the government,

• To make administrative work more business-like,
• To make the organization strong and pure.

The first phase in the evolution of Public Administration primarily focused on

establishing the discipline as a distinct area of study. Woodrow Wilson advocated for Public
Administration to be recognized as a separate field, grounded in research, training, and
comparative analysis. He argued that administration was more complex than politics, citing
that it was more challenging to run a government than to simply frame its Constitution.
Wilson's concept of the politics-administration dichotomy was further developed by Frank J.
Goodnow, who, in his book Politics and Administration, highlighted the clear distinction
between the two. According to Goodnow, politics involves the formulation of policies and
the expression of the state's will, while administration is concerned with executing those
policies. In 1926, L. D. White’s Introduction to the Study of Public Administration —
regarded as the first comprehensive book on the subject — also embraced the separation of
politics and administration, solidifying the foundation of Public Administration as an
independent academic discipline.

2.3 Phase II -Principles of Administration (1927–1937)

In the second phase of the evolution of Public Administration, the field continued to
develop as a distinct discipline. Scholars emphasized that certain administrative principles
were universally applicable across various organizations, including governmental ones.
These principles, they argued, could enhance the effectiveness of Public Administration by
providing a standardized framework for its functioning. The second phase was marked by
the publication of William F. Willoughby’s book Principles of Public Administration in
1927, in which he asserted that "there are certain principles in administration that are applied
universally, much like the principles in any science." Willoughby’s work reinforced the idea

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of Public Administration as a scientific discipline, grounded in universally accepted

principles that could be systematically applied to improve administrative practices.

Other important publications of this phase are as follows:

• General and Industrial and Management by Henri Fayol in 1916,
• Creative Experience by M. P. Follett in 1924,
• Onward Industry by Mooney and Reiley in 1931,
• Papers on the Science of Administration by Gulick and Urwick in 1937, and The
Principles of Organization by Mooney and Reilly in 1939.

The second phase of the evolution of Public Administration reached its peak in 1937
with the publication of Gulick and Urwick’s influential papers on the Science of
Administration. In these works, they introduced the concept of POSDCORB, which stands
for Planning, Organizing, Staffing, Directing, Coordinating, and Reporting, and budgeting—
key functions of administration. This phase is often considered the "golden era" in the
development of Public Administration, as it solidified the discipline’s scientific foundation
and provided a systematic approach to understanding administrative functions.

2.4 Phase III Era of Challenges (1938–1947)

The third phase of the evolution of Public Administration, spanning from 1938 to
1947, was marked by significant challenges to the principles of administration. Human
relations scholars criticized the established administrative principles, likening them to mere
proverbs and idioms, which weakened their practical relevance. This period is often
considered a "destructive" phase in the history of Public Administration due to the lack of
theoretical development and research. Herbert Simon, a key figure in the neo-classical
school, argued in his book Administrative Behavior that there are no universal principles of
administration. According to the human relations approach, concepts like principles, rules,
and scientific management were seen as neutral tools, rather than definitive solutions for
improving organizational effectiveness. Scholars during this phase emphasized that social
and environmental factors, rather than just scientific management techniques, played a
crucial role in ensuring organizational efficiency. Despite these criticisms, the third phase
contributed to the growth of Public Administration by challenging established ideas, which
ultimately opened new avenues for research and theoretical development in the field.

The major publications of this period that challenged principles of administration are
as follows:
• The function of the Executive by C.I. Barnard in 1938,
• Elements of Public Administration by F. Marx (ed.) in 1946,
• The Proverbs of Administration by Herbert A. Simon in 1946,
• Administrative Behavior by Herbert A. Simon in 1947,
• The Science of Public Administration: Three Problems by Robert Dal in 1947,
Herbert A. Simon was the most important critic of the principles of administration.
He called them ‘proverbs’ and ‘idioms’. He advocated a behavioural approach to make
public administration a more scientific discipline. He focused on decision-making as an

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alternative to the classical theory approach. Simon rejected the concept of the politics
administration dichotomy and suggested an empirical approach to the study of public
administration.
2.5 Phase IV -Crisis of Identity (1948–1970)

The third phase of Public Administration is often regarded as a revolutionary or

crisis period, as many of its foundational achievements were questioned or not fully
recognized. During this time, Public Administration faced significant challenges to its
identity, with scholars taking two main directions: first, some argued that Public
Administration should be integrated into political science as a subfield, emphasizing its
connection to politics; second, others sought alternative approaches to the study of
administration. Those in favor of aligning Public Administration with political science
believed it was inherently derived from politics and should be viewed as part of it. This led
to an identity crisis for Public Administration, as it struggled to establish itself as a distinct
discipline. In response to this crisis, a new direction emerged known as Administrative
Science, which sought to provide a more scientific and practical framework for the study of
administration. To address the evolving challenges, Public Administration gradually became
recognized as an interdisciplinary field, with various subfields emerging, including:

• Comparative Public Administration by F.W Riggs and others

• Development Administration by Edward Weidner, F.W Riggs
• Administrative Development by F.W Riggs.

In 1968, a pivotal conference was held at Minnowbrook, where a group of young

scholars gathered to explore innovative ideas for the future of Public Administration. This
event led to the formulation of the New Public Administration concept, which emphasized a
more responsive, citizen-centered approach to administration, focusing on social equity and
public accountability. Shortly after, the concept of Development Administration emerged,
marking a paradigm shift in the field, particularly in developing countries. This approach
focused on how Public Administration could contribute to the developmental goals of newly
independent nations, emphasizing the role of administrative systems in promoting economic
and social progress.

2.6 Phase V-Public Policy Perspective (1970-1990)

During the fourth phase of Public Administration's evolution, criticisms and
challenges were viewed as beneficial, prompting scholars to explore its multifaceted
progress. A significant development during this phase was the emergence of a public policy
perspective, with scholars delving into areas such as policy science, political economics, and
policy analysis. This shift led to the recognition of public policy as an integral aspect of
Public Administration, rendering the traditional politics-administration dichotomy obsolete.
Dwight Waldo noted that the separation between politics and administration had become an
outdated concept. Robert T. Golambiewski identified two primary themes in this phase:
explaining politics and administration at various levels, and the programmatic nature of

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administration. Scholars from this phase argued that adopting a public policy approach made
Public Administration more interdisciplinary, socially relevant, and expanded its objectives.
2.7 Phase-VI (1991-Present)
The final stage in the evolution of Public Administration began with the era of
liberalization, privatization, and globalization (LPG). Following 1991, new concepts such as
public management and good governance emerged as key subjects within Public
Administration. The notion of "good governance" gained prominence during the 1994
Commonwealth Association of Public Administration and Management conference. This
phase saw the rise of individualism, competitiveness, and the involvement of private
enterprises in Public Administration, aiming to extend essential services to those in need.
Key developments included the introduction of New Public Management (NPM), good
governance, Memorandums of Understanding (MoU), Build-Operate-Transfer (BOT), and
Public-Private Partnerships (PPP). Public Administration began to be viewed from a
managerial perspective, while the ongoing debate between the role of the state and the
market became a focal point in the field. Following are the major thrust area of the Public
Administration which could be focused after 1991:
• Development of managerial tendencies in Public Administration.
• To limit, but enable the public role to achieve good governance.
• Development of professionalization in administration.
• To make The Public Administration competitive.
• The public Choice Approach has been started in Public Administration.
2.8 Study of Public Administration in India
The following points can be noted concerning the rise and development of teaching and
research in public administration in India:
 In the 1930s, Lucknow University became the first one in India to have included a
full-compulsory paper on public administration in the M.A. Political Science
syllabus.
 In 1937, Madras University became the first one in India to have started a diploma
course in public administration.
 In 1949-1950, Nagpur University became the first one in India to have a separate
full-fledged department of public administration and local self-government. With
this, public administration was invested in India, for the first time, with full academic
legitimacy. This department was headed by the late Dr. M.P. Sharma who led the
distinction of being the first professor of public administration in India. • In 1954, the
Indian Institute of Public Administration (IIPA) was established in New Delhi on the
recommendation of the Paul H. Appleby Report on Public Administration in India
(1953). It is the nucleus of administrative research in India and disseminates the
knowledge of public administration through its Indian Journal of Public
Administration (IJPA).
 In 1987, public administration was introduced as a fully-independent subject in the
Civil Services examination conducted by the UPSC. This gave a powerful impetus to
the subject.
 Today, nearly 5o Universities, hundreds of colleges and a nuclear of training

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institutes are engaged in teaching and research in public administration in India

2.9 SUMMARY

Woodrow Wilson is credited with founding Public Administration as a distinct

academic discipline. In his 1887 article, "The Study of Administration," Wilson emphasized
the importance of developing a scientific basis for the field, marking the beginning of Public
Administration's journey as an independent area of study. Over time, the discipline evolved
through six key phases, each contributing to its development and shaping its current form.

The first phase of Public Administration's evolution focused on establishing the

separation between politics and administration. Scholars in this period argued that
administration should be neutral and separate from political influence to ensure efficiency
and effectiveness in governance. This distinction was seen as essential for maintaining order
and objectivity in public administration.

The second phase was marked by the belief that Public Administration could be
treated as a science, governed by universal principles. Scholars of this phase, such as the
classical theorists, asserted that these principles should be applicable across all sectors,
whether public or private. They advocated for a systematic approach to administration that
relied on established rules and standards, similar to those in the natural sciences.

The third phase, often referred to as the "era of challenges," was characterized by
criticism of the rigid application of administrative principles. American scholar Herbert
Simon was a central figure during this phase. He argued that the principles of Public
Administration were overly simplistic and akin to "proverbs" or "idioms." Simon and others
challenged the notion that administration could be reduced to a set of fixed rules, urging a
more flexible and practical approach to administrative theory.

The fourth phase, often called the "identity crisis" period, dealt with the struggle to
define the true nature of Public Administration. Scholars during this time questioned the
subject's boundaries and its relationship with other disciplines, leading to a crisis in its
identity. The main issue was how to maintain Public Administration's relevance and
distinctiveness in the face of changing political and social landscapes.

From 1971 onwards, Public Administration saw significant progress. The subject
gained more prominence and scholars from a range of disciplines—such as economics,
sociology, psychology, and political science—began to take an interest in it. This
interdisciplinary approach broadened the scope of Public Administration, allowing for a
more comprehensive understanding of governance and administration. Scholars recognized
that Public Administration could no longer be confined to just one theoretical framework; it
had to incorporate diverse perspectives to address complex societal issues.

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The final phase of Public Administration's evolution began after 1991, with the rise
of liberalization, privatization, and globalization (LPG). This period introduced concepts
such as New Public Management (NPM), good governance, and public-private partnerships.
Public Administration increasingly focused on decentralization, efficiency, effectiveness,
and inclusivity, with particular attention to issues like gender equality, economic
development, and social justice. The subject also adopted a more managerial and results-
oriented approach, aligning itself with the evolving needs of the modern world. The State
versus market debate became central to the discourse, with questions about the role of
government versus private enterprises in public service delivery.

Public Administration's evolution reflects the discipline's ability to adapt and grow in
response to changing political, social, and economic conditions. From its early roots in the
study of administration to its modern interdisciplinary and dynamic approach, Public
Administration continues to evolve, addressing the complex challenges of governance in the
contemporary world.
2.10 KEY WORDS

Politics-Administration The theory that politics and administration should be

Dichotomy separate, with politics focusing on policy-making and
administration on implementation.
Public Policy The process through which governments create, implement,
and evaluate laws, regulations, and actions to address societal
issues.
New Public Management A management approach in public administration that
emphasizes efficiency, privatization, and market-based
principles to improve government performance.
Governance The structures, processes, and interactions through which
public and private sector entities make decisions and manage
public resources.
Crisis of Identity A period of uncertainty or confusion within Public
Administration regarding its role, objectives, and theoretical
foundations.

2.11 Model Questions

 Discuss how the Politics-Administration Dichotomy proposed by Woodrow
Wilson influenced early public administration theory. How is this model relevant in
today’s administrative environment?
 Analyze the Principles of Administration as presented by Gulick and Urwick. How
do their ideas still influence contemporary management practices in the public
sector?
 What were the major challenges faced by public administration in the Era of
Challenges (1938-1947)? How did these challenges shape the field?

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 In what ways did the Crisis of Identity phase (1948-1970) influence the shift from
administrative theory to a focus on human behavior and political dynamics?
 How does the Public Policy Perspective (1970-1990) redefine the relationship
between policy and administration? Discuss its impact on contemporary public
administration.

2.12 REFERENCES
 Wilson, W. (1887). The study of administration. Political Science Quarterly, 2(2),
197-222. https://doi.org/10.2307/2139253
 Gulick, L., &Urwick, L. (Eds.). (1937). Papers on the science of administration.
Institute of Public Administration.
 Lasswell, H. D. (1936). Politics: Who gets what, when, how. Whittlesey House.
 Waldo, D. (1948). The administrative state: A study of the political theory of
American public administration. The Ronald Press.
 Simon, H. A. (1947). Administrative behavior: A study of decision-making processes
in administrative organizations. Free Press.
 Kettl, D. F. (2002). The global public management revolution: A report on the
transformation of governance. Brookings Institution Press.
 Hood, C. (1991). A public management for all seasons? Public Administration,
69(1), 3-19. https://doi.org/10.1111/j.1467-9299.1991.tb00779.x

2.13 ADDITIONAL READINGS

 Denhardt, R. B., &Denhardt, J. V. (2015). Public administration: An action
orientation (8th ed.). Cengage Learning.
 Osborne, D., &Gaebler, T. (1992). Reinventing government: How the
entrepreneurial spirit is transforming the public sector. Addison-Wesley.
 Kettl, D. F. (2000). The transformation of governance: Public administration for the
twenty-first century. Johns Hopkins University Press.

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Unit-3 POLITICS-ADMINISTRATION DICHOTOMY,

PUBLIC VS. PRIVATE ADMINISTRATION
Structure:
3.0 Learning Objectives
3.1 Introduction
3.2 Politics-Administration Dichotomy
3.3 Distinction Between Public and Private Administration
3.4 Similarities Between Public and Private Administration
3.5 Summary
3.6 Key Words
3.7 Model Qquestions
3.8 References
3.9 Additional Readings

3.0 LEARNING OBJECTIVES

After reading this chapter, the learners will be able to:
 Analyse the Politics-Administration Dichotomy
 Understand the key differences between public and private administration.
 Explore the similarities between these two forms of administration.
 Critically evaluate how the principles and practices of both sectors differ in terms of
goals, structure, and methods.

3.1 INTRODUCTION
Public administration refers to the management and operation of government
agencies and public services, while private administration pertains to the management of
non-governmental entities such as businesses. The two types of administration differ
primarily in their environment, with public administration operating within a governmental
context and private administration functioning within business settings. Scholars like Paul
H. Appleby, Sir Josiah Stamp, Herbert A. Simon, and Peter Drucker have highlighted key
distinctions between the two, with Appleby identifying three major differences: the political
nature of public administration, its broader scope and impact, and its accountability to the
public.

3.2 POLITICS-ADMINISTRATION DICHOTOMY

The primary focus of administration is to efficiently organize both human resources and
materials to achieve desired objectives. Administration, as a cooperative activity, is
universal and takes place in both public and private organizations. Its nature varies
depending on the institutional setting and the specific goals it seeks to accomplish. Public
administration refers to the management and organization of government functions, focused
on fulfilling the objectives set by the state. In contrast, private administration involves

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managing and organizing private business entities, with distinct goals separate from those of
public administration.

 Politics-Administration Dichotomy
The Politics-Administration Dichotomy is a concept in public administration theory that
suggests a clear separation between the political and administrative functions of government.
It argues that elected officials (politicians) should make decisions related to policy (politics),
while the career civil servants (administrators) should implement these policies
(administration) without being influenced by political considerations.

The dichotomy was first formally articulated by the American scholar Woodrow Wilson in
his 1887 essay, "The Study of Administration." Wilson argued that for good governance, the
political and administrative spheres should be distinct. Politicians create laws and set policy,
while administrators apply these policies in a neutral and efficient manner, executing
decisions without political bias.

Key Points of the Politics-Administration Dichotomy:

1. Political Decisions vs. Administrative Decisions:

 Politicians are responsible for making decisions about public policy based on
political ideologies, public opinion, and party platforms.
 Administrators are tasked with implementing these policies, using technical
knowledge, expertise, and neutrality to manage day-to-day operations.
2. Neutrality of Bureaucracy: Bureaucrats are expected to remain neutral and avoid
political influence, ensuring that the implementation of policies is consistent and
efficient, regardless of the party in power.
3. Separation of Powers: The dichotomy implies that the separation of powers
between politics and administration creates a balance that allows both the political
and administrative arms of government to function smoothly without one interfering
with the other.
4. Efficiency and Objectivity: According to the dichotomy, by maintaining a
separation, the administrative function can be more focused on efficiency and
objectivity, without being swayed by political pressures or ideologies.

Criticism of the Dichotomy:

Over time, scholars and practitioners of public administration have questioned the strict
separation proposed by Wilson, arguing that the lines between politics and administration are
not as clear-cut as he suggested. Some of the key criticisms include:

1. Interdependence: In reality, political decisions often influence administrative

actions, and administrators may shape policy through their expertise, decisions, and
advice to politicians. Politics and administration are often intertwined rather than
distinct.
2. Political Influence on Bureaucracy: Bureaucrats may have political biases or
agendas, or they may be influenced by the party in power, especially in areas like
budgeting, appointments, or policy recommendations.

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3. Implementation Challenges: Some argue that administrators cannot be completely

neutral because they often interpret policies and make discretionary decisions during
implementation, which can have political implications.

Modern Views:
Today, many scholars view the Politics-Administration Dichotomy as an ideal type or
theoretical framework, rather than a strict, practical guideline. In modern governance, there
is more recognition of the blurred boundaries between politics and administration. For
instance, public administrators may participate in policy formulation, and elected officials
often rely on bureaucrats to craft and implement complex policies.

Nonetheless, the concept still holds value in some areas, especially in advocating for the
professionalization of the civil service, accountability in government administration, and
ensuring that public servants maintain a degree of neutrality when carrying out their duties.

3.3 DISTINCTION BETWEEN PUBLIC AND PRIVATE

ADMINISTRATION
In their writings, scholars such as John Gaus, Ludvig Von Mises, Paul H. Appleby, Sir
Josiah Stamp, Herbert A. Simon, and Peter Drucker have outlined key differences between
public and private administration.

According to Simon, the distinction between public and private administration relates
mainly to three points: Public Administration is bureaucratic whereas private administration
is business-like; Public Administration is political whereas private administration is non-
political; and Public Administration is characterized by red tape whereas Private
administration is free from it.
Felix A. Nigro has pointed out that government is also different from private organisations,
as no private company can be equal to it in size and diversity of activities. According to Sir
Josiah Stamp, the four principles, which differentiate public from private administration, are:
• Principle of Uniformity: Common and uniform laws and regulations mostly
regulate Public Administration.
• Principle of External Financial Control: The representatives of the people through a
legislative body control Government revenues and heads of expenditure. Principle of
Ministerial Responsibility: Public Administration is accountable to its political masters and
through them to the people.
Principle of marginal Return: The main objective of a business venture is profit,
however small it may be. However, most of the objectives of Public Administration can
neither be measured in money terms nor checked by accountancy methods.
According to Paul H. Appleby, Public Administration is different from private
administration. He remark, “In broad terms, the governmental function and attitude have at
least three complementary aspects that go to differentiate government from all other
institutions and activities: Breadth of scope, impact and consideration; public accountability;
Political character. No non-governmental institution has the breadth of government.

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Appleby emphasizes that the political nature of Public Administration is what sets it apart
from private administration. He argues that Public Administration is inherently subject to
political guidance and oversight, making it a distinct entity. As he puts it, "Administration is
politics" because it must always be responsive to public interests. He further asserts that the
political processes essential to democracy can only function through governmental
organizations, which are not just administrative bodies but political organisms by nature.

Additionally, Appleby highlights the significant role of public accountability in

differentiating Public Administration from private enterprises. He notes that government
actions are subject to much more public scrutiny than private sector activities, often
involving details that would rarely be of concern in the private sector. This transparency and
accountability to the public are integral aspects of government administration.

Appleby also underscores that Public Administration has a broader scope, impact, and
complexity compared to private administration. He observes that government policies and
actions influence almost every aspect of society, requiring the involvement of various
specialists and stakeholders from both the public and private sectors to fully understand and
manage its intricacies.

The more important distinguishing features of Public Administration may be

described under the following sub-heads:

Here’s a revised version of your points with added clarity and rephrasing for originality:

1. Political Context: Public Administration is inherently political, as it operates within

the framework of governmental structures and policies. In contrast, Private
Administration functions independently of political influence, focusing purely on
business interests and profit-making.
2. Absence of Profit Motive: Unlike private enterprises, Public Administration does
not aim to generate profit. Its core purpose is to deliver services to the public,
focusing on social welfare, justice, and the public good rather than financial gain.
3. Prestige and Status: Public administrators often enjoy a higher status and
recognition, especially in developing nations, compared to their counterparts in the
private sector. Their roles are perceived as essential for public welfare and
governance.
4. Public Scrutiny: The actions and decisions of Public Administration are subject to
intense public scrutiny. The general public has the right to oversee, question, and
critique government activities, a level of transparency not typically seen in private
organizations.
5. Service over Profit: Government expenditures often exceed income, leading to
budget deficits, a common feature of Public Administration. In contrast, private
organizations must ensure their income consistently surpasses expenses to remain
viable and profitable.

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6. Legal Framework: Public Administration operates within a structured legal

framework. It is governed by laws, regulations, and constitutional provisions that
define the responsibilities of public officials. They are required to act within the
bounds of legal authority and cannot exceed their defined powers.
7. Consistency and Fairness: Public administrators are legally mandated to treat all
citizens equally. The principle of non-discrimination ensures that government
officials provide consistent, impartial services, reflecting the democratic ideals of
fairness and justice.
8. Public Accountability: One of the key features of Public Administration in
democratic societies is accountability. Public officials are answerable to the public
through elected representatives and oversight bodies like the legislature, judiciary,
and media.
9. Scale and Scope: Public Administration is typically larger and more complex than
private sector organizations, covering a broad range of services from health and
education to infrastructure and security. It operates at national, regional, and local
levels, affecting nearly every aspect of life.
10. Monopoly over Essential Services: The government usually holds a monopoly on
critical services that are essential for societal stability and national security. These
include areas like defense, law enforcement, foreign policy, and currency, which are
not open to private competition.
11. Anonymity of Officials: Public servants, regardless of their rank, often remain
anonymous in their work. The actions they undertake are seen as being done in the
name of the government rather than for personal gain, reinforcing the idea that they
serve the public interest, not individual ambitions.
12. Financial Responsibility: Public Administration must handle financial matters with
great care and responsibility, as it manages taxpayer money. This requires strict
oversight and transparency to ensure funds are used effectively for the welfare of the
public.

This version keeps your ideas intact but rephrases them to avoid repetition and maintain
clarity. Let me know if you'd like further refinements or explanations on any of the points!

3.4 SIMILARITIES BETWEEN PUBLIC AND PRIVATE

ADMINISTRATION
Scholars such as Henri Fayol, Mary P. Follett, and L. Urwick did not make a clear
distinction between public and private administration. They viewed both as components of a
unified field of administration. According to the classical school of thought, public and
private administrations are considered as indistinguishable aspects of a broader
administrative discipline.

Henri Fayol, for instance, argued that there is a single administrative science that applies
universally to both public and private sectors. In his speech at the Second International
Congress of Administrative Science, Fayol stated:

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"The meaning I have attributed to the term administration, which has been widely accepted,
significantly broadens the scope of administrative science. It covers not only public service
but also all kinds of enterprises, regardless of their size, form, or purpose. Every
organization—whether public or private—requires planning, organization, command,
coordination, and control. To function effectively, all must adhere to the same basic
principles. We are no longer dealing with multiple administrative sciences but with one
unified field that can be applied to both public and private affairs."

This perspective suggests that the foundational principles of administration are universal and
can be applied across different sectors without distinguishing between public and private
domains.

The following similarities between the two types of administration may be noted:
1) Both public and business administration rely on common skills, techniques and
procedures.
2) In modern times the principle of profit motive is not peculiar to private
administration, because it is now accepted as a laudable objective for public sector
enterprises also.
3) In personnel management, private organisations have been influenced greatly by
the practices of public organisations.
4) The private concerns are also subjected to many legal constraints. The government
is exercising much control over business firms through regulatory legislation such as
taxation, monetary and licensing policies, etc. Consequently, they are not as free as they
once used to be.
5) There is a similar type of hierarchy and management system, both in the public
and private sectors. Both have the same kind of organisation structure, superior– subordinate
relationships, etc.
6) Both Public and private administration carries on continuous efforts to improve
their internal working and also for efficient delivery of services to people or customers.
7) Public and private administration serves the people, whether called clients or
customers. Both have to maintain close contact with people to inform them about their
services and also to get feedback about services and products. In both cases, public relations
help them to inform and improve their services to the people.

The previous discussion highlights that the distinction between public and private
administration is not absolute; in many respects, they are becoming increasingly similar.
However, this does not mean there are no meaningful differences between the two. Waldo
argues that Public Administration remains distinct because it reflects the unique
characteristics of government activities and the specific public context in which it operates.

In the current era, driven by the principles of liberalization, privatization, and

globalization, both public and private administrations are increasingly competing in the
same arena, especially in providing services to the public. In this context, both sectors are
addressing "customers" who pay for services, thereby narrowing the traditional gap between

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them. The rise of New Public Management (NPM) has also emphasized adopting private-
sector management techniques within Public Administration to enhance efficiency in
delivering public services.

However, significant differences remain, particularly in areas related to social

welfare and public services. While both sectors may share common managerial practices, the
mission and scope of Public Administration in sectors like healthcare, education, and
welfare distinguish it from private enterprises.

Waldo suggests that Public Administration is shaped by a set of principles such as

equality of treatment, legal authorization of actions, accountability, and financial
responsibility. However, he contends that these characteristics have limited applicability
when comparing the two sectors. Both public and private administration, according to
Waldo, are "two species of the same genus," sharing a common administrative foundation.
Yet, each has its own set of values, techniques, and operational context that lend them
distinct characteristics.

While public and private administrations operate within different environments, the
differences between them are often more apparent than real. Both fields are part of the same
broader administrative domain, but they are shaped by distinct values and operational
techniques that give them their unique roles.

3.5 SUMMARY
The general distinctions that set public administration apart from private
administration—such as a focus on equality of treatment, legal authorization and
accountability of actions, public justification of decisions, financial integrity, and
meticulousness—are not universally applicable. Public and private administrations are
essentially two variations of the same administrative framework, but each possesses its own
unique set of values, principles, and methods that give it a distinct character. While they
share a common administrative foundation, the specific values and techniques used in each
context make them different in practice.

3.6 KEY WORDS

Private Administration Refers to the management and organization of private sector

entities, focusing on achieving business objectives and
profitability.
Organizational Management Involves the process of planning, organizing, leading, and
controlling resources and activities within an organization to
achieve its goals.
Accountability The obligation of individuals or organizations to explain and
take responsibility for their actions, especially in a public or
managerial context.

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Profit Maximization The primary goal of private sector businesses, where

strategies are implemented to increase revenue and reduce
costs to achieve the highest possible profit.
Public Welfare The well-being of the general population, particularly in
terms of access to essential services like healthcare,
education, and safety, often the focus of public
administration.
Efficiency The ability to achieve desired outcomes with minimal waste
of resources, time, and effort, a key goal in both public and
private administration.

3.7 MODEL QUESTIONS

 Discuss the key differences between public and private administration. How do these
differences impact decision-making in each sector?
 Explain how public administration can learn from private administration practices to
improve efficiency. Provide examples of such adaptations.
 Identify and discuss the similarities between public and private administration in
terms of management functions. How can both sectors enhance their operations
through shared practices?
 Analyze the role of accountability in both public and private administration. How do
their accountability structures differ and what are the implications for performance?

3.8 REFERENCES

 Dimock, M. A. (1966). The nature and scope of public administration. Harper &
Row.

 Rainey, H. G. (2009). Understanding and managing public organizations (4th ed.).

Jossey-Bass.
 Simon, H. A. (1947). Administrative behavior: A study of decision-making processes
in administrative organizations. Free Press.
 Wilson, W. (1887). The study of administration. Political Science Quarterly, 2(2),
197-222. https://doi.org/10.2307/2139253

3.9 ADDITIONAL READINGS

 Kettl, D. F. (2002). The global public management revolution: A report on the
transformation of governance. Brookings Institution Press.
 Denhardt, R. B., &Denhardt, J. V. (2015). Public administration: An action
orientation (8th ed.). Cengage Learning.

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 Osborne, D., & Gaebler, T. (1992). Reinventing government: How the

entrepreneurial spirit is transforming the public sector. Addison-Wesley.

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Unit- 4: New Public Administration

Structure:
4.0 Learning Objectives
4.1 Introduction
4.2 Evolution and Definition of New Public Administration
4.3 Difference between Public Administration and New Public Administration
4.4 Criticism of New Public Administration
4.5 Summary
4.6 Key Words
4.7 Model Qquestions
4.8 References
4.9 Additional Readings

4.0 LEARNING OBJECTIVES

By the end of this Unit, you should be able to:
1. Understand the evolution of public administration theories and their core concepts.
2. Define the key principles of the New Public Administration (NPA), New Public
Management (NPM), and the New Public Service (NPS) approach.
3. Compare and contrast these three approaches in terms of their goals, methodologies,
and practical applications.
4. Recognize the challenges and criticisms associated with each approach.
5. Apply insights from these approaches to contemporary public administration
practices.

4.1 INTRODUCTION
The New Public Administration (NPA) emerged in the late 1960s as a response to
the traditional framework of Public Administration, especially in the context of post-war
American society. This movement arose partly as a reaction to widespread dissatisfaction
with the bureaucratic and often inefficient welfare state model of governance. Critics of the
status quo, including scholars and practitioners, pointed to systemic inefficiencies,
corruption, and a lack of responsiveness in government institutions.

One of the significant catalysts for this transformation was the turmoil in American
society during the 1960s, marked by events such as the Vietnam War and various domestic
political scandals. According to Shafritz, these crises contributed to a perception of
government as ineffective, inefficient, and increasingly disconnected from the needs of its
citizens. In this environment, public administration was often viewed as a force that not only
failed to solve social problems but sometimes exacerbated them, further alienating the
public.

The origins of NPA can be traced to Minnowbrook I in 1968, a gathering of young

scholars who sought to redefine Public Administration. The key goals of the NPA movement
were to make the discipline more socially relevant and to address issues of social justice,
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equity, and societal change. In contrast to traditional Public Administration, which had
focused mainly on economic management and efficiency, NPA emphasized the importance
of public administration in achieving social good and serving the broader community.

The New Public Administration marked a shift away from the narrow focus on
bureaucratic efficiency, seeking instead to address the broader challenges facing society. It
advocated for a public administration that was more responsive to the diverse needs of the
public, particularly marginalized and disadvantaged groups. This shift was part of a broader
push to make the discipline more dynamic and aligned with contemporary social, political,
and technological changes. As a result, the NPA movement sought not only to redefine the
role of public administrators but also to elevate the social responsibility of the profession,
aiming to promote fairness, justice, and equity in governance.

NPA emerged as a direct response to the failings of traditional public administration

and the changing political landscape of the 1960s. By reorienting the discipline around the
values of social justice and equity, it aimed to restore the relevance and credibility of public
administration in a rapidly evolving world.

4.2 EVOLUTION & DEFINITION OF NEW PUBLIC

ADMINISTRATION
The term New Public Administration (NPA) gained widespread recognition with the
publication of the book Toward a New Public Administration: The Minnowbrook
Perspective, edited by Frank Marini in 1971. While the theory of NPA emerged largely from
the Minnowbrook Conference, its roots can be traced back to a series of critical events in the
1960s, which contributed to the evolution of the discipline. These significant milestones
include:

1. The Honey Report on Higher Education for Public Service (1967)

2. The Conference on the Theory and Practice of Public Administration (1967)
3. The Minnowbrook Conference (1968)
4. Publication of the book Toward a New Public Administration: The Minnowbrook
Perspective, edited by Frank Marini (1971)
5. Publication of Public Administration in a Time of Turbulence, edited by Dwight
Waldo (1971)

A key turning point in the development of NPA was the Honey Report, which was
commissioned in 1966 by the American Society for Public Administration (ASPA). The task
given to John C. Honey of Syracuse University was to study the state of Public
Administration education in American universities. The report, submitted in 1967, identified
several crucial challenges within the discipline:

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Key Issues Highlighted in the Honey Report:

1. Lack of Adequate Resources: Public Administration as a field lacked sufficient

resources, both in terms of funding and institutional support, to meet the growing
demands of modern governance.
2. Uncertainty Regarding the Discipline's Status: There was confusion about
whether Public Administration should be classified as a science, a profession, or
simply an academic discipline. This lack of clarity hindered the development of a
cohesive theory or approach.
3. Inadequate Institutional Arrangements: The report noted that many universities
lacked dedicated Public Administration departments or had insufficient structures to
properly teach or conduct research in the field.
4. Gap between Scholars and Practitioners: A significant divide existed between
those who studied Public Administration academically and those who practiced it in
the field. This gap made it difficult to translate academic theories into practical
solutions for real-world problems.

 Key Recommendations of the Honey Report:

The Honey Report made several important recommendations aimed at addressing these
issues. These included:

 Increased Investment in Resources to support the development of Public

Administration as a rigorous academic discipline.
 Clarification of the Discipline’s Identity to ensure a clearer focus and definition of
Public Administration’s role—whether as a science, a profession, or a mix of both.
 Strengthening Institutional Support, especially by encouraging the establishment
of dedicated Public Administration departments within universities and colleges.
 Bridging the Gap between scholars and practitioners, encouraging more practical,
real-world engagement in academic programs, and ensuring that theories developed
in academia were relevant and applicable to public sector challenges.

The Honey Report was instrumental in highlighting the challenges faced by the field and
advocating for reforms that would lay the groundwork for the emergence of the New Public
Administration. These reforms set the stage for the Minnowbrook Conference in 1968,
where the vision for a new, socially conscious approach to Public Administration began to
take shape.

• Conference on the Theory and Practice of Public Administration

In December 1967, the American Academy of Political and Social Science organized a
conference in Philadelphia on the theme "The Theory and Practice of Public Administration:
Scope, Objectives, and Methods." Although there was no agreement on a single definition or

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nature of Public Administration, a broad consensus emerged on several key points, which
contributed to shaping the direction of the field. These points included:

1. Difficulty Defining the Discipline: It was acknowledged that defining and drawing
clear boundaries for Public Administration as a discipline is challenging due to its
broad scope and complex nature.
2. Policy-Administration Dichotomy: The traditional distinction between policy-
making and administration was deemed flawed. Participants argued that the agencies
responsible for Public Administration also play a role in formulating policies,
making the separation between policy and administration untenable.
3. Focus on American Public Administration: There was agreement that American
Public Administration should be studied in a more restrictive and focused manner,
addressing specific problems within the U.S. context.
4. Study of Bureaucracy: The conference emphasized the importance of conducting
structural and functional studies of bureaucracy to better understand its role and
operation within government.
5. Distinction from Business Administration: Public Administration and business
administration were seen as distinct fields, with minimal overlap. Therefore, it was
suggested that the study and training of these two areas should remain separate, as
their goals and methods differ significantly.
6. Separation from Political Science: Public Administration should be distinct from
political science. The conference participants believed that, while related, the two
disciplines should not be conflated, as Public Administration had its own unique
focus and methods.
7. Normative vs. Descriptive-Analytic Theory: There was a recognition that Public
Administration was in a state of disarray, especially with regard to its theoretical
foundations. The conflict between normative administrative theory (which prescribes
how things should be) and descriptive-analytic theory (which seeks to explain how
things are) created confusion within the field.
8. Hierarchical Organizational Structure: The traditional hierarchical approach to
authority in organizations was criticized. It was suggested that workers should be
viewed as collaborators or coordinators rather than subordinates, with administrators
positioned as part of a team rather than at the top of a strict hierarchy.
9. Shift from Management to Policy and Politics: Management skills were seen as
increasingly less important in Public Administration, with policy and political
considerations becoming central to decision-making. Quantitative analysis, such as
cost-benefit analysis, was recognized as only a small part of the broader factors
influencing public decisions.
10. Broad Curriculum in Public Administration: It was recommended that the
curriculum for Public Administration should expand to include not just
administrative organization and procedures, but also incorporate psychological,
sociological, financial, and anthropological perspectives to provide a more holistic
understanding of the field.

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11. Addressing Social Problems: The theory of Public Administration was criticized for
its failure to adequately address pressing social issues. Topics such as the military-
industrial complex, civil unrest, labor strikes, public education conflicts, poverty, and
the challenges of developing countries were not sufficiently incorporated into the
discipline.
12. Use of Contemporary Social Science Methods: Public Administration was seen as
falling short in applying the full range of methods from contemporary social
sciences. While some aspects of Public Administration could be studied using
scientific methods, other parts of the field were not amenable to such approaches and
required different methodologies.

These points reflected the growing disillusionment with traditional approaches to

Public Administration and highlighted the need for reform and a more comprehensive,
socially conscious perspective in the study and practice of the field. The discussions at this
conference laid the foundation for the New Public Administration movement, which sought
to make the discipline more relevant to the changing social, political, and economic realities
of the time.

• The Minnow Brook Conference, 1968

The Minnow Brook Conference, held in 1968, was a pivotal moment in the evolution of
Public Administration, marking the emergence of the New Public Administration (NPA).
The conference expressed deep dissatisfaction with contemporary Public Administration,
particularly its detachment from the pressing social issues of the time. Young scholars, often
associated with the "new left" movement, dominated the conference, seeking to redefine the
discipline in response to the socio-economic challenges of the 1960s.

The central themes that emerged from Minnow Brook included:

 A shift towards normative concerns in Public Administration, emphasizing values

and social responsibility.
 The role of public administrators was reconsidered—should they be value-neutral, or
should they actively promote values such as social justice and equity?
 The recognition that Public Administration must be more responsive to societal
change, with a focus on social equity and social problems.
 A critique of traditional, hierarchical organizational structures, calling for a more
dynamic and participatory approach.

As Dwight Waldo noted, the New Public Administration represented a movement

towards normative theory, social activism, and a greater concern for ethical issues. It
rejected the value-neutral approach and instead embraced values like morality, creativity,
and equity. Public Administration, according to NPA, should focus on addressing the needs
of marginalized groups and promote social justice.

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The second Minnow Brook Conference in 1988 further emphasized ethics in Public
Administration, reinforcing the idea that the discipline must be grounded in moral principles
and be actively engaged in social change.

The New Public Administration is characterized by its focus on relevance, values,

social equity, and change—a shift away from traditional, efficiency-oriented models
towards a more socially conscious and ethically driven approach.

• Two Significant Books and the New Public Administration

The books Toward a New Public Administration: The Minnow Brook Perspective,
edited by Frank Marini, and Public Administration in a Time of Turbulence, edited by
Dwight Waldo, were foundational in establishing the New Public Administration (NPA).
Waldo's book, which included papers from the 1969 American Political Science Association
conference, helped solidify the emerging vision of NPA.

The New Public Administration emphasized core values such as delegation,

decentralization, pluralism, humanism, and individual dignity. It called for a more active
and responsive bureaucracy that could better address the needs of society. The NPA
movement was largely a reaction to the perceived failures of classical Public Administration,
which focused on principles like efficiency, economy, productivity, and centralization.
While these principles are not entirely irrelevant, NPA highlighted that despite their
emphasis, issues like inequality and injustice persist in society.

As George Frederickson argued, even the most efficient governments can perpetuate
poverty and inequality of opportunity, and neither classical bureaucracy nor its modern
variants effectively address these social injustices. Therefore, NPA calls for the development
of new theories and norms that align with what Vincent Ostrom refers to as "democratic
administration."

NPA advocates for a restructuring of the values that underlie Public Administration,
as suggested by John Rawls' concept of governance that goes beyond ballot box
democracy—meaning that it should focus not only on the mechanics of democracy but also
on social justice and the fair distribution of opportunities and resources.

4.3 DIFFERENCE BETWEEN PUBLIC ADMINISTRATION AND NEW

PUBLIC ADMINISTRATION

The terms Public Administration and New Public Administration refer to two different
approaches or eras of thought in the study and practice of public administration. While both
deal with the management and execution of government functions, they differ in their
philosophies, objectives, and methods.

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1. Foundations and Philosophical Roots

 Public Administration (Public Administration):

 Origins: Public Administration as a field has its roots in the early 20th
century, particularly in the works of scholars like Woodrow Wilson, Max
Weber, and Luther Gulick. The focus was primarily on the efficient
implementation of policies within the structure of government.
 Philosophy: Traditional public administration was grounded in principles of
hierarchy, professionalism, neutrality, and adherence to rules and procedures.
It was about creating a professional bureaucracy that would be effective,
impartial, and efficient in the delivery of public services.
 Emphasis: It placed strong emphasis on bureaucracy, rational-legal authority
(as proposed by Max Weber), and the separation of politics and
administration. Public administrators were expected to execute policies in a
neutral, apolitical manner.
 New Public Administration (New Pub. Adm.):
 Origins: New Public Administration emerged in the 1960s-1970s as a
response to the perceived shortcomings of traditional public administration. It
was heavily influenced by the social movements of the time (civil rights, anti-
Vietnam War protests, etc.) and the desire to make government more
responsive and accountable to the needs of marginalized groups and the
public.
 Philosophy: The New Public Administration movement was less focused on
hierarchy and neutrality. Instead, it emphasized social equity, democratic
values, and citizen participation. It sought to create a more flexible,
inclusive, and responsive approach to public service, rejecting some of the
bureaucratic constraints of traditional models.
 Emphasis: It focused on equity, social justice, and community
involvement. Public administrators were seen not just as neutral
implementers of policy, but as active participants in promoting social change,
helping the disadvantaged, and improving government responsiveness.

2. Key Differences in Goals and Objectives

Public Administration (Pub. New Public Administration (New
Aspect
Adm.) Pub. Adm.)

Efficiency, professionalism, and

Equity, social justice, responsiveness,
Focus impartiality in policy
and citizen participation.
implementation.

More flexible, less hierarchical

Role of Bureaucratic structures with clear
structures; emphasis on democratic
Bureaucracy hierarchies and rules.
participation.

Administrative Neutrality and impartiality in Advocacy for social equity,

Ethics administration. responsiveness, and political

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Public Administration (Pub. New Public Administration (New

Aspect
Adm.) Pub. Adm.)

engagement.

Client Government seen as a provider of Citizens viewed as active participants

Relationship services to citizens. in governance, not just recipients.

More collaborative, inclusive

Decision-Making Top-down, hierarchical decision-
decision-making with emphasis on
Process making.
public input.

Government's To execute policies effectively To ensure fairness, social justice, and

Role and efficiently. community well-being.

Measurement of Efficiency and effectiveness in Equity, fairness, responsiveness, and

Success implementing policies. social outcomes.

3. Theoretical Frameworks and Influences

 Public Administration (Pub. Adm.):

 Weberian Bureaucracy: Based on Max Weber's ideal of a rational-legal
authority structure, where decision-making is formalized, hierarchical, and
based on rules and regulations.
 Scientific Management: Influenced by Frederick Taylor, who emphasized
efficiency, standardization, and productivity in public service, much like in
private-sector management.
 Administrative Law: Public administration often operated within a strict
legal framework, focused on following procedures, rules, and maintaining
neutrality.
 New Public Administration (New Pub. Adm.):
 Human Relations Theory: Drawing from the ideas of Elton Mayo and
others, New Pub. Adm. emphasized the importance of human values, worker
motivation, and a more participatory approach to decision-making.
 Critical Theory and Social Equity: NPM sought to incorporate critiques of
traditional power structures, focusing on issues of social justice, equity, and
advocacy for the marginalized.
 Public Choice Theory: While some critics argue NPM was overly influenced
by market-driven ideas, the concept of "public choice" (which emphasizes
individual preferences and choices) was part of the broader movement.

4. Methodology and Approach

 Public Administration (Pub. Adm.):

 Top-Down Approach: Public administration traditionally operated in a
hierarchical, command-and-control fashion. Policies were crafted at the top
levels (e.g., elected officials or appointed leaders) and then passed down
through bureaucratic channels for implementation.

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 Formal Procedures: Bureaucrats followed clear, standardized procedures

and rules in their daily work. Efficiency was prioritized, with less emphasis
on the personalization or citizen engagement.
 Technocratic Expertise: Public administrators were expected to be highly
professional and focused on applying expert knowledge in a neutral, non-
partisan manner.
 New Public Administration (New Pub. Adm.):
 Collaborative Approach: NPA encourages a more decentralized,
participatory approach to decision-making. Public administrators are
expected to work alongside community leaders and citizens in shaping policy
and implementing it.
 Focus on Social Context: Instead of just focusing on efficiency, the context
of service delivery—such as the needs of underrepresented or disadvantaged
communities—became central.
 Advocacy and Activism: Public administrators were encouraged to be more
politically engaged, advocating for social change and ensuring that the voices
of marginalized groups were heard and represented in governance.

5. Key Criticisms of Public Administration and New Public Administration

 Public Administration (Pub. Adm.):

 Criticized for Bureaucratic Rigidity: The emphasis on hierarchy and
proceduralism led to inefficiencies and lack of responsiveness to citizens.
 Perceived as Detached from Citizens: The neutral and detached role of
bureaucrats often created a distance between government and the public,
leading to disillusionment with public service.
 New Public Administration (New Pub. Adm.):
 Criticized for Ideological Bias: Critics argue that New Public
Administration's focus on advocacy for social justice and equity can
sometimes blur the line between administration and political activism.
 Challenges of Implementation: The ideals of inclusivity and responsiveness
can be difficult to implement in practice, especially in large and complex
government systems.

6. Key Proponents

 Public Administration (Pub. Adm.):

 Woodrow Wilson: Argued for the separation of politics and administration,
emphasizing the professionalism and neutrality of public servants.
 Max Weber: Developed the bureaucratic model, which emphasizes
hierarchy, rules, and rational-legal authority.
 Luther Gulick: Known for his work on administrative principles and his
famous POSDCORB (Planning, Organizing, Staffing, Directing,
Coordinating, Reporting, and Budgeting) model.
 New Public Administration (New Pub. Adm.):
 H. George Frederickson: A major advocate for New Public Administration,
particularly in promoting the idea of social equity and public service values.

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 Dwight Waldo: While not strictly a part of NPA, Waldo's work on the
politics-administration dichotomy and his later focus on the relationship
between public administration and democracy influenced the NPA movement.

Analysis:

 Public Administration (Pub. Adm.) is focused on the traditional, hierarchical, and

bureaucratic structure of government, with an emphasis on efficiency, neutrality, and
rule-based administration.
 New Public Administration (New Pub. Adm.), in contrast, focuses on social equity,
responsiveness, inclusivity, and citizen participation, with a greater emphasis on
addressing societal issues and promoting social justice through public policy and
administration.

The shift from Pub. Adm. to New Public Administration marked a move toward a more
democratic, participatory approach to governance, questioning the neutrality and structure of
traditional bureaucracies and advocating for a more human-centered, values-driven public
administration.

4.4 CRITICISM OF NEW PUBLIC ADMINISTRATION

New Public Administration (NPA) emerged in the late 1960s and 1970s as a response to
the perceived limitations and failings of traditional Public Administration (Pub. Adm.). It
sought to bring a stronger focus on social equity, citizen participation, democratic values,
and social justice into the workings of public administration. NPA challenged the notion of a
neutral, bureaucratic, and apolitical public service, arguing that administrators should be
more responsive to the needs of disadvantaged groups and actively involved in addressing
societal inequalities.
While NPA has had a significant influence, it has also faced several criticisms over the years.
Here are the main critiques of New Public Administration:

1. Ideological Bias and Political Activism

 Criticism: One of the most significant criticisms of NPA is that its emphasis on
social equity, advocacy for marginalized groups, and political involvement may blur
the lines between administration and politics. Critics argue that public
administrators, who were traditionally expected to be neutral, are now being asked to
engage in political activism, which could compromise their impartiality and
professionalism.
 Example: A public administrator who actively advocates for policies related to racial
justice or economic equity may be seen as politically biased, particularly if these
issues are part of partisan political debates.
 Result: This perceived ideological shift may undermine the credibility and
trustworthiness of public administrators, who are expected to serve the public
impartially, regardless of their political views.

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2. Difficulties in Implementation

 Criticism: While NPA advocates for a more inclusive, participatory, and equity-
focused approach to governance, critics argue that these ideals are difficult to
implement in practice, especially within large and complex government structures.
 The push for more democratic participation may slow down decision-
making processes.
 The emphasis on social equity may require extensive systemic changes that
are hard to achieve in established bureaucratic systems.
 Example: Trying to engage every stakeholder in policy decisions or ensuring that
marginalized groups have an active role in governance might lead to bureaucratic
gridlock or inefficient decision-making, especially in large governments.
 Result: The gap between NPA’s ideals and its practical application may lead to
inefficiencies and frustration, making it difficult to balance ideals of social equity
with the realities of administrative capacity and effectiveness.

3. Lack of Clear, Actionable Framework

 Criticism: NPA’s emphasis on values like social justice, equity, and citizen
participation is seen by some as lacking a clear and actionable framework for
implementation. While these values are important, critics argue that NPA does not
always provide enough concrete guidance on how administrators should balance
these principles with the technical, procedural, and efficiency-driven demands of
public administration.
 Example: NPA emphasizes addressing inequalities in public service delivery, but it
does not always provide specific tools or frameworks to measure and rectify such
disparities systematically.
 Result: This lack of operational clarity can lead to confusion in practice and
inconsistent application of NPA's core values, making it challenging for public
administrators to prioritize both social equity and the efficient implementation of
public policies.

4. Undue Focus on Social Equity at the Expense of Efficiency

 Criticism: Critics argue that New Public Administration’s emphasis on social equity
and the advocacy for disadvantaged groups may come at the expense of
administrative efficiency and effectiveness. In focusing on democratic values and
participation, NPA may neglect the importance of maintaining an efficient,
streamlined bureaucracy that can execute policies effectively.
 Example: A public program that emphasizes broad community involvement and
engagement may become inefficient, leading to slow decision-making or excessive
bureaucracy. This may delay the delivery of services and reduce the overall
effectiveness of the program.
 Result: While social equity is crucial, the focus on inclusivity may sometimes hinder
the ability of government agencies to quickly and effectively respond to urgent
policy needs, particularly in crisis situations.

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5. Overemphasis on Social Equity without Sufficient Consideration of Cost

 Criticism: NPA’s focus on achieving social justice and equity may sometimes
overlook the economic costs of achieving these goals. Critics suggest that the push
for equity can lead to increased public spending or the allocation of resources to
programs that are difficult to evaluate or measure in terms of their cost-effectiveness.
 Example: Policies designed to address the social needs of marginalized groups,
while important, might become expensive to sustain over time if not properly
managed or if the economic feasibility of these initiatives is not thoroughly assessed.
 Result: The imbalance between equity and cost-effectiveness can lead to
unsustainable public spending, potentially diverting funds from other essential areas
or creating budgetary crises for governments.

6. Risk of Fragmentation and Lack of Coordination

 Criticism: NPA’s emphasis on local involvement, decentralized decision-making,

and citizen participation can lead to fragmentation of services. The push for local
autonomy may cause a lack of coordination between different levels of government,
leading to inefficiencies and inconsistencies in service delivery.
 Example: A decentralized policy on urban development might result in cities or
municipalities implementing different approaches to housing, transportation, or
health services, leading to disjointed programs that do not address the broader
regional or national needs.
 Result: Fragmentation can make it difficult to coordinate policies effectively,
especially when complex social issues like healthcare, education, or infrastructure
require multi-level collaboration between various government agencies.

7. Neglecting Technical Expertise

 Criticism: Critics argue that New Public Administration’s focus on social values and
participation sometimes devalues the importance of technical expertise in public
administration. The rise of politically charged, advocacy-driven administration may
shift the focus away from the professional, neutral, and expert-driven approach that
is essential in areas like public health, education, or law enforcement.
 Example: In a system where the public’s input are heavily emphasized, technical
issues requiring deep expertise in law, engineering, or economics might not receive
the appropriate focus, which could lead to suboptimal policy decisions.
 Result: Overemphasizing public participation without sufficient technical grounding
may undermine the quality of policy decisions, particularly in highly specialized
fields where expertise is critical.

8. Challenges in Balancing Diverse Stakeholder Interests

 Criticism: NPA’s emphasis on public participation and inclusivity often leads to the
challenge of balancing competing interests. Engaging a wide range of stakeholders

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means that policymakers must navigate conflicting views, which can make it
difficult to reach decisions that satisfy all parties involved.
 Example: In a public planning process, multiple community groups might have
conflicting interests about the allocation of resources or policy priorities. Balancing
the needs of urban vs. rural populations or business owners vs.
environmentalists can result in decision paralysis.
 Result: The desire to be inclusive can lead to long deliberations and compromise
solutions that may not fully satisfy any party, potentially weakening the effectiveness
of the policies put in place.

9. Potential for Ideological Polarization

 Criticism: By aligning itself with certain social movements (e.g., civil rights,
feminism, environmentalism), NPA may lead to ideological polarization in the public
sector. Public administrators might become more aligned with particular social or
political movements, which could create tension between different ideological
factions within the government.
 Example: Public administrators advocating for radical social change might
encounter resistance from conservative factions within the public sector or from
elected officials who hold different views.
 Result: This ideological divide could reduce cooperation and create a fragmented
public sector, making it difficult to address issues cohesively and efficiently.

Assessment:
While New Public Administration has contributed significantly to the evolution of public
governance by emphasizing social equity, citizen participation, and democratic values, it
faces criticism for being ideologically driven, difficult to implement, and prone to
inefficiencies. The push for inclusivity, social justice, and responsiveness can sometimes
clash with the need for efficiency, technical expertise, and coordinated action, leading to
potential challenges in real-world governance.

4.5 SUMMARY

New Public Administration has introduced a fresh direction in both Public

Administration and public policy discussions, significantly influencing governance. It has
provided new insights into the politics of Public Administration. However, the successful
implementation of the radical policies proposed by New Public Administration requires
strong political will and legislative support. Despite the challenges posed by institutional
constraints, the New Public Administration, along with its governance ideas, has
fundamentally reshaped perspectives on Public Administration. While it originated largely
in the United States, its impact has extended globally, influencing Public Administration
disciplines worldwide. Many developing countries find its principles relevant to their
societal contexts but often lack the necessary resources and infrastructure to implement
them. Therefore, it may be impractical to seek comprehensive solutions through New Public

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Administration alone, as it was primarily a response to the shortcomings of classical Public

Administration.

The rise of neoliberal globalization has transformed the role of the state and its
administration, posing new challenges. Consequently, New Public Administration must
now address these evolving realities.

It is essential to distinguish New Public Management from New Public

Administration. The latter emerged with the goal of reviving value-based administration
and elevating Public Administration to a higher ethical standard. In contrast, New Public
Management adopted a management-focused approach, which distanced Public
Administration from its core values and focus on the public.

New Public Service offers a framework where key concepts from both traditional
Public Administration and New Public Management can be integrated. Although debates
will persist, New Public Service provides a foundation for envisioning a public service
system that is deeply connected to citizen engagement and the public interest.

4.6 KEY WORDS

New Public Administration A framework emphasizing social justice, equity, and

(NPA) democratic participation in public administration.
New Public Management A management approach that applies private sector principles
(NPM) like efficiency, competition, and performance measurement
to public administration.
New Public Service (NPS) A citizen-centered approach to governance that emphasizes
public servants' role in facilitating democratic participation
and addressing public needs.

4.7 MODEL QUESTIONS

1. What is new Public Administration? Discuss its features
2. Discuss the evolution of the new Public Administration.

4.8 REFERENCES
 Denhardt, R. B., &Denhardt, J. V. (2000). The New Public Service: Serving, not
Steering. Public Administration Review, 60(6), 549-559.
 Hood, C. (1991). A New Public Management for all Seasons? Public Administration,
69(1), 3-19.

4.9 ADDITIONAL READINGS

 Denhardt, R. B., & Denhardt, J. V. (2015). The New Public Service: A Blueprint for
Public Administration Reform. M.E. Sharpe.

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 Osborne, S. P. (2010). The New Public Governance. Routledge.

 Pollitt, C., & Bouckaert, G. (2011). Public Management Reform: A Comparative
Analysis. Oxford University Press.

Unit-5: New Public Management

Structure:
5.0 Learning Objectives
5.1 Introduction
5.2 The New Public Management
5.3 Assessment of New Public Management
5.4 Difference between New Public Management (NPM) and New Public
Administration (NPA)
5.5 Summary
5.6 Key Words
5.7 Model Qquestions
5.8 References
5.9 Additional Readings

5.0 LEARNING OBJECTIVES

By the end of this section, readers should be able to:

 Understand the evolution of public administration theories and their core concepts.
 Define the key principles of the New Public Management (NPM),
 Compare and contrast these three approaches in terms of their goals, methodologies,
and practical applications.
 Recognize the challenges and criticisms associated with each approach.
 Apply insights from these approaches to contemporary public administration
practices.
5.1 INTRODUCTION
NPA emerged as a direct response to the failings of traditional public administration
and the changing political landscape of the 1960s. By reorienting the discipline around the
values of social justice and equity, it aimed to restore the relevance and credibility of public
administration in a rapidly evolving world.

 EVOLUTION OF NEW PUBLIC MANAGEMENT (NPM)

New Public Management (NPM) is a management philosophy that emerged in the 1980s
and sought to reform public administration systems by applying principles commonly found
in the private sector. It was largely driven by the belief that bureaucratic inefficiencies and
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over-expansion of the public sector needed to be corrected to make government more

efficient, responsive, and cost-effective. Below is a brief outline of its evolution:

1. Origins (1970s-1980s)

 Background: The roots of NPM can be traced back to growing dissatisfaction with
the welfare state and bureaucratic management systems in the 1970s. Public
administrations in many countries were seen as bloated, inefficient, and unresponsive
to the needs of citizens. The inefficiency of state-run monopolies, coupled with the
stagflation (economic stagnation combined with inflation) of the 1970s, led to public
discontent with traditional public administration practices.
 Influence of Neoliberalism: NPM is closely tied to neoliberal economic principles,
which emphasize the role of the market, competition, and privatization. The rise of
Reaganomics in the U.S. and Thatcherism in the UK championed these ideas,
advocating for reducing the size of government and transferring government
functions to the private sector.
 Core Objective: The core objective was to make public services more business-like,
focusing on cost-cutting, performance, and efficiency. The shift was away from the
traditional, rule-based, and hierarchical systems of government, which were seen
as overly bureaucratic.

 MILESTONES IN NPM'S DEVELOPMENT

 1980s: Adoption in Anglo-Saxon Countries

 United States: The U.S. under President Ronald Reagan promoted ideas of
privatization and market efficiency in the public sector. The Privatization
Movement saw the transfer of many state-owned enterprises to the private sector.
 United Kingdom: The UK under Margaret Thatcher adopted NPM principles by
privatizing state-owned companies and implementing performance management
systems in government agencies. Thatcher’s “next steps” program created quasi-
autonomous agencies for public service delivery.
 Australia and New Zealand also adopted similar reforms in the 1980s and early
1990s, with an emphasis on restructuring government agencies and introducing
market-based reforms.
 1990s: Global Expansion
 World Bank and IMF Influence: NPM principles were promoted by international
financial institutions such as the World Bank and the International Monetary
Fund (IMF), which encouraged developing countries to adopt market-based
reforms and improve governance efficiency.
 United Nations: The United Nations also promoted NPM ideas as part of its
governance reform agenda, advocating for greater efficiency and accountability
in the public sector.
 Late 1990s - Early 2000s: Criticism and Reevaluation
 By the late 1990s, critics of NPM pointed to its limitations: a focus on efficiency
at the cost of equity, the privatization of essential public services, and
fragmentation of public services. Calls for more balanced governance systems

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arose, which led to the emergence of "Post-NPM" reforms that sought to integrate
elements of NPM with a greater focus on public values.

5.2 THE NEW PUBLIC MANAGEMENT

In the 1980s and early 1990s, public sector management in many developed
countries experienced significant transformations due to various factors. Among these were
the rise of knowledge economies, advancements in communication technology, and a
considerable increase in global trade. Globalization triggered processes that were largely
beyond the control of national governments, such as multilateral trade agreements, the
proliferation of information and communication technologies, and the expansion of e-
networking, all of which diminished geographical barriers. As a result, public administration
evolved from a rigid, hierarchical, and bureaucratic system to one that was more flexible and
market-oriented. According to Jan-Erik Lane, this shift marked a profound change in both
the role of government in society and the relationship between governments and their
citizens, paving the way for the development of a new paradigm in public sector analysis.

• Definition and Features

The emergence of the New Public Management (NPM) in the 1990s introduced a new
paradigm in the field of public administration. It is also referred to by various terms, such as
"managerialism," "market-based public administration," and "entrepreneurial government."
The concept of NPM was first introduced by Christopher Hood in 1991 in his paper titled A
New Public Management for all Seasons, published in Public Administration. The two key
foundations of NPM are the public choice theory and neo-Taylorism. These concepts led
to a shift from the traditional Weberian model of public administration to a more neoliberal
approach.
As public choice theory gained traction in policy formulation, it prompted reforms in
public bureaucracy. R.A.W defines NPM by several central doctrines, including a focus on
management rather than policy, performance evaluation, and efficiency. NPM advocates for
the disaggregation of bureaucracies into smaller agencies that operate on a user-pays basis,
encouraging competition through quasi-markets and contracting out. It also emphasizes cost-
cutting, setting performance targets, monetary incentives, and granting managers more
freedom to manage.

L.A. Gunn describes public management as a "third way" that balances the principles
of public administration and private management. J.L. Perry and E. Krenner argue that
public management is a merger of the traditional normative orientation of public
administration with the pragmatic, instrumental orientation of general management. In
essence, NPM takes the "why" and "what" from traditional public administration and the
"how" from business management. A key principle within NPM is the belief in the
dominance of the market over the state, promoting a minimal state as part of its neoliberal
framework.

The development of NPM was significantly influenced by a comprehensive study of

the U.S. federal bureaucracy, conducted by 250 public employees under the leadership of

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Vice President Al Gore. The study provided the foundation for reforms aimed at making
government operations more efficient, accountable, and responsive. The following are
considered the key features of NPM.

New Public Management (NPM) emphasizes management over policy, prioritizing

performance appraisal and efficiency as key components. One of its core ideas is
transforming public bureaucracies into agencies that operate on a user-pays basis. This
approach fosters competition through the use of quasi-markets and by contracting out
services. Additionally, cost-cutting is a central tenet of NPM.

NPM promotes a results-oriented structure, focusing on output targets, limited-

term contracts, monetary incentives, and granting managers freedom to manage. This
restructuring aims to transform public bureaucracies into organizations that are accountable
for achieving specific goals. Managers are entrusted with fulfilling targets and held
responsible for the outcomes.

 FEATURES OF NEW PUBLIC MANAGEMENT (NPM)

NPM brought a major shift in public sector administration, focusing on performance,
efficiency, and customer service. Below are the core features of NPM:

1. Marketization of Public Services

 Privatization: NPM advocates for transferring public sector services to the private
sector, where possible, in the belief that private enterprises are more efficient and
customer-oriented.
 Example: The privatization of industries such as telecommunications,
transportation, and utilities in many countries in the 1980s and 1990s.
 Outsourcing: Governments began contracting private companies to provide services
previously delivered by government agencies.

 Satisfaction, and cost-effectiveness.

3. Decentralization and Autonomy

 Devolution of Powers: NPM emphasizes decentralizing decision-making to local

levels or specific agencies. By granting more autonomy to individual public
agencies, governments aim to increase responsiveness and accountability.
 Agencification: The creation of quasi-autonomous agencies or executive agencies
(independent from direct political control) that operate similarly to private sector
organizations.
 Example: In the UK, the creation of Next Steps Agencies allowed public agencies
to operate with more flexibility and independence.

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4. Customer Orientation

 Public Services as Customer-Oriented: NPM promotes the idea that public

services should be viewed through the lens of customer satisfaction, with citizens
treated as customers or clients.
 Example: Introducing customer service protocols, establishing help desks, and
measuring customer satisfaction in services like healthcare, education, and public
transport.
 Citizen as Consumer: This involves tailoring services to the specific needs and
preferences of citizens, with a focus on responsiveness and user satisfaction.

5. Managerialism
 Business-like Management Practices: Public administrators are expected to
function like managers in the private sector, with a focus on efficiency, cost
control, and output-based objectives.
 Managerial Accountability: Public sector managers are held accountable for
achieving specific, measurable objectives, often through performance contracts or
managerial autonomy.
 Leadership and Entrepreneurship: Managers are encouraged to act as
entrepreneurs, introducing innovative practices and thinking creatively to improve
public services and reduce costs.

6. Competition and Benchmarking

 Introduction of Competition: NPM introduces competition in public service

delivery, either by privatizing services or by creating competition among public
and private sector entities.
 Example: Governments have introduced competitive tendering for services like
waste management, public transport, and procurement.
 Benchmarking: The process of comparing the performance of public services
against private sector standards or against other public agencies to identify best
practices and improve service delivery.

7. Focus on Efficiency and Cost-Effectiveness

 Cost-Cutting: A central aim of NPM is to reduce government expenditures by

improving the efficiency of public services, often by reducing the size of the public
sector or outsourcing non-core services.
 Lean Operations: Public administration under NPM focuses on streamlining
operations, eliminating waste, and ensuring that taxpayer money is used effectively.

8. Professionalization of Public Service

 Emphasis on Skills and Competencies: NPM encourages the development of a

more professional, skilled, and dynamic public service workforce.
 Merit-Based Recruitment and Promotion: NPM supports the idea that public
sector employees should be recruited and promoted based on merit, skills, and
performance rather than seniority or political connections.

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 Example: Outsourcing of waste collection, information technology services,

and public transport operations to private firms.
 Public-Private Partnerships (PPPs): NPM promotes collaboration between the
public and private sectors to deliver public services, where the private sector
provides the investment and expertise, and the public sector maintains regulatory
oversight.

2. Performance Measurement and Accountability

 Focus on Results: A hallmark of NPM is the use of performance metrics to

evaluate public sector agencies. Governments began using output-based measures,
such as efficiency, productivity, and customer satisfaction to assess performance.
o Example: Introducing performance contracts for public agencies and setting
key performance indicators (KPIs) for service delivery.
 Performance-based Budgeting: NPM encourages linking budgeting and funding to
specific performance targets, requiring government agencies to justify spending
based on their ability to meet performance targets.
 Outcome-based Governance: Instead of focusing solely on compliance with
processes and procedures, NPM emphasizes outcomes such as quality of service,
citizen

The Neo-liberal influence in NPM is reflected in the principles of reducing the size
and functional load of government, promoting speed in performance, and ensuring greater
accountability within public administration.

The New Public Management has eight basic principles:

1. Flexibility and devolution of authority

2. Accountability and performance evaluation

3. Developing competition and choice 4. Providing responsive services

5. Improving the human resources management

6. Use of Information Technology to optimum

7. Quality check and improvement of its regulation

8. Strengthening steering functions of the centre Re-inventing government

The famous book ‘Re-inventing Government’ by Osborne and Gaebler was published in
1992. It suggested a ten-point programme for the entrepreneurial government.

a) It promotes competition between diverse providers of goods and services.

b) It empowers citizens by taking them out of the control of bureaucracy.

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c) Outcome-based evaluation is made of the agencies.

d) It is driven by their missions, not by rules and regulations.

e) It redefines clients as customers and provides them with choices accordingly.

f) It tries to prevent problems not cure them.

g) It focuses on earning not spending.

h) It advocates for participatory management by decentralizing authority.

i) It prefers market-based mechanisms in place of bureaucratic mechanisms.

j) All sectors- public, private, voluntary is commissioned to solve the problems of the
community.

The ideas presented in this book quickly resonated with those who were critical of
the bureaucratic welfare state model. It became a guiding reference for proponents of the
New Public Management (NPM) model. NPM emphasizes the delivery of quality services
and rewards both individual and organizational performance. The model focuses on
equipping managers with the human and technological resources necessary to meet
performance targets. It also allows for greater flexibility in defining the public objectives
that public servants are expected to achieve.

• Components of NPM

There are several components of the new public management which are interrelated.

1. Focus on Delivering High-Quality Services: In the New Public Management

(NPM) model, consumers are seen as active customers rather than passive recipients
of services. An example of this approach is the Citizens Charter, introduced in 1991
by British Prime Minister John Major, which aimed to improve the quality of public
services.
2. Increased Managerial Autonomy: To ensure high-quality service delivery, NPM
advocates for greater autonomy for managers. In countries such as the UK,
Australia, New Zealand, and Singapore, responsibilities were delegated from central
departments to specific agencies. This devolution of powers also led to increased
flexibility in areas like contractual labor and workplace bargaining. Local
managers were granted more freedom to manage their operations, further promoting
flexibility.
3. Performance Evaluation Linked to Rewards: Under NPM, the performance of
both individuals and organizations is regularly assessed, and these evaluations are
connected to rewards. Financial management has shifted from cash-based to
accrual accounting, enhancing cost-effectiveness. Additionally, regular reviews of

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government programs have become a standard practice to ensure continuous

improvement.
4. Target Setting and Managerial Support: Clear performance targets are set in
advance, and managers are provided with the necessary resources—both human
and technological—to meet these targets effectively. Recruitment policies, training,
and salary structures are being adjusted to attract the best talent available in the
market. In-service training is increasingly being tailored to the specific needs of the
job to develop the skills required to achieve these targets. Efforts are also made to
include marginalized groups, such as women, in training programs to increase the
social diversity of the skilled workforce. This helps improve equity in public service
roles. Moreover, information technology has played a crucial role in modernizing
public administration, with many countries adopting e-governance for efficient
service delivery and management. Managerial performance at various levels is
made to align with central policy directives, leading to organizational changes, as
seen in Australia and other Commonwealth nations.
5. NPM encourages openness to competition and a flexible approach to determining
which services should be provided by the public sector versus the private sector. As a
result, there has been an increasing trend of privatization of sectors that were once
primarily handled by the public sector, particularly in many Commonwealth
countries. In nations like India, non-governmental organizations (NGOs) have
begun playing a significant role in sectors such as education, healthcare, and
childcare. Privatization has become an official policy in numerous countries and is
now a central element of the NPM framework. Additionally, public-private
partnerships (PPP) have become an integral part of this privatization strategy,
allowing for collaboration between the public and private sectors.

• Critique:

The New Public Management (NPM) is based on several core principles such as
neo-classical economics, privatization, a market-oriented approach, and the downsizing
of the public sector. However, responses to NPM have varied across different sectors. With
the growing inequality and social exclusion seen worldwide, there is a shift in thinking
regarding the role of the government and the public sector. The philosophy of NPM has
been criticized for failing to address critical issues like poverty, equality, and social
exclusion. This has led to the realization that the government and public sector must play a
central role in creating sound public policies that promote inclusive social and economic
management.
As a result, there is now broader recognition of the central role of the state in
governance. Many argue for the reinvention of government due to the inequalities caused
by neoliberal NPM. The idea that private corporations or privatized services can replace
the government has been rejected, as they do not serve the public interest. The logic of
market-driven approaches often conflicts with the goals of public governance, which
prioritizes the collective welfare of society.

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The rise of the NPM paradigm can be traced back to historical factors, such as the
failures of the welfare state, over-centralization, and excessive bureaucratization. As
Mohan Kaul notes, the primary objectives of the reforms driven by NPM have been to shift
the focus from planning to developing key strategic areas, from inward-looking systems
to partnerships, from inputs and processes to outputs and outcomes, and to manage
diversity within a unified public service.

Ultimately, both managerial pragmatism and political conviction are seen as

crucial in driving innovation in government management. New Public Management (NPM)
gained appeal due to the public's dissatisfaction with traditional state bureaucracy. However,
as Avasthi and Maheshwari point out, the issues within public bureaucracy are deeply
structural and attitudinal, and to completely discard it would be akin to "throwing the baby
out with the bathwater." NPM often uncritically embraces the negative aspects of private
management, overlooking the unique attributes of public administration, particularly its
grounding in the country’s constitution. Additionally, NPM is criticized for being amoral,
showing little regard for the administrative ethics that are foundational to the effective
functioning of public affairs.

New Public Management (NPM) should not be confused with New Public
Administration. While the latter emerged with a focus on revitalizing value-based
administration and elevating Public Administration to a higher moral standard, NPM has a
different origin. NPM sought to apply management principles to Public Administration,
which led to its detachment from public values and the needs of the people.

NPM promotes flexibility in reducing worker benefits in the name of efficiency,

while it tends to protect the interests of the wealthy. Although its guiding principles include
economy, efficiency, and effectiveness, it often overlooks issues of equity,
marginalization, and social exclusion. NPM shifts the role of the government from
"rowing" (direct provision of services) to "steering" (guiding policy direction), thereby
reducing the centrality of the state. The market becomes central, taking over roles
traditionally held by the state, such as trade negotiations and economic policy formulation.
This shift leaves marginalized and excluded communities vulnerable to the whims of the
market, without any safeguards.

NPM also promotes principles like localization, externalization, and de-

bureaucratization, which decentralize power to the local level, contract government
functions to non-governmental organizations, and reduce bureaucracy. These changes
weaken public control and accountability, undermining democracy in the process.

5.3 ASSESSMENT OF NEW PUBLIC MANAGEMENT

The New Public Management (NPM) refers to a set of administrative reforms that emerged
in the 1980s, particularly influenced by ideas from the private sector, such as efficiency,
performance measurement, and customer-oriented service. The NPM model emphasized

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decentralization, the introduction of market mechanisms (like competition and contracting

out), and the measurement of public sector performance against benchmarks.

While NPM has had a significant impact on public administration in many countries, it has
also faced substantial criticism. Here are some of the major criticisms of New Public
Management:

1. Overemphasis on Market Mechanisms

 Criticism: One of the core elements of NPM is the use of market-based mechanisms,
such as privatization, contracting out public services, and introducing competition.
Critics argue that this approach assumes that the public sector can be run like a
business, but public goods and services often do not fit well into a competitive
model.
 Example: Services like healthcare, education, and policing cannot be easily
privatized or subjected to market competition without compromising equity, access,
and quality.
 Result: In some cases, NPM's reliance on markets has led to inefficiencies, the
erosion of public values, and even the exclusion of marginalized groups who cannot
afford market-driven services.

2. Focus on Efficiency over Equity

 Criticism: NPM’s strong focus on efficiency, cost-cutting, and performance metrics

can come at the expense of equity and social welfare. Public administration, by
nature, must balance a wide range of interests, including social justice and
accessibility, not just fiscal prudence.
 Example: When performance is evaluated solely based on cost-efficiency (e.g.,
measuring how quickly services are delivered or how much they cost), this can lead
to reductions in services for vulnerable populations who might not be as "cost-
effective" to serve.
 Result: Critics argue that this "efficiency-driven" focus undermines the core mission
of public administration, which is to serve the public good.

3. Decreased Accountability

 Criticism: NPM emphasizes decentralization and greater autonomy for public sector
managers, including the use of private contractors for public service delivery. While
this can lead to more flexible and responsive services, it can also make it harder to
hold public managers and contractors accountable for their actions.
 Example: If public services are outsourced to private firms, there may be less
transparency and fewer mechanisms for citizen oversight or accountability, leading to
problems like corruption or the provision of subpar services.
 Result: The lack of clear accountability can erode public trust in government, as it
becomes difficult to determine who is responsible for failures.

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4. Undermining Public Service Values

 Criticism: Public administration traditionally emphasizes values like fairness,

transparency, and serving the public interest. Critics of NPM argue that its focus on
market-driven principles can undermine these core values.
 Example: Public sector workers may begin to view their roles as performance-driven
and results-oriented, which could erode commitment to values like public duty,
impartiality, and long-term public welfare.
 Result: This shift can lead to a culture of "management by numbers," where
decisions are made based solely on metrics rather than the broader public interest.

5. Fragmentation and Lack of Coordination

 Criticism: NPM advocates for decentralization, autonomy, and flexibility at lower

levels of government. While this can lead to greater responsiveness, critics argue that
it can also result in fragmented services and a lack of coordination across different
agencies.
 Example: In areas like healthcare or education, where coordination across multiple
departments is crucial, decentralization might cause confusion, inefficiencies, and
gaps in service delivery.
 Result: Fragmentation can make it harder to address complex, cross-cutting social
issues that require coordinated action and long-term strategies.

6. Emphasis on Quantitative Measures

 Criticism: NPM emphasizes the use of performance indicators and quantifiable

outcomes as a way to measure the success of public administration. However, critics
argue that these metrics can be reductive and fail to capture the true impact of public
services.
 Example: Measuring the success of a public hospital based on the number of
patients treated or the speed of service might overlook the quality of care, patient
satisfaction, and long-term health outcomes.
 Result: The over-reliance on quantitative metrics can lead to "gaming the system" —
where public managers or contractors manipulate data to meet targets, rather than
improving actual service quality.

7. Reduction in Public Sector Job Security and Morale

 Criticism: NPM reforms often include performance-based assessments of employees

and privatization of public sector jobs, which can undermine job security and morale
among public servants.
 Example: When public sector workers are incentivized based on efficiency or cost-
cutting targets, it can lead to job insecurity, reduced morale, and a decline in public
service motivation. This is particularly problematic in areas like social services,
where long-term dedication is key to achieving positive outcomes.
 Result: This can lead to higher turnover rates and a reduction in the quality of public
service provision.

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8. Increased Focus on Short-Term Results

 Criticism: NPM's emphasis on performance and efficiency can often drive public
administrators to focus on short-term goals, at the expense of long-term planning and
sustainability.
 Example: Politicians and public managers may prioritize quick wins, such as
reducing budgets or improving short-term performance metrics, rather than investing
in long-term strategies for complex issues like climate change or public health.
 Result: This short-termism can undermine efforts to address long-term societal
challenges that require sustained and coordinated actions over many years.

9. Privatization and Loss of Public Control

 Criticism: NPM advocates for privatization and outsourcing of public services to

reduce costs and improve efficiency. However, critics argue that privatization can
lead to the loss of public control over essential services.
 Example: Outsourcing prison services, water utilities, or public transportation may
lead to private companies prioritizing profits over public welfare, cutting corners, or
reducing service quality.
 Result: The public loses the ability to directly influence or control critical services,
potentially leading to suboptimal outcomes for citizens.

10. Limited Consideration of Political and Social Context

 Criticism: NPM tends to treat public management as a technical and apolitical issue,
overlooking the broader political, social, and ethical implications of public policy.
 Example: Decisions based purely on market principles may ignore the needs and
voices of vulnerable communities, or fail to account for the social value of certain
public services.
 Result: This can lead to policies that are efficient in a narrow sense but fail to
account for broader societal needs or values, reinforcing inequality or social division.

Assessment:

While New Public Management introduced innovations that aimed to make government
more efficient and responsive to citizens, it has also faced significant criticism for
undermining the public service ethos, increasing inequality, reducing accountability, and
promoting short-termism. The challenge for modern public administration is to find a
balance between efficiency and the broader values of equity, transparency, and long-term
social welfare.

5.4 DIFFERENCE BETWEEN NEW PUBLIC MANAGEMENT (NPM)

AND NEW PUBLIC ADMINISTRATION (NPA)

The distinction between New Public Management (NPM) and New Public Administration
(NPA) lies primarily in their philosophical underpinnings, objectives, and approaches to
governance. While both emerged in response to perceived shortcomings in traditional

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public administration, they represent different responses to the evolving needs of

governance.

Here's a comparison to highlight the key differences:

1. Philosophical Foundations

 New Public Management (NPM):

 Origins: NPM emerged in the 1980s, driven by the neoliberal belief in
market-driven solutions and efficiency. It was heavily influenced by
privatization, market competition, and managerialism. This philosophy
emphasized the adoption of private sector practices in the public sector to
improve performance and efficiency.
 Core Idea: The focus was on performance, cost-effectiveness, and market-
oriented reforms in the public sector. NPM viewed public services as
needing to operate more like businesses, with a focus on customer
satisfaction, service delivery, and measurable outcomes.
 New Public Administration (NPA):
 Origins: NPA emerged in the 1960s and 1970s as a response to the
limitations of traditional public administration, especially in addressing
issues of social justice, democracy, and public accountability. It was
influenced by the civil rights movements and a push for more inclusive,
equitable, and responsive governance.
 Core Idea: NPA emphasized equity, participation, and the political role of
public administrators. It called for a more democratic, participatory model
of governance that sought to ensure the needs of marginalized and
vulnerable groups were prioritized.

2. Approach to Governance

 New Public Management (NPM):

 Focus on Efficiency: NPM emphasizes efficiency, cost-cutting, and
performance measurement. It encourages competition, contracting out
services, and a customer-oriented approach in the delivery of public
services.
 Market Mechanisms: NPM promotes the use of market-driven mechanisms
such as privatization, outsourcing, and public-private partnerships to
improve performance and reduce government intervention.
 Management Style: It adopts a managerial approach, emphasizing results-
based management and the accountability of public service managers for
achieving specific goals and objectives.
 New Public Administration (NPA):
 Focus on Equity and Social Justice: NPA places greater emphasis on social
equity, fairness, and ensuring that disadvantaged and marginalized groups
have equal access to government services.
 Democratic Participation: It calls for increased citizen participation and
involvement in decision-making processes. Public administration should not

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just implement policies, but should advocate for social change and
democracy.
 Public Service Values: NPA stresses the importance of values like
transparency, accountability, and public service motivation, with a goal of
creating a more inclusive, just, and responsive government.

3. Role of Bureaucracy

 New Public Management (NPM):

 Decentralization and Autonomy: NPM promotes decentralization of
decision-making and gives greater autonomy to public sector managers. It
encourages a shift away from rigid bureaucratic structures toward more
flexible, business-like models.
 Managerialism: Public managers are expected to be entrepreneurs who
drive performance and efficiency in the public sector, much like managers in
the private sector.
 New Public Administration (NPA):
 Bureaucracy with Accountability: While NPA does not completely reject
bureaucracy, it seeks to make it more democratic and accountable to the
public. Bureaucratic structures should be responsive to the needs of citizens
and uphold democratic values.
 Equity and Social Accountability: NPA emphasizes the need for
bureaucracies to focus on equitable service delivery and hold themselves
accountable to citizens, particularly marginalized groups.

4. Views on Public Service Motivation and Role of Public Administrators

 New Public Management (NPM):

 Public Servants as Managers: NPM views public administrators more as
managers focused on delivering results and outcomes rather than as public
servants motivated by social values or equity.
 Focus on Performance and Efficiency: Public administrators are primarily
accountable for meeting targets and delivering services efficiently, often
through performance contracts or market-driven incentives.
 New Public Administration (NPA):
 Public Servants as Advocates for Social Change: NPA views public
administrators not only as implementers of policies but as advocates for
social justice and public equity. Administrators should actively work toward
reducing social inequality and promoting democratic participation.
 Focus on Values: Administrators are expected to serve the public good, with
an emphasis on equity, social justice, and citizen engagement.

5. Performance Metrics and Measurement

 New Public Management (NPM):

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 Quantitative Performance Indicators: NPM advocates for the use of

quantifiable performance indicators and outcome-based measures to
assess the effectiveness and efficiency of public services.
 Benchmarking and Targets: It introduces mechanisms like benchmarking,
competition, and contracting out to measure and improve performance.
Public services are increasingly viewed in terms of their ability to produce
measurable results.
 New Public Administration (NPA):
 Qualitative Outcomes: NPA places less emphasis on purely quantitative
measures and focuses more on qualitative outcomes, such as citizen
satisfaction, fairness, and democratic accountability.
 Citizen Engagement: Instead of focusing solely on output-based metrics, NPA
emphasizes the need for policies that consider citizen participation and the
equity of service delivery. Social impact and public trust are often central to
evaluating success.

6. Criticism and Challenges

 New Public Management (NPM):

 Criticism: NPM has been criticized for prioritizing efficiency and cost-cutting
at the expense of equity, social values, and public welfare. The emphasis on
privatization and market mechanisms has also led to concerns about the loss
of public accountability, the erosion of service quality, and greater
inequality in service delivery.
 Challenges: NPM’s approach to governance can lead to fragmentation of
services, loss of control over public services, and a focus on short-term
results rather than long-term goals.
 New Public Administration (NPA):
 Criticism: NPA has been criticized for being ideologically driven and for its
emphasis on advocacy, which some argue can blur the lines between
administration and political activism. The focus on social equity and
participation can also result in inefficiency and bureaucratic gridlock.
 Challenges: NPA’s emphasis on participation and democracy may be difficult
to implement in large bureaucracies, and balancing the competing demands
of equity and efficiency can be challenging.

7. Global Adoption and Implementation

 New Public Management (NPM):

 Widespread Global Adoption: NPM has been widely implemented in many
countries around the world, especially in Anglo-Saxon countries (e.g., the
United Kingdom, New Zealand, Australia, and the United States). Many
governments have embraced privatization, outsourcing, and performance-
based management.
 New Public Administration (NPA):
 More Context-Specific: NPA, with its focus on social equity and democracy,
has had a more context-specific impact, particularly in countries where

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social justice movements were prominent in the 1960s and 1970s (e.g., the
United States during the civil rights movement). Its principles are seen as
part of a normative approach rather than a universal one.

Summary Table: Key Differences

New Public Administration
Aspect New Public Management (NPM)
(NPA)

Market-driven, efficiency-oriented, Equity, social justice, democratic

Philosophy
managerial focus. participation focus.

Role of Public Managers focused on performance Advocates for social change,

Administrators and outcomes. equity, and public service.

Governance Focus on decentralization, Focus on public participation,

Approach privatization, and competition. social justice, and equity.

Decentralized, flexible, with Bureaucracy with greater citizen

Bureaucracy
business-like models. accountability.

Quantitative measures of Qualitative outcomes, citizen

Performance Metrics
efficiency and outcomes. satisfaction, and impact.

Efficiency over social values, Ideological bias, inefficiency,

Criticism
inequality, privatization. difficult to implement.

5.5 Summary

It is essential to distinguish New Public Management from New Public

Administration. The latter emerged with the goal of reviving value-based administration
and elevating Public Administration to a higher ethical standard. In contrast, New Public
Management adopted a management-focused approach, which distanced Public
Administration from its core values and focus on the public.

New Public Service offers a framework where key concepts from both traditional
Public Administration and New Public Management can be integrated. Although debates
will persist, New Public Service provides a foundation for envisioning a public service
system that is deeply connected to citizen engagement and the public interest.

5.6 KEY WORDS

New Public Management A management approach that applies private sector principles
(NPM) like efficiency, competition, and performance measurement
to public administration.
New Public Service (NPS) A citizen-centred approach to governance that emphasizes

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public servants' role in facilitating democratic participation

and addressing public needs.

5.7 MODEL QUESTIONS

1. Discuss the evolution of the new Public Administration.
2. What is new public management? Discuss its basic principles.

5.8 REFERENCES
 Denhardt, R. B., &Denhardt, J. V. (2000). The New Public Service: Serving, not
Steering. Public Administration Review, 60(6), 549-559.
 Hood, C. (1991). A New Public Management for all Seasons? Public Administration,
69(1), 3-19.
 Kaul, M. (2010). New Public Administration: Theory and Practice. Pearson Education
India.
5.9 ADDITIONAL READINGS
 Denhardt, R. B., & Denhardt, J. V. (2015). The New Public Service: A Blueprint for
Public Administration Reform. M.E. Sharpe.
 Pollitt, C., & Bouckaert, G. (2011). Public Management Reform: A Comparative
Analysis. Oxford University Press.

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UNIT-6: GOOD GOVERNANCE

Structure:
6.0 Learning Objectives
6.1 Introduction
6.2 Governance
6.3 Good Governance
6.4 Eight principles of good governance
6.5 Criticisms of the idea and practice of good governance
6.6 Feminist Perspective on Governance
6.7 Summary
6.8 Key Words
6.9 Model Qquestions
6.10 References
6.11 Additional Readings

6.0 LEARNING OBJECTIVES

After reading this chapter, the learners will be able to:
 Understand the concept of governance.
 Define the principles of good governance.
 Explore the feminist perspective on governance.
 Examine the relationship between gender, power, and governance.
 Evaluate the impact of feminist theories on governance models.

6.1 INTRODUCTION

The shift from government to governance represents a significant transformation in

public administration, influenced by a variety of political, economic, and social factors.
Public administration traditionally referred to the management of public affairs and the
activities of the government, which involved a broad range of institutions, actors, and
organizations. However, during the 1970s, the term "management" began to take
precedence, gradually replacing the traditional focus on public administration and
diminishing the role of government. As Jan Erick Lane noted, management's appeal, with its
focus on quick decision-making, data-driven planning, and efficient implementation,
appeared to dominate, making management the buzzword of the time. This shift placed

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management and its principles at the forefront, pushing public administration and
government to the periphery.

However, by the 1990s, the prominence of management waned, and the concept of
governance emerged as the dominant discourse in development administration. The rise of
governance challenged the state's monopoly over the management of public affairs,
particularly through the ideas promoted by the World Bank. As Paul Streeten pointed out,
"governance" was a concept that had not even been included in the International
Encyclopedia of the Social Sciences, indicating its relative novelty at the time. The onset of
neoliberalism in both developed and developing countries further weakened the central role
of the government, as market forces and non-state actors began to assume roles traditionally
held by the state.

Governance, as a concept, resists a simple definition. According to the Commission

on Global Governance, it refers to the "sum of the many ways individuals and institutions,
public and private, manage their common affairs." This process allows for the
accommodation of diverse and conflicting interests, and facilitates cooperative action. It
encompasses both formal institutions and informal arrangements that are either agreed upon
or deemed to be in the interest of the parties involved.

The concept of good governance gained relevance in response to the widespread

issues of mal-governance and mis-governance, such as corruption, bureaucratic
inefficiency, political interference, and the mismanagement of public resources, particularly
in many developing countries. Good governance was presented as a solution to these
problems. However, the World Bank's prescriptions for good governance are often
associated with the risks of neoliberal capitalism, which can have adverse effects on
marginalized populations in developing countries and may lead to a reduction in democratic
spaces.

6.2 GOVERNANCE

Inclusive development can be achieved through inclusive governance, where the

structure and processes of governance are designed to empower marginalized and excluded
communities, enabling them to overcome poverty and deprivation. The term "governance"
has become widely used in contemporary discussions of power, democracy, and
decentralization. There are various interpretations of governance, ranging from simple, state-
centered views to broader, more inclusive conceptions.

In its simplest form, governance refers to what governments do. More broadly, it
involves how individuals, groups, and institutions manage their affairs and resolve conflicts
in an orderly manner. Governance encompasses the government's ability to create and
enforce rules and deliver essential services. The ancient Indian text Arthashastra, written in
the 4th century B.C., offers a governance model where the king must exercise coercive

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authority (Danda) but also stresses that this power should be applied fairly to serve the
common good.

Fukuyama identifies four approaches to evaluating the quality of governance:

procedural measures, capacity or input measures, output measures, and measures of
bureaucratic autonomy. He suggests that good governance arises from achieving an optimal
balance between bureaucratic capacity and autonomy, where the level of autonomy increases
as bureaucratic capacity grows. He emphasizes that the quality of governance should be
measured by the quality of service delivery outputs, such as education, healthcare, and
infrastructure, which are closely linked to per capita GDP, serving as an indicator of
development.

Governance encompasses all processes of governing, whether or not they involve

government institutions, and can be exercised through rules, norms, power, or language. It is
broader than government itself, focusing less on the state and its institutions and more on
social practices and activities. While "government" refers to political institutions,
"governance" covers the processes of rule, wherever they occur. Today, governance involves
a wider array of actors and organizational forms, capturing both formal and informal
methods by which states respond to the evolving global order.

 GOVERNMENT AND GOVERNANCE

The words ‘government’ and ‘governance’ are often used interchangeably, though they are
not the same. Government and governance are two very similar words. People often got
confused about the difference between governance and government.

Government is a group of people who rule or run the administration of a country. It is the
body of representatives that governs and controls the State at a given time. It is the medium
through which the power of the State is employed. Governance, on the other hand, is the act
of governing or ruling. It is the set of rules and laws framed by the government that are to be
implemented through the representatives of the State. Simply put, governance is what the
governments do. Governance is the physical exercise of the polity while the government is
the body through which this is done. Government includes the regularized body of people
who run the administration of a country. While there can be various forms of government
like, democracy, autocracy etc., they all serve the same purpose i.e., to drive the national
wheel. On the other hand, governance is the act of ruling that comes after the government is
formed. So, it could be termed as the effective implementation of the rules by the ruling
government. It is a function of a government. A government is a body entrusted with the
power to make and enforce laws to govern a country. While governance involves not just
these but has features such as efficiency, accountability, transparency, responsiveness,
equity and many more. Government may be different types. It may be a democracy or
autocracy but most of the modern governments are democratic.

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The terms government and governance have been very well explained by Rosenau.
According to him, both refer to purposive behavior, to goal-oriented activities, to system of
rule of law; but government suggests activities that are backed by formal authority, by police
powers to ensure the implementation of duly constituted policies, whereas governance refers
to activities backed by shared goals that may or may not derive from legal and formally
prescribed responsibilities and that do not necessarily rely on police powers to overcome
defiance and attain compliance. Governance in other words is a more encompassing
phenomenon than government. It embraces governmental institutions, but it also subsumes
informal, non-governmental mechanisms whereby those persons and organisations within its
purview move ahead, satisfy their needs, and fulfill their wants.

Thus, we can say that the concept of governance is more encompassing and broader in
nature than government. Government conventionally refers to the formal institutional
structure and the location of authoritative decision making in the modern state. Governance
is much more than this. It focuses more on collective action and the networking of various
stakeholders. In government, the exercise of authority is of utmost importance. In
governance, it remains significant but is not its single focus. In governance, the power is
much more shared than wielded and the authority is defined much by the consent and
participation of the governed than by the control of the ruler.

Governance is not only about government but about reworking the relations between the
state, market, and civil society. Government and governance, both are ideal types and there
exists a continuum between the two, the broad features of which can be qualified.

The concept of governance has been in use at least since the fourteenth century. It was first
used in France. It meant ‘seat of government’. It has been derived from Greek word
‘Kybernan’ which means ‘to steer and to pilot or be at the helm of things’ (Medury, 2010).
Governance, in simple terms, means “the process of decision-making and the process by
which decisions are implemented (or not implemented)”. The Concise Oxford Dictionary
defines it as an “act or manner of governing” and “the office or function of governing”.
Governance has also become a term used to describe a particular set of changes. It signifies
a set of elusive but potentially deeply significant shifts in the way in which government
seeks to govern.

The term ‘governance’ was first used by Harland Cleveland (1972). He used it as an
alternative to public administration. According to him, what people want is ‘less government
and more governance’. He identified governance with a cluster of concepts. According to
him, “the organisations that get things done will no longer be hierarchical pyramids with
most of the real control at the top. They will be systems –interlaced webs of tension in which
control is loose, power diffused and centres of decision plural. Because organisations will be
horizontal, the way they are governed is likely to be more collegial, consensual, and
consultative. The bigger the problems to be tackled, the more real power are diffused and the
larger the number of persons who can exercise it – if they work at it”.

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Governance refers to a process of exercise of authority to govern people or regulate public

affairs. In the simplest terms, governance relates to the effective management of the affairs
of a country at all levels, guaranteeing its territorial integrity, and securing the safety and
overall welfare of people. It is about the rules of collective decision-making in settings
where there are plurality of actors or organisations and where no formal control systems can
dictate the terms of relationship between these actors and organisations (Chhotray & Stoker,
2009). Governance introduces the private sector, the civil society including the local
government system as participants in the process of governing through changes in their
subsidiary roles and direct involvement in areas hither to kept exclusively in the public
domain.

Governance is a concept which is used in different meanings in different contexts; it varies

from narrow structural definition of its management of public affairs by government
constituents i.e., legislation, executive and judiciary, to the processes that ensure deliveries,
participation, justice, respect of rights, innovation and networking.

The term ‘governance’, is derived from the Greek term, kubernao, which means ‘to steer’.
So, governance is the process that steers affairs of the State. In ancient times, the Greek
philosopher, Plato used the term, governance, in reference to the affairs of the state. The
term came into the limelight with the publication of the World Bank’s report on sub-Sahara
in 1989. The report said that development initiatives taken up by the World Bank had not
been able to produce the desired development benefits due to the weak role of the state, and
its ineffective institutions. Summarizing this problem, the World Bank report coined the
term ‘crisis of governance’. Thus, the focus was cast on improving governance by
improving managerial and administrative competencies.

The World Bank defines governance as, „the exercise of political authority, and the use of
institutional resources to manage the society’s problems and affairs.‟ The World Bank
interprets governance as the institutional capacity of public organizations to provide public
and other goods demanded by a country’s citizens in an effective, transparent, impartial, and
accountable manner, subject to resource constraints. The World Bank has further defined
that ‘Governance’ in general, has three distinct aspects: (a) the form of a political regime; (b)
the processes by which authority is exercised in the management of a country’s economic
and social resources; (c) the capacity of governments to design, formulate; and (d)
implement policies, and, in general, to discharge governmental functions.

Further, in literature the use of ‘Governance’ can be distinguished in seven different uses
under different settings:

 as corporate governance, relating to companies;

 as the New Public Management;
 as ‘good governance’;
 as international interdependence generating new modes of governing;

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 as a „socio-cybernetic system‟, focusing on mechanism of coordination; as a way of

governing through networks.

It is the last concept of governance together with new public management concerned with
public/development policies of nations and cities that is of concern here.

The main elements of governance approach in such context essentially are:

• Its focus on the complexity of government i.e., multiple agencies, institutions and
systems linked complex patterns of interaction and marked by increasing problems of
coordination;

• the focus on alternatives to hierarchy on identifying systems of rules to identifying

alternative organisational forms, notably networks; To be seen as a change, both in practice
as well as theory.

The governance approach directs attention to these diverse bodies and the ways in they
relate to one another and produce government. It is concerned with organizational forms and
the relationships between them with networks and networking but also with the underlying
structure of shared meaning and values through which these relationships are sustained. It
seeks to build an understanding of the structures and practices which are there. Based on
these discussions, it can be said that governance means the process of decision making, and
the process by which the decisions are implemented, or even not implemented. Over a last
decade, the concept of governance has undergone change. It has included a few elements
like accountability, transparency, and effectiveness into its broad contours. It has led to the
emergence of a new aspect of governance, which is termed, good governance.

6.3 GOOD GOVERNANCE

Good governance, in its narrower sense, emphasizes competitive elections, clear
accountability, and the rule of law. More broadly, it encompasses pluralism, human rights,
and widespread political participation, focusing on legitimacy, transparency, accountability,
and inclusiveness. It is argued that good governance cannot be achieved without efficient
and effective public administration and management systems. However, these systems may
be ineffective in environments where governance is poor, characterized by a lack of basic
freedoms, disregard for the rule of law, and unpredictable leadership.

Good governance is also tied to development, with liberal democratic governance

often seen as a prerequisite for economic progress. It includes robust local government and
decentralized administration. There has been significant discussion around how good
governance impacts development, with some hoping that democracy would emerge from
grassroots movements, with civil society defending the rights of marginalized groups against
powerful interests. However, World Bank-led good governance projects often prioritize
market institutions, undermining the values of representative and responsible government.

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Democracy must remain the core of good governance, ensuring more space for public
participation in governance processes.

The success of Kerala’s decentralized planning model highlights this approach. A

survey of seventy-two village councils (panchayats) showed that a majority of respondents
felt improvements in service quality and development across multiple categories. This
improvement was consistent among different stakeholders, including politicians, public
officials, and civil society actors. However, while participation and dialogue can supplement
representation and accountability, they cannot replace them entirely. In contexts of
inequality and deprivation, participation may disproportionately favor the elite, highlighting
the need for a balanced approach in decentralized democratic governance.

There is a clear connection between democracy, good governance, decentralization,

and inclusive development. Each of these elements enriches the others, contributing to a
more effective and equitable governance structure.

• World Bank & Good Governance

In its 1992 document Governance & Development, the World Bank defined
governance as "how power is exercised in the management of a country’s economic and
social resources for development." Initially introduced in the 1989 report on Sub-Saharan
Africa, the Bank identified four key aspects of governance: public sector management,
accountability, legal frameworks for development, and transparency. The Bank emphasized
that good governance is essential for creating an environment conducive to equitable
development and for complementing sound economic policies.

According to the World Bank, governance involves three main aspects:

1. The form of the political regime,

2. The process by which authority is exercised in managing economic and social
resources,
3. The government’s capacity to formulate, design, and implement policies.

In addition to these, the Bank identified features such as political accountability, the rule
of law, transparency, and participation of civil society in governance processes. These ideals
are outlined as necessary conditions for fostering good governance, which is seen as central
to promoting development.

However, the Bank's prescriptions for achieving good governance have faced criticism.
While the Bank argues that governance is a continuous process that requires constant
attention and should be rooted in society, its approach has been criticized for being overly
idealistic and simplistic. The Bank’s focus on privatization, liberalization, and globalization
is seen by many as a means to advance neoliberal agendas under the guise of promoting
good governance. This is particularly evident in how the Bank’s policies have often been

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imposed on developing countries, disregarding local contexts and perpetuating inequalities

between the global South and North.

Critics, including Leftwich, argue that the World Bank’s concept of good governance
fails to address the root issues of inequality, exclusion, and poverty. It has promoted market-
driven policies that undermine the role of the state in ensuring equity and justice. This
neoliberal model prioritizes the market over the state, often leaving the marginalized and
poor populations at the mercy of market forces, which exacerbate inequality.

The OECD also linked good governance to economic assistance, outlining conditions
such as participatory development, human rights, and democracy. While these goals may
seem beneficial, critics argue that linking them to financial assistance is coercive and
reinforces neoliberal capitalism, often at the expense of the sovereign rights of developing
countries. The World Bank’s push for good governance often seeks to weaken public
administration systems in these countries by emphasizing privatization and deregulation,
which further reduce the role of the state in governance.

The neoliberal paradigm promoted by the World Bank is fundamentally at odds with
inclusive governance. The World Bank's approach to governance is not merely about
promoting liberal democracy but about advancing market-driven capitalism. Its interventions
in developing nations’ governance structures often overlook the need for inclusive,
participatory processes that ensure equity and justice. The Bank’s emphasis on reducing the
role of the state in governance weakens democratic spaces and undermines the government’s
capacity to address the needs of its citizens.

Bob Currie has pointed out that governance cannot be reduced to a binary variable,
where governments are simply classified as either meeting or failing to meet governance
standards. There is a lack of clarity on how governance should be evaluated in practical
terms, and this has led to inconsistent and often damaging prescriptions for governance
reform in developing countries.

Ultimately, the World Bank’s vision of governance is seen as depoliticizing governance

and development. By prioritizing market mechanisms and weakening state capacity, the
Bank's approach diminishes the potential for genuine democratic engagement, particularly
for marginalized populations. As governance is increasingly linked to neoliberal policies,
there is a growing need for a redefined approach that is inclusive and democratic, free from
the constraints of neoliberal globalization. For governance to truly benefit the people, it must
prioritize justice, equality, and participation, not simply market efficiency.

6.4 EIGHT PRINCIPLES OF GOOD GOVERNANCE

1. Participation

2. Rule of Law

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3. Transparency

4. Responsiveness

5. Consensus Oriented

6. Equity and Inclusiveness

7. Effectiveness and Efficiency

8. Accountability

1. Participation

The participation of citizens in the process of governance is vital to the idea and concept of
good governance. People should be able to channelize their own opinions through legitimate
immediate forums, organizations or representatives. Citizens refer to all men and women
including vulnerable sections of society, backward classes and minorities whereas
participation implies freedom of association and expression. It is noteworthy that
participation is a vital step towards mobilizing people to participate in the decision-making
process. While participation may be direct or indirect, it needs to be informed and organized.
It is quite palpable that the aims and objectives of the political rights can only be fulfilled by
the greater participation of the people in the society. The idea of good governance underlines
that the legal framework represents rule of law securing impartiality in terms of participation
of people in the decision-making process.

.2 Rule of Law

One of the significant indicators of good governance is rule of law which makes ita
precondition that a fair legal framework is required to establish rule of law in a society.
Moreover, the legal framework needs to be enforced impartially including human rights
laws which are violated very often in most of the societies on account of their sectarian
character. It is quite logical that without rule of law, politics will follow the principle of
matsya nyaya - law of fish which means the strong will prevail over the weak hence rule of
law alone can ensure impartiality in the defence of human rights including the most
marginalized sections of society. Impartial and impersonal rule of law lies in an independent
judiciary system and in the incorruptible investigation agencies and police force.

3 Transparency

Transparency is yet another characteristic as well as indicator of good governance.It is

commonly believed and argued that governance needs transparency for the fair delivery of
services to the citizens. To maintain transparency, it is significant that information is
accessible and understandable to the public and remains subject to continuous monitoring.
Freedom of media is the cornerstone of transparency. The Right to Information Act, 2005

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(RTI) has enabled the citizens of India, for instance, to access governmental information
regarding various policies and their implementation free of costs. Transparency strikes a
balance between policymaking and its implementation by forcing the executive to follow
laws, rules and regulations in both letter and spirit.

4 Responsiveness

Responsiveness as an important indicator of good governance requires that the

administration while implementing various policies, delivers its services to people with an
attitude of service and responsibility which in turn can strengthen the interrelationships
between administration and people. The administrative mechanisms as well as processes
need to be geared towards serving all stakeholders/people on the basis of the intensity of
their need and time of their need.

5 Consensus Oriented

Governance of a society must strive towards building a consensus on common

interests that would serve one and all in that society and fulfill the actual interests of

the people as well as the community. Further, a consensus on common interests can

influence a consensus oriented decision-making process which would go a long way

in ensuring that the policies achieve a common minimum welfare for everyone

without being detrimental to anyone. Thus, sincere efforts to build a broad consensus

on the best interests of a community help in mediating divergent interests prevailing

in a society. Long-term development of a society is contingent on the social culture

and institutional behaviors of consensus-building in that particular society. When the

political philosopher Jean-Jacques Rousseau talked about ‘General Will’ in his work

‘The Social Contract’ (1762) by which he meant the common interests of a society,

he actually referred to the need of ‘Consensus Oriented’ formulation of interests and

decision-making as well.

6 Equity and Inclusiveness

Equity and inclusiveness as significant characteristics of good governance imply

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establishment of a just and equitable society not just to impartially deliver goods,

services and justice to people but to ensure that people feel that they have a common

stake in the governance system and they belong to the mainstream of the system and

this can induce more participation, redistribution of goods and welfare in that

particular society. It can be argued that society’s well being depends on how its

members feel about it. An equitable and inclusive society allows people to have

enough opportunities to improve or maintain their well-being.

7. Effectiveness and Efficiency:

Effectiveness and efficiency as crucial indicators of good governance help in ensuring

that the outcomes of the governance system meet the needs of society in time and with

rationality without damaging environment. It is not farfetched to argue that governance

processes and institutions in a healthy society need to be able to produce results that

meet the needs of the people of that society and both natural and human resources of

the society need to be used effectively with optimum results. Proper utilization of

society’s resources leads to sustainable development which seeks preservation of

environment while leaving resources for future generations.

8 Accountability

Accountability is yet another important indicator as well as characteristic of good

governance. As the primary objective of good governance is welfare of people by

empowering them and by ensuring a transparent system of governance, this can hardly

be realized without the governmental institutions, private sectors, and civil society

organizations being accountable to the public for the simple fact that the government

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is not the only actor in the governance system, there are several other actors including

private sectors and civil society organizations as well. Hence, good governance

depends on how accountable both governmental and non-governmental institutions are

to the people of their society and it is also a fact that without transparency and rule of

law, accountability cannot be established.

6. 5 CRITICISMS OF THE IDEA AND PRACTICE OF GOOD GOVERNANCE

Despite the laudable objectives of good governance and apparently being a very positive
concept, there are numerous criticisms of the idea and practice of the concept.

For instance, some scholars argue that vagueness underlying the umbrella concept which
leads to a lack of a clear well-defined scope for what the concept strictly includes allows
different political leaders to choose and set their own parameters.

Some scholars look upon the indicators of good governance as representing values of
western democracy and ignoring eastern civilization. For instance, Eva Poluha and Mona
Rosendahl argue that implementation of good governance idea in a culturally diverse
environment could lead more social dissonance and conflicts.

While some economists treat good governance primarily as a neo-liberal agenda of the
developed countries of the West to force the developing and under-developed countries of
the Asian and African continent to open up their markets, some economists argue that
certain indicators of good governance can actually lower economic growth rather than
inducing it. They argue, for instance, a centralized strong leadership is better than
participatory decision-making process as certain decisions related to economy must be taken
faster whereas the need for transparency and accountability can delay decision- making and
implementation of certain economic policies. For example, the development economist Dani
Rodrik stated: “A development strategy that focused on anti-corruption in China would not
have produced anything like the growth rate that this country has experienced since 1978,
nor would it have resulted in 400 million plus fewer people in extreme poverty”.

Some scholars point to the novelty of the idea and concept of good governance but
criticize it for its idealistic character which makes it very difficult for governments to
implement it in actual terms but induce them to prepare forged records to receive aid from
World Bank and IMF.

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Some scholars also question quite rationally the very origin of the idea of good
governance since governance itself needs to be good and welfare-oriented and hence, bad
governance needs to be considered an aberration instead.

6. 6. Feminist Perspective in Governance

The global feminist movement, advocating for gender equality and justice, has had a
significant impact on various aspects of human life, including the field of social sciences.
Public Administration, as a discipline, is not immune to these changes. Feminism, both as a
theory and a movement, seeks to challenge and restructure political, economic, and social
systems to ensure gender equality. It advocates for women's rights, their representation in
politics and the economy, and their participation in state institutions, bureaucracy, and
culture.

A critical focus of feminist movements is addressing gender inequalities and

injustices that have been deeply embedded in state laws and public policies, often reflecting
patriarchal values and practices. These policies have perpetuated discrimination against
women, and feminist advocates demand their reform or abolition. Feminism calls for public
policies that are sensitive to gender issues and a Public Administration that acknowledges
and works to correct these inequalities.

Feminist movements have historically targeted patriarchal laws and policies, viewing
them as sites for challenging and dismantling discrimination against women. Through these
efforts, feminism has redefined concepts of power and authority, contesting the dominance
of men over women in all spheres of life, from the family to the state to cultural practices.
However, it is important to note that there is no single unified feminist perspective.
Feminism includes a variety of schools of thought, such as radical, liberal, and Marxist
feminism, each with its own approach to addressing gender-based discrimination and
promoting women's empowerment. These differing feminist ideologies have shaped
movements for women's empowerment in diverse ways, depending on their underlying
principles and goals.

The feminist movement, with its roots in gender equality and justice, has
significantly impacted various fields, including Public Administration. It advocates for the
restructuring of political, economic, and social systems to achieve gender equality,
challenging patriarchal structures that marginalize women. Feminism demands gender-
sensitive public policies and a more inclusive Public Administration that reflects women's
concerns.

Feminism has evolved through different waves. The First Wave (late 19th to early
20th century) focused on women's right to vote and property rights. The Second Wave
(1960s–1980s) expanded to issues like civil rights, reproductive rights, sexual liberation,
education, and the fight against socio-cultural stereotyping of women. The Third Wave,
emerging from the failures of the Second Wave, adopted a more radical approach,

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emphasizing gender equality with a focus on diversity and inter-sectionalist. More recently,
a Fourth Wave emerged, marked by digital activism and a focus on issues like sexual
harassment and body autonomy.

Camilla Stivers is a key figure in feminist administrative theory, particularly with her
1993 work Gender Images in Public Administration. Stivers critiqued the classical liberal
state, arguing that its individualism and separation of public and private spheres excluded
women. She highlighted how traditional images of leadership, power, and professionalism
are gender-biased, reinforcing male dominance in administrative structures. Stivers argued
that Public Administration, shaped by these gendered images, perpetuates inequalities and
excludes women's experiences and perspectives. She advocated for a "gender lens" to reveal
and correct these imbalances.

Stivers's critique includes the view that Public Administration's foundational

justifications are built on the subordination of women, assigning them less important roles
and limiting their participation in public life. The masculine ideals of leadership, decision-
making, and expertise marginalize femininity, presenting it as incompatible with leadership.
Feminism, in Stivers's view, is essential to transforming Public Administration to make it
more inclusive and reflective of gender equality.

Martha Nussbaum similarly criticized the public/private dichotomy that has

historically excluded women from governance. She emphasized the need to challenge this
distinction, which continues to influence both theoretical and empirical work, ignoring
women's contributions to public life. A feminist approach to Public Administration seeks to
identify gender gaps in administration and create a more inclusive, women-friendly
workplace.

Kathy E. Ferguson critiqued the liberal approach of simply placing more women in
management roles, arguing that true change requires feminist discourse based on the lived
experiences of women. She called for a non-bureaucratic approach to Public Administration
that prioritizes women's perspectives. Other feminist scholars, like Georgia Duerst-Lahti and
Rita Mae Kelly, have explored gender power and sex roles in administration, advocating for
the feminization of administrative structures. Carol Edlund promoted a feminine leadership
style, not as an exclusively female trait, but as an alternative leadership model that both men
and women can adopt.

Despite these efforts, feminist work in Public Administration remains limited. While
there has been an increase in women's representation in administration and growing feminist
literature, meaningful change requires deeper structural shifts to make Public Administration
gendered and more inclusive. As Stivers and others argue, without addressing gender
imbalances, the state and development cannot be truly inclusive.

6.7 SUMMARY

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Citizens in any country prioritize the efficient functioning of the government, as they
are willing to pay for high-quality services if provided. However, for this to happen,
governance must be transparent, accountable, and free from bias or prejudice. To reinstate
effective governance, it is crucial to restructure national policies to emphasize the Gandhian
principle of "Antyodaya," which focuses on uplifting the most marginalized sections of
society.

India, in particular, should focus on fostering probity in governance to make it more

ethical and just. The pursuit of effective government is a continuous challenge that has
persisted throughout history. As Alexander Pope famously said, “For forms of government,
let fools contest; what’s best administered is best." This highlights the idea that efficient
governance depends on how well the systems, institutions, and delivery mechanisms work in
tandem and evolve in response to societal needs.

The debate around governance must consider the evolving relationship between the
state, the market, and civil society. Effective governance today requires the adaptation of
processes to meet the challenges posed by changing global dynamics. With the rise of
market liberalism and globalization, it is expected that the state will reduce its direct
involvement in areas where markets and civil society can operate more efficiently.

In sectors where the state previously had a monopoly—producing goods and services
also provided by the private sector—the market now plays a more significant role.
Additionally, civil society has taken on a more prominent role, especially in development
tasks, while still maintaining its influence in social order and public welfare. The growing
collaboration between the market, civil society, and the state reflects a shift where these
actors increasingly overlap in their functions. Consequently, the state’s role is being
redefined, and many functions are being transferred to the private sector and civil society.

This evolution signals a broader, more integrated system of governance, where state
intervention is reduced, and the combined efforts of the market and civil society become
central to addressing developmental and social challenges. However, it also suggests that
governance must continue to adapt to remain effective in meeting the demands of the
modern world.

6.8 KEY WORDS

Governance: The processes, structures, and actors involved in decision-

making within a society.
Good Governance Governance that is accountable, transparent, inclusive, and
equitable.
Feminist Perspective: A critical approach to governance that highlights gender
inequality and advocates for the empowerment of women and
marginalized groups.

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Inter-sectionalist The concept that individuals’ experiences are shaped by

multiple overlapping social identities, including gender, race,
and class.

6.9 MODEL QUESTIONS

 What is Good Governance? Discuss its features.
 What are the impacts of Good Governance on traditional Public Administration?
 Discuss the feminist perspective in governance.

6.10 REFERENCES

 Agarin, T. (2019). Gender, Governance, and Feminist Politics: Exploring Women's

Political Leadership in Europe. Oxford University Press.
 Lane, J. E. (2000). Public Sector Reform: Rationale, Trends, and Problems.
Routledge.
 Nussbaum, M. C., & Glover, J. (1995). Women, Culture, and Development: A Study
of Human Capabilities. Oxford University Press.
 Young, I. M. (2003). Feminist Theory: From Margin to Center. South End Press.
 Leftwich, A (1994): Governance, the state & the politics of development,
development and change, vol.25, 263-386
 Stivers, Camilla (1992): Gender Images in Public Administration: Legitimacy and
the Administrative State, Sage, London.
 The World Bank, (1992): Governance & Development, Washington DC.

6.11 ADDITIONAL READINGS

 Kabeer, N. (2005). Gender Equality and Women’s Empowerment: A Critical
Analysis of the Third Millennium Development Goal. Gender and Development.
 Lister, R. (2003). Citizenship: Feminist Perspectives. Palgrave Macmillan.
 Meier, K. J., & O'Toole, L. J. (2006). Bureaucracy in a Democratic State: A
Governance Perspective. Johns Hopkins University Press

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UNIT-7: ORGANIZATIONS: FORMAL & INFORMAL, LINE

AND STAFF ORGANIZATIONS
Structure:
7.0 Learning Outcomes
7.1 Introduction
7.2 Importance of Organization
7.3 Meaning of Organization
7.4 Principles of Organization
7.5 Types of Organization
7.5.1 Formal Organization
7.5.2 Informal Organization
7.6 Line and Staff
7.7 Summary
7.8 Key Concepts
7.9 Model Questions
7.10 References
7.11 Additional Readings
7.0 LEARNING OUTCOMES
After going through this Unit, you should be able to:
 Understand the importance of organisation vis-a-vis administration;
 Define Organisation.
 Explain Organisation and its characteristics;
 Define, describe and differentiate between formal and informal organizations.
 Explain Line and Staff
7.1 INTRODUCTION
In the first Unit, an attempt is made to understand nature of organisations, meaning and
definitions and its significance in modern societies. We all know that administration is a
cooperative group effort for the purpose of achieving predetermined objectives or goals.

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Public Administration is an organized activity aiming at provision of services besides

application of constraints to individuals and groups in the society. We know that
organizations are there because they touch us every day. Indeed, they are so common that
we take them for granted. We hardly notice that we are born in a hospital, have our birth
records registered in a government agency, are educated in schools and universities, are
raised on food produced on corporate farms, are treated by doctors engaged in a joint
practice, buy a house built by a construction company and sold by a real estate agency,
borrow money from a bank, turn to police and fire departments when trouble erupts, use
moving companies to change residences, and receive an array of benefits from various
government agencies. Most of us spend many of our waking hours working in an
organization of one type or another.

The key element of an organization is not a building or a set of policies and procedures;
organizations are made up of people and their relationships with one another. An
organization exists when people interact with one another to perform essential functions that
help attain goals. Recent trends in management recognize the importance of human
resources, with most new approaches designed to empower employees with greater
opportunities to learn and contribute as they work together toward common goals. Managers
deliberately structure and coordinate organizational resources to achieve the organization’s
purpose. However, even though work may be structured into separate departments or sets of
activities, most organizations today are striving for greater horizontal coordination of work
activities, often using teams of employees from different functional areas to work together
on projects.

It is obvious that the efforts of different persons have to be in accordance with a

preconceived plan to avoid confusion and working at cross-purposes. Katz and Kahn
observe that when goal-directed activities are coordinated rationally by assignment of duties
and responsibilities, this rational coordination is organisation. Consequently, Public
Administration requires organisation. But organisation can take many different forms and
can maximise many diverse values. The structure of organisation affects the behaviour of the
organisation as a whole and of the individual members of it. The same is true of the
processes through which organisations operate. By designing organisational structures and
processes of one kind or another different purpose can be achieved. Organisations come
into existence for the attainment of some purpose or goal; for example the United Nation
Organisation was established after the end of the Second World War with the noble
objectives of saving the world from the scourge of another war. And we know that much of
the cooperative human effort takes place within formal organisations, of which government
agencies are only one example. Others are private companies, labour unions, religious
institutions, hospitals, universities, professional societies and political parties. It is, therefore,
important to know about the organisation. As rightly observed by David H. Rosenbloom, the
organisation of administrative activity ranks at the forefront or deals questions with which
the student and practitioner of Public Administration must be concerned.

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In this Unit, we will discuss the importance of organisation vis-a-vis administration, types,
typologies, and approaches to organisation.

7.2 IMPORTANCE OF ORGANISATION

In recent years organisations in all spheres of life have been growing in size and complexity.
James G. March and Herbert A. Simon are of opinion that organisations are important
because people spend so much of time in them. The work force, that is the adult population,
spends more than a third of its waking hours in organisations. Even the child spends his time
in the environment of the school organisation. In the words of the Amitai Etzioni “our
society is organisational society”. We are born in hospitals, educated in schools, employed
by business firms or government agencies; we join trade unions and professional
associations. In sickness and in health, at work and at play, life in modern industrial society
is increasingly conducted in organisational settings. Katz and Kahn are of the opinion that
organisations are not a new invention. In many pre-industrial societies, organisations have
been created to pursue specific goals. In the view of many sociologists, organisations have
become the dominant institutions of contemporary society.
7.3 MEANING OF ORGANISATION
The word ‘organising’ springs from ‘organism’, which means a structure with parts or
components integrated in such a way that their relation to the whole governs their relation to
each other.

Noted below are the definitions by few famous writers:

According to Nicholas Henry organisations are different creatures to different people, and
looking at different facts of various organisations such phenomenon appears to be
unavoidable.

Louis Allen
“Organization is the process of identifying and grouping work to be performed, defining
and delegating responsibility and authority and establishing relationships for the purpose of
enabling people to work most effectively together in accomplishing objectives.”

Chester I. Barnard
An organisation as “a system of consciously coordinated personal activities or forces of two
or more persons”.

Victor A. Thompson
An organisation is “a highly rationalised and impersonal integration of a large number of
specialists cooperating to achieve some announced specific objective”.

E. Wight Bakke
An organisation is “a continuing system of differentiated and coordinated human activities
utilising, transforming, and welding together a specific set of human material, capital,
ideational and natural resources into a unique, problem-solving whole whose functions is to

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satisfy particular human needs in interaction with other systems of human activities and
resources in its particular environment”.

Gortner, Harold F., Julianne Mahler, and Jeanne Bell Nicholson

“An organisation is a collection of people engaged in specialised and interdependent activity
to accomplish a goal or mission”.

John M. Gaus, L.D. White, and M.E. Dimock

John M. Gaus, L.D. White, and M.E. Dimock express similar views on organisation. Their
definitions emphasise the following:
Organisation is the arrangement of personnel for facilitating the accomplishment of some
agreed purpose through the allocation of functions and responsibilities. It refers to a
relationship of efforts and capacities of individuals and groups engaged in a common task in
a coordinated way to secure the desired objective with the least friction and the most
satisfaction to those for whom the task is done and for those engaged in the enterprise.

Pfiffner and Sherwood

Organisation is the pattern of ways in which a large number of people, initiate face-to-face
contact, and relate themselves to each other in the conscious and systematic accomplishment
of a mutually agreed purpose.

Herbert Simon
Organisation means a planned system of cooperative effort in which each participant has a
recognised role to play and duties and tasks to perform.

L. Urwick
Organisation determines the activities those are necessary for a purpose (or plan) and
arranging them in the group, which may be assigned to individuals. In this definition, while
the identification of the tasks and their grouping is given priority, the individuals to whom
the functions are entrusted come later.

Dimock, Dimock and Koeing

“Organisation is the systematic bringing together of inter-dependent parts to form a unified
whole through which authority, co-ordination and control may be exercised to achieve a
given purpose. Because the interdependent parts are made up also of people who must be
directed and motivated and whose work must be co-ordinated in order to achieve the
objectives of the enterprise, organisation is both a structure and human beings.”

James D. Mooney
Organisation “refers to more than the frame of the edifice. It refers to the complete body,
with all its correlated functions. If refers to those functions as they appear in action, the very
pulse and heartbeats, the circulation and respiration, the vital movement, so to speak, of the
organised unit. It refers to the co-ordination of all those factors as they co-operate for the
common purpose”.

Amitai Etzioni
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Organisations are “social units (or human groupings) deliberately constructed and
reconstructed to seek specific goals. Corporations, armies, schools, hospitals, churches, and
prisons are included; tribes, classes, ethnic groups, friendship groups, and families are
excluded”. Etzioni stresses the following three characteristics of organisations:
(i) Division of labour, power and responsibilities - divisions which are not random or
traditionally patterned, but deliberately planned to enhance the realisation of specific
goals;
(ii) The presence of one or more power centres which control the concerted efforts of the
organisation and direct them towards its goals; and
(iii) Substitution of personnel, i.e., unsatisfactory persons can be removed and others can be
assigned their tasks. The organisation can also recombine its personnel through transfer
and promotion.
Earnest Dale
Organisation is a system of communication, a means of problem solving and a means of
facilitating decision-making. For him, an organisation is “the process of determining what
must be done if a given aim is to be achieved; dividing the necessary activities into
segments, small enough to be performed by one person; and providing means of co-
ordination, so that there is no wasted effort, and the members of the organisation do not get
into each other’s ways”.
Even though organisations represent different things to different people, it is not enough to
“define” organisations, as James G. March and Herbert A. Simmon once did, with the
phrase, “organisations are more earthworm than ape”. Nicholas Henry identifies the
following characteristics of organisation:
• Purposeful, complex human collectivities;
• Characterised by secondary (or impersonal) relationships;
• Specialised and limited goals;
• Characterised by sustained cooperative activity
• Integrated within a larger social system;
• Provide services and products to their environment;
• Dependent upon exchanges with their environment

These features make up our working model of organisations, both public and private. What
we understand is that organisation is not only a structure but also a set of complex human
collectivities to achieve the purpose or a goal.

According to Nicholas Henry most of the scholars who worked on the organisations have
identified the above characteristics of the organisation and stressed upon different aspects or
features. According to James D. Thomson the literature can be trisected into three major
streams: the closed model, the open model and the newer tradition, which attempts to
synthesise both the models. These three streams, which constitute the threads of organisation
theory, are discussed in the succeeding units.

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7.4 PRINCIPLE OF ORGANISTION

The dictionary meaning of the term principle is a standard or accepted guide to action.
According to L.D. White it is a hypothesis or proposition, so adequately tested by
observation or experiment that it may intelligently be put forward as a guide to action or as a
means of understanding something. Henri Fayol defines principles as acknowledged truths
regarded as processes on which one might rely. Many scholars who studied organisations to
make them perform efficiently develop certain principles to govern the administration,
whether public or private, either to control the work of the subordinates or to improve the
structure of the organisation. Scholars like James. D. Mooney, Alan C. Reiley, Henri Fayol,
Luther Gulick, Urwick and F.W. Taylor evolved principles of organisation as guidelines for
planning an efficient organisational structure. We will discuss the principles of organisation
evolved by some scholars:
Henri Fayol
He has derived a set of fourteen principles of organisation.
 Division of work
The basic objective of this principle is to enable labour to produce more and better work
with same effort.
 Authority and Responsibility
The occupant of each position should be given enough authority to carryout all the
responsibilities assigned to him i.e. responsibility is a corollary of authority; it is its
natural consequence and essential counterpart; and whatsoever authority is exercised
responsibility exists.
 Discipline
Discipline or obedience, imply that members behave in accordance with the standing
agreement between the organisation and its members.
• Unity of Command
The subordinate employee should receive orders from only one superior officer.
• Unity of Direction
One head for each employee and one plan for each activity.
• Subordination of individual interest to general interest
The interest of individual or a group should not prevail over that of the total
organisation. The interest of the organisation should be above the individual and group
interest.
• Remuneration of Personnel
The salary or remuneration paid for the services rendered by the employee should be
fair, encouraging or it shall not be excessive payment or be beyond reasonable limits.
• Centralisation
It simply indicates that overall responsibility is concentrated in the top executive.
• Scalar Chain (Hierarchy)
It is the chain of authority running along the hierarchy from the top level right down to
the bottom level.
• Order (Placement)

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A place for everything in its place i.e. an employee occupies that job wherein he or she
can render the most effective service.
• Equity
Organisation should encourage an atmosphere of equity based on friendliness and justice
in employer-employee relations to enable the employees to fulfil their duties with
devotion.
• Stability of Tenure
A reasonable time should be provided for continuous stay in a job at a given place to
enable the employees to settle down in their jobs, to adjust to the requirements of the
work.
• Initiative
The employees should be provided an opportunity to show their initiative with a view to
improve their skills and sense of participation.
• Esprit de corps
This principle contributes to the need for teamwork and the maintenance of interpersonal
relationships based on harmony and unity.
James D. Mooney and Alan C. Reiley
They proposed four principles of organisation:
• Coordinating Principle
• Scalar Principle
• The Functional Principle
• Staff and Line
Luther Gulick and L. Urwick
Urwick traces a large proportion of friction and confusion in society, with its major
consequences, to faulty arrangements in organisation. Having stressed the importance of the
structure as a designing process Gulick and Urwick devote their attention to the discovery of
principles based on which the structure may be designed.

Gulick contributed ten principles of organisation

• Division of work or specialisation;
• Bases of departmental organisation;
• Co-ordination through hierarchy;
• Deliberate co-ordination;
• Co-ordination through committees;
• Decentralisation;
• Unity of command;
• Staff and line;
• Delegation;
• Span of control.
L. Urwick
He contributed eight principles of organisation
• The principle of objectives – organisation should be an expression of a purpose;
• The principle of correspondence – authority and responsibility must be co-equal;

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• The principle of responsibility – the responsibility of the superiors for the work if the
subordinates are absolute;
• The scalar principle;
• The principle of span of control – a superior cannot supervise directly the work of more
than five or six subordinates whose work interlocks;
• The principle of specialisation – limiting one’s work to a single function;
• The principle of co-ordination; and
• The principle of definition – a clear prescription of every duty.

It is helpful at this stage to define or elaborate a few of the principles outlined by Gulick and
Urwick.
• Principle of Objective: The organisation should be an expression of purpose;
• Division of Work or Specialisation: Gulick claims that work division is the foundation of
organisation; indeed it is the reason for organisation. Without specialisation there would
be little need for administrators. The objective of the division of work is to produce more
and better work with the same effort.
• Principle of Correspondence: Authority and responsibility must be co-equal. According
to Henry Fayol, responsibility is a corollary of authority, it is its natural consequence and
essential counterpart, and whosoever authority exercises responsibility exists;
• Scalar Principle: According to Mooney, it is sometimes called hierarchical, but he prefers
the use of Scalar. According to him scale means a series of steps, something graded. In
organisation, it means the grading of duties, not according to different functions but
according to degree of authority and corresponding responsibility. The term hierarchy
refers to a graded organisation of several successive steps or levels, in which each of the
lower level is immediately subordinate to the next higher one and through it to the other
higher level and so on, right up to the top;
• The Principle of Responsibility: The responsibility of the superior for the work of the
subordinate is absolute;
• The Principle of Span of Control: The Span of Control principle implies that superior
cannot supervise directly the work of more than five or six subordinate whose work
interlock;
• The Principle Unity of Command: It means each employee receives orders from one
superior only. Orders from several superiors will result in confusion, inefficiency and
irresponsibility;
• The Principle of Coordination: According to Mooney Coordination is the first principle
of organisation. The term coordination means effecting cooperation and team work among
the employees in an organisation. It is also integration of several parts into an orderly
whole to achieve the purpose of the organisation.
• The Line and Staff Principle: The term Line refers to authority for execution, and the
term Staff to advice and ideas.
H. Eric Frank
He has identified eleven principles of organisation:
• The objectives of the enterprise and its component elements should be clearly defined and
stated in writing. The organisation should be simple and flexible.

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• The responsibilities assigned to a position should be confined, as far as possible, to the

performance of a single leading function.
• Functions should be assigned to organisation units on the basis of homogeneity of
objectives to achieve the most efficient and economic operation.
• There should be clear lines of authority running from the top to the bottom of the
organisation, and accountability from the bottom to the top.
• The responsibility and authority of each position should b clearly defined in writing.
• Accountability should always be coupled with corresponding authority.
• Authority to take or initiate action should be delegated as close to the scene of action as
possible.
• The number of levels of authority should be kept to the minimum.
• There is a limit to the number of positions that can be effectively supervised by a single
individual.
• Everyone in the organisation should report to only one supervisor.
• The accountability of higher authority for the acts of its subordinates is absolute.

We have seen that most of the scholars of the earlier period have contributed principles for
designing and structuring of an efficient organisation. But the major problem is neglect of
the human element in the organisation. They have considered humans as insignificant in the
administrative process. They have shown concern mostly for the formal organisation, to the
total neglect of the informal organisational process. As a consequence, this gave rise to
human relations and behavioural studies. These studies compensated the failure of the above
scholars by viewing organisation essentially as a human association. We all know that
human beings have to be constantly motivated to contribute their efforts toward the
attainment of the set goals. It is not only the structure, which is important, but equally
important is how to motivate the people within an organisation. So, any organisation should
be based on principles relating to both physical and social aspects of the organization.

7.5 TYPES ORGANISATION

Before we proceed to discuss organisational theory we will try to distinguish between formal
and informal organisation. Let us first discuss what formal organization.

7.5.1 FORMAL ORGANISATION

Mohit Bhattacharya distinguishes formal organisation from social organisation or informal

organisation. According to him formal organisation is established for the explicit purpose of
achieving certain goals, and possesses rules designed to anticipate and shape behaviour in
the direction of these goals, and it has a formal status structure with clearly marked lines of
communication and authority. He observes where social life is carried on without a
framework of explicit goals or rules, which define a formal status structure; it is usually
thought more appropriate to use the term social organisation.

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In the words of H.A. Simon, D.W. Smithburg and V.A. Thompson, Formal organisation
is meant the pattern of behaviour and relationship that is deliberately and legitimately
planned for the members of an organisation.

According to Chester Barnard formal organisation is a system of consciously coordinated

activities or forces of two or more persons and such organisation comes into the existence
only when
a) There are persons able to communicate each other;
b) Who are willing to contribute action; and
c) To accomplish common purpose.

Thus, communication, willingness to serve and a common purpose are the three elements in
a formal organisation.
Barnard observes that individuals in the organisation continuously interact based on their
personal relationship rather than organisational purpose. Such interaction may be due to the
gregarious instinct or fulfilment of some personal desire. Because of the continuous nature
of such interaction, such relations become systematised and result in what are called
informal organisations. He describes an informal organisation as the aggregate of personal
contacts and interactions and the associated grouping of people. These organisations are
indefinite, structureless and are a shapeless mass of varied densities.

The Characteristics of Formal Organisation

• It has a clearly defined structure of activities which is predetermined by the top
management.
• A formal organisation is relatively stable.
• A formal organisation grows and expands.
• The organisation structure is based on division of labour and specialization.
• The structure is based on the jobs to be performed and not according to individuals who
are to perform jobs.
• The organisation does not take into consideration emotional aspect. It is deliberately
impersonal.
• The authority and responsibility relationships created by the organisation structure are to
be honoured by everyone.
• Organizational charts are usually drawn. All the positions from General Manager down to
lower levels appear on the formal chart of the organization.

7.5.2 INFORMAL ORGANISATIONS

Informal organisation is meant the whole pattern of actual behaviour the way members of
the organisation really do behave – insofar as this actual behaviour does not coincide with
the formal plan.
The Characteristics of Informal Organization
An informal organisation has its own characteristics.
• Generally a society evolves its own unwritten laws, beliefs and controls regarding what
are desirable behaviour and what is undesirable. This is what an informal organisation

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also does. People think and act alike in groups and this continuous cooperation gives rise
to common values and common codes of behaviour.
• It forces the members of the group to observe the common rules. It is a very effective
organisation to impose penalties on or punish those who violate these rules.
• The leadership in it is also informal.
• There is stratification also within an informal organisation, which is based on several
factors.

Functions of Informal Organisation

The informal organisation performs the following functions:
• Communication of unintelligible facts, opinions, suggestions and suspicions which cannot
easily pass through formal channels;
• Minimises excessive clicks of political influence;
• Self-discipline of the group; and
• Makes possible the development of important personal influences in the organisation.

Relation between Formal and Informal Organisations

Organisations consist of human beings and they are human organisations. Informal
organisations have a serious impact on the members of the formal organisation, thereby
bringing a continuous interaction between formal and informal organisation. According to
Chester I. Barnard formal organisations create informal organisations as a means of
communication and to protect the individuals from the domination of formal organisations.
In turn, informal organisations tend to formalise several elements, thereby establishing a
formal organisation within an informal organisation. The relation between the two according
to Barnard’s observation is that they are inter-dependent aspects of the same phenomenon –
a society is structured by formal organisation, formal organisations are vitalised and
conditioned by informal organisations. The bottomline is that there cannot be one without
the other. If one organisation fails, the other will necessarily disintegrate.
L.D. White is of the opinion that the two that is informal and formal organisation may
nearly coincide, or they may be far apart. Further he says informal organisation is more
subtle, reflecting such matters as social and economic status outside the work relationship,
race or language differences, education, and personal likes and dislikes. It has a powerful
effect upon the formal organisation; and in cases of conflict may prove dominant.
What we understand from the observations of the two scholars above is that both formal and
informal organisations are important, as both are interdependent.

7.6 LINE AND STAFF

One of the most frequently used concepts in the organization is Staff and Line.
Governmental work is carried out through a complex and elaborate organization. The central
hierarchy of this organization is called ‘Line’ and those which fall on the edge are known as
‘Staff’ and ‘Auxiliary’ agencies. The topmost point of the administrative structure of
government is constituted by the chief executive and helped by some agencies in his work.
These organisations or administrative agencies are divided into three categories are

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1. Line Agencies
2. Staff Agencies, and
3. Auxiliary Agencies
The Line Agencies are those which perform the primary functions of the government, deal
directly with the people and implement government programs directly. Those agencies
which help, advice and assist the line agencies in carried out their work are called Staff
Agencies and those which provide house-keeping services to all other agencies are called as
auxiliary agencies. According to Henry Fayol, “Staff is a group of men who have the
strength, knowledge and time which the line manager may lack”. According to Allen, “Line
refers to those positions and elements of organisation, which have the responsibility and
authority and are accountable for the accomplishment of primary objectives. Staff elements
are those which have responsibility and authority for providing advice and service to the line
in the attainment of objectives.”

What is Line Agency?

The term line is drawn from military organization. Here the hierarchy which commands the
military forces in the battle field is called as ‘Line’. The line authorities are concerned with
the practical functions of government. They deal directly with the people. They are the
central elements of any administrative system. Line agencies are of three kinds

 Departments
 Public Corporation
 Independent Regulatory Commission
The ‘line agencies' are those administrative units or organisations which are directly carrying
out the primary functions of the Government. In order to understand the concept of line units
more clearly let us discuss its important features.

Features of Line Agency

1. Deals with the main functions of the organisation:
Line agencies are carrying out the major, primary or substantive objectives for which
an organisation is established. For example imparting education through teaching is
the major function for which any academic institution or university is established.
Teaching Departments are directly carrying out this objective and therefore, they are
the 'line units' of a university. Accounts department, examination department or
library are not directly teaching or imparting education and therefore they may be
termed as "staff" or "auxiliary" units and not line units. Authority to make Decisions
Secondly, line units have the power and authority to make decisions, issue orders and
control, direct and command the administrators under them. They are in one chain of
command. They are directly in touch with the people and try to seek their cooperation to

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achieve the primary objective of the organization. They command, coordinate, control
and direct the administration.
2. Take decision for the organisation:
Line units have the power and authority to make decisions. They are in one chain of
command. For example, in the Police Department right from the Inspector General of Police
to the police constable all are involved directly, with the maintenance of law and order. They
are all in one line of command. But the Police Training College is not a line unit because it is
outside the line of command and therefore, it is a 'staff unit of the I Home Department.
3. Direct contact with the Public
Line agencies directly deal with the people, they have link with the citizens and provide
them the services for example a teacher teaches the students, a policeman protects the
citizen, a doctor looks after the health of the citizen etc, similarly in the government, the
Health Department, Education Department or Agriculture Department directly provides
services to the concerned people.
4. Implements the Government Programme
Line units are responsible for the implementation of government policies and the
implementation of programmes sanctioned by the legislative or executive authorities.
Entire policy execution is finally their responsibility. They make decisions, issue
orders and command and direct the administration.
 What is a Staff Agency?
The term “Staff Agency has been derived from military administration.” As the growth of
the armies become complex, the field commanders who were engaged in the task of actual
fighting felt the need for specialised services which led to the formation of the general
staff with subsidiary staff agencies under them. With the growth of large corporations
particularly in the United States, the need was felt to adopt a system similar to the army
staff to advice on matters which were not directly connected with business. The system
origins first in the private business managements and later on, moved to the government
organisations. As we know, the Chief executive has to perform diverse type of functions.
If these functions are to be performed efficiently, the head of the service must have full
information about the problems which he has to meet. Whenever the service is one of
magnitude, and the functions are of a technical character, the need for such information
and technical advice of officers having expert knowledge become all the more important.

Definitions of Staff Agency:

According to L D White the staff agencies will perform:

a) Keep the Chief Executive and top officials informed and updated with relevant
information
b) Assisting the Chief Executive and other officials in foreseeing problems and
planning of the future
c) To ensure that the matters which require the final decision making by the Chief
Executive, reach his desk in time and that rational, logical, thoughtful and informed
decisions are taken on those matters

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d) Evaluate the matters which may be settled elsewhere to be excluded in the Chief
Executive’s list
e) Assist him in managing his time well
f) Securing compliance by subordinates through the means of established policies and
execution guidelines.

Luther Gulick has divided the function of staff into three categories such as knowing,
thinking and planning. These are the essential and important functions of the staff agencies
inside the organisation. Peter Self has analysed the functions of staff from another point of
view. In his opinion, “If the staff do function as extensions of their chief persona, it is clear
that their tasks cannot be precisely specified. They will have to attune themselves to the
chief’s personal predilections and style of administration, and concern themselves with those
matters which he considers most urgent”.

According to Mooney, the staff is an expansion of the personality of the executive. It means
more eyes, more ears, and more hands to aid him in forming and carrying out his plans.
Pfiffner and Presthus have describer that staff as the alter ego of the chief executive.
According to Pfiffner, staff agencies are of three kinds, namely

1. The general staff, which assist the chief executive in his administrative work, generally
by advice, collection of information, research, and so on. The fundamental purpose of
general staff is to act as a filter and funnel to the chief executive

2. The technical staff, which advises the chief executive in technical matters and
exercises functional supervision. It is also known as special staff or function staff

3. The auxiliary staff, which provide common housekeeping services to the line agencies.
However, L. D. White and Willoughby do not include the auxiliary agencies under the
category of staff agencies (auxiliary staff) and consider them as a separate and
distinctive unit. White calls them as auxiliary services, while Willoughby refers to
them as institutional or housekeeping services, John Gaus calls them auxiliary –
technical staff services. To understand the concept of staff agencies more clearly, first
we have to look into the salient features.
(a) Staff Agencies perform 'Secondary' functions in Administration In all countries the
line agencies perform the 'primary' function and the staff agencies perform the
'secondary' functions. Their role is supportive and advisory in nature. We have seen
that in the army 'line units' fight and the 'staff units' help in fighting; the 'line units'
carry out the administration and the 'staff units' help them in carrying out the
administration. 'Staff' is like a stick which can help you in walking but which cannot
walk on its own. Line function is an 'end' in itself but the staff function is a 'means' to
achieve an end. Both the primary and secondary functions are important in
administration.
(b) Staff Agencies do not exercise authority and command The very nature of the staff
agencies is such that they do not have authority and power. They do not make

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decisions and issue commands. These are the functions of the 'line'. 'Staff helps the line
in the exercise of the power and authority. The staff advises the 'line' in making
decisions. It has some 'influence' and not authority. But in some cases the 'advice' of
the staff is considered as very significant. It becomes compulsory to accept that advice.
Suppose a person is seriously ill, he goes to a doctor. Doctor advises him to take a
particular medicine. In such a case it becomes compulsory for the patient to take the
medicine advised by the doctor. Here the doctor does not have authority but has a lot
of influence. Similarly, the staff also has influence and not authority.
(c) Staff Agencies do not have executive responsibilities. In administration the chief
executive, the Ministers and the executive heads have the responsibility of carrying out
the administration. 'Staff' agencies are there to help and assist them in their work, they
remain behind the scene. They are not directly responsible for the executive work. If
the government succeeds, the credit goes to the Prime Minister; if it fails the blame
goes on him. He is held responsible. No staff unit can be held responsible for the
success or failure of administration or government.
(d) Staff Agencies do not directly deal with the people The line agencies directly deals
with people and serve the community. The staff agencies provide services to the line
agencies and not to the people. They help, assist and advise the line agencies but they
remain behind the scene. They remain anonymous and in the background. In some
cases the staff agencies perform some delegated functions and come into contact with
the people on behalf of the chief executive. Even in such a case the 'staff' is responsible
to the chief executive and not directly to the people. 5) Stair Units are attached to Line
Units at all levels outside the line of command In any administrative structure the line
of command and authority runs downwards from the chief executive to the heads of
departments (Ministers) to the executive heads ' of different divisions, sections.. . etc.,
and so on. Staff agencies are located outside this line of command. They are attached
to different line units at different levels in the line of authority. They are like the
sidings at a Railway Station to the main rail track. But 'strlrd ~ux~uy~gclrks
sometimes a 'Staff' officer may be a part of the line unit like the secretary of the Home
Department is an adviser to the Home Minister.

 Functions of Staff Agency:

As we know that the staff agencies play a very important role in the administrative
system of a country. Line agencies and executive heads cannot function without the
support and assistance of the staff agencies. In different countries different staff units
perform different types of functions. Let us now try to understand and identify the
major functions of the staff agencies.

a) Assist the Line Agency: The most important function of the staff agencies is to assist,
help and support the chief executive and other line agencies in carrying out their work.
They work on behalf of the chief executives and reduce their burden, relieve them
from the routine matters and save their energy and time for important matters. White
House Office in America or prime Minister's Secretariat in India are predominantly
doing this assistance function. These staff agencies work as additional ears, eyes and

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hands of the chief executive. He serve as the 'filter and funnel' for them. They issue
press notes, write letters, maintain diaries, channel visitors and perform several other
functions to help the executive.

b) Provide relevant Information to the Line Agency: Another main function of the 'staff'
is to provide to the line agencies all relevant information which helps to take necessary
decisions. Staff has to collect, preserve and provide up-to-date information and data.
Collection of information involves research, study, enquiry and surveys etc. The
information collected has to be digested, summarised and presented to the concerned
'line' officer in a suitable form. Suitable and relevant statistical data has also to be kept
up-to-date and supplied whenever required. Bureau of Statistics, Establishment Unit, O
& M Division are engaged in this type of function.

c) Advisory Function In addition to providing relevant information and data necessary for
making a decision, the 'staff' also has to advise the chief executive and line agencies.
They have to place their opinion before the Minister or chief executive. This advice may
be accepted or rejected by the concerned 'line' officer. But consultation and counsel of
the 'staff is taken before making a final decision. Secretary of a department gives his
advice and counsel to his Minister. On matters of planning, the Planning Commission
gives advice to the Government. Advising and consultation are the important functions
of all 'staff' agencies.

d) Supervisory Function. Once a decision is taken by the chief executive it is the function
of the 'staff' to communicate it to the other related line agencies and to see that the
decision is implemented by them. The staff units have to explain the decision, remove
the difficulties in its implementation and supervise their work on behalf of the chief
executive. They have to plan and coordinate their work, maintain contacts with all
related agencies and help the chief executive in his task. The Cabinet Secretariat
performs this supervisory function in India.

e) Delegated Functions: Often the chief executive delegates some authority to a staff
agency. In that case that staff agency performs delegated functions on behalf of the chief
executive within clear and defined limits. For example a Press Secretary of the Prime
Minister issues press notes on behalf of the Bureau of Budget prepares the budget on
behalf of the American President or the Union Public Service Commission conducts the
competitive examinations for the recruitment of the civil servants, on behalf of the
Government of India. Thus, sometimes, the staff exercises delegated authority on behalf
of the line agencies.

Difference between Line and Staff Agencies

LINE AGENCIES STAFF AGENCIES

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Line agencies are meant to accomplishThe staff agencies are there to help the ‘Line
the purpose for which they exist. Agency’.
Line agencies deal with the people Staff agencies always assist the Line agency
directly. and remain behind the curtain.
Line agencies are executing agencies.
Staff agencies are advisory and consultative
agencies.
Line agencies issue orders ‘down the Staff agencies have no such power.
line’.

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 Auxiliary Agencies:
Auxiliary Agencies are the agencies which do not serve the public but the line agencies.
According to Pfiffner, there are three kinds of staff services general staff, technical staff and
auxiliary staff. The general staff is the staff which helps the chief or other officer in his
administrative work by assistance, advice, collection of information, research. The technical
staff consists of the technical officers such as engineers, doctors, financial experts, etc. The
auxiliary staff consists of officers or units who perform certain duties and functions common to
the various administrative departments but which are incidental in character.

Willoughby calls them “institutional” or “house-keeping” activities. Gaus names them

“auxiliary technical staff services.” L.D. White prefers to use the term ‘auxiliary services.’
According to Willoughby and White, these services may not be called ‘staff because they do
not render any advice or assist in the sense in which ‘staff units do. They render certain
services of house-keeping nature to the departments. Auxiliary agencies are the agencies which
serve the line agencies rather than the public. They perform functions common to all the
departments.

A line agency in order to perform the primary duties for which it exists must provide itself with
and maintain a plant; it must establish and operate a system for the recruitment of its personnel;
it must perform the work entailed in contracting, purchasing, storing and issue of supplies; it
must contain a system for keeping of accounts.

In the not too remote past, each department performed these functions separately, i.e., it kept
its own accounts, handled its own funds, purchased all its supplies and equipment and made its
own contracts. But today with specialization of functions in Public Administration it has
become desirable to organize these functions under separate agencies called Auxiliary
Agencies.

 Advantages of Auxiliary Agencies:

The organization of these separate organizational units called Auxiliary Agencies has the
following advantages:
a) The officers in ‘line’ agencies who have the responsibility for the performance of primary
activities are relieved of the duties not directly pertaining to the performance of such
activities and thus will be in a position to devote themselves exclusively to their duties.

b) This system ensures specialization of functions and it is but desirable that if they are to be
effectively performed, they should be put under the charge of those persons who are
expert in those fields.

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c) It secures economy in administration as it avoids duplicity of work. A single auxiliary

agency does a particular work common to all the departments and thus saves time and
money, e.g., the Printing and Stationery does all the printing work for all the departments.

d) The system secures the advantage of closer supervision of the auxiliary functions.
Improved methods may be rapidly introduced as each agency is concerned with only one
type of activity.

e) It will have the advantage of increased scope of operations and reduced unit costs, such as
in large-scale purchasing, common.

 Disadvantages of Auxiliary Agencies:

Auxiliary agencies have been criticized on the following grounds:
a) The establishment of auxiliary agencies means “tearing the department” which tends to
weaken the responsibility of the ‘line’ agencies.

b) The auxiliary agencies may make encroachments upon the responsibilities of the ‘line’
agencies and thus conflict may ensue between them.

c) The auxiliary agencies tend to consider their mission superior to the objects sought by the
line agencies and hence happen to subordinate questions of welfare to economy or mere
symmetry.

d) Sometimes undue delay results in getting the required services or goods on account of
long negotiations with the auxiliary agencies, e.g., the students may not get a lecturer for a
very long time who is to be selected by the Public Service Commission or the college
office may not get stationery for a long time from the Printing and Stationery Department.

7.7 SUMMARY
An organisation is the planned coordination of the activities of a number of persons or
employees for the accomplishment of some common explicit purpose or goal through division of
labour and functions and through hierarchy of authority and responsibility. If two or three
persons have to work to achieve a common goal, there arises the need for an organisation.
Without having a cooperative and systematic relationship between them the results are likely to
be disappointing. James D. Mooney rightly observes that an organisation is necessary whenever
two or more people must combine their efforts towards the same end, even if the task is a short-
lived one, such as moving a large stone. We are living in a world of organisations. For every
aspect we find one or other organisation to provide services. In this unit we try to make you
familiarise with the how importance of organisation for administration and explain the meaning,
importance, and the principles of organisation. The nature and characteristics of formal and

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informal organisations and the distinction between them are discussed. The bases on which the
organisations are established are also presented.
7.8 KEY CONCEPTS
1. Organisation Development: An approach or strategy for increasing organisational
effectiveness. As a process it has no value biases, but it is usually associated with the idea
that effectiveness is found by integrating the individual’s desire for growth with
organisational goals.
2. Organisational Culture: Basic patterns of attitudes, beliefs, and values that underlie an
organisation’s operation.
3. Learning Organisation: Peter Senge’s term for organisations in which new patterns of
thinking are nurtured and people are continually learning together to improve both the
organisation and their personal lives.
4. Post bureaucratic Organisation: Constantly changing temporary organisational systems;
task forces composed of groups of relative strangers with diverse skills created in response to
a special problem rather than to a continuing need.

7.9 MODEL QUESTIONS

1. Can you identify some public administrative organisations that should not be considered
“bureaucratic” from a Weberian perspective?
2. Choose any public administrative function with which you are familiar. How could it be
organised to maximise efficiency, representativeness, and equity?

7.10 REFERENCES

 Baker, R.J.S., 1972, Administrative Theory and Public Administration, Hutchinson University
Library, London.

 Bertram, M. Gross, 1964, The Managing of Organisations, The Administrative Struggle, The
Free Press of Glencoe, Collier-Macmillan., London.

 Bhattacharya, Mohit, 1998, New Horizons of Public Administration, Jawahar Publishers &
Distributors, New Delhi.

 Denhardt, Robert B. and Joseph W. Grubbs, 2003, Public Administration - An action

Orientation, Fourth Edition, Thomson (Wadsworth), Canada.

 Prasad, D. Ravindra, V.S. Prasad and P. Satyanarayan, 2004, Administrative Thinkers (Ed),
Sterling Publishers, New Delhi.

 Pugh, D.S., 1985, Organisation Theory: Selected Readings (Ed), Penguin Books, Middlesex,
England.

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 Sharma, M.P. & B.L. Sardana, 1988, Public Administration in Theory and Practice, Kitab
Mahal, New Delhi.

 Srivastava, Om Prie, 1991, Public Administration and Management, The Broadening

Horizons, Volume 1, Himalaya Publishing House, Delhi.

7.11 ADDITIONAL READINGS

 Prasad, D. Ravindra, V.S. Prasad and P. Satyanarayan, 2004, Administrative Thinkers (Ed),
Sterling Publishers, New Delhi.
 Pugh, D.S., 1985, Organisation Theory: Selected Readings (Ed), Penguin Books, Middlesex,
England.
 Sharma, M.P. & B.L. Sardana, 1988, Public Administration in Theory and Practice, Kitab
Mahal, New Delhi.
 Srivastava, Om Prie, 1991, Public Administration and Management, The Broadening
Horizons, Volume 1, Himalaya Publishing House, Delhi.

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UNIT-8: PRINCIPLES OF ORGANIZATION: HIERARCHY,

SPAN OF CONTROL, UNITY OF COMMAND
Structure:
8.0 Learning Objectives
8.1 Introduction
8.2 Hierarchy
8.2.1 Meaning of Hierarchy
8.2.2 Features of Hierarchy

8.2.3 Advantages of Hierarchy

8.2.4 Demerits of Hierarchy
8.3 Unity of Command: Introduction
8.3.1 Historical Background
8.3.2 Meaning of Unity of Command
8.3.3 Concept of Unity of Command
8.3.4 Principles of Management Described by Hierarchy
8.4 Span of Control: Concept and Concerns
8.4.1 Factors affecting Span of Control
8.5 Conclusion
8.6 Activities
8.7 References
8.8 Additional Readings

8.0 LEARNING OBJECTIVES

After reading this Unit, You should be able to:

 Understand the concept of Hierarchy.
 Understand the Importance of the Unity of Command.
 Understand the Span of Control.

8.1 INTRODUCTION

Hierarchy is one of the most significant principles of organization and it occupies the prominent
place in the writings of classical thinkers. The first part describes the meaning of hierarchy. The
second part includes its application and features. The third part explains the advantages and

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disadvantages of hierarchy. The fourth part explores the measures to overcome the disadvantages
of hierarchy and attempt of some organization to introduce newer form of governance by
replacing hierarchical organisation.

8.2 HIERARCHY

Hierarchy is composed of the Greek like an article of faith in a religious creed; hierarchy is a
symbol of belief in mythic form of administrative organization. Words hieros (Sacred) and
archein (rule or order) originally referring to an order of angels, the term came to signify an
order of clergy like an article of faith in a religious creed, hierarchy is a symbol of belief in
mythic form of administrative organization. So it derives from the Greek term for the ruling
structure of religious organizations. In modern societies, hierarchical organizations have
pervaded all aspects of life. Classical organization theorist emphasized the hierarchy as the
central feature of organization. Hierarchy is basic structural feature of Organisation in Max
Weber‟s bureaucratic model. There are two views about the concept of hierarchy. Conventional
view, epitomized by Max Weber‟s analysis of modern bureaucracy, highlights legal-rational
authority in formal organisation. This view holds that hierarchical organisation is bound together
in a chain of command. Authority is gradually transferred from top to bottom and relationship
between units at different level is that of superior and subordination and each unit is accountable
to one superior at next level. Hierarchical organisation is based on division of labor. Each unit is
functionally differentiated and specialized in the performance of specific functions assigned to
them. These units are also entrusted with requisite authority and sanctions. Rules and regulations
are impersonal and objective and decide the role, behaviour and relationships among the
members of organisations. It, however, also implies inequality in power structure and is not
conducive to team work and it creates artificial relationship among the members of organisation.

The second view known as instrumentalist view is held by Herbert Simon who provided notion
of hierarchy in his analysis of complex system. Simon believed that instead of defining hierarchy
in terms of authority relationships, it needs to be seen by its role to reduce complexity of
organisations and making the arrangement or division of organisational units or sub-units in such
way as to best achieve the organisational objectives. This view is based on voluntaristic view of
authority. Authority according to this view is not imposed; rather it is based on mutual consent.
But it has also created some problems like those arising from delegation of decision making
authority and span of control which affect the overall organisational management.

8.2.1 MEANING: HIERARCHY

Literally, hierarchy means rule or control of higher over the lower. Concretely, hierarchy means a
graded organization of successive steps or levels in which each of lower level is immediately
subordinate to the next higher one and through it, to the other higher steps right upto to top.

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Oxford English dictionary defines hierarchy as “a body of person or things ranked in grades,
orders or classes, one above another”.
In the words of L.D.White, “Hierarchy consists in the universal application of superior –
subordinate relationships through number of level of responsibility reaching from top to bottom
of the structure.

Paul H.Appleby defined hierarchy thus “it is the means by which resources are apportioned,
Personnel selected and assigned, operations activated, reviewed and modified”.
According to Weber, “the organization of offices follows the principle of hierarchy, that is, each
lower office is under the control and supervision of higher one”.
J.D. Millet defined hierarchy as a method whereby efforts of different individual are geared
together.
Hierarchy creates pyramidal structure which Mooney and Reiley calls the „Scalar Process‟.In the
words of Mooney, scale means a series of steps, something graded. Thus it creates ladder like
structure of organization. This principle is strictly followed in organization where discipline is
primary requirement like police, army. Hierarchy of police administration in state is shown
below:
Director General of Police

Inspector general of police

Deputy Inspector General of Police

Superintendent of police

Deputy Superintendent of Police

Circle Inspector

Sub Inspector

Additional sub Inspector

Head Constable

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Constable
In organization it means grading of duties, not according to functions, but according to degree of
authority and corresponding responsibility. Hierarchy usually develops out of qualitative changes
in the nature of work whereby at each higher level, the nature of work becomes different and
demands a higher order of supervision.
The structure and functioning of hierarchical organization may be illustrated by following
diagram:-

In the diagram shown above A is head of organization and is expected to exercise control and
supervision over the entire organization but he cannot do all himself. Therefore intermediate
levels are created to by delegating authority achieve this purpose. B is A‟s immediate
subordinate. C is B‟s immediate subordinate but is also immediately subordinate to A through B.
D is immediately subordinate to C but immediately also to B and A. In the same way E is
immediate subordinate to D, but mediate subordination through D to C, and B to A. Finally F is
immediately under E, but immediately also under D, C, B and A. The same applies to the letter
shown along the other arm of the angle. If A issue order to F, it must descend to F through all
levels i.e. B, C, D and E to finally reach to F. If F addresses a communication to A, it will pass
though all the channels of EDCB to ascend to A. Similarly if F has to communicate some
proposal to K, it must travel upto A through EDCB and then descend from A to K through G, H, I
and J. F, A, K represent the line of authority linking the whole organization together.

8.2.2 FEATURES OF HIERARCHY

1.It functions on the principle of “Through Proper Channel”. Every proposal or paper has to pass
through all channels. No intermediate level in the hierarchy is skipped over in transacting
transcending official business either in upward or downward directions.
2.Unity of command is essential feature of hierarchical organization.
3.Authority is distributed at various levels in organization.

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4.The superior has the right to issue order; commands, instructions and subordinate have
obligations to carry out the same. They put suggestions, request and permission regarding work
or programmes.
5.Hierarchical organization is broader at base and goes on tapering towards the top.
6.Authority vested in an official at every level should be commensurate with the responsibility
entrusted to him.
7.Status, authority, salary and other privileges go on increasing at successive higher level.

8.2.3 ADVANTAGES OF HIERARCHY

1.This Principle keeps the various units of organization integrated or linked together. It clarifies
the unity of purpose and fix the responsibility of various units for the work assigned.
2.It makes the process of communication easy. Everyone in the organization knows from where
the order and instructions will come and who will report to whom.
3.It distributes authority and responsibility at various levels. Consequently various decision
making centres are created. It makes the process of delegations of authority easier.
4.There is division of labour among the various units of organization which bring the
specialization among the members of organization and increase the efficiency of organization.
5.It helps to clarify the relative position and responsibility of each post in the organization.
6.In a hierarchical organization policy matters are decided at higher level. The middle levels
exercise control and supervision over lower levels to ensure that they function to achieve the
desired purpose and lower levels perform the operational work.
7.This Principle clearly specifies the authority and responsibility. Consequently there is no
conflict of jurisdiction among the member of organization.
8.In a hierarchical organization every communication takes place through proper channel. It
keeps the members of organization informed and saves time.
9.Hierarchy facilitates detailed examination of papers and helps the Chief Executive through the
process of filter and funnel. Only the essential information reaches the higher level while the non
essential and unnecessary remain at lower levels. It saves the time of Chief Executive.
10. Hierarchy enforces discipline in organization. Officials are duty bound to follow the orders
and directives of their immediate boss. It keeps the organization disciplined.
11. It is built in device to achieve consensus in organisation.
12. This principle helps to fix the duties and responsibility of each official at different levels of
organization.

8.2.4 DEMERITS OF HIERARCHY

1.The Principal defects in the hierarchical organization are that is causes considerable delay in
the disposal of work. A file, proposal or communication has to pass through all the channels. In
this process, it may cause delay of days weeks or even months.

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2.It promotes superior- subordinate relationship among the members of organization which is
neither conducive for team work nor development of dynamic human relationship among its
members.
3.Confirm to rigid procedure and formalities involve red tape.
4.It promotes corruption as it involves delay in disposal of work.
5.It discourages the initiative and participation of lower participants in the organization. They
have to follow and carry out orders & instructions of their superior in a mechanical manner.
6.It has the tendency to make the organization „Tall‟ and in consequence the men at top lose
touch with the men at bottom.
7.Specialization and formalization of roles in hierarchical Organisation can ensure stability and
predictability of behaviour of their members, but it can also hinder flexible and adaptive
governance.
8.Hierarchical organisations are controlled and organized in top-down manner; it may be
indifferent to the diverse interests of their stakeholders and against the spirit of participative
governance.
9.The perceived inaptness and its inherent weaknesses to respond to different demands and
pressure may erode its legitimacy as effective governing mechanism.

Therefore, there are inherent dangers of conformity to hierarchy. In order to overcome these
defects, Fayol has suggested a bridge across formal line of authority of the hierarchy so that
subordinate officers in one department, division or section may contact directly their counterparts
in another departments or section. This he termed as Gangplank. Thus delay caused can be
avoided without violating the essential principle of hierarchy. Such a bridge is shown in the
diagram by the dotted line between F and K. The only condition to recourse to Gangplank is to
take authorization from their immediate supervisors (in the shown diagram E and J) and keep
them well informed of what transpired between them. The system works perfectly well so long
as officers making such contact are in agreement with their counterparts and enjoy the
confidence of their superiors.

The other device to overcome red tape is level jumping which involves bypassing one or more
intermediate steps in the vertical line of authority, so that direct contact is established between
officers. The officers skipped over may be informed of the action proposed or taken. In this
respect, it is worth mentioning that Government of India has started file jumping experiment so
that files, directly reach the decision making authority.

So with proper confidence and loyalty between superior and subordinates, the delay of scalar
organization can be very much reduced if not altogether eliminated. In modern times (paragraph
enclosed). Doubts have been raised about the efficacy of hierarchical principle to respond to
diverse challenges and problems in contemporary scenario in Public Administration.6 Its features
like centralization of authority, rigidity and formalization of roles are unsuitable for team

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building and participative governance. Measures have been taken to respond to these concerns
and challenges. First attempt in this direction is to restructure authority by reducing the number
of hierarchical levels. The second measure is market based solution, government privatize the
public services and outsource its operations and activities to other agencies. Thirdly, Newer
modes of governance have been tried and experimented upon by some organisations like
Networks, partnerships, projects etc to replace hierarchical organisation.8 The current concern in
discipline is on changing authority structure, enhancing capability and ensuring accountability
by making it more participative of Public organisations.

8.3 UNITY OF COMMAND: INTRODUCTION

Public Administration as an organised activity provides various services to the people and
regulates the behavior of individuals and groups in society. Consequently, Public Administration
requires the basic tool of organisation for keeping the administrative process operating. As Prof.
George E. Berkely says, ―All administration requires an organisation of some shape, size, or
kind and all organisations carry on some measure of administrative activity‖. Since much of
contemporary life involves organisations, it is necessary here to understand briefly what an
organisation is. An organisation is essentially a group of people engaged in a coordinated and
cooperative effort, working toward a common goal. To James

D. Mooney, ―Organisation is the form of every human association for the attainment of a
common purpose‖. It refers to the pattern of interrelationships which is established between the
workers engaged in the pursuit of common objectives.

It is based on a net-work of personal relationships and group ties developed by workers. It

concerns how the employees actually behave in an organisation. Gulick notes that any manager
will have a finite amount of time and energy, and discusses control under coordination.

Also under coordination, as well as organization, Gulick emphasizes the theory of unity of
command, that each worker should only have one direct superior so as to avoid confusion and
inefficiency. Still another theory borrowed from military organizational theory, particularly Sir
Ian Hamilton and Lyndall Urwickand brought to prominence in non-military management and
Public Administration by Gulick and Urwick is the distinction between operational components
of an organization, the do-ers, and coordinating, the coordinating components of an organization
who do the knowing, thinking, and planning. In the military, this is divided between "line" and
"staff" functions. Gulick gives the private-sector example of a holding company performing
limited coordinating, planning, and finance functions, with subsidiary companies carrying out
their work with extensive autonomy as it saw fit according to the parent company's overall
direction. Gulick states that his statement of the work of a chief executive is adapted from the
functional analysis elaborated by Henri Fayol in his "Industrial and General Administration".

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Indeed, Fayol's work includes fourteen principles and five elements of management that lay the
foundations of Gulick's POSDCORB tasks of an executive.

Fayol's fourteen principles of management are as follows:

 Division of Work
 Authority and Responsibility
 Discipline
 Unity of Command
 Unity of Direction
 Subordination of Individual Interest to General Interest
 Remuneration of Personnel
• Centralization
• Scalar Chain (line of authority with peer level communication)
• Equity
• Stability of Tenure of Personnel
• Initiative
 Esprit de Corps
Fayol's influence upon Gulick is readily apparent in the five elements of management discussed
in his book,

Planning - examining the future and drawing up plan which are of actions
Organizing - building up the structure (labor and material) of the undertaking
Command - maintaining activity among the personnel
Co-ordination - unifying and harmonizing activities and efforts

Control - seeing that everything occurs in conformity with policies and practices
In his 1987 piece "Deja Vu: French Antecedents of American Public Administration," Daniel
Martin notes that virtually all of the principles in American Public Administration up to 1937 and
the coining of the POSDCORB acronym, including the POSDCORB principles, were present in
the French literature on the subject by 1859, but that this literature had largely been forgotten by
the theorists of that era, thus the "re-invention" of these principles in the later French and
American literature.

Classical administrative thinkers focused on structural aspect of organisation. They believed that
the setting up of proper organisation requires the observance of certain administrative principles.
Therefore, the classical writers such as Henry Fayol and Luther Gulick developed and discussed
comprehensively the so called administrative principles of division of work, coordination,
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departmentalization, hierarchy, authority, unity of command, span of control, delegation,

centralization and decentralization, and so on. These writers thought that these principles can
guide administrators not only in the creation of effective organisation but also to enhance the
academic status of Public Administration. In their opinion, these principles are universal in
nature and applicable to diverse organisation in both public and private sectors.

Organisation is also related to management. Management is concerned with getting things done
through other people in an organizational setting. It is the direction of a group‘s efforts toward
the achievement of specified goals. Management is regarded as the collective utilization of
human and material resources to achieve defined goals of the organisation. While organisation
provides the structure for the conduct of the work of an agency, management provides
leadership, planning, direction, supervision and control. The efficient execution of government‘s
policies and programmes depends upon effective management and utilization of material and
human resources.

Orgnisation is method of dividing work among different people. Aristotle has suggested two
ways of dividing work: First, division of work according to men or class of men and second,
division of work according to the service. In 1968 Halden Committee said, upon what principles
are the functions of departments to be determined and allocated?

There appear to be only two alternatives which may briefly be described as distribution
according to process or classes to be dealt with and distribution according to the services to be
performed.

The principle of division of work is basic for the proper and efficient functioning of an
organisation. The importance of this principle of division of labour is clearly brought out by
Kautilya in his Arthashastra when he says that the king alone cannot carry on the entire
administration without assistance.

According to Henri Fayol, division of work belongs to the natural order. Fayol compares
organisation to huge animals. Animals evolved by specializing their biological structure and the
brain grew bigger. In the same way organisation develops by developing sound principles and
methods. Fayol believes that organisation develops by refining their division of work and the
central staffs gets bigger. POSDCORB is an acronym widely used in the field of Management
and Public Administration that reflects the classic view of administrative management. Largely
drawn from the work of French industrialist Henri Fayol, it first appeared in a 1937 staff paper
by Luther Gulick and Lyndall Urwick written for the Brownlow Committee. The acronym stands
for steps in the administrative process: Planning, Organizing, Staffing, Directing,
Coordinating, Reporting and Budgeting. Gulick's "Notes on the Theory of Organization"
further defines the principles of POSDCORB by explaining that if an executive's workload
becomes too overwhelming, some of the elements of POSDCORB can be organized as
subdivisions of the executive, depending on the size and complexity of the enterprise. Under

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organizing, Gulick emphasized the division and specialization of labor in a manner that will
increase efficiency. Gulick notes that there are three limitations to division of labor. The first
occurs when labor is divided to the point where anyone task in the division of labor would
require less than the full time of a worker, in which case a worker may need to be employed in
other tasks to fill up their time. The second limitation to division of labor arises from technology
and custom, where certain tasks may only be handled by certain workers either because of a lack
of technological means or customs at the time. Gulick gives the example of a single worksite in
which only plumbers do the plumbing work and electricians do the electrical work, though this
may not take up their full work time. Work in these areas could be re-combined in a manner to
increase efficiency, however union considerations could prevent this. The third limitation to
division of labor is that it must not pass beyond physical division into organic division, or
intricately related activities must not be separated from each other. Gulick gives the example that
while it may seem more efficient to have the front end of a cow grazing in pasture at all times
and the back half being milked at all times, this would not work due to the intricate connection
between the haves that is needed for the whole to function.

8.3.1 HISTORICAL BACKGROUND

The chain of command principle is ancient, but its application to the management of
organisations was only systematized in the twentieth century. Two individual French engineer
and executive Henri Fayol and the German sociologist Max Weber contributed much to our
understanding of this principle. In his book, General and Industrial Management, Fayol
presented what have come to be known as the fourteen principles of management. These
principles include both the unity of command (his fourth principle) and the scalar chain (line of
authority). Fayol‘s principle of the unity of command holds that a subordinate should report to
one and only one supervisor. Fayol believed that this was necessary to provide the supervisor
with clear position authority, and to prevent a subordinate from receiving conflicting orders.
Fayol‘s scalar chain principle states that authority and responsibility flow, one level at a time, in
a vertical line from the highest level in an organisation to its lowest level. This line of authority
establishes an organization‘s hierarchy. Fayol believed that it was a management error to
abandon the chain of command for no reason, but he also allowed for circumstances in which the
chain of command might be bypassed for the good of the company. For example, Fayol
suggested that communication delays might sometimes be caused by blind adherence to the
chain of command and unity of command principles, and proposed what he called the
gangplank, which allows communications outside the chain of command as long as superiors are
made aware.

A problem associated with the chain of command occurs when a subordinate bypasses a manager
in either the giving of information or the requesting of a decision. This act undermines the
authority and position of the manager who is bypassed. If this practice is allowed to continue in a
bureaucratically-organized company, morale of the managers will decline. The urgency and

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frequency of these situations may, of course, mitigate the impact and inappropriateness of such
contacts. With the rapidly-changing environment and increasing uncertainty that organizations
face in the twenty-first century, some adopt structures that emphasize flexibility and quick
response to change. Weber also studied the problems inherent in large organisations, as
organisations grew from family structures to much larger entities during the Industrial
Revolution. Weber proposed the bureaucracy as a model of efficient organisation. Bureaucratic
characteristics have clearly defined hierarchies of authority and responsibility, consistent with the
chain of command principle.

8.3.2 MEANING OF UNITY OF COMMAND

Unity of command means that an employee should receive orders from one superior only. In
other words, it means that no employee should be subjected to the orders of more than one
superior. Thus, it stands for single boss for each person or mono-command. Unity of command
is a basic principle of classical Public Administration. It means that each subordinate should have
one and only one superior‖, with orders flowing from and accountability flowing to that single
superior. It bases itself on the old proverb that no man can serve two masters. This important
principle is drawn from the hierarchical organisation characterized by scalar chain running
throughout the organisation. The scalar chain provides for a unified command, one head
directing the activities of the entire organisation. Thus, the scalar principle contains the concept
of unit of command.

In addition to the above meaning of unity of command is also interpreted in two other ways:
(i) It means that all the units of an organisation should be integrated or brought under the
authority of one head like a President, a Cabinet, a Minister, a Secretary, a Chairman or some
other body or officer.
(ii) It means that the head of the organisation should be a single individual. More elaborately, it
means that there should be only one person and not a body of persons at the apex of an
organisation, and all lines of authority should be concentrated in his hand.
In the first sense, unity of command is incompatible with the independent or autonomous units of
organisations like the public corporations or constitutional bodies in India or the independent
regulatory commissions in USA and so on.

In the second sense, it is incompatible with Commission type or Board type of organisations like
the Election Commission, the Union Public Service Commission, the University Grants
Commission, the Railway Board, and the Flood Control Board and so on.

Hence, the most widely accepted interpretation of unity of command is the one given above.
Unity of command is one of the Henri Fayol‘s 14 principles of Management. This principle
states that there must be only one superior of a subordinate. That is an employee or a worker

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must not have many bosses or superiors. If an employee of subordinate has to work under the
influence of many bosses or superiors, then it creates a confusing situation dilemma and disorder.
This also affects overall efficiency, productivity and profit of the organisation, but also creates
confusion about the accountability of an employee. Thus according to the principle of unity of
command, too many heads (bosses or superiors) must not boss or supervise the same amount of
work being done by a worker or an employee. In other words, the work of a worker or job of an
employee must always be supervised by a single head.

8.3.3 CONCEPT OF UNITY OF COMMAND

The concept of unity of command is essential to avoid confusion and manipulation in

organisations. Duality or multiplicity of command keeps an employee under confusion and
conflicting situation, for instance, whom ‘to follow and what ‘to follow. Further, a subordinate
can also evade orders by playing-off one superior against another, which undermines the
organisational purpose. Henry Fayol is the most important advocate of the principle of unity of
command. He asserted that, should it be violated, authority is undermined; discipline is in
jeopardy, order disturbed and stability threatened.

As soon as two superiors wield their authority over the same person or department, uneasiness
makes itself felt and should the cause persist, the disorder increases, the malady takes on the
appearance or an organism troubled by a foreign body, and the following consequences are to be
observed; either the dual command ends in disappearance or elimination of one of the superiors
and organic well-being is restored, or else the organism continues to wither away. In no case is
there adaption of the social organism to dual command.

Gulick and Urwick have also supported the principle of unity of command. They believed that,
a man cannot serve two masters. Hence, they concluded that, well-managed administrative units
in the government are almost without exception headed by single administrators. Gullick
explains the importance of this principle, any rigid adherence to the principle of unity of
command may have its absurdities. But they are unimportant in comparison to the certainty of
confusion, inefficiency and irresponsibility which arise from the violation of the principle.

The concept of unity of command has been opposed by many writers. Seckler Hudson argues,
the old concept of one single boss for each person is seldom found in fact in complex
governmental situations. Many interrelationships exist outside the straight line of command
which require working with, and reporting to many persons for purpose of orderly and effective
performance, the administrator in government has many bosses and he can neglect none of them.
From one he may receive policy orders‘ from another, personnel; from a third, budget; from a
fourth, supplies and equipment J.D. Millet advocates the theory of Dual Supervision‘ in place of
unity of command. He argues that the concept of unity of command needs to be reconciled with

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the recognition that supervision of any activity may be dual-technical (professional) and
administrative.

These two types of supervision may be exercised by different individuals. The former may be
concerned with the professional competence in the performance of a job, while, the latter may be
chiefly interested in the efficient utilization of men and material resources available for the job.
He concludes that it should be kept in mind that under no circumstance and employee is subject
to conflicting commands.

Moreover, the concept of unity of command has been affected by the following two factors
which are the result of growing size and complexity of modern organisations,

(i) Adoption of plural headed bodies like boards and commissions as the heads of administrative
agencies as against bureaus‘(headed by a single individual).
(ii) Increasing number and growing influence and power of staff and auxiliary agencies which
are manned by specialists.

A principle refers to a fundamental truth. It establishes cause and effect relationship between two
or more variables under given situation. They serve as a guide to thought & actions. Therefore,
management principles are the statements of fundamental truth based on logic which provides
guidelines for managerial decision making and actions. These principles are derived: -
(a) On the basis of observation and analysis i.e. practical experience of managers.
(b) By conducting experimental studies.
8.3.4 PRINCIPLES OF MANAGEMENT DESCRIBED BY HENRI FAYOL

Division of Labor
(a) Henry Fayol has stressed on the specialization of jobs.
(b) He recommended that work of all kinds must be divided & subdivided and allotted to various
persons according to their expertise in a particular area.
(c) Subdivision of work makes it simpler and results in efficiency.
(d) It also helps the individual in acquiring speed, accuracy in his performance.
(e) Specialization leads to efficiency & economy in spheres of business.
Party of Authority & Responsibility
(a) Authority & responsibility are co-existing.
(b) If authority is given to a person, he should also be made responsible.
(c) In a same way, if anyone is made responsible for any job, he should also have concerned
authority.

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(d) Authority refers to the right of superiors to get exactness from their sub-ordinates whereas
responsibility means obligation for the performance of the job assigned.
(e) There should be a balance between the two i.e. they must go hand in hand.
(f) Authority without responsibility leads to irresponsible behavior whereas responsibility
without authority makes the person ineffective.

Principle of One Boss

(a) A sub-ordinate should receive orders and be accountable to one and only one boss at a time.
(b) In other words, a sub-ordinate should not receive instructions from more than one person
because :
- It undermines authority
- Weakens discipline
- Divides loyalty
- Creates confusion
- Delays and chaos
- Escaping responsibilities
- Duplication of work
- Overlapping of efforts
(c) Therefore, dual sub-ordination should be avoided unless and until it is absolutely essential.
(d) Unity of command provides the enterprise a disciplined, stable & orderly existence.
(e) It creates harmonious relationship between superiors and sub-ordinates.
Unity of Direction
(a) Fayol advocates one head one plan which means that there should be one plan for a group of
activities having similar objectives.
(b) Related activities should be grouped together. There should be one plan of action for them
and they should be under the charge of a particular manager.

(c) According to this principle, efforts of all the members of the organization should be directed
towards common goal.
(d) Without unity of direction, unity of action cannot be achieved.
(e) In fact, unity of command is not possible without unity of direction.

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Basis Unity of command Unity of direction

Meaning It implies that a sub-ordinate should It means one head, one plan for a
receive orders & instructions from only group of activities having similar
one boss. objectives.

Nature It is related to the functioning of It is related to the functioning of

personnel‘s. departments, or organization as a
whole.

Necessity It is necessary for fixing responsibility of It is necessary for

each subordinate. sound organization.

Advantage It avoids conflicts, confusion & chaos. It avoids duplication of efforts and
wastage of resources.

Result It leads to better superior sub-ordinate It leads to smooth running of the

relationship. enterprise.

Therefore it is obvious that they are different from each other but they are dependent on each
other i.e. unity of direction is a pre-requisite for unity of command. But it does not automatically
come from the unity of direction.

Equity
(a) Equity means combination of fairness, kindness & justice.
(b) The employees should be treated with kindness & equity if devotion is expected of them.
(c) It implies that managers should be fair and impartial while dealing with the subordinates.
(d) They should give similar treatment to people of similar position.
(e) They should not discriminate with respect to age, caste, sex, religion, relation etc.
(f) Equity is essential to create and maintain cordial relations between the managers and sub-
ordinate.
(g) But equity does not mean total absence of harshness.
(h) Fayol was of opinion that, at times force and harshness might become necessary for the sake
of equity.
Order
(a) This principle is concerned with proper & systematic arrangement of things and people.

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(b) Arrangement of things is called material order and placement of people is called social order.
(c) Material order- There should be safe, appropriate and specific place for every article and
every place to be effectively used for specific activity and commodity.
(d) Social order- Selection and appointment of most suitable person on the suitable job. There
should be a specific place for everyone and everyone should have a specific place so that
they can easily be contacted whenever need arises.

Discipline
(a) According to Fayol, Discipline means sincerity, obedience, respect of authority & observance
of rules and regulations of the enterprise‖.
(b) This principle applies that subordinate should respect their superiors and obey their order.
(c) It is an important requisite for smooth running of the enterprise.
(d) Discipline is not only required on path of subordinates but also on the part of management.
(e) Discipline can be enforced if :
- There are good superiors at all levels.
- There are clear & fair agreements with workers.
- Sanctions (punishments) are judiciously applied.

Initiative
(a) Workers should be encouraged to take initiative in the work assigned to them.
(b) It means eagerness to initiate actions without being asked to do so.
(c) Fayol advised that management should provide opportunity to its employees to suggest
ideas, experiences& new method of work.
(d) It helps in developing an atmosphere of trust and understanding.
(e) People then enjoy working in the organization because it adds to their zeal and energy.
(f) To suggest improvement in formulation & implementation of place.
(g) They can be encouraged with the help of monetary & non-monetary incentives.

Fair Remuneration
(a) The quantum and method of remuneration to be paid to the workers should be fair,
reasonable, satisfactory & rewarding of the efforts.
(b) As far as possible it should accord satisfaction to both employer and the employees.
(c) Wages should be determined on the basis of cost of living, work assigned, financial position
of the business, wage rate prevailing etc.
(d) Logical & appropriate wage rates and methods of their payment reduce tension &
differences between workers & management creates harmonious relationship and pleasing
atmosphere of work.

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(e) Fayol also recommended provision of other benefits such as free education, medical &
residential facilities to workers.

Stability of Tenure
(a) Fayol emphasized that employees should not be moved frequently from one job position to
another i.e. the period of service in a job should be fixed.
(b) Therefore employees should be appointed after keeping in view principles of recruitment &
selection but once they are appointed their services should be served.
(c) According to Fayol. Time is required for an employee to get used to a new work & succeed
to doing it well but if he is removed before that he will not be able to render worthwhile
services‖.
(d) As a result, the time, effort and money spent on training the worker will go waste.
(e) Stability of job creates team spirit and a sense of belongingness among workers which
ultimately increase the quality as well as quantity of work.
(f) Fayol defines scalar chain as ‘The chain of superiors ranging from the ultimate authority to
the lowest.
(g) Every orders, instructions, messages, requests, explanation etc. has to pass through Scalar
chain.
(h) But, for the sake of convenience & urgency, this path can be cut shirt and this short cut is
known as Gang Plank.
Sub-Ordination of Individual Interest to General Interest
(a) An organization is much bigger than the individual it constitutes therefore interest of the
undertaking should prevail in all circumstances.
(b) As far as possible, reconciliation should be achieved between individual and group interests.
(c) But in case of conflict, individual must sacrifice for bigger interests.
(d) In order to achieve this attitude, it is essential that :
 Employees should be honest & sincere.
 Proper & regular supervision of work.
 Reconciliation of mutual differences and clashes by mutual agreement. For example, for
change of location of plant, for change of profit sharing ratio, etc.
E-spirit De’ Corps (can be achieved through unity of command)

(a) It refers to team spirit i.e. harmony in the work groups and mutual understanding among the
members.
(b) Espirit De‘Corps inspires workers to work harder.
(c) Fayol cautioned the managers against dividing the employees into competing groups
because it might damage the moral of the workers and interest of the undertaking in the long
run.

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(d) To inculcate Espirit De‘ Corps following steps should be undertaken :

 There should be proper co-ordination of work at all levels
 Subordinates should be encouraged to develop informal relations among themselves.
 Efforts should be made to create enthusiasm and keenness among subordinates so that they can
work to the maximum ability.
 Efficient employees should be rewarded and those who are not up to the mark should be given
a chance to improve their performance.
 Subordinates should be made conscious of that whatever they are doing is of great importance
to the business & society.
(e) He also cautioned against the more use of Britain communication to the subordinates i.e. face
to face communication should be developed. The managers should infuse team spirit &
belongingness. There should be no place for misunderstanding. People then enjoy working in
the organization & offer their best towards the organization.
Centralization & De-Centralization

a) Centralization means concentration of authority at the top level. In other words,

centralization is a situation in which top management retains most of the decision making
authority.
b) Decentralization means disposal of decision making authority to all the levels of the
organization. In other words, sharing authority downwards is decentralization.
c) According to Fayol, Degree of centralization or decentralization depends on no. of factors
like size of business, experience of superiors, dependability & ability of subordinates etc.
d) Anything which increases the role of subordinate is decentralization & anything which
decreases it is centralization.
e) Fayol suggested that absolute centralization or decentralization is not feasible. An
organization should strike to achieve a lot between the two.
Difference between Unity of Command and Chain of Command:
Unity of Command and Chain of Command are often used to refer to military command
structures, but they are also applicable to modern business strategies. Within the corporate
environment these terms refer to the overall business structure, containing either a rigid hierarchy
of bosses or a single manager who oversees all the business functions of a company. These
command structures are different, but each provides its own unique advantages.

Unity of Command:
Unity of command is a managerial technique that is built around a single individual in command,
with any number of subordinates under his/her command. This is often the command structure
used in small businesses; herein one owner/manager has full control over every managerial
responsibility. Unity of command provides a singular vision with a clear command structure,

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such as that of the single owner who determines the vision for the company.Unity of command
requires consistent micromanagement by the head of the command structure; because the head of
the organization has no one under her command to whom she delegates leadership
responsibilities. There has been a recent quickening of the tempo of the long-standing debate on
control and missions of Air Force units employed in support of ground forces. Army officers,
many of whom have never been fully satisfied with the theory or practice of existing air support
doctrine, are raising the issue once more. And so, largely in Army periodicals we find unofficial
statements of the Army‘s requirements for adequate air support, with the clear implication that if
the Air Force can‘t or won‘t do the job, the Army itself will have to provide its own air support
just as the Marine Corps does.

The principle Army commander is now unable to exercise any control over the air elements from
which he should receive air support. Many soldiers consider that this is an intolerable situation
that it jeopardizes the successful prosecution of the land battle, and above all that it violates the
principle of unity of command. It may be heresy, but as an Army man I find it impossible to
reconcile this argument with established Army doctrine, or with Army concepts of the principles
of war. I believe that there is an inherent inconsistency in reasoning with demands that local
ground commanders should have command control of supporting air units on the basis of the
established and proven principle of unity of command.

Chain of Command:
The chain of command, sometimes called the scaler chain, is the formal line of authority,
communication, and responsibility within an organization. The chain of command is usually
depicted on an organizational chart, which identifies the superior and subordinate relationships in
the organizational structure.

According to classical organization theory the organizational chart allows one to visualize the
lines of authority and communication within an organizational structure and ensures clear
assignment of duties and responsibilities. By utilizing the chain of command, and its visible
authority relationships, the principle of unity of command is maintained. Unity of command
means that each subordinate reports to one and only one superior.

The chain of command, sometimes called the scalar chain, is the formal line of authority,
communication, and responsibility within an organisation. The chain of command is usually
depicted on an organizational chart, which identifies the superior and subordinate relationships in
the organizational structure. According to classical organization theory the organizational chart
allows one to visualize the lines of authority of communication within an organizational structure
and ensures clear assignment of duties and responsibilities. By utilizing the chain of command,
and its visible authority relationships, the principle of unity of command is maintained. Unity of
command means that each subordinate reports to one and only one superior.

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In many organizations, the chain of command principle is still very much alive. The manager‘s
status is that of the deliverer of orders, and the employee enacts them under the monitoring of the
manager. Both parties share responsibility for achievements. But, as Longneck suggests in his
book Principles of Management and Organizational Behaviour, communication provides the
underpinnings of this relationship. The discussions and meetings contact managers and their
subordinates have many improve or harm the effectiveness of the direct report relationships in
the chain of command.

In many organizations, the chain of command principle is still very much alive. The manager's
status is that of the deliverer of orders, and the employee enacts them under the monitoring of the
manager. Both parties share responsibility for achievements. But, as Longneck suggests in his
book Principles of Management and Organizational Behavior, communication provides the
underpinnings of this relationship. These types of organizations attempt to place decision-making
authority in the organizational structure with those who can most effectively and efficiently
respond to environmental imperatives. Thus, these organizations may have flatter hierarchies and
communication and decision-making patterns that do not fully adhere to the chain of command
or unity of command principles. In the case of matrix organizations, employees frequently have
two managers or supervisors, violating the unity of command and chain of command principles.
To be effective, individuals working in these organizations learn to share power, use open
confrontation to resolve issues and to utilize all directions in the organization to disseminate
information.

These more organic structures are not rigidly bound to the chain of command principle, although
it is still an important organizing principle in most organizations.
Unity of Command and Decision- Making Speed:
The unity of command structure offers a unique speed advantage for decision-making. The head
of the organisation has the unilateral ability to make decisions, without consultation or discussion
with others, thus speeding up the decision-making process. For instance, within a single
owner/manager business environment, the single owner is not responsible to communicate or
discuss changes of policy to or with anyone else, providing flexibility of management and an
increased ability to adjust and conform to market demands, whether by changing prices as
needed or staging sales to complete with another business nearby.
Merits of Unity of Command:
The following merits of unity of command are below:
(i) It develops efficiency in administration.
(ii) It is in conformity with the Scalar system.
(iii) As it avoids confusion among the employees of an organisation, the work is not delayed.
(iv) In it every employee recognizes his immediate boss, from whom he has to receive
command.
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(v) Better Relationship: Unity of command helps to develop a clear and better relationship
among superior and subordinates.
(vi) Unity of command results in a clear and well-organized Authority, Responsibility and
Accountability between various levels of workforce of the organisation.
(vii) Reduces Duplication of work: It helps to reduce and/or avoid duplication of work
between the various levels of workforce of the organisation.
(viii) Prompt or Quick Decisions: The unity of command helps managers to take prompt or
quick decisions properly.
(ix) Effective and Efficient Discipline: The unity of command ensures an effective and
efficient discipline within an organisation.
(x) Better co-ordination and team work: The unity of command ensures better co-ordination,
and team work in the organisation.
(xi) Boosts Morale and Positive Attitude: It boosts morale and generates positive attitude
among workers in the organisation.
(xii) Higher Productivity: The unity of command leads to higher productivity of goods and
services. This creates a better image or goodwill of the organisation in the market.
Supporting unity of command, Henry Fayol observes, Should it be violated, authority is
undermined; discipline is in jeopardy, order disturbed and stability threatened.
Demerits of Unity of Command:
(i) Not universal
The principle that one man should obey one superior ‘cannot be applied universally. There are
some exceptions to this rule. For example, the technical experts do not come under this category.
They receive and issue commands to various other officials. Millett has rightly observed. The
concept of unity of command therefore needs to be reconciled with recognition that supervision
of any activity may be dual technical and also administrative. The two types of supervision may
be exercised by different individuals. The two types of supervision may be exercised by
different individuals. The one type may he concerned with professional competence in the
performance of a job while the other is chiefly interested in the efficient utilization of the
resources men and materials available for the job.
(ii) Functional Foremanship

Criticizing the unity of command Prof. Tailor has recommended functional foremanship. In
functional foremanship a subordinate may accept the instructions of two different foremen, one
for the speed or the other for its proper maintenance.
(iii) Impractical

The traditional approach to the principle of unity of command that each individual receives
orders from one and only one superior is not practicable. In modern time, due to the impact of
science and technology, the numbers of specialists have increased considerably in administration.

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In such a situation, it is unpractised to receive the command of one superior only. However,
there should be mechanism to ensure that the command of different officials do not conflict or
contradict each other. In case of conflict of commands, the subordinate should be expected to
obey the command of one man only. The notice of conflicting command should be given to the
authorities. But if there is no conflict in commands, duality or multiplicity of command is not
harmful. Unity of command should not be rigidly adhered to.To sum up while the principle of
unity of command is a useful guide to large-scale organisation it is not like a mathematical
formula to be applied in every case in every situation. The principle is, however, essential to
ensure unity of direction, stability and continuity of command and control. It achieves unity of
purpose in diversity or different units and activities.

8.4 SPAN OF CONTROL: CONCEPT AND CONCERNS

Span of control plays a significant role in organizations and has its implications for
organizational structure i.e. interactions between supervisors and subordinates and decision
making process.

Sub-ordinates that can be personally directed by a supervisor or an administrator is termed as

span of control. The term can be defined as:-
1.Dimock: - “Span of control is the number and range of direct, habitual communication
contacts between the chief executive of an enterprise and his principle fellow officers.”
2.Lois Allen: - “Span of control refers to the number of people that a manager can supervise.”
3.Peterson and Plowman:- “Span of control refers to the maximum number of subordinates
which may be placed under the jurisdiction of one executive immediately superior to them.”
4.Elliott Jaques has the view-point that a manager may have up to as many immediate sub-
ordinates that he can know personally in the sense that he can assess personal effectiveness.

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5. Haimann and Scott defined span of control as the number of subordinates who can be
effectively supervised and managed.
6. Longenecker simply defined span of control as the number of immediate subordinates
reporting to a given manager.

Span of control is the range or extant of effective control and supervision of the work done by
the sub-ordinates. A general definition of span of control can be as the extent to which one
person can extend his or her supervisory powers over other individuals or administrative units in
an effective manner is termed as span of control. Span of control is needed due to limited
attention power, limited time and limited energy.
Span of control affects the efficient utilization of managers and the effective performance of their
subordinates.

Ideal span means the number of subordinates which should cost less and provide more strength
to the management.

Types of span of control:

The span of control can be of two type’s i.e. wide span of control and narrow span of control.
1. Wide span of control: Wide span of control means a manager can supervise and control
effectively a large number of persons at a time. It is because shorter span of control leads to rise
in number of steps or levels in vertical chain of command which leads to tall organization. Wide
span of control has features as it leads to maximized communication; better supervision; better
co-ordination; suitable for routine and easy jobs; prompt response from employees; less overhead
cost of supervision and greater ability to respond to environmental changes.

A wide span of control results in an organization that has relatively few levels or steps of
management which can be termed as flat or horizontal organization. Wide span of control is
suitable when people are competent, prefer low supervision and tasks are similar and
standardized. Simon pleads for wider span of control. It is because shorter span of control leads
to rise in number of steps or levels in vertical chain of command which leads to tall organization.
This makes vertical communication difficult and indirect. Wider span of control leads to
maximized communication.

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To make the span of control wider Delayering Process is used. In this process, the span of
control is increased which results in reduction of the number of managers and layers in the
organization. Delayering helps in improving communication from the top and saving cost.

2. Narrow span of control: When the work and authority is divided amongst many subordinates
and a manager supervises and controls a small group of people, then narrow span of control
exists. It adds more layers or levels of management and so leads to tall organization. Main
features of narrow span of control are as specialization work can be achieved; work which is
complex and requires tight control and supervision, there narrow span of control is helpful;
messages can be distorted; co-ordination is difficult to achieve; communication gaps can come;
more overhead cost of supervision and no quick response to environmental changes.

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When the span of control is narrow then the structure of the organization is tall and there may be
ineffective, inaccurate and incomplete communication which could lead to decreased morale
increased executive payroll and red-tapism.

8.4.1 FACTORS AFFECTING SPAN OF CONTROL

a) Ability of subordinates: when the subordinates are enough competent to complete the
allotted work easily, the manager will not be required to give more attention to them and
more subordinates can be supervised. But, when if subordinates are less competent, the
manager will be required to devote more time for supervision and span of control will be
narrow.
b) Degree of delegation: A manager who delegates more authority of taking decisions to his
subordinates can supervise a greater number of subordinates and enlarge the span of
control. But, if a manager keeps more authority of taking decisions with him can supervise
a small number of subordinates.

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c) Capability of the supervisor: The qualities and qualifications of the supervisor affect the
span of control to a great extent. If the supervisor is competent enough, he can easily
supervise a large number of employees and span of control can be wider. In case when
supervisor is new, less competent and has less administrative ability, the span of control
will be narrow.
d) Age of the organization: The span of control is wider in old organizations than in newer
organizations because in old organizations things get stabilized.
e) Nature of work: As the work is more routine, the span of control can be wide. The
similarity and simplicity of functions can be tackled easily while if work is of complex
nature, the supervisor’s span of control will be narrow. So, nature of work determines the
span of control.
f) Geographical Dispersion: If branches of a business are widely dispersed, then the
manager will find it difficult to supervise each of them, as such the span on control will be
smaller. A manager can supervise easily the work of a large number of subordinates, if they
are located in one compact place.
g) Techniques of supervision: Supervision Techniques such as delegation, planning,
programming, the use of staff specialists, etc., help extend a manager’s span of control.
Span of control can be extended where the direction of operations is done more by goals
and objectives rather than by ever-present supervisor. Also, an administrator can broaden
his span of control by the use of staff specialists who can provide another set of legs, eyes
and ears for the executive.
h) Communication system: A well organized and sensitive proper communication system in
an organization will make possible a larger span of control than a power and ill-organized
system of communication.
i) Use of standing plans: - It reduces the work load of managers, as a result span of control
increases considerably.
j) Use of communication technology: In modern times, because of the use of automation in
administration, of control has widened. Further, the application of mechanization to such
activities as accounting and computation work had increased the span of control.
k) Level of management: The higher the superior is in the organizational hierarchy, the
narrower the span of control. Based on empirical studies, Newman suggested that
executives in higher echelons should have a span of three to seven operating subordinates,
whereas the optimum range for first-line supervisors of routine activities is usually from
fifteen to twenty employees.
There are other factors such as well-defined authority and responsibility; availability of staff
services; economic restrictions; superior-subordinates relationship; degree of centralization;
financial position of the organization; clarity of plans and responsibilities etc which also affect
the span of control.

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Formula of V.A Graicunas:-

In 1933, a French Management consultant described the concept of „Span of Attention‟ which is
related to the principle of span of control in Public Administration. His concept is based upon the
hypothesis that there is a limit to the number of things one can attend to at the same time. He
analyzed the possible number of relationships that can happen for a given span of control.
According to Graicunas, “As the number of subordinates increases arithmetically, the number of
relationships increases almost geometrically.” Three types of superior-subordinates relationships
were identified by Graicunas.

1.Direct single relationships: The first and other type of relationship is direct relationship
between superior and his subordinate’s e.g if M is superior while S1 and S2 are his subordinates,
then direct single relationships will be two i.e (a) M with S1 and (b) M with S2.
2.Direct group relationships: Direct group relationships arise between the superior and his
work groups in all possible combinations. e.g in a figure (a) M with S1, S2 in attendance, (b) M
with S2, S3 in attendance.
3.Cross Relationships: Cross relationships arise among the subordinates under a common
superior e.g (a) S1 with S2 and (b) S2 with S1. When a third subordinate S3 reports to M, one
additional direct relationship will be established between x and p. group relationships will be
increased to seven as S3S2, S2S3, S1S2, S2S1, S3S1S2, S2S1S3 and S1S3S2.
Along with these, will be four more cross-relationships:- S1S3, S2S3, S3S1, S3S2. So, there will be
a total number of 18 interactions. A fourth subordinate will raise the total number of interaction
to 44.
The general mathematical formula of Graicunas is as: - R = N[2N/2+N-1] Or R = N[2N-1 + N-1].
Where, R- Total no. of relationships.
N- no. of subordinates reporting directly to the superior.
e.g if no. of subordinates is 3, 4, 5 and 6 then relationships will be as:- R3= 3[23/2+3-1] = 18.
R4= 4[24/2+4-1] = 44.
R5= 5[25/2+5-1] = 100.

R6= 6[26/2+6-1] = 222.

No. of 1 2 3 4 5 6 7 8 9 10
subordinates

No. of 1 6 18 44 100 222 490 1080 2376 5210

relationships

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According to Graicunas, a manager can effectively supervise 6 subordinates or 222 relationships.

The number of subordinates at higher level should be 5 or 6, while at the lower level a number of
20 subordinates is an ideal number.

Advantages of Span of control:

Advantages of adequate span of control can be pointed out as it increases efficiency; facilitates
effective supervision and control; increases goodwill; develops professional morale and team
spirit; better communication and co-ordination; facilitates quick action; less labour absenteeism
and turnover; develops discipline and mutual trust and superiors can concentrate on important
work.

8.5 SUMMARY
Hierarchy occupies a central theme in the discussion on organisational structure. Classical theorist
emphasized the significance of hierarchy in their writings on organization theory. This principle helps to
fix the duties, authority and responsibility of officials at different levels of organization. However it has
also been subject of criticism due to red-tapism and delay in the transaction of officials business. Newer
modes of governance are tried by organization by replacing hierarchical system to ensure participative
governance, team building and for development of better human relations.

Unity of command may lead us to conclude that the principle of unity of command has broken
down as far as Public Administration is concerned. But this is certainly not so if we look a little
deep into the issue and analyse the situation thoroughly. Unity of command is not violated if an
employee receives order from two supervisors in respect of different matters or aspects of
matters under his charge. It is broken only if he gets orders from two different sources regarding
one and the same matter. Even in the technical departments, the last work lies with the
administrative chief, who has the power and authority to overrule the technical experts. We can
conclude by saying that unity of command is essential for good administration. However, there
must be flexibility in application of principle of unit of 18 commands to keep pace with changing
administrative needs and situation without violating the authority of superior.

8.6 MODEL QUESTIONS

1.Explain Hierarchy with an example.
2.Critically Analyse Unity of Unity of Command.
3.Give a brief Description on Span of Control.

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8.7 REFERENCES
 "Management: Tasks, Responsibilities, Practices" by Peter Drucker.
 "Administrative Behavior" by Herbert A. Simon

8.8 ADDITIONAL READINGS

 "Principles of Management" by Charles W.L. Hill and Steven L. Jones
 "Management and Organizational Behavior" by Laurie J. Mullins

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UNIT-9: PRINCIPLES OF ORGANIZATION: DELEGATION,

DECENTRALIZATION, AND COORDINATION
Structure:
9.0 Learning Objectives
9.1 Introduction
9.2 Delegation of Authority: Meaning and Definition of Delegation
9.2.1 Features of Delegation
9.2.2 Need for Delegation
9.2.3 Principles of Delegation
9.2.4 Hindrances and Limitations to Delegation
9.3 Delegated Legislation
9.3.1 Need for Delegated Legislation
9.3.2 Merits and Demerits of Delegated Legislation

9.4 Coordination: Introduction

9.4.1 Definition of Coordination
9.4.2 Coordination and Cooperation
9.4.3 Types of Coordination
9.4.4 Principles of Coordination
9.4.5 Essential Features of Coordination
9.5 Centralisation and Decentralisation: Introduction
9.5.1 Centralisation: Meaning
9.5.2 Decentralisation: definitions and meaning
9.5.3 Approaches to Decentralisation
9.5.4 Types of Decentralisation
9.5.5 Advantages Vs Disadvantages
9.5.6 Factors Governing Centralisation and Decentralisation
9.6 Summary
9.7 Key Words
9.8 Activities
9.9 References

9.0 LEARNING OBJECTIVES

After reading this unit the student will be able to:

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 Explain the meaning and significance of the delegation

 Examine the various delegation principles
 Discuss the main obstacles and constraints to delegation.
 Define delegated legislation and its benefits and drawbacks.
 Discuss the advantages and growth of Administrative Adjudication.

9.1 INTRODUCTION

This unit will focus on delegation of authority, Delegated Legislation, and Administrative
Adjudication. In Public Administration delegation of authority is one of the important principles
of organization. The superior may delegate his authority to his subordinate effectively and
efficiently without taking too much time. In times of emergency, delegated legislation helps the
organization solve the issues that arise due to unforeseen situations like pandemics, epidemics,
earthquakes, droughts, & floods, etc.

In contrast to this increased legislative activity, legislatures are unable to find enough time to
pass legislation that addresses every minor detail. The Legislators have limited themselves to
matters of policy, giving the Executive considerable latitude to enact legislation to carry out the
legislative body's tasks. In such cases, the system of delegated legislation comes to mind.
Delegation is therefore essential and must be justified in terms of flexibility, adaptability, and
speed. This is also referred to as ‘secondary or subordinate legislation.' The Act that allows the
government the authority to legislate is referred to as delegated legislation or subordinate
legislation.

The government's functions have grown exponentially, giving the executive enormous powers
and increasing parliamentary output. This has resulted in increased litigation, strict limitations on
individuals' liberty, and constant turmoil between the individuals and the authorities.
Administrative adjudication has evolved in several nations, including India, with offered sort of
justice and public-centric justice. Administrative Adjudication is the most recent administrative
practice. Administrative adjudication refers to the decision of judicial or quasi-judicial problems
by an administrative department or agency. Administrative bodies, like regular courts, hear the
parties, examine the evidence, and deliver a verdict in instances involving legal rights or duties.

9.2 DELEGATION OF AUTHORITY: MEANING AND DEFINITION OF

DELEGATION

According to Mooney, delegation means conferring specified authority to a lower authority. It is

the devolution of authority by a person to his agent or subordinate subject to his right of
supervision and control. Terry does not agree with this interpretation. To him “delegation means
conferring authority from one executive or organization unit to another”. It is not necessarily

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devolution from a higher to a lower level; it may as well be from a lower to a higher level or
between equal levels. Delegation may thus be “downward, upward or sideward”.

Delegation is not an abdication of responsibility and does not connote the transfer of final
authority. The person delegating authority does not surrender his overall responsibility and
retains the power of inspection, supervision, control, and, review. He can revoke his delegation
and take back all the authority. On the other hand, “delegation of authority means more than
simply assigning duties to others in more or less detail.”

9.2.1 FEATURES OF DELEGATION

 The act of granting authority to a subordinate or other organizational unit to operate in a

particular manner independently is known as delegation. The delegatee is required to act within
the delegator's specified guidelines. Within these restrictions, the delegatee (subordinate) is not
free to make decisions at will but is instead governed by the policies, norms, and rules set by the
delegating authority.
 The delegation has two personalities. While delegating authority to a subordinate, a
superior keeps the authority for himself. Terry has correctly pointed it out. It's similar to teaching
someone what you already know, but you keep the information for yourself as well.
 Delegation involves the passing on of some authority. The delegator does not give his
subordinates all of his authority because if he did, he would lose the ability to monitor and
control and supervise them. Delegation is therefore subject to particular or constrained
conditions.
 Once delegated, authority can be changed. It can be improved, scaled back, or removed.
Everything is dependent on how much time is needed to complete the assignment.

9.2.2 NEED FOR DELEGATION

Delegation is a necessity for every organizational function. As an organisation grows, there is a

greater requirement for delegation. According to L.D White, situations of this size and scope
necessitate some authority delegation and the handling of a lot of activity immediately. In the
administrative hierarchy, for instance, a delegation of authority is minimal during normal times,
but during emergencies like extreme weather events, humanitarian crises, and pandemics, local
administration needs to be given more authority and responsibilities to deal with the emergency
and restore normalcy to the situation.
The following reasons can be used to support delegation.

 Time for executives is valuable. He has to spend lots of time planning and decision-making
instead of being busy with the smallest detail. To contribute to the organization’s
effectiveness, delegation enables the Chief Executive to focus his time and efforts on crucial
tasks like decision-making, policy development, and planning.

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 The practice of delegation is educative. It gives the subordinates opportunities to obtain

training and education in assigning responsibilities. Their confidence is improved, and they
develop a sense of commitment to the organisation.
 Subordinates have a lot of room for self-improvement and self-expression because
of delegation. Thus, it is a crucial stage in the advancement of administration.
 The division of labour, which is necessary for the quick and effective discharge of duties, is
facilitated by a delegation of authority. Delegation reduces delays and enables the
organisation to operate more productively and cost-effectively. Delegation facilitates efficient
control over numerous branches or levels of the organization due to the distinct separation of
authority at different organizational levels.
 Geographical dispersions are common in large organizations, they have a web of branches
and several units dispersed across a large area. It is easier to operate a diverse and scattered
organization venture when authority is delegated and decentralized huge organization needs to
delegate authority because its branches and units are located apart from the main office.
Delegation enables them to function quickly and effectively.
9.2.3 PRINCIPLES OF DELEGATION
 There should be no doubt regarding the authority that has been given, so delegation should
be done transparently. Rules, procedures, and regulations should always be clearly stated to
avoid confusion among subordinates exercising power or authority.
 To clarify the boundaries of delegation, the orders of delegation should be made in
writing.A subordinate's authority should be sufficient to ensure that he can complete the
work that has been given to him. Subordinates should be given as much authority and
responsibility as they are capable of handling.
 The superior should never transfer all authority to the subordinates.
 The unity of command principle is the foundation for delegation. This indicates that only a
subordinate shall answer to just one superior and get direction from him.
 Even after delegating a task, the superior should always be available to guide the
subordinate.
 Appropriation should come after delegation. After an assigned task is finished, an
evaluation of the performance of the subordinates should be conducted.
 Delegation needs to be carefully thought out and organized. Instead of delegating to an
individual, delegate to a position.

9.2.4 HINDRANCE AND LIMITATIONS TO DELEGATION

Although delegation is a fundamental organizational principle, administrators often resent giving

power to subordinates because of many obstacles. Organizational and personal obstacles might
be used to categorize hindrances.

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Organizational challenges include the absence of well-known techniques and actions, inadequate
coordination and communication, the unexpected and non-repetitive nature of the activity, the
structure and size of the organization, and a lack of clarity in delegating. Egotism, fear of
subordinate wrongdoing, absence of trust in the intellectual ability and acumen of subordinates,
failure to demonstrate emotional maturity on the part of the delegating authority, ignorance of
what and how to delegate, and fear of personal responsibility to higher authorities are some
human obstacles to delegation.

There are some personal hindrances to delegation these are as follows;

1. People who advance to positions of hierarchical leadership exhibit more egotism than is
typical.
2. They worry that others won't follow through on their plans or make the right choice.
3. They worry that among powerful subordinates, there may arise unfaithful or hostile forces.
4. Persons who are physically fit, mentally alert, and highly motivated get frustrated by their
subordinates' tendency to move slowly and make rash decisions.
5. Political reasons sometimes make delegating difficult in Public Administration.
6. Because man's cultural past has been one of authoritarian, patriarchal leadership, delegation is
partially dependent on cultural transformation.
7. Delegating requires emotional maturity, which is rare even among successful individuals.
Since delegating is essential, the best way to overcome these obstacles is to eliminate the
bottlenecks as much as you can. Pfiffner has outlined the following methods to improve
delegation:
a) Choose subordinates who can handle responsibility.
b) Describe such obligation.
c) To carry it, teach them how.
d) Create general rules, and then circulate them all around the organisation.
e) Maximize the standardization of housekeeping and functional routines.
f) Continue perpetual management planning, which includes system and procedure
simplification, budget planning, workflow analysis, and job analysis.
g) Create external controls that instantly display hazard signs.
h) Ensure the seamless flow of information throughout the hierarchy

Limitations to the delegation

Delegation is unquestionably necessary informal organizations, but no leader or senior officer
should be permitted to delegate all of his authority. The devolution of total authority renders the
executive unnecessary. Though the level of delegation varies based on the nature of the case,
circumstances, and organizational structure, there are certain well-known limits to delegation.
The following powers, according to M.P. Sharma, cannot be delegated:

 Direct supervision of first-line or immediate subordinates' work.

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 General financial oversight and the authority to sanction expenditure over a certain amount;
authority to sanction new policies and programs well as departures from existing policy or
practise.
 Rule-making authority if it has been delegated to the delegating officer.
 Making specific higher-level appointments.
 Hearing of appeals from at least the immediate subordinates' judgments
The chief executive cannot successfully oversee the organization if these powers are not
retained. It might make him an ineffective creature.

9.3 DELEGATED LEGISLATION

The term "delegated legislation" denotes the legislative authority that the legislature itself has
assigned to the administration. This concept is often referred to as executive legislation.
Subordinate legislation is what is referred to as the Executive's legal authority because it is not
the Executive's original legal authority. If it infringes upon or exceeds the authority of the parent
Act, it is ruled void. Even though it is the legislature's job to create laws, not the executive's, the
legislature has found itself having to transfer a sizable portion of its legislative authority to the
administrative authorities as a result of significant social, political, and economic changes. The
executive exercises this authority by issuing regulations. The law-making authority of the
Executive is known as Delegated Legislation, Executive Legislation, or Subordinate Legislation
because the rules it makes have the same legal status as laws and can be enforced in courts of
law.
Delegated legislation, then, is the act of a subordinate authority, like a Minister, exercising the
legislative authority granted to him by the Parliament. General approval of the Bill by
Parliament grants the relevant Minister the power to enact rules for the Act.

Delegated legislation is subordinate to the legislature under which it is enacted since this
capacity to make laws is purely under legal authority and not an original jurisdiction of the
Executive in and of itself. The law is void and unenforceable if it conflicts with the legislature.

In 1932 the Committee on Ministers’ Powers UK stated that “We doubt … whether Parliament
itself has fully realized how extensive the practice of delegation has become, or the extent to
which it has surrendered its functions in the process, or how easily the practice might be
abused”. Those words might apply to Parliament, even more, today than they did then.” We trust
that both Houses of Parliament will take this opportunity to give proper consideration to the
whole system of delegated legislation, to ensure that Parliament retains and exercises appropriate
oversight over its legislative authority. It is equally important that Government recognizes
the need to exercise restraint in its use of delegated powers, and takes care to ensure that any
proposals for delegated powers are appropriately detailed and narrow in scope.”

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9.3.1 NEED FOR DELEGATED LEGISLATION

The Executive can make laws through delegated legislation without having to wait for a new
parliamentary act to be enacted. Furthermore, delegated legislation grants authority to alter or
adjust the punishments under a certain statute or to make legal changes. Given that more
delegated legislation is improved each year than by Parliament, delegated laws to play a
significant part in the legislative process. Furthermore, delegated legislation carries the same
legal authority as the original Act passed by Parliament. Delegated legislation is significant for
several reasons.

It empowers people with the appropriate training and competence to enact legislation. For
example, rather than establishing regulations that may or may not be appropriate for their unique
region, a local authority may be permitted to apply laws relevant to their area while taking local
requirements into account.
Why Delegated legislation relieves the legislative's already overburdened workload? Why
Delegated legislation relieves the legislative's already overburdened workload by allowing the
administration to create or alter laws with the consent of the legislature? As a result, the
Legislature may focus on more important topics and adopt a meaningful policy.

9.3.2 MERITS AND DEMERITS OF DELEGATED LEGISLATION

Merits:

 Parliament time saved; It is challenging for the Parliament to pass laws on every issue since
they have a lot of work to do and they also need to produce legislation on a variety of topics.
The area, scope, or horizon of state activity is increasing daily. The Parliament is so consumed
with foreign policy and political matters that it lacks the time to adopt specific legislation. As
a result, it simply forms the general concept of the rule and law and passes it over to the
executive or some of its subordinates to fill in the specifics in compliance with the relevant
rules and regulations.
 Easley Amendment; -It encourages adaptability. Legislatively enacted laws are
comparatively rigid. To change certain laws, one may have to resort to rigorous amendment
procedures. Additionally, ordinary laws must be repealed, revoked, or amended by following
a certain procedure, which can often make quick adaptation to changing circumstances
challenging. James Hart said it right when he said, “If a legislative rule is both specific and
unworkable, the administrator is in dilemma. He must either try to work the unworkable and
thereby invite litigation and defeat of the real purpose of the statute or he must evade or
ignore the letter of the law.”
 Export; - The members of parliament are laymen who may be able to establish broad
concepts and aims but are undoubtedly unqualified to decide on minute specifics. The

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specialists should determine the specifics. Delegated legislation aids in utilizing subject-
matter expertise and figuring out specifics along the right lines.
 Experiments in new areas; - Delegated legislation makes it feasible to conduct trials in areas
like town planning. In entering new domains, Dr. White has correctly observed that “In
entering new fields the first administrative rules may be relatively innocuous with gradual
stiffening until the full intent of the statute is achieved. Meanwhile, the interest to be
regulated is adjusting itself and the mixture of persuasion with the command may produce
better results than immediate insistence on all requirements.”
 The delegated legislation, according to the Donoughmore Committee,“permits the experiment
being made and thus affords an opportunity, otherwise difficult to ensure, of utilizing the
lessons of experience. The advantage of this in matters, for instance, like town planning, is
too obvious to require detailed emphasis.”
 Prompts Action in Emergencies: Every year, a few months of parliament are in session.
Until the Executive is given the authority to handle emergencies through its authority to issue
rules and regulations, they cannot be dealt with quickly if they arise during its absence.
Demerits:
 Delegated legislation leads to functional overlap since the delegated authorities are given
work to alter the law, which is the legislators' job.
 It has been debated whether or not the Legislature's control has weakened with the
introduction of delegated legislation.
 Unelected individuals cannot pass much-delegated legislation because it would be contrary to
the spirit of democracy.
 After gaining excessive power from the Legislature, the Executive has encroached on the
legislative realm by enacting rules and regulations.
 The enactment was subjected to less Parliamentary scrutiny than necessary enactment. Along
these lines, Parliament lacks jurisdiction over appointed enactment, which might lead to legal
problems. Appointed enactment can thus be used in ways that Parliament did not anticipate
when it was granted the authority through the Act of Parliament.
 Delegated legislation creates laws without much debate. As a result, it may or may not be
better for the general population.
 In general, designated legislation receives little attention. Since the legislation is made by a
statutory entity, the general public is not informed. However, the laws of Parliament are
typically broadcast. The absence of exposure serves the objective of the massive degree of
enactment that is being ascribed. There has also been expressed worry that an excess of
legislation is created by appointed enactment.
 It might be abused for political purposes. The executive develops laws based on what political
parties want. As a result, the ruling party abuses the legislation enacted by the Executive.
 Executives have gotten far too strong, as they already have the authority to carry out any laws
and legislation, and the Legislature is now transferring legislative authority to the Executive.

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So, now that both powers are in the hands of the executives, he may wield them any way sees
fit.

9.4 COORDINATION: INTRODUCTION

Coordination is very important principle of an organization. The module is divided into four
parts. The first part describes the meaning, significance and definition of Coordination. The
second part differentiates between cooperation and coordination and defines the types and
principles of coordination. The third part incorporates features, elements and techniques of
coordination. The fourth part concludes by defining the approached and hindrances to
coordination.

Meaning
It is Henry Fayol, one of the popular thinkers of management thought who first wrote about
coordination. Later the concept first appeared in a staff paper by Luther Gulick and Lyndal
Urwick written for Brownlow Committee. The acronym stands for steps in the administration
process: Planning, Organizing, Staffing, Directing, Co-ordination, Reporting and Budgeting.
Luther Gulick in his “Notes on the Theory of Organization, as member of Brownlow Committee
asks rhetorically, what is the work of the Chief Executive? What does he do? ”. PSDCORCB was
the answer. Thus one of the principles of POSDCORB is the Co-ordination.

In a nut-shell coordination refers to all important duty of inter-relating the various parts of the
work. Co-ordination means, negatively, the removal of conflicts, working at cross purposes and
overlapping from administration. In a positive sense, the aim of coordination is to secure
cooperation and team work among several employees working in the organization. Further it
should be noted that without coordination the goal of the organization cannot be achieved. In
addition coordination helps the organization to move consistently towards attaining the set goals
of the organization. Co-ordination deals with the task of blending for the successful achievement
of an objective. If a set goal has to be attained through the efforts of a group, it effects shall have
to be unified in such a manner that each effort contributes the maximum to achieve the set goal.
Coordination may also be considered as an essence of management.

Significance of Coordination
Coordination is one of the cardinal principles of organization. In the absence of coordination
there will be confusion or chaos in the organization. “It is the first of principles of organization
and includes within itself all other principles which are subordinate to it through which it
operates” (J.D. Mooney). It is also the first principle of management as well.

Coordination is only a means to an end and not an end in itself. According to Newman “It is not
a separate activity but a condition that should premade all phases of administration”.

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9.4.1 DEFINITIONS OF COORDINATION

There are several definitions of coordination and all of them centre on team work and
harmonious blend of activity. Yet it is appropriate here, to give a few definitions of coordination
by some eminent administrative/management thinkers. And it is interesting that most of them
belong to structuralist approach. A few definitions are hereunder:

Coordination is “the orderly synchronization of efforts to provide the proper amount, timing
directing of execution resulting in harmonious and unified actions to a stated objective”
Coordination is “the adjustment of the parts to each other and of the movement and operation of
parts in time so that each can make its maximum contribution to the product of the whole”.
Coordination is, “a process causing disjunction elements to a concentration on a complex of
forces and influence which cause the mutually independent elements to act together”.
Coordination is, “the integration of the several parts into an orderly whole to achieve the purpose
of undertaking”.

It is interesting to note the detailed observation of Mary Parker Follet on Co-ordination, which
states coordination as the, “reciprocal relating of all factors in a situation” and goes on to amplify
it as “you cannot envisage the process accurately by thinking of “A” adjusting himself to “B”
and “C” and to “D”. “A” adjusting himself to "B‟ and also to "B‟influenced by “A”
himself……. And so on and so on. This sort of reciprocal relating, this interpretation of every
part by every other part, and again by every other part as it has been permeated by all should be
the goal of all attempts at coordination”.

Another interesting but simple and brief description of coordination has been given by Sekler
Hudson as “the all important duty of inter-relating the various parts of the work”.

All the definitions given above, in general, view the coordination as making arrangements so as
to see that all parts of an organization pull together toward stated goals, without any duplication,
without any gaps and conflicts and on time. A best example of a fine coordination is the
assembling of a watch and rowing of a boat.

9.4.2 COORDINATION AND COOPERATION

Most of the people get confused over the terminologies of coordination and cooperation. They
are not one and the same, since they do not mean the same. They are different altogether. One
cannot be substituted for the other. Cooperation means working together for a common purpose
and voluntary action. But coordination is a process whereby the activities of each individual are
consciously directed by the head of the organization towards accomplishing a major task in
certain set period. It is superior to cooperation. According Terry a story about coordination goes
on like the following: “consider the story of the boy who wished to take an early morning train
and accordingly set his watch ahead one half hour before going to bed so that he would be sure

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to arise in plenty of time. Placing the watch on the table alongside his bed, the boy retired early
to get sufficient rest. His father knowing his son’s desire to take the early train, went to his son’s
bedroom and turned the lads watch up one half hour, believing this would give the boy extra time
to get up and dressed. Likewise, the mother just before retiring went into the lad’s bedroom and
turned his watch forward one-half hour so that he would not be rushed in the morning. As a
result the lad arose one and half hour of needed sleep. Cooperation among the actions of the son,
father and mother had been present but not co-ordination”. The said example makes abundantly
clear the difference between coordination and cooperation.

9.4.3 TYPES OF COORDINATION

Co-ordination is of four types. They are:

(1) Internal which can be termed as functional;
(2) External which can be termed as structural;
(3) Vertical coordination;
(4) Horizontal coordination.
1. Internal coordination is related to coordinating the individual duties of persons rendering
service in an organization. External coordination, on the other hand, relates co-ordinating the
activities of different organizational units. According to Appleby, “It (hierarchy) functions both
perpendicularly and horizontally. The horizontal relationship is between units and between
agencies commonly regarded as co ordination in an effort to distinguish between coordination
and administration. Coordination effected between units responsible to a single executive is
coordination at the level of units, administration at the level of the executive to whom they are
responsible, whereas he in turn participates in coordination with other agencies”.
2. External coordination varies from organization to organization i.edefence, in case of army, law
and order in the matter of police and instruction of people, in case of the educational department.
The inter purpose, however, is in every case coordination i.e making the organization work
harmoniously and efficiently. Again in some organization like the army, the external objective is
not adhered continuously i.e in peace time, but the internal purpose- coordinated functioning of
the military machine- is constantly pursued through the practices of drill, exercises, etc.
3. Vertical coordination is what exists in a department where the departmental head is called
upon to coordinate the activities of all those placed below him.
4. Horizontal coordination takes place sideways. It exists between different units such as
production, sales, purchase, finance and personnel etc.

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9.4.4 PRINCIPLES OF COORDINATION

There are certain principles of coordination in administration/management and which are as

Follows:

1. Early Introduction The aspect of coordination must have to be thought of at early phase of
planning and policy-making. It must be noted that at the time of preparation of plan stage mutual
consultation, cooperation and give and take becomes necessary. But a plan is prepared and put
into implementation without considering much needed coordination. It is impossible to supply
required material, wrong allocation of duties and further it eliminates overlapping.

2. Individual Interest vs Organisational Interest It is necessary to integrate all the activities and
goals of an organization so that the objectives are achieved efficiently. In the absence of
coordination individuals and organisations would begin to follow their own specialized interests
at the cost of the objectives of the organization. Coordination avoids difference, in approach,
interest or efforts of various departments by avoiding inconsistencies departments and individual
goals by ensuring individuals see how their duties/jobs contribute to the dominant of the
enterprise.
3. Inter-dependence of Units All the units in an organization are interdependent. The
interdependence is of their types which are as follows:
(a) Pooled Interdependence Units in organization are interlinked. All such units are linked by
pooled interdependence and such interdependence makes contribution to the total organisations
but not directly related. In such a case the need for coordination between the organizations is
minimal.

(b) Sequential Interdependence In this type of interdependence, one organizational unit must act
before the next greater coordination and it is required in sequential than in pooled
interdependence, though, here, creating buffer in inventions can reduce the dependence of units.
(c) Reciprocal Interdependence In this relationship the input of one unit becomes the output of
other advice versa.

The Need for Coordination

The necessity for coordination arises from the neutral behavior/tendency of the
employees/workers of any large group, when left to themselves to drift away in different
directions which give rise to conflicts. There are three reasons for such conflicts and they are as
follows: Firstly the conflicts or overlapping in the activities of the organization from the
employees may occur on account of ignorance of each other‟s activities. One unit in the
organization not knowing what is being carried out in another may unwittingly duplicate the
Latter’s activity or may take a decision in conflict with it.

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Secondly there is tendency often witnessed among men in-charge of particular functions
or activities to give so much importance to their own work as to be unmindful of the requirement
of others and make inroads into other domain. Further people with such tendencies refuse to see
their particular as the part and parcel of a larger whole to which is must be duly subordinated.

The third chief reason of conflicts is the greed for power and importance which the heads of
organisations, more especially, the pushing and vigorous ones have. They indulge themselves in
empire building i.e. seeking regularly for expand the domain of their own organization by adding
to it new/fresh activities which impinge on the jurisdiction of other organisations.

9.4.5 ESSENTIAL FEATURES OF COORDINATION

The essential characteristic features of coordination are as follows:

(a) It is one of the principal functions of management;

(b) It is a perpetual process in the organizational management. It is a never ending and

Continuous process in the field of management;
(c) It does not refer to individual effort. It is a group endeavor;
(d) It entails a group effort but not an individual effort;
(e) It refers to an united action to achieve the objective of the organization
(f) Its aim is to attain the mission of the organization i.e achievement of the set goals.

Elements of Coordination
There are different aspects/elements of coordination which are given in the following
Chart.

COORDINATION
↑
Co-operation
↑
Good Human Relations
↑
Understanding
↑
Communications

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The diagram illustrates a sequence of elements which must be built into the organization so as to
enable it a working organization. You find at the top of the chart “coordination” of activities of
the organization. This happens to be the goal/objective. Organisation, here, means people
experience tells us that high level of production to the concern of the organization which depends
upon the interest and willing cooperation of both managers and workers. This happens to be the
first element. The workers or personnel in the organization should be led by the objectives which
they accept as justified, fair and worthy to all concerned. This is the second element in sequence.
This phenomenon leads to “Human Relations” as the third element in order of sequence. It has
been proved time and again that application of good human relations pays off through co-
operative coordination leading to greater productivity. Again good human relations always
depend upon understanding. All the members belonging to various cadres in hierarchy of the
organization must understand the goals of the organization as a whole. It must be noted, here,
that the goals of the organization are common to one and all. All this is not done in isolation but
the activities are carried out with understanding of inter relationship among specific tasks and the
significance of any are job to the total product and to the organisation. It is also necessary that
there must be perfect understanding among the people/personnel and for this there must be
effective communication among them. There should be frequent exchange of ideas through talks
and discussions among the people in the organization which certainly remove their differences,
avoid conflicts and ultimately that situation leads to discover common goals. All this happens
because of better “understanding” prevailing in the organization.

Techniques of Coordination
After having come to know several aspects of coordination, it is pertinent to know how the
coordination is achieved. Mary Parker Follet, a renowned management thinker in her discussion
on coordination has given several primary principals on how to attain it. The thinker presents the
following aspects about attaining the coordination:
a. Coordination can be attained by the direct contact among the responsible persons in the
organization. She is of the opinion that coordination can be easily attained by direct inter-
personal horizontal relationships and also by direct personal communications, thereby bringing
about agreement on methods, actions and ultimate achievement of the objectives;
b. Coordination could be achieved in the early stages of planning and policy-making;
c. Coordination, as is well known, is a continuous process. It should go on and on all the time;

d. Coordination cannot be ordered. It should be brought about by the efforts of the head of the
organization while performing his functions. For effective achievement of coordination in an
organization the following steps may be recommended;

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1. Simplified Organization:
It is observed that more –often-than-not, over specialization creates problems of coordination.
The solution to the problem lies in foregoing some benefits of specialization by planning closely
related functions and also operations under the charge of an executive who discharges his
function as the coordinator. Yet another way of attaining coordination is by rearrangement of the
department to bring about coordination among the various units of the organization.

2. Harmonious Programmed and Policies:

Planning must have to be scientific and in such a case there is possibility of greater coordination.
The plans prepared by various units of the organization shall have to entail consistency. There
shall be no gaps. The heads of various wings must integrate the plans submitted by wings and
they must be integrated. In such a case there are no chances of gaps or inconsistencies and there
is possibility of greater coordination prevailing in the organization. Harmonious programmes and
policies shall not give any scope for disintegration and there is effective coordination.

3. Perfectly designed communication system:

Proper coordination requires effective communication in the organization. Preparation of plans

and programmes require better communication of information and necessary adjustments.
Communication channels must also be clear and apt for ensuring coordination between all the
units in the organization.

4. Voluntary cooperation:
There shall have to be to informal contacts among the members of the organization to
supplement formal communication. And for such a thing a sense of involvement must be instilled
among the members. Liaison between and among the members of various units in the
organization must be maintained to have close contacts to ensure coordination. The committees
may be constituted for formal exchange of ideas, views and also suggestions.

5. Coordination through supervision:

Various heads of the units in the organization acting as supervisors can coordinate the work of
their subordinates. Where there is heavy work load waiting for the chief of the organization, the
assistance of “staff assistance” may be utilized to bring meaningful harmony and coordination.

6. Coordination through Planning:

Planning is also a sort of device to attain the coordination. Planning entails maximum utilization
of all the resources in means, money and material (3M) only to achieve the set goals or planned
targets within a determined period. This can be termed as device to attain the coordination.

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7. Organisational techniques:
There are organizational methods or institutionalization of coordination techniques. Such
techniques are: committees, conferences, meetings, seminars, panels, symposia, inter-
departmental meetings, staff units, coordinating officers. Further hierarchy is also a method to
attain coordination since it ensures all activities take place as per the arrangements made by the
heads of the units and the head of the organization:

To be more specific the organization chief is a device to achieve coordination. As regards to

India, the Union Government is at the apex a coordinating agency. Apart from this, Cabinet,
Council of Ministries, Secretariat, Planning Commission, Zonal Councils, The National
Development Council and the Prime Minister are all engaged in the activities to attain
coordination. In the same way the state, district and panchayats are all busy in attaining
coordination.

8. Standardization of Procedures and Methods:

Procedures laid down in the organization and the people working in it discharge repetitive
functions which are considered as standardized. Forms are one of the best examples of
standardization of procedures. Manuals, rules and regulations may also be cited as device to
achieve coordination.

9. Centralized House- Keeping

“In administration house-keeping problems usually included supply, warehousing , the cleaning
and maintenance of building, printing, duplicating equipment control, central mailing,
transportation and food and telephone services”.

Approaches to Coordination
The following discussion enlightens approaches to coordination:

System Approach
The system’s approach considers the organization on a system composed of a set of inter related
and thus mutually dependent-sub systems. That way the organization comprised of parts linking
processes and goals. System approach achieves better coordination in the organization. What is a
system? Ludwig Von Bertalanfly evolved the concept of systems approach. He was of the
opinion that a living organism should not be looked upon as merely a conglomeration of separate
elements but a definite system, possessing organization and wholeness and on which is an
attempt to look at the organized whole. Organisation is a system of great complexity, comprised
as it is of men, machines, materials, money among other things. It is also a dynamic interplay
with its environment and clientele, competitors, business organisations and several other
agencies. Systems approach is a better way of thinking about a task or job of managing or

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administering. It certainly provides a framework for visualizing internal and external

environment factors as an integrated whole. It can keep the administrators aware of the big or
whole picture- they cannot lose sight of the overall objectives of the activities and role of their
particular work in even larger systems. Systems engineering is in fact, nothing but modeling and
designing for overall optimization. A system‟s scientist’s preview is the whole. He is concerned
with a gestalt or general model which integrates all the parts meaningfully. Peter F Drucker, an
eminent thinker on management is of the opinion that since the days of Plato, a philosopher, the
definition of the good society has been to make the whole that is greater than the sum of its parts
and this is precisely what system’s approach derives at. The employees/workers in an
organization should transform technology into a meaningful tool in the hands of the former. This
system is based on the ground that every organization comprised of the people, the technical
system and also the environment. The people (social system) use the tools, techniques and
knowledge (the technical system) to produce goods and service value by consumers or users
(who are part of the external environment). Thus, equilibrium among the social system, the
technical system and the environment is essential to make the organization more effective and
meaningful. All the above states aspects shall have to be well coordinated to achieve the set goal.
Various modern writers of management like Phillip Sleznick Lawrence and others state that the
situational approach is based on the premise that those cannot be universal guide lines which are
congenial or suitable for all contingencies or situations. Each situation differs and demands
different action. There cannot be one approach to all situations it is quite difficult to achieve
coordination and ultimately the set goal. The organizational systems are interrelated with the
environment. The contingency approach suggests that different environs needed different.
Organisational relationships for maximum or optimal effectiveness, taking into consideration
various factors like legal, social, political, technical and also economic factors since these aspects
take the organization a long way to achieve the goal. Therefore achieving coordination much
heavily depends on situations in the organization and its environment.
The organization consists of groups. Coordination can be achieved by all concerned groups in the
organization. Coordination helps to a great extent the attainment of a group through getting a
balance among and a smooth blending of the necessary part’s activities, encouraging group’s
participation in the beginning of administration’s planning and also winning acceptance of the
group’s goal from each and every member.
Hindrances to coordination, according to Luther Gullick arise from the following:

(a) Uncertainty of the future. This is with regard to the behaviour of individuals and the people at
large;
(b) The lack of knowledge, experience, wisdom and character among the leaders and their
confused and conflicting ideas and objectives;

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(c) A vast number of variables involved and the incompleteness of human knowledge about man
and life;
(d) The lack of administrative skills and techniques;
(e) The lack of orderly methods of developing, considering, perfecting and adopting new ideas,
and programmes.

9.5 CENTRALISATION AND DECENTRALISATION: INTRODUCTION

Structural arrangement of an organization affects the achievements of values and objectives of
organizations. These also affect the ability of organizational units and sub units to mobilize the
resources but political environment, prevailing administrative conditions, history of organization,
values, customs, and traditions are significant factors deciding the structure of organization. How
the organization should be structured, whether it should be centralized or decentralized is
dilemma before the scholars and practitioners of Public Administration. The mainstream
literature in Public Administration focuses more on decentralization for its inherent advantages in
devolving power and empowerment of masses. But there are political factor and administrative
systems which decide whether they should be centralization or decentralization.

The orthodox approach to Public Administration addresses the question of centralization versus
decentralization from the perspective of efficiency and economy. The issue is essentially a
problem of relationship between higher and lower levels of organization in the matter of making
decision. Thus it relates to organizational structuring. To centralize or decentralize seems to be
the dilemma facing the government today. The compulsions of a planned economy, need for
strong defence in view of multiple threat perception and urge for national integration makes the
argument for centralization while the democratic decentralization of grass root democracy and
demand for regional autonomy and planning from below makes the strong case for
decentralization.

9.5.1 CENTRALIZATION: MEANING

Centralization has been defined thus: In the words of L.D. white, “The process of transfer of
administrative authority from lower to higher level of government is called centralization.”

According to Allen, “centralization is systematic and consistent reservation of authority at central

points in the organizations. The decisions taken by top management have an impact on entire
organization. It implies concentration of authority and decision making power at or near the top
of administrative system. The field agencies and official do not have any autonomy and they
depend on orders, instructions and directives of higher officials in implementing policies and
programmes. Thus, centralization implies domination of headquarter over field agencies and
officials.

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Advantages
Centralization has the following advantages:-
1. It ensures effective control of Chief Executive on the whole administrative system. Chief

Executive maintains effective and active control on whole administrative system in centralized
system.

2. It brings economy in administration.1Centralized uniform system of sale, purchase and

distribution avoids duplicate and misuse of resources.

3. The centralized system can take into account the broadened perspective about objectives and
interest of organization. The dangers associated with dilution of goals, duplication of efforts and
distortion of results are low.

4. It brings uniformity in administration. Uniform policies, methods and techniques are followed
in the performance of work and execution of policies throughout the whole country.

5. In a centralized system, the top management posses the wisdom and maturity required in the
governance. The leadership provided by a mature top management in a highly centralized system
tends to be of high quality.
6. It brings unity of purpose and clarity of authority at different levels of organization. There is
no confusion regarding the location of authority and decision making in organization.
7. It is easier to coordinate the activities of different units and individuals in a centralized system.
8. Centralized system insures quick decision making as there are few decision making centers.

9. It is easier to implement common policies and practices for the organisation as a whole in a
centralized system.
10. A centralized system concentrates on overall objectives of organization rather than narrow
vested interest of individual units and parts.

Disadvantages
1. It creates congestion of work at top level. There is no middle or lower levels which can share
some meaningful work load of top management. Consequently top management can neither
handle this large volume of work nor exercise effective control on administration.
2. It causes delay in decision making. It obstructs the prompt decision making and their
implementation which creates red tapism and other administrative problems.

3. The Centralized administrative system does not have the knowledge of and adaptability to
local condition and circumstances.2 Its focus is on uniformity which causes inefficient and faulty
implementation of policies.

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4. Centralization implies concentration of authority at the top which creates a rigid, bureaucratic
and autocratic system of functioning in the organization. It discourages initiative, enthusiasm and
dynamism particularly among the lower participants of organization and stifles their motivation
and morale. Such an organization fails to optimally utilize the human resources. This is not
conducive to the team spirit in organization.
5. Concentration of authority at the top tempts the top management for abuse of authority.
This encourages dictatorship in the organization. This is against the spirit of democratic system.

6. In a centralized system too many employees are required for control, inspect, accounts and
audit purposes which is very expensive. Centralized system is not suitable for economy and
efficiency of administration.
7. Centralized administrative system has very few opportunities for people’s participation and
popular initiative. It weakens the democratic system. People’s cooperation is must for success of
development plans. Centralized system does not encourage seeking the cooperation of people.
8. There is weak and ineffective communication system in centralized system. It is characterized
by delays, discontinuities and distortion in transmission of information for decision making,
action and control. The top management can not appreciate the needs and requirement of
organization in such a system.

9.5.2 DECENTRALIZATION: DEFINITIONS AND MEANING

 Decentralization denotes dispersal of authority among a number of individual or unit; it

implies the establishment of relatively autonomous field and regional offices and delegations
of decision making powers and functions to them. The inherent implication of
decentralization is that conditions and circumstances and needs and aspirations of people
vary in different areas.
 Therefore it requires decentralized administrative system which could cater to needs and
aspirations of people of area specific. Scholars defined the term decentralization in different
and an account of some of those definition is given in the para given below.
 According to Allen, “decentralization refers to the systematic effort to delegate to the lowest
 levels all authority except that which can only be exercised at central points.
 L.D. White defined the decentralization as the process of transfer of administrative power
from a higher to a lower level of organization. Koontz and Weihrich defined it as
“Decentralization is the tendency to disperse decision making authority in an organized
structure. It is fundamental aspect of delegation; to the extent the authority is not delegated, it
is centralized”. The essence of Decentralization is delegation of power.

Henry Fayol states that “everything that goes to increase the role of subordinate is
decentralization and everything that goes to reduce it is centralization”. Decentralization is a twin

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process of deconcentration and devolution. In deconcentration, a superior officer lessens his

workload by delegating some of his functions to his subordinate so that administration functions
efficiently and effectively. Devolution, which also implies dispersal of authority, is a process
wherein power is transferred from one organ of government to another by means of legislations
or constitution. Decentralization is also different from delegation. Delegation means entrusting
part of one‟s work to others. This principle favoured for skill producing and confidence creating
attributes. The subordinates who are asked to do the work delegated to them gain experience
through this method. Decentralization, on the other hand, is much broader concept. It is “transfer
of planning, decision making or administrative authority from the central government to its field
organizations, local administrations units, semi-autonomous and parastatals organizations, local
governments or NGO‟s. According to Mohit Bhattacharya, Contemporary thinking on
decentralization can be looked at from three angles. First, it is thought of as a means to spiritual
enrichment and growth of individual, both as a worker and citizen. Decentralization offers
opportunity to participate in decision making. For an individual, it is an aid to the growth and
development of personality. Secondly decentralization has instrumental value as a means to
improving organizational performance. Organizational functions can be better performed through
decentralized decision making centre which provides the access to local information and data
and creates the conditions for local popular support to administrative action and thus enhances its
efficiency. Thirdly, the current thinking, very importantly, reflects a paradigmatic shift in Public
Administration. The bureaucratic model which has so long dominated the field seems inadequate
to explain the contemporary Politico-administrative situations, centralization of authority and
bureaucratic way of decision making are its essential features. However, latest thinking on
decentralization veers around power equalization and participation. Organization theory and
political science, which did not meet very often in the past, have now almost come together in
explaining the concept of decentralization concertedly.

9.5.3 APPROACHES TO DECENTRALIZATION

In Political science and Public Administration decentralization has been discussed basically from
the view point of arrangement of Government. James W. Fasler has grouped the different
approaches to decentralization into four categories. These are: the doctrinal, the political, the
administrative and the dual role.

 Doctrinal approach seeks to treat decentralization as an end in itself instead of treating it as

a means to achieve organizational efficiency and effectiveness. This approach lays stress on the
empowerment of local community – the city, town, or village. In India, the Panchayati Raj
supposedly embodies an ancient tradition of local autonomy. The essence of this approach is
people empowerment by granting them decision making and functional authority. Thus, this
approach instead of treating decentralization as a means to the achievement of some end–values,
considers it as an end in itself.

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 The political approach believes that decentralization occurs in a political setting. The will to
create decentralized units and granting them necessary authority for their autonomous
functioning is politically decided. Decentralization in the shape of devolution to local self
governing bodies is an attempt to set upon autonomous government at the level of locality. To
create and maintain local government is, thus, a major political commitment. In the absence of
such commitment, it will merely remain in law than in actual practice. Fesler pointed out
“illusory decentralization. For example in India although devolution of power to local bodies
have been granted formally but these bodies are not given funds, functions and functionaries
essential to operate as an autonomous institution and are strongly controlled or influenced by
respective state Governments.

 The administrative approach is based on the Principle of efficiency and effectiveness.

When field administrative units are set- up through a process of decentralization, the measure is
suitable for field level decision making and for redressal of grievances. In this process, many
administrative units might come up between the local administration and the Central
Headquarters. With more and more demand for specialized functions in view of growing
complexity of administration, a number of functional departments would appear at the field
level. The administration faces a problem or general area based administrative demands and
specific function centered claims of particular functional departments. Currently, district
administration in India is faced with these problems of area function duality. To resolve this
problem and to promote such operational principles conscious attempts are needed to re-adjust
from time to time conflicting claims of area and function in deconcentrated field administration.

 The dual role Approach: The dual approach seeks to highlight the conflict in field
administration between tradition and change. The basic conflict, according to Fesler, is between
the traditional function of maintenance of law and order, and advancement of socio - economic
development. Most field administration system developed in an era when the basic purpose of
administration was to maintain status quo. The main function of administration was to maintain
law and order and collection of revenue. However, the changed concept of welfare state requires
rapid socio-economic development. It demands cooperation and participation of people in
administration and delegation of function by field generalist to their subordinates and increased
coordination among different administrative units. Thus there is urgent need to change the
system into decentralized, participative and innovative one. The resolution of conflict between
two different orientations in the field administration calls for adaptations of decentralization to
changing circumstances. The four approaches of W. Fasler address different issues and
challenges in the realization of decentralization. The doctrinal approach treats decentralization as
an end in itself. The political approach highlights political character of decentralization. The
administrative approach is based on efficiency, effectiveness and rationality. Finally, the
reorientation of roles from status quo to change orientation is the crux of dual role approach.

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9.5.4 TYPES OF DECENTRALIZATION

Decentralization takes different form in different political setting and administrative

conditions.There are four types of decentralization. These are: political, administrative, fiscal and
functional decentralization.

 Political Decentralization: Political decentralization refers to processes where the power of

political decision making and central functions are transferred from higher level of
government to lower one. The institutions which are assigned authority and functions for local
governance are governed by local people. Thus, the people residing in the periphery of local
institution have greater chances of participation in decision making. Greater participation of
people lead to increased legitimacy and more political stability of governments. Also Mass
participation makes for better policy making and effective utilization of resources. Seventy third
and seventy fourth constitutional amendment are landmark piece of legislation for setting up
three tier rural and urban governance is extension of political decentralization.
 Administrative Decentralization: Administrative decentralization occurs when a politically
independent unit delegates some of its power and function to subordinate units within its
organisation. Administrative decentralization may be territorial or functional. Territorial
decentralization means creation of area administrative units such as Divisions, District, Zones,
Circles etc., and vesting them with authority and responsibility in prescribed limits.
 Fiscal Decentralization: Fiscal Decentralization means devolution of financial power to
lower level of government. Unless the power to tax and generate revenue is granted, the political
decentralization would merely remain a dream. The local government cannot fulfill their
responsibility in the absence of adequate financial power. For instance there is provision of state
Finance Commission in the seventy third and seventy forth constitutional amendment act to
review the financial position of local bodies and to suggest measure to strengthen their financial
position. One of the reasons why Panchayati Raj could not succeed is inadequate financial
power. The Status Report (2000) on the Autonomy of Panchayati Raj Institutions and Municipal
Bodies reveals that none of the states in India, except Kerala, have tried to place requisites for
financial decentralization, while operationalizing their respective acts.
 Functional Decentralization: Functional decentralization refers to the transfer of functions
from Central or state government to local bodies in order to enable them to discharge assigned
functions and responsibilities. For instance seventy third constitutional amendment acts in India
assigns 29 functions to Panchayati Raj intuitions in India listed in Eleventh Schedule of
Constitution of India. However, these are suggestive not mandatory as under the Indian
constriction local government is state subject. Subjects and activities assigned to local bodies
under functional decentralization should be precise and clear or it can create more confusion and
chaos rather than empowerment of local community as it happens in most of states in India.
There is absence of clear cut functional jurisdiction of Panchayati Raj institutions and even that
is left to the discretion of concerned state government. The same applies to urban local bodies

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which are assigned eighteen functions by 12th schedule of Constitution of India. It also means
granting autonomy in respect of professional and technical mattes to the appropriate technical or
professional bodies by Central authority. For instance Medical Council of India is given powers
to deal with regulation and promotion of medical education and University Grant Commission
(UGC. regulates the matter in respect of higher education.
9.5.5 ADVANTAGES VS DISADAVANTAGES

 Advantages:
1. It provides relief to the higher officials by reducing their workload. Thus, the top executive
can devote greater time and energy to important policy matters.
2. Decentralization promotes quick disposal of work by vesting authority in field officials.
They need not seek the permission of higher officials for routine and sundry matters. It prompts
quick decision making and transaction of business.

3. It provides opportunity for people’s participation in administrative which strengthen the

democracy by making it realistic and comprehensive.

4. Decentralization promotes effective supervision and control since operations are being done
nearer the area of operations.

5. It makes the administration conducive to local conditions and circumstances. Decentralized

administration can better accommodate to needs, aspirations and problems
of local people.

6. Decentralization facilitates optimal utilization of Human and material resources since it

inculcate the feeling among the people that it is their own money which is being utilized. It
creates the better sense of citizenry and community work among the people.
7. It increases the morale and motivations of employees particularly at lower and middle levels
by assigning them authority and responsibility for different work. It creates a feeling among
them that higher officials believe in their ability & capability. It develops a sense of leadership
among – them and better utilization of their talent and skills.

8. It develops a better and effective systems of communications since decision are made at the
points where policies, programmes and schemes are implemented.

9. Decentralization system can better cope up with pressures and strains. They can better face the
emergent and crisis like situation as they can decide according to needs and circumstances.
10. In view the words of J.C. Charlesworth “Decentralization has more justification than mere
administrative efficiency. It bears directly upon the development of a sense of personal adequacy
in the individual citizen; it has spiritual connotations”.

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 Disadvantages
1. In a decentralized administrative system it is difficult to coordinate the diverse goals,
functions and activities of different autonomous units.
1. It is difficult to maintain uniform national policy is a decentralized system because
different regional units follow different procedure, techniques and course of action to
2. achieve their goals, since nature of many functions demands uniformity. It is major weakness
of decentralization.
2. The local officials may ignore national interests and give more importance to regional
problems and priority to narrow vested interests instead of broad national interest and vision.

3. The local politics interferes in local matters in decentralized system which creates
inefficiency and corruption in local administration.

4. It may become expensive, as duplicate services are to be maintained.

9.5.6 FACTORS GOVERNING CENTRALIZATION OR DECENTRALIZATION

Neither centralization nor decentralization is suitable for every organizational situation.

According James W. Fesler there are four kinds of factors which would appear to govern
centralizations or decentralizations. These are:
1) Factor of responsibility
2) Administrative factors,
3) Functional factors, and
4) External factors
1) Factor of responsibility:

The factors of responsibility favor centralization and discourage decentralizations. Since the head
of organizations is responsible for everything in organization. He is unwilling to decentralize and
wants to keep the more important matters in his own hands.
2) Administrative factors:
There are many administrative factors influencing centralization or decentralization. There are
age of agency, stability of policy of organizations, competence of field personnel and pressure
for speed and economy. In an old organization having well established procedures and
precedents, it is easy to decentralize than in a newer one where constant reference to higher
levels is necessary. Stability of policy facilitates decentralization; frequent changes retard it. If
the field personnel are competent and skilled, it is easy to decentralize, in case of incompetent
personnel, centralization is inevitable. It has been found that pressure for speed and economy in

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administration results in centralization. On the other hand the duplication of services in

decentralization results in more expenditure.
3) Functional factors:
Similarly if an organization have multiple functions of technical nature, the head of Department
will be bound to decentralize many of them to autonomous division or branches since he cannot
manage them all himself. If the nature of functions demands nationwide uniformity such as
defence, communication etc, there is bound to be centralization to secure such uniformity. If,
however, diversity is permissible or desirable, decentralization would result.
4) External factors:

External factors also determine centralization or centralizations. If popular support is essential or

desirable for example for the success of any programme for socio-economic development,
decentralization is essential to secure it. Without decentralization „grass root administrations‟ is
impossible. In case no such support is required, then centralization may be inevitable. Besides
these four factors idea of centralization or decentralization also depend upon political
environment of a country for example American people strongly decentralization. Inherent in
their thinking is fear and suspicion of a strong centralized government and also their belief that
values and objectives will be better achieved by decentralized administrative system. Indians
have preferred powerful centralized government for political and historical reasons.
Mark Bevir opined that Technological factors also affect the process of centralization and
decentralizations. If the technology is routine and requires little co-ordination among the
workers, the organization structure is simple and uncomplicated. If the technology is non- routine
and requires co-ordination among workers, discretion needs to be vested in small units.

Therefore centralization and decentralization depend on situation and these are not absolute
terms. Centralization is preferred for effective control and co-ordination. Decentralization is
favored for access, citizen participation and political responsiveness. Centralization and
decentralization are really matter of degree. As an organization grows in size and complexity,

decentralization is generally considered to be efficient and effective. Paul H. Appleby pointed out
nothing can be decentralized until first it has been centralized. An organization can be both
centralized and decentralized, it may have uniform policies that field official are required to
follow, but discretion may be given them to develop solution for local problems within the
framework of headquarters directives.

9.6 SUMMARY

The most significant managerial issue is delegation. No, an organization may function without
the provision of delegation. Simply put, delegation is the transfer of specific authority from a
higher authority to a lower authority. In other terms, it is delegating power and responsibilities to
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others to achieve desired results. The delegation, however, is not definitive, and authority can be
reclaimed by the person who delegated it.

All organizations recognize the importance of delegation. It facilitates the division of labour and
the reduction of complexity in the operation of organizational procedures. It allows for more
time to be spent on policy formation and planning. It has educational value and allows
subordinates to take on greater duties with boldness and efficiency. It adds flexibility to an
organization's operation. It improves the efficiency of an organization's administration by
improving staff morale.

Delegation is controlled by specific rules that must be followed to delegate authority

successfully and efficiently. It should be written down and precise. Each job in the organization
should have defined authority and responsibilities. It should be limited to the job rather than the
individual. Delegation should be methodical and planned. Because total delegation is not
practicable, just as much authority as is within the ability of subordinates to wield with prudence
should be transferred. A provision for reporting and evaluation should be included. Policies,
regulations, and procedures should be specified so that there is no ambiguity regarding the
authority given to subordinates by a superior.

Delegation is hampered by both organizational and human obstacles. Delegation is hampered by

a lack of processes and procedures, a lack of means of coordination and communication, the size
and location of the organisation, and human issues such as egoism, a desire to concentrate
authority, emotional immaturity, and reluctance to transfer powers. Complete delegation is
neither necessary nor possible, nor is it in the best interests of the chief executive and the
organisation. Finance, assessment, policy formation and planning, the right to appeal against
unlawful decisions, and other powers cannot be delegated.

Administrative tribunals are expected to play a major role in addressing people’s disputes, given
the expanding role of government in citizens' lives. We discussed the nature of administrative
tribunals and the different reasons why they are still important in this course. Various sorts of
administrative tribunals are formed in the country to solve various concerns, such as the
adjudication of public servant disputes and complaints, the settlement of consumer disputes,
industrial disputes, income tax disputes, and so on.

They allow the courts more discretion in dispensing justice and provide the court’s respite. They
do, however, have certain limitations in that they occasionally violate natural justice principles,
lack a continuous pattern of dispensing justice, and lack a sufficient basis in law or judicial
activity.

Some of these constraints, however, can be bypassed with specific protections. Administrative
tribunals should be staffed by individuals with legal expertise and experience. A code of court
processes should be devised and enforced for them to function.

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9.7 KEYWORDS

1. Egotism; the fact of being excessively conceited or absorbed in oneself

2. Rule of Law; the restriction of the arbitrary exercise of power by subordinating it to
well-defined and established laws
3. Tribunal; a body established to settle certain types of disputes
4. Adjudication; a formal judgment on a disputed matter
5. Workflow Analysis; A workflow is a system for managing repetitive processes and tasks
which occur in a particular order. They are the mechanism by which people and enterprises
accomplish their work, whether manufacturing a product, providing a service, processing
information, or any other value-generating activity.
6. Jobanalysis; a person employed to assess the essential factors of particular jobs and the
qualifications needed to carry them out.

9.8 ACTIVITIES

1. Explain in detail about Delegation of Authority.

2. What is Delegated Legislation?

3. Write a brief note on Administrative Adjudication.

9.9 REFERENCES AND FURTHER READINGS

 Mooney, James D. 1957. “Principles of Organisation;” Harper and Brothers: New York.
 Pfiffner John M. and Sherwood, Frank P, 1968. Administrative Organisation; Prentice Hall
 of India: New Delhi.
 Terry, George R, 1964. Principles of Management; Homewood: Illinois.
 White L.D., 1958. Introduction to Public Administration; Eurasia Publishing House Pvt. Ltd.:
New Delhi. ,
 Jain P.C., 1981. Administrative Adjudication - A Comparative Study of France, U.K, U.S.A.,
and India: Sterling Publishers Pvt. Ltd., New Delhi.
 Maheshwari, Shriram, 1990. Indian Administration; Orient Longman: New Delhi. Nayak,
Radhakant, 1989. Administrative Justice in India; Sage Publications: New Delhi.
 Prasad, Vishnu, 1974. Administrative Tribunals in India; Oxford and IBH Publishing Co.:
New Delhi.
 S.P. Sathe, 1999. 6th Edition, Administrative Law, Bullerworths, New Delhi.
 I.P. Massey, 2001. Fifth Edition, Administrative Law, Eastern Book Company, 2001:
 Fadia, B.L., and Kuldeep, Fadia, 2000, Public Administration: Administrative Theories and
Concepts, Sahitya Bhawan Publications,
 Agra. Wade, H.W.R, 1977. Administrative Law, Oxford University Press, New Delhi.
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Unit-10 Administrative Management theory, Bureaucratic Theory

Structure:
10.0 Learning Objectives
10.1 Introduction
10.2 Life and Works
10.3 Structure of Administration
10.4 Henri Fayal’s Administrative Theory of Management
10.5 Weber’s bureaucratic theory :Rationalization
10.6 Summary
10.7 Key Words
10.8 Model Questions
10.9 References
10.10 Additional Readings

10.0 LEARNING OBJECTIVES

After reading this unit, you should be able to:
• Understanding the Concept of Departmentalization Theory.
• Understand the Executive Functions?
• Know what are the Principles of Organizations?

10.1 INTRODUCTION

The rise of the Industrial Revolution in the 19th century prompted significant efforts to
develop organizational principles that could address the needs of emerging industries. Among
the key contributors to these early organizational theories were F. W. Taylor, an American
engineer, and Henri Fayol, a French manager. Together, they laid the foundations for what is
now known as classical management theory. Many other theorists also contributed to shaping
these ideas, all with the common goal of improving organizational efficiency and boosting
productivity.

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In the following decades, theorists in both the United States and the United Kingdom
worked to adapt these management principles for use in public organizations. Two notable
figures in this development were Luther Gulick and Lyndall Urwick, whose collaborative work,
Papers on the Science of Administration (1937), is regarded as a landmark in the study of
administrative science. Their compilation synthesized and integrated the ideas and research of
earlier theorists, focusing on organizational structures and executive functions, and was
instrumental in advancing the field of public administration.

10.2 LIFE AND WORKS

Luther Halsey Gulick III (1892-1993) was a pioneering figure in the field of public
administration, widely regarded as one of its founding fathers. Born in Yumamoto, Japan, he
spent his early years there before returning to the United States at the age of twelve. Gulick
graduated with honors in political science from Oberlin College in 1914, later earning a Ph.D.
from Columbia University in 1920. His academic achievements were recognized with a Litt.D. in
1939 and an LL.D. in 1954.

Gulick served as the Director of the Institute of Public Administration from 1921 to 1961
and was Chairman of the Board of Trustees for another two decades. His work in public
administration was complemented by his service on the National Defense Council during World
War I and as Administrator of New York City from 1954 to 1956. He also held the position of
Eaton Professor of Municipal Science and Administration at Columbia University from 1931 to
1942.

A key contributor to administrative reform, Gulick’s expertise led him to consult on numerous
projects both in the United States and abroad, including a significant water supply initiative in
Calcutta, India, under the World Bank’s auspices. He was also a member of the President’s
Committee on Administrative Management in 1936.

Throughout his career, Gulick authored over 20 books and research studies, more than
160 articles, and contributed to an extensive array of unpublished reports and papers. His
influential works include Administrative Reflections from World War II, Metropolitan Problems
and American Ideas, Modern Management for the City of New York, and The Papers on the
Science of Administration. Gulick’s advocacy for the institutionalization of public administration
was instrumental in the establishment of organizations such as the Brookings Institution, the
International City Managers Association, and the American Society for Public Administration.

He also held prestigious positions in several professional organizations, including the

presidency of both the American Political Science Association and the American Society for
Public Administration, a distinction he shared with L.D. White. Gulick’s legacy in shaping
modern administrative thought and practice endures to this day.

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Lyndall Fownes Urwick (1891-1983) was a prominent advocate of scientific management

and a distinguished management consultant. Born in Malvern, Worcestershire, UK, Urwick
graduated from New College, Oxford in 1913, before joining the family business. During World
War I, he rose to the rank of Major in the army. In 1922, he partnered with Rountree at York and
later became the Director of the International Institute of Management (1928–33). From 1934 to
1961, he was deeply involved with Urwick, Orr, and Partners Limited, serving in various
leadership roles, including president and chairman. During World War II, Urwick served as an
advisor to the UK Treasury.

A key figure in the promotion of management education, Urwick chaired the Urwick
Committee, which investigated the educational needs for training managers. He contributed to
the establishment of the Administrative Staff College at Henley-on-Thames (now Henley
Business School) and undertook consultancy work worldwide, including in the US and India.
Urwick was awarded numerous international honors, such as the Taylor Key and the Gantt
Memorial Medal in 1959, and was elected a Fellow of the International Academy of
Management in 1958.

Urwick authored several influential books, including Management of Tomorrow, The

Making of Scientific Management (3 Vols.), The Elements of Administration, Dynamic
Administration, and Freedom and Coordination. He also co-edited The Papers on the Science of
Administration with Luther Gulick and co-founded the Administrative Science Quarterly. His
contributions helped shape the evolution of management theory and practice in the 20th century.

Luther Gulick and Lyndall Urwick gained extensive experience working in civil service,
military, and industrial organizations. This background heavily influenced their perspectives,
evident in their emphasis on discipline and efficiency in organizational management. They
adopted concepts such as "line and staff" from military frameworks and were inspired by
Taylor’s machine model of human behavior. Additionally, their work reflected the influence of
Henry Fayol's studies in industrial management.

Drawing on these ideas, Gulick and Urwick formulated the classical theory of
organization, also referred to as Administrative Management theory. They argued that a
systematic and scientific approach to administration was achievable. They likened this process to
the evolution of engineering, which transitioned from being seen as a craft practiced by
individual artisans to a well-established science through meticulous observation, analysis, and
documentation. Similarly, they believed that by analyzing and recording the experiences of
administrators, it was possible to transform administration from an art into a science.

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10.3 STRUCTURE OF ADMINISTRATION

A distinctive aspect of the writings of Gulick and Urwick is their strong emphasis on the
structural aspects of administration, often at the expense of considering the role of individuals
within an organization. Urwick, in particular, underscored the importance of isolating the
structural dimension to advance the study of organization, even if this approach might appear
artificial. He attributed much of the friction and confusion in society, along with their significant
consequences, to flaws in organizational structures.

Urwick defined organization as the process of identifying the activities required to

achieve a specific purpose or plan and arranging these activities into groups, which are then
assigned to individuals. In his framework, priority is given to defining and grouping tasks, with
the assignment of responsibilities to individuals being a secondary concern. He acknowledged
that one might not always have a "clean slate" to begin designing an organization, but he
advocated assuming such a clean slate to create an ideal organizational structure. Adjustments, if
necessary, could be made subsequently.

For Urwick, the process of designing an organization was fundamental. He argued that
the absence of proper design leads to outcomes that are illogical, cruel, wasteful, and inefficient.
He described it as illogical to employ someone without clarity about the position they will
occupy. It is cruel when employees are unaware of the qualifications required or the
responsibilities expected of them. A lack of proper design results in waste, as functional
specialization becomes difficult and training successors for vacancies caused by retirement or
death becomes inefficient. Additionally, it fosters inefficiency, as supervisors lack clear
structural guidelines to resolve conflicts, relying instead on personal judgment.

Principles of Organisation

After emphasizing the significance of structure as a design process, Gulick and Urwick
shifted their focus to identifying principles that could guide the creation of an effective
organizational structure. Gulick, in particular, outlined ten principles of organization, drawing
inspiration from Henry Fayol’s fourteen basic elements of administration. The principles
articulated by Gulick include:

These principles aim to provide a framework for ensuring that an organization functions
efficiently and effectively, allowing it to achieve its goals through a well-organized structure.
They are:

• Division of work or specialisation

• Bases of departmental organisation

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• Coordination through hierarchy

• Deliberate coordination
• Coordination through committees
• Decentralisation
• Unity of command
• Staff and line
• Delegation and
• Span of control

Among the ten principles of administration, Gulick places significant emphasis on the
division of work, which he considers not only the foundation of organization but also the very
reason for its existence. This focus on work division was also central to other classical
administrative theorists. According to Gulick, dividing labor involves breaking down tasks into
their component functions, and then further subdividing each function into simpler, repetitive
activities. After the work is divided, the next step is to interrelate these divided parts.

The organizational process, in Gulick's view, involves first grouping various activities
into subunits, then consolidating these subunits into larger units, and finally integrating these
units to form the overall organizational structure. He argues that division of work and the
integration of these divided parts are essential processes, which, in his words, function as the
"bootstraps" by which mankind progresses in civilization. This approach highlights how
organized work, through careful division and coordination, leads to greater efficiency and the
ability to achieve collective goals.

Gulick was aware that the division of work, though fundamental to organization, has its
limitations. He recognized that factors such as the volume of work, technological constraints,
customs, and physical or organic limitations could impose boundaries on how far work could be
divided. While division of labor remains crucial, it must be balanced with these practical
considerations.

Urwick, on the other hand, identified eight key principles of organization. These principles are:

1. Principle of Objectives – The organization should reflect a clear purpose.

2. Principle of Correspondence – There must be a balance between authority and
responsibility.
3. Principle of Responsibility – Superiors are absolutely responsible for the work of their
subordinates.

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4. Scalar Principle – This refers to the hierarchy or chain of command within an

organization.
5. Principle of Span of Control – A superior can effectively supervise no more than five or
six subordinates whose work interlocks.
6. Principle of Specialization – Individuals should focus on a single function.
7. Principle of Coordination – Different parts of the organization must work in harmony.
8. Principle of Definition – Every duty should be clearly defined.

Building on these, Urwick expanded his framework by integrating the principles of Fayol,
Mooney and Reiley’s principles of process and effect, Taylor’s principles of management, and
ideas from Follett and Graicunas. This resulted in a comprehensive set of twenty-nine
principles and several sub-principles. These principles included:

1. Investigation
2. Forecasting
3. Planning
4. Appropriateness
5. Organization
6. Coordination
7. Order
8. Command
9. Control
10. Coordinative Principle
11. Authority
12. Scalar Process
13. Assignment of Functions
14. Leadership
15. Delegation
16. Functional Definition
17. Determinative
18. Applicative
19. Interpretative
20. General Interest
21. Centralization
22. Staffing
23. Spirit
24. Selection and Placement
25. Rewards and Sanctions
26. Initiative
27. Equity
28. Discipline

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29. Stability

Urwick believed that administrative organization remained an underexplored field, with

many unknowns yet to be discovered. Therefore, he suggested that his principles should be
viewed not as absolute rules but as a framework of thought—an arrangement of ideas intended to
guide others in synthesizing their own insights based on experience. This perspective emphasizes
the evolving nature of organizational theory and the need for continued exploration.

 KEY EXECUTIVE FUNCTIONS

Gulick identified key executive functions and introduced the acronym POSDCORB, which
represents the core functions of management. Each letter of the acronym corresponds to an
essential managerial responsibility.

The first function, represented by the letter

 ‘P’, stands for Planning. Planning involves identifying the various activities needed to
achieve organizational goals and arranging them in a logical order of priorities and
sequence. It is the process of determining how to utilize available human and material
resources efficiently and effectively to achieve the organization’s objectives. Essentially,
planning is about setting a course of action that ensures the organization reaches its goals
in a systematic and economical way, optimizing both resources and effort.

 ‘O’ stands for Organization: After planning the activities of the administration, the next
step is to establish the structure through which these activities are carried out. The
organization defines how tasks are operationalized and how objectives are achieved.
 ‘S’ stands for Staffing: This function encompasses all aspects of personnel management,
including recruitment, appointments, promotions, discipline, and retirement. Since the
efficiency of an organization depends largely on its personnel, a significant portion of the
executive’s time is often devoted to staffing.
 ‘D’ stands for Directing: Directing involves issuing orders and instructions to
subordinates to guide their activities. This function is crucial for ensuring that the work is
carried out effectively and in alignment with the organization’s goals.
 ‘Co’ stands for Coordination: Coordination is about preventing conflicts and duplication
of efforts within the organization. It ensures cooperation and teamwork between various
units and individuals, fostering alignment and harmony in achieving shared objectives.
 ‘R’ stands for Reporting: Reporting refers to the upward flow of information to the
executive. The executive needs to stay informed about the progress of activities within
the organization, and reporting systems are essential for identifying issues and taking
corrective action when necessary.

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 ‘B’ stands for Budgeting: Budgeting encompasses financial administration, including

managing finances, financial planning, accounting, and ensuring resources are allocated
appropriately. Since finance is essential for all operations, executives must give careful
attention to budgeting to maintain organizational health.

Through these functions, Gulick’s POSDCORB framework highlights the multifaceted role
of executives in ensuring effective organizational management.

 Theory of Departmentalisation

The theory of departmentalization addresses the challenge of how to divide work and create
departments within an organization. Luther Gulick identified four key bases for
departmentalization, commonly referred to as the ‘4Ps’: Purpose (Function), Process, Persons
(Clientele), and Place. In his analysis, Gulick discussed the merits and demerits of each base,
emphasizing that while each base offers certain advantages, it often comes at a cost when
compared to the others.

1. Purpose (Function): One approach is to organize work based on the major functions or
purposes of the organization. This method involves identifying the core functions and
goals of the organization, then creating departments to focus on each of those functions.
Gulick highlighted the benefits of self-containment (where each department can function
independently) and low coordination costs as key advantages of departmentalizing by
function. This structure allows for clearer focus and accountability within each
department.
2. Process: Another approach is to organize departments based on specialized processes or
skills. This method involves grouping all work that uses similar processes, techniques, or
knowledge. For example, departments could be formed around functions such as
manufacturing, research, or marketing, each requiring distinct skill sets or processes. The
advantage of this base is that it allows for greater expertise and specialization, though it
may come with higher coordination costs across different process-based departments.

Gulick carefully examines the advantages and disadvantages of various bases for
departmentalization, emphasizing that each approach brings both strengths and trade-offs. In
particular, he outlines the benefits and limitations of organizing work based on purpose
(function) and process (skill specialization).

Purpose (Function) as a Base for Departmentalization:

Gulick highlights several advantages of organizing by purpose or function. The key benefit is
that it ensures the accomplishment of specific objectives by consolidating related tasks under a
single director who has direct control over all the necessary resources, experts, and services. This

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concentration of authority and responsibility allows the director to focus fully on achieving the
goal, with minimal outside interference. The approach also streamlines coordination, as all
aspects of the function are handled within the same department, which helps ensure efficient
execution of tasks.

However, Gulick also points out several limitations of this approach. One key concern is that
a functionally-based organization may struggle to make use of the most current technical
advancements and specialists. This happens because the volume of work within a given function
may not justify the specialized divisions needed to maintain high levels of technical expertise. As
a result, efficiency might be compromised, and opportunities for innovation could be missed.

Process as a Base for Departmentalization:

When discussing the process base, Gulick emphasizes its advantages in terms of efficiency
and specialization. By grouping work that relies on similar processes, an organization can benefit
from the specialization of skills and work division, leading to a higher level of technical
expertise in each process. Additionally, Gulick notes that organizing work by process allows for
the economies of scale associated with mass production and labor-saving machinery. The use of
the same tools and techniques across multiple tasks allows the organization to maximize the
utility of resources, improving both cost-efficiency and productivity.

However, like the purpose-based structure, the process-based structure also has its
challenges, particularly when it comes to integrating work across different processes or
functions. While the process basis encourages specialization within specific tasks, it may require
careful coordination between departments to ensure that the overall goals of the organization are
met efficiently.

Gulick’s analysis of departmentalization highlights that while each base offers distinct
benefits, there are trades-offs regarding coordination, integration, and adaptability. The structure
chosen for departmentalization must align with the organization's specific needs, carefully
balancing the advantages of specialization with the challenges of coordinating various units and
adapting to change.

Specialization According to Clientele:

The third base of departmentalization is the specialization based on clientele. This

approach organizes departments around the specific groups of clients or customers served by the
organization. By focusing on a particular clientele, departments can develop specialized skills
and knowledge tailored to their needs. However, this method also presents challenges. Gulick
observes that such specialization can become inefficient when different departments overlap in
their services, leading to duplication of efforts and difficulties in coordination. Additionally, it

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may not always be applicable across all types of organizations, particularly when the client
groups are diverse or constantly changing.

Specialization by Place (Territory):

The fourth base is specialization by place, where all functions performed within a
particular geographic area are grouped together into departments. This approach is useful when
intensive development is required in a specific area, and it allows the organization to develop
expertise tailored to the needs of that region. Members of such departments become area
specialists, well-versed in the unique challenges and requirements of the territory they serve.
However, the major drawback is that such a structure can lead to inefficiencies when trying to
coordinate across different areas or scale operations in a wider context.

Factors beyond the Four Bases:

While Gulick’s theory of departmentalization is rooted in logical, common-sense

principles, he did not fully consider the external factors that can influence the division of work.
The choice of specialization may be affected by a variety of cultural, environmental,
personnel, and political factors. For example, the prevailing organizational culture may shape
how work is divided and whether certain bases are more suitable than others. Environmental
factors, such as changes in technology or market conditions, could also influence the choice of
departmentalization. Furthermore, the availability of skilled personnel and political
considerations (e.g., regional or departmental power dynamics) can also affect how work is
divided within an organization.

Thus, while Gulick's bases for departmentalization provide a foundational understanding

of how work can be organized, in practice, decision-makers must also consider a broader set of
influences when determining how best to structure their organizations. This more nuanced
approach ensures that the chosen structure aligns with both internal capabilities and external
demands.

 Single Top Executive

Gulick and Urwick were both firm advocates for organizations being led by a single top
executive rather than plural bodies like committees. They believed that a single executive was
essential for effective leadership and accountability, as committees could foster a culture of
irresponsibility. Urwick, in particular, criticized committees for being a mechanism to shield
mistakes and avoid responsibility. He famously remarked that a committee is "like a corporation
without a soul to be damned or a body to be kicked," highlighting the lack of individual
accountability within such groups.

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To support their stance, Urwick and Gulick referenced the Report of the U.S.
President’s Committee on Administrative Management, where they emphasized that boards
and commissions had proven to be ineffective in practice. According to the report, such
collective bodies tend to be slow, cumbersome, wasteful, and ineffective, particularly when it
comes to cooperating with other agencies. In contrast, the report noted that well-managed
administrative units were almost always headed by single administrators, underscoring the
importance of a clear, centralized leadership structure.

Furthermore, Gulick and Urwick also advocated for the unity of command principle,
which holds that a subordinate should receive orders from only one superior. They argued that
this principle was crucial for maintaining clear lines of authority and preventing confusion and
inefficiency. While they recognized that there were exceptions to this principle, such as in the
case of functional supervision (as proven by Taylor’s scientific management), they believed
that the advantages of unity of command generally outweighed the confusion and
irresponsibility that could arise when the principle was violated. Despite acknowledging some
functional specializations might require multiple lines of supervision, Gulick and Urwick
emphasized the benefits of adhering to the principle of a single, clear authority in
organizational structures.

 Principle of Staff

The principle of staff is derived from the principle of unity of leadership, which asserts
that all authority rests with a single leader. In such a system, the leader requires assistance to
manage the organization effectively, and this assistance is provided by staff. Gulick and Urwick
distinguish between two types of staff: special staff and general staff.

1. Special staff units are non-authoritative and provide specialized technical advice and
information to the leader. Their role is to support the decision-making process through
their expertise, offering guidance based on knowledge, analysis, and planning. They help
the leader make informed decisions, operating through the "authority of ideas" rather than
direct power.
2. General staff units assist the leader in the tasks of command, control, and
coordination. They are responsible for drafting and transmitting orders, following up on
operations, and ensuring that different parts of the organization work together efficiently.
However, unlike the special staff, they do not engage in specialized functions; instead,
they focus on supporting the executive in general management tasks.

Gulick’s ideas were influential in the development of the staff agencies under the American
President. As a member of the President's Committee on Administrative Management, he applied
these principles to the U.S. civil administration, helping to shape the structure and functions of
modern staff agencies. This framework allowed the executive to delegate specialized tasks to

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staff while maintaining centralized authority and control over the organization’s overall
operations.

 Delegation of Authority

The delegation of authority is another key principle emphasized by Gulick and Urwick
in their administrative management theory. They argued that administrators must retain the
necessary authority to manage the organization effectively but should delegate the remaining
authority to their subordinates. Without delegation, subordinates would be unable to fulfill their
responsibilities or manage the functions entrusted to them effectively.

Urwick particularly stressed that organizations fail to function efficiently when

executives do not have the initiative to delegate authority or lack the knowledge of how to
delegate. He pointed out that for delegation to work, subordinates must have the absolute
authority necessary to carry out their tasks, and they must be personally accountable for the
actions of their subordinates. In this context, Gulick and Urwick emphasized that authority and
responsibility must be co-equal and defined, meaning that both must correspond and align with
each other in a clear, structured manner. This principle, often referred to as the correspondence
of responsibility and authority, ensures that authority is granted to those responsible for tasks
and that they are held accountable for the outcomes.

Thus, the delegation of authority is seen as essential to ensuring effective administration,

providing subordinates with the power to act while holding them accountable for their actions.

Principle of Span of Control

The principle of span of control suggests that an executive can effectively manage a
limited number of subordinates at one time. Urwick famously stated that no superior could
directly supervise more than five or six subordinates whose work is interdependent. He argued
that as the number of subordinates increases, the number of relationships and coordination
requirements grows exponentially, making it difficult for a superior to manage effectively.
However, Urwick did not see the number as a strict rule, but rather as a useful general principle
and a tool for diagnosing organizational weaknesses.

In contrast, Gulick did not set a fixed number for the span of control but emphasized the factors
that influence it. He identified three main determinants:

1. Supervisor’s capabilities: An executive's knowledge, intellect, and personality can

enable them to supervise a larger number of subordinates effectively. The more skilled
and experienced the supervisor, the higher the span of control they can manage.

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2. Nature of the work: The type of work the subordinates perform plays a crucial role. If
the tasks are routine, repetitive, and homogeneous, a supervisor can manage more
subordinates. However, if the work is diverse, qualitative, and involves scattered
employees, the supervisor can manage only a few.
3. Stability of the organization: In stable, long-established organizations, administrative
procedures, methods, and techniques are more consolidated, so superiors may require less
direct intervention, allowing for a broader span of control. In new or dynamic
organizations, executives need to be more involved in establishing procedures and
setting precedents, which may limit the number of subordinates they can effectively
supervise.

Gulick encouraged further research on this topic, acknowledging that the span of control is
influenced by a variety of organizational and individual factors, making it a more flexible
principle than a rigid rule.

 Human Factor:

In his later writings, Gulick reflected on the significant changes that had occurred in the
field of Public Administration since the publication of The Papers on the Science of
Administration more than seventy years ago. He recognized that much of his earlier analysis had
focused on systems, structures, and the technical aspects of administration, but he noted a critical
shift in perspective. After fifty years of analysis, Gulick acknowledged that human beings are at
the heart of public administration, emphasizing that governments are composed of, run by, and
ultimately exist to serve human beings.

Gulick highlighted that understanding human beings—their needs, welfare, survival, and
development—should be central to the study and practice of public administration. He argued
that the primary purpose of the state should be the welfare and improvement of its citizens,
aiming to address the challenges of an ever-changing environment rather than being primarily
focused on military concerns. Unfortunately, he observed that modern state structures are still
largely military in design, with authority concentrated at the top and a hierarchical system
where work is delegated downward without corresponding authority.

The language of public administration, according to Gulick, is heavily militarized,

using terms such as "line and staff," "field commanders," and "material and manpower,"
reflecting its origins in military organization. Furthermore, when making decisions, particularly
in the realm of cost-benefit analyses, public administrators often manipulate quantitative
data—such as hard statistics—while neglecting human values and the broader goal of
enhancing human welfare.

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Thus, Gulick’s later writings emphasized the need to shift the focus of Public
Administration from a militaristic, top-down, and impersonal structure to one that prioritizes the
human element, addressing the well-being and needs of citizens as the core mission of public
service. He envisioned a future where human being—not just systems and structures—are the
dynamic factors driving the field of administration.

Gulick, in his later reflections on Public Administration, calls for a new approach to the
organization of the state, advocating for greater decentralization rather than the current
centralized, hierarchical, military-style structures. He critiques the traditional view of the
economic man and the free market, which he sees as unrealistic and disconnected from the
reality of human welfare and compassion. Gulick argues that public administration should focus
on the well-being of citizens and address the needs of the human element within the system.

A key aspect of Gulick's later work is his emphasis on time as a crucial factor in
administration and management. Without time, he asserts, there can be no change, growth,
cause and effect, or responsibility for management decisions. He notes that all public policy
innovations are rooted in the concept of timing and that timing is an essential hallmark of
statecraft. Gulick identifies five different aspects of time that are significant for public
administration:

1. Time as an input: This refers to the time required to initiate an action or policy.
2. Time as an output: The time it takes for the effects of a policy or decision to materialize.
3. Time as the flow of events: The sequence of events in the public administration process.
4. Time as a gap: The time gap between significant events or processes that may influence
each other.
5. Timing as a management policy: The strategic and careful planning of when to take
action, reflecting the importance of timing in management decisions.

Gulick underscores that time has practical and significant implications for public
administration. He argues that management principles should be tied to the culture in which
they operate, noting that an organization's culture must evolve before major organizational
changes can be effectively implemented. He contends that an organization is more like an
organism than a machine, meaning that it is constantly evolving and requires strategic
management of time to grow and change effectively.

Gulick laments that time has often been a neglected factor in public management. He
stresses that time must become a central concern in strategic planning and moral decision-
making, and that the government must learn to plan and work with time, understanding its flow
and impact on governance. In essence, he believes that an effective government must align its
actions with the natural flow of time, ensuring that policies and actions are taken at the right
moment to achieve their intended outcomes.

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10.4 Henri Fayol’s Administrative Theory of Management

Identified six sets of activities that are fundamental to any organization: technical, commercial,
financial, security, accounting, and managerial. Among these, he focused on the five core
managerial functions, which form the foundation of his management theory: planning,
organizing, commanding, coordinating, and controlling.

1. Planning: Fayol viewed planning as the most crucial function, using the French term
Prevoyance to convey the concepts of foresight, anticipation, and preparation. Planning
allows an organization to separate short-term tasks from long-term objectives, and a good
plan should be characterized by unity, continuity, flexibility, and precision. Planning is
seen as the key instrument for effective administration.
2. Organization: To Fayol, organizing involved providing everything necessary for the
functioning of an organization—raw materials, tools, capital, and personnel. He
categorized this into two parts: the material organization, which includes resources, and
the human organization, which includes the structure, personnel, and leadership.
Effective organization requires alignment between both these categories.
3. Commanding: The function of commanding, according to Fayol, involves leadership and
the ability to motivate and direct individuals within the organization. The manager must
possess the necessary personal qualities and management knowledge to effectively guide
and lead the workforce.
4. Coordinating: Coordination, for Fayol, meant harmonizing and aligning the activities of
various departments within the organization. The objective of coordination is to ensure
that different efforts and actions are synchronized and in line with the overall goals of the
organization. This involves ensuring that all parts of the organization work together
efficiently.
5. Controlling: Fayol’s concept of controlling involves monitoring and ensuring that the
organization’s activities align with the established plans, instructions, and principles.
Control also involves identifying errors and weaknesses, correcting them, and preventing
their recurrence. For control to be effective, it must be timely and followed by
appropriate corrective actions or sanctions.

Fayol's managerial functions remain central to modern management thought and practice,
providing a framework for organizing and optimizing the work of an organization.\

 Henri Fayol’s fourteen principles of organization

Henri Fayol’s fourteen principles of organization are a significant part of his administrative
theory and serve as foundational guidelines for effective management. These principles, though
not rigid or one-size-fits-all, were designed to provide managers with a framework that could be
adapted to various types of organizations and work environments. Fayol believed that these
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principles could help managers understand and address the challenges of running a business,
ultimately improving organizational efficiency and effectiveness. Here is an expanded look at
each of these principles:

1. Division of Work: Fayol emphasized that breaking down tasks into specialized roles
allows individuals to become more skilled and efficient at what they do. This division
helps in increasing productivity and expertise. While the principle is often applied to
technical work, it is also relevant to other areas of organizational activity, including
administrative and managerial tasks. Specialization ensures that workers can focus on
what they do best, which leads to better results overall.
2. Authority: Authority is the right to give orders and expect obedience. Fayol identified
two forms of authority: official authority, which comes from the manager’s position or
title, and personal authority, which stems from a manager’s experience, intelligence,
and leadership abilities. Effective authority is a balance of both. Responsibility, according
to Fayol, comes as a natural consequence of authority—where there is authority, there
must also be accountability.
3. Discipline: Fayol argued that discipline is crucial for an organization to function
smoothly. Discipline, in his view, means adherence to agreements between employees
and the organization. It involves maintaining order, following rules, and ensuring that
both employees and managers respect the established procedures. Fayol stressed that
discipline must be instilled by good leadership, with clear and fair agreements, and that
managers should apply sanctions (penalties) judiciously when necessary to maintain
order.
4. Scalar Chain: The scalar chain refers to the hierarchical structure within an
organization, with each employee knowing their superior and subordinate. It ensures that
authority flows clearly from top to bottom. Fayol believed that this chain of command
should be clearly defined to avoid confusion. However, he also recognized that the strict
adherence to hierarchy can lead to delays and inefficiency, so he introduced the idea of
the "gangplank"—a method for employees at the same level to communicate directly
when necessary to avoid bottlenecks in decision-making.
5. Unity of Command: This principle states that an employee should receive orders from
only one superior. If an employee receives conflicting instructions from multiple bosses,
it can create confusion, conflict, and a breakdown in authority. Fayol believed that unity
of command was essential to maintain order, discipline, and clear communication within
the organization. Any violation of this principle could lead to chaos and undermine the
efficiency of the organization.
6. Centralization and Decentralization: Fayol saw centralization and decentralization as a
matter of proportion. Centralization means that decision-making authority is
concentrated at the top levels of management, while decentralization refers to
distributing decision-making power to lower levels. The appropriate degree of
centralization or decentralization depends on the size and complexity of the organization.
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Fayol believed that centralization should be used when the organization is small and that
decentralization could be beneficial in larger organizations, where lower-level managers
are better positioned to make quick decisions.
7. Unity of Direction: According to this principle, all activities that are aimed at achieving
the same goal should be directed by one plan and coordinated by one manager. This
ensures that the efforts of all employees are aligned and focused on the organization’s
objectives. Fayol argued that unity of direction fosters collaboration and prevents
conflicting activities within an organization. This principle should not be confused with
unity of command, though—while unity of command applies to individual employees,
unity of direction applies to groups or departments with shared goals.
8. Subordination of Individual Interest to General Interest: Fayol stressed that the
organization’s interests should take precedence over personal or individual interests.
Employees should work toward the collective goal of the organization rather than
pursuing their personal agendas. He argued that the achievement of organizational goals
requires individuals to subjugate their own interests for the benefit of the organization as
a whole. Managers should set an example of this behavior through fairness and
impartiality.
9. Remuneration: Fayol emphasized the importance of fair compensation for employees.
Remuneration should be such that it satisfies both the employee and the employer. A fair
wage motivates employees, ensures job satisfaction, and helps retain talent. Fayol
suggested that the method of payment (e.g., time-based, piece-rate, or job-based pay)
should be aligned with the nature of the work and the prevailing market conditions. He
also cautioned against overpaying employees, which could create imbalances and
inequality within the organization.
10. Order: Fayol believed that order was essential for efficiency. This principle involves two
key ideas: material order (the proper organization of physical resources and equipment)
and human order (the proper placement of personnel in suitable roles). Fayol
emphasized that each person should have a defined role and that resources should be
organized in a way that maximizes efficiency. A well-organized workplace reduces
waste, confusion, and delays, ensuring that everyone knows their responsibilities.
11. Equity: Fayol argued that employees should be treated with fairness, kindness, and
justice. Equity is a blend of kindliness and justice and should be practiced by managers
at all levels. While equity requires fairness, it also involves the application of discretion
and understanding, as there are times when strict rules might not be applicable. Fayol
believed that if employees feel they are treated equitably, they will be more loyal,
motivated, and productive.
12. Stability of Tenure: Stability of tenure refers to the importance of job security and the
long-term employment of workers. Fayol believed that employees need time to adjust to
their roles, become proficient, and contribute meaningfully to the organization. Frequent

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turnover leads to instability and loss of knowledge, which hinders organizational

progress. Stability helps employees feel secure, which increases morale and productivity.
13. Initiative: Fayol recognized the value of initiative in an organization. He encouraged
managers to allow employees the freedom to propose new ideas, make decisions, and
take action to improve the organization. Initiative motivates employees and fosters
creativity, which is crucial for innovation and growth. By empowering employees to
contribute ideas, managers can tap into a wealth of knowledge and insight that can lead to
better solutions and improvements.
14. Esprit de Corps: Esprit de corps means team spirit or unity among employees. Fayol
believed that a sense of unity and harmony within an organization was vital for its
success. This principle stresses the importance of teamwork, collaboration, and mutual
respect among employees. A harmonious work environment increases morale, fosters
loyalty, and leads to greater efficiency. Fayol warned against divisive practices such as
favoritism and the misuse of communication channels, which could undermine unity.

Fayol’s principles provide a comprehensive framework for management that focuses on

improving organizational efficiency, promoting employee welfare, and fostering a harmonious
work environment. These principles have had a lasting impact on the field of management and
continue to be relevant in modern organizational practice. While they may need adaptation based
on the specific context of each organization, they offer valuable insights into the fundamental
practices that help organizations run effectively and efficiently.

10.5 WEBER’S BUREAUCRATIC THEORY : Rationalization

The central theme of Weber's work revolves around rationalization and its impact on individual
freedom in an increasingly rationalized society. This theme is explored within the broader
context of societal structures, which are often shaped by the economy. Weber defined
rationalization as the process of understanding reality not through mystery, magic, or tradition,
but through systematic and logical methods. He applied this concept to the analysis of the
bureaucratic nature of organizations.

Weber initially highlighted the role of rational human efforts in his influential work *The
Protestant Ethic and the Spirit of Capitalism* (1904), where he argued that ascetic Protestantism,
particularly Calvinism, directed human efforts towards rationality with the goal of achieving
economic success. He further developed this idea in his studies on bureaucracy and his
classification of legitimate authority into three types: traditional, charismatic, and rational-legal.
He identified rational-legal authority as the dominant form in modern society. In his examination
of domination, Weber observed the movement toward rationalization in human society. This
rationalization was also evident in the economy, particularly with the rise of highly rational and
calculating capitalism. Weber believed that rationalization was a key factor that distinguished
Western Europe from other parts of the world. For him, rationalization played a crucial role in

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the development of modern society, contributing to the rise of capitalist enterprises and the
bureaucratic state apparatus.
Weber distinguished three ‘ideal types’ of political leadership or domination or authority,
viz,
i) Charismatic domination in familial and religious fields,
ii) Traditional domination in feudalism and patriarchy.
iii) Rational-legal domination in modern state and bureaucracy.
Weber argued that the shift towards a rational-legal system of authority, structured
through bureaucracy, was inevitable. This idea is deeply connected to his broader concept of
rationalization. For Weber, bureaucratic administration represented a form of domination based
on knowledge. In his influential work *Economy and Society* (1922), he examined various ideal
types of public administration and governance. His critical analysis of the bureaucratization of
society became one of the most enduring aspects of his research. Weber was the first to study
bureaucracy systematically, and he popularized the term. The classic, hierarchically organized
civil service model of Prussia is often referred to as the "Weberian civil service." Weber believed
that the most efficient and rational form of bureaucracy was a crucial element of rational-legal
authority. He viewed bureaucracy as a central force in the ongoing rationalization of Western
society.

 IDEAL TYPE BUREAUCRACY OF WEBER

Weber’s ‘ideal type’ bureaucracy is characterized by certain prominent features of its own, viz.
i) The hierarchical structure of public offices.
ii) Recruitment to bureaucracy is on proven merit by competitive examination. iii) Delineated
lines of authority in a fixed area of activity.
iv) Decisions and actions are taken based on written rules and precedence and these are recorded
in files.
v) Officials gain expertise and efficiency through systematic professional training.
vi) Decisions are taken and implemented impersonally and neutrally.
vii) Career advancement of officials depends on technical qualifications like seniority and/or
merit as judged by the organization, and not by individuals.
From these organizational features follow some behavioural characteristics viz,
i) Officials are paid from public funds and enjoy a fixed term of office, subject to good
behaviour.
ii) Compensation (payment) is deliberately made attractive to ensure impersonality and neutrality
in discharging official duties.
iii) Secrecy is maintained to the utmost degree in official functioning.
iv) Strict discipline is maintained within the hierarchy of bureaucracy, i.e. the decision of the
superior officer must be accepted by the subordinate official.
v) The distinction is maintained between official and personal matters; the bureaucrats must not
appropriate the post or resources that go with the post.

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vi) Administrative work is the full-time occupation of the official.

In Weber's framework, bureaucracy is not synonymous with civil services. Instead, it
represents the most rationalized form of organizational activity, ensuring predictable decision-
making. Its development is seen as a critical aspect of the modern state. Weber asserts that the
bureaucratic form is the most efficient organizational structure for managing large-scale,
complex administrations in the modern world. He compares bureaucracy to other forms of
organization in the same way that a machine is compared to non-mechanical methods of
production. According to Weber, the spread and growth of bureaucratic administration is integral
to the development of corporate groups in various fields, including the church, state, military,
political parties, economic enterprises, private associations, and clubs. He argues that, from a
technical standpoint, bureaucracy is always the most rational type of organization. For mass
administration, bureaucracy is considered indispensable.

Weber stated, "The choice is only that between bureaucracy and dilettantism in the field
of administration" (The Theory of Social and Economic Organisation). However, he also
acknowledged that involving economic interest groups, non-official experts, or local and
parliamentary representatives often contradicts the bureaucratic tendency.

While Weber recognized that bureaucracy is essential for modern state administration, he
also saw it as a potential threat to individual freedoms. Bureaucrats, he argued, become
individuals trapped in the "iron cage" of rule-based, rational control. To counterbalance this
bureaucratic mindset, Weber believed the system needed entrepreneurs and politicians to inject
flexibility and creativity into the rigid structure of bureaucracy.
 CRITICISM OF WEBER'S CONCEPT OF BUREAUCRACY
Weber's concept of bureaucracy offered a crucial tool for analyzing organizational
challenges in a society adjusting to industrialization. His goal was to establish a rational and
efficient organizational structure, though he did not claim that bureaucracy was a universal
model for all organizations. For Weber, bureaucracy was an "ideal type," a theoretical construct
rather than a rigid system to be applied everywhere. Today, however, many large organizations,
both public and private, predominantly feature bureaucratic structures. The bureaucratic
management approach has gained widespread popularity due to its efficiency in handling certain
tasks and its ability to reinforce power and control, thereby ensuring accountability within
organizations. This model was well-suited to the industrial age and the centralized power of the
19th century state, as well as to a society characterized by social homogeneity and stable world
capitalism. Weber's insights are deeply tied to the historical context he analyzed.

Weber did not envision a welfare-oriented model of bureaucracy. Instead, he pictured a

stable cadre of experienced, competent generalist officials who enjoyed permanent tenure and
held significant authority in the decision-making and implementation of government policies.
These expert officials were expected to be knowledgeable about what was best for the people.

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In the Weberian model, bureaucrats, guided by rules and precedents, tend to lack
empathy for the needs of the poor and economically vulnerable segments of society. Weber
prioritized efficiency rather than responsiveness to the public's needs. In contemporary contexts,
bureaucracy cannot be limited to a rational-legal framework but must also integrate public
morality. Modern bureaucrats must recognize that serving the people is central to democratic
governance.

The Weberian bureaucratic model does not challenge the existing political or economic
order; rather, it reinforces the power structures benefiting the privileged. In a welfare-oriented
administrative system, civil servants must make conscious moral decisions, aligning their actions
with legal standards while avoiding blatant violations. To ensure neutrality, Weber advocated for
an impersonal approach to performing bureaucratic duties. Regarding the legitimacy of power,
Weber lauded bureaucracy for its foundation in rational-legal authority, asserting that what is
legal is inherently rational. He correctly pointed out that other forms of authority, such as
traditional and charismatic, are non-rational, if not irrational. The rational-legal authority model,
according to Weber, is superior to feudal forms of authority, which are coercive and arbitrary.
However, a key issue is whether rational and legal frameworks are inherently positive or
developmental. Weber did not address this concern, as capitalism can be justified as rational and
legal, though not necessarily on moral grounds.
Weber’s bureaucratic model has faced criticism from empiricists and organization
theorists. One common criticism is that it represents a closed system that largely ignores the
organization's interactions with its socio-economic, political, and cultural environment. This
model is most effective in stable environments but is less suited to dynamic, changing societies.
Additionally, while the Weberian bureaucratic structure works well for routine tasks, it struggles
with tasks requiring innovation, creativity, and dynamic leadership, such as those involved in
nation-building. Bureaucratic theorists like Chester Barnard and Herbert Simon have argued that
Weber’s structural approach diminishes administrative efficiency, and that informal
organizations and better human relations could enhance efficiency within organizations.

In his Social Theory and Social Structure (1949), Robert K. Merton critiques the
Weberian bureaucratic model for its lack of flexibility and its tendency to prioritize means over
ends in administration. Similarly, Michel Crozier, in The Bureaucratic Phenomenon (1964),
highlights the deficiencies of the Weberian model in delivering services to the public in a manner
that aligns with the social environment’s demands.Peter Selznick in his TVA and the Grassroots
(1949) identifies the main difficulty with the Weberian bureaucratic model in its inability to
delegate powers and responsibilities to organizational sub-systems. The increasing complexity of
big organizations compels decentralization and delegation of responsibility to the lower units and
intermediary officials.
A new generation of organization theorists has focused on the inequalities of power and
status that exist within bureaucracies. Contrary to the idea of bureaucracy as a purely "rational"

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organization, Weber’s bureaucratic model, when applied in many democracies, often reflects the
prejudices present in the wider society. Kathy Ferguson has argued that the so-called
bureaucratic rationality has, in practice, contributed to the unfavorable judgment of women as
potential members of the bureaucracy. She points out that the "discourse of bureaucracy," which
emphasizes rationality, objectivity, and impersonality, often coexists with a "discourse of
domesticity" that values emotional and familial roles. Recent studies on bureaucracy in the
United States have uncovered the unequal distribution of power within organizations and
highlighted the tendency to restrict women to lower levels of bureaucratic decision-making.
10.6 SUMMARY

Luther Gulick and Lyndall Urwick made significant contributions to administrative

theory, particularly through their work on organizational structure and principles of management.
Their landmark work, The Papers on the Science of Administration, emphasized the development
of administration as a science, similar to engineering, based on empirical observation and
systematic study. They introduced key concepts like POSDCORB (Planning, Organizing,
Staffing, Directing, Coordinating, Reporting, and Budgeting) to outline executive functions and
emphasized the importance of organizational structure, departmentalization, and the division of
work. Gulick later focused on the human element in administration, recognizing that
governments exist to serve human welfare and that human beings are the dynamic factor in
administrative processes. He also introduced the role of time as a crucial factor in management,
stressing its strategic importance. Though their principles were foundational, Gulick and
Urwick's work faced criticism for neglecting the human side of organizations and the practical
challenges of applying their theories, highlighting the ongoing challenge of integrating theory
with real-world administrative practice.

Weber was indeed a strong advocate for bureaucracy, praising its rational characteristics
and technical superiority in his work *Economy and Society*. However, David Betham notes
that Weber's political writings reveal a more critical stance on bureaucracy, highlighting its
limitations in real-world politics. In these writings, Weber emphasizes the necessity of political
oversight by democratically elected leaders to ensure the proper functioning of bureaucratic
systems within a democracy.

Throughout the history of management studies, the term "bureaucracy" has been used by
scholars, business leaders, and public administrators across various fields. The term’s utility
depends largely on how it is interpreted. Broadly speaking, bureaucracy is seen as an
organizational form that prioritizes precision, speed, clarity, regularity, reliability, and efficiency.
These attributes are achieved through a clear division of tasks, hierarchical supervision, and the
implementation of detailed rules and regulations.
Weber emphasized the need for a rational foundation in the organization and
management of large-scale entities, whether public or private. He identified the critical challenge

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of creating a system and structure that would allow any large organization to function in an
efficient and systematic manner. For Weber, bureaucracy represented a form of management
based on positions or offices rather than individuals or patrimonial control. He viewed
bureaucracy as an ideal organizational model—hypothetical, not necessarily reflecting how most
organizations were structured. In this model, bureaucracy is a rational-legal authority, which he
regarded as superior to traditional and charismatic authority.

Modern management expert E. Jaques has supported the concept of hierarchy, noting
that, when properly structured, a management hierarchy can unlock energy and creativity,
streamline productivity, and enhance morale.
One of the key benefits of Weberian bureaucracy is its ability to bring objectivity to
recruitment by reducing nepotism and favoritism in decision-making. Although Weber never
claimed that his bureaucratic model was universally applicable, he referred to it as an "ideal
type." Despite this, bureaucracy remains the dominant structural form in various sectors,
including manufacturing, services, healthcare, education, the military, and even voluntary
organizations. Its enduring popularity lies in its efficiency in organizing large-scale activities.
However, for organizations to thrive in the 21st century, it is essential to align systems, practices,
and cultures to contemporary demands. Successful organizations require teamwork, vision,
strategy, and the delegation of power to appropriate levels, with leadership being a critical factor.

10.7 KEY WORDS

Departmentalization The process of grouping activities and employees into
specific departments based on common functions, skills, or
objectives to improve efficiency and coordination within an
organization.

Delegation The act of assigning responsibility and authority to

subordinates to carry out specific tasks, while maintaining
overall accountability for the outcomes.

Span of Control The number of subordinates a manager or supervisor can

effectively oversee and manage without compromising the
quality of supervision or communication.

Bureaucracy A formal organizational structure characterized by a

hierarchy of authority, a clear division of labor, strict rules
and procedures, and impersonal relationships to ensure
efficiency and consistency.

Staff Principle The concept that staff roles provide specialized support and
expertise to line managers, offering advice and assistance

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while not being directly involved in decision-making or

command functions.

10.8 MODEL QUESTIONS

a. Give a brief description of the Principles of Organisations.
b. Describe the Theory of Departmentalization briefly.
c. Write a short note on Single Executive.
d. Critically examine Weber’s bureaucratic model.
e. Explain Weber’s concept of rationalization.
10.9 REFERENCES
 Fayol, H. (1949). General and Industrial Management. Pitman Publishing.
 Wilson, W. (1887). The Study of Administration. Political Science Quarterly, 2(2), 197-222.
 Robbins, S. P., & Judge, T. A. (2019). Organizational Behavior (18th ed.). Pearson.
 Stillman, R. J. (2010). Public Administration: Concepts and Cases (9th ed.). Wadsworth.
 James, S. P. (2003). Theories of Public Administration. Routledge.

10.10 ADDITIONAL READINGS

 Svara, J. H. (2009). The Ethics Primer for Public Administrators in Government and
Nonprofit Organizations. Jones & Bartlett Publishers.
 Millett, J. D. (2002). Public Administration and the American Experience. Wadsworth
Publishing.
 Denhardt, R. B., &Denhardt, J. V. (2009). Public Administration: An Action Orientation (6th
ed.). Cengage Learning.

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Unit-11: Scientific Management Theory

Structure:
11.0 Learning Objectives
11.1 Introduction
11.2 Background
11.3 Life and Work of F.W Taylor
11.4 Soldering of work
11.5 Concept of Scientific Management
11.6 Impact of Scientific Management
11.7 The Critical Evaluation
11.8 Summary
11.9 Key Words
11.10 Model Qquestions
11.11 References
11.12 Additional Readings

11.0 LEARNING OBJECTIVES

By the end of this unit, you should be able to:

 Understand the key principles of Scientific Management.

 Learn about the life and contributions of F.W. Taylor.
 Explore the concept of scientific management in detail.
 Examine the impact of scientific management on organizations and employees.
 Critically evaluate the strengths and weaknesses of scientific management.
 Identify how scientific management is applied in modern-day settings.

11.1 INTRODUCTION
Frederick Winslow Taylor, a mechanical engineer, is widely regarded as one of the most
influential figures in the development of management thought. His contributions laid the
foundation for what is now known as Scientific Management, a theory that revolutionized how
work and labor were organized in industrial settings during the early 20th century. While Taylor
is often credited as the father of Scientific Management, his ideas were built upon the earlier

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work of scholars such as Charles Babbage, Henry Metcalf, and Henry R. Towne, who also
sought to improve the efficiency and effectiveness of industrial processes.

Scientific Management, as articulated by Taylor, aimed to optimize labor productivity

through a systematic and scientific approach to management. The theory proposed that tasks
should be studied and analyzed to find the most efficient way to perform them. Taylor
emphasized the importance of selecting and training workers scientifically, as well as ensuring
that work processes were standardized. His belief was that work should be broken down into
smaller, specialized tasks, with each worker performing a specific function to minimize wasted
time and effort. By studying and applying scientific principles to the workplace, Taylor believed
that both management and workers could benefit through increased efficiency and profitability.

The term "Scientific Management" was first coined by Louis Brandeis in 1910, but it was
Taylor who gave it a more systematic and comprehensive explanation. Taylor’s ideas were
captured in his famous works, such as *The Principles of Scientific Management* (1911), where
he outlined the key elements of his theory. These included the scientific study of tasks, the
selection and training of workers based on scientific principles, the division of labor, and the
close supervision of workers to ensure maximum efficiency. Taylor’s methods were grounded in
time and motion studies, where he analyzed tasks to determine the best way to perform them,
often eliminating unnecessary movements and steps.

Despite the widespread recognition of Taylor as the father of Scientific Management, it is

important to note that he was not the sole originator of the theory. Charles Babbage, an early
pioneer of industrial efficiency, developed ideas around the systematic recording and analysis of
work processes. Similarly, Henry Metcalf and Henry R. Towne contributed to the development
of scientific management by exploring the principles of standardization and the importance of
time studies. However, it was Taylor who formalized these ideas into a coherent theory that
could be applied across industries, making him the most prominent figure in the development of
Scientific Management.

Taylor's system, often referred to as "Taylorism," had a profound impact on industrial

management and set the stage for the development of modern management practices. His
emphasis on efficiency, standardization, and control of the workforce was influential in shaping
the way businesses operated, particularly in manufacturing sectors. Taylor’s approach sought to
increase productivity and reduce costs by scientifically analyzing every aspect of work, ensuring
that workers and managers operated at peak efficiency.

One of the key tenets of Taylor’s theory was the division of labor. He argued that work
should be divided into specialized tasks, with each worker performing a single, repetitive
function. This was intended to streamline production and allow workers to become more skilled

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at their specific task. By dividing work in this way, Taylor believed that productivity could be
maximized, and businesses could achieve higher levels of output at lower costs.

Another significant aspect of Taylorism was the focus on the relationship between
workers and management. Taylor advocated for a more collaborative approach, in which
management was responsible for planning and overseeing the work process, while workers were
expected to follow the prescribed methods. This created a clear division of responsibilities,
where managers were tasked with determining the most efficient way to perform tasks, and
workers were expected to execute these tasks according to the prescribed methods.

Despite its widespread influence, Taylor’s system was not without criticism. Critics
argued that Taylorism often treated workers as mere cogs in a machine, stripping them of their
autonomy and reducing their role to a series of repetitive tasks. The emphasis on efficiency and
control led to concerns about worker alienation and the dehumanization of labor. Additionally,
the rigid application of scientific management techniques often resulted in a lack of flexibility
and creativity in the workplace.

While Frederick Winslow Taylor is rightly regarded as the father of Scientific

Management, it is important to acknowledge that his contributions were built upon the earlier
work of others, such as Charles Babbage, Henry Metcalf, and Henry R. Towne. Taylor’s
development of Scientific Management provided a systematic and scientific approach to
management that transformed industrial practices. His ideas about efficiency, standardization,
and the division of labor became foundational principles in the field of management, influencing
countless industries and laying the groundwork for modern management theories.
11.2 BACKGROUND

In the latter half of the nineteenth century, as the industrial revolution reached maturity,
American business and industry underwent substantial expansion, giving rise to a new
managerial class and introducing new challenges in industrial planning and management.
Management practices evolved from a simple, day-to-day problem-solving approach to a more
comprehensive and systematic methodology. With rapid industrialization came recurring
managerial problems, especially concerning work organization and efficiency. Factory working
conditions were chaotic, and work methods, tools, and procedures were neither standardized nor
designed for optimal efficiency. Workers were largely left to decide on work methods, leading to
disorganized planning and significant inefficiencies. This situation highlighted the need for
increased productivity, which could only be achieved through a more rational and integrated
approach to management. The growing concern to enhance worker efficiency, maximize
production in the shortest time, and use minimal resources led to the development of "Scientific
Management." Initially focused on improving labor productivity, the concept of Scientific
Management has since expanded to encompass the broader aspects of the production process,

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aiming for more rational and efficient performance in industry as a whole.

11.3 LIFE AND WORK OF F.W TAYLOR

Frederick Winslow Taylor was born in 1856 in Boston, Massachusetts, USA. Although he
initially aspired to pursue a career in law, his weak vision, as advised by his physicians,
prevented him from continuing his studies in that field. Consequently, Taylor abandoned his law
career plans and began his professional journey as an apprentice at Enterprise Hydraulic Works
in Philadelphia, where he worked for four years from 1875 to 1878. Following his
apprenticeship, Taylor joined the Midvale Steel Works in Philadelphia as a machinist in 1878.
Over the next six years, he advanced rapidly and became the chief engineer in 1884 at the age of
28. While working at Midvale Steel Works, Taylor observed several inefficiencies in factory
operations that he later addressed in his writings. He noted issues such as the lack of clear
division between worker and management responsibilities, the absence of standardized work
practices, the failure to use incentives to boost performance, and the reliance on intuition and
experience for managerial decisions rather than systematic methods. Additionally, he identified
problems in the placement of workers, who were often assigned tasks for which they lacked the
necessary skills or aptitude. These observations formed the basis for his later work in developing
Scientific Management.
 Important Works of Taylor
In 1895, Taylor presented his paper "A Piece Rate System," where he outlined the
management system he had developed, emphasizing principles that should guide any wage
payment system, particularly those offering differential rewards. In 1903, he followed with his
second paper, "Shop Management," which focused more on his management philosophy rather
than on wage payment systems. Another significant work by Taylor was “The Art of Cutting
Metals”, published in 1906. His seminal work, “Principles of Scientific Management”, was
published in 1911. Taylor also contributed "Testimony before the Special House Committee" in
1912. These two important works were later combined into a single volume titled *Scientific
Management* in 1947.

11.4 SOLDERING OF WORK

Taylor believed that industrial management in his time lacked professionalism and
argued that the best outcomes could be achieved through collaboration between skilled staff,
qualified management, and cooperative workers. He observed that workers often operated below
their full potential, a behavior he referred to as "soldering" or "skiving." Taylor identified three
main reasons for this phenomenon: (1) workers deliberately exerted minimal effort because they
feared that higher productivity could lead to job cuts and potential layoffs, (2) non-incentive
wage systems discouraged high productivity, as workers were hesitant to work faster for fear that
it might raise the standard and ultimately reduce their wages, and (3) workers relied on
inefficient, unscientific methods instead of using scientifically determined, more effective

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approaches, wasting time and effort.

To address the issue of soldiering and improve efficiency, Taylor conducted experiments to
determine the optimal level of performance for various jobs. His approach is considered an early
form of benchmarking, as he sought to identify the best practices and the necessary steps to
achieve high performance. Taylor’s experiments involved using stopwatches to time a worker’s
sequence of motions and determine the most efficient way to perform a task.

Taylor’s efforts were driven by the desire to answer the question, “Why is there so much
antagonism between management and workers, and so much inefficiency in industry, leading to
low productivity?” He identified some key factors contributing to this issue:
1) The belief of the workers that any increase in output would inevitably result in
unemployment;
2) The improper remuneration systems of management did not motivate the worker to increase
his productivity;
3) The effort-wasting methods of work followed by the workers.
To overcome the above obstacles, Taylor conceived the idea of “Scientific Management”.
11.5 CONCEPT OF SCIENTIFIC MANAGEMENT

In an effort to improve industrial productivity, numerous experiments were conducted,

and various management thinkers made suggestions. The development of Scientific Management
emerged as one such significant outcome of these experiments. Economists like Henry R. Towne
and Henry Metcalfe recognized the growing issues in management and expressed their concerns.
Towne, in his 1886 paper titled “The Engineer as an Economist”, presented before the American
Society of Mechanical Engineers, addressed these concerns. This paper likely influenced
Frederick Taylor, who joined the society the same year and subsequently focused on the field of
Scientific Management. Interestingly, the term "Scientific Management" was first coined by
Louis Brandeis at a 1910 meeting of engineers, and later, Taylor expanded it into a
comprehensive theory.

Taylor conducted a series of experiments over more than two decades, exploring various
aspects of industrial operations, including machine tools, speed metals, and more. One of his key
discoveries was high-speed steel, which significantly enhanced industrial productivity. Other
experiments focused on the methods by which workers handled materials, machines, and tools—
an approach known as motion and time study. This led Taylor to develop a coordinated system
of shop management. His work evolved into a broader management philosophy, influencing the
development of management thought. Because of these pioneering contributions, Taylor is
widely recognized as the "Father of Scientific Management."

(i) Objectives of Scientific Management

There were five original objectives of Scientific Management. They were:

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a) Industrial processes can be broken down into measurable units for scientific analysis and
experimentation. The tasks performed by workers can be divided into basic motions, with the
time required for each motion being measured to determine the longest, shortest, and average
durations.

b) A standard time can be set for each operation, serving as the target for workers to meet. Each
unit of product can be produced at a predetermined level of efficiency, with an established
standard cost.

c) Workers should be taught the most efficient methods for achieving the set standards, and it is
the responsibility of foremen or supervisors to provide these instructions.

d) Workers should not be burdened with determining how a task should be performed, allowing
them to focus on improving their mental skills and abilities.

e) Workers should be motivated to embrace new methods and become proficient in executing
tasks to meet performance standards.(ii) Principles of Scientific Management
To solve the problems that he identified in industry and achieve the objectives of
Scientific Management, Taylor advocated the following principles of Scientific Management:
a) Development of a true science of work:
This principle emphasizes that every task assigned to an employee should be analyzed
and broken down into its individual components, with the time required for each part being
measured. The goal is to determine the most efficient way to perform the task and establish a
standard output, replacing traditional rule-of-thumb methods with scientific approaches.

b) Scientific selection, training, and development of workers:

For enhanced production efficiency, it is crucial to select workers carefully, ensuring that
their skills and experience align with the demands of the job. Workers should be chosen through
tests and interviews, and once selected; they must undergo training tailored to the specific tasks
they will perform. Ongoing development programs should also be implemented to improve their
performance.

c) Bringing together the science of work and scientifically selected and trained workers:
To ensure workers effectively perform their tasks and avoid reverting to previous
inefficient methods, they need inspiration and guidance. According to Taylor, this responsibility
falls entirely on management. He believed workers were generally willing to cooperate, but often
faced resistance from management itself. This process of uniting the science of work with
properly trained workers was key to achieving a "mental revolution."

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d) Division of responsibility between management and workers:

Managers should be responsible for planning the work, while workers should be
responsible for carrying out the planned tasks. Taylor advocated for a clear separation of
responsibilities to allow each individual to focus on their specific role, ensuring that both
management and workers could perform at their highest level of efficiency and be appropriately
compensated.
However, none of these principles could be isolated and called scientific management. It
is a combination of all elements described above. The philosophy of these principles may be
summarized as under:
 Science, not rule-of-thumb;
 Harmony, not individualism;
 Cooperation, not individualism;
 Maximum output, in the pace of restricted output; and
 The development of each man to his greatest efficiency and prosperity.
(ii) Principles of Operation
To successfully implement the philosophy of the above-stated principles in the actual
working of an organization, Taylor advocated the following techniques:
(1)Method study: Method study involves the determination of the basic steps in performing a
job.
(2) Motion study: After the appropriate methods to complete the tasks are laid down then the
best way to do the determined i.e., motion study. Motion study is a preferable work method with
consideration to raw materials, tools and equipment, and hand and body motion.
(3) Time Study: After completion of the methods study and the motion study, the standard time
for completion of the task is determined i.e., time study. Time study is fixing the appropriate
time to complete a task after the preferred way is determined.
(4) Standard: The logical step that follows after the motion study and time study is the
determination of a standard. Taylor defined “Standard” as the level at which a first-class worker
would perform under ideal conditions.
iii) Piece Rate System:
Taylor's piece rate system is considered a significant contribution to wage administration
principles. This system involves determining a pay package based on "piece rates," where a
worker is compensated according to the number of units they produce. Taylor introduced a
framework with three key elements: (a) work observation and analysis through time studies to
establish the standard or rate, (b) a differential rate system for piecework, and (c) focusing on
paying workers rather than positions. This pay structure, known as the "differential piece rate
plan," offered a lower piece rate up to the established standard, a substantial bonus once the
standard was met, and a higher rate for production beyond the standard.

iv) Functional Foremanship:

Taylor believed that tasks related to planning and management, which were traditionally

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carried out by workers, should instead be handled by specialists. He argued that the management
of work should be distinct from its execution. In a production setting, Taylor proposed a system
where eight functional foremen would oversee different aspects of the work process. These
foremen included the gang boss, speed boss, inspector, repair boss, order-of-work-and-route
clerk, instruction-card clerk, time-and-cost clerk, and shop disciplinarian. According to Taylor,
each worker would report to eight specialized supervisors, each responsible for a specific
function.
v) Mental revolution:
According to Taylor, the primary goal of management is to achieve the greatest possible
prosperity for employees. In his philosophy of scientific management, he believed that there was
no inherent conflict between the interests of employers, workers, and consumers. Taylor's focus
was on ensuring that the benefits of increased productivity were shared equally among all
stakeholders: higher wages for workers, greater profits for employers, and lower prices for
consumers. As Reinhardt Bendix stated, "By maximizing the productive efficiency of each
worker, scientific management would also maximize the earnings of both workers and
employers. Therefore, all conflicts between capital and labor would be resolved through
scientific principles."
(vi) Mechanisms of Management
It is important to note that Taylor distinguished between ‘principles’ of management and
‘mechanisms’ of management. Some of the mechanisms advocated by Taylor were as follows:
a) The use of the stop-watch was essential for the technique of time study.
b) Standardization of all tools and techniques used in trades.
c) Planning a large daily task should be undertaken to promote industrial efficiency.
Therefore, Taylor favoured the setting up of a separate planning cell or a department in every
industrial unit.
d) The use of time-saving devices, e.g., slide rules.
e) The use of an instruction card system to record what to do and how to do particular
tasks.
f) Adoption of the proper classification system of manufactured products as well as
implements used in the manufacturing process.
g) Use of the bonus system for the successful performance of the tasks.
h) Application of the “exception” principle under which Taylor called for setting up a
large daily task, with a reward for meeting it and a penalty for not achieving the targets.
i) Promotion of modern costing system.
11.6 IMPACT OF SCIENTIFIC MANAGEMENT
Scientific Management, pioneered by Frederick Taylor, introduced a profound shift in
industrial management practices. It fundamentally altered the way industries approached labor,
productivity, and organizational efficiency. The movement had a broad and lasting impact, with
improvements seen in several key areas.

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Firstly, efficiency in both labor and resource utilization was a major focus of Scientific
Management. By minimizing waste—whether human or material—this approach helped
industries streamline their operations. Taylor's methods emphasized optimizing work processes,
ensuring that workers' time was used effectively, and that materials were not wasted. This led to
the better allocation of resources, higher productivity, and more cost-effective operations.

Secondly, the improvement of working conditions and the enhancement of workers' lives
were central to Taylor’s philosophy. Workers were placed in a better position by receiving
higher wages, having their working hours reduced, and benefiting from safer and more
comfortable working environments. These changes not only improved workers' morale and
welfare but also helped to increase productivity, as workers were more motivated and satisfied
with their jobs.

On the management side, the influence of Scientific Management was equally significant.
The movement led to the development of more precise control systems and better planning
practices. Prior to Taylor's work, many managers had little understanding of how to optimize
their control over work processes or how to plan effectively. Taylor's system introduced the idea
of systematic planning and measurement, making it possible to set clear standards and track
progress against them.

Taylor also revolutionized the idea of organization and structure within the workplace.
He provided guidelines to management on how to establish an effective organizational structure
and improve workflows. For the first time, management was seen as a function that could be
studied and optimized, much like the work processes themselves.

Perhaps most notably, Taylor was one of the first thinkers to emphasize the use of
research and the development of standards in management. His emphasis on collecting data
through time studies and developing standards for every aspect of the job became a cornerstone
of modern management practices. This approach shifted management from being based on
intuition and guesswork to a more scientific, data-driven process.

In addition, Taylor's philosophy introduced the concept of control in management. He

recognized that, without effective control systems, even the best planning would not lead to
success. Taylor stressed the importance of monitoring work processes and making adjustments
as needed to maintain efficiency and productivity.

Finally, Taylor's work laid the groundwork for a crucial concept that remains central to
modern management: cooperation between labor and management. Taylor believed that workers
and management should work together towards common goals, rather than being in conflict. He
advocated for a partnership that would lead to shared benefits: higher wages for workers, greater

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profits for employers, and lower prices for consumers. This vision of mutual cooperation marked
a significant departure from earlier, adversarial relationships between workers and employers.

The principles of Scientific Management—research, standards, planning, control, and

cooperation—have become the foundation for many modern management practices. Taylor’s
focus on efficiency, productivity, and worker welfare transformed industries, making them more
organized and effective. His ideas not only reshaped the role of management but also improved
the lives of workers, ultimately creating a more balanced and systematic approach to industrial
operations.
• In the United States of America
In the early 20th century, scientific management had a widespread impact on
administrative thought and practice in the United States. It influenced not only industrial and
business sectors but also extended to government organizations. In 1910, the scientific
management movement gained further traction with the creation of the Commission on Economy
and Efficiency under President William Howard Taft. The Commission’s recommendations
helped to popularize the principles of scientific management even more. Later, President
Woodrow Wilson, who supported administrative efficiency through democratic ideals and civil
service reform, sought to balance efficiency with democratic values in governance. Taylor’s
belief in finding the "one best way" to carry out tasks productively was applied in both industrial
and governmental management. As a result, the principles of Taylorism, with its focus on
scientific efficiency, were integrated with democratic ideals, forming a foundational aspect of
American Public Administration
• In Russia
Scientific Management gained significant popularity not only in America but also in
Russian industries. Even before 1920, Russian Scientific Management was closely associated
with Taylor’s name. V.I. Lenin encouraged Russian industrial managers to adopt the principles
of Scientific Management to boost production. While the 1930s and 1940s saw a push to
promote more efficient production in the Soviet Union through the application of Scientific
Management, it was framed as a campaign for the benefit of Russian workers rather than as an
endorsement of Taylorism specifically.

11.7 THE CRITICAL EVALUATION

Scientific Management has been criticized on the following grounds:
a) Mechanistic Approach: Scientific Management was supremely concerned with organizational
efficiency interpreted only in mechanistic terms. The organization was viewed as a machine and
the worker as a cog in the machine to run it towards the achievement of organizational goals.
This mechanistic view of man is rather degrading and unacceptable to a modern man.
b) Atomistic Approach: Scientific Management views the worker as an “atom” i.e., the worker is
viewed as an independent entity unaffected by his fellow workmen. Hence it has also been called
machine model theory’.

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c) Oversimplifies worker motivation: Taylor’s theory is based on the premise that man is
motivated by economic rewards only. It also assumes that a worker will put in his best effort
only to earn more money. This is rather an oversimplified view of human motivation.
Administrative thinkers at a later date pointed but that man is multi-motivated i.e., he is
motivated by various factors.
d) Concerned only with a limited number of variables: Scientific Management is concerned with
only that range of human behaviour that relates to production. It completely neglects the
psychological and physiological aspects of organization theory.
e) Depersonalizes industrial atmosphere: Scientific Management is built around the concept of
fragmenting work and breaking it down into its smallest components so that ideally managers
could control workers and production more or less mechanically. Such fragmented jobs
dehumanized the organizational member reducing him to the role of an impersonal cog in the
machine of production. Working on dull, monotonous and mechanical jobs, the worker was
assumed to be without emotion and capable of being manipulated just like machines. The
worker, so far as the model was concerned, had no life outside his job or separate from his tasks.
f) Undermines the role of trade unions: The greatest resistance to Scientific Management came
from the labour leaders who found Taylorism, a threat to their role and the growth of the trade
union movement. It was Taylor’s conviction that effective cooperation between employer and
employees would flow from better management through the application of scientific principles.
Unions would then become unnecessary. Having realized the threat to their existence, the trade
union workers revolted against Taylorism as they felt that it destroys the principle of collective
bargaining.
11.8 SUMMARY
Taylor was a pioneer in the pursuit of improved workplace performance, being the first to
apply quantitative methods to the study of industrial management. His contributions laid the
foundation for modern scientific management techniques, including operations research, method
study, time study, systems analysis, and management by exception. These practices are part of
Taylor’s enduring legacy. Thanks to his groundbreaking work, management began to be
recognized as a legitimate academic discipline. Beyond the United States, Taylor’s influence
extended to countries such as France, Switzerland, and the USSR, where his ideas were widely
adopted.

11.9 KEY WORDS

Scientific Management It is a systematic approach to improving productivity and

efficiency in the workplace through time studies,
standardization, and worker specialization.
Productivity Productivity refers to the measure of output produced per
unit of input, aiming to maximize efficiency in work

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processes.
Worker Specialization Worker Specialization involves assigning specific tasks to
workers based on their skills and expertise to enhance
performance and efficiency.
Efficiency Efficiency is the ability to achieve maximum output with
minimal wasted effort, time, or resources.
Soldering It refers to the practice where workers deliberately reduce
their effort or output, often to avoid exceeding performance
standards or to minimize work demands.

11.10 MODEL QUESTIONS

1. Explain the life and works of Taylor?
2. Explain the Scientific Management Theory by Taylor?
3. Explain the impact of Scientific Management Theory?
4. Define Scientific Management. What are the key principles of Scientific Management
according to Taylor?
11.11 REFERENCES
 Taylor, F. W. (1911). The Principles of Scientific Management. Harper & Brothers.
 Wren, D. A., & Bedeian, A. G. (2009). The Evolution of Management Thought (7th ed.).
Wiley.
 Kanigel, R. (1997). The One Best Way: Frederick Winslow Taylor and the Enigma of
Efficiency. Viking.

11.12 ADDITIONAL READINGS

 Drucker, P. F. (2006). The Practice of Management. Harper Business.
 Gantt, H. L. (1919). Work, Wages, and Profits: Their Influence on the Cost of Living.
Engineering Magazine Company.
 Mayo, E. (1933). The Human Problems of an Industrial Civilization. Macmillan.

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Unit-12: Human Relations Theory

Structure:
12.0 Learning Objectives
12.1 Introduction
12.2 The First Enquiry as Early Experiments
12.3 Human Relations Theory
12.4 The Hawthorne Studies
12.5 Great Illumination
12.6 Human Attitudes and Sentiments
12.7 Social Organization
12.8 Summary
12.9 Key Words
12.10 Model Qquestions
12.11 References
12.12 Additional Readings

12.0 LEARNING OBJECTIVES

After reading this unit, you shall be able to:
 Understand Elton Mayo’s contributions to management and organizational theory.
 Examine the foundational principles of Human Relations Theory.
 Explore the Hawthorne Studies and their impact on management practices.
 Analyze the significance of social factors in the workplace.

12.1 INTRODUCTION

George Elton Mayo (1880-1949), born in Adelaide, Australia, is widely recognized for
his groundbreaking contributions to industrial sociology and psychology, especially through his
influential Hawthorne Studies. Mayo is considered one of the pioneers of the human relations
approach to organizations. He was an expert in fields like logic, philosophy, sociology,
psychology, management, and medicine, and played a significant role in reshaping how
organizations were viewed during the height of Taylorism. While Taylorism focused on
efficiency and the technical aspects of labor, Mayo emphasized the importance of human factors,
highlighting the need to consider workers' well-being alongside economic and technical
concerns.

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Mayo spent a significant portion of his career in the United States, from 1926 to 1947,
where he served as a Professor of Industrial Research at Harvard University's Graduate School of
Business Administration. It was here that he conducted the renowned Hawthorne Experiments
(1927-1932) at the Western Electric Company's Hawthorne Plant near Chicago. These
experiments, which primarily focused on industrial settings, also reflected the broader social,
political, and economic changes occurring globally. Mayo's humanistic ideas, such as the
concepts of "social man" and the role of informal groups within organizations, gained
momentum during and after the world wars. These studies allowed him to analyze how the
upheavals of war impacted human behavior, culture, and society.

Mayo's academic works remain influential. Notable publications include The Human
Problems of an Industrial Civilization (1933), The Social Problems of an Industrial Civilization
(1945), and The Political Problems of an Industrial Civilization (1947). Additionally,
Management and the Worker (1939), co-authored with Fritz Roethlisberger and William J.
Dickson, and The Elusive Phenomena (1977), by Roethlisberger, further document Mayo's ideas.
T. North Whitehead's The Industrial Worker: A Statistical Study of Human Relations in a Group
of Manual Workers (1938) also explores Mayo's Hawthorne Experiments in depth.

12.2 The First Inquiry as Early Experiments

Elton Mayo's research journey began in 1923 at a textile mill near Philadelphia, where he
initially focused on issues such as fatigue, accidents, production levels, rest periods, and working
conditions—concerns typical of the industrial crisis that America was facing during the 1920s
and 1930s. At that time, the textile mill was regarded as a model organization, offering various
facilities to workers and employing progressive, humane management. However, the mule-
spinning department faced a significant problem with high labor turnover. Despite the best
efforts of the management, the issue persisted, and the company eventually sought help from
Harvard University, where Mayo had recently joined the faculty. This became his first major
research project, known as The First Inquiry.

Mayo approached the issue from multiple angles and, with the support of the mill’s
management, began conducting experiments. His research led to changes such as introducing
controlled rest periods to reduce physical fatigue, which resulted in higher worker satisfaction, a
dramatic reduction in turnover, increased production, and improved morale. Additionally, Mayo
recommended a new bonus system, where workers were rewarded based on the extra production
they achieved. He introduced other innovative changes, such as giving workers complete control
over their rest periods, encouraging social interaction, and halting the spinning section for ten
minutes. These changes fostered better communication between supervisors and workers, leading
to a more harmonious work environment.

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Mayo's work at the textile mill marked a shift in the understanding of industrial relations.
It challenged the "rabble hypothesis," which viewed workers as individuals driven solely by self-
interest. Instead, Mayo’s findings emphasized the importance of informal groups, social
interactions, and non-economic incentives in shaping workers' behavior and morale.

12.3 Human Relations Theory

The Human Relations Theory of organization emerged in the 1930s as a response to the
classical approach to organizational analysis. Classical theorists such as Taylor, Fayol, Gulick,
Urwick, and Weber focused primarily on the formal structure of organizations, overlooking the
role of human elements. They treated organizations as mechanistic systems, downplaying the
sociological and psychological aspects of individual behavior within the organization. This gap
in the classical approach led to the development of the human relations theory, which is also
referred to as Humanistic Theory, Socio-Economic Theory, or Neo-Classical Theory.

Elton Mayo played a key role in highlighting the significance of human factors in
organizational management. He shifted the focus from a mechanistic view of workers to their
socio-psychological needs. Mayo and his research team found that informal or social work
groups had a positive impact on worker productivity, which, in turn, contributed to
organizational growth. Many workers at Western Electric found their jobs monotonous, but the
bonds they formed with colleagues—often based on shared frustrations with supervisors—gave
their work life more meaning and offered protection from management. This highlighted the
influence of group pressure over management demands as a key motivator for productivity.

Often called the "father of human relations theory," Elton Mayo focused on studying
workers' behavior and the complex factors that influence it, considering physiological, economic,
social, and psychological aspects. He referred to his approach as the “clinical method.” Mayo’s
first major research project was conducted in 1932 in a textile mill near Philadelphia, and he
named it “The First Enquiry.” His influential works include The Human Problems of an
Industrial Civilization (1933), The Social Problems of an Industrial Civilization (1945), and The
Political Problem of an Industrial Civilization (1947).

12.4 The Hawthorne Studies (1924-32)

The studies, which were originally intended to examine how lighting conditions affected
worker productivity, began in November 1924 at the Hawthorne Works of the Western Electric
Company, located near Cicero, Illinois. These studies were sponsored by the National Research
Council and evolved into a comprehensive research project that spanned several phases. The
primary focus shifted beyond just lighting to explore various factors affecting worker
performance and well-being. The project was divided into threephases, each examining different

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variables in the workplace environment, ultimately leading to important insights about the role of
social and psychological factors in improving productivity. They are such as:

1. The Great Illumination (1924-27)

2. Human Attitudes and Sentiments (1928-31)
3. Social Organization (1931-32)
12.5 The Great Illumination

Between 1924 and 1927, a series of experiments were conducted to explore the effect of lighting
on productivity and its maintenance. Two groups of six female workers each were selected and
placed in separate rooms where they performed the same task. Initially, both rooms were equally
illuminated, and the working conditions were stabilized. Gradual changes in light intensity were
then introduced in one room, while the other room's lighting remained constant. Surprisingly, the
output of both groups steadily increased, regardless of the variations in lighting. This led
researchers to conclude that lighting was not the primary factor influencing productivity.

It was at this juncture that Mayo became involved, as the initial hypothesis had failed. He
realized that the workers in the experimental room began to perceive themselves as part of a
social unit, responding to the heightened attention from the research team. This insight led Mayo
to redesign the experiments, focusing on what came to be known as the Relay Assembly Test
Room. From this, he proposed that job satisfaction was largely shaped by the informal social
dynamics within a workgroup. He emphasized the importance of supervisors taking a personal
interest in their subordinates' well-being and work-related concerns, creating an environment
where workers could openly express their needs and emotions. Mayo’s work highlighted how
morale, supervision, and productivity were intertwined, forming the foundation of the human
relations movement. This series of experiments often referred to as the "Great Illumination,"
illuminated new perspectives on industrial relations.

12.6 Human Attitudes and Sentiments

In 1928, another study was conducted by the Harvard research team at the same plant,
this time focusing on human attitudes and emotions through a Mass Interviewing Program. The
aim was to allow workers to freely express their opinions on management policies, working
conditions, and their treatment by supervisors. Despite the absence of any actual reforms or
material changes, the study revealed a significant shift in the workers' mental attitudes. This
transformation was largely due to the workers’ perception that they had been given an
opportunity to participate in management decisions and express their grievances, which allowed
them to "let off steam" and feel better.

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Data analysis showed no clear link between the complaints, whether material or
psychological, and the actual conditions. It was also found that personal problems often hindered
performance. The research team made several key conclusions:

1. Workers appreciated the opportunity to express their views on the company’s issues, as
they found satisfaction in having their opinions valued.
2. Supervisors, by being closely observed and granting their subordinates the freedom to
express themselves, became more alert and mindful of their actions and behavior.
3. The research team members themselves gained new skills in understanding and engaging
with people, realizing that both personal and social factors at the workplace were crucial
in fully grasping employees' problems, emotions, and attitudes.

12.7 Social Organization

The final phase of the comprehensive research program conducted at the Western Electric
Company took place between 1931 and 1932, led by Mayo's team. This phase focused on
observing workers' performance in their natural work environment without using formal
methods, instead relying on direct observation to analyze group behavior. This study, known as
The Bank Wiring Experiment, involved three groups of workers performing interrelated tasks
such as soldering, terminal installation, and wiring. The participants were paid under a group
incentive plan, with each worker receiving a share based on the total output of their group.

The research revealed that the workers established a clear output standard, which was
deliberately kept lower than the target set by management. Group members enforced this
standard informally, ensuring that no one exceeded or fell short of the agreed-upon output rate.
The integrity of the group’s social structure was upheld through peer pressure, and adherence to
a shared code of conduct was expected.

Mayo’s team discovered that the workers’ behavior was not influenced by the
management's objectives or the company's economic concerns. In fact, they resented any
attempts by supervisors or technologists to increase efficiency, viewing these efforts as
disruptions to their established group norms. The workers believed that experts focused solely on
efficiency, which they felt constrained their group activities, while supervisors were seen as
figures of authority to discipline them. This led to the conclusion that the “logic of efficiency”
was at odds with the “logic of sentiments,” which formed the foundation of the group’s social
system.

The study suggested that management should focus more on the human aspects of the
organization, such as motivation, communication, and the social dynamics within the workforce,
rather than solely emphasizing economic and technical factors. Mayo argued that authority
should be rooted in social skills that foster cooperation, rather than technical expertise.

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12.8 Summary

Elton Mayo made a pioneering effort to understand the challenges faced by industrial labor from
a perspective distinct from the traditional scientific management approach, thereby introducing a
new dimension to industrial relations and organizational effectiveness. His renowned Hawthorne
studies are considered a groundbreaking contribution to administrative thought. While Mayo
primarily focused on the industrial sector, offering insights and solutions to its problems, his
work is also highly applicable to the administrative systems of a state, especially within
bureaucratic structures. Because of his substantial contributions, Mayo is celebrated as one of the
key founders of the human relations movement in administrative theory.

Ultimately, the significance of Mayo’s Hawthorne studies lies in the discovery of

informal organizations, a concept later recognized as present in all types of organizations. The
studies also shed light on the crucial role of informal groups as social structures that influence
workers' behavior in the workplace, offering a profound analysis of how these social dynamics
impact organizational functioning.

12.9 Key Words

Human Relations Theory A management theory emphasizing the importance of social

relationships, employee satisfaction, and group dynamics in
improving productivity.
Hawthorne Effect A phenomenon where individuals alter their behavior due to
the awareness of being observed, not necessarily due to
changes in the physical environment.
Motivation The psychological factors that drive an individual to perform
tasks and meet goals.
Group Dynamics The social and behavioral forces that affect interactions and
relationships within groups.
Employee Satisfaction The degree to which employees feel content and fulfilled
with their work, which impacts their motivation and
performance.

12.10 Model Questions

1. Comment upon the significance of Hawthorne's Experiments in the growth of the theory of
organization.
2. Critically appreciate the status of George Elton Mayo as the Father of the Human Relations
Movement.
3. Define Human Relations Theory and explain its key principles.

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12.11 References

 Mayo, E. (1933). The human problems of an industrial civilization. Macmillan.

 Mayo, E. (1949). The social problems of an industrial civilization. Routledge.
 Roethlisberger, F. J., & Dickson, W. J. (1939). Management and the worker: An account of a
research program conducted by the Western Electric Company, Hawthorne Works, Chicago.
Harvard University Press.

12.12 Additional Readings

 The Human Side of Enterprise by Douglas McGregor-Discusses the role of human
motivation in management.
 Motivation and Personality by Abraham Maslow -Explores different theories of motivation
and needs.
 The Social Psychology of Organizations by Daniel Katz and Robert Kahn-Provides a
comprehensive look at the psychology of workplace behavior.

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Unit-13: Bureaucracy: Structure& Processes; Recruitment

Structure:
13.0 Learning Objectives
13.1 Introduction
13.2 Structure of Bureaucracy
13.3 Process of Bureaucracy
13.4 Recruitment Procedure of Bureaucracy
13.5 Role of Bureaucracy
13.6 Summary
13.7 Key Words
13.8 Model Qquestions
13.9 References
13.10 Additional Readings

13.0 Learning Objectives

After studying this Unit you will be able to explain the :
 Structure of Bureaucracy
 Process of Bureaucracy
 Recruitment Procedure of Bureaucracy
 Role of Bureaucracy

13.1 Introduction

The Need for Bureaucracy in Modern Society:

Bureaucracy, despite its often negative reputation for being slow, impersonal, and cumbersome,
serves several important functions in both public administration and large organizations. In
fact, it is a necessary system for organizing and managing complex tasks, particularly when
dealing with large populations, diverse functions, and intricate regulations. Here are the key
reasons why bureaucracy is needed in modern society:

Efficient Management of Large-Scale Operations:

One of the primary needs for bureaucracy is its efficiency in managing large, complex
organizations—especially in government and public administration.

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 Division of Labor: Bureaucracy allows for the specialization of roles, ensuring that each
employee focuses on specific tasks that match their skills. This division of labor leads to
greater expertise and productivity.
 Clear Organizational Structure: Bureaucracy provides a hierarchical structure where
roles and responsibilities are clearly defined, allowing for efficient delegation of
authority. This ensures that large organizations can run smoothly even as they grow in
size and complexity.
 Standardization: Bureaucratic systems rely on standardized procedures and rules, which
help organizations carry out tasks in a consistent and predictable manner. This reduces
confusion and ensures operations run without disruptions.

13.2 Structure of Bureaucracy

The structure of bureaucracy refers to the organizational framework that defines the roles,
responsibilities, hierarchies, and rules within a bureaucratic system, particularly within
government or large organizations. Bureaucracy is commonly associated with large
administrative institutions, both in the public and private sectors, that are designed to ensure
efficiency, consistency, and accountability.

The concept of bureaucracy as a formal organizational structure was popularized by Max

Weber, a German sociologist, who viewed it as an essential feature of modern society,
particularly in government administration. According to Weber, bureaucratic organizations are
structured in a way that emphasizes a set of rules, a clear division of labor, and hierarchical
authority.

Let’s dive into the key components of Bureaucratic structure:

1. Hierarchy and Authority

Bureaucracy is often characterized by a hierarchical structure. This means that each position
within the organization has a clear chain of command or line of authority. The hierarchy helps
maintain order, accountability, and decision-making efficiency.

 Top-Level Management: The highest level of authority within a bureaucracy, typically

responsible for setting policies, making strategic decisions, and overseeing the entire
organization. For example, this would be government ministers, CEOs, or directors in a
private company.
 Middle Management: This level includes individuals who manage and supervise lower-
level employees. They ensure that the policies and directions from the top are implemented
efficiently at the operational level.
 Lower-Level Employees: These are the employees who directly handle day-to-day
operations and tasks within the bureaucracy. They are typically responsible for executing
the decisions made by higher levels of management.

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The authority in a bureaucratic system is usually clearly defined and flows from the top down,
ensuring that there is a well-understood decision-making process.

2. Division of Labor and Specialization

One of the main features of a bureaucracy is the division of labor. In a bureaucratic system,
tasks and roles are divided into specialized functions, which are performed by individuals who
are trained to perform specific tasks.

 Specialization: Each employee is responsible for a specific function or task, which they
are trained in. This specialization leads to expertise, allowing the organization to run
efficiently.
 Task Efficiency: By dividing labor into specialized roles, bureaucratic organizations
ensure that tasks are performed in a systematic way, reducing errors and increasing
productivity.

3. Rules and Regulations

Bureaucratic organizations are governed by a set of rules and regulations that guide decision-
making, behavior, and organizational processes. These rules are designed to ensure fairness,
consistency, and predictability in the operations of the organization.

 Standardized Procedures: Rules and regulations are standardized across the

organization. Employees are expected to follow these rules in order to perform their
duties effectively and fairly.
 Impersonality: Bureaucratic organizations emphasize impersonal decision-making,
meaning that personal relationships or emotions should not influence how tasks are
carried out. Instead, actions are guided by established rules and regulations.

4. Formal Communication Channels

In a bureaucratic system, formal communication is strictly defined. There are well-established

channels through which information is passed through the hierarchy, ensuring that instructions,
policies, and decisions are communicated clearly and uniformly.

 Top-Down Communication: Information typically flows from upper levels of

management to lower levels. For example, policies and directives come from top
management to lower-level employees for implementation.
 Bottom-Up Communication: Feedback, reports, and recommendations move from
lower-level employees to higher management, typically through formal channels like
reports, meetings, or memos.
 Horizontal Communication: Information and communication also occur between
employees at the same level of hierarchy, ensuring collaboration and coordination
between different departments or sections.

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5. Impersonality and Objectivity

Bureaucracy emphasizes impersonal relationships and objectivity in decision-making,

meaning that decisions should be based on rules and regulations, rather than on personal
preferences, biases, or emotions.

 Fairness: Bureaucratic systems are designed to treat all individuals equally, regardless of
their personal characteristics, connections, or social status. This ensures that individuals
are promoted or rewarded based on merit, rather than favoritism or nepotism.
 Objectivity: Bureaucrats are expected to make decisions based on facts and policies,
rather than personal opinions or influences.

6. Merit-Based Employment

In a bureaucracy, employment and promotion are typically based on merit and competence,
rather than personal connections or favoritism. The idea is to hire and promote individuals who
have the required qualifications and skills to perform the job effectively.

 Recruitment: Jobs are filled based on qualifications, and candidates are selected through
a fair and objective hiring process, such as exams, interviews, or assessments.
 Promotions: Employees are promoted based on their performance and ability to handle
more complex tasks or roles. Seniority or tenure may also be considered, but the main
focus is on an individual’s competency.

7. Professionalization and Expertise

Bureaucracies place a strong emphasis on the professionalization of employees, meaning that

individuals within a bureaucracy are often highly trained and have specialized expertise in their
areas of work.

 Training: Bureaucratic organizations often invest in ongoing professional development

and training to ensure that employees stay up-to-date on regulations, best practices, and
technology.
 Expertise: Bureaucratic systems value expertise in specialized fields such as law,
finance, engineering, and administration, and this expertise plays a central role in
organizational decision-making.

8. Centralized vs. Decentralized Bureaucracy

Bureaucratic structures can be classified based on their level of centralization:

 Centralized Bureaucracy: In a centralized system, decision-making authority is

concentrated at the top levels of the hierarchy. This model is often used in governments
and large corporations, where uniform policies and procedures are needed.

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 Decentralized Bureaucracy: In a decentralized bureaucracy, authority is distributed

across multiple levels of the organization, and lower-level managers have more decision-
making power. This model can be seen in some large organizations that need flexibility
and autonomy at lower levels.

9. Strengths and Weaknesses of Bureaucratic Structure

Strengths:

 Efficiency: A clear structure and division of labor can increase efficiency and
productivity.
 Stability: Bureaucracy provides stability and continuity, especially in public
administration, by ensuring that decisions and operations are not overly influenced by
political changes or individual preferences.
 Accountability: With a well-defined chain of command and established rules,
accountability for actions and decisions is easier to trace.

Weaknesses:

 Rigidity: Bureaucratic systems can be inflexible, which may hinder innovation and
adaptability to change.
 Red Tape: Excessive rules and procedures can lead to bureaucratic red tape, causing
delays and inefficiencies.
 Impersonality: The emphasis on impersonal, rule-based decision-making may lead to a
lack of empathy and a failure to address individual needs or concerns.

10. Examples of Bureaucratic Organizations

 Government Agencies: Many government organizations, such as the Social Security

Administration, Department of Motor Vehicles (DMV), or police forces, function as
bureaucratic structures. They operate under strict rules and regulations to ensure that they
serve the public fairly and consistently.
 Large Corporations: Many large companies, especially in industries like banking,
insurance, and manufacturing, also operate with bureaucratic structures, organizing
employees based on roles and specializations to maximize efficiency.

Analysis :

The structure of bureaucracy is designed to ensure that large organizations, especially in the
public sector, operate efficiently, consistently, and fairly. By adhering to rules, clear hierarchies,
specialization, and accountability, bureaucracies strive to serve the public interest and provide
services in a structured manner.

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However, while bureaucracies can bring order and efficiency, their rigidity and tendency for red
tape can sometimes create obstacles to innovation and responsiveness.

13.3 PROCESS OF BUREAUCRACY

The process of bureaucracy refers to the systematic and organized methods by which decisions,
policies, and actions are carried out within a bureaucratic system. The process is designed to
ensure efficiency, consistency, fairness, and accountability in the administration of tasks,
especially in large organizations, government agencies, or public administration systems. This
process typically involves a series of formalized steps, often governed by rules, regulations, and
established procedures.

Key Components of the Bureaucratic Process

The bureaucratic process can be broken down into several stages or components, all of which
contribute to the smooth functioning of bureaucracies. Let’s go through these steps:

1. Policy Formulation and Decision-Making

Before any action is taken within a bureaucracy, policies need to be formulated. This is often the
responsibility of top-level management, such as government officials, executives, or
policymakers. They set the direction for the organization and define the broad goals and
strategies.

 Identifying Issues: Bureaucracies identify issues that require attention, whether they are
social problems, policy gaps, or operational challenges.
 Proposals and Recommendations: Various departments or units may submit proposals
or recommendations based on their expertise or the needs of the citizens or clients.
 Analysis and Debate: A thorough analysis is conducted to assess the potential impact,
costs, and benefits of proposed policies. This might involve consultations with experts,
stakeholders, and the public.
 Decision-Making: After weighing all relevant factors, a decision is made. This can
involve voting, executive orders, or administrative decisions by top officials.

2. Rulemaking and Standard Operating Procedures (SOPs)

Once a policy is decided upon, the next step is often the creation of rules and standard
operating procedures (SOPs) to implement it. These are the formal guidelines that specify how
policies are to be carried out within the bureaucracy.

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 Creating Guidelines: The relevant department or agency develops detailed procedures

for how the policy will be executed, often breaking it down into steps that can be
followed by employees.
 Ensuring Consistency: SOPs ensure that decisions are made consistently across the
organization, without relying on the discretion of individual employees.
 Legal Framework: In many cases, laws or regulations are created to support the
implementation of the policies. This could involve the creation of new regulatory
agencies or the modification of existing ones.

3. Implementation of Policies

This is where the bureaucracy takes action to put the policies into effect. Implementation is
typically carried out by the middle-level or lower-level bureaucrats, who are tasked with
executing specific duties based on the established rules and procedures.

 Task Assignment: Once the policies are in place, specific tasks or projects are assigned
to various employees or departments. Each employee's role is clearly defined.
 Resource Allocation: Necessary resources, such as funding, personnel, and equipment,
are allocated for the implementation of the policy.
 Coordination: Bureaucracies often require high levels of coordination between different
departments or agencies to ensure that the policy is implemented successfully and
without overlaps or conflicts.

4. Monitoring and Evaluation

After policies are implemented, it is essential to monitor and evaluate the effectiveness of the
actions taken. Bureaucratic systems often have internal monitoring mechanisms in place to
ensure accountability and proper execution of tasks.

 Collecting Data: Bureaucracies gather data on the progress of the policy and its
outcomes. This can include performance indicators, surveys, financial records, and
feedback from stakeholders.
 Evaluating Outcomes: The success of the policy is assessed based on whether it meets
its intended goals. This evaluation might involve comparing expected outcomes with
actual results.
 Reporting and Transparency: Often, the results of the evaluation are compiled into
reports that are made available to the public or relevant authorities. This ensures
transparency and accountability in the process.

5. Adjustment and Feedback

The bureaucratic process is dynamic, and adjustments are often necessary to ensure policies
remain effective in the face of changing circumstances or new information.

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 Feedback Loops: Bureaucracies establish feedback loops where citizens, stakeholders,

or employees can provide input on the policy's effectiveness. This feedback may come
through formal channels like public hearings or informal channels like surveys or
complaints.
 Revised Decisions: If the feedback or evaluation shows that the policy or its
implementation is not working as intended, adjustments are made. This might involve
revising procedures, changing resources, or even amending the policy itself.
 Iterative Process: The bureaucratic process is ongoing and can be repeated in cycles.
New policies may be created, existing ones may be revised, and the process begins again
with a fresh set of decisions and actions.

The Bureaucratic Decision-Making Process

A critical part of the bureaucratic process involves decision-making. Bureaucracies often rely on
a systematic approach to decision-making, ensuring that decisions are objective, informed, and
in line with established rules.

 Rational-legal Authority: Bureaucratic decisions are based on rational legal principles.

Decisions are not made arbitrarily but are based on evidence, rules, and data.
 Discretionary Authority: While the bureaucracy operates under formal rules, there is
some level of discretion allowed to bureaucrats to adapt their decisions to specific
circumstances within the boundaries of those rules.
 Consensus and Deliberation: Bureaucratic decision-making often involves deliberation
among different stakeholders within the organization. Decisions can be collective,
ensuring that they reflect a wide range of expertise and viewpoints.

Challenges in the Bureaucratic Process

While bureaucratic processes are designed to promote fairness and efficiency, they can also face
several challenges:

a) Red Tape:

 The existence of excessive rules and regulations can create unnecessary bureaucratic
delays. This often results in inefficiencies, frustration for citizens, and a lack of agility in
responding to new challenges.

b) Rigid Hierarchies:

 Strict adherence to hierarchical structures may stifle creativity or prevent quick decision-
making. Lower-level employees may feel that their ideas or concerns are not heard
because of the rigid decision-making process.

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c) Lack of Flexibility:

 Bureaucracies can sometimes be too inflexible to adapt quickly to changing

circumstances. Policies or processes that were effective in the past may no longer be
suitable in a rapidly evolving environment.

d) Accountability and Transparency Issues:

 While bureaucracies are supposed to ensure accountability, the sheer complexity of rules
and procedures may make it difficult for citizens to understand or track how decisions are
made. This can lead to a lack of transparency and public distrust.

Conclusion: The Bureaucratic Process as a Mechanism of Governance

The bureaucratic process is essential for managing complex organizations, especially in the
public sector. Its core purpose is to bring order, consistency, and accountability to the execution
of policies and administration of public services. The process, from policy formulation to
implementation and feedback loops, ensures that decisions are based on rational, legal
principles, providing a stable and predictable environment for both government officials and the
citizens they serve.

However, like any system, bureaucracy can be prone to inefficiencies and rigidity. Balancing
the need for structure with the need for flexibility remains an ongoing challenge for bureaucratic
organizations.

13.4 Recruitment Procedure of Bureaucracy

The recruitment procedure within a bureaucratic system refers to the formal and systematic
process through which employees are selected and hired for positions in government agencies,
public organizations, or other bureaucratic institutions. The aim of this process is to ensure that
individuals with the necessary skills, qualifications, and integrity are appointed to carry out the
duties of the bureaucracy. Bureaucracies, particularly in the public sector, typically follow a
structured, merit-based approach to recruitment, often governed by rules, laws, and regulations
designed to ensure fairness, transparency, and accountability.

Here’s a breakdown of the steps and stages involved in the recruitment process within
bureaucratic organizations:

1. Job Analysis and Planning

Before recruitment can begin, it’s important to define the roles and responsibilities of the
positions that need to be filled.

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 Job Description: A detailed job analysis is conducted to define the specific tasks,
responsibilities, and expectations for the role. This includes understanding the required
skills, qualifications, experience, and educational background necessary to perform the
job effectively.
 Job Specifications: The job specification outlines the qualifications, knowledge, skills,
and experience required for the position. It ensures that candidates meet a standard for
competency and are capable of fulfilling the duties of the role.
 Workforce Planning: Recruitment needs are assessed based on organizational goals,
vacancies, and workforce capacity. This planning may involve determining whether to
hire internally or externally, and what kind of candidates are needed for the future.

2. Advertisement and Public Notification

Once the job requirements are established, the vacancy is advertised publicly to ensure
transparency and equal opportunity for all interested candidates. This step allows for a fair
competition among applicants.

 Public Advertisements: Bureaucratic agencies often publish job openings through

various channels, such as:
 Government Websites: Official portals and job boards, often hosted by
government agencies or civil service commissions.
 Newspapers: National or local newspapers, including specific sections for
government jobs.
 Job Portals: Online job search platforms and professional networks, especially
for public sector roles.
 Public Announcements: Official bulletins, notices, or even public events may
also be used to announce job openings.
 Clear Instructions: The advertisement will clearly outline:
 The qualifications, skills, and experience required.
 The job duties and scope of the position.
 How and where to apply, along with application deadlines.
 Any specific documents or information needed for the application process (e.g.,
CV, cover letter, references).

3. Application Process

The next step is for interested candidates to submit their applications in response to the
advertisement. Bureaucracies typically have formalized application procedures to ensure
consistency and fairness.

 Application Forms: Most bureaucracies use standard application forms that candidates
must fill out. These forms may include:
o Personal details (e.g., name, contact information).
o Educational background and qualifications.
o Work experience and skills.

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o References and any other required documents.

 Application Deadline: The application process will be open for a specific period, after
which the deadline closes. Late applications are usually not considered.
 Document Review: Once the application period ends, the submitted documents are
reviewed for completeness and to check if candidates meet the minimum qualifications
and requirements outlined in the job description.

4. Screening and Shortlisting

After receiving applications, the next step is to screen candidates based on the criteria established
in the job description.

 Initial Screening: An initial review of the applications is conducted by the HR

department or recruitment committee. They evaluate whether the candidates meet the
minimum qualifications, including education, experience, and skills.
 Shortlisting: Based on the screening, a shortlist of qualified candidates is created.
These are the individuals who will be invited for the next steps, which may involve
further assessments, such as written exams, interviews, or practical tests.

5. Testing and Assessment

To ensure the candidates possess the required skills and knowledge for the role, bureaucratic
recruitment procedures often include a variety of tests and assessments.

 Written Examinations: In many bureaucratic systems, written exams are used to assess
a candidate’s knowledge of specific subject areas relevant to the job. For example,
candidates applying for civil service positions may take exams related to general
knowledge, law, administration, and the specific field of work.
 Skill-based Tests: For roles requiring particular technical or professional expertise,
candidates might be asked to complete practical tasks or skill assessments to demonstrate
their abilities. For example, a candidate for an administrative role might need to take a
typing test, while a candidate for a managerial position might be asked to demonstrate
leadership and problem-solving skills.
 Psychometric Tests: Some bureaucratic systems include psychometric testing to assess a
candidate’s cognitive abilities, personality, or behavioral traits. These tests help determine
if a candidate is suitable for a specific type of work and whether they can fit within the
bureaucratic culture.
 Physical Tests: For certain roles, such as law enforcement, firefighting, or military
positions, physical fitness tests may be required.

6. Interview and Evaluation

Candidates who perform well on tests and assessments are typically invited for a formal
interview. The interview process is crucial for evaluating a candidate's suitability for the role.

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 Structured Interviews: In bureaucracies, interviews are often structured, meaning that

all candidates are asked the same set of questions to ensure fairness and consistency. This
format helps ensure that decisions are made based on objective criteria.
 Interview Panels: Interviews are often conducted by a panel of senior officials, human
resources personnel, and sometimes subject matter experts. The panel evaluates the
candidate's qualifications, experience, interpersonal skills, and ability to perform in the
role.
 Evaluation Criteria: The interview panel assesses candidates based on:
 Knowledge of the role and relevant policies.
 Communication skills and ability to articulate thoughts clearly.
 Problem-solving and critical thinking abilities.
 Cultural fit and how well the candidate aligns with the organization’s values and
objectives.

7. Background Check and Verification

Once the final candidates have been selected, the bureaucratic system typically conducts
thorough background checks to verify the authenticity of the information provided.

 Verification of Documents: This includes confirming educational qualifications,

professional certifications, and previous employment history.
 Criminal Record Check: For certain government positions, particularly those related to
law enforcement or sensitive areas, a criminal background check may be required.
 Reference Checks: The hiring agency may contact the candidate’s listed references to
verify their character and work performance.

8. Job Offer and Appointment

After successfully completing all stages of the recruitment process, the selected candidate is
offered the position.

 Formal Offer: A formal job offer is extended to the candidate, including details such as
salary, benefits, start date, and other conditions of employment.
 Appointment: Upon accepting the offer, the candidate is officially appointed to the
position. In some cases, the appointment may require additional formal procedures, such
as an oath of office or swearing-in ceremony, particularly in the public sector.

9. Probation Period

In many bureaucratic systems, a probation period is established after appointment to assess the
new employee's performance in the role.

 Probation Evaluation: During this period, the employee's performance is evaluated

regularly. If the employee does not meet the performance standards, their appointment
may be terminated.
 Conversion to Permanent Status: If the employee successfully completes the probation
period, they are confirmed as a permanent member of the bureaucracy.

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10. Training and On boarding

Once hired, bureaucratic employees typically undergo a formal training and onboarding
process to prepare them for their roles.

 Orientation Programs: New employees are introduced to the organization's culture,

values, rules, and policies.
 Job-Specific Training: Depending on the role, employees may receive specific training
in areas like legal compliance, administrative procedures, technology systems, and
customer service.

The Importance of Merit-Based Recruitment

The recruitment process within bureaucracy is designed to ensure that the most qualified
candidates are selected based on merit and competence rather than personal connections,
nepotism, or favoritism. This merit-based system is intended to create a fair, transparent, and
efficient process that benefits the public and enhances the performance of government
institutions.

However, the process is often lengthy and can be complex, due to the need for thorough
evaluations, testing, and compliance with legal standards. Despite these challenges, a well-
structured recruitment procedure helps to maintain the integrity and professionalism of the
bureaucracy.

13.5 ROLE OF BUREAUCRACY

The role of bureaucracy is fundamental in ensuring the efficient and organized functioning of
government institutions, public administration, and large organizations. Bureaucracy, as a system
of administration, is primarily designed to implement policies, maintain order, and carry out
tasks in a structured manner. Its core characteristics—such as hierarchical organization,
specialization, rule-based procedures, and merit-based recruitment—allow it to provide stability
and consistency in both public and private sectors.

Let’s break down the role of bureaucracy in detail across different contexts:

1. Policy Implementation

One of the primary functions of bureaucracy is to implement public policies. While elected
representatives or policymakers may create laws and policies, it is the bureaucratic system that
puts them into action. Bureaucrats are responsible for translating the political will of elected
officials into concrete actions.

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 Execution of Laws: Bureaucratic agencies are tasked with ensuring that laws passed by
the legislature are followed. For instance, the Environmental Protection Agency (EPA)
in the U.S. enforces environmental laws and regulations.
 Policy Execution: Bureaucracies manage the day-to-day activities of government
programs, such as social welfare programs, healthcare initiatives, education systems, and
infrastructure projects.
 Consistency and Stability: Bureaucracies help ensure that policies are carried out
consistently over time, even when governments change or there are fluctuations in
leadership.

2. Administrative Efficiency

Bureaucracies are designed to streamline and systematize operations within government

institutions, enabling efficient management and delivery of services.

 Task Specialization: Bureaucracies divide labor into specialized functions, allowing

individuals to focus on specific tasks. This leads to greater expertise, more effective
decision-making and smoother operations.
 Standard Operating Procedures (SOPs): By adhering to clear rules, regulations, and
procedures, bureaucracies reduce the chances of errors or inconsistencies in daily
operations.
 Centralization of Resources: Bureaucratic organizations manage the allocation and
distribution of resources—such as personnel, budget, and infrastructure—to maximize
efficiency in service delivery.

3. Accountability and Transparency

Bureaucracy helps ensure accountability and transparency in governance by establishing clear

procedures, chains of command, and mechanisms for reporting.

 Checks and Balances: Bureaucracies operate under a set of rules and guidelines that
promote transparency and fairness. Decisions and actions are generally made according
to established procedures, reducing the potential for arbitrary decisions or corruption.
 Public Oversight: Bureaucratic organizations are often subject to public scrutiny and
oversight. Government agencies may be required to report their activities to elected
officials, regulatory bodies, and the public.
 Legal Framework: Bureaucracies help ensure that actions taken by government officials
and agencies comply with laws and regulations, promoting legal and ethical standards.

4. Impersonality and Objectivity

One of the defining characteristics of bureaucracy is its impersonal nature. Bureaucrats are
expected to make decisions based on established rules rather than personal relationships, biases,
or emotions. This objectivity helps ensure that decisions are fair and consistent.

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 Equal Treatment: By emphasizing impersonal decision-making, bureaucracies are

intended to treat all individuals equally, regardless of their personal background, social
status, or connections.
 Merit-Based Decision Making: Bureaucracies prioritize decisions based on merit and
competence rather than favoritism or nepotism. This is reflected in recruitment,
promotions, and other personnel decisions.

5. Public Service Delivery

Bureaucracies play a crucial role in delivering services to the public. In fact, much of the day-
to-day interaction between citizens and the government occurs through bureaucratic agencies.

 Government Services: Bureaucratic organizations handle the provision of essential

services such as healthcare, education, transportation, and social security. For example, in
many countries, public hospitals, schools, and public works departments are run by
bureaucratic institutions.
 Regulatory Functions: Bureaucracies also monitor and regulate various sectors of the
economy to ensure safety, quality, and compliance. Agencies like the Food and Drug
Administration (FDA) or the Securities and Exchange Commission (SEC) in the U.S.
ensure that businesses comply with laws related to health, safety, and financial practices.

6. Maintaining Order and Stability

Bureaucracy is vital in maintaining social order and institutional stability, particularly within
large and complex organizations or societies.

 Consistency in Governance: Bureaucratic systems provide a framework for governance

that remains consistent even when elected leaders change. This helps maintain
institutional continuity and prevents disruptions to public services or functions.
 Crisis Management: Bureaucratic organizations are often key to managing emergencies
or crises. For example, in times of natural disasters, health emergencies (such as
pandemics), or civil unrest, bureaucracies can coordinate the provision of resources,
implement recovery efforts, and manage logistics.

7. Facilitating Economic Development

Bureaucracies often play an integral role in promoting economic development and growth by
managing and implementing economic policies, projects, and regulations.

 Infrastructure Development: Bureaucracies manage the construction and maintenance

of public infrastructure, such as roads, bridges, schools, and hospitals, which are essential
for the functioning of a modern economy.
 Economic Planning: In some countries, bureaucratic agencies may be involved in
economic planning or industrial policy. For instance, national planning bodies may help
set goals for economic development, regulate industries, or oversee public-private
partnerships.

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 Trade and Investment: Bureaucratic agencies often regulate trade, foreign investment,
and commerce, ensuring that laws and treaties are followed, and that businesses operate
within the legal frameworks.

8. Regulatory Oversight

Bureaucracies are key actors in regulation. Regulatory bodies ensure that individuals and
businesses comply with the rules and laws established by the government.

 Regulating Industries: Bureaucracies set standards for industries to ensure public safety
and fair practices. For example, the Environmental Protection Agency (EPA) in the
U.S. regulates pollutants, while the Federal Communications Commission (FCC)
oversees communications infrastructure.
 Monitoring Compliance: Bureaucratic agencies frequently monitor businesses,
industries, and individuals to ensure that laws and regulations are being adhered to.
Agencies like the Occupational Safety and Health Administration (OSHA) monitor
workplace safety standards.

9. Legitimacy and Authority

The bureaucracy plays a crucial role in reinforcing the legitimacy of government institutions and
their authority.

 Enforcement of Laws: Bureaucratic institutions are authorized to carry out the

enforcement of laws and policies. Through their actions, they provide legitimacy to the
actions of the government and its institutions.
 Public Trust: When bureaucratic systems operate efficiently and fairly, they enhance
public trust in government institutions and the political system. Conversely, if
bureaucracies are inefficient, corrupt, or unaccountable, they undermine the legitimacy of
the state.

10. Support for Democratic Governance

While bureaucracy may be seen as separate from the political process, it supports democratic
governance by providing expertise and stability in executing the will of elected officials.

 Nonpartisan Functioning: Bureaucrats are supposed to remain politically neutral and

serve under the policies of elected leaders. This ensures that government policies are
carried out regardless of political affiliations or changes in leadership.
 Expert Advice and Policy Implementation: Bureaucratic experts help inform the
policymaking process by providing technical advice, research, and data analysis to
elected officials.

Challenges Faced by Bureaucracy

While bureaucracy plays a vital role in governance, it is not without its challenges:
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 Red Tape and Bureaucratic Delay: One of the most common criticisms of bureaucracy
is the presence of excessive rules and regulations, often referred to as red tape, which
can lead to inefficiencies and delays in decision-making and service delivery.
 Inflexibility: Bureaucracies can be overly rigid, adhering strictly to rules and procedures,
making it difficult to adapt quickly to new or urgent circumstances.
 Lack of Innovation: The highly structured nature of bureaucratic organizations may
stifle creativity and innovation, as employees may be bound by standard procedures and
protocols.
 Accountability Issues: In large bureaucratic systems, accountability can be diluted
across multiple levels, making it difficult to identify responsibility when things go wrong.

Analysis:
The role of bureaucracy is crucial for the efficient, transparent, and accountable functioning of
government and large organizations. It is responsible for policy implementation, service delivery,
maintaining order, and enforcing laws and regulations. Bureaucracies provide a stable framework
that ensures continuity and fairness in public administration and governance.

However, bureaucracy is not without its drawbacks. It can sometimes be slow, inefficient, and
resistant to change. Despite these challenges, it remains an essential element in modern
governance and organizational management.

13.6 Summary

Importance of Recruitment in Bureaucracy and Organizations

Recruitment is a fundamental process in any organization, particularly in bureaucratic systems,

where efficiency, accountability, and fairness are paramount. The recruitment process helps
ensure that the right people are selected to serve in various roles, thereby strengthening the
organization and improving its performance.

Below are key reasons highlighting the importance of recruitment?

1. Ensures Organizational Effectiveness

The primary goal of recruitment is to find qualified candidates who can contribute to the
organization’s success. In bureaucratic systems, where roles are often highly structured, the
selection of skilled individuals is crucial for ensuring that government institutions function
efficiently.

 Proper Skill Matching: Recruitment helps identify individuals with the necessary skills,
qualifications, and expertise to fill specific roles within the bureaucracy.

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 Increased Productivity: Well-selected recruits can enhance the performance of an

organization, as they bring fresh ideas, experience, and the capacity to handle
responsibilities efficiently.
 Consistency in Service Delivery: Properly recruited personnel can uphold the principles
of impartiality, neutrality, and consistency in carrying out public policies and government
functions.

2. Promotes Meritocracy and Fairness

Recruitment ensures that individuals are hired based on merit and qualification, which is vital
in a bureaucracy. Bureaucratic recruitment is usually grounded in objective criteria, ensuring
that personal connections or biases do not play a role in hiring decisions.

 Equal Opportunities: Transparent and competitive recruitment processes allow all

individuals, regardless of their social background or personal relationships, an equal
opportunity to be hired based on their abilities.
 Reduces Favoritism: By adhering to rules and regulations during recruitment,
organizations can reduce the risk of nepotism or political patronage that might
otherwise undermine public trust and organizational integrity.
 Builds Trust in Institutions: When recruitment is perceived as fair and based on merit, it
can build trust in public institutions and reduce the perception of corruption or unfair
practices.

3. Maintains High Standards of Public Service

In bureaucracies, where the functioning of government agencies has a direct impact on citizens,
recruiting the right individuals is essential for maintaining high standards of service delivery.

 Competence and Expertise: Well-conducted recruitment ensures that the selected

candidates possess the right skills, knowledge, and competencies to perform their job
duties effectively. This ensures that public services, such as healthcare, education, law
enforcement, and infrastructure management, meet the needs of the population.
 Employee Performance: A successful recruitment process helps identify individuals
who are likely to perform well in their roles. This contributes to better overall
performance in delivering public services and achieving organizational goals.

4. Helps Build Organizational Culture

The recruitment process is also an opportunity to shape the culture and values of the
organization. Recruiting individuals who align with the organization’s mission and values can
create a positive work environment and reinforce the desired organizational culture.

 Cultural Fit: Recruiting candidates who share the organization’s core values, ethics, and
vision helps maintain a cohesive and harmonious work environment.

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 Promotes Motivation and Morale: When employees are recruited based on their
potential to contribute positively to the culture, it can increase their engagement, job
satisfaction, and overall morale.
 Long-Term Success: A focus on recruiting individuals who align with the organization’s
long-term goals and culture can lead to sustainable growth, stability, and success.

5. Enhances Accountability and Integrity

The recruitment process is instrumental in ensuring that employees are selected not only for their
skills but also for their integrity and commitment to accountability.

 Integrity in Public Service: In bureaucratic systems, especially in government, it’s

essential that recruits are committed to upholding public values such as honesty,
transparency, and ethical behavior. Rigorous recruitment processes, including
background checks and interviews, help ensure that individuals meet these standards.
 Reduced Corruption Risks: A well-designed recruitment process helps reduce the risk
of hiring individuals with conflicts of interest or a tendency to engage in corrupt
practices. Transparency in recruitment can act as a safeguard against unethical behavior.
 Clear Expectations: Through detailed job descriptions and recruitment criteria,
expectations for performance and behavior are set clearly from the outset, ensuring
recruits understand their responsibilities and the standards expected of them.

6. Supports Diversity and Inclusion

A good recruitment process ensures that diverse candidates are considered for each role. In
public and governmental bureaucracies, recruiting people from various backgrounds,
experiences, and perspectives is essential for representing the population served.

 Promotes Diversity: A well-structured recruitment system can help ensure that

underrepresented groups have an opportunity to apply for positions in bureaucratic
organizations.
 Inclusive Work Environment: By prioritizing diversity and inclusion in recruitment, the
organization can benefit from a wider range of perspectives, fostering innovation and
improved problem-solving.
 Reflects the Public: Especially in public service, it is important that the bureaucracy
represents the demographic and cultural makeup of the population it serves. Recruitment
processes focused on diversity ensure that people from different ethnicities, genders, and
social backgrounds are given a fair chance to contribute to public administration.

7. Reduces Turnover and Increases Retention

Recruitment plays a key role in improving employee retention and satisfaction.

 Better Fit = Lower Turnover: When recruitment processes match candidates to the right
roles based on their qualifications and preferences, it leads to better job satisfaction.
Employees who are well-matched to their roles are less likely to leave.

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 Cost Savings: High turnover rates can be costly for organizations, both in terms of time
and resources spent on recruitment and training. By improving recruitment processes, an
organization can reduce turnover and the associated costs.
 Employee Development: Recruitment processes that prioritize growth potential allow
organizations to select candidates who will develop within their roles and contribute to
the long-term success of the organization.

8. Facilitates Succession Planning

Effective recruitment is vital for long-term organizational success, particularly when it comes to
succession planning. By selecting individuals with potential for growth, recruitment can prepare
the organization for future leadership needs.

 Identifying Future Leaders: Bureaucracies and large organizations must plan for the
future by recruiting individuals who have leadership potential or who can be developed
into leadership roles.
 Internal Growth: Recruitment practices that emphasize career progression and skill
development create opportunities for internal promotion, which can boost morale and
reduce the need for external hiring at senior levels.
 Long-Term Stability: When recruitment is done with succession planning in mind,
organizations are better positioned to handle changes in leadership and maintain stability
over time.

9. Aligns with Strategic Goals

Recruitment is not just about filling vacancies; it’s about aligning new hires with the strategic
goals of the organization. Bureaucratic institutions, in particular, must ensure that their
employees are contributing to the long-term objectives of governance and public service.

 Strategic Fit: Recruitment processes help ensure that the individuals selected are aligned
with the organization’s mission, vision, and objectives. For example, government
agencies focused on economic development need to recruit professionals with expertise
in finance, economics, and public policy.
 Organizational Growth: By hiring individuals who contribute to the growth and
development of the organization, recruitment helps ensure that the organization evolves
with changing times, policies, and public needs.

10. Mitigates Risk

Recruitment helps mitigate risks associated with poor performance, inefficiency, and unethical
behavior. By selecting individuals based on strict criteria, the risk of hiring employees who
cannot perform or who may harm the organization’s reputation is minimized.

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 Risk Management: Recruitment processes that include background checks, skills

assessments, and reference checks help reduce the risk of hiring individuals with a history
of poor performance or unethical behavior.
 Crisis Management: In times of crisis or rapid change, having well-recruited and trained
staff allows organizations to navigate challenges more effectively. A well-prepared team
can respond to unforeseen issues swiftly and competently.

13.7 Key Words

Bureaucracy Bureaucracy is a system of administration characterized by

a hierarchical structure, standardized rules and procedures,
specialized roles, and a focus on efficiency and impartiality.
The term was first used by the French economist Max
Weber to describe a structured and rational way of
organizing large-scale organizations, particularly
governments.

In the modern context, bureaucracy is mostly associated with

government organizations, but it is also a key feature in
corporate and non-profit sectors, where the complexity of
operations requires formalized structures and procedures.

13.8 Model Questions

1. Examine the Structure of Bureaucracy
2. Discuss the process of bureaucracy
3. Analyse the Recruitment Procedure of Bureaucracy
4. Assess the role of bureaucracy

13.9 References
1. Basu, Rumki(2004). Public Administration-concepts and theories . New Delhi: Sterling
Publishers Pvt. Ltd.
2. Naidu, S.P. (2005), Public Administration-Concepts and Theories, New Delhi: New Age
International Pvt. Ltd.

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Unit-14: TRAINING, ETHICS IN ADMINISTRATION

Structure:
14.0 Learning Objectives
14.1 Introduction
14.2 Importance of training and development
14.3 Need for training and development
14.4 Employee capacity building strategy
14.5 Training in Public Administration
14..6 Ethics in Administration
14.7 Summary
14.8 Key Words
14.9 Model Qquestions
14.10 References
14.11 Additional Readings

14.0 LEARNING OBJECTIVES

After studying this unit, you should be able to know:
 Definition meaning, importance of Training and Development, need for training and
Development
 Meaning of employee capacity Building strategies, need for external stimulus, the
concept of management information system (MIS), steps in capacity building, and its
objectives and strategies.
 Examine the importance of training and development
 Analyse the need for training and development
 Discuss the employee capacity building strategy
 Evaluate the Prospect of Training in Public Administration
 Assess the Impact of Ethics in Administration

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14.1 INTRODUCTION
Administrative activities are no longer simple. It is becoming more complex and specialised that
knowledge and commonsense is not adequate to carry out the function in the field. In addition to
administrative activities the nature of it is dynamic. Therefore, the necessity of in service and
post entry training cannot be overestimated. Due importance has not been given to training.
Human resource and manpower are considered as the total knowledge skills, creativity, and
talent aptitude of work force of an organisation. In which the value attitude and benefit of
individual involved. The performance of an organisation directly proportional to the quality,
quantity of its human resources.
To maintain the quality of human resource, i.e to perform its activities well every organisation
need to have well trained and experienced people. As in the employment in present society is
becoming more complicated the importance of training and development also increase. In this
unit we shall be dealing with training and development, which are to increase skills and
knowledge of human resource in an organisation. In fact, training and development will cover a
large number of areas in term of definition, need for training and development and functions of
such training and development. It also covers with type of training and capacity building
strategies and techniques of training.
DEFINITION
According to William G.Torpey defines, training as “ The process of developing skills, habits,
knowledge and attitude in employees for the purpose of increasing the effectiveness of
employees in present government position as well as preparing employees for future government
position.”
The dictionary meaning is practical education in any profession, art or handicraft. In public
administration it means a “conscious effort made to improve or increase an employee’s skill,
power or intelligence and to development attitude and schemes of value in a desired direction.”

14 2 IMPORTANCE OF TRAINING AND DEVELOPMENT

The importance of training and development can be described on the following ground.
(i) It maximise the human resource utilisation:
The organisation gaol can be achieved by maximising the utilisation of human resource and it is
only possible. The organisational goal indicates the goal of the employee. Personal growth can

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be attained training provides to increase the job knowledge as well as expand the horizon of
intellect and personality.
(ii) Productivity: The long term goal of an organisation can be achieved by the employee through
training and development.
(iii) Teams spirit: Training and development inculcates the of team work and effort with mutual
trust and co-operation. A zeal for team work is being created among themselves.
(iv) Organic culture: organisation health culture can be created in a developed form effectively.
A learning atmosphere can also be generated among the employee.
(v) Organisation climate: It helps to making a positive perception or idea of feeling regarding the
organisation. This feeling of unity can be attained by the leader, sub-ordinates. No organisation
can be saved without team spirit of the employees.
(vi) Quality: It helps in improving the quality of work and force of the employee.
(vii) Healthy work environment: The training and development creates a health atmosphere. It
helps in making good employee and relationship by result of which individual goal will be
aligned with institutional goal.
(viii) Health and safety, morals, image, profitability: It helps in improving health and safety of
the organisation, improves the morale of the employee a better image will be created. It also
improves the profit and positive attitude.
The training a development helps in organisational development, resolving the problem more
efficiently and carrying out the policies of the organisation.

14.3 NEED FOR TRAINING AND DEVELOPMENT

The aforesaid points which have discussed in the chapter “importance of training and
development are generally the needed for training and development in addition to this , it aids in
organisational development, making leadership. It demonstrates a commitment.
Training, development and acquisition of knowledge:
Learning provides understanding of changes which is required by training and development. As a
generator of new knowledge employee training and development is placed within a broader
strategic extent of human resources management. Global organisational management as a
planned staff education and development, both individual and group, with the goal to benefit
both organisation and employee. The institution increase competitive advantage, the organisation

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needs to be able to create new knowledge. The procedure of strategy encourages the employee
training and development needs to encourage creativity, incentive and modify the entire
organisation knowledge that provides the organisation uniqueness and differentiates it from
others. Feeling the tremendous impact of education, the new organisations are spending huge
amount of resources for the activity.
It is experienced that most of the organisations that desire to keep pace with changes need to
provide their employee with 2% of total annual fund of working hours for training and education.
According to Denis Diderot, a French philosopher, of the age of enlightment wrote the following
“education should not be finished when an individual leaves schools, it should encompass all the
ages of life-to provide people in every movement their life with a possibility to maintain their
knowledge or to obtain new knowledge.
It can be stated that the important knowledge is the knowledge with strategic importance to the
company, knowledge that helps to increase the value of the comp-any. Obtaining knowledge,
learning education could have real effect on the needs of a particular organisation; its goal is the
goal of the employee.

 TRAINING AND DEVELOPMENT PROMOTES ENTREPRENEURSHIP:

The training and development implies the possibility to promote
entrepreneurship, introduce employee to change, encourage changing their
attitude and employees to important business decision and involve in the
procession of decision making. The knowledge-based organisations must
pressure there competitive advantage by retaining skilled work force, workers of
knowledge strengthening their motivation and developing the rewards of
compensation system according to performance.
 TRAINING DEVELOPMENT AND ADVANCED TECHNOLOGY:
In the present modern organisation advanced technology is needed and also
adequate amount of training is required to meet the various problem and
challengers, to be more familiar with such situation, these types of advanced
technology employees need to be trained.
(i) To provide refresher training for old employees the refresher training is
needed because it is consisted of the issue of current situation the old employees

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must be involved in need technology to help the organisation

(ii) For the effective work of the employee:
The skill of the employee and requirement of the organisation must not be
mismatched. The training will removes all barrier of gap between skill had
requirement.
(iii) Viability and transformation process: the external pressure and external
environment influence the capability of the organisation the employees of the
organisation must be well trained in every changing situation.
(iv) To increase productivity and quality: The quality and productivity brings
name fame of the organisation. For better productivity and quality, there is a
need for training of modern technology.

14 .4 EMPLOYEE CAPACITY BUILDING STRATEGY

A new trend merged in governance such as sustainable development eco-
friendly technologies, information technologies which should be in corporates
in the organisational functioning. Capacity building initiates are needed to
institute skill and capabilities such as leadership, management, finance and fund
raising to make the organisation more effective.
Capacity building has two ingredients, organisational and human. Organisation
capacity building ensures involving technical up dating, of the organisation
through reviews and development of human capital through education and
training.
On the other hand the human capacity building is a process of helping
individual on group to identify the key areas of development of capacity. For
this sake knowledge and experience are needed to solve the various problems of
the organisation.
The capacity building involves in both available knowledge base both in
technical and human relative field. By the research and development initiatives
are to be taken for better utilisation of resources with continuous revied.
Human strategies for human right (HSHR) contains capacity building services
for highlighting and cantering on development of effective efficient and

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sustainable physical working conditions for promotion and protection of human

rights. It is based on two areas of development. The employees of the institution
and the organisations. The main purpose is to provide training and guidance,
that accountability and transparency of internal working and the process of the
environment and interval equilibrium of the organisation.
The human strategies of human rights (HSHR) work closely individual
responsibility fund raising, public relations and accounting and human
resources.
The capacity building is developed after (HSHR) consulted completes the
assessment of the organisations working environment. It is generally an
educative exercise with technical overtones it suggests for education and
training which improves the human resource practise in the organisations.
NEED FOR EXTERNAL STIMULUS
The initiative on human APEC was taken by Beijing on 15th may 2001 on
capacity building and laid stress on human capacity building to ensure that all
people benefit from goal set out through collective effort through partnership.
And to develop the necessary policies and programme to respond the
challenges.
The roles of stake holder are to stimulate and corroborating proposed change.
Special challenges are there which covers regarding the technical change work
process, decision making process, strategy formulation and implementation
employ practise education, training and market behaviours. The significance lies
in stimulation the positive changes. The publicness public administration needs
articulation with respect to passive segment of the society and incorporation in
the same in policy cruft. In a civil society public interest is understood as
substantive public interest and procedure public interest. The substantive public
interest is created by the process of consultation of policy making the policy
regarding information; issue of interest on socio-economic and polity shall be
well shared with the stake-holders.
The civil service organisation must be oriented with have enough financial
resources. Venkataraman are and Shzuie Tomoda (2005) in his work made

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suggestion on the concept of social dialogue in public service reforms to make

public service more proactive. For the decent standing of work the ILO hag
suggested for the concept of social dialogue which provides opportunity for
bath men and women dignity. This is being worked out by facer strategic
objectives. (i) Interaction labour standard and fundamental principles and right
to work (ii) decent employment and income (iii) social security (iv)
strengthening tripartism and social dialogue (ILO 1999).
The success of social dialogue depends on the nature in which there are
formulated no certain shall be utilised. The process of social dialogue cannot be
fulfilled unless and until favourable and committed stand pointof government
on its sight for putting it into execution not for the benefit of the organisation
but that execution civil society organisation. The people participation in
government is the informing and distinguishing virtue of organisations, certain
strategies for employee capacity building in government organisation which
includes.
(i) Decentralisation: it is seen in democracy in which decision making is facilitated at grass root
level. More employment shall be granted generated from
lower strata of the society and employees are empowered in decision making process.
Under participation in policy formation and implementation are expected in decentralisation with
better choice with respected to policy inputs.
The decentralisation creates optimal benefits and minimises cost both in the utilitarian point of
views.
(ii) Delegation: this makes the process dynamic and enhances the
communicative system. Accelerates the working and top management is being
relieved in routine works. It enhances the power of the employees. It puts
emphasise on:
(i) Responsibility and responsiveness lie in the ethics of governance
(ii) Necessary skill is required to carry out delegated works properly it improves
the capacity of the employees
(iii) Quality and innovation: the stakeholder needs to adopt a new concept of
development which puts much stress on quality building measures to make it

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practice is helpful in employee capacity building.

(iv) Technical building: it is facilitated through the provision of technical
support system various innovative ideals are being generated it includes
coaching, training specific technical assistance and resource networking system.
The human capacity building has been involved in digital device and in term,
transferring digit divide into digital opportunities. It is useful in every
dimension of economy. The process of e-governance is a regular use of the
government administration.
Promoting openness to all and networking of government organisation promotes
capacity building. In United Kingdom, the citizen charter contains specific
provision for promoting openness in decision making process in governmental
administration.
Cananda has an access to information act which gives rights to the people and
provides opportunity present in Canada to have access to government records
that are not of a personal nature. Malasia has taken various steps to provide for
an inclusive policy formation mechanism.

India as a general trend towards more open and transparent government the
right to information has been passed in the central legislature it is useful in
controlling the administrative description which has been a point of debate.
The 5th pay commission has recommended certain criteria for all matters
regarding promotion transfer and appointment.
Openness shall be extended to resolution of disputes among government
servant. That is to be resolved by the higher authority if any sort of disputes
arise and has not be settled, the two parties involved should be disassociated to
avoid interpersonal problem. Positive relation shall be cultivated.
The fifth commission reports: “we have a centralised system of government
system of government, whether it is the ministry of finance or low or the
department of personnel, the tendency is to centralise decision making. The
individual ministries have to refer everything to these modal ministries. Most of
the important decisions of any consequence are taken either by the cabinet or

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cabinet committee or the minister or the committee of secretaries. “The

commission has recommended for delegation of power to individual ministries.
14.5 Training in Public Administration

Training in public administration is a critical process for enhancing the capacity and efficiency of
public servants and improving the overall effectiveness of government institutions. It equips
administrators with the necessary skills, knowledge, and values required to handle their
responsibilities and meet the challenges of governance.

Training in this field encompasses a broad range of topics, including leadership development,
management skills, ethical conduct, decision-making, legal frameworks, and technical skills
related to public policy, budgeting, and public service delivery.

1. Importance of Training in Public Administration

Training is essential for several reasons:

 Improves Efficiency and Productivity: Well-trained civil servants perform their roles
more effectively, reducing bureaucratic inefficiencies and improving the delivery of
public services.
 Promotes Ethical Conduct: Training programs, particularly in ethics and
accountability, help public administrators understand the importance of maintaining high
moral standards in their actions and decisions.
 Enhances Leadership Skills: Training prepares public officials for leadership roles by
developing skills in managing teams, overseeing projects, and making decisions that
align with public values.
 Adapts to Changing Environments: Public administration is influenced by rapid
changes in society, technology, and governance structures. Continuous training ensures
that administrators stay up-to-date with best practices, new laws, and emerging trends.
 Strengthens Policy Implementation: Effective training in public administration helps
ensure that government policies are executed as intended, especially in areas such as
public finance, health, and education.
 Encourages Innovation: Training programs can encourage public administrators to think
creatively and adopt innovative approaches in problem-solving and service delivery.

2. Types of Training in Public Administration

Training in public administration can be broadly categorized into the following types:

1. Induction Training (Orientation)

 Purpose: Provides new employees with an understanding of the organization, its

mission, culture, and values. It helps them get acquainted with administrative processes
and policy procedures.
 Topics Covered:
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 Organizational structure and culture

 Roles and responsibilities
 Ethical conduct and values
 Legal frameworks
 Introduction to key government functions

2. Management and Leadership Training

 Purpose: Equips public administrators with the skills necessary to manage people,
resources, and projects, and to lead effectively within public organizations.
 Topics Covered:
 Leadership styles and theories
 Conflict resolution
 Team management
 Performance evaluation
 Strategic planning and decision-making

3. Specialized Skills Training

 Purpose: Provides public servants with specific technical skills required for their roles,
such as budget management, policy analysis, and public procurement.
 Topics Covered:
 Financial management and budgeting
 Public policy analysis
 Data analysis and research
 Project management and implementation
 Technology and digital governance

4. Ethics and Integrity Training

 Purpose: Helps public officials understand and adhere to ethical standards, ensuring that
they operate with transparency, accountability, and fairness.
 Topics Covered:
 Ethical principles and decision-making
 Conflict of interest management
 Combating corruption and nepotism
 Legal and regulatory frameworks related to public administration
 Whistleblowing and protecting integrity in public service

5. Public Communication and Citizen Engagement

 Purpose: Focuses on the skills needed to communicate effectively with the public and
engage citizens in the decision-making process.
 Topics Covered:
 Public speaking and media relations

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 Writing for the public (reports, press releases, etc.)

 Social media management for government
 Community outreach and public consultations
 Citizen feedback mechanisms

6. Technology and E-Governance Training

 Purpose: As governments increasingly adopt digital tools for service delivery, this
training helps administrators use technology effectively in public administration.
 Topics Covered:
 Digital governance tools and platforms
 Cyber security and data protection
 Online service delivery and e-government
 Use of big data and AI in governance
 Digital transformation strategies

7. Crisis Management and Disaster Response Training

 Purpose: Prepares public servants to handle crises and emergencies, from natural
disasters to public health emergencies.
 Topics Covered:
 Disaster preparedness and management
 Crisis communication strategies
 Emergency response coordination
 Risk management and mitigation

3. Methods of Training in Public Administration

Various methods are used to deliver training in public administration, depending on the topic and
the target audience. These include:

1. Classroom Training

 Traditional face-to-face lectures, discussions, and workshops. This is effective for

building foundational knowledge, especially in topics like ethics, leadership, and public
policy.

2. E-Learning and Online Courses

 Digital platforms and courses allow public administrators to engage with training
materials at their own pace. This is ideal for flexible learning and reaching a wide
audience across different geographical locations.

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3. On-the-Job Training

 Public servants can receive hands-on experience and learn by working alongside senior
colleagues or mentors. This type of training is particularly useful for practical skills like
project management and policy implementation.

4. Simulations and Case Studies

 Using real-world scenarios or simulated situations to allow trainees to practice decision-

making, problem-solving, and ethical decision-making. It provides a safe environment
to test new skills.

5. Workshops and Seminars

 These are more interactive than traditional lectures and involve group discussions, role-
playing, and problem-solving activities. They are often used for leadership development
and ethical training.

6. Peer Learning and Mentorship

 Peer learning groups and mentorship programs can be valuable, where experienced public
administrators help new or junior employees understand the intricacies of government
work.

7. International Exchange and Study Tours

 Sending public servants abroad or engaging in international seminars allows

administrators to learn from best practices and innovations in governance from other
countries. This is particularly useful in developing countries that are looking to
modernize public administration.

4. Challenges in Training Public Administrators

Despite the importance of training, there are several challenges in delivering effective training
for public administration:

1. Budget Constraints

 Limited funding can make it difficult to organize comprehensive training programs,

especially in developing countries. Governments must prioritize training within tight
budgets, which may limit access or scope.

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2. Resistance to Change

 Some public administrators may resist training initiatives, particularly if they feel that
their roles or skills are being questioned. Overcoming resistance to change is a common
challenge.

3. Relevance of Training Content

 Ensuring that the training content is up-to-date and relevant to current challenges in
public administration is crucial. Training programs must adapt to evolving issues like
digital governance, climate change, and social equity.

4. Lack of Qualified Trainers

 Effective training depends on having qualified trainers who are knowledgeable about
both the subject matter and effective teaching methods. Recruiting and retaining skilled
trainers can be a challenge in some areas.

5. Measuring Training Effectiveness

 Assessing the impact of training can be difficult, especially when measuring soft skills
such as ethical behavior and leadership. Developing effective evaluation tools is
essential for continuous improvement.

5. Examples of Training Programs in Public Administration

Here are a few examples of successful training initiatives in public administration:

1. The National Academy of Public Administration (NAPA), USA

 NAPA provides training programs aimed at improving the performance and efficiency of
government at all levels in the U.S. It offers training on leadership, governance, policy
analysis, and public management.

2. The Administrative Staff College of India (ASCI)

 ASCI offers specialized training to government employees in India, covering areas like
public management, financial governance, policy formulation, and digital
administration.

3. The United Nations Public Administration Network (UNPAN)

 UNPAN offers various resources and training programs aimed at enhancing public
administration capacity in developing countries, including e-governance and policy
implementation.

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4. Civil Services Training in Singapore

 Singapore has one of the best public service training frameworks, where the Civil
Service College (CSC) provides a wide range of courses on leadership, governance,
digital transformation, and public policy.

14..6 Ethics in Administration

Ethics in administration refers to the moral principles and standards that guide the behavior of
public servants and administrators in the public sector. It is concerned with ensuring that
administrative actions are carried out with integrity, accountability, transparency, and fairness, in
alignment with both legal requirements and societal expectations. Ethical behavior in public
administration not only enhances the legitimacy of government actions but also fosters trust and
cooperation between citizens and the state.

1. Definition of Ethics in Administration

Ethics in administration involves the moral foundations that public administrators and
institutions should adhere to while making decisions, implementing policies, and interacting with
the public. These principles are often rooted in values like justice, equality, honesty,
accountability, transparency, and respect for the rule of law. Ethical governance ensures that
actions are justifiable, fair, and carried out with the public good in mind.

2. Importance of Ethics in Public Administration

Ethics plays a crucial role in ensuring that public administration operates efficiently,
transparently, and with a high level of public trust. Here are some reasons why ethics is vital in
administration:

1. Public Trust and Confidence: Ethical behavior helps in maintaining the trust of the
public. If citizens feel that government officials are acting in good faith and upholding
high ethical standards, they are more likely to trust public institutions.
2. Accountability and Transparency: Ethical standards promote transparency in decision-
making and help hold public servants accountable for their actions. This reduces
opportunities for corruption and favoritism.
3. Fairness in Decision-Making: Ethics ensures that policies and decisions are made
without bias or discrimination, providing equal treatment to all individuals and
communities, regardless of their status or connections.
4. Prevention of Corruption: Adhering to strong ethical principles in administration can
prevent corruption, nepotism, and mismanagement of public resources.
5. Effective Governance: Ethical public administration ensures that decisions are made
based on the public good and not individual or political gain, which leads to more
effective and efficient governance.

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3. Core Ethical Principles in Public Administration

Several core ethical principles guide public administration, ensuring that actions and decisions
are made with the public interest at the forefront. These principles include:

1. Integrity

 Integrity in administration refers to the honesty and consistency of actions and decisions.
Public servants should act truthfully and avoid misrepresenting facts or engaging in
deceptive practices.

2. Accountability

 Public administrators are accountable for their decisions and actions. They should
provide justification for their actions and decisions and be prepared to face consequences
if they fail to meet legal and ethical standards.

3. Transparency

 Transparency means that decision-making processes and policies are open to scrutiny.
Public servants should share relevant information with the public and ensure that
administrative actions are clear and understandable.

4. Impartiality

 Administrators must be impartial and make decisions based on fairness, equity, and the
rule of law. They should avoid bias, favoritism, or discrimination in their actions and
treatment of individuals.

5. Responsibility

 Public servants have a responsibility to serve the public interest, ensuring that their
actions align with the needs and aspirations of the community. They should prioritize the
public good over personal or political interests.

6. Respect for the Rule of Law

 Ethics in administration demands that decisions and actions be aligned with established
laws, policies, and regulations. The rule of law ensures that public administration
operates within the legal framework and is accountable to the law.

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7. Service to the Public

 Public servants are in a position of trust and should work diligently to serve the public.
This principle emphasizes the duty of administrators to put public welfare above their
personal interests or any external pressures.

8. Confidentiality

 In many cases, administrators are privy to sensitive information. Ethical conduct requires
maintaining confidentiality and not disclosing information unless required by law or in
the public interest.

4. Ethical Dilemmas in Public Administration

Public administrators often face complex ethical dilemmas where they must balance competing
interests. Some common ethical challenges include:

1. Conflicts of Interest

 Administrators must avoid situations where personal interests conflict with their official
duties. For example, a government official involved in awarding contracts should not
have financial interests in the companies bidding for those contracts.

2. Corruption and Nepotism

 Corruption (misuse of power for personal gain) and nepotism (favoring relatives or close
associates in decision-making) are serious ethical violations in public administration that
undermine trust and fairness.

3. Discrimination and Bias

 Public administrators may face situations where their decisions affect marginalized or
vulnerable populations. Ethical decision-making requires fair and non-discriminatory
treatment of all citizens.

4. Whistleblowing

 Employees within public organizations who expose unethical or illegal practices by

colleagues or superiors face moral dilemmas. Should they blow the whistle on
misconduct at the risk of retaliation, or remain silent?

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5. Political Pressure

 Administrators may be pressured by politicians or powerful stakeholders to act in ways

that are not aligned with ethical standards. This is particularly challenging when political
interests conflict with the public interest.

6. Resource Allocation

 Ethical dilemmas may arise in resource allocation, especially when there is limited
funding for public services. Public servants must decide how to allocate resources fairly,
ensuring that vulnerable populations are not overlooked.

5. Ethics and Accountability Frameworks

Governments and public organizations develop frameworks and codes of conduct to guide
ethical behavior in administration. Some examples include:

1. Code of Ethics

 Many governments, such as the U.S. federal government, have developed a Code of
Ethics or Code of Conduct for public servants. These documents provide guidelines for
expected behavior, handling conflicts of interest, and maintaining integrity in public
office.

2. Anti-Corruption Agencies

 Institutions like the Central Vigilance Commission (CVC) in India or the Federal
Bureau of Investigation (FBI) in the U.S. are responsible for investigating allegations of
corruption and ensuring that public servants adhere to ethical standards.

3. Ombudsman Offices

 Ombudsman offices are set up to protect citizens’ rights and address complaints against
government officials. They act as independent bodies that investigate grievances related
to unethical administrative practices or violations of rights.

4. Transparency Initiatives

 Governments and international organizations, such as Transparency International,

promote transparency in administration to combat corruption. Public access to
information laws and online government platforms are part of these efforts.

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5. Training and Capacity Building

 Many governments provide training programs for civil servants on ethical conduct,
decision-making, and how to handle ethical dilemmas. Training helps instill ethical
principles within the culture of public administration.

6. Examples of Ethical Challenges in Public Administration

1. The Case of the Watergate Scandal (U.S.):

 The Watergate scandal in the 1970s highlighted severe ethical violations in the Nixon
administration, where public officials were involved in illegal surveillance and cover-
ups. This case led to greater scrutiny of ethical behavior in politics and government.
2. Nepotism in Hiring:
 In some governments, public officials may engage in nepotism by hiring relatives or
friends for government positions. Such practices are unethical and can lead to
inefficiency, corruption, and public dissatisfaction.
3. Whistleblowing in the UK:
 The UK’s National Health Service (NHS) has had instances where public servants
exposed unethical practices or mismanagement in hospitals. Whistleblowers are often
faced with tough decisions about whether to report such practices, knowing it could
lead to personal retaliation.

7. Ethical Leadership in Public Administration

Ethical leadership is critical in public administration. Public administrators are not just expected
to follow ethical standards but to also lead by example, ensuring that their actions reflect the
values of the organization. Ethical leadership involves:

 Leading by Example: Public leaders should model ethical behavior, reinforcing ethical
norms within their teams.
 Fostering Ethical Culture: Ethical leaders must create an environment that encourages
ethical behavior and holds individuals accountable for their actions.
 Decision-Making: Ethical leaders must make decisions that prioritize the public good,
even when facing personal or political pressures.

14.7. Summary

Training in public administration is essential for improving the efficiency, transparency, and
accountability of government institutions. By investing in training, governments can equip public
servants with the skills they need to serve the public effectively and adapt to changing demands.
Ethical decision-making, leadership development, specialized skills, and the use of technology
are just some of the critical areas that need attention in training programs. Ultimately, well-
trained civil servants contribute to better governance and more responsive public institutions.

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Ethics in administration is an essential component of good governance. Public servants are

tasked with making decisions that affect the lives of citizens, and their actions must be rooted in
moral principles such as fairness, accountability, and transparency. Addressing ethical dilemmas
in administration requires the development of a strong ethical framework, as well as ongoing
training and oversight. By adhering to ethical standards, governments can build public trust,
prevent corruption, and ensure that resources are used effectively for the common good.

14.8 Key Words

Ethics in administration Ethics in Administration (often referred to as Ethics in Public

Administration) is a critical aspect of governance, focusing on the
moral principles that guide the actions, decisions, and behaviors
of public administrators and officials. Since public administrators
are responsible for managing public resources, enforcing laws, and
implementing policies, their actions have a direct impact on the
public good. Ethical behavior ensures that these actions are
conducted with integrity, fairness, transparency, and
accountability.

14.9 Model Questions

1. Examine the importance of training and development.
2. Analyse the need for training and development.
3. Discuss the employee capacity building strategy.
4. Evaluate the Prospect of Training in Public Administration.
5. Assess the Impact of Ethics in Administration.

14.10 References
1. Naidu, S.P. (2005), Public Administration-Concepts and Theories, New Delhi: New Age
International Pvt. Ltd.
2. Sharma, Dr. M.P. & Sadna, Dr. B.L. (2000), Public Administration Theory and Practice,
Allahabad: Kitab Mahal Publications.

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Unit-15: CONTEMPORARY CHALLENGES & PERSPECTIVES:

E-GOVERNANCE, PUBLIC-PRIVATE PARTNERSHIP
Structure:
15.0 Learning Objectives
15.1 Introduction
15.2 Contemporary Challenges for State
15.3 Contemporary perspectives for state
15.4 e-governance
15.5 Public-Private Partnership (PPP)
15.6 Public-Private Partnership (PPP) Mode in Infrastructure and Development
15.7 Summary
15.8 Key Words
15.9 Model Qquestions
15.10 References
15.11 Additional Readings

15.0 LEARNING OBJECTIVES

After reading this chapter, the learners will be able to explain :
 Contemporary challenges for state\
 Contemporary perspectives for state
 e-Governance,
 Public-private partnership (ppp)
 Public-private partnership (ppp) mode in infrastructure and development

15.1 INTRODUCTION
The role of the state has evolved dramatically over the past century and continues to change in
response to globalization, technological advancements, shifting political landscapes,
economic crises, and environmental challenges. The traditional role of the state as the sole

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authority within national borders, focused on law enforcement, defense, and governance, is being
challenged by new forces. Let's break down the changing role of the state across key areas:

1. From Sovereign Power to Global Interconnectedness

Historically, the state operated largely within the confines of its own borders, with absolute
sovereignty over its territory. In the modern era, globalization and transnational issues have
weakened the strict boundaries of state power. Nations are increasingly engaged in global
governance, where decision-making often involves international organizations like the United
Nations, the World Trade Organization (WTO), and the World Health Organization
(WHO).

 Example: The Paris Agreement on climate change is an example where countries have
agreed to common environmental goals, despite the fact that each nation has its own
political system and agenda. Similarly, states are increasingly cooperating on issues like
trade regulation, pandemics, and cybersecurity.
 Impact: The state’s role is becoming more complex as it navigates between national
sovereignty and global interdependence.

2. from Provider to Facilitator

In many countries, the role of the state has shifted from being the primary provider of goods
and services to a facilitator or regulator. While traditional welfare states provided extensive
services—such as healthcare, education, housing, and social welfare—many governments now
focus on creating conditions for private sector participation in these areas.

 Example: In many countries, public-private partnerships (PPPs) are used to deliver

infrastructure and services like roads, hospitals, and schools. The state provides
regulatory frameworks and funding, but private firms play a larger role in service
delivery.
 Impact: The state now acts more as a regulator and enabler of services rather than the
sole provider, though this shift has created debates around privatization, quality, and
equity.

3. State as a Guardian of Digital and Cyber Space

The digital age has created a new arena for state involvement: cybersecurity and digital
governance. As technology reshapes communication, trade, and social interaction, the state’s
role has expanded to managing digital infrastructure, data privacy, and online security.

 Example: Governments are increasingly passing laws regulating data privacy (like the
EU's General Data Protection Regulation (GDPR)) and ensuring that companies
adhere to digital security standards.

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 Impact: States must balance individual freedoms with national security concerns,
managing challenges like cybercrime, data breaches, and misinformation while
ensuring that the digital economy remains secure.

4. Environmental Governance: From Passive to Active Participant

As climate change accelerates, the state's role has transitioned from passive observer to active
participant in environmental governance. Governments are now central in implementing
climate action, managing natural resources, and enforcing environmental regulations.

 Example: Many states, particularly in Europe, have implemented green new deals and
carbon taxes, and are investing in renewable energy and green technologies to reduce
emissions and promote sustainability.
 Impact: The state is taking on a more proactive role in ensuring that national and
international policies align with sustainability goals. This has led to the rise of
environmental states focused on climate justice, biodiversity, and green technologies.

5. Shifting Focus from National Security to Human Security

While traditional state functions focused on national defense, today, states are increasingly
concerned with human security. The focus has shifted from protecting borders and military
strength to securing the well-being of citizens in terms of health, education, human rights, and
social welfare.

 Example: The COVID-19 pandemic demonstrated the importance of the state’s role in
public health and crisis management, pushing governments to act swiftly to protect
citizens, manage medical resources, and provide social support.
 Impact: The state’s role in healthcare, mental health, education, and disaster
management has become paramount, signaling a shift towards a more holistic approach
to security.

6. From National Economy to Global Economic Player

The state's role in managing the economy has evolved from being focused on self-sufficiency
and protectionism to being a key player in global economic systems. States are now more
interdependent due to international trade, investment flows, and the global supply chain.

 Example: The rise of global financial markets means that the state must navigate not
only domestic economic policies (e.g., fiscal policy, taxation) but also global economic
conditions. Trade agreements (e.g., USMCA, Belt and Road Initiative) influence
national economic decisions.
 Impact: The state's economic role is no longer limited to national borders. Governments
must cooperate on international trade, finance, and development while managing the
risks of economic dependency and external shocks.

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7. Democratization and the Challenge of Governance

The role of the state has shifted from authoritarian control to democratic governance in many
parts of the world. States now face the challenge of managing democratic processes while
ensuring that they can function effectively in the face of rising political polarization and demands
for accountability.

 Example: In many democracies, social movements (e.g., Black Lives Matter, Fridays
for Future) and increasing public participation are influencing state policy on issues
like racial justice, climate change, and economic inequality.
 Impact: States must balance representative democracy with the growing demands for
direct participation and ensure that governance remains inclusive, transparent, and
accountable.

8. Shifting Role in Social Welfare

In many nations, the state's traditional role in welfare provision has changed, partly due to
austerity measures, neoliberal policies, and privatization. While the state still plays a crucial
role in social protection, there has been an increased push towards self-reliance, market-based
solutions, and community-driven efforts.

 Example: Many countries are shifting towards targeted or conditional welfare programs
(e.g., universal basic income proposals or child benefits) rather than broad-based social
safety nets.
 Impact: The state's role is evolving from being an omnipresent welfare provider to a
moderator that ensures safety nets while encouraging private and community
involvement.

15.2 Contemporary Challenges for State

The challenges faced by states today are multifaceted, influenced by globalization, technological
changes, shifting demographics, and environmental crises. Here’s an overview of some of the
contemporary challenges for states:

1. Globalization and Economic Integration

 Global Competition: In an increasingly globalized world, states are competing for

investment, talent, and resources. The interconnectedness of markets means that events in
one region can have ripple effects across the globe. For example, a recession in one
country can lead to a global downturn, while global supply chains can be disrupted by
events like trade wars, pandemics, or natural disasters.
 Trade Dependence and Protectionism: States are struggling to balance free trade with
protectionist policies. While global trade has lifted millions out of poverty, it's also led
to the decline of certain industries in some regions. The rise of protectionism (e.g., tariffs,
trade wars) in recent years adds complexity to international relations.

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2. Climate Change and Environmental Sustainability

 Climate Crisis: The increasingly severe effects of climate change, such as extreme
weather events, rising sea levels, and changing agricultural patterns, challenge states to
adapt and mitigate these effects. For instance, island nations are facing the existential
threat of disappearing due to rising sea levels, while others must deal with more intense
wildfires, flooding, and droughts.
 Sustainability and Green Transition: Governments face the challenge of transitioning
to a green economy by reducing carbon emissions, promoting renewable energy, and
making industries more sustainable. This often involves addressing entrenched industries
like fossil fuels, which are vital to many economies. Finding the balance between
economic growth and environmental responsibility is a key tension.
 Biodiversity Loss: Governments must manage the depletion of natural resources, species
extinction, and biodiversity loss, which threaten ecosystems, agriculture, and human
livelihoods.

3. Technological Disruption and the Digital Age

 Automation and Job Loss: As automation, artificial intelligence (AI), and machine
learning transform industries, states face challenges related to job displacement. Many
routine and low-skill jobs are being replaced by machines, and governments must find
ways to retrain and reskill workers for the future job market.
 Cyber security: With the rise of digital technology, cyberattacks, data breaches, and
espionage have become major concerns. State security must now include not just physical
defense but also cyber defense to protect national infrastructure, businesses, and personal
data.
 Tech Regulation: States are grappling with how to regulate tech giants like Google,
Facebook, and Amazon, which dominate markets, influence public opinion, and create
monopolistic structures. Balancing innovation with regulation is a delicate task.
 Digital Divide: The gap between those with access to modern technology and those
without (especially in developing countries or rural areas) remains a critical issue,
limiting access to education, healthcare, and economic opportunity.

4. Geopolitical Tensions and National Security

 Shifting Global Power: The world order is becoming more multipolar with the rise of
China, India, and other emerging economies challenging the traditional Western
dominance (e.g., U.S. and Europe). This shift raises tensions over trade, military power,
and global influence.
 Military Conflicts and Regional Instability: Ongoing conflicts, such as in Syria,
Ukraine, or Yemen, create instability in key regions and can have global repercussions.
The proliferation of nuclear weapons and the potential for military escalation also remain
key risks.
 Terrorism and Internal Security: Even as some global conflicts subside, the threat of
terrorism, extremist ideologies, and political instability within states persists.

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Governments are tasked with ensuring both internal and external security while
maintaining civil liberties.

5. Demographic Changes and Social Inequality

 Aging Populations: In many developed countries (e.g., Japan, Europe), aging

populations are creating pressures on pension systems, healthcare, and the workforce. At
the same time, youthful populations in some developing countries face high
unemployment and limited access to quality education and healthcare.
 Migration and Refugees: Climate change, conflict, and economic disparity have led to
mass migrations, which often strain the social fabric, infrastructure, and welfare systems
of receiving countries. Tensions around immigration policy and the treatment of
refugees remain highly divisive in many regions.
 Social Inequality: Growing income inequality, especially between the rich and poor, has
led to increased social unrest. States face mounting pressure to address economic
inequality, provide access to affordable housing, healthcare, and education, and ensure
that all citizens benefit from economic growth.

6. Political Polarization and Governance

 Declining Trust in Institutions: A rise in political polarization has led to growing

mistrust in governmental institutions, particularly in democracies. Populist movements,
whether on the left or right, are challenging the status quo and pushing for fundamental
changes in governance.
 Erosion of Democratic Norms: In many countries, there’s a growing erosion of
democratic norms. Issues like media manipulation, corruption, and authoritarianism
undermine public confidence in the political system. This can lead to political instability,
protests, and a weakened rule of law.
 Global Governance: As global issues like climate change, pandemics, and cybersecurity
cross borders, international cooperation becomes essential. However, governing
effectively in a multipolar world and maintaining unity on major global issues is
increasingly difficult.

7. Health Crises and Pandemics

 COVID-19 and Future Pandemics: The COVID-19 pandemic exposed many of the
vulnerabilities in health systems, global supply chains, and governments' emergency
preparedness. States face the challenge of ensuring healthcare access for all while
maintaining economic stability.
 Mental Health Crisis: Beyond physical health, mental health is emerging as a major
concern, with rising rates of depression, anxiety, and stress, partly exacerbated by
economic uncertainty, the pandemic, and social isolation.
 Public Health Infrastructure: Many states, especially in the Global South, face
challenges in strengthening their public health systems to prevent disease outbreaks and
provide essential care for growing populations.

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8. Shifting Social and Cultural Dynamics

 Cultural Identity: Many states face growing debates around national identity,
immigration, and multiculturalism. As societies become more diverse, the question of
how to balance inclusion with national unity remains a complex challenge.
 Rights Movements: Issues related to gender equality, racial justice, and LGBTQ+
rights have led to significant social movements. While progress has been made, many
states still struggle with ensuring the full and equal rights of all citizens.
 Digital Identity and Privacy: The digitalization of everyday life raises concerns about
personal privacy, data protection, and the right to control one’s digital identity.
Governments are facing pressure to regulate tech companies to safeguard citizens’
privacy.

9. Sustainability and Resource Management

 Water and Food Security: Many regions are facing growing concerns over water
scarcity and food security, especially with climate change altering rainfall patterns,
disrupting agriculture, and increasing demand.
 Energy Transition: Transitioning from fossil fuels to renewable energy presents
significant challenges in terms of infrastructure, policy, and investment. Governments
must balance economic dependence on fossil fuels with the need to reduce carbon
emissions.

10. Economic Recession and Recovery

 Debt and Fiscal Responsibility: Many states have accumulated massive debts, especially
after the COVID-19 crisis and the economic stimuli required to counter its effects. Managing
national debt and ensuring fiscal responsibility while stimulating growth is a difficult task.
 Labor Market Disruption: The gig economy, rise of remote work, and decline of traditional
jobs in manufacturing and services have altered labor markets. States must adapt to these
changes by reforming labor laws and ensuring that workers’ rights are protected.

 ANALYSIS:
States today face an array of complex, interrelated challenges that require both immediate action
and long-term strategic planning. In many cases, these challenges are amplified by globalization,
technological changes, and environmental pressures. Governments must find ways to balance
economic growth, social equity, environmental sustainability, and national security while
navigating increasingly volatile political landscapes.

15.3 CONTEMPORARY PERSPECTIVES FOR STATE

Contemporary perspectives on the role of the state reflect the ongoing evolution of governance
in the face of global challenges. The state's role in the modern world is increasingly complex,
shaped by diverse political ideologies, emerging technologies, economic shifts, and
environmental crises. Below are several key perspectives on how states are viewed and how they
can evolve in today's context:

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1. Neoliberalism and Minimal State

Neoliberalism advocates for a reduced role of the state in economic affairs, emphasizing free-
market capitalism, deregulation, and privatization. According to this perspective, the state
should provide a conducive environment for business, protect property rights, and ensure basic
public goods, but leave most economic functions to the market.

 Key Principles:
 Deregulation: Reducing state-imposed regulations on business and trade to promote
economic growth.
 Privatization: Transferring state-owned enterprises to the private sector, especially in
industries like utilities, healthcare, and education.
 Global Free Trade: Encouraging the integration of economies through open markets,
with limited government intervention.
 Criticism: While it has led to growth in many countries, neoliberalism has also been
criticized for increasing inequality, eroding social safety nets, and exacerbating
environmental degradation.

2. Social Democracy and the Welfare State

A social democratic perspective emphasizes the state's responsibility in ensuring social

welfare, reducing inequality, and providing universal access to healthcare, education, and
social services. The welfare state is built on the premise that the government should actively
intervene in the economy to protect vulnerable citizens and create a more equitable society.

 Key Principles:
 Universal Welfare: Providing comprehensive services (healthcare, education,
unemployment benefits, pensions) funded by taxes.
 Progressive Taxation: Wealthier individuals and corporations are taxed at higher
rates to fund social programs and reduce economic inequality.
 Labor Rights: Ensuring fair wages, work conditions, and social protections for
workers.
 Example: Scandinavian countries like Sweden, Denmark, and Norway have
implemented social democracy models with strong welfare programs, robust healthcare,
and high levels of economic equality.
 Criticism: Critics argue that such systems can be expensive and create a dependency on
the state, leading to higher taxes and potentially stifling innovation and personal
responsibility.

3. State Capitalism

State capitalism refers to a system where the state plays a dominant role in the economy, often
owning or controlling major industries. In this model, the state functions as both an economic
actor and a regulator, with the aim of promoting national interests.

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 Key Principles:

Government Control of Key Sectors: The state owns and operates key industries
(e.g., energy, telecommunications, defense), often to ensure national security or
economic independence.
 Private Sector Collaboration: Governments may encourage private enterprise in
certain areas but still maintain control or influence over strategic sectors.
 National Development Goals: Economic policy is aimed at strengthening the state’s
position in global markets, often with long-term strategies for technological
advancement and infrastructure development.
 Example: China has a state capitalist system where state-owned enterprises (SOEs)
dominate key sectors, while private companies operate within a framework guided by
state policies. The government actively promotes industrialization and technological
innovation.
 Criticism: State capitalism can stifle competition, limit innovation, and concentrate
political and economic power in the hands of the government.

4. Post-National or Global Governance

As the world becomes more interconnected, there is a growing push for post-national
governance frameworks that transcend traditional state sovereignty. In this view, states must
cooperate more deeply on global challenges such as climate change, pandemics, and
international trade. The idea of global governance seeks to address issues that individual states
cannot solve alone.

 Key Principles:
 International Cooperation: States must work together through international
organizations (e.g., United Nations, World Trade Organization, World Health
Organization) to tackle transnational problems.
 Supranational Bodies: Decision-making powers may be delegated to international
institutions to create more cohesive global policies (e.g., the European Union or the
International Criminal Court).
 Human Rights Focus: A commitment to global human rights standards and norms,
transcending national borders.
 Example: The European Union is an example of a regional form of post-national
governance, where member states share sovereignty over areas like trade, law
enforcement, and monetary policy.
 Criticism: Critics argue that global governance can undermine national sovereignty
and create bureaucratic inefficiencies. There are concerns about unequal representation
in international institutions and the loss of local control over decision-making.

5. The Developmental State

The developmental state perspective sees the state as a strategic actor in economic
development. The state actively directs resources and investments to key sectors in order to
foster industrialization, economic growth, and national advancement. This model often

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emphasizes the importance of state-directed industrial policy and strategic investment in

infrastructure.

 Key Principles:
 Government-Led Industrialization: The state plays an active role in directing
economic activity, particularly in sectors crucial for national development.
 Long-Term Planning: Developmental states often implement five-year plans or
similar long-term strategies for national growth.
 Public Investment: The state invests in infrastructure, education, and technology to
promote economic development.
 Example: Singapore and South Korea are often cited as successful examples of
developmental states. Both countries strategically guided their economies toward high-
tech industries, education, and export-oriented growth.
 Criticism: Critics argue that state-led development can lead to inefficiencies and
corruption, as well as over-reliance on government intervention. In some cases, it can
lead to political authoritarianism.

6. Libertarianism and Minimal Government

Libertarianism is an ideology that calls for minimal state intervention, emphasizing individual
freedoms and the importance of private property. Libertarians argue that a minimal state should
focus primarily on protecting personal rights, enforcing contracts, and maintaining law and order,
but leave almost all other aspects of life to the private sector.

 Key Principles:
 Limited Government: The state’s primary role is to protect individual rights, including
the right to life, liberty, and property.
 Free Markets: A belief in the power of the market to solve problems and allocate
resources efficiently. Private enterprise is preferred over government services.
 Non-Interventionism: The state should not intervene in personal, economic, or foreign
affairs unless absolutely necessary.
 Criticism: Critics argue that libertarianism can lead to inequality, as the state’s minimal
role may fail to address market failures, protect vulnerable groups, or provide essential
services to those in need.

7. Authoritarianism and Strongman Leadership

In contrast to liberal democratic models, authoritarian states often center on strong centralized
leadership and limited political freedoms. These regimes argue that a strong, centralized state
can ensure stability, economic growth, and national security, often in the face of external or
internal threats.

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 Key Principles:

Centralized Power: A single leader or small group holds significant power, often
overriding checks and balances.
 Economic State Control: Authoritarian states often control key industries and have
tight regulatory control over the economy.
 Social Stability: A focus on maintaining order, curbing dissent, and preserving national
unity.
 Example: Countries like Russia under Vladimir Putin, or Turkey under Recep Tayyip
Erdoğan, have moved toward authoritarian governance models with strong executive
power and limited political opposition.
 Criticism: Authoritarianism is criticized for its lack of political freedoms, the potential
for corruption, and the violation of human rights.

8. Environmental Governance and Ecological State

With the growing urgency of climate change, some thinkers advocate for a green state or
ecological governance, where the state plays an active role in environmental protection,
sustainable resource management, and the transition to a green economy.

 Key Principles:
 Sustainable Development: The state actively shapes policies to ensure long-term
environmental sustainability, integrating ecology into economic and social planning.
 Climate Action: Governments are responsible for leading efforts to address climate
change, including policies that reduce carbon emissions, protect ecosystems, and invest in
green technologies.
 Environmental Justice: Ensuring that vulnerable populations are not disproportionately
affected by environmental degradation.
 Example: Countries like Costa Rica have embraced environmental governance with
strong national policies on biodiversity, renewable energy, and sustainability.
 Criticism: The push for ecological governance can conflict with economic growth goals,
especially in industries reliant on non-renewable resources.

 ANALYSIS:
Contemporary perspectives on the role of the state vary widely depending on ideological stances,
but they all reflect attempts to adapt governance models to rapidly changing global conditions.
Whether advocating for a minimal state, a more interventionist welfare model, or an
authoritarian state, each perspective offers solutions to current challenges—economic inequality,
climate change, geopolitical instability, and technological disruption—while also posing new
risks and criticisms.

15.4 E-GOVERNANCE
The term "e-governance," or "electronic governance," describes the application of information
and communication technologies (ICTs) to promote efficiency, accountability, and transparency

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in the public sector, as well as to enhance and streamline the delivery of government services. It
makes use of digital platforms and tools to make communication between corporations, citizens,
government agencies, and other stakeholders easier. E-governance eliminates the need for
citizens to physically visit government offices by allowing them to access information and
services online. This covers services including submitting tax returns, obtaining licenses, and
renewing permits.
To communicate with the public, corporations, and other government bodies, governments use
digital channels. Social networking sites, internet portals, and email notifications fall under this
category. Using digital databases, e-governance entails the effective administration of public
data. Better data analysis, record-keeping, and decision-making procedures are made possible by
this. By giving citizens convenient access to public data, electronic platforms can improve
accountability. Because citizens can keep an eye on government performance and actions, this
promotes accountability. E-governance promotes citizen involvement in the decision-making
process. Online forums and platforms give people a way to voice their thoughts, offer
suggestions, and take part in open consultations. E-governance can result in cost savings for the
government as well as for the general public by automating procedures and minimizing
paperwork. Administrative chores are streamlined, and less physical infrastructure is required.
To safeguard private information and defend citizens' rights to privacy, e-governance systems
incorporate security measures. Strong cyber security procedures, secure authentication, and
encryption are all part of this. By guaranteeing that technology is available to all citizens, e-
governance seeks to close the digital gap. Online services that are inclusive of a wide range of
people, including those with limited access to technology, are attempted to be offered.
Robust cyber security protocols, an ongoing commitment to improvement, and an IT
infrastructure are necessary for the successful deployment of e-governance. Even though e-
governance has many advantages, to fully realize these benefits, issues including data security,
digital literacy, and assuring inclusion must be resolved. E-governance continues to be a vital
and dynamic component of contemporary public administration, even as technology advances.
MEANING
The use of information and communication technologies (ICTs) in the management and
provision of public services, as well as in the communication between the government and its
different stakeholders, is known as electronic governance, or e-governance. Using digital

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technologies and platforms to improve the efficacy, efficiency, accessibility, and transparency of
governmental procedures is the main goal of e-governance. E-governance, put into practice, is
the digitization of traditional government services and the incorporation of technology into
public organizations' day-to-day operations. This covers a broad range of activities, such as data
management, digital communication channels, online service delivery, and the use of technology
to promote citizen engagement. E-governance seeks to enhance decision-making, expedite
administrative procedures, and increase public access to government services through the use of
electronic solutions.
E-governance is a systematic approach to modernizing government by utilizing the potential of
digital tools, not only installing technology for its own sake. Greater accountability is made
possible by this transition, which makes information more accessible to the public and promotes
openness by establishing channels for public review. Additionally, by enabling seamless online
interactions with government services, e-governance promotes a more responsive and citizen-
centric administration.
Effective legislative frameworks, safe information systems, a thorough understanding of
technology, and continuous attempts to close any potential digital gaps are all necessary for the
successful implementation of e-governance. E-governance is still a developing field, always
adjusting to new developments and difficulties to better meet the demands of citizens in the
digital era.
E-GOVERNANCE: A CONCEPT
In the field of public administration and governance, e-government, often known as electronic
governance, is a revolutionary idea. Fundamentally, it encompasses the incorporation of
information and communication technologies (ICTs) into government processes and structures in
order to optimize service delivery, boost productivity, and promote inclusive and transparent
governance.
Important elements of the notion of e-governance consist of:
Digital Transformation: The methodical digitalization and automation of government procedures
is a component of e-governance. This includes a broad range of tasks, such as internal
administrative tasks and the provision of citizen services, with the goal of substituting paper-
based, conventional techniques with electronic ones.

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Citizen-Centric Approach: The emphasis on citizens is a fundamental component of e-

governance. It aims to improve public services' usability, accessibility, and responsiveness to
demands. To make communication between citizens and government entities easier, digital
channels and online platforms are used.
Accountability and Transparency: E-Government encourages accountability by providing the
public with easy access to information regarding government actions, policies, and decisions.
Because citizens are able to examine and hold the government accountable for its activities, this
not only increases public trust but also promotes accountability.
Efficiency and Cost Savings: E-Government helps to improve the efficiency of public service
delivery by automating procedures and cutting paperwork. Through resource efficiency and
improved administrative processes, it also has the potential to result in cost savings.
Analytics and Data Management: E-Government includes effective data management using
digital platforms. Better record-keeping is made possible by this, and government organizations
can also use data analytics to make well-informed decisions and develop policies.
E-government offers avenues for citizen involvement and participation in decision-making
processes, a practice known as participatory governance. It is possible for citizens to voice their
ideas, offer feedback, and participate in policy discussions through online forums, surveys, and
other digital tools.
Security and Privacy: E-Government places a strong emphasis on the adoption of strong
cybersecurity measures to guard against unwanted access and guarantee the privacy and
confidentiality of citizens' information, given the sensitive nature of government data.
The idea of e-governance is dynamic and always changing in tandem with technological
breakthroughs. A comprehensive strategy that includes capacity building, regulatory
frameworks, technology infrastructure, and a dedication to user-centric design is necessary for
its successful execution. E-Government is a key idea in transforming how governments engage
with their constituents and carry out their duties in a world that is becoming more interconnected
as civilizations embrace the digital era.
E-GOVERNANCE, STRATEGIES
Successful e-governance implementation necessitates a strategic strategy that takes into account
a number of policy, engagement, and technological factors. The following are essential tactics
for efficient e-governance.

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Thorough Preparation:
Create a thorough e-governance plan that complements overarching governmental goals.
Prioritize services according to citizen needs and government priorities after identifying the most
important areas for digitization.
Engaging Stakeholders:
Involve all parties involved in the planning and execution process, such as enterprises,
government organizations, individuals, and IT specialists.
Make sure the plan takes into account the various demands and expectations of the many
stakeholders.
User-focused design:
 Give the user's experience first priority while creating e-governance solutions.
 To increase the usability and efficacy of digital platforms, conduct usability tests and obtain
end-user feedback.
Development of Infrastructure:
Invest in a strong IT infrastructure to enable the implementation of services for electronic
governance.
As transaction and data volumes increase, make sure your systems are scalable and safe.
Cooperation:
Encourage the compatibility of various government databases and systems.
To reduce duplication and increase efficiency, make it easier for different government
departments to communicate and exchange data.
Policy and Legislative Framework:
 Create and maintain frameworks for laws and policies to assist e-governance efforts.
 Take care of cyber security, privacy, and data protection concerns to increase public
confidence
in digital services.
Building Capacity:
 Offer government workers training courses to improve their technological and digital
literacy.
 Give public servants the information and abilities they need to oversee and maintain e-
governance initiatives.

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Cyber security Precautions:

 Put strong cyber security procedures in place to protect against online threats and data
breaches.
 Update security procedures often to handle new threats and weaknesses.
Raising Awareness and Promotion:
 Start educating the public about the e-governance services that are available.
 Emphasize the advantages of digital platforms and urge people to use internet services to
make their lives easier.
Observation and Assessment:
 Provide systems for ongoing assessment and observation of e-governance projects.
 To find opportunities for improvement, gather and evaluate usage, satisfaction, and
efficiency statistics.
Inventiveness and Flexibility:
 Encourage government agencies to experiment with new technology and approaches by
 cultivating an innovative culture.
 Remain flexible in response to changing technological trends and make necessary
updates to e-
 governance policies.

PPPs, or public-private partnerships, are:

Investigate joint ventures with the business community to take advantage of their knowledge and
assets when putting e-governance initiatives into action.
Work together on the creation and upkeep of digital platforms with tech businesses.
Governments can improve the viability and effectiveness of their e-governance programs by
implementing these tactics, giving citizens in the digital era easy access to effective, transparent,
and public services.
E- GOVERENCE, SIGNIFICANCE
E-Government: Harnessing Digital Governance's Potential
E-Government, also known as electronic governance, is a revolutionary method of conducting
government business that makes use of information and communication technologies (ICTs) to

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improve public service delivery, expedite administrative procedures, and promote accountability
and transparency. E-Governance emerges as a major force behind the modernization and
democratization of governance institutions around the world in an era characterized by rapid
technological breakthroughs.
Significance of Electronic Governance
Effectiveness and Availability:
Streamlined Procedures: By digitizing and automating administrative procedures, e-
government removes bureaucratic bottlenecks. This lowers the possibility of mistakes while
simultaneously quickening the decision-making process.
Accessibility: Regardless of location or schedule, citizens have unrestricted access to
government services and information. This improves public service delivery's overall efficiency.
Openness and Responsibility:
Open Data: By making open data accessible, e-governance encourages transparency. By
providing citizens with access to information about government operations, spending plans, and
regulations, a culture of transparency and confidence is promoted.
Digital records and audit trails make guarantee that government actions can be tracked back to
their original source. This lessens the likelihood of malpractice and corruption.
Empowerment of Citizens:
Participation: Through forums, polls, and feedback systems, e-government platforms promote
citizen engagement. This makes it possible for people to express their concerns and actively
participate in decision-making processes.
Education and Awareness: Programs pertaining to digital governance frequently incorporate
educational elements to make sure that the public is aware of their rights, obligations, and how
government services operate.
Economy of Cost
Paperless Operations: E-Government lessens the need for paper-based paperwork, which saves
money and protects the environment.
Resource Optimization: Governments can distribute resources more effectively when
operations are automated and digitalized, as this eliminates the need for a lot of manual work.
Worldwide Competitiveness:
Attracting Investment: Countries with strong e-governance programs are frequently thought to

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be more desirable places to invest. Simplified procedures and less red tape assist businesses,
which boosts the economy.
International Collaboration: By offering a safe and effective platform for data sharing and
communication between governments, e-government promotes international collaboration.
Data protection and security:
Cyber security Measures: To safeguard private citizen and government data from online
threats, e-government frameworks come with strong cyber security measures.
Data Privacy: In order to ensure that citizen information is treated properly and ethically,
governments implementing e-government are required to give data protection and privacy top
priority.
To sum up, e-government is a major factor in changing the governing environment. Its
importance stems from the fundamental reform of governance institutions, which makes them
more inclusive, effective, and sensitive to the demands of citizens in the digital era, as well as
from the deployment of technical tools. Adopting e-governance is not an option; rather, it is a
must to move countries toward a future that is more interconnected, accountable, and
transparent.
E-DEMOCRACY
E-Democracy: Fostering Digital Age Inclusive and Participatory Governance.
The integration of electronic methods is causing a fundamental alteration in the concept of
democracy in this era of rapid technical progress. Electronic democracy, also known as e-
democracy, is the result of combining democratic ideals with technology to produce a more
open, transparent, and inclusive system of government. This novel strategy seeks to reinforce the
fundamentals of democratic societies, encourage public participation, and enable informed
decision-making through the use of digital tools and platforms.
Vital Elements of Electronic Democracy:
Increased Involvement of Citizens:
Online Voting: E-Democracy presents the idea of online voting, which enables voters to cast
ballots from a distance. This not only boosts voter turnout but also improves accessibility to the
election process, particularly for people living in remote locations or with mobility impairments.
Digital Consultations: Using digital platforms, governments can conduct consultations and get
public feedback on policy issues. This increases the scope of public participation and makes it

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possible for a wider variety of voices to be heard.

Accessibility of Information
Open Government Data: E-democracy encourages the public's increased access to information
by releasing government data in open formats. An informed public that can actively participate
in decision-making processes is fostered by this transparency.
Digital Literacy efforts: E-Democracy efforts frequently incorporate programs to improve
digital literacy in order to guarantee that all citizens can benefit from digital democracy. As a
result, people are more equipped to use online resources, obtain information, and participate
actively in political discourse.
Civic Engagement through Digital:
Social Media and Civic Platforms: Social media and specialized civic engagement platforms
that offer forums for citizens to converse, argue, and work together on civic concerns are vital to
e- democracy. These forums act as online town halls where people may share ideas and work
together to make decisions.
Electronically started and signed petitions by citizens can draw attention to certain issues and
shape political agendas. E-petitioning provides a direct line of communication between citizens
and decision-makers.
Response of the Government:
Real-Time Feedback: Through e-democracy, governments may get citizen feedback on policies
and services in real-time. By being responsive, governance is made flexible and in line with the
changing demands and expectations of the populace.
Digital Governance Platforms: By offering online services, governments may cut down on
bureaucratic red tape and improve the effectiveness of service delivery. This raises citizen
happiness while also showing a dedication to updating political systems.
Challenges and Considerations:
Digital Divide: A major obstacle to e-democracy is the existence of a divide in which some
groups of people may not have access to the internet or possess low levels of digital literacy. To
guarantee that electronic democratic processes are inclusive, efforts must be made to close this
gap.
Cyber security and Privacy: To preserve voter data and ensure the integrity of election
procedures, e-democracy projects need to give top priority to strong cyber security measures. In

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order to preserve confidence in digital democratic processes, privacy concerns also need to be
taken care of.
To sum up, E-Democracy signifies a paradigm change in how societies interact with democratic
systems. Technology may help create a more educated, involved, and empowered population by
harnessing its power. However, a concerted effort is needed to address obstacles, guarantee
inclusion, and preserve security and privacy norms in order to successfully adopt e-democracy.
E-Democracy, where citizen voices reverberate across digital corridors of participatory decision-
making, is a light for the future of democratic governance as the digital landscape continues to
change. The term "e-governance," or "electronic governance," describes the application of
information and communication technologies (ICTs) to promote efficiency, accountability, and
transparency in the public sector, as well as to enhance and streamline the delivery of
government services. It makes use of digital platforms and tools to make communication
between corporations, citizens, government agencies, and other stakeholders easier. E-
governance eliminates the need for citizens to physically visit government offices by allowing
them to access information and services online. This covers services including submitting tax
returns, obtaining licenses, and renewing permits.
To communicate with the public, corporations, and other government bodies, governments use
digital channels. Social networking sites, internet portals, and email notifications fall under this
category. Using digital databases, e-governance entails the effective administration of public
data. Better data analysis, record-keeping, and decision-making procedures are made possible by
this. By giving citizens convenient access to public data, electronic platforms can improve
accountability. Because citizens can keep an eye on government performance and actions, this
promotes accountability. E-governance promotes citizen involvement in the decision-making
process. Online forums and platforms give people a way to voice their thoughts, offer
suggestions, and take part in open consultations. E-governance can result in cost savings for the
government as well as for the general public by automating procedures and minimizing
paperwork. Administrative chores are streamlined, and less physical infrastructure is required.
To safeguard private information and defend citizens' rights to privacy, e-governance systems
incorporate security measures. Strong cyber security procedures, secure authentication, and
encryption are all part of this. By guaranteeing that technology is available to all citizens, e-
governance seeks to close the digital gap. Online services that are inclusive of a wide range of

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people, including those with limited access to technology, are attempted to be offered.
Robust cyber security protocols, an ongoing commitment to improvement, and an IT
infrastructure are necessary for the successful deployment of e-governance. Even though e-
governance has many advantages, to fully realize these benefits, issues including data security,
digital literacy, and assuring inclusion must be resolved. E-governance continues to be a vital
and dynamic component of contemporary public administration, even as technology advances.’
15.5 PUBLIC-PRIVATE PARTNERSHIP (PPP)

A Public-Private Partnership (PPP) is a cooperative arrangement between a government or

public sector entity and a private sector company. These partnerships are typically formed to
finance, design, implement, and operate projects that are intended to deliver public services or
infrastructure. The key feature of a PPP is that it involves collaboration where both parties share
risks, rewards, and responsibilities associated with the project.

1. Definition of PPP

A Public-Private Partnership (PPP) is a long-term contractual agreement between a

government entity (local, state, or national) and a private sector organization. It is aimed at
providing public infrastructure or services in which both parties contribute resources, expertise,
and share in the outcomes.

 Government (Public Sector): The government is typically responsible for the regulatory
framework, ensuring public service standards, and in some cases, for providing a portion
of the financing.
 Private Sector: The private sector partner often brings in expertise, investment capital,
management capabilities, and efficiency to the project.

2. Objectives of PPPs

 Infrastructure Development: Many public services require large upfront investments in

infrastructure, such as roads, schools, hospitals, and energy supply. PPPs can help
government’s access private capital and expertise to develop and manage these
infrastructure projects.
 Efficiency and Innovation: The private sector is often seen as more efficient and
innovative, bringing advanced technologies, management practices, and operational
efficiencies that may not be available in the public sector.
 Cost Savings: By sharing the financial burden and risks with private partners,
governments can reduce the initial capital outlay, operating costs, and avoid the full
financial burden of maintaining public projects.
 Better Risk Allocation: The private sector may take on certain risks such as construction
delays, cost overruns, or operational inefficiencies, thereby relieving the government
from some of these burdens.

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3. Key Characteristics of PPPs

 Shared Risk: One of the core principles of a PPP is the shared risk between the public
and private sectors. This could be in terms of financial investment, operational
performance, or service delivery.
 Long-Term Contract: Most PPPs are long-term arrangements, often spanning 10-30
years, depending on the complexity and nature of the project. This allows time for the
private sector partner to recover their investment and make a profit.
 Revenue Generation: In many PPP models, the private sector is expected to generate
revenue from the project, often through user fees (e.g., tolls on highways, charges for
public services). Alternatively, the public sector may provide periodic payments to the
private sector partner based on performance or availability of services.
 Performance-based Payments: Payments to the private sector partner are often tied to
specific performance metrics, ensuring that they meet certain service delivery standards.

4. Types of PPP Models

There are several different models for structuring PPPs, depending on the nature of the project
and the distribution of responsibilities between the public and private sectors. Some of the most
common types are:

1. Build-Operate-Transfer (BOT):
 Structure: The private sector builds the infrastructure, operates it for a set period,
and then transfers ownership to the public sector.
 Example: A toll road where the private company builds and operates the road for
25 years before transferring ownership to the government.
2. Build-Own-Operate (BOO):
 Structure: The private partner builds, owns, and operates the infrastructure
indefinitely. The government may regulate the service but does not take
ownership.
 Example: A private company that builds and operates a waste-to-energy plant.
3. Design-Build-Finance-Operate (DBFO):
 Structure: The private sector designs, finances, builds, and operates the facility.
The government pays a periodic fee based on performance.
 Example: A new hospital where the private partner is responsible for construction
and operation for a set number of years.
4. Design-Build-Operate-Transfer (DBOT):
 Structure: Similar to DBFO, but the asset is eventually transferred to the
government after a specified period.
 Example: A bridge where the private company designs, builds, and operates it,
but after a set period, ownership and responsibility for operation are transferred to
the public sector.
5. Public-Private Joint Venture (JV):
 Structure: Both the government and the private sector partner co-own and co-
manage the project, sharing responsibilities and profits.

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 Example: A mixed-use development project where the government and private

companies co-invest, share profits, and manage the development together.

5. Benefits of PPPs

1. Access to Private Capital: Governments can access private sector investment, which is
particularly important when public funding is limited or when public debt is constrained.
2. Improved Service Delivery: With private sector participation, there may be a focus on
efficiency, innovation, and quality, ensuring the delivery of high-quality public services
or infrastructure.
3. Reduced Public Sector Debt: By involving the private sector, governments can avoid
the full financial burden of infrastructure development, thereby minimizing public debt.
4. Transfer of Risk: PPPs allow governments to transfer certain risks to the private sector,
such as construction risks, financing risks, and operational risks.
5. Long-Term Sustainability: Many PPP projects involve long-term planning and a focus
on the sustainability of infrastructure, with the private sector partner ensuring that the
project is well-maintained and efficiently run for the duration of the contract.

6. Challenges and Risks of PPPs

1. Complexity: Structuring a PPP involves significant legal, financial, and regulatory

complexities. The negotiations can take years, and the contracts may be highly detailed,
requiring expertise from both sides.
2. Risk of Cost Overruns: While PPPs are supposed to minimize costs, there is always the
risk of unexpected costs and delays in large infrastructure projects. This can impact the
public sector if they are required to make up any shortfalls.
3. Long-Term Financial Commitments: Governments may become dependent on long-
term contracts with private companies, creating potential financial liabilities in the future
if the project does not perform as expected.
4. Accountability Issues: In some cases, the public sector may lose direct control over the
quality of service delivery or may not be able to easily hold the private sector accountable
if things go wrong.
5. Equity and Accessibility: There can be concerns about whether PPP projects benefit the
broader public or just certain groups, especially if the private sector partner is focused
primarily on profit generation rather than public welfare.
6. Public Opposition: There may be opposition from the public or labor unions if the
private sector’s involvement is seen as a privatization of services that were once publicly
provided.

7. Examples of PPP Projects

 Highways and Toll Roads: Many governments have used PPPs to build and operate toll
roads, with private companies responsible for construction, operation, and toll collection.
 Healthcare: Some countries, including the UK and Australia, have used PPPs for
hospital construction and management, where private companies build and operate
healthcare facilities under government oversight.

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 Education: In some cases, PPPs are used to build and operate schools or universities,
where private companies handle construction and maintenance while governments
provide educational services.
 Energy: Some energy infrastructure projects, such as power plants or renewable energy
projects, are developed through PPPs, where the private partner invests in the
construction and operation of the facility, and the government purchases the energy
produced.

15.6 Public-Private Partnership (PPP) Mode in Infrastructure and Development:

In the context of infrastructure projects, PPP mode refers to a collaborative arrangement

between the public sector (government) and the private sector (businesses, corporations) to
finance, build, and operate infrastructure projects. This mode is commonly used for large-scale
infrastructure projects like highways, hospitals, airports, energy plants, or even urban
development.

Key features of PPP mode:

 Risk-sharing: The risks and rewards of a project are shared between the government and
the private sector. The private partner typically handles the construction and operation,
while the government ensures that regulatory and policy frameworks are in place.
 Funding: The private sector often provides the funding upfront, while the government
may contribute in terms of land or policy support. The private sector can recover the
investment over time through user fees (tolls, service charges) or revenue-sharing models.
 Long-term collaboration: PPPs are often structured as long-term contracts that span
several decades (e.g., 20-30 years) to ensure that both the private and public sectors share
the benefits and responsibilities.

Example:

 A government might partner with a private company to build a high-speed rail network.
The private company would finance and build the network, while the government ensures
the land acquisition and regulatory approval. Over time, the private company might
recover its costs through ticket sales, with the government ensuring that the service is
accessible and affordable.

PPP Mode in Healthcare:

In healthcare, a PPP can be a strategic model used to deliver public health services with
private-sector efficiency and investment.

 Example: Governments might work with private healthcare providers to build and
operate hospitals, clinics, or diagnostic centers in under-served regions. The private
partner may provide medical equipment, infrastructure, and management expertise, while
the government ensures public access, quality standards, and regulation.

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 Example of healthcare PPP in action: The Indian government's National Health

Mission partnered with private entities to set up primary healthcare centers, bringing
private-sector expertise to improve healthcare access in rural areas.

PPP Mode in Education:

Public-Private Partnerships in education involve collaborations between government entities and

private companies to enhance educational infrastructure, introduce new technologies, or improve
overall access to education.

 Example: A state government might work with a private company to build a school
infrastructure and provide digital learning platforms. The government ensures that the
schools meet public needs, while the private partner provides the expertise, training, and
technology solutions.

. PPP Mode in Environmental Projects:

PPP models are also used for environmental initiatives, where private companies work with
public entities to manage natural resources, control pollution, or implement sustainable
development goals.

 Example: In water management, a city government might partner with a private

company to develop a new wastewater treatment plant. The private company handles
the construction, operation, and maintenance of the plant, while the public sector enforces
environmental regulations and monitors compliance.

PPP Mode in Digital Infrastructure:

In some cases, PPP mode is applied in the development of digital infrastructure, such as
broadband networks, data centers, or 5G rollouts. This can help bridge the digital divide by
ensuring that underserved areas have access to advanced technologies.

 Example: A government may partner with a telecommunications company to expand

internet access in rural or remote areas. The government may provide the regulatory
framework and a portion of the funding, while the private partner builds and operates the
network.

Benefits of PPP Mode:

 Efficient Use of Resources: Governments can leverage private-sector efficiency,

expertise, and funding for large infrastructure projects without having to burden
taxpayers or rely solely on public funding.
 Risk Sharing: Private companies are often better positioned to handle certain risks
(construction delays, cost overruns) because they have more experience and resources.

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 Innovation: The private sector often brings innovative solutions, technologies, and
management practices to the table, improving the overall quality and efficiency of
projects.
 Timely Completion: Public-private partnerships can often result in faster
implementation of projects since private partners have incentives to deliver results
quickly and efficiently.

Challenges and Criticisms of PPP Mode:

 Public Accountability: There is sometimes a lack of transparency in PPP deals, leading

to concerns over public funds being misused or unfairly allocated to private companies.
 Long-Term Costs: While PPPs can reduce initial costs, governments may find that they
end up paying more in the long run due to the profits required by private sector partners
or overly favorable terms in contracts.
 Quality Concerns: In some cases, private companies might focus on profit
maximization rather than the long-term benefits of public welfare, potentially leading to
lower quality services or higher user fees.
 Complexity: Designing and managing a PPP is often complex, requiring highly skilled
project management and legal oversight. If not well-managed, a PPP may face significant
operational issues.

ASSESSMENT:
PPP mode, in its various applications, is a strategy that allows governments to leverage private-
sector investment and expertise to fulfill public needs without incurring significant upfront costs.
It’s most commonly seen in infrastructure, healthcare, education, and environmental projects but
can be applied across various sectors. The effectiveness of a PPP often depends on the structure
of the partnership, the fairness of the agreement, and the ability to balance both public and
private sector interests.

15.7 Summary
E-Governance refers to the use of Information and Communication Technology (ICT) by
governments to improve the delivery of services, enhance transparency, streamline operations,
and engage citizens more effectively. It involves the digitalization of government processes and
services, enabling better interaction between the government, citizens, businesses, and other
stakeholders.

E-Governance

E-Governance is the application of electronic means, particularly the internet, to the

administrative functions of government, to enhance the efficiency, transparency, and
accountability of public sector institutions. It can also be defined as the digital transformation
of government services, where government operations are accessible online, and interactions are
often conducted through web-based platforms.

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Objectives of E-Governance

E-Governance aims to achieve several goals related to improving governance, administrative

processes, and public service delivery:

 Improved Service Delivery: Streamlining government processes and making public

services more accessible and efficient for citizens.
 Transparency: Ensuring openness in government activities, where citizens have easy
access to information, reducing corruption and increasing trust in public institutions.
 Accountability: Enhancing the responsibility of public servants by tracking actions and
services provided, with mechanisms for reporting grievances.
 Citizen Participation: Facilitating better citizen engagement through online platforms,
surveys, or social media, allowing for more democratic decision-making.
 Cost Efficiency: Reducing operational costs for governments by automating processes
and reducing the need for physical infrastructure and in-person transactions.
 Access to Information: Providing easy access to public information, which helps in
making informed decisions, planning, and policy formulation.

Public-Private Partnerships (PPPs) offer a way for governments to leverage private sector
expertise, innovation, and investment to deliver public infrastructure and services. When
structured correctly, they can lead to efficiency, cost savings, and improved service delivery.
However, PPPs are not without their challenges, including complexity, risk-sharing, and long-
term commitments. It is essential for both public and private sector partners to have clear
agreements and expectations in place to ensure that PPPs deliver value for money and meet
public needs.

15.8Key Words

PPP mode A Public-Private Partnership (PPP) is a cooperative

agreement between a government and a private company to
finance, build, and operate projects typically associated with
public infrastructure, services, or utilities. The "mode" of
PPP can vary depending on how the roles, responsibilities,
and risks are shared between the two parties.

PPPs are often used for large-scale infrastructure projects that

require substantial investment, like building roads, hospitals,
schools, energy plants, and even IT systems. The key is that
both the public and private sectors contribute expertise,
financing, and management.

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15.9 Model Questions

1. Discuss the meaning and the concept of Electronics Governance.
2. Explain the Strategies of the E-Governance.
3. What the link in between the E-Democracy and the Electronics Governance.
4. Write shortly the vital Elements of the E-Democracy.
5. Narrate shortly the Challenges and Considerations about the E-Democracy.
15.10 References
 Acharya, B.K. (2018) ABC of E-Governance, Cuttack, AKBM.
 Bhel, N.K. (2019) Concept of E-Governance, Raipur, GRP.
 Chand, S.K. (2017) Strategy of E-Governance, Kolkata, VBP.
15.11 Additional Readings
 Dhār, B.B. (2019) Strategy of E-Governance, Bhilai, Alok BP
 Lenchi, A.M, (2020) E-Democracy, London, Springer.

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Unit-16: State vs. Market Debate

Structure:
16.0 Learning Objectives
16.1 Introduction
16.2 State-Market Relationship in Public Administration
16.3 Impact of Globalization on the Role of the State in the State-Market Relationship
16.4 Summary
16.5 Key Words
16.6 Model Qquestions
16.7 References
16.8 Additional Readings

16.0 LEARNING OBJECTIVES

After reading this chapter, the learners will be able to explain:
 State-Market Relationship in the era of Globalisation

16.1 INTRODUCTION

Globalization has fundamentally altered the state-market relationship by reducing state

sovereignty, expanding the influence of multinational corporations, and shifting governance
toward global institutions. States are increasingly constrained by international economic forces
BUT ALSO HAVE NEW OPPORTUNITIES FOR GROWTH AND COLLABORATION. THE
CHALLENGE FOR MODERN PUBLIC administration is finding a balance—ensuring that the
market remains competitive and innovative while also protecting public interests, reducing
inequality, and ensuring sustainable development. The role of the state in this new globalized
world is one of balancing regulation, collaboration, and innovation, all while remaining
responsive to its citizens.

16.2 States-Market Relationship in Public Administration

The state-market relationship refers to the dynamic and often complex interaction between
government (the state) and private enterprises (the market) within an economy. The relationship
between the state and the market has evolved over time and can be understood as a spectrum,
with varying degrees of government intervention, regulation, and privatization.

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This relationship plays a central role in shaping economic policies, public administration
practices, and governance structures.

1. The Role of the State in the Market

The state can play a key role in regulating, guiding, and influencing market activities. The state
has the responsibility to set the rules for the market, correct market failures, and ensure that
the market functions in a way that benefits society as a whole. Key roles of the state include:

1.1 Regulation and Oversight

 Regulation refers to the laws, rules, and standards set by the government to control the
functioning of the market. These regulations can be related to consumer protection,
antitrust laws, labor rights, environmental protection, taxation, etc.
 For example, the government might enforce rules to prevent monopolies or
cartels, ensuring that no company can dominate the market at the expense of
competition and consumers.

1.2 Provision of Public Goods and Services

 The state provides goods and services that the market may not efficiently supply, known
as public goods (e.g., national defense, public education, healthcare, infrastructure).
o The government ensures the equitable provision of these goods, even if they are
not profitable for private enterprises to supply. Public goods often have
characteristics like non-rivalry (one person's use doesn't diminish another's) and
non-excludability (people can't be excluded from using them).

1.3 Redistribution of Wealth

 The state is also responsible for ensuring economic equity. Through taxation policies
and social welfare programs (e.g., unemployment benefits, pensions, healthcare), the
government redistributes resources to reduce income inequality and poverty.

1.4 Correcting Market Failures

 A market failure occurs when the market, on its own, fails to allocate resources
efficiently or equitably. The state intervenes to correct these failures, such as:
 Monopolies and Oligopolies: Government regulation ensures competition and
prevents monopolies that can exploit consumers.
 Externalities: Markets often fail to account for external costs (e.g., pollution) or
benefits (e.g., public health). The state steps in to regulate these externalities, often
through taxation or regulation.
 Public Health and Safety: The state might intervene to ensure health and safety
standards are met in industries like food, pharmaceuticals, and construction.

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2. The Role of the Market in the State

The market also plays a crucial role in the functioning of the state. The market creates wealth,
drives innovation, and provides goods and services that are essential to the economy and society.
Here are the key functions of the market in the state:

2.1 Driving Economic Growth

 The market is a key engine of economic growth and development. Through private
enterprise, competition, and consumer demand, the market drives innovation and
efficiency. As businesses innovate and improve, they contribute to higher productivity
and, by extension, economic growth.

2.2 Employment and Income Generation

 The market creates job opportunities and income through private enterprises. The
private sector generates employment, provides wages, and contributes to the national
income, all of which the state can tax to fund its operations.

2.3 Efficiency and Innovation

 The competitive nature of markets often leads to increased efficiency and innovation.
Private companies strive to offer the best products at the lowest prices, which benefits
consumers and promotes technological advancements.
o For example, the market often drives technological innovations, such as in the
field of information technology, medicine, and renewable energy.

2.4 Private Sector Investment

 The market brings in private investment, which the government often uses for
infrastructure development, public-private partnerships (PPPs), and joint ventures.
Governments can leverage market resources to fund public projects or services.

3. THEORIES OF STATE-MARKET RELATIONS

The state-market relationship can be understood through various theoretical frameworks. These
frameworks describe how the state and market interact, and the balance of power and
intervention between the two.

3.1 Classical Liberalism (Market-Led Approach)

 Classical liberal theory advocates for minimal state intervention in the economy. It
emphasizes that the market should be left to operate freely, with limited government
involvement. The state’s role is primarily to protect property rights, enforce contracts, and
maintain law and order.

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 Adam Smith, the founder of classical economics, proposed that the "invisible
hand" of the market would naturally lead to the most efficient and beneficial
outcomes, without the need for excessive regulation.

3.2 Keynesianism (State-Led Approach)

 John Maynard Keynes argued that the market could not always regulate itself
effectively, particularly during economic downturns. In such situations, the state must
play an active role in managing the economy through fiscal policies (e.g., government
spending) and monetary policies (e.g., controlling interest rates).
 Keynesianism advocates for state intervention to boost demand during recessions,
stimulate investment, and address unemployment.

3.3 Neoliberalism (Market-Centric with Limited Regulation)

 Neoliberalism emphasizes the importance of free markets, deregulation, privatization,

and reduced government spending. It advocates for reducing the role of the state and
enhancing the role of the private sector.
o Neoliberal policies often focus on cutting public expenditures, privatizing state-
owned enterprises, and promoting global trade liberalization.

3.4 Socialism (State-Controlled Market)

 Socialism advocates for substantial state control over the economy. In this model, the
government owns and operates key industries (such as healthcare, energy, and
transportation) and regulates other sectors tightly.
o The state plays an active role in wealth redistribution and social welfare, aiming
to reduce economic inequality and promote social justice.

3.5 Public-Private Partnership (PPP) Model

 In a PPP model, the state and private sector collaborate to provide public services or
infrastructure. The government retains oversight and ensures that public goals are met,
while the private sector provides capital, expertise, and efficiency.
o Common examples of PPPs include toll roads, public transportation systems,
and healthcare facilities.

4. Shifts in the State-Market Relationship

The relationship between the state and market has undergone several shifts, influenced by
changing political ideologies, economic needs, and social demands:

4.1 The Welfare State (Mid-20th Century)

 Following World War II, many countries, particularly in Europe, embraced the welfare
state model, where the state took on a larger role in providing social services (e.g.,
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healthcare, education, pensions) and regulating the economy. This era was characterized
by state intervention to promote social equity and reduce poverty.

4.2 The Rise of Neoliberalism (Late 20th Century)

 From the 1980s onward, many countries shifted toward neoliberal policies, embracing
market-driven reforms and reducing state intervention. Governments privatized state-
owned industries, deregulated markets, and promoted free-market capitalism as the key
driver of economic growth.

4.3 The Return of State Intervention (2008 Financial Crisis)

 The 2008 global financial crisis led many governments to intervene in the market on a
massive scale, bailing out failing banks and industries to prevent widespread economic
collapse. This period saw a return to Keynesian economic practices, with increased
government spending and regulation.

4.4 Emerging Model of Digital Governance

 With the rise of the digital economy, new models of governance are emerging, where the
state uses digital platforms to engage with the market and citizens, improve service
delivery, and create innovative public-private partnerships in areas like e-governance,
digital health, and fintech.

5. The Contemporary Debate: Balancing State and Market

The question of how much control the state should exert over the market remains an ongoing
debate in public administration. Both excessive state control and a laissez-faire approach can
result in inefficiencies and inequalities. The contemporary goal is to find a balance where:

 The market can function efficiently, encourage innovation, and generate wealth, while
 The state ensures social welfare, regulates the market to prevent abuses, and addresses
issues like inequality, environmental sustainability, and public health.

For example, governments in many countries have embraced mixed economies—a blend of
market forces and state regulation—to strike a balance between economic growth and public
welfare.

16.3 Impact of Globalization on the Role of the State in the State-Market Relationship
Globalization refers to the increasing interconnectedness of the world’s economies, cultures, and
societies, driven by advancements in technology, trade, and communication. It has profound
effects on how states interact with markets and the role of government in regulating, guiding, and
facilitating economic activities. The impact of globalization on the state-market relationship
has been multifaceted, shifting both the power dynamics and the responsibilities of states.

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1. Erosion of State Sovereignty

One of the most significant impacts of globalization is the erosion of traditional state
sovereignty. As the global economy becomes more integrated, national governments face
increasing pressure from external forces—such as international organizations, multinational
corporations, and global market trends—leaving them with less autonomy to shape domestic
economic policies.

 Trade Liberalization: Global trade agreements (e.g., WTO agreements, regional trade
blocs like the EU or ASEAN) require states to reduce trade barriers (tariffs, quotas, etc.),
opening their markets to foreign competition. This has reduced the state’s ability to
protect domestic industries and jobs.
 Investment Flows: Increased capital mobility means that states often have to offer
favorable conditions to attract foreign direct investment (FDI). This may include tax
breaks or deregulation, which limits state control over key sectors.
 Influence of Global Financial Markets: Financial crises (e.g., the 2008 global financial
crisis) demonstrated how interconnected global markets can impact national economies.
States may face challenges in managing economic policy in a globalized economy where
financial flows are driven by speculative investments rather than domestic policy goals.

2. Reduced Policy Space for States

As a result of globalization, states often face restrictions on their ability to craft independent
economic and social policies. The following are some of the ways states' policy space is
affected:

 Privatization and Deregulation: In many instances, global pressures lead states to

privatize public assets or deregulate key sectors (e.g., telecommunications, energy, and
transport) to attract foreign investment and remain competitive in the global market. This
reduces the state's control over sectors that were traditionally under public ownership or
regulation.
 Global Economic Constraints: International financial institutions, like the
International Monetary Fund (IMF) and World Bank, often impose conditions on
countries in exchange for loans or assistance, which may involve austerity measures, cuts
to social programs, and market-friendly reforms. These external influences constrain the
state's ability to make decisions that prioritize domestic welfare.
 International Standards and Agreements: Globalization has led to an increase in the
number of international treaties and agreements that restrict or dictate certain policies
(e.g., trade agreements, environmental regulations). For example, the Paris Climate
Agreement imposes restrictions on emissions that affect domestic energy policies, which
can limit the state's freedom to choose its economic development path.

3. Rise of Multinational Corporations (MNCs) and Their Impact on State Role

Globalization has significantly enhanced the power and influence of multinational corporations
(MNCs). These corporations often have more resources and global reach than many national
governments, and their influence over domestic markets can limit the state's role.

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 Market Dominance: Large MNCs can dominate key industries (e.g., tech,
pharmaceuticals, oil, finance), often overshadowing domestic companies. These
companies can influence national policy by leveraging their economic importance,
sometimes pressuring governments to adopt policies that are favorable to their interests.
 Regulatory Capture: As MNCs grow in power, they can exert significant pressure on
governments to reduce regulations that could impact their operations. This phenomenon,
known as regulatory capture, can lead to states adopting policies that prioritize
corporate profits over public welfare.
 Tax Evasion: Globalization has made it easier for MNCs to move capital and profits
across borders. Tax competition between states to attract multinational corporations often
leads to tax havens and reduced government revenues. This diminishes the state’s ability
to fund public goods and services.

4. Increased Focus on Global Governance and International Institutions

Globalization has shifted the state-market relationship in favor of global governance and
international institutions, which are becoming increasingly important in setting economic rules.

 International Organizations: Institutions like the World Trade Organization (WTO),

the International Monetary Fund (IMF), and the World Bank have become key
players in shaping economic policies globally. These institutions often shape the
regulatory environment and standards to which countries must adhere, reducing national
control over domestic markets.
 Regulatory Harmonization: Globalization requires states to harmonize regulations and
standards (e.g., in intellectual property, labor rights, environmental standards) with
international norms, which can limit the ability of governments to set policies tailored to
local conditions.
 Global Environmental Agreements: The state’s role in regulating markets has also
expanded globally through initiatives like the United Nations Framework Convention
on Climate Change (UNFCCC) and World Health Organization (WHO), which
address transnational issues such as climate change and global health crises, impacting
national policies.

5. Technology and Innovation Driving Market Dynamics

The rapid growth of technology and innovation, fuelled by globalization, has transformed
markets and the role of the state in overseeing them. Technological advancements such as the
internet, artificial intelligence (AI), and block chain have both facilitated market expansion and
posed new challenges for state regulation.

 Digital Economy: The rise of the digital economy has led to new market actors—such
as tech giants (e.g., Google, Amazon, Facebook)—whose business models transcend
national borders. These global companies often evade domestic regulation, leaving states
with the challenge of applying national laws to multinational digital platforms.
 E-Governance and Digital Transformation: States are increasingly adopting e-
governance to enhance transparency, efficiency, and service delivery. However, they

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must also regulate emerging technologies (e.g., AI, block chain, big data) to ensure that
market participants do not exploit vulnerabilities, such as privacy violations or
monopolistic practices.
 Disruptive Innovations: Technological innovations are disrupting traditional industries
(e.g., in transportation with ride-sharing apps, or in banking with fintech). States may
struggle to regulate these new industries effectively while simultaneously encouraging
innovation and economic growth.

6. Changes in Social and Economic Inequalities:

Globalization has exacerbated economic inequality, both within and between countries,
affecting the state’s role in addressing social justice and economic redistribution.

 Increased Inequality: Globalization has often benefited multinational corporations and

skilled workers in developed countries, while leaving many workers in traditional sectors
(e.g., manufacturing, agriculture) or developing nations at a disadvantage. This has
increased income inequality within countries.
 Weakened Welfare States: In many cases, globalization has led to austerity measures
and cuts to welfare programs as governments attempt to remain competitive in the global
market. The state’s traditional role in ensuring economic redistribution and social safety
nets has been undermined, leading to rising poverty and social unrest.
 Global Poverty: While globalization has lifted millions out of poverty, it has also
deepened inequality in many developing countries, where economic growth has not
always translated into shared prosperity. This has led to calls for the state to play a more
active role in redistribution and in protecting vulnerable groups.

7. Globalization and the Changing Role of the State in Public Administration

In light of globalization, the role of the state in public administration is shifting:

 Regulatory Evolution: The state now must focus on creating policies that are flexible
enough to accommodate global markets while still safeguarding the public good. This
includes regulating international trade, ensuring environmental sustainability, and
tackling global challenges like climate change.
 Public-Private Partnerships (PPPs): Globalization has increased reliance on public-
private partnerships for infrastructure development and service delivery. These
collaborations allow governments to leverage private sector expertise and funding while
ensuring that public interests are met.
 Enhanced International Collaboration: Governments are increasingly involved in
multilateral diplomacy, negotiating treaties and agreements that address global issues
such as trade, climate change, and human rights. As markets become more
interconnected, states must collaborate more closely to address transnational challenges.

16.4 Summary
The relationship between the state and the market is dynamic and evolving. Historically, the
balance between the two has fluctuated based on political ideologies, economic conditions, and
social priorities. Whether through regulation, welfare, or market-driven solutions, both the state

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and the market play complementary roles in shaping modern economies. The challenge lies in
finding the right equilibrium that fosters both economic growth and social well-being.

16.5 Key Words

State-market relations. This term is commonly used in political economy to describe

the relationship between the state (government) and the
market (economic systems, businesses, and consumers) in a
given society. In essence, it's about how the government
influences, regulates, and interacts with the broader market or
economy, and how the market (and the private sector)
impacts the state's policies, growth, and stability.

16.6 Model Questions

1. Examine State –Market Relationship in the age of Globalisation.
16.7 References
 Baylis, J., Smith, S. (1999), The Globalization of World Politics: An Introduction to
International Relations, 1 st edition, Oxford: Oxford University Press.
 Bello, Walden (2004), Deglobalization: Ideas for a New World Economy, London: Zed
Books Publication.
 Bhagwati, Jagdish (2007), In Defense of Globalization with a New Afterword, New York:
Oxford University Press.
 Brown, C., Ainley, K. (2009), Understanding International Relations, 4 th edition,
Basingstoke: Macmillan.
 Cable, V. (1999), Globalization and Global Governance, London: The Royal Institute of
Affairs.
 Held, D. and McGrew, A. (eds) (2003), The Global Transformations Readers: An
Introduction to the Globalization Debate, Second edition, Cambridge: Polity Press.
 Heywood, A. (2007), Politics, 3rd edition, Basingstoke: Macmillan.
16.8 Additional Readings
 Lawson, Stephanie (2017), International Relations, Third Edition, Cambridge: Polity

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 Press. Mingst, Karen (1999), Essentials of International Relations, New York and
London:W.W. Norton & Company.
 Shaw, M. (2000), Theory of the Global State: Globality as an Unfinished Revolution,
Cambridge: Cambridge University Press.
 Stiglitz, Joseph (2002), Globalization and Its Discontents, London: Penguin Books Limited.
 Sutch, Peter and Juanita Elias (2007), International Relations: The Basics, London and New
York: Routledge Publication.

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