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The Public v. Private debate
Public vs. Private
The majority of the management literature was developed in the private sector
Industrial settings
The majority of scholars believe organizational theory applies to all types of organizations
Weber
Taylor
Simon “The common claim that public and nonprofit organizations cannot, and on average do not, operate as efficiently as private business is simply false.”
Distinctions between sectors less prominent than between different types of organizations
Sector Blurring
Mixed, Intermediate, and Hybrid Organizations
State-owned enterprises
Government cooperatives
Public authorities
Some government owned operations operate as business and operate off of revenues from goods and services
USPS
Public-Private Partnerships
Economic development
Similar Functions
Doing similar jobs across sectors
Public vs. Private Typology
Public vs. Private- “Publicness”
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The Purpose of Public Organizations
Politics and Markets
Public goods and free riders
Individual incompetence (information asymmetry)
Externalities
Political Rationales for Government
Maintain law, justice, and social organization
Maintain individual freedoms
Creating Public Value (Moore)
Public value comes from what government organizations produce when those activities are derived from what citizens and their representatives want (can be efficient and/or effective- or not)
Public Value Failure (Bozeman)
Ex. Gun control
The Human Side of Organization
Mary Parker Follett
The Giving of Orders (1926)
Impersonal orders
Reduce management-worker conflict
Humanistic considerations – don’t dehumanize or belittle people
The Hawthorne Experiments
Workers influenced by working conditions
Changed behavior in response to change in environment
Other sources of motivation beyond compensation
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Barzelay and Armajani (1990)
Managing State Government Operations: Changing Visions of Staff Agencies
Reform Vision- impersonal bureaucracies
Administration and politics distinct
Values of efficiency and economy
Line employees have technical skills
Staff agencies act for executive
Focus on economy hurt line performance
Accountability shift --> customers
Warren Bennis
Organizations of the Future (1967)
Bureaucracy will decline as dominant organizational system
Why is Bureaucracy Vulnerable?
Rapid change
Growth in org size and scope
Increase in specialization
Problems confronting organizations
Integration
Social influence
Collaboration
Adaptation
Revitalization
Changes in organizations will require changes in training
Ex. Problem solving teams
Anthony Downs (1967)
The Life Cycle of Bureaus
How do they come into being?
Charismatic leaders
Split off from existing bureaus
Must generate outside support
Grow and change over time due to changes in society and environment
Effects of age
Tend to perform better with experience
Harder to “kill”
“Age lump”
Lipsky (1980)
Street Level Bureaucrats
“public service workers who interact directly with citizens in the course of their jobs, and who have substantial discretion in the execution of their work”
Two sources of controversy
Scope and substance of public services
Interactions with citizens
Why?