C) Application shaped by the judiciary such that the Federal powers are greater than the purely enumerated powers in the Constitution. (137 – Necessary & Proper Clause)

è Why was this put in here. He doesn’t contrast it to the first section. It isn’t a Federal system. He doesn’t even mention that it is a Confederation. He doesn’t mention any Fundamental Settlement in the section.

A) Instead of a single Fundamental Settlement the European Union is evolving into a more complex union

III. American Federal System

1) Three Categories of Governments

A) Unitary – National Government Only (139)

a) Solidarity of national goals

b) Clear accountability (no passing the buck to another level of govt)

c) No duplication of services at different levels of government

B) Federal – Central & Peripheral Governments (140)

a) More diversity

b) Issues must be debated

c) More local control – distant areas are not ignored

d) Diffusion of influence of majority ethnic or ideological groups

C) Confederations (140)

a) Inability to enforce national goals

b) No strong central voice for international relations

IV. Structure of Intergovernmental Relations (141)

1) Which part of government will do what

2) Marble Cake Metaphor – there is no clear cut division line and each level of government may have their hand in any activity

V. Dynamic Federalism (143 & 160) – The relationship between the central and peripheral governments is flexible and changes over time

1) Dual Federalism

A) Pre-New Deal 1800’s to 1933

B) State & Federal Separation

C) Conflict Phase – Layer cake Federalism

2) Cooperative Federalism

A) New Deal 1930’s – 1950’s

B) Jointly managed & Jointly funded

C) Early - Cooperative Phase - Marble Cake federalism

D) Middle - Concentrated Phase - Focused federalism

E) Late – Creative Phase -

3) Creative Federalism

A) Great Society 1960’s

B) Categorical grants to states & direct grants to local governments which bypassed State Governments

C) Head Start & War on Poverty

D) Competitive Phase – Picket fence (fragmented federalism)

4) New Federalism

A) Nixon 1970’s

B) Decentralized Federal control by creating Federal Areas of Control to bring it closer to the States being served

C) States were given aggregate grants (a single grant covering many problem areas) which gave them some flexibility in application

D) Revenue sharing where Federal Govt. gave back surplus money to the states

E) Calculative Phase – Confrontational Federalism

5) New New Federalism

A) Reagan – 1980’s

B) Cut funds going to States

C) Put social programs back under State control and funding

D) Contractive Phase

6) Current Federalism

A) 1990’s – Present

B) Coercive Phase – Kaleidoscopic Federalism

VI. Intergovernmental Management (149)

1) Key Issues (149)

A) How the Federal government decides what to do and how they implement the solution

B) How to coordinate the services of the different levels of government

C) Which level is accountable for what

D) Developing the size and competency of government agencies

E) How to work together without higher levels micromanaging lower levels

2) Picket Fence Federalism (150)

A) General Purpose Officials (mayors, governors, president) are the horizontal bars and the program specialists are the pickets.

3) Councils of Government (COG’s) (150)

A) Regional planning and advising group with no independent funding or enforcement powers

B) Contract to local governments to create multi-area solutions (waste disposal)

4) Mandate Mania

A) Categories

a) Direct Orders with punishments for disobedience

b) Aid with strings attached

c) Programmatic – detailed instructions on implementation

d) Procedural – aid to local govt projects with the string that they must now follow federal regulations but otherwise local govt has control implementation

e) Constraint – what the peripheral govts can’t do

f) Cross-cutting Mandates – Rule that affects many programs

g) Unfunded Mandates – Addressed by 1995 Unfunded Mandate Reform Act

VII. Fiscal Federalism

1) Theory of Fiscal Federalism (156)

A) Granting or withholding funds to control subservient government levels

B) Three problems to address

a) Redistribution of collective funds

b) Maintaining high employment and keeping prices stable and high

c) Allocating resources

C) Federal system works well because it has a variety of levels with which to attack problems. High level for bringing in tax income and making changes that affect entire nation. Local level for allocating resources to the exact people that need them

2) Grant Programs (158)

A) Grant in Aid – Money with strings & detailed implementation instructions

B) Categorical – Grants that can only be used for a specific project

a) Project basis – competition for funds

b) Formula – distributed by a standardized policy

c) Head start, Food Stamp, Medicaid

C) Block – Grants that can be used on general projects where subsidiary govts have implementation control

a) Law enforcement, community improvement

3) Dynamic Relationships b/t central & subsidiary govts

VIII. Devolution Revolution (160)

1) Public Choice Solution

A) Put implementation of government at lowest possible level so that people who are affected by the policies have more control

2) Race to the Bottom

A) When one subsidiary government raises benefits then citizens who need those benefits move to that area and place an undue burden on that level of government

B) States & local governments respond by cutting benefits to their own citizens so that they will not attract more customers

Chapter 5 Honor, Ethics, & Accountability

IX. Honor

è Honor is behavior. It is the external reflection of the integrity within. It is necessary for honor to be observable in a country or an individual so that others will be willing to extend trust and give over power. The only other option is to use force.

è Decision making is affected by many different guidelines of ethical behavior and the hierarchy or ranking of which guideline will be followed can be the difference between being honored for being a whistle blower or serving prison time for “just following orders”. Any decision must be filtered through the code of ethics for your profession (e.g. do no harm), the Standards of Conduct of your organization, the expectations of society via regime obligations and Codes of Honor and finally or firstly through your own Personal ethical code.

1) Types

A) National Honor – Behavior of a nation

B) Professional Honor – Reputation based on what is observed by others

C) Ex-Oficio – Honorable treatment because of position and not behavior

D) Personal (175) – knowing what is right and

2) Honorable Behavior

A) Contextual

a) Set by the culture – lying to save face may be honorable in one society but detestable in another

b) Socio-economic – Behavior towards other classes and expectations of honorable behavior are different for different classes within a culture

c) Set by Organization – Different expectations of honorable behavior based on level of public trust

3) Guidelines for ethical behavior

A) Regime (175) – Noblesse oblige – Behavior Expectations for those in positions of power to those under their protection – Duty to Constitution

B) Personal (175) –

C) Standards of Conduct – Organizational codes of a particular organization

D) Common Law (190) – externally enforced code of conduct applicable to everyone in a society

E) Code of Ethics (191) – Behavior expectations of an entire profession – not legally enforceable

F) Codes of Honor (189) – Societal expectations of how people should respond to threat – not legally enforceable

X. Corruption

è Corruption in the government is far worse than that of any private business because the government holds the gun and is the final arbiter of what will be done in a society. A business can become corrupt, fail, and harm many people but if a government becomes corrupt then the entire society changes or fails. Lying can seem to be the only answer in cases where national security is at risk. In cases where the cost in lives exceeds the loss of trust. However, it seems to be a slippery slope where the bar is lowered to the point where it is not lives at stake but power. Government only has two ways to enforce its will: force or respect.

1) Organizational Corruption

A) For the benefit of society – CIA, FBI, Ambassadors to foreign countries

B) To show loyalty to people in command of an organization

C) Nuremburg Defense (185) – just following orders

2) Personal Corruption

A) Lying to protect oneself

B) Bribery – Using ones position of power to gain power unlawfully

C) Higher Law – Following ones personal moral code in opposition to the societal law

XI. Oversight

è There are set hearings which are mandated by rule or law such as the annual agency budget hearings or Senate appointee confirmation hearings but any legislator can call for an investigation which if it turns up something can be turned over to a committee to call hearings on the subject. In addition, casework is performed by legislators on behalf of their constituents.

Chapter Six Organizational Theory

XII. Origins of Public Management (210)

è Large Armies cannot exist without an administration handling pay, food, taxes, supplies etc. The logical choice for an administrative officer was to take an experienced soldier and put him in charge. And thus, even in modern times, the language of war and administration share terms – loophole, line officer, rear echelon

1) Rome’s Administration

A) Government not owned by ruler

B) Funds held separately from ruler

C) Centralized hierarchy with regional offices at lower levels

D) Organizational departments – taxation, military affairs, judicial, etc.

XIII. Organization Theory

1) Classical Organizational Theory (221)

A) Beginning of formal organizational theory

B) 1700’s Industrial Revolution

C) Formal hierarchy with all decisions coming from above

D) People are cogs who are moved in or out of a position as needed

E) Tenets (222)

a) Organizations exist to produce something and meet an economic goal

b) There is a “best” way to structure and organization and it can be discovered using quantitative methods

c) Specialization and division of labor are most efficient methods

d) There are rational economic principles which explain people and organizational behavior (i.e. it is a science and not an art)

F) 1776 Wealth of Nations by Adam Smith

2) Principle Method : Military Management Parables

A) (Wikipedia - http://en.wikipedia.org/wiki/Principles_of_War )

B) Objective – Direct every military operation toward a clearly defined, decisive and attainable objective.

a) The ultimate military purpose of war is the destruction of the enemy's ability to fight and will to fight.

C) Offensive – Seize, retain, and exploit the initiative.

a) Offensive action is the most effective and decisive way to attain a clearly defined common objective. Offensive operations are the means by which a military force seizes and holds the initiative while maintaining freedom of action and achieving decisive results. This is fundamentally true across all levels of war.

D) Mass – Mass the effects of overwhelming combat power at the decisive place and time.

a) Synchronizing all the elements of combat power where they will have decisive effect on an enemy force in a short period of time is to achieve mass. Massing effects, rather than concentrating forces, can enable numerically inferior forces to achieve decisive results, while limiting exposure to enemy fire.

E) Economy of Force – Employ all combat power available in the most effective way possible; allocate minimum essential combat power to secondary efforts.

a) Economy of force is the judicious employment and distribution of forces. No part of the force should ever be left without purpose. The allocation of available combat power to such tasks as limited attacks, defense, delays, deception, or even retrograde operations is measured in order to achieve mass elsewhere at the decisive point and time on the battlefield. ...

F) Maneuver – Place the enemy in a position of disadvantage

a) through the flexible application of combat power. Maneuver is the movement of forces in relation to the enemy to gain positional advantage. Effective maneuver keeps the enemy off balance and protects the force. It is used to exploit successes, to preserve freedom of action, and to reduce vulnerability. It continually poses new problems for the enemy by rendering his actions ineffective, eventually leading to defeat. ...

G) Unity of Command – For every objective, seek unity of command and unity of effort.

a) At all levels of war, employment of military forces in a manner that masses combat power toward a common objective requires unity of command and unity of effort. Unity of command means that all the forces are under one responsible commander. It requires a single commander with the requisite authority to direct all forces in pursuit of a unified purpose.

H) Security – Never permit the enemy to acquire unexpected advantage.

a) Security enhances freedom of action by reducing vulnerability to hostile acts, influence, or surprise. Security results from the measures taken by a commander to protect his forces. Knowledge and understanding of enemy strategy, tactics, doctrine, and staff planning improve the detailed planning of adequate security measures.

I) Surprise – Strike the enemy at a time or place or in a manner for which he is unprepared.

a) Surprise can decisively shift the balance of combat power. By seeking surprise, forces can achieve success well out of proportion to the effort expended. Surprise can be in tempo, size of force, direction or location of main effort, and timing. Deception can aid the probability of achieving surprise. ...

J) Simplicity & Flexibility – Prepare clear, uncomplicated plans and concise orders to ensure thorough understanding.

a) Everything in war is very simple, but the simple thing is difficult. To the uninitiated, military operations are not difficult. Simplicity contributes to successful operations. Simple plans and clear, concise orders minimize misunderstanding and confusion. Other factors being equal, parsimony is to be preferred.

3) Scientific Management (226)

A) Create a staff or department for the purpose of designing methods to best utilize the workers

B) Frederick Taylor

a) Time and motion studies

b) 1910

C) Tenets

a) Using scientific, quantitative methods to measure output

b) Selection and development of workers for positions

c) Worker cooperation in application of new methods

d) Division of labor and formal management/labor relation rules

4) POSDCORB (232)

A) Earlier methods focused on workers this one turned to management

B) Gulick 1937

C) Seven Major Functions of management

a) Planning : What to do and how to do it

b) Organizing : structure of hierarchy and subdivisions

c) Staffing : hiring and training

d) Directing : day to day decisions and management

e) Coordinating : bringing all the parts of the job together

f) Reporting : Record keeping & reporting to superiors

g) Budgeting : planning, accounting, control

5) Max Weber

A) Synthesized the core characteristics of a bureaucracy from the study of existing bureaucracies. These “ideal” characteristics may not exist in a given bureaucracy.

B) Bureaucracy is individuals freely associating on a permanent and fulltime basis in a hierarchical organization with clearly written job specifications who are assigned their current and future positions based on merit and the judgment of their superiors. The bureaucrats do not specifically own any part of the business.

C) 1922

6) Neo-Classical Organization Theory (236)

A) Movement away from mechanistic treatment of personnel

B) Belief that people are not just flesh machines but have goals and beliefs not necessarily shared by the organization as a whole and that must be taken into consideration when making plans

C) Sociology becomes influential

D) Post WWII

E) General name for all theories that are not Classical

7) Modern Structural Organization Theory (238)

A) Tenets (239)

a) Organizational purpose is to meet a common goal using the best method possible

b) There is a “best” way to structure and organization based on its outcome goals

c) Specialization and division of labor are most efficient methods

d) Structural flaws create problems in an organization

8) Systems Theory (240)

A) Viewing an organization as a whole where any change to one part will affect the entirety of the system

B) Inputs, Process, Outputs, and Feedback inside a particular environment

C) Measurable outputs are used to analyze cause and effect to find optimal method

9) Learning Organization (242)

A) Fifth Discipline by Peter Senge

B) Builds on work of Maslow

C) Five Disciplines necessary

a) Personal Mastery – approach to life and work

b) Mental Models – Mental Schemas

c) Shared Vision

d) Team Learning

e) Systems Thinking – Decisions based on entirety of organizational system

XIV. Future of Bureaucracies

1) Postbureaucratic organizations (280)

A) A prediction that in the future hierarchies will be replaced by organic structures and ad-hoc groups that form and then dissolve to meet different objectives.

B) Waldo, Bennis, Sayles, Berkley, Thompson, Toffler (1970) Futureshock

2) Post Modernism (282)

A) Managing rapid change

B) Horizontal communications

C) Self-managing work teams

D) Bergquist’s list of characteristics

a) Constructivism vs Objectivism - postmodernism holds that the truth is relative. It is formed not discovered.

b) Language as reality – Language is the tool used to form reality

c) Globalization and segmentalism – The entire world is connected but community is lacking

d) Fragmented and inconsistent images – width of knowledge not depth

E) Perception is important

3) Feminist Perspective (286)

A) Predictions based on increasing role of women in organizations

a) Organizations will have to change so that women’s contributions are appreciated

> Hierarchies will be less rigid

> More cooperation, less internal competition, less aggressiveness

> Less striving for personal power

b) Or, women will become more like men to thrive in a masculine environment

Chapter Seven Organizational Behavior

XV. Organizational Behavior

è Organizations had improved their technology, created new scientific methods of measuring processes, and now the focus turns to improving the worker. The belief being that worker satisfaction could improve output.

XVI. Group Dynamics (subgroup of OB) (257)

è Modern organizations are founded on the principle of specialization where each worker does a specific task related to the finished whole. However, they are grouped according to function inside organizations. Within that group there exist norms which although similar to the organization norm are unique to that group.

1) Primary Groups - Small group that has had time to form relationships (258)

A) Formal – Assigned by organization to perform a task

a) Command - standing groups

b) Task Groups - ad hoc groups formed to address a temporary issue

B) Informal – Socialization groups which form relationships that affect work dynamics

2) Group Cohesiveness Variables

A) Management Demands

B) Size of Group

C) Interpersonal Attractiveness

D) Status of Group

E) Dependence on each other

F) Competition from other groups

G) Agreement on goals

XVII. Organization Development – Planned Organizational Change (260)

è Plan usually developed by behavioral scientists is met with greater resistance if implemented too quickly or creates too much change. Essential to convince upper management first, most of the time, although occasionally change can begin at middle management.

1) Common OD Strategies (261)

A) Organizational diagnosis

B) Process consultation

C) Team building

D) Action research

E) Data feedback

F) Job enlargement – number of tasks similar to existing job

G) Job enrichment - enlarge scope of tasks

H) Conflict management

2) Action Research Model (262)

A) Originated with T-Groups

a) Focus on individual growth and personal goals and communicating honestly about facts and feelings

b) Started as an after work group

c) 1946

B) Involves an external interventionist helping group to identify and take ownership of needed improvement strategies

a) Gather quantitative data through written questionnaires or interviews

b) Returning the compiled data to the people who were questioned

c) Discussing results among group members to make sure the proper problem was identified and to promote ownership of the process

d) Interventionist and group members develop a solution

e) Ongoing process that repeats as often as necessary. Feedback is gathered during implementation and plans modified as necessary

XVIII. Bureaucratic Behavior

1) Behavior Variables (265)

A) Individual Personality

B) Organizational Structure

C) Peer Group Pressure

D) Shared group norms

E) Social and technical aspects of work tasks

F) Internal and external cultures

2) Advantages (267)

A) Order

B) Predictability

C) Professionalism

D) Consistency

E) Impersonality

a) Allows people to make decisions that will hurt an individual

b) Evenhanded rule application

c) Removes emotional decisions

3) Disadvantages (266)

A) Blind Conformance – Adherence to rules as an ends rather than as a means

B) Worth of ideas based on rank and not merit

C) Bloat – departments retained for political and not necessary reasons

XIX. Motivation

1) Hawthorne Effect

A) 1920

B) Motivation Variables

a) Attention from superiors

b) Control over their work

c) Management listening

d) Group norms

e) Direct feedback about performance

f) Being treated as an individual

2) Needs Hierarchy

A) Abraham Maslow

B) 1943

C) Needs

a) Physiological needs

b) Safety Needs

c) Love & affiliation

d) Esteem

e) Self-actualization

3) Motivation-Hygiene Theory (276)

A) Herzberg, mausner, & Snyderman (1959)

B) Found that job satisfaction & job dissatisfaction were separate variables and not opposites

a) Job Satisfaction (motivation) dependent on

> Achievement

> Recognition

> Type of job

> Responsibility

> Advancement

b) Job Dissatisfaction (Hygiene)

> Company policy and administration

> Supervision

> Salary

> Interpersonal relations

> Working Conditions

C) Offshoot of Maslow’s Hierarchy

D) Herzberg believe that if management focuses on hygiene variables and ignores motivation variables then no true change occurs and therefore the problem will resurface which will require the application of more hygiene variables.

4) Theory X & Theory Y (278)

A) Theory X assumes that workers must be forced by management to do their work and Theory Y assumes that workers want to do good work but are hindered by their environment.

Chapter Eight Managerialism & Performance Management

XX. Managerialism (300)

è According to Sharfritz and Russell (2005), managerialism is a return to classical organizational theory with a focus on hierarchical commands and scientific management. Scientific management never goes away as all business seek a measurement tool that will allow them to find the best way to do something. But by their own examples managerialism is not a return to hierarchical command systems because empowerment of teams is a move away from hierarchy.

1) Focus on the customer and not the policy from above

2) Hierarchical structure where management sets direction and workers follow

3) Scientific Management: Focus on search for “best management technique”

4) 1980’s

5) Management is expected to find creative solutions to problems and not simply carry out the demands of Congress.

XXI. Methodology of Managerialism (302)

1) Reengineering (303)

A) Rejects incrementalism and re-evaluates not how something can be done better but if it should be done at all or if something entirely different should be done

B) Methodology of Reengineering (304)

a) Process Mapping – flow chart of current processes

b) Customer assessments – Evaluation of customer needs

c) Process Visioning – Thinking about how process could be implemented to reach customer needs with current technology

C) Barriers (305)

a) Bureaucratic turf wars

b) Employee resistance to change

c) Lack of incentives

d) Skepticism

2) Empowerment – Formal authority to do something (305)

A) Management – One person cannot do everything and if a manager tries to keep all control to themselves then workers perform less optimally and manager loses power. Giving away power will result in an increase in power.

B) Self Directed Work Teams (306)

a) Giving teams power to self discipline and authority to manage their work along with responsibility to produce a particular output

b) “highly trained group of employees, from 6 to 18, on average, fully responsible for turning out a well-defined segment of finished work” (307)

> Each member has multiple roles

> Self disciplining and self managing

> Reward system that rewards for team behavior

> Frees up administration to plan and managers to coach employees and focus on customer needs

C) Facets of Empowerment (308)

a) Information about where the organization is, where it is going, and how healthy it is must be available to every level so that teams can make informed decisions

b) Rewards must be based on outcomes

c) Power to make decisions must be at level where decisions are made

3) Entrepreneurialism

A) Competitive Public Administration – Public agencies must compete with private business to provide the cheapest product – Competition

B) New Public Management (311)

a) Private sector business techniques

b) Budget trimming

c) decentralization

d) Rhetorical emphasis on quality

e) Customer focus

XXII. Performance Management (313)

1) Leadership setting organization wide overarching objectives, measuring their effect, and using that measurement and customer feedback to set new strategic plans

2) Management Control (315) – the component of performance management concerned with linking the entire system together by comparison of actual result to intended result to keep equilibrium between goals of individuals and goals of organization.

3) Barriers to public productivity improvement

A) Managers are restricted in their ability to reorganize workers or reclassify work

B) No reward for improvement as budget is based on what is spent and not what is saved. Savings go back into the general fund

XXIII. Total Quality Management

1) Facets of Total Quality Management (320)

A) Constancy of purpose – focus on the longterm

B) Must become a change in life style not a tool

C) Prevention of defects not detection of defects

D) Focus on quality not price or quantity

E) Constant improvement

F) Institute training, encourage education & self improvement, encourage leadership not supervision

G) Create a safe environment for fostering new ideas

2) Barriers to public Total Quality Management –

A) Emphasis on short-term as politicians come and go and due to the short attention span of the public

Chapter Nine Strategic Management in the Public Sector

XXIV. Strategic Management (333)

1) Strategy – An organization’s decisions that are linked to a long term objective

A) Truman Doctrine – Containment of Communism

B) Was never formally documented but many decisions were based on the strategy

a) 1947 – Financial aid to Greece

b) 1947 – Military show of support to Turkey

c) 1947 – Marshal Plan to rebuild Europe

d) 1950 – Korean War fighting against Communism

e) 1960 – Vietnam

f) 1956 – Federal Aid to Highway Act – Built interstates

g) 1958 – NASA

h) 1958 – National Defense Education Act – student loans and grants

C) A strategy can exist without using Strategic Planning but not vice-versa

2) Strategic Management – Linking day to day management decisions to a long term objective

3) Success Variables (351)

A) Being out of the political eye

B) Independent funding

C) Small size

D) Measurable Outputs

XXV. Strategic Planning – A formal method of determining a company’s strategy

1) Vision Statement – Future objectives

A) Focus on achievement not function of duties under law

B) Tactical – actions that move the organization closer to achieving the objective

C) Strategic – Obtainment of objective

D) Management by Objective MBO (336) – Peter Drucker 1954

a) Must be achievable by organization

b) Specific description of future status

c) Time Limited

d) Measurable

2) Planning Horizon – Date for objectives to be completed

A) Temporary nature of politicians makes them unwilling to focus on long term planning which may not bear fruit while they are in office.

B) However, GPRA (1993) requires federal agencies to use strategic management (340)

a) Mission Statement

b) Long Term Goals for all major functions and operations

c) Strategy to achieve goals and objectives

d) Annual goals linked to long term

e) Identification of external threats to strategic victory

f) Descriptions of how “evaluations are used to establish or revise goals”

3) State of the Union – Use SWOT method to analyze current conditions of organization (340)

A) Allows the organization to make sure that their capabilities (strengths & weaknesses) are a match to their environment

B) S – Strengths

C) W – Weaknesses

D) O – Opportunities

E) T - Threats

4) Environment (342) – Assess current and future external threats

A) Demand Forecasting – estimating the amount of goods or services customers will require in the future

B) Future Analysis – Using historical and current patterns as a way of forecasting future events

5) Select Strategy

6) Implement Strategic Management

XXVI. Hierarchy of Strategy (351)

1) Grand Strategic Level Big Idea Congress & President

2) Strategic Level How to Do It Administration Heads

3) Operational Level Detail Planning Administrative Dept.

4) Tactical Level Implementation Regional Offices

XXVII. Strategic Management Tools (351)

è Benchmarking allows a clear view of a company’s weaknesses because even though a company may feel comfortable with where they are performing this allows them to see where the competition exists

1) Best Practices – Copy the competition

2) Benchmark – Compare mission critical processes with industry best practices or other organization

3) Management Scorecard (352)

A) Uses very basic tally method to quickly compare two or more departments

a) Focuses attention on what top management considers important

b) Motivate with faux competition where no real competition exists

B) Presidents Management Agenda of 2002 requires

a) Strategic management of human capital

b) Competitive outsourcing

c) Improving financial performance

d) Expanded electronic government

e) Budget and performance integration

Book Summary

According to Shafritz and Russell (2005), organizational theory is “A set of propositions that seeks to explain or predict how groups and individuals behave in differing organizational arrangements” (pg 247). The mother of modern organizational theory was the military in ancient times; but it is commonly agreed upon that formal organizational theory, classical organizational theory, began with the Industrial Revolution. Classical theory is the trunk of the tree but in modern times the rigidity and top management dictatorship of the trunk has created neo-classical branches of organizational theory that incorporate sociology. Each branch improves upon but does not replace classical theory.

Classical organizational theory began with the military where large armies cannot be maintained without an administration handling pay, food, taxes, and supplies. The logical choice for an administrative officer to handle these affairs was to take an experienced soldier and put him in charge. And thus, even in modern times, the language of war and administration share terms such as loophole, line officer, and rear echelon. This method of organization was codified in the early part of the Industrial Revolution in the form of parables or principles of management. In time, people began to look for more efficient ways for workers to work. This scientific management using the time and motion studies promoted by Frederick Taylor utilized quantitative measures to study output of workers to create new more efficient techniques, management of workers to promote worker buy-in and to select and develop workers for specific positions, and to develop formal rules of interaction and separation between management and labor. In 1937, Gulick turned this scientific bent onto management and developed seven tenets of managerial functions under the acronym POSDCORB:

Planning : What to do and how to do it

Organizing : structure of hierarchy and subdivisions

Staffing : hiring and training

Directing : day to day decisions and management

Coordinating : bringing all the parts of the job together

Reporting : Record keeping & reporting to superiors

Budgeting : planning, accounting, control

Max Weber (1922) further defined classical theory by synthesizing the core characteristics of a bureaucracy from the study of existing bureaucracies. He said that bureaucracy is individuals, who do not specifically own any part of the business, freely associating on a permanent and fulltime basis in a hierarchical organization with clearly written job specifications who are assigned their current and future positions based on merit and the judgment of their superiors.

The neo-classical branches developed after WWII and represented a movement away from the mechanistic treatment of workers. Where earlier they were considered replaceable flesh cogs, new recognition of the psychology of groups and individuals led to organizational methods which take into account that people have goals and beliefs not necessarily shared by the organization as a whole and that must be taken into consideration when making plans. The new focus of organizational theory related to structural changes (Systems Theory) and personnel development (Learning Organizations).

Systems theory views an organization as a whole organism where a change to any part affects the whole. Broken into parts it consists of inputs, internal processes, outputs, feedback and the environment in which the organization exists. It still utilizes the methods developed earlier by classical theory but puts more focus on measuring outputs that are used to analyze cause and effect to find optimal methods. Systems theory was used by James Anderson in his 1975 book, Public Policy-Making, to describe how the government worked. The inputs are the demands for a solution by constituents, judicial system, other administrative departments, or policy formulated by Congress. The black box is the policy implementation processes by the government agency. The output is some action, distribution, regulation, or redistribution that impacts society and creates new demands that are feedback to the system.

Learning organizations such as those formulated by Peter Senge in his book, Fifth Discipline, focus more on developing traits in employees that will improve performance. Senge’s work incorporates many of the same ideas as the psychologist Abraham Maslow in his Hierarchy of Needs. According to www.Fieldbook.com learning organizations focus on teaching people how to recognize and act on their personal goals and to recognize the mental filters they use and mental short-cuts that can cause them to not see things as they truly are. In addition, it focuses on developing a shared vision among the members of an organization so they are moving in the same direction and an understanding of how system’s theory works.

Administrative doctrine is the actions of an organization towards it employees and clients that is a reflection of its values. Values are set by the organizational theory at the base of the organization. Under no pressure or competition administrative doctrine can be as simple as follow the leader’s instructions, do your work, and collect your paycheck. Under competition businesses must be flexible enough and with enough power and responsibility at all levels so that the system can adapt to new opportunities. If they do not adapt then organizations are surpassed by competition. One important fact is that change is eternal. As a new theory is developed and adopted by an organization, that company thrives, other companies follow suit, everyone is then equal (except for those that do not adapt and die), and all advantage is gone until the next theory is developed and implemented. The process repeats as long as competition exists.

Chapter 7

The study of organizational behavior and the modification of organizational behavior by organizational developers are essential because optimal performance of employees requires more than just a paycheck on Friday. An organization is a social environment and it is necessary to address those social factors as well as the already described process and structure issues. Items that are addressed by organizational development are group dynamics, individual motivation, and bureaucratic behavior.

The primary unit of the organization is the individual employee. One of the earliest (1920’s) studies of motivation resulted in the phenomena called the Hawthorne Effect. While studying the effects of modifying the workplace environment the experimenters discovered that it was the attention paid to the employees and not what was being done that improved performance. They found the following variables to have a strong impact on employee motivation:

· Attention from superiors

· Control over their work

· Having management listen to them

· Group norms

· Direct feedback about performance

· Being treated as an individual

Abraham Maslow’s Needs Hierarchy (1943) detailed the hierarchically ranked needs that must be fulfilled beginning with the bottom rank before a person can reach their full potential. Later research by Herzberg, Mausner, & Snyderman (1959) made a critical discovery that job satisfaction is not simply the opposite of job dissatisfaction. The variables of each measurement are different and more importantly Herzberg believe that if management focuses on fixing job dissatisfaction variables (hygiene variables) and ignores the job satisfaction variables (motivation variables) then no true change occurs and therefore the problem will resurface which will require the application of more hygiene variables.

Table 1.

Motivation

Job Satisfaction

Achievement

Recognition

Type of Job

Responsibility

Advancement

Hygiene

Job Dissatisfaction

Policy and Administration

Supervision

Salary

Interpersonal Relations

Working Conditions

Modern organizations are founded on the principle of specialization where each worker does a specific task related to the finished whole. However, they are grouped according to function inside organizations. Within that group there exist norms which although similar to the organization norm are unique to that group. Primary groups are small groups of people who have had time to form relationships. There are two types of primary groups: Formal and informal. Formal groups are formed by an organization to perform a task. They can either be command groups which are long term groups or task groups which form to address a temporary issue. Informal groups are socialization groups which are of concern to management because they develop relationships between workers which affect work dynamics.

It is important in an organization to not only motivate the individual employee but also to create processes that lead to better teams. Organizational development is planned change. It is important that the change is implemented slowly and equally important that the employees are part of the change to make it lasting. One method is the action research model of organizational change which is often initiated by an external interventionist who works with existing teams to identify and take ownership of needed improvement strategies. First, quantitative data is gathered using written questionnaires or interviews of team members. The compiled data is fed back to the team and they discuss the results to confirm that the proper problem was identified and to promote ownership of the solution among the group members. The group then develops a solution. During implementation feedback is gathered and the solution is modified as necessary. The entire process is repeated as many times as necessary.

Bureaucracy instills its own mark on behavior. The advantages of bureaucratic limits on behavior is that it creates predictability, order, and consistency where customers know what to expect, it provides a shield of impersonality for employees when they have to make difficult decisions, and professionalism is fostered instead of promotions based on popularity. However, too much blind conformance can lead to rules being the ends and not the means towards meeting organizational goals. And, the rigid hierarchy places value on position resulting in the value of an idea being based on rank and not merit.

Chapter Eight

According to Sharfritz and Russell (2005), managerialism is a return to classical organizational theory with a focus on hierarchical commands and scientific management. Scientific management never goes away as all business seek a measurement tool that will allow them to find the best way to do something. But by their own examples managerialism is not a return to hierarchical command systems because empowerment of teams is a move away from hierarchy. Empowerment, change, entrepreneurialism, constant quality improvement, and customer focus are keywords associated with managerialism.

Performance management is a tool to implement managerialism. It involves leadership setting organization wide overarching objectives, measuring their effect, and using that measurement and customer feedback to set new strategic plans. Management control is the component of performance management concerned with linking the entire system together by comparison of actual result to intended result to keep equilibrium between goals of individuals and goals of organization. However, it is difficult to implement the changes necessary in public administrations because managers are restricted in their ability to reorganize workers or reclassify work. In addition there is no incentive for improvement as budget is based on what is spent and not what is saved. Savings go back into the general fund.

Empowerment is the formal authority to implement change. In classical organization theory the manager holds all the power. However, one person cannot do everything and if a manager tries to keep all control then workers perform less optimally and manager loses power. Giving away power will result in an increase in power because the group becomes more efficient. Self directed work teams are given the power to self discipline and authority to manage their work along with the responsibility to produce a particular output. This frees up administration to plan and managers to coach employees and focus on customer needs. However, certain policies must be in place for empowerment to work. The information about where the organization is, where it is going, and feedback about processes must be available to every level so that teams can make informed decisions; rewards must be based on outcomes; and the power to make decisions must be at level where decisions are made.

Reengineering is change on adrenaline. It rejects incrementalism and re-evaluates not how something can be done better, but if it should be done at all or if something entirely different should be done. It involves determining what the customer needs and then developing processes to meet that need using the latest technologies or managerial ideas.

A major change in public administration is a new focus on entrepreneurialism. This competitive public administration model forces public agencies to compete with private business to provide the cheapest product. In order to do this new public management must utilize private sector business techniques, trim their budgets and personnel, decentralize, and put an emphasis on quality. Most importantly it must focus on the customer and not on policy.

Three methods of making organizations successful are having an unlimited budget which has resulted in trillions of dollars of debt; producing the cheapest product available without regard to safety or quality which has worked well for China; or putting a greater importance on quality than cost or quantity and meeting your customers needs. Total quality management seems to be the ideal solution but it may not be the solution used because it requires a focus on long term goals and a constancy of purpose which stands at odds with the constantly changing policy setting environment as politicians come and go. The facets of total quality management are:

· Constancy of purpose – focus on the longterm

· Must become a change in life style not a tool

· Prevention of defects not detection of defects

· Focus on quality not price or quantity

· Constant improvement

· Institute training, encourage education & self improvement, encourage leadership not supervision

· Create a safe environment for fostering new ideas

Chapter Nine Strategic Management in the Public Sector

The decisions that an organization makes in response to a long-term objective it wishes to obtain is strategy. When an organization makes a conscious choice to link its day to day decisions to this long term objective then it is utilizing strategic management. In order to use strategic management it is necessary to discover where the organization is, where they want to be at some specific time in the future, and what tactical (steps along the path) objectives they need to reach in order to succeed at their strategic objective. Strategic planning is a method commonly used to form answers to these questions.

Strategic planning is necessary to utilize strategic management but strategy can exist without formal planning and even without ever being written down. President Truman gave a speech announcing that the United States must stand against those who would oppress others. In response to this strategy to practice containment of Communism, the United States provided money to Greece, a show of force in support of Turkey, and helped to rebuild Europe via the Marshall Plan in 1947. In the 1950’s and 1960’s the United States entered armed combat to stand against Communist movements in Korea and Vietnam. In the United States during the 1950’s the Containment Strategy was used to justify the Federal Aid to Highway Act (build interstates), create NASA, and establish a National Defense Education Act to provide student loans and grants.

Strategic planning requires the following minimum steps:

	Vision Statement		Future Objectives
	Planning Horizon		Date for objectives to be completed
	State of the Union		Current conditions of the organization
	Environment		Current and future external threats
	Decision		Select strategy
	Implementation		Strategic management

The vision statement must focus on what will be achieved and not on the functions of the organization. According to MBO (Management by Objective) popularized by Peter Drucker in 1954, the vision statement must be achievable by the organization, must provide a specific description of the future status, must be limited in time, and must be measurable. SWOT (strength, weaknesses, opportunities, and threats) is a method of analyzing the current capabilities and weaknesses of an organization. Forecasting the future threats to an organization requires the use of historical and current patterns to determine what demands will be made by customers and what opportunities will possibly exist.

An important part of strategic management is feedback to make sure that the company is moving towards their strategic objective. Two strategic management tools are benchmarking, comparing mission critical processes with industry best practices or other organizations; and management scorecard which is a basic tally method of quickly comparing departments. The Presidents Management Agenda of 2002 required federal agencies to rank their departments red for failing, yellow for borderline, and green for meeting standards on the following criteria

· Strategic management of human capital

· Competitive outsourcing

· Improving financial performance

· Expanded electronic government

· Budget and performance integration

This method allows management to focus attention on mission processes and to create motivation where no real competition might exist.

The temporary nature of politicians makes them unwilling to focus on long term planning which may not bear fruit while they are in office; however, the GPRA (1993) requires federal agencies to use the following strategic planning methods:

· Mission Statement

· Long Term Goals for all major functions and operations

· Strategy to achieve goals and objectives

· Annual goals linked to long term

· Identification of external threats to strategic victory

· Descriptions of how “evaluations are used to establish or revise goals”

Strategic planning and management has worked successfully in countries where there is limited political debate but has had less success in the highly political Federal government of the United States. It works best when it is not in the center of political debate and in smaller organizations that have measurable outputs and are less dependent on political bodies for funding.

Click Here for Study Outline

Shafritz, J.M., & Russell, E.W. (2005). Introducing public administration (4^th ed). New York: Pearson.

Kruschwitz, N. The five disciplines. Retrieved on November 9, 2009 from www.fieldbook.com

Anderson, J.E. (1975). Public Policy-Making. New York:Praegar.