Beruflich Dokumente
Kultur Dokumente
1.1
1.2
10
1.3
17
1.4
22
1.5
29
1.6
54
1.7
58
1.8
62
1.9
Paradigms
66
1.10
74
1.11
95
1.12
99
1.13
119
1.14
123
1.15
Outlines
133
1.16
196
2.1
Keynesian Economics
211
2.2
220
2.3
232
2.4
The Sarbanes-Oxley Act of 2002; Audit and Governance of Not for Profit Organizations
249
2.5
258
2.6
260
2.7
284
Organization Theory
3.1
294
3.2
299
3.3
304
3.4
321
3.5
329
3.6
Literature Reviews
347
3.7
455
3.8
456
3.9
459
3.10
462
3.11
463
3.12
467
Public Budgeting
4.1
469
4.2
Budgeting Theory
475
4.3
505
4.4
Budgeting Terms
510
4.5
524
4.6
526
4.7
548
4.8
558
5.1
598
5.2
601
5.3
602
5.4
609
5.5
610
5.6
Policy Implementation
611
5.7
619
5.8
622
5.9
Policy Models
625
5.10
630
5.11
632
5.12
634
5.13
635
640
710
727
747
10
771
11
820
Chapter 1
Public Administration
History & Theory
of
organizational
and
programmatic
performance.
(Scorecards,
Performance Improvement)
Bureaucracy - Weber (1946, pg. 50) in his landmark article, Bureaucracy lists 6
characteristics of a bureaucracy:
1. There is a principle of fixed and official jurisdictional areas, which are generally
ordered by rules, that is, by laws or administration regulations,
2. The priniciples of office hierarchy and of levels of graded authority mean a
firmly ordered system of super- and subordination in which there is a
supervision of the lower offices by the higher ones,
3. The management of the modern office is based upon written documents (the
files), which are preserved in their original or draught form,
4. Office management, at least all specialized office managementand such
management is distinctly modernusually presupposes thorough and expert
training,
5. When the office is fully developed, official activity demands the full working
capacity of the official, irrespective of the fact that his obligatory time in the
bureau may be firmly delimited,
6. The management of the office follows general rules, which are more or less
stable, more or less exhaustive, and which can be learned.
He also comments on the position of the Official:
1. Office holding is a vocation,
2. The personal position of the official is patterned in the following way:
a. enjoys a distinct social esteem as compared with the governed,
b. pure type of bureaucratic official is appointed by a superior authority
c. normally, the position of the official is held for life
2|Page
HIGH C ITIZENSHIP
LOW ADMINISTRATION
HIGH ADMINISTRATION
LOW
ANCIENT A THENS
ANCIENT ROME
HIGH
ADMINISTRATION
MODERN AMERICA
ANCIENT EGYPT
ADMINISTRATION
LOW ADMINISTRATION
HIGH ADMINISTRATION
LOW C ITIZENSHIP
LOW C ITIZENSHIP
LOW CITIZENSHIP
Table 1: Frederickson model for citizen vs. administrative participation in government
3|Page
balancing the needs and interests of individuals and groups on the one hand with the
community on the other.
Complementarities: political-administrative relations
Svara stated that political superiors and administrators were commonly thought of as
strictly separated, but there is considerable evidence that they interact extensively in a
complementary relationship with each providing important contributions to the other.
In nonprofit organizations, the interaction and shared involvement is widely
recognized. This model is in contradiction to the classic politics-administrative
dichotomy.
Svara
and
Brunet
list
characteristics
that
demonstrate
complementarities:
1. political superiors and administrators maintain distinct perspectives based
upon unique values and differences in formal positions,
2. officials have partially overlapping functions as political superiors provide
political oversight of administration and administrators are involved in policy
making, and
3. there is interdependency and reciprocal influence between political superiors
and administrators; each impacts the other.
The balance between the two sets of officials depends upon administrators meeting
certain obligations including:
1. should support the law, respect political supremacy, and acknowledge the need
for accountability. They should be loyal to the mission of their organization,
2. since administrators serve the broadest of public interests, it may bring them
into conflict with political superiors and segments of the public,
3. take responsibility for their actions,
4. should be independent with a commitment to professional values and
competence,
5. should be honest in their dealings with elected officials and deal ethically,
6. should encourage political superiors to fulfill their responsibilities.
Democracy
4|Page
Raadschelders said that democracy as rule (in Greek, krateoo) by the people (in Greek,
demos) is institutionalized as a particular division of labor between public and private
institutions as well as a division of labor between public servants and citizens.
The
first division of labor refers to the balance between government intervention and selfgovernance. The second concerns the balance between direct citizen participation and
indirect citizen participation. A representative democracy requires the voluntary
support of all its citizens. The citizenry is the largest possible clientele a government
can have and thus the challenge is meeting its varying needs.
In contrast, a
argued that public appointments should be based upon fitness and merit, rather than
partisanship, necessitating that politics was out of place in public service. Wilsons
other main themes was that public administration should be premised on a science of
management (productivity and efficiency) and separate from traditional politics.
Goodnow suggested that modern administration presented a number of dilemmas
involving political and administrative functions that had supplanted the traditional
concern with the separation of powers among the various branches of government.
Politics and administration could be distinguished, he argued, as the expression of
the will of the state and the execution of that will.
function of political decision making and administration was legally separated, there
developed a tendency for the necessary control to develop extra-legally through the
political party system.
Internalized/External control: complexities of accountability
Jensen and Meckling defined an agency relationship under which one or more persons
(the principal(s) engage another person (the agent) to perform some service on their
behalf which involves delegating some decision-making authority to the agent. If both
parties to the relationship are utility maximizers there is good reason to believe that
the agent will not always act in the best interests of the principal. The principal can
limit divergences from his interest by establishing appropriate incentives for the agent
5|Page
and by incurring monitoring costs designed to limit the aberrant activities of the
agent. In addition, he may pay the agent to expend resources to guarantee that he will
not take certain actions that would harm the principal or to ensure compensation if he
is harmed.
hierarchical lines of authority and the mechanisms of command and control, the new
forms of action utilize decentralized modes of operation and the techniques of
bargaining and persuasion.
New Public Administration (NPM)
New public administration emerged from the Minnowbrook Conference on New Public
Administration.
equity to the classic objectives and rationale for public administration of efficient,
economical, and coordinated management of education, police, public health, fire
departments, welfare, diplomacy, the military, etc.
during the late 1960s and early 1970s distinct from new public management. Hood
pointed that NPM was an international trend in public administration that began in
about 1975. NPMs rise was linked to four other megatrends:
1. attempts to slow down or reverse government growth,
2. the shift to privatization and quasi-privatization,
3. the development of automation, particularly information technology, and
4. the development of a more international agenda.
Hood stated that NPM is a loose term but there are seven doctrinal components of new
public management :
1. Hands-on professional management
2. Explicit standards of and measures of performance
6|Page
NPM efforts were mainly in the direction of cutting costs and doing more for less as a
result of better-quality management and different structural design.
Professionalism
Frederickson suggested a model that relates citizenship to professionalism in public
administration:
High Citizenship
Characterized
living
High C
High P
by
Characterized by living
with
with
sensitivity to the
consequences
interactions
standard
community standards
Trusteeship
Civic friendship
by
to
with
others
Characterized
sensitivity
professional
of
Low Citizenship
High Professionalism
Low C
Low P
Low Professionalism
Characterized by living
interest
with
and
competitive
individualism
less
regard
for
professional standards
Technocracy
Entrepreneurship
Table2: Frederickson model - citizenship to professionalism in public administration
Rational actor
7|Page
NJ:M.E. Sharpe.
Salamon, L. M. (1989). Beyond privatization: The tools of government action. Washington, D.C:
Urban Institute Press as quoted in Frederickson: The spirit of public administration.
Svara, J. (2007).
8|Page
Weber, M. (1946). Bureaucracy. In From Max Weber: Essays in Sociology, ed. H.H. Gerth and
C. Wright Mills. Oxford University Press. In Classics of Public Administration.
Wilson, W. (1887).
9|Page
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1850 John Stuart Mill: Explained concepts such as span of control, unity of
command, and wage incentives.
1856 Daniel C. McCallum: On October 5, 1841 two American passenger trains
collided head-on, making it clear that one boss could not watch everything. A welldefined
organizational
structure
was
needed,
and
McCallum
developed
the
Office.
1922 Max Weber: The German sociologist articulated the classical definition of the
bureaucratic form of organization. (Was not translated and published in the United
States until after World War II.)
1923 Classification Act: Began the rationalization of position classification in the
federal service.
1927 Elton Mayo: Began the famous management study at the Hawthorne Works of
the Western Electric Company near Chicago which examined the relationship between
work environment and productivity. These studies were the genesis of the human
relations school of management thought.
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threatened.
1946 Paul Appeleby: Asserted that processes in government organizations are
political - at least more than those in business organizations. Philip Selznick, Norton
Long, and other writers of the late 1940's were to add theoretical and empirical
support to Appeleby's most un-Wilsonian (1887) thesis.
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1947 Herbert A. Simon: In his classic Administrative Behavior, Simon, like Merton
(1940), attacked the principles approach to management as often being inconsistent
and inapplicable. Like Barnard (1938) and influenced by him, Simon advocated a
systems approach to administration and the study of decision making.
1949 Norbert Wiener, Claude Shannon and P.M.S. Blackett: Emphasized systems
analysis, operations research, and information theory in management.
1955 Herbert Kaufman, Fred W. Riggs and Walter R. Sharp: First course on
comparative administration introduced at Yale University.
poplarized a humanistic
managerial philosophy.
1959 Charles A. Lindblom: In his influential essay, "The Science of
Muddling
Kennedy:
Issued
Executive
Order
10988
which
permitted
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1964 Robert R. Blake and Jane S. Mouton: Proposed that every leader could be
categorized in terms of two variables: concern for task and concern for people. Blake
and Mouton's Managerial Grid was perhaps the best known of dozens of adaptations
of this idea, which could be traced back to the Ohio State University leadership
studies of the 1940's.
1965 Charles J. Hitch and Roland N. McKean: In the same year that President
Johnson
ordered
Planning-Programming-Budgeting
Systems
(PPBS)
adopted
The
methods of the social sciences to the analysis and evaluation of government programs.
1967 Anthony Downs: Applied economic principles to develop propositions to aid in
predicting behavior of bureaus and bureaucrats. A forerunner of the public choice
approach to decision making.
1967 Yehezkel Dror: Pioneered in the development of policy sciences (that is, the
analysis of the anticipated effects of a public policy and
New
Jersey
Graduated
Work
Incentive
Experiment:
This experiment
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1972 Equal Employment Opportunity Act: Amended and applied Title VII of the
Civil Rights Act of 1964 to the public sector and authorized the use of "affirmative
action" to remedy the results of past dsicrimination.
1972 Griggs v. Duke Power: In this landmark opinion based on Title VII of the Civil
Rights Act of 1964, the United States Supreme Court ruled that any factor used in an
employment decision must be a bona fide occupational qualification (BFOQ) related
to the actual performance of the work.
1976 Peter F. Drucker: Addressed the problems of using management-by-objectives a process of mutual goalsetting between employee and supervisor for purposes of
planning and evaluation - in the public sector.
1978 Civil Service Reform Act: Significantly reorganized the Federal Civil Service.
1978 Proposition 13: Was adopted by California's voters by referendum; limited that
state's ability to levy property taxes and began what has come to be called the
"taxpayers' revolt."
1978 Regents v. Bakke: In its first major decision on affirmative action, the United
States Supreme Court ruled that race could be a factor but not the factor in university
admissions policies. This principle was later extended to employment and gender.
1980s A good way to characterize the study of public administration in the U.S. today
is
in terms
of
three
impulses:
politics, management,
and
public
policy.
Programs
To
understand better how public agencies do and should operate, one should try to blend
insights from all three approaches.
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Remember what a "highlight" is. What appears above is, by no means, all you
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Adam Smith, Henri Fayol, Daniel McCallum, FW Taylor, Max Weber, Gulick
&Urwick
Organizations should work like machines, using people and capital as their
parts
Daniel McCallum, 1856, first modern organization chart for the NY and Erie RR
Company
Often viewed as narrow and simplistic; however, laid a foundation for all future
scholars
Barnard: individuals are what hold the organization together; thus, they must
be reduced to cooperate for success to be achieved (persuasion principle)
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Peter Blau and Richard Scott: all orgs consist of a formal and an informal
element and it is impossible to understand an org. without knowing each
element
Systems Theory
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John Kotter: differentiate between power resulting from authority and power
resulting from being able to get job done
Jeffrey Pfeffer: power and politics are fundamental concepts in defining an org
Organizational Culture
People will distort the perceptions of symbols according to the need for
what is symbolized
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TQM and "Reinventing Government" further thrust this movement onto front
pages in the 1980s and 90s
Postmodernism
Technology and information networks have led to uncertainty and chaos is this
postmodern era
Karl Weick
o
Centralize or decentralize
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People are considered to be as important, or more so, than the org itself
Bolman & Deal (1997): organizations exist to serve humans (not the other way
around)
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Hamilton, Alexander
Progressive Era
1918 Willoughby, Wm
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Centralize
power
under
few
large
departments
of
informal
orgs,
communication,
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Recognize
the
complexities
of
human
behavior
Deal
with
normative
values
in
admin
situations
The
State-Economy
and
efficiency
are
PA not
science-a profession
Populist concerned with values of democracy & the
Philpot of PA
PA is politics partisan politics in PA is good
1949 Selznick, Philip
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of
satisfaction,
seek
and
accept
responsibility
1966 Katz & Kahn
systems
modern
organizational
environments
Closed systems = traditional fixed bureaucracies
1967 Downs, Anthony
cycles
of
bureaus
difficult
to
kill
bureaucracy
1969 Kaufman, Herbert
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Institutional
Theory
emphasize
cultural
&
1983 Power
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Reinventing
Government
dichotomies
of
partnerships,
contracts
replacing
hierarchy
1993 Schein, Edgar
Critical Theory of PA
improvement
in
private sector
1995 March & Olsen
perspective
rational
actor
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assumptions, competition,
markets,
exchange,
more
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highways
of
information,
growing
levels
of
organizational
learning
and
interdisciplinary in the social sciences have also made their impact on the study of our
bureaucracies. Yet by all definitions public administration in the beginning of the 2000s
still lacks the sense of identity that other fields of the social sciences have long since
obtained. In other words, the field is looking back and down into its individuality,
searching for orientations and signs that can direct it on its way forward. Today, public
administration is already very different from what it used to be forty, thirty, and even
twenty or ten years ago. In the coming years it is going to be even more different.
This paper is based on a previous work by the author (Vigoda, 2002). It tries to portrait
the uncertain identity of public administration and possible developments waiting ahead.
Rethinking this identity we should be interested in two main questions: Which scholarly
ground are we stepping on when we talk about public administration? What is the legacy
of the field in its current phase and what are its ambitions for the future? Naturally,
these questions raise many others, for example, how to improve governments actions;
how to revitalize public administrations services; whether bureaucracies are responding
to economical/ social/ political challenges and changes ahead, and with what tools;
what is the impact of a high-technology environment and the information age on our
public agencies; how to attain the (im)possible goal of effective integration between
citizens and governments in an ultra-dynamic society; and what are the implications of
such transitions for democratic governments, their stability, and legitimization in the
eyes of citizens. I argue that in order to resolve these questions one should seek better
scholarly identity, which may be acquired through interdisciplinary analysis.
Practically, such an analysis needs to be presented gradually. Hence, I first suggest a
theoretical entry and rationality for the mixture of analytic levels, methods, and
viewpoints that are proposed by the various mother-disciplines of public administration.
More specifically I focus on the roots and foundations of public administration in both
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American and Non-American cultures that furnish the background and terminology for
the discipline in its basic frame, as well as in its more advanced composition. Next, three
academic origins are discussed, namely (1) policy, politics, and political economy, (2)
sociology, culture, and community and (3) management and organizational studies. Each
represents a separate layer of investigation. The closing section suggests a synthesis and
looks to the future. It attempts to portray areas and orientations for the new generation
of public administration and for its way forward.
The dilemma of independence and interdisciplinary in public administration
For many years public administration has struggled for its independent position in the
social sciences. While in its early years it was part of the more conservative fields of
Law, Politics, and Economy, it has been developed today to a unique field,
independent in many ways but still enjoying mutual contributions of other disciplines
in the social sciences. Moreover, in the last century it has developed a theoretical but
also an impressive practical agenda that created remarkable achievements in different
ways. The public sector, both as a science and as a profession is responsible for much
of these achievements.
At the dawn of the new millennium, however, various new social problems still await
the consideration and attention of the state and its administrative system. The
question of independency of public administration as a science seems today less
important than in the past. Instead, there are many calls to take advantage of multi
disciplinary orientations in the social sciences and to find better ways to integrate
them in the current ethos of public administration. It is also suggested that such
interdisciplinary ideas, tools, and methods can help to overcome social problems and
create effective remedies for the new type of state maladies. Interdisciplinarity is also
translated into is cooperation, collaboration, and a share of information and
knowledge. The multi-level, multi-method, and multi-system analysis with a look
towards the future is the main frontiers of modern public administration.
The interdisciplinary view endeavors to provide an insight into the complexity of the
field by combining different levels of analysis into an integral whole, which better
accords with reality. This knowledge may well serve our understanding of how the
state, and its executive branches, is managed and of the obstacles to better public
performance. An important task is to illuminate cross-disciplinary principles for
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and power as
the
cheapest
control
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fairly
effectively,
division
of
work,
professionalism,
centralization
and
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Thus, it is evident that public administration of our time wields considerable power
and influence in policy framing, policy making, and policy implementation. Hence it is
subject
to
growing
pressures
of
political
players,
social
actors,
managerial
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with the years it has become obvious that law in itself does not maintain satisfactory
conditions for quality public sector performances to emerge. Constitutional systems
furnish platforms for healthy performance of public administration, but do not
account for its effectiveness or efficiency. Put differently, good laws are necessary but
not sufficient conditions for creating a well-performing public service. They only
highlight the significance of other scholarly contributions.
One such important contribution came from the classic hard sciences of engineering
and industrial relations. In its very early stages public administration was heavily
influenced by dramatic social forces and long-range developments in the western
world. The ongoing industrial revolution in the early 1900s, which was accompanied
by political reforms, higher democratization, and more concern for the peoples
welfare, needed highly qualified navigators. These were engineers, industrial
entrepreneurs, and technical professionals who guided both markets and governments
along the elusive paths to economic and social prosperity. Various fields of
engineering, the subsequent evoking area of industrial studies, and other linked
disciplines such as statistical methods became popular and crucial for the
development of management science in general, and were also gradually found useful
for public arenas. The link between general management and public administration
has its roots in the understanding of complex organizations and bureaucracies, which
have many shared features. Here, much contribution was made in non-American
societies such Germany, France, and Britain. In fact, early American public
administration was influenced by the works of various European. Thus, the current
state of public administration can not be covered without adequate understanding of
the seminal works by Max Weber (1947), Henry Fayol (1925), Lindel Urwick (1928),
and others. Their ideas and theoretical development of the field are considered today
as core-stones for the emergence of modern public administration and management.
With time, dramatic changes occurred in the nature and orientation of general
organizational theory, and in its application to public administration of modern
societies. A major transition resulted from the exploration by the Hawthorn studies in
the 1920s and 1930s, conducted by a well known industrial psychologist from Chicago
University, Alton Mayo. A behavioral apparatus was used to drive a second revolution,
beyond the revolution of its original emergence, which swept the young science into its
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first stages of maturity. Today, trends and developments in the public sector cannot be
fully understood without adequate attention to behavioral, social, and cultural issues.
These aspects conjoin with questions of policy making and policy evaluation, as well
as with managerial, economic, and organizational contents, better to illuminate public
systems. The human and social side of public organizations became central and
critical to all seekers of greater knowledge and comprehension of the states operation.
People and groups were placed at the heart of the discussion on organizational
development and managerial methods. The human side of organizations was made an
organic part of the art of administration. Still today it is an indispensable facet of the
craft of bureaucracy. All who are interested in the healthy future and sound progress
of public organizations and services both as a science and as a profession have to
incorporate humanistic views well in their basic managerial ideology.
However, major transitions still lay ahead. International conflicts during the 1930s
and the 1940s wrought immense changes in national ideology and democratic
perspectives in many western societies. Consequently, public administration and
public policy had to be transformed as well. During the Second World War theoretical
ideas were massively supported by advanced technology and higher standards of
industrialization. These were pioneered by professional managers and accompanied by
new managerial theories. Ironically, the two world wars served as facilitators of
managerial change as well as accelerators and agents of future developments and
reforms in the public sector. The political leaders and social movements of the
victorious democracies were convinced that the time had come for extensive reforms in
the management of western states. The assumed correlation of social and economic
conditions with political stability and order propelled some of the more massive
economic programs in which the state took an active part. The rehabilitation of warravaged Europe involved governmental efforts and international aid, most of it from
the United States. Major attention was dedicated to the creation of better services for
the people, long-range planning, and high-performance public institutions capable of
delivering quality public goods to growing numbers of citizens. To build better societies
was the goal. A larger and more productive public sector was the tool.
In many respects the utopian vision of a better society generated by the post-war
politicians and administrators in the 1940s and 1950s inexorably crumbled and fell
35 | P a g e
during the 1960s and 1970s. A sizable number of governments in the western world
could not deliver to the people many of the social promises they had made. The
challenge of creating a new society, free of crime and poverty, highly educated and
morally superior, healthier and safer than ever before, remained an unreachable goal.
So during the 1970s and 1980s, citizens trust and confidence in government, and in
public administration as a professional agent of government, suffered a significant
decline. The public no longer believed that governments and public services could
bring relief to those who needed help, and that no public planning was good enough to
compete
with
natural
social
and
market
forces.
The
promises
of
modern
authorities
naturally
diffused
into
the
academic
community.
Theoretical ideas for policy reforms in various social fields that once seemed the key to
remedying illnesses in democracies have proven unsuccessful. Within the last decade
the search for new ideas and solutions for such problems has reached its peak, as
premises originally rooted in business management have become increasingly adjusted
and applied to the public sector. Among these ventures are re-engineering
bureaucracies (Hammer and Champy, 1994), applying benchmarking strategy to
public services (Camp, 1998), re-inventing government (Osborne and Gaebler, 1992),
and the most influential movement of New Public Management (NPM: Lynn, 1998;
Stewart and Ranson, 1994). These are receiving growing attention accompanied by
large measures of skepticism and criticism.
Transformations in the academic realm
Throughout those years public administration as an academic field was also in
transition. Today, many examples exist in universities of independent public
administration units; some operate as schools and some as free-standing faculties.
But in at least an equal number of universities, public administration programs on all
levels are only part of larger units such as Political Science departments, Business
36 | P a g e
and
Management
schools,
or
even
Public
Affairs
schools.
This
disciplinary
schizophrenia certainly yields a science that is more complex and heterogeneous, but
also more challenging and full of promise.
The scientific background and identity of public administration in the late 1990s and
early 2000s is still not stable and has not overcome its childhood ailments. On the
contrary identity conflicts have only intensified with the years. Some 30 years ago,
Waldo (1968) noted that ongoing transformations in public administration reflected an
identity crisis of a science in formation. During the last three decades Waldos
diagnostics on public administration as a science struggling with a pernicious identity
problem has not changed much. The evolution of alternative sub-disciplines inside
and around the field (e.g., policy studies, public personnel management, information
management, etc.) carried promises but also risks for its position and role as a central
field of social study. As recently noted by Peters (1996), modern public administration
greatly reflects lack of self-confidence both as a science and as a profession. This lack
is expressed in many ways, the most significant being incapacity to guide governments
through a safe circuit of public policy change. Much of the accumulated wisdom in the
science of public administration has been obtained through social experiments, the
commission of policy errors, and sometimes even learning from them about better
ways to serve the people. But mistakes cost money, much money, money from all of
us, the taxpayers. Like good customers in a neighborhood supermarket, citizens
should and have become aware of the services they deserve, of the high prices they are
asked to pay, and of governmental actions that should be taken to produce useful
changes. Demands for better operation are generally aimed at governments, but they
should be, and are, also targeted at the science and at academia. Science has the
potential of exploring new knowledge, generating better explanations for relevant
administrative problems, applying sophisticated and useful professional methods, and
most importantly directing all available resources to produce successful and practical
recommendations for professionals. Its prime goal is to design a comprehensive
theoretical view of public systems that is clear, highly efficient, effective, thrifty, and
socially oriented at the same time. This cannot be achieved without extensive
understanding of the diversity, complexity, and interdisciplinarity of the science of
public administration.
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that involves politics, but not only politics. It deals with policy, but reaches much
farther and deeper than policy questions. It incorporates sociological and cultural
aspects that change rapidly in a mass communicative global world, but it goes even
beyond these issues. It deals with people as workers, as citizens, as clients, and as
consumers, as leaders and managers, as well as with a variety of other human
constructs that fuse into a unique branch of knowledge. A multi-disciplinary approach
is evidently required to explain better what every scholar already knows from his or
her personal perspective: that the truth about public administration has many faces
and no monopoly exists any longer on the disciplines status and orientations.
In light of the above we can identify three main disciplines that serve today as core
sources of knowledge in the study of public administration.
(1) Policy analysis, Political science, and Political Economy;
(2) Sociology, Cultural studies, and Community studies;
(3) Management and Organizational studies;
Policy, Politics, and Political Economy
The political approach to public administration was depicted by Rosenbloom (1998) as
stressing the values of representativeness, political responsiveness, and accountability
to the citizenry through elected officials. These values are considered necessary
requirements of democracy, and they must be incorporated into all aspects of
government and administration. Wallace (1978) argued that ultimately public
administration is a problem in political theory. It deals with the responsiveness of
administrative agencies and bureaucracies to the elected officials, and through them,
to the citizens themselves. Shafritz and Russell (1997) provide several politics-oriented
definitions of public administration: it is what government does (or does not do), it is a
phase in the policymaking cycle, it is a prime tool for implementing the public interest,
and it does collectively what cannot be done so well individually (pp. 6-13). Hence it is
impossible to conduct a politics-free discussion of public administration. This political
debate in public administration is also heavily influenced by the sub-field of political
economy. Questions of budgeting and financing the public sector (Wildavsky, 1984) as
well as bringing more economical rationality to decision making processes usually
conflict with political considerations (Jackson & Mcleod, 1982). However they also put
39 | P a g e
them under economical restraints and enhance "checks and balances" to a system
mostly monitored and controlled by politicians, political parties, and other federal or
national institutions, rather than professionals and practitioners.
Yet, politics is definitely the heart of public administration processes. Politics focuses
on citizens as members of groups or on highly institutionalized organizations that
sound the publics voice before political officials and civil servants. The politics
approach to public administration involves strategies of negotiating and maneuvering
among political parties, public opinion, and bureaucracies. It involves an incremental
change in society, which relies on open debate, a legitimate power struggle,
distribution and redistribution of national resources and budgets, and a heavy body of
legislation and law to regulate these processes. Perhaps the most obvious linkage
between politics and public administration stems from policy making and policy
implementation processes. It is naive to distinguish political systems from professional
administration systems in regard to public policy. As Rosenbloom (1998:13)
suggested, public administrators involvement in the public policy cycle makes
politics far more salient in the public sector than in private enterprise. Public
administrators are perforce required to build and maintain political support for the
policies and programs they implement. They must try to convince members of the
legislature, chief executives, political appointees, interest groups, private individuals,
and the public at large that their activities and policies are desirable and responsive.
The theoretical contribution of political science to the study of public administration is
therefore multi-faceted. It invokes better understanding of the power relations and
influence dynamics that take place inside and among bureaucracies (Pfeffer, 1992)
and determine their operative function as well as outcomes. It also employs a rather
vast knowledge from economics and rational thinking. Party politics acknowledges
that the investigation of pressure and interest groups, and the better understanding of
conflict relationships among various players of the state, are used to build models of
decision making and policy determination that are rational and realistic. In addition,
political psychology is implemented more thoroughly to explore personality traits of
political leaders as well as public servants. For the same reasons, budgetary studies
and policy analysis methods are an integral facet of the political approach, which
assumes limited rationality as well as high constraints of time and resources on the
administrative process.
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From a somewhat different perspective, Ellwood (1996: p.51) argued that political
science has simultaneously everything and little to offer public management scholars,
hence also public administration scholars. Everything, because both fields deal with
political behavior, processes, and institutions. Little, because political science deals
only with the constraints forced on the administrative process with no practical
contribution to the managerial improvement of public systems. Ellwood further
concurs that both fields rely on other academic disciplines, employing techniques of
anthropology, economics, game theory, historiography, psychology, and social
psychology, as well as sociology. In line with this it would be only natural to conclude
that the relationship between political science and public administration is described
as an on-again, off-again romance. Kettl (1993, p.409) suggested that the importance
of administration lay at the very core of the creation of the American Political Science
Associationwhen five of the first eleven presidents of the association came from
public administration and played a major role in framing the discipline. As Ellwood
puts it, with the years, public administration became public but also administration. It
shifted its focus to a more practical and client-service orientation, which necessarily
incorporated knowledge from other social disciplines like personnel management,
organizational behavior, accounting, budgeting, and so forth. The methodological
contribution of a political approach to public administration studies is also
meaningful. Here a macro analysis is necessary if one seeks an understanding of the
operation of large bureaucracies and their coexistence with political players. A political
approach delivers these goods by means of comparative studies, policy evaluation
methods, rational choice models, and simulations, as well as content-analysis
techniques and other tools useful for observation of the political sphere.
Sociology, Culture, and Community
Studying public administration is also a social issue. Thus, another approach that is
highly relevant to the understanding of public administration bodies and processes
rests on a sociological apparatus. It has a very close relationship with the political
approach, so it is sometimes defined as a socio-political view of public systems or as a
study of political culture (Shafritz & Russell, 1997:76). Yet its core prospects are
beyond the political context. The voice of society has a special role in the study of
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public administration arenas not only for democratic and political reasons but also
because of its fundamental impact on informal constructs of reality such as tradition,
social norms and values, ethics, life style, work standards, and other human-cultural
interactions that are not necessarily political.
The theoretical contribution of a sociological and cultural approach to public
administration consists of several elements. An essential distinction must be drawn
between inside and outside cultural environments. An outside cultural sphere
incorporates informal activities and behaviors of small groups as well as of larger
social units which interact with the administrative system. Included in this category
are customers groups, private organizations, not-for-profit volunteering organizations,
and citizens at large. Considerable attention has been turned to communities and to
the idea of communitarianism (Etzioni 1994; 1995) as well as to the emergence of the
third sector as rapidly changing conventional structures and beliefs in modern
societies (Gidron, Kramer, and Salamon, 1992). An inside cultural environment is
related to internal organizational dynamics and to the behaviors of people as work
groups. Thus, it is sometimes termed organizational culture, or organizational climate
(Schein, 1985). Like the outside organizational environment, it has some observable
constructs but it mostly expresses many covert phases. In many ways, culture is to
the organization what personality is to the individual a hidden, yet unifying theme
that provides meaning, direction and mobilization (Kilmann et al., 1985). It includes
basic assumptions as to what is right and what is wrong for a certain organizational
community, norms and beliefs of employees, unseen social rules and accepted codes
of behavior, as well as tradition, language, dress, and ceremonies with common
meaning to all organizational members. All these distinguish us from them,
promote group cohesiveness, and improve common interests.
Several sociological sources can be effective in analyzing public administration
dynamics. First is group theory, which is also closely related to the study of leaders
and leadership. Second are ethnic studies, which concentrate on minorities and race
questions such as equity, fair distribution of public goods, and integration in
productive public activity. Third is communication and the technological information
revolution, which have had a radical effect on society, public policy, and public
administration units and structure. Information networks and communication have
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of
public
arenas.
sociological
and
cultural
approach
to
public
behaviour
of
public
servants.
For
example,
hand-in-hand
with
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of public administration. Only with the emergence of new management trends in old
bureaucracy were these basic assumptions questioned. For example, Kettl and
Milward (1996) stated that management in the public sector matters. It matters
because citizens demands increase and because the standards of performance
expected from governments are higher than ever before. Performance is related in the
minds of people and in scientific studies to quality of management, quality of
managers, and the administrative process between them. Accordingly, it has much to
do with the human aspects of administration. Perhaps this perception has led to some
recent developments in public administration, making it client-oriented and more
businesslike. Scholars frequently define these shifts as the principal change in public
administration and its transition into a revised field of study named public
management.
Current trends: A public managerial reform?
What is the future of modern public administration and what new frontiers are awaiting
ahead? The wisdom of managing states and communities in the 21st century relies on
manifold disciplines and multiple sources of knowledge. The information era and the
immense technological advancement with which our nations struggle necessarily create
higher levels of accessibility, availability, and transparency to the public. The emergence
of e-government is no more a fantastic dream but blatant reality. Public administration
in America and in the world is moving through reforms and changes that are aimed at
downsizing, privatization, de-bureaucratization, higher professional managerialsim, and
above all strict dedication and aspirations to become a better "science" by improving
measurement tools and adhering with positivism and empiricism.
Since the early 1980s much work has been conducted in public administration theory
and practice that claimed to go beyond the conservative approach in the field. This
liberalization of public administration is recognized today as the New Public
Management (NPM) trend. The self-identity problem of public administration was greatly
aggravated by the launching of the idea of NPM. As noted by Kettl and Milward (1996:
vii), public management is neither traditional public administration nor policy analysis
since it borrows heavily from a variety of disciplines and methodological approaches.
Mainly drawing on the experience of the business/industrial/private sector, scholars
have suggested taking a more demanding attitude to the dynamics, activity, and
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found in many schools of public administration that during the 1980s and 1990s
decided to become schools of public management. Looking for alternative ideas,
management theory was proposed as the source for a new and refreshing perspective.
It was suggested that public management rather than public administration could
contribute to a new understanding of how to run the government more efficiently,
hence to surmount some of its pandemic ailments.
Thus, Perry and Kraemer (1983) stated that a greater impact of new ideas and
methods from the field of public management on the administrative science was
essential and natural. It reflected a special focus of modern public administration that
was not to be ignored. Rainey (1990:157) claimed that this process was a result of the
growing unpopularity of government during the 1960s and 1970s. Ott, Hyde, and
Shafritz (1991:1) also stated that public management was a major segment of the
broader field of public administration since it focused on the profession and on the
public manager as a practitioner of that profession. Furthermore, it emphasized wellaccepted managerial tools, techniques, knowledge, and skills that could be used to
turn ideas and policy into a (successful) program of action.
During the last two decades many definitions have been suggested for NPM. Yet
nothing seems wrong with the relatively old perception of Garson and Overman
(1983:278), who defined it as an interdisciplinary study of the generic aspects of
administration...a blend of the planning, organizing, and controlling functions of
management with the management of human, financial, physical, information and
political resources. As further discussed by other scholars (e.g., Lynn, 1996:38-39),
six differences exist between public administration and public management that make
the former a new field of study and practice. These are (1) the inclusion of general
management functions such as planning, organizing, control, and evaluation in lieu of
discussion of social values and conflicts of bureaucracy and democracy; (2) an
instrumental orientation favoring criteria of economy and efficiency in lieu of equity,
responsiveness, or political salience; (3) a pragmatic focus on mid-level managers in
lieu of the perspective of political or policy elites; (4) a tendency to consider
management as generic, or at least to minimize the differences between public and
private sectors in lieu of accentuating them; (5) a singular focus on the organization,
with external relations treated in the same rational manner as internal operations in
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lieu of a focus on laws, institutions, and political bureaucratic processes; (6) a strong
philosophical link with the scientific management tradition in lieu of close ties to
political science or sociology.
While the emergence of NPM is frequently related to the increasing impact of positivist
behavioral science on the study of politics and government (e.g., Lynn, 1996:5-6), the
practical aspect of this process should also be considered. Practical public managers
(Golembiewski, 1995), as well as political scientists, will refer to the difficulties in
policy making and policy implementation which faced many western societies in
Europe, America, and elsewhere during the 1970s. These practical difficulties are
viewed today as an important trigger for the evolution of NPM. Reviewing two recent
books on NPM (Aucoin, 1995; Boston, Martin, Pallot, and Walsh, 1996), Khademian
(1998:269) argues that American and Westminster advocates of the field find common
ground in explaining why such reforms are necessary. The problem of an inflexible
bureaucracy that often could not respond efficiently and promptly to the public needs
conflicted with some basic democratic principles and values in these countries. Peter
Aucoin elegantly summarizes a "trinity" of broadly based challenges with which
western democracies have struggled, and will probably continue to struggle in the
future, partly through management reform. These are (1) growing demands for
restraint in public sector spending, (2) increasing cynicism regarding government
bureaucracies' responsiveness to citizens concerns and political authority and
dissatisfaction with program effectiveness, and (3) an international, market driven
economy that does not defer to domestic policy efforts. These challenges have
apparently led many western governments, in America, Britain, New Zealand, Canada,
and elsewhere, to the recognition that firm reforms and changes in the public service
should be made.
There is no doubt that at least some of the accumulated wisdom of the private sector
in many countries is transferable to the public sector (Pollitt, 1988; Smith, 1993). In
an attempt to liberate the public sector from its old conservative image and tedious
practice NPM was advanced as a relevant and promising alternative. NPM literature
has tried to recognize and define new criteria that may help in determining the extent
to which public agencies succeed in meeting the growing needs of the public. NPM has
continuously advocated the implementation of specific Performance Indicators (PIs)
used in private organizations to create a performance-based culture and matching
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However, reality seems far more complex. There is growing concern among scholars
today that these goals are way beyond reach. Modern states across the world face
serious problems of adhering to the publics needs. Achieving one target is usually
accompanied by painful compromises on others, and limited resources are frequently
cited as the main reason for failure in the provision of services. Moreover, fundamental
changes are taking place in peoples lifestyles, as in their beliefs and ideologies. They
are multiplied through high technology, communication systems, new distribution of
capital, and the rise of new civic values that never existed before. All these lead
citizens to perceive government and public administration systems differently. The role
of the state and its relationship with bureaucracy and with citizens is undergoing a
substantial transformation not only in the minds of the people but also in scientific
thinking. In a rapidly changing environment, public administration has a major
function and new aims that must be clearly recognized. It remains the best tool
democracy can use to create fruitful reciprocal relationships with citizens, but on a
higher and better level. To uncover the major tasks and challenges facing the new
generation of public administration we require a cross-disciplinary strategy and
improved integration of all available knowledge in the social sciences aimed at
redefining the boundaries of public administration systems in its new era.
Today, at the beginning of the 21st century, the formation of public administration as
an interdisciplinary academic field seems certain. Still, it is unfinished business due
to the need and demand to make it more of a harder social science, one which is
closer to management science, economics, or even psychology. Hence, the state of the
field is in dispute among academics and practitioners from across the world who seek
higher and more extensive scientific recognition, by applying a higher level of
empirical-based paradigm. It is argued that such inputs may produce a more accurate
self-definition and better applicability of the field to rapid changes in modern life. This
process presents new challenges for public administration. Perhaps the most
important is to integrate more widely existing knowledge of the social sciences with
efficient public action and with quality governmental operation. In the coming years
public administration will be evaluated by higher standards of theory cohesiveness
and by more comprehensive performance indicators rooted in a variety of scientific
fields. The exploration of new interdisciplinary horizons for public administration is
thus essential, and inevitable for the successful passage of the field into the third
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millennium. Somewhat contrary to the concerns of Waldo (1968), the identity crises in
its new form may carry a positive, not endangering, interdisciplinary merit. The
interdisciplinary orientations have the potential of pulling public administration out of
its perplexing-stagnating status and lead it towards a more solid scientific position.
In light of the above a consensus exists today among scholars and practitioners that
modern public administration decidedly benefits, and will continue to benefit, from the
seminal inputs of social and cultural motives and mainly from the impact of
managerial and organizational theory. In keeping with these, modern societies
question the current obligations of public personnel toward citizens, and urge them to
put people and social values first. These tasks can be achieved by treating citizens as
customers or clients but also through building a different value of administrative spirit
(Vigoda and Golembiewski, 2001). Yet managerial tendencies draw fire from those who
argue that a client orientation of the public sector breeds citizen passivity and lack of
individual responsibility toward the state and its agencies. It is further assumed that
today these obligations and commitments are not clearly decoded, manifested, or
satisfactory implied. Consequently they yield an identity problem of the field and strive
for redefinition of its unwritten contract with the people. Scholars are divided over the
best way to obtain missions of good-management together with good cultural order.
Still, they agree that much more can be done to improve responsiveness to citizens
needs and demands without forgoing the active role of citizens in the administrative
process.
Moreover, the information revolution is expected to create a growing impact on public
administration of the future both as a science and as a profession. In referring to the
modern public sector Caldwell (2002) suggested that "Our task for linking information,
social issues, politics, policy and management is a challenge yet to be accomplished.
The enthusiasm for public planning, notably in the 1930s, did not survive the Second
World War. The so-called reinvention of government based on a market-driven model
appears to be essentially contemporaneous and superficial in relation to the multiple
challenges to be confronted in the 21st century" (p73-174) Thus, Caldwell continues to
argue that "governments and their administrators (in our time) characteristically focus
on immediate situations and pressing problems. There are few political rewards for
anticipating the long range future. However, the advancement of science and an
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This
Rohr argues that the administrative state can be justified under the
Constitution based upon three main contentions. First, the combination of executive,
legislative, and judicial powers within the administrative state does not violated the
doctrine of separation of powers.
Goodnow, Rohr focuses his attention on Judge Thomas Cooley. To Rohr, Wilson and
Goodnow were not loyal to the nations constitutional heritage. Wilson disapproved of
the doctrine of separation of powers; Goodnow did not like the notion of popular
sovereignty. Cooley, on the other hand, provided a true example of an administrator
and constitutional scholar who was loyal in all respects to the founding principles of
the country. In 1887, Cooley, who was widely regarded as the foremost scholar of
constitutional law at the time, was tapped to lead the Interstate Commerce
Commission when it became an independent agency.
reputation as a constitutional scholar may have led the judiciary to accept the
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legitimacy of the administrative agency and redefine the requirements of due process.
Additionally, Rohr surmises that Cooleys leadership may have inspired acceptance of
the agency in the minds of the general public:
justify the existence of the administrative state. During the New Deal Era, the United
States Supreme Court reinterpreted the Commerce Clause and the Fourteenth
Amendment in a manner that permitted more federal regulations to be adopted and
more federal agencies to be created. Rohr views this development a victory for the
administrative state that should be developed further.
interpretations of the Commerce Clause, the General Welfare Clause, and the
Necessary and
administrative state.
Finally, in the Conclusion, Rohr discusses the importance of the administrators oath
of office. Rohr explains the profound moral significance of the administrators oath as
a binding commitment, a justification for administrative autonomy, and a guide for
administrative action. Succinctly stated, if administrators are going to actively seek
justification in the constitution, then certainly administrators must take their oaths
seriously. The oath represents a covenant between the administrator and society that
requires the administrator to act in accordance with constitutional commands.
Moreover, Rohr maintains that the exercise of discretion in accordance with the oath
requires a thorough understanding of the constitutional principles that undergird the
nation.
advance
the
dialogue
concerning
Public
Administration
and
replace
the
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conspicuous departure from the text of the Constitution as well as the history and
traditions that inspired the constitution.
Furthermore, and
most notably, Rohrs thesis fails to define the critics and criticisms to which it
apparently responds, and, as a result, it deals with the subject from a very general
perspective. Consequently, Rohr seems to miss the point of so much of the criticism
of the administrative state played out in the judicial system and the court of public
opinion. Many critics of the administrative state disclaim the New Deal decisions of
the Supreme Court as ill-conceived. Hence, it seems unlikely that relying upon those
opinions as the bellwether of the legitimacy of the administrative state is unlikely to
win new friends.
Despite these drawbacks, with To Run a Constitution Rohr has made an important
contribution to the public administration literature. He is correct in noting that the
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Moreover, his focus on the historical tradition of this country is indeed a step in the
right direction. Scholars and public administrators alike will learn much from Rohrs
account of the founding of the nation. And Rohr is quite correct in suggesting that a
more in depth knowledge of our nations history will serve the profession and the
academic discipline well. This is most apropos when it comes to the administrators
oath of office. Administrators will be less likely to take their oaths of office for granted
when they truly understand their role as stewards of the Constitution.
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to gain these benefits, as they are spending public tax money. Special interest
lobbyists are also behaving rationally. They can gain government favors worth millions
or billions for relatively small investments. They face a risk of losing out to their
competitors if they don't seek these favors. The taxpayer is also behaving rationally.
The cost of defeating any one government give-away is very high, while the benefits to
the individual taxpayer are very small. Each citizen pays only a few pennies or a few
dollars for any given government favor, while the costs of ending that favor would be
many times higher. Everyone involved has rational incentives to do exactly what
they're doing, even though the desire of the general constituency is opposite. (It is
notable that the political system considered here is very much that of the United
States, with "pork" a main aim of individual legislators; in countries such as Britain
with strong party systems the issues would differ somewhat.)
Decision making processes and the State
One way to organize the subject matter studied by Public Choice theorists is to begin
with the foundations of the state itself. According to this procedure, the most
fundamental subject is the origin of government. Although some work has been done
on anarchy, autocracy, revolution, and even war, the bulk of the study in this area has
concerned the fundamental problem of collectively choosing constitutional rules. This
work assumes a group of individuals who aim to form a government. Then it focuses
on the problem of hiring the agents required to carry out government functions agreed
upon by the members.
The main questions are: (1) how to hire competent and trustworthy individuals to
whom day-to-day decision-making can be delegated and (2) how to set up an effective
system of oversight and sanctions for such individuals. To answer these questions it is
necessary to assess the effects of creating different loci of power and decision-making
within a government; to examine voting and the various means of selecting candidates
and choosing winners in elections; to assess various behavioral rules that might be
established to influence the behavior of elected and appointed government officials;
and to evaluate alternative constitutional and legal rights that could be reserved for
citizens, especially rights relating to citizen oversight and the avoidance of harm due to
the coercive power of government agents.
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These are difficult assessments to make. In practice, most work in the field of Public
Choice has dealt with more limited issues. Extensive work has been done on different
voting systems and, more generally, on how to transform what voters are assumed to
want into a coherent "collective preference". Of some interest has been the discovery
that a general collective preference function cannot be derived from even seemingly
mild conditions. This is often called Arrow's impossibility theorem. The theorem, an
economic generalization of the voting paradox, suggests that voters have no reason to
expect that, short of dictatorship, even the best rules for making collective decisions
will lead to the kind of consistency attributed to individual choice.
Much work has been done on the loose connection between decisions that we can
imagine being made by a full contingent of citizens with zero collective decisionmaking
costs
and
those
made
by
legislators
representing
different
voting
constituencies. Of special concern has been logrolling and other negotiations carried
out by legislators in exercising their law-making powers. Important factors in such
legislative decisions are political parties and pressure groups. Accordingly, Public
Choicers have studied these institutions extensively. The study of how legislatures
make decisions and how various constitutional rules can constrain legislative
decisions is a major sub-field in Public Choice.
Bureaucracy
Another major sub-field is the study of bureaucracy. The usual model depicts the top
bureaucrats as being chosen by the chief executive and legislature, depending on
whether the democratic system is presidential or parliamentary. (See also presidential
system and parliamentary system.) The typical image of a bureau chief is a person on
a fixed salary who is concerned with pleasing those who appointed him. The latter
have the power to hire and fire him more or less at will. The bulk of the bureaucrats,
however, are civil servants whose jobs and pay are protected by a civil service system
against major changes by their appointed bureau chiefs. This image is often compared
with that of a business owner whose profit varies with the success of production and
sales, who aims to maximize profit, and who can hire and fire employees at will.
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Rent-Seeking
A field that is closely related to public choice is "rent-seeking." This field combines the
study of a market economy with that of government. Thus, one might regard it as a
"new political economy." Its basic thesis is that when both a market economy and
government are present, government agents are a source of numerous special market
privileges. Both the government agents and self-interested market participants seek
these privileges in order to partake in the monopoly rent that they provide. When such
privileges are granted, they reduce the efficiency of the economic system. In addition,
the rent-seekers use resources that could otherwise be used to produce goods that are
valued by consumers.
Rent-seeking is broader than Public Choice in that it applies to autocracies as well as
democracies and, therefore, is not directly concerned with collective decision-making.
However, the obvious pressures it exerts on legislators, executives, bureaucrats, and
even judges are factors that Public Choicers must account for in their effort to
understand and assess collective decision-making rules and institutions. Moreover,
the members of a collective who are planning a government would be wise to take
prospective rent-seeking into account.
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possibilities;
physical
aspects,
measurement;
control
of
workplace.
c. Bringing of the science and the scientifically selected and trained
workers together; organizing people; once science of management
developed, conflict will be illuminated.
d. Division of work between management and workers; managers in
control, workers happy (people who do work do not understand
work); managers implement results of science.
5. Ideas are essentially wrong, but nonetheless influential
Louis Brownlow, Charles E. Merriam, and Luther Gulick, Report of the residents
Committee on Administrative Management
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efficiency and
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than
his
forebear,
less
descriptive
and
more
prescriptive,
b. less institution oriented and more client -impact oriented, less
c. neutral and more normative, and it is hoped no less scientific.
9. Organization Theory and New PA: distributive process, integrative process,
boundary-exchange process, and the socio-emotional process.
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1.9 Paradigms
What is a paradigm?
Denhardt A paradigm is a schema upon which to hang theory.
Guba & Lincoln A paradigm is the basic belief system or worldview that guides the
investigator ontologically, epistemologically and methodologically.
What is a Theory?
Putnam Theories are partially interpreted calculi in which only the observation
terms are directly interpreted.
Stanley, French, Spears 2005 A theory is inadequate as a paradigmatic choice
because it is a partial aspect of reality.
Kuhn Definition of Paradigm:
1. The entire constellation of beliefs, values, techniques, and so on shared by the
members of a given community.
2. One element in that constellation, the concrete puzzle-solutions which,
employed as models or examples, can replace explicit rules as a basis for the
solution of the remaining puzzles of normal science.
Thomas Kuhn, one of the best-known [and most influential] historians and
philosophers of science in the 20th century, made the following summarized major
arguments (Land and Anders, 2000):
1. The field of science progress by paradigm shift a reconstruction of prior theory
and knowledge.
2. Paradigms are criteria for indentifying legitimate problems and methods of
inquiry for a research field. It includes a worldwide (constructed theory about
how facts should be related) and two basic criteria it attracts an enduring
group of adherents away from competing modes of scientific activity and it is
sufficiently open-ended to leave all sorts of problems for the followers to resolve.
3. Paradigms do not have to entirely inclusive. Competing paradigms can exist
within one discipline. Also, not all legitimate research activities within one
discipline have to be governed by paradigms.
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paradigm
has
ASSUMPTIONS:
Ontological,
Epistemological
and
Methodological.
ONTOLOGY The Nature of Reality The Nature of that reality we are studying.
What we can know. What can be known about it? Ontological assumptions are those
which concern the very essence of the phenomena under investigation. Suggests that
certain realities exist that we can ultimately know, but there are certain things we
can never comprehend. Those questions that do not relate to matters of real
existence or real action fall outside the realm of legitimate scientific inquiry.
EPISTEMOLOGY What Can We Know? The Philosophy of Knowledge How and
where do we collect the data? Multiple methods and ways of thinking. What is
the relationship between the knower and what can be known? The Epistemological
assumption are assumptions about the grounds of knowledge about how one might
begin to understand the world and communicate this as knowledge to fellow human
beings.
obtained, and how one can sort out what is true from what is false. How do we
know what we know?
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Popper
POST-POSITIVISM
Simon
CONFLICT THEORY
Feyerabend
INTERPRETIVISM
Charles Taylor
CONSTRUCTIVISM
The relationship between social systems within a societal totality does not
follow any rigidly determined pattern. From this perspective, the functioning of
68 | P a g e
The functioning of the government system, the political system, the economic
system, and the reproduction circuits of the administrative state also is
conditioned by international and transnational forces; thus, the study of the
process of structuration of public administration must take into account the
process of global interpenetration within which public administration operates
today.
Gregory A. DANEKE
Gregory Danekes article is an answer to Harland Cleveland and others scholars who
feel that it is time to put behind us the idea that the politics and administration of
human endeavors are some kind of science. Daneke feels that much of the scholarly
work that has been done in public administration in the recent past has not
contributed to advancing a new paradigm for public administration, but instead have
centered on critiques of positivism and/or neoclassical economic theory.
Daneke
argues that scholars in the discipline should channel their energies into reforming
the systems basic unifying paradigm and to advance it in the direction of a
comprehensive design approach, capable of enhancing the processes of adaptive
learning and institutional evolution.
Daneke then presents a new prospective paradigm called Advanced Systems Theory.
This emerging paradigm builds on general systems theory and contemporary
economics, while integrating a number of unique ingredients derived from advances
in the physical, biological, and cognitive sciences. By incorporating new knowledge
from works in diverse areas such as chaos theory and quantum logic, the social
sciences (and public administration in particular) may be able to overcome their
current lack of progress in paradigm development.
PA IDENTITY CRISIS
Denhardt argues that PA has been limited in the past by two important positions
deeply rooted in the history of the discipline:
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occur.
PA theory draws its greatest strength and its most serious limitation from its
diversity. This diversity often means that the field lacks a sense of identity.
ROSENBLOOM (1983) 3 Approaches to PA Theory: Managerial, Political & Legal.
PA administrators have the unenviable position of having to balance the various
interests represented by these three approaches.
HART & SCOTT (1982) American PA has been taken over by the values of American
Business Management.
affairs. Hart & Scott argue that the conduct of public affairs should be guided by the
natural-law values of our constitutional foundation.
OSTROM (1980) The study of PA should not be treated as strictly natural
phenomena. The methods of the natural sciences are not fully appropriate to the
study of PA. Instead, we need to look upon administrative tasks and administrative
arrangements as works of art or as artifacts.
Robert DENHARDT In support of CRITICAL THEORY.
Denhardt begins by stating the problem: We are in a situation in which we seem to
be somewhat unsure of the historical and philosophical grounding of our work.
Denhardt recognizes that we can trace the roots of our heritage in many directions,
but as we do, we discover that there are serious conflicts among our ancestors.
(Denhardt, 1981)
In short, the problem he identifies is that our concern for making public
administration an object of scientific study has often been at odds with our interest
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Neumann cautions us that although it may seem that all the major
questions have been put to rest, in truth we have only produced the answers that
our existing vision has enabled us to find. What is needed is a paradigm shift in
public administration.
Neumann concludes by suggesting a new paradigm based on non-linear systems
theory. He feels that this world view appears to have great implications not only for
the physical world, but for the social world as well. He adds: the new paradigm is
that of the nonlinear system.
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theory is providing researchers with a new view of both physical and social systems.
Some of the characteristics of these systems might be considered to be of important
for application to public administration and public management.
Neumann gives
guidelines for the development of a new paradigm based on reasons why the older
understanding of organizations may now be inadequate:
Complex problems require complex mechanisms of solution.
Attention to the parts of the problem may not solve the whole of the problem.
Nonlinear systems do not necessarily tend toward equilibrium.
Mechanisms of positive feedback are widespread and may cause unforeseen
deviation amplification.
Complexity may develop spontaneously in a system.
Natural complex systems contain a balance of both random and deterministic
elements.
Accurate forecasts for future states of the nonlinear system may not be
attainable.
Related COMPS QUESTIONS:
Take a paradigmatic stance and make the case on what kind of social scientist
you are. Make a convincing argument.
73 | P a g e
Equal application of the law is translated into the equal (and impersonal)
application of the rule in bureaucracy.
Weber argued that the bureaucrat should stay out of politics and limit himself
to the impartial administration of his office, and that he should subordinate
his personal opinion on matters of policy to his sense of duty.
Called for bureaucrats to be the neutral servants of their political masters. (like
Wilsons call that administrators should be responsible only for the efficient
execution of the law.)
Weber identifies bureaucracy as the dominant organizational form in a legalrational society. Complexity breeds bureaucracy.
continuous basis, not simply at the pleasure of the leader. Tasks are divided
into functionally-distinct areas, each with the requisite authority and sanctions.
Offices are arranged in a hierarchy.
distinct from those of the members as private individuals. The officeholder does
not own the office, cannot be sold or passed-on, etc. Administration is based
on written documents. Control is based on impersonally-applied rules.
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Wilson insisted that administration lies outside the proper sphere of politics
and that general laws which direct these things to be done are as obviously
outside of and above administration. He likens administration to a machine
that functions independent of the changing mood of its leaders.
"It is harder for democracy to organize administration than for a monarchy. The
very fact that we have realized popular rule in its fullness [sic] has made the
task of organizing that rule just so much more difficult....the people cannot
agree on something simple; advance must be made through compromise, by a
compounding of differences by a trimming of plans and a suppression of too
straightforward principles."
"A clear view of the difference between the province of constitutional law and
the province of administrative function leave no room for misconception. Public
administration is detailed and systematic execution of public law. Every
particular application of general law is an act of administration. The broad
plans of governmental action are not administrative; the detailed execution of
such plans is administrative."
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differences of condition into its essential tenet. We can never learn either our
weaknesses or our virtues by comparing ourselves with ourselves.
"Our duty is to supply the best possible life to a federal organization, to systems
within systems, to make town, city, county, state and federal governments live
with a like strength and equally assured healthfulness."
Frank GOODNOW (1900) Politics and Administration: Goodnow argues that there
are two distinct functions of government:
expressions of the state will. Administration has to do with the execution of these
policies.
Frederick TAYLOR (1919) Father of the Scientific Management Movement:
Efficiency and finding the ONE BEST WAY through empirical analysis and time &
motion studies.
His
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science in its own right; the mission of administration is economy and efficiency,
period.
The net result of these early authors was to strengthen the notion of a distinct
politics/administration dichotomy by relating it to a corresponding value/fact
dichotomy.
WILLOUGHBY (1927) Principles of Public Administration: SECOND TEXTBOOK
DEVOTED IN TOTO TO THE FIELD.
Argued that certain scientific principles of administration were there, that they could
be discovered, and that administrators would be expert in their work if they learned
how to apply these principles.
Luther GULICK - The Dean of Public Administration.
sector operations.
A strong executive is
required because neither the public nor the legislature is capable of the
planning needed by an effective govt.
On Federalism: National legislators often enact policies that ignore the needs of
state and local governments.
In relations between branches of govt., the executive should plan, propose, and
implement public policies and the legislative should be restricted to review and
approval.
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Span of control Gulick warns that effective span of control is limited at each
level of the org by the knowledge, time, and energy of the supervisor. The span
of control can be extended where work is routine, repetitive, measurable, and
homogeneous in character.
DICHOTOMY
Gulick
breaks
Politics/Administration Dichotomy.
from
the
Classical
authors
re:
the
The successful
Gulick felt that public and private sectors should become partners in a
cooperative enterprise serving the common good.
The role of the state should be limited because of uncertainty about the future.
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which
included
articles
on
organization
theory
and
public
79 | P a g e
Barnards ideas fit perfectly with Mayo & Roethlisberger, such as the
assertion that group identity and social recognition are more important
than power and money.
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DECISION MAKING Barnard felt that individuals are limited in their power to
choose by physical, biological, and social factors. Simons SATISFICING MAN
model with its bounded rationality is firmly rooted in Barnards explanation of
individual behavior.
Simon
INCREMENTALISM,
MUDDLING
THROUGH,
MUTUAL
ADJUSTMENT
Lindblom contends that hierarchy runs counter to the ideology and ethos of
democracy.
perpetuate themselves.
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This thwarting of control is possible both in the public and private orgs.
If the market system is a dance, the STATE provides the dance floor and the
orchestra. Polyarchy and democracy are both directed by the same mechanism
mutual adjustment among competing interests.
The price system dispenses with the necessity of a central authority and
delegates decisions to a large number of individuals whose decisions are
coordinated without the aid of even a supervisory agency.
Lindblom asserts that like all controls, those of the price system function
imperfectly there are market failures.
operates perfectly, it may fail to produce optimal results for the following
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Lindblom argues that all societies are mixtures of governments and markets.
The greatest distinction between one government and another is the DEGREE
to which market replaces government or government replaces market.
It is not democracy that offers a solution to the First Problem of Politics, but
POLYARCHY,
which
is
rough
approximation
of
liberal
democracy.
INCREMENTALISM: LINDBLOM
It simplifies the
Limiting the number of alternatives that are considered, since only those
that are marginally different from previous practice are included.
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Managing risk by making the process serial and remedial and thereby
avoiding the possibility of large, irreversible errors.
Lindblom is best known for incrementalism, but THE REAL CORE OF HIS
THOUGHT is the notion of MUTUAL ADJUSTMENT, which he designated early
on as the HIDDEN HAND IN GOVERNMENT.
Mutual adjustment has origins in Adam Smiths notion that haggling in the
market is guided by the INVISIBLE HAND of the PRICE SYSTEM.
Much as actors in the market seek out mutually beneficial exchanges, actors in
government seek out areas of agreement as the basis for constructing winning
coalitions.
One
is
reminded
of
FOLLETTS
CIRCULAR
RESPONSE,
instances is self-interest.
He believes that mutual adjustment is not only more common than, but also
generally superior to, centralized decision making.
Lindblom was the first to point out that policymaking and decision making do
not proceed hierarchically and unilaterally, but depend highly on the supportive
organization.
This limited
focus simplifies the process because it allows different parties to agree on the
same policy for different reasons.
Bargaining treats values as central to the process rather than excluding them,
AS SIMON HAD DONE, and it takes us into a palpably political setting.
Lindblom argues that there are identifiable benefits from the use of bargaining
in the public decision process that parallel those of the market system.
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IMPAIRMENT: LINDBLOM
The problem with the American political process is IMPAIRMENT. The culprit is
BUSINESS, which occupies a privileged position in the American political
process.
and
manipulation.
Advertisements
convey
non-and
Lindblom argues that more than ever before, humankind is crippled in its
capacity to think critically and independently about social problems.
THE BEHAVIORAL APPROACH: Entails the study of actual behavior, usually taking
the individual as the preferred unit of analysis. This approach calls for rigor in the
use of scientific procedures; and it is primarily descriptive in intent. Behavioralism
incorporates a diversity of perspectives, including the Human Relations Movement,
Simons model of decision making, organizational humanism and contingency
theory. The major thrust of the Behavioral approach was organization structure and
management, not definition of the field. The Behavioral approach sought to modify the
hierarchical org structures so ardently espoused by the Classical authors.
Whereas
the
Classical
approach
emphasized
executive
decision
making
Mary Parker Follett Distinguishing feature of her work is her treatment of Social
Conflict.
Follett argues that conflict itself is neither good nor bad, but simply
85 | P a g e
Social Conflict - Follett argues that we can use conflict to produce harmony,
not simply victory or accommodation.
Power & Control: The desire for power is a predominant feature of life and
power is always unequally distributed.
integration through circular response both transforms power and increases it.
Power is transformed from Power Over to Power With. In an org setting,
this means that managers should give workers a chance to grow capacity
or power for themselves.
Group Process & Group Dynamics A central theme, Follett argues that
individuals achieve their true expression in group relationships. She considers
the State to be both a logical extension of the group process and its
highest expression; both the group and the State serve a purpose greater than
individual interests.
Authority should flow from the Law of the Situation (the objective
demands of the work situation), rather than being based on personal
imposition. Authority is cumulative in nature, and comes from the bottomup.
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Leadership is the ability to create functional unity in the org through the proper
correlation of controls, rather than personal power to command based on
position.
FOLLETT
CONCLUDES:
WHATEVER
HEIGHTENS
SELF-RESPECT
Elton MAYO Mayo echoes two of Folletts basic themes: The importance of the
Group Process and the Cumulative Nature of Authority in the organization.
Mayo argues that modern society suffers from a breakdown of the social
routines of traditional society.
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important than technical logic and the material interests of the individual.
Mayos empirical research led him to concentrate on the role of the social
group within the organization in determining the individuals attitude
toward work.
Mayos work was largely responsible for a major shift in the study of
organizations.
88 | P a g e
SATISFICE (he makes limited decisions that are merely satisfactory and sufficient for
the situation.
Simon offered an alternative to the old paradigms (politics/admin dichotomy,
principles of administration). For Simon, a new paradigm for public admin should
involve TWO KINDS OF ADMINISTRATORS WORKING IN HARMONY Those
concerned with developing a pure science of administration based on a thorough
grounding in social psychology, and a larger group concerned with prescribing for
public policy. Simon agreed with Barnard that complex formal orgs evolve from
and consist of simple formal orgs. Simons SATISFICING MAN model with its
bounded rationality is firmly rooted in Barnards explanation of individual
behavior.
DAHL 1946 PAR article backed-up Simon by highlighting the major obstacles
facing any effort to establish a science of administration based on general principles.
89 | P a g e
questioned
mistrusted
those
the
plausibility
who
of
unified
would indiscriminately
theory
of
intermingle
Waldo denies that politics and policy considerations can be excluded from
administration.
Also, since administration cannot be separated from politics, Waldo argues that
public
administration
is
different
from
private
administration,
being
Waldo denies that politics and policy considerations can be excluded from
administration.
Waldo criticized TAYLOR for regarding his laborers essentially as draft animals.
90 | P a g e
Waldo argues that the Classical approach ignores the irrational and informal
aspects of organizations. Regarding WEBERS concept of bureaucracy, Waldo
argues that Weber placed undue emphasis on the functional side of
bureaucracy, ignored the informal and socioemotional aspects of organizations,
and elevated position over knowledge as the basis for hierarchical authority.
Critique of efficiency Waldo argues that the idea of efficiency itself be came
imbued with a moral significance, and the Classical approach was originally
intended to replace a moralistic approach to public administration.
Moreover, the
91 | P a g e
The
in
demonstrated
org
the
behavior.
limitations
The
of
Human
Relations
perspectives
such
as
Movement
Scientific
Management.
o
Waldo
perspective,
the
objective
is
to
achieve
organizational
92 | P a g e
Administrative Behavior. If Simon represented the hard side of the social sciences,
Waldo represented the softer approaches.
Central Issue of our time: the potential conflict between bureaucracy and
democracy.
Waldo was critical of the popular conception of science dealing with facts alone, and
that it is possible to apply the empirical methods of the physical sciences to human
affairs without taking into account the cultural and social context of the observed
phenomena.
Waldo believed that PA must give priority to carefully and critically examining
normative theories rather than generating the kind of empirical theories advocated by
logical positivist approaches.
Waldo sponsored the MINNOWBROOK I conference and resulting book Toward a
New PA. Several attendees were frustrated that PA was being increasingly identified
93 | P a g e
as simply a profession, and they argued that PA should have full disciplinary status as
an empirical social science. The desire of obtaining disciplinary status was pervasive
at the conference, but so was the desire to maintain the normative standards central
to Waldos approach.
94 | P a g e
Classical
approach
(scientific
management
and
the
principles
of
administration). This dominated the field until the end of WWII. The postwar attack
on that consensus came in the form of criticisms from two directions:
SIMON who sought to create a social science focused on administration and PA
as its own DISCIPLINE within the social sciences, or as a sub-field of Political
Science.
WALDO who sought to create a normative agenda for the field more as a
PROFESSION than a discipline.
Waldo rejected the two traditional alternative solutions: sub-disciplinary status within
political science, and status as a distinct discipline among the Social sciences.
Instead, Waldo advocates for a profession. We try to act as a profession without
actually being one.
science and art, theory and practice, study and application are included under the
umbrella of a profession. Not based on a single discipline, but utilizes many.
Not
united by a single theory, and is justified and given direction by a broad social
purpose.
95 | P a g e
must encompass
that strong
commitment to purpose.
Waldo explicitly attacks the assertion that decisions can be analyzed without
reference to values.
Simon criticized the loose, literary style that political theorists adopt. Simon
characterized his critics as political theorists whose criticisms were faulty and
lacking in rigor.
Chicago School behavioralism Public Admin scholars trained at Univ. of Chicago.
Charles Merriam and others were advocates for an empirical political science. While
stressing the need to apply scientific methods to the study of politics and
government, the behavioralists at Chicago were also progressives and New Dealers
committed to political change.
MINNOWBROOK I Waldo sponsored conference and resulting book Toward a New
Several attendees were frustrated that PA was being increasingly identified as
PA.
simply a profession, and they argued that PA should have full disciplinary status as
an empirical social science. The desire of obtaining disciplinary status was pervasive
at the conference, but so was the desire to maintain the normative standards central
to Waldos approach.
THE BLACKSBURG MANIFESTO 1980s maintained the Waldo-inspired aversion
to endorsing a social science disciplinary identity for the field. They blamed Simon
and the positivist/behavioralist movements in political science and organization theory
for diverting PA theory into an intellectual cul-de-sac and creating tacit boundaries
that took decades to overcome.
MERTON Criticized WEBERs IDEAL-TYPE BUREAUCRACY has inhibiting
dysfunctions which prevent it from being optimally efficient. Bureaucracy also
has negative effects on people.
SELZNICK (1948) Foundations of the Theory of Organization: TVA and the
Grass Roots.
Orgs consist not only of positions for management to control, but of individuals
with goals and aspirations that may not coincide with the orgs formal goals.
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Rudolph Carnap Logical Positivism (member of the Vienna Circle). Carnap offered
a clear vision of what constitutes a science: the presentation of knowledge in
empirically verifiable statements untainted by the bias of values or ethical statements.
It is a position Simon adopts in the final chapter of his dissertation
Administrative Behavior: science is interested in sentences only with regard to their
verification.
MOSHER 1956 Wrote about the boundary-spanning problems in PA.
The
In Ethics for Bureaucrats, Rohr argues that the fundamental ethical problem
facing PA was in exercising discretionary authority, a problem that could be
overcome by clearly understanding the values of the regime.
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Wilson insisted that administration lies outside the proper sphere of politics
and that general laws which direct these things to be done are as obviously
outside of and above administration. He likens administration to a machine
that functions independent of the changing mood of its leaders.
Frank Goodnow 1900 - Politics and Administration. Goodnow argues that there are
two distinct functions of government:
expressions of the state will. Administration has to do with the execution of these
policies.
Taylor 1919 Father of the Scientific Management Movement. Efficiency and finding
the ONE BEST WAY through empirical analysis and time & motion studies.
Leonard White 1926 Introduction to the Study of Public Administration.
FIRST
science in its own right; the mission of administration is economy and efficiency,
period.
WILLOUGHBY (1927) Principles of Public Administration.
DEVOTED IN TOTO TO THE FIELD.
SECOND TEXTBOOK
administration were there, that they could be discovered, and that administrators
would be expert in their work if they learned how to apply these principles.
The net result of these early authors was to strengthen the notion of a distinct
politics/administration dichotomy by relating it to a corresponding value/fact
dichotomy.
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POSDCORB
Administrative Control.
Logical
Simon shares with the Classical approach the objective of developing a science
of administration, an effort to describe a value-free domain for the construction
of that science, a quest for general principles of administration, the acceptance
of efficiency as the criterion for decision making, and an emphasis on hierarchy
as well as its justifications (coordination, superior rationality, and the location
of responsibility).
Simon was determined that the fact-value dichotomy was the appropriate
substitute for the politics/administration dichotomy in defining the domain for
the construction of a science of administration.
Economic Man is translated by Simon into Satisficing Man, who has features of
both Economic and Administrative Man.
Simon argues that hierarchy simplifies the decision making task. He contends
that hierarchy is THE adaptive form for finite intelligence to take in the face of
complexity.
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Managerial approach to the study and field risks forgetting the HUMAN
FACTOR.
MOSHER (1956)
Provided the foundation for understanding how public service has developed in
the U.S. and how merit and collective systems impact democracy and the public
interest.
Noted that
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the reason why a scientific field of administration never came about because
no one can resolve this discrepancy.
LEVELS OF GOVERNANCE:
o
REPRESENTATIVE
CITIZEN, as
they are
citizens
themselves.
Graham ALLISON (1972) Essence of Decision.
Book tried to explain why the governments of U.S. & Soviet Union did what they
did during the Cuban Missle Crisis. Why do governments do what they do?
The book is based on the notion that there is not too little management
reform in government, but TOO MUCH. Congress and the Presidency have
moved effortlessly from one reform philosophy to another and back again, rarely
questioning the contradictions and consequences of each separate act. Light
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used the Congressional Quarterly Almanac to identify and analyze 141 federal
management statutes signed into law from 1945 to 1994.
MARKET
PARTICIPATIVE
FLEXIBLE
DEREGULATED
John KINGDON (1984) - Policies get made into law by capitalizing on WINDOWS of
opportunity. TIMING IS EVERYTHING.
Hawthorne/Mayo findings.
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Argues that PUBLIC CHOICE THEORY is the way of the future and that PA
should embrace the concept as modern and revolutionary. (Niskanen, Tullock,
Downs used econ & mathematical models to demonstrate bureaucratic
wastefulness and irresponsibility calling for limiting government).
Self-Interested
Rational
Benefit-Maximizing
Uncertainty-Minimizing
Ostrom argues that there is a persistent crisis in PA starting with the war
years, which provoked a challenge from which the field of PA has not
recovered.
failures.
o
104 | P a g e
attacks, the crisis of identity has not been resolved. What I propose is
that we try to act as a profession without actually being one.
o
(1967,
1985)
Organizational
Learning
and
Organizational
Development.
Lipsky first brought the term street-level bureaucracy to the attention of the
field by pointing out that public policy is determined not merely by legislators
and managers at high levels of government but by the police officer, the nurse,
and the welfare worker (among others), who engage in the direct delivery of
services.
Lipsky writes that the decisions of the street-level bureaucrats, the routines
they establish, and the devices they invent to cope with uncertainties and work
pressures, effectively become the public policies they carry out.
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Minnowbrook I was held to discuss the fields desires to move values and
norms to a central position in theory and practice.
The paper resulting from the meeting was The Blacksburg Manifesto.
Calls for a shift in the current political dialogue about PA and to encourage
future work on a normative theory.
Calls
for
redefinition
of
the
public
administration
to
The
Public
106 | P a g e
John ROHR To Run a Constitution: The Legitimacy of the Administrative State. (from
Ch. 2 in Wamsley, et. al. Refounding Public Administration).
Rohr finds support for the ideas in the Blacksburg Manifesto in the Federalist
Papers. The concern for a sound public administration was one of the Framers
most serious concerns.
Rohr argues that the Founders would have been upset at the current practice
of Presidents removing subordinates from office and appointing their own
team without first obtaining the consent of the Senate.
Rohr argues:
o
Administrative
institutions
are
not
inconsistent
with
the
107 | P a g e
The higher reaches of the career civil service fulfill the framers
original intent for the Senate.
That the entire career civil service provides a remedy for a serious
defect in the Constitution (the inadequate representation that so
distressed the Anti-Federalists of 1787-1788).
He
then
argues
that
administrators
should legitimately
participate
in
authorizing.
Charles
GOODSELL
(from Ch. 3 in
Refounding Public
Administration).
Goodsell argues that the public interest is the standard that guides the
administrator in executing the law.
Despite its flaws, the public bureaucracy performs many important functions
and is far less oppressive to its members and clients than conventional wisdom
contends.
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Goodsell & others created the Blacksburg Manifesto, which seeks to develop a
more positive role for the bureaucracy in a pluralist system of governance.
Gary WAMSLEY (from Ch. 4 in Wamsley, et. al. Refounding Public Administration).
Wamsley feels that the challenges facing the American political economy in the
future will require a more effective Public Administration than we have today,
but that this cannot take place unless a normative guide is created that
clearly answers questions about administrative power, and that recognizes
a level of authority and discretion essential for empowering the work of
Public Adminstrators.
Yet
When life is
reduced this way, there exists a possibility of losing the human principle itself.
Camilla STIVERS - (from Ch.7 in Wamsley, et. al. Refounding Public Administration).
109 | P a g e
No-staters turn the PA dichotomy on its head and advocate for a clear
division between the political appointees and the careerists, with a larger
role for the political appointees
No-staters bifurcate what is good for society (Unseen Hand of the Market)
from what is good within the government (Authoritarian, rigid hierarchy
and strict controls)
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Bold State (Hamilton) Leonard White, Louis Browlow & Gulick are the
founders of this tradition
o
Recognize
the
difference
between
public
and
private
sector
administration
o
Have trouble justifying their vision, and seem to stand a bit one-sided
with bureaucracies
Creatures
of
post-WWII
American
state
system,
globalism,
Carries the toolbag analogy a bit too far, making this view of PA the
grand-son of Frederick Taylors Scientific Management
Critics point to the positivist nature of the writings in this view, takes a
dim view of the non-rational problem solving that must take place,
promotes antidemocratic elitism, and places too much faith in the
111 | P a g e
These
Ethics for PA begins with DUTY. The duty-based approach to ethics derives the
responsibilities of public administrators from the nature of the office they
occupy.
Need to balance:
o
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administrators should work for what the public needs, not what the public wants.
Second, that public administration can only function through institutions. And third,
public administrators must be obedient to the orders of their superiors. Finer felt that
the a public administrator should have little or no flexibility or discretion and that in
order to be truly accountable to the public, administrators must be provided with
more than a sense of moral responsibility. Finer believes that moral responsibility is
likely to operate in direct proportion to the strictness and efficiency of political
responsibility and to fall into disarray if this political responsibility is not strictly
enforced via sanctions. He was firm in his belief that professional standing and a duty
to the public were not enough; sanctions were necessary to keep public administrators
ethical.
What All the Fuss Was Originally:
This debate between Finer and Freidrich over how to make public administrators
ethical actors and responsible to the public became extremely important for
administrators practices of how to enforce ethical behavior, whether through
sanctions or through moral obligation and guilt.
Why It Is Still a Significant Article Today:
The exchange between Finer and Freidrich is the most cited article/exchange
discussing the "best" strategy for achieving accountability in public administration.
NIETZSCHE Was alarmed and distressed by the decline of individuality and free
expression in the machine age.
DENHARDT 1984
VALUES are the very fabric of society and possibly the most basic reason for
the existence of government. Sociologists define values as part of CULTURE:
the entirety of values, norms, goals and expectations in a given society.
114 | P a g e
From these values, NORMS are derived: more specific and concrete guidelines
for behavior, the written and unwritten rules that guide social interaction and
communication and that determine the ways in which we associate and act.
THE
IDEAL
ORGANIZATION
FOR
LEGAL-RATIONAL
AUTHORITY
TO
JEFFERSONIAN
Weak
Executive,
Bottom-Up
Devolved
Power,
MADISONIAN Balance-of-Power Centered. Modern Pluralist way. MiddleWay. Varieties of Orgs play a part.
115 | P a g e
is
more
inefficient
and
corrupt
than
private
administration.
MODELS OF PUBLIC DECISION MAKING (RAAD I p. 255-259)
RATIONAL-COMPREHENSIVE MODEL
Assumes the decision maker has access to all needed information, ability,
intellect, time, etc. and is able to select the ONE BEST solution. It presupposes
that individuals are out to maximize their self-interest. Values are separated
from facts.
Lindbloms model
provided the foundation for a more realistic analysis of BUDGETING that his
student WILDAVSKY provided in The Politics of the Budgetary Process. Values
rather than facts determine budgetary decisions (view shared by Guy PETERS).
model
unsatisfactory.
is
more
realistic
than
Simons
model, but
is
still
input via sensitivity sessions and brainstorming. Policy Gambling: Dror argues
that every policy is a RISK and may not work, but it is important to TRY and
Experiment.
Distinguishes
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decentralization,
focused
on
productivity,
accountability.
NPM
is
marketization,
more
service
ideological
orientation,
(Republicans
&
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GOVERNANCE THEORY talks about the RELATIONSHIP between Govt. & Society.
Governance is about PROCESS, NPM is about OUTCOMES. Governance is a theory
about Politics. Tries to explain what government does and how to make it better.
BOTH NPM and GOVERNANCE THEORY believe that government is too distant from
the citizen and clientele. Capitalism is helpful in correcting deficiencies. Both are
results oriented.
ROW.
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clearly defined; there was promotion through seniority and disciplinary control. Weber
believes that this influenced modern society and how we operate today, especially
politically.
Webers characteristics of an ideal bureaucracy:
1. Hierarchy of authority
2. Impersonality
3. Written rules of conduct
4. Promotion based on achievement
5. Specialized division of labor
6. Efficiency
Weber believed that bureaucracies are goal-oriented organizations that are based on
rational principles that are used to efficiently reach their goals. However, there are
constraints within this bureaucratic system.
Negative effects of bureaucracies
Bureaucracies concentrate large amounts of power in a small number of people and
are generally unregulated. Weber believed that those who control these organizations
control the quality of our lives as well. Bureaucracies tend to generate oligarchy; which
is where a few officials are the political and economic power. Because bureaucracy is a
form
of
organization
superior
to
all
others,
further
bureaucratization
and
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individual situations
are
bureaucracies will become more dominating over time unless they are stopped. In an
advanced industrial-bureaucratic society, everything becomes part of the expanding
machine, even people.
While bureaucracies are supposed to be based on rationalization, they act in the exact
opposite manner. Political bureaucracies are established so that they protect our civil
liberties, but they violate them with their imposing rules. Development and
agricultural bureaucracies are set so that they help farmers, but put them out of
business due to market competition that the bureaucracies contribute to. Service
bureaucracies like health care are set to help the sick and elderly, but then they deny
care based on specific criteria.
Debates regarding bureaucracies:
Weber argues that bureaucracies have dominated modern societys social structure;
but we need these bureaucracies to help regulate our complex society. Bureaucracies
may have desirable intentions to some, but they tend to undermine human freedom
and democracy in the long run.
Rationalization destroyed the authority of magical powers, but it also brought into
being the machine-like regulation of bureaucracy, which ultimately challenges all
systems of belief.
It is important note that according to Weber, society sets up these bureaucratic
systems, and it is up to society to change them. Weber argues that it is very difficult to
change or break these bureaucracies, but if they are indeed socially constructed, then
society should be able to intervene and shift the system.
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1.14 Paradigmatic
Development
Progress
in
Public
Administration:
Knowledge
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The relationship between social systems within a societal totality does not
follow any rigidly determined pattern. From this perspective, the functioning of
the reproduction circuits of the administrative state, and consequently a
government's capacity to structure them, is conditioned by the interplay of the
government system, the political system, the economic system, and the internal
dynamic of the administrative state.
The functioning of the government system, the political system, the economic
system, and the reproduction circuits of the administrative state also is
conditioned by international and transnational forces; thus, the study of the
process of structuration of public administration must take into account the
process of global interpenetration within which public administration operates
today.
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Daneke
argues that scholars in the discipline should channel their energies into reforming the
systems basic unifying paradigm and to advance it in the direction of a
comprehensive design approach, capable of enhancing the processes of adaptive
learning and institutional evolution.
Daneke then presents a new prospective paradigm called Advanced Systems Theory.
This emerging paradigm builds on general systems theory and contemporary
economics, while integrating a number of unique ingredients derived from advances in
the physical, biological, and cognitive sciences. By incorporating new knowledge from
works in diverse areas such as chaos theory and quantum logic, the social sciences
125 | P a g e
(and public administration in particular) may be able to overcome their current lack of
progress in paradigm development.
scholars can look to for inspiration in developing a new paradigm for public
administration,
including
recent
innovations
in
fractal
geometry,
theoretical
mathematics, chaos theory, evolutionary systems theory, and general systems theory.
Daneke concludes by suggesting that the best road to a Grand Theory should
include the work of systems theory. He concedes that systems theory has many flaws,
but that these can be addressed by developing an Advanced Systems paradigm.
Advanced systems would allow applied policy and administrative studies to do all that
they are currently doing, maintaining and conceptually enhancing many applied
economics and systems analytics. Yet, advanced systems would also extend concepts
and techniques to embrace insights arising from paradigmatic revolutions in other
sciences.
ecology;
Some of these include: resiliency, co-evolution from the new biology and
observer/observation-interaction
mutual
causality,
potential,
complementarity and others from quantum logic and physics; dissipative structures,
order through fluctuation, and chaos theory from physical chemistry and theoretical
mathematics; theories of creativity, cognition, and intuition from computer science.
I feel that Danekes article is pointing to a meta-inclusive paradigm that may not only
be applicable to explaining activity and behavior in public administration, but also to
society and social networks as a whole. I feel that he is leaning toward development of
a more science orientation for the discipline, but this may be difficult considering the
social forces also at work.
Toward A Critical Theory of Public Organization.
Robert B. Denhardt (1981).
Public Administration Review, 41(6), 628-635.
Denhardt begins by stating the problem: We are in a situation in which we seem to be
somewhat unsure of the historical and philosophical grounding of our work.
Denhardt recognizes that we can trace the roots of our heritage in many directions,
but as we do, we discover that there are serious conflicts among our ancestors.
(Denhardt, 1981)
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In short, the problem he identifies is that our concern for making public
administration an object of scientific study has often been at odds with our interest
in extending the normative principles we associate with democratic governance. The
purpose of the article is to examine recent works in critical theory, while addressing
implications for developing a comprehensive theory of public organization. Following a
brief review of the development of critical theory, Denhardt focuses on the work of
Jurgen Habermas, who is perhaps the best known contemporary scholar of the critical
approach.
Critical thinking is motivated today by the effort really to transcend the tension and
to abolish the opposition between the individuals purposefulness, spontaneity, and
rationality, and those work-process relationships on which society is built. (Denhardt,
1981). The critical perspective proffered by Habermas includes the following aspects:
It examines:
The scientization of political life and the reduction of the public sphere, and
127 | P a g e
institutionalized.
understanding
the
Organizational
nature
of
members
their
and
clients
relationships
with
might
one
be
aided
another
in
through
128 | P a g e
Neumann says that these questions are not incorrect or irrelevant, but they are at the
wrong level. Neumann argues that Behns questions are not big questions at all, but
are for an argument at a much lower level.
multifaceted and extend into dimensions of which we are never fully cognizant at any
one time.
Neumann cautions us that although it may seem that all the major
questions have been put to rest, in truth we have only produced the answers that our
existing vision has enabled us to find. What is needed is a paradigm shift in public
administration.
Neumann concludes by suggesting a new paradigm based on non-linear systems
theory. He feels that this world view appears to have great implications not only for
the physical world, but for the social world as well. He adds: the new paradigm is
that of the nonlinear system.
theory, is providing researchers with a new view of both physical and social systems.
Some of the characteristics of these systems might be considered to be of important
for application to public administration and public management.
Neumann gives
guidelines for the development of a new paradigm based on reasons why the older
understanding of organizations may now be inadequate:
Attention to the parts of the problem may not solve the whole of the problem.
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Accurate forecasts for future states of the nonlinear system may not be
attainable.
Neumann notes that several authors (Jantsch, Ashby and Kiel and others) have
supported the idea that the tenets of chaos theory can be married with the more
traditional perspectives of political science and public administration.
paradigm, the organization is again terra incognita, and the implications for the
discipline are truly profound.
needed, one that has the goal of developing a united theory for our discipline, even if it
borrows from the important work being done in other fields.
From Responsiveness to Collaboration: Governance, Citizens and the Next
Generation of Public Administration.
Eran Vigoda (2002).
Public Administration Review, 62(5), 527-540.
Vigodas article centers on the problem of illuminating the differences between
responsiveness and collaboration with regard to modern public administration. He
argues that there is an inherent tension between better responsiveness to citizens as
clients and effective collaboration with them as partners. The differences between
responsiveness
and
collaboration/partnership
are
not
merely
conceptual
or
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the
orientation
of
government
and
public
administration
toward
disguises the truth that the citizens are not just customers, they are the owners, and
should be treated as such. Vigoda argues that neo-managerialism and New Public
Management encourage passivity among the citizenry by limiting opportunities for
inclusion in decision-making. Vigoda feels that collaboration is an indispensible part
of democracy, and that citizens are being relegated to a lower experience without their
knowledge. He recommends that future theory building work should concentrate on
the view of citizen collaboration with government, while giving up on the misguided
notions of customer and responsiveness.
The central argument is in how government and public administration view and treat
the citizenry. The choice at hand is between a view of citizens being treated as clients
and customers, or being perceived as equal partners in the process of governance.
Vigoda suggests that the old public administration treated citizens as subjects. With
the installation of the voter electoral system, another style of citizen-government
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1.15 Outlines
FOUNDATIONS
Tensions btw Bureaucracy/Democracy
Raadschelders (2003, 316) Democracy is the rule of the people; bureaucracy is the
rule of bureaus.
Aristotelian/Platonic view of three types of power:
Monarchy/Tyranny
Aristocracy/Oligarchy
Polis/Democracy
undermines
bureaucracy
by
advancing
representativeness
over
Peters (1996 & 2001, 26) Bureaucracies undermine democracy in four fundamental
ways:
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Hierarchy insulates the policy decision-making core from political leaders and
citizens
Svara (2007) suggests that administrators are ultimately responsible to its masters
and political creators.
Frederickson (1997) believes that administrator is accountable to the public directly by
suggesting the responsibility ennobles the practice of public administration.
Reconciliation
Frederickson (1997, 202) says that bureaucracy should seek to promote democratic
rather than its own values.
This, then, is the model for public service the combination of patriotism (the love of
regime values) with benevolence (the love of others) realized in action.
Bureaucracy should be the guardian of democratic values and pursue them through
efficient, effective and equitable administration. It is in a unique position to do so
because of bureaucratic permanence and day-to-day administration of government.
Raadschelders (2003, 379-388) Balance along several continuums is the way to
reconcile tensions between bureaucracy and democracy:
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issues,
normative
planning
versus
management
Efficiency
Economy
Order
Predictability
Due Process
Protecting Boundaries
Be responsive to the policy goals of political superiors while fairly examining all
policy options and exercising leadership appropriate to position (democracy)
There an appropriate level of ethics properly integrated into the organization will
greatly improve the situation.
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Essentially, Stillman
argues that Waldo identified our thinking or academic side as public-oriented while
our action or pragmatic side is administrative-oriented. Stillman argues for us to
embrace this disjunction in order to find the answer or bridge the identified gap.
Waldo (1968)
Two 1968 essays by Dwight Waldo reflect on the state of the field of PA. Waldo rejects
the two traditional solutions to the identity crisis: sub-discipline of political science or
something else OR a distinct discipline among the social sciences
Waldo advocates, instead, for the solution that we try to act as a profession without
actually being one, and perhaps without the hope or intention of becoming one in any
strict sense.
The profession argument uses medicine as an example of science and art, theory and
practice, study and application all fitting nicely under an umbrella of profession.
It is not based on a single discipline, but utilizes many. It is not united by a single
theory, and is justified and given direction by a broad social purpose.
Waldo agreed with Simon on the shortcomings of scientific management and the
principles approaches, but was more skeptical than Simon of efforts to rely solely on
logical positivist methods in development of a theory for PA.
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dealing
with
the
theoretical,
methodological,
epistemological
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Existential crisis concerns itself with study and practice of PA/government, dealing
with authority, legitimacy and credibility crises.
This refers in part to the legitimacy of the administrative state
The following refers to the academic crisis as it relates to Raad:
5 paradigms
PA Dichotomy 1900-1926
PA as PA (?) 1970 - ? (PA comes into its own, following the Simon
prescription in 1947)
Frederickson Questions
Rainey Answers
Not very
No
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Mine!
Five paradigms:
o
Positivist
Interpretivist
Conflict
Post-modern
Given that, most professors dont see Henrys 1975 work as really being paradigms
they are more like theories. But that really depends on your definition of paradigm,
doesnt it?
Henry accounts for this in his article by using paradigm as How mainstream public
administrationists have perceived their enterprise during the last 80 years
Stanley is using the Kuhn paradigmatic definition
Rainey points out the Kuhn used paradigm in 21 distinct senses in 1962
French, Spears & Stanley (2005) The Fifth Paradigm of Public Administration?...
Once Public Org Theory is redefined as Public Org Efficacy, paradigmatic progress can
begin
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General Thoughts
A large limitation of this view is that if the Reformist movement started PA, what was
going on in America prior to the turn of the twentieth century?
The limitation of viewing PA as rooted in reform is that is does not take into account
the values discussion to which several writers continue to return
While it may be true that PA was born out of and has continuously sought civil
service/personnel reform; continued with any number of various budgetary reforms;
and has more recently involved privatization and Reinventing Government reforms,
to simply view PA as a series of reforms is missing the values component of the
equation
This, in my view, is what the scholars are getting at in the Minnowbrook Conference
and the Blacksburg Manifesto
Rosenbloom (2008)
Makes an argument that the PA dichotomy was misinterpreted from Wilsons (and the
Progressives) original meaning
Rosenbloom insists that the original meaning of politics was narrow, meaning only
partisan politics and not the politics inherent in public policy formulation
Pointing to the civil service reforms right before and during the Progressive Era,
Rosenbloom demonstrates that this was the politics that had to be separated from
administration
Waldo, says Rosenbloom, used a broader definition of politics (that includes policy)
to destroy the dichotomy as a viable view of PA
Further, Rosenbloom recalls discussing the dichotomy with Waldo at Syracuse and
having Waldo label him revisionist but he conceded that my interpretation was more
than viable and made more sense of the dichotomy than any other of which he was
aware.
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Peters (1995)
Civil servants can present themselves as apolitical servants of the state who are able
to serve any government. They can also claim that they are divorced from partisan
politics (235).
Raadschelders (2003)
Kettl points out that evidence of savings does not necessarily mean that contractors
or private suppliers provide the same quality of service nor does it mean that they
have a focus on fairness or equity. (p239)
Stillman (1999)
The dichotomy, which became an important instrument for the Progressive reforms,
allowed room for a new criterion for public action, based on the insertion of
professionalization, expertise and merit values into the active directive of governmental
affairs. In practice too the dichotomy served to justify the institutional developments
of such basic features of the administrative state as the civil service system, personnel
classification and planning systems as well as the introduction of public budgets.
(p112)
No-State (Jefferson) Adam Smith, Milton Friedman (monetarists) AND James
Buchannan, Gordon Tullock, William Niskanen, Vincent Ostrom (public choice)
No-staters turn the PA dichotomy on its head and advocate for a clear division
between the political appointees and the careerists, with a larger role for the political
appointees
No-staters bifurcate what is good for society (Unseen Hand of the Market) from what is
good within the government (Authoritarian, rigid hierarchy and strict controls)
Bold State (Hamilton) Leonard White, Louis Browlow & Gulick are the founders of
this tradition
Tradition is carried on by Robert Denhardt, Charles Goodsell, George Frederickson
and Anne-Marie Rizzo
No single united front in support of one idea, or even a group of ideas
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A Feminist Perspective:
Stivers 2002
The discussion aims to show how womens work and thought were at the center of
the movement to reform city governments and how gender dynamics at the time
resulted in bifurcation between what could have been complementary impulses of
systematization and caring.
state has roots in womens reform work has been obscured because male reformers,
painted by party politicians as effeminate, felt the need to make public administration
masculine by making it muscular that is, scientific and businesslike.
Professionalism
Waldo, Dwight. (1968)
Rejects the two traditional solutions: sub-discipline in political science or some other
discipline and a distinct discipline within social sciences
We try to act as a profession without actually being one, and perhaps without the
hope of intention of becoming one in any strict sense.
Uses the analogy of the field of medicine that is a combination of science and art,
theory and practice, study and application to illustrate the concept of a profession
Van Wart, Montgomery (1998). Changing Public Sector Values
5 Major Sources of Values for Public Administrators are (p. 8):
Individual
Professional
Organizational
Legal
Public Interest
Self awareness
A social ideal
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A national academy
Ethical standards
Community sanction yes and no, often the community/elected officials control
training and standards
Ethics standards yes and no, the ethical standards are often set by legislation
or by someone other than those in the profession
Conclusions:
Positive values of professionalism in PA
Heightened competence
Outside review
Job satisfaction
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Innovation
Client satisfaction
Negatives associated with professionalism in PA
Limited access to profession due to educational requirements
Over-specialization
Excessive control and power
Promotion of self-interest above the public interest
Cost-benefit distortion
Wamsley, Gary; Goodsell, Charles; Rohr, John; Stivres, Camilla; White, Orion and
Wolf,
James.
Refounding
Public
Administration
(a.k.a.
The
Blacksburg
Manifesto) (1982)
Public administration as a profession is immaterial, what matters is that public
administrators act in a professional manner by doing the following:
View themselves as trustees
Pursue the public interest
Adhere to the rule of law and limited government (constitutional)
Prudently accommodate powerful forces
Facilitate real citizen involvement in governance
Be responsive to valid orders
Be conscious of their own values
Be able to give reasons for their actions
Know that social problems dont have quick, cheap or permanent solutions
Some solutions are market-based; some come from the state
Be an analyst and educator
Be committed to praxis- reflection and action thoughtful assessment of action taken
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What are are the instruments of collection action that remain responsible both
to democratically elected officials and to core societal values?
What are the roles of nongovernmental forms of collective action in society and
how can desired roles be protected and nurtured?
How shall tensions between national and local political arenas be resolved?
What decisions shall be isolated from the normal processes of politics so hat
some other rationale can be applied?
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disciplines,
somewhat
of
garbage
can.
Although
public
Stillman (1999)
Growth of the American state is linked to the rise of PA theory
Stillman defines state as concrete national institutions and organizations and people
that carry out the basic functions common to all modern nations, such as tax
collection, business regulation, national defense, public education, social welfare, etc.
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Suggests that U.S. was stateless until the passage of the Pendleton Act in 1883
American PA differs greatly from European PA in that American PA does not have
authority grounded in thousands of years of state history
Box (2004)
Legitimacy centers on the relationship of public administration to the constitution and
the nature of the founding period. A legitimized PA would be one that is respected by
the public, has more control, authority; discretion to act independently and is given
the status of an equal partner in relation to elected leaders and other parts of
government
The framers would likely disapprove of the power of the modern federal government,
although a strong government is needed to protect individual rights
Stivers (2002)
Legitimate power is seen as flowing from the people to their elected representatives
and indirectly to appointed officials
The exercise of power by civil servants is neither elected or removable but problematic
Legitimacy
premised
on
arguments
Management
used this
of
expertise,
neutrality/objectivity
and
management
New
Public
function
to
advocate
breaking
through
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While we make the case that the administrative state is compatible with constitutional
principles it is useful to remember that the constitutional principles were themselves
the object of intense debate (179).
The role of PA is to fulfill the objective of the oaths of office: to uphold the Constitution
of the United States, meaning that administrators should use discretionary powers in
order to maintain the constitutional balance of powers in support of individual rights
The Senate, in its original intended state, is the constitutional model for PA as a
balance since it was supposed to exercise all three powers of government.
PA exercises those powers, but in a subordinate capacity to the three branches of
government
Rohr (2002)
Recurrent debate over the proper role of public administrators, stemming from their
balance of demands for efficiency and for political definitions of the public good;
efficiency and a business approach currently holds the upper hand
Nothing is more fundamental to governance than a constitution; and therefore to
stress the constitutional character of administration is to establish the proper role of
administration as governance that includes management but transcends it as well.
Rohr promotes the ideas of administrative discretion and civil servants as
constitutional actors
1993 PAR Debate (Spicer/Terry Debate) found in PAR 53(3)
Characterized Rohr as one who romanticized the view of the founders; he and others
perpetuated a distorted view of the founders
Idealist method of historical explanation explain actions or intentions after the face
Empathetic method of historical explanation imagine themselves in the place of the
person involved in the event
Characterized the founders as noble men who possessed superior minds
John Hope Franklin created a tragically flawed revolutionary document and a
constitution that did not bestow the blessings of libery
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Lowi (1993)
Administration was legitimate as long as it was consistent with democracy and it was
consistent with democracy as long as it was accessible to the common person
Nowhere in the constitution is an explicit theory of separation of powers as a principle
of limitation on the national government
Article I and Article II indicate that the executive branch was to be an institution of
delegated powers
Spicer/Terry Debate (1993) The Final Response
Meier/Kaufman: Why do scholars, elected officials, political pundits, interest groups
and the general public continue to worry over the ominous specter of a powerful
imperial bureaucracy controlled by non-elected and nonpolitically appointed public
officials?
Freedman: the history of the modern administrative process can be seen as having
been marked by an extended sense of crisis. This sense of crisis is something more
serious than routine criticism and reflects a persisting uneasiness over the place and
function of the administrative process in American government
STATS/METHODS
What are the possible limits of quantitative policy analysis? Can qualitative analysis
help the policy analyst to overcome all of them?
Research in the social sciences uses several different methods to answer questions.
The experimental method is used with the quantification of data, the process of
converting data to a numerical format (Babbie, 396) and used in evaluation research.
Another method is quasi-experimental non-rigorous inquiries somewhat resembling
controlled experiments but lacking key elements such as pre-and post-testing and/or
control groups (Babbie, 349). The third type of method is the qualitative evaluation
What are the elements of the classical experimental design?
The elements of the classical experimental design are:
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Randomization (R) each subject or case has an equal chance of being assigned
to the experimental group or to the control group (random sampling)
Randomization
Observation 1
Treatment
Observation 2
Comparison
Experimental
Re
Oe1
Oe2
Oe2 Oe1
Control
Rc
Oc1
Oc2
Oc2 Oc1
Step 1
Assign subjects to two or more groups, with at least one experimental and
Although a pre-experiment
Exposure to the
lead to changes in the dependent variable, this result should be evident in pretest-
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posttest comparisons between the experimental and control groups. Or, if the groups
are large and known to be equivalent through random assignment, the analyst can
simply compare posttest scores between the two groups. If the causal inference is
valid, these comparisons should bear out predicted differences between the
experimental and control groups.
What are the requisites necessary for researchers to conclude that a causal
Relationship exists? Why is this the case?
The three main criteria for causal relationships in social research are 1) variables
must be correlated there is an actual relationship, 2) the cause takes place before
the effect time order, and 3) the variables are non-spurious there is not a third
variable effecting the relationship (Babbie, 90). Note these definitions:
Correlation An empirical relationship between two variables such that 1) changes in
one are associated with changes in the other or 2) particular attributes of one variable
are associated with particular attributes of the other. Correlation in and of itself does
not constitute a causal relationship between the two variables, but is one criterion of
causality (Babbie, 90).
Time order We cant say a causal relationship exists unless the cause precedes the
effect in time (Babbie, 90).
Spurious Relationship a coincidental statistical correlation between tow variables,
shown to be caused by some third variable (Babbie, 91).
An alternate answer, that is, there are four criteria to conclude that a causal
relationship exists. The criteria are 1) time order If A is the cause of B, then A must
precede B in time. Also, Changes in A must occur before changes in B. So, cause
must precede effect.
together. If A changes and B also changes, this covariation provides some evidence
that A is the cause of B. If changes in are never accompanied by changes in B, then A
cannot be the cause of B. 3) Non-spuriousness a relationship is an association
between two variables that cannot be explained by a third factor. 4) Theory Not only
must the conditions of time order, covariation, and non-spuriousness be satisfied, but
also a theoretical or substantive justification or explanation for the relationship must
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be provided. Theory interprets the observed covariation; it addresses the issue of how
and why the relationship occurs (Meir, K. J. & Brudney, J.L., 32-34).
Please answer the following question in its entirety:
a. What are the requisites necessary for researchers to demonstrate causality?
b. What type of research design is most likely to enable a researcher to conclude
that a causal relationship exists? Why is this the case?
c. How do you distinguish between internal and external validity?
d.
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The small school districts that sued the state for equity in funding were primarily
poorer counties or cities or special school districts that did not have a substantial
taxing base in their communities.
It is now nine years after the implementation of the funding equity formula and you
have been called upon to design a study to see if equity in funding has led to
comparable performance between the small school systems and the non-litigants in
the case.
How would you operationalize performance?
would comprise a valid, reliable measure of performance in the context of the lawsuit?
How would you operationize equity?
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Facts and theories must survive a period of critical study and testing by other
competent and disinterested individuals and have been found so persuasive that they
are almost universally accepted.
The objective of science is not just to acquire information not to utter all noncontradictory notions
The goal is a consensus of rational opinion over the widest possible field.
Recognition that science knowledge must be public and consensible allows one to
trace out the complex inner relationships between its various facets.
Intellectual = attempt to discriminate between scientific and nonscientific disciplines
Psychological = role of education, the significance of scientific creativity
Sociological = Structure of the scientific community and the institutions by which it
maintains scientific standards and procedures.
Popper (1963)
Poppers Formulated Conclusions to incompatible with certain possible results of
observation:
Easy to obtain confirmations, or verifications, for nearly every-theory
Confirmations should only count if they are the result of risky predictions
The more a scientific theory forbids certain things to happen, the better it is
A theory is nonscientific if it is not refutable by any conceivable event.
Every genuine test of a theory is an attempt to falsify it.
Confirming evidence does not count unless it is the result of a genuine test of the
theory.
Some genuinely tested theories, when found false, are still upheld by their admirers.
The criterion of the scientific status of a theory is its falsifiability, or refutability, or
testability.
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The criterion of falsifibility because it states that the statements or systems, in order
to ranked as scientific, must be capable of conflicting with possible or conceivable
observations.
The beginnings of the use of a null hypothesis in testing
Feyerabend (1975)
Any ideology that breaks the hold a comprehensive system of thought has on the
minds of men contributes to the liberation of man.
Any ideology that makes man question inherited beliefs is an aid to enlightenment.
The teaching of facts without the attempt to awaken the critical abilities of the pupil
so that he may be able to see things in perspective.
Has Science found the correct method for achieving results?
Theories cannot be justified and their excellence cannot be shown without reference to
other theories.
Science itself is not clear, unambiguous, and precisely formulated.
Has science produced results with its methods?
Great scientific advances are due to outside interference which is made to prevail in
the face of the most basic and most rational methodological rules.
There does not exist a single argument that could be used to support the exceptional
role which science today plays in society.
There is no scientific methodology that can be used to separate science from other
ideologies.
Science is just one of many ideologies that propel society and it should be treated as
such
There must be a clear separation between science and state such as there is a clear
separation between church and state
Science may influence society to the extent that any other political or other pressure
group my influence society.
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Successful Science:
Independent testability = achieved when possible to test auxiliary hypotheses
independently of the particular cases for which they are introduced.
Unification = result of applying a small family of problem-solving strategies to a broad
class of cases.
Fecundity = grows out of incompleteness when a theory opens up new and profitable
lines of investigation.
Hempel (1948)
Science attempts to provide explanations for phenomena occurring in the physical and
social world
Explanations are arguments offered to establish that the event-to-be-explained had to
occur given the initial conditions and the presence of certain regularities in nature
Laws are what distinguish scientific explanations from descriptions
If its a law, it will be true in all places at all times.
The typical assumption is that human behavior is unique and often un-repeatable;
therefore, it is difficult to determine causality.
Hempel suggests that even in physical sciences exact replication may not be possible.
He also purports that the concept of causal explanation is misunderstood. All that is
needed for causality is for antecedent characteristics to be met and for those events to
repeat.
Can we explain human behavior?
Situational characteristics
History of the individual
Hempel argues that we can make generalizations based on previous experiences and
behavior.
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The determining motives and beliefs must be classified under antecedent conditions
of a motivational explanation, and there is no formal difference on this account
between motivational and causal explanation
Denzin and Lincoln (2003)
On case studies:
As a practice one might commonly associate with qualitative analysis, Denzin and
Lincoln discuss the importance of the case study. Different types of case studies are
identified as intrinsic studies, instrumental studies and collective. The intrinsic study
is where the researcher wishes to better understand a particular situation or
occurrence versus the instrumental study where the case itself isnt as important
because the researcher is seeking to gain insight on a problem or issue. Finally there
is the collective where the researcher examines a number of cases in order to better
understand a cohort, society, problem or phenomenon. The authors acknowledge that
these are not the only descriptions for case studies but they share the main traits that
are accepted in the field (136-138).
undertake case studies that provide an understanding of other cases the field has be
underutilized and that the current methodology of the field, which stresses
contributions to generalization, further exacerbates the problem (140).
On program evaluation
The authors undertake an important discussion to public administration with their
examination of social program evaluations. The presented goals of a social program
evaluator is to improve the service and
program (590).
stakeholders who are involved with the evaluated program giving the researcher a
contextualized understanding (595).
methodology will tell a story of a situation rather than just presenting data. This is
important because as the evaluator is an ethnographer they will understand the plight
and situation of those who are impacted by the program or policy that is being
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evaluated. (601). This process isnt without its detractors who will ask how good is a
particular program and whose interests are really being advanced. Because this style
of evaluation doesnt have strong scientific method and is more philosophical in nature
there wont be ready answers for the critics. The evaluator must keep in mind several
recognition inquiry cannons which guide all of their work in order to properly deal
with these questions: credibility, dependability, applicability and confirmability (606).
With all of this understanding the authors say that qualitative evaluations should be
conducted by individuals who have a constructivists perspective and have strong
morals so that they will have the ability to showcase honest representations to the
stakeholders.
On qualitative versus quantative
And the ability to weave these skills into research (the quilt) that can be used for the
betterment of society is not without its detractors. The work of these researchers who
use qualitative methods is considered a soft science and subjective due to its position
of not accepting that all research is going to be value-free presentation. The largest
group of detractors are those who hold the numerical and quantitative methods as the
only real study that can offer insight into reality.
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approach enhances the usefulness of the data for future policymakers (Marshall &
Rossman, 1995).
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Briefly discuss at
least three of the major competing theories of public budgeting treated in the literature
(where appropriate, distinguish between normative and descriptive theories).
Some of the readings covered in this course posit various ideas or theories to explain
public budgeting allocation decisions. Write an essay that assesses the validity of
the following statements:
making
while
systems,
and
scholars
have
posited
various
explanations,
implicit in these reforms vis--vis the fundamental values and beliefs which undergird
public administration.
What is performance based budgeting (PBB)? What differentiates PBB from PPBS and
ZBB? What are the similarities among the three? Explain the major opportunities
and challenges of implementing performance based budgeting. What is the purpose of
OMBs Program Assessment Rating Tool (PART) in regard to PBB implementation?
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What is a budget?
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Hierarchy Theory
According to Rubin (1992)
Argues that top-level executives make decisions about broad policy issues, judge the
environment and pass that info down via the budget office to the agencies before
agencies make their requests
Similar or the same as Elite Theory
Macro-Micro Budgeting
According to Rubin (1992)
Bargaining still exists over budget strategies, but broader policy issues are explicitly
dealt with and frame the choices and outcomes of the bargaining
Economic policies, priorities, spending ceilings and assumptions about the growth of
the economy are made by the budget committees and guide the decisions of other
committees
Neo-Marxist
According to Rubin (1992)
Class interests dominate budgeting and allocation choices
Govt. is controlled by capitalists and they determine spending base on their own
priorities
Theorists call attention to military spending as a way to enrich arms manufacturers
and tax breaks that only benefit the well-off more than the poor
The major weakness of this theory is that it doesnt explain why one groups wins out
over the other
Transaction Cost Theory (not recognized as an official budget theory in PA, but it
applies)
According to Bartle (2001)
Developed in economics and focuses on private sector org forms
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Transaction Costs: the costs that occur above and beyond the purpose of exchange
How does this relate to PA budgeting?
Costs involved in budget negotiations, contracts, deals, political exchanges, what
groups have to give so that another group can have
Concepts can be applied to budgeting and finance, as budgets are the culmination of
deals and agreements
Centered on institutions and history
Transaction cost theory is general enough to apply to a variety of findings under an
over-arching framework
Under-utilized as a theoretical construct in public budgeting and finance
Public budgeting needs to further incorporate transaction cost theory into a public
budgeting framework or theory
Weakness is theres not an established measurement for all costs of providing
government/social services
Other Theories (from Stapleford 1992)
Classical (Pre-Keynesian) Adam Smith, capitalism, free market, ltd. Govt.
Keynesian John Maynard Keynes (1936), govt. spending is necessary to fine-tune the
economy; performance by economy in aggregate is more important than individual;
small deficits are useful for fine-tuning
Neo-Keynesian larger tuning of the economy; larger swings in govt. spending/taxes;
use of monetary policy (interest rate setting) to influence economy
Monetarists (Counter-Keynesian) Milton Friedman, Alan Greenspan; monetary policy
more effective than fiscal policy; economy is inherently stable govt. fine-tuning not
needed; money supply/interest rates controlled by Federal Reserve is important
REFORMS
Line-item (prior to 1921 was the only model)
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Agencies are evaluated on program to program (line to line) to measure efficiency and
determine funding
Congress needed large staff to do this
No rational decision-making mechanism was in place
Politics substituted for rationality
Led to the re-establishment of line-item budgeting with the executive budget (1921)
PPBS (emerged in the 1950s; implemented by LBJ in 1961 for D.o.D./1965 for all
federal agencies)
Utilizes Cost Benefit Analysis and systems theory
Emphasizes the planning stage to determine and view program objectives and outputs
CBA is conducted on the outputs; if objectives are not met funding will be
discontinued
Process creates enormous information and analytical burdens (Schick 1973)
It is difficult to set program objectives for social policy and critique the program based
on those objectives
Military uses it to this day, though it fell out of fashion in the late 1960s
Officially died with OMB memo in 1971
Target-Based Budgeting (1980s)
Target-based budgeting is a another form of a zero-based budgeting, except that
agencies are told what the funding ceiling is going to be
Each agency will be allotted a certain amount of money to operate
The agency must prioritize those funds in the order they feel is important.
The budget is broken into two categories: operating and capital projects.
The agency may not get funding for capital, only if there is money left over
Performance-Based (Current)
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ORG. THEORY
Some words on Paradigms:
Nicholas Henry (1975) Paradigms of Public Administration PAR 35(4):
5 paradigms
PA Dichotomy 1900-1926
Principles of Administration 1927-1937
PA as Political Science 1950-1970 (PA resubmits to the domination of PoliSci)
PA as Administrative Science 1956-1970 (PA submits to the domination of
Administration, public and private)
PA as PA (?) 1970 - ? (PA comes into its own, following the Simon prescription in 1947)
1938-1950 Challenge to PA Dichotomy and Principles:
1938 Barnards Functions of the Executive (influenced Simon)
1946 Fritz Marx ed. Elements of Public Administration (questioned dichotomy
assumptions)
1947 Simons Administrative Behavior (blows the principles away)
1947-1950 Reaction to the Challenge:
1947 Simons A Comment on The Science of PA (prescribes two tracks scholars
working on the science of admin and a larger group working on prescriptive public
policy)
Hal G. Rainey (1994) On Paradigms, Progress, and Prospects for Public Management
J-PART 4(1):
Frederickson Questions
How important that we have a paradigm?
Are we making progress toward one?
Which is the most promising?
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Rainey Answers
Not very
No
Mine!
Elaborating, Rainey says:
The importance of a paradigm is debatable yes, we can travel in a herd, with all the
advantages that might offer BUT we are also subject to the disadvantages
Its difficult and dangerous to achieve and impose consensus on a field of inquiry
Distinctions between public/private are snagging progress in the field, esp. with org
theory
Paradigmatic Discussion:
Five paradigms:
Positivist
Post-positivist
Interpretivist
Conflict
Post-modern
Every paradigm should must have three things
An ontology the nature of reality
An epistemology how to know reality
A methodology how to test reality
Given that, most professors dont see Henrys 1975 work as really being paradigms
more like theories
But that really depends on your definition of paradigm, doesnt it?
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Henry accounts for this in his article by using paradigm as How mainstream public
administrationists have perceived their enterprise during the last 80 years
Stanley is using the Kuhn paradigmatic definition
Rainey points out the Kuhn used paradigm in 21 distinct senses in 1962
French, Spears & Stanley (2005) The Fifth Paradigm of Public Administration?...
Once Public Org Theory is redefined as Public Org Efficacy, paradigmatic progress can
begin
Efficacy = efficiency, effectiveness, equity, responsiveness and accountability through
various modes of research
The last step is recognizing the quantitative and qualitative nature of inquiry, and
establishing an equal respect for both because some problems are better solved with
numbers, some with words
Classical Organization Theory
Authors/Works:
Fayol (1949) General Principles of Management in General and Industrial Management
Taylor(1916) Principles of Scientific Management in Bulletin of the Taylor Society
Weber (1946) Bureaucracy in Essays in Sociology
Gulick (1937) Papers on the Science of Administration
Main Points to Remember:
Dominated thought into the 1930s
Structuralists--focused attention on structure or design of orgs
Rational and closed systems pursuing the goal of efficiency
Adam Smith, Henri Fayol, Daniel McCallum, FW Taylor, Max Weber, Gulick &Urwick
Organizations should work like machines, using people and capital as their parts
Adam Smith (1776) The Wealth of Nations
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organizational
principles:
technical,
commercial,
financial,
security,
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Self-actualization
McGregor's Theory X & Y
X people inherently dislike work and will avoid it if possible
Y work can be a source of satisfaction for people
Janis' Groupthink:
A mode of thinking that people engage in when they are deeply involved in a cohesive
in-group, when the members' strivings for unanimity override their motivation to
realistically appraise alternative courses of action
Frederick Herzberg psychologist concerned with mental health and work
Motivation-hygiene theory: the job versus the environment
Satisfiers/motivators: achievement, recognition, responsibility, growth
Dissatisfiers/hygiene factors: company policy; supervision; interpersonal relations;
salary status; job security; personal life
Most optimistic of all schools - under right circumstances, people and organizations
will grow and prosper together
Modern-Structural Organization Theory
Authors/Works:
Burns & Stalker (1961) The Management of Innovation
Blau & Scott (1962) Formal Organizations
Walker and Lorsch (1968) Organizational Choice: Product vs Function,
Harvard Business Review, Nov. 1968
Mintzberg (1979) The Structure of Organizations
Jaques (1990) In Praise of Hierarchy, Harvard Business Review Jan.1990
Main Points to Remember:
Second half of 20th Century
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Kanter (1979) Power Failure in Management Circuits, Harvard Business Review, July
1979
Mintzberg (1983) Power in and around organizations
Main Points to Remember:
Organizations are viewed as complex systems of individuals and coalitions
Conflict in inevitable and influence is the primary weapon
Organizational goals change with shifts in the balance of power
John Kotter: differentiate between power resulting from authority and power resulting
from being able to get job done
Power is aimed in all directions, not just down the hierarchy
Jeffrey Pfeffer: power and politics are fundamental concepts in defining an org
Politics defined as "the process of gaining, maintaining and exercising power.
Organizational politics involves those activities taken within organizations to acquire,
develop and use power and other resources to obtain one's preferred outcomes in a
situation where there is uncertainty or dissensus about choices."
Kanters Theory of Structural Power in Organizations (1977):
Work behavior and attitudes are shaped by a persons position and situations in the
org, rather than by personal characteristics and socialization experiences
Power structures (mobilization of support, allocation of resources, gathering of
information) are accessible via the position of a person in the org (and the power
inherent in it)
The extent to which a position accesses power structures is dependent on the formal
and informal power of the person
More Kanter:
"Power is the ability to mobilize resources, to get and use whatever it is a person needs
for the goal he or she is attempting to meet."
French and Raven (1959): Description for Power in Groups:
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Reward power: the power to confer or withhold rewards that others want, i.e. pay
Coercive power comes from the ability to take forceful action against another
Referent power is when a person has power over others because they see him/her as a
standard to emulate
Expert power is the control of knowledge, information and other skills
Legitimate power is where others accept the authority and ability to tell them what to
do
Systems Theory
Authors/Works:
Katz & Kahn (1966) The Social Psychology of Organizations
Thompson (1967) Organizations in Action
Richard W. Scott (2003) Organizations: Rational, Natural and Open Systems
Main Points to Remember:
Rose to dominance in the late 1960s
Daniel Katz and Robert Kahn: organizations are open systems
Apply Ludwig Bertalanffy's (1951) general systems theory to organizations and use
quantitative tools and techniques to understand complex relationships among
organizational and environmental variables
(remember inputoutput / blackbox diagram)
Search for order in complex systems, cause-and-effect oriented
Seeks optimal solutions (not "one best way")
Computers, experts, etc. are the tools necessary
Draw heavily from Neoclassicals---bounded rationality and satisficing (Simon) and
cognitive limits (Cyert and March)
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Richard Scott (2003) rational, natural and open systems theories OR Chinese
handcuffs
Rational systems do not take the environment into account
Rational systems view organizations as a means to an end goal
Natural systems focuses on the orgs survival in the environment, emphasizing the
survival of the organization for its own sake, in spite of the hostile environment
Open systems portrays the organization as a living organism with loose boundaries,
sub groups attaching and detaching, inputs and outputs moving at the same time
Open systems recognizes a changing environment
Genius of the systems theory is that competing schools of thought can be classified as
sub-theories (Scott says class, neo-class and HR are closed rational or closed natural
systems)
To complicate it further, the rational natural and open perspectives may apply to the
same organization, just at a different level of analysis
One more bit on paradigms and I promise it wont hurt too much
A take on Scott:
Rational Systems
Natural Systems
Scholars
Open Systems
Positivist
and Post-Positivist
Motivation/People
Interpretivist
Interpretivist
maybe
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360 B.C.
&
THE
CONFLICT
BETWEEN
PERSONALITY
AND
THE
ORGANIZATION
1961 THOMPSON FINDS DYSFUNCTION DUE TO ABILITY VS AUTHORITY
1962 PRESTHUS UPWARDMOBILES, INDIFFERENTS AND AMBIVALENTS
1964 CROZIER: BUREAUCRACY AN ORGANIZATION THAT CANNOT LEARN FROM
ERRORS
1966 BENNIS PROCLAIMS DEATH TO BUREAUCRATIC INSTITUTIONS
1968 HERZBERG MOTIVATORS, SATISFIERS AND HYGIENE FACTORS
1972 CLEVELAND CONTINUOUS IMPROVISATION IS REQUIRED
1976 MACCOBY AND THE GAMESMAN
1981 PFEFFER POWER IN ORGANIZATIONS
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First,
evaluate whether this statement accurately captures the field to date. Then, examine
if this statement or a replacement explains where the field appears to be heading
for the foreseeable future.
Public policy making is made by various official and unofficial stakeholders in the
polity.
Identify these stakeholders and describe the legitimate power that each
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Theories
Is policy political? (Parallel to Wildavskys budget assertion)
Stakeholders
Process/Streams/Open Window
Principal-Agent
STATE OF THE FIELD
(Lots of crossovers with budgeting since budgets are a form of policy)
Birkland (2001) the systematic study of policy is a 20th century creation dating to
Charles Merriam who sought to connect the theory and practices of politics to
understanding the actual activities of government
Koven (1994) sees 4 foci in the literature:
Substantive/Procedural
Material/Symbolic
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Incremental
Mixed Scanning (Amatai Etzioni) looking for hot spots while watching the big
picture
POLICY AS POLITICS
STAKEHOLDERS
PROCESS/STREAMS/OPEN WINDOW
PRINCIPAL-AGENT
Iron Triangle earliest formulation by Grant McConnell (1966) in Private Power and
American Democracy
Top-Down
Bottom-Up
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Hybrid
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Game Theory
Public Choice Leaders manipulate pubic into choosing their previously conceived
policy preferences
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However,
systems of transportation and communication, and high technology were all based on
a new method of controlling the environment called scientific method.
Closing of the Frontier:
frontier along with the increasing ratio of population to available resources, caused a
movement aimed at saving our natural resources (and human beings) through
adopting the idea of a planned and administered human community. Urbanization
resulted from the closing of the frontier.
Our Business Civilization: From the beginning, America has been a uniquely wealthy
country, and has become characteristically a Business Civilization.
influenced our methods of administration.
This has
managing the affairs of State. Forms of public organizations historically have followed
the corporate model closely.
Raadschelders says that PA first developed as goods and services were increasingly
provided by the government instead of private concerns. We went from a Nightwatch
State with voluntary militias to having permanent police forces and a standing army.
Services that were formerly provided by church organizations were increasingly
expected to be provided by government.
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In response to corruption and the Spoils System, Woodrow Wilson wrote that PA
should be buffered from politics and developed into a discipline of its own with its
basis in scientific management and employing professionals to run government.
Politicians and legislature make policy, administrators implement those policies.
Scientific Management Gulick with POSDCORB and Taylor with Scientific
Management tried to fit the role of PA into definitive actions and a hierarchical
structure with unity of command.
Herbert Simon critiqued the Scientific Management approach by saying that PA was
more of an art than a science. He called for bounded rationality.
As a field of discipline, PA has not settled into a paradigm of its own. There is much
debate about creating a unified theory and a normative model.
Denhardt says that PA cannot be a discipline because it draws from so many other
fields and sciences.
Minnowbrook I sought to make a bold synoptic approach to the discipline of PA.
Blacksburg Manifesto Sought to change the negative dialogue surrounding PA and to
develop a normative approach to the discipline.
Minnowbrook II saw further fragmentation of attempts to define PA.
Others argue that it should be included in business as a form of administrative
science, but Khun says that PA does not meet the test of being called a normal
science because it lacks a generally accepted paradigm and methodology.
HRM Human relations movement focused on the informal organization that exists
under the formal structures. People understand the limits of the formal structure and
fill in gaps with NORMS.
Institutionalism Recognizes multiple stakeholders, public-private partnerships,
coproduction, privatization, contracting-out, and fuzzy distinctions between public
and private.
Governance Theory Rohr says administrators should legitimately participate in
governance, not just management. Governance theory talks about the dominance of
policy networks instead of traditional govt structures. The States declining ability to
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movement away from the rational model toward increased social equity. Productivity,
Marketization, Service Orientation, Decentralization, Accountability.
Sweep away
He also says that in Western societies, the Primacy of Politics means that
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Svara says the public administrator should act on behalf of the public interest, but is
directly accountable to his political leaders and the organization.
Frederickson would say that the public administrator is directly responsible to the
citizens. He says the Spirit of PA is in serving the people.
Rohr says the primary moral obligation of public administrators is to be the guardian
and guarantor of the founding values of every citizen.
Peters says that administrators should be APOLITICAL in implementing public policy,
but notes that a balance must be kept betwn Pol & public interest.
Question #3: Discuss the tensions between democracy and bureaucracy, and
how they can be reconciled.
Raad says Democracy is the rule of the People and Bureaucracy is the rule of bureaus.
Raad views the tensions as:
Bureaucracy seeks permanence and expansion for self-serving reasons with aims at
maximizing power, income, security and prestige.
Democracy dictates that bureaucracys sole purpose is to administer policy with the
main goals of efficiency and serving the public interest.
A major tension over the past 30 years is the increasing use of political appointees in
bureaucracy. This politicization of bureaucracy goes against the goal democracy and
what Weber calls for neutral civil servants, who are expected to be models of integrity,
rational, politically neutral and acting in compliance with the rules.
Raad says that as a result of the politicization of bureaucracy, bureaucrats have
substantial influence on policy and decision making.
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Question #4: Discuss the tensions between promoting administrative selfinterest and the public interest. How can they be reconciled?
Raad says that as a result of the politicization of bureaucracy, bureaucrats have
substantial influence on policy and decision making.
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professional public administration period. The 1978 Civil Service Reform Act listed
merit principles and established the SES (Senior Executive Service currently 7,900
personnel).
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The growth of government in its responsibilities and the massive growth of the
population have influenced the changes in the role and position of civil servants. The
shift to more professionalism is seen as necessary to manage the massive and complex
bureaucracy and intergovernmental networks that exist today. Mosher calculates that
almost 40% of public sector positions are professionals and technicians, while only
11% of private sector positions can be labeled as such.
Self (1979) says that a professional civil servants most important function in modern
times may be intellectual appraisal. This is in contrast to a historical view of the
civil servant administrator characterized as simply as a blind follower of their
political leaders wishes.
Frederickson proposes a model for combining selected views of citizenship and
professionalism in which there
Professionalism
(Emphasizing
are
four scenarios:
Civic
Friendship
Technocracy),
Low
Professionalism,
Low
Citizenship
(Emphasizing
Trusteeship
and
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Frederickson
hopes that American public administration will be able to make the move to High
Citizenship, High Professionalism where citizens have a voice in how government is
run, and where administrators think of themselves as Trustees of the public good. In
this way, we can realize the moral unity of society.
Stillman (pgs 96-106) has this to say about the influence of professionalism on PA
practice: Professionals tend to want to establish clear-cut boundaries where they can
operate relatively free from outside pressures and set policy agendas, so they can
maintain exclusive privileges. As a result, large patches of government policy-making
processes have been handed over to clusters of professional groups in various fields,
many of whom have no particular allegiance to the public or even an organization, but
float among public, private and nonprofit sectors. At times their policy turfs overlap
and can create heated controversies, such as the turf fights among the U.S. Army,
Navy, and Air Force over control of the US defense policy.
Stillman pg. 101:
To sum up the chief methods by which professionals influence the direction of policy
and administration within the contemporary American state system:
Professionals stake out territory within a particular policy field and governmental
activity, likely spanning across various private, public and nonprofit enterprises.
Professionals apply their expertise based on length of experience and specialized
training that serves to legitimize their claims for dominance and influence within
specific policy arenas.
Professionals create dogmas for correct views of the world and ways of doing their
work that provide the essential ideological glue to knit together a profession and give it
distinctiveness and claims to influence in public affairs.
Professional associations, hierarchies, and elites provide a significant degree of shared
corporate identification, policy discretion, and control over their members activities
through the discipline they impose and the ideals they articulate.
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Professionals strive continuously for freedom from external control over their activities
and value internal accountability through peer-imposed codes of ethics or licensing
processes.
Professionals aim to link up to scientific and university bodies outside government in
order to enhance their knowledge base, prestige, and status as authoritative experts
within public policy arenas.
Stillman warns against the emergence of a global professional technocracy as
dominating postwar American state governance. The implications of this are: Policy
definition by little clusters of professional experts, hyper-impermanence (lack of
adherence to a stable and immutable set of principles or concepts) and complexity
surrounding the policy arena, and the blurring of the boundaries between public and
private sectors.
Question #7: At the close of his book, Svara reasserts that a theory of public
administration in the political process is also a theory of ethics.
Analyze or
break down this statement and, in doing so, re-state his argument.
Svara says that without ethics, PA is merely an instrument and administrators are
simply the tools of their political masters.
His argument is that government can only work if the public views the public
administrators authority and role as legitimate.
service provides a remedy for a serious defect in the Constitution (the inadequate
representation).
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Management can be improved through pay-for-performance and other privatesector techniques and incentives;
This model's primary public benefit is less costly, less intrusive government.
Participative model: Although the participative model shares the market model's view
that traditional bureaucracies impede good government, it "is almost the ideological
antithesis of the market approach". Its advocates would remove or minimize
hierarchical layers of top-down controls, opting instead to empower employees and
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Flexible model: Flexible government," the least clearly articulated of the four models, is
less ideological in its approach. "Flexibility" refers to "the capacity of government and
its agencies to make appropriate policy responses to environmental changes rather
than merely responding in habitual ways to inherently novel challenges". The flexible
government model's central assumptions are:
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the private sector, and for the same reason: to liberate workers' entrepreneurial
energies.
Government deregulation would produce a lean, resolute civil service able to decide
and act, rather than wait and see. The model's central assumptions and
characteristics are:
Internal regulation, such as restrictive policies and rules, is the principal source
of traditional government's
problems;
Stillman:
No-State (Negative State): Minimalist public administration.
Natural adjustments in the marketplace via competition and little state oversight is
best.
Sees work of administrators as low-level, technical work.
Bold-State (Positive State): Activist public administration.
the State has ability to do much good and nat govt can lead in positive planning.
Focus on organizational effectiveness, limit political intrusion on decision making and
maximize the community good and public welfare.
Pre-State (Half-way State):
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Compared to the traditional or orthodox model, which poses the greatest promise for
the future of effectiveness in government?
If I had to choose one, I would choose Flexible Government. There is more freedom to
close down programs and agencies that are not working, while experimentation is
encouraged to find better ways to manage.
Ideally, I feel the greatest promise would be a mixture of Market Government and
Flexible Government.
In Stillmans model Bold-State!
the State has ability to do much good and nat govt can lead in positive planning.
Focus on organizational effectiveness, limit political intrusion on decision making and
maximize the community good and public welfare.
QUESTION 10 In attempting to define the field of public administration several
authors have commented that American PA has its origin in the progressive era
and the reform of government and/or society.
authors, has never strayed from these roots. If accurate, this scenario has its
limitations.
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within the Progressive movement. Many reforms dotted this era, including Prohibition
with the 18th Amendment and womans suffrage through the Nineteenth Amendment,
both in 1920 as well as the initiation of the Income Tax with the Sixteenth Amendment
and direct election of Senators with the Seventeenth Amendment (both in 1913). The
four original goals of Progressivism were 1) protecting social welfare - YMCA, 2)
promoting moral improvement prohibition of alcohol, 3) creating economic reform
change of individual behavior, 4) fostering efficiency Tayorism. Presidents Theodore
Roosevelt, William H. Taft, and Woodrow Wilson served during this era.
A good number of authors would agree that PA had its origins during the Progressive
Era. This was an era characterized by attempts to accommodate or balance a life in
an increasingly urban, industrial, routinized, and multiethnic environment.
The
methods for these attempts was imperialist expansion of the American West,
conservation movements, organizing labor, increasing business regulation, and
remaking the political process.
The fact that many authors contend that we have not progressed
beyond these roots is not overly surprising as many would have us retain positivist
beliefs and to a lesser degree, scientific management principles.
author to suggest our existence is continuing in an era nearly a hundred years past
would be purporting that in spite of vast technological, cultural, societal, and political
advancements we havent progressed is ludicrous, or is it?
Paul Light has studied reform efforts over nearly a 60 year period (1945 to 2002) and
suggests that very few of the reform efforts have had any impact on government. The
bureaucratic
and
hierarchical
government
organizations
that
existed
in
the
Progressive Era continue to exist today suggesting little change over the years in the
area of reform or organizational structure.
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Chapter 2
Administrative
Management &
Administrative Law
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foundation, the conditions of General equilibrium allow for price adjustment to achieve
this goal.
More broadly, Keynes saw his as a general theory, in which utilization of resources
could be high or low, whereas previous economics focused on the particular case of
full utilization.
Keynesian economics by Alan S. Blinder1
Keynesian economics is a theory of total spending in the economy (called aggregate
demand) and of its effects on output and inflation. Although the term is used (and
abused) to describe many things, six principal tenets seem central to Keynesianism.
The first three describe how the economy works.
1. A Keynesian believes that aggregate demand is influenced by a host of
economic
decisionsboth
public
and
privateand
sometimes
behaves
Alan S. Blinder is the Gordon S. Rentschler Memorial Professor of Economics at Princeton University. He was previously vicechairman of the Federal Reserve's Board of Governors, and before that was a member of President Clinton's Council of Economic
Advisers.
212 | P a g e
often quote Keynes's famous statement "In the long run, we are all dead" to
make the point.
Anticipated monetary policy (that is, policies that people expect in advance) can
produce real effects on output and employment only if some prices are rigidif
nominal wages (wages in dollars, not in real purchasing power), for example, do
not adjust instantly. Otherwise, an injection of new money would change all
prices by the same percentage. So Keynesian models generally either assume or
try to explain rigid prices or wages. Rationalizing rigid prices is hard to do
because, according to standard microeconomic theory, real supplies and
demands do not change if all nominal prices rise or fall proportionally.
But Keynesians believe that, because prices are somewhat rigid, fluctuations in
any
component
of
spendingconsumption,
investment,
or
government
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do
not
call
themselves
Keynesianincluding
most
monetaristswould,
nevertheless, accept the entire list. What distinguishes Keynesians from other
economists is their belief in the following three tenets about economic policy.
Keynesians do not think that the typical level of unemployment is idealpartly
because unemployment is subject to the caprice of aggregate demand, and partly
because they believe that prices adjust only gradually. In fact, Keynesians typically see
unemployment as both too high on average and too variable, although they know that
rigorous theoretical justification for these positions is hard to come by. Keynesians
also feel certain that periods of recession or depression are economic maladies, not
efficient market responses to unattractive opportunities. (Monetarists, as already
noted, have a deeper belief in the invisible hand.)
Many, but not all, Keynesians advocate activist stabilization policy to reduce the
amplitude of the business cycle, which they rank among the most important of all
economic problems. Here Keynesians and monetarists (and even some conservative
Keynesians) part company by doubting either the efficacy of stabilization policy or the
wisdom of attempting it.
This does not mean that Keynesians advocate what used to be called fine-tuning
adjusting government spending, taxes, and the money supply every few months to
keep the economy at full employment. Almost all economists, including most
Keynesians, now believe that the government simply cannot know enough soon
enough to fine-tune successfully. Three lags make it unlikely that fine-tuning will
work. First, there is a lag between the time that a change in policy is required and the
time that the government recognizes this. Second, there is a lag between when the
government recognizes that a change in policy is required and when it takes action. In
the United States, this lag is often very long for fiscal policy because Congress and the
administration must first agree on most changes in spending and taxes. The third lag
comes between the time that policy is changed and when the changes affect the
214 | P a g e
economy. This, too, can be many months. Yet many Keynesians still believe that more
modest goals for stabilization policycoarse-tuning, if you willare not only
defensible, but sensible. For example, an economist need not have detailed
quantitative knowledge of lags to prescribe a dose of expansionary monetary policy
when the unemployment rate is 10 percent or moreas it was in many leading
industrial countries in the eighties.
Finally, and even less unanimously, many Keynesians are more concerned about
combating unemployment than about conquering inflation. They have concluded from
the evidence that the costs of low inflation are small. However, there are plenty of antiinflation Keynesians. Most of the world's current and past central bankers, for
example, merit this title whether they like it or not. Needless to say, views on the
relative importance of unemployment and inflation heavily influence the policy advice
that economists give and that policymakers accept. Keynesians typically advocate
more aggressively expansionist policies than non-Keynesians.
Keynesians' belief in aggressive government action to stabilize the economy is based
on value judgments and on the beliefs that (a) macroeconomic fluctuations
significantly reduce economic well-being, (b) the government is knowledgeable and
capable enough to improve upon the free market, and (c) unemployment is a more
important problem than inflation.
The long, and to some extent, continuing battle between Keynesians and monetarists
has been fought primarily over (b) and (c).
In contrast, the briefer and more recent debate between Keynesians and new classical
economists has been fought primarily over (a) and over the first three tenets of
Keynesianismtenets that the monetarists had accepted. New classicals believe that
anticipated changes in the money supply do not affect real output; that markets, even
the labor market, adjust quickly to eliminate shortages and surpluses; and that
business cycles may be efficient. For reasons that will be made clear below, I believe
that the "objective" scientific evidence on these matters points strongly in the
Keynesian direction.
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Before leaving the realm of definition, however, I must underscore several glaring and
intentional omissions.
First, I have said nothing about the rational expectations school of thought (see
Rational Expectations). Like Keynes himself, many Keynesians doubt that school's
view that people use all available information to form their expectations about
economic policy. Other Keynesians accept the view. But when it comes to the large
issues with which I have concerned myself, nothing much rides on whether or not
expectations are rational. Rational expectations do not, for example, preclude rigid
prices. Stanford's John Taylor and MIT's Stanley Fischer have constructed rational
expectations models with sticky prices that are thoroughly Keynesian by my definition.
I should note, though, that some new classicals see rational expectations as much
more fundamental to the debate.
The second omission is the hypothesis that there is a "natural rate" of unemployment
in the long run. Prior to 1970, Keynesians believed that the long-run level of
unemployment depended on government policy, and that the government could
achieve a low unemployment rate by accepting a high but steady rate of inflation. In
the late sixties Milton Friedman, a monetarist, and Columbia's Edmund Phelps, a
Keynesian, rejected the idea of such a long-run trade-off on theoretical grounds. They
argued that the only way the government could keep unemployment below what they
called the "natural rate" was with macroeconomic policies that would continuously
drive inflation higher and higher. In the long run, they argued, the unemployment rate
could not be below the natural rate. Shortly thereafter, Keynesians like Northwestern's
Robert Gordon presented empirical evidence for Friedman's and Phelps's view. Since
about 1972 Keynesians have integrated the "natural rate" of unemployment into their
thinking. So the natural rate hypothesis played essentially no role in the intellectual
ferment of the 1975-85 period.
Third, I have ignored the choice between monetary and fiscal policy as the preferred
instrument of stabilization policy. Economists differ about this and occasionally
change sides. By my definition, however, it is perfectly possible to be a Keynesian and
216 | P a g e
still believe either that responsibility for stabilization policy should, in principle, be
ceded to the monetary authority or that it is, in practice, so ceded.
Keynesian theory was much denigrated in academic circles from the mid-seventies
until the mid-eighties. It has staged a strong comeback since then, however. The main
reason appears to be that Keynesian economics was better able to explain the
economic events of the seventies and eighties than its principal intellectual competitor,
new classical economics.
True to its classical roots, new classical theory emphasizes the ability of a market
economy to cure recessions by downward adjustments in wages and prices. The new
classical economists of the mid-seventies attributed economic downturns to people's
misperceptions about what was happening to relative prices (such as real wages).
Misperceptions would arise, they argued, if people did not know the current price level
or inflation rate. But such misperceptions should be fleeting and surely cannot be
large in societies in which price indexes are published monthly and the typical
monthly inflation rate is under 1 percent. Therefore, economic downturns, by the new
classical view, should be mild and brief. Yet during the eighties most of the world's
industrial economies endured deep and long recessions. Keynesian economics may be
theoretically untidy, but it certainly is a theory that predicts periods of persistent,
involuntary unemployment.
According to new classical theory, a correctly perceived decrease in the growth of the
money supply should have only small effects, if any, on real output. Yet when the
Federal Reserve and the Bank of England announced that monetary policy would be
tightened to fight inflation, and then made good on their promises, severe recessions
followed in each country. New classicals might claim that the tightening was
unanticipated (because people did not believe what the monetary authorities said).
Perhaps it was in part. But surely the broad contours of the restrictive policies were
anticipated, or at least correctly perceived as they unfolded. Old-fashioned Keynesian
theory, which says that any monetary restriction is contractionary because firms and
individuals are locked into fixed-price contracts, not inflation-adjusted ones, seems
more consistent with actual events.
217 | P a g e
An offshoot of new classical theory formulated by Harvard's Robert Barro is the idea of
debt neutrality. Barro argues that inflation, unemployment, real GNP, and real
national saving should not be affected by whether the government finances its
spending with high taxes and low deficits or with low taxes and high deficits. Because
people are rational, he argues, they will correctly perceive that low taxes and high
deficits today must mean higher future taxes for them and their heirs. They will, Barro
argues, cut consumption and increase their saving by one dollar for each dollar
increase in future tax liabilities. Thus, a rise in private saving should offset any
increase in the government's deficit. Nave Keynesian analysis, by contrast, sees an
increased deficit, with government spending held constant, as an increase in aggregate
demand. If, as happened in the United States, the stimulus to demand is nullified by
contractionary monetary policy, real interest rates should rise strongly. There is no
reason, in the Keynesian view, to expect the private saving rate to rise.
The massive U.S. tax cuts between 1981 and 1984 provided something approximating
a laboratory test of these alternative views. What happened? The private saving rate
did not rise. Real interest rates soared, even though a surprisingly large part of the
shock was absorbed by exchange rates rather than by interest rates. With fiscal
stimulus offset by monetary contraction, real GNP growth was approximately
unaffected; it grew at about the same rate as it had in the recent past. Again, this all
seems more consistent with Keynesian than with new classical theory.
Finally, there was the European depression of the eighties, which was the worst since
the depression of the thirties. The Keynesian explanation is straightforward.
Governments, led by the British and German central banks, decided to fight inflation
with highly restrictive monetary and fiscal policies. The anti-inflation crusade was
strengthened by the European Monetary System, which, in effect, spread the stern
German monetary policy all over Europe. The new classical school has no comparable
explanation. New classicals, and conservative economists in general, argue that
European
governments
interfere
more
heavily
in
labor
markets
(with
high
unemployment benefits, for example, and restrictions on firing workers). But most of
these interferences were in place in the early seventies, when unemployment was
extremely low.
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Further Reading
Blinder, Alan S. Hard Heads, Soft Hearts. Chaps. 2, 3. 1987.
Blinder, Alan S. "Keynes after Lucas." Eastern Economic Journal (July-September
1986): 209-16.
Blinder, Alan S. "Keynes, Lucas, and Scientific Progress." American Economic Review
(May 1987): 130-36. (Reprinted in John Maynard Keynes (1833-1946), vol. 2, edited by
Mark Blaug. 1991.)
Gordon, Robert J. "What Is New-Keynesian Economics?" Journal of Economic Literature
28, no. 3 (September 1990): 1115-71.
Keynes, John Maynard. The General Theory of Employment, Interest, and Money. 1936.
Mankiw, N. Gregory. "A Quick Refresher Course in Macroeconomics." Journal of
Economic Literature 28 (December 1990): 1645-60.
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In addition to
unforeseen events such as terrorist attacks, risk events of all types seem to
be occurring at an unprecedented pace during the infancy of our 21st century.
The risks we face range and affect the entire span of human activity - from
natural disasters such as Hurricane Katrina and earthquakes/tsunamis in
Indonesia - to deaths resulting from unregulated imports of tainted food and
poisonous products from China.
environment, important questions are being asked about the proper role of
government in mitigating and responding to risks of all types. This paper
reviews the recent literature detailing past and present approaches for risk
management in both the private and public sectors, outlines several
suggested strategies for managing risk in the future, and concludes with an
analysis of recommendations for changes in the way that governments
manage risk.
The traditional ways in which governments and businesses managed risk centered on
either purchasing various types of insurance or simply bearing the risk without any
sort of protection.
availability
of
commercially-available
insurance
coverage,
such
as
emergency
management, taxpayers inevitably end up footing the bill for any given response.
When disasters and other risk events occur, local, state and sometimes federal
budgets have to be adjusted in order to find the fiscal resources needed for a proper
response.
As supported by
Werner Pfenningstorf (1977), it seems that the tools we require have always been
there, but implementation and standardization are problematic.
The available
information shows that many governments, especially small municipalities, still have
haphazard, fragmented, and inconsistent risk management policies; many rely
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exclusively on the advice and the services of local insurance agents, who may not be
equipped or inclined to select the best available coverage. (Pfenningstorf, 1977).
Although commercially-available insurance is an important piece to any risk
management strategy, it can be argued that the risk environment has changed
significantly over the past 50 years, and that a new comprehensive and more flexible
approach is needed to address the risks inherent to governments and to populations.
Risk Culture:
Bozeman and Kingsley (1998) feel that the risk management approach of any given
organization is directly related to the risk culture that pervades that particular
organization and its management philosophy.
to
managers
perceptions
regarding
their
co-workers
The concept
and
superiors
important for government officials and political leaders. Economic downturns place
greater demands on local governments, who are far less equipped to handle the effects
than agencies and officials operating at the federal level.
attempt to manage this source of risk?
different generic strategies are available to budget officials: they can budget
pessimistically for the period (the most conservative approach presuming the least
favorable economic circumstances for the budget period), they can make use of
savings devices (rainy day funds), they can practice financial ledgerdemain (short-run
accounting tricks that shift expenditures to later periods), or they can implement
contingency plans (pre-agreed upon actions that are triggered by economic events, i.e.
taxation and spending policies that depend on defined funding levels).
In attempting to adapt to unexpected budgetary shocks, Wolkoff notes: The types of
actions budget officials may take will depend on the timing and magnitude of the
unexpected shock, the political environment at that time, and the tools available.
(Wolkoff, 1999)
Risk Management in the European Union: The Precautionary Principle.
The United States and the European Union countries differ substantially in their
perceptions and tolerance for risks of all types. Americans seem far more willing to
employ innovations that pose serious environmental or health risks, such as
engineering genetically modified crops and organisms or infusing meats with carbon
dioxide and dangerous preservatives so they appear fresh longer. The French and
many other Europeans tend to be more prudent, evaluating new technologies based on
the precautionary principle, which echoes the old adage of medicine: First, do no
harm. (Tama, 2003) Since the U.S. has a window dressing only policy of regulation
and enforcement, foods and products that are refused entry into the EU are routinely
re-routed for easy sale to the United States. Recent examples include mercury-filled
shrimp from Vietnam, toys from China with poisonous plastics and lead-based paints,
cough syrup from China found to contain anti-freeze, and toothpaste from China
found to contain several poisonous substances.
principle, which is encoded into EU law through the Maastricht Treaty, and which
forms the basis for all European environmental policies, the EU seems to be far ahead
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of the United States when it comes to risk management and protecting their citizens
from unscrupulous corporations whose main concern is profit, and not the public
interest.
Risk Analysis: Rational, Scientific Approaches to Risk Management
The Case of British Rail:
Computer-based simulations are established and effective aids to decision-making and
are widely used in all types of business. The risk analysis procedures used by British
Rail (BRB) involve the use of fractile analysis and Monte Carlo simulation. They were
first used in the BRBs 1983 Corporate Plan, and because of its perceived success, is
now incorporated as a permanent feature of its corporate planning process. (Harris
and Williams, 1985) The planning process used by BRB incorporates both bottom-up
and top-down budget estimates, and incorporates several alternative scenarios and
contingency plans which can be triggered as deemed necessary. The massive amounts
of data from these plans are aggregated and risk profiles are associated with each
alternative estimate (representing the best and worst results), then the data is fed
into a simulation model.
Fractile Method, to give its full title, and its purpose is to establish key points for a
distribution that includes the range, median and quartiles. These are established first
for a cumulative probability curve which can then be transcribed into a probability
density curve. (Harris and Williams, 1985) In attempting to use the simulation to
evaluate possible future financial outcomes, we then take selected data from the
fractile analysis and apply it into a Monte Carlo Simulation. This method involves
taking a sample from each of the distribution curves and combines them to create a
set of possible financial outcomes, which represents what might happen in certain
circumstances. (Harris and Williams, 1985) The major benefit of using this type of
process, is that when and if shocks occur, management can readily see the range of
financial outcomes are likely to result given a certain action, and can be proactive in
applying contingent actions to keep the organization financially on-track with regard
to the longer term.
Rethinking Risk Management in the Federal Government:
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Robin Cantor (1996) is another proponent calling for a more rational, scientific
standard for managing risk at the federal level.
discontent with the current methods being employed in risk management, and that
there is need for radical reform.
intellectual shift in the way that managers think about risk and respond to risks.
Agencies such as the Department of Energy (DOE) and the Environmental Protection
Agency (EPA) are already using sophisticated risk analysis and risk management
systems, and Cantor feels that this will help in the push toward a uniform adoption of
risk analysis and rational processes for risk management across the federal
landscape. Cantor describes the origins of this shift in risk policy:
The Clinton administrations efforts on risk management have
tended to emphasize the role of risk analysis both in setting agency
priorities and in rule making. The Executive Order on Regulatory Planning
and Review (No. 12866) reinforced attention to risk-based priority setting
and the balancing of risk reduction and costs in the broader context of
regulatory decision making.
efforts should incorporate the risks associated with court judgments and exposure to
lawsuits brought by parties in the organizations operating environment. It can be
argued that the more decentralized the particular government or agency is with regard
to its particular service delivery systems, the more exposed they are to potential legal
actions. Additionally, the nature of the business of an organization is related to its
degree of exposure to legal challenges and the risks associated with them. As noted by
Pfenningstorf, the federal government has always had a policy of non-insurance
(Pfenningstorf, 1977). As such, when unexpected court rulings force agencies or local
government units to pay damages, or when courts issue remedial orders that require
224 | P a g e
significant outlays, these government units must re-analyze their current plans and
re-work their budgets to accommodate these costs. There are a number of ways in
which court decisions force public managers to consider financial risk and exposure.
These unexpected costs can cause already-authorized programs to be curtailed or even
cancelled.
Risk Management and the Public-Private Issue:
In recent years, one hot topic that has generated heated debate in government circles
is the question of privatization.
contemporary environment, issues of risk are often intertwined with other complex
problems, particularly privatization and intergovernmental relations. What is usually
meant by privatization is the contracting-out or wholesale transference of government
service delivery in certain areas to private or non-profit firms operating under
contracts with the government. The key problems associated with privatization are
oversight and accountability.
One contentious example of the risks involved in privatization of government services
is that of correctional facilities operated by for-profit private corporations. In his 1999
article, Courts and Fiscal Decision Making, Phillip Cooper reviews a Tennessee case
involving the Corrections Corporation of America.
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Managing the risks associated with terrorism, homeland security and emergency
management are arguably the most challenging of the risks attempting to be managed
by U.S. government and international officials.
attempting to manage these risks, our current U.S. government (G.W. Bush
administration) has viewed it as necessary to take severe and outwardly-aggressive
actions that negate the rights of individual citizens as well as those of sovereign
foreign governments in order to succeed in their current war on terrorism.
In addition to suspending the civil rights of individual citizens, large-scale surveillance
of the domestic population is currently taking place, involving agencies at the federal,
state and local levels. This unprecedented attack on individual freedoms domestically,
along with the incredible offenses that have been leveled against other sovereign
nations, is arguably causing the opposite effect of the one originally intended (reducing
risk) by those in charge of authorizing these operations. In addition to conducting
overtly illegal operations, the federal government has also adopted quasi-legal methods
of attempting to reduce the risks associated with terrorism and homeland security.
Consider the case of InfraGard, an FBI-led organization started in 1996, which is now
a 23,000 member-strong domestic surveillance network in the United States.
This
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practices, the emergency management communities at the state and local levels are far
ahead of their federal counterparts. After the creation of the Department of Homeland
Security (DHS) in November, 2002, billions of dollars were sent out to cities and
counties to make capital purchases that could enhance local responses to emergency
events in the future.
However, as Vicki Wilson notes, Deciding what to fund and what not to fund before a
disaster occurs is a fine line that finance officers and elected officials must walk.
(Wilson, 2007)
Katrina, local governments and first responders realized that they needed to
coordinate and establish relationships with organizations that may be needed in the
response efforts to various emergencies. Unlike the grass-roots efforts of InfraGard,
emergency management officials at the state and local level have now established
legitimate, and efficient networks of organizations and individuals that may be called
upon in times of emergency. Efforts such as mutual-aid agreements between states
and localities; agreements with private sector companies that could support
emergency operations; agreements with national suppliers such as Grainger, Home
Depot, and Wal-Mart; and liaison relationships with support agencies like the
Salvation Army and Red Cross, all form a cohesive network of professionals who can
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increase the success of state and federal responses to emergencies. Another popular
risk management practice used the emergency management field is the establishment
of private sector consortium groups. Building managers and owners, utility and other
infrastructure companies, healthcare organizations, hotels, as well as universities and
colleges, can play an important role in disaster management.
Having previously
established relationships, contacts and agreements with these industry segments can
make life a lot easier during a disaster. (Wilson, 2007) In addition to these efforts,
internal procurement policies can be streamlined, so that during an emergency, public
safety departments can acquire the items they need immediately, bypassing the timeconsuming regular purchasing procedures. These new approaches to managing risks
lead us directly into a discussion of the possibilities for managing risk in the future.
A More Comprehensive and Flexible Risk Management Approach:
In his 2005 article, Governance and risk management: challenges and public
productivity, Arie Halachmi calls for a shift from governing to governance, in which
governments engage private industry and the multitudes of civil society based
organizations to help elected officials address accountability issues, improve
productivity, and provide monitoring of their environments to improve government
response and risk management. Halachmis suggested approach to risk management
is in line with the emergency management methods outlined above by Wilson.
Halachmis 2005 paper recounted a recent case in which extreme management
challenges resulted from government network oversight failures during the Great
Blackout of August, 14, 2003, occurring in the Northeastern United States. Oversight
definitely becomes a complicated issue when government devolves responsibility and
distributes power to networks of nongovernmental entities.
extreme events like this cannot be guarded against because there are too many areas
under different commands, making oversight and risk management impossible.
However, according to Halachmi, increasing decentralization and devolution is a very
effective way of managing risk.
governance.
governance is now used to depict an effort to meet the welfare needs of
citizens in a better way through partnerships with other elements of the civil
228 | P a g e
delivery,
government can take best advantage of local-level knowledge and ideas for addressing
risks. The network of small and large organizations is far more efficient in monitoring
the environment, which translates into improved government response and overall risk
management.
Conclusion:
Bozeman and Kingsley feel that the risk management approach of any given
organization is directly related to the risk culture that pervades that particular
organization and its management philosophy. They argue that when the environment
is characterized by red tape, a weak relationship between promotion and performance,
and a high level of involvement with elected officials, this translates into a less risky
culture. Wolkoff supports the use of budgetary devices as vital risk management tools
for the public administrator.
public administrators consider these risks in any strategic planning they perform.
Rothschild believes that U.S. initiatives such as InfraGard and illegal wire-tapping
(domestically) and the war on terror (internationally), are actually increasing risks to
the country and its people, instead of successfully reducing risks. Finally, Wilson and
Halachmi are staunch proponents for a comprehensive and flexible network system of
relationships between governments, businesses and civil-based society organizations.
These arrangements are viewed as improving public productivity, helping governments
accomplish their goals, and helping in monitoring the environment for risks, while
improving communication and enhancing government responses to crises, effectively
reducing risks throughout the system.
References
Baird, Inga Skromme and Thomas, Howard Toward a Contingency Model of Strategic
Risk Taking, The Academy of Management Review, 10(2), 230-243.
Bettis, Richard A. (1983) Modern Financial Theory, Corporate Strategy and Public
Policy: Three Conundrums, The Academy of Management Review, 8(3), 406-415.
Bozeman, Barry and Kingsley, Gordon, (1998) Risk Culture in Public and Private
Organizations, Public Administration Review, 58(2), 109-118.
Cantor, Robin (1996) Rethinking Risk Management in the Federal Government,
Annals of the American Academy of Political and Social Science, Vol. 545, Challenges in
Risk Assessment and Risk Management. 135-143.
Close, Darwin B. (1974) An Organization Behavior Approach to Risk Management,
The Journal of Risk and Insurance, 41(3), 435-450.
Cooper, Phillip J. Courts and Fiscal Decision Making In Roy T. Meyers ed. (1999)
Handbook of Government Budgeting. San Francisco, Jossey-Bass, Inc. 502-526.
Gahin, Fikry S. (1967) A Theory of Pure Risk Management in the Business Firm, The
Journal of Risk and Insurance, 34(1), 121-129.
Halachmi, Arie (2005). Governance and Risk Management: Challenges and Public
Productivity, The International Journal of Public Sector Management, 18(4/5), 300-317.
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Harris, D. John and Williams, D. Glyn (1985) The Use of Risk Analysis Within British
Rail, Managerial and Decision Economics, 6(4), 202-209.
Jemison, David B. (1987) Risk and the Relationship among Strategy, Organizational
Processes, and Performance, Management Science, 33(9), 1087-1101.
Ring, Peter Smith and Perry, James L. Strategic Management in Public and Private
Organizations: Implications of Distinctive Contexts and Constraints, The Academy of
Management Review, 10(2), 276-286.
Rothschild, Matthew The FBI Deputizes Business The Progressive, February 7, 2008.
Ruefli, Timothy W., Collins, James M. and Lacugna, Joseph R. (1999) Risk Measures
in Strategic Management Research: Auld Lang Syne?, Strategic Management Journal,
20(2), 167-194.
Wilson, Vicki Being Prepared for Disaster: Strategies and Tactics for Finance
Managers,
Government Finance Review, Dec. 2007; 23(6), 23-26.
Wolkoff, Michael State and Local Government Budgeting: Coping With the Business
Cycle, In Roy T. Meyers ed. (1999) Handbook of Government Budgeting. San
Francisco, Jossey-Bass, Inc. 178-196.
231 | P a g e
Contrastingly,
when the Government Accounting Office (GAO) audited the Federal Savings and Loan
Insurance Corporation using the accrual-based accounting, it found a $13.7 billion
deficit, whereas a cash-based audit for the same period reported a substantial surplus
(Craig, 1989).
Questions for this paper include: Has this change in accounting methods beneficially
impacted strategic management issues in the public sector in the United States and
other countries? Additionally, are program and service performance measures being
captured more efficiently and effectively with accrual-based accounting procedures in
public entities? Finally, how do experts in the field of public administration see the
future prospects for the advantage of these changes in the gathering of usable
financial information?
Accrual Accounting and management issues in other countries
New Zealand had a rapid transition from the Public Finance Act of 1989 and the
setting up of the first milestones of accrual-based accounting (Marty, Trosa & Voisin,
2006). This did not happen without forethought and planning. One year before the
Public Finance Act of 1989, the State Sector Act took stock of the responsibilities that
were to fall on public managers with the change in financial reporting proposed. To
offset the added responsibilities, managers were given greater freedom in terms of the
management of their teams, such as flexible staffing and performance-based rewards.
Therefore, this preplanning stage resulted in a more rapid and smoother transition
than that in other countries.
In 1996, the Australian government introduced an accrual-based outputs and
outcomes budgeting and reporting system (Sterck, 2007). One consequence of this
233 | P a g e
change is that amounts appropriated to governmental agencies are now based on the
full cost of delivering outputs and outcomes rather than the expected cash outflow for
the year. While Parliament is receiving more information than it formerly had at its
disposal, its control has been weakened due to authorization now taking place on a
more aggregated level (i.e., outcome level) and the complexity of the budget and
accounts increasing. Parliament complains that the output information in the annual
agency reports is too aggregated and thus more difficult to get a clear view of the
agencies contributions to the outputs. With agencies adapting their outcome and
output structures, this instability has led to less transparency of the financial system
and has weakened Parliamentary control.
Since the late 1990s the Canadian government has attempted to institute a modified
accrual accounting system in concert with the new structure under which the
departments and agencies have to manage and report to Parliament, namely the
Program Activity Architecture [PAA] (Sterck, 2007). Under this new structure, costs are
allocated to program activities, subactivities, and subsubactivities. However, even
though this has led to the Canadian Parliament having more information on program
achievements and costs, members of Parliament have not been using this information
in any consistent fashion to influence their budget decisions to date.
The implementation of the new public accounting system in the United Kingdom (UK)
was spread over seven years between the approval of the White Paper on accounting
and budgetary policies in 1995, the Government Resources and Accounts Act in 2000,
and finally the publication on public accounts on the basis of Accrual Based
Accounting in 2002 (Marty et al., 2006). Currently, the UK Treasury has shifted its
accounting policy away from the traditional appropriations to resource accounting
involving accrual basis accounting (Wilks, 2007). This along with other reform
initiatives has led to the current emphasis on corporate governance and the
institution of board of directors to oversee government agencies and municipalities.
Wilkes points to both advantages and disadvantages of this development in the UK.
Advantages include: 1) location of responsibility; 2) ethical expectations; 3)
transparency; 4) consistency; 5) performance measurement; and 6) accountability.
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Why bring this out when writing on accounting methods relating to strategic
management issues? The above dichotomy seen by Halachmi between accountability
235 | P a g e
(productivity). Strategic
and
adaptation than the financial bottom line can accommodate. Can any of the current
management costing systems used in conjunction with accrual accounting facilitate a
link to performance measures that will enable real progress in the use of outcome
information in government planning and budgeting?
Linking performance measures to accurate costing information
The Office of Management and Budget (OMB) has been in the process of encouraging
the development of definitive performance measures linked to accurate cost
accounting that would conform to the National Performance Review (NPR) goals (Jones
& McCaffery, 1998). In 1996 Congress passed the Federal Financial Management
Improvement Act (FFMIA), which in conjunction with the Government Performance
and Reporting Act (GPRA) of 1993 attempts to integrate financial and performance
data in a way that relates to budget accounts.
Brimson & Williams (2007) analyzed the U.S. federal governments financial and
performance reporting models. While the current financial reporting model is single
dimensional with an accounting regulator creating a set of principles as to how
financial effects of transaction and events are to be measured, recorded and reported.
These authors also analyze the proposed process-based accounting, which is a
multidimensional
approach
that
bridges
both
financial
reporting
and
cost
237 | P a g e
immediate profit loss. Therefore, government contractors believe a change in the way
costs are reported usually means lower revenues and decreased profits. In the private
sector, any cost savings leads to increased profits and potential increase in the market
share. Currently, a contractor has to refund any savings from lower costs to produce
a product or deliver a service for the government. Adoption of ABC management may
provide more accurate cost data with which to price items, but it may reduce
contractors operating margins and profits, increase the efforts of providing cost data,
and lengthen the approval process of final annual indirect cost allocations.
The cost management objectives of the public sector are not typical of those of the
private sector (Mackie, 2006). First, government contractors are primarily interested in
obtaining a fair recovery of all costs and currently believe it is fair to attach general
and administrative costs to direct labor hours using an overhead rate even though it is
not the best way to manage costs. Not every contract uses all the activities grouped
into the administrative pool, however these are still charged costs based upon their
percentage of the total cost base.
Secondly, the move to accrual accounting offers the possibility of defining a complete
cost. This definition of complete cost on the same accounting foundations as private
firms is essential if the public and private offers are to be compared to each other
within the framework of partnership contracts. Further, the financial impact of
commitments relating to pensions or social services will help to clarify public decision
by supplying an honest and fair picture of the financial situation and performance of
public entities.
While the benefits of accrual-based accounting for government agencies are many, it is
not without risks and potential impediments to NPM or NPR initiatives. First, the costs
of set up and training involved in switching to accrual are necessary but considerable
(Marty, et al., 2006). Second, the years of time invested to reach compliance of
accounts and reports. Third and perhaps most important, the investment relating to
the explanation of the reform to involve the staff in the process is daunting but vital to
its success.
Conclusions
The above considerations, particularly the financial cost of the transition, are among
the reasons that the Netherlands, while a ground-breaker in evaluating the cost of the
service delivered by its public administrations, has rejected the adoption of the
accrual-based accounting system for the government (Marty, et al. 2006). Has the
United States government made a wise choice in the changeover to accrual-based
accounting? If it gives managers more of the tools they need to plan for program costs
and to evaluate the returns in outcomes realized by these outlays, then it will be
advantageous. However, in analyzing the Central Banks move to accrual-based
accounting, Mendezela (2007) cautioned Banks to accept inherent imperfections of
accounting and reporting systems and reminded to use real-world info to improve real
world service performance and management. The next few years will bring further
insight into whether the United States move to accrual-based accounting in its
government institutions enhances strategic planning and management initiatives or is
an impediment to real progress.
Summary of Accounting Methods and Strategic Planning and Management Issues
239 | P a g e
Introduction
Review of literature to cover current trend of change from cash-based to
accrual-based accounting in the public sector and how this impacts planning
and management issues
Impetus for change with the Winter Commission Report (1993) on state and
local governmental reform needs and
Committee on Governmental Affairs that called for timely, relevant and
comprehensive
financial
information
to
aid
in
controlling
government
240 | P a g e
Public Finance Act - 1989 - Preplanning lead to rapid and effective transition to
accrual.
In 1988 assessed what greater responsibilities fall on mangers
To offset above, managers given greater freedom in terms of management of
teams with flexible staffing and performance-based rewards.
Accrual Accounting & Management Issues in Other Countries: Australia
1996 - government went to accrual-based outputs and outcomes budgeting &
reporting systems
Appropriations now based on full cost of delivering outputs & outcomes rather
than expected cash flow for the year
Parliament complained that output info too aggregated and thus more difficult
to assess agencys contributions to outputs.
Above has led to less transparency of financial system and weakened
Parliamentary control and planning.
Accrual Accounting & Management Issues in Other Countries: Canada
Late 1990s instituted modified-accrual accounting in concert with the Program
Activity Architecture structure for agencies reporting to Parliament
The costs were allocated to program activities, sub-activities, etc.
To date, this has not led to Parliament using this info consistently to influence
budgeting decisions.
Accrual Accounting & Management Issues in Other Countries:United Kingdom
Implementation of new accrual accounting system spread over 7 yrs starting
with the White Paper on accounting & budgetary decisions in 1995 to
publication on public accounts in 2002 (Marty, et al., 2006).
241 | P a g e
Activities are the sum of the resources needed to develop the productive process
and add value to the product or service (Morini, 2006).
ABC capable of monitoring hidden losses and profits of traditional costing
methods
Pricing decisions based on the above can help gain competitive advantage
ABC database is an advantage to the Balanced Score Card implementations
Current costing methods: CVP
A modified Cost-Volume-Profit (CVP) adding the cost of capital that is traced to
products or services like the cost of overhead-related resources
This CVP model based on the economic income enables manager to compute a
products breakeven sales quantity, its profitability over range of its sales and
determine rate of change in profitability
Facilitates measuring tradeoffs in alternative investment and cost on a
products profitability from a process improvement perspective (Kee, 2007).
Current costing methods: VFM
Value for money (VFM) simply is cost of producing a product or delivering a
service minus the price charged
243 | P a g e
accounting
one
of
decisive
stages
of
the
attempts
to
245 | P a g e
study
of
performance
reporting.
International
Review
of
Administrative
Sciences,66, 433-449.
Combs, S. (n.d.). Activity-based costing and management: The Texas pilot project.
Retrieved
February
19,
2008,
from
http://www.window.state.tx.us/specialrpt/abc/costmgmt.html]
Craig, L.E. (1989). Congressman. Statement, hearings, Improving federal financial
management, House of Representatives, committee on government operations,
subcommittee on legislation and national security. Washington, D.C., Government
Printing Office.
DioGuardi, A. (1989). Congressman. Statement, hearings, Improving federal financial
management, House of Representatives, committee on government operations,
subcommittee on legislation, and national security. Washington, D.C., Government
Printing Office.
Drake, A.R., Haka, S.F., & Ravenscroft, S.P. (1999). Cost system and incentive
structure effects on innovation, efficiency and profitability in teams. The Accounting
Review, 74(3), 323-345.
Grumet, L. (2007). The importance of financial transparency: swallowing a bitter (but
necessary) pill. The CPA Journal, 77(6), 7-9.
Halachmi, A. (2005). Performance measurement: test the water before you dive in.
International Review of Administrative Sciences, 71(2), 255-266.
Juras, P., & Peacock, E. (2006). Applying strategic cost analysis concepts to capacity
decisions. Management Accounting Quarterly, 8(1), 24-35.
Kamnikar, J.A., Kamnikar, E.G., & Deal, K.H. (2006). Assessing a states financial
condition. The Journal of Government Financial Management, 55(3), 30-37.
Kee, R. (2007). Cost-volume-profit-analysis incorporating the cost of capital. Journal of
Managerial Issues, 19(4), 478-493.
246 | P a g e
Kelley, A.G., & Ruggieri, M.P. (2007). Municipalities get a healthy dose of reality on
postemployment benefits: the effects of GASB 43 and 45 on government finances. The
CPA Journal, 77(4), 28-32.
Kennet, D.L., Durler, M.G., & Downs, A. (2007). Activity-based costing in large U.S.
cities: costs & benefits. The Journal of Government Financial Management, 56(1), 2031.
Levy, J. & Young, M. (2003). Caution: accounting changes ahead. Benefits Quarterly,
4,
36-46.
Marty, F., Trosa, S., & Voisin, A. (2006). The move to accrual based accounting: the
challenges facing central governments. International Review of Administrative Sciences,
72(2), 203-221.
Mautz, R.K. (1991). Generally accepted accounting principles. Public Budgeting and
Finance, 11(4), 3-11.
Mendzela, J. (2003). Central bank accounting and reporting. Accounting standards for
central banks, (pp. 1-20). Central Banking Publications.
National Commission on the State and Local Public Service. (1993). Hard truths/tough
choice: An agenda for state and local reform. Accessed March 1, 2008
fromhttp://www.rockinst.org/WorkArea/showcontent.aspx?id=9980.
New Zealand Inc. (1992). Economist, 324, 1-3. Retrieved March 7, 2008, from
Academic Search Premier database.
Shannon, P.E. (2006). When profit means value for money. Clinician in Management,
14, 175-176.
Sterck, M. (2007). The impact of performance budgeting on the role of the legislature:
a four-country study. International Review of Administrative Sciences, 73(2), 189-203.
Vercio, A. & Shoemaker, B. (2007). ABCs of batch processing. Journal of Accountancy,
204(2), 1-7. Retrieved January 16, 2008, from Business Source Premier database.
247 | P a g e
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2.4 The Sarbanes-Oxley Act of 2002; Audit and Governance of Not for Profit
Organizations
Section I: Summary of the key provisions the Sarbanes-Oxley Act of 2002 and
their impact in the nonprofit sector
On July 30, 2002, President Bush signed into law the Sarbanes-Oxley Act of 2002,
which he characterized as "the most far reaching reforms of American business
practices since the time of Franklin Delano Roosevelt." The Act mandated a number of
reforms to enhance corporate responsibility, enhance financial disclosures and combat
corporate and accounting fraud, and created the "Public Company Accounting
Oversight Board," also known as the PCAOB, to oversee the activities of the auditing
profession (U.S. Securities and Exchange Commission). The Sarbanes-Oxley Act (SOX)
is arranged into eleven titles. As far as compliance is concerned, the most important
sections within these eleven titles are usually considered to be 302, 401, 404, 409,
802 and 906. The Act can be divided into three parts: internal controls (exercised by
management), external checks (performed by the board or external auditors), and
investigations (triggered by whistleblowers or others).
apply
protection
to
nonprofit
organizations:
whistle-blower
and
document
impact on private organizations, with 86% of his survey respondents indicating that
SOX and other corporate governance reform requirements had impacted their
organizations.
A majority (70%) of the private organizations surveyed implement self-imposed
corporate governance reforms.
Section II: How non-profit organizations are reacting to the opportunity/threat
of greater accountability
Jackson (2007) views the SOX requirements as an opportunity for nonprofits to
improve their operational systems, procedures and methods for doing business via
better control mechanisms. Ancillary benefits are also accrued to the organization via
streamlined standard operating procedures, record keeping, and policy adoption as a
result of engaging in SOX compliance activity. Jackson finds that engaging in the
strategic planning process forces a nonprofit to evaluate how it is perceived by its
donors and the public at large as it engages external and internal stakeholders in the
development of goals and objectives that are commonly held.
Boudes research (2006) reveals that more nonprofit survey participants cited
implementation or planned implementation of more aspects of corporate governance
reforms than for-profit organizations. In comparing the data, Boude cited three groups
consistently influencing the decision to adopt corporate governance standards: the
organizations themselves, their board members and their auditors. The influence of
these three groups fuels the continued adoption of standards as perceived best
practices.
The research also contends that auditors generally perceive they have
more risk on audits they perform for large organizations and therefore exert more
pressure on these organizations to adopt SOX standards.
251 | P a g e
Section III: How other countries are impacted by the SOX Act; Focus on EU and
China
Sound corporate governance is good for maximizing the shareholder value and
productivity of companies. In countries outside the United States, powerful mimetic
forces in international business practice drives isomorphic tendencies that create
pressure (and incentive) for organizations to adopt Sarbanes-Oxley requirements
(Lucci, Dewing & Russell, Lin). It is important to note that the Act applies only to
foreign corporations that elect to avail themselves of the benefits of American capital
markets. Lucci (2003) From its inception, Sarbanes-Oxley caused headaches for the
more than 1,300 foreign firms, such as British Airways and GlaxoSmithKline, that
trade on an American exchange, and left many foreign officials uncertain as to which
provisions of the Act applied to them. Lucci reports that these officials criticized the
Act for regulating foreign accounting services and corporations. Contraindications for
adoption of SOX standards cited by Lucci conclude that exempting foreign
corporations from the Acts coverage would create economic disparities between
American and overseas firms, as one group would be required to incur compliance
costs and the other would not. Furthermore, if corporations outside the United States
are exempt from Sarbanes-Oxleys more stringent requirements, this could provide a
perverse incentive for corporations to leave the United States to seek refuge in
countries with less stringent accounting and corporate governance standards. (p.219)
As a basis for exemption from the Acts provisions, many European executives argue
that firms are already highly regulated in their respective countries and that
Sarbanes-Oxley adds another layer of unnecessary regulation. Lucci offers as an
example why it is necessary for French companies to follow the regulations of
Sarbanes-Oxley when the country already has two of its own oversight boards.
Dewing and Russell (2004) provide an overview of EU policy developments in
accounting, auditing and corporate governance before and after the collapse of Enron.
For EU policy-makers the article identifies areas for both encouragement and concern.
It concludes that considerable progress has been made towards the harmonization of
accounting, auditing and corporate governance within the context of the Financial
Services Action Plan. However, the authors argue that to achieve this balance, the EU
252 | P a g e
recommendations of how following rules form the Sarbanes-Oxley Act can be modified
and used to improve the quality of Chinas company corporate governance. (Lucci,
2003) quotes Wang Xiaochu, CEO of blue-chip company China Mobile in Hong Kong,
which does business in the United States following SOX regulations: Our accounts
are very transparent and accurate, we will be happy to sign the document and bear
the legal responsibility.
By applying one set of standards to all corporationsregardless of whether they are
located in the United States or abroadinvestors will be assured that each and every
corporation deriving a direct benefit from American capital markets will be subject to
the stringent protections in Sarbanes-Oxley. Corporate migration to avoid SarbanesOxley will lead to further instability in markets if companies seek refuge in
jurisdictions offering less accountability for corporate wrongdoing.
Section IV: Implications for the future What will motivate non-profits to ensure
compliance?
Oxholm (2005) maintains that Sarbanes-Oxley is not designed to rid businesses of
corruption as it does not punish anyone for embezzling, wasting corporate assets,
excessive compensation, or anything else. Those rules, and punishments, lie
elsewhere. Instead, its goal is to encourage the earlier discovery and disclosure of
corruption. Its method is to require businesses to have enough incentives and
mechanisms in place to persuade persons who are generally lower in the
organizational chart to disclose problems and possible wrongdoing to someone with
greater authority.
253 | P a g e
Heinz (2002) finds that accounting professionals and regulators will initiate driving
forces to motivate change in the financial practices and auditing process of nonprofits.
Regulatory control of non-profits from states will as they intensify oversight of
activities through detailed reporting requirements and prosecution of illegal practices.
Heinz proposes that this effort will constitute a collective watch dog group that
oversees nonprofits. State initiatives mirroring SOX include the California Nonprofit
Integrity Act (SB1262), which applies to any nonprofit with a budget in excess of $2
million that solicits donations within the state.
Ostrower &Bobowick (2005) include among these driving forces IRS requirements for
posting financial statements (which are public, but the authors suggest should be
made available electronically for stakeholder viewing). Their research found that only
11% of organizations were posting their IRS returns on the agencys site. Additional
measures to ensure compliance would be collaboration with Certified Public
Accounting protocols, real-time distribution of material, and use of plain language
documents. Non-profit boards will be called on to re-examine their composition and
possibly alter them to include ad hoc committees that represent interests vested in the
stakeholder constituency.
exempt sector include compliance with IRS regulations, five-year reviews of tax-exempt
254 | P a g e
status based on data collected by the IRS, adoption of policies that comply with SOX
requirements, and potential agency accreditation from professional bodies that outline
industry specific standards of best practice.
nonprofits ensure that their operations are consistent with stated mission, in their
words, that they are who they say they are and do what they say they are doing.
Oxholm (2005) describes a process undertaken in higher education that parallels
initiatives from strategic planning and governance. Toward ensuring that adequate
controls are in place, consultants will analyze each process to see what kinds of
controls the system already has (analysis) and what is missing (gap analysis). Then
they will determine what new controls are required (diagnostics), designing and
installing what it lacks (remediation). Finally, consultants will test them (validation)
and then audit them on an annual basis, comparing them to those of our peers
(benchmarking).
Broude (2006) provides the most common aspects of corporate governance reform that
some private organizations have implemented or plan to implement in response to the
regulations on public companies.
These are:
As
(2005 ).
Heinz, P.A. (2003). Responding To The Sarbanes-Oxley Act Of 2002; The Financial
Reporting Practices of Nonprofits. A report published by the Alliance for
Children and
Securities
and
Exchange
Commission.
http://www.sec.gov/about/laws.shtml#sox2002
Sarbanes-Oxley Act of 2002, Pub. L. No. 107-204, 116 Stat. 745 (2002) (codified in
various sections of the U.S.C.A.)
Webb, E.
Review
(2008)
257 | P a g e
Structuralist model
Source of ConflictMarx
Addition of Natural
Informal relations
Hotel natural
McD rational
Thompsons Levels
Technical levelproductionrational
259 | P a g e
thus the evolving strategy (or evolving structure) will support the idea that you
can maximize your strengths, If cannot change structure, then you can
concentrate on STRATEGY.
STRATEGY IN THE PUBLIC SECTOR STARTS WITH THE MISSION!
Halachmi The notion of a stable environment doesnt exist anymore.
With strategic planning, you dont need to succumb to the typical life cycle
of organizations.
Structure
The org first chooses what services/products they will provide to the
market. Based on that choice, there may exist an already-researched
optimal structure for your org.
At the beginning of any org you start with an idea that is shared
among a group. The group who decides to stay and entertain this
idea further is considered the initial structure. Now they interact and
develop PLANS to proceed. STRATEGY is then dictated from higher in
the structure or developed thru group and team processes.
The
PUBLIC
SECTOR
ARGUMENTS
FOR
STRATEGY
SHOULD
State
and
local
agencies
changed
in
response.
even the very best planning techniques are of no use because of the
impossibility of predicting the kind of stability that will eventually emerge.
262 | P a g e
IN THE PUBLIC SECTOR: SOME BUT NOT ALL STRATEGIES WILL WORK
IN PUBLIC ORGS.
o
We may end up
OPTIMIZING the measure and fail to achieve the strategy behind the
measure.
In government, higher levels may set strategic goals for lower levels
in certain areas, but not in others.
263 | P a g e
In the public sector, the basic mission of the org is always determined
externally, by legislative bodies, and it is expressed through laws and
regulation.
Halachmi argues that managers in the public sector tend to follow the
MUDDLING THROUGH style of management, rather than investing
valuable time and energy into more proactive approaches such as
strategic management.
Goals are more difficult to measure in public sector not tied to any single
criterion like bottom-line profits.
Halachmi adds that many public sector decisions must be made with limited
information, and for reasons of political capital, must produce short-term
results. This means that developing long-term plans or strategies is often a
useless exercise in the public sector, except in cases where the primary work
is technological in nature, in which case strategic planning holds promise.
ADAPTIVE MODE:
Some
of
the
literature
describes
this
as
entrepreneurial mode.
Philip SELZNICK Strategies take on value only as committed people infuse them
with energy.
DENHARDT & DENHARDT (2000) In The New Public Service: Serving rather than
Steering.
265 | P a g e
266 | P a g e
267 | P a g e
In
Institutional
Econ,
individuals
operate
within
socially
constructed
ASSUMPTIONS OF TCE:
o
Opportunism
(Self-Interested,
Cheating
or
lying,
Withholding
information)
AGENCY THEORY aka PRINCIPAL-AGENT THEORY:
Problems with Agency Theory Moral Hazard (agent does not complete taskshirking), Adverse Selection
270 | P a g e
MOE argues that economic analysis of public organizations has received little
attention in the literature and suggests three primary areas in which economic
analysis could be applied:
o
Need for mutual coexistence and links between public and private sectors.
To assume that when you have a strategic plan, you have a roadmap, is wrong.
Principal-Agent relationships and people working for their own interests can
change how strategic plans work out.
ADAPTIVE MODE:
o
WALDO
Allison is best known as a political scientist for his book Essence of Decision:
Explaining the Cuban Missile Crisis (1971), in which he developed two new
theoretical paradigms - an organizational process model and a bureaucratic
politics model - to compete with then-prevalent approach of understanding
foreign policy decision making using a rational actor model. Essence of Decision
swiftly revolutionized the study of decision making in political science and
beyond.
When he first wrote the book, Allison contended that political science and the study of
international relations were saturated with rational expectations theories inherited
from the field of economics. Under such a view, the actions of states are analyzed by
assuming that nations consider all options and act rationally to maximize their utility.
Allison attributes such viewpoints to the dominance of economists such as Milton
Friedman, statesmen such as Robert McNamara and Henry Kissinger, disciplines such
as game theory, and organizations such as the RAND Corporation. However, as he
puts it:
It must be noted, however, that an imaginative analyst can construct an account
of value-maximizing choice for any action or set of actions performed by a
government.
272 | P a g e
Or, to put it bluntly, this approach (which Allison terms the "Rational Actor Model")
violates the law of falsifiability. Also, Allison notes that "rational" analysts must ignore
a lot of facts in order to make their analysis fit their models.
In response, Allison constructed three different ways (or "lenses") through which
analysts can examine events: the "Rational Actor" model, the "Organizational
Behavior" model, and the "Governmental Politics" model.
To illustrate the models, Allison poses the following three questions in each section:
1. Why did the Soviet Union decide to place offensive missiles in Cuba?
2. Why did the United States respond to the missile deployment with a blockade?
3. Why did the Soviet Union withdraw the missiles?
The "Rational Actor" Model
The origin of Allison's first model is explained above. Basically, under this theory:
When faced with a crisis, government leaders don't look at it as a whole, but
break it down and assign it according to pre-established organizational lines.
Because of time and resource limitations, rather than evaluating all possible
courses of action to see which one is most likely to work, leaders settle on the
first proposal that adequately addresses the issue, which Simon termed
"satisficing."
Because of the large resources and time required to fully plan and mobilize
actions within a large organization (or government), leaders are effectively
limited to pre-existing plans.
adapted to Cuban conditions, and as a result, mistakes were made that allowed
the U.S. to quite easily learn of the program's existence. Such mistakes
included such gaffes as supposedly undercover Soviet troops decorating their
barracks with Red Army Stars viewable from above.
2. Kennedy and his advisors never really considered any other options besides a
blockade or air strikes, and initially, were almost unanimously in favor of the
air strikes. However, such attacks created massive uncertainty because the
U.S. Air Force couldn't guarantee it would disable all the nuclear missiles.
Additionally, although Kennedy wanted a "surgical" air strike that would
destroy the missiles without inflicting extensive damage, the existing Air Force
plan required extensive bombing that would have created more collateral
damage than Kennedy desired. Because the U.S. Navy already had considerable
strength in the field, because there was a pre-existing plan in place for a
blockade, and because Kennedy was able to communicate directly with the
fleet's captains, members fell back on the blockade as the only safe option.
3. The Soviets simply did not have a plan to follow if the U.S. took decisive action
against their missiles. Khrushchev's communications indicated a high degree of
desperation. Without any back-up plan, the Soviets had to withdraw.
The "Governmental Politics" Model
After reading works by Richard Neustadt and Samuel P. Huntington, among others,
Allison proposed a third model, which takes account of court politics (or "palace
politics"). While statesmen don't like to admit they play politics to get things done,
especially in high-stakes situations such as the Cuban missile crisis, they nonetheless
do.
Allison proposed the following propositions for this model:
Even if they share a goal, leaders differ in how to achieve it because of such
factors as personal interests and background.
275 | P a g e
Even if a leader holds absolute power (i.e., the President of the United States is
technically the commander-in-chief), the leader must gain a consensus with his
underlings or risk having his order misunderstood or, in some cases, ignored.
Related to the above proposition, the make-up of a leader's entourage will have
a large effect on the final decision (i.e., an entourage of "yes men" will create a
different outcome than a group of advisors who are willing to voice
disagreement).
If a leader is certain enough, they will not seek input from their advisors, but
rather, approval. Likewise, if a leader has already implicitly decided on a
particular course of action, an advisor wishing to have influence must work
within the framework of the decision the leader has already made.
If a leader fails to reach a consensus with his inner circle (or, at least, the
appearance of a consensus), opponents may take advantage of these
disagreements. Therefore, effective leaders must create a consensus.
Allison had to admit that, because the Soviets were not as open with their internal
affairs as the Americans, he simply didn't have enough data to fully interpret the crisis
with this model. Nonetheless, he made the following attempt:
1. Khrushchev came under increasing fire from the Presidium because of
Kennedy's revelation of the Soviet lack of ICBMs, as well as American successes
in the Berlin Airlift. Also, the Soviet economy was being stretched, and military
leaders were unhappy with Khrushchev's decision to cut the size of the Red
Army. Placing missiles in Cuba was a cheap and quick way for him to secure
his political base.
276 | P a g e
2. Because of the failure of the Bay of Pigs invasion, Republicans in the Congress
made Cuban policy into a major issue for the upcoming congressional elections
later in 1962. Therefore, Kennedy immediately decided on a strong response
rather than a diplomatic one. Although a majority of EXCOMM initially favored
air strikes, those closest to the president - such as his brother and Attorney
General, Robert Kennedy, and special counsel Theodore Sorensen - favored the
blockade. At the same time, Kennedy got into arguments with proponents of the
air strikes, such as Air Force General Curtis LeMay. After the Bay of Pigs fiasco,
Kennedy also distrusted the CIA and its advice. This combination of push and
pull led to the implication of a blockade.
3. With his plans thwarted, Khrushchev tried to save face by pointing to American
missiles in Turkey, a position similar to the Cuban missiles. While Kennedy
refused to move these missiles "under duress," he allowed Robert Kennedy to
reach a deal with Soviet ambassador Anatoly Dobrynin, in which the Turkish
missiles (which Kennedy ordered removed prior to the crisis) would be quietly
removed several months later. Publicly, Kennedy also agreed never to invade
Cuba.
Implications
When the book was first published, Allison's primary message was that the concept of
mutually assured destruction as a barrier to nuclear war was unfounded. By looking
at organizational and political models, such an outcome was quite possible - nations,
against what was predicted by the rational viewpoint, could indeed "commit suicide."
He pointed to several incidents in history that seemed to back this assertion. His most
salient point: prior to the attack at Pearl Harbor, Japanese military and civilian
leaders, including those responsible for making the decision, were fully aware that
they lacked the industrial capacity and military might to win a war against the U.S.
They went ahead and attacked anyway.
He also believed that the organizational model explained otherwise inexplicable gaffes
in military history. To return to 1941, he noted that the U.S. intercepted enough
evidence to indicate that Japan was about to attack Pearl Harbor, yet the commander
277 | P a g e
did not prepare. The answer, Allison revealed, was not some conspiracy, but that what
the intelligence community viewed as a "threat of attack," the commander interpreted
as a "threat of sabotage." This miscommunication, due to different viewpoints, allowed
the attack to be pulled off successfully - as Allison sarcastically noted, having U.S.
planes lined up wing-to-wing and surrounded by armed guards was a good plan for
preventing sabotage, but not for surviving an aerial attack.
Likewise, the political process model explained otherwise confusing affairs. Allison
pointed to the decision by General Douglas MacArthur to defy his orders during the
Korean War and march too far north. The reason was not a "rational" change in U.S.
intentions, but rather, MacArthur's disagreements with Harry Truman and other
policymakers, and how officials allowed MacArthur to make what they considered
unwise moves because of concerns over political backlash due to the general's public
popularity.
Above all, he described using rational actor models as dangerous. By using such
models (and modes of thinking), people made unreliable assumptions about reality,
which could have disastrous consequences. Part of what allowed the attack on Pearl
Harbor to be pulled off was the assumption that, since Japan would lose such a war,
they would never dare attack. The assumption under MAD is that nobody will ever
start a nuclear war because of its consequences. However, humans are not
inextricably bound to act in a rational manner, which history has proven time and
time again.
While Allison did not claim that any of his additional two models could fully explain
anything, he noted that policymakers and analysts alike would benefit from stepping
away from the traditional model and exploring alternate viewpoints (although this last
remark could be viewed as facetious on Allison's part).
Difference between: Classical Economics & Institutional Economics.
KORTEN (1984) Developed the concept of STRATEGIC ORGANIZATION.
278 | P a g e
Traditional models of organization are not well-suited for the future and
STRATEGIC MANAGEMENT represents a positive alternative, one that carries
with it a proactive commitment to the ideal that the purpose of organization is
to serve the needs of people, while facilitating the human growth of all
participants.
MOE (1987) Exploring the Limits of Privatization.
Need for mutual coexistence and links between public and private
sectors.
279 | P a g e
CHIEF FINANCIAL OFFICERS ACT OF 1990 Intended to bring the budget and
accounting functions together and to centralize financial management functions
at dept and agency levels with a CFO.
1992
REINVENTING
STRATEGIC PLANNING
GOVERNMENT.
Called
for
agency
BETWEEN
Hayek attributed the birth of civilization to private property in his book The Fatal
Conceit (1988). He explained that price signals are the only means of enabling each
economic decision maker to communicate tacit knowledge or dispersed knowledge to
each other, in order to solve the economic calculation problem.
Investment and choice
Perhaps more fully than any other economist, Hayek investigated the choice theory of
investment involving the inter-relations between non-permanent production goods and
"latent" or potentially economic permanent resources, building on the choice
theoretical insight that, "processes that take more time will evidently not be adopted
unless they yield a greater return than those that take less time." Hayek's work on the
microeconomics of the choice theoretics of investment, non-permanent goods,
potential permanent resources, and economically adapted permanent resources mark
a central dividing point between Hayek's work on central planning, trade cycle theory,
the division of knowledge, and entrepreneurial adaptation and that of most all other
economists, most especially that of the macroeconomic "Marshallian" economists in
the tradition of John Maynard Keynes and the microeconomic "Walrasian" economists
in the tradition of Abba Lerner.
The business cycle
Capital, money, and the business cycle are prominent topics in Hayek's early
contributions to economics. Mises had earlier explained monetary and banking theory
in his Theory of Money and Credit (1912), applying the marginal utility principle to the
value of money and then proposing a new theory of industrial fluctuations based on
the concepts of the British Currency School and the ideas of the Swedish economist
Knut Wicksell. Hayek used this body of work as a starting point for his own
interpretation of the business cycle, which defended what later became known as the
"Austrian Theory of the Business Cycle". In his Prices and Production (1931) and The
Pure Theory of Capital (1941), he explained the origin of the business cycle in terms of
central bank credit expansion and its transmission over time in terms of capital
misallocation caused by artificially low interest rates.
Social and political philosophy
282 | P a g e
In the latter half of his career Hayek made a number of contributions to social and
political philosophy, which he based on his views on the limits of human knowledge,
and the idea of spontaneous order in social institutions. He argues in favor of a society
organized around a market order, in which the apparatus of state is employed almost
(though not entirely) exclusively to enforce the legal order (consisting of abstract rules,
and not particular commands) necessary for a market of free individuals to function.
These ideas were informed by a moral philosophy derived from epistemological
concerns regarding the inherent limits of human knowledge.
In his philosophy of science, which has much in common with that of his good friend
Karl Popper, Hayek was highly critical of what he termed scientism: a false
understanding of the methods of science that has been mistakenly forced upon the
social sciences, but that is contrary to the practices of genuine science. Usually
scientism involves combining the philosophers' ancient demand for demonstrative
justification with the associationists' false view that all scientific explanations are
simple two-variable linear relationships. Hayek points out that much of science
involves the explanation of complex multi-variable and non-linear phenomena, and
that the social science of economics and undesigned order compares favorably with
such complex sciences as Darwinian biology. These ideas were developed in The
Counter-Revolution of Science: Studies in the Abuse of Reason, 1952 and in some of
Hayek's later essays in the philosophy of science such as "Degrees of Explanation" and
"The Theory of Complex Phenomena".
283 | P a g e
different
perspective
than
that
applied
to
administrative
service
performance measurement.
(Kelly, J.M., Swindell, D. (2002). A multiple-indicator approach to municipal
service evaluation:
to
measure
service/performance.
expected results
to
actual
results,
For
example,
investigating
superlative method of measuring service quality. Yin (p.8) relates that one particular
method, the randomized field trial, was designed for evaluation research and is
commonly used.
While this method works well for both public and private
organizations, Yin points out that randomized field trials do not work well in a number
of situations.
A related article that is excellent for this and other public administration topics to
describe the differences between public and private organizations is:
Rainey, H.G., Backoff, R. W., Levine, C.H. (1976).
This short
These may be
thought of as internal measures of service quality because they come from a definition
of effectiveness derived and monitors by administrators.
In contrast, external
because it is unclear what criteria the citizens are using to evaluate effectiveness. Also
questionable is how much accurate information citizens have on which to base their
evaluations.
Administrative performance measures are widely accepted as reliable indicators of
service quality though there is considerable variation in the types of measures
employed and how local governments use them. There is not so much consensus on
the utility of citizen satisfaction surveys as a reliable indictor of government
performance, which makes this topic a bit more interesting.
Describe no less than five (5) approaches/definitions/models of strategic
planning and highlight their possible advantages and limitations in general and
when applied to the public sector.
Mintzberg, Henry and Quinn, James Bryan Readings in the Strategy Process
1. The Entrepreneurial Organization---p. 244 (Mintzberg)
*
simple structure
little staff
the leader creates the strategy and can adapt it as he/she deems
necessary
needed
5. The Diversified Organization---p. 335 (Mintzberg)
* the most complex structure
* a set of semi-autonomous units called divisions
* very common in the private sector
* each unit is relatively free form headquarters control
The Model Approach --- the structure is most important
287 | P a g e
Dutton, Jane
Categorization theory---merely labeling an event as an opportunity or a threat
affects
information processing and motivation
Ginter, Robert
Social learning theory---behavior results from interactions of persons and
Situations
Hart, Stuart
Integrative framework---focuses on integrating the 5 roles played by top
managers: command, symbolic, rational, transactive, and generative
The Process Approach---the process is most important
Mintzberg, David----strategic thinking (synthesis, creativity, intuition) is as
important as strategic planning. We need both. Mintzberg notes 3 fallacies of
planning: prediction, detachment, and formalization.
Comps Question from Syracuse University:
Pine Mountain State University
On the basis of your readings and class discussions offer an analysis of the following
case and assess the President's approach for dealing with the unfolding situation.
The administrative staff at Pine Mountain State developed a comprehensive
reorganization plan to combat specific issues of concern to the President of the
288 | P a g e
university. However, it is evident that there was no formal systematic approach to the
analysis or their strategy formulation. In addition, they neglected to include the major
stakeholders in the strategy planning and development process. This may explain why
the legislature, trustees, faculty and students are complaining about severe problems
that did not exist prior to the reorganization.
It can be argued that strategy follows structure in the typical public university
scenario.
Since federal and state funding for public universities comes with
However, we are not told what type of analysis was employed, or if any
and
complaints
from
trustees,
students
and
faculty
concerning
because of the manner in which the reorganization was planned and managed.
289 | P a g e
organization.
redefined specifically to address the external threats and no attempt was made to keep
successful structures in place, then problems will naturally arise as a result of poor
planning.
processes may explain some of the service complaints reported by students and
faculty. New and unexpected reporting relationships can also cause stress and reduce
the positive effects of a reorganization plan.
Stakeholders
The main criticism of the Presidents approach for dealing with the unfolding situation
is that he did not include the major stakeholders in the reorganization planning
process.
It is evident that the top administration was only thinking of themselves and the
problems that they face on a day-to-day basis, rather than adopting a university-wide
vision for the reorganization.
The legislature and trustees would have informed the administration that there is too
much spending in the administrative category, and that the proposed structure is not
appropriate and not in line with the structures of other similar institutions.
The
faculty would have lobbied to reduce the levels of administration, thus ensuring that
access to the President and administration is not too problematic.
Students and
faculty would have argued against the administrations plans to cut funding for new
professors and parking in favor of enhancing the funding at the top administrative
levels.
Organizational Development Committee
The committee was established to monitor and receive feedback on the implementation
of the new structure. The committee was formed at the time of reorganization but has
only met three times in the past 18 months. It appears that this committee was the
window dressing for the reorganization effort. It sounds like an effective piece of the
290 | P a g e
new structure, but will have no effect unless the committee is run with a standard set
of rules and expectations.
reworking of the organizations vision and mission statements. This drives the rest of
the process, as structure and strategy tie directly into the mission of the organization.
In the case of Pine Mountain State, the mission being pursued is simply that of the top
administration, neglecting the mission of the overall university and the other parts of
the organization.
Finance, Accounting and Technology
Since the reorganization was aimed at addressing the problems of declining
allocations, improving financial responsibility and accountability, and improving
internal operations of the university, the administration should have started by
instituting a new accounting/budgeting system. Since the state in which Pine
Mountain State resides is also being affected severely by an on-going national
recession, this is another reason for instituting a new university-wide accounting and
budgeting system. The President should be focusing on running the organization in a
more lean manner than that evidenced by the latest university organization chart,
which is heavy in the administrative layers (Pine Mountain State spends for
administration twice the amount spent by the other major state university and four
times the amount spent by a teachers college).
accounting system is strengthened by the fact that the reorganization plan established
several new units and redefined the roles of most other units. With the adoption of a
new accounting/budgeting system, people can more easily manage the transitions to
new budgeting and reporting relationships.
restructuring and reform efforts more bearable for all by buffering the disruptive
effects with the positives associated with improved information resources.
291 | P a g e
Conclusion
Pine Mountain State University used no formal systematic approach to analyze their
organizations current problems or their strategy formulation.
The administration
neglected to include the major stakeholders in the strategy planning and development
process.
accompany the reorganization effort, and with the backdrop of severe financial
pressures, the administration should have started the reorganization process by
instituting a new accounting/budgeting system.
292 | P a g e
Chapter 3
Organization Theory
294 | P a g e
Network analysislooks at the complex web of relationships of how the org interacts
with other orgs and with its environment
The org and its environment are totally separate - there are boundaries
The general environment - social, cultural, legal, political, economic, technological and
physical components
The international and global environments also impact the org
Buffering-protecting the internal operations of an org from interruption by
environmental shocks such as material, labor and capital shortages
Environmental scanning is done to protect against these threats Jeffrey Pfeffer and
Gerald Salancik-Resource Dependent Theory
An org is vulnerable because of its need for resources (raw material, labor, capital,
equipment) from its environment --so the org is controlled by its environment
So we analyze the org by starting with the resources it needs and tracing them to their
source-also look at the orgs competitors for the same resources
Michael Hannan, John Freeman, Howard Aldrich - Population Ecology Theory
Orgs are dependent on the environment for resources but this theory focuses on
patterns of success and failure among all orgs - not just one- it is survival of the fittest
variation-changes in orgs
retention-some survival
295 | P a g e
Select an alternative
Implement
Monitor
Evaluate
complex problem
time pressure
conflicting preferences
296 | P a g e
3.
Strategy process
Official-may be vague
Operative-more specific
Karl Weick-enactment theory-when you use concepts (i.e., organizations) you create
the thing youre seeking to study-he is not pragmatic- he is an interpretivist
Conditions in the environment cant be separated from the perception of those
conditions
4. Postmodern (1990s-)
and threats to self identity are caused by tying to play so many roles with
little separation between them
the future will see smaller, more decentralized and informal orgs causing us to
297 | P a g e
Philosophy includes (see Burrell and Morgan, Sociological Paradigms and Org Analysis
1979) epistemology (p.47)-how we know the world-the process by which we obtain
knowledge
298 | P a g e
Classical
Org.
Neoclassical
"Modern"
Systems
Power &
Politics
Org. Culture
Postmo
dernis
m
Human
Relations
Time frame
Thru 1930s
1930s-1950s
1950s on
Late 1960s
196080s
1980s
on
1920s-?
Paradigm
Positivist
Pos/post-pos
Positivist
Positivist
PostModern
&
Conflict
Interpretavist
PostModern
Interpretavist
Ontology
Rational
Structural
Rational
Structural
Rational
Structural
Rational
Critical
Realist
Relativist
Critical
Realist
Relativist
Epistemology
Objective
Objective
Objective
Modified
Objectivist
Objective
Subjective
Subjecti
ve
Subjective
Methodology
Experimental
/
Manipulative
Modified/
Experimental
Experimental/
Manipulative
Experimental
Dialogic
/ Elitist
Defined
Dialogic /
Elitist
Defined
Dialogic
/
Transfo
rmative
Hermeneutic /
dialectic
System Type
Closed
Semi-open
Closed
Open
Open
Open
Open
Open
Authors
Smith, Fayol,
Taylor,
Weber, G&U
March,
Selznick,
Barnard,
Simon
Blau, Scott,
Jaques
Katz, Kahn,
Burtalanffy
Kotter,
Pfeffer
Peters,
Corbelly,
Waterman,
Sathe,
Morgan
Weick,
Berquis
t,
McWhin
ney,
Prigogin
e,
Stenger
s
Boleman, Deal,
Ott, Follett
Notes
simplistic
Transition,
reactionary
Return to
Classical
Drew from
Neoclass.
power
TQM
Techni
cal
revoluti
on
Janis, Follett,
Hawthorne,
Theory X/Y
Adam Smith, Henri Fayol, Daniel McCallum, FW Taylor, Max Weber, G&U
Organizations should work like machines, using people and capital as their
parts
299 | P a g e
Often viewed as narrow and simplistic; however, laid a foundation for all future
scholars
Barnard: individuals are what hold the organization together; thus, they must
be educed to cooperate for success to be achieved (persuasion principle)
300 | P a g e
Peter Blau and Richard Scott: all orgs consist of a formal and an informal
element and it is impossible to understand an org. without knowing each
element
Systems Theory
John Kotter: differentiate between power resulting from authority and power
resulting from being able to get job done
301 | P a g e
Jeffrey Pfeffer: power and politics are fundamental concepts in defining an org
Organizational Culture
People will distort the perceptions of symbols according to the need for
what is symbolized
TQM and "Reinventing Government" further thrust this movement onto front
pages in the 1980s and 90s
Postmodernism
Technology and information networks have led to uncertainty and chaos is this
postmodern era
Karl Weick
302 | P a g e
Centralize or decentralize
People are considered to be as important, or more so, than the org itself
Bolman & Deal (1997): organizations exist to serve humans (not the other way
around)
303 | P a g e
Dates
Barnard,
Chester
Writings
Theories
Approach
1938
Classical/Classical
Management
stream
Boulding,
Kenneth
1950s
Modern
Burrell &
Morgan,
Gareth
1979
Postmodern
Sociological
Paradigms
and Org
Analysis
304 | P a g e
observation is
required.
Subjectivists-antipositivists and
idealists-all knowledge
is filtered through the
observer. A third
position-the process is
greatly influenced by
cognitive, social and
cultural forceslanguage is very
important. Ontologywhat can be known
(the kinds of things
that exist).
Cohen,
March, &
Olsen
Garbage-can model
and organized
anarchies: decision
making process is
random with problems,
participants, and
solutions independent.
Dahl
Daneke
On
Paradigmatic
Process
Modern
Dialectical process
causes paradigm
formation; based on
experience and
observation.
305 | P a g e
Darwin,
Charles de
Tocqueville,
Alexis
Natural selection,
survival of the fittest,
evolution
Denhardt,
Robert B.
1981
Durkheim,
Emile
18581917
In the
Shadow of
Organization
New PA - how
government and orgs
have failed us. Says
ethics and moral
behavior get lost in
technical efficiency.
To improve hierarchy,
leaders must focus on
development of
individual and less on
power of the
organization. Praxis critical choices leading
to enlightened action.
A successful org is a
learning org (selfactualization).
Problem with
bureaucracy is that
preoccupation with
rationality and
efficiency eliminates
moral concerns; org
control inhibits choice.
Sociologist - explained
structural shifts from
agricultural to
industrial orgs.
Informal orgs focus on
workers' social needs.
Economic dev through
div of labor threatens
social solidarity-diff v.
Classical/Sociologic
al stream
306 | P a g e
integ (paradox).
Etzioni
Fayol, Henri
Frederickso
n, George
1919
Classical/Classical
Management
stream
The PA
Theory
Primer
307 | P a g e
Gagliardi
Galbraith,
Jay
Giddens,
Anthony
Gouldner
Increased complexity
in communication
leads to structural
complexity (increased
coordination).
1977
"Constitution
of Society"
1954
Objectivistinstitutional
perspective.
Structuration theory -interactions create
structure. Dualitystructure influences
actions and is made
up of actions.
Dialectic of controlsubordinates
willingness to be
managed allows
superordinates to be in
control (remember
structuration).
Conflict models managers and
employees see rules
308 | P a g e
differently.
Habermas,
Jurgen
1920s
Pre-postmodernist.
Sees 2 modes of social
action:
symbolic/communicati
ve (focus on
interaction between
individual norms and
values) and
purposive/rational
(focus on instrumental
action, technical rules
and efficiency).
Idealistic - clear
communication allows
possibility of escaping
bonds of domination.
Hannan,
Micheal;
Freeman,
John; &
Aldrich,
Howard
1950s
?
Population Ecology:
Orgs are dependent on
the environment for
resources but this
theory focuses on
patterns of success
and failure among all
orgs-not just one-it is
survival of the fittest.
Variation-changes in
orgs; selection-orgs
choose certain
characteristics;
retention-some
survival.
Hatch, Mary
Jo
1997
Organization
Theory:
Modern,
Symbolic,
and
Modern
Symbolicinterprevist/postpositivist. Believes in
multiple frames of
reference - views
309 | P a g e
Postmodern
Perspectives
Heffron,
Florence
1989
Organization
Theory and
Public
Organization
s: The
Political
Connection
Jaffee,
David
2001
Organization
Theory:
Tension and
Change
Kuhn
environment as social
construction.
1967
The
Structure of
Scientific
Revolutions
Normal science,
scientific revolutions.
He put the term
paradigm into
academia. Scientists
make observations and
collect data from
everyday life. But at
some point anomalies
310 | P a g e
1967
Contingency theory:
Rational and natural
systems refer to
different org types.
Rational orgs respond
to homogenous, stable
environments. Natural
orgs respond to
diverse, changing
environments. There
is no one best org
form. The
environment
determines which orgs
survive and thrive.
The environment was
more stable in the past
so rational systems
arose first. The open
system is the most
311 | P a g e
comprehensive model.
Orgs will adapt their
structures to adapt to
environmental
challenges.
Lewin, Kurt
1947
Lincoln &
Guba
Model of planned
organizational change
(modernist).
Individuals change by
unfreezing (disturbing
equilibrium), moving
(introduction of
change), refreezing
(integrate change into
culture and behavior).
Natural paradigm qualitative research
Marx, Karl
1818
Mayo
1945
Classical/Sociologic
al stream
312 | P a g e
Meron,
Robert
Meyer &
Rowan
Manifest functions
(official purposes of the
org); latent functions
(unintended); EX-ed
insts are to ed
(manifest function) but
they prepare people to
live in hierarchies
(latent function).
Structural
fundamentalism.
1977
Institutional
theory/rationalized
myths.
Morgan,
Gareth
Metaphors of orgs:
machine, organism,
brain, cultural systems
(view of reality-shared
values and beliefs),
political systems,
psychic prisons
(Denhardt),
instruments of
domination
(machine/polit), orgs
as flux and
transformation due to
fundamental tensions
and contradictions.
Ouchi
Breaks control
methods into 3
categories: markets,
bureaucracy, and
clans.
313 | P a g e
Parsons,
Talcott
190279
Perrow,
Charles
Pfeffer,
Jeffrey
Resource
Dependence
by Pfeffer
and Gerald
Salancik
1978
"Power in
Organization
s"
Resource Dependence
Theory: An org is
vulnerable because of
its need for resources
(raw material, labor,
capital, equipment)
from its environment -so the org is controlled
by its environment. So
we analyze the org by
starting with the
resources it needs and
tracing them to their
source-also look at the
orgs competitors for
the same resources.
Org politics is using
power to obtain
Modern
314 | P a g e
preferred outcomes
when there is
uncertainty or
dissensus.
Postmodern view.
Schein
Scott,
Richard W.
Beliefs and
assumptions form core
of org culture. Theory
of culture as
assumptions, values,
artifacts. Primary
strategy is to protect
org identity.
2003
1995
Organization
s: Rational,
Natural, and
Open
Systems
Institutions
and
Organization
s
Discusses values of
organization from a
sociological viewpoint.
Grandfather of
institutional theory.
Sees orga as
collectivities, social
systems with needs,
formal and informal
structures. Identifies
org pathologies from
power and misuse.
Layered model - closed
rational systems,
closed natural models,
open natural systems,
open natural models.
Institutionalization process by which
social reality
constructed.
Cultural/Cognitive
structure -- beliefs and
understandings shared
by participants about
Postmodern
315 | P a g e
1949
Institutional
Theory
Focuses on
distinctiveness of orgs.
Environment is hostile
threat to stability of
orgs. Institutional
School - precursor to
org theory. Focuses
on control of an org by
creating a "committed
polity" - orgs have life
of own with rational
and non-rational
dimensions. Org
activities become
infused with value
beyond technical
requirements at hand
(institutionalization).
Orgs adapt to the
values of external
society-i.e, when
actions are repeated
and given similar
meanings by self and
others (Richard Scott).
This is
institutionalization-
Modern
316 | P a g e
can lead to
rationalized myths.
Senge, Peter
Shaffritz &
Hyde
Simon,
Herbert
Classics of
PA
1945
Decision
Making
Theory of
administrative
behavior
(descriptive/socialpsychological level).
Modernist. Cynical of
Classical. He calls for
empiricism and facts.
Individuals need orgs
to be rational -specific goals support
rational behavior.
Bounded rationality
(March and Simon
1958). Positivist.
Shifted focus from
action to analysis believes choice
determines
subsequent action.
Choice limited based
on management
(differs from natural
systems theorists).
Looks at formalization
Modern
317 | P a g e
1776
Taylor,
Frederick
1911
Wealth of
Nations
Division of labor,
invisible hand. Father
of capitalism.
Industrialism.
Classical/
Industrialism
Father of scientific
management pragmatic/sociological
-psychological level.
Time and motion
studies/get more work
out of
workers/efficiency.
Bottom-up
rationalization. He
attacked soldiering
(workers limiting their
output on purpose).
One best way
promoted
rationalization in orgs.
Classical/Classical
Management
stream
318 | P a g e
Thompson
von
Bertlanfy,
Ludwig
1956
Founded General
Systems Theory
movement.
Weber, Max
1900s
(18641920)
Behaviorist. Theory of
bureaucracy
(structural and
descriptive level).
Rationalization impartial and efficient
decision-makers.
Believes bureaucracy
most efficient
organization (hierarchy
of authority) as it is a
way to rationalize the
social environment.
Iron cage of social
domination - humans
dominated by rational
bureaucracy. Formal
Classical/Sociologic
al stream
319 | P a g e
rationality (means or
techniques) and
substantive rationality
(ends or goals).
Formal rationality
without substantive
rationality leads to an
iron cage, making man
a cog in a machine.
Weick, Karl
1969
Enactment theory
(when you use
concepts {i.e.,
organizations} you
create the thing youre
seeking to
study)/systems
theory/social
construction. Humans
organize to help reduce
information
uncertainty faced in
lives. Conditions in the
environment cant be
separated from the
perception of those
conditions. Cognitive
processes help orgs
evolve but organized
patterns of action may
occur w/o increasing
productivity.
Symbolic/interpreti
ve
320 | P a g e
Sun Tsus The Art of War recognizes the need for hierarchical
360 BC
Aristotle, in The Politics, states that executive power in orgs must reflect
321 | P a g e
relations movement.
1937 Luther Gulicks Notes on the Theory of Organization draws attention to the
functional elements of the work of an executive with his mnemonic device POSDCORB.
1938 Chester Barnards The Functions of the Executive, a sociological analysis,
encourages the postwar revolution in thinking about org behavior.
1940 Robert K. Mertons article Bureaucratic Structure and Personality proclaims
that Max Webers ideal-type bureaucracy has inhibiting dysfunctions that lead to
inefficiency and worse.
1943 Abraham Maslows needs hierarchy appears in a Psychological Review article
A Theory of Human Motivation.
1946 Herbert Simons PAR article The Proverbs of Administration attacks the
principles approach to management for being Inconsistent and often inapplicable.
1947 Herbert Simons Administrative Behavior urges the use of a truly scientific
method in the study of administrative phenomena. Decision making is the true heart
of administration.
1948 Dwight Waldo publishes The Administrative State, which attacks the gospel
of efficiency that dominated administrative thinking before WWII.
Norbert Weiner coins the term cybernetics which becomes a foundation for the
systems theories of organization.
322 | P a g e
1949 Philip Selznick in TVA and the Grass Roots, discovers cooptation in which
outside elements (community orgs) are subsumed into the policy- Making process in
order to prevent those elements from becoming threats.
Rufus E. Miles Jr. of the U.S. Bureau of the Budget states Miles Law: Where you
stand depends on where you sit.
Air Force captain Edsel Murphy states Murphys Law: If anything can go Wrong,
it will.
1950 George C. Homans publishes The Human Group the first major application of
systems to organizational analysis.
1954 Peter Druckers book The Practice of Management popularizes the concept of
management by objectives.
1956 William H. Whyte Jr. publishes The Organization Man details a man in an
organization who accepts its values and finds harmony in conforming to its policies.
Talcott Parsons, in Admin Science Quarterly article Suggestions for a sociological
Approach to the Theory of Organizations defines an org as a social system that
focuses on attainment of specific subgoals and in turn contributes to the
accomplishment of goals of the larger org & society.
1957 Northcote Parkinson discovers his law that work expands so as to fill the time
available for its completion.
Douglas McGregors article The Human Side of Enterprise. Theory X and Theory
Y, and applies the concept of self-fulfilling prophecies to organizational behavior.
The History of Organization Theory Schools and how the field has developed.
Classical Org Theory:
Classical Theme: Theorists of the classical period thought that organizations should be
based on universally applicable scientific principles.
500 BC
Sun Tsus The Art of War recognizes the need for hierarchical
323 | P a g e
400 BC
360 BC
Aristotle, in The Politics, states that executive power in orgs must reflect
324 | P a g e
1924 The Hawthorne Studies begin lead to new thinking about the relationships
among the work environment, human motivation, and productivity.
1926 Mary Parker Follett anticipates movement toward more participatory
management styles. She calls for power with as opposed to power over.
1933 Elton Mayos The Human Problems of an Industrial Civilization is the first
major report on the
relations movement.
1937 Luther Gulicks Notes on the Theory of Organization draws attention to the
functional elements of the work of an executive with his mnemonic device POSDCORB.
Neo-Classical Org Theory:
because it initiated the theoretical movement away from the overly simplistic
mechanistic views of the classical school. Also it is important because neoclassicalists
initiated theories that became the foundations of most of the schools that followed.
1938 Chester Barnards The Functions of the Executive, a sociological analysis,
encourages the postwar revolution in thinking about org behavior Individuals must
be induced to cooperate. Persuasion.
1940 Robert K. Mertons article Bureaucratic Structure and Personality proclaims
that Max Webers ideal-type bureaucracy has inhibiting cysfunctions that lead to
inefficiency and worse.
1943 Abraham Maslows needs hierarchy appears in a Psychological review article
A Theory of Human Motivation.
1946 Herbert Simons PAR article The Proverbs of Administration attacks the
classical approach to the general principles of management of Fayol and Gulick for
being inconsistent and often inapplicable to many admin situations mgrs face.
325 | P a g e
1947 Herbert Simons Administrative Behavior urges the use of a truly scientific
method in the study of administrative phenomena. Decision making should be the
focus of a new administrative science. Org theory is in fact a theory of Bounded
Rationality of humans who Satisfice because they dont have the intellectual
capacity to maximize.
1948 Dwight Waldo publishes The Administrative State, which attacks the gospel of
efficiency that dominated administrative thinking before WWII.
Norbert Weiner coins the term cybernetics which becomes a foundation for the
systems theories of organization.
1949 Philip Selznick in TVA and the Grass Roots, discovers cooptation in which
outside elements (community orgs) are subsumed into the policy- Making process in
order to prevent those elements from becoming threats. In contrast to classical
theorists, Selznick argues that orgs consist not only of a number of positions for
management to control, but of individuals, whose goals may not coincide with those of
the organization.
Rufus E. Miles Jr. of the U.S. Bureau of the Budget states Miles Law: Where you
stand depends on where you sit.
Air Force captain Edsel Murphy states Murphys Law: If anything can go wrong, it
will.
1950 George C. Homans publishes The Human Group the first major application of
systems to organizational analysis.
1954 Peter Druckers book The Practice of Management popularizes the concept
of management by objectives.
1956 William H. Whyte Jr. publishes The Organization Man details a man in an
organization who accepts its values and finds harmony in conforming to its policies.
Talcott Parsons, in Admin Science Quarterly article Suggestions for a sociological
Approach to the Theory of Organizations defines an org as a social system that focuses
on attainment of specific subgoals and in turn contributes to the accomplishment of
goals of the larger org & society.
326 | P a g e
1957 Northcote Parkinson discovers his law that work expands so as to fill the time
available for its completion.
Douglas McGregors article The Human Side of Enterprise. Theory X and Theory Y,
and applies the concept of self-fulfilling prophecies to organizational behavior.
Philip Selznick, in Leadership in Administration, argues that the function of an
institutional leader is to help shape the environment in which the institution operates
and to define new institutional directions through recruitment, training and
bargaining.
1958 March and Simon, in Organizations, classify the behavioral revolution in
organization theory.
1959 Charles Lindbloms The Science of Muddling Through, rejects the rational
model of decision making in favor of incrementalism.
Cyert and March, in A Behavioral Theory of Organizational objectives, argue that
power and politics influence the formation of
organizational
goals.
Article
is
impossible to understand
the true structure of a formal org without understanding its parallel informal
organization.
1963 Cyert and James March analyzed the impact of power and politics on the
establishment of organizational goals, and discusses the formation of coalitions and
negotiations to impose coalitions demands on the org. In A Behavioral Theory of the
Firm, they argue that corporations tend to Satisfice rather than engage in
economically rational profit-maximizing behavior.
327 | P a g e
1965 Robert L. Kahns Organizational Stress is the first major study of the mental
health consequences of organizational role conflict and ambiguity.
1966 Katz and Kahn seek to unify the findings of behavioral science on
organizational behavior through open Systems Theory in The Social Psychology of
Organizations.
James G. March, in The Power of Power, explores definitions, concepts and
approaches for empirically studying social power in orgs and communities.
328 | P a g e
329 | P a g e
What is best way to design and manage organizations so they achieve their
declared goals effectively and efficiently?
Tenets
There is one best way to organize for production, and that way can be found
through systematic, scientific inquiry
Increase output w/fastest, most efficient & least fatiguing production methods
330 | P a g e
Focused on management
Not a separate body of work, could not permanently stand on its own
Known for:
o
decision-making processes.
331 | P a g e
RICHARD CYERT & JAMES MARCH (1959) Behavioral Theory of Org. Objectives
332 | P a g e
People are as important as, or more important than, the organization itself
Major themes:
Called Cow sociology: just as satisfied cows are to give more milk, satisfied
workers are to be more productive
Tenets
Organizations and people need each other - organizations need ideas, energy,
and talent; People need careers, salaries, and work opportunities
When fit between individual and organization is poor, one or both will suffer:
individuals will be exploited, or will seek to exploit the organization, or both
A good fit between individual and organization benefits both: humans find
meaningful/satisfying work; and orgs get human talent & energy they need
333 | P a g e
This work laid foundation for assumptions that displaced classical theory
Hierarchy of Needs:
o
334 | P a g e
The desperate drive for consensus at any cost that suppresses any dissent
and
horizontal
differentiations
(between
org.
units:
ie,
Highly important is legitimate authority (that flows down through the org.
hierarchy)
Classical founders were structuralists (Fayol, Taylor, Weber) 1st half of 20th
century and gave this school its roots. But the modern theories influenced by
and greatly benefited from advancements in organization theory in 2nd half of
20th century.
TOM BURNS & G.M. STALKER (1961) Mechanistic [vs] Organic Systems
Socio-technical Theory
335 | P a g e
PETER BLAU & RICHARD SCOTT (1962) Formal [vs Informal] Organization
Employee grouping
o
336 | P a g e
Minimize agency & transaction costs and maximize profit & productivity
3 Core Theories
Agency Theory
Consumers of outputs
337 | P a g e
MICHAEL
JENSEN &
WILLIAM
MECKLING
(1976) Theory of
the Firm:
Rejects
classical
school,
structural
school,
economics
school,
All of which continuously compete with each other for scarce resources
Conflict is inevitable
Power, politics and influence are essential and permanent facts of org. life
338 | P a g e
Sources of power:
o
Legitimate authority
Personal credibility.
People who want power try to reign in as much as possible (to point of
oligarchy)
Orgs divided into minority of directors and majority of directed (leaders & the
led)
JOHN FRENCH & BERTRAM RAVEN (1959) The Bases of Social Power
339 | P a g e
Legitimate power
Coercive power
Reward power
Power is derived from these five different bases of attraction (the recipients
sentiment toward the agent who uses power) and resistance to the use of power;
i.e., coercive power generally decreases attraction and causes high resistance;
while reward power increases attraction and creates minimal resistance.
which
extends
to
boundaryless
organizations,
virtual
Takes three basic approaches to the study of power: experimental studies, community studies, and institutional studies
Executive & managerial power is a necessary ingredient for moving toward goals
First-line supervisors
Staff professionals
Top executives
340 | P a g e
Players
are
influencers
who
attempt
to
control
organizational
decisions/actions
Influencers come from external coalitions and internal coalitions. [Scott &
Davis book, figure 33.1 pg 339 The Cast of Players is the shape of a box
guitar].
Assumes that many org. behaviors and decisions are predetermined by the
patterns of basic assumptions held by members of the organization (it worked
in the past)
Culture is the unseen and unobservable force that is always behind org.
activities (that can be seen and observed)
341 | P a g e
Social energy moves people to act and provides meaning, direction, and
mobilization
Some organizations have strong and unified cultures whereas others are weaker
and less pervasive; and there are even cultures within cultures (sub-cultures).
SCOTT COOK & DVORA YANOW (1993) Culture and Organizational Learning
An organization has the capacity to learn how to do what it does, where what it
learns is possessed not by individual members, but by the aggregate itself.
Different reform movements presented here all share a common theme: lasting
organizational reform requires changes in organizational culture.
With cultures of
342 | P a g e
Now were forced to compete in global markets against worthy competitors who
were not all bound by same rules. Leveling the playing field, of worldwide
marketplace
All of these reform movements trace back to 1950 when Deming (and later
Juran) influenced Japanese executives to adopt his methods of statistical
control; by 1975 Japan was world leader in quality and productivity
After 1980 TV show If Japan can, why cant we? quality movement exploded in
U.S
Reforms include:
The Search For Excellence (book: In Search of Excellence) Peters & Waterman
Z-orgs more like clans than markets or bureaucracies, they foster close
interchange between work and social life
343 | P a g e
For orgs to learn to change, managers must detect seven learning disabilities
and how to use five disciplines to overcome them
The 5th discipline is integrative: fuses others into a coherent body of theory &
practice
Shift
from
internal
to
external
dynamics
of
competition,
interaction
interdependency
Orgs:
systems
of
interdependent
activities
embedded
in/dependent
on
environment
From ENV orgs get material, financial & human resources, social support,
legitimacy
General:
344 | P a g e
Systems
theory
also
known
as
management
science. Has
two
major
components:
o
Use
quantitative
tools
and
techniques
to
understand
complex
Search for order among complex variables has led to extensive use of
quantitative methods and models (i.e., computer analysis and operations
research)
DANIEL KATZ & ROBERT KAHN (1966) Organizations and the System Concept
Were the first to articulate the concept of organizations in Open Systems Theory
Satisficing:
satisfactory
accomplishment
rather
than
maximizing
efficiency
345 | P a g e
Emphasize
cultural
constructed
and
[mythical]
institutional
environmental
practices/norms
provide
influences;
socially
frame-work
for
JEFFREY
PFEFFER
&
GERALD
SALANCIK
(1978)
External
Control
of
346 | P a g e
347 | P a g e
with the
(e.g.
chemicals
industry).
Woodward
pointed out
that
successful
348 | P a g e
This
349 | P a g e
resolved well by appointing skilled personnel or project teams. This seminal work of
Lawrence and Lorsch refined the contingency theory by demonstrating that different
markets and technological environments require different kinds of organizations, and
that subunits or functional departments within an organization might be managed in
different ways, due to variations resulting from their sub-environments.
In addition, Thompson (1967) forged the foundation of the theory by integrating and
expanding the previous studies. He categorized the two modalities considered by
previous works as closed system, which sought uncertainty by only considering few
variables controllable and correlated with goal attainment, and open system, which
included uncertainty by acknowledging the interdependency of the organizations to
their environments to survive. Using Parson's (1960) three distinct levels of
organizational responsibility and control (technical, managerial, and institutional), he
integrated the two systems to develop what he considered a newer tradition. He
believed that a technical function should operate under certainty to achieve the
desired outcomes by reducing the number of variables operating on it. The
institutional level, on the other hand, dealt largely with environmental elements
uncontrollable by the organizations. It was best served by open management to
acknowledge the influence of environmental factors and to face up to the inevitable
resultant uncertainty. Thompson suggested that the managerial level should mediate
these two extreme levels by resolving some irregularities coming from external
environments, and pushing the technical core for modifications as environments
changed. In his newer tradition, therefore, Thompson conceived of complex
organizations as open systems faced with uncertainty that were, at the same time,
subject to a rational criterion for certain needs. As did Lawrence and Lorsch (1967), he
considered technology and environment as the major sources of uncertainty. He
further argued that differences in those dimensions resulted in different structures,
strategies, and decision processes.
Based on the above study and some others, Kast and Rosenzweig (1973) defined the
contingency theory as a mid range theory between two extreme views, which state, on
the one hand, that universal principles of organization and management exist or, on
the other, that each organization is unique and each situation must be analyzed
separately. The theory views an organization as a system composed of sub-systems
350 | P a g e
351 | P a g e
stability-instability,
concentration-dispersion,
domain
the
opportunities due to economic and legal barriers. Second, individual organizations did
not have enough power to influence the environment. Third, the distortions of the
decision-makers perceptions of the environment limited the possible range of truly
strategic choices. These limitations severely constrained the decision-makers ability to
change either their environmental niches or their organizational forms.
Finally, he concluded that the natural selection model was a general one, which may
be applied to any situation where the three stages are present. When the three
conditions were met, an evolution of better fit to the selective system became
inevitable. He emphasized that a better fit did not mean that there is only one fit.
Selection was a matter of relative superiority over other forms.
Unlike Aldrich (1979) who analyzed the concept of fit at the macro/industry level and
downplayed the managers role in choosing strategies to attain organizational fit,
Chakravarthy (1982) explored the concept at the micro level and believes that the
352 | P a g e
353 | P a g e
concerned benefit from the availability of choice. Large companies in highly regulated
industries and multi-product or multi-divisional companies with little market and
technological relatedness were typical examples of organizations in the second
quadrant. In direct contrast to the first, the third quadrant represented conditions
with high strategic choice and low environmental determinism. Like the school of
strategic choice, organizations working under these conditions could deliberately
define and enact policies and strategies, and otherwise influence their particular
environmental domain.
The lack of environmental constraints made it easier for them to introduce innovations
and engage in proactive behavior. Finally, the fourth quadrant stood for a low level in
both strategic choice and environmental determinism. These conditions indicated that
the organizations couldnt capitalize on even a benign and munificent environment,
due to lack of innovation, proactive behavior, internal capabilities, or inappropriate
competencies.
Hrebiniak and Joyce (1985) emphasized that the process of adaptation is dynamic.
The position of an organization might shift as a result of strategic choices or external
environmental changes. By organizational control over scarce resources, managers
were still able to exercise their strategic choices, although the nature and impact of
the actions would vary according to organization-environment context. This view
supported the concept of fit proposed by Miles and Snow (1984): a concept based on
the actual process of fit. Miles and Snow (1984) defined fit as a process or a state - a
dynamic search that sought to align the organization with its environment and to
arrange resources internally to support that alignment. They considered the basic
alignment as strategy and termed the internal arrangement as organizational
structure and management process. Their framework consisted of four main
possibilities, which include minimal, tight, early, and fragile fits.
Based on a previous study of Snow and Hrebiniak, (1980), they concluded that
organizations operating in a competitive environment called for minimal fit to survive.
They found only organizations classified as Defenders, Prospectors, and Analyzers
operated their strategy effectively, since they met the requirement of minimal fit, while
organizations grouped as Reactors were generally ineffective, because their strategies
were
poorly
articulated, unsuitable
to the
354 | P a g e
could
provide
organizations
with
competitive
advantages
over
355 | P a g e
356 | P a g e
overcome the above handicap Venkatraman (1989) proposed six different concepts of
fit. By reviewing research on strategic fit, he developed concepts of fit- based
relationships in terms of the degree of specificity of functional form and the choice of
anchoring specification. These included fit as moderation, mediation, matching,
covariation, profile deviation, and as gestalt. The concepts not only described the
relationship between two variables, but also portrayed the relationships among
multiple variables. For example, fit as moderation or mediation considered only two
variables, while fit as covariation, profile deviation and gestalt involved multiple
variables. In addition, Venkatraman also offered possible analytical tools for each
concept, to provide a link between the concepts and theory testing. Finally, he
encouraged the use of multiple concepts of fit to gain more useful and powerful
operationalization, data collection and analysis, and interpretation of the results.
Perspective on Strategy Research
Since the main tasks of managers are to develop and utilize a strategy that aligns the
organizations capabilities with the opportunities and constraints present in its
environment, and to arrange resources internally to support the alignment (Miles and
Snow, 1984, 1994), the concept of fit becomes a central thrust in strategy research.
However, apart from diverse conceptualizations of fit as mentioned in the previous
section, the strategy research based on their focus can be classified into two distinct
school of thoughts: strategy content and strategy process (Jemison, 1981; Rajagopalan
and Spreitzer, 1997).
Strategy Content School
Research in strategy content specifically concentrates on what was decided (the
content of the strategy) and focuses on the relationship between strategy and
performance under different conditions/environments. In other words, strategy
content studies place more emphasis on investigation of the external business
environment as opposed to the internal one. Industrial organization studies
contributed to the existence of this school of thought. Based on the Bain/Mason
paradigm (StructureConductPerformance), they investigated and promote how
industries in which the organizations operate influence their strategic choices (Porter,
1981). For example, Hambrick (1983) focused on the influence of industry
357 | P a g e
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Subject/Researc
h
Method
Variables
studied
Analytical
Tools
Key Findings
Grinyer,
YasaiArdekani,
& AlBazzaz
(1980)
Senior manager of
48 companies in
the UK. Data were
collected through
cross sectional
survey and
structured
interview.
The degree of
diversification
(strategy),
degree of
divisionalizatio
n (structure),
companys size,
technological
change
(environment),
and ROI
(performance).
Correlation
Analysis
Significantly
positive
correlation
between strategy
and structure.
Good match or fit
between strategy
and structure can
reduce the
environmental
pressure.
Environment
correlates
negatively and
significantly with
the performance.
A better fit
between strategy
and structure
promotes more
effective coping
with
359 | P a g e
environmental
turbulence which
in turn leads to
better
performance.
Hambrick
(1983)
Strategy
(differentiation,
cost leadership,
and focus),
performance
(ROI).
Regression,
and Cluster
Analysis
Cost leadership
strategy is found
to be a fit only in
disciplined capital
goods
manufacturers
(DMs) operating
under a stable
environment. The
strategy seems
not to suit
aggressive
manufacturers of
complex capital
goods (Acs), since
their dynamic
environments
limit these
manufacturers
abilities to
maximally utilise
the strategy. In
addition,
differentiation
strategy is not
only suitable for
the ACs but also
for the DMs to
attain high profit.
However, while
the ACs tend to
emphasize
product quality,
affinity with
users,
technological
protection, and
product
innovation to cope
with
environmental
changes, the DMs
focus on product
360 | P a g e
quality and
image.
This study
indicates that
even though
Porters generic
strategies can
promote good
performance, not
all generic
strategies can fit
to a particular
industry. The
study also
indicates that
there are some
variations within
the broad context
of generic
strategy. The
match between
the strategy and
its environment
determines the
performance of
the manufacturer.
Prescott
(1986)
1,638 business
units in the PIMS
data base
8 environment
variables, 4
strategy
variables, and
ROI as
performance
variable.
Cluster
and
discriminan
t analysis,
correlation,
and
regression
analysis
Supporting the
hypothesis,
findings indicate
that environment
modifies the
strength, not the
form, of the
strategy
performance
relationship
Miller
(1987)
161 Senior
Managers on
major US firms,
and 110 Senior
Manager in the
Canadian and
Australian firms.
Questionnaires
were used for
collecting data.
Strategic
variables
(complex
product
innovation,
marketing
differentiation,
breadth, and
conservative
cost control),
structural
Correlation
Analysis
Finds significant
correlation
between strategy
and structure.
Strategy reduces
the uncertainty of
contingencies so
firms tend to use
bureaucratic
uncertainty
reduction,
361 | P a g e
variables
(bureaucratic &
organic in term
of uncertainty
reduction,
differentiation,
and
integration),
and
environmental
variables
(dynamism,
heterogeneity,
and hostility)`
Venktra
m an &
Prescott
(1990)
8
environmental
variables, 17
strategy
variables, and
performance
(ROI)
differentiation, or
integration
devices. However,
they may employ
organic
uncertainty
reduction,
differentiation, or
integration
devices when
their strategies
increase the
uncertainty of
contingencies.
Strategy
significantly
correlates to its
environment:
firms operating in
a dynamic
environment
usually utilize
complex product
innovation,
breadth
innovation, or
marketing
differentiation
strategies, while
firms facing a
more stable
environment tend
to employ
conservative cost
control.
Ordinary
Least
Square,
Cluster,
Regression,
and
Correlation
Analysis
Three steps of
systematic
analysis support
the hypothesis
that the
alignment
between strategies
and their
environments
may significantly
increase
performance.
Replication of the
362 | P a g e
model, using
different data,
provides similar
results, indicating
further support
for the previous
findings.
Naman &
Slevin
(1993)
82 senior
managers of
manufacturing
companies.
Data were
collected
through
mailed
questionnaire
Environmental
turbulence,
entrepreneurial
style,
organization
structure,
mission
strategy, and
performance.
Regression,
Correlation
Analysis,
and
ANOVA
Misfit influences
the performance
negatively and
significantly.
Since the misfit
measures the
sum of the
difference
between desired
and reported
levels of
entrepreneurship,
organizational
structure, and
mission strategy,
the authors
suggest the use of
these variables to
determine the
organization
environment fit.
Dvir,
Segev, &
Shenhar
(1993)
76 managers of
electronic and
computer
companies. Data
Collected through
questionnaires
and
interview
Strategy
(Prospector,
Analyzer, and
Defender),
technological
progress
(monitoring,
and adopting
technological
innovation),
performance
(short, and long
term)
Correlation,
t-test and
MannWhitney test
Monitoring and
adopting
technological
innovations in
Analyzer
companies,
correlate
positively and
significantly to
short term
performance,
while in Defender
companies these
technological
activities are
associated
positively and
significantly with
both short and
363 | P a g e
long term
performance.
Prospector
companies, on the
other hand, can
only gain better
long-term
performance from
their monitoring
and adopting
technological
innovations. The
technological
innovations relate
negatively but not
significantly to
short-term
performance,
indicating that
the companies
invest more
aggressively in the
innovations.
Tan &
Litschert
(1994)
97 managers of
electronic firms in
China.
Questionnaires
were used in
collecting data.
Environment
(complexity,
dynamism, and
hostility),
strategic
orientation
(analysis,
defensiveness,
futurity,
degrees of risk
and
proactivity),
and
performance
Canonical
Correlation,
PearsonCorrelation,
and
Multiple
Regression
Analysis
All environmental
forces
(complexity,
dynamism, and
hostility) influence
the strategic
orientation of
electronic firms.
While they
correlate
negatively with
proactive strategic
orientation, they
associate
positively with
defensive strategic
orientation. The
match of a
strategic
orientation to its
environment
yields better
performance both
in terms of overall
performance and
364 | P a g e
profit.
AdeyemiBello
(2000)
Strategy,
internal
organizational
structure,
degree of
competition,
and ROA.
Correlation,
and
Moderated
Regression
Analysis
The degree of
competition,
dynamic strategy,
and organic
structure
influence the
banks ROA. The
fit between the
degree of
competition,
strategy, and
organizational
structure
influences the
ROA positively
and significantly.
Beal
(2000)
101CEOs of small
firms. Mailed
questionnaires
were used to
collect data
Industry life
cycle
(introduction,
growth,
maturity, and
decline),
strategy (low
cost,
differentiation
in innovation,
marketing,
quality, and in
service),
scanning
frequency,
scanning scope,
and
performance.
Factor
Analysis
and ANOVA
While the
scope of
scanning
influences
the alignment
between strategy
and environment,
the frequency of
scanning does not
indicate any effect
on the alignment.
It seems that
broad scanning
information of
customers and
competitors
facilitates the
strategy
environment
alignment for
firms operating in
both growth and
mature
industries.
Luo &
Park
(2001)
Environment
(complexity,
dynamism, and
hostility),
Factor,
Canonical,
and
Multiple
Environmental
factors of the
Chinese market
affect the strategic
365 | P a g e
strategic
orientation
(Prospector,
Analyzer, and
Defender), and
performance
(ROA, sales
growth, and
competitive
position)
Regression
Analysis.
orientation
of MNC
subsidiaries.
Among the three
strategic
orientations,
Analyzer has the
strongest
relationship with
the environmental
factors. This
indicates that
firms use
Analyzer as a
mechanism to fit
the operations to
their
environments.
Firms with
Analyzer as the
strategic
orientation
achieve better
performance than
did
firms with
Prospector or
Defender.
Conclusion:foreig
n firms should be
innovative and
adaptive but not
too proactive and
risk taking to
operate in the
emerging Chinese
market.
366 | P a g e
successful
implementation of Build strategy, but not for the Harvest one (Gupta and
Govindarajan, 1984). Beal and Yasai-Ardekani (2000) supported this fit between
managers experience and their competitive strategy. They found that innovation
strategy might succeed when managers have greater experience in R & D, while
greater experience in engineering might lead to successful implementation of quality
differentiation strategy.
Accounting experience, on the other hand, became a prerequisite, combining with
other requisite expertise to facilitate execution of hybrid strategies involving low cost
leadership. In addition to functional experience, the personality of managers might
influence their strategic choice (Miller and Toulous, 1986). Flexible managers tended
to use niche strategy to market their products. They were much more reactive, risk
taking and more intuitive in formulating their strategies. They used informal structure
367 | P a g e
performance of
368 | P a g e
Strengthening these findings, Floyd and Wooldridge (1 992a) indicated that the nature
of MMs involvement, especially in championing alternatives, facilitating adaptability,
and implementing deliberate strategy varied with strategy type. MMs in Prospector
firms reported a greater level of championing activity than MMs in Defenders. They
also carried on higher levels of facilitating and implementing activities than MMs in
both Analyzers and Defenders. In general, implementing deliberate strategy was the
highest level of activity and varies with the strategy type. Moreover, boundary
spanning MMs had higher levels of both upward and downward strategic influence
than non-boundary spanning ones, and the different is greater for upward influence.
Organizations gained higher performance levels when their MMs had more uniform
levels of downward influence and more varied levels of upward influence (Floyd and
Wooldridge 1997). However, the motivation of MMs to raise strategic issues with top
management depended on the willingness of top management to listen, the
supportiveness of the organizational culture, the level of competitive and economic
pressures, and the level of organizational change. Fear of negative consequences,
downsizing conditions, uncertainty (about the future in general, about the future of
organization and the like), and conservativeness of organizational culture might cause
the MMs to be reluctant in raising strategic issues (Dutton, Ashford, Oneill, Heyes,
and Wierba 1997).
In conclusion, studies on the strategy process agree that internal structural fit helps
organizations to attain superior performance (Powell, 1992). However most of the
studies concentrate on strategy formulation processes and tend to ignore the
implementation aspects of the strategy. The lack of the implementation research is
due to the complexity of multiple issues involved in the implementation process,
attributed to the rapid changes in the business environment and incompatibility
between he leadership/managers skills and competence, organizational structure, and
systems and processes in the organization. The most common assumption used by
researchers is that strategy implementation will be straightforward (Noble, 1999).
Table 2.2 provides a summary of empirical studies on the strategy process. It should
be noted that the table does not include all the relevant studies, but includes a
representative sample.
369 | P a g e
Subject/Research
Method
Variables
studied
Analytical
Tools
Key Findings
Miller,
Kets De
Vries, &
Toulouse
(1982)
33 Chief
Executives of
Canadian firms.
Data collected
through structured
interviews.
Executives locus
of control
(internal &
external),
strategy
(innovation, risk
taking, proactivity, and
futurity),
structure
(scanning,
technocratisation
, and
differentiation),
and environment
(dynamism and
heterogeneity).
Correlation
Analysis
All hypotheses
strongly
supported. The
internal locus of
control
significantly
correlates to
strategy,
structure, and
environment,
whilst internal
control has
strongest
correlation with
the strategy
making behavior.
Executives
employing
internal control
more innovative,
risk taking,
proactive, and
futuristic than
those using
external control.
Partial correlation
analysis indicates
that relationship
between internal
control and
environment is
mediated by the
strategy. To the
degree that the
strategy variables
are controlled for,
internal control
ceases to have
significant
correlation with
the environment.
Similar analysis
is also performed
370 | P a g e
to investigate the
nature of
relationship
between internal
control and
structure, by
controlling the
influence of the
strategy: results
indicate that
internal control
relates to the
structure
indirectly.
Internal locus of
control may affect
the strategy,
which in turn has
an impact on the
structure and
environment.
Gupta &
Govindar
ajan
(1984)
General Managers
of 58 SBUs. Mail
questionnaires are
used for data
collections.
SBUs strategy
(Build, Hold,
Harvest, and
Divest),
experience in
marketing/sales,
willingness to
take risk,
tolerance of
ambiguity,
effectiveness of
the strategy
implementation.
Multiple
Regression
Greater
experience
in
marketing/sales,
greater
willingness to
take risks, and
greater tolerance
for ambiguity
contribute to the
effectiveness of
strategy
implementation
in the case of
Build strategy
but impede in
Harvest ones.
Findings support
the view of
matching the
managers
characteristics to
either the
strategic mission
or stage of
product life cycle.
371 | P a g e
Frederick
son &
Mitchell
(1984)
109 CEOs of
sawmills and
planning firms.
Structured
interviewed were
used to collect
data
Comprehensiven
ess of strategic
decision
(situation
diagnosis,
alternative
generation,
alternative
evaluation, and
decision
integration),
performance
(AROA, &
% change in
gross sales)
Partial
Correlation
Analysis
A comprehensive
strategic
decision
process
associates
negatively and
significantly with
the
average
return on
assets (AROA).
A similar
association exists
between the
comprehensivene
ss of the strategy
and percentage
change in gross
sales, though this
association is
quite weak. Since
participants of
the study work in
an unstable
environment, the
authors conclude
that the
incremental
model of
decision-making
is more likely, in
a changing and
dynamic
environment, to
result in superior
performance.
Such
environments are
very complex,
unpredictable,
and prevent the
high level of
integration
needed by the
comprehensive
approach. By
employing the
incremental
model, managers
372 | P a g e
can speed
decision- making
and work flexibly
to cope with the
changes.
Frederick
- son
(1984)
Comprehensiven
ess of strategic
decision
(situation
diagnosis,
alternative
generation,
alternative
evaluation, and
decision
integration),
performance
(AROA, &
% change in
gross sales)
Partial
Correlation
Analysis
Situation
diagnosis,
alternative means
of generation and
evaluation,
decision
integration, and
overall
comprehensive
measures
correlate
positively and
significantly with
the average
return on assets,
but not with the
change in sales.
The authors
conclude that
rational model of
decision-making
is characterised
by a
comprehensive
process, which is
more suitable in
a stable
environment,
since the firms
studied operate
in a stable
environment. The
managers must
make selective
decisions to
exploit the limited
opportunities.
Bourgeois
III (1985)
99 CEOs and
members of top
management team.
Interview, mailed
questionnaire were
Environmental
volatility
(commercial and
technological),
perceived
Correlation
Analysis
The divergence
of managers
perception of
environmental
uncertainty from
373 | P a g e
Miller &
Toulouse
(1986)
used to collect
data.
environmental
uncertainty,
strategic goals,
and economic
performance.
97 CEOs of firms
in Quebec.
Interviews were
used to collect
data.
CEO personality
(flexibility, need
for achievement,
and locus of
control), strategy
(innovation,
marketing
differentiation,
and focus),
strategy making
(future/planning,
analysis,
proactiveness,
Flexible CEOs
tend to use niche
strategy to
market their
products. They
are much more
reactive, risk
taking and more
intuitive in
formulating their
strategies. They
use informal
structure, with
374 | P a g e
Schilit
(1987)
60 middle-level
managers (MLMs)
Demographic
(organizational
some authority
delegation in
running the
organization.
Flexible CEOs
working in small
firms within a
stable
environment can
realise superior
performance. On
contrary, CEOs
who need
achievement tend
to use breadth
market strategy.
They emphasize
analytical,
proactive
decision- making
and a
sophisticated,
formal structure.
This dimension of
a CEOs
personality is not
associated with
organizational
performance.
CEOs with
internal locus of
control on the
other hand,
prefer to employ a
product
innovation
strategy that
requires long
term planning for
the future of their
products. They
emphasize
specialisation and
long-term, rather
than short-term,
results.
Descriptive,
Correlation
MLMs have
greater influence
375 | P a g e
Bourgeois
III &
Eisenhar
dt (1988)
from 57
organizations.
Data were
gathered
through
questionnaires and
participants
records
, and
Stepwise
Regression
Analysis
in low risk/return
decisions than
high ones, in the
implementation
of strategic
decisions than
their formulation
process, and in
private
organizations
than in public
ones. In addition
the longer the
MLMs work for
their superior the
greater their
influence on the
strategic
decisions. They
may use rational
or persuasive
arguments to
influence
strategic
decisions.
4 microcomputer
companies. Data
were gathered
through semistructured
interviews with
CEOs and top
managers,
questionnaires,
and secondary
sources.
Decentralisation
of power,
decision process
(comprehensiven
ess, newness of
alternatives),
decision speed,
and
performance.
Descriptive
and
Qualitative
Analysis
Effective
executives in
high-velocity
environments
employ
comprehensive
analysis,
emphasising
product
innovation and
speed of decisionmaking. They
delegate authority
to functional
managers for
strategic
decision-making
and reducing
political behavior.
Comprehensive
analysis
enhances the
quality of initial
376 | P a g e
decisions, and
decentralisation
of power supports
quality further
through
adaptablity to
environmental
changes.
Eisenhar
dt &
Bourgeois
III (1988)
8 microcomputer
companies. Data
were gathered
through semistructured
interviews with
CEO and top
manager,
questionnaires,
and secondary
sources.
Centralisation of
power, decision
process (political
behavior,
conflict, stability
of alliance),
performance
(CEOs ranking
relative to other
companies in
industry, sales
growth, and
return on sales)
Descriptive
and
Qualitative
Analysis
Politics emerge as
the result of
centralisation of
power. In the
absence of power
centralisation,
conflicts do not
lead to the use of
politics. Politics
are managed
through stable
alliances, based
on demographic
characteristics,
not on issuespecific
agreements. The
existence of high
politics within top
management
results in poor
performance,
both in economic
and decisionprocess
outcomes.
Eisenhar
dt
(1989)
8 microcomputer
companies. Data
were gathered
through semistructured
interviews with
CEO and top
manager,
questionnaires,
and secondary
sources.
Decision process
(real- time
information,
multiple
simultaneous
alternatives, twotier advice
process,
consensus,
decision
integration),
decision speed,
performance
Descriptive
and
Qualitative
Analysis
To speed
decision-making,
top management
teams in high
velocity
environments
tend to use more
information, to
consider more
simultaneous
alternatives for
comparison, to
use experienced
377 | P a g e
counsellors to
expedite the
development of
alternatives to
help reduce
ambiguity, to
engage in active
conflict resolution
to achieve
consensus, and
to integrate
strategic
decisions with
one another and
with tactical
plans. Fast
strategic
decision-making
results in better
performance.
Judge &
Miller
(1991)
Decision speed,
decision
importance,
organizational
size, number of
alternatives,
board
experience,
performance
Correlation
Analysis
When a number
of simultaneous
alternatives are
considered apart
from the
environmental
context, decision
speed increases:
however, board
experience tends
to reduce the
speed. Only
biotechnology
companies
operating in a
high-velocity
environment
enjoy the
advantage of
better
performance as a
result of speedy
decision-making.
The relationships
amongst board
experience,
speed and
performance
378 | P a g e
tend to increase
as environmental
velocity
increases, while
the relationship
between speed
and the number
of alternatives
is
unchanged in
any
environmental
context.
Powell
(1992)
Structure
(controls,
formalization,
standardisation,
liaison devices,
centralisation,
automation,
integration, and
differentiation),
formal planning
(goal setting,
scanning,
analysis, and
overall
comprehensive),
strategy content
(production cost,
differentiation,
innovation, and
market breadth),
firm size, and
performance.
Correlation
Analysis
Organizational
alignment,
especially
internal
structural fit,
size-planning,
comprehensivene
ss and a CEO
with an internal
locus of control
help firms to gain
supernormal
profits, and act
as sources of
competitive
advantage.
Further analysis
shows that these
organizational
alignments are
not generated by
chance or luck,
but are the result
of administrative
skill, thus
alignment skills
stand alongside
industry and
strategic
positioning. The
study suggests
the importance of
organizational
factors,
particularly the
379 | P a g e
alignment of key
variables, as
additional
sources of
competitive
advantage.
Floyd &
Wooldri
dge
(1992)
259 middle
managers (MMs)
Questionnaires were
used in data
collection
Strategic type
(Prospectors,
Analyzer, and
Defender),
manager
involvement
(facilitating,
synthesizing,
championing,
and
implementing).
Correlation,
Factor
Analysis,
and
MANOVA
MMs
Priem
CEO judgment
ANOVA,
The CEOs
involveme
nt activities,
especially
championing
alternatives,
facilitating
adaptability, and
implementing
deliberate
strategies vary by
strategy type.
MMs in
Prospector firms
report a greater
level of
championing
activity than
MMs in
Defenders. They
also carry on
higher levels of
facilitating and
implementing
activities than
MMs in both
Analyzers and
Defenders.
Implementing
deliberate
strategy is the
highest level of
activity.
However, MMs
involvement in
implementing
activity varies
according to the
type of strategy
selected.
380 | P a g e
(1994)
managers of 33
manufacturing
companies (multiple
responses). Data
were collected
through mailed
questionnaires
policies, strategy
(cost leadership,
innovative
differentiation,
and marketing
differentiation),
structure
(formulation,
decentralisation,
specialisation,
control, and
liaison devices),
strategy making
(scanning,
analysis, and
planning
process), CEO
characteristics
(age, education,
tenure) and
performance
MANOVA,
Descriptive,
Metric
Conjoint,
Correlation,
Multiple
Regression,
and Cluster
Analysis
judgement in
decision-making
concerned with
the strategystructureenvironment
alignment is
strongly related
to the realised
strategystructureenvironment fit
of the firm. CEOs
judgements
following the
prescriptions of
contingency
theory result in
better
performance. No
support found
for CEO
characteristics
and the strategy
making process
as determinant
factors of CEO
judgement. Even
so, rationality in
strategy-making,
represented by
scanning,
analysis, and the
planning
process, helps
CEOs to attain
better
performance.
Floyd
and
Wooldri
dge
(1997)
259 middle
managers from 25
firms. Data
collected through
mailed
questionnaires.
Boundary
spanning
position,
strategic
influence
activity,
patterns in
middle
management
strategic activity,
Multiple
Regression
and ANOVA
Findings indicate
that boundaryspanning middle
managers have
higher levels of
both upward and
downward
strategic
influence than
non-boundary
381 | P a g e
performance,
and control
variables (tenure
in position, size
of organizations,
and industry)
Dutton,
Ashford,
O'ne
ill,
Hayes,
Wierba
(1997)
Study I:
30 middle-level
managers (MLMs) of
Regional
Telecommunication
company in
Midwest USA.
Interviews were
used to collect data.
Study II:
118 middle-level
managers (MLMs) of
Regional
Telecommunication
company in
Midwest USA.
Mailed
questionnaires were
used to collect data.
Study I:
Perceptions of
favourable and
unfavourable
organizational
environment for
selling issues to
top management.
Study II:
Perception of
conditions and
factors affect the
image risk of
selling issues,
demographic
(age, gender, and
employment
tenure)
spanning ones,
and the
difference is
greater in regard
to upward
influence.
Organizations
attain higher
performance
when their
middle managers
have more
uniform levels of
downward
influence and
more varied
levels of upward
influence. There
is no difference
in the
performance of
organizations
when they are
classified on the
basis of their size
and industry.
Study I:
Qualitative
Analysis
Study II:
Factor
Analysis
and Paired
t-Test
Study I:
The motivation of
MLMs to raise
strategic issues
with top
management
depends on the
willingness of top
management to
listen, the
supportiveness of
the
organizations
culture,
competitive and
economic
pressures and
the level of
organizational
change.
However, fear
of negative
382 | P a g e
consequences,
downsizing
conditions,
uncertainty
(about the future
in general, about
the future of
organization and
players, and the
like), and
conservativeness
of organizational
culture may
cause the MLMs
to be reluctant in
raising strategic
issues.
Study II:
Three factors
perceived by
MLMs to
contribute to the
risk of losing
their image: the
violation of
normal
procedures,
political
vulnerability and
distant sellertarget
relationships. No
relationship
between
demographic
characteristics
and the three
factors above,
except for age,
which is
significantly
correlated
with norm
violation
and
political
vulnerability.
383 | P a g e
Beal &
YasaiArdekan
i
(2000)
Competitive
strategies (low
cost; innovation,
marketing,
quality, & service
differentiations
and hybrid), CEO
functional
experience (R &
D, marketing,
engineering,
sales, and
accounting),
performance
Regression
Analysis
The results
reveal that a fit
between CEOs
experience and
their competitive
strategy results
superior
performance.
While innovation
strategy may
succeed as the
CEO has greater
experience in R
& D, greater
experience in
engineering may
lead to
successful
implementation
of quality
differentiation
strategy. In
addition,
engineering
rather than
accounting and
sales experiences
may be required
to implement low
cost and service
differentiation
strategies
effectively.
Accounting
experience
becomes a
prerequisite
combining with
other
requisite
expertise to
execute
hybrid
strategy involving
low cost
leadership.
384 | P a g e
As mentioned earlier, organizations must fit with their environment or they fail
(Aldrich, 1979). However, making the organization fit to its environment depends on
the top managements perception of the environment, as top management makes
strategic decisions based not on the environment itself, but on their perceptions of
environmental realities. The effectiveness of strategic decisions, therefore, is subject to
the match of top managements perceptions of environment and resources capabilities
to their realities (Anderson and Paine, 1975; Glaister and Thwaites, 1993). To increase
the match of these perceptions to their realities, top management should improve the
quantity and quality of the environmental information (Provan, 1989). However, in a
complex and dynamic organizational environment, the top management cannot detect,
interpret, and handle the environmental changes by themselves (Walsh, 1995) as their
information capacity and the time available do not enable them to do so. They must
rely on their middle managers support for all strategic information (Barlett and
Goshal, 1994). The middle managers inputs will expose top management to the
strategic issues through the viewpoints of those closer to the actual operations of the
organization.
Since middle managers can direct and influence top managements strategic decisionmaking by presenting the strategic issues in appropriate ways, they have to compete
with the other managers to attract the top managements attention (Dutton and
Ashford, 1993). However top management will not place equal value on the strategic
issues provided by their middle managers. As asserted by Pfeffer and Salancik (1978),
those coalition participants who provide crucial resources would have more influence
and control over the organization. In other words, some departments or sub
organizations will be more influential than others, as they are seen as being critical to
the success of the organization as a whole. For example, the increase of unionism in
the 1930s enhanced the role and influence of industrial departments in large
corporations.
From this perspective, a manager who is responsible for the marketing area would
play a crucial role in providing strategic information to top management to satisfy
long-term needs of customer coalition. In other words, a marketing manager can
persuade top management to implement a marketing concept (Anderson, 1982). The
marketing concept posits that the key to profitability is not current sales volume, but
385 | P a g e
long term customer satisfaction. The only valid definition of business purpose is to
create a satisfied customer, and in doing so, any business enterprise has two basic
functions: marketing and innovation (Drucker, 1969). Top management is responsible
for creating this environment, viewpoint, attitude, and aspiration. These expressions of
marketing concept indicate that the executive must put the customers interests at the
top of the firms priorities. Its product should be tailored and modified in respond to
changing customer needs. Profit is not the objective, it is just the reward for creating
satisfied customers (Levitt, 1960).
The marketing concept became popular in business in the 1 960s. Evidence indicated
that both large and medium manufacturing firms, to a large extent, adopt the
marketing concept (Hise, 1965).
There was an inclination that large firms were more fully committed to adopting and
implementing marketing concepts than small and medium ones. Similarly, consumer
goods firms tended to adopt and implement the marketing concept to a greater degree
than industrial ones (McNamara, 1972). However significant variations in the response
pattern among practitioners and academicians indicated that few firms were able to
implement the marketing concept on a day-to-day basis. Ames (1970) reported that
many firms moves to become more marketing-oriented fell into the trappings of
marketing rather than the substance. There was no fundamental shift in thinking and
attitudes throughout the firm, and this was what was needed to ensure that everyone
in every functional area placed paramount importance on being responsive to market
needs. If there was no change in thinking and attitude, even most highly developed
marketing operation could not produce any real result.
These inappropriate implementations of the marketing concept not only generated
unintended results but also caused some criticism of the pertinence of the concept.
Bell and Emory (1971) suggested that the businessman's operational interpretation of
customer orientation had not approached the philosophical meaning of providing
customer satisfaction. It appeared that customer orientation had meant little more
than looking to the customer for guidance as to what can be sold for profit. This
implied that customer knowledge was simply a means to persuade or even to
manipulate the customer. The marketing concept was also blamed to the lack
competitiveness of American businesses. The implementation of the concept had led
386 | P a g e
American businesses to cut their R&D investment, resulting in the slow death of
product innovation. The concept had diverted attention away from product and its
manufacture to market research, advertising, selling, and promotion, to the suffering
of product value (Bennett and Cooper, 1981). The emergence of the corporate strategic
planning concept further lessened the adoption of the marketing concept in
organizations. The fundamental purposes of strategic planning were to maintain the
competitive strength of the firm and to improve its internal efficiency, whereas the
corporate objectives were mostly focused on the achievement of certain returns on
investment and market share (Ansoff, 1965). Webster (1988) considered that this
concept viewed market opportunities in terms of the market's growth rate and the
firm's ability to dominate its chosen market segments. In other words, it defined
market as aggregations of competitors, not as customers.
In addition, Webster (1988) believed that the strategic planning concept not only
shifted the management focus on to customers, but also removed the marketing role
in strategic decision-making. This belief was based on Ansoffs classification of
"marketing strategy" as an operation decision, not a strategic decision. In Ansoffs
opinion, strategic decisions involved the selection of product-market mix, products to
be offered, and markets to which the products were to be sold. He did not consider
those decisions to be marketing decisions, because he defined marketing as a broad
activity concerned with creating product acceptance, advertising, sales promotion,
selling, distributing the product (including transportation and warehousing) contract
administration, sales analysis, and very importantly servicing the product (Ansoff,
1965 :p.93). This made the role of marketing set back to its traditional role that is just
creating demand for the products. Therefore, it was not so surprising when Webster
(1981) found that many qualified marketing executives preferred to move into a
strategic planning position, than to stay in marketing one.
He also discovered that marketing people failed to think creatively to provide proper
stimulation and guidance for R & D and product development. Marketing people did
not like to take risks and were unable to approach problems in an innovative and
entrepreneurial fashion. Webster (1981) believed that these problems arose because of
pressure of short-term sale volume and financial results on marketing people.
387 | P a g e
Briggadike (1981) noticed this lack of strategic orientation of marketing in the early
80's. He asserted that marketing does have a rich basis for hypothesising about
strategic situations and a growing body of techniques to explore these hypotheses.
Most reported studies, however, involved ad hoc problem-oriented research, with little
attempt to integrate and extend the relationship to other situations. He judged that
many marketers were scientists in the solving problems at brand, or, occasionally, at
product level, but not in the theory-building sense. Supporting this judgement, Wind
and Robertson (1983) stated that marketing discipline was dominated by marketing
management, which was fundamentally concerned with the design of marketing
programs and did not focus on the mission of a firm nor on how to gain competitive or
consumer advantage. They identified seven limitations within the marketing discipline
that should be addressed and corrected. These included a fixation with the brand as
the unit analysis, the interdisciplinary isolation of marketing, the failure to examine
synergy in the design of the marketing program, marketing's short run orientation, the
lack of rigorous competitive analysis, the lack of international orientation, and the lack
of an integrated strategic framework. Similar concern was also voiced by Day (1992),
who argued that marketers were too slow in addressing some of the important issues
of the past decade, and tended to stay too long with outmoded characterisation of
strategy processes and issues. However, environmental changes in the 80s influenced
the implementation of the corporate strategic planning concept. The resulting changes
could
lead
to
the
future
business
environment
being
characterised
by
an
388 | P a g e
389 | P a g e
390 | P a g e
their
contribution
to
the
selection
of
appropriate
product-market
391 | P a g e
low levels of organizational synergy. On the other hand, managers might select a hold
or pull back strategy when they perceived that the market was not buoyant.
Lusch and Laczniak (1989) found that increases in resource constraints amplified
competitive intensity. They also discovered that this increase in competitive intensity
made organizations emphasize non-price marketing strategy, though it did not lead to
a better performance. Lusch and Laczniak argued for an insignificant relationship
between marketing strategy and performance, because a more intensive competition
market forced most organizations to engage in intensive promotion and new product
development, which suppressed short term performance.
McDaniel and Kolari (1987) investigated the relationship between strategy types and
marketing strategy orientation. They found significant differences in marketing
orientation between Defenders and Prospectors, as well as between Defenders and
Analyzers. Prospectors and Analyzers employed more proactive marketing strategy
than Defenders. They engaged more activities in new product development, promotion,
and marketing research than Defenders. McKee, Varadarajan, and Pride (1989) found
similar results. They revealed significant differences in marketing tactics among
Reactors, Defenders, Analyzers and Prospectors. Organizations with more adaptive
strategy types might focus more on marketing efforts. Prospectors, for example, tended
to use more scanning and product development efforts than the other strategy types.
However, there were no differences between Defenders and Analyzers. Significant
differences only existed between Defenders and Prospectors (Rajaratman and Chonko,
1995). Defenders tended to organize their marketing department on more functional
structure than Prospectors.
Rajaratman and Chonko (1995) also indicated centralization of power seems to exist in
Reactors, but not in the others. Prospectors tended to develop a more specialized
organization structure and seek greater market penetration and product development.
They expended greater effort in marketing than Defenders, Analyzers and Reactors. In
relation to marketing effort, Defenders spent more significantly than Reactors. Finally,
they revealed that Reactors had lower performance, either in term of earning/sales
growth rate or return on sales/ investment than the other three types of business
strategy. There were no differences in performance among these three.
392 | P a g e
393 | P a g e
Subject/Resea
rch
Method
Variables
studied
Analytical
Tools
Key Findings
Anderson
&
Zeithaml
(1984)
1,234
industrial
manufacturing
companies in
PIMS data base
Product
life
cycle (growth,
maturity, &
decline),
strategic
variables
(industry,
product
competition,
R&D, product /
investment,
efficiency,
vertical
integration, and
marketing
variables),
performance
(ROI
& relative
market share)
ANOVA
and
Multiple
Regression
Analysis
Many strategy
variables significantly
correlate to superior
performance.
However there is
significant difference
in the determinants
of ROI in the growth
and maturity stages.
C.f. significant
influence of
marketing variables
and industry
variables in growth
and maturity stages
respectively. Product
competition and
efficiency variables
significantly affect
the ROI in both
stages but the effect
is much higher in the
maturity than in the
growth stage.
Therefore, the
business strategy
should fit with the
stage of the product
life cycle to attain
394 | P a g e
superior
performance.
Burke
(1984)
86 marketing
managers.
Data were
collected
through
questionnaires
Environment
variables
(market
attractiveness,
relative
competitive
strength, level of
uncertainty,
exit, and entry
arriers)
organizational
variables
(reward system,
and synergy),
marketing
strategy
(build,
hold, and pull
back)
MANOVA,
ANCOVA,
Multiple
Discrimina
nt Analysis
Environment and
organizational factors
influence managers
in selecting their
marketing strategy.
Market attractiveness
and reward for short
run performance are
positively associated
with build strategy,
but entry barriers
and synergy have
negative impact on it.
This indicates
managers may
choose build strategy
when market is
profitable, has good
future prospects, and
is easy to enter. This
intention may be
enhanced when the
reward system for the
managers
emphasizes short run
organizational
performance.
Because build
strategy may require
many resources, it
can lead to a low level
of organizational
synergy. Managers
may select hold or
pull back strategy
when market is not
buoyant
McDaniel
& Kolari
(1987)
279 marketing
managers of US
banks. Mailed
questionnaires
were used to
collect data.
Marketing
environment,
strategy
types
(Prospector,
Analyzer, and
Defender), and
marketing
Cluster,
Multiple
Discrimina
t Analyses,
MANOVA,
ANOVA,
and
Duncans
Significant
differences in
marketing orientation
between Defenders
and Prospectors, as
well as between
Defenders and
Analyzers.
395 | P a g e
Madsen
(1989)
134 managers
of Denmark
industrial
companies.
Mailed
questionnaires
were used to
collect data
strategy
Multiple
Range
Test.
Prospectors and
Analyzers employ
more proactive
marketing strategy
than Defenders. They
engage in more
activities in new
product development,
promotion, and
marketing research
than Defenders.
Conclusion:
Defenders lack
marketing orientation
and rely more on
their traditional
products.
Market
and
organizational
characteristics,
Export
marketing
strategy, and
export
performance
ANOVA
and
Multiple
Regression
Analysis
Export marketing
strategy is the key
success factor of
export performance
in term of export
sales, growth, and
profits. The other two
independent
variables
(firm/market) only
influence export
sales. Results also
indicate that intercorrelation and
association exist
among variables,
especially regarding
firm and market
characteristics. This
means that even
though those
variables do not have
any significant
relationship with
export performance,
they still have
indirect influence on
it. Interaction
analysis indicated
this relationship.
Of the overall
396 | P a g e
variables, product
strength is the most
important
explanatory variable
followed by planning
and control intensity,
export experience,
and export market
attractiveness.
McKee,
Varadaraj
an, and
Pride
(1989)
333 managers
of US Bank
companies.
Data were
collected
through mailed
questionnaires
Market
environment /
volatility,
organization
strategy
type
(reactor,
Defender,
Analyzer, and
Prospector),
marketing
tactics, and
performance.
ANOVA
and NonParametric
Test of
Correlation
Analysis
Significant
differences in
marketing tactics
among Reactors,
Defenders, Analyzers,
and Prospectors.
Organizations with
more adaptive
strategy types may
put more effort into
marketing
Prospectors, for
example, tend to use
more scanning and
product development
efforts than the other
strategy types.
Market volatility has
significant direct
relation-ship to
marketing tactics. It
is not only
significantly related
to organization
performance but also
moderates strategy
types - performance
relationships.
However only in
mildly positive
volatile markets is
the role of market
volatility significant
as moderating
variable: it is not
significant in negative
and highly positive
volatile markets.
397 | P a g e
Lusch &
Laczniak
(1989)
103 executives
of 500 fortune
companies.
Data were
collected by
mailed
questionnaires.
Resource
constraints,
structural
fluctuations,
competitive
intensity,
marketing
strategies
(product,
promotion, &
distribution),
performance.
Structural
Equation
Modeling
(LISREL)
Association found
between resource
constraints and
structural
fluctuations.
However, an increase
in resource
constraints amplifies
competitive intensity,
while an increase in
structural
fluctuations does not.
Increase in
competitive intensity
makes the
organizations
emphasize non-price
marketing strategy,
though it does not
lead to a better
performance.
Insignificant
relationship between
marketing strategy
and performance is
probably because a
more intensive
competition market
forces most
organizations to
engage intensive
promotion and new
product development,
suppressing short
term performance.
Cavusgil
and Zou
(1994)
202 marketing
managers of US
exporting
ompanies.
Data were
collected
through in
depth
interviews
Industry
characteristics,
market
characteristics,
organizational
characteristics,
product
characteristics,
export
marketing
strategy, and
export
performance
Explorator
y,
Confirmato
ry Factor,
and
Path
Analyses
Product
adaptation,
support to foreign
distributors/subsidia
ry, international
competence,
commitment to
export venture
enhance
the
performance of
export ventures.
Other export
marketing strategies
398 | P a g e
such as price
competitiveness and
promotion adaptation
influence the
performance
insignificantly.
Internal and external
organizational
environments
influence export
marketing variables.
The most critical
determinant of
strategy is
technological
orientation of
industry, which
significantly
determines all
variables of the
marketing strategy.
Export market
competitiveness also
affects the strategy
variables, except
price
competitiveness.
This indicated that
managers do not use
price as a weapon in
coping with the
market pressure. In
addition,
organizational
international
competence and
experience with the
product determine
product and
promotion
adaptation.
Management
commitment to the
venture affects only
support given to
distributors/subsidia
ries. Finally whereas
product
uniqueness
399 | P a g e
determines product
and promotion
adaptations, cultural
specificity of
product
only
affects product
adaptation
significantly.
Rajaratna
m&
Chonko
(1995)
410 marketing
managers of
service
organizations.
Data were
collected
through mailed
questionnaires
Organization
structure,
marketing
organization,
growth strategy,
strategic
orientation, and
performance
ANOVA
and
MANOVA
No difference between
Defenders and
Analyzers in
organizing the
marketing
department.
Significant
differences
only
exist between
Defenders
and
prospectors:
Defenders
tend
to organize
their
marketing
departments on a
more functional
structure than do
Prospectors. No
difference among the
four business
strategy types in
regard to
formalization and
market development.
Centralization of
power seems only to
exist in Reactors.
Prospectors tend to
carry out more
specialized
organization
structure, market
penetration and
product development,
and to expend greater
marketing effort than
Defenders, Analyzers,
and Reactors. In
relation to marketing
400 | P a g e
effort, Defenders
spend more
significantly than
Reactors.
Finally, the study
reveals that Reactors
have lower
performance, either
in term of
earning/sales growth
rate or return on
sales/ investment
than the other three
types, amongst whom
no differences can be
detected.
zsomer
& Prussia
(1999)
45 executives of
MNCs in
Turkey.
Data were
collected
through
interview in
1988 and 1994.
Target market
similarities,
standardized
marketing
strategy,
marketing
structure
(the degree of
centralization of
decisionmaking), and
performance.
Structural
Equation
Modeling
The contingency
model of target
market similarities
(TMS), standardized
marketing strategy
(SMS),
marketing
structure (CS),
and performance
relationship is
significant for both
periods of time (1988
and 1994). TMS
influences SMS
positively. A similar
affect exists between
SMS and CS.
However, CS has a
negative effect on
performance.
Marketing structure
is the dominant
factor in determining
organizational
performance. The
negative influence of
structure on the
performance
indicates the need of
decentralization of
marketing decision to
gain better
401 | P a g e
performance. The
decentralized
structure enables
managers to adapt
the marketing
strategy to local
environment, and to
implement the
strategy flexibly.
Marketing strategy
affects performance
indirectly through the
structure.
Contemporaneous
effect analysis
reveals that
marketing strategy is
consistently
responsive to the
current market
environment, since
the SMS 1994 is only
influenced by TMS
1994, not by TMS
1988 and SMS 1988.
The researchers
conclude that to gain
superior
performance MNCs
should align their
marketing strategy to
the current local
market environment
and decentralize
marketing decisionmaking to their
subsidiary managers
to facilitate
adaptation to
environmental
changes.
Knight
(2000)
216 CEOs of
small and
medium
enterprises
(SMEs).
Data were
Globalization,
entrepreneurial
orientation,
marketing
strategy
(product
Factor,
Correlation
, and
Multiple
Regression
Analyses.
Entrepreneurial
orientation correlates
to all of the
marketing
strategies:
product
402 | P a g e
collected
through mailed
questionnaires.
specialization,
marketing, and
quality
leadership),
technology
acquisition,
globalization
response,
internationalizat
ion preparation,
and
performance
specialization,
marketing, and
quality leadership,
especially for SMEs
working in high
globalization
environment. In
addition, new
technological
acquisition associates
with these strategies,
while globalization
response
only correlates to
marketing leadership
strategy.
Finally globalization
response and
internationalization
preparation influence
SMEs performance.
There is no
relationship between
new technological
acquisition and
performance.
Conclusion:
entrepreneurship
becomes a key
orientation among
SMEs working in a
global environment.
To achieve better
performance, they
prepare for entry to
the international
market by performing
such activities as
international market
research, committing
appropriate resources
and the adaptation of
product and
marketing
dimensions. In
addition, SMEs
employing a
marketing leadership
403 | P a g e
strategy tend to
respond to
globalization by being
sensitive to its
imperatives and
modifying marketing
and other strategies
as needed.
Marketing Strategy Process Studies
As is the case with strategy process research in general, studies on the marketing
strategy process focused mainly on the formulation and implementation stages. The
studies investigate the influence of environmental, organizational and decisionmaking processes on organizational performance. Phillips, Davies, and Mountinho
(2001), for example, indicated that organizations employing strategic marketing
planning with product orientation attained more effective and efficient performance
levels. This strategic planning was characterised by manager participation, planning
thoroughness, formalization and sophistication, with an emphasis on new product
development. Stratis and Powers (2001) revealed similar findings, and discovered that
strategic marketing planning determined financial performance, but planning modes
and environmental scanning individually did not influence performance. All of the
strategic
marketing
processes
in
combination
affected
financial
performance
indicated
organizational
commitment
to
certain
activities.
The
404 | P a g e
formalization
and
marketing
specialization,
indicating
organizations
employing strategic marketing formalization had more specialists who direct their
efforts to a narrow set of marketing activities. Finally, in combination with
comprehensive and formal market planning positively affected the performance of
organizations operating in both stable and unstable environments (Lysonski and
Pecotich 1992). The formalized comprehensive marketing planning was likely to result
in superior performance because it usually anticipated the unexpected and lays
contingency plans accordingly.
In contrast to formalization, centralization of strategic marketing planning impeded
the credibility and utilization of the marketing plan (John and Martin 1984). In some
cases, centralization might improve resource commitment and marketing assets and
capabilities (Menon et al., 1999; Vorhies, 1999). However, it tended to generate
interdepartmental conflicts. The conflicts might not only reduce the quality of
marketing strategy formulation and implementation (Menon, Bharadwaj, and Howell,
1996), but also lowered financial and market performance (Morgan and Piercy, 1998).
Interdepartmental conflicts might also arise from failure to provide the kinds of
supports needed by other departments, unclear goals, objectives, and functional
responsibilities. Organizations might vary in their approaches to conflict resolution. As
mentioned earlier, organizations might use planning formalization to eliminate
conflict. They might employ such mechanisms as avoidance, conciliation, participatory
processes and hierarchy (Ruekert and Walker, 1987). Other approaches could include
mechanisms such as multifunctional training, cross-functional teamwork, a variety of
compensation strategies, formalization, social orientation, and spatial proximity (Maltz
and Kohli, 2000). Besides interdepartmental conflicts, behavioral problems might arise
during the planning process. Piercy and Morgan (1990) identified the existence of four
different behavioral problems that can occur. These included planning recalcitrance,
fear of uncertainty, political interest in planning, and planning avoidance. Most of
these problems correlated significantly with the perceived organizational context,
405 | P a g e
especially customer philosophy and strategic orientation. This indicated that higher
behavioral planning problems emerged when organizations were perceived to have
paid little attention to customer needs and to the requirements of different market
segments, and had been ineffective in developing and implementing acceptable
marketing strategies. The customer philosophy and strategic orientation related
significantly and positively to the credibility and utilization of a marketing plan. In the
second study, Piercy and Morgan (1994) discovered that only planning recalcitrance
influenced the credibility of marketing plan negatively. The others affected the
credibility only indirectly, through their connection with planning recalcitrance. On
the other hand, they found that thoroughness in planning and the incorporation of
appropriate plan components improved a marketing plans credibility. In turn,
sophisticated
analytical
techniques
and
market
analyses
enhanced
planning
management
leadership
had
a positive
effect
on
connectedness
and
communication frequency, and affects the level of conflict negatively. They presumed
that the managements leadership determined the organizations performance by
facilitating employee empowerment and improving interdepartmental coordination and
cooperation.
Marketing managers had an important role to play in successful marketing strategy
implementation. Noble and Mokwa (1999) discovered that the role performance of
marketing managers determined the success of marketing strategy implementation.
Such performance was influenced by managers commitment, not only to marketing
strategy, but also to their career roles. However, there was no relationship between
organizational commitment and performance. The degree of role autonomy and
406 | P a g e
involvement did not affect the commitment of managers. When marketing managers
perceived their roles to be significant to the success of marketing strategy
implementation, their commitment would increase. They would commit to a strategy
when they perceived that it fit with the broader strategic direction of the organization.
This commitment would increase when managers perceive the strategy to have
potentially significant consequences for their organizations, and they received crossfunctional support. However senior managements support and the scope of the
marketing strategy did not determine the managers commitment to it.
In conclusion, as with studies of the strategy process in general, most studies of
marketing strategy process, except that of Noble and Mokwa (1999), concentrated on
strategy formulation processes. They paid little attention to marketing strategy
implementation, although Sashittal
and Tankersley
the
Subject /
Variables studied
Research
Analytical
Key Findings
Tools
Method
John &
292
Formalization,
Correlation,
Results
centralization,
Multiple
that formalization
ng
structural
Regression
of marketing
personnel.
differences (job
Analyses,
planning improves
Mailed
diversities,
and
questionnaires
specialization, and
Structural
utilization of the
were
spatial dispersion),
Equation
marketing plan.
Martin
(1984)
marketi
used
show
407 | P a g e
to
collect data
credibility, and
Modeling
utilization of
rules and
marketing plan
procedures for
performing the
planning the
higher the
credibility and the
usage rate of the
plan. The
researchers
suggest the
formalization
indicates a
organization
commitment to
certain activities.
Centralization, on
the other hand,
impedes the
credibility and
utilization of the
marketing plan.
Finally, in
bivariate analysis,
higher marketing
job specialization
increases
credibility and
utilization rates,
but these
relationships turn
out to be
408 | P a g e
insignificant when
formalization is
included in
multivariate
analysis. While
spatial dispersion
only influences the
credibility
negatively, job
diversity has no
significant effect
on either
credibility or
utilization.
Ruekert &
Walker
(1987)
95 marketing
personnel and
21 R&D
personnel.
Data were
collected
through
mailed
questionnaire
s
Business strategy
(Prospector,
Analyzer, &
Defender),
structure
(formalization),
conflict resolution
(avoidance,
onciliation,
participatory,
hierarchical),
outcome (level of
conflict, &
perceived
effectiveness of
interdepartmental
relationship)
Two ways
Findings indicate
ANOVA,
that failure to
Chi- square,
and
of supports needed
Correlation
by departments,
Analyses
the degree of
market response,
and unclear goals,
objectives, and
functional
responsibilities are
the sources of the
conflict. Marketing
personnel in
Prospector
organizations
experience more
409 | P a g e
410 | P a g e
hierarchical
mechanism for
resolving conflicts.
Finally, the study
discovers that
personnel in
Prospector
organizations have
less favorable
attitudes to
conflict resolution,
favoring a greater
reliance on nonhierarchical
mechanisms.
They also perceive
the relationship
between marketing
and R&D to be
less effective than
personnel in
Analyzers and
Defenders. Further
analysis reveals
that the level of
formalization is
significantly and
positively related
to the perceived
effectiveness of
terdepartmental
relationships, but
411 | P a g e
significantly and
negatively to the
level of conflict
between the two
departments. In
addition the use of
participatory
mechanisms,
especially in
Prospectors and
Analyzers, is
negatively
associated with
the level of conflict
and positively
correlated with the
perceived
effectiveness of
relationships.
Meanwhile, the
use of hierarchical
mechanisms
relates positively
to levels of conflict
but negatively to
perceived
effectiveness.
Piercy &
144 marketing
Perceived
Correlation
The study
Morgan
managers of
organizational
Analysis
identifies the
(1990)
UK ompanies.
context (customer
existence of four
philosophy,
different
Data were
412 | P a g e
collected
marketing
behavioral
through
organization and
problems in the
mailed
information
marketing
questionnaires
effectiveness,
planning process.
strategic
These include
orientation),
behavioral
planning
problems, and
marketing plan
credibility and
utilization
planning
recalcitrance, fear
of uncertainty,
political interest in
planning, and
planning
avoidance. Most of
these problems
correlate
significantly with
the perceived
organizational
context, especially
customer
philosophy and
strategic
orientation. This
indicates that
higher behavioral
planning problems
emerge when
organizations are
perceived to give
little attention to
customer needs
and different
market segment
413 | P a g e
equirements, and
ineffective in
developing and
implementing
acceptable
marketing
strategies.
Customer
philosophy and
strategic
orientation relate
significantly and
positively to the
marketing plans
credibility and
utilization. Finally,
results reveal that
behavioral
problems are
associated
negatively with the
plans credibility
and utilization,
but their
relationships are
not statistically
significant.
Lysonski &
Pecotich
(1992)
522 CEOs of
Environmental
Multiple
Findings reveal
New Zealand
stability,
Regression
formalization and
companies.
formalization,
Analyses
comprehensivenes
Data were
comprehensivenes
s of marketing
414 | P a g e
collected
s, and
planning positively
through
performance
affect the
mailed
performance of
questionnaires
organizations
operating in both
stable and
unstable
environments. Of
the resulting
discrepancies with
the previous
study, the
researchers argue
that apart from
any environmental
conditions,
formalized and
comprehensive
marketing
planning is likely
to result in
superior
performance
because it may
provide
contingency plans
and anticipate the
unexpected.
Greenley &
175 marketing
Analytical
Cluster and
The
study
Bayus
managers of
techniques,
Discriminan
categorises four
(1994)
US companies
analytical systems,
t Analyses
different
415 | P a g e
and 106 of UK
organization
marketing
companies.
information
planning
inputs, senior
processes among
management
US and UK
participation, and
organizations.
Data were
collected
through
mailed
questionnaires
the effectiveness of
marketing
planning decisionmaking
Most of the
organizations
could be classified
as unsophisticated
marketing
planning decision
makers that tend
to ignore
planning
techniques and
organization
information
inputs, and use
standard
computer software
in the planning
process.
Organizations
within the secondbiggest group may
be seen as
information
seekers, likely to
use many
information inputs
in developing
planning but only
416 | P a g e
417 | P a g e
software not to be
important.
However, apart
from their
differences in
marketing
planning process,
all organizations
consider senior
management
participation to be
important for the
effectiveness of the
planning process.
Likewise, there are
no differences in
the perceived level
of effectiveness of
marketing
planning
processes among
the groups. The
researchers argue
that managers,
especially the
unsophisticated
decision makers
and gut feelers,
may not realise
the use of a
formalized
planning process
418 | P a g e
could improve
their effectiveness.
Piercy &
220 managers
Formalization and
Factor and
The study
Morgan
of medium
sophistication of
Path
identifies the
(1994)
and large
marketing
Analyses
existence of five
companies in
planning
different
UK. Mailed
(analytical
behavioral
questionnaires
techniques,
problems in the
were employed
market analysis,
marketing
to collect data
and plan
planning process:
components),
planning
recalcitrance,
thoroughness,
politics and
behavioral
myopia, alienation
planning
and uncertainty,
problems, and
planning
marketing plan
avoidance, and
credibility
squirm factors.
From the five
behavioral
planning
problems, only
planning
recalcitrance
negatively
influences the
credibility of a
marketing plan.
The others affect
credibility
indirectly, through
419 | P a g e
planning
recalcitrance.
Likewise, findings
reveal planning
thoroughness and
plan components
improve the
marketing plans
credibility, while
more sophisticated
analytical
techniques and
market analyses
carried out in
marketing
planning enhance
the plan
components and
planning
thoroughness.
Menon,
236 marketing
Centralization,
Structural
Consistent with
Bharadwaj,
managers.
formalization,
Equation
the previous
team spirit,
Modeling
study, findings
& Howell
(1996)
Data were
collected
through
mailed
questionnaires
interdepartmental
here
connectedness,
reveal
communication
dysfunctional
barriers,
conflict (unhealthy
functional conflict,
behavior
dysfunctional
within
conflict, the
organizations)
quality of
negatively
420 | P a g e
marketing
influences
strategy, and
quality of
market
marketing
performance
strategy
the
formulation and
implementation,
while functional
(constructive)
conflict enhances
the quality of the
strategy. High
quality strategy
formulation and
implementation
leads to superior
market
performance. The
study also
uncovers some
causes of the
conflicts. Power
centralization and
the existence of
communication
barriers may
enhance
dysfunctional
conflict, but it may
be eliminated by
formalized
structure.
Functional
421 | P a g e
conflict, on the
other hand, may
be increased by
team spirit and
departmental
interconnectednes
s.
Sashittal &
40 marketing
The processes of
Qualitative
Tankersley
managers of
market planning
Analysis
small and
and
midsized
implementation
(1997)
Findings
reveal that
market planning
and
industrial
implementation
firms.
are interrelated.
Data were
collected
through in
depth
interviews.
The
planningimplementation
interface is highly
responsive to
market changes
and to changes in
each other.
Marketing
managers
improvise their
market plans and
implementation to
fit day-to-day
market changes
and to achieve
their marketing
objectives. The
422 | P a g e
study identifies
three major tactics
used to manage
the planningimplementation
interface,
depending on the
extent of
environmental
changes.
Organizations
working with lowlevel market
changes employ
communication
between planners
and implementers
to ensure that
their market plans
are based on the
latest market
information.
However when
environmental
changes are high,
organizations tend
to upgrade the
involvement of
plannersimplementers or to
fuse their
functions. The first
423 | P a g e
424 | P a g e
changes in
customer needs.
The researchers
conclude that
authority
delegation or
managers
autonomy is a
prerequisite to the
attainment of a
highly responsive
planningimplementation
interface.
Chae & Hill
90 CEOs of
Planning formality,
One Way
Findings indicate
(1997)
industrial and
CEO involvement,
ANOVA
that top
consumer
organizational
management
companies.
climate,
involvement in the
environmental
planning process
complexity &
and a cooperative
uncertainty,
organizational
perceived
climate increase
organizational and
the formality of
competitive benefit
strategic
Mailed
questionnaires
were used to
collect data
marketing
planning. There is
no significant
influence from
organizational
structure,
environmental
425 | P a g e
complexity and
uncertainty on
planning formality.
Likewise there is
no difference in
planning formality
between industrial
and consumer
organizations.
However, formality
may generate both
competitive and
organizational
benefits. Results
reveal that
planning formality
can improve the
effectiveness of
new product
launches and cost
reduction efforts,
whilst facilitating
improved product
quality and market
share
performance. In
addition, formality
of planning efforts
may create
organizational
benefits as it
enhances
426 | P a g e
understanding of
priorities,
managerial
motivation to
attain better
overall
coordination,
implementation,
and control of the
organizations
activities.
Vorhies
85 marketing
Environmental
Structural
Findings indicate
(1998)
managers of
turbulence,
equation
that only
good and
business strategy,
modeling
environmental
service
organizational
turbulence and
companies in
structure, task
task routinization
routinization,
do not significantly
collected
market
influence
through
information
marketing
mailed
processing
capabilities.
questionnaires
capability,
Business strategy
marketing
capabilities, and
effect on the
organizational
marketing
effectiveness
capabilities,
indicating
organizations with
a higher level of
strategy
development have
better developed
427 | P a g e
capabilities. In
addition,
marketing
information
processing
capability
enhances
marketing
capabilities. As
propermarketing
actions need
accurate
information, it
could be predicted
that organizations
with high
information
processing
capability will have
the best marketing
capabilities.
Organizational
structure, as well
as business
strategy, increases
marketing
capabilities. This
indicates more
centralized
decision-making
and more formal
rules and
428 | P a g e
procedures
encourage the
development of
marketing
capabilities.
Finally,
organizations with
high marketing
capabilities may
achieve superior
performance.
Morgan &
298 general
Senior
Standardize
The
Piercy
managers,
management
d and
discovers that
(1998)
351 marketing
leadership,
moderated
senior
managers,
strategy process
Multiple
and 398
(formalization,
Regression
t leadership has a
quality
thoroughness,
Analyses
positive effect on
managers
alignment,
connectedness
participation),
and
control system
congruence,
environment
(market and
technological
turbulence),
interdepartmental
interaction
(connectedness,
communication
frequency, conflict)
and performance
study
managemen
communication
frequency, but
affects the level of
conflict negatively.
The researchers
presume that the
management
leadership
determines the
organization
performance by
facilitating
429 | P a g e
employee
empowerment,
and improving
interdepartmental
coordination and
cooperation. The
influence of
strategy process
on
interdepartmental
dynamics varies.
Planning
formalization may
reduce
interdepartmental
conflict.
While the
planning
alignment
and
functional
participation
improve
connectedness
between marketing
and quality
departments,
planning
thoroughness
enhances
communication
frequency between
departments.
430 | P a g e
Congruence
between the
quality control
system and quality
strategy may also
increase
communication
frequency. In
addition, findings
also indicate
various effects of
interdepartmental
dynamics on
performance. This
connectedness
may raise the
perceived quality,
whereas the
communication
frequency could
improve market
performance. On
the other hand,
lower conflict
between marketing
and quality
departments may
lead to better
financial and
market
performance.
There is no
431 | P a g e
moderating effect
of market and
technological
turbulences on the
relationship
between
interdepartmental
dynamics and
performance.
Menon,
212 managers
Antecedents
Correlation,
Findings indicate
Bharadwaj,
of Fortune
(centralization,
Regression,
that innovative
Adidam, &
1000
formalization, &
Exploratory,
culture influences
Edison
companies.
innovative
and
all marketing
culture),
Confirmator
strategy
marketing strategy
y Factor
components,
making (situation
analyses
(1999)
Data were
collected
through
mailed
questionnaires
.
whereas
analysis,
centralization and
comprehensivenes
formalization only
s, emphasis on
affect some of
marketing assets
them.
and capabilities,
Centralization
cross-functional
enhances the
integration,
emphasis on
communication
marketing assets
quality, strategy
and capabilities
consensus
and
commitment,
resource
strategy resource
commitment.
commitment),
control
(environmental
Formalization, on
the other hand,
facilitates cross-
432 | P a g e
turbulence), and
functional
outcomes
integration and
(creativity of
consensus
strategy,
commitment. In
organizational
learning, and
some variations in
market
the effects of
performance)
marketing
strategy-making
components on
outcomes. While
comprehensivenes
s, crossfunctional
integration, and
communication
quality increase
the creativity of
strategy, emphasis
on marketing
assets and
capabilities
impedes it. The
creativity of
strategy, in
combination with
situational
analysis,
consensus
commitment and
resource
commitment
433 | P a g e
improve
organizational
learning.
Creativity also has
a mediating role in
the relationship
between some
marketing strategy
components and
organizational
learning. It
mediates the effect
of cross-functional
integration and
communication
quality and
comprehensivenes
s and emphasis on
marketing assets
and capabilities on
organizational
learning. Finally,
comprehensivenes
s, emphasis on
marketing assets
and capabilities,
and resource
commitment may
improve market
performance, but
situational
analysis hinders
434 | P a g e
it. Further
analysis indicates
the negative
influence of
situational
analysis on market
performance only
exists in
conditions of low
environmental
turbulence.
Noble &
Mokwa
(1999)
486 marketing
Structural
The study
managers in
with vision,
Equation
Finance and
importance, scope,
Modeling
role performance
goods
championing,
of marketing
corporation.
senior
managers
management
determines
the
success
of
marketing
Mailed
questionnaires
were
used
to
collect data.
(involvement,
autonomy, and
significance),
dimensions of
commitment
(organizational,
strategy, and role
commitments),
role performance,
and
implementation
success
strategy
implementation.
Role performance
itself is influenced
by the managers
commitment to the
marketing
strategy, and to
their career roles.
However,
there is no
relationship
435 | P a g e
between
organizational
commitment and
role performance.
When marketing
managers perceive
their roles to be
significant to the
success of
marketing strategy
implementation,
their role
commitment will
increase. The
degree of role
autonomy and
involvement do not
affect the role
commitment of the
managers. In
addition, the
managers will
commit to the
strategy when they
perceive the
strategy fits with
the broader
strategic direction
of the
organization. This
commitment will
also increase when
436 | P a g e
the managers
perceive the
strategy to have
potentially
significant
consequences for
their organizations
and have crossfunctional
support.
Finally, the
support of senior
management and
the scope of
marketing strategy
do not determine a
managers
commitment to a
strategy.
Claycomb,
200 managers
Strategic
Correlation
Findings indicate
Germain, &
of industrial
marketing
Analysis
strategic
Droge
companies.
formalization,
marketing
(2000)
Mailed
organizational
formalization leads
configuration,
to better
organizational
performance. This
structure,
formalization does
customer- driven
exchange, and
configuration of a
context, and
marketing
performance
organization:
(market &
however, it
questionnaires
were
used
to
collect data.
437 | P a g e
financial)
438 | P a g e
formalization of
strategic
marketing
planning does not
determine the
relationship
between the
organizations and
their customers.
Pitt
70 managers
Personality traits
Descriptive
A significant
Kannemeye
of black-
(tolerance of
and
relationship was
owned
ambiguity, locus of
correlation
found between
companies
Analyses
personality traits
(2000)
&
in
South Africa.
Data were
collected
through
interview and
selfadministered
questionnaires
taking propensity),
of managers and
adaptation of
marketing strategy
marketing
adaptation.
strategy. Higher
intolerance of
ambiguity
correlates
negatively to
marketing strategy
adaptation. In
other words,
managers who
tolerate ambiguity
are more flexible
in implementing
their marketing
strategy than
intolerant ones. In
439 | P a g e
addition,
managers with an
internal locus of
control and greater
risk-taking
propensity tend to
adapt their
marketing strategy
to environmental
changes.
Maltz &
Kohli
(2000)
774 of
Integrating
Ordinary
manufacturin
mechanisms
Least
g, R&D,
(multifunctional
Squares
functional
training, cross-
Regression
teamwork is likely
finance
functional team,
Analysis
to reduce manifest
managers.
compensation
inter-functional
variety,
conflict effectively.
formalization,
Inter-functional
social orientation,
& spatial
proximity),
volatility. This
internal volatility,
volatility
functional
moderates the
interface, and
relationship
manifest inter-
between cross-
functional conflict
functional teams.
and
Data were
collected
through
mailed
questionnaires
Compensation
variety, and interfunctional conflict.
In other words,
when volatility is
440 | P a g e
high, manifest
inter- functional
conflict may be
reduced by using
cross- functional
teams or by
lowering
compensation
variety. Further
analysis reveals
that the
integrating
mechanisms are
differentially
effective in
eliminating
marketings
conflict with
manufacturing,
R&D, finance
departments. In
general crossfunctional teams
seem to be
effective in
reducing conflict
in all interfaces.
Compensation
variety and
formalization, on
the other hand,
appear to be
441 | P a g e
useful in reducing
marketings
conflict with R&D,
but not the
conflict with
manufacturing or
finance
departments.
Phillips,
100
Davies, &
Mountinho
(2001)
hotel
Planning process
Factor, and
The study
managers in
(participation,
Neural
indicates that
UK.
thoroughness,
Network
organizations
formalization, &
Analyses
employing
Data were
collected by
mailed
questionnaires
sophistication),
strategic
communication
marketing
planning with
perceived
product
competition, new
orientation gain
product
better performance
development,
especially for
marketing culture,
efficiency and
effective
and performance
erformance. This
(efficiency,
strategic planning
effectiveness, &
is characterized by
adaptability)
manager
participation,
planning
thoroughness,
formalization,
sophistication,
and emphasizing
442 | P a g e
new product
development.
However, planning
affects adaptability
negatively,
indicating that
formally
structured
strategic
marketing
planning may
impede innovation,
creativity, and the
success of new
product
development.
Stratis &
73 bank
Strategic
Multiple
Findings reveal
Powers
managers
marketing process
Regression
that strategic
(strategic
Analysis
marketing
(2001)
marketing
planning
planning, multiple
determines
financial
environmental
performance, while
scanning),
planning modes
strategic
and environmental
uncertainty, and
scanning
performance
individually do not
influence
performance. All
strategic
marketing
443 | P a g e
processes in
combination affect
financial
performance
significantly.
However, due to
its small
coefficient,
excluding the
multiple planning
mode from the
equation increases
the significance
value of F. Finally
under strategic
uncertainty, only
strategic
marketing
planning and
environmental
scanning have
effects on the
performance.
Barriers to the Implementation of Marketing Strategy
As discussed in the previous section, organizations that engage in strategic marketing
planning might achieve better performance than those that did not, especially in a
highly competitive and changing environment. Implementing strategic marketing
planning is a multidimensional activity, which includes information inputs and
analyses, planning frameworks and techniques and managerial behavior, amongst
other things. Some of the evidence also indicates that implementation of strategic
planning is not as straightforward as prescribed in the literature. Verhage and Waarts
(1988), for instance, pointed out that only 38% of Dutch organizations describe
444 | P a g e
445 | P a g e
strategic changes, managers should first understand the peculiar ways the
organization practises or find out the reasons - which might be perfectly good ones why employees acted in the way they did. In other words, understanding the
organizational culture provided the managers an unfolding context of inertia, and
facilitated the execution of the changes (Martin, 1993). This perspective is based on
the premise that organizational changes cannot happen unless people or members of
the organization change (Schneider, Brief, and Guzzo, 1996). Strategic changes are
only effective when they are associated with changes in the psychology of employees.
To change organizational culture is always a challenging and difficult task for the
managers.
Deshpande and Webster (1989) distinguished between organizational culture and
climate. They defined the organization culture as the pattern of shared values and
beliefs that helped individuals understand organizational functioning and thus
provided them with the norms for behavior in the organization, while organizational
climate related to an organizations members perceptions about the extent to which
the organization was currently fulfilling their expectations. The climate of an
organization is inferred by its members. Such inferences are based on the policies,
practices, procedures, and routines that they are subject to, as well as o the kinds of
behaviors that are expected, rewarded, and supported (Schneider et al., 1996).
Organizational culture and climate are interrelated. Schneider et al. (1996) believed
that culture resided at a deeper level of psychology than did climate, as culture was
concerned with the embedded values and beliefs of its members. In other words,
climate was more tangible than culture. Schneider et al. (1996) proposed that culture
could be changed through a focus of climate. Altering everyday policies, practices,
procedures, routines, and reward systems could impact on those values and beliefs of
organization members that constituted the culture. A T & T demonstrated these
changes when attempting to sell specialized services. The changing mission could not
be realized simply by sending the employee to school, or by hiring new staff. The
change was successfully implemented only as it was backed up by modifying
organizational structure and building new roles, new incentive systems, and new
reward and punishment structures into operations (Anonymous, 1980).
446 | P a g e
Moreover, Leppard and McDonald (1991) believed that a strategic marketing planning
process embodied a set of values and assumptions. It was not merely a sequential step
of actions. Organizations that successfully implemented a planning process run on
democratic principles, promoted openness and commitment to the organization, and
had a collaborative climate and a true concern for providing customer satisfactions.
This indicates that to gain a sustainable competitive advantage and to cope with
environmental changes, the implementation of the marketing planning must be
backed up by an innovative culture and climate. The term innovative culture and
climate refers to the extent to which organizations emphasize inventiveness, openness
to new ideas, and quick response decision- making (Menon and Varadarajan, 1992).
Top managers of organizations trying to implement marketing planning, therefore,
should create the culture and climate needed for the planning process. Without such
conditions, strategic marketing planning is never likely to come to fruition.
Cognitive Dimension
Another barrier to marketing strategy implementation may possibly arise from
managers' lack of knowledge about marketing strategy. Marketing managers often
interpret marketing strategy as having to do with the financial budget or sales
forecasting. Consequently many so-called marketing strategies have little or no
strategic content (Piercy, 1992). This may be the result of managers confusion
between marketing function and marketing concept, and between marketing strategy
and marketing tactics (McDonald, 1992b). Marketing concept is a philosophical
approach to managing an organization, rather than a series of functional activities.
Moreover marketing strategy differs from marketing tactics. Marketing strategy focuses
more on the quest for long term competitive advantage and consumer advantage in the
context of the organization's mission and corporate goals., while marketing tactics
concentrate more on the design of marketing mix ingredients and requirements for
operating marketing programs (Jain, 1997; Wind and Robertson, 1983).
Lack of marketing skill also inhibits marketing strategy implementation. In order to
analyse their business environments, marketing managers can use a variety of
analytical techniques, such as Ansoff matrix, market segmentation, product life cycle
analysis, portfolio management, strengths weaknesses opportunities and threats
(SWOT) analysis, and profit impact of marketing strategy (PIMS) analysis. Research
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indicates that these techniques can help managers to develop strategic marketing
planning. Utilisation of suitable techniques can reduce any inclination a manager
might have towards an irrational economic approach or unstructured judgmental
processes that may be inconsistent with profit maximization, and hence can improve
the plan credibility (Piercy and Morgan, 1994). However, evidence showed that a gap
existed between theory and practice. As mentioned earlier, Greenley and Bayus (1994)
discovered that only a small number of US and UK companies could be described as
sophisticated marketing planning decision-makers. Except for this small group, few
companies seemed to use the decision-making techniques advocated in the
prescriptive literature. Similarly Reid and Hinkley, (1989) found that most of their
respondents tended to ignore the analytical technique. They did not even know the
names when questioned about their familiarity with such techniques as Ansoff matrix,
PIMS, Experience curve, and the like. This lack of utilization of appropriate marketing
techniques might cause the failure of a marketing strategy to realise its intended
results.
Problems of understanding may be the main cause of failure to use available
marketing tools. Such problems could be related to the complexity of the tools
themselves or their application. Portfolio planning models, for example, are inhibited
by difficulties in measurement of market growth rates and relative market shares.
Wind, Mahajan, and Swire (1983) identified four different definitions of market growth
and market shares. Market growth could be defined as real market growth, market
growth, forecast real market growth, or forecast real short and long-term market
growth. Meanwhile market share could be described as a companys share of the
served market, the companys share versus big three competitors, a companys share
versus that of the largest competitor, or share index. The classification of any business
into a specific portfolio position such as dog or star is very sensitive to the selection
of the measurement definition. Consequently, as demonstrated by Wind et al. (1983)
different matrix methods were likely to generate different recommendations for the
same situation.
Managers also have similar problem when applying product life cycle (PLC) analysis.
Defining the product class (market) to which the product belongs is also fraught with
difficulties. Its definition is a key point in PLC analysis. McDonald (1 992a) claimed
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that it would be pointless for the manager to draw a PLC of his/her product without
drawing a life cycle of its product class. McDonald (1992a) further suggested that both
academicians and practicing managers must understand not only the analytical
techniques themselves but also the nature of interrelationship among them. This
suggestion arose for two reasons. Firstly, misunderstanding of the techniques led to
their being misused. Secondly, there was no one technique on its own that could solve
the complexity of marketing problems. McDonald believed that some inputs could be
used in some models/techniques and outputs of one model could be used as inputs to
others. This integration of some models would of course raise another dimension of
complexity. However, the availability of computer-based expert systems could
overcome human weaknesses in dealing with complexity. McDonald and Wilson (1
999b) and Chan and Dandurand (1998) indicated that use of an expert system could
improve managerial decisions and organizational performance. They believed that this
system did not exclude the managers judgment and intuition, which were still very
important as personal inputs and control elements in decision-making. They
emphasize, however, that the managers judgment needed to be continually
augmented, refined and updated with current conditions.
Summary of Focal Literature and Its Gaps
Contingency theory is a very popular approach for research in the fields of
organization theory, strategic management, organizational behavior, and marketing
(Zeithaml et al., 1988). The theory enables researchers and managers to provide the
basis for organizational analyses, which generate possible solutions to the arising
problems. The fit between organization and its environment is the central theme of
contingency studies (Venkatraman and Prescott, 1990).
However, there was a dispute among scholars about the influence of environment on
organizations, particularly concerning matters related to the strategic role of managers
in their efforts to adapt their organizations to the environment (Astley and Van de Ven,
1983). Some scholars believed that environments determined the organizational life
and constrain the managers to exercise their strategic choices (Aldrich, 1979).
Whereas others believed that managers might still have the capacity to exercise their
power and enact their strategic choices to handle the organization in line with its
environments (Chakravarthy, 1982).
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In an effort to resolve the dispute, Hrebiniak and Joyce (1985) claimed that the
environment and the managerial choice were not mutually exclusive. The two factors
interact one another and could function as independent variables in the process of fit.
Because of this, managers might face four different situations in their organizations.
They might confront themselves with a combination of low strategic choices and high
environmental determinism, a situation, which is similar to the underlying
assumption of the determinism school. They might face a combination of high
strategic choices and low environmental determinism, a situation reflecting the
voluntarisms assumption. They might also have to deal with a mixture of high
strategic choices and high environmental determinism, or a blend of low strategic
choices and low environmental determinism. These different possibilities reflected that
organizational adaptation was a dynamic process, a process that was supported by
Miles and Snow (1994) who defined fit as a dynamic search that sought to align the
organization with its environment and to organize resources internally to support the
alignment.
Apart from the above dispute and its solution, the concept of fit also becomes the
central trust in strategy research because the main task of the managers is to develop
and utilize a strategy to fit their organization to its environment. Basically, both
studies on strategy in general and studies on marketing strategy can be classified into
two different schools: content and process (Jemison, 1981; Rajagopalan and Spreitzer,
1997). Studies in strategy content put emphasis on the exploration of external
environments influence upon the strategic choices, organizations structure, and
performance. This is understandable because most of these studies emerged from
industrial organization studies, which promoted how industries influence the strategic
choices of the organizations (Porter, 1981).
Studies in strategy content indicated that environment factors such as stability of
industry (Hambrick, 1983), technological changes (Dvir, et al., 1993), complexity,
dynamism, and hostility (Lou and Park, 2001; Tan and Litschert, 1994) determined
the strategy selected by the organizations. Studies in marketing strategy content also
revealed similar results. Burke (1984) and Cavusgil and Zou (1994), for instance,
identified that market attractiveness influenced marketing managers in setting up
their marketing strategies. While technological changes in the industry determined all
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interdepartmental
conflicts
(Morgan
and
Piercy,
1998),
and
facilitate
better
coordination of decisions throughout the organization (Menon et al., 1999). Finally, the
formalization of strategic marketing planning might likely attain superior performance
(Lysonski and Pecotich, 1992), provided that it could anticipate the unexpected and
lay contingency plans accordingly. On the contrary, centralization of strategic
marketing planning could hamper the credibility and utilization of marketing strategy
(John and Martin, 1984). It tended to create interdepartmental conflicts, which not
only lessened the quality of marketing strategy formulation and implementation
(Menon et al., 1996) but also decreased the performance of the organization (Morgan
and Piercy, 1998).
Furthermore, Noble and Mokwa (1999) identified that commitment of marketing
managers to the marketing strategy determined the success of marketing strategy
implementation. This commitment could increase when the managers perceive their
roles to be significant for the success of strategy implementation, and when they
perceived that the marketing strategy fits to the broader strategic direction of the
organization. In conclusion, studies on strategy and marketing strategy process
highlighted that the internal structural fit might facilitate organizations to attain
superior performance. However, most of these studies concentrated more on the
process of strategy formulation. They tended to overlook the process of strategy
implementation, assuming that the implementation could be straightforward (Noble,
1999). Meanwhile, Sashittal and Tarkersley (1997) demonstrated that formulation and
implementation of the strategy interacted each other to cope with the environmental
changes. They also pointed out that marketing managers must improvise their
marketing strategies and implementation to fit day-to-day market changes, and to
attain their marketing objectives.
Consistent with the important role of middle managers, especially the boundary
spanning managers, in current complex and dynamic business environment (Barlett
and Goshal, 1994; Dutton et al., 1997; Floyd and Wooldridge 1992a, 1994, 1997;
Schilit, 1987), marketing managers as the boundary spanners might provide top
management with strategic issues regarding customers and competitors.
These managers might also persuade the top management to implement marketing
concept, which posits long term customer satisfaction, not current sales volume, as
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the key factor to profitability of organization (Anderson, 1982; Drucker, 1969; Levitt,
1960). Marketing managers, therefore, must be critical and creative in implementing
their roles. Most importantly, they must be the integrators between organization and
its customers (McKenna, 1991).
However, implementing marketing concept or strategic marketing planning was not an
easy task. McDonald (1996) identified two common barriers in the implementation of
marketing planning. These included cultural and cognitive barriers. The marketing
planning was not simply a sequential step of actions. It represented a set of values and
assumptions. To execute the planning process successfully, an organization must
promote managers empowerment, encourage openness and commitment to the
organization, and advocate a collaborative climate and a true concern for providing
customer satisfaction (Leppard and McDonald, 1991). Similarly, marketing managers
must have good marketing skills and capabilities to analyze business environment.
The use of appropriate marketing techniques, such as PIMS, SWOT analysis, PLC
analysis,
market
segmentation,
could
minimize
marketing
managers
to
use
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With all the above considerations, therefore, this study investigates how external
environment and internal organization conditions may affect the formulated marketing
strategy. It also explores the important role of marketing managers in the processes of
marketing strategy formulation and implementation to gain superior performance.
454 | P a g e
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Every exchange
relation qualifies. Transactions vary in their level of uncertainty and frequency. The
greater the uncertainty and frequency, the greater the transaction costs are likely to
be. The key, Williamson argues, is the degree of ASSET SPECIFICITY High when
assets invested in a particular exchange relationship are much less valuable in other
relationships.
Simon Bounded Rationality Contracts cant possibly cover every possibility, and
people are sometimes opportunistic and lie, cheat and steal, so there is a limit where
the org is better off investing in assets than continuing to contract out.
Make or Buy decisions TCE says the greater the asset specificity involved in
producing a particular part, the more likely that part is to be made inside the
organization rather than by an outside supplier.
The M-form Multidivisional form. TCE proposes that some org forms are better than
others form their task. Williamson argued for the benefits of the M-form in large
enterprises. Williamson calls the functional organizational form the U-form divided
into departments such as manufacturing, sales, finance, etc. But at some level of size,
information overwhelms the orgs ability to make decisions. The M-form solves this
456 | P a g e
with each division having its own stand-alone departments (manufacturing, finance,
sales) with its own profit-loss responsibility.
Armour & Treece (1978) study of 28 petroleum firms, evidence for the performance
benefits of the M-form.
Difficulties with TCE: In essence, firms buy everything, so the make or buy decision
is a misstatement there is nothing special about one kind of contract or another.
Resource Dependence Theory in contrast to the rational systems approach of TCE,
resource dependence offers a natural systems perspective that highlights the
organizational politics behind choices such as the make-or-buy decision.
Resource dependence theory 3 Core Ideas:
1) Social context matters much of what orgs do is in response to the world of
other orgs that they find in themselves in.
2) Orgs can draw on varied strategies to enhance their autonomy and pursue their
interests. Similar to Cyert & Marchs description of the negotiated
environment.
3) Power not just rationality or efficiency is important for understanding what
goes on inside orgs and what external actions they take. This emphasis on
power
Pfeffer - Resource
arguments of market selection) readily explains behavior from orgs of any type,
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individuals
in
interaction
create
common
cognitive
frameworks
and
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and
given
similar
meaning
by
and
others
is
defined
as
their
supporting
(funding)
and
constraining
(regulatory/competitive)
As
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managers who were most central in their study were most likely to be found guilty in
court.
Networks are often multiplex, meaning that different kinds of relationships often
overlap.
462 | P a g e
century:
organizations
and
nation-states
are
the
dominant
organizational forms
2) Organizations and their structures shape the way we live
3) Social class, religion, family life has been shaped by large organizations
4) Major social organizations (prisons, schools, government agencies) have
adopted corporate organizational structures
5) Do organizations absorb society or are they becoming increasingly absorbed by
societies?
6) Movement of rational, hierarchical organizations (Ford) to loosely coupled
(Linux) organizations
Major Organizational Forms
Transitions from major organizational forms and movement from an industrial to
service economy:
Railroads
Helped create the emergence of stock markets and the New York Stock
Exchange
Set the tone for interaction between business elites and governments
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Manufacturing firms
Major corporations
Fortune 500 (U.S. businesses with largest revenues) as the institutional field of
big business
Major corporations have had an enormous impact on social and economic life in
the U.S.
Characteristics of corporations:
vertically integrated
multidivisional forms
professional managers
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American Exceptionalism
If more of a federal than state influence had occurred over banks and corporate
law, we might have a different system
Other countries may adopt our corporate formssome are successful and some
are not
Firm as an institution
465 | P a g e
Health care
Day care
Higher education
Social mobility is still possible while at the same time, a widening gap between
the rich and the poor continues
Discussion Questions:
Scott and Davis point out that the U.S. corporation looks more and more like a nationstate: Corporations have come to look more like states in the range of their activities,
while states have come to look more like business corporations, as both compete for
each others business.
Do you think the unique development of the corporation in the United States
has contributed to its role of providing an increased range of social services
more so than possibly the federal government? Should this be the role of the
corporation vs. state or federal government?
Can societal members depend or should they depend on the corporation to ensure the
social welfare of a society? Does a corporation want to fulfill this role?
466 | P a g e
perspectives remains with us up to this time. From the 1960s to the 1990s, a wide
range of competing models or paradigms for studying organizations were proposed,
elaborated, and, to varying degrees, tested. We have reviewed theory and research
associated with the bounded rationality perspective, contingency theory, transaction
costs,
resource
dependence,
sociotechnical
systems,
organizational
ecology,
institutional theory, and network approaches to name only the main contenders.
It is now a multiparadigm world.
We have moved from studying the micro to the macro, from studying structure to
process.
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Chapter 4
Public Budgeting
possible with introduction of efficient business and accounting practices. New York
was first state to write budget idea into its constitution.
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Before 1912, a variety of techniques were recommended for centralizing and locating
responsibility for the budget (Congress, executive, comptroller, or board). After 1912,
many reform proposals called for budget proposals from the chief executive.
Before 1912, many of the reformers wanted to take money saved by increased
efficiency and spend it on social programs and capital projects. After 1912, the focus
was on saving money to reduce the scope of government services and tax burden.
In the Taft Administration, emphasis was changed from obtaining public input into
the budget plan to requiring detailed reports from responsible administrators on what
they had already done.
NYB was founded by William Allen, Henry Bruere, and Frederick Cleveland and was
funded by donations from businessmen.
The Ideological Differences
Progressives
Conservatives
Smaller government
Cost Effectiveness
Trusted
the
public
and
its
No
trust
in
the
public
and
its
representatives
representatives
judgment.
Frank Goodnow
Frederick Cleveland
o
decrease in taxation.
In 1912, before the release of the Taft Commission report, was not
advocating a strong
executive.
they
need
to
govern
efficiently.
o
In 1913, recognized the need for the chief executive to review agency
requests and
for
implementing
policy.
The
It recommended
Clinton spurred on by
review and reformulation of agency missions, achieved greater clarity of objectives and
resulted in a better understanding of relationships between mission and outcomes.
474 | P a g e
Wildavsky notes that budgeting must provide continuity for planning, flexibility to
respond to crises, rigidity to control spending, and openness for accountability.
Process: There is no agreement on the type of process budgeting is. The literature
often speaks about a political process or an economic process. However, Schick
and Seligman (1926) have noted that budgeting encompasses so much that it has
become a social process.
Scope of Theory: budget debate centers on the scope of theory and the number of
actors to be included in the theory.
V.O. Key question: On what basis shall it be decided to allocate X dollars to Activity A
instead of Activity B?
Suggestions offered by Key:
A careful and comprehensive analysis of the budgetary process is needed, involving
answers to the following questions:
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Resource allocation processes serve to create and continuously recreate the public
organization.
Normative Theory
The problems of developing normative in a political environment are compounded in
budgeting where outcomes are direct precipitants of the clash of political values.
The organization-based approach to budget theory allows normative theorists to focus
on the organizational role of the finance official and distinctive competencies of the
profession.
The formal budget process should be open to political participation and the
underrepresented must be represented by the organization.
Descriptive Theory
Research should focus on the determinants of the elements of the budget process, as
well as the determinants of budgetary outcomes favored by political science and the
normative standards for the mix of outcomes targeted by economics.
Incrementalism Theory: Dominant budgeting method.
Rubin, LeLoup, Bozeman, Straussman and others cast aside incrementalism as a
theoretical construct. Rubin and Schick believe that as an explanatory model, it did
not describe the process well, noting that a budgetary base is not always defined.
Weaknesses of incrementalism:
o
Assumed that budgets will continue to be allocated the same way from year
to year.
Paretoif one person better off from a policy and no one is worse off, then
community as a whole is better off.
Principals contract with agents to provide public services and the primary focus
is the contract (or budget).
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The budget or contract is the central element for what connects the principal
and agent.
Issues involved in the exchange of info, unexpected results in the budget may
emerge: adverse selectionprincipal picked the wrong agent or incorrectly
identified the agents role; moral hazardagent changes his/her behavior to
where it could damage the principal.
Principals often set the policies and goals while agents implement the programs
that will address the policies and goals.
Problems:
o
BUDGET SYSTEMS
Condemned because:
Purpose:
o
Control, makes sure funds are being spent for designated activities.
Incremental approach permits funding levels for agencies be set based on either
or both houses adjustment to prior year totals or budget requests (usually at
lower figure of either house).
Problems:
o
Budget involves history but may not look back far enough.
Unit of measurementCash/Volume:
Volume
budgeting
may
be
counter-productive
in
fighting
inflation
by
Tax expenditures are forms of tax reductions (home ownerships, college tuition,
medical expenses, child tax credits) taken at source.
Agencies were to determine the place or base at which any further drop in
funding would render the agencys operations unviable.
Problems
o
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Early starts of PBB was part of scientific management. It was used in the
military. The Budget and Accounting Procedures Act 1950 expanded PBB to
civilian govt agencies.
Osborne and Gaebler published info that states were pressured into
reinventing themselves. Al Gore continued the process with Reinventing
Government after GPRA was passed.
Allen Schick stated that efforts to budget on the basis of performance almost
always fails.
Government Performance and Reforming Act (GPRA) 1993 passed to assure govt
accountability,
efficiency
and
effectiveness.
Established
performance
management framework for fed depts. Requires agency strategic plans, annual
performance plans, and annual performance reports. It emphasized formal
strategic planning with stakeholder consultation.
Program Assessment Rating Tool (PART) was initiated to provide score for
effective agencies. There was a need to use performance info for budgeting.
PART addresses or subjects all programs to establishing purpose, strategic
planning, managerial performance and establishing outcomes.
Problems
o
Govt wide perform plans got little attention from Congress so OMB
stopped developing.
BUDGETING THEORY:
Argue that govt is controlled by capitalists, or those who own the means of
production, and that they determine spending priorities to serve their own
needs.
Public choice theorists emphasize the relationship between what the citizen
taxpayers want govt to do and spend and what it actually does and spends.
The voting mechanism then provides a chance for citizens to choose among
candidates that best reflect their own spending priorities.
that displays budget authority and outlays for new fiscal year as if all programs
and activities were carried on at the same level in the new fiscal year).
HIERARCHY THEORY:
Argues that top-levels of the executive branch make decisions about broad policy
issues, judge the environment, and pass that info down through the budget office to
the agencies before they make their requests.
KEY (1940) The Lack of a Budgetary Theory. Posed the key question in
budgeting:
On what basis shall we allocate X dollars to activity A instead of activity B?
LEWIS (1952) He is a RATIONALIST.
We can use science to determine how to allocate resources. The problem, Lewis
argued, is not that we lack theory, but that we lack facts.
It can be shown that the problem in government arises out of a lack of firm
numbers rather than out of the lack of a method.
For X level of funding, Y level of service can be provided. The cost of a thing is
the amount of other things we must give up for its sake.
LINDBLOM
(1959)
INCREMENTALISM,
MUDDLING
THROUGH,
MUTUAL
ADJUSTMENT OR BARGAINING.
Argued that what KEY sought (a theory) and what LEWIS found (better facts)
were prescriptive, not descriptive.
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POLICY is made at the margins, but not through the application of marginal
utility theory. It is a system of successive limited comparisons among a finite
number of alternatives.
Wildavsky warned against the zeal of reform: Surely it is not asking too much
to suggest that a lot of reform be preceded by a little knowledge. (Best way to
summarize this cycle of American politics).
OPPORTUNISM Beyond the apparently linear logic of the public sector and the
nonlinear logic of the private sector, ONE OTHER way of thinking exists in
Wildavskys strategy for budgeters Opportunism.
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Two enduring features of budgeting practice that emerged in the past century:
Incremental budgeting reflects Americans preference for incremental policy
change. The traditional line-item format provides financial accountability.
When Americans trusted the private sector more than the public sector, budget
reform was centered on cost control and improved efficiency. When Americans
turned to government to solve problems the private sector could not, budget
reform was centered on programmatic effectiveness.
Budgeting theory has shifted with political cycles like a pendulum: On one end
is concern for the public interest and social justice, on the other end is concern
for private interest and economic prosperity.
Changes in our orientation toward govt (either obstacle to the public good or
agent of the public good) fuels the desire for change in the budget process. The
starting point for budget reform is ALWAYS a constant THE TRADITIONAL,
LINE-ITEM, COST-CONTROL BUDGET. We may dress it up in different ways
486 | P a g e
Nothing that followed the New York Bureau of Municipal Researchs LINE-ITEM
BUDGET was as important to the profession as IDENTIFICATION OF COST,
and nothing remains as useful in what we think of as accountability, either in
the financial or political sense.
Schick & Seligman (1926) Budgeting encompasses so much that it has become a
SOCIAL PROCESS.
KEY & WILDAVSKY believe that budgeting equals a full-blown theory of government,
and is a supremely POLITICAL PROCESS.
SCHICK Congress institutionalized incrementalism in the form of the current
services budget
PRINCIPAL-AGENT THEORY: Principals and Agents manage information and both
may act in their own self-interest.
Moral Hazard Agent that works for Principal may change behavior to
such an extent that it damages Principal.
Pareto-Optimal Solutions If one person is better off and no one worse off, then
community is better off.
FORRESTER (2001) Public Choice Theory and Public Budgeting: Implications for
the Greedy Bureaucrat.
Public Choice Theory says self interest and the free market explain why people (and
bureaucrats) make the decisions they do. Public Budgeting is different but can learn
from Public Choice Theory.
OSTROM- Supported Public Choice Theory.
MANAGEMENT IS KEY
PLANNING is KEY
LEWIS
AND
LINDBLOM
form the
incrementalism as theory. They feel that it should be the basis of theory because the
process dominates reality.
LEWIS notes that recent budgetary reforms such as ZBB and PPBS have NOT altered
the use of a base figure and increments.
RUBIN, BOZEMAN STRAUSSMAN and others cast aside incrementalism as a
theoretical construct.
RUBIN & SCHICK believe that as an explanatory model, INCREMENTALISM does
not describe the process well, noting that a budgetary base is not always defined.
BUDGET REFORM MOVEMENTS:
HALACHMI (1997) Reform is not a process that is based on reasoning or objective
rational analysis. In democratic and open societies, govt reform is principally about
forging a new popular consensus on national or governmental objectives.
JACKSONIAN ERA (1829-1872): PRIVATE REGARDING
Laissez-faire economics were still orthodoxy It had been the founding principle of a
commercial republic.
Budgeting was simply accounting for revenues and expenditures.
States took the lead in financing the railroad boom early on. However the economic
panic of 1837 caused several states to default on their bonds.
PROGRESSIVE ERA (1873-1921): PUBLIC REGARDING
Depression struck in 1873 and lingered through the 80s only to hit harder in 1893.
Citizens hurting and very aware that great wealth was accruing to the titans of
industry.
industry.
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New role of govt. redefined from an environment where private interests could flourish
to protecting the public from big business.
Municipal Reform Movement (1870s)
Response to over-expansion after the Civil War and a recession in 1873.
Focused on limiting costs by examining departmental estimates and buffering
government from demands by using comptrollers and/or boards, by requiring
agreement among several officials and in some cases by requiring taxpayer approval.
The single executive model fit the activist progressive era better. The NMLs model
charter (budget template) advocated the mayor proposing a budget to the council,
which could reduce it but not increase it.
ACT TO REGULATE COMMERCE 1887 Created the ICC INTERSTATE
COMMERCE COMMISSION
Congress gave ICC authority to investigate complaints against the railroads.
Research Bureau Movement (1906) Bureaus of Municipal Research, National
Municipal League & the New York Bureau (1907)
Dahlberg (1966) Bureau founders believed that wasteful, ineffective government
could not serve democracy well.
Bureaus were non-partisan and independent, committed to a scientific method of
administration patterned after the private sector and focused on efficiency and
economy (Dahlberg).
Bureaus researched and documented conditions that needed government action and
they surveyed cities to find the most effective form of government.
They devised and spread budget reforms that emphasized goals, costs and public
involvement.
Schick (1966) notes that the NYB tried to walk the line between the reform agenda
and the more management-oriented efficiency goal and ultimately chose control.
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COMMISSION
(1949):
Commission
found
glaring
weaknesses
in
BUDGETING
More
data
in
budget
process,
EFFICIENCY
ORIENTED.
Idea for performance budgeting started in local cities.
Basic idea was to adopt a budget based on functions, activities and projects. It would
enable mangers, agency heads, elected officials and citizens to have some insight into
the costs associated with govt activities.
Gave detailed breakdowns of unit costs and agency outputs. Emphasis on integration
of program information and budgeting.
PLANNING-PROGRAMMING BUDGETING (PPBS) (1961) Instituted by DOD.
Focus on EFFECTIVENESS, results and on multi-year planning.
Competing expenditures are evaluated on their marginal benefit to the program
objective.
Started in the Defense Department.
Hailed as a way to integrate planning and budgeting by using systems theory and
cost-benefit analysis.
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department head.
MBO failed to establish itself as a viable budgeting activity.
CONGRESSIONAL BUDGET AND IMPOUNDMENT ACT (1974)
Prior to this Act, Congress never examined or voted on overall spending, revenues or
fiscal policy.
Culmination of 30 yr effort to give Congress more influence on budget.
Provided Congress with House & Senate Budget Committees and the CBO.
Spurred by Nixon impoundment actions
Lasting effect pendulum swinging back in direction of legislative control.
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ZERO-BASED BUDGETING (ZBB) (1977) Focused on the base rather than annual
review.
1981.
These reforms were UNSUCCESSFUL due to inconsistencies with political nature of
budget process and because the workload and paperwork requirements were
overwhelming.
THE GRACE COMMISSION (1982) Reagans private sector survey of government
operations FINDS WIDESPREAD INEFFICIENCIES IN THE FEDERAL GOVERNMENT.
DEFICIT-BASED BUDGET REFORMS:
GRAMM-RUDMAN-HOLLINGS (GRH) 1985- Focused on reducing the deficit and
balancing the budget.
SEEKS TO BALANCE THE FEDERAL BUDGET BY MANDATING ACROSS-THE-BOARD
CUTS OVER A PERIOD OF YEARS.
Spurred by large federal deficit ceiling raised for first time to $2 trillion
Focused on guarantee of specific outcome and SINGLE YEAR budget projections.
BUDGET ENFORCEMENT ACT (BEA) 1990- Amended the GRH Act to require that
new spending be balanced by new taxes or spending cuts.
3 Changes 1) Annual budget target eliminated. 2) Limits on discretionary spending
thru 1995, and 3) PAYGO new enforcement process.
RESULTS GRH unsuccessful. BEA was able to constrain some actions of Congress
but did not reduce deficits due to unforeseen large increases in mandatory spending
(Medicaid & Medicare)
The CHIEF FINANCIAL OFFICERS ACT (1990) Requires federal agencies to create
a CFO position to oversee agency finances.
GOVERNMENT PERFORMANCE RESULTS ACT GPRA (1993) Requires agencies
to justify their budget requests on the basis of the results or outcomes to be achieved.
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Large scale changes (i.e. PPBS) only progress as political system allows.
For the rest of the BUDGETING REFORM TMELINE see article: Kelly, Janet (2005) A century of public
budgeting reform: The key question
Remnants of Reforms:
Budgets are now more focused on the FUTURE than before PPBS
Appleby (1957) Classic Article The Role of the Budget Division modified the
control idea.
Control in this context did not mean guarding against misappropriation of public
funds (as it did in the Progressive movement); however as a check on spending.
Appleby argues that some sort of equilibrium is reached when no director is able to get
everything he wants.
It was in this era of optimism undergirded by confidence in rationality and science to
bring about optimal decisions that Lindbloms 1959 essay appeared.
LINDBLOM (1959)
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Argued that what KEY sought (a theory) and what LEWIS found (better facts) were
prescriptive, not descriptive.
POLICY is made at the margins, but not through the application of marginal utility
theory. It is a system of successive limited comparisons among a finite number of
alternatives.
WILLOUGHBY (1918) The Movement for Budgetary Reform in the States.
Member of TAFT Commission 1912 which called for a national executive budgeting
system. (Origin of movement for adopting a federal budget).
Influenced the BUDGETING AND ACCOUNTING ACT of 1921.
Budget Reform involves:
In as early as 1899, NML had a draft municipal budget plan Mayor submits
budget to Council.
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KEY & WILDAVSKY believe that budgeting equals a full-blown theory of government,
and is a supremely POLITICAL PROCESS.
Schick & Seligman (1926) Budgeting encompasses so much that it has become a
SOCIAL PROCESS.
SCHICK (1966) The Road to PPB: The Stages of Budget Reform.
Chronicled the development of budgetary theory from the era of accountability and
control (line-item budget) to performance budgeting with its emphasis on managerial
efficiency, to PPBS, which stressed objectives, planning, and program effectiveness.
SCHICK stated: Efforts to budget on the basis of performance almost always fails.
SCHICK (1969) System Politics and Systems Budgeting
PROCESS AND SYSTEMS POLITICS:
Process Politics - The activity by which BARGAINS ARE STRUCK AND ALLOCATIONS
NEGOTIATED or rules of the game for the decision of budgetary matters.
Process Politics centered on pluralistic decision making, viewed to maximize a Pareto
model.
System Politics Unlike Process politics, is concerned with the OUTCOME or
RESULTS, not the activity of deciding.
Systems Budgeting manifests itself in the form of PPBS budgeting systems which are
concerned with results and outcomes more than anything else.
Schick argues that Process Politics dominated the literature through the mid 1960s
because resources were plentiful.
RUBIN & SCHICK believe that as an explanatory model, Incrementalism did not
describe the process well, noting that a budgetary base is not always defined.
Irene RUBIN (1992) Budgeting: Theory, Concepts, Methods and Issues.
Writers
on
budgeting
do
not
agree
on
common
assumptions
and
recommendations
In the U.S., state and local budgeting differs significantly from federal budgeting
(size, scope, variety of functions performed by the public sector, openness of the
budget process, etc.
Argue that govt is controlled by capitalists, or those who own the means of
production, and that they determine spending priorities to serve their own
needs.
Public choice theorists emphasize the relationship between what the citizen
taxpayers want govt to do and spend and what it actually does and spends.
The voting mechanism then provides a chance for citizens to choose among
candidates that best reflect their own spending priorities.
INCREMENTALISM:
HIERARCHY THEORY:
Argues that top-levels of the executive branch make decisions about broad policy
issues, judge the environment, and pass that info down through the budget office to
the agencies before they make their requests.
RUBIN First, budgeting theory strongly emphasized rationality and getting the most
from each dollar; then a second school grew up to refute the maximizers, arguing that
very little rational decision making went on; and the current literature argues for a
variety of positions in between.
RUBINs Budgeting Concepts:
Shifting locus of power in budgeting processes Executive vs. Legislative, TopDown vs. Bottom-Up.
Program budgets allow officials to clearly choose between priorities, but does
not provide a way of evaluating the relative efficiency or effectiveness of a
program.
We have rejected the extremes of decision making models that postulate either
economic rationality or bounded rationality, but we have barely begun to map
out the real territory that lies between the extremes.
Each of the major efforts at budget reform has given us new ideas and new
techniques, and we have incorporated them into our budget processes.
management and science could advance the general welfare, budget process was
reformed to be more rational and scientific. When Americans thought that there was
much more important work for govt to do, the budget was reformed to be more
programmatic. When Americans lost faith that govt action could solve difficult social
problems, the budget process was reformed to incorporate elaborate justifications for
program expenditures. When Americans believed that govt had become an obstacle to
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prosperity, the budget process was reformed to hold bureaucracy accountable for
outcomes.
Changes in our orientation toward govt (either obstacle to the public good or agent of
the public good) fuels the desire for change in the budget process. The starting point
for budget reform is ALWAYS a constant THE TRADITIONAL, LINE-ITEM, COSTCONTROL BUDGET. We may dress it up in different ways (performance measures,
program evaluations, cba), but THE TRADITIONAL BUDGET IS OUR TOUCHSTONE
OVER TIME.
Nothing that followed the New York Bureau of Municipal Researchs LINE-ITEM
BUDGET was as important to the profession as IDENTIFICATION OF COST, and
nothing remains as useful in what we think of as accountability, either in the financial
or political sense.
WILDAVSKY (1964/84) The Politics of the Budgeting Process
Was the best expression of INCREMENTALISM.
A DESCRIPTIVE THEORY OF
BUDGETING.
BUDGETING IS POLITICAL CONGRESSIONAL INFLUENCE IS VERY IMPORTANT.
BUDGETING REFORM IS POLITICAL SYSTEM REFORM.
A NORMATIVE THEORY OF BUDGETING IS POSSIBLE, BUT VERY DIFFICULT.
WILDAVSKY (1969) Rescuing Policy Analysis from PPBS.
NO ONE KNOWS HOW TO DO PPBS!
PPBS planning and analytical functions are not compatible with budgetings basic
aims.
WILDAVSKY - Budgeting must provide continuity for planning, flexibility to respond
to crises, rigidity to control spending, and openness for accountability.
KEY & WILDAVSKY believe that budgeting equals a full-blown theory of government,
and is a supremely POLITICAL PROCESS.
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1937
Caiden, Naomi
1981
Public
Budgeting
Amidst
Uncertainty
and
Instability
Uncertainty and stress must be taken into
account
in
budgeting.
Cleveland,
Frederick
1918
Forrester,
John
2001
for
the
Greedy
Bureaucrat
market,
Public budgeting is
Luther POSDCORB
1937
Planning,
organizing,
staffing,
directing,
reporting, budgeting
Harding,
1921
Warren
1940
is
applied
economics---allocating
scarce resources
The budget must reflect the publics interest
Keynes,
John
1936
Money
Keynesian Theory
Lewis,Verne
1952
Lindblom, Charles
Osborne, David
Ted
1992
1959
1974
The
Intellectual
Crisis
in
American
Public
Administration
He supported public choice theories
Rubin, Irene
1990
Schick, Allen
1966
reform
expenditure
from
control
line
to
item/strict
performance
1912
Wildavsky, Aaron
1964/84
is very important
Budget reform is political system reform
A normative theory of budgeting is possible but
very difficult
Redistribution is behind all budget decisions
His later writings were less incrementalismoriented
1969
Theories/Reforms of Budgeting
Line Item (incremental)---1921
Performance---1940s-50s Hyde:
Program Budgeting---1960s
Little evaluation
Robert McNamara brought it from Rand Corp to Dept of Defense under LBJ
Rational approach
ZBB---1977
Results matter---GPRA---MBO
Entrepreneurial budgeting---2000
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Enterprise Architecture
Enterprise architecture is an agency-wide framework for incorporating business
processes, information flows, applications, and infrastructure to support agency goals.
Entitlement
An entitlement program is one in which the federal government is legally obligated to
make payments or provide aid to any person who meets the legal criteria for eligibility.
Examples include Social Security, Medicare, Medicaid, and Food Stamps.
FAIR Act
The Federal Activities Inventory Reform (FAIR) Act of 1998 requires federal agencies to
submit annually to OMB an inventory of all activities performed by federal employees
that are not inherently governmental in nature (i.e., that can be performed by the
private sector). After OMB review, the agency must send a copy of the inventory to
Congress and also make it available to the public.
Federal Debt
Debt Held by the Public The cumulative amount of money the federal government
has borrowed from the public and not repaid.
Debt Held by Government Accounts The debt Treasury owes to other accounts
within the federal government. Most of it results from the surpluses of the Social
Security and other trust funds, which are required by law to be invested in federal
securities.
Debt Limit The maximum amount of federal securities debt that may legally be
outstanding at any time. It includes both the debt held by the public and the debt held
by government accounts. When the debt limit is reached, the government cannot
borrow more money until the Congress has enacted a law to increase the limit.
Fiscal Year
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The fiscal year is the federal governments accounting period. It begins on October 1
and ends on September 30. For example, fiscal year 2003 begins on October 1, 2002
and ends on September 30, 2003.
Full-time Equivalents (FTEs)
Civilian employment in the Executive Branch is measured on the basis of full-time
equivalents. One FTE is equal to one work year or 2,080 non-overtime hours. For
example, one full-time employee counts as one FTE, and two half-time employees also
count as one FTE.
Gross Domestic Product (GDP)
GDP is the standard measure of the size of the economy. It is the total production of
goods and services within the United States.
Human Capital
Human capital refers to the education, knowledge, skills, and competencies of the
personnel of an agency.
Mandatory Spending
Mandatory
spending
is
authorized
by
permanent
law
rather
than
annual
appropriations. An example is Social Security. The President and the Congress can
change the law to change the eligibility criteria and thus the level of spending on
mandatory programs, but they dont have to take annual action to ensure the
continuation of spending. See Discretionary Spending .
Offsetting Collections and Offsetting Receipts
Offsetting collections and offsetting receipts are monies that are deducted from
outlays, rather than counted on the receipts side of the budget. They are often paid in
return for providing goods or services. For example, payments the Postal Service
receives for stamps are offsetting collections.
Off-Budget
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By law certain programs, such as Social Security and the Postal Services, are
accounted for separately from all other programs in government and are accorded this
separate treatment.
On-Budget
Those programs not legally designated as off-budget.
Outlays
Outlays are the amount of money the government actually spends in a given fiscal
year.
Pay-As-You-Go
Created by the Budget Enforcement Act (BEA), pay-as-you-go refers to requirements
that new mandatory spending proposals or tax reductions must be offset by cuts in
other mandatory spending or by tax increases, to ensure that the deficit does not rise
or the surplus does not fall. See Budget Enforcement Act.
Performance-based Budgeting
Performance-based budgeting separates programs that work from those that do not. It
allocates budgetary and human capital resources by comparing historical and
expected future performance levels with the full cost of producing desired program
outcomes as defined in the agencys strategic goals and objectives.
Receipts
Receipts are the collections of money that result from taxes and other government
activity. Examples of receipts include income taxes, excise taxes, and customs duties.
They do not include collections from the federal governments business-like activities,
such as the entrance fees at national parks. Business-like collections are subtracted
from total spending to calculate outlays for the year.
Surplus
A surplus is the amount by which receipts exceed outlays in a fiscal year.
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Trust Funds
Trust funds are federal government accounts set up by law to record receipts and
spend them for specified purposes.
Unified Budget
The unified budget includes receipts from all sources and outlays for all programs of
the federal government. It is the most comprehensive display of the governments
finances.
Fiscal policy- Collectively, all federal government policies on taxes, spending, and
debt management: intended to promote the nations macroeconomic goals, particularly
with respect to employment, gross national product, price level stability, and
equilibrium in balance of payments. The budget process is a major vehicle for
determining and implementing federal fiscal policy. The other major vehicle for
determining and implementing federal fiscal policy. The other major component of
federal macroeconomic policy is monetary policy.
Capital Budget- A budget that deals with large expenditures for capital items
normally financed by borrowing. Usually, capital items have long-range returns and
useful life spans, are relatively expensive, and have physical presence (for example,
buildings, roads, and sewage systems).
Current Services Budget- An executive budget projection that alerts the Congressespecially the Congressional Budget Office, the budget committees, and the
appropriation committees- to anticipate specific revenue, expenditure, and debt levels,
assuming that current policy is unchanged. It also provides a baseline of comparison
to the presidential budget.
Authorizing Legislation- Substantive legislation that sets up or continues the legal
operation of a program or a program or agency, either indefinitely or for a specific
period of time, or that sanctions a particular type of obligation or expenditure within a
program. Authorizing legislation is normally a prerequisite for an appropriation. It may
place a limit on the amount of budget authority to be included in appropriations acts
or it may authorize the appropriation of "such sums as may be necessary." In some
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any
procedure
for
expressing
the
relationship
between
different
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of
prosperity.
For example,
the
unemployed
receives
unemployment
compensation; in recessionary times they may eventually receive welfare and food
stamps as well.
Balanced Budget Act of 1985-the Gramm-Rudman-Hollings Act, one of three major
laws passed between 1974-1992to cure the budget crisis. The provisions of each law
were complex and ineffective. It was established deficit reduction targets for specific
fiscal year. The law left major loopholes such as funding the bail-out of the 1980s
federal budget failures has meant the collapse of budget regularity, the encouragement
of deceitful accounting practices, a premium on gimmicks that produce short-term
improvement but do not ease the structural problem, strained relationships between
the president and Congress, lessening the effective leadership of the president,
Congressional congestion and frustration, overloading the ability of the political
leaders to reach an effective solution, crowding out other important national concerns,
and insufficient resources to respond to emerging issues and priorities.
Budget and Accounting Act of 1921- provided for a national budget and an
independent audit of government accounts. The law specifically required the president
to submit a budget, including estimates of expenditures, appropriations, and receipts
for the ensuing fiscal year. The new legislation created the Bureau of the Budget (BOB)
in the treasury department. This strengthened the role of the president. The Bureau of
the Budget was later moved to the Executive Office of the President and ultimately
became the Office of Management and Budget in 1970.
Bureau of the Budget- The Bureau, when directed by the president, shall make a
detailed study of the departments and establishments for the purpose of enabling the
president to determine what changes (with a view of securing greater economy and
efficiency in the conduct of the public service) should be made in (1) the existing
organization,
activities,
and
methods
of
business
of
such
departments
or
embodied in a report or reports to the president, who may transmit to Congress such
report or reports or any part thereof with his recommendation on the matter covered
thereby. The bureau creates the presidents budget. Agencies were required to submit
their estimates and supporting information to BOB and were allowed no contact with
Congress. Thus ensuring the presidents power.
Office of Management and Budget- (OMB) the major implementer of fiscal policy
once decisions are made by Congress and the president. An office of the president set
up in 1970 in succession to the bureau of the budget (founded in 1921) which is
responsible for preparing the executives budget for presentation to Congress in
January each year. After examination by the House and Senate committees, a
concurrent resolution on the budget is announced by April 15 to be followed by
legislation by May 15. Once the budget is passed, the OMB supervises and controls its
administration and provides data on program performance.
Budget Enforcement Act of 1990- part of three major laws between 1974-1992 to
cure the public budget crisis. This law sets targets within categories.
Progressive Tax-A tax whose rate rises as income or expenditures rises. The principle
examples of these taxes are on personal and corporate incomes. Progressive taxes aim
to achieve a more equal distribution of income post-tax than pre-tax.
Flat Rate Tax- An income tax which is at the same rate for every level of income. The
justification for a tax of this kind is its simplicity and lack of disincentive effects
inherent in some forms of tax progression. However, a flat rate tax is likely to be unfair
burden on low-income groups if the rate at which it is levied is high.
Monetarism- A modern revival of the quantity theory of money, making use of modern
neoclassical economics. It regards the money supply as the most important
determinant of aggregate money income and reasserts the relevance of price theory of
economics. In practice, most monetarists use the gradualist approach of aiming for a
rate of monetary expansion, which will achieve long-term price stability. This school is
associated with economist, Milton Friedman.
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Sequestration- 1. Spending cuts in the federal budget imposed under GrammRudman-Hollings Law. 2. Temporary seizure of assets under a court order, e.g. of
union funds under British employment legislation.
John Maynard Keynes- (1883-1946) In three books, he groped towards a theory
which was to dominate western macroeconomics for over thirty years. A member of the
Liberal party, he connected together the theories of the consumption function,
aggregate demand, the multiplier, the marginal efficiency of capital, liquidity
preference and expectations.
Keynesian Economics- Keynesian policy is most popularly regarded as the use of
national budget deficits to maintain full employment. An emphasis on the importance
of the investment multiplier, an assertion that the liquidity preference schedule is
stable in the long run and unaffected by the actions of central banks and the
insistence on the major importance of fiscal policy so that money and the rate of
interest are of little importance to the management of the economy.
Laffer Curve- A graphical representation of the relationship between average tax rates
and total tax revenues which asserts that above certain average tax rate of tax revenue
will decline. The curve implies that, as there is a ceiling to the amount a government
can raise, there is a limit to the public goods, which can be provided. The theory
assumes that if the tax rate were zero, no taxes would be collected. Likewise, the
theory assumes that if the tax rate were 100 percent, no tax revenues would be
generated.
Federal Reserve System- Established in 1913, it is the system that carries out the
functions of a central bank for the United States. The original aims of the system were
to give the country an elastic currency, to provide facilities for discounting commercial
paper and to improve the supervision of banking.
Prime Rate of Interest- The rate of interest that us commercial banks charge
medium and small sized firms for borrowing. Historically, this was the interest rate the
most creditworthy customers of banks were charged but with the development of the
commercial paper market, the largest customers borrow below the prime rate.
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expenditure for a particular purpose, e.g. defense. It has to be passed by both the
House of Representative and the Senate. Annually all bills are expected to be
reconciled by a Reconciliation Bill by the end of June; if reconciliation is impossible,
then a continuing resolution is passed which permits Departments to continue at their
current expenditure levels.
Concurrent Resolution- A resolution introduced in both houses of a legislature.
Supply-Side Economics- A major U.S. school of economics which inspired the
economic policies of the U.S. under President Reagan and of the UK under Prime
Minister Thatcher. Opposing the Keynesian view that aggregated demand is central to
determining the level of economic activity, supply-siders place emphasis on aggregate
supply. Thus there has been a revival in the respectability of Says Law and a concern
for the disincentive effects of taxation. The Laffer curve has been a major innovation of
the school. The adherents of supply-side economics and monetarism often coincide.
The New Classical Economists have formalized many of their insights.
Demand-Side Economics - The opposite of supply-side economics. This theoretical
framework holds that "demand" creates its own supply and views consumers to be
(rather than producers) the central actors in an economy. Demand-side economics
includes the work of John M. Keynes and the monetarist theorists.
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corporations and governments, that year ends on September 30th of each year. For
the rest of us, those years ends as the physical year ends, on December 31st each
year.
What do we mean when we use the term accrual basis for accounting? Accrualbased accounting means that sales are recorded when the sale occurs; it doesnt
matter when the money is actually received. For many government agencies, the
accrual based accounting system has never been used, but thanks to fact that
governments and other public sector entities are using private sector type financial
statements, there may be a shift in accounting methods, even for the government.
There are basically two forms of accounting methods: cash and accrual. Cash based
systems are great if your income is below one million, and you dont have problems
collecting for your products or services. Well, by that definition alone, many of todays
businesses should not even consider the cash based accounting methods.
What benefit does accrual based accounting provide? Actually, quite a few if you
happen to be a mid-sized business and you need to keep an accurate picture of your
companys profitability on a regular basis. A few of the additional benefits are: greater
focus on the business output, not the input; more cost-effective and efficient use of
resources; the full cost of providing your product or service can be compared across
industry standards; improved accountability and better financial management, just to
name the most common.
What benefit does the government hope to gain, since profitability isnt an issue? This
method of accounting also provides the business with a better perspective of
management performance and results. What does that mean for government? Its a
new viewpoint in comparing how our government measures up against private sector
businesses, and produce better management and efficiency from the public sector of
the business world.
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changes daily is challenging at best. To that end, this paper will address the following
question: Is it realistic to assign a theory to defense budgeting?
The method used to explore theories applied to defense budgeting and proposed
defense models is a literature review and comparison of the effectiveness of each
proposal. An effort was made to obtain literature both pre and post 9/11/01 to reflect
more recent changes in national defense structure.
literature from both domestic and international sources in an effort to approach the
analysis of this topic from an unbiased perspective.
V. O. Key challenged the world for a theory of budgeting in 1940. Has anyone or any
one theory risen to the challenge? Incrementalism has correctly, yet retrospectively
described defense budgeting for specific time periods. However; incrementalism itself
has been discredited as a legitimate theory. PPBS and PPBES are still running strong
in defense budgeting according to Jones and McCaffery in their 2005 publication.
Multi-year budgeting would greatly enhance the functionality of PPBES; however this
has yet to be realized. Budgetary trade-offs are a realistic sign of limited resources. If
resources were unlimited, then trading one service for another would not be
necessary. Although budgetary trade-offs in the defense department are realistic and
necessary, the idea of a trade-off does not constitute a budgetary theory.
September 11, 2001 did not impose any earth shattering changes on defense
budgeting theory, since it can be argued that there was not a theory in place to start
with. Joyce (2005) sums up this topic nicely by stating that since 2001 the budget
outlook has worsened, the process of defense budgeting has not changed, and
Congress still fails to approve a budgets in a timely manor. This almost unrestricted
access to funding in the defense department in the form of supplemental
appropriations has made a mockery of any attempt to create a valid theory of
budgeting that could accurately provide control yet accessibility to funds when
needed.
Public preference
does hold a strong influence over with defense spending, however public preference is
reactionary and does not constitute a theory of defense budgeting.
Nonlinear
Elliott, 1992). Proposed defense budgeting theories are weak at best, and do not stand
the test of time (replication). It is this authors conclusion that a functional budgeting
theory for the federal defense department has not been applied up to this point.
Further, with the current structure of the federal budgeting system, a defense
budgeting theory is not realistic.
Abstract
Is it realistic to assign a theory to defense budgeting? This question may surprise
many, who assume formal structured budgeting is necessary for any agency or
department to function. While the author is not disagreeing with the necessity for
accountability, the question is whether the current accountability formats are
functional. This paper will explore past and current defense budgeting methods as
well as options, such as supplemental appropriations, that were designed to be a
safety-net in times of dire need and have more recently become routine as a way to
appropriate funds more quickly.
decision making.
Introduction
The Department of Defense is responsible for coordinating national security threat
assessment, long- and intermediate-range planning and programming with annual
budget formulation and execution (Jones and McCaffery, 2005). Defense budgeting
has been highly studied and remains controversial. The most effective and efficient
way to allocate funds and distribute them in a timely manor in an environment that
changes daily is challenging at best. To that end, this paper will address the following
question: Is it realistic to assign a theory to defense budgeting?
528 | P a g e
studied on the same topic and the results may be entirely different. Appropriations
indicate budgeting authority and outlays describe what funds are actually spent.
Prior to the 1974 Congressional Budget and Impoundment Reform Act, appropriations
and outlay data was not reliably or consistently available (Wlezien and Soroka, 2003).
The office of Management and Budget has retained data on defense appropriations
and outlays since 1976.
using national defense outlay data, claiming that it does not accurately reflect defense
expenditures.
Brauer (2004) claims that the U.S. National Income and Product
Accounts is a better reflection of defense spending, but lacks full disclosure by not
including the defense departments portion of interest payments on the accumulated
federal debt. The delays and discrepancies between appropriations and outlays in the
defense budget calls into question the utility of the budgeting process to respond to
defense needs.
Method
The method used to explore theories applied to defense budgeting and proposed
defense models is a literature review and comparison of the effectiveness of each
proposal. Most of the literature is from the mid 1970s to present, with the exception
of the 1964 and 1966 works of Wildavsky and Davis et al. An effort was made to
obtain literature both pre and post 9/11/01 to reflect more recent changes in national
defense structure.
529 | P a g e
opinion as to what path defense budgeting should follow to render it functional and
effective.
Results
Theoretic and Historic Literature
The first challenge for a general budgeting theory was proposed in 1940 by V. O. Key.
Wildavsky and Davis et al. (1966, 1974) answered this dare with incrementalism as
the budgeting theory. Incrementalism itself has been discredited as being applicable
to budgeting by Rubin (1988) and Berry (1990).
Yet, Kanter (1972) reports that Congress rarely changed the Presidents
defense requests by more than 2% during FY1960 FY1970 and supports the idea
that incrementalism was at hand. Incrementalism has been documented as recently
as FY2006 in Schulers 2005 publication on Biodefense budgeting. Kiel and Elliott
(1992) reviewed defense outlays from FY1963 to FY 1990 and illustrated a lack of
coherence to the incremental budget theory, even up to the 10% level. This study calls
into question the timing of Kanters study, since it covered only ten fiscal years,
compared to the twenty-eight fiscal year records studied by Kiel and Elliott.
The Department of Health and Human Services (DHHS) and the Department of
Homeland Security (DHS) are the primary recipients of defense funds, but they are
also distributed to the Environmental Protection Agency (EPA) and the Department of
Agriculture (USDA). The incremental cost doctrine (part of the Budget Enforcement
Act of 1990) required the Department of Defense (DOD) to report only the incremental
costs of carrying out contingency or emergency operations. (McCaffery and Godek,
2003) This resulted in a lowering of supplemental appropriations requests, as small
requests were incorporated into other programs.
reported, then depending on the data source reviewed, it could very well appear that
incrementalism was at hand.
Overall defense efforts in the form of policy choices led to citizen dissatisfaction of the
defense plans during the 1960s. According to Kanter (1972), Congressional influence
over defense policy manifested in two ways:
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(1) Congress simply could make nontrivial dollar changes in the Presidents budget
request, and (2) these budget changes might be attributable to Congressional policy
concerns and program preferences rather than to other motives, especially a desire
simply to reduce the level of defense spending.
These methods address both the fiscal impact and Congressional motives for defense
budgeting. Congressional power can implement or prevent defense policies, directly
affecting budgetary needs.
defense policy shapes defense budgeting, Carter argues that defense budgeting shapes
defense policy, and Domke et al., (1983) take yet another approach that the budgetary
process does not facilitate priority setting.
The political impacts on defense budgeting are especially apparent in the 1980s
through the 1990s. After the Vietnam War, defense spending fell substantially. The
Regan administration increased defense spending with the help of a newly Republicancontrolled Senate. Defense spending increased from just over $50 billion in 1980 to
over $100 billion in 1987 (in constant 1995 dollars) (Goyal et al., 2002).
Federal
budget reforms in the late 1980s held defense spending to around $100 billion. By
1996, the figure had dropped to under $50 billion, with the fall of the Berlin wall in
1989 and changing presidential party control to the Democrats.
PPBS and PPBES
The Department of Defense was responsible for allocating almost half of the
discretionary portion of the U.S. federal budget in FY 2005 (Jones and McCaffery,
2005). That totals is expected to be just over $2.5 trillion for the 5 year period of FY
2004 2009. Planning, programming, budgeting systems (PPBS) has not been studied
specifically how it relates in the defense department, according to Jones and
McCaffery (2005), because it is too complex and it is not comparable or relevant to the
systems already established in other departments.
The DOD had chosen to minimize management control (the process where managers
assure the efficient and effective use of resources) in lieu of planning.
DOD
The purpose of
PPBES was to stress execution and replace an annual budget cycle, two-year
programming cycle, and six-year planning cycle with a singular four-year resource
planning and decision cycle.
incorporate time for evaluation, the effects of program based budgeting may
sometimes not be seen for many years. The main intent for PPBES was to transfer
power, allowing the program to drive the budget, instead of the other way around,
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received and approved, budgets remain the same as the previous year for the four year
cycle.
Jones and McCaffery (2005) contend that the DOD would be better able to
respond than most if not all other departments of the federal government, if Congress
were to recognize, accept and implement multiple year budgeting.
Defense Budgeting and Trade-offs
Domke et al. (1983) identify the following three categories of trade-offs as they relate to
defense budgeting:
Long-term trade-offs: trends in the defense share of national resources (or budgets)
that are negatively related to trends in welfare spending;
Short term trade-offs: yearly changes in which defense expenditures are negatively
related to changes in welfare spending;
Discrete decision-point trade-offs: explicit choice of central decision makers to spend
more for defense at the expense of social programs, or vice versa.
Domke et al. (1983) and Mintz and Stevenson (1996) addressed the guns versus butter
trade-off debate, exploring the theory that increasing spending in one area requires a
decrease in spending in another. Domke et al. (1983) did not find any indication of
welfare spending acting as a trade off for defense spending in four countries with the
exception of wartime and postwar reconstruction.
term trade-offs affecting welfare spending only exist in special circumstances. The act
of a direct budgetary trade off of one program against another was found to be rare or
nonexistent in democratic governments, according to Domke et al. (1983).
This does not discount Mintz and Stevensons (1996) suggestion of an indirect
relationship between defense spending and the economic resources of civil society as
follows; Budgetary decisions have economic consequences; economic performance
has an effect on government allocation decisions, therefore an indirect link may exist
between guns and butter. The idea of an indirect link is difficult to disprove, since
resources are limited, any diversion to a defense focus will limit the availability of
those resources to society as a whole in the long run.
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Budgetary trade-offs do exist, whether direct or indirect, and the defense of our nation
is held in the eyes of the public as a priority responsibility of the government. There
are situations where the needs of national defense can create bottlenecks in the
production of public goods, since any resource in short supply that is diverted to
defense will be temporarily unavailable for the private sector or lower priority public
programs. Mintz and Stevenson (1996) contend that dollars are more effective when
spent on civilians in this modern welfare state.
The relationship between defense expenditure and economic growth is even less clear.
According to Goldsmith (2003), other states spend proportionately more on defense
than democracies do. Military expenditure is used to measure the defense effort, or
military effort of a nation. Goldsmith (2003) found the average defense burden to be
2.75% of the Gross Domestic Product (GDP) of all studied states. North and South
America were found to spend significantly less of their nations GDP on defense when
compared to European states. Not surprisingly, the defense burden was found to be
an integral part of both the domestic political economy and the international
environment.
relationship between defense spending and GDP spending. Gerace (2002) did not find
any evidence showing GDP spending running counter-cyclic to U.S. military defense
spending; however non-military expenditures did show this counter-cyclic relationship
to GDP growth rate.
expenditures are used as a fiscal policy tool and have a positive impact on economic
growth (Gerace, 2002).
military expenditures take human resources and capital away from emerging industry,
placing domestic advancement on hold during times of conflict.
Defense Budgeting post September 11, 2001
Prior to the terrorist attacks in 2001, large surpluses existed in the federal budget as a
result of the Clinton administration. No model or theory of defense budgeting existed
then or exists now to predict the financial outcome of such an attack. Large deficits
now exist where surpluses were expected to be. This illustrates the inability of any
budgeting theory to accurately forecast for defense budgeting. As reported by Joyce,
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(2005) competition for funding between national defense and domestic government, in
the form of trade-offs, has existed since World War II.
Joyce defends three points in the 2005 analysis of post-9/11 defense budgeting. First,
since 2001 the budget outlook has worsened.
budgeting has not changed. Third, in light of the failure of Congress to approve a
budget in a timely manor has placed the process at a critical juncture and may result
in budgeting at the federal level being rendered irrelevant. Since 2001, Congress is
more likely not to challenge Presidential defense budgeting proposals.
Financial
forecasts have been made by the Office of Management and Budget (OMB) and
Congressional Budget Office (CBO) indicating a deficit of close to two trillion dollars by
2007, four trillion less than their prediction made in January of 2001 (Joyce, 2005).
Even in January of 2001, 9 months prior to the terrorist attacks, the deficit prediction
was off by four trillion dollars.
prediction abilities with budgeting in general, and specifically defense budgeting. This
is a worst-case scenario example of how the environment can affect the best laid
plans.
Joyce (2005) explains the difference in defense budgeting pre and post 9/11 in the
following way:
After 1998 (and continuing until approximately 9 AM eastern time on September 11,
2001), this target was replaced by a consensus that the budget should be balanced
excluding the surpluses in the Social Security funds.
consensus, and the lack of agreement means that the budget process is operating
without a notional budget constraint.
Joyces statement reflects both the governments and societies priorities when it comes
to defense spending in an era of global terrorism. This statement also brings up the
point of budget constraints. If limits on overall spending are enforced, then trade-offs
will increase as unpredictable or unforeseen events continue to occur and require
funding.
reprogrammed, but some circumstances can require such large financial support, the
only an additional appropriation can meet this need.
Supplemental appropriations
helped to finance some of the 50 major disaster missions of the U.S. navy from 1990
to 1997 (McCaffery and Godek, 2003).
foreseen spending. The fact that terrorism and national defense spending is unable
to be accurately predicted during a fiscal budgeting cycle is an easy argument to
make.
The 1990 Budget Enforcement Act went a step further by setting spending caps. With
this new rule, supplemental appropriations could only be approved with a matching /
offsetting spending reduction or revenue increase (McCaffery and Godek, 2003). The
exception was for dire emergencies when appropriations would be made and applied
to the deficit.
The dire emergency clause was instituted every year from 1990 to
1999, when the overall defense supplemental expenditures netted $86 billion dollars
over recessions (McCaffery and Godek, 2003). Supplemental appropriations tend to be
approved more quickly (average 4 months) than normal appropriations bills (average
10 + months). That makes supplemental appropriations a much more attractive route
to take when funding is needed.
The 1990 Budget Enforcement Act affected defense budgeting by requiring pay-as-yougo budgeting techniques. This theory of take-from-one to pay-for-another also allowed
the use of supplemental appropriations with the dire emergency clause, so nothing
really changed for the defense department. During this time, efforts were made to cut
537 | P a g e
spending in other areas, but if funds were needed for defense, supplemental
appropriations remained available. This is not to be construed as an open wallet for
the Department of Defense.
funding half of the requested amount, asking DOD to assist with their own financing.
Not all actions in budgeting are ethical. McCaffery and Godek (2003) report that in
1992 $314 million up to $2.1 billion in 1997 of regular appropriations was classified
as a dire emergency for the purpose of evading spending cap restrictions.
In the
1970s, prior to spending caps, Congress and the President utilized supplemental
appropriations to fund mandated programs. The change to dire emergency spending
only was an effort to gain more control over federal budgeting. Due to the nature of
supplemental appropriations, Congress and the President usually are relying on rough
estimates of what will be required to help or fix a specific issue. This figure may be
enough, but often fails to incorporate long-term effects of disaster and defense
problems.
Public Preference
Eichenberg and Stoll (2003) argue that citizen desires or public preference has a
strong influence over defense spending decisions. They claim that public opinion is
the most consistently significant influence on changes in defense spending. This can
be seen in election cycles such as the current Presidential campaigns. Defense efforts
and funding are a top rated topic for determining political candidate preference. The
candidates positions on defense funding have been used both as a positive for that
candidate and a negative for their rivals.
Eichenberg and Stoll (2003) found that in the United States and Europe, public
opinion did not favor defense spending that increased more rapidly than non-defense
program spending. Public opinion reacts to governmental policies and the environment
in a rational and systematic way, unlike the erratic reactions speculated by early
scholars (Eichenberg and Stoll, 2003). The problem with the generalized statement of
the public reacting in rational and systematic ways is that the root cause of the
reaction is not predictable. After the terrorist attacks of 9/11/01, the public was in
favor of increasing defense spending. This is a rational response to achieve the goal of
538 | P a g e
being proactively involved in attempting to prevent future attacks. The attack itself
was not planned for and funding was not readily available to deal with that situation,
although the public was willing to forgo deficit control and immediately respond to this
threat.
Wlezien (1995) offered the thermostat metaphor, stating that if the publics threshold
was crossed (high or low), citizen demands will reflect the opposite for several years.
The thermostat analogy was supported by the findings of Eichenberg and Stoll (2003),
who note that public opinion reacted in a significantly negative manor to unpopular
changes in defense spending, with the exception of France. Goldsmith (2003) agrees
with the impact of public preference, but only in peacetime. According to Goldsmith
(2003), international factors as well as public preference have a large influence on the
defense budget in times of war. As mentioned earlier, Carter (1989) identified local
economic effects as being a significant indicator for defense budgeting during the
Reagan administration, supporting the public preference viewpoint.
Nonlinear Dynamics
Kiel and Elliott (1992) akin budgeting to nonlinear dynamics in the natural sciences.
This is an opportunity to view a social process (defense budgeting) as an open system,
strongly affected by the environment, public preference and politics. The application
of nonlinear dynamics is not new to the social sciences. Studies have successfully
applied its principles to evaluate economic equilibrium cycles, business cycles,
competitive behavior among firms, the arms race, patterns of urban growth and
noncompliant social behavior (Kiel and Elliott, 1992).
Nonlinear systems are identified by a constantly changing relationship between the
variables, such as the constant changes seen in the politics of defense. There are four
temporal classifications of nonlinear systems. Stable systems are grounded to a fixed
point and can be temporarily predicted by a mathematical equilibrium. Oscillating
systems exhibit a smooth patterned cycle, although the amplitude is unpredictable
and will vary. Unstable systems are characterized by un-patterned behavior. Finally,
random systems are completely devoid of patterns and can only be described as
chaotic. Changes in nonlinear systems produce exponential effects on the structural
539 | P a g e
Defense
budgeting does not occur by inserting numbers into a formula and approving whatever
an equation spits out. The reality is closer to Carters 1989 statement that Presidents
shape their defense requests with an eye to what they think Congress will approve.
Members of the authorizations or appropriations committees adjust presidential
requests to reflect congressional concerns as much as possible bearing in mind the
possibility of a veto. This statement sums up the politics of defense budgeting, but
could be extended to budgeting in general. This rule of thumb approach exhibits the
true reality of defense budgeting and policy.
How can a true defense budgeting theory exist in an environment of uncertainty and
politics? Carter (1989) also found that U.S. senators more consciously calculate the
economic consequences of their votes on non-procurement decisions than they do on
procurement matters.
open to the public and will reflect back on the senator more than procurement
decisions. This also supports Ripley (1969), who proposed the salience hypothesis,
which states that party leaders are more successful on issues that are not in the
public spotlight.
Dolan (2002) assessed how accurately top level bureaucrats represent the viewpoints
of the public. This was analyzed using a survey given to both groups asking their
opinion on funding levels of various federal departments and programs, including
defense. The assumption is that non-elected public administrators are cut from the
general population; therefore an unbiased viewpoint should reflect that of the
citizenry. The concern is whether or not public administrators are more supportive of
funding programs for which they are employed in an effort to preserve their own selfinterests. In fact, the overall findings were that public administrators favored a 6.9%
increase in defense spending, compared to a 17.5% increase requested by the general
population. When looking only at defense department public administrators, a 15.1%
increase was favored, compared to the 17.5% of the general public. This shows that
employees of the defense department favor funding their own interests more so than
other public administrators, but still less than the general population. Dolan (2002)
found that bureaucrats overall were more likely to advocate decreased government
spending than the general public.
dynamics in the relationships between variables over time in nonlinear systems can
541 | P a g e
lagged as much as 40 billion dollars, taking up to two years for outlays to catch-up to
appropriations. Fluctuations in appropriations were found to mimic public preference
(Wlezien and Soroka, 2003), however the delayed outlays may not be sufficient to
address immediate needs.
Brauer (2004) disagrees with the notion that defense budgeting has a viable theory.
Brauer (2004) argues that all defense budgets and studies are being conducted with
flawed data.
between appropriations and outlays. Brauer (2004) acknowledges that fact, and goes
a step further proclaiming that all sources of reliable data are incomplete and
misleading. Line item budgeting comparisons exclude many relevant categories, such
as $571 million allocated to biodefense in FY2004, categorized under Health. Brauer
(2004) found that comparing federal budget-based national defense outlay data with
the U.S. National Income and Product Accounts resulted in a difference of nearly $100
billion dollars for 2003. Even the U.S National Income and Product Accounts data
lacks full disclosure by not including the defense departments portion of interest
payments on the accumulated federal debt.
Palmore and Melese (2001) view national defense through game theory. This is an
accurate viewpoint in many circumstances, such as the Cold War, the Iraq War and
even terrorism in general to a certain extent. The problem with game theory, as it
relates to defense budgeting, is its conditional response to situations. Given a goal of
minimizing risk to the nation (possibly by maximizing deterrence) with the lowest cost
to taxpayers, how does one project a budget for such a theory? The U.S. position will
depend on the actions of others (which, in game theory, will depend on U.S. action).
Palmore and Melese (2001) provide an example of the potential for a missile attack
during the Cold War. Even with the limited choices of Hi and Low for both the U.S.
542 | P a g e
and USSR, which provides a matrix of four budgeting alternatives on that one topic
alone. The current U.S. budgeting cycle begins over a year prior to actual funding
allocation and outlays, rendering the system inflexible to rapidly changing needs,
which would be needed in game theory. Game theory may be a realistic and viable
defense strategy in a more flexible system, but it is not conducive to accountability
and forecasting in defense budgeting.
Conclusion
V. O. Key challenged the world for a theory of budgeting in 1940. Has anyone or any
one theory risen to the challenge? Incrementalism has correctly, yet retrospectively
described defense budgeting for specific time periods. However; incrementalism itself
has been discredited as a legitimate theory.
PPBS and PPBES are still running strong in defense budgeting according to Jones and
McCaffery in their 2005 publication. Multi-year budgeting would greatly enhance the
functionality of PPBES; however this has yet to be realized. It is interesting to note
that PPBS was declared ended (Pilegge, 1992), yet according to Jones and McCaffery
(2005), the highly related PPBES remains the current operating theory for defense
budgeting. PPBES is not proving to be a very effective option, given the quantity of
literature devoted to defense budgeting trade-offs and supplemental appropriations.
Budgetary trade-offs are a realistic sign of limited resources.
If resources were
unlimited, then trading one service for another would not be necessary.
Although
budgetary trade-offs in the defense department are realistic and necessary, the idea of
a trade-off does not constitute a budgetary theory.
September 11, 2001 did not impose any earth shattering changes on defense
budgeting theory, since it can be argued that there was not a theory in place to start
with. Even if PPBS can be considered the leading theory at the time, it did not change
to PPBES until 2003.
stating that since 2001 the budget outlook has worsened, the process of defense
budgeting has not changed, and Congress still fails to approve a budgets in a timely
manor
543 | P a g e
Public preference does hold a strong influence over with defense spending,
however public preference is reactionary and does not constitute a theory of defense
budgeting.
Nonlinear dynamics is the closest to being able to explain defense budgeting; however
it is presented as a qualitative method of retrospectively analyzing defense budgets,
not as a predictor of future events or theory. Nonlinear dynamics is a paradigm, a way
of thinking or viewing a system, not a theory that can guide decision making. A key
element argued by Kiel and Elliott (1992), is that the fundamental element of
traditional theory building involves prediction, an unobtainable goal when one is
dealing with a nonlinear system involving changing relationships of the players
involved.
A rule of thumb or heuristics approach to defense budgeting is a practical viewpoint
that fits most situations. The problem with heuristics is that it is more of an action
decision-making guide rather than a budgeting theory. Heuristics are valuable as a
strategic guide in an unpredictable environment, but is not useful in determining
future funding allocations.
544 | P a g e
Theory building involves prediction, which is not always possible in the world of
defense.
Elliott, 1992). Proposed defense budgeting theories are weak at best, and do not stand
the test of time (replication).
restricted to a specific time period and set of conditions. Overall, the limitations of
such a group of studies outweigh any practical significance.
It is this authors
conclusion that a functional budgeting theory for the federal defense department has
not been applied up to this point. Further, with the current structure of the federal
budgeting system, a defense budgeting theory is not realistic
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whose residents are people like themselves who want the same things from
government and who are willing to pay similar amounts of taxes to get them.
Openness of taxation implies that the scope of government and the expense would be
controlled if people clearly saw how much they were paying in taxes.
Despite some obvious strengths, public choice theory also has some weaknesses. This
theory tends to be deterministic, and has difficulty explaining change over time. The
theory ignores the importance and existence of altruism and the existence of group
goals that are different from individual goals.
dual fashion. First, theory strongly emphasized rationality and getting the most from
549 | P a g e
each dollar; then a second school grew up to refute the maximizers, arguing that very
little rational decision making went on. The current literature argues for a variety of
positions in between.
Budget - A detailed plan, based on estimates of needs and resources, for financing an
enterprise or government during a definite period, which is prepared and submitted by
an executive to a representative body.
Evolution of Public Budgeting
The U.S. Constitution did not include mention of a budget, but it required the
president to provide a regular statement of receipts and expenditures.
Budgeting first introduced in the Progressive Era (1890-1920) in response to
corruption and declining morality.
Municipal reformers turned to scientific methods and professionalism to eliminate
corruption.
The National Municipal League (NML) and the New York Bureau of Municipal Research
(NYB) called for uniform bookkeeping
NYB was formed by Frederick Cleveland and others, and was funded by businessmen.
Municipal reformers were the first to introduce budgeting in the U.S.
Budgeting practices in municipalities eliminated the worst forms of corruption.
STATES Wisconsin 1912 adopted a budget measure as a joint venture between
Governor & Legislature.
New York was the first state to write the budget idea into its constitution.
Reform Proposals:
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Before 1912, various techniques were recommended for centralizing responsibility for
the budget. After 1912, most reform proposals called for budget authority to rest with
the chief executive.
TAFT COMMISSION (1910) Suggested that the President should prepare and
present a budget to Congress, became foundation of Budget and Accounting Act of
1921. The commission reasoned that the constitutional privileges pertaining to the
receipts and expenditures and the state of the union authorizes a definite, wellconsidered budget.
1913 Taft submits a budget to Congress. It was not acted upon.
1921 Budget and Accounting Act
Established BOB and GAO. Each dept. to have a budget officer.
Created a centralized executive budget.
1932 Economy Act Pushed for installation of accounting forms, systems &
procedures.
1939 Reorganization Act
Moved Bureau of Budget (BOB) from Treasury dept. to the Executive Office of the
President.
BOB changed to OMB.
1974 Budget and Impoundment Act
Restricted impoundment authority.
Created CBO Congressional Budget Office to counterbalance OMB.
Failed to stop budget deficits.
1985 - Gramm-Rudman-Hollings (Balanced Budget and Emergency Deficit Control
Act)
Focused on reducing the deficit and balancing the budget.
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Management is KEY.
Focus on Inputs and Outputs
Decision units Activities of agency
Incremental policy-making style
PPB
PLANNING is KEY
Scope is on Inputs, outputs, effects and alternatives (managers submit alternative
budgets)
Decision units purposes of agency/mission
Centralized cuts Congress out of process.
ZBB
TBB Target based budgeting (Rubin). Revenue projections need to be accurate.
PBB - Performance-Based Budgeting (See Session 7 handout from Agatha & Amy)
Results-oriented. Focus on outcomes and accountability
Strategic Planning, Management and Goal Attainment (established by top admin.)
Scope Inputs, Outputs AND Outcomes
GPRA (1993) is the legislation that led to the adoption of PBB at Fed level.
Agencies must come up with: Strategic plans, goals, performance reports
Unlike PBB, Congress is included in the process.
Clinton told Gore to perform the Nat. Performance Review.
countries that were calling their new budgeting system New Public Management.
Review resulted in recommendations out of which came GPRA, out of which came
PBB.
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Reform Movements See Rubin (1994) in Session 2 Handout from Mark & Jill.
Municipal Reform Movement (1870s):
Response to expansion after Civil War, corruption. NML - Large cities were important
for experimenting with different budget systems.
Research Bureau Movement (1906):
Reflected the Progressive spirit Executives/Professionals running govt.
Desire of
shifts in location of power: executive versus legislative, and top-down versus bottomup.
The overall direction of change during this century (20th) has been toward more
executive and more top-down budgeting.
Line-item budgets seem almost deterministic. They tell little if anything about the cost
or efficiency of programs provided.
These types of budgets are becoming rare
555 | P a g e
Program budgets allow public officials to clearly choose between priorities and express
them in the budget, but they do not provide a way of evaluating the relative efficiency
or effectiveness of programs.
Performance budgeting has had many difficulties, and while sometimes implemented
has seldom worked as billed, and has often been modified.
Zero-based budgeting in its full-blown form requires the agencies to put all their
budget requests into decision packages, and rank order them in importance. Then the
rankings of the agencies are gathered and arranged according to criteria that make
sense at a government-wide level.
Planning programming budgeting systems were the most integrated and fullest
statement of the linkage between planning and budging, but even when the full
system is not adopted, budgets may state goals and link spending requests with those
goals.
The emphasis on linking budgeting to goals was used with the linkage of Management
by Objectives (MBO) to budgets.
Some Budget Terms:
Tradeoffs money being spent on one program or project can not be spent on another
at the same time.
Equity a broad term that also applies to taxation, but in the context of spending
choices it raises the topic of welfare economics.
making the distribution of income more equal than the market alone would create?
Accountability is government doing what the taxpayers want it to do?
Do the
priorities of the government, as reflected in the budget, reflect the priorities of the
taxpayers?
Balance means the total income has to match the total outgo, with or without
borrowing.
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precipitated them? Explain how these recent changes may/can influence the work of
public managers and policy makers.
Indeed, performance based budgeting has been a significant development in financial
management. The initial performance based budgets were developed in the 1940s as a
result of the Brownlow and Hoover Commissions. These budgets were managementoriented systems heavily focused on efficiency by relating costs to measured outputs.
In the 1960s Planning-Programming Budget Systems (PPBS) emerged emphasizing
multiyear planning, policy analysis, and program objectives focusing on effectiveness.
PPBS was discontinued in government in the 1970s during a period in which the
executive and legislative branches battled over who controlled the budget. Then in
1977, under the Carter administration, Zero Based Budgeting was implemented in the
federal government.
The GPRA
focuses managers attention on setting goals, and reporting publicly on progress made.
One of the foremost purposes of the act is to instill confidence in the public about
federal government managers ability to solve problems and meet citizen-taxpayers
needs.
To implement the GRPA, each agency must first develop strategic plans
covering a period of at least five years. The strategic plan must include a mission
559 | P a g e
statement, outcome related measurable goals and objectives, and plans that agency
managers and professionals intend to follow to achieve these goals through their
activities and through their human, capital, information, and other resources. Those
in the agency must consult Congress and others interested in or affected by the plans:
in other words, they must consult stakeholders. The new reforms incorporate most of
the goals of the previous reforms, but they seek to achieve them through decentralized
incentives that give program managers greater authority to combine resources as they
think best but that hold the managers accountable for the results.
Performance based reforms deal widely with organization change. Keep in mind that
no other decision making system has the leverage to pressure departments to improve
program management like the budget. Also, the budget has always been the place
where everyone raises questions of the efficiency, economy, effectiveness, productivity,
impact, and results of government activities.
decisions as political popularity and the need to balance budgets are the sole reason
for budget decisions.
For managers of programs that meet their goals and objectives and otherwise exhibit
exception performance, pay-for-performance has emerged as a strategy for responding
to increased productivity of staff.
commissions and formulas for sharing savings. NOTE: For more information on the
use of merit pay, good and bad, refer to: Halachmi, A, Holzer, M. (1987). Merit pay,
performance targeting, and productivity. Review of Public Personnel Administration, 7
(Spring), 80-91.
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Q 2 : In her article treating budgeting, included within Naomi Lynn and Aaron
Wildavskys Public Administration: The State of the Discipline, Naomi Caiden
concludes that Public Budgeting is undoubtedly a discipline in the dictionary
definition of the term as a branch of knowledge or learning.
What evidence supports this assertion?
Caiden then cautions: But if the study of public budgeting is to be more than a
collection of disparate concerns, it requires stronger themes, and theories that act not
only to unify them but also to reveal the philosophical assumptions underlying
empirical description and normative proposals.
Q 3: Assess the state of the discipline of public budgeting
Q 4: In a renowned 1940 article, V.O. Key, Jr. lamented about the lack of budget
theory.
normative budget theory. In one of her numerous writings, Irene Rubin noted that
budget theory today is fragmented and incomplete.It is in the process of being
invented. Based on the work of scholars who address this issue, discuss the extent
to which the literature of public budgeting evidences theory. Assess the limitations
of such a theory of budgeting.
Q 5 : Cite the major federal financial and budget reforms of the past decade,
identifying the basic characteristics (provisions) of these reforms. Discuss the
implications that these budget reforms hold for public management at the federal,
state, and local levels. Discuss the implications of the value assumptions implicit in
these reforms vis a vis the fundamental values and beliefs which under gird public
administration.
Public budgeting in the US is about accounting and financial management; it is also
about accountability and governance.
budgets and financial reports but also information about service quality and outcomes
and in 1992 issued a Preliminary Views report on SEA reporting (Wholey and Hatry,
1992) followed by another statement in 1994 (GASB, 1994).
Federal Reform Efforts in the 1990s
One thing that popular ideas like reinventing government do, however, is get the
attention of the media and political leaders. Drawing on this attention, the
Government Performance and Results Act (GPRA) of 1993 (P. L. 103-62) was passed by
Congress. The GPRA drew upon earlier antecedents, such as a report submitted
during the Reagan Administration and a bill introduced in 1991 by Senator William
Roth that had not been enacted, but was revised and became the GPRA. (See Groszyk,
1995.) This act specifically focused attention on results and performance budgeting.
The act requires federal agencies to prepare strategic plans by 1997, to prepare annual
performance plans starting with fiscal year 1999, and submit an annual program
performance report to the President and Congress comparing actual performance with
their plans beginning in the year 2000. Due to its relatively recent passage and phasein schedule, the GPRA will obviously need some time for assessment.
As the GPRA was becoming law, the National Performance Review (NPR) was coming to
the forefront also as an initiative for Federal government reform led by Vice President
Al Gore. The NPR embraced many of the ideas of the GPRA and added more attention
to performance and results management, calling also for a move toward budgeting
based on results.(11) The New" Performance Budgeting, however, draws from earlier
performance budgeting ideas and from program budgeting/PPBS concepts as well. It
differs from those ideas in that it does not advocate crossing agency lines like program
budgeting and PPBS did, however. And, according to Mikesell (1995: 189), it does not
concentrate on tasks, activities or outputs as much as the old performance budgeting
did, rather emphasizing an outcome focus.
As a result of the activity and interest at the national level in managing for results and
performance
budgeting, both
the
General
Accounting Office
(GAO)
and the
Congressional Budget Office (CBO) have studied the reform proposals in recent years.
The CBO, in a 1993 study, Using Performance Measures in the Federal Budget
563 | P a g e
Process, concluded that performance measurement "is limited in its ability to bring
about substantial change" (1993: 44; see also Joyce, 1993). It noted, however, that
some of these limitations had nothing to do with commitment but rather with the
difficulty of measuring government performance itself, and particularly that of the
national government. The greatest obstacle it found was the identification of the
measures themselves, in large part because at the national level "so many programs
[are] influenced by other actors, including state and local governments, private
businesses, and individuals" (Congressional Budget Office, 1993: 44). In so far as
performance budgeting itself is concerned, the CBO, after studying state and local
government experience, concluded that performance measures did not appear to
significantly influence the allocation of budgetary resources. Rather, they were used
more to carry out budgets than to make decisions. The GAO (1993) came to similar
conclusions as well.
State Reform Efforts in the 1990s
State interest in the "New" Performance Budgeting in the 1990s is evident in a number
of ways. The National Governors Association (NGA), for example, published An Action
Agenda to Redesign State Government in 1993 which called for creating performance
based state government with measurable goals, such as benchmarks and performance
measures, in order to move to performance budgeting. A year later, the National
Conference of State Legislatures (NCSL) published a study entitled The Performance
Budget Revisited: A Report on State Budget Reform (Carter, 1994). Together these two
studies found interest in performance budgeting and measurement in a number of
states, including Oregon, Minnesota, Montana, Iowa, Texas, Idaho, Ohio, Florida,
Mississippi, California and Virginia, to name a few.
The NCSL, like the GAO study in 1993, found that performance measures and
budgeting had not yet attained the credibility needed to influence budget allocation
decisions at the state level, due often to constraints on time, resources and data.
Conceptual as well as political issues remain according to these studies regarding
performance measurement and budgeting. Still, performance measurement was
viewed as useful for internal agency management.
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confidence in government. Limitations have often been most severe for local
governments, especially when coupled with mandates from higher levels of government
and existing restrictions on revenue raising capability. Accordingly, local governments
have been forced to find ways to respond to this era of limits and scarcity.
Local Reform Efforts in the 1990s
Some local governments have responded by becoming entrepreneuial. One local
government in particular has received a great deal of attention for its entrepreneuial
efforts--Sunnyvale, California. Sunnyvale was the inspiration for the Government
Performance and Results Act and was cited by Osborne and Gaebler in their book
Reinventing Government. A Council-Manager city of about 120,000 people located
south of San Francisco, Sunnyvale is unique in its application of performance
measurement and budgeting at the local government level. It has a General Plan
looking 5 to 20 years into the future. The plan comprises seven elements and 20
subelements that set goals and policies for the city. Its Resource Allocation Plan is a
10-year budget to implement the General Plan. Each year the annual budget is a
performance budget that targets specific service objectives and productivity measures
linked to the larger plan. Its budget therefore is a service oriented document rather
than the traditional line-item, input oriented budget.
In many ways, this city appears to be the embodiment of the contemporary interest in
performance budgeting. Yet, observers note that it is atypical of other cities in terms of
its demographic characteristics (Lewcock and Rogers, 1988; Mercer, 1994; and "Better
Government, A Clockwork City," 1993).
On the other side of the United States is another city which has also received some
national attention for its innovative management, Rock Hill, South Carolina
(Wheeland, 1993). Rock Hill has been actively involved with strategic planning for a
number of years. And, it has also received the Government Finance Officers
Distinguished Budget Award, most recently in 1996. This national award was begun
in 1984 for outstanding budget presentations by state and local governments. To date
over 700 local governments have received the award (including Sunnyvale). Rock Hill
is smaller (population 41,600), however, than Sunnyvale and is not located in a high
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tech growth corridor. Thus it is in many ways more typical of many cities having to
struggle with a declining economic base (the demise of the textile industry) and facing
competition from nearby growth centers (in this case the Charlotte-Mecklenburg SMA
in North Carolina). Like many other cities in its population range, it has the councilmanager form of government (as does Sunnyvale, although cities over 100,000 do not
commonly use this form). Also, like others, Rock Hill has regularly sought recognition
for its financial management and budget practices. In some ways Rock Hills budget
might be what ICMA (1993) calls "Strategic Budgeting." This is a budget process that
is built on strategic planning and which uses the budget as a policy guide, a financial
plan, an operational guide, and a communications device with citizens and taxpayers.
Briefly, the budget includes all funds and addresses all organizational needs through
goals and objectives clearly stated and where possible measurable. A longer time
horizon than one year is used as well.
When one examines the fiscal year 1996 budget for Rock Hill and compares it with
previous years, for example, one notices one clear difference--there are no expenditure
line-items in the budget. Departmental expenditures are summarized in terms of
program goals, program objectives and performance measures. Thus, like a number of
other local governments, Rock Hill is shifting its focus to accountability and results.
While cities like Sunnyvale may be described as entrepreneuial, Rock Hill may be more
symbolic of what more local governments, particularly cities, are doing to respond to
revenue constraints and scarcity, namely engaging in more planning and management
improvement using what are viewed as "state of the art" techniques such as strategic
planning and strategic budgeting, or the "New" Performance Budgeting. Some evidence
exists that productivity and quality improvement efforts at the local level of
government are having some impact nationally as well, although more information
needs to be collected (Cope, 1995).
CONCLUDING REMARKS: Prospects for Budgeting in the 21st Century
Budgeting in the United States has experienced at least five emphases, starting with
control at the turn of the century, moving to management in the New Deal and postWorld War II period, to planning in the 1960s, prioritization in the 1970s and 1980s
and now to accountability in the 1990s. By all accounts the initial emphasis on
567 | P a g e
control has been successful if one interprets the adoption of line-item budgeting as an
indication of that emphasis. It appears that at least eight out of ten cities and counties
use line-item budgeting in some form today (Cope, 1995: 43). As Cothran writes:
"Although none of these efforts, such as performance, program, or zero-base
budgeting, entirely supplanted incremental line-item budgeting, elements of these
reforms endure in the budgeting process of many governments" (1993: 445).
Assessing the impact of the remaining reforms becomes somewhat more difficult, in
part due to the American federal system and its diversity. In addition, there are
methodological challenges to studying large numbers of governments. Survey research
is often used and as Schick (1971) notes surveys are not entirely accurate if
exclusively relied upon when assessing budget approaches. (The CBO and GAO
studies also reflect the need for other research methods, such as case studies and
expert panels.)
One thing that most scholars and practitioners agree on is that most reforms are
oversold. Consequently, because the expectations are unrealistic, assessments
conclude that they have failed. Conclusions of general failure may not be entirely
accurate, however. Rubin (1990) makes an excellent point when she notes that budget
reforms have been more successful than many people in public administration think.
While some reforms may indeed be fads, in other cases some changes have
occurred.(12) Partially this is due to overemphasis on the federal level of government
by scholars. Innovations often begin and continue at the state and local level of
government without much fanfare.
But Rubin and Rose make another point as well that we feel needs to be emphasized.
Namely, observers may look too quickly for results. As Rose has written: "The
absorptive
character
of
government,
gradually
adapting
and
incrementally
augumenting its activities, suggests that change may more easily be measured on a
time scale congenial to a forester or a geologist than to a Congress or a White House in
a hurry" (1977: 64). Many innovations are clumsily introduced and require adaptation
(Rubin, 1990) and, ideas are frequently adapted to local circumstances and needs
(Walters, 1996). Thus, reforms or innovations have to be evaluated over a period of
time using a scale of achievement.
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If we take this longer view, it appears that budget reform is alive and well in the United
States. The federal government and many states are continuing to experiment with
program and performance information as are local governments. Professional
organizations, like the Governmental Finance Officers Association, continue to nurture
change and advancement in budget presentation and financial reporting.
Cities like Sunnyvale gain attention as they illustrate a willingness to change and
experiment resulting in the use of terms like Entrepreneurial Budgeting. Perhaps more
often, cities like Rock Hill strive to advance their decision making using more
commonly
understood
notions
of
performance
budgeting
and
performance
This document, written by, describes the progress that The Unfunded Mandates
Reform Act of 1995 has made. This act took effect on January 1, 1996, and has made
two important changes about the budgetary impact of federal mandates is provided to
569 | P a g e
and used by Congress. First, the act increased the amount of information, and as a
result, placed a higher priority on preparing state and even local estimates. Second,
this act encouraged Congress to use the information by establishing new points of
order procedures.
The Unfunded Mandates Reform Act was enacted as part of the Republicans Contract
with America. However, many governors were reluctant to support such an
amendment. They were worried that the pressure for new programs and policies would
remain constant while the budget would decrease, and the requirements for balancing
the budget would shift the cost of new programs and policies to the states. At the 1995
annual association meeting, the governors declared that the unfunded mandates
should be protected first, and the Congressional Republicans agreed.
As stated before, one of the main goals of The Unfunded Mandates Reform Act (UMRA)
was to improve the information that Congress received about the effect of federal
legislation on state, local, and tribal governments, and the private sector. Another goal
was to make it more difficult for Congress to enforce unfunded mandates on state and
localities.
The UMRA obtains four titles: Title I, Legislative Accountability and Reform. This Title,
in general, makes it harder for the Congress to consider unfunded mandates with cost
above specific thresholds.
federal agencies to review the effect of proposed regulatory actions on the state, local,
and tribal governments when the costs of that effect exceeds one hundred million
dollars. Title III, on the other hand, forces the U.S. Advisory Commission on
Intergovernmental Relations to have three reports. These reports include: a review of
the role of mandates in intergovernmental relations; a study of the measurements and
estimating issues surrounding the costs of mandates; and finally, a review of federal
court rulings to identify requirements placed on state, local, or tribal governments.
Lastly, Title IV authorizes federal courts to compel agencies to comply with the duties
outlined in Title II.
The UMRA defines an intergovernmental mandate as any provision in legislation,
statute, or regulation that would impose an enforceable duty upon state, local ot tribal
570 | P a g e
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the state and local governments of the more limited version were well below fifty
million dollars in any year.
The bill, Applying Occupational Health and Safety Standards to State and Local
Workplaces, would have changed the Occupational Safety and Health Act to make
workplace requirements applicable to the twenty-seven states where they do not
currently apply. This bill was never even considered on either the House or Senate
floor.
The Fourth bill, Securities Regulatory Reform, would have preempted state laws and
regulations regarding certain types of securities and security-related transactions. The
estimated costs of the mandates would total about fifteen million dollars annually.
This bill was later enacted into law.
The last bill constructed by the UMRA was the Immigration Reform: Drivers License
Provisions. This bill would have required state agencies issuing drivers licenses or
identification documents either to print Social Security numbers on those items or to
collect and verify the number before issuance. Those requirements would have been
effective within one year of the bills enactment. No point of order was raised against
the bill, as amended, and it was ultimately enacted into law.
Also, because of the diversity of affected entities, aggregate cost estimates were
extremely hard to make. Finally, the agency decided that it was difficult to gather
adequate data at the legislative stage of the process, because the available time was
often too short and because the likely impacts were too uncertain.
The UMRA did lead to some important changes in the estimating process. By
establishing a fifty million dollar threshold for intergovernmental mandate costs, the
act tended to simplify the job of the CBO, at least for bills with mandate costs that
clearly exceeded that level. The agencies found that one-on-one telephone contacts
were still the best tool for collecting data. They have also learned that more interest
group has increased the capacity to respond back to the CBO. The state and local
interest groups have appeared to increase their capacity to respond to the
Congressional Budget Offices inquiries. The Federation of Tax Administrators was an
extremely useful resource for the CBO.
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Just as the CBO found that the old tools were most effective, the agency also found
that the same obstacles were still the hardest to overcome. For example, separating
the incremental costs of federal actions continued to be difficult. Consequently, state
and local governments analysts have a hard time predicting how they would comply,
making it difficult for the CBO to estimate costs reliably. Before the CBO found that
state and local estimates generated little interest. If the agency did not provide a state
and local estimate for a bill, the Congress rarely asked it to prepare one. And few
controversies or questions arose about the estimates either from the Congress or from
state and local governments. The CBO operated in an environment where little
attention was paid to its state and local estimates.
That environment has changed dramatically since the UMRA has been in effect.
Representatives of state and local governments are now much more likely to approach
the CBO about mandates proposals and to assist in gathering cost data. Members of
Congress and their staff are also much more likely to request analyses of mandates
and to question the agencys methods and assumptions. As a result, the estimating
process is much more dynamic and has helped improve the quantity and quality of the
information being provided to the Congress.
What do we know About Budgeting?
There is virtually nothing of substance about how or why budgetary decisions are
actually made. Yet the opportunities for developing and testing important propositions
about budgetary decisions are extraordinarily good and I would like to suggest a few of
the many possible approaches here.
How do various agencies decide how much to ask for? Most agencies cannot simply
ask for everything they would like to have. If they continually ask for much more than
they can get, their opinions are automatically discounted and they risk a loss of
confidence by the Budget Bureau and Appropriations subcommittees that damages
the prospects of their highest priority items. We might also inquire about the
participants' perceptions of their roles and the reciprocal expectations they have about
the behavior of others. Budgetary items are commonly adjusted on the basis of mutual
expectations or on a single participant's notion of the role he is expected to play.
573 | P a g e
By its very nature the budgetary process presents excellent opportunities for the use
of quantitative data although these must be used with great caution and with special
attention to their theoretical relevance. It would also be desirable construct a theory of
budgetary calculation by specifying the series of related factors that affect the choice
of competing alternatives by the decisions makers. This kind of theory would describe
how problems arise, how they are broken down, how information is fed into the
system, how the participants are related to one another, and how a semblance of
coordination is achieved. If changes in procedure lead to different kinds of conclusion,
one would like to be able to predict what the impact on decisions was likely to be.
The Goals of Knowledge and Reform
Concentration on developing at least the rudiments of a descriptive theory is not
meant to discourage concern with normative theory and reform. On the contrary, it is
worthwhile studying budgeting from both standpoints. Surely, it is not asking too
much to suggest that a lot of reform be preceded by a little knowledge. The point is
that until we develop more adequate descriptive theory about budgeting, until we
know something about the "existential situation" in which the participants find
themselves under our political system, proposals for major reform must be based on
woefully inadequate understanding.
Perhaps the "study of budgeting" is just another expression for the "study of
budgeting"; yet one cannot study everything at once, and the vantage point offered by
concentration on budgetary decisions offers a useful and much neglected perspective
from which to analyse the making of policy. The opportunities for comparison are
ample, the outcomes are specific and quantifiable, and a dynamic quality is assured
by virtue of the comparative ease with which one can study the development of
budgetary items over a period of years.
Q 6: The budget may be viewed as an instrument of fiscal policy, as a means of
determining policy choices, and as a tool for managing the economy. Explain each of
these aspects of budgeting. In your answer, emphasize the views of the classical or
pre-Keynesian economists, Keynesian economists, neo Keynesians, the monetarists,
the public choice school of economy, and leading public budgeting scholars
574 | P a g e
Classical/pre-Keynesian
Adam Smith wrote The Wealth of Nations in 1776 --- father of capitalism
prices are set by competition in the free market based on supply and demand
Keynesian
potential GNP means the full use of the factors of production (land, labor,
capital)
is consumption
is investment
G
X-M
is government spending
is exports minus imports
Neo Keynesian
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they called for big changes in government spending, interest rates and to
counter economic cycles
in a recession they want more government spending and tax cuts to stimulate
the economy
in inflation they want less government spending and tax increases to slow the
economy down
they also use monetary policy (interest rates set by the Federal Reserve Board)
to influence the economy
Monetarists
they are also called counter Keynesians because they disagree with Keynes
and the supply of money is controlled by interest rates which are set by the Fed
Pubic Choice
politicians may claim to follow neo Keynesian policies but sooner or later they
must balance the budget
Also see Ooms, V.D., Boster, R.S., and Fleegler, R.L. (1999). Handbook of Government
Budgeting, pp. 197-226
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The Federal Budget and Economic Management, V.D. Ooms, R.S. Boster and R.L.
Fleegler
Handbook of Government Budgeting, pp. 197-226 (1999)
The question:
economic growth?
The conclusion:
policy---fiscal
(fis)
&
monetary
(mon)
policies
to
influence
unemployment (unemp), inflation (infl) and economic activity in the short term
Growth policy---using fiscal and monetary policies to affect long term changes in
productive capacity--Monetary policy---Federal Reserve actions regarding short-term interest rates to affect
the money supply
Economic stabilization---concerned with short term unemployment and inflation---2
years max
Stabilization policy---changes the level of spending and thereby changes the level of
output---this affects unemployment and inflation
Real GDP---the total value of goods& services produced in the U.S. per year adjusted
for inflation
Potential GDP---the output the economy has the capacity to produce without
increasing inflation
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If inflation and unemployment are independent --- why not pursue zero infl? --- p. 204
Probably because it would lead to severe dampening of the economy. (?)
The authors observe that most experts pursue a modest infl rate of 2-3%
Stabilization Policy
We need stabilization policy because (i) aggregate demand does not rise and fall with
full employment, and (ii) adjustments of employment and inflation to low demand is
slow.
(i) Consumer spending represents 2/3 of aggregate demand. And it shifts to reflect
changing sentiment about jobs, wages, etc.
spending changes (e.g., the reduction in military spending after WWII led to a
recession despite private growth)
Wages are sticky downward---they adjust slowly---so when demand falls, wages
remain high leading to involuntary unemployment
Inflation can only be reduced by large reductions in demand---p. 206
This requires higher unemployment and lower output---measured by the sacrifice ratio
(the fraction of a years potential GDP that must be sacrificed to reduce inflation 1 %--about 4%.)
Using Fiscal Policy to Stabilize the Economy
When the economy weakens, the deficit automatically increases and when the
economy improves the deficit automatically shrinks.
Discretionary changes in fiscal policy are different.
between the structural deficit (which assumes high employment and is caused by the
structure of tax and spending programs) and the actual deficit is called the cyclical
deficit. (p. 207)
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If the economy is weak and GDP is below potential the actual deficit will be larger than
the structural deficit. If the economy is strong and GDP is above potential, the actual
deficit will be smaller than the structural deficit.
Automatic stabilizers dampen the effect of changes in the budget. These include:
Taxes
Unemployment compensation
Food stamps
Medicaid
The idea that the government could (and must) step in and
stimulate the economy (refined Keynesian theory) was very popular from the mid 40s
to the late 60s.
But this optimism was overtaken by events:
Stagflation in the late 60s---high infl + high unempl (the misery index which
hit 21% in 1980)
Grain shortages
Unemployment and inflation are independent in the long run. If government policies
hold unemployment below its natural (or
and demand of labor, inflation will go up continuously. This was the cruel dilemma--by trying to help, the government was making things worse!
We learned that forecasting future economic conditions is very difficult
The doctrine of rational expectations---stabilization policies by the gov wont work
because individuals will adjust their behavior in anticipation of them
Time lags between awareness of the problem and ultimate effects of the policy
Inside time lags---within the policy making process
Outside time lags---in the economy, itself
Monetary policy---short inside lags---the Fed meets every 6 weeks long outside lags--the impact of interest rate changes on the economy may take a long time
Fiscal policy---long inside lags because legislation must be passed (the pol change may
not take effect until into the next economic cycle!) short outside lags because spending
changes quickly affect the economy
Politics play a big role in fiscal policy
Globalization has made fiscal policy less effective (e.g., expansionary fiscal policy
raises demand so interest rates go up; this attracts foreign capital causing the value of
the dollar to go up making imports less expensive which causes demand to fall)
Discretionary fiscal policy ceased being effective as an expansionary tool in the 80s
and early 90s due to large structural budget deficits. Monetary policy---actions by
the Fed---became the way to stabilize the economy (p. 213)
Thus, the main role of fiscal policy has now become economic growth rather than
stabilization
Growth Policy
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Economic growth looks back (to the sharp slowdown in productivity in the 70s) and
forward (to the impact of the baby boomers retiring).
Productive capacity is determined by how efficiently and effectively the factor inputs of
Labor hours
Human capital---education and skills
Physical capital---machines and structures
Can be combined to produce finished goods and services. Thus, the technology which
is used to bring them together is most important factor.
(Some economists argue knowledge is most important---?)
A big question is why has productivity dropped so much in the last few decades?---p.
215
Growth policy includes strategies to increase physical capital, human capital or
technology.
Using Fiscal and Budget Policies to Increase Economic Growth
Fiscal policy---impact private capital formation (it addresses the size of the deficit
thereby
affecting
the
amount
of
national
savings
See p. 217---public dissaving has increased in recent decades due to large deficits
In the last decade (87-97) public saving increased
But the outlook for the deficit and improved saving remains
unfavorable due to the explosion in retirement and health care as BBs retire
This proved to be true---9/11!
Budget Policies
National output, federal expenditures, federal tax policy and federal budget policies
focus on two things:
Consumption today OR investment to enhance growth in the future.
Budget policies can affect growth in different ways:
1. Redirect public expenditures from consumption to investment (e.g., highways,
aviation, water, environmental programs---a concern is that programs of this type are
politically motivated)
2. Tax policies (e.g., investment tax credit, capital gains, housing---two problems:
excessive demand may result from these policies causing interest rates to go up AND
these policies may reduce public saving because money has gone into private saving--the lesson is that the budget policy may requires a coordinated fis pol to be effective)
3.
Focus on human capital --- education and training are very important in
economic growth
4.
efficient
Social returns from R & D = 50%
Private returns from R & D = 20-30%
For this reason the private sector under-invests in R & D.
584 | P a g e
The public sector should increase its investment in R & D---especially in basic
research
5. Non budgetary instruments also affect economic growth (e.g., regulatory and
trade policy)
Coordination of Fiscal and Monetary Policy
The fiscal policy of the government affects the monetary policy adopted by the Fed
much more than the Feds policy affects the government.
They are theoretically independent but the Fed watches the government very closely
and they frequently are coordinated to pursue a single purpose (to expand or restrain
the economy).
When more than one goal is pursued at the same time, this coordination is complex.
(The Tinbergen Rule---pursuing multiple policy goals requires an equivalent number of
policy instruments)
An expansive fiscal policy (with large deficits) requires a tight monetary policy (with
increasing interest rates) to hold down inflation-p. 222
This describes late 2004 and early 2005!
Seven point increases in short term rates in 6 months
The president, congress and the Fed have different policy goals
The Fed usually worries more about the long term so it is the inflation fighter
Politics is always involved
See p. 223---Has the traditional role of Republicans and Democrats been
reversed?
Conclusion
1. The budget can be an effective tool to promote long term economic growth.
585 | P a g e
2.
activity.
3. Discretionary fiscal policy is not effective to bring about short term stabilization
(it may even be counterproductive) so
M. Wolkoff
See p. 182--- 1989 to 1995 unemployment rates in the 10 largest metropolitan areas
varied greatly---above and below the national average each year
See p. 183---this model shows statistically that local unemployment rates ARE
impacted by changes in the national unemployment rate
And that the rates in different SMSAs are impacted differently
For example, a 3 % increase in the national UR will cause a 6% increase in Boston but
only a 1% increase in Atlanta.
See p. 185---shows employment shares by industry in the 10 largest metropolitan
areas which lead to different experiences as national economic conditions
Linking Economic Cycles to the public Fisc
State and local fiscal fortune is directly linked to the national economy.
When times are good, people are working and the revenue coffers are full.
When times are bad, people need more help from the gov but coffers are empty.
Some jurisdictions are more sensitive to cyclical changes in the national economy
due to differences in their
1. Industrial structure
2. Expenditure responsibilities
3.
Composition of their revenue sources (e.g., income taxes are very sensitive to
changes in economic conditions while property taxes are less sensitive)---see p. 187
for breakdown
For years the conventional wisdom was that state and local govs had to choose
between growth (income taxes) or stability (property taxes) ( ? ) --- p. 186
BUT now experts say that a combination of short term stability and long term growth
is possible. Taxes that have higher long-term income elasticities (income taxes) need
587 | P a g e
not vary more over the business cycle than taxes with lower elasticities (property
taxes).
Dealing With Budgetary Imbalance
State and local govs have a limited number of options for dealing with budget deficits
1. Pessimistic Budget Estimates
By assuming the least favorable economic circumstances, deficits due to
cyclical changes will be avoided and the budget will always be balanced. But
there will never be enough money and services will be far below what the
citizenry demands
Problems with this approach:
It gives much power to the revenue estimators
The level of services provided is less than what is sustainable (and needed!)
Surplus almost guaranteed-giving great power to the executive & incentive to
the legislature not to be conservative
The dashed line represents economic cycle
SS is a budget in structural surplus---deficits are rare due to pessimistic
forecasts
SD is a budget in structural deficit---surpluses are rare due to optimistic
forecasts
SB is a budget in structural balance---the cyclical deviations are symmetrical
2. Rainy Day Funds
A percentage of the total budget is set aside and not spent---frequently 5%
It is saved for future economic hard times
How do you decide when to add to it or to dip into it?
588 | P a g e
Executive decision
Legislative decision
Formula---e.g., Michigan (Wolkoff likes this best)
3.
Financial Legerdemain
Unsound accounting tricks---slight-of-hand
Redefine the fiscal year, or
Show revenue or expenditures in another period
These are temporary fixes ---merely putting off the problem
Move operating expenses to the capital budget
Sell assets
Use money for other purposes
automatically)
Problem with this approach---it can exacerbate local cyclical effects
Remember the impact of mundane, day-to-day decisions on the budget (e.g., leaving a
position vacant lowers the
level of services)
Endogenous Strategies
State & local govs have three generic strategies to get off the cyclical roller coaster:
1.
Revenue structure---chose sources that are less cyclically prone or that offset
property taxes)
589 | P a g e
2.
policies may work, after all because local multipliers are larger and borders are less
leaky than Musgrave thought---p. 194
3.
Alter the growth path---this is the flip side of Larkey & Smiths pessimistic
budgeting---use optimistic assumptions that the economy will grow its way out of the
cycle
Problem---this requires restraint on spending
Conclusion
These strategies for dealing with economic cycles can be applied to other challenges to
the budget, such as the need for snow removal or for police overtime.
All of these are difficult to predict and exhibit year-to-year variation in budget
requirements.
Flexibility is the key!
The Growing Fiscal and Economic Importance of State and Local Governments by R.
Bahl
Government Budgeting: Theory, Process and Politics. 3rd ed. Pp. 363-379 (1984)
State and local gov = 13% of GNP in 1981 and 50% of total gov spending
What is the proper balance between fed and state and local gov in the U.S.?
Distribution---are subnational units big enough to influence the interpersonal
distribution of income?
Stabilization---can counter-cyclical behavior by state & local gov compromise federal
macroeconomic policy?
Allocation---is state & local gov too large (thereby discouraging private investment)? Is
it too small (not providing adequate services)?
From 1942-1976 there were four major trends:
590 | P a g e
1. The state & local sector became more important in the national economy
2. Public spending shifted to health, ed and welfare (big increases in SS)
3. State & local govs became more dependent on federal transfers of money
4. State gov has become very dominant in state & local sector
Since 1976 these trends 1-3 have been reversed.
1. The national sector became more important
2. Spending moved away from health, education and welfare
See p. 366---60% of expenditure increase from1960-76 was for hew
56% of expenditure increase from 1976-81 was for hew
(Is this decrease significant? Is five years long enough?)
3. There was less dependence on federal money
These conclusions are based on measurements of employment and expenditures
From
1954
to
1980
state
and
local
gov
employment
increased
174%
591 | P a g e
Thus allocation---deciding which and how much local services will be provided and
how they will be paid for---is the proper function of subnational govs. It is also more
efficient because the preferences of local voters can be considered.
But Bahl questions this conventional thought and argues that subnational govs can
have an important impact on stabilizing the economy and in distributing income.
While subnational govs are ill-equipped to set their own growth and stabilization
policies, their reaction to national policies must be considered.
important:
Whether state & local budgetary decisions hurt or help federal stabilization
programs?
The studies on this question show mixed results.
Bahls conclusion is that the fiscal actions of state & local govs have to
be reckoned with in the formulation of national economic policy.
The
Whether federal programs which stimulate the state & local sector result in
unintended changes in the federal fiscal system?
Yes -two times in five years.
Bahl argues that state & local budgets play an important role in
distributing income
He bases this on the size of state & local gov (40% of nondefense gov
spending and 13% of GNP)
State &local gov influence distribution of income through taxes, public assistance.
(He notes that low income families have not migrated to high payment areas).
The redistributive effect of taxes is probably less than of expenditures.
What we need from the research is the net fiscal incidence that measures the
benefits of expenditures and the burdens of taxes on the distribution of income.
592 | P a g e
redistribution of income than in the U.S. and the larger governments are more
involved in social insurance and welfare.
The conclusion---the size of the government in the U.S. should be increased to
improve income distribution.
Bahl says increasing the size of government will not likely have this effect
Also the mood in the nation seems to be toward smaller government
593 | P a g e
Q 7: Other than Performance-Based Budgeting, what are the most important recent
developments in financial management?
precipitated them? Explain how these recent changes may/can influence the work of
public managers and policy makers
Indeed, performance based budgeting has been a significant development in financial
management. The initial performance based budgets were developed in the 1940s as a
result of the Brownlow and Hoover Commissions. These budgets were managementoriented systems heavily focused on efficiency by relating costs to measured outputs.
In the 1960s Planning-Programming Budget Systems (PPBS) emerged emphasizing
multiyear planning, policy analysis, and program objectives focusing on effectiveness.
PPBS was discontinued in government in the 1970s during a period in which the
executive and legislative branches battled over who controlled the budget. Then in
1977, under the Carter administration, Zero Based Budgeting was implemented in the
federal government.
594 | P a g e
The GPRA
focuses managers attention on setting goals, and reporting publicly on progress made.
One of the foremost purposes of the act is to instill confidence in the public about
federal government managers ability to solve problems and meet citizen-taxpayers
needs.
To implement the GRPA, each agency must first develop strategic plans
covering a period of at least five years. The strategic plan must include a mission
595 | P a g e
statement, outcome related measurable goals and objectives, and plans that agency
managers and professionals intend to follow to achieve these goals through their
activities and through their human, capital, information, and other resources. Those
in the agency must consult Congress and others interested in or affected by the plans:
in other words, they must consult stakeholders. The new reforms incorporate most of
the goals of the previous reforms, but they seek to achieve them through decentralized
incentives that give program managers greater authority to combine resources as they
think best but that hold the managers accountable for the results.
Performance based reforms deal widely with organization change. Keep in mind that
no other decision making system has the leverage to pressure departments to improve
program management like the budget. Also, the budget has always been the place
where everyone raises questions of the efficiency, economy, effectiveness, productivity,
impact, and results of government activities.
decisions as political popularity and the need to balance budgets are the sole reason
for budget decisions.
For managers of programs that meet their goals and objectives and otherwise exhibit
exception performance, pay-for-performance has emerged as a strategy for responding
to increased productivity of staff.
commissions and formulas for sharing savings. NOTE: For more information on the
use of merit pay, good and bad, refer to: Halachmi, A, Holzer, M. (1987). Merit pay,
performance targeting, and productivity. Review of Public Personnel Administration, 7
(Spring), 80-91.
596 | P a g e
Chapter 5
Public Policy Analysis
realized that
oriented,
multidisciplinary,
and
explicitly
normative
(i.e.,
explicitly
considering values) in their approach. Yet early on, the policy sciences were captured
by many of the heavily quantitative disciplines, which sought to bring the putatively
598 | P a g e
proven powers of the natural sciences to the social sciences. So it was not unusual
to find systems analysis, operations research, and quantitative modeling providing the
early impetus to policy research, its proponents encouraged by their widely acclaimed
successes from the Second World War. They were succeeded by welfare economists
with their particular answer to policy questions, typically framed in terms of costbenefit analysis.
As Etzioni (1988) and others have pointed out, however, their influence on publicpolicy makers has largely been ancillary, because, in their orientation towards strictly
objective analysis (e.g., Stokey and Zeckhauser, 1978), they tended to overlook
(because they could not openly include) the normative bases of politics.
Worse yet, there is a widespread implication that the policy sciences, while widely
accepted, have become instruments protecting the status quo, that their research,
insofar as it exercises independent influences on opinions about complex social
questions, tends over time to be profoundly conservative in its impact (Aaron, 1987,
p. 2). As traditionally practiced, the policy sciences have been unable to effect a shift
in the structure or process of governance, because they were widely perceived to have
been co-opted by government offices, programs, and priorities.
More Programs: On the more positive side, there has been tremendous growth in the
policy analytic community, in terms of both supply and demand. On the supply side,
hardly a major university does not now have a program to train incipient policy
analysts, with a large number of schools also offering a doctoral degree. On the
demand side, there is hardly a federal agency that does not have an analytic (or
evaluative) section as part of its organization; increasingly, similar offices are
appearing on the state and local levels.
Participatory Policy Analysis: In recent years, there has been a growing awareness
of this tension within some parts of the policy analysis community. In response,
drawing in part on the writings of the Frankfurt School (see, most notably, Habermas,
1975 and 1996), policy scientists have move to a postmodernized policy analysis
(Danziger, 1995) and, more operationally, to a participatory policy analysis (Durning,
1993). The impetus of the movement (which, to be fair, hardly represents a consensus;
599 | P a g e
Lynn, 1999) is the observation that citizens perceived their opinions were no longer
important when new programs were devised or revised, and that they were largely
being excluded from the governing process. As a result, not only were they distancing
themselves from government (that is, they viewed policy as being imposed upon them,
all the while, apparently, for them) but also it was clear that the programs being
produced without their voice were nowhere near as successful as could otherwise be
the case (deLeon, 1992).
The participatory policy analysis case is relatively straightforward: Citizens
deserve a greater say in their governance, based upon the knowledge that they are
best able to articulate their special needs. Given this voice as a basis for action,
government can be more informed and responsive (or, in many cases, more limited),
thus promoting a more involved, engaged, and, in many perceptions, (see Barber,
1984, and Mansfield, 2001), a better citizenry. The result would be an enhanced
(maybe even a good) society.
600 | P a g e
According to Encarta, in its definition of political science, "The field of public policy
involves the study of specific policy problems and governmental responses to them.
Political scientists involved in the study of public policy attempt to devise solutions for
problems of public concern."
601 | P a g e
Argues why pluralistic interest group liberalism does not fulfill the goals of the
constitution
Lowi finds fault in IGL in that like automatic regulation in economics (laissezfaire) is imperfect, so is automatic regulation imperfect in group dynamics
(pluralistic). He also finds that IGL idealizes the conception of groups.
This loss of legitimacy removes the ability to plan because it takes authority to
plan.
Lowis solution is a juridical democracy and involves clear and formal law
making from elected representatives.
Mix of ideas
Many ideas
602 | P a g e
Rational
Ordered approach
Ideal type
Definitions of policy
Policy environment
Officials
Unofficial
Political culture
Levels of politics
Iron triangle
Congressional committees
Interest groups
Model
Definition/Characteristics
Traditional PA
Theorists
Institutionalism
From:
organization
theory
PA policy view:
moderate to
weak.
Policy as institutional
output
Relationship between
structure and policy
outputs
Characteristics from
government
Legitimacy
Universality
Coersion
Questions
What impact does division
of responsibility have on
policy
What impact do levels of
government have on policy
Lowi (Moderate)
Lowis greatest
concern is the
structure of
government. Rule
of law to avoid
capture theory.
Kingdon (Weak)
Anderson (Weak)
Lindblom (Weak)
Dye (Weak)
Process
From: Political
Science or
Public
Administration
PA policy view:
moderate
Anderson (Main
Well defined)
Kingdon (Weak)
Lindblom (Weak)
Dye (Weak)
Rationalism
From: (From
closed system
business
model)
PA policy view:
moderate
Taylor
Class Theorists
Anderson
(Moderate)
Stone (Moderate)
But, her definition
is different than
traditional modern
rationalism.
Lowi (Weak)
Kingdon (Weak)
Lindblom (Weak)
Dye (Weak)
604 | P a g e
accurately.)
Incrementalism
From: Political
Science
Political model
PA policy view:
Strong
Group Theory
From: Political
Science /
Sociology
(political model)
PA policy view:
Moderate
(Pluralism)
Elite Theory
From: Political
Science
(political model)
PA policy view:
Moderate
Charles
Lindblom
The Science of
Muddling
Through
Public
Administration
Review 19:7988.
Lindblom (Main
Well defined)
Lowi (Weak)
Kingdon (Main
Well defined:
Incremental,
Mixed, & Garbage)
Anderson
(Moderate)
Stone (Weak)
Dye (Moderate)
605 | P a g e
(institutionalism).
Lowi talks of the
market and polis
as the 1st two
republics. He
suggests a return
to the
constitution.
Stone (Moderate)
From an antiposition
Dye (Moderate)
Public Choice
From:
Economic
PA policy view:
Weak
Ostrom,
Buchanan
Stone (Weak)
Dye (Weak)
Game Theory
From: Political
Science
PA policy view:
Weak
Kingdon (Weak)
Stone (Moderate)
From an anti
position.
Dye (Weak)
Systems Model
From:
Organization
theory
PA policy view:
Weak
Dye (Weak)
606 | P a g e
authoritative decisions
requiring the support of the
whole society.
Elements of the system are
interrelated
Model
Input
Black box (organization)
Output
Feedback
Within the environment
Mixed
Scanning
From: Political
Science
(political model
- Political with
attempt to
explain itself to
a rational
public)
PA policy view:
Moderate
Policy as a combination of
incrementalism and
rationalism.
This is not one of Dyes
models
Why is this different from
incrementalism?
Incrementalism requires
limited rationality. So,
mixed scanning highlights
the limited rationality
inherent. I believe I am
starting from a too
rational mindset and cant
see this one.
Incrementalism combined
with other theories that are
political would be just
incrementalism, but if it
had some rationality call it
mixed scanning. I am
getting punchy. Help me
out here.
Etzioni (?
Spelling) You
must stress
rational to me
mixed as a
main category.
Lindblom
comes close but
does not make
a strong case
for rationality.
His rationality
is just an
adoption of
some rational
practices into
incrementalism.
Kingdon (Main
Well defined:
Incremental,
Mixed, & Garbage)
Anderson
(Moderate)
Lowi (Weak)
Stone (Moderate)
Lindblom
(Moderate)
Lindblom comes
close to stressing
rationality but
does not make a
strong case for
rationality. His
rationality is just
an adoption of
some rational
practices into
incrementalism.
Garbage Can /
Primordial
Soup
From:
Organization
theory
PA policy view:
Moderate
Policy as an incoherent
mess: unclear goals,
imperfect technology,
history not understood, and
participants wondering in
and out.
This is not one of Dyes
models
Garbage Can Cohen and
March
Everything goes into a
Cohen and
March
Kingdon (Main
Well defined:
Incremental,
Mixed, & Garbage)
Kingdon has three
policy streams
that open up a
policy window:
problem, politics,
and policy.
Kingdons solution
(Political with
attempt to
607 | P a g e
explain itself to
a rational
public)
608 | P a g e
dominated until the Nixon years, when the general feeling took hold that the budget
was out of control.
Criterion of LEGALITY
o
EFFICIENCY
EFFECTIVENESS
Most policy analysis focuses on evaluating the realization of operational shortterm goals.
Policy analysts claim to generate usable knowledge, but this is false since most
policies and policy successes are short-term and one-sided (No long-term
perspective = no generalizable usable knowledge).
610 | P a g e
Everyone is in
VAN METER & VAN HORN Investigated relationship between outcomes and
initial policy decisions.
BOTTOM-UP AUTHORS:
LIPSKY STREET LEVEL BUREAUCRATS
LIPSKY justified the fact that those who have direct contact with service delivery
are important.
611 | P a g e
Control should be with central command, but should INCLUDE input from
street level bureaucrats.
The further away from street-level policy is made, the less chance for a
successful outcome.
Problem urgency
Policy expertise
Political situation:
INCREMENTALISM
The
best
known
expression
of
INCREMENTALISM
IN
BUDGETING
WILDAVSKY.
Wildavsky & Caiden note that less than 20% of the federal budget is really up
for debate, as well over half is entitlement spending.
613 | P a g e
Earlier
policy
planning
and
analysis
did
not
consider
difficulties
of
implementation.
Everyone is in
DROR Policy Gambling: Every policy is a RISK and may not work, but it is important
to TRY and Experiment.
SELZNICK (1949) The Cooperative Mechanism.
Procedures
Implementation
Administrative interpretation
Research is NOT value-neutral. You look for the data to backup your position.
Lipsky first brought the term street-level bureaucracy to the attention of the
field by pointing out that public policy is determined not merely by legislators
and managers at high levels of government but by the police officer, the nurse,
and the welfare worker (among others), who engage in the direct delivery of
services.
615 | P a g e
Lipsky writes that the decisions of the street-level bureaucrats, the routines
they establish, and the devices they invent to cope with uncertainties and work
pressures, effectively become the public policies they carry out.
Paul LIGHT (2000) in RAAD I p. 273-275 Light conducted research on the fifty
greatest achievements of federal government in the second half of the twentieth
century, based on a survey of professors of history and govt. Lessons learned:
Most federal policies were the outcome of policy making over a long period of
time (Lindblom this supports the idea that most policy making is incremental
by nature). Exceptions are breakthrough policies such as Medicare and Welfare
reform.
Light argues that we are not likely to see such bold policies as those found in the
analysis above. This is because the nations leaders are so worried about losing their
jobs that they will not take risks. Americans are so impatient for success that no
program, however well designed and justified, can outlast the early difficulties that
face so many innovative efforts. The media are so addicted to stories of government
failure that no endeavor, however noble and well designed, can survive long enough to
achieve results.
policies above are still in need of a solution (health care, nuclear war, improving air
and water quality, reducing hunger, etc.). To the extent that the nations leaders avoid
the risky issues in favor of safe rewards, the public demands instant gratification
instead of long-term diligence, and the media punishes the trial and error so essential
616 | P a g e
to ultimate impact, the list of governments greatest achievements of the next half
century will be short, indeed (Light, 2000).
The book is based on the notion that there is not too little management
reform in govt, but TOO MUCH. Congress and the Presidency have moved
effortlessly from one reform philosophy to another and back again, rarely
questioning the contradictions and consequences of each separate act. Light
used the Congressional Quarterly Almanac to identify and analyze 141 federal
management statutes signed into law from 1945 to 1994.
outcomes,
employees,
teams
(e.g.
Standards,
Gores
National
Performance Review)
PETERS (1993) PICKET-FENCE FEDERALISM.
KUYPERS THREE-LEVEL POLICY ANALYSIS:
Ultimate Goals
Intermediate Goals
Instruments in the strict sense
617 | P a g e
In his view, policy making and planning can be mapped as a GOAL TREE in
which both travel up and down between pure instruments and the ultimate
goals.
618 | P a g e
Public administrators are told not to use this method, however the
literature formalizes the Root method
b. Since means and ends are not distinct, means-end analysis is often
inappropriate or limited
619 | P a g e
d. Analysis
is
drastically
limited:
Important
possible
outcomes
are
620 | P a g e
relevant values
other reason than that they are not suggested by the chain of
successive policy steps leading up to the present
d. With this in mind, policies will continue to be as foolish as they are wise
(using this as well as a number of other methods)
621 | P a g e
2.
maximize
622 | P a g e
3.
b. New Deal and Great Society programs with their emphasis on new
programs fostered an environment where a systems model could develop
in light of the deficiencies of the process model in goal formation
c. Conservatives and Liberals like PPB for opposite reasons-Conservatives
lack faith in public expenditures, while Liberals want to show that
government can work
4. Political Process Deficiencies
a. Pluralistic processes are based on competition among interest groups.
Therefore if the market is not purely competitive then the system is
flawed. The other sections illustrate concepts where the market is flawed
b. Public Goods must be based on the public will. The political process
model assumes the opposite- private will is the determining factor
through the power of interest groups. Therefore competition based on the
collective will is not occurring
c. Externalities create benefits that often go to the strongest power group.
For example, Air polluters may get a tax credit, paid poorer people, who
are hurt by the pollutants to clean up their discharge. The powerful
group in this case get doesn't pay for its destructive output-the powerful
group gets the benefit without the cost
d. Income Distribution exemplifies how powerful groups have political
power while the poorer segments of society do not. Therefore pure
collective will impossible due to the lop-sided amounts of political power
a few wealthy groups wield
623 | P a g e
e. During the 50's the affluent majority rose to power. This led to a tyranny
of the majority where the relatively smaller amounts of poor people were
excluded from political power
f. Ideology can be a hindrance to rational market choices since it creates a
biased set of assumptions about the nature and potential of government
programs. This can work negatively for both conservatives and liberals
g. Immobility of Political Resources hinders those seeking power from
actually getting it. Voting district lines, seniority, bureaucratic patterns,
committees, and balkanization of urban regions are examples of
structural
impediments
Budgeting
has
met
with
considerable
misfires
and
misinterpretation
b. It is a simple concept that has produced meager results
c. The political institutions are not willing to develop the model into
practical capabilities
d. The continuing focus on process has stifled the intentions of PPB
systems which is to concentrate on outcomes based on goals while
examining possible alternatives
624 | P a g e
Problem Identification
Agenda Setting
Policy Formulation
Policy Legitimization
Rationalism involves sacrificed by a public policy, not just those that can be
measured in dollars.
Efficiency is important
People are pragmatic they seldom search for the one best way, but instead
find a way that works.
Individuals are important in politics only when they act as part of, or behalf of,
group interest.
Politics are really the struggle among groups to influence public policy.
Public policy at any given time is the equilibrium reached in the group struggle.
Public officials and administrators merely carry out the policies decided on by
the elite.
In the U.S., the bases of elite consensus are the sanctity of private property,
limited government, and individual liberty.
Public policy does not reflect the demands of the masses, but rather the
prevailing values of the elite.
The stability of the system, and even its survival, depends on elite consensus on
behalf of the fundamental values of the system, and only policy alterations that
fall within the shared consensus are given consideration.
Individuals come together in politics for their own mutual benefit and even with
selfish motives they can mutually benefit through collection decision making.
626 | P a g e
Government must provide public goods goods and services that must be
supplied to everyone if they are supplied to anyone.
GAME THEORY
Opponents must be rational they must weigh he potential costs & benefits of
their actions and choose an course of action that does not result in costs that
exceed gains.
Opponents must adjust their conduct to reflect not only their own desire &
abilities, but also their expectations about what others will do
Unclear goals
Imperfect technology
It presupposes that
627 | P a g e
individuals are out to maximize their self-interest. Values are separated from
facts.
Lindbloms model
provided the foundation for a more realistic analysis of BUDGETING that his
student WILDAVSKY provided in The Politics of the Budgetary Process. Values
rather than facts determine budgetary decisions (view shared by Guy PETERS).
Distinguishes
628 | P a g e
629 | P a g e
and
Baermann
note
that
the
President
does
have
influence
on
the
have influence over the bureaucracy; however sometimes this backfires if the
appointee goes native.
personnel, appointees may develop loyalty to the agency as well as the President. In
order to have influence, the appointees must have cooperation of the policy specialists
(who influence congressional committees), in addition to balancing the pressures to be
loyal to constituencies, professional associations and policy experts.
Regarding the influence of Congress on the bureaucracy, it is important to remember
that the bureaucracy cannot operate without money, and no money can be spent
unless the Congress decides to spend it. Committees and subcommittees magnify the
individual power of representatives trying to push for issues that their particular
constituency cares most deeply about. It helps to remember that subcommittees in
the House and Senate are composed of members who are motivated to work for certain
issues because they are either representing their constituency or trying to get
reelected.
attempts from Congress as well as from the President and interest groups in attempts
to shape regulations and bureaucratic action in their favor. Members of the Congress
or Senate will also be interested in trying to influence regulation coming out of the
agencies, because they affect constituents and interest groups that may pull their
campaign contributions if they see increased regulations coming down. In the case
that a particular piece of legislation or executive order is viewed as a contract to
implement as expressed, it is important that the agency try to shape the
administration of the legislation or order in the same fashion that it was expressed,
without compromising the existing rules and mission of the agency.
The bureaucracy must also consider the oversight role of Congress, and how the
heat may be turned up or down on their agency as a result of the regulations they
630 | P a g e
decision-making are not perfect in terms of the ideal democratic participation model,
but these processes are a work-in-progress and we can expect to see much more
fine-tuning of the systems in the future.
631 | P a g e
research designs that are commonly used in policy evaluation. One research design
commonly used is experimental design, which compares a treatment group with a
control group. In the experimental design, both groups are randomly chosen. The
quasi-experiment design compares a treatment group with a comparison group,
one that is chosen because it has many aspects that are similar to the treatment
group.
conditions that existed in the policy environment prior to the adoption of the policy in
question.
Who performs policy evaluations?
think-tanks, the media, university researchers, and interest (pressure) groups who
wish to use the information to influence future policy.
In government, some
departments (Labor, HHS, Energy) use assistant secretaries who are responsible for
program evaluation.
to evaluation efforts, and the completed evaluation may be ignored or attacked for
various reasons.
Do policy evaluations really impact change? It depends on if and how the evaluation
is used. As Anderson points out, sometimes evaluation studies are used as political
tools to delay decision-making on a certain issue or to justify and legitimate a decision
already made. Actors may also try to avoid confrontations or controversy by passing
the buck, and requesting that an evaluation be done. Evaluations are not likely to
impact change if they are institutionalized as in some government grant processes
where they are required. The reason for this is that they are required as part of the
funding scenario. They may never be read or used to improve policies. The main
purpose is that if an evaluation is done at the required intervals, the funding will
continue, and thats the end of the evaluations useful life. Also, if evaluations are
used as ammunition for partisan or personal political tools, they may not accomplish
or impact any change.
result in any change is that they are simply used for self-serving purposes, then
discarded (as in the requirement for continued funding scenario). No further use of
the information may be necessary if the primary goal is to evade criticism or to gain
political advantage for a short moment in time.
633 | P a g e
634 | P a g e
Incrementalist
paradigm:
substantive
and
focuses
on
description
(political scientist)
o
Incrementalist:
Six Models
Carl J.
Rationalist
Public Choice
Pareto optimality, making everyone better off, without making anyone worse off
o
Exclusion/Consumption Model
What is agency (principle agent) theory and how can it be used to improve our
understanding of public policy making?
According to Barrett & Fudge (Policy & Action, 1981) policy doesnt implement
itself.
ambiguous policy.
636 | P a g e
administration. Focus on the normative advice feeding back into policy design,
researching lessons learned from implementation failures
Kingdon
o
Lipsky (1980)
o
Lester Salamon (Beyond Privatization: The Tools of Gov. Action, 1989) describes
the traditional tools of policy implementation as the direct command and
control tools such as public enterprises, regulatory agencies
Future
OToole (2000) suggests that field is alive and contributions are indirect, framed
in Ostroms (1999) work on institutional analysis.
A stronger focus on
governance (Stone, 1989) and network analysis (Kikert et al, 1997; Rhodes,
1997)
Schlager, (1999)
Changing views of
&
Governance without Governing (1998) shows that the hollow state needs tools
and procedural instruments, such as the government-NGO partnership
637 | P a g e
638 | P a g e
Appendix A
Sample Comps Questions
and Students Answers
640 | P a g e
641 | P a g e
than it was to implement. Probably the best method to generate support for the
program is to stress that a strategic management system can improve the firm's
overall performance.
Implementation of the strategic management system must be approached in a manner
indicating that the small planning group is not trying to take over the firm. It must be
made clear from the start that the group will work within the bounds of the
organization and that all members of the firm will have input into the process. Without
the support of the other members of the firm, the process may be doomed to failure.
Another way to increase support for the strategic management system is the use of
consensus decision making rather than formal vote taking. Voting on issues tends to
divide the organization rather than unite. Voting forces individuals to argue and to try
to convince others of their views. Consensus decision making fosters working together
and can lead to increased cooperation among members of the organization.
A possible stumbling block to a successful strategic management system is reluctance
to change. No benefits can be derived from brilliant strategies unless they are
implemented. One way to increase the chances for acceptance of change may be to
introduce change more frequently for relatively less important matters. As change
becomes more commonplace, if the strategic management process proposes change, it
may be more readily accepted.
The Overall Process
At first, the process should focus on formulating the business's mission and the
overall direction for the organization. With this clearly in mind, better goals and
objectives can be set for the firm to help achieve its mission. This is a difficult project
and will not result in a finished product, but rather serve as a starting point.
Early on, the process should attempt to identify the major strategic issues facing the
firm. Having this formalized process forces the leaders of the organization to focus on
the future and the strategic issues the organization may face. Without this process,
many of these issues may, be overlooked until it is too late. Then the firm can only
react to the issues rather than anticipating the situation and taking advantage of it.
642 | P a g e
The next phase of the process involves analyzing the firm's strengths and weaknesses
(an environmental analysis) and current services to clients in relation to objectives.
Insight into an organization's strengths and weaknesses can be gained by examining
informal factors such as the organization's past, its current employees, average age of
employees, the current and future partner/manager/staff ratios, salary requirements
of personnel, employees' expertise, the business's financial position, and its location.
An environmental analysis also consists of studying external factors such as the
growth patterns of the surrounding community, types of current and potential
businesses in the community, the local economy, average age of the community,
changes in client services demanded, services offered by other public accounting firms
in the community, future supplies of accountants, and new tax laws.
The final step in this phase compares the firm's current services to clients to the firm's
stated objectives. This should determine if there are gaps that can be filled or services
that should be eliminated.
At this point (or at various points during the process), progress reports should be
made to the entire firm. This serves to keep the process on track by generating input
from the entire firm, and it keeps the process out in the open so everyone feels a part
of it.
The final part of the process involves a meeting with the entire firm. This should
include a presentation by the planning group covering the mission objectives
statements and the analysis that has been done. Then the entire firm can discuss the
mission statement and objectives and finalize these documents. Finally, changes that
are to be implemented can be identified, and work groups can be set up to begin
implementation. At this point, the purpose of the strategic management process is to
monitor the progress of the changes and to receive feedback. As well, the firm will now
have a process in place that can continually monitor the environment and be ready to
promptly act on threats and opportunities that have strategic consequences.
A formalized strategic management system can be a powerful tool to achieve a better
match between its strategies and its environment. The process provides a way for the
643 | P a g e
firm to determine where it is currently and where it wants to be, and helps to
formulate a plan so the firm can achieve its objective.
Extra material
1.
Values
Each sector is committed both to the values of public service (the seven principles
identified by the Committee on Standards in Public Life selflessness, integrity,
objectivity, accountability, openness, honesty and leadership) and to the highest
academic standards, including:
2.
Profound political, economic, technological and social changes are taking place both
globally and locally, and facing citizens, governments, businesses, voluntary and
informal organizations with far-reaching challenges.
Deep questions are posed for the public, private, and third sectors by structural
changes like:
644 | P a g e
Complex cross-cutting issues like these require governments and other organizations
to develop capabilities for:
Governments at all levels, along with other sectors and services, now therefore have to
operate in a context of continuous change, complexity and volatility.
645 | P a g e
Organizations of all kinds have to develop new more flexible and adaptive patterns of
governance and leadership, policymaking and strategy, management and servicedelivery, if they are to respond adequately to these changes and challenges.
Governments in many countries are exploring new approaches to modernization and
improvement of public services, including attempts to develop more "joined up"
citizen-centered approaches, in which government and the public service sector are
organized around the cross-cutting needs of citizens and users, rather than around
the interests of the professions and departments which have traditionally structured
government bodies.
3.
Much of the more traditional writing and teaching about public administration in the
UK is both out of date and also out of touch with the complex realities facing
policymakers and managers in government and the public service today.
There is often a failure to take sufficient account of the deep structural changes which
have taken place in the political, economic, social and technological context of public
services, over the past 5 to 10 years, and the consequences of these changes for the
role, purposes and nature of democratic governance, public policy and public
management.
Many of the traditional assumptions about public administration no longer apply, and
must be revised to provide explanations which are more appropriate, illuminating and
relevant:
The context for public policy and management is no longer one of relative
stability, but one of continuous change and uncertainty (political, economic,
social and technological).
Public policymakers and managers now recognize that the needs and problems
facing citizens, communities and governments are complex and diverse rather
than straightforward, that previous patterns of government intervention have
not been notably effective in resolving these problems, that the best solutions
and responses are not always known or understood, and that Governmental
646 | P a g e
The
assumption
that
the
needs
of
their
populations
were
relatively
The assumption that the primary task of Governments was to administer the
state apparatus (primarily through command and control of the bureaucracy
and its budgets and procedures) is giving way to a recognition that the primary
task of Governments is to govern their communities and economies (and that
this requires not just administration of the bureaucracy but also civic
leadership in the community).
The assumption that the state would be the main provider of public services,
and that a watertight distinction could be made between public and private
sectors, between the state and the market is being challenged by the view that
civic leadership cannot be provided by the public sector alone, but requires new
kinds of partnerships and joint ventures between public, private, voluntary and
grassroots sectors. It recognizes the need to analyze the inter-relationships and
inter-dependencies between three spheres - state, market and civil society.
The assumption that education and training should concentrate mainly on the
techniques and procedures for the internal administration of the public
bureaucracy is being replaced by a recognition of the need to set public
administration in the wider context of democratic governance and public policy
and management. Courses therefore need, among other things, to address
issues of civic leadership as well as public administration, policy formulation as
well as policy implementation, strategic management as well as operational
management, evaluation of the impacts, outcomes and results of public
programs as well as the measurement and control of cost inputs.
647 | P a g e
Theorizing Governance
Seven main versions and uses of the term governance have been identified in the
academic literature (Hirst, P 2000; Rhodes, R 2000):
Governance as part of the so-called New Public Management, arising from the
marketization and sometimes privatization of public services, and the
consequent need for public authorities to "steer" the work of organizations
which they no longer own or control but are sub-contracted to deliver services.
648 | P a g e
F I G U R E 1: R E L A T I O N S H I P B E T WE E N S T A T E , S O CI E T Y A N D M A R K E T
Broad themes to be explored by the Institute include the implications for governance
and public management of the changing, complex and dynamic inter-relationships
between
state and civil society including the relationships between representative and
participatory democracy; and between producers and users of public services
market and civil society including corporate citizenship, the role and power of
consumers, the marketization of everyday life
state, market and civil society those areas of confluence and inter-action
between all three spheres, where the vector forces are most complex and
contradictory.
649 | P a g e
administration theory as well as related literature, and defend your own position in
the debate.
Hamilton argued in Federalist 27 that the more people experience the actual
operation of government on the common occurrences of their lives, the more it
will conciliate the respect and attachment of the community.
The irony of the situation is that as the electoral branches stalemate, they act
against the bureaucracy- the one part of government that has a capacity to
govern.
The fundamental problem of governance that has generated the continual state
of crisis in political/bureaucratic relationships is that the electoral branches of
government have failed as deliberative institutions; they have not resolved
conflict in a reasoned manner.
Failure to establish new policy is not the only area where political institutions
have failed. At times policies have contradictory goals and these are left to the
bureaucracy to grapple with as best it can.
The failure to resolve goal conflict with informed public policy is exacerbated by
the development of the continual campaign for office.
650 | P a g e
Politicians compete with each other to adopt more extreme policies; the normal
tempering role of bureaucracy, the application of expertise to policy and policy
proposals is lacking.
Our basic problem of governance is that the long running interplay between
bureaucracy and expertise on the one hand and responsiveness and democracy
on the other hand has swung too far in the direction of democracy.
The solution to the governance problem in the united States is to have more
bureaucracy and less democracy.
Solutions
1. Replace checks and balances system with more unified political
structures
2. Lengthen the time frame for public policymaking.
3. Restrict and perhaps even eliminate political appointees.
4. Reduce the public sector reliance on the private sector.
5. Bureaucracys normative role in public policy suggests that bureaucracy
serves best when it exploits its information and expertise advantages.
6. Bring the institutionalized presidency under the merit system.
7. Replace the current public philosophy of neoclassical economics and its
sole value of efficiency.
8. Reorient our education programs from training entry level civil servants
to training policymakers.
651 | P a g e
Wilson
How
652 | P a g e
different
perspective
than
that
applied
to
administrative
service
performance measurement.
(Kelly, J.M., Swindell, D. (2002). A multiple-indicator approach to municipal
service evaluation:
653 | P a g e
Robert K. Yin reminds us that the case study method is best used when seeking the
how or why questions asked about a contemporary set of events, over which the
investigator has little or no control. Actually, Yin recommends the use of the dual
approaches of case study and survey methods.
superlative method of measuring service quality. Yin (p.8) relates that one particular
method, the randomized field trial, was designed for evaluation research and is
commonly used.
While this method works well for both public and private
organizations, Yin points out that randomized field trials do not work well in a number
of situations.
A related article that is excellent for this and other public administration topics to
describe the differences between public and private organizations is:
Rainey, H.G., Backoff, R. W., Levine, C.H. (1976).
This short
These may be
thought of as internal measures of service quality because they come from a definition
of effectiveness derived and monitors by administrators.
In contrast, external
because it is unclear what criteria the citizens are using to evaluate effectiveness. Also
questionable is how much accurate information citizens have on which to base their
evaluations.
Administrative performance measures are widely accepted as reliable indicators of
service quality though there is considerable variation in the types of measures
employed and how local governments use them. There is not so much consensus on
654 | P a g e
According to Barrett & Fudge (Policy & Action, 1981) policy doesnt implement
itself.
ambiguous policy.
Kingdon
o
Lipsky (1980)
o
Lester Salamon (Beyond Privatization: The Tools of Gov. Action, 1989) describes
the traditional tools of policy implementation as the direct command and
control tools such as public enterprises, regulatory agencies
Future
655 | P a g e
OToole (2000) suggests that field is alive and contributions are indirect,
framed in Ostroms (1999) work on institutional analysis. A stronger focus on
governance (Stone, 1989) and network analysis (Kikert et al, 1997; Rhodes,
1997)
Schlager, (1999)
Changing views of
&
Governance without Governing (1998) shows that the hollow state needs tools
and procedural instruments, such as the government-NGO partnership
656 | P a g e
organizations---informal
orgs
focus
on
workers
social
needs
Taylor---father
of
scientific
management---he
attacked
soldiering
Fayol---(p.
32)---span
of
control---departmentation---unit
of
control---hierarchy---espirit de corps
657 | P a g e
Chester
Barnard---expanded
Durkheims
informal
org---integrated
goals
and
Network analysislooks at the complex web of relationships of how the org interacts
with other orgs and with its environment
The org and its environment are totally separate---there are boundaries
The
general
environment
---
social,
cultural,
legal,
political,
economic,
org
labor,
is
vulnerable
capital,
because
equipment)
of
its
from
its
need
for
resources
environment
--so
(raw
the
material,
org
is
we
tracing
analyze
them
to
the
their
org
by
starting
source---also
with
look
at
the
the
resources
orgs
it
needs
competitors
for
and
the
same resour
Michael
Hannan,
John
Freeman,
Howard
Aldrich---Population
Ecology
Theory
Orgs are dependent on the environment for resources but this theory focuses on
patterns of success and failure among all orgs---not just one---it is survival of the
fittest (p. 810
658 | P a g e
Variation---changes in orgs
Selection---orgs choose certain characteristics
Retention---some survival
Philip Selznick---Institutional Theory
Orgs
adapt
to
the
similar
of
repeated
and
this
institutionalization---can
is
given
values
external
meanings
lead
by
society---i.e,
self
to
and
when
others
rationalized
actions
(Richard
myths---i.e.,
are
Scott)
TSU
Select an alternative
Implement
Monitor
Evaluate
complex problem
time pressure
conflicting preferences
659 | P a g e
Official---may be vague
Operative---more specific
Weick---enactment
you
create
the
theory---when
thing
you
youre
use
concepts
seeking
to
(i.e.,
organizations)
study---he
is
not
from
the
in
the
environment
cant
be
separated
the future will see smaller, more decentralized and informal orgs causing us to
face
more
more
and
means
of
ambiguity
more
sharing
than
ever---helping
change---the
information
paradox
so
(and
is
quickly,
that
forcing)
science
making
us
to
has
orgs
all
adapt
created
the
to
the
more
unpredictable (p. 45) to prepare for the post modern world we must take nothing for
granted---deconstruct everything!
660 | P a g e
Philosophy includes (see Burrell and Morgan, Sociological Paradigms and Org Analysis
1979)
epistemology (p.47)---how we know the world---the process by which we obtain
knowledge
objectivists---positivists and empiricists---independent observation is required
subjectivists---anti-positivists and idealists---all knowledge is filtered through the
observer
a third position---the process is greatly influenced by cognitive, social and
cultural forces---language is very important---postmodern
ontology---what can be known (the kinds of things that exist)
Q 6: Describe no less than five (5) approaches/definitions/models of strategic
planning and highlight their possible advantages and limitations in general and
when applied to the public sector.
Mintzberg, Henry and Quinn, James Bryan Readings in the Strategy Process
1. The Entrepreneurial Organization---p. 244 (Mintzberg)
simple structure
little staff
the leader creates the strategy and can adapt it as he/she deems necessary
661 | P a g e
experts are grouped in functional units and then deployed to teams as needed
Dutton, Jane
Categorization theory---merely labeling an event as an opportunity or a threat affects
information processing and motivation
Ginter, Robert
Social learning theory---behavior results from interactions of persons and situations
Hart, Stuart
Integrative framework---focuses on integrating the 5 roles played by top managers:
command, symbolic, rational, transactive, and generative
The Process Approach---the process is most important
662 | P a g e
Adam Smith wrote The Wealth of Nations in 1776 --- father of capitalism
prices are set by competition in the free market based on supply and demand
Keynesian
potential GNP means the full use of the factors of production (land, labor,
capital)
C
I
G
is consumption
is investment
is government spending
X-M
663 | P a g e
Neo Keynesian
they called for big changes in government spending, interest rates and taxes to
in a recession they want more government spending and tax cuts to stimulate
the economy
in inflation they want less government spending and tax increases to slow the
economy down
they also use monetary policy (interest rates set by the Federal Reserve Board)
Monetarists
they are also called counter Keynesians because they disagree with Keynes
and the supply of money is controlled by interest rates which are set by the Fed
Pubic Choice
politicians may claim to follow neo Keynesian policies but sooner or late they
must balance the budget
also see Forrester, John P., Evolving Theories of Budgeting, pp. 101-124
664 | P a g e
Aaron
(1972).
The
Self-Evaluating
Organization.
Public
The self-evaluating
organization can split itself off into evaluating and administering parts, thus
making lower levels pay the costs of change, or it can seek to impose them on
other organizations in its environment (p. 513).
Ouchi, William G. (1980). Markets, Bureaucracies and Clans. Administrative
Science Quarterly, 25(1): 129-141.
665 | P a g e
Level of analysis is a
Our
666 | P a g e
TQM has fostered ideas in which the concept of effectiveness has begun to be
displaced by an emphasis on quality and a customer focus.
Many
public
organizations
operate
in
non-market
environments.
relationship between the services a bureau provides and the income it receives
in providing them. Attention to the institutional aspects of environments will
show that such organizations are subject to extensive controls but of a different
type: controls that emphasize process over outcome indicators of performance
667 | P a g e
Kenneth
C.
(1998).
Study
of
Strategic
Planning
in
Federal
Many writers in the area hold that to be successful, the planning and
implementation process should have specific elements that reflect the unique
nature of the organization and its environment (Eadie, 1989; Koteen, 1991).
questions of value and democratic principles must underlie the process (Ring 7
Perry, 1985).
668 | P a g e
and
GPRA which is the most current legally mandated management reform initiative
in the federal sector suggests government strategic planning can be identical to
business. In recent years an understanding has emerged that the federal
government needs to be run in a more business like manner than in the past.
669 | P a g e
Bozeman and Strausman 91990) argue that is it crucial for public managers to
understand the nature of the political influence on the organization and how
the political influence affects the practice of managing, particularly setting the
organizations strategic agenda.
Ring and Perry (1985) suggest that the following propositions describe the
distinction between public and private sector strategic management processes:
o
Policy directives tend to be more ill defined for the public than for private
organizations.
executives
and
managers
than
for
their
private
sector
counterparts.
o
Public sector policy makers are generally subject to more direct and
sustained influence from a greater number of interest groups than are
executives and managers in the private sector.
Public sector management must cope with time constraints that are
more artificial than those that confront private sector management.
Policy legitimating coalitions are less able in the public sector and are
more prone to disintegrate during policy implementation.
Government is near term action oriented. The long term horizon does not
fit the normal political/budget cycle.
670 | P a g e
Melemid & Luck 91994) identified areas they believe must be addressed is
organizations are to adopt private sector management.
o
671 | P a g e
services that are immeasurable in economic terms hence they are not supplied by the
market.
Wildavsky,
Aaron
(1972).
The
Self-Evaluating
Organization.
Public
The self-evaluating
organization can split itself off into evaluating and administering parts, thus
making lower levels pay the costs of change, or it can seek to impose them on
other organizations in its environment (p. 513).
Ouchi, William G. (1980). Markets, Bureaucracies and Clans. Administrative
Science Quarterly, 25(1): 129-141.
672 | P a g e
Level of analysis is a
Our
TQM has fostered ideas in which the concept of effectiveness has begun to be
displaced by an emphasis on quality and a customer focus.
673 | P a g e
Many
public
organizations
operate
in
non-market
environments.
relationship between the services a bureau provides and the income it receives
in providing them. Attention to the institutional aspects of environments will
show that such organizations are subject to extensive controls but of a different
type: controls that emphasize process over outcome indicators of performance
Kenneth
C.
(1998).
Study
of
Strategic
Planning
in
Federal
674 | P a g e
Many writers in the area hold that to be successful, the planning and
implementation process should have specific elements that reflect the unique
nature of the organization and its environment (Eadie, 1989; Koteen, 1991).
questions of value and democratic principles must underlie the process (Ring 7
Perry, 1985).
and
675 | P a g e
GPRA which is the most current legally mandated management reform initiative
in the federal sector suggests government strategic planning can be identical to
business. In recent years an understanding has emerged that the federal
government needs to be run in a more business like manner than in the past.
As companies are accountable to stockholders, the federal government is
accountable to taxpayers and taxpayers are demanding as never before that the
dollars they invest in their government be managed and spent responsibly
(GAO, 1996).
Bozeman and Strausman 91990) argue that is it crucial for public managers to
understand the nature of the political influence on the organization and how
the political influence affects the practice of managing, particularly setting the
organizations strategic agenda.
676 | P a g e
Ring and Perry (1985) suggest that the following propositions describe the
distinction between public and private sector strategic management processes:
o
Policy directives tend to be more ill defined for the public than for private
organizations.
executives
and
managers
than
for
their
private
sector
counterparts.
o
Public sector policy makers are generally subject to more direct and
sustained influence from a greater number of interest groups than are
executives and managers in the private sector.
Public sector management must cope with time constraints that are
more artificial than those that confront private sector management.
Policy legitimating coalitions are less able in the public sector and are
more prone to disintegrate during policy implementation.
Government is near term action oriented. The long term horizon does not
fit the normal political/budget cycle.
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Melemid & Luck 91994) identified areas they believe must be addressed is
organizations are to adopt private sector management.
o
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As pattern,
strategy focuses on action, reminding us that the concept is an empty one if it does
not take behavior into account.
As
This
abstractions which exist only in the minds of interested parties. The perspective is
shared by the members of an organization through their intentions and/or by their
actions. Entering the realm of the collective mind individuals united by common
thinking and/or behavior. As perspective, strategy raises intriguing questions about
intention and behavior in a collective context. If we define organization as collective
action in the pursuit of common mission, then strategy as perspective raises the issue
of how intentions diffuse through a group of people to become shared as norms and
values, and how patterns of behavior become deeply ingrained in the group.
Q 10: What are the different kinds of strategies according to Mintzberg?
Planned Strategy:
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organization produce patterns in the streams of their own actions in the absence of, or
in direct contradiction to, the central or common intentions of the organization at
large; the strategies can be deliberate for those who make them.
Consensus Strategy:
patterns that pervade the organization in the absence of central or common intentions;
these strategies are rather emergent in nature.
Imposed Strategy:
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Q 11: What arguments does he make in the Rise and Fall/The Fall and Rise of
Strategic Planning?
This article presents Professor Mintzbergs warning that strategic thinking is as
important as strategic planning; the two are not the same and are mutually exclusive
(planning must be systematic and thinking must be creative).
involves analysis.
Strategic planning
intuition and creativity. Planning can be done on a time schedule but thinking must
be free to appear at any time and at any place in the organization. Mintzberg notes
three fallacies of strategic planning:
patterns and seasons do occur, predicting future events is virtually impossible; (2.) the
fallacy of detachment strategy should be made in concert with, not detached from
those who really do the work; and (3.) the fallacy of formalization formal procedures
stifle synthesis and creativity.
formalization edge.
1937:
Caiden, Naomi
1981:
Cleveland,
1918:
Frederick
budgeting.
article
was
the
justification
of
the
Taft
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John
P.
2001:
(including
budgeting
budgeting
can
is
learn
different
from
but
public
public
choice
theory.
POSDCORB
Planning,
organizing,
staffing,
directing,
Key, V.O.
1940:
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Keynes,
John
Maynard
1936:
Theory:
fiscal
policy
(government
spending
& taxing policies) can, and should be used to
influence the economy
Lewis,Verne
1952:
of
Public
Utility---marginal
utility;
1992:
The
Intellectual
Crisis
in
American
Public
Administration
He supported public choice theories
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Rubin, Irene
1990:
single
are
1966:
to
performance
William
1912:
Budget
Led to Budget and Accounting Act of 1921
best
expression
of
Incrementalism---a
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Can
Qualitative (purely
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more than one method. Corroboration (seeks convergence in findings) and elaboration
(provides richness of detail).
contradiction (initiation).
Since quantitative analysis relies on numbers or being able to convert data to an
ordinal scale, it is sometimes unrealistic. Numbers are not always available.
The paradigmatic stance helps determine the best form of analysis.
Mixed-method approach is safest. Consider deductive versus inductive.
Yin
White/Adams
quantitiative
assumes
human
action
is
to
be
explained
through
the
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Dunn
Policy analysis is partly descriptive and also normative in the aim of creation
and critique of knowledge claims about the values of policies
Multiplism
has
advantage
over
rivals:
Approximating
the
ultimately
unknowable truth though the use of processes that critically triangulate from a
variety of perspectives on what is worth knowing and what is known (p.6)
Bednarz
dimensions in isolation e.g. separating out economic and social impacts, but
understanding the interlinkages and tensions between them.
Whereas
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and interests and how these influence accounts of ' facts ' and events rather
than attempting to reduce them to one version of reality. For example women
and men may have different accounts of levels of income and/or roles in
household
decision-making.
Different
stakeholders
may
have
different
possible
explanatory
factors
in
differential
impacts of development
interventions.
requires in-depth face-to-face field work. Because of the need to relate all
these different dimensions together in the cumulative understanding of a
particular context, it is more difficult to delegate or divide up different parts of
the qualitative investigation between different people. Skilled (and hence more
expensive) researchers typically spend long periods in the field rather than
delegating field research and questionnaires to less-skilled enumerators,
although in the field they may closely supervise local researchers to collect less
difficult information.
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accounts may aim to empower people and influence policy through making
them more visible, there is no attempt to integrate qualitative research with
empowerment and policy development. This may make the data more reliable in
some respects as people are less liable to manipulate information in expectation
of beneficial outcomes or fear of unwanted consequences. ]
CONTRIBUTIONS OF QUALITATIVE RESEARCH
Because of these distinctive principles and characteristics, qualitative methods are
useful compliments to quantitative and participatory methods in order to:
Increase understanding of WHAT is happening.
Qualitative methods are also often necessary to investigate more complex and
sensitive impacts which are not so easy to quantify or where quantification
would be extremely time-consuming and costly.
investigate more sensitive issues which cannot be easily aired in the public
forum of participatory methods.
Contribute to understanding of WHO is affected in which ways.
Qualitative methods highlight the voices of those who are most disadvantaged
in ways which might be difficult to the public and consensual nature of
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Qualitative methods can also be used for probing of key informants to further
investigate issues of diversity and conflict.
Q 15: What are the requisites necessary for researchers to conclude that a
causal relationship exists? Why is this the case?
The three main criteria for causal relationships in social research are 1) variables
must be correlated there is an actual relationship, 2) the cause takes place before
the effect time order, and 3) the variables are non-spurious there is not a third
variable effecting the relationship (Babbie, 90). Note these definitions:
Correlation An empirical relationship between two variables such that 1) changes in
once are associated with changes in the other or 2) particular attributes of one
variable are associated with particular attributes of the other. Correlation in and of
itself does not constitute a causal relationship between the two variables, but is one
criterion of causality (Babbie, 90).
Time order We cant say a causal relationship exists unless the cause precedes the
effect in time (Babbie, 90).
An alternate answer: there are four criteria to conclude that a causal relationship
exists. The criteria are 1) time order If A is the cause of B, then A must precede B in
time. Also, Changes in A must occur before changes in B. So, cause must precede
effect.
If A
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changes and B also changes, this covariation provides some evidence that A is the
cause of B. If changes in are never accompanied by changes in B, then A cannot be
the cause of B. 3) Non-spuriousness a relationship is an association between two
variables that cannot be explained by a third factor. 4) Theory Not only must the
conditions of time order, covariation, and non-spuriousness be satisfied, but also a
theoretical or substantive justification or explanation for the relationship must be
provided. Theory interprets the observed covariation; it addresses the issue of how
and why the relationship occurs (Meir, K. J. & Brudney, J.L., 32-34).
Must use experimental method. Why? To determine causal versus mere correlation
(no direction).
Bednarz
Causal knowledge about society is currently limited to the tentative partial and
probabilistic realm (Cook & Campbell)
Non-smokers
American males
51
49
American females
34
66
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From this data we assert that 51% of American males smoke and 34% of American
females smoke. The property of being an American male is positively correlated with
the property of being a smoker, and the property of being an American female is
negatively correlated with being a smoker. The population here is adult Americans and
we are comparing two variables: smoking and gender; each variable has two values.
A is positively correlated with B if and only if the percentage of As among Bs is greater
than the percentage of As among non-Bs.
A is negatively correlated with B if and only if the percentage of As among Bs is less
than the percentage of As among non-Bs.
A is not correlated with B is the percentage of As among Bs is the same as the
percentage of As among non-Bs.
Judging correlations
Attentional bias in judging correlations:
Nurses were asked to view 100 cards with patient information on them and then judge
whether there was a relationship or connection between a particular symptom and a
particular disease. Each card indicated whether the symptom was present or absent
and whether the disease was present or absent. (Smedslund, 1963)
Here is the incidence of symptom and disease for 100 patients.
Symptom
No
symptom
Disease
No disease
37
33
17
13
Results:
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There is no correlation here though 85% of the nurses thought there was a positive
correlation between the symptom and the disease. The present/present cell was the
best predictor of the subject's judgments; a high figure in that cell prompted a positive
judgment.
Notice that for both the symptom group and the non-symptom group about as many
have the disease as don't have the disease (slightly more have it than don't have it for
both groups; 37-33 with symptom, 17-13 without symptom). Whether you have the
disease or not, about twice as many have the symptom as don't have it.
Subjects are inclined to look only at select cells for pertinent information.
Another example: Does God answer prayers? Many say yes because many time
prayers were successful. But what about the other cells?
Another example:
Subjects were asked whether Mr. Maxwell, a fictional person they were asked to
imagine that they met at a party, was a professor. They were told he was either a
professor or an executive, and that he belonged to the Bear's Club. Subjects were then
asked what additional information they would like to have to make their judgment. For
example, what percentage of professors at the party are members of the Bear Club, or
what percentage of executives at the party were members of the Bear Club? 89% of the
subjects wanted the first piece of information, but only 54% wanted the second piece,
even though both pieces are relevant. (Also relevant is the information regarding the
percentage of professors at the party.)
The effects of prior belief in judging correlations:
Clinical psychologists sometimes use Draw-a-person tests by which the patients are
thought to projects aspects of their personalities into the drawings. Big eyes might
indicate the patient is suspicious of others or paranoid; big shoulders might indicate a
preoccupation with manliness.
Studies have shown these tests to be useless as indicators of personality traits. But in
studies in which pictures and trait-labels are associated in ways that reflect no
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correlations, untrained subjects still claim to "discover" that certain traits are
correlated with certain aspects of the drawings. Even professionals maintain
confidence in them after learning of their inefficacy. Similar results apply to Rorschach
tests. Quote: "I know paranoids don't seem to draw big eyes in the research lab, but
they do in my office." (Chapman and Chapman, 1967, 1969)
Prior belief can increase attentional bias:
Subjects are told of an experiment in which boarding school children are given certain
combinations of food to see whether they affect the likelihood of getting a cold. Before
seeing the data the subjects are asked to formulate their own hypotheses. Once shown
the data, their interpretations are clearly influenced by their own hypotheses. Even
though the data reflect no correlations, subjects who hypothesized beforehand that the
type of water (bottled or tap) might be relevant to getting a cold also said they saw
such a correlation exemplified in the data. Subjects who, for example, hypothesized
that the type of mustard would cause colds would look to the mustard/cold data and
ignore the mustard/no cold data.
Causal relationships:
A causal generalization, e.g., that smoking causes lung cancer, is not about an
particular smoker but states a special relationship exists between the property of
smoking and the property of getting lung cancer. As a causal statement, this says
more than that there is a correlation between the two properties.
Some causal conditions are necessary conditions: the presence of oxygen is a
necessary condition for combustion; in the absence of oxygen there is no combustion.
"Cause" is often used in this sense when the elimination of the cause is sought to
eliminate the effect (what's causing the pain?)
Some causal conditions are sufficient conditions: the presence of a sufficient condition
the effect must occur (being in temperature range R in the presence of oxygen is
sufficient for combustion of many substances. "Cause" is often used in this sense
when we seek to produce the effect (What causes this metal to be so strong?)
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Looking for special circumstances: what was the cause of the fire? Oxygen? or an
arsonist's match?
Causes are sometimes said to be INUS conditions in that they are Insufficient but
Necessary parts of an Unnecessary but Sufficient set of conditions for the effect.
Striking a match may be said to be a cause of its lighting. Suppose there is some set of
conditions that is sufficient for a match's lighting. This might include the presence of
oxygen, the appropriate chemicals in the matchhead and the striking. The striking can
be said to be a necessary part of this set (though insufficient by itself) because without
the striking among those other conditions the match would not have lit. But the set
itself, though sufficient, is not necessary because other sets of conditions could have
produced the lighting of the match.
How are causal relationships different from correlations?
1. A statement about a correlation is symmetrical while a statement about a causal
relationship is asymmetrical. If being a male is positively correlated with being a
smoker, being a smoker is also positively correlated with being male. But if smoking
causes lung cancer it needn't be the case that lung cancer causes smoking.
2. Correlations are about actual populations and are not lawlike. Causal relationships
are lawlike in the sense that they are about hypothetical populations as well as actual
populations. When A is said to be the cause of B we are saying that were there an
increase in the incidence of A there would be an increase in the incidence of B; or if A
cases were to diminish, B cases would diminish, too. (If fewer people smoked, there
would less lung cancer.) Mere correlations pertain only to actual populations. If
National League success in the Super Bowl is merely correlated with stock market
decline, then we should not expect changes in the stock market to affect the outcome
of the Super Bowl (or vice versa).
How can one form judgments about causal relationships based on statements about
correlations?
For example, there is a strong positive correlation between an increase in the number
of sex education classes and an increase in the rate of gonorrhea. Suppose we
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conclude that increasing the number of sex education classes has caused the increase
in the gonorrhea rate.
(A) Is the statistical premise (the statement about the correlation) true or well
founded?
(B) What alternative explanations are available?
1. The correlation might be accidental or coincidental. Increase in the national
debt is positively correlated with an increase in the gonorrhea rate, but there is
no causal connection.
2. The relation might be spurious, both an increase in the number of sex
education classes and an increase in the rate of gonorrhea being the effects of
the same cause.
3. The causal direction might be the reverse. Could the increase in the gonorrhea
rate be causally responsible for the perceived need for more sex education
classes?
4. The causal relation might have been more complex than the conclusion
suggests. The increase in sex education classes might have caused a change in
attitudes about sex, which led to an increase in sexual activity, which led to an
increase in the gonorrhea rate.
5. The causal relation cited might be insignificant relative to other factors
responsible for the increase in the gonorrhea rate.
Is a causal relationship suggested in the cases below?
At one time there was a strong positive correlation between the number of mules in
the state and the salaries paid to professors (the more mules the lower the salaries).
There is a strong positive correlation between the number of fire trucks in a borough
of NYC and the number of fires that occur there.
There is a strong positive correlation between foot size and hand writing quality.
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There is a strong negative correlation between the number of forward passes thrown in
a football game and winning the game.
Heavy coffee consumption is positively correlated with heart attacks.
Going to the hospital is positively correlated with dying.
An increase in the number of hours kids watch TV positively correlates with decrease
in SAT scores.
Marijuana use is negatively correlated with high GPAs.
Another example:
"[W]hile half the country's communities have flouridated water supplies and half do
not, ninety percent of AIDS cases are coming from flouridated areas and only ten
percent are coming from nonflouridated areas."
Any connection?
1. Communities aren't all the same size: flouridated communities (likely to be big cites)
might contain much more than half the population.
2. The relationship might be spurious: cosmopolitan/progressive attitudes might
encourage both fluoridation and lifestyles associated with AIDS
Another example:
Is there a causal relationship between class attendance and grades achieved?
"Students with the lowest attendance earned the poorest grades. Those who attended
79 percent of the classes or less ended up in the low C range; 90 percent and above
scored above a B average. Student who sat up front got 'significantly higher grades,'
but Walsh [the researcher] thinks they could be more interested in the subjects."
John Stuart Mill, A System of Logic, 1843
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Which factor is always absent when the occurrences of the effect are absent?
Eight patients have a disease and each was given some remedy or other. Four patients
who are given serum S are cured. Of those who are cured no other single remedy was
given to all. Of the four who were not cured, every patient was given at least one of the
remedies (but none the serum S). Serum S judged to be the cure.
1. The conclusion applies only to the occurrences considered.
2. Only probable: other important conditions might have been overlooked; it might
have been a combination of factors
The Method of Difference
Identify a sufficient condition among possible candidates in a specific occurrence
The factor is the only one that is present when phenomenon is present and absent
when the phenomenon is absent.
Two identical white mice in a controlled experiment were given identical amounts of
four different foods. In addition, one of the mice was fed a certain drug. A short time
later the mouse that was fed the drug became nervous and agitated. The researchers
concluded that the drug caused the nervousness.
1. Less general conclusion than the inverse method of difference, which applies to all
occurrences listed
The Joint Method of Agreement and Difference
Identify a necessary and sufficient condition that is present is a specific occurrence.
Use the direct method of agreement to isolate necessary conditions (if no factor, no
effect) and the method of difference to isolate those that are also sufficient.
1. Less general conclusion than the double method of agreement, which applies to all
occurrence listed;
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George, who exercised regularly, took vitamins, and got plenty of rest, contracted a
rare disease. Doctors administered an antibiotic and the disease cleared up. convinced
that the cure was caused by either the exercise, the rest, or the antibiotic, the doctors
searched for analogous cases. Of the two that were found, one got no exercise, took no
vitamins, and got little rest. He was given the same antibiotic and was cured. The
other person, who did the same things George did, was given no antibiotic and was not
cured. The doctors concluded that George was cured by the antibiotic.
Method of Residues
"Separate from a group of causally connected conditions and phenomena those
strands of causal connection that are already known, leaving the required causal
connection as the 'residue'."
Method of Concomitant Variation
Match variations in one condition with variations in another.
Q 17: What type of research design is most likely to enable a researcher to
conclude that a causal relationship exists? Why is this the case?
Must use experimental method. Why? To determine causal versus mere correlation
(no direction).
independent variables.
In an experimental research study, if the researcher finds a statistically significant
difference between two or more of the groups representing different treatment
conditions, he can have some confidence in attributing causality to the IV. In nonexperimental research, the researcher has no control over the levels of the IVs (Mertler
& Vannatta, p. 2).
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Lack of internal validity refers to the possibility that the conclusions drawn from
experimental results may not accurately reflect what went on in the experiment
itself.
The nature of the problem that you wish to explore and why it is
amenable to research through an experimental design.
What is the major hypothesis that you would test; how would you
operationalize the independent and dependent variables?
OPre-Test
Experimental Group
OE1
Control Group
OC1
OPost-Test
Comparison
XReading
OE2
OE2 OE1
OC2
OC2 - OC1
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Experimental group and control group with pretest and post-test data.
Case studies (research strategy) are preferred strategy when how or why questions
are being posed and focus is on contemporary phenomenon within real-life context.
3 types of research questions posed are 1.) what exploratory 2.) who and where
descriptive 3.) how and why explanatory. Unfortunately, case studies have low
generalizability/poor external validity. Can be both quantitative and qualitative.
Case study design must concern construct validity (studying what intended),
internal
validity
(nonspuriousness),
external
validity
(generalizability),
and
reliability (replicability). Multiple case study designs are preferred over single case
designs because of the possibility of direct replication. A pilot case study is helpful
to see if worthy of study.
Use linear-analytic structure in report sequence begins with issue being studied
and a lit review followed by methods used, findings, and conclusions/implications
(Yin).
TCAP Test reading test conduct pre- and postSnowball sampling best method for data collection (ask ?/answers other ?s)
Population sample (ideal b/c removes chance of bias or flaws) vs. random sample
(pick every kth number no weighting necessary when all cases have same chance
of selection weighting should not be used since element of subjectivity)
May use Likert Scale (assign scores to patterns of responses):
Strongly
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How would you know that the data support or do not support the
hypothesis?
One Way ANOVA test can only look for correlation cant look for causality.
Z and p scores tell whether data support the hypothesis. If z is between -1.96 and
+1.96, then safe. Outside of this range is the danger area. The p score tells the
amount of mistake you made (95% acceptance is good).
How would your design control specifically for threats to internal and
external validity?
reactivity, and history, and often others as there are twelve threats. External validity
of experimental designs of research is threatened by the sample of subjects upon
which the findings are based.
experimentation on human subjects and frown on the use of deception, which may be
employed in order to make an experimental setting seem more realistic to participants.
Also, the cost and practical problems of conducting an experiment on a random
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Randomization
Observation 1
Treatment
Observation 2
Oe2
Comparison
Experimental
Re
Oe1
Oe2 Oe1
Control
Rc
Oc1
Oc2
Oc2 Oc1
Step 1
Assign subjects to two or more groups, with at least one experimental and
one control, so that the groups are as comparable as possible. The best way
to assemble comparable groups is through random assignment of subjects to
groups.
Although a pre-experiment
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costs
of
this
study,
the
sub-committee
on
States with higher than average per pupil spending will have similar student
achievement results as states with lower than average per pupil spending.
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The average per pupil spending of the states in the Southeast will have
similar student achievement results as the average per pupil spending of the
states in the Northeast.
States with similar state demographics as Tennessee, but higher per pupil
spending will have similar student achievement as Tennessee.
c. Data Conceptual definitions: What variables are you going to use in the
manuscript and why?
Per Pupil Spending As determined by the formula used by each state. (Interval
scale)
State Demographics (Ho3) Race, Gross State Product, No. Living in Poverty,
Political Affiliation, etc. (some nominal, ordinal, interval scales)
d. Operational definitions: Where you are going to collect the data you plan to
use in your manuscript.
Data collection of the variables will be from the following sources:
e. Research Methods The statistical methods you could use to test the data
and why you believe this technique is the most appropriate for your
manuscript.
Determining correlation, not causality so use ANOVA.
f. Anticipated Findings The anticipated findings of you study.
Anticipate rejecting all three null hypotheses which in essence states that states with
higher per pupil spending will have higher student achievement results than states
with lower per pupil spending, regardless of demographics.
g. Limitations The anticipated limits of your study.
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The method to compute per pupil spending is different in many states. Therefore, the
analysis will be adversely affected. External validity, that is generalizability, may
suffer as a result of the different methods to compute per pupil spending. Also, the
demographic data may be used to establish comparable states (null hypothesis 3)
in a demographic sense, but state policies related to education and education
funding may be different.
A related policy is to
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Appendix B
NC State Comps Questions
Neoclassical
Organization Theory
Modern Structural
Organization Theory
Decision Theory
Rational Choice Theory
Human Resource
Theory, or the
Organizational Behavior
Perspective
Systems Theory and
Organizational
Economics
Theories of Governance
Theories of Political
Control of Bureaucracy
Theories of Bureaucratic
Politics
Organizational Culture
and Sense Making
Theories of Public
Institutions
Individual rational choice and its criticisms (Donald P. Green and Ian
Shapiro, Pathologies of Rational Choice Theory: A Critique of Applications in
Political Science (New Haven: Yale University Press, 1994), ch. 1).
Still the
Institutions (see also Gary Cox On the Effects of Legislative Rules. Legislative
Studies Quarterly 25 (2000):169-192); James G. March and Johan P. Olsen,
The New Institutionalism: Organizational Factors in Political Life, American
Political Science Review 78 (1984): 734-49.
You should know the following macro -theories of the policy process:
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Advocacy coalitions
Diffusion/innovation
Stages approach
Policy streams
You should have some familiarity with these important theoretical questions:
Agenda setting (Gary Cox, Agenda Setting in the U.S. House: A Majority Party
Monopoly? Legislative Studies Quarterly, 26 (2001): 185-210.
Principal-Agent Theory
What are the issues in the relationship between the public, politicians, and
administrators? To whom are administrators accountable?
What are the tensions between democracy and "bureaucracy," and how can
they be reconciled?
What are the tensions between promoting administrative self-interest and the
public interest, and how can they be reconciled?
What is the normative base of public administration, i.e., values that guide
practice?
What does the public in public administration really mean? What is the
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Key Concepts
Accountability
Bureaucracy
Citizen participation; how administrators relate to citizens
Complementarity - Political-administrative relations
Democracy
[Dichotomy] Political-administrative relations
Ethics
Internalized / External control:
model
bureaucracy/principles
of
administration/scientific
management
Political and institutional models
Normative model
Waldo
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New PA
Public Choice/NPM
Principal-Agent
1) Research Design has been defined as largely defined as a matter of control. Discuss
statistical versus physical control and relate each to a specific type of research design,
for example, experimental versus quasi_experimental design. What is internal
validity? What is external validity? List and define the principle threats to internal
validity. Can a study have high internal validity and lack external validity? Explain
and provide a concrete example.
a sample of
respondents, testing hypotheses about the relationships found in the sample data,
and, then making some inference about the likelihood that the relationship found in
the sample data would be true if the entire population had been tested. In th is
regard, define and discuss the following: (a) probability samples vs non_probability
samples. (b) The differences between statistical significance and substantive
importance. (c) Power, Type I and Type II error. (d) The null hypothesis. (e)
Reliability and validity of measures.
3) What is the difference between randomization and random sampling? Relate each
to internal and external validity, and, to the concept of control. Why do researchers
have more confidence in saying that the independent variable affec ted the
dependent variable in a research design in which randomization has taken place?
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4) Women faculty members at Waterford Central University (WCU) have filed a sex
discrimination suit against the university. You are a newly_hired associate in the firm
that represents the plaintiffs. The deposition of the university's expert has already
been taken. The transcript reveals that the expert performed two multiple regression
analyses on the faculty salary data. In the first, salary was the dependent variable
with the independent variables being:
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A more senior associate has found a case that went to trial on virtually identical
facts to the present one. In that earlier suit, the defendant prevailed in a bench trial.
The partner directing the litigation solicits your comments. She worriedly notes that
"If I understand what the WCU expert is saying, I'm troubled myself that adding the
gender variable has hardly any effect. Still, I thought that the $684 coefficient was
pretty good for us." What can you tell the partner that be useful either in assessing
what's going on here or in attacking the thrust of the expert's argument?
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validity. Can a study have high internal validity and lack external validity? Explain
and provide a concrete example.
2a)
respondents, testing hypotheses about the relationships found in the sample data,
and, then making some inference about the likelihood that the relationship found in
the sample data would be true if the entire population had been tested. In this
regard, define and discuss probability samples vs non -probability samples.
2b)
Which sampling design would best address the following? You are a city
manager and you want citizen feedback on a new diversity program. You have a
very small proportion of African Americans, Hispanics and Asians in your city, yet
you want to be sure you get feedback from them in a large -scale citizen survey.
3) What is the difference between randomization and random sampling? Relate each
to internal and external validity and to the conce pt of control. Why do researchers
have more confidence in saying that the independent variable affected the dependent
variable in a research design in which randomization has taken place? What is the
only type of research design in which random assignment of subjects to treatment
groups is possible?
7) Outliers are undesirable because they imply violation of which two common
assumptions of statistical procedures in the multiple general linear hypothesis
family?
8) Explain attenuation.
9) Describe the use of principal components analysis (PCA) as a dimension -reduction
technique. Comment on the following in your description: a) selecting the number of
717 | P a g e
10)
11)
causal structure and latent structure in a multivariate set of data. Comment on the
following the difference between the structural and the measurement model. Also,
comment on the following aspects of this technique: i) constructing path models and
equations; ii) the problem of model identification; and iii) estimates of model fit.
Distinguish (or compare similarities) among principal components analysis, factor
analysis, confirmatory factor analysis, and structural equat ion modeling in how the
techniques estimate unknown (latent) variables from known (indicator, overt)
variables.
Foundations, Theory, and Policy
June 27, 2005
I.
and
contrast
the
pre-theoretic
frameworks
Systems,
B. When we think of the policy process, we often divide it into two principal
types of actors: societal and governmental. Briefly discuss Olsons theory of
group behavior.
policy process and explain those that he believes are able to turn their
preferences into policy outputs.
has
been
defined
narrowly
and
broadly
in
the
public
administrative
relationship
as
two-way
street
or
complementary
relationship?
actors
and what
drives
their preferences
and
behavior,
their
characterization of policy change, the nature of collective action, the part of the
policy process on which most attention is focused, and whether or not
governmental institutions are important. Then think about the lottery issue in
North Carolina, briefly, how does innovation/diffusion explain change on this?
Again, briefly, How can punctuated equilibrium help explain policy change on
the tobacco issue over the past 15 years?
3B. When we think of the policy process, we often divide it into two principal
types of actors: societal and governmental.
group behavior. How does he understand the behavior of groups in the policy
process and explain those that he believes are able to turn their preferences
720 | P a g e
Whose
items
are
available
at
http://www2.chass.ncsu.edu/garson/pa765/sampleexam.htm
The following topics are covered in the methods test item data bank. Topics listed are
general topics. Individual test items may include reference to more detailed aspects of
general topics.
RESEARCH DESIGN
purpose of residual analysis
standardizing data
levels of measurement
normal curve & confidence levels
types of ordinal scales
types of validity
threats to validity
types of reliability
reliability analysis
testing for normality
testing for homoscedasticity
721 | P a g e
WLS regression
ANOVA FAMILY
assumptions of anova
homogeneity of variance
covariates
within- and between-group designs
FACTOR ANALYSIS & RELATED
types of extraction
types of rotation
communality
eigenvalues
factor loadings
confimatory factor analysis in SEM
cluster analysis
multi-dimensional scaling
LOG-LINEAR ANALYSIS
assumptions
sampling adequacy
likelihood ratio tests
parsimony
types of models
link function
723 | P a g e
identification of models
725 | P a g e
Appendix C
Rutgers University Comps
Questions
727 | P a g e
3. What type of research design would you construct to do this study? What
would be your unit of analysis? Why? What would be your sampling
frame?
Day 1 Afternoon, March 31, 2009
Institute of Government
Doctoral Comprehensive Examination
Spring 2009
Please write ONLY your Student ID# on your answer sheet.
Answer one of the following questions.
1. The budget may be viewed as an instrument of fiscal policy, as a means of
determining policy choices, and as a tool for managing the economy. Explain
each of these aspects of budgeting. In your answer, emphasize the views of the
classical or pre-Keynesian economists, Keynesian economists, neo-Keynesians,
the monetarists, the Public Choice school economists, and the leading public
budgeting scholars.
2. In his renowned 1940 article, V.O. Key, Jr. lamented about the lack of budget
theory. Twelve years later (1952), Verne B. Lewis attempted to construct a
normative budget theory. Today the quest for a budget theory continues. In one
of her numerous writings, Irene Rubin noted that, budget theory today is
fragmented and incomplete. It is in the process of being invented. Why is
budget theory still viewed incomplete and fragmented? Briefly discuss the major
competing theories of budgeting (distinguishing between normative and
descriptive theories) treated in the budgeting literature.
Day 2 Morning, April 1, 2009
Institute of Government
Doctoral Comprehensive Examination
Spring 2009
728 | P a g e
contributions.
In
view
of
the
wide
array
of
perspectives
on
729 | P a g e
explanatory
power,
and
that
more
systemic
view
of
public
administration would prove more efficacious in the long run? . Discuss competing
assumptions from an interdisciplinary perspective, and assess the dynamic
730 | P a g e
nature of the state -of-the-art of the field of public administration with particular
attention to elements which both mai nstream public administration theorists and
governments critics may have overlooked.
OR
A. 3. How do the basic themes of American public administration apply to the events of
Sept. 11, 2001? Address this question in terms of organizational capacity, or la ck
thereof, at the federal and municipal levels.
A. 1. Assuming that the body of knowledge which comprises public administration is
itself comprised of a series of at least five types of insights, and that each of those
insights continues to be relevant to contemporary problem solving, analyze the central
problem of the privatization model through multiple theoretical lenses. Cite the
appropriate literature as to the importance of the concepts you have chosen to
emphasize.
Or
A. 2. How would you explain t o proponents of privatization that their theories have
insufficient explanatory power, and that a more systemic view of public administration
would prove more efficacious in the long run? . Discuss competing assumptions
from an interdisciplinary perspective, and assess the dynamic nature of the
state-of-the-art of the field of public administration with particular attention to
elements which both mainstream public administration theorists and governments
critics may have overlooked.
OR
A. 3. How do the basic themes of American public administration apply to the events of
Sept. 11, 2001? Address this question in terms of organizational capacity, or lack
thereof, at the federal and municipal levels.
A. 1. Assuming that the body of knowledge which comprises public administration is
itself comprised of a series of insights, and that each of those insights continues to
be relevant to contemporary problem solving, analyze the central problem of the
731 | P a g e
business model through multiple theoretical lenses. Cite the a ppropriate literature
as to the importance of the concepts you have chosen to emphasize.
Or
A. 2. How would you explain to proponents of privatization that their theories
have insufficient explanatory power, and that a more systemic view of public
administration would prove more efficacious in the long run? . Discuss
competing assumptions from an interdisciplinary perspective, and assess the
dynamic nature of the state -of-the-art of the field of public administration with
particular attention to elements which both mainstream public administration
theorists and governments critics may have overlooked.
A. 1. Assuming that the body of knowledge which comprises public administration is
comprised of a series of insights, and that each of those insights continues to be
relevant to contemporary problem solving, analyze the central problem of the
business model through multiple
732 | P a g e
A.2. How would you explain to proponents of privatization that their theories have
insufficient explanatory power, and that a more systemic view of public administration
would prove more efficacious in the long run? . Discuss competing assumptions
from an interdisciplinary perspective, and assess the dynamic nature of the
state-of-the-art of the field of public administration with particular attention to
elements which both mainstream public administration theorists and governments
critics may have overlooked.
OR
A. 3. How do the basic themes of American public administration apply to the events of
Sept. 11, 2001? Address this question in terms of organizational capacity, or lack
thereof, in basic elements of public administration at the federal and municipal
levels.
B. 1. From an policy -analytic point of view, compare the role of empirical and
normative information in the phases of the policy cycle (policy agenda -setting, policy
formulation, policy adoption and legitimation, implementation, and evaluation) and
discuss the interplay of methods appropriate to each.
Or
B. 2. . Explain the three most im portant challenges confronting knowledge utilization
in public managerial decision-making and examine their implications for the practice
of policy analysis.
B. 2. . Explain the three most important challenges confront ing knowledge utilization
in public managerial decision-making and examine their implications for the practice
of policy analysis.
733 | P a g e
B. 1. Focusing on the need for usable knowledge, compare and discuss the logic of
policy decision-making with that of positiv ist-oriented policy analysis. How, in your
view, might decision-making and policy analysis best be brought into a mutually
beneficial relationship?
Or
B. 2. Examine the differences between outcome and process oriented policy
evaluation and suggest how they might be utilized together to improve the policy
decision-making process.
Discuss various
perspectives on this issue and what each implies for how we understand the role of
public administration in democratic societies.
Or
C.2. The public administration literature has paid more atte ntion to normative
questions of administration than to what we mean or should mean by public.
How should the public in public administration be understood? What challenges
734 | P a g e
Discuss various
perspectives on this issue and what each implies for how we understand the role of
public administration in democratic societies.
(b) The public administration literature has paid more attention to normative
questions of administration than to what we mean or should mean by public. How
should the public in public administration be understood? What challenges are
posed to this concept in market societies? Illustrate this understanding or these
challenges in a particular substantive area (environment, race, sex, poverty, etc.).
C. 1. How does its economic or political context change the role of public
administration? With specific reference to their different economic and political
institutions, compare the role of administration in ancient or feudal society, market
capitalism and the corporate or Keynesian welfare state.
Or
fix
democracy.
Consider
what
proposals
for
reform
imply
for
public
administration.
Or
C. 3. Competing interest groups increasingly claim special privileges from the state
because of past disadvantage, disability a nd/or discrimination, including privileged
access to education, the electoral process and employment. Select a claim associated
with disadvantage or inequality (e.g. affirmative action, equal pay, the ADA,
redistricting, and so forth) and discuss how it bears on public administration.
C. 1. Among the key factors that shape the making and administration of public
policy in democratic societies are inequality, bureaucracy, the influ ence of
business and professional elites, and the growing importance of cultural diversity.
Basing your answer on the theoretical literature, discuss the importance of two of
these factors for public administration.
or
C.2. Classic as well as contemporary
recognize
the
importance
of (l)
the
State/Administration,
(2)
Markets, (3)
meaning
and
importance
by
each
perspective.
Select
two
m ajor
pluralist, etc.).
compare and contrast how major proponents of the perspective conceptualize these
phenomenon and their interrelationships.
611 Administrative Politics
Describe the role of the bureaucracy in the U.S. policy -making process. Pay
particular attention to bureaucracys role in the American constitutional system,
and to the impact of politics on bureaucratic policy making.
Comp #2 - Performance Application
604Performance Improvement in Public Administration
D. 1. Public sector productivity improvement strategies are of differing interest
to the practitioner as opposed to the academic.
From the practitioner's point of view -- what are the techniques or strategies that
promise the most productivity improvement and how have they been implemented in
the public sector?
From the academic's viewpoint -- what are the issues that offer the large st
research opportunities?
OR
D. 2. What are the central research questions concerning the relationship between
innovation and organizational productivity? Please discuss the questions and authors
according to the process model and by level of analysis. Wh at are the
recommendations emerging from the research to create an innovation-friendly
organization?
OR
D.3. Please trace the history and development of public administration as a
discipline, paying special attention to the importance of the concepts
Of quality, productivity and efficiency to that history. Then place American
public administration within a global context: how has our history been
737 | P a g e
Influenced, and in turn influences, global public management. Finally, what are
your predictions for the future path of the field?
D. 1. Public sector productivity improvement strategies are of differing interest
to the practitioner as opposed to the academic.
From the practitioner's point of view -- what are the techniques or strategies that
promise the most productivity improvement and how have they been implemented in
the public sector?
From the academic's viewpoint -- what are the issues that offer the largest
research opportunities?
OR
D. 2. What are the central research questions concerning the relationship between
innovation and organizational productivity? Please discuss the questions and authors
according to the process model and by level of analysis. What are the
recommendations emerging from the research to create an innovation-friendly
organization?
OR
D.3. Please trace the history and development of public administration as a
discipline, paying special attention to the importance of the concepts
Of quality, productivity and efficiency to that history. Then place American
public administration within a global context: how has our history been
Influenced, and in turn influences, global public management. Finally, what are
your predictions for the future path of the field?
D. 2. What are the central research questions concerning the relationship between
innovation and organizational productivity? Please discuss the questions and authors
according to the process model and by level of analysis. What are the
recommendations emerging from the research to create an innovation-friendly
organization?
OR
D.3.
Develop
and
defend
comprehensive
framework
for
productivity
E. 2. Taking into account the literature in the area, how do budgeteers make sense
of reality in making resource allocations? What limits exist in using rational analysis in
budget decisions? In addition to or instead of rational analysis, when do budgeteers
interpret and narrate the
allocations? Illustrate from the literature youve read. What practical implications
do interpretation and sense -making have for public administration and public
budgeting?
OR
739 | P a g e
a.characterize the budget and public administration reforms that have emerged
since the Progressive era and the issues they have both dealt with.
b.
reforms have worked together to further changes and improvements in the ways
government operates or whether the reforms have worked at cross purposes.
E. 2. Taking into account the literature in the area, how do budgeteers make sense
of reality in making resource allocations? What limits exist in using rational analysis in
budget decisions? In addition to or instead of rational analysis, when do budgeteers
interpret and narrate the
allocations? Illustrate from the literature y ouve read. What practical implications
do interpretation and sense -making have for public administration and public
budgeting?
OR
applicable not only to budgeting but also to public administration generally. That is,
both budgeting and public administration have tried to deal with accountability
issues at about the same period. Both have focused on decision-making. Both have
tried to deal with governmen t performance.
a. characterize the budget and public administration reforms that have emerged
since the Progressive era and the issues they have both dealt with.
b. assess whether budgeting reforms and general public administration reforms
have worked together to further changes and improvements in the ways
government operates or whether the reforms have worked at cross purposes.
c. argue whether budgeting and management are fundamentally dealing with the
same
issues
or
different
ones
and
assess
whether
budgeting
an d
E. 3. V. O. Key asked the basic question for budgeting researchers and theorists. What
was that question? What did he mean by the question?
Wildavsky and others have outlined and defended a budget theory that consists of
roles and as such is a behavioral approach to budgeting. Meyers and others have
outlined a budget theory that is structural and follows a functionalist approach to
741 | P a g e
budgeting. Contrast these two theories. Assess each in terms of its explanatory power
in answering the basic question put forth by V. O. Key.
a) characterize the budget and public administration reforms and what issues
they have both dealt with since the Progressive era.
are
part
of
the
same
or
different
areas
of
public
administration theory.
E. 1. Anthony Downs (Why the government budget is too small in a democracy) and
James Buchanan (Why does government grow?) present two opposing views on the
budget problem. Outline their arguments and the specific points on which they
differ. Design and present a research proposal in which you resolve specific points
on which they differ.
OR
E. 3. V. O. Key asked the basic question for budgeting researchers and theorists. What
742 | P a g e
the
Courts holding in Goldberg vs. Kelly (the welfare case) with its one six year later in
Mathews v. Eldridge (involving the poor person who disability payments were
terminated). What factors can you cite to account for these disparate rulings.
OR
F.2. Cann, in his Administrative Law text, observes that Congress has the power to
control agencies but lacks the will; the President has the will to control them, but
lacks the power. What did Cann mean? Please expl ain, with reference to cases we have
briefed and discussions we have shared.
743 | P a g e
advocate and why? Be sure to discuss the advantages and disadvantages of including
citizens in the measurement of
citizen/government
745 | P a g e
Appendix D
TSU Comps Questions
747 | P a g e
implementation process are distinct; however, much like the politics-administration dichotomy
(Wilson, Goodnow, Waldo) public administration has moved past the either/or framework
of most public administration arenas and recognizes that dichotomous relationships between
policy makers and implementers no longer exist.
The following public policy theories center on how policies are made and who has the most
influence on policy decisions. In group theory, policies are developed by predominant interest
groups. Groups that have the most political power and access to political processes will see
their demands met through public policies. As an example, Wildavsky discusses the political
power of older adults through groups such as the AARP and their influence on policies such as
Social Security and Medicare. Wi l davsky would argue that these entitlement programs are not
likely to be significantly altered because of the relative power of groups that have a vested
interest in preserving them. Lowi, in The End of Liberalism , strongly criticizes interest
group politics and pluralism and maintains that the competing interests of various groups
ultimately stifles government progress. Lowi suggests that when power in the government is
decentralized and everyone has power in the form of groups then power is watered
down. Thus, if so many groups are competing for power, no dominant power emerges and
government is stifled (Lowi).
Elite theory (Dye and Zeigler) argues that powerful playersparticularly in the economic and
political arenadetermine the course of public policies. In other words, a select few in the
capitalist democracy determine policy directions and will steer policy decisions toward more
favorable outcomes for the elite (corporations, high-ranking government officials, etc.). An
example of this policy theory might include tax cuts for the wealthy while benefits for
economically disadvantaged groups may be less generous. The economically and politically
disadvantaged groups (i.e. Food Stamp or TA N F recipients) have little social, economic, and
political power to impact public policies.
Kingdons policy streams model also describes how multiple influences and actors
converge to make public policy decisions. The policy streams model is described as multiple
streamsstreams being problems, policies and new ideas, participants, and politicsthat
converge together in a policy window or an opportunity to form public policy. Kingdon analyzes
what makes a policy window opportunity emerge (or as he says, hot) in a particular time
while other policy choices, while being equally important, may not make it to the policy agenda.
For example, two years ago, immigration reform was a prominent topic on the policy agenda at
the federal level. When federal reforms were not instituted, states and local governments (including
748 | P a g e
Nashville) began instituting policies directed at curtailing illegal immigration, punishments for
businesses that hired illegal workers, and English-first language proposals. Now with emerging
policy concerns centered on the continued downward spiral of the economyimmigration
reform has taken a back seat to other policy considerations. Another example of
Kingdons policy streams model would include welfare reform in 1996public perceptions,
political agendas, and policy reform ideas converged to develop a massive overhaul of welfare in
the United States.
Policy Decision -Making Models
Understanding implementation of policy studies should also involve an understanding of how
policy decisions are made or the policy formation process or cycle (Anderson, Stone,
K i ngdon). Some scholars argue that an integration of implementation considerations should be
inherent in public policy formation (Wildavsky & Pressman; Elmore); however, much of the
public policy formation literature primarily outlines the formation process while focusing less
on the process of implementation.
The decision-making element of policy formation is of central concern in public policy research.
For example, several models exist to explain decision-making processes in public policy
formation: rational-comprehensive model; garbage can model (Cyert & March); mixed- scanning
(Etzioni). The rational-comprehensive model includes defining the problem, consideration of
policy alternatives and consequences, deciding between policy alternatives, then finally, policy
enactment. Herbert Simon advocates that bounded rationality of individuals limits rational
decision making. To Simon, bounded rationality suggests that public actors are limited in
their decision-making capacities because they have access to limited information or the
information may be filtered by the individuals own constructs and experiences. In
other words, individual actors do not always make rational decisionsthey are
limited by time, circumstance, experience, and information access; therefore, rational
decision making is limited by these boundaries (Simon).
Because of the bounded rationality constraints of actors, Simon would argue that many policy
decisions result in administrators and policy officials muddling through or what
Lindblom would characterize as incrementalism. The concept of incrementalism is considered a
descriptive theory in policy formation. In other words, prominent scholars like Wildavsky and
Lindblom would argue that incrementalism is
what
749 | P a g e
formation, thus,
normative theories of how policies should be made (i.e. rational-comprehensive approach to
policy formation) are not realistic.
The garbage can model suggests that policy decisions are made in organized anarchies.An
example might involve a university administrator who makes policy decisions and justifies the
rationale later. In the garbage can model, there are various forms of information that flow into the
garbage can of policy formation, these information flows are essentially combined, and the
resulting policy is a combination of various information sources and influences that
flow
Mixed-scanning (Etzioni) involves scanning the environment for the most pressing or seemingly
relevant policy issues, then addressing those policy issues first. In this way, some issues are
isolated and addressed by public policy, but not all. The disadvantage to this approach is that
there may be a tendency to focus on the bigger problems/issues or even crises while neglecting
other public policy concerns.
Public Policy Implementation: Top -Down, Bottom -Up, Hybrid, and Principal Agent Approaches
Anderson (2006) would note that the policy cycle has several stages, including defining the
problem and agenda setting, consideration of and decisions between possible policy
alternatives, implementation, and then evaluation of policy progress (success, failure, or the
jury is still out).
There are several approaches to policy implementation which will be discussed in the remainder
of this papertop down approaches, bottom up approaches, and hybrid approaches. Top down
approaches to policy implementation involve a strong hierarchical structure and would purport
that policies are implemented through higher level administrators, who are ultimately
responsible for the success or failure of policy implementation. In his early work, Aaron
Wildavsky was considered a top-downer. In Pressman and Wildavskys landmark
research on policy implementation in Oakland, California, they questioned why federal
work policies in Oakland failed. Their assumptions centered on what administrative and
political officials did or did not do correctly in the policy formation process and advocated that
if policy structure is viable, then implementation should not be a problem. Pressman and
Wildavsky looked for holes in the policy formation, structure, and development
750 | P a g e
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Public policy implementation studies can also be informed by other theories, namely
principal -agent
implementation, lets assume that the principals are policy makers, such as
administrative managers and politicians while agents are in charge of implementing
public policies through various mechanisms.
Forrester would suggest that agents may act in their own self interests in order to preserve power,
status, or resources and withhold information from the principal (moral hazard). As applied to
public policy implementation, lets take the example of the state of Tennessee policy
makers (principals) contracting out work placement services of TAN F/Families First (aka
welfare) clients. In other words, the state has private agencies finding work for TANF clients
rather than the Tennessee Department of Human Services. If the work placement agencies (in
principal agent theory, the agents) act in their own interests by cutting costs or lack
the staff to help TANF recipients locate gainful employment, these actions inhibit successful
policy implementation.
Future Directions of Implementation Research
Scholarly consensus can be reached on the value of all public policy implementation
approachestop-down, bottom-up, and hybrid and even the inclusion of other theories, such as
principal agent theory. The hybrid approach has had the most converters, such as Wildavsky and
Elmore, and appears to be more descriptive of implementation reality. While the hybrid
approach in public policy implementation may lead to further developments in public policy
researchnot only for the implementation discourse, but for the policy formation discussion,
it is this authors position that even the hybrid approach may no longer be sufficient. Since
many public policies are implemented by a variety of actorsnot just in public agencies, but
increasingly in private agencies as wellshould there be also be a top-down, bottom-up, and
sideways (private organization implementers) approach to public policy implementation?
If public administration research points to the influences of both top-level (politicians and
administrators), as well as bottom-level public officials (agency representatives, case workers,
social service agency personnel), in addition to other actors in the private sector now involved in
the delivery of public services, then should it not follow that all of these groups should be
involved in public policy formation? If we refer back to various policy-making models, such as
elite theory or group theory, then it may be suggested that Lipskys street-level bureaucrats will
still have limited input in policy formation while ultimately still impacting the policy
752 | P a g e
implementation process. In addition, if the key players (administrative and political, personnel
and agency representative, as well as private agency representatives) are all involved in the
policy formation process in order to impact implementation, then it is this authors
contention that public policy implementation research will expand to include as many theories
and perspectives as public policy formation and decision-making models.
TSU: Ph.D. Public Administration Comprehensive Exams
Spring 2009 Thursday, February 26, 2009
QUESTION TWO: In his classic 1940 APSR article, V.O. Key discussed the absence of a
theory of budgeting that addresses the fundamental question, On what basis shall
it be decided to allocate x dollars to activity A instead of activity B? Discuss the
development of scholarly attempts to remedy this lack, citing relevant literature. Would
you argue that a useful theory or theories of budgeting have been developed? Why or why
not? Have any of these theories adequately distinguished the differences between capital
and operational budgeting?
V.O. Keys often cited question--On what basis shall it be decided to allocate x
dollars to activity A instead of activity BI forms the basis for trying to determine if
there is, in fact, a budgeting theory or if public administration is still working toward one. While
there have been significant scholarly attempts to remedy this lack of budgetary theory, some
would advocate that a theory of budgeting is a theory of politics (Wildavsky) and
that incrementalism is the primary method through which budgeting decisions are made.
With those concepts in mind, additional attempts at developing a theory of public budgeting
are unnecessary (Wildavsky). This paper will discuss not only various budgeting theory
proposals, but also budgeting concepts and historical changes in U.S. public budgeting which
ultimately provide a background to the academic discourse on public budgeting theory.
Public Budgeting Concepts
A public budget is an accounting, political, policy, and management tool (Rubin). A
budgetin a very general senseis designed to balance expenditures and revenues (or expenses
and income, for example, in a household budget). However, public budgeting involves more than
just a simple balancing of expenses and revenue. Because a public budget involves decisionmaking, policy choices, and resource allocation for a society, the public budget involves value
decisions that affect a large group of people (Wildavsky; Rubin; Caiden; Mintz & Stevenson).
Historical budgeting reforms have emphasized various utilities of the budge tas a control
753 | P a g e
754 | P a g e
government buys, but what it does so government activities were the primary focus
(Tyer and Wiland).
During the 1960s and under President Lyndon Johnson, budgeting was used as a planning tool
under the Programming, Planning, and Budgeting System (PPBS). The primary aim of PPBS
was multi-year planning to determine program budgets. However, PPBS was replaced by ZeroBased Budgeting (ZBB) under President Jimmy Carters administration. Under
ZBB, program and administrative budgets had to essentially start over each year
budgets could not use the previous years budget to determine the current or future
budgets, thus, ZBB required that agencies justify their programs and expenditures year
after year. By the 1980s, ZBB ceased under President Ronald Reagan and there were efforts
at curtailing the federal budget deficit, thus a series of acts were implemented to address these
issues. In the 1990s under the Budget Enforcement Act, budget expenditures had to be balanced
with increases in taxes or cutting other expenses, but by 2002 the BEA was not re-instated.
Since then, the U.S. federal government has spent more and taken in less. As a result, the
United States is currently facing an enormous budget deficit, thus, annually increasing the
total federal debt (Rubin).
Many budgeting theories center on how the budget is a reflection of broad economic and political
changes in a society, thus, a socio-historical overview is important in understanding public
budgeting theoretical development. Janet Kelly discusses budgeting phases and reforms
through changes in society or what she refers to as public-regarding and privateregarding. As an example, the New Deal period was a reflection of publicregarding in budgeting decisions whereby resource allocations were made in
concurrence with dominant policy decisions at the time that aimed to institute economic and
work assistance to the middle class and poor. Because many New Deal policies were aimed at
lifting the country and its citizens out of the Great Depression, public-regarding was the
dominant theme in budgeting during this ti me period (Kelly). The 1980s and 1990s were
considered a time of private-regarding for the following reasons: 1) the lack of trust in
government performance and accountability, 2) more emphasis on private agencies taking on
tasks previously filled by government agencies, 3) tax cuts and trickle-down economics.
These examples refer to the shift in resource allocation from the public to the private
sector, as well as general budgeting policies that focused on expanding private agency roles in
the delivery of government services and emphasizing government accountability and
entrepreneurship (Kelly).
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public-choice
theory
of budgeting
suggests that
individual actors or
greedy
bureaucrats(Forrester), act in their own self interests to maximize their utility. In publicchoice theory, actors support policy and budgeting decisions that reflect their own self interests
rather than the public interest, whether we are referring to individuals or bureaucratic
administrators or personnel. Under this theoretical umbrellaeveryone is out for themselves (or
756 | P a g e
their agency).
Other budgeting theories include Mintz and Stevensons theory of budgetary tradeoffs
or what may be referred to as the guns versus butter argument. In this theory,
defense
allocations may be made at the expense of programs for the poor, thus, budgetary decisions
reflect a tradeoff which essentially reflects a value systemdo we want better defense or
more resource allocations for the poor? Mintz and Stevenson found that this theory does not
always hold true, but it is relevant in discussing value-based decision making in public
budgeting allocations.
Institutional economics theory has also informed public budgeting theory through principalagent (Forrester; Eisenhardt; Moe) and transaction cost theory (Whicker and Mo). Also, theories
of agency mission reflect public budgeting allocations. If the agency is distributive,
redistributive, or regulatorythese various agency missions will reflect varying budgetary choices.
Viable Public Budgeting Theories: Do They Already Exist?
Because this author tends to view public budgeting as a reflection of public policy choices, it is
this authors position that viable public budgeting theories already exist. Perhaps
because of this authors own paradigmatic view, which is essentially the Conflict
paradigm (Babbie; French, Spears, Stanley), public budgeting is reflective of existing theories1)
public budgeting as politics and 2) public budgeting as a conflict between competing interest
groups (i.e. Neo-Marxist, theory of budgetary tradeoffs). Budgeting as politics is relevant and
applicable (Wildavsky; Peterson, 2003) while public budgeting as reflections of socio-historical
changes (as well as Presidential choice) is also reflective of political influences (Tyer and
Wiland; Rubin). However, for this author, budgeting as a political process is not explanation
enough. A theory of budgeting centered in politics must also be combined with Neo-Marxist
theory (Rubin) or a theory of budgetary tradeoffs (Mintz & Stevenson). Put as succinctly as this
author can, it is my position that public administrators may be informed by the
interconnectedness of both the political and Neo-Marxist public budgeting theories, whereby
political preferences and power for budgeting resources may be understood in a framework of
social justice, struggles for power among advantaged and disadvantaged groups. Based on those
assumptions, theories of viable budgeting theories already exist (in this authors view).
Distinctions in Budgeting Theory between Capital and Operational Budgets
757 | P a g e
Capital and operational budgeting have traditionally been separated in the federal budget process
to eliminate issues where capital projects may be initiated but not completed due to inadequate
funding. However, the public budgeting theories that this author is familiar with do not
distinguish between capital and operational budgets. It is this authors contention that
capital budgeting seems to be less transparent than operational budgeting and flies under the
radar in budgeting decisions and out of the black box. While it is understandable
that the federal government would not want to initiate building or infrastructure projects
without being able to complete these projects as a result of inadequate funding, thus the need for a
capital budget, it would seem that budgeting theories should incorporate both types of public
budgets.
The Future of Budgeting Theory (if there is one)
Naomi Caiden (from her work: The Great Unraveling) would suggest that contemporary public
budgeting and theory is characterized by uncertainty. The public is more resistant to tax
increases (thus, revenue increases for budgeting) while at the same time, th e federal government
is increasingly taking on more debt burden and entitlement spending (Caiden; Rubin; Peterson;
Wildavsky). This current system of budgeting in the United States (increased spending while not
being offset by increased revenues or spending cuts) cannot be sustained over the long-term and
can (or will) cause federal budget instability. Caiden would also suggest that this new wave of
instability within the budget inhibits the development of a budgeting theory. To develop a
budgeting theory, the public budget must become more stable (Caiden).
However, as this author has noted, public budgeting, even amidst instability, could still be
understood in the context of political decisions and power advantages. To illustrate in the
current economic crisis in the United States, even amidst public concerns over the rising
national debt, there is still a political resistance to raising revenues (i.e. raising taxes). The idea of
raising taxes is politically unpopular, even in the midst of great uncertainty about the
future of entitlement programs on which much of the United States population depends, not to
mention concerns about the rising debt for future generations (Caiden; Peterson, 2003). In
addition, Cai den notes that even if concerns over the national debt are not central, concerns
over the interest on the debt is a concern in the federal budget pie. Currentl y the interest on the
national debt comprises as much (or maybe as much by now) of the federal budget pie as
Medicaid. Peterson (2003) notes that many middle-class Americans benefit more from federal
entitlement programs, such as Medicare and Social Securi ty, and have traditionally had the
power to resist any changes or overhauls in these programs. These trends, again, point to the
758 | P a g e
political unpopularity of reforming entitlement programs, raising taxes, even in the midst of fears
that the U.S. federal government has officially over-extended itself financially.
Given contemporary events and budgeting challenges, public administration discourse on public
budgeting issues should be enhanced and expanded. While the search for a possible unifying
theory of budgeting may still be on the horizon, practitioners in public administration are
currently dealing with more practical issues involving securing funding for government
services. Focusing on how to help public agencies navigate these uncertain budgetary times may
prove to be more challenging for public administration researchers and theorists than agreeing
on or determining a theory of budgeting.
TSU: Ph.D. Public Administration Comprehensive Exams
Spring 2009 Friday, February 27, 2009: DAY TWO
QUESTION THREE: It has been argued that the field of public administration theory is in
crisis. Do you agree with this argument? In your answer, address the paradigmatic issues
that gave rise to this argument and explain any relationship you see between th ese
paradigmatic issues, the status of the field, and future theory development.
Vincent Ostrom was one of the first to suggest that there was an intellectual crisis
in public administration. Behn said the field needed big questions to focus on the macro
issues public administration should begin to addressstarting with public management--in
order to really move forward as a field. Neumann said Behn was correct that public
administration needed to address some big questions but Neumann suggested that
those questions should center on public organizationstheir roles, processes, efficiency,
motivation, etc. Kuhn suggested that for a field to be considered in the normal science
context, it must have the elements necessary for a paradigm, so with that concept in mind, is
public administration really a science, a discipline, a fieldwhat is it? Waldo suggested that
public administration was more like a profession, similar to medicine. Denhardt and others
have suggested that most of the students that have emerged from U.S. public administration
programs have produced research that is more applicable to their current professional roles and
that Ph.D. public administration graduates are more interested in advancing their professional
status and padding their resumes rather than advancing the field with new and scholarly
research in Public Administration.
While all of the above examples suggest that it may not be clear what the future of Public
Administration research and education looks like, or what the dominant paradigm in public
759 | P a g e
public institution theory (public organizations are part of a larger network of social
institutions)
public choice theory (bureaucracy undermines democracy; bureaucrats are self interested;
market should be more involved than government)
decision-making theory (how are political and administrative decisions made in the name
of the public interest)
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public organization theory (what are the processes and motivations in a public organization;
how does the structure and organizational culture influence public organization efficacy)
In addition to these theories, public administration has also been thought to coincide with models
of government (Stillman; Peters).
Public Administration Reflects Models of Government
Stillman would suggest that the academic field of public administration has followed the path of
state development. Stillman cites four models of public administration aligned with state
developmentno state, bold state, pre -state, and pro -state. Similarly, Peters
postulates that there are other models of government that public administration practice and
focus has coincided with: market, participatory, deregulated, and flexible government .
Side-by-side comparisons of both
Stillman
and
Peters
models
show
strong
similarities. For example, in Stillmans Bold State and Peters Market model, there is an
emphasis on a strong executive and use of market forces in the delivery of government
services. Both the Market and No-State models are reminiscent of public choice theory. On
the opposite end of the model continuum is Stillmans Bold State and Peters
Participatory Governmentboth of which include a strong bureaucratic structure,
emphasis on citizen participation, a belief in government and its ability to address social issues.
In Stillmans Pro-State and in Peters Deregulated government, there is more
inclusion of professional experts or what Stillman refers to as technocratsthe focus is on
contracting out services in the way of government consultants, technical skills, information
management, and other specialty areas. In other words, these models reflect a government partially
controlled by professionals in various business and technical fields who claim to be experts, but
who, according to Stillman, are tied to both the public and private sector and have no strong interest
in maintaining the public good, as they are only there for the job and to carve out their niche in their
specialty area.
In both Peters and Stillmans typologies, public administration is situated
within models of states and governmentsthus public administration practice resembles
government structure and goals.
Paradigms: What Are They?
What is a paradigm? One answer might be, it depends on who you ask. The what
is a paradigm discussion has been plagued with semantics issues. Even Thomas Kuhn
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(considered the main culprit/genius in beginning the paradigm discussion among sciences)
and others (Rainey; Henry; French, Stanley, Spears) may have differing versions of exactly
what a paradigm is. While many define what a paradigm is in a somewhat similar waythat
is, a paradigm is a way of viewing, a perspective on the world, a perspective on reality and the
way things workmost of the disagreement comes from the way paradigms are
conceptualized.
The use of the word paradigm is present in many academic disciplines, but how it is used and
what it really means is the central question. However, across disciplines most would agree that
understanding ones own paradigm is essential in understanding other paradigmatic
views. A logical next question might be, why is it even important to understand ones
own paradigm? If we know that we view the world through one paradigmatic lens,
it helps us see the other side or anothers view which can be useful in
understanding society and government, thus, this could be a positive direction in
understanding public policies and informing public administration. In the social sciences,
ones paradigm informs many facets of researchthe research question, the research
methodology, the research focus, etc. For example, if I understand my paradigm to be within the
conflict perspective (Babbie; French, Spears, Stanley; Burrell and Morgan) then this explains
why I am interested in social injustice, why I may choose the research projects that I do, and
why I value research that uses quantitative and qualitative perspectives, but I also understand
that social events are interpreted by actors and researc hers in different ways. With these
concepts in mind, how might oness paradigmatic view shift or be altered?
For ones paradigm to be altered, resulting in a paradigm shift, all previous
assumptions about an issue or social phenomena must be overturned. To illustrate with an
example from the natural sciences, previously the world was thought to be flat and this was
the dominant paradigm. Later, a new truth was discovered the world in fact was not flat but
roundthus replacing the previous paradigm or causing a paradigm shift (Kuhn). Unlike the
natural sciences, however, social science truths are not necessarily replaced or
completely overturnedthey may still be on the periphery and not completely abandoned.
As a public administration example of how social science paradigms may just move to places
of greater prominence rather than being replaced (Kuhn), lets use Henrys version of
paradigms. Once the predominant concepts in scientific management (during
Taylors time) were abandoned to include more of a human element, the concepts of
762 | P a g e
achieving efficiency in organizations were not entirely abandoned it was still true that there was
a desire for organizations to become more efficient, there was just a progression in thought about
how this might be accomplished.
Now that we have what some paradigm concepts out of the way, lets evaluate various
paradigm developments in public administration.
Paradigms in Public Administration: Do We Have One?
Nicholas Henry suggested that public administration has five paradigms, which
essentially divide the discipline into time periods and focus areas:
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4) government is good, it can do great things, and public administrators should strive to serve
the public interest through both practice and research (Raadschel ders; Svara; Frederickson;
D enhardt)
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While this author has not abandoned these previous perceptions of what public administration
is or should be, it is true that I am skeptical about the future of the field, but not because there
is a lack of an overarching paradigm or continued disagreements about overarching theories.
Where this author feels a level of concern for public administration lies in the following areas:
1) continued public distrust in government and the lack of value that much of the public
places on public administration and government roles and services (particularly in the
wake of this current economic crisis)
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QUESTION FOUR: To enhance accountability President Obama has asked you to study
various approaches to accounting in government and nonprofit organizations. What
approaches would you consider? What are the strengths and weaknesses of each approach?
Which approach/method would you recommend to the President? Given the Sarbanes -Oxley
Act would this approach be as useful in the case of both government and nonprofit
organizations?
President Obama has a strategic vision for the United States which includes restoring the
countrys economic stability while simultaneously returning to a focus on federal
government responsibility and accountability. While President Obama has asked the public and
private businesses to support, as well as assist, in the responsibility of lifting the country out of
the current economic crisis, he has also promised organizational and financial accountability, as
well as transparency, within the federal government.
Government accountability for the publics financial resources has never been as
important as it is in the current political and economic context. Part of the challenge in managing
organizations involves accountability, and President Obama must meet this challenge. If he fails to
show accountability or transparency in the distribution of the countrys financial
resources, what will be the implications, not only for his legacy, but for the
countrys economic climate?
Including Financial Accountability in th e Strategic Planning Process
In this new Presidential administration, it is clear that President Obama and his staff will need
to encompass Mintzbergs concepts on strategy and visionhave a plan and a long-term
direction for the country in mind, while also allowing for creativity in solving complex social,
economic, and political problems. As evidenced by recent cases of corporate fraudon Wall
Street and in the housing loan industry, as well as various Ponzi schemesit is evident that
Sarbanes-Oxley has not been sufficient to prevent these types of accounting frauds. At the
same time, with the current economic crisis and public concern over the ever-expanding
government role in banking and other economic industries, as well as an increase in federal
spending and debt, it is clear that accountability measures will need to be put in place in order
to prevent government abuse and waste of taxpayer dollars. Part of the strategic planning process
involves developing management strategies that will address long-range goals and objectives. In
this new Presidential administration, the strategic planning process must involve financial and
accounting transparency, as well as accountability.
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During
President
Lyndon
Johnsons
administration,
PPBS
or
767 | P a g e
Programming, Planning, and Budgeting S ystem was put into place in all federal agencies. This
budgeting system was a reflection of strategic planning at the federal level, manifesting itself in a
budgeting and accounting mechanism. The design of PPBS encompassed multi-year
planning and the determination of a programs goals and objectives to determine funding and
budgeting allocations (Tyer and Wiland; Rubin). The strength of PPBS involved multi-year
planning which allowed a public agency to conceptualize long-term goals and strategies for
achieving organization objectives. During the 1970s ZBB or Zero -Based Budgeting was
instituted by President Jimmy Carter, modeled after a Texas Instruments budgeting system.
ZBB required agencies and programs to justify their programs year after year. Inste ad of
incremental increases each year, under ZBB program budgets began with a budget balance of
zero and started the justification process (Tyer and Wiland; Rubin). Performance -based
budgeting (PBB) was a Clinton era system which focused on program outcome s. However, there
are several considerations in measuring outcomes within public organizations or of
government services, such as, how do you measure the value of outcomes in public services
(Halachmi)? Additionally, is the costin time and financial resourcesof measuring
outcomes in government agencies and for public programs worth it? In a practical example,
lets assume that through the Tennessee Department of Human Services there is a
performance-based budgeting system in place to measure outcomes of the TAN F/Families First
welfare policy. If the Tennessee state legislature determines that in order to sustain budget
funding for the Tennessee Department of Human Services, the organization must reach a
particular performance criteriafor example, 75% of TAN F/Families First clients must be
working within two years. If this is the case and these are the conditions, what are the
challenges in measuring this performance criteria or outcomes of the current Families First
program? If administrative agencies are dependent on showing successful outcomes in
order to continue receiving funding, several questions must be addressed:
How will the data be collected? What will it cost for the data to be collected, analyzed, and
evaluated?
Will there be too much discretion of the agency in calculating the numbers?
How does the agency determine what the outcomes should be? Should the outcomes
include: Work hours? Work income? Families being lifted out of poverty?
768 | P a g e
clients in the workforceare those clients still living in poverty? Are their basic needs
being met? In other words, what value are the outcomes if the overarching social issue (lifting
TANF recipients out of poverty) is not accomplished?
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Appendix E
University of Georgia Comps
Questions
MPA Comprehensive
Examination Fall 2007
Directions: Answer one (1) question from each of the following sets.
PUBLIC ADMINISTRATION AND DEMOCRACY
1.
From your understanding of Woodrow Wilson's 1887 essay and the works of
Frederick Taylor, Max Weber, and Luther Gulick, develop an essay in which you
explore the possible logical connections between these scholars. What common
themes, if any, exist in the works of each of these individuals? Do any of the major
arguments developed by each complement works by the others? If so, explain the
connection.
2.
administrators, as they go about the ir tasks of implementing the law, should make
value judgments designed to further equity in the provision of public services. How
could some scholars and administrators argue in support of this view? Why would
some observers find this use of administrative power undesirable? What is your view
on the issue?
PUBLIC PERSONNEL ADMINISTRATION
1.
You recently went on a job interview for the position of Assistant Personnel
Director with a large local government. In the intervi ew the Director asked you how
your Masters in Public Administration prepared you for the position and if your
degree provided you with unique insights into human resources management issues
in the public sector. He went on to ask if you felt you were more or less prepared
than an applicant with a Masters in Human Resources Management. Write an essay
that explains how you would respond to the Director.
2.
In merit systems, applicants for employment are screened for selection on the
basis of their performance on open competitive examinations. What are the various
types of examinations that are commonly used in the public sector? Ideally, how
would such examinations be developed? What is the concept of examination validity,
and how do we attempt to determine the v alidity of examinations used for selection
771 | P a g e
1.
2.
and performance information into the resource allocation process. What have
been the motives for such efforts? What have been the principal systems or
techniques used? What is the empirical evidence about the degree of success of
such efforts?
PUBLIC MANAGEMENT
1.
Privatization of public services and activities has been one of the major
trends in governments around the world across the last several decades. Write an
essay on privatization in which you describe the trend and discuss the kinds of
functions or activities that governments are privatizing. Suggest reasons for the
privatization trend, and any evidence that you know regarding the impact of
privatization. Also, please discuss a ny significant issues that privatization raises
for public management.
2.
A topic that often surfaces in public management is reform. What have been
some of the major reform movements that have affected public management over
the past century? What important changes have the various reform movements
advocated for public management? To what extent have these changes been
implemented and sustained over time in public management? Which of the suggested
772 | P a g e
changes do you consider most useful? Which of the suggested c hanges do you
consider least useful? Please explain all answers and refer to the relevant literature.
MPA Comprehensive Examination
Spring 2008
Directions: Answer one (1) question from each of the following sets.
PUBLIC ADMINISTRATION AND DEMOCRACY
1. It is
and
administration. But is that really accurate? What about, for instance, the
idea of a merit-based civil service system insulated from partisan political
decision making? Is this idea old fashioned? Still relevant? If public
administration is involved in politics, are there some forms of politics which
can and should be kept out of administration? If so, explain the distinction
and use examples. If not, is there any legitimate justification for
773 | P a g e
Comprehensive
Examination
Summer 2008
774 | P a g e
Directions: Answer one (1) question from each of the following sets.
PUBLIC ADMINISTRATION AND DEMOCRACY
1. Reviewing the last 5 years of comprehensive exams, the most frequently
asked
question
in
this
section
of
the
exam
concerns
the
field of public
775 | P a g e
th
equity-lotteries, if
regarded as a tax rather than a voluntary payment, are regre ssive in that they
place a greater relative burden on low income players, than on high income
players, and (5) fungibility-lottery proceeds may be substituted for state general
funds. An empirical literature has evolved around several of these concerns. What
are the most important pieces of empirical research about lotteries? What were
their methods and findings? What important empirical questions about state
lotteries remain to be addressed?
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2. Citizens of Athens-Clarke County entering the voting booth on Nov ember 2, 2004
will be given the opportunity to vote Yes or No on the following question: Shall a
special 1 percent sales tax be imposed in the special district of Athens -Clarke
County for a period of time not to exceed six years and for the purpose of rai sing
an estimated amount of $122,000,000 for [various projects listed]? Describe the
principal features of the Special Local Option Sales Tax (SPLOST) in Georgia.
Applying
standard
tax
evaluation
criteria,
assess
the
advantages
and
disadvantages of SPLOST.
Part III: Please answer one of the following two questions:
1. Assume you are serving in an advisory role to a country that is in transition from
a planned economy to a market economy. Your task is to design an
intergovernmental financial system and local budgeting processes. Describe the
design for the system and processes, as well as the necessary steps and pre conditions for implementing the design. Include in your discussion any existing
literature and research on this topic.
2. During the recent period of fiscal stress in the American states, budget
stabilization, or so-called rainy day, funds have received increased attention from
policy makers and researchers. With specific reference to the existing literature on
this subject, assess the role of budget s tabilization funds in state government
budgeting.
Doctoral Examination
Public Budgeting and Finance
Fall 2005
(Morning Session)
Part I: Please answer one of the following two questions.
1. Since the approval of the Local Option Sales Tax by the Georgia Genera l
Assembly, most of the 159 Georgia counties have adopted the LOST, SPLOST
and/or ELOST programs. These programs have had obvious impact on the
finances of the counties. Elaborate on the observed effects of adopting one or all
of these programs by the counties, citing literature and providing an empirical
model that you may use if you are to conduct a study of these programs.
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2. Public budgeting has proved to be a rich source of debate among scholars and
practitioners alike. The purposes, methods and outcomes have been challenged
repeatedly. As a result, budget reforms are common, and some might say too
frequent. Budget reforms such as line -item budgeting, zero-based budgeting, and
performance- based budgeting were all developed in response to perceived
shortcomings in some other system. They become popular only to become the
target of later reform efforts. Choose one such reform; discuss its theoretical
origins, its proponents critiques of prev ious methods, and the empirical evidence
from the scholarly literature with respect to the outcomes the reform generated.
(Afternoon Session)
Part II: Please answer one of the following questions.
1. Several local governments in Georgia are currently considering a policy of tax
freezing. Under such a policy, assessed value would be frozen at the time of
purchase and would remain unaltered until the next change of ownership, at
which time a new assessment would be applied, to be followed by another freeze
that would remain in force until the next change of ownership, etc. Tax rates might
change from year to year, but property assessments would not. Discuss the
motivations for, and fiscal implications of, such a local government tax policy. Do
you recommend adoption of such a policy? Why?
2. In recent years, there has been considerable interest in performance budgeting.
What is performance budgeting? What are its antecedents? With specific reference
to empirical research on the subject, how successful has it been in penetrating
traditional budgeting practices at the national and state levels in the U.S.? What
recommendations would you make to national and provincial governments in
China regarding adoption and implementation of performance budgeting?
Part III: Please answer one of the following questions.
1. What have been the contributions of the following laws to the development of the
federal budgetary process: the Budgeting and Accounting Act of 1921, the
Congressional Budget and Impoundment Control Act of 1974, the Balanced
Budget and Emergency Deficit Control Act of 1985, the Budget Enforcement Act
of 1990, and the Line -Item Veto Act of 1996? How have they influenced the
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budgetary roles of Congress and the president? How has each influenced federal
budgetary policy? Cite the most authoritative literature at appropriate points in
your essay.
2. Congressman John Linder (R -GA) and others have proposed a national sales tax as
an alternative to the current federal income tax. Applying standard criteria for the
evaluation of taxes assess the national sales tax proposal.
Doctoral Examination
Public Budgeting and Finance
Fall 2006
(Morning Session)
Part I: Please answer one of the following two questions.
1. According to a recent Wall Street Journal story (Sept. 7, A20), the hottest issue in
the fall 2006 Democratic primary for governor of Massachusetts is income tax
cuts. Two of the three Democratic candidates advocate cutting the state' s flat-rate
individual income tax to 5 percent. In fact, the general inclination towards
proportional taxation has been gaining momentum since the 1970s, with California's
Proposition 13 triggering a domino effect reversing the, progressive taxation
principle
that
had
been
on
the
rise
then.
T'iseuss
the change in attitudes among Americans in the past century towards progressive
and proportional taxation, as well as the ability -to-pay and benefit principles of
taxation at the state and local levels. Cite important literature on taxation, growth
of the public sector, and public financial administration.
2. In July 2006 the governor of New Jersey fought a battle with the state legislature over
an increase in the state sale s tax and the use of revenue it generated. The
governor wanted to use revenue from the increased sales tax to balance the state's
budget. The legislature wanted to use most of the additional money for property tax
relief. This battle involved almost every aspect of the relationship between the
executive and legislative branches over budgetary institutions such as budgetary
authority, balanced budget requirements, gubernatorial veto powers, legislative
control of the purse, budgetary procedures, budgetary impasses, and so on. The
dispute also reveals changing attitudes among politicians towards revenue
portfolios, i.e., what tax types and tax structures to adopt. Write a comprehensive
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accurately, valuation estimate disparities are produced. These valuation disparities create
taxation inequities, that is, the tax burden (tax paid) is not distributed in an equitable
manner. Please describe the way you would compare the tax burden of different
households and discuss the equity criteria you would apply.
Doctoral Examination
Public Management
Fall 2006
(Morning Session)
Part I: Please answer one of the following two questions. You have three hours to
complete your answer.
1. Choose two theories or conceptual frameworks that have relevance for public management
theory and research. Examples include principal-agent models, transaction cost theory,
contingency theory of organizational design, institutionalization theory from organizational
sociology, a theory about a particular topic or concept, such as a motivation theory or a
leadership theory, or other important theories or frameworks that you choose. Explain each
theory and discuss its applicability to public management theory and research. Critique
each theory or framework, explaining ways in which it is valuable or not valuable, and
the theoretical and research questions it helps to answer, or fails to answer.
2. Organization theorists have heavily emphasized the influence of an organization's external
environment on the organization's structure, processes, leadership imperatives, and other
organizational dimensions. They have tended to emphasize such environmental
characteristics
as
uncertainty,
"institutional"
influences,
and
evolutionary
processes. Scholars and experts concerned with public management often contend that
government organizations tend to face distinctive environmental influences, components,
and dynamics. Discuss this difference in perspective on organizational environments.
Why is there a difference between more "generic" organization and management theory,
and public management perspectives? What do the public management scholars point
to as the distinctive environmental characteristics and influences on public organizations,
and what do they say about their effects on organizations and the people in them?
(Afternoon Session)
Part II: Please answer one of the following two questions:
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Part I: Please answer one of the following two questions. You have three hours to
complete your answer.
performance:
The second section involves strategic planning,, and weighs whether the
agency establishes valid annual and long -term
term goals for its programs.
The fourth section of questions focuses on results that programs can report
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that their research has found significant differences between public and private
organizations are, in actuality, showing their incompetence in research design.
Specifically, they are working with misspecified models. The alleged differences
between public and private organizations vanish if one controls for such factors as
the size of the organization, the nature of its resource base, and its function.
Evaluate this argument and the ev idence, both supporting and refuting evidence.
Most important, do not just provide a literature review. Evaluate the technical and
logical merit of the argument as well as its epistemological implications.
2. Privatization of public services and activities ha s been one of the major trends in
governments around the world across the last several decades. Write a scholarly essay
on privatization that includes references to major scholars or experts and to
research findings to the extent possible. Describe the tre nd including its major
features, such as what governments are privatizing and how, and what are the
alternatives and patterns of privatization? Suggest reasons for the privatization
trend, and any evidence that you know about to support these suggestions. Is
there any theory that supports the trend, and if so, what is your assessment of it.
Discuss major issues that privatization rises for public management.
Doctoral Examination
Public Management
Spring 2006
(Morning Session)
Part I: Please answer one of the following two questions. You have three hours
to complete your answer.
those who see public management and leadership as distinctive concerns the
influence of the "political" or governmental context. How should we conceive
of this political, governmental context? How should we define it? What
should it include? What are its most significant characteristics? What are the
most important claims about how this context influences two of the following
activities or characteristics of government organizations: decision-making;
organizational change; organizational design and structure; administrative
discretion and authority; leadership in general; incentives and motivation of
leaders and/or others in the organization. State several hypotheses about the
influence of the political context (and/or governmental, institutional context) on
one or both of the two activities or characteristics that you have chosen.
Describe a research project that would test one or more of these
hypotheses, including details of the research method such as the method of
collecting evidence or data, analytical methods such as statistical method if
applicable, the nature of the sample and unit of analysis, and other important
matters you would cover in a research proposal.
2. In governments at all levels in the U.S. and other nations, the problem of
attracting, keeping, and motivating good employees poses a serious challenge.
A major contemporary concern focuses on the impending retirements of "baby
boomers" in the U.S. and similarly aging managers and employees in other
nations. These developments increase the significance of keeping people
satisfied in their work and committed to it, so that people approaching
retirement will not seek to retire early and so that government agencies can
have
the
ability
to hire
people
because
the
replacements see the agency as an attractive place to work. Concepts from the
study of organizational behavior and organization theory clearly have relevance
to this matter, including such concepts as organizational commitment, job
design and job involvement, leadership, and work satisfaction. Choose two of
these concepts and review the research and theory pertaining to them. Describe
the most important theories, concepts, ideas and frameworks that figure
importantly in the literature on these topics. Select the most important of
these theories, concepts, or ideas that have useful implications or applications
for the challenges described above. How might they apply to analyzing those
787 | P a g e
2. Privatization of public services and activities has been one of the major trends
in governments around the world across the last several decades. Write a
scholarly essay on privatization that includes references to major scholars or
experts and to research findings to the extent possible. Describe the trend
including its major features, such as what governments are privatizing and
how, and what are the alternatives and patterns of privatization? Suggest
reasons for the privatization trend, and any evidence that you know about to
support these suggestions. Is there any theory that supports the trend, and if so,
what is your assessment of it. Discuss major issues that privatization raises
for public management.
III. Please answer one of the following two questions:
management
theory?
Propose
study
that
illuminates
where
public
Part I: Please answer one of the following two questions. You have three hours to
complete your answer.
outlet for research on public management, that many of those researchers saw
as distinct from more traditional public administration. Whether or not you are
familiar with the history of NPMRC, discuss the distinction between public
management and public admin istration. Why might the NPMRC participants
see such a distinction, and what form might the distinction take? What topics,
types of research and/or scholarship, and theoretical bases might differ
between the two topics? Cite important scholarly works and
authors to
acted
upon
to
enhance
effective
leadership
of
people
in
organizations. If you agree with the statement, justify your position with a
review of the relevant research and theory, and i ts applicability. If you
disagree, justify your position with a specific analysis and critique of existing
research and theory. Explain all answers, taking into account the relevant
literature.
2. Many proposals for improving and reforming public management i nvolve
applications of a market model to the design of public services and programs.
Reformers call for more privatization, contracting out, user fees, and other
arrangements
for an
Part I: Please answer one of the following two questions. You have three hours to
complete your answer.
1. Identify three research questions that are now of great importance t o the field of
public management, and explain why they are important. Sketch the
important research literature that has developed on each, and summarize the
current state of the available findings. Select one of these questions and
indicate what kinds of additional work are needed to help clarify the answers
to the question.
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1. Consider the following quote: Research on red tape is much ado about
nothing. In the first place, red tape researchers have simply discovered
formalism, a topic that sociologists have been dealing with since Weber. In
the second place, the research has not been cumulative and has not been
linked to theory. It is really nothing more than a tribute to the power of blind
empiricism. In assessing the quote, be sure to show intimate familiarity
with theory, research, instrumentation, and substantive findings.
the
relationship
between
the
research
field
of
public
Does
it
designate
coherent
theoretical
and/or
external
environment
on
the
organizations
structure,
with
public
management
often
contend
that
government
793 | P a g e
Numerous models have been proposed to help us understand the policy -making
process. These include, but are not limited to, systems models, incrementalism, policy
streams, the advocacy coalition framework, and punctuated equilibrium. Develop an
essay in which you discuss each of these five approaches. What are the major tenets
of each? How does each approach help us to understand public policy making' What
research questions do they lead us to ask? Which approach or model do you believe
is most useful and why? Please reference all appropriate literature.
(Afternoon Session)
Part II: Please answer one of the following questions.
Question 1:
Given the emergence of complex, networked patterns for policy imp lementation,
what are the implications for theory development in policy implementation? In
particular, what should one conclude about the relative utility and validity of top down, bottom-up, and other approaches to empirical theory regarding policy
implementation?
Question 2:
Discuss the economic arguments for and against contracting out government
services. Under what general conditions is contracting out likely to be an efficient
means of governing production relationships? Address the issues of contrac t
bargaining and monitoring costs in the context of the principal -agent problem. Cite
specific examples of government services where contracting -out has been relatively
successful and cases where it has been unsuccessful. Be sure to discuss the
reasons for success (or lack thereof) in light of the general conditions that facilitate
efficient contracting-out.
Part III: Please answer one of the following questions.
Question 1:
The State Children's Health Insurance Program (SCHIP) is aimed at improving health
insurance coverage for low -income children. At its inception, states were given the
freedom to design their own SCHIP programs. Over time, states either created
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Question 2:
Numerous models have been proposed to help us understand the policy -making
process. These include, but are not limited to, systems models, incrementalism, policy
streams, the advocacy coalition framework, and punctuated equilibrium. Develop an
essay in which you discuss each of these five approaches. What are the major tenets
of each? How does each approach help us to understand public policy making? What
research questions do they lead us to ask? Which approach or model do you belie ve
is most useful and why? Please reference all appropriate literature.
(Afternoon Session)
Part II: Please answer one of the following questions.
Question 1:
Complete information is a requirement for achieving efficiency in perfectly competitive
markets. In cases where actors have a preference for discrimination, complete
information may lead to increased discrimination. For example, real estate agents often
recommend that African-Americans
Americans hide family photos when they are selling their
homes. This
s recommendation to withhold complete information is an effort to
eliminate buyer discrimination.
5. What criteria would you use to evaluate policies aimed at preserving access to
information and limiting discriminatory behavior?
Question 2:
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What are policy implementation networks? Trace their emergence in both the academic
literature and world of practi ce. Explain how such networks strain traditional
conceptions of public management and organizational theory, and explore their
implications for such age --old
old public administrative concerns as the politics administration dichotomy, the blurring of the publi c and private sectors, and the quest
for bureaucratic accountability in democratic government. In the final analysis, how
can networks be managed more effectively, and how can policy be formulated and
implemented more effectively in networked settings?
Part III: Please answer one of the following questions.
Question 1:
Describe the purpose, content, and impact of symbol manipulation in policy
formulation and adoption. Offer empirical evidence and support from theory.
Construct a research design that investigates the value and impact of symbols in
policy.
Question 2:
Charter schools are publicly funded elementary or secondary schools which have
been freed from some of the rules, regulations, and statutes that apply to other
public schools, in exchange
e for some type of accountability for producing certain
results, which are set forth in each school's charter. Discuss the efficiency and
equity implications of education policies that allow charter schools to operate
alongside traditional public schools. What are some potential problems with the
public funding of these schools? What other political goals (aside from efficiency and
equity) should be taken into account in policy discussions concerning charter schools?
How would you design an evaluation to test
est the effects of charter schools on
educational outcomes? What are some of the outcome variables you would use in
this type of evaluation?
Doctoral Examination
Public Policy
Spring 2006
(Morning Session)
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Part I: Please answer one of the following two questions. You have three hours
to complete your answer.
Question 1:
An Individual Training Account (ITA) is essentially a voucher given by government to
qualified individuals who need occupational skills training to become gainfully
employed or re-employed. The ITA program is implemented by Workforce
Investment Boards (WIB) established by federal/state partnerships.
An ITA is provided after an assessment of individual needs, demand for labor in
selected occupations, and local WIB policies. Depending upon local policy, the ITA
may be approved by number of people within the WIB: a individual's career
advisor, a committee, a representative of the local board, or other persons. This
process will reflect what is determined locally to provide the appropriate balance
between accountability for training funds and effective customer service.
Individuals may use their ITAs to purchase training slots in any program on the
eligible program/provider list. Local Workforce Investment Boards also establish
monetary and time limits for an ITA.
Drawing on the relevant literature answer two of the following:
b. Identify
and
discuss
an
effective
design
for
evaluating
the
writers who do not talk about 'implementation' per se, and indeed may approach it
from very different backgrounds to the public administration specialists who do so."
Are they correct? What kinds of research can and should be relevant to those
interested in policy implementation? What kinds of theory building holds the most
promise for a general understanding of policy implementation?
Question 2:
The private sector provision of what has been traditionally provided by the
government has become increasingly common. Contracting to the private sector is
seen by some analysts as a panacea for bureaucratic inefficiency. Discuss the
problems that typically arise when bureaucratic supply is the sole form of
production. Provide a detailed exposition of the sources of inefficiency. Describe
the rationale as to why "contracting out" may fix these problems, and describe
ways in which the efficiency theory of the private sector may not hold.
Doctoral Examination
Public Policy
Spring 2007
(Morning Session)
Part I: Please answer one of the following two questions. You have three hours to
complete your answer.
Question 1:
Policy theorists have long debated whether there really exists an efficiency -equity
tradeoff with respect to market outcomes and the impact of social interventions.
Summarize the opposing views. In particular, explain the idea of the efficiency -equity
tradeoff and what factors are responsible for it according to the standard neoclassical
economic view. Discuss criticisms of the economic viewpoint, especially in view of the
limitations of the efficiency concept and/or the potential for public interventions to
increase both efficiency and equity in some cases. Under what circumstances might it
be possible for social scientists to reach a stronger consensus on the relevance of
the efficiency-equity tradeoff?
800 | P a g e
Question 2:
Numerous models have been proposed to help us understand the policy -making
process. These include, but are not limited to, s ystems models, incrementalism, policy
streams, the advocacy coalition framework, and punctuated equilibrium. Develop an
essay in which you discuss each of these five approaches. What are the major tenets
of each? How does each approach help us to understan d public policy making? What
research questions do they lead us to ask? Which approach or model do you believe
is most useful and why? Please reference all appropriate literature.
(Afternoon Session)
Part II: Please answer one of the following questions.
Question 1:
As a policy advisor you have been commissioned to evaluate the distribution of
income in a country. You are told the following:
Question 1:
Within the broad literature on innovation, most of which is rooted in sociology and
economics and focuses on technological innovation, there is the much smaller
literature on policy innovation. What, if anything, does the policy innovation
literature provide that is not already included in the generic innovation literature.
What are the predominant theories of policy innovation? What are the most
important empirical findings of the policy innovation literature? How is policy
innovation different from policy invention and policy change?
Question 2:
How would you define the field of public policy? What is the substance of the field as
an area of academic interest? What is the purpose of systemic study in this field?
How is policy as a field distinct from the study of politics or public administration, or
are there any meaningful dist
distinctions?
inctions? What do you see as some of the major
contributions that have come from the study of public policy? What is your
assessment of the field?
(Afternoon Session)
Part II: Please answer one of the following questions.
Question 1:
What is the utility of models that depict policymaking as a cycle? Alternatively, what
is the utility of models that depict policymaking as the confluence of a set of streams?
Has one of these approaches been more valuable for generating research that is
theoretically
heoretically grounded and substantively relevant than the other? If so, identify which
one and explain why. If not, explain why not?
Question 2:
In the U.S. it is currently illegal for individuals to sell one of their kidneys; they may
donate a kidney to someone they choose but cannot receive compensation. Patients
who require a kidney transplant are placed on a waitlist for a deceased donors
organ. However, there is a shortage of kidneys and many patients die while waiting for
a donor. One solution to this
is problem is to legalize the individual sale of kidneys.
803 | P a g e
1. The growth of government has led many observers to worry that government
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the
imperative for
1. Identify two basic lines of theorizing that have contributed fundamentally to the
field of public administration during the last 25 year. Assess the principal strengths,
weaknesses, and potential of each; identify some of the principal theorists associated
with each; and indicate what kinds of issues facing the field can best be addressed by
building on these types of theory.
2. It has been argued that public administration does n ot operate in a vacuum but is
deeply influenced by its social, political, and economic environment. Thus, the
practice and study of public administration evolve with the changing landscape or
ecology of government. Drawing from relevant literature, trace the theoretical
evolution of public administration and analyze
2. Wallace Sayre once wrote that public and private administrat ion are alike in all
unimportant respects. What is meant by such a statement? Is it accurate? How do
you assess the claim that administration is a generic subject that can and
should be studied and generalized about in a broad sense rather than sector by
sector? Refer to the research literature in supporting your answer.
Doctoral Examination
General Public Administration
Fall 2006
Morning Session
Part I: Please answer one of the following two questions.
1. In an article published in the Public Administration Review in 1947 Robert Dahl
assessed the state of the field of public administration, particularly in terms of the
prospect of a true science of public administration. He argued that the field then faced
"three problems" which would have to be addressed before public administration could
merit scientific status. These were: (1) clarifying the place of normative values in the
field; (2) developing a better understanding of human nature in administrative settings,
thus providing better predictability of behavior; and (3) generating a sophisticated
comparative study of public administration. On the basis of these criteria (and, if
appropriate, any others that you care to add), how far has public administration come
toward the goal of achieving truly scientific stature? Clarify and defend your
assessment with reference to your knowledge of the research literature of the field.
2. In 1990, the public management literature, as represented in the major U.S public
administration and policy journals, included but a single empirical study of
"organizational
red
tape."
This
single
empirical
paper
(Buchanan,
1975)
operationalized red tape as questionnaire respondents' views about the amount and
rigidity of organizational structures. In other words, this early study measured red tape
as a perceptual variable not much different from subjective assessments of the more
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an introductory
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1. Please identify what you consider the single most promising body of public
administration research to have emerged in the p ast 10 years. For, present
purposes, let us define promising as encompassing at least the following
criteria: (1) dealing with issues central to public administration; (2) providing
strong
evidence
and/or
compelling
theoretical
explanation
of
public
predictability
of
behavior;
and
(3)
generating
sophisticated
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Doctoral Examination
General Public Administration
Spring 2005
Morning Session
Part I: Please answer one of the following two questions.
1. Some years ago a scholar named Richard Elmore criticized the field of public
administration by referring to it as Aa collection of discrete and unrelated
subjects in search of an intellectual
2. One of the classic issues for public adm inistration and public bureaucracy has
concerned how proactive a public administrator should be in orchestrating policy
change, as opposed to waiting for guidance from elected officials. Write a
scholarly essay on this question. To what extent should public administrators be
proactive, and what does the evidence indicate about whether they actually are
proactive? Cite and review major scholars, scholarly groups, or theories,
concerning these questions (possibly including, for example, public choice,
Blacksburg Manifesto, New PA, Friedrich and Finer, New Public Management,
literature on leadership in the public sector, or many others). In your essay,
consider the issues for democratic governance that relate to this question of how
proactive a public administrator should be.
Afternoon Session
Part II: Please answer one of the following questions.
811 | P a g e
1. We read and hear that public administrators should be held accountable. What
does being held accountable mean? How is this accomplished in American
governments? How well does this process of being held accountable work? Please
cite literature as appropriate.
1. The politics/administration dichotomy, which was once dogma for the emerging
discipline of public administration, is not as simple a concept as some of the
earliest scholars in the field may have suggested. What gave rise to the dichotomy
and what brought on subsequent challenges to its validity? Is there a true
dichotomy between politics and administration? What are the most serious
implications of the intermixture of administration and politics? What can you say
about the political dynamics of public adminis tration in a democratic society?
2. Public administration has drawn on several other fields in its history and
development as an academic discipline. Select two fields that you think have
made particularly large contributions
administration. Explain or justify why you have selected those two fields. Show
how these other fields have affected public administration theory or thinking.
Please cite examples of ideas and authors from these other fields.
Doctoral Examination
General Public Administration
Spring 2006
Morning Session
Part I: Please answer one of the following two questions.
1. The field of Public Administration has been criticized for a lack of theory
building. Discuss whether this claim is valid. Assess the development of theory in
one particular area of public administration research. Identify a research design
812 | P a g e
that will provide a new test for the theory you have identified. Explain important
features of the design, such as the main concepts and variables, the method,
and how it could be carried out (for example, the nature of the sample, the data
collection method, and plans for statistical analysis). Provide justification for why
your research design is worthwhile; in other words, explain how the execution of
your research design will add to the existing knowledge.
1. Insiders often talk about the alleged chasm between Public Administration
scholarship and practice. Some contend the chasm does not exist. Others believe the
chasm exists but serves a good purpose making scholarship more free-ranging and
productive. Still others believe the chasm exists and is a serious problem they say
good scholarship should inform the world of practice. What do you think about this
alleged chasm and what is your preferred course of action? For example, depending
on your position, you might explain how to correct widespread misperceptions about
the chasm, or you might outline some ways to bridge the gap between scholarship
and practice. In formulating your answers, draw from the relevant literature.
2. The political scientist Wallace Sayre once remarked, "the public and private
sectors are fundamentally alike in all unimportant respects." What, exactly, did Sayre
and others who have quoted him mean? (For example, consider Graham T. Allison's
well-known and often reprinted paper that carries this title.) Drawing from the
literature and your personal experience, describe any public/private differences that
seem to have significant effects on the study and practice of modern-day Public
Administration. Explain these effects. Assess the evidence that these differences
actually exist and have the effects you describe.
Doctoral Examination
General Public Administration
Spring 2007
Morning Session
Part I: Please answer one of the following two questions.
2. The political scientist Wallace Sayre once remarked, the public and private
sectors are fundamentally alike in all unimportant respects. What, exactly,
did Sayre, and others who have quoted him, mean? (For example, consider
Graham T. Allisons well-known and often reprinted paper that carries this
title.) Drawing from the literature on empirical comparisons of public and
815 | P a g e
special
challenges
hallenges
in
democratic
and
non-democratic
democratic
forms
of
government? If so, what are they? Please cite appropriate literature in your
answer.
2. Identify three lines of theoretical and empirical work currently under active
and productive research in public adminis tration. What research questions do
they focus on? What do the findings suggest? What issues need to be explored
for this work to have significant impact on the field? Cite and use relevant
literature.
Doctoral Examination
General Public Administration
Spring 2008
Morning Session
Part I: Please answer one of the following two questions.
1. Wallace Sayre once wrote that public and private administration are alike
in all unimportant respects. What do you think Sayre meant by that
statement? Is the statement accurate? How do you assess the claim that
administration is a generic subject that can and should be studied and
generalized about in a broad sense rather than sector by sector? What does
the research literature say on this issue.
alternatives?
2. Much of the history of the field of public administration has centered on the
question of how to hold unelected public officials accountable for their actions
and insure democratic values. Briefly trace the history of the discipline of publi c
administration and explain how the question of accountability helped shape
that history? Given the history of the field, discuss the big questions that will
likely shape the near future of the discipline. What theories and methods will
be important to answering those questions?
Part III: Please answer one of the following questions.
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1. Over the years, various scholars have argued that public administration is -or should be -- variously, a discipline, an interdisciplinary field, a
multidisciplinary field, or a profession. From your perspective, which of these
is public administration as a research field? Which should it be? Why?
Define your terms and cite relevant research literature.
documented, for example, in the past few years during the on -going war in
Iraq where the contractors have often failed to meet their obligations. Develop
an essay in which you discuss the literature on contracting -out and
summarize the arguments for and against it.
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Appendix F
Reading List and Online
Resources
PA Required Reading
Frederickson, George.
Jossey-Bass.
(referred to
hereafter as Fred)
Peters, Guy. Future of Governing: Four Emerging Models. University Press of Kansas,
2nd edition.
Raadschelders, Jos.
Government:
Armonk.
Direction. Chatelaine.
Van Wart, Montgomery. Changing Public Sector Values. Garland.
Recommended Reading PA
The following texts will either form the basis of lectures, handouts or book reports.
Starred books will be reported in class by students.
Farmer, David John. The Language of Public Administration. University of Alabama
Press.
Frederickson, H. George and Kevin B. Smith. The Public Administration Theory Primer.
Westview.
Goodsell, Charles T. The Case for Bureaucracy: A Public Administration Polemic. 4th
edition. Washington, D. C.: Congressional Quarterly Press, 2004.*
Kuhn, Thomas. The Structure of Scientific Revolutions. Chicago: second edition or
later.
Light, Paul C.
University Press.*
820 | P a g e
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Auerbach, AJ, and WG Gale. 2000. Perspectives on the Budget Surplus. National Tax
Journal 53, no. 3 (September): 459-472.
Conway, KS. 1999. Are Workers "Ricardian"? Estimating the Labor Supply Effects of
State Fiscal Policy. PUBLIC FINANCE REVIEW 27, no. 2 (March): 160-193.
Budgets and fiscal policy
Toder, EJ. 2000. Tax Cuts or Spending - Does it Make a Difference? National Tax
Journal 53, no. 3: 361-371.
True, JL. 1995. Is The National Budget Controllable? Public Budgeting and Finance 15
(June): 18-32. doi:10.1111-1540-5850.01037.
Weidenbaum, ML. 1997. Budget "Uncontrollability" as an Obstacle to Improving the
Allocation of Government Resources. In Public Budgeting and Finance, ed. Robert T.
Golembiewski and Jack Rabin, 415-444. 4th ed. Marcel Dekker.
Savage, JD. 1994. Deficits and the Economy: The Case of the Clinton Administration
and Interest Rates. Public Budgeting and Finance 14, no. 1: 96-112.
Su, TT, MS Kamlet, and DC Mowery. 1993. Modeling United-States Budgetary and
Fiscal-Policy Outcomes - A Disaggregated, Systemwide Perspective. American Journal
of Political Science 37, no. 1 (February): 213-245.
Wildavsky, A. 1993. Norms and Rules to Facilitate Convergence on Budget Balance.
Public Administration Review 53, no. 1 (February): 28-30.
Caiden, N. 1998. The Rhetoric and Reality of Balancing Budgets. In Handbook of
Government Budgeting, 227-252. Jossey-Bass Nonprofit & Public Management Series.
Chichester, UK: John Wiley and Sons Ltd.
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Ippolito, DS 1993. The Budget Process And Budget Policy - Resolving The Mismatch.
Public Administration Review 53, no. 1 (February): 9-13.
Public debt
Kowalcky, LK and LT LeLoup. 1993. Congress and the Politics of Statutory Debt
Limitation. Public Administration Review 53, no. 1 (February): 14-27.
824 | P a g e
Goodspeed, TJ. 1998. The relationship between state income taxes and local property
taxes: Education finance in New Jersey. National Tax Journal 51, no.: 219-238.
Fischel, WA. 2001. Homevoters, municipal corporate governance, and the benefit view
of the property tax. National Tax Journal 54, no. 1: 157-173.
Debt finance and municipal bond market I
Hildreth, WB and CK Zorn. 2005. The Evolution of the State and Local Government
Municipal Debt Market Over the Past Quarter Century. Public Budgeting & Finance 25,
no. 4s (December): 127-153.
Marlin, MR. 1994. Did Tax Reform Kill Segmentation in the Municipal Bond Market?
Public Administration Review 54, no. 4 (August): 387-390.
Clingermayer, JC and BD Wood. 1995. Disentangling Patterns of State Debt
Financing. The American Political Science Review 89, no. 1 (March): 108-120.
Bahl, R and W Duncombe. 1993. State and Local Debt Burdens in the 1980s: A Study
in Contrast. Public Administration Review 53, no. 1 (February): 31-40.
Debt finance and municipal bond market II
Denison, DV. 2001. Bond Insurance Utilization and Yield Spreads in the Municipal
Bond Market. Public Finance Review 29, no. 5 (September): 394-411.
Poterba, JM. 1995. Capital Budgets, Borrowing Rules, and State Capital Spending.
Journal of Public Economics 56, no. 2 (February): 165-187.
Hsueh, LP and DS Kidwell. 1988. Bond Ratings: Are Two Better than One? Financial
Management 17, no. 1 (Spring): 46-53.
Kidwell, DS, EH Sorensen, and JM Wachowicz. 1987. Estimating the Signaling
Benefits of Debt Insurance: The Case of Municipal Bonds. The Journal of Financial and
Quantitative Analysis 22, no. 3 (September): 299-313.
Clarke, W and RL Bland. 2000. State Guarantees for School Debt and the Texas
penalty. Municipal Finance Journal Summer: 1-12.
827 | P a g e
The following books may serve as useful references for specific topics.
Joyce, P.G., Lee, R.D., Jr. and R.W. Johnson. 2007. Public Budgeting Systems.
Rubin, I.S. 2005. The Politics of Public Budgeting: Getting and Spending, Borrowing
and Balancing.
Wildavsky, A. and N. Caiden. 2003. The New Politics of the Budgetary Process (5th
ed.).
Livingston, M. 1996. Money and Capital Markets.
Lamb, R. and S.P. Rappaport. 1987. Municipal Bonds.
Mikesell, J. 2006. Fiscal Administration.
Miller, G.J. 1991. Government Financial Management Theory.
Finkler, S.A.
2004.
Organizations.
PA Authors Summary with their eras
1880's-
1920's
Woodrow
Wilson
(schools)
Ellwood
Cubberly
1900-
Goodnow
Max
1930's
Weber
(schools)
Raymond
Callahan
Scientific Management as Logic of Production
Frederick
Taylor
(schools)
Raymond
Callahan
828 | P a g e
1920-
Management as Functions
Gulick
Illumination &
1930's
Wiring Studies
Human Relations as Giving Orders
Follett
Barnard
(schools) John
Dewey
1930's
1930's
as
Massive
TVA
Herring
Project
of
"democratic"
Selznick
Involvement
Lilenthal
Gulick
Authority
Brownlow
REASSESSMENTS
1910-
Scientific
Inquiry
as
Experiential
Learning
Child
Dewey
1950's
1940's
Merton
1970's
Mosher
1980's
Thompson
1980's
Rosenbloom
Public Institutions
829 | P a g e
"applied
behavioral
science"
l950's
Herbert Simon
of
managerial
worker
and
perceptions
and
productivity"
Douglas
expectations)
McGregor
Charles
Lindblom
* back to Selznick
1960's
"open
systems
and
energy
transfer
cycle"
cycle
of
the
bureau"
Downs
marble
cake,
not
layer
cake"
Grodzins
implementation
differs
from
formation
intent"
Pressman and
Wildavsky
seredipity)
* back to Lindblom and Downs
1980's
Allison
than
the
similarities"
Lowi
Frederickson
Wildavsky
Dror
Wildavsky
831 | P a g e
1976
Meltsner
"Growth
is
common
denominator
that
links
Levine
and
choices....decline
practices
forces
the
with
public
logic
for
policy
rationally
Downs
"mature"
bureau
and
terminating
Lipsky
prediction
of
revenues
and
costs
Caiden
and
are
marginal.
uncertainties
arise
from
Yet,
novelty,
contemporary
forecasting,
the
American
crisis.
See
Meltzner
and
Wildavsky
discussions.
1987
they
cannot
define
its
limits
or
Moe
the
Wright
cooperative, concentrated, creative, competitive, calculative(7080's) and contractive(80-90's). Another way to reconsider the
meanings
of
constitutional-legal
and
resource
2
3
4
5
6
7
8
9
10
11
12
13
AUTHOR
Allison, Graham T.
Appleby, Paul
Appleby, Paul
Argyris, Chris
Barnard, Chester
Barzelay, Michael
Bennis, Warren
Buchanan, James & Gordon
Tullock
Burrell & Morgan
Caiden, Naomi
Cleveland, Frederick
Dahl, Robert
Daneke, Gregory
Denhardt, Robert
Denhardt, Robert
Denhardt, Robert
PUBLICATION
Public and Private Management: Are they
Fundamentally Alike in All Unimportant Respects?,
1980
Government is Different, 1945
The Role of the Budget Division, 1957
Interpersonal Competence and Organizational
Effectiveness, 1962
The Functions of the Executive, 1948
Breaking through Bureaucracy, 1992
Organizations of the Future, 1967
The Calculus of Consent, 1962
Sociological Paradigms and Organizational analysis,
1985, 1979
Processes, Policies and Power: Budget Reform, 1993
Evolution of the Budget Idea in the US, 1915
The Science of Public Administration, 1947
A Science of Public Administration, 1990
Theories of Public Organization, 1993
In the Shadow of Organization, 1981
Toward a Critical Theory of Public Organization, 1981
833 | P a g e
14
Downs, Anthony
Downs, Anthony
15
16
17
18
19
Dror, Yehezel
Fayol, Henri
Follett, Mary Parker
Fredrickson, H. George
Fredrickson, H. G. & Smith,
K. B.
Fredrickson, H. George
Goodnow, Frank
20
Goodsell, Charles
21
22
23
24
25
26
27
28
Gulick, Luther
Henry, Nicholas
Herring, Pendleton
Holzer, Marc
Jaffee, David
Jaques, Elliott
Katz, Daniel & Kahn, Robert
Kaufman, Herbert
29
30
31
32
33
34
35
36
37
38
39
Kettl, Donald
Key, V. O.
Kingdon, John
Kuhn, Thomas
Lasswell, Harold
Lewis, Verne B.
Light, Paul
Lindbloom, Charles
Lindbloom, Charles
Lipsky, Michael
Lowi, Theodore
March, James & Johan Olson
40
41
42
43
44
45
Mintzberg, Henry
Mintzberg, Henry
Mintzberg & Quinn
Moe, Ronald C.
46
Mosher, F. C.
47
48
Niskanen, William A.
Osborne, David & Ted
Gaebler
Ostrom, Vincent
49
50
51
52
53
Peters, B. Guy
Peters, B. Guy
Pfeffer, Jeffrey
Raadschelders
Rosenbloom, David H.
54
Rohr. John
55
57
Rubin, Irene
Rubin, Irene
Schick, Allen
Schick, Allen
Schick, Allen
Scott, W. Richard
58
59
60
61
Selznick, Phillip
Simon, Herbert
Stillman, Richard J.
Stivers, Camilla
62
Stone, Deborah
63
64
65
66
67
68
69
70
Weber, Max
White, Leonard
Wildavsky, Aaron
Wildavsky, Aaron
56
71
72
73
74
Wilson, Woodrow
Yin, Robert
835 | P a g e
Luther Gulick. (1937). Notes on the Theory of Organization. In Papers on the Science
of Administration edited by Luther Gulick and Lyndall Urwick*
Henri Fayol. (1949). General and Industrial Management
Lyndall Urwick. (1943). The Elements of Administration
Wallace Sayre. (1958). Premises of Public Administration: Past and Emerging. Public
Administration Review, 18(2): 102-5 X
John F Dalrymple. (2001). From F Winslow Taylor to W. Edwards Deming: Over a
Century
of
Progress?
(unpublished
conference
paper,
http://www.cmqr.rmit.edu.au/staff/jdalr.html)
Rebuttals to the Politics-Administration Dichotomy and the Principles
Herbert Simon. (1946). The Proverbs of Administration, Public Administration
Review, 6(Winter): 53-67.*
837 | P a g e
P.
Sherwood.
(1990).
The
Half-Centurys
Great
Books
in
Public
George
Frederickson.
(1999).
The
Repositioning
of
American
Public
James Carroll and H. George Frederickson. (2001). Dwight Waldo, 1913-2000, Public
Administration Review 61:2-8.
H. George Frederickson and Kevin Smith. (2003). The Public Administration Theory
Primer
840 | P a g e
Administration?
Paul Appleby. (1945). Big Democracy. The best known chapter of the book is
Government is Different, which is included in the Classics of Public Administration.*
841 | P a g e
Graham
T.
Allison.
(1980).
Public
and
Private
Management:
Are
They
of
Management
39(1):
Studies,
97-122.
Hood.
(1991).
Public
Management
for
All
Seasons?
Public
Administration 69:3-9.
David Osborne and Ted Gaebler. (1992). Reinventing Government: How the
Entrepreneurial Spirit is Transforming the Public Sector.
Al Gore. (1993). Creating a Government that Works Better and Costs Less: Report of
the National Performance Review.
Christopher Hood. (1994). The New Public Management in the 1980s. Accounting,
Organizations and Society 20:2/3:93-109
Patrick Dunleavy and Christopher Hood. (1994). From Old Public Administration to
New Public Management. Public Money and Management 7:9-16
Robert D. Behn. (1995). The Big Questions of Public Management. Public
Administration Review 55(4):313-324.
Laurence E. Lynn, Jr. (1998). A Critical Analysis of the New Public Management.
International Public Management Journal, 1(1): 107-123
842 | P a g e
Robert D. Behn. (1998). The New Public Management Paradigm and the Search for
Democratic Accountability. The International Public Management Journal 1(2):131164.
Linda Kaboolian. (1998). The New Public Management, Public Administration Review
58(3):189-193.
Richard Box, et al. (2001). New Public Management and Substantive Democracy.
Public
Administration
61(5):608-619.
Review
Privatization
Emanuel S. Savas, ed. (1977). Alternatives for Delivering Public Services.
Ted
Kolderie.
(1986).
The
Two
Different
Concepts
of
Privatization.
Public
843 | P a g e
George
Frederickson.
(1997).
The
Spirit
of
Public
Administration
J.
Friedrich.
(1940).
Public
Policy
and
the
Nature
of
Administrative
S.
Wright.
(1990).
Federalism,
Intergovernmental
Relations,
and
Administration
Review
50(2):168-178.*
David K. Hart. (1974). Social Equity, Justice, and the Equitable Administrator. Public
Administration Review 34:3-10.
G. W. Downs and P.D. Larkey. (1986). The Search for Government Efficiency
J. H. Knott and G. J. Miller. (1987). Reforming Bureaucracy
Gary L. Wamsley et. al. (1996, 2004). Refounding Democratic Public Administration:
Modern Paradoxes, Postmodern Challenges X
845 | P a g e
Graham Allison. (1969). Conceptual Models and the Cuban Missile Crisis. American
Political Science Review, 63: 689-718.
Graham Allison. (1971). Essence of Decision: Explaining the Cuban Missile Crisis.
Michael Cohen, James March, and Johan Olsen. (1972). A Garbage Can Model of
Organizational Choice, Administrative Science Quarterly 17:1-25.
Charles Lindbloom. (1979). Still Muddling, Not Yet Through, Public Administration
Review 39: 517-526.
846 | P a g e
Political
Science
95(1):191-198.
Review
Vincent Ostrom. (1987). The Political Theory of a Compound Republic (2nd. Edition).
William Lyons and David Lowery. (1989). Governmental Fragmentation Versus
Consolidation: Five Public Choice Myths About How to Create Informed, Involved and
Happy
Citizens,
Public
Administration
Review
(Nov.-Dec.):533-543.
Readings
and
Continuing
Controversies
James Buchanan, Charles Rowley, and Robert Tollison, eds. (1987). Deficits.
Aaron Wildavsky. (1988, 1992). The New Politics of the Budgetary Process
Irene S. Rubin (ed.). (1988). New Directions in Budget Theory
Irene S. Rubin. (1989). Aaron Wildavsky and the Demise of Incrementalism, Public
Administration Review, 49(1): 78-81.
Beryl Radin. (2000). The Government Performance and Results Act and the Tradition
of Federal Management Reform: Square Pegs in Round Holes? Journal of Public
Administration Research and Theory, 1:111-136
XI. Organization Theory
Frederick Taylor. (1911). The Principles of Scientific Management
Mary Parker Follett. (1926). The Giving of Orders, from Scientific Foundations of
Business Administration, by Henry C. Metcalf (ed.).* X
Chester Barnard. (1938). The Functions of the Executive
F. J. Roethlisberger and William J. Dickson. (1939). Management and the Worker
Robert K. Merton, et al., eds. (1952). Reader in Bureaucracy, particularly important is
Mertons classic 1940 article on Bureaucratic Structure and Personality. * X
Abraham H. Maslow. (1943). A Theory of Human Motivation. Psychological Review
50:370-396; * also Motivation and Personality (1954).
Herbert Simon. (1947). Administrative Behavior: A Study of Decision-Making
Processes in Administrative Organizations X
Douglas M. McGregor. (1960). The Human Side of Enterprise
849 | P a g e
Daniel Katz and Robert Kahn. (1966). The Social Psychology of Organizations. See
especially Organizations and the System Concept, reprinted in Classics of
Organization Theory by Jay M. Shafritz and J. Steven Ott (3rd edition).
James D. Thompson. (1967). Organizations in Action.
Henry Mintzberg. (1979). The Structure of Organizations. See especially The Five
Basic Parts of the Organization, reprinted in Classics of Organization Theory by Jay
M. Shafritz and J. Steven Ott (3rd edition).
Gareth Morgan. (1996). Images of Organization.
Robert B. Denhardt. (2000). Theories of Public Organization. X
Tor Hernes and Tore Bakken. (2003). Implications of Self-Reference: Niklas
Luhmanns Autopoiesis and Organization Theory. Organization Studies 24(9):15111535.
Organization Culture
Linda Smircich (1983). Concepts of Culture and Organizational
Analysis.
Occupational and
Leadership.
A.
Rohr.
(2004).
On
Cooper's
Big
Questions
Public
Administration
852 | P a g e
Eric Welch and Wilson Wong. (1998). Public Administration in a Global Context:
Bridging the Gaps of Theory and Practice between Western and Non-Western Nations.
Public Administration Review 58(1):40-49.
Mark R. Rutgers. (2001). Traditional Flavors? The Different Sentiments in European
and American Administrative Thought. Administration & Society 33(2):220-244.
Jamil A. Jreisat. (2002). Comparative Public Administration.
Donald E. Klingner. (2004). Globalization, Governance, and the Future of Public
Administration: Can We Make Sense Out of the Fog of Rhetoric Surrounding the
Terminology? Public Administration Review 64(6):737-743.
Mark R. Rutgers (2004). Comparative Public Administration: Navigating Scylla and
CharybdisGlobal Comparison as a Translation Problem. Administrative Theory &
Praxis 26(2):150-168.
XV. The Emerging Paradigm: From Logical Positivism to Interpretivism and
Discourse-Based Public Administration
Max Horkheimer. (1972). Traditional and Critical Theory. In Critical Theory: Selected
Essays, translated by Matthew J. OConnell et al., pp. 1188-243.
Max Horkheimer. (1974). Eclipse of Reason.
Robert B. Denhardt. (1981). Toward a Critical Theory of Public Organization. Public
Administration Review 41(6):628-635.
David J. Farmer. (1995). The Language of Public Administration: Bureaucracy,
Modernity, and Postmodernity.
Charles J. Fox and Hugh T. Miller. (1996). Postmodern Public Administration: Toward
Discourse.
Charles J. Fox. (1996). Reinventing Government as Postmodern Symbolic Politics.
Public Administration Review 56(3):256-262.
853 | P a g e
Gary L. Wamsley et. al. (1996, 2004). Refounding Democratic Public Administration:
Modern
Paradoxes,
Postmodern
Challenges
Farazmand.
(1990).
Handbook
of
Comparative
and
Development
Public
Administration.
J. Steven Ott, Albert C. Hyde, and Jay Shafritz. (1991). Public Management: The
Essential Readings.
Jay M. Shafritz and J. Steven Ott. (2001). Classics of Organization Theory.
854 | P a g e
Shafritz,
Albert
Hyde,
and
Sandra
Parkes.
(2004).
Classics
of
Public
Administration.
Key Journals (be familiar with last five years of these journals):
Journal of Policy Analysis and Management
Policy Sciences
Journal of Public Administration Research and Theory
Policy Studies Journals and Reviews
Public Administration Review
Amercian Review of Public Administration
American Political Science Review
Journal of Economic Perspectives
Journal of Public Economics
Nobel Lectures (in economics) for last ten years (published in Am Economic Review
and Journal of Public Economics alternately)
Readings are divided into the following sections:
1. Philosophy of Natural Science
2. Philosophy of Social Science
3. Public Policy Theory / Political Science
4. Decision Making Theory
5. Agenda Setting and Participation
6. Microeconomics / Public Finance
7. Public Choice
8. Organization Theory
855 | P a g e
856 | P a g e
Lerner, Daniel and Lasswell, Harold D. with the editorial collaboration of Harold H.
Fisher [and others].. The Policy Sciences. Stanford, Stanford University Press (1951)
Lindblom, Charles. Politics and Markets (1977) New York: Basic Books.
Lowi, Theodore J. (1969) The End of Liberalism: Ideology, Policy, and the Crisis of
Public Authority, New York: W.W. Norton & Company, Inc.
McCool, Daniel C. Public Policy Theories, Models, and Concepts: An Anthology.
Englewood Cliffs, NJ: Prentice-Hal, Inc, 1995.
Olsen, Mancur. The Logic of Collective Action: Public Goods and the Theory of Groups.
Cambridge, MA: Harvard University Press, 1965.
Ripley, Randall. G.A. Franklin. Congress, the Bureaucracy, and Public Policy
Homewood, IL: Dorsey Press, 1976.
Rittel, Horst W.J. and Melvin Webber, "Dilemmas in a General Theory of Planning",
Policy Sciences 4(1973), 155-169.
Sager, Tore "Planning and the Liberal Paradox: A Democratic Dilemma in Social
Choice," Journal of Planning Literature, Vol. 12, No. 1 (August 1997).
Sandler, Michael. Democracy's Discontent: America in Search of Public Philosophy
Theodoulou, Stella Z., M.A. Cahn. Public Policy: The Essential Readings Englewood
Cliffs, NJ: Prentice-Hall, Inc. 1995.
Wilson, James Q. 1989. Bureaucracy: what government agencies do and why they do
it. New York: Basic Books.
4. Decision Making Theory
Cohen, M.D., J.G. March, and J.P. Olsen "A Garbage Can Model of Organizational
Choice"
Administrative Science Quarterly, 17,1, pp. 1-25. 1972
Hastie, Reid, and Dawes, Robyn M. Rational Choice in an Uncertain World : The
Psychology of Judgement and Decision Making. Sage Publications, 2001.
Janis, Irving and Leon Mann. Decision Making : A Psychological Analysis of Conflict,
Choice and Commitment (1985) New York : Free Press
858 | P a g e
6. Microeconomics/Public Finance
Chiang, A.C. Fundamental Methods of Mathematical Economics, 3rd Edition McGraw
Hill, 1984.
Frank, R.H. Microeconomics and Behavior, 3rd Edition, McGraw-Hill, 1997.
Nelson, Richard. The Sources of Economic Growth (1996) Cambridge, Mass.: Harvard
University Press.
Nicholson, W. Microeconomic Theory: Basic Principles and Extensions, 7th Edition.
Dryden, 1998.
North, Institutions, Institutional Change and Economic Performance Cambridge, New
York: Cambridge University Press, 1990.
Rosen, Harvey. Public Finance. Irwin/McGraw-Hill. 1998.
Varian, Hal R. Microeconomic Analysis. 3d ed. New York: Norton & Co. 1992
Varian, Hal R. Intermediate Microeconomic Analysis: A Modern Approach, New York:
W.W. Norton, 1999.
7. Public Choice
Buchanan, James M. Tullock, G. The Calculus of Consent: Logical Foundations of
Constitutional Democracy The University of Michigan Press, Ann Arbor, MI. 1965.
D. Kahneman and A. Tversky (Eds.) Choices, Values and Frames. New York:
Cambridge University Press and the Russell Sage Foundation, 2000
McNutt, P.A. The Economics of Public Choice, Edward Elgar Publishing, 1996
Mueller, D.C. Public Choice II, Revised Edition. Cambridge Univ. Press, 1989
Niskanen, William A., Jr. Bureacracy and Representative Government Chicago: Aldine
Publishing Company. 1971.
8. Organization Theory
Bozeman,
Barry.
All
Organizations
are
Public:
Bridging
Public
and
Private
Daft, RL 1995. Organization Theory and Design. St. Paul, Minn.: West.
Downs, A. 1967 Inside Bureaucracy. New York: Little, Brown.
Goodsell, CT 1994. The Case for Bureaucracy. NJ: Chatham House.
Hall, RH 1996. Organizations: Structure and Process. (6th ed.) Upper Saddle River,
NJ: Prentice Hall.
Katz, D. and Kahn, R.L. The Social Psychology of Organizations. New York: John
Wiley, 1966.
March, J. and Simon, H. (1958) Organizations. New York: Wiley.
Morgan, Gareth Images of Organizations, 2nd Edition. Sage. 1996
Perry, JL and HG Rainey. "The Public Private Distinction in Organization Theory: A
Critique and Research (date?)
Strategy." Academy of Management Review 13: (2) 182-201 APR 1988
Rainey, HG. 1997. Understanding and Managing Public Organizations. (2nd ed.) San
Francisco: Jossey-Bass.
Scott, W.R. (1998) Organizations: Rational, natural, and open Systems. 4th ed. (NJ:
Prentice Hall).
Thompson, J.D. Organizations in Action. McGraw-Hill, 1967.
Thompson, V.. Modern Organization. New York: Knopf, 1961.
Williamson, Oliver E. 1981. "The Economics of Organizations: A Transaction Cost
Approach."
American Journal of Sociology, 87:548-577.
9. Public Management/Administration
Bozeman, Barry (1993) "A Theory of Red Tape" Journal of Public Administration
Research and Theory, 3(3): 273-303.
Bozeman, Barry. (Ed.) 1993. Public Management: State of the Art. San Francisco:
Jossey-Bass.
861 | P a g e
Bozeman, Barry 1993. "Theory, Wisdom, and the Character of Knowledge in Public
Management: A Critical View of the Theory-Practice Linkage" In Public Management:
State of the Art. San Francisco: Jossey-Bass, Barry Bozeman/Landsbergen "Truth and
Credibility in Sincere Policy Analysis", Evaluation Review, 1989
Bozeman, Barry. Public Management and Policy Analysis New York: St. Martin's Press,
1979
Gulick, L. "Notes on the Theory of Organization. In L. Gulick and L. Urwick (eds.),
Papers on the
Science of Administration. New York: Institute of Public Administration. 1937.
Heclo, H. A Government of Strangers. Washington, DC: Brookings, 1977.
Lin, N. and Wildavsky, A. Public Administration: The State of the Discipline (1990)
Lynn, LE Public Management as Art, Science and Profession. Chatham NJ: Chatham
House. 1996
Moore, Mark. Creating Public Value : Strategic Management in Government (1997)
Rohr, J.A. To Run a Constitution : The Legitimacy of the Administrative State. Univ. of
Kansas Press, 1986.
Savas, Emanuel. Privatization and Public-Private Partnerships Chatham House (1999)
Simon, H.A., Thompson, V. and Smithburg, D.W. Public Administration, Revised. New
Brunswick, NJ: Transactions, 1991.
Waldo, D. The Administrative State, 2nd Edition. New York: Holmes & Meier, 1984.
Weber, Max. 1970 [1920] "Bureaucracy." In Oscar Grusky and George A. Miller (eds.).
The Sociology of Organizations: Basic Studies. New York: Free Press.
10. Policy Implementation
Bardach, Eugene. The Implementation Game: What Happens after a Bill Becomes a
Law Cambridge, MA: MIT Press. 1977
Lipsky, Michael. Street-Level Bureaucracy: Dilemmas of the Individual in Public
Services, New York: Russell Sage Foundation, 1980.
862 | P a g e
Mazmanian and Sabatier. Implementation and Public Policy. Glenview, IL: Scott,
Foresman, 1983.
Pressman, Jeffery L. and A. Wildavsky. "Implementation: How Great Expectations in
Washington are Dashed in Oakland" in Implementation, Pressman and Wildavksy,
eds. Berkley: University of California Press. 1984.
Sabatier, Paul and Hank Jenkins-Smith, Policy Change and Learning: An Advocacy
Coalition Approach. Boulder, Colo.: Westview Press, 1993.
Paul Sabatier, ed. (1999). Theories of the Policy Process. Boulder, CO: Westview Press.
11. Policy Evaluation
Dryzek, John and Davis Bobrow, Policy Analysis by Design. Pittsburgh, Pa: University
of Pittsburgh Press, 1987.
Dunn, William. Policy Analysis. Prentice Hall: 1993.
Lindblom, Charles E. and David K. Cohen. Usable Knowledge: Social Science and
Social Problem Solving. New Haven: Yale. 1979.
Lindblom, Charles. Strategy of Design: Policy Evaluation as a Social Process Free
Press (1970) Majone, Giandomenico. Evidence, Argument and Persuasion in the Policy
Process New Haven, CT: Yale University Press. 1989
Munger, Michael, Analyzing Policy: Choices, Conflicts, and Practices. WW Norton
Press, (2000)
Patton, Carl and Sawicki, David. 1993. Basic Methods of Policy Analysis and Planning.
2nd edition. Englewood Cliffs, NJ: Prentice Hall.
Randall Ripley, Policy Analysis in Political Science. New York: Nelson-Hall, 1985
Shaddish, W.R., Cook, T.D. and Leviton, L.C. Foundations of Program Evaluation:
Theories of Practices, Sage, 1993.
Weimer, David L. and Vining, Aiden R. 1992. Policy Analysis: concepts and practice.
2nd edition.
Englewood Cliffs, NJ: Prentice Hall.
863 | P a g e
Singleton, Jr., R. A. and B.C. Straits. Approaches to Social Research. Third Edition.
New York and Oxford: Oxford University Press, 1999. ISBN 0-19-510525-7.
Sudman, Seymour, N.M. Bradburn. Asking Questions: A Practical Guide to
Questionnaire Designs. San Francisco, CA: Jossey-Bass Inc. Publishers. 1982
Weiss, R.S. 1994. Learning from Strangers: the art and method of qualitative interview
studies. Free Press.
Woolridge, J.M. Introductory Econometrics, South-Western, 1999.
Yin, Robert. Case Study Research, Design and Methods. Third Edition. Newbury Park,
Sage Publications, 2002.
865 | P a g e