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PUBLICMANAGEMENT

Contents

. Introduction
I. Definitions(p.2)
II. ConsequencesofaDeficitModelforPublicManagement(p.13)
III. AnAssetOrientationtoPublicManagement(p.13)
IV. OrganizationalStructures(p.20)
V. Planning(p.17)
VI. PersonnelManagementandMotivation(p.20)
VII. TreatmentofCitizens/Clients(p.43)
VIII. InteragencyandIntergovernmentalOrganizationalRelations(p.45)
IX. ResourceGenerationandAllocation(p.48)
X. InformationPublicCommunicationandProgramEvaluation(p.50)
XI. TheNewPublicManagement:ReinventingGovernment/PublicValue(p.53)
XII. PublicChoice(p.54)
XIII. Public/PrivatePartnerships(p.54)
XIV. EconomicDevelopment(p.55)
XV. SummaryofCrossCuttingIssues(p.55)
References(p.57)
Glossary(p.57)

. INTRODUCTION
Contents

. WindsofChange
A. Purpose
B. Audience
C. Structure
D. Examples
E. CaseStudies
F. CrosscuttingIssues
G. Examples

. INTRO: WINDS OF CHANGE


Theworldischangingrapidlyinthewaygoodsandservicesareprovidedtopeopleand
inthemixofgoodsandservicespeoplewantandneed.Technologydrivesthischange,butits
complex,worldwidemanifestationcannotbedescribedinaword.Thecurrenttrendleans
towardsanindividualistapproachtoconsumption,emphasizingpersonalchoice.Thatconclusion
suggestsanevergreaterimportanceoftheprivatesector,asisvisibleinmanysocieties.

Yet,technologyalsomakespeoplemoreinterdependent,magnifyingthepowerofany
oneindividualoverthelivesofothers.Proliferatingexternalities
,inturn,intensifyboththeneed
forandthetensionbetweencommunitycooperationandthecontroloftheindividual.Bothare
therealmofthepublicsector.Therefore,inspiteofcurrentconsumptiontrends,andperhaps
becauseofthem,thepublicsectorhasalsobecomemoreimportant.Theabilityofpopulationsto

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developasenseofcommunity,todefineapublicinterest,andtoprovideforthatpublicinterestis
morecriticalthaneverbefore.

Thesetensionsandopportunitiesdemandasetoforganizationalstructuresthatcan
effectivelycommunicatewiththecommunityandutilizeresourcestodeliverthebasicsof
communitylife.Understandinghowtodothesetasksevermoreeffectivelyinthefaceof
changingtechnologiesandsocietalconcernsisthecoreofthestudyofpublicmanagement.These
arethesubjectsofthiscourse.

Thiscourseisdesignedtointroducestudentstowhatpublicmanagersdoandtohelp
providestudentswithperspectivesandopportunitiesforpracticethatwillhelpthembecome
effectivepublicmanagers.Thecoursewillincludetopicssuchas:

1)themotivationofemployees,

2)thedistributionoftasksandauthority,

3)negotiationforsupport,and

4)therepresentationofapublicorganizationorpublicpolicytoavarietyof
audiences.

I. WHAT IS PUBLIC MANAGEMENT?


Contents

A. Introduction:BasicDefinition
B. WhatisPublic?WhatisPrivate?
C. WhatisManagement?
D. PublicManagementv.PrivateManagement
E. PublicManagementv.PublicAdministration

I-A. INTRODUCTION: BASIC DEFINITION


Publicmanagementisutilizingresourcesandorganizationssoastoeffectivelymoveacommunity
towardtheattainmentofitsobjectives.

Thissimplesentenceservesasadefinition,butforabetterunderstandingoftheconcept,itis
importanttodefinetermsmorepreciselyincluding:whatdowemeanbypublic?Whatisthepublic
sector?Howdoespublicdifferfromprivate,privatesector?Whatismanagement?Howismanagement
distinctfromadministration,policyformation,orchaos?

I-B. WHAT IS PUBLIC? WHAT IS PRIVATE?

Contents:WhatisPublic?WhatisPrivate?

. Introduction:

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1. Facilitatorandmaximizorofprivateinterests
2. Basicprotectorofrightsandliberties
3. Marketfacilitator
4. Adjudicatorofdisputes
5. EstablishaCodeofConduct
6. ProviderofPublicGoods
7. AreNGOsPublic?
8. ArePublicCorporationsPublic?
9. AreForProfitCorporationswithaPublicPurposePublic
10. Goals,NotLegalStructuresDistinguishPublicfromPrivate
11. IstheDistinctionBetweenPublicandPrivateDecreasing

Whatispublic?Howdoespublicdifferfromprivate?Howisthepubicsectordistinct
fromtheprivatesector?Thesequestionsaremorecomplicatedthantheyappearonthesurface,andworld
trendsmakethemmoreinterestingeveryday.Oftenwhenconfrontedwiththesequestionspeoplerespond
thatthepublicsectorandtheprivatesectoraredifferentorganizations.Thepublicsectorisgovernment,
andcorporationsandfamiliesaretheprivatesector.Historically,thesesimpledistinctionsmadesense,but
thelinesbetweenpubicandprivateorganizationsareblurring.Wenowhavegovernmententerprises,
publicauthorities,nonprofitcorporations,privatecorporationswithapublicpurposeandgovernment
regulatedprivatemonopolies,tonameafewdifficulttoclassifyorganizations.Onemusthaveanopen
mindabouttheboundarybetweenpublicandprivate.Trulyunderstandingtheshiftingboundariesbetween
whatispublicandwhatisprivatetakesonealongdistancedownthebumpyroadtowardcomprehensionof
theworld'schangingsocialandeconomicstructure.

Tohaveabetterunderstandingofthephrasespublicsectorandprivatesector,itisbettertostart
withthetwosector'sdifferinggoals.Forgetforamomenttraditionalorganizationalstructuredistinctions.

Theadjective,"private"meansallthatbelongstoindividuals:whattheyown,do,thinkand
believe."Private,"alsomeanstobehiddenfromorrestrictedtoothersindividuals,suchasinprivate
propertyorprivacy.Privategoalsarethosepursuedbyindividuals.Eachpersonhasadifferentsetof
desires.Eventhoughhumanmotives,desiresandgoalsarenotalwayseasytounderstand,definingthe
domainoftheprivatesectorislessdifficultthanforthatofthepublic.

Oftenindividualsvoluntarilybantogetherintoorganizationssuchasfamilies,clubs,neighborhood
groups,corporationsorcommunities.Ifthewholeisgreaterthanthesumoftheparts,peoplecanincrease
theirpowertoachievetheirpersonalgoalsbyworkingcooperativelywithothers.Yet,whentheyjoinan
organization,thosepersonsgiveupsomeoftheirownsovereigntytothelargergrouporcommunity.
Often,theyhavetocompromisesomeoftheirgoalsforthegoalsofthecommunity.Themomentthat
purelyprivatedesiresbegintomixwithgroupobjectives,weenterthefuzzyboundarybetweenpublicand
private.

"Public,"meansalltheconcernsofthepeopleasagroup.Foranydefinedpopulation,"public"
meansallthatisheldincommon,includingnotjustbuildingsandbankaccounts,butallthatiscommonly
feared,hopedforandactedonbythatcommunityatlarge.Theword"public,"as"inpublicview,"also
impliesanopennessandtransparencyofactivitiesinthepublicrealm,andevenhandednessindealingwith
allmembersofthedefinedcommunity.

Thepublicsectorbecomesanyorganizedefforttoenhance,ormaximizepublicgoals.Whenthe
definedcommunityconsistsofeveryonelivingwithinageographicarea,suchasacityoranation,we
oftensaythatthegoalofthepublicsectoristopursuethepublicinterest.Thisisprobablythebestwayto

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definethepublicsectoreventhoughthisdefinitioncanbefrustrating.Onecanneverreallyachieveor
attainthepublicinterest.Itisdifficulttodefineandisprobablyconstantlychanging.

I-B-1. FACILITATOR AND MAXIMIZOR OF PRIVATE INTERESTS

Onesimplistic,individualisticapproachistodefinethepublicinterestasthecomposite
summationofallprivatedesires.Thisconceptionstartswiththedemocraticassumptionthatindividuals
knowwhatisbestforthem.Itimpliesthatpeopleshouldbeleftalone,totheextentpossible,topursue
theirowndevices.However,havinggoalsandachievingthemaretwodifferentthings.

Thebenefitsofthisindividualisticapproachtothedefinitionofthepublicinterestcanbetakena
stepfurther.People'spursuitofprivate,selfish,individualdesiresmayevenbenefittheirneighbor.Positive
externalitiesmightresult.Apositivesynergymightemergefromthepursuitofprivategoals.Theenergy,
excitementandenthusiasmwithwhichpeoplepursuecompatibleselfishinterestsmightactuallyproduce
benefitfornearlyeveryonenotjustforthemselves.Greedisgood?Thewholemightbegreaterthanthe
sumoftheparts.Thepublicsector'sroleunderthisconceptionwouldbetofacilitatepeoplesambitions
andmaximizesynergies.

Yet,ifeveryoneweretovigorouslypursuetheirpersonaldesireswithoutrestriction,not
everyone'sgoalscouldbeachieved.Privategoalssometimesconflictwithoneanother.Negative
externalitiesalsoexist.Theprivategoalsmostachievedmightbethoseofthestrongestormostaggressive
ormostcunningpersons.Insomecasesdishonestymightberewarded.

I-B-2 BASIC PROTECTOR OF RIGHTS AND LIBERTIES

Inasomewhatmorecivilizedworld,givingallofthespoilstothemostaggressive,isnot
acceptable.Everyone,itisfelt,shouldbeabletoachievetheirmostfundamentalobjectivesasan
individual,suchas"life,libertyandpursuitofhappiness,"withoutinfringementbyothers.Thefirst,most
basicroleofcollectivecommunitydecisionmaking(thepublicsector)istoestablishaminimallevel
ofhumanrightsforeveryone.Rightsincludeintangiblessuchashumandignityandfreedomofopinion
andexpression.Othersmayalsofocusonamorematerialisticsafetynetsuchasdecenthousing,health
careandeducationforeveryone.

Evenifthepublicsectorisdefinedinthisminimalway,thepublic'sjobisnotsoeasy.After
determiningthelevelofindividualentitlement,thecollectivemustthendecidehowtoprotectthosebasic
rights.Onceestablishingaplanforfundamentalrightsprotection,anorganizationalstructure,ateamof
individuals,resourcesforthegroupandleadershipoftheorganizationmustbeinplacetoputtheplaninto
practicaleffect.Implementationmightinvolveexercisingpowerstorestrictthepersonalbehaviorofsome
persons,andtheuseofauthoritytosanctionandpunishthosewhoviolateother'srights.

Butherethestorybecomesmoreintertwined.Oncepublicorganizationsaregivensuchominous
powers,someonemustthenprotectindividualsfromempoweredpublicorganizations.Someone,
presumablyapublicorganizationindependentoftheothers,muchguaranteecivilliberties.

I-B-3 MARKETPLACE FACILITATOR


Contents

i. basicmarketprinciples
ii. maintainingvariety
iii. maintainmarketaccessandparticipationforall

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Basicmarketprinciples

But,theconcernisnotjusttokeepmeanpeopleundercontrol.Evenifeveryoneweretobepolite
andconsiderate,andallprivateinterestsseemedonthesurfacetobecompatiblewithoneanother,
resourcesarescarce.(Thisis,ofcourse,thestartingpointforthestudyofeconomics.)Everyonemight
wanttodrivetheirbigfancySUVanywheretheywantathighspeed,butultimatelythisapproachwould
createtragicaccidents,trafficjams,energyshortages,climatechangeandfewplacesthatwereenjoyablein
whichtodrive,liveorbe.

Asanotherexample,alargenumberofpeoplemight,haveadesiretoownacabinorchaletinthe
mountains.Theywanttogetoutofthecityonweekends,enjoythescenery,andtakepleasureintheclean
naturalenvironment.Noneofthesehypotheticalindividualsseethemselvesinconflictwithanyoneelse,
andallarebynaturepoliteandconsiderateindividuals.Yet,atsomepointeachadditionalmountaincabin
builtinanareameanslessquite,lessbeautifulsceneryandmorepollution,suchthateveryone'spleasureis
reduced.Limitedamountsofquiet,cleanair,naturalviews,cleangroundwater,androadswithouttraffic,
willbeusedupbytheincreaseddemand.

Somewouldarguethatthiskindofbenignconflictisresolvablenaturallythroughthemarket
place.Asresourcesbecomescarceanddemandincreases,pricesgoup,rationingthoseresources.Since
thecompetitivefreemarketallocatesgoods,servicesandresourcestothosewhovaluethemmost,
individualpleasurewouldbemaximized,itistheorized.

But,themarkettheorythatleadstothisconclusionisprettydemanding.Firstofall,thismeans
thatsomepeoplewillbepricedoutofachievingtheirprivategoals,nomatterhowbadlytheywantthem.
Microeconomistsindicatethatmarketsworkbetterorworsedependingonconditions.Ifthesituationis
notright,marketmechanismsdonotwork.Theyexperiencemarketfailure.Microeconomistssaythe
marketworksiftheyhavethecharacteristicsoftheperfectcompetitionmodel.Thatis,if:

a large number of buyers and sellers participate in the marketplace


such that no one has a significant impact on the market;

the product sold in the market is highly divisible; in other words, it


can be purchased in small individual units;

each unit of product is indistinguishable in quantity and quality;

an auction market procedure establishes the price of each unit


based on supply and demand;

all buyers and sellers possess perfect knowledge about functioning


of the market, including price and quality;

no externalized costs or benefits result from behavior of the market


participants. (Mahanty,1980)

Evenifoneweretodefinethepublicinterestasthecollectivesummationofprivateinterestsand
assumethatprivateinterestsresultfrommarketparticipation,asecondroleofgovernmentistoestablish

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conditionsforgoodmarkets.Thisseldomhappensnaturally.Eveninthemostancientcommunities
publicsquaresorpublicmarketplaceswereprovidedtofacilitatetheexchangeofideas,information,good,
services,andsocialrelations.Modernmarket"places,"includingvirtualmarkets,oftenlookdifferentfrom
theirancientcounterparts.Yet,oneofgovernment'sjobscontinuestobetoperfectmarketssoastoallow
individualstomaximizetheirprivateinterests.Inthemountaincabinexample,thismightmean
establishingclearunitsofrealestateownershipthroughapubliclandsurveyandcadastre,increasing
informationflowandtransparencyinthemarketplace,ormitigatingminorexternalities.Maybethepublic
wouldrationscareresourcesbyestablishingmarkets.Thepublicmight,forexample,issuealimited
numberofwaterwelldrillingpermitsandsetupanongoingauctionmarketplaceforthebuyingandselling
ofscarewelldrillingpermits.

Thepublic'sroleinestablishingandmaintainingmarketplacesisnomeanfeat.Evenwhere
marketscomeclosetotheperfectcompetitionmodeldescribeabove,themarketmaintenancerolecanbe
difficultandcritical.Modernmarkets,suchasmoneymarketsarehighlytechnologicalandfastmoving,
andanyinstabilityinthemmightspilloverintootherareasofeconomiclife.AtremoronWallStreetcan
causeanearthquakeonMainStreet.Thefunctionariesofgovernmentmustbecomeexpertsinoverseeing
sophisticatedmarketsthatdemandahighlyleveloftrustandconfidence.Theymustalsobecomeexperts
inthe"commodities"tradesinthosemarkets.OnOctober18,1987,U.S.SecretaryoftheTreasuryJames
Bakerexpressedconcernaboutweaknessinthestockmarket.Thispoorlyformulatedstatement
underminedtheshakyconfidenceinworldequitymarkets,causingthemarketvalueofcorporatecapital
worldwidetodropbymorethan25%inoneweek.AlandvaluecrashinJapanensuedoverthenext12
months.Thisledtoabankingcrisisthere,whichinducedamorethan20yearslowdownintheJapanese
economy.

Again,thecollectivemusthavegooddecisionsystems,organizationalstructures,trained
personnel,resourcesandleadershipinordertopursuethisdifficultroleofthepublic,theroleofproviding
asuitableplayingfieldfortheinterplayofprivatemarketforces.Theymayalsoneedpolicepowersand
accompanyingsanctionpowerstoeffectivelyoverseemarkets.

Maintainvariety

Yet,marketsareneverperfect.Evenwhenmarketsareveryclosetotheperfectcompetitionfree
marketmodel,somekindsofmarketfailurecannaturallyoccur.Sometimesnaturalforcesdriveawedge
intosmallimperfections.Onekindofmarketfailureiscalledpecuniary.Intheory,inaperfectmarket,the
systemwillworktomaximizedvarietyinthegoodsandservicesprovided.Butinsomesituations,the
oppositecannaturallyoccur.

Iftheproductionofoneclassofgoodsandservicesexperiencesomeeconomiesofscale(thecost
ofproductionperunitofoutputbecomeslessandlessexpensiveasthenumberofunitsincreases)most
producersinthatindustrywillseektoproduceproductsandservicesdemandedbyaverylargenumberof
people,soastotakeadvantageofeconomiesofscale.Productsandservicesinthatclassthataredemanded
byasmallerminoritywillexperiencelessscaleadvantageandwillthereforebemorecostlytoproduceand
sell.Theresultinghigherpricemightcauseconsumptionofthatvarietytobeevenlessdemanded.For
somesuchgoodsandservicesatippingpointwillbereachedinwhichaviciouscircleofdeclining
consumptionandhigherpricesdrivesthelessdemandedproductoutofexistence.Thiscouldhappeneven
thoughperhaps30%ofthepopulationprefersthatparticularversionofthegoodorservice.Inthiscase,
evensmalleconomiesofscalecancausethefreemarkettoreducevarietyratherthanincreaseit.The
greateraretheeconomiesofscale,thestrongeristheviscouscircle.

Thisprocessissometimesacceleratedbymassadvertising.Becauseadvertisinghastheabilityto
generatedemandwhereitotherwisewouldnothaveexisted,andbecauseadvertisingcancreatebrand
loyalty,massadvertisingisoftenconsideredanecessarypartofthemarketinganddistributionofaproduct

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orservice.Ifso,massadvertisingbecomesanecessarycostofproduction.Advertisingcoststhenaddto
thefixedorsemivariablecostsandbecomeabarriertoentryintoanindustry.Someminimalamountof
massadvertisingwouldbenecessaryinthiscaseforsuccessfulprovisionofaproduceorservice.Inthat
range,massadvertisingcostsproduceeconomiesofscaleonboththesupply.Inotherwords,sincewe
havetodoitanyway,themoreweproduceandsell,thesmallertheadvertisingcostperunitsold.

Furthermore,thoseproducerswithmoreresourcesforadvertisingwillreapmoreofthebenefit.
Effectivemassadvertisingcancauseagoodorservicetobedemandedbymassculture,thusreducingthe
emotionalappealofalternativeversions.Theprocesscanexacerbatethetippingpointandviciouscircle
effectdescribedpreviously.Oncethenumberofproducersbecomestoosmall,marketmechanismsno
longerworkatall.Abasiccriterionofatheperfectcompetitionmodelisthattherebe"averylarge
numberofbuyersandsellers."

Therefore,ifitisinthepublicinteresttohaveavarietyofproductstochoosefrom,andavariety
ofproducersofeachproduct,thepublicsectormustacttomaintainproductvariety.Ifitisinthepublic
interesttohavefreemarketsinsomeareas,thepublicsectormustacttothwartthiskindofmarketfailure.

Maintainmarketaccessandparticipationforall

One kind of market failure gets back to the issue of a basic safety net of materialist well
being for all human beings (mentioned in the section on basic rights and liberties). What if the
marketplace functions reasonably well, auctioning and rationing goods, services and resources
according to market principles, but, as a result, some people do not have enough money for some
of the basics of life. Let us assume, for example, that some people do not have enough income,
after purchasing food, to pay rent for the lowest priced 'decent' housing available. This is clearly a
realistic assumption for many individuals. This may happen in a good market if 1) the cost of
production of the lowest cost, adequate housing is too much to rent the unit at an affordable price,
or 2) private developers of housing do not see low-income housing as profitable enough to want
to take the risks associated with producing and renting housing. Actually 1) and 2) are related
since a reasonable profit, meaning enough to compensate for the risk involved, is one component
of the cost of production.

In this case, if affordable housing is to exist, and if society defines adequate or decent
housing as one of the basic human rights embedded in the public interest, then housing for some
low-income people must be provided in another way. We cannot rely on even good, free markets.
That other way will involve the public sector (the nature of this involvement will be discussed
later.)

HealthandEconomicDevelopmentExample:

CombiningtheissuediscussedunderMaintainingVarietywiththeissueaboveundermarket
participationforall,istheissueoffooddeserts.Inhighlydevelopedeconomies,wherethevastmajority
ofthepopulationhasaccesstoprivateautomobiletransportation,retailstorescanattractcustomersfrom
longdistance.Furthermoreretailestablishmentsfindthattheycanmakelargerprofitsfromlargerstores.
Theyneedfeweremployeespercustomerandcancommandabetterwhosalepricebybuyinginlarger
quantities.Alsotofindparcelsoflandlargeenoughtobuildlargestoreswithlargeenoughparkinglots,(a
formoflandmarketfailure)theyneedtolocatefartherfromthecenterofthecity.Becausetheycan
provideproductsatlowerretailprices(sometimesmuchlower)thanverysmallstore,oftenlocatedinthe
innercity,thesmallerstorestendtofailanddie.Theresultissometimesthatthoseinnercityfamilieswho
donotownacarhaveverylimitedhighpricedchoicesforsuchbasicsasfreshfood.Theyliveinfood
deserts.

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I-B-4. ADJUDICATOR OF DISPUTES

Moreover,fewsituationscomeclosetofittingtheidealizedmodelformulatedbymicro
economistsanddescribedabove.Wheneverrealitydeviatessubstantiallyfromthemodel,microeconomists
saywemightexperiencesomeformofmarketfailure.Themountaincabinisaperfectexample.Even
thoughtheindividualsinvolvedmightbedevotedtoprotectingoneanother'sbasicrights,andeventhough
amarketplaceformountainland,laborandmaterialsexists,severalaspectsofthesituationviolatemarket
principles.First,theunitsoflandarenothighlydivisible,andarenotindistinguishableinquantityand
quality.Inprivaterealestate,eachparcelisunique.Ithasauniquelocation,view,slope,vegetation,and
infrastructure.Typically,thereisonlyonesellerforthatuniqueparcel.Informationaboutwhatparcelis
availableandatwhatpriceislessthanperfect.Moreimportantly,externalitiesabound.Everyactionofone
cabinownerchangestheenvironmentforeveryoneelseinthevicinity,includingtrafficpatterns,views,
noise,andpossiblygroundandwaterpollutionofthedelicatemountainenvironment.EvenHerculean
governmentaleffortstofacilitatemarketenvironmentswillnoteliminatedisputes.

Therefore,inthemountaincabinexample,pursuitofthepublicinterestmightincluderesolving
disputesandadjudicatingclaimsbetweencabinownersconcerningnuisances(i.e.wheresomeclaimthat
other'sactionsreducetheirenjoymentoftheenvironment).Governmentmustestablishasystemwhereby
impartialjudgeslistencarefullytoallperspectivesandestablishfairandbalancedsolutions.Adjudication
ofdisputesisoneofthepublicsector'soldestandmosthonoredroles,existinginprimitivetribesand
ancientempires.Apatternofdecisionsactsasaformalorinformalprecedentguidingthebehaviorof
thoseindividualnotinvolvedintheoriginaldisputebutencounteringsimilarsituations.

Again,thepublicmusthaveinplacedecisionsystems,organizationalstructures,trained
personnel,resourcesandleadershipinordertoactoutthispublicroleofadjudicatingdisputesbetween
individuals.

I-B-5. ESTABLISH A CODE OF CONDUCT

Onestepbeyondnuisanceadjudication(commonlaw)istopasslawsandregulations(statutory
andadministrativelaw)modifyingpeople'sbehaviorinordertomaximizeeachindividual'sabilityto
pursuetheirprivatedesires.Ifcertaindisputesareverycommon,alawgoverningeveryone'sbehaviorin
certainsituationismoreefficientthanconstantadjudication.Maybealawwouldlimitthedensityof
mountaincabins,limittheclearingoftrees,andoutlawexternalfires.

Passingastatuteimpliesthatanyonebreakingthatlawisharmingthecommongood,andis
thereforeharmingeachindividualofthecommunity.Howheavyhandedthoselawsandregulationsshould
beisanotherdebateconcerningthepublicinterest.Again,citizensmusthavedecisionsystems,
organizationalstructures,trainedpersonnel,resourcesandleadershipinordertopursuethisroleofthe
public,theroleofprovidingalegalcodeofconductoutlawingindividualbehaviorthatviolatestherights
ofothers.

I-B-6. PROVIDER OF PUBLIC GOODS

Someoftheneedsofsocietytranslateintogoodsandservicesthatdonotfitthemarketmodelat
all.Insomecases,bothpositiveandnegativeexternalitiesarenearlyinfinite,thegoodorserviceisnearly
indivisibleandeconomiesofscaleandcontiguitysogreatthatonlyoneprovideroftheserviceispossible.
Sometheoristscallthesepurepublicgoods.Inthiscase,bothpositiveandnegativeexternalitiesareso
greatthatiftheserviceisprovided,everyonemustparticipateandshareinthecost.Ifwegivepeoplea

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choice,somewilldecidenottopay,becausetheyknowthattheywillreceivethebenefitanyway.
Theoristscallthemfreeriders,andasignificantissueinprovidedsocietywiththisneedisthefreerider
problem.

Theclassicexampleofthepublicgoodisnationaldefense.Itisdifficulttohavecompetitive
nationaldefensesystemsinthesamecountry,andifonenationaldefensesystemistoexist,everyonein
thatcountrywillreceivethebenefitwhetherthewantitornotandwhethertheyarewillingtopayforitor
not.Undertheseconditions,thepublicsectordecideswhetheritisinthepublicinterestandmustthenforce
everyonetopayforit,usuallythroughgeneraltaxation.Otherkindsofsecurityservicessuchaslocal
policeprotectionaresimilar.Athirdroleofgovernment,therefore,istoprovidethoseservicesthat
areclearlypublicgoods,forwhichmarketmechanismsmakenosense.

Buthowmuchquantityandqualityofeachofthesepublicgoodsandservicesshouldthepublic
provide,howshouldtheybeprovided,andatwhatcost?Whoshouldpayfortheservicesandhowmuch?
Howmuchshouldgovernmentuseitspolicepowerstocontrolbehaviorinordertoimplementthesepublic
endeavors?Howdoesthepopulationcollectivelymakethesedecisions,andhowdoesitevaluatetoknow
towhatextentitsdecisionsarebeingcarriedout?Weseethatevenifwetrytominimizethepublicrole
andmaximizetheachievementofprivategoals,thepublicsector'sjobgrowsinimportanceand
complexity.

Inmostcasesthegoods&servicesneeded&desiredbyindividualsfallintoamiddleground.
Theydonotcomeclosetothecharacteristicsofaprivategoodinaperfectlycompetitivefreemarket.Nor
dotheyfunctionaspublicgoodsrequiringonlygovernmentalprovision.Theyaresomewhereinavast
intermediatezone,onthespectrumorcontinuumfromprivatetopublic.Ontheprivateendofthe
spectrum,governmentmightonlyseekminorinvolvementinprivateactivitiestoperfectmarketsthrough
regulation.Governmentmightwanttomakesurethataverylargenumberofbuyersandsellersis
maintainedthroughantitrustlegislation,orprovideminimalqualitystandardizationtoprotectcitizen
safetysuchasregulationofthefoodorairlineindustries;orensureopennessofinformation,suchasinthe
housingmarket,toavoidhousingdiscriminationandsegregationofethnicgroups.

Onthepublicendofthespectrum,economiesofscale,economiesofcontiguityandother
externalitiesmightcauseacriticalservicetobeofferedbygovernment,butinanenterprisefund,where
revenuesmustcoverexpendituresandconsumersarechargebylevelofuseorparticipation,suchasa
watersystem.Insomecases,provisionoftheservicemightbedeemedforthebenefitofthegeneral
communityaswellasthosewhoutilizeitdirectly,suchastheuseoftaxationorgeneralfundmoneytopay
partofthecostofpublictransportation.

Moreinthecenterofthecontinuumwehavegovernmentscontractingoutsomeoftheservices
thatwerehistoricallyprovidedbythepublicsectorsuchasgarbagecollection,streetcleaningandsnow
removal.Inthisrealworldawidevarietyoflegal,organizationalapproachescanbeusedsuchas
governmentalexclusivefranchises,flexiblefranchises,mixedpartnerships,

Inallofthesecases,onallpointsonthespectrumfrompublicgoodtoprivategood,itisthe
publicsector'sjobtodecidedwhichgoodsandservicesshouldbeprovide,how,towhom,bywhom,who
shouldpayforthecost,andhowshouldthepricebeset.Statedmoregenerally,itisalwaysthepublic
sector'sjobtodefinethepublicinterestandtoplan,buildandmanagetheorganizationsandsystems
necessarytoimplementthepublicinterest.Thisistrueeventhoughmanyofthesystemsandorganizations
areprivateorganizationsandindividualshavevaryingdegreesofprivatedecisionmakingautonomy.In
fact,eachstepintheprocessinvolvesamultitudeofprivatechoicesasindividualsoperateinthevarious
marketsavailabletothem.Butvaluedecisionsarealsorequiredbythepublicsector.

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I-B-7. ARE NGO'S PUBLIC?

Thenonprofitworld

Severallabelsareusedtodescribeorganizationinthenonprofitworld.Afewexamplesarenot
forprofitcorporations,nongovernmentalorganizations,voluntaryassociations,publicpurposecorporation
and,ingeneral,civilsociety,tonameafew.Somedistinctionsexistbetweenthedefinitionsofthese
variousentities.Thelargestcategory,whichincludesallothersubsets,is"nonprofitorganizations."This
includesanygroupingofpeople,formalorinformal,thepurposesofwhichdonotincludegeneratinga
profitforthefinancialbenefitofshareholder/members.Withinthissetisasmallercategory,nonprofit
corporations.

IntheUS,thewordcorporationreferstoanyorganizationformallyincorporatedinandchartered
byastategovernment.Corporationstypicallyhavemembersorshareholderownersandaregovernedbya
boardelectedbytheowners,howeverdefined.Manyentitiesownedbygovernmentsareinthiscategory
suchasmunicipalcorporations(citiesandvillages)andpublicauthorities.Citiesandvillageshave
legislativebodieselectedbythepopulationlivingwithintheirboundaries,whilemostauthoritieshave
governingboardmembersappointedbythemembergovernments.Othernonprofitcorporationsaresetup
outsideofgovernmentformally,butmustbylawhaveapublicpurpose.

Nonprofitcorporationsreceivetheirstatusinseveralwaysatseverallevels.First,thestateor
nationmustagreetoincorporatethemasnonprofits.Theincorporatingindividualsmusttypicallyfilefor
incorporationundertheappropriatenonprofitlaw.Then,theymustprovetheirnonprofitstatustothe
varioustaxingauthoritiesatthenational,stateandlocallevelsinordertoavoidtaxation.Sometimesthey
aretreatedasnonprofitsatonelevelforonekindoftaxandnotforothers.TheUSInternalRevenue
Service(thetaxcollector)classifiesnonprofitsintoatleasttwomajorcategories.OnegroupiscalledSec.
501(c)iiicorporationsbecausetheyarecertifiedasfollowingthatsectionoftheInternalRevenueCode.
Theymustprovethattheyareengagedinapublicpurposeandarenotparticipatinginpartisanpolitical
activities.Sec.501(c)ivorganizationscanbemembershiporganizationssuchaslaborunions.

Thetermnongovernmentalorganization(NGO)ismorecommoninotherpartsoftheworld,and
asthenameimplies,includesonlythosenonprofitcorporationsandnoncorporateorganizationsformally
outsideofgovernment.Theyareoftencalledthirdsectororganizations.

So,areNGOspublicorprivate?Mostmightsaythattheyareprivatesectorsincetheyare
formallyoutsideofgovernment,butdoesthisreallymatter.Really,governmentchartersallcorporations,
includingprivate,forprofitcorporations,suchasMicrosoft,forapublicpurpose.Governmentcharters
theseorganizationsandgivesthemspecialpowersandprivileges.Amongthespecialcharacteristicsare
limitedliability,andunlimitedlife.Thepurposeoftheirexistenceforthebenefitofthegeneralpublicis
thatthesefeaturesreducerisktomakecorporationsmoreattractiveforsaversandinvestortoinvesttheir
surplusessoastopromoteproductiononneededgoodsandservices,jobcreation,innovationandeconomic
growth.Theydistributeprofitstoshareholders,usuallyintheformofdividendsasarewardfortheriskthe
investortakes.

Notforprofitcorporationsaregiventaxexemptionsontheirprofitsinexchangeforspecific
activitiesthatmoredirectlybenefitthegeneralpublic,suchaseducation,healthresearch,andsocial
services.Also,intheUSandmanyothercountries,personalcontributionsto501(c)3organizationsare
deductedfromthegiversincometax,asaninducementforpeopletodonate.

TheIRSalsogivessomeforprofitcorporationstaxexemptstatusiftheypromisetodistribute
nearlyalloftheirprofitstoshareholdersimmediately.Theseare"passthroughcorporations,examplesof
whichareRealEstateInvestmentTrusts(REIT's)andvariousformsofmutualfunds.Governmentallows

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thistoinducesmallinvestorstoinvestpoolinvestmentcapitalthatcanbeinvestedinbigprojectsand
companies.

Itcanbeseenthatawidevarietyoforganizationsaregivenspecialprivilegesbygovernmentto
helpgovernmentachievepublicgoals,includingtheprovisionofspecificservicestothepublicandgeneral
economicgrowth.

I-B-8. ARE PUBLIC CORPORATIONS PUBLIC?

I-B-9. ARE FOR-PROFIT CORPORATIONS WITH A PUBLIC PURPOSE PUBLIC

All corporations set up for public purpose

Thecorporationsactisanefforttoinducepeopletoinvestsoastocreatejobsand
productsandservicestoservethepublic.

I-B-10. GOALS, NOT LEGAL STRUCTURES, DEFINE PUBLIC V. PRIVATE

ThePublicInterest

Who Defines?

Constitution

Statutory Process

Judicial Interpretation

Civil Law

Administrative Process

Citizen Participation

Market

NGO / Volunteerism

How Accountable?

Legislative Oversight of Administration

Corporate Oversight and Regulation

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The Naked Corporation 2003

PrivateInvestment

UsePursuitofPrivateInterestasanIncentivetoAccomplish
PublicGoals

I-B-11. IS THE DISTINCTION BETWEEN PUBLIC AND PRIVATE IS


DECREASING

C. MANAGEMENT
Theword'manage"comesfromtheLatinwordforhand"manus,"thusRomanian"mana."Some
claim"manage"historicallymeanttoskillfullyguideahorsewithasteadyhandonthereins().Thehorse
isatechnologywithpowerandstrengthandthecapacitytoenhancetheabilitiesoftherider.Thereinsare
essentiallyacommunicationdevicebetweenhorseanditschargesothatthebestattributesofeach
complementoneanother,andhorseandridercanfunctionasateam.

Themanagermustusethereinswithsensitivity,receivingmessagesaswellassendingthem.
Whilethereins,connectedtothebit,providesomeovertonesofstrongcontroltobeusedwhennecessary,
nomanagerwillsucceedwithcontrolalone.Horseandrideroperateasequals,ortherider'shandswillbe
feelingtheground,ratherthanthereins.

Publicmanagementistheskillfulhandlingofalltheresourcesavailabletomanagerstodiscern
andpromotethepublicinterest.Thoseassetsincludenaturalresources,thephysicalstrength,brainpower,
andcreativityoforganizationmembers,andtheuseofallkindsoftechnologiestomagnifythepowerof
theothersassets."Handling"meansputtingassetstogetherinthemostsynergisticway.

Publicmanagementdoesnotpresupposeanyparticularorganizationalstructureormethodfor
handlingassets.Itdoesnotpresupposetheinclusionorexclusionofanysetofactivities.Publicservices
andgovernmentalbureaucracies,aswehaveknowntheminthepast,arenotnecessarilytheonlywayto
pursuethepublicinterest.

Inthiscomplexworld,onecannotexpectthepublicsectortosaywhatthepublicinterestisina
sentenceoraparagraph.Thepublicinterestdependsinpartonthemillionsofdecisionsmadeeverydayin
themany"marketplaces"operatingwithintherulessetforthem.

Thepublicinterestisthereforedefinedandimplementedthroughacomplexinteractionofforces
andinstitutionsseekingandfilteringthedesiresofthepeople.Thisisdoneinthefollowingways:

1) Create marketplaces for those goods and services that lend themselves to market
decisions.(Whenmarketswork,theyarethebestallocatorsofresourcesandthe
bestdistributorsofgoodsandservices.Therefore,theresultsofthemarketplace
forthosecasesrepresentagoodapproximationofthepublicinterest.)

2)Perfectmarketsthroughincentivesandregulationstoexperiencethebenefitsofthe
marketplace.(Smallmarketimperfectionsexistinnearlyallsituations. Major
marketperfectingactivities,forexample,includepromotingopennessofmarket
informationandthesafetyofproductsthroughregulation.)

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3)Pollsocietytoestablishthecommunity'sdesires,particularlywhenservicesmustbe
provided for the whole community. This includes public hearings, advisory
committeesandotherformsofcitizenparticipation.

3)Electrepresentativeswhereacombinationoffulltimeexpertiseandresponsivenessto
citizensisrequired.Electedrepresenativescreateprograms,passstatuatorylaws
andallocatepublicresources.

4)Appointorhirebureaucratswithexpertisetomakedaytodayoperationaldecisions,
andcarryoutregulatoryactivitieswithintheframeworkprovidedbystatuatory
andadministrativelaw.

5)Ajudicateconflictswhenpeoplesbehaviorisoutsidethelaworthelawdoesnot
clearlydefineappropriatebehavior,and

6)Createconstitutionallawtoprovideanoverarchinganddurablestructuretoencompass
theentireprocess.

E. PUBLIC MANAGEMENT V. PRIVATE MANAGEMENT

APPLICATIONOFMGTPRINCIPLESTOPUBLICAFFAIRS

AreAnySkills,StrategiesSimilar?

Dealing with People

Successfulbusinessorganizationsinacompetitivefreemarketoftenunderstandthat
treatingpeoplewithrespectandresponsivenessisimportant.Theyknowthattheircustomers
havechoicesandcaneasilychooseanothercompanyiftheyarenothappywithone.

Inpublicorganzationsprovidingpublicservices,customerchoicemaynotbesoeasy.
Citizensmustusewhatisprovided.Thereforetheincentivetokeeppeoplesatisfiedmaynotbe
asstrong,basedonconsumerchoice.But,publicorganizationscandowelltotreatcitizensas
customersoftheirservices.Inthelongrun,peopleandbusinessescanstillvotewiththeirfeet.
Inthemodernworld,everycommunityisincompetitionwitheveryothercommunityfor
economicdevelopment.

Dealing with Other Resources

When do public organizations have priority access to scarce


resources

Logistics

Customer Orientation

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AreAnySkills,StrategiesClearlyDistinct?

Style of Accountability

Boundary Issues

Goal: Ultimate Well-Being of People

F. PUBLIC MANAGEMENT V. PUBLIC ADMINISTRATION

CONSTITUTIONALMANDATE

C. CROSS-CUTTING ISSUES (BRIEF)

TRUST, RESPECT, NO POWER RELATIONSHIP, INCLUSION, PERFORMANCE V.


PROCESS, POSITIVE OUTCOMES V. PROBLEM SOLVING, PROMOTE INDEPENDENCE
NOT DEPENDENCE, NON-FINANCIAL RESOURCES, HOLISM, SYNTHESIS V.
ANALYSIS, GENERALISTS V. TECHNOCRATS.

II. CONSEQUENCES OF A DEFICIT/ PROBLEM-ORIENTED


MODEL FOR PUBLIC MANAGEMENT
(ppt)

III. AN ASSET ORIENTATION TO PUBLIC MANAGEMENT

THE CLIENT AS EQUAL

THINK ABOUT IMPLEMENTING AN ENVIRONMENT THAT INCLUDES THE


FOLLOWING;

1)Everycustomer,client,citizen,employee,neighborhood,andcommunityisrecognizedtohave
tremendousstrengths.

2)Ifproperlyrecognized,encouraged,cultivated,anddeveloped,thesestrengthsrepresent
powerfulassetsthatcanbeappliedtowardgreaterachievementbyindividuals,communityorganizations,
agencies,neighborhoodcommunities,andthecommunityatlarge.

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3)Thedefinitionandrecognitionofthesestrengths,thewaytheyaredeveloped,thedirectionin
whichtheyareapplied,andtheultimategoalsthataretobeachievedwiththemaredefinedfromtheinside
out.Thatis,theycomefromwithintheindividual,thelocalorganization,theneighborhoodcommunity,
andthelargercommunity,inthatorder.Goals,problems,directionsandsolutionsarenotdefinedby
outsideagenciesoragents.

4)Thetransitionalroleoftheoutsideagent(thepublicemployee)istoaskthefollowing
questionsofindividuals,neighborhood,communitiesandorganizations:

a)Whatareyouproudofaboutyourself,yourfamilyandyourcommunity?

b)Whatdoyouwanttoachieve?

c)Whatdoyouwantyourcommunitytoachieve?

d)Whatwouldyouliketocontributetoyourcommunity,country?

.......

x)Whatbarriersorchallengesdoyoufaceinachievingyourdreams?

y)Canwehelpeachother?

z)Ifso,how?

5)Basedontheabove,theclient/customer/citizensistheboss,theonewhoisthefocusof,the
driverforandtheactivatorofthegovernmentalsystem.

WHAT KIND OF STRENGTHS CAN AN INDIVIDUAL HAVE? UNUSUAL...

SKILLS&ABILITIES

ATTRIBUTES

ATTITUDES

CONNECTIONS

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CommunicationLinks

SocialCapital

Define Social Capital

EXPERIENCE

HISTORY

HEALTH

MONEY

TIME

COMMITMENT

EDUCATION

TRAINING

CREDENTIALS

SPECIALIZEDKNOWLEDGE

CAN WE IDENTIFY STRENGTHS IN SITUATIONS NORMALLY THOUGHT OF AS


NEGATIVE?

COMPENSATIONS

Mostpeoplenormallyuseonlyasmallpercentageoftheirmental
andphysicalabilities.Peoplewithdifficultiescompensate.Dealingwith
difficultiescausespeopletobestronginotherways.

Examples

Disabilities

Blind

Deaf

People in wheel chairs

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Epileptic

Prisons

Time to focus

Receive attention

Education

Artistic Expression

Boredom or Overcome Boredom?

WHAT KIND OF STRENGTHS CAN A COMMUNITY HAVE? UNUSUAL ...

NATURALPHYSICALATTRIBUTES

Terrain

Flora

Fauna

Lakes

Waterfalls

LocationvisavisAnyoftheAbove

Other

MANMADEPHYSICALATTRIBUTES

Physicalstructures

Architecture

Physicalinfrastructure

LocationvisavisOtherCities

ECONOMICATTRIBUTES

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StrongEconomy

StableEconomy

HighTechEconomy

SkilledLaborForce

LocationtoResources,MarketsandEconomicActivity

EntrepreneurialCulture

HUMANRESOURCES

Educatedpeople

PeoplewithConnections/SocialCapital

PeoplewithTime

HealthyPopulation

PolitePeople

CULTURALATTRIBUTES

TrustinFuture(discountrate)

HistoryorHistoricalSites

PerformingandFineArtsSkills

FamousArtPieces

Museums,ConservatoriesandOtherInstitutions

Whetherornotyoutotallybelieveinthepossibilityorcorrectnessoftheabovestated
scenario,adoptitforthemomentandconsiderthefollowingquestion:

Whatchangeswouldhavetotakeplaceinyouragencyororganizationorinthe
governmentalsystemtobringaboutandoperatewithinthedescribedenvironment?

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IV. AGENCY PLANNING

A. NORMATIVE TO OBJECTIVE: GENERAL DIRECTION


TO SPECIFIC, DESCRIPTIVE STEPS.

BRIEF OVERVIEW

B. MISSION AND VALUES

1. GOALS

SOURCEOFGOALS

Statutorylaw/legislativemandate

Individualinput(brief,later)

TYPESOFGOALS

Output

Maximizationv.Satisficing.

2. VALUES

DEFINITION

EXAMPLES(SOASTOINDICATEWHATISAVALUEANDHOWITDIFFERS
FROMAGOAL.DISCUSSEXAMPLESLATER)

e.g.everypersontobetreatedequally

e.g.noemployeesshouldhavebusinessholdingsthatarea
conflictofinterest

giveawayrecognition(credit)forsuccesses

e.g.organizationaldecisionsareopentothepublic

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C. TYPES OF PLANNING

LONG-RANGE

COMPREHENSIVE

STRATEGIC

D. STRATEGIC PLANNING

APPROACH

FOCUSONMOSTIMPORTANTISSUES

SHORT,DEFINEDPERIOD

FOCUSONWHATISCLEARLYPOSSIBLE,RATHERTHANIDEALIZED
GOALS.

PROCESS (WALLS OR EDAC)

CHARTFROMEDAC

EXERCISE

MEASURABLE,ACHIEVABLEOBJECTIVE

STUDY

ACTIONSSTATEMENT(FORM)

Actors

Time

TESTPLAN

Quantitativemodel

Publichearing

Focusgroup

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IMPLEMENT

EVALUATE

E. CONSEQUENCES OF ASSET-ORIENTATION FOR


PLANNING

1. PROCESS: HOW WOULD THE PLANNING PROCESS CHANGE IN AN ASSET-


ORIENTED SYSTEM?

INCLUSIVE

Notjustaninternalexercise

BroadPointofView

Ifcitizensweretodecideratherthanpoliticianorbureaucrats,wouldthethingswedobe
consideredrelevant.How?Bywhom?

BuyinandSenseofOwnershipbyAllStakeholders

ITERATIVE

Doperiodically

ConstantFeedback

OPEN

Personalinterests,potentialconflictsofinterestareputonthe
table.

Intermediatedecisionsarenothidden.

ORDER:

Workbackwardfromgoalsoroutcomestoactions.

Normative to Objective

General to Specific

Ideas to Actions

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LEARNING

Planningisajourneynotadestination.

StrategicPlanningisaLearningProcessforaLearning
OrganizationnotjustaTasktobedone

CitizensandClientsAlsoLearn

2. RESULTS. HOW WOULD THE PRODUCTS OF THE ORGANIZATION


CHANGE IN AN ASSET-ORIENTED SYSTEM?

FocusingonIndividualandorganizationalstrengthswillleadtoafocusonproducingwhat
theagencydoesbest,ratherthanconstantlygrabbingfornewturf.Itisoktogrowandchangeand
expand,butnotjustfororganizationalsurvival,andnotinawaythatcausestheorganizationtodo
everythingpoorly.

CONCENTRATEONDOINGWHATTHEAGENCYDOESBEST.

Focusingonindividualandorganizationalstrengthscausestheorganizationto"produce"whatit
doesbestratherthangrabforturfforthesakeofsurvival.Itisokforanorganizationtochangeandgrow,
butoftenanorganizationendsupdoingnothingwell.

ULTIMATEGOAL:TOGOOUTOFBUSINESS.

DefineaThingtoDoandDoitintheMostComplete,Openand
EffectiveWayPossible

Ifyouareassetoriented,dowhatyoudoinawaythatturnsoverpowerandabilitiestoothersso
thatyougooutofbusiness.

Ifyouaredealingwithaproblem,solvethefoundationalcauseoftheproblemsothattheclient
doesnothavetokeepcomingback.Thetypicalapproachistotemporarilyalleviatesymptomssothat
clientsbecomedependant.

Anexampleisthedrugindustrywhichseesallsymptomsasproblemstobealleviatedand
advertisesonTVdrugstodealwithsymptoms.

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V. ORGANIZATIONAL STRUCTURE
A.WHATISANORGANIZATION?

B.TRADITIONALORGANIZATIONALSTRUCTURES

C.CONSEQUENCESOFTRADITIONALSTRUCTURES

D.ORGANIZATIONALCONSEQUENCESOFANASSETORIENTATION

E.INTERMEDIATECOMPROMISE

Thissectionlooksatorganizationsandhowtheyareusedinpublicmanagement.Thefirstpart
defineswhatisanorganization.Thesecondpartlooksattraditionalorganizationalstructures.Partthree
investigatessomeoftheconsequencesoftraditionalorganizationalstructures.Partfour(D)examinesthe
organizationalconsequencesoftheasset/strengthbaseorientationdescribedpreviously.Partfive(E)looks
forintermediateandcompromisewaystogettothenewparadigm.

A. WHAT IS AN ORGANIZATION

WHY DO WE HAVE ORGANIZATIONS: WHAT IS GOOD ABOUT THEM ?

WHOLEGREATERTHANTHESUMPARTS

ANORGANIZATIONISASOCIALTECHNOLOGY

WHAT DO THEY NEED TO SUCCEED ?

MISSION,RESOURCES,TOOLS,STRUCTURE,COMMUNICATION,
LEADERSHIP,MOTIVATION

ACOMMONLYUNDERSTOODM
ISSIONORSHAREDGOAL

RESOURCES

Rawmaterials

Humanresource

A Diverse Set of Skills and Abilities: An Appropriate Level of


Specialization of Labor

Integration of Diverse Skills Around Tasks Leading to


Common Goals

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ACOMMONLYUNDERSTOODSTRUCTURE

Formal

Positions/Job Description

Formalized relationships/lines of authority

Formal communication lines

Rules

Informal structure

COMMUNICATIONBETWEENMEMBERS

Formal

Informal

LEADERSHIP

Definition

Not Position

MOTIVATION

LESS EFFECTIVE ORGANIZATIONS (BRIEF)

UNCLEARORUNSHAREDGOALS

WEAKUTILIZATIONOFSKILLSANDABILITIES

CONFUSEDINTEGRATIONOFTASKES

Unclearstructure

Unclearornotfollowedrules

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PoorCommunication

POORLEADERSHIP

WHAT IS POTENTIALLY BAD ABOUT AN ORGANIZATION ? (GOOD PEOPLE


TRYING TO DO GOOD THINGS PRODUCE BAD RESULTS)

THESURVIVALIMPERATIVE

EachMemberoftheOrganization(Consciouslyor
Unconsciously)HasASetofPersonalGoalsDifferentFromthe
OrganizationalGoal

Keep Job

Get Financial and Ego Rewards

Advance in the Organization and in Career

OrganizationalGoalBecomesStabilityandSurvivalRatherThan
AccomplishmentofStatedMission.

OrganizationTakesonLifeofItsOwn.

The Whole Greater Than the Sum of the Parts In a Bad Way.

OrganizationsDon'tGoOutofBusiness

HowDoTheySurvive

Imperative:Define a Problem

Society Has Something Wrong With it That the Organization


Will Fix

Provide a Clear Definition and a Name for the Malady

Turf/Credit/Market: Own a Problem

Don't Let Others Work on Solving the Problem

Political Support: Develop a Constituence/Support Network

Define Constituency

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Customers

Direct Beneficiaries

Professionals in the Field

People Employed By Focus on the Problem

Maximize Budget: Count Cases of the Problem to


Demonstrate Need

Get External Funding (Donations/Foundations): Exaggerate


the Problem/Define a Crisis, a Sense of Urgency

Demonstrate Performance: Generate Positive Terminations

B. TRADITIONAL ORGANIZATIONAL STRUCTURE

1. HIERARCHY

MOSTBOOKSONORGANIZATIONASSUME

CHAINOFCOMMAND

LINE&STAFF

SPANOFCONTROL

2. HISTORY OF ORGANIZATIONS: TWO RELATED HISTORICAL ROOTS

MILITARY

LongHistory

ManyWritersandTheorists

Niccolo Machiavelli. The Art of War.

PrimaryIssueisControl&MotivationofPeople(pawns),
WeaponsandEquipmenttoAchieveClearlyDefinedGoals

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INDUSTRIALREVOLUTION

1800

ProductionofPhysicalThings

MovefromCraftProductiontoMassProduction

EconomyofScaleintheProductionofPhysicalThings

StandardizedProducts:MassProducedPartsMustFitAnyUnit

HumanResourceasBrawnNotBrain

LargeOrganizationsDevelopedLikeArmies(clearneedfor
controlofpeopleandequipment)

CentralizationofDecisionmaking

ConcernforDeviance

Keep Control to Insure Standardization of Products

Quality of Each Unit Based on Whether It is Within


Tolerance Levels

_________________________________________________________

****

*************

**

***************

****

_______________________________________________________________________________________________________ ____ _______


* *

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Keep Control Over Worker's Behavior and Wages (within


tolerance limits)

QualityHasNothingtoDoWithCreativity(attheworkerlevel)

Quality is Producing a Product That Has a Low Level of


Deviance

At the Worker Level, Quality is Conforming to Rules That


Help Produce that Product.

EfficiencyBasedonNumberofStandardizedUnitsProducedPer
UnitofCost.

ScientificManagement

Robert McNamara's book on the Viet Nam War shows the


history of and failure of scientific management.

SlowMovingDecisionsSystem

GovernmentsUseHierarchy

MaxWeberformulatedaparadigmforgovernmentalorganizationandfunctionbasedonthe
hierarchy.(Weber.EconomyandSociety)Sincethen,itistheonlytypeoforganizationalstructurepeople
thoughtof.

People assume that the hierarchy is the only way.

ServiceOrganizationsAdoptedtheAttitudesoftheHierarchyas
Well

Service Organizations define a standardized service


product.

They measured production based on the number of units of


product produced

(Input and Throughput not Outcomes).

(eg. Deciding which university program to fund based on


number of student credit-hours produced rather than some measure
of the quality of education or the impact on the lives of students.)

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RiseofRationalPositivism

PositivismisaphilosophydevelopedbyAugusteComteinthebeginningofthe19th
century,whichstatedthattheonlyauthenticknowledgeisscientificknowledge.Thisviewis
sometimesreferredtoasscientism.Asanapproachtothephilosophyofsciencederivingfrom
EnlightenmentthinkerslikePierreSimonLaplace(andmanyothers),positivismwasfirst
systematicallytheorizedbyAugusteComte,whosawthescientificmethodasreplacing
metaphysicsinthehistoryofthought,andwhoobservedthecirculardependenceoftheoryand
observationinscience.Brazil'snationalmotto,Ordem e Progresso("OrderandProgress")
wastakenfromComte'spositivism,alsoinfluentialinPoland.Positivismisalsothemostevolved
stageofsocietyinanthropologicalEvolutionism,thepointwherescienceandrationalexplanation
forscientificphenomenadevelops.

Thekeyfeaturesofpositivismasofthe1950s,asdefinedinthe"receivedview",are
(Hacking,1981):

Afocusonscienceasaproduct,alinguisticornumericalsetofstatements;

Aconcernwithaxiomatization,thatis,withdemonstratingthelogicalstructureand
coherenceofthesestatements;

Aninsistenceonatleastsomeofthesestatementsbeingtestable,thatisamenableto
beingverified,confirmed,orfalsifiedbytheempiricalobservationofreality;statementsthat
would,bytheirnature,beregardedasuntestableincludedtheteleological;(Thuspositivism
rejectsmuchofclassicalmetaphysics.)

Thebeliefthatscienceismarkedlycumulative;

Thebeliefthatscienceispredominantlytranscultural;

Thebeliefthatsciencerestsonspecificresultsthataredissociatedfromthepersonality
andsocialpositionoftheinvestigator;

Thebeliefthatsciencecontainstheoriesorresearchtraditionsthatarelargely
commensurable;

Thebeliefthatsciencesometimesincorporatesnewideasthatarediscontinuousfromold
ones;

Thebeliefthatscienceinvolvestheideaoftheunityofscience,thatthereis,underlying
thevariousscientificdisciplines,basicallyonescienceaboutonerealworld.

Source:http://en.wikipedia.org/wiki/Positivism.May26,2006

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C. INEFFICIENCIES OF TRADITIONAL MODEL:


BUREAUCRACY

1. INEFFICIENCIES RELATED TO INFORMATION FLOW

THEMOSTIMPORTANTISSUEINTHEMODERNWORLD

FastMoving,MarketOrientedWorld

SLOWNESSOFINFORMATIONFLOW

TooManyLayersBetweenPolicyMakersandCustomers

MemoSitsonEachInBoxUpTheLine

COMMUNICATIONISINACCURATE

InformationisFilteredAtEachLevel

SuperiorsToldWhatTheyWanttoHear

(King's New Suit)

(Kill the Messanger Who Brings Bad News)

(Iraq Wepons of Mass Destruction)

Send Up Data that Appears to Support Organizational Goals

SuperiorsGivenInformationThatSupportstheBranch

Send Up Data That Promotes Our Budget

Send Up Data That Makes Division Manager Look Good

CROSSORGANIZATIONALCOMMUNICATIONDISCOURAGED

SecretInformationMightGetOut

UnflatteringInformationMightSpread

INFORMATIONGATHERINGISSPECIALIZEDANDANALYTICAL

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DefineAnalysisandSynthesis

EachUnitOnlyLooksAtWhatitNeeds.

Each sub organizational unit has its own perspective on


what it needs.

Each units has its own selective perception.

Define "Selective Perception"

INFORMATIONISINCOMPLETE

UnitManagersWithholdInformationtoGainAdvantageor

ProtectTheirImage

2. INEFFICIENCIES RELATED TO DECISION SYSTEMS

Theworstdifficultiesfordecisionmakinginthehierarchyareslowandinaccurateinformation,
butotherrelatedissuesplaguethesystem.

WASTECAUSEDBYINABILITYTOMAKEDECISIONSATLOWERLEVEL

LACKOFSYNTHETICTHINKING

InformationSynthesisatTopOnly

SynthesisisMoreSubjective

SynthesisAttheTopWithSelectiveInformationandBiased
CommandersCreatesGreaterDecisionBias.

3. INEFFICIENCIES RELATED TO CONFLICT

BRANCHESBECOMESEPARATE,COMPETITIVEANDANTAGONISTIC

Causes

Natural tribalism, subculture

Branchesdevelopdistinctsubcultures.

Sense of History

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Language/jargon

Acronyms

In jokes

Dominance of a particular profession,

Dominance of a particular gender,

(eg. Engineering branch has mainly male engineers, college


graduates. Counsel's office dominated by male attorneys, customer
service dominated by women who graduated in non-technical areas.

Dominance of a particular political attitude

Us v. them mentality

Budget competition

Branch leaders want to be promoted, so they foment


competition

Turf Wars

Professional " Territory"

Conflicts over Mandate Turf

Personality Wars Between Managers

Turf Wars Exacerbate and Magnify Personality Differences

Professional Differences Magnify Personality Differences

Effects:Donotcooperate

Don't share information

Poor referral system

Distinct Training

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Personnel Can Not Move Easily From One Branch to


Another

Destruction of Common Organizational Vision, Sense of


Ownership

CONFLICTWITHINBRANCHES.

PeopleJealousofOneAnother.Don'tWantSomeonetoBe
PromotedAheadofThem.

InAHierarchythePeckingOrderasSymbolofSuccessisVery
Clear.

4. INEFFICIENCIES RELATED TO MOTIVATION

EMPLOYEESAREISOLATEDFROMTHEFINALPRODUCT

THEYDONOTHAVEASENSEOFOWNERSHIP

IFADVANCEMENTINTHEORGANIZATIONISBLOCKED,PERSONNEL
FEELMOREISOLATED,ALIENATEDANDLESSMOTIVATED

5. INEFFICIENCIES RELATED TO PERSONNEL EVALUATION

PETERPRINCIPLE:PEOPLEAREPROMOTEDTOTHEIRLEVELOF
INCOMPETENCE

6. INEFFICIENCIES VIS A VIS CHARACTERISTICS OF NEW WORLD

Introduction

Whatcanwesayaboutthecurrentmodernworldincomparisontotheworldofjustafew
centuriesordecadesago?Mostimportantlyforthisdiscussion,whatcharacteristicsofthemodernworld
mosteffectorganizations?Andultimately,whatcharacteristicsmosteffectpublicorganizations?(coborzan
chapter)

Foronething,theworldseemstobemovingfasterandfaster.Sciencebasedtechnology
advancesevermorerapidly,atrendthathasbeenacceleratingsinceatleastthebeginningofrecorded
history.Thisforcessocialsystemstotrytokeepup.Foranother,theworldisbecomingmoreaffluent,at
leastmaterialistically.Materialisticaffluencedoesnotnecessarilytranslateintowealthorwellbeing.It
certainlydoesnotnecessarilytranslateintoabetterlifeforeveryone.Insomesense,thehumanraceis
movinguptheMaslovscale,althoughgreatevents,bothmanmadeandnatural,sometimesmoveusdown
thescalequickly.Perhapsourpositiononthescaleasaspeciesisbecomingmorediverseandirratic.A
thirdthingisthatpeopleknowmore,becauseofchangesininformationtechnology.Again,thisisnot
alwaysallgoodforeveryone.Foronething,moreinformationcausespeopletohaverisingexpectations;

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inasense,ahigherpercentageofhumanswanttomoveuptheMaslovscalemorequicklythanthey
humanlycan.

Theseareverylongtermtrendsthathaveproventhemselvestobesustainedovermillenia.
Somewhatshortertrendsarethemovetowardmarketmechanism.Inourcurrentmilieuthistrendseemsto
necessarilyfollowfromtheonesstateabovesincebureaucraticdecisionssystemsdonotseemtobeableto
keepupwiththefasterpaceanddonotrespondaswelltoindividualdesires.

Whateffectisthischangingworldhavingonorganizations?Foronething,theymostrespondtoa
differentsetofneeds,generallyhigherontheMaslovscale.Second,theymustrespondmorequicklyto
change,changeininformation,changeintechnologyandchangeinmarkets.Third,theymustrespond
moresynthetically.Moreandmore,theissuesfacingpeopledemandinformationandknowledgethatdoes
notfitintothetraditionalcategories,thetraditionaldisciplinesandthetraditionalprofessions.These
traditionalsilosevolvedoveralongperiodoftimeinaslowermovingworld.Fourth,organizationsmust
respondmorecreativelyasorganizationsandthereforemustvaluemorethecreativethinkingofpeople.

Thissectionwilllookinmoredetailateachoftheseissues.

ASCIENCEBASEDTECHNOLOGYCHASEDBYSOCIALTECHNOLOGY

B.AFFLEUENT,MATERISTIC,MASLOV

C,NEWWORLDHIGHLEVELOFMEDIAINFORMATIONNOT
CONTROLLEDBYANYHIERARCHY

MediaandSovietUnion

EveninsidesmallorganizationsEmails

Messenger

EmployeesNotHappytoBeJustBrawn.EvenUnskilledFactory
WorkersDemandMoreInterestingJobs.

D.NEWWORLDRISINGEXPECTATIONS

E.NEWWORLDISMARKETORIENTED

FastMovingMarketsThatEffectPublicSectorandPrivate
Sector

Entire Supply Chain

Meijers-Italy

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F.PRODUCTS SERVICES EXPERIENCES TRANSFORMATIONS

Step1.EvenProductsareServicesandExperiences

(eg. Automobile designed to appeal to ego, self-image)

Satisfying a customer requires more that just delivering a


product that works, at a good price. Must satisfy customer's other
emotional needs

Ergo Packaging, Marketing, Follow-up, Maintenance

Step2.ServicesMustProvideExperiences(recreation,anew
feeling,memories)

Step3.SocietysNeedForExperiencestoBeTransformations
(selfrenewal,becomeanewperson)

NewProductisLaborandSkill(HumanResource)Intensive

Delivering a Service Instead of a Standardized Product


creates Many Unique Interpersonal Situation.

This Requires More Interpersonal Skills

Understanding of Human Emotional Needs

Maslov's Hierarchy 1) Physical, Security, Pleasure, Ego, Self-


Actualization

G.NEWWORLDISSUESFACEDBYORGANIZATIONSNEEDMORE
SYNTHETICTHINKING,NOTJUSTANALYSIS

IssuesareInterdisciplinary

IssuesareInterprofessional

(eg.Environmentalissuesdemandengineering,education,
multiplesciences,politics,planning,etc.)

H.THENEWWORLDVALUESCREATIVITY

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7. SUGGESTED SOLUTIONS TO INEFFICIENCIES (THAT ARE STILL HIERARCHY


BASED; MAKE HIERARCHY WORK BETTER)

TQM

CQI

REDUCEDISTANCETOCUSTOMER

ShallowHierarchy

Increase Span of Control

Fewer Layers

Reduce Middle Management

(image of pyramid with middle cut out)

DecentralizationofDecisionMakingDowntheHierarchy

Greater trust in production workers

Eg. The Cord at the Auto Plant

Greater trust of people dealing with customers

MOVEPEOPLEAROUNDORGANIZATION(JAPANESEMODEL)

PromoteCrossOrganizationalUnderstanding

FighttheBarons(SiloDevelopment).MovetheGenerals

AvoidCorruption(peoplegettoknowthejobtoowell)

FocusonPeopleSkillsRatherthanTechnicalExpertise

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D. ORGANIZATIONAL CONSEQUENCES OF AN ASSET


ORIENTATION

PPT

PRINCIPLES

NOPOWERRELATIONSHIP.

ManagersSupportEmployeesNotDictatetoThem.

ManagersAreNotSuperiorsWhoLookDownAtandControl
Employees.

UpSideDownPyramid

(image)

TAPEXPERTISE

FindOutFullyWhatEachPersonHastoOfferandEmploy
TheirSkills

DEVELOPEVERYONE'SKNOWLEDGEANDSKILL

AVOIDTURF/TERRITORYISSUES.

ORGANIZATIONAL CONSEQUENCES

NOHIERARCHY

AFTERSTRATEGICPLANNING,CREATETEAMSTOADDRESSSTRATEGIC
ISSUES.

(imageneedstobecreated)

TeamMembersareDrawnFromPoolsofExperts

Internal pools

External pools

TeamsAreInterdisciplinary/InterProfessional

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TeamsAddressIssuesWholistically

TeamsAreResponsibleforBothAnalysisandSynthesis.

TeamsAreTemporary.TheyExistUntilTheyAccomplishTheir
Goal

TeamsAreAssignedTemporaryLeaders.ALeaderofOne
TeamMayBeaFollowerIntheNextTeam

TheJobofManagementistoSupportTeams.

TeamsAreGivenDecisionmakingPowerWithRespectToTheir
Issue

TeamMembersShareAlloftheInformationandExpertiseThey
Have.

TeamsDiscussOpenlyandReachConsensus

TeamMembersTeachEachOther

TeamsAreLearningOrganizations

PrivateSectorExample

Design a car

Customer focus group

Engineers

Designers

Dealers

Public highway experts

Energy experts

PublicSectorExamples

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Fixing a Golpa (pot hole) team

Engineer

Contractor

Urban planner

Finance expert

Utilities

School administrators

Neighborhood residents

Neighboring businesses

Concern about effect of street closure on the busines

NGOs

Handicappers (blind)

Unions

Employment office

E. INTERMEDIATE COMPROMISE STEP (BETWEEN


HIERARCHY AND ALTERNATIVES)

MATRIXMANAGEMENT

VerticalOrganizationalDivisionsRepresentOrganizational
HomeofEachEmployee

Horizontal,Crosscutting,interagency,interdisciplinaryunits
borrowpeoples'timefromtheirHomeUnit.

(imageneedstobecreated)

LEARNINGORGANIZATION

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Isanorganizationthatfacilitatesthelearningofitsmembersandcontinuouslytransforms
itselfasaresultofthatlearning.Alearningorganizationpromotessystemicthinkingandseeks
todevelopandcontinuouslymodifyasharedvisionthroughteamlearningandsharedknowledge.

Alearningorganizationissaidtobebetterabletocopewitharapidlychanging
environomet.

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VI. PERSONNEL MANAGEMENT AND MOTIVATION

TRADITIONAL APPROACHES TO PERSONNEL


MANAGEMENT IN A HIERARCHY

WRITE A JOB DESCRIPTIONS FOR EACH POSITION IN THE HIERARCHICAL


ORGANIZATIONAL CHART

HIRE BASED ON JOB DESCRIPTION

FILLWITHQUALIFIEDSPECIALISTSWHOCANCARRYOUTTHEDUTIES
INTHEJOBDESCRIPTION

RULE-BASED MANAGEMENT: EMPLOYEES MUST FOLLOW RULES:


MANAGEMENT MUST ENFORCE RULES

ORGANIZATIONALRULES

JOBDESCRIPTIONRULES

EVALUATE INDIVIDUAL PERFORMANCE BASE ON DEGREE OF DEVIANCE


FROM JOB DESCRIPTION AND ORGANIZATIONAL RULES

USE THREAT OF NEGATIVES TO MOTIVATE PEOPLE TO WORK HARD TO


MATCH THEIR BEHAVIOR TO THAT CALLED FOR IN THE JOB DESCRIPTION.

LOSSOFJOB

NOPROMOTION

NORAISE

WITHHOLDINGOFEMOTIONALREWARDS

WITHHOLDINGOFEXTERNALVALIDATION

SPAN OF CONTROL

NUMBEROFEMPLOYEESCONTROLLEDBYEACHMANAGERATEACH
LEVEL

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DEPENDSONABILITYOFSUPERIORTOOVERSEEWORKERS
FULFILLMENTOFJOBDESCRIPTION

CIVIL SERVICE SYSTEM IS LEGALIZATION OF THE STRUCTURE AND JOB


DESCRIPTIONS

INNOVATION

LITTLEROOMFORINNOVATIONINEACHPOSITION

INNOVATIONMUSTCOMEFROMTHETOP

Reorganization

RevisedDescriptionoftheJobDescription

SUPERIORS REQUIRE THAT ALL COMMUNICATION FOLLOWS CHAIN OF


COMMAND.

THE CONSEQUENCE OF HIRING SPECIALISTS IN EACH POSITION, HAVING A


DEEP HIERARCHY, AND A STRICT CHAIN OF COMMAND IS TECHNOCRACY

TECHNOCRATSARESPECIALIZEDTECHNICIANS

THEYFEELTHEYARESMARTERTHANBOTHPOLITICIANSANDTHE
GENERALPUBLICBECAUSETHEYHAVETRAINING.

TheDangerofALittleKnowledge:Arrogance

THEYSCREENINFORMATIONGOINGUPANDDOWNTHEORGANIZATION
BASEDONTHE"LENS"OFTHEIRPROFESSION.

MostProfessionallyEducatedPeopleareMoreCommittedto
theirProfessionThantoTheirOrganization.

They Will Look To Their Profession For Guidance on How to


Act Rather Than Their Organization Because a High Reputation In
Their Profession Will Advance Their Career More By Allowing Them
To Move Between Organizations

Professionals Will Go to Professional Association Meetings


to Make Contacts

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Professionals Follow Trends and Fads in their Profession.

Professionals Often Gain Rank in Their Profession

Professional Associations Push For Certification to Force


Their Members to be Hired

Certification is Theoretically Based on Needed Expertise to


Do a Job

Certification is Often An Attempt to Ensure the Employment


and High Wage of a Professional.

Professionals Lobby, Becoming a Political Force.

They lobby for:

certification

more jobs and contracts requiring their expertise

rules excluding similar or overlapping professions from doing


their work.

tax breaks or government grants for tools and training

university status

they invite politicians to annual conventions.

They create subspecializations, sometimes to compete with


other professions. (e.g. Architects will create specializations in
bridge design

TECHNOCRATSCREATEASEPARATIONBETWEENTHEPOLICYMAKER
ANDTHEPUBLIC.

SYNTHESISSYNTHETICTHINKINGCANONLYTAKEPLACEATTHETOP

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CONSEQUENCES OF ASSET ORIENTATION TO


PERSONNEL MANAGEMENT

HOW WOULD A MANAGER TREAT PERSONNEL DAY TO DAY

ASEQUALS

Interactwiththem.Don'texertpoweroverthem.Howcanwe
helpeachother?

SEEKANDUTILIZETHEIRSTRENGTHS.

MakeandEfforttoFindOutAllThatEachEmployeeHasto
Offer.

MATCHABILITYTOTASKTOMAXIMIZECONTRIBUTION

AssignEmployeestoTasksThatMaximizeUseofTheirSkills

PutThemonTeamsWhereTheyCanContribute.

MakeThemTeamLeadersWheneverTheyHavetheKnowledge
andAppropriateTraits.

VALUETHEIROPINION

BUILDTRUST

BuildTrustWithThemandThenTrustThem.

Buildingtrustmeanstrustingmoreandmoreandrewardingtrustworthybehaviorwith
greatertrust

SUPPORTTHEIRSUCCESSONEACHTASK

(provideresources,information,time,decisionmakingauthority,
emotionalsupportandencouragement)

GivethemCreditforSuccess

SUPPORTTHEIRLONGTERMSUCCESS

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FindOutWhatTheyHaveInterestinandWhatCareerThey
Want.CareerPlan

HelpThemDevelopTheirCareer.

Send them to training, conferences.

Help them develop connections,

Promote them for awards.

Send them to another employer if their interests don't fit


with the goals of your agency

ENCOURAGEPERSONNELTOTEACHANDLEARNFROMEACHOTHER.

IfTheyAreNotInCompetitionForPromotion,TheyCanHelp
EachOther

MentoringPrograms

ENCOURAGESYNTHETICTHINKING

HIRING PROCESS: HOW WOULD ASSET-ORIENTATION CHANGE THE WAY


YOU HIRE PERSONNEL?

RATHERTHANJUSTLOOKFORGREATESTEXPERTISE,LOOKFOR
PEOPLEWHO:

areselfmotivated

respectandcelebratediversity

havepositiveattitude

havegainedcrossdisciplinaryknowledgeratherthananarrow
profession.

exhibitcollaborativestyle

havesyntheticskills,notjustanalytical

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TRAINING: HOW WOULD AN ASSET ORIENTATION CHANGE THE WAY YOU


TRAIN PERSONNEL

INGENERAL

ActiveLearning

CommunityAsClassroom

CaseStudies

(insert material from case study research)

Internship,JobShadow

Simulation

TeachEachOther

LearningBasedv.InstructorBased

EXISTINGPERSONNEL:WHATTRAININGWOULDYOUSEEKFOR
EXISTINGPROFESSIONALSTAFF?

assetorientation

assetmap/communitydirectoryuse

evaluation

collaboration

assetorientedpersonnelmanagement

thetrainingtheyfeeltheyneedtodotheirjobbetter

internshipinanotherunit

NEWPERSONNEL:WOULDYOUTRAINNEWEMPLOYEESDIFFERENTLY
UNDERASSETORIENTATION?

Mentoring,sharingknowledge,values,skills

careerplan

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focusonutilizingtheirstrengths

traininginusingtheassetmap/communitydirectory

internshipinanotheragency

crosstrain

culturalsensitivity

traininginusingvolunteers

JOB DESCRIPTION: WOULD YOU CHANGE JOB DESCRIPTIONS? HOW


WOULD JOB DESCRIPTIONS BE DIFFERENT IN AN ASSET-ORIENTED APPROACH.

MOREFLEXIBLEEXPERTISE

LESSSPECIALIZED

CROSSDISCIPLINARY

SELFDEFINEDGOALS/CAREERPLAN

FLEXIBILITYTODETERMINEWHATACTIONISNEEDEDANDTO
INTERACT

MOREDECISIONMAKINGBUILTINTOJOBDESCRIPTION

PERSONNEL EVALUATION: HOW WOULD YOU CHANGE THE WAY YOU


EVALUATE PERSONNEL IN AN ASSET-ORIENTED ENVIRONMENT?

EVALUATIONBASEDONCAREERPLAN

DescriptionofCareerPlanSystem

Organizational Goals

Personal Goals

Fit with org goals

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Planned activities

Fit with goals

Fit with others

Support Needs

Evaluation plan: based on goals

REWARDCOLLABORATION

DOUBLECOUNTSUCCESS,DON'TMAKEPEOPLEFIGHTOVERCREDIT
FORGOODRESULTS.

PROGRAM/PERFORMANCE/OUTCOMEORIENTED

CLIENTASEVALUATOR

OUTSIDEPEERREVIEW

VOLUNTEERS: HOW WOULD YOU UTILIZE VOLUNTEERS DIFFERENTLY?

ASKWHATTHEYWANTTOACHIEVE

TREATASEMPLOYEES

SCREENING/INTERVIEW

TRAINING

OFFICEANDSUPPORTEQUALTOOTHERS

INCLUSIONINDECISIONMAKINGPROCESS

EVALUATE/FEEDBACK

NONFINANCIALREWARDS

STAFF MOTIVATION: HOW WOULD YOU MOTIVATE STAFF DIFFERENTLY?

SELFMOTIVATIONBASEDONOWNCAREERGOALSANDINTERESTS.

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MOTIVATIONBASEDONPERFORMANCEEVALUATIONRATHERTHAN
PROCESS.

LEADERSHIP: HOW WOULD YOU SEEK, ASSIGN AND STIMULATE


LEADERSHIP DIFFERENTLY?

DEFINITIONOFLEADERSHIP

InfluencestheBehaviorofOthers

PersonifiestheValuesoftheGroup

NotBasedonHighPosition

NotBasedonExercisingPower

TEMPORARYLEADERSHIPPOSITIONS

LEADERSHIPTRAININGFOREVERYONE

LEADERSHIPOPPORTUNITIESFOREVERYONE

VII. TREATMENT OF CITIZENS / CLIENTS

A. GENERAL PHILOSOPHY

I. SERVE THE CITIZEN/CUSTOMER/CLIENT

PROVIDESERVICESTHEYWANTANDNEEDASDEFINEDBYTHEM.THEY
ARETHEBOSS.

CQI:FOCUSONADDINGVALUETOTHELIVESOF
CITIZENS/CUSTOMERS/CLIENTS

Asorganizationsgrow,behaviors,attitudesandactivitiescreepintothedailybehaviorof
theorganization.Aperiodicexternalreviewisnecessary.Lookateverytask,subsysteminthe
system,particularlythosethatinvolvecustomerinteraction.Iseveryaspectofthetaskfocusedon
addingvaluetotheultimatecustomerratherthanjustservingtheneedsoftheorganization.Cana
particulartaskbeeliminatedorreduceorchangedtobemoreefficientandproductive,more
pleasant,comfortableforclients,andconvenient.

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II. CITIZEN/CLIENT AS EQUAL

RESPECT

Respecttheirdefinitionofgoalsandneeds

TRUST

SAFETY

PRIVACY

III. CITIZEN/CLIENT AS ENTREPRENEUR: EMPOWER THE INDIVIDUAL

PROMOTEINDEPENDENCE,NOTDEPENDENCE

NONEEDFOREXTERNALSUPPORT,VALIDATION

PROMOTETHEIRGOALSNOTTHOSEOFTHESERVICEORGANIZATION

IV. BUILD ENTREPRENEURIAL COMMUNITY

LINKENTREPRENEURIALINDIVIDUALS.

B. HOW DO WE TREAT THE CITIZEN / CLIENT EACH


DAY? PRACTICAL FIRST STEPS.

WOULD YOU CHANGE THE LOCATION OF YOUR OFFICES?

WOULD YOU CHANGE WHERE SERVICES ARE PROVIDED?

CUSTOMERCONVENIENCE

ITINERANTOFFICE

BLURJURISDICTIONALBOUNDARIES

OFFICEINSCHOOL/OTHERCENTRALIZEDPUBLICBUILDINGS

OFFICEWHEREPEOPLEARENOTIDENTIFIEDASRECIPIENTS

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WOULD YOU CHANGE THE TIME OF DAY SERVICES ARE PROVIDED?

CUSTOMERCONVENIENCE

OPENNIGHTS

HOUSECALLS(LEGALPROBLEMS?)

SATURDAYS

PROJECTSITES

PHONEINTERVIEWSRATHERTHANOFFICEINTERVIEWS

TRANSPORTATIONFORCLIENTSPROVIDEDBYVOLUNTEERS

WOULD YOUR OFFICES LOOK DIFFERENTLY?

INTAKELESSINSTITUTIONAL

(LITERAL)OPENDOOR

FRIENDLYRECEPTION

NOBAR/NOCOUNTER

PRIVATEWAITINGAREA

WOULD YOU CHANGE THE FORMS PEOPLE MUST FILL OUT?

DUPLICATIONOFQUESTIONSBECAUSEOFALACKOFDATASHARING?

WOULD YOU CHANGE THE WAY PEOPLE PAY BILLS?

PAYONLINE

PAYINONEOFFICE,NOTHAVETOGOSOMEWHEREELSE.

WOULD YOU CHANGE HOW MANY PLACES THEY HAVE TO GO TO GET


SOMETHING DONE?

GOTODIFFERENTOFFICETOGETASTAMP?WHYNECESSARY?

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WOULD YOU CHANGE WHAT HAPPENS TO THEM ON THE PHONE?

TONEOFVOICE,ANSWERINGMACHINE.

HOW WOULD YOU INDUCE FEEDBACK?

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VIII. INTERGENCY AND INTERGOVERNMENTAL


ORGANIZATIONAL RELATIONS.
(betweenunconnectedorganizations)

IN WHAT WAYS WOULD YOU INTERACT DIFFERENTLY WITH OTHER


GOVERNMENTAL AGENCIES AND SERVICE PROVIDER ORGANIZATIONS?

NOWRONGDOOR

ACitizenWillGetHelpNoMatterWhatOfficeofthe
GovernmentTheyEnter.TheyWillBeReferredWhereNecessary.

REFERRALPROCESS

EveryEmployeeHasListeningSkills.

Don't Stereotype Citizen Before The Speak

Listen Carefully to Have a Clear Understanding of Need.

BeOpenandHonest

UnderstandOtherAgencies/Branches

Every Employee Knows Enough So That They Have an Idea


Where To Refer a Lost Customer

Agency Directory With Explanation Available

MakeaCall/CallAheadMakeSuretheotherOfficeisOpen

MakeSureTheReferralisTotheRightPlace

Followuptoseeifthepersonwasabletomakeit.

WhenReferralisTowardYou,MakeSureYouUnderstandWhy.

SHARINGEXPERTISE

INTERNSHIPCROSSTRAINING

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MATRIXMANAGEMENT(DISCUSSEDUNDERORGANIZATIONUNIT)

HELPLINE

EMAIL/WEBPAGE/LISTSERV

COLOCATATIONOFMULTIPLEAGENCIESANDNGOS

OnestopShopping

WRAPAROUND

ProfessionalsFromVariousAgencies,andProfessionsFocuson
OneCase.

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VIII. RESOURCE GENERATION AND ALLOCATION

TRADITIONAL BUDGETING TECHNIQUES.

INPUT MODEL/ OBJECT-ORIENTED BUDGETING (COMES FROM BOOKKEEPING


SYSTEM)

DEFICITORIENTATION

LOWTRUSTMODEL

FOCUSEDONFINANCIALRESOURCES

FOCUSEDONBUDGETRESOURCES

GOODFORHIERARCHY:ALLOCATIONSFROMCENTRALAUTHORITY
PASSEDDOWNTHECHAINOFCOMMAND.

DESIGNEDFORCONTROLPEOPLE,MICROMANAGEEMPLOYEE
FINANCIALBEHAVIOR

Peoplecannotbetrustedwithmoney

LINEITEM,OBJECTORIENTEDBUDGET(RULEABOUTHOWEACHLINE
WILLBESPENT).

Historycomesfrombookkeepingsystems.

Requisitionformstomakepurchases

Moneyallocatedfromacentrallocation

Rulesabouthoweachlineinthebudgetcanbespent

Rulesabouttransferbetweenlines.

PLAYGAMESTOINDUCEBEHAVIOR

Incremental

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Units fight with each other for increment.

Incrementc/tax

Incrementwcarryforward.

Induces units to be more frugil, avoid end of year spending


spree.

But too much carry forward is sign that base should be cut.

Zerobased

PERFORMANCEBUDGET,REWARDEDFORSUCCESSWITHGREATER
INCREMENT,(BUTWEAKUNITSGETWEAKER)

POSITIVE OUTCOMES / PROGRAM BUDGETING

GIVE ALLOCATION TO TEAMS / PROGRAMS

TRUST TEAMS TO ACCOMPLISH GOALS

LET TEAMS WORRY ABOUT LINE ITEMS. THEY DECIDE HOW BEST TO
SPEND MONEY.

Theycanbeinnovative,useallocatedmoneytostimulateprivateforprofitsectorand
NGOs,promotevolunteers.(eg.Payngosforeveryunemployedpersontheyfindemployment
for;policeusemoneyforsportsleague.)

TEAMS TRY TO GO OUT OF BUSINESS

THETRYTOGETTHEJOBDONE

ATTERMINATIONWOULDBEASSIGNEDNEWTEAM

SUNSETBUILTINTOTEAMCREATION

projects

programs

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BENEFIT-COST ANALYSIS OR EFFECTIVENESS COST ANALYSIS?

OTHER CONSIDERATIONS: HOW AN ASSET MODEL


CHANGES HOW YOU DEFINE AND SEEK RESOURCES TO
ACCOMPLISH APPROPRIATE PURPOSES?

DEFINEASSETSASRESOURCESRATHERTHANCHASINGEXTERNAL
FUNDING

Utilizewhatyouhaveratherthanbeingdependentonoutsiders

SEEKINTERAGENCYRESOURCESTHATREQUIRECOOPERATIONWITH
OTHERAGENCIESANDORGANIZATIONS

Interagencyprogramthatgetfundsfrommorethanonebudgetwithabonus.

GRANTS, CONTRACTS, FUNDRAISING

DONTCHASEGRANTSTHATMIGHTLEADORGANIZATIONASTRAY.

SEEKGRANTSTHATENHANCEASSETS(STRENGTHS)

ASKFORDONATIONSTOALLOWPEOPLETOPARTICIPATEINSUCCESS,NOTTOTHROW
MONEYATACRISIS

Imaginethatruralschoolchildrenarenotgoingtoschool
because:

1) parentsneedthemtoworkinthefields,

2) parentsdonotseeneedforeducation

3) schoolbooksaretooexpensive.

Anegativeapproachistotrytomakethemgotoschool.Policebegformorebudgetfor
enforcement.

Assetapproach,

Donationforendowmentforonechild/family

a) payforbooks,

b) payparentstoparticipateinschoolprogram

c) givestudentsandparentsawards

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d) identifychildwithdoner

e) endowmentmeansthatonlyhalfoftheamountisspenteachyear.

f) Putdoner/chillednameinschool

g) Payteachersmallamountforextraeffort

h) Trainteacherstodealwithsuchchildren

i) Ifparentshavespecialskills,havethemteachtheskilltoallchildren

j) Havethemcontributetotheschoolusingtheskill.

USEPOSITIVECASES,ANECDOTESTOSELLTOFUNDERS

IX. INFORMATION, PUBLIC COMMUNICATION AND PROGRAM


EVALUATION SYSTEMS

TRADITIONAL GOVERNMENT INFORMATION SYSTEM

EACHBRANCHCOLLECTSITSOWN

SHARINGLIMITED

DATABASESNOTTIEDTOOUTCOMES

DATACOLLECTEDBASEDONDEFICITMODEL

ListProblems

CollectInfoOnProblems

PositiveTerminations

INFORMATION MANAGEMENT: WOULD YOU COLLECT AND STORE


INFORMATION DIFFERENTLY?

SINGLEMANAGEMENTINFORMATIONSYSTEM

shareddatawithprivacyprotection

standardizedforms

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so client / citizens do not have to keep filling out forms.

GISinformation

Qualityoflifeindicators

NONDATAINFORMATION

managementinformationsystemspromoteanalysis,butarenot
alwaysgoodforsynthesis

quantitativedataisoftendehumanizing

negatjve-oriented information can cause problems

negative info can cause generalizations

about a type of person

about a place such as a neighborhood

needsomeinformationthatismoreholistic,human,synthetic

casestudies

bestpractices

ideaexchange

resultsmappingqualitativemeasures

PUBLIC RELATIONS: HOW WOULD YOU CHANGE THE WAY YOUR


ORGANIZATION DEALS WITH THE MEDIA?

GIVEMEDIAACCESSTOPUBLICDATA

PUTMEDIAONADVISORYBOARD

TEACHTHEVALUEOFASSETORIENTATIONTOTHEM

FEEDPOSITIVESTORIES

BRINGTHEMINTOSHOWPOSITIVEOUTCOMES

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GIVEPOSITIVEFEEDBACKTOGOODREPORTING(COMPLEMENTS,
AWARDS)

POLITICS: HOW WOULD YOU CHANGE THE WAY YOU THINK ABOUT AND
DEAL WITH POLITICAL CONSTITUENCIES?

WHOARETHEY?

DON'TUSENEGATIVESTOCRYWOLF:DON'TCONSTANTLYEMPHASIZE
THESOBSTORY

(e.g.Transportation:Theroadsaresobad.Health,"Weare
goingtoexperienceEpidemics."Groupxyzneedsmoreprograms,
money."

TELLPOLITICIANSABOUTSUCCESSSTORIESANDHOWTHEYHAPPENED.

EVALUATION: HOW WOULD YOU CHANGE THE WAY YOU EVALUATE YOUR
ORGANIZATIONS SUCCESS?

MATRIXEVALUATIONSYSTEM(WALLS)

Nonquantitative

Citizenparticipation

OUTCOMESBASEDONAGENCYPLANWITHMEASURABLEOBJECTIVES

INDIVIDUALANDCOMMUNITYSUCCESSDEFINEDFROMTHEBOTTOMUP

DOUBLECOUNTCOLLABORATIVESUCCESS

INCLUDESUBJECTIVEMEASUREMENTS

GIVEPEOPLEAFEELINGOFOWNERSHIP

CROSSIMPACTMATRIX.

E-GOVERNMENT

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X. THE NEW PUBLIC MANAGEMENT : REINVENTING


GOVERNMENT
Read,M.JaeMoonandEricW.Welch,NewPublicManagement,ManagerialAdaption
throughtheMarket,InternationalReviewofPublicAdmin.Vo.5,No.2

WHAT IS NEW PUBLIC MANAGEMENT?

DECENTRALIZATION OF POWER

CITIZENCHOICE

USEMARKETFORCES

CITIZENPARTICIPATION

ACCOUNTIBILITY

OPENNESS

CUSTOMERORIENTED

VALUE ADDED

PERFORMANCEBUDGETING

MISSIONDRIVEN

OBJECTIVEBASEDEVALUATION

Howpolicymakersshouldguide,manage,andoverseepublicbureaucraciesisaquestion
thatliesattheheartofcontemporarydebatesaboutgovernmentandpublicadministration.In
theirsearchforbettersystemsofpublicmanagement,reformershavelookedinparticularatthe
UnitedKingdom,Australia,andNewZealand.ThesecountriesareexemplarsoftheNewPublic
Management,atermusedtodescribedistinctivenewthemes,styles,andpatternsofpublic
servicemanagement.Callingforpublicmanagementtobecomeavibrantfieldofpublicpolicy,
thisvaluablebookconsolidatesrecentworkontheNewPublicManagementandprovidesabasis
forimprovingresearchandpolicydebateonmanagingpublicbureaucracies.(Moon&Welch
bookdescription)

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XI. PUBLIC CHOICE


(3hora)

http://www.magnolia.net/~leonf/sd/pubchoice.html

http://www.magnolia.net/~leonf/sd/sd.html

http://www.econlib.org/library/Enc/PublicChoiceTheory.html

THE CONTINUUM (DRAW IN CLASS)

WHO PAYS?

GRAPHIC ON WHO PAYS

HOW TO ORGANIZE

QUARTER CIRCLES CHART: ECONOMIES OF CONTIGUITY

FLOW OF FUNDS (CHART)

XII. PUBLIC/PRIVATE PARTNERSHIP


(4hora)

ReadWalls.

POWER POINT ON PPP

IMPACT OF ASSET ORIENTATION: WOULD YOU


INTERACT WITH THE BUSINESS COMMUNITY
DIFFERENTLY?

BUSINESS AS COMMUNITY RESOURCE

OVERCOMENEGATIVEATTITUDETOWARDBUSINESS

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INTERNSHIPS FOR STUDENTS

SHADOWING PROGRAM FOR STUDENTS

XIII. ECONOMIC DEVELOPMENT POLICY

INDIVIDUAL ENTREPRENEURSHIP AS AN ASSET-


BASED SOCIAL PROGRAM

PERFORMANCE MANAGEMENT

XIV. SUMMMARY: CROSS-CUTTING ISSUES

TRUST

PERSONALISSUES

ORGANIZATIONALCONSEQUENCES

OpenessAllowsforMoreEfficientDecisionMaking

TrustingEmployeesAllowsforDecisionsAtLower(Customer)
Level

SOCIETALQUESTION

DiscountRate

FutureOrientation

RESPECT

TREATINGOTHERSASEQUALS

LOOKINGFORTHEBESTINOTHERS

RESPECTINGOTHERSDREAMS

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CHOICE

NO POWER RELATIONSHIP / CONTROL

SATISFYCONTROLNEEDSINWAYSOTHERTHANEXERTINGPOWER
OVEROTHERS

INCLUSION

DONTTRYTOEXCLUDEPEOPLEFORTHESAKEOFONESOWN
EGO

PERFORMANCE V. PROCESS

LESSCONCERNABOUTTHESHAPEOFTHETABLE.

POSITIVE OUTCOMES V. PROBLEM SOLVING

ENERGETICALLYPURSUEDREAMS

PROMOTE INDEPENDENCE, NOT DEPENDENCE

HELPINGPEOPLEDOESNOTMEANSOLVINGTHEIRPROBLEMS

NOTABOUTPROVIDINGSERVICES

EMPOWERINGPEOPLEINTHEPURSUITOFTHEIROWNDREAMS

HelpThemtoOvercomeHurdles

GiveThemTools

NONFINANCIAL

ASSETS/RESOURCESAREMUCHMORETHANJUSTFINANCIAL

HOLISTIC / NON-LINEAR, SYSTEMS APPROACH

PEOPLEAREMULTIFACETED

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THEIRCONCERNSANDDESIRESARECOMPLICATED.THEYDONOT
FITINTONEATCATEGORIES

TheCategorizationImperative

SYSTEMSARECOMPLEX,FEEDBACK

SYNTHESIS SKILLS

NOTJUSTANALYSIS

BECAUSESYSTEMSARECOMPLEX

GENERALISTS, WE NEED TO TRAIN

OVEREMPHASISONSPECIALIZATION

SpecialistsHaveTroubleThinkingHolistically

SpecialistsAreNotGivenSynthesizingSkills

GRADUATESCHOOLSDON'TTEACHHOLISM,SYNTHESIS

PeopleAreToldThatToSurviveProfessionallyTheyMustHave
aNiche.

AVOID TECHNOCRACY

TECHNOCRACYINVOLVESBOTHOVERRELIANCEONSPECIALISTSAND
DISRESPECTFORTHEINPUTOFTHEGENERALPUBLIC/CUSTOMER

TECHNOCRATSHIDEINTHELAYERSOFTHEBUREAUCRACYAND
UNCONSCIOUSLYDISCOURAGECOMMUNICATIONBETWEENCITIZENSAND
POLICYMAKERS.

CREATIVITY V. SIMPLE PRODUCTION

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PUBLIC MANAGEMENT READING

I.Introduction

Read:

LaurenceE.Lynn,Jr.andSydneyStein,Jr."PublicManagement,"fromTheHandbook
ofPublicAdministration.SagePublications.

II.ConsequencesofaDeficit/ProblemModelforPublicManagement

Read:

http://outreach.msu.edu/CapableCommunities/

readtheentirewebsitewithallofitsparts

III.AnAssetOrientationtoPublicManagement

Read:

Roger E. Hamlin and Florin Sabastian Duma, "Social Capital: One Asset for Community and
EconomicDevelopmentinEasternEurope."Studia.XLVIIpp.117130.

IV.AgencyPlanningandEvaluation

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Read:

Lyons,ThomasandRogerE.Hamlin.CreatinganEconomicDevelopmentActionPlan:
AGuideforDevelopmentProfessionals.RevisedandUpdatedEdition.NewYork:Praeger,
2001.Ch.4.Pp.98103.

Cohen,StevenandWilliamEimicke.TheEffectivePublicManager.

Ch.10(3rded.)orCh9(2nded.)."ShapingOrganizationalGoalsandStrategies."

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V.OrganizationalStructure

Read:

Cohen,StevenandWilliamEimicke.TheEffectivePublicManager.

Ch.5."StructuringSystems,Tasks,andResponsibilities."

VI.PersonnelManagementandMotivation

Read:

Cohen,StevenandWilliamEimicke.TheEffectivePublicManager.

Ch.3."HowtoFindandKeepGoodPeople."

Cohen,StevenandWilliamEimicke.TheEffectivePublicManager.

Ch.4."DevelopingEffectiveWorkingRelationships."

VII.TreatmentofCitizen/Clients

Cohen,StevenandWilliamEimicke.TheEffectivePublicManager.

Ch.11(3rded)orCh.10(2nded.)"DealingwiththeMedia,LegislativeBodiesand
InterestGroups."

VIII.IntergencyandIntergovernmentalOrganizationalRelations.

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IX.ResourceGenerationandAllocation

Read:

Cohen,StevenandWilliamEimicke.TheEffectivePublicManager.

Ch.9(3rded.)orCh.8(2nded.)."MasteringtheBudgetaryProcess."

Cohen,StevenandWilliamEimicke.TheEffectivePublicManager.

Ch.7(3rded.only)."TheArtandCraftofContracting."

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X.Information,PublicCommunicationandProgramEvaluationSystems

Cohen,StevenandWilliamEimicke.TheEffectivePublicManager.

Ch.8(3rded.)orCh.7(2nded.)."GatheringOrganizingandUsingInformation."

Lyons,ThomasandRogerHamlin.CreatinganEconomicDevelopmentAction.Ch.5.
Evaluation.

XI.TheNewPublicManagementReinventingGovernment

Read,

M.JaeMoonandEricW.Welch,NewPublicManagement,ManagerialAdaption
throughtheMarket,InternationalReviewofPublicAdmin.Vol.5,No.2

XII.PublicChoice

Read

http://www.magnolia.net/~leonf/sd/pubchoice.html

http://www.magnolia.net/~leonf/sd/sd.html

http://www.econlib.org/library/Enc/PublicChoiceTheory.html

XIII.Public/privatePartnership

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Read

Hamlin,RogerandThomasLyons,EconomywithoutWalls.Introduction,Ch.14

Optionalreading

Hamlin,RogerandThomasLyons,FinancingSmallBusinessinAmerica.NewYork:
Praeger,2003.Introduction,Ch.13

XIV.EconomicDevelopmentPolicy

Hamlin,RogerandThomasLyons,CreatinganEconomicDevelopmentActionPlan.
Introduction,Ch.1,Ch.2,andCh.3.

Hamlin,RogerandThomasLyonsFinancingSmallBusinessinAmerica.Ch.45

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