ADMINISTRATIVE WORLD

PAPER 01
PUBLIC ADMINISTRATION

Manisha Singh
PAPER 01

Page 1
 PAPER 01

Meaning, Nature and Scope of

1.
Public Administration

Meaning of Public Administration

When human choose to live in groups, it resulted in emergence of community. Community living
entailed various problems which required collective action. Some rational mechanism had been
devised to regulate the behavior of people. It gave birth to Public Administration.
 In simple terms, Public Administration is
‘to serve’ the people by the state that is
ruling or as it is today, who is ruling.
 All the government activities need to be
carried out in a planned way so that the
teeming millions are not left high and dry
in an anarchic state.
Woodrow Wilson – “Public Administration is a
detailed and systematic application of law.”
L.D. White – “Public Administration comprises all
those operations that have their purpose the
fulfilment or enforcement of public policy.”
 This definition simply equates Public Administration with the implementation of public
policy.
Marshall E. Dimock – “Public Administration is the fulfilment or enforcement of public policy as
declared by the competent authorities…. Public administration is law in action. It is the executive
side of govt.
 This definition portrays Public Administration as the implementation of public policy and
law by the executive govt.
Dwight Waldo – “Public Administration is the art and science of management applied to the affairs
of the state.”
 Here, a reference is made to Public Administration being an art as well as a science
applied in the state of affairs. Public Administration is considered as an art as it is a
sphere of intellectual research, a discipline for study and administration of public affairs
in a sequence of operation. It is an art of carrying out activities. On the other hand, it is
on the way to become a science as a cause and effect of decision can be determined and
analyzed
Felix A. Nigro and Llyod G. Nigro - They defined Public Administration focusing the following aspects

Page 2
 PAPER 01

 A cooperative group effort in a public setting.

 Covers all 3 branches – executive, legislative and judiciary – and their interrelationships.
 Has an important role in the formulation of public policy and is thus a part of the
political process.
 Is more important than, is also different in significant ways from private administration.
 As a field of study and practice has been much influenced in recent years by the human
relation approach.
 Is closely associated with numerous private groups and individuals in providing services
to the community.
Probably, Nigro’s definition is the most comprehensive one that covers almost all aspects of
administration.
UNDP – According to the UNDP, Public Administration has two closely related concept.
 The aggregate machinery (policies, rules, procedures, systems, organization structures,
personnel and so forth) funded by the state budget and in-charge of the management
and the direction of the affairs of executive govt and its interaction with other
stakeholders in the state, society and external environment.
 The management and implementation of the whole set of govt activities dealing with the
implementation of laws, regulations and decisions of the govt and the management
related to the provisions of public services.
This definition of Public Administration was given by UNDP in 2003 which is probably the
reason why it is such a comprehensive one. It talks about almost all the areas of Public
Administration.

 Public Administration is concerned with how law should be administered with equity, speed and
without friction.
 It is the non-political machinery of the govt. carrying on its work
for the welfare of people according to the laws set up by the
state.
 The definitions of Public Administration point out that the term
Public Administration has been used in two sense –
1. Wider view
2. Narrower view
Wider View – Public Administration includes the activities of the three branches of govt
 Legislative
 Executive
 Judiciary
Supporters – J.S. Hodgson, L.D. White, Wilson, Pfiffner and Dimock
Narrower View – Public Administration includes the activities of executive branch only.
Supporters – Gulick, Simon, Willoughby, Fayol, Ordway Tead.
The difference in opinion centre around whether administration is mere execution of policy or is a
factor in the formulation of policy also.

Page 3
 PAPER 01

Nature of Public Administration

The nature literally means the essential qualities or characteristics by which something is recognized.
There are two views regarding the nature of Public Administration

1. Integral view
2. Managerial view

INTEGRAL
MANAGERIAL

Integral View
 According to some writers, administration is the sum total of all the activities – manual,
clerical, managerial, technical, etc. – undertaken in pursuit of an objective in view.
 Thus, the activities of the errand boy, the foreman, the gatekeeper, the sweeper as well as
the secretaries of the government and the managers in an organization constitute
administration.

Supporters – Henri Fayol, L.D. White

 Administration differs from one sphere to another depending on subject matter according to
this view.

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

Managerial View
 This view regards the work of only those persons engaged in performing managerial
functions in an organization as constituting administration.
 Public Administration in managerial terms takes a business-like approach to it and tends to
minimize the difference between public and private administration.

Supporter – Simon, Smithburg and Thompson

Luther Gulick – Administration has to do with getting things done; with the accomplishment of
desired objective.

Page 4
 PAPER 01

 Public Administration in managerial terms takes a business-like approach to it and tends to

minimize the difference between public and private administration.

Neither of these views can be summarily rejected. Exact meaning of administration would depend
on the context in which the term is used.

Dimock, Dimock and Koeing sum up by observing that – “as a study public administration examines
every aspect of government’s effort to discharge the laws and to give effect to public policy; as a
process, it is all the steps taken between the time an enforcement agency assumes jurisdiction and
the last brick is placed (but includes also that agency’s participation, if any, in the formulation of the
programme in the firsts place), and as a vocation, it is organizing and directing the activities of
other’s in a public agency.

Scope of Public Administration

While studying the scope of public administration, it is implied that we are dealing with the most
relevant of its operations as an activity as well as a discipline.

Even though there are varying views on what the scope of public administration is, an effort will be
made here to mention all the views –

1. Traditional view – scholars supporting this view refer to only the executive branch. The
involved activities here organization, personnel and procedures in any government activitiy
to execute public policies. This view did not hold strong in the light of other views with
respect to scope.
2. Modern view – thinkers of public administration held that a modern state had to undertake
various types of activities and that the scope of public administration comprises all activities
of the government in the field of public goods and services, defence, law and order,
accountability and transparency and in public sector undertakings.

Public Administration as a discipline – Public Administration developed as an individual discipline

in the 20th century, when thinkers and scholars began realizing its importance. There are broadly
two views regarding this –

1. POSDCoRB view
2. Subject-Matter view

POSDCORB SUBJECT-
MATTER

Page 5
 PAPER 01

POSDCoRB View
 This is a narrow view public administration and takes into account only the executive branch
of the government.
 In other words, this view corresponds with the managerial view.
Supporter – Henri Fayol, Urwick, and Gulick

Gulick sums up the activities of administration in the word ‘POSDCoRB’

P – Planning
O – Organising
S – Staffing
D – Directing
Co – Coordinating
R – Reporting
B – Budgeting

Planning

Budgeting Organising

Reporting Staffing

Coordinating Directing

1. Planning – the government has to plan beforehand which activities it has to carry out in any
program or project to accomplish the identified goals.
2. Organisation – it implies that in any given organization, there has to be a formal flow of
authority through which work can be categorized and delegated.
3. Staffing – the term ‘staffing’ has evolved and is now called ‘human Resource Development’.
It deals with the whole process of personnel administration beginning from recruitment,
training, wages, salaries and moving on to working conditions and motivations.
4. Directing – it deals with program formulation and leadership dynamics. The administration
has to make sound decisions to give out orders and directions to move and organization into
the desired direction.
5. Coordinating – it means the all-important duty of inter-relating the work of various divisions,
sections and other parts of the organization.

Page 6
 PAPER 01

6. Reporting – it means keeping those informed to whom executive is responsible about what
is going on.
7. Budgeting – it means all that goes with budgeting in the form of fiscal planning, accounting
and control.

• POSDCoRB activities are common to all organization.

• POSDCoRB, in a nutshell, promotes unity, certainty and predictability to public administration.
• But this view takes into consideration only the common techniques of administration and
ignores the study of subject-matter with which the agency is concerned.
• This is ‘technique-oriented’ rather than ‘subject-oriented’

Criticism
• Public policy field has been neglected totally in its techniques.
 Thinkers like Robert Dahl, Dwight Waldo and Herbert Simon perceived flaws in
POSDCoRB stating that for every principle of Gulick and Urwick, there is another
principle that contradicts it.
• The Human Relations School pulled apart the concept of POSDCoRB on grounds that it ignored
the competitive nature of needs, desires and wants of human beings.

Subject Matter View

Though POSDCoRB view of scope of Public Administration was acceptable but in due course of time
an opinion against POSDCoRB view generated. It was realized that POSDCoRB view cannot be the
whole public administration nor even the significant part of it.

The Subject matter view comprises line functions or services meant for the people.

 They include law and order, defence, social security, public health, etc. these service have
specialized techniques of their own, which are not covered by the POSDCoRB activities.
 Moreover, even the techniques of management are modified by the subject-matter of the
services in which they have to operate.
 Consequently, organization and even the techniques of coordination in two different services
are different.

Therefore, emphasis on the subject matter cannot be neglected. In short, it can be said that there is
no need to reject either of these views of the scope of the Public Administration. Both represent the
whole truth.

In the words of Lewis Mariam – “Public Administration is an instrument with two blades like a pair of
scissors. One blade may be knowledge of that field covered by POSDCoRB, the other blade is
knowledge of subject matter in which these techniques are applied. Both blades must be good to
make an effective tool.”

 Mariam denies the existence of such a thing as a general administration because each
case of general administration is specially conditioned by its peculiar subject matter.

Page 7
 PAPER 01

As observed by Herbert Simon Public Administration has two important aspects, namely deciding
and doing things. The first provides the basis for the second. One cannot conceive of any discipline
without thinking or deciding. Thus public administration is a broad-ranging and amorphous
combination of theory and practice.

Pfiffner has divided the scope of Public Administration into two heads –

1. Principles of Public Administration

2. Sphere of Public Administration
 In the first category, Public Administration covers the organization, management of personnel;
method and procedure; material and supply; public finance and administrative responsibility.
 In the second category, the sphere of Public Administration includes the central and state
government, its regional and local authorities and also public corporation.

Thus, in the words of Prof. Pfiffner, “Public Administration, in sum, includes the totality of
government activities, encompassing expertise of endless variety and the techniques of organization
and management whereby order and social purpose are given to the efforts of vast numbers.”

Walker has given a more comprehensive view of scope of Public Administration. He has divided it
into 2 parts –

1. Administrative Theory
2. Applied Administration
 Administrative theory includes the study of structure, organization, functions, and methods of all
types of public authority engaged in carrying out the administration of all level, i.e. national,
regional, and local, etc.
o It also studies the entire problem connected with external control of Parliament and the
cabinet over administration, internal and judicial control over administration, etc.
 Applied Administration – it is difficult to give a comprehensive statement as to what the applied
administration should include because of the new and fast growing field of Public Administration
o He has made an attempt to classify the main form of applied administration on the basis
of 10 principal functions, namely
1. Political
2. Legislative
3. Financial
4. Defensive
5. Educational
6. Social
7. Economic
8. Foreign
9. Imperial
10. Local

Page 8
 PAPER 01

Today, the administrator is concerned not only with developing the administrative techniques but it
has also become important for him to study the ecological and human aspects of Public Administration.

It may be said that the scope of public administration varies with people’s expectations of what they
should get from government.

A century ago they expected that government should only maintain law and order. Now people expect
the government to promote positive welfare, guarantee social security, guarantee a good and peaceful
life from birth to death.

Prof. White – “In their broader context, the ends of administration are the ultimate objects of the state
itself, the maintenance of peace, order, the progressive achievement of justice, the instruction of the
young, protection against disease and insecurity, the adjustment and compromise of conflicting group
and interests, in short, the attainment of good life.”

Thus, it is obvious that though Public Administration studies the administrative branch of the executive
organ, yet its scope is very wide and it varies with the people’s conception of good life.

Public Administration is Art or Science?

No science of public administration if possible unless:-
a) The place of normative values is made clear.
b) The nature of man in the area of public administration is better understood and his conduct is
more predictable.
c) There is a body of comparative studies form which it may be possible to discover principles and
generalities that transcend rational boundaries and peculiar historical experience.
• Characteristics of Physical science – regularity, predictability, absence of normative value,
reproducibility and exactness.
Why Pub Ad is Not Science?
• Jacob Winer, (professor of Economics), has said that “No one knows better than the occupants
of the social science chairs that their discipline is so fallible and erratic that to persist in the
term, scientific, is an open invitation to ridicule.”
• Morris R. Coehn also denies it the status of a science.
• Waldo – “Administrative study as any social science is concerned primarily with human beings,
a type of being characterized by thinking and valuing. Thinking implies creativeness, free will,
valuing implies morality, conceptions of right and wrong. It is submitted that the established
techniques of science are inapplicable to thinking and valuing human being.”
• Free will, choice, purpose and values paly a vital role in functioning of public administration.
• Its facts can neither be isolated nor measured nor classified with exactness as is the case with
physical science.
• Even same person can react differently in different situations.
• No agreed principles of public administration have been so far evolved.
• Administrative behaviour cannot be completely rational.
• Predictability is not possible in public administration as it deals with human beings whose
minds is most unpredictable.
Scientific method of study is inapplicable to the study of administration because values which are
closely involves in administrative facts cannot be studied scientifically.

Administrative World Page 9

 PAPER 01

Public Administration is an Art

• It is an art because it is concerned not only with formulating the general principles but also
with the actual running of administration.
• According to Charles Worth, “Administration is an art because it requires fineness, leadership,
zeal and lofty convictions.
• Thus, Public Administration is both a science and an art.
• It stands for the process or activity of administering governmental affairs. This makes it an
art.
• It is also an area of intellectual investigation to discuss principle. As such, it is science.
• In fact, it is more an art than a science because it is much more practical than theoretical.
• Both the aspects of administration should be harmoniously blended together so that best
results may be obtained.

Importance of Public Administration in Democracy

• The ideals of democracy – progress, prosperity and protection of the common man – can be
attained only though impartial, honest and efficient administration.
• A good administration is acclaimed as an asset.
• Modern democracy has brought in the concept of a welfare state.
• It has further increased the scope of state activity leading to ever increasing demands on public
administration for more and more of services.
• According to White, Administration is a moral act and administrator is a moral agent.
• In developing democracies, there is undue intervention of politicians in administration.
• This only impairs the efficiency of administration and it ceases to be an effective instrument for
the realisation of nation’s ideals.
• Bureaucracy of unimpeachable integrity and strong calibre is the very backbone of democracy.

Importance to the People

• Pub ad has a very important place in the life of people.
• Administration the lives of people from “Womb to Tomb’
• Edmund burke said, “Constitute government how you please, infinitely the greater part of it will
depend on exercise of powers which are left at large to the minister of state. Without proper
management your commonwealth is no better than a scheme on paper and not a living, active,
effective constitution.”
• Deterioration in socio-economic conditions of people in being attributed to ineffective
administration at various levels of government.

Causes of its growing importance

 Industrial revolution and technological development.
 Emergence of concept of planning for the socio-economic betterment of the people.
 Modern era is generally described as ‘era of war and terrorism”. It necessitates the
mobilisation of entire manpower and proper utilization of the resources of the country.
• Public administrator’s challenge is to perform tasks that are too difficult or too
sensitive to be entrusted to other societal institutions.
 Role of administration is that of stimulation and facilitator in the era of liberalisation.

Administrative World Page 10

 PAPER 01

Approaches to the study of Public Administration

1. Mechanical Approach
2. Philosophical Approach
3. Structural Approach
4. Juridical approach
5. Behavioural approach
6. Case method approach
7. Historical approach

Mechanical Approach
• Earliest approach to study of public administration.
• Proponents  L.D. White, W.F. Willoughby, Taylor and warner.
• Concentrate attention on the question of achieving efficiency in public administration.
• The basic idea underlying the mechanical approach is that administration is a
mechanical organisation and that we can find out certain principles which will make
the organisation function efficiently.
• Also called ‘efficiency-oriented’ approach or ‘scientific-management’

Philosophical approach
• Shanti parva of Mahabharata, Plato’s Republic, Hobbes’s leviathan on civil government
are the example of this type of approach.
• This takes within its purview all aspects of administrative activities.

Structural Approach
• This approach studies Public Administration in terms of its structure.
• It studies administrative organisations, personnel management and financial
administration.
• It may also be called Institutional approach.

Juridical approach
• Its origin can be traced from the European tradition of rooting public administration in
law.
• Main advocate – Frank L. Goodnow
• It lays emphasis on the constitutional structure of public administration.
• It interprets administration in legal terms and ignores the human aspect of it.
• But, administration is not purely a legal structure but it is essentially a problem of
human relations.

Behavioural approach
• New approach to the study of public administration.
• M.P. Follett, Herbert Simon and Robert A. Dahl are the prominent champions of this
approach.
• A student of administration should study these behaviours wherein he will have to take
help from sociology and psychology.

Case method approach

• A case narrates of what actually has taken place in administration.

Administrative World Page 11

 PAPER 01

• Such approach seeks to reconstruct the administrative realities and acquaints the
students with the administrative process.
• This approach has been adopted by Indian scholars while conducting researches in
hitherto unexplored fields.

Historical approach
• A sizable number of administrative institutions can be comprehended in the light of
their past by adopting this approach.
• For instance, it is rather difficult to understand Indian National Congress without
going into its origin and its phases of development.
• Fred W. Riggs made an important contribution to the study of administration in developing
countries in very recent past.
• Plato’s The Republic – written about 2400 years ago.
• He prescribed that for good administration of an ideal state its management shall be left to
the hands of a philosopher-king.
• If a philosopher will rule the state without any consideration of their personal gains
or loss.
• Machiavelli’s The Prince (1469-1527) – he advised the prince what to do and what not to
do.
• In his opinion, the sole aim of the prince should be to bring Italy under the
umbrella of good administration and while doing this the prince need not pay any
recognition to the standard meaning of religion, value, morality etc.
• The only objective of the prince shall be to ensure good administration.
• Woodrow Wilson wrote an article – The study of administration, in political science
quarterly in 1887.
• This is treated as the beginning of modern public administration.
• He expressed that it is easy to write constitution than to execute the principles laid
down in it.

Administrative World Page 12

 PAPER 01

2. Woodrow Wilson

About Woodrow Wilson

• Woodrow Wilson is the father of Public administration
• Thomas Woodrow Wilson was born in Stanton,Virginia, USA & studies politics, government and
law.
• Published an essay “ The Study of Administration” in 1887.
– The essay is regarded as the beginning of Public Administration as a specified study.
• Wilson was governor of New Jersey(1911-1913) and President of USA ( 1913-1921)
• Recipient of Noble Peace Prize in 1919
• Outstanding professor of political science, an
administrative scholar, a historian, an educationist, a
reformer and a statesman.

Background Scenerio
• His essay “the study of Administration” publishes in
Political science quarterly in 1887.
• He wrote his essay in the era of Progressive Movement
which covered the last two decades of 19th Century. In
USA this movement was developed in response to
increasing urbanization, immigration, the seeming loss
of traditional values, corruption etc. There was
maladministration due to rampant political corruption
and the prevalence of “spoil System” introduces by
president Andrew Jackson.
• Woodrow Wilson was convinced that there was a need to reform the government and reform
should be in the field of Public administration so as to make it more efficient.
• Wilson emphasised in his essay the development of science of public administration as the
appropriate cure for corrupt and inefficient administrative system.

Administrative science
• Administration is a science.
• American administration deprived of scientific method because administrative science first
developed in Europe, so it best suited interest of Europe.
• It is difficult to organize administration in democracy than monarchy.
• Administration has to be responsive to public opinion.
• Unless a nation stop tinkering with constitution, it is difficult to concentrate on administration.
– Because constitution need to be change according to time,
“ it is more difficult to run a constitution than to frame one”
• To him ; public administration is a detailed and systematic execution of public law

Administrative World Page 13

 PAPER 01

Politics & Administration

• Although he preferred politics and administration dichotomy but his views on this do not
appear to be very clear. This is clear when he explains the interdependence and intimate
relationship between the two.
• He said “ administration cannot be divorced from its connections with other branches of Public
law without being distorted and robbed of its true significance”
• At other places, he argues that administration and politics are separate. Administration lies
outside the sphere of politics. Administration questions are not political question. He tries to
establish a distinction between administration and politics
Conclusion
• It appears that Wilson vacillated between separability & inseparability of administration and
politics
• Mosher’s view :- Wilson made the most vigorous statement on politics-administration
dichotomy
• Riggs:- for Wilson, not only politics & administration are closely intertwined, but administration
action are scarcely conceivable except as implementation of general policies.
• Wilson attempted to outline a coherent idea about politics & public administration & how
each should be separate & yet work together. His idea was to improve efficiency of
government operations by developing an administrative system free from political
interference.

Administration & Business

• To Wilson:- the field of administration is a field of business and is removed from hurry and
strife of politics. Public Administration is a part of political life only as the methods of counting
house are a part of life od society; only as machinery is part of manufactured product.
• Buechnar- basic premise of Wilson argument was that affairs of public administration were
synonymous with private administration

Administration & Public Opinion

• The question is that which part of public opinion should take in conduct in Administration?
• To Wilson Public Opinion takes the place of an authoritative critic.
• But the problem is to make public opinion efficient without suffering it to be meddlesome.

Civil Service
• Wilson advocated civil service based on merit, necessary to organize democracy.
• Opposed creation of bureaucratic elite not subject to democratic control.
• In USA, earlier there was spoil system( the meaning of spoil system was to give govt civil service
jobs to loyal members of party in power) Wilson felt that study of administration was a possible
method for correcting the political abuse of spoil system.
• As Nicholas henry observed, Wilson facilitated the expansion of an ethical sense of public duty
beyond the conceptual confines of civil service & into the entire intellectual terrain of Public
administration.

Comparative method
• He rejected philosophical method to study administration
• Emphasised historical & comparative methods
Why comparison ?

Administrative World Page 14

 PAPER 01

• One can never learn virtue/weakness of any system without comparison.

• The fear was that this method leads to import of foreign system. So he said :-
• “If I see a murderous fellow sharpening the knife cleverly, I can borrow his ways of
sharpening knife without borrowing his probable intention to commit murder with it”
• There are divergent interpretation of Wilson’s thinking on the export of administrative
technology from one country to other.
• Riggs:- Wilson gave his highest loyalty to democratic government and he would never have
approved export of administrative technology to non-democratic country.
• Heady :- Wilson’s essay seem to assume that there is no restriction on the availability of
administrative technology for export, and his attention is given exclusively to the question of
circumstances under which it should be imported.

The Government:- New Meaning

• He published an article “the new meaning of government” in 1912
• Focuses more on implementation aspects of administration.
• In earlier article he talks of “consent of governed”
• But in this, he extends the consent to “participation in government of all classes & interest”
• Conclusion
• The publication of Wilson’s essay marks the birth of Public administration as a recognised field
of study.
• Doctrine after doctrine, which public administration has accepted as valid, was first clearly
mentioned by Wilson.
• Wilson observes that object of administrative study is to discover what government can
properly and successfully do in the very opening paragraph of the essay.
• The study of administration as Wilson himself observed is too broad, too general, too vague.
Wilson was ambivalent on many issues and he raised more questions than providing answers.
• But these limitations do not undermine significance of Wilson’s contribution.
• As Waldo noted his essay is “the most important document in the development of Public
administration”

Administrative World Page 15

 PAPER 01

Evolution of Public
3.
Administration

Evolution & Growth of Public Administration

• Public administration, as a practice, is as old our civilisation.
• Sumerians and Egyptian demonstrated their administrative skills in the construction of
pyramids.
• The history of Indian administrative systems beings from Vedic period.
• Kautilaya’s Arthashastra is the oldest text on public administration.
• Aristotle’s Politics in ancient west and Machiaveli’s The Prince in medieval west contain
significant observations about the organisation and functioning.
• Modern public administration was first taught as a part of the training course of public officials
on probation in Prussia.

In the 18th century, Cameralism in Germany and Austria was concerned with the systematic
management of governmental affairs. The Cameralists showed significant interest in the study of public
administration. They undertook systematic research on the topics related to public administration. The
objective of their study and research was to train candidates for civil services. Thus, they stressed the
descriptive studies of structures, principles and procedures of public administration and emphasised
the professional training of public officials. George Zincke was the most distinguished scholar of the
Cameralist group.
• The meaning and scope of public administration was defined for the first time in Hamilton’s
The Federalist.
• Charles Jean Bounin’s Principles de Administration Publique (1812) in French is considered as
the first separate treatise on the subject of public administration.
However, Public Administration as a separate subject of study originated and developed in the USA.
According to Rumki Basu, the following factors have contributed to this in the 20th century –
i. The scientific management movement advocated by F.W. Taylor
ii. The 19th century industrialisation which gave rise to large-scale organisations.
iii. The emergence of the concept of welfare state replacing the police state (laissez faire)
iv. The movement for governmental reform due to negative consequences of ‘Spoils System’.

We can broadly divide the history of Public Administration into the following 6 periods:-
• First Stage: - Politics-Administration Dichotomy (1887-1926)
• Second stage:- Principles of administration (1927-1937)
• Third stage:- Era of Challenge (1938-1948)
• Fourth stage:- Crisis of identity (1948-1970)
• Fifth stage:- Public Policy Perspective (1971-1991)
• Sixth Stage:- Rowing to steering (1991-conitnuing)

Administrative World Page 16

 PAPER 01

First Period (1887-1926)

Theme – Politics-Administration Dichotomy

• 1887  Woodrow Wilson’s essay “The Study of Administration”

• 1900 Frank J. Goodnow published his Politics and Administration.
– Politics-administration dichotomy
• 1926  L.D. White’s Introduction to the Study of Public Administration.
– This book faithfully reflects the dominant theme of the contemporary period; its
premises are that politics and administration are to be kept separate; and efficiency
and economy are the watchwords of public administration.

Second Period (1927-1937)

• Theme:- Principles of Administration.
• This started with publication of W.F. Willoughby’s Principles of public Administration (1927)
• Other works 
– M.P. Follett’s Creative Experience,
– Henri Fayol’s Industrial and General Management
– Mooney and Reiley’s Principles of organisation
• 1937  Luther H. Gulick and Lyndall Urwick’s Papers on the Science of Administration
appeared.
• The years 1927-1937 were the golden years of ‘principles’ in the history of Public
Administration.
• This was also a period when Public Administration commanded a high degree of respectability
and its products were in great demand both in government and business.

Third Period (1938-1947) – Era of Challenges

The main theme during this stage was the advocacy of ‘Human relations – behavioural approach’ to the
study of Public Administration.

• 1938  Chester I. Barnard’s “The functions of the Executive” was published.

– The book discusses the broader issues of administration such as formal and informal
functions, functional overlay, organisational environment, equilibrium among
organisational units and inducement contributions.
• Herbert Simon wrote an article entitled, ‘The Proverbs of Administration’ in 1946 and
Administrative Behaviour in 1947
• The principal thesis is that there is no such thing as principles.
Both the defining pillars of public administration were challenged. It was argued that
administration cannot be separated from politics because of its political nature and political role.
Administration is not only concerned with implementation of political policy decision, but also plays
an important role in policy- formulation which is the domain of politics. In other words, idea of
Politics-Administration dichotomy was rejected.
Similarly, the pricniples of administration were challenged and criticised on the group of lack of
scientific validity and universal relevancy. Hence, they were dubbed as ‘proverbs’ and ‘naturalistic
fallacies’.
Moreover, the principles approach to organisational analysis was criticised as a mechanistic
approach due to its emphasis on the formal structure of organisation.

The important publications of this stage which challenged the classical public administration –

Administrative World Page 17

 PAPER 01

i. C.I. Barnard: The Functions of the Executive (1938)

ii. F. Morstein Marx (Ed.): Elements of Public Administration (1946)
iii. Herbert Simon: The Proverbs of Administration (1946)
iv. Herbert Simon: Administrative Behaviour (1947)
v. Robert Dah: The Science of Public Administration: Three Problems (1947)
vi. Dwight Waldo: The Administrative State (1948)

Period Fourth (1948-1970) – Crises of Identity

With the rejection of Politics-Administration Dichotomy and principles of administration, public
administration suffered from the crises of identity. Consequently scholars of Public Administration
reacted in two ways –

i. Some of them returned to the fold of political science (the mother science). However, they
were not encouraged by Political Scientists. John Gaus in his article entitled Trends in the
Theory of Public Administration (1950) developed a thesis that “a theory of Public
Administration means in our time a theory of politics also.”
ii. Some other moved towards the Administrative Science. They argued that administration is
administration irrespective of its setting. They founded the Journal of Administrative Science
Quarterly in 1956. The major works influenced by this perspective are – Organisations (1958)
by March and Simon, Behavioural Theory of the Firm (1963) by Cyert and March, and Handbook
of Organisation by March (1965)

However, in both cases, public administration lost its separate identity and distinctiveness and it had to
merge with the larger field. That is why, this stage in the evolution of public administration is called as
“stage of crisis of identity”.

Various developments took place during this phase –

i. Rise of New Human Relations Approach advocated by Chris Argyris, Douglas McGregor, Rensis
Likert, Warren Bennis and Others.
ii. Growth of Comparative Public Administration.
iii. Advocacy of Ecological Approach to study of public administration by F.W. Riggs
iv. Conceptualisation of Development Administration by Edward Weidner, F.W. Riggs, and Others
v. Crystallisation of the concept of Administrative Development by F.W. Riggs
vi. Emergence of New Public Administration
vii. Advocacy of Public Choice Approach by Vincent Ostrom, and others.
viii. Rise of Critical Perspectives of Public Administration.

Fifth Period (1971-1991)

• Public administration registered progress and adopted a new vision.
• It attracted within its fold scholar from various disciplines and thus was becoming truly
interdisciplinary in nature.
• It come closer to policy science and related areas and has been showing ample concern for
issues in the field.

Sixth Period (1991-Continuing)

• Search for alternative of bureaucracy
– Market, NGO.

Administrative World Page 18

 PAPER 01

• New public management and the civil society are the emerging new paradigm.

Nicholas Henry’s Paradigm

• Public Administration has developed as an academic field through a succession of 5 paradigm
according to weather it has locus or focus
• LOCUS:- Institutional where of the field. e.g. govt bureaucracy is locus of pub ad
• FOCUS:- specialised what of the field. e.g. Principle of Administration

Paradigm 1- Politics-Administration Dichotomy (1900-1926)

• Wilson gave the idea of dichotomy. His line of thought further continued by Frank J Goodnow
in his book “Politics And Administration” in 1900.
• In his book, Goodnow mentioned that there were 2 distinct function of government
– Politics- expression of state will
– Administration – execution of these policies.
• Like Wilson, Goodnow also argues for the promotion of Pub ad as an independent and separate
Discipline
• Emphasis of Paradigm 1 was on LOCUS. Pub ad should centre in Govt bureaucracy.
• Woodrow Wilson :- father of public administration
• Goodnow :- father of American public administration
• 1926 :- book of L.D. White Published. It was 1st book entirely devoted to the field.
• This was the period of “public service Movement”. The subject of Pub ad picked up academic
legitimacy. American universities began to offer courses in pub ad.

Paradigm 2:- the Principle of administration ( 1927-1937)

• After World War-1, pub ad changed inexorably.
• US & Western Europe were changing from rural agricultural society to an urban industrial
nation.
• This required a considerable response from public administration because so many new
function would be established.
• As the population became increasingly urban, expanded programmes would be needed in
public works, public health and public safety.
• Public administration as an activity was booming all during 1920
• Paradigm 2 :- Golden Era of Public Administration
• More emphasis on “focus”. Focus was on efficiency
• Focus on administrative principles that could be applied anywhere.

Period of Orthodoxy
• Period between world wars was called period of orthodoxy by Public Administration theorist.
• It was believed that –
– true democracy and true efficiency are synonymous, or at least reconcilable
– Work of govt could be neatly divided into decision-making and execution
– Administration was science with discoverable principle.
• Main concern- linkages of study of administration with organisation & control
• Famous publication of that time –
– “the science of administration” by Gulick & Urwick
– Scientific management by F.W. Taylor
– Weber’s Ideal type bureaucracy

Administrative World Page 19

 PAPER 01

• Elton Mayo gave the conclusions of his most famous management studies :- HAWTHRONE
EXPERIMENT (1933)

The Challenge (1938-1950)

• 1938= Chester I. Barnard’s book “The Function of Executive”
• Barnard emphasised the significant role of Informal Organization
• Behavioural challenge= Herbert Simon
• He emphasised the use of logical positivism in dealing with question of policy making. Decision
making is the true heart of ad
• There were 2 defining pillar of public administration :-
– Politics/administration dichotomy
– Principle of Administration
• These two had been abandoned by creative intellects in the field

Dichotomy died
• A leading scholar wrote in pub ad journal that “A theory of pub ad means in our time a theory
of politics also” with this declaration, dichotomy died. After that Nature of field altered.
• Abandonment of principle Of administration
• There could be no such thing as “principle of administration”
• 1947= Simon’s Administrative behaviour : A study of decision-making Processes in
administrative organization
• It lead to Simon receiving noble prize in 1978.
• By mid-century abandonment of 2 defining pillar of pub ad left Public administration bereft of a
distinct epistemological & intellectual identity.

Reaction to challenge
• Simon offered alternative
• There ought to be 2 kinds of Public administrationists
• One, who concerned with developing a “pure science of ad” based on a through grounding in
social psychology
• Other, who concerned with “prescribing for public policy”
• This alternative was rigorous & normative in its emphasis.

Paradigm 3 :- Public Administration as a Political Science (1950-1970)

• By the end of 2nd world war, modern bureaucracy in US and western countries.
• But the principle of administration proved to be increasingly inadequate when gauged against
the size & complexity of modern state.
• New challenge to traditional theme of administration
• Some of the scholar of pub ad returned to the field of “Political Science”
• But, they were not welcomed by political scientists.
• Rosco Martin in his article in 1952 called for continued “dominion of political science over
public administration”

Paradigm 4:- Public Administration as Management (1956-1970)

• Occurred concurrently with paradigm 3.
• Search for an alternative.
• Viable alternative-management, sometime called administrative science
• It provide FOCUS and not locus.

Administrative World Page 20

 PAPER 01

• It offers technique, often highly sophisticated technique, that require expertise & specialization
but in what institutional setting that expertise should be applied is undefined.
• Beginning of paradigm 4- debut of “Administrative science quarterly” in 1956.

Crisis of Identity
• The period of Paradigm 3 & 4 can be combined and called as Period of “Crisis of Identity”. This
period is from 1948-1970
• With the rejection of Politics-administration identity and the principle of administration. Pub ad
suffered from a Crisis of Identity.
• Scholars reacted to this in 2 ways:-
– Some of them returned to the mother science, Political Science
– Some of them moved towards “Management” or Administrative Science.

Paradigm 5:- Public Administration as Public Administration (1970-present)

• 1970- formation of National Association of School Of Public Affairs and Administration
(NASPAA)
• Formation of NASPAA represented not only an act of succession pub ad scholars from political
science or Management Science, but a rise of self-confidence as well.
• Progress, particularly in the area of “organization Theory” and “Information Science” has been
made in this direction. Additionally, considerable progress has been made in refining the
applied techniques and methodologies of pub ad.
• The term “Public affairs” & “public policy” became popular.
• Scholars got increasingly concerned on areas of policy-making, political economy, policy
analysis etc.
• New ideas that took place
– New Public Administration
– Re- inventing Government
– New Public Management.

Golembiewski’s Development Phases

• Robert T. Golembiewski noted 4 Phases in the development of pub ad:-
1. Phase 1:- Analytical Politics-Administration Distinction
2. Phase 2:- Concrete Politics-administration Distinction
3. Phase 3:- A science of Management
4. Phase 4:- Public Policy approach

Study of Public Administration in India

• In the 1930s, Lucknow University became the first one in India to have included a full
compulsory paper on Public Administration in M.A. Political Science syllabus
• In 1937, Madras University became the first one in India to have started a diploma course in
Public Administration.
• In 1949-1950, Nagpur University became the first one in India to have established a separate
full-fledged department of Public Administration and Local Self Government. With this, Public
Administration was invested in India, for the first time, with full academic legitimacy. This
department was headed by the late Dr. M.P. Sharma who had the distinction of being the first
professor of public administration in India.

Administrative World Page 21

 PAPER 01

• In 1954, the Indian Institute of Public Administration (IIPA) was established at New Delhi on the
recommendation of the Paul H. Appleby Report on Public Administration in India (1953).
• In 1987, Public Administration was introduced as a fully-independent subject in the civil service
examination conducted by UPSC. This gave a powerful impetus to the Subject.

Administrative World Page 22

 PAPER 01

4. New Public Administration

The New Public Administration (NPA) is a concept evolved to denote the academic advancement took
place in the discipline of Public Administration as a result of deliberations in first Minnowbrook
conference held in 1968.

New Public Administration

How it started?
• The American society by the end of 1960 faced a number of problems.
• Vietnam war, population increase, environmental problem, increasing social conflicts,
economic crisis.
• This led younger generation of intellectual question efficacy of political & administrative
system.
• Restoration of values and public purpose in government was suggested. Being responsive to
the needs of the clients felt necessary. This led to emergence of NPA.
Rise of NPA
• The followings are the major landmarks in the rise and growth of NPA :-
1. The honey report on higher education for public service (1967):- John honey of Syracuse
University undertook an evaluation of Public administration as field of study in US university.
2. The Philadelphia conference on the theory and practice of Public Administration (1967):- Under
the chairmanship of James C. Charlesworth
3. The Minnow Brook Conference (1968)
4. Publication of “Toward a New Public Administration : the Minnow brook Perspective” edited by
Frank Marini (1971)
5. Publication of “Public administration in a time of turbulence” edited by Dwight Waldo (1971)

Minnow brook Conference (1968)

• In late 1960s younger generation of scholars gathered at minnow brook under the patronage of
Dwight Waldo. They challenged the “givens” of orthodoxy
• Steady decline in commitment of American towards Institution such as church, family, media,
govt etc.
• Scholars felt that Public administration is less concerned about the contemporary problems
and issues. That’s why they gathered at Minnow brook.
• This get-together led to “NEW PUBLIC ADMINISTRATION”
• New Public Administration (NPA)- sensitive & concerned for societal problem.
What is NPA
• Literature of NPA discussed 4 themes
1. Relevance :- it is a re-interpretation. Traditional Pub ad interested in efficiency & economy.
NPA discovered that discipline is less concerned about contemporary issues. NPA demanded

Administrative World Page 23

 PAPER 01

radical curriculum change to facilitate meaningful studies oriented towards the realities of
Public life.
2. Values:- NPA rejected value-neutral position because discipline should explicitly espouse the
cause of disadvantaged section in society.
3. Social Equity :- Realisation of social equity should be a chief goal of Public administration
4. Change :- to serve the cause of social equity is to actively work for social change- that is the
motto of NPA.

Anti goals in NPA

• Anti-goals create a balance by showing us a tangible set of values or actions that we don’t
want to be
According to Robert T. Golembiewski, anti-goals are
1. Anti-Positivist – that means rejected the definition of Pub Ad as Value free. Reduce rigidities in
administration to make it more adaptable, problem-solving
Positivism:- approach that relies on scientific evidence
1. Anti-Technical- Condemn human being sacrificed to logic of machine & System
2. Anti-Bureaucratic & Anti-Hierarchical :- Hierarchy promotes bureaucracy. It kills creativity &
innovation and brings rigidities.
• NPA is still in developing stage because there is no serious publication after 1971.

Features of NPA
• Change & responsiveness:- flexibility and adaptability to deal with changing environment.
• Rationality:- judging the administrator's action not only from the point of view of govt but also
from citizen’s perspective
• Structural changes:- in tune with relevant situation and needs of environment.
• Emphasis on Multi-disciplinary perspective:- an understanding of various approaches including
political, management, human relation is essential for its growth.

MINNOWBROOK CONFERENCE, 1988

• Minnowbrook-1 sought to identify values & ethics as critical issue of 1970s
• But in 1988, social environment changed. More privatization and contracting out etc. The
values of public purpose replaced by emerging values of private interest.

Similarities between Minnow brook 1 & 2

• Many themes of Minnowbrook-1 found place in second also. Themes like ethics, social equity,
human relation etc.
• Concern for social equity
• Democratic values and centrality of public administration
• Need for interaction between generalist & specialists
• Pub ad to become relevant discipline to solve the problem of the society.

Difference between Minnowbrook-1 & 2

• In Minnowbrook-2, composition was wider. Scholars belonging to different backgrounds were
invited
• Inclusion of some theme those were not so prominent in Minnow brook-1 such as leadership,
technology policy and economic perspective.
• First was radical & confrontational but second was more practical & respectful to the seniors in
profession.

Administrative World Page 24

 PAPER 01

• Minnowbrook-2 emphasised on short term goals. It recognised that the external environment
is highly complex so long term goals is neither desirable nor possible.
• Second recognised that it can only reduce social inequality and cannot eliminate it altogether.
It alone cannot set up egalitarian society.
It was argued that good old Public administration will never go out of fashion. Even with all technology
at his command, a poorly trained and unmotivated civil servant could become insensitive and corrupt.

Minnowbrook -1 (1968) Minnowbrook – II (1988)

It composition was narrow in the sense that most Its composition was wider in the sense that the
of the participants had a political science participants had been trained in law, economic,
background. planning, policy analysis, policy studies and urban
studies.
Its mood, tone, tempers and orientation was Its mood, tone, tempers and orientation was more
contentious, confrontational, radical, and civil, more practical, more pragmatic, less radical
revolutionary. and more respectful to senior professionals.
It laid emphasis on relevance, values, social It laid emphasis on leadership, constitutional and
equity, and change legal perspectives, technology policy and
economic perspectives.
It was decidedly anti-behavioural It was more perceptive to the contributions of the
social and behavioural sciences to public
administration.
Its social environment was marked by strong Its social environment was marked by a growing
cynicism towards government. It challenged demand for retreat of the state in the forms of
public administration to make it pro-active to governmental cutback, privatisation, voluntarism,
major social issues. social capacity building and third-party
government. It retreated from an action
perspectives.

Minnow brook Conference-III (2008)

• Under the leadership of Rosemary ‘O Leary
• Theme :- Future of public administration, public management and public service
• Against the background of ascendancy of neo-liberal ideology. Downsizing of govt, roll-back of
state, opening up mores pace for the market and non-govt agencies.
• The overall idea was to focus on the comparative aspects of administration. It also aimed at
improving the training of next generation of civil servants.
• It held in 2 phases
• Phase 1 At Syracuse university (sept 3-5):- preconference workshop
• Phase 2 at Lake placid (sept 5-7):- it dwelt at length on issue of public ad in ‘dark times’.
Dark time of war, terrorism, climate change, economic problem, poverty etc.
• It raised the question “does the public administration has the governance capacity to
effectively address the complex problems that characterise the dark time”
Criticism
• The main idea behind NPA were propagated earlier. Its has been said that there is nothing new
in NPA. NPA differs from traditional PUB ad in merely responding to different set of social
problem
• But this criticism can be countered by remark of GEORGE FREDRICKSON

Administrative World Page 25

 PAPER 01

“to affix that label new to anything is risky business. The risk is doubled when the newness is attributed
to idea, thought, concepts and theories. the newness is not in the threads used but in the way fabric is
wove and also in the arguments as how to use the fabric”
• Hence it NPA is not new in content but in Form. NPA aimed at making pub ad more
interdisciplinary without loosing its conceptual focus.

Blacksburg Manifesto
• In 1983, scholars of Virginian school of poly technique led by John Rohr and other prepared a
manifesto called as Blacksburg manifesto.
• This included the view of these scholars regarding the role and status of state.
• They argued, Pub ad should be treated as 4th organ of state and not as subordinate agency to
political executive.
• Bureaucracy had failed. So they advocated for reform than for replacement.
• It supports collectivism as opposed to individualism.
• It advocated for structuralism:- problem of big state cannot be solved by adopting LPG.
Solution lies in bringing structural and procedural reforms in public sector itself.
• Hence, Blacksburg manifesto was extension to NPA

Administrative World Page 26

 PAPER 01

Public Interest Theory

It assume that decision-making in government is motivated by unselfish benevolence by elected
representative or full time government employees. In other words, public servants are motivated by
desire to maximise society's welfare.
Negative consequences of Public interest theory
• The government machinery becomes unwillingly large. This led to increased public revenue and
thereby increases tax burden on the citizens. Most of it spent on maintaining the government.
• In absence of competition, there is no compulsion on innovation and raising the quality.
• A large government machinery increases the powers of bureaucracy threatening the
democracy.
• In absence of organizational pluralism, a citizen has no freedom of choice

Public Choice Theory

• Public choice approach (PCA) to public ad came into existence in the 1960s, almost coinciding
with NPA.
• Essentially critique of bureaucratic model of govt.
Vincent Ostrom, the chief protagonist of this approach advocated for replacement of traditional
doctrine of ‘Bureaucratic Administration’ by the concept of ‘Democratic Administration’. In his book
The Intellectual Crises in American Public Administration, Ostrom writes “Bureaucratic structures are
necessary, but not sufficient structures for a productive and responsive public service economy.”
• PCA deals with possibility of “institutional pluralism” in the provision of goods & service
• PCT is principally the contribution of economists
• PCT challenges the traditionally established public interest theory
Economist such as Tullock, Niskanen, Buchanan propounded it and the central tenet of their approach
is that all human behaviour is dominated by ‘self-interest’.
• The human being is considered to be a utility maximiser, who intends to increase net benefits from
any action or decision.
• The voters, politicians and bureaucrats are considered to be motivated by self-interest.
• The vote maximising behaviour of politician and self-aggrandisement bureaucrats tend to affect the
collective interests of the society.
• There are very few incentives to controls costs.
• Such behaviours and attitudes, according to the public choice theorists, lead to an increase in size
and costs of government and inflated departmental budgets.
• Bureaucracy, being the core of public administration, is held responsible for the declining quality of
public services.
• This thinking led to the new paradigm of government sensitive to market forces, which meant
remodelling of government according to concepts of competition and efficiency.

Theoretical Bases
• Choice implies competition. PCT introduces competition in pub ad in a bid to make it more
efficient & effective.
• Institutional pluralism :- Existence of multiplicity of public agencies gives individual citizen the
necessary choice

Administrative World Page 27

 PAPER 01

• It is essentially a state-reducing and market-expanding doctrine, justified by its view that

government decision making is not based on individual citizens interests.
• The PCA is based on behavioural assumptions that human beings are Individualistic and
rational-economic
Thus, Public Choice Approach emphasises on –
i. Anti-bureaucratic approach
ii. Institutional pluralism, i.e., Plurality of agencies to promote consumers’ preferences.
iii. Diverse democratic decision-making centres.
iv. Application of economic logic to the problem of public service distribution
v. Decentralisation
vi. Popular participation in administration
The Public Choice Approach, on the other hand, opposes:
i. Single centred administrative power
ii. Separatism of politics from administration
iii. Hierarchical administration
iv. Rational and neutral bureaucracy.

Major Propositions of PCT

• Methodological Individualism: - rejects viewing society as an organism and considers holistic
approach misleading. Groups, society are nothing more than sum of individuals comprising
them.
• Rationality of Man: - human behaviour is dominated by self-interest. Each and every individual
has the ability to rank alternative in order of preference and choose the best alternative. All
participants in the political arena- politicians, bureaucrats and votes act to maximise their own
gains.
• Concepts of Politics as means of exchange: - challenges the public interest theory. The view is
that government collective decision making process will solve the social problem selflessly is
just romanticism in politico-administrative theory. The natural consequences of public interest
approach is ‘state overload’
What PCA theorists say
• The role of states needs to be minimised. The state must carry out only those activities which
are within its competence.
• The activities where private sector has got expertise, all such activities have to be transferred
to them.
• Even in those activities which state must keep with itself, there should be multiple agencies
delivering the same public good.
• Such kind of institutional pluralism ensures competitions.
• If possible, even these services should be contracted out to private parties.

Major contributors to PCA/PCT

Gorden Tullock
• For him, study of politics, bureaucracy and policy making should be based on certain
assumptions of human behaviours that human beings are rational and mainly pursue their own
self-interest.
Anthony Downs

Administrative World Page 28

 PAPER 01

• In his books “inside bureaucracy” argues that motivations of individual officials are diverse such
as power, money, prestige, security etc.
William Niskanen
• His theory is based on “exchange of output for budget” between the individual bureau and
government.
• His work was “first systematic effort to study bureaucracy within a public choice framework.”
Vincent Ostrom
• His book “the intellectual crisis in American Public administration” his basic argument is that :-
democratic administration is more efficient than bureaucratic administration.

Criticisms
• Public interest has been treated as mere sum of all individual self-interests. Its criticism of
political leaders and civil servants as being motivated solely by self-interest is unfair.
• Replacement of public administration by market exchange is too simplistic an idea to be taken
seriously.
• To say that efficiency is the sole aim of government is to trivialize government. It has higher
goals such as equality, equity and welfare.
• Market has no sympathy for those who cannot afford. This is a cause of concern for poor
countries.
• In early stages of development, a state may not have well developed private sector. State is the
only instrument of development there.

The evolving discipline of public administration also came to be influenced by the growth of ‘critical
theory’ expounded by Jurgen Habermas. The book entitled The Essential Frankfurt School Reader
edited by Andrew Arato and Eike Gebhardt contains major works on the Critical Perspective of public
administration. The critical approach advocated humanisation, debureaucratization and
democratization of administration.

New Right Philosophy

• The New Right Philosophy propagated in the 1970s in UK as well as USA. Favoured markets as more
efficient for allocation of resources.
• Excessive reliance on state was not considered appropriate and it propagated lesser role for it and
opted for self-reliance.
• The New Right denounced the role of bureaucracy, and proposed minimal role for state in
provision of social assistance
• This perspective has a global impact in generating a consensus about the efficiency of market
forces.
• Markets were considered to play a key role in the creation of economic wealth and employement.

Administrative World Page 29

 PAPER 01

Administrative World Page 30

 PAPER 01

5. New Public Management

New Public Management is the development of the eighties in the last century. It primarily emerged as
a critic of traditional approach of Public Administration. The guiding philosophy of traditional approach
is the management of public interest and the separation of politics from administration

New Public Management

• Latest paradigm in evolution of public administration.
• Birth of NPM:- book “Reinventing Government” by David Osborne & Ted Gaebler (1992)
– 1st re-invention in pub ad – NPA
– 2nd – NPM
• Term ‘New Public Management’ was coined by “Christopher Hood”. He used it in his Article
entitled ‘A Public Management for All Seasons’ , published in 1991.
• NPM also called as ‘managerialism’ (by Pollitt), ‘Entrepreneurial government’ (by Osborne and
Gaebler), ‘Market based public administration’ (by Lan and Rosenbloom) & 3rd way between
private and public administration (by U.A. Gunn)

The NPM has emerged out of the Thatcherism (Britain – the first country which initiated the
privatisation of public enterprises) and Reaganism (USA) of the 1980s. It represents a synthesis of the
public administration and the private administration. It takes ‘what’ and ‘why’ from public
administration an ‘how’ from private administration.

NPM Genesis
The impact of globalisation on public administration has been significant, emphasizing change,
reinventing public administration with a management orientation. Form the early 1980s, serious
challenges have been posed to administration to reduce reliance on bureaucracy, curtail growth of
expenditure and seek new ways of delivering public services.

• NPM prescribes a set of reform measures of organising and offering of services, with market
mechanism, to the citizens.
• Beginning 1980s, there has been a widespread attack on public sector and bureaucracy as the
governments all over began to consume scarce resources.
• The expansion of government has been into too many areas, which could as well be in the domain
of private sector.
• Bureaucracy was considered to be unwieldy, unresponsive, inefficient, ineffective, and unable to
withstand the competition.

A culmination of several factors has given to rise to NPM. These include –

i. Increase in Government Expenditure

Administrative World Page 31

 PAPER 01

 During the 1970s and 1980s, the excessive increase in government expenditure, in many
countries brought to light the wastage, mis-management, increasing debts coupled with
corruption and inefficiencies in governmental operations.
 The rise in governmental expenditure along with poor economic performance led to the
questioning of the need for large bureaucracies.
 Hence, attempts were initiated to slow down and reverse government growth in terms of
increasing public spending as well as staffing.
 This paved the way for a shift towards privatisation, quasi-privatisation of certain activities,
and moving away from core government institutions.
ii. Influence of neo-liberalism
 There has been a powerful influence of neo-liberal political ideology during the 1980s and
1990s.
 Neo-liberalism favoured dominant presence of market forces than the state.
 Concepts such as efficiency, markets, competition, consumer choice, etc. had gained
predominance.
 Neo liberalism favoured cutting back of welfare state, maximising individual liberty and
freedom and encouraging market mechanism leading to equitable outcomes.
 The then prevailing scenario favoured roll back by the state and the space created by it to
be filled with the private sector.
 The state was expected to promote the efficient functioning of markets.
iii. Impact of New Right Philosophy
 The New Right Philosophy propagated in UK as well as USA, favoured markets as more
efficient for allocation of resources.
 Excessive reliance on state was not considered appropriate and it propagated lesser role
for it and opted for self-reliance.
 The new right denounced the role of bureaucracy, and proposed minimal role for state in
provision of social assistance.
 This perspective had a global impact in generating a consensus about the efficiency of
market forces.
 Markets were considered to play a key role in the creation of economic wealth and
employment.
iv. Public Choice Approach
 The public choice approach had a major impact on the evolution of the new public
management perspective.
 Economists such as Tullock, Niskanen, Buchanan propounded it and the central tenet of
their approach is that all human behaviour is dominated by ‘self-interest’.
 The efficiency of institutions and processes such as market and decentralised service
delivery has become attractive as a consequence of this approach.
v. Washington Consensus
 The 1980s and 1990 have been characterised by questioning of the role of state in
economic development.
 It was increasingly felt that the poverty and economic stagnation, especially in the
developing countries, was the result of the state undermining the operation of market
forces.

Administrative World Page 32

 PAPER 01

 The need for bringing about adjustments in the economy on various fronts such as financial
and banking sectors, and reduced role for the state in economic development have been
considered indispensable.
 This led to the emergence of Washington Consensus.
 It basically comprises the reform measures promoted by Bretton woods institutions (IMF
and World Bank), the US Congress and Treasury, and several think tanks, which aimed to
address the economic crises, especially by Latin American countries during the 1980s.
 This is also terms as structural adjustment cum stabilisation programme which emphasises
the need for sound micro economic and financial policies, trade and financial liberalisation,
privatisation and deregulation of domestic markets.

Salient Features of NPM

NPM aims at making Public Administration market based, committed to the three prime goals (3Es) –

1. Economy – the eradication of waste

2. Efficiency – the streamlining of services
3. Effectiveness – the specification of objectives to ensure that resources are targeted on
problems.

The emphasis of NPM is on performance-appraisal, managerial autonomy, cost-cutting, financial

incentives, output targets, innovation, responsiveness, competence, accountability, market-
orientation, quality improvement, contracting out, flexibility, competition, choice, information
technology, debureaucratization, decentralisation, down-sizing and entrepreneurialism.

The traditional public administration has found a new reform replacement in the form of NPM.

• The NPM advocates a basic change in the role of state in society and economy.
• It emphasises on the vital role of the ‘market’ as against the ‘state’ as the key regulator of society
and economy.
• Thus, it involves a shift from direct provision of services by government to indirect methods like
policy-making, facilitating, contracting, providing information and coordinating other actors.
• In other words, the government should change from a ‘doer’ of public activities to a ‘distributor’ of
public benefits and ‘facilitator’ and ‘promoter’ of change in society and economy.

Thus, the NPM suggests a series of shifts of emphasis in the way in which the public sector should be
organised and managed to meet the new challenges of liberalisation, globalisation and privatisation.

The central theme of NPM, as summarised by Osborne and Gaebler, is, “We don’t need more
government; we need better government. To be more precise, we need better governance.
Governance is the act of collectively solving our problems. Government is the instrument we use. The
instrument is outdated, and it is time to remake it.”

Theoretical Bases
The NPM has two theoretical bases (defining pillars)

i. Public Choice Approach (refer previous topic)

ii. Neo – Taylorism

Administrative World Page 33

 PAPER 01

Neo – Taylorism
Neo – Taylorism advocates a number of principles for transforimg the traditional model (Weberian
bureaucratic model) of public administration. However, its basic thrust is on the adoption of private
sector management practices in public administration.

Mohit Bhattacharya has summarized the suggestions made by Neo-Taylorists in the following way –

• Application of performance evaluation techniques to measure actual achievement against pre-

set targets;
• Assigning personal responsibility for each step in the performance of the production process
• For rewarding achievements and punishing underperformance or error, introduction of
individual rather than collective incentives; and
• Following the private sector model of production, imposing increased control by means of
economic and financial information with the intention of providing a costing of almost
everything produced in the public sector.

NPM has following 8 driving paradigm

1. Devolving authority, providing flexibility
2. Ensuring performance control and accountability
3. Developing competition and choice
4. Providing responsive service
5. Improving the management of human resources
6. Optimizing information technology
7. Improving the quality of regulation
8. Strengthening steering function of the centre.

Attributes of Public Management are 3

1. Localisation :- devolution & de-centralization. Promotes answerability & quality
2. Externalisation:- contract out of government function to non-government agencies. No
action execution only focus on policy making
3. De- bureaucratization :- de-layering, downsizing, decentralization, splitting hierarchy
into more autonomous unit. Roll back of state.
NPM accept “market” as model of government.

Goals/Features of NPM
According to Christopher Hood, the NPM has following 7 features –

i. Emphasis on professional management in the public sector

ii. Laying of explicit standards and measures of performance
iii. A shift to greater emphasis on output control (results) rather than procedures
iv. A shift to disaggregation of unit in the public sector
v. A shift to greater competition in public sector
vi. A stress on private sector management practices
vii. A stress on greater discipline and parsimony in resource use.

Osborne and Gaebler have identified 10 goals of NPM. They are –

Administrative World Page 34

 PAPER 01

i. Catalytic Government
 The government should concentrate on catalysing the public sector, private sector and
voluntary/non-government sector into action to solve the societal problems and not
just on providing services.
 Thus, the government should engage itself in steering rather than rowing.
ii. Community-owned Government
 The government should strengthen and empower the citizens, families, and
communities to solve their own problems.
 Hence, the government should take out various services from the control of
bureaucracy.
iii. Competitive Government
 The government should inject competition among different providers of goods and
services by rewarding efficiency and economy. This increases performance and reduces
cost.
iv. Mission-driven Government
 Government should be driven by its goal and not by its rules and regulations.
 In other words, it involves transforming rule-oriented government into goal-oriented
government.
v. Results-oriented Government
 The government should find outcomes (results) by encouraging target achievement
and mission-directed efforts.
 It should measure the performance of its agencies mainly in terms of outcomes and not
inputs.
vi. Customer-driven Government
 The government should regard the clients as customers.
 It should meet and work towards customers and not bureaucracy.
 It involves offering them choices, surveying their attitudes, making services convenient
and allowing them to make suggestions.
vii. Enterprising Government
 The government should emphasise on earning money rather than spending. It should
put its energy into resource mobilisation by using fees, savings, enterprise funds and so
on.
viii. Anticipatory Government
 The government should identify and prevent problems rather than cure them after
they occur.
 Thus, the government should prevent the needs from arising in the first place and not
just deliver services to meet ends.
ix. Decentralised Government
 The government should decentralise authority, that is, disperse authority from higher
to lower levels.
 It involves a shift in working pattern from hierarchical control to participatory
management and team work.
x. Market-oriented Government
 The government should opt for market mechanism rather than bureaucratic
mechanism.

Administrative World Page 35

 PAPER 01

 It should achieve goals not only by control and command but also by restructuring
markets.
 Thus, it should leverage change through market forces.

Anti-Goals of NPM
The NPM rejects the various concepts and principles of traditional public administration. These are –

i. Politics-administration dichotomy
ii. Hierarchy-ridden organisation
iii. Over-centralisation of power
iv. Supremacy of rules in administration
v. Rationality in decision making
vi. Impersonal nature of administration
vii. Rigidity in administrative process
viii. Inward-looking orientation

Impacts
In pursuing the above goals, the government in different parts of the world have used a number of
mechanisms. They are –

i. Creation of autonomous public organisations

ii. Reducing the size of government
iii. Corporatisation of government organisations
iv. Reducing budgets and welfare expenditure
v. Reforming Civil Service structures
vi. Performance measurement and evaluation
vii. Privatisation of public undertakings
viii. Decentralisation of authority to lower levels
ix. Contracting out services to private agencies
x. Promoting openness and transparency in administration
xi. Encouraging people’s participation in administration
xii. Declaration of Citizens’ charters, and so forth.

In the USA, in 1993 under the influence of Osborne and Gaebler’s views of entrepreneurial
government, the then Vice-President Al Gore, had initiated ‘National Performance Review’.

The developing countries such as India also introduced managerial reforms as part of the aid
conditionalities imposed by donor agencies such as the World Bank and IMF. They included reduced
budgetary support to public sector enterprises, disinvestment, corporatisation, and outsourcing of
certain activities. Attempts have also been made to introduce citizen’s charters, strengthen redressal
grievance mechanism, e-governance initiatives and so on.

Criticism
• it can never be accepted that privatization always increases efficiency & productivity
• Problem of public bureaucracy are substantially structural and attitudunal, and to discard it is
verily like throwing the baby with the bath water.
• NPM stands for an uncritical acceptance of even negative feature of private management.
• NPM fails to take into account of realpolitik of government.
• The argument of profit motive of human is badly flawed.

Administrative World Page 36

 PAPER 01

• What to remember is that “organization are not human’s enemy”

As Herbert Simon says :- Organization are the most effective tools that humans have found for
meeting human needs”

Public Service Approach

• Facing uncertainty about approaches to study of administration.
• Shift from Taylorism to system theory via behaviourism
• Now question about role of state under bewildering pressure from within and without state.
2 discipline-shaking approach
1. Re-inventing government :- focused on steering rather than rowing
2. NPM :- downsizing of government.
• Neo-liberal approach :- best government rules the least.
• Many reaction to this approach.
• The question Is about the role of government in maintenance and development of society.
• Publication of book :- The New Public Service : serving, not steering by Denhardt and
Denhardt
• In this book they put the Central role of government as “Service”
• They argue :- Government shouldn’t be run like a business, it should be run like democracy.
• Public interest & democratic citizenship are hallmark of government.
• Public servants invite citizen to participate in governance process, a new culture of co-
governance.
• This new attitude & new involvement:- “co-governance” - is what Denhardt & Denhardt called
NEW SERVICE APPROACH
• Many reaction to this approach.
• The question Is about the role of government in maintenance and development of society.
• Publication of book :- The New Public Service : serving, not steering by Denhardt and
Denhardt
• In this book they put the Central role of government as “Service”
• They argue :- Government shouldn’t be run like a business, it should be run like democracy.
• Public interest & democratic citizenship are hallmark of government.
• Public servants invite citizen to participate in governance process, a new culture of co-
governance.
• This new attitude & new involvement:- “co-governance” - is what Denhardt & Denhardt called
NEW SERVICE APPROACH
• It has been observed
• Administrators are realising that they have much to gain by
• “listening” to public rather than “telling”
• “Serving” rather than “steering”
• Citizens & public officials are working together to define & to address common problems in a
cooperative & mutually beneficial way.
• What Denhardt & Denhardt describe is more an expectation - a normative stand – in order to
sensitize us to the democracy diminishing trend inherent in neo-liberal philosophy with its
accent on market & de-emphasis on Government.

Administrative World Page 37

 PAPER 01

• It is timely warning & an appropriate cautionary note against the trendy “downsizing”
movement In Public administration.

Important Terms
Contracting Out - It is the process of purchasing of services from an outside organisation or
the outside organisation or the obtaining of services from the private sector. Through the
instrument of contract, the relation between the parties are managed and regulated.

New Public Service - this indicates the values derived from the money spent on public
services be it education, health, etc. in terms of outcome, efficiency and productivity. For
instance, the expenditure incurred on reduction of crime is assessed in terms of several
parameters such a number of offenders dealt with, total recorded crimes, responses to crime
that were reported etc.

Value for money – this concept propounded by Janet V. Denhardt and Robert B. Denhardt
focuses on public servants adhered to law community values, professional standards and
citizens’ interest. It gives importance to democratic names, citizens, and communitarian
values.

Administrative World Page 38

 PAPER 01

Critical Theory

Critical theory is grounded in the enlightenment, 18th century thought in Europe and America that used
science, reason, and individual self-determination to cast off religious and governmental authority.

• Critical theory is associated with the Frankfurt School beginning in the 1920s and extending
through the later work of principal members Max Horkheimer, Theoder Adorno, and Herbert
Marcuse, in the 1960s and 1970s.
• The term critical theory is also applied to writer whose work began in the early part of the 20th
century, such a Georg Lukacs and Antonio Gramsci, as well as to later 20th century writers such as
Jurgen Habermas.
 Because of differences in approach between authors and changes in the work of individual
authors over time, it is difficult to construct a unitary narrative of critical theory.
• The development of critical theory as a philosophical and practical discipline has greatly influenced
social sciences in General, public administration in particular.
• It is a post-Weberian conceptualisation. It offers critique of public institutions and provides a vision
for a better future.
• This theory has strong individualistic, subjectivist and audit-bureaucratic thrust.
• In the present era of globalising world, critical approach is very much needed to analyse the issues
that are influencing governance.

Critical Theory in Public Administration

• It is a post-Weberian conceptualisation of the Frankfurt School.
• All post-modern public administration theories have given importance to people in the organisation
than to the formal structures of organisations. They also give importance to the subjective as well
as inter-subjective aspects of organisations and their functions.

Critical theory provides an opening for conceptualisation and practice that acknowledges the value-
based, normative character of public administration. The public professional who perceives
contradiction between current public practices and a future with reduced inequity and oppression may
use critical theory as a guide for taking action to create social change.

• The communication theory of Habermas is the most commonly used version of crtical theory in
public administration today.
 The idea of undistorted communication as a critical tool for social change has been
important in public administration.
• Robert Denhardt suggested that a critical approach to organisational theory would be useful in
public administration.
• Denhardt reviewed the origins of critical theory, from Hegal and Marx to the Frankfurt theorists,
but focused on Habermas
 He emphasises the Habermasian concern about value-free science and efficiency and urged
attention to the larger historical and normative context of public organisations as part of a
critical examination of bureaucracy and its relationship with clients.

Administrative World Page 39

 PAPER 01

• Jurgen Habermas, the best-known exponent of critical theory. Like Weber, Habermas refers to the
preponderance of technical efficiency in a modern state through the operation of public
bureaucracy.
• As the society gets increasingly bureaucratised, social power and discretion tend to be
concentrated in the hands of bureaucratic state apparatus.
• The expanding role of the public bureaucracy is not matched by its popular acceptance.
• There is increasing criticism of the bureaucracy as a self-aggrandising force alienated from the
public who can rarely repose trust in it.
• The trend toward over-bureaucratisation causes concern about the social role of the bureaucracy
that can be inquired into from the critical perspective.
• The critical theory of public administration urges replacement of the stifling effect of techno
administrative domination of bureaucracy through debureaucratization and democratisation of
administration based on free flow of communication and an expose of inherent contradictions in
hierarchical relationship.
• A critical theory of public organisation would be interested in improving the quality of
organisational life.
• It would enquire into the conditions of power and dependence in an organisation and try to reveal
the inherent contradictions in hierarchical relationships as embedded in a bureaucracy.
• The critical approach would concentrate on the distorted patterns of communication that
characterise present day organisation both in terms of internal and external relationships.

Critical theory has inspired a movement for improving the quality of organisational life by advocating
self-reflecting and self-criticism on the part of administrators and by pleading for a reordering of
priorities so as to give primacy to the growth of individual as against the productivity of organisation.

• This theory has strong individualistic, subjectivist and anti-bureaucratic thrust.

• Critical social theory encourages academicians and practitioners not only to view social structures
and practices as vehicles of domination, repression and manipulation but also as potential starting
points for meaningful social change.

Recent decades have witnessed a great transformation and upheaval marked by technological
revolution and global restructuring of capitalism. It brought issues like heightened exploitation of
labour, corporate downsizing, great levels of unemployment, inequality and insecurity. There is
instability and violence in many places. All these issues are bearing influence on public governance. In
this context critical approach is very much needed to analyse them.

Given social conditions and the nature of research and practice in public administration, the conceptual
framework of critical social theory offers promise for those scholars who wish to critique the status quo
of professional practice in public organisations, with intent to imagine better options for the future.

Critical theory has had limited discussion and application in public administration. This could be
because in one-dimensional society people have become unaware of potential alternative, or
they do not want to see contradictions because it could be upsetting or dangerous to challenge
the status quo.

Administrative World Page 40

 PAPER 01

Important Terms
Conservatism – Adherence to a political disposition that prefers the status quo and accepts change
only in moderation.

Dialectic – the philosophical system of asserting truth by resolving the references that exist between
factors in a particular situation.

Libertarianism – a political doctrine holding that a government should do little more than provide
police and military protection: other than that, it should not interfere – for either good or ill – in the
lives of its citizens.

Objectivist – one who believes that reason and logic is the only means to knowledge, that self-
interest determine ethics, and that capitalism should prevail in society.

Administrative World Page 41

 PAPER 01

Democratic Citizenship
• According to Denhardt and Denhardt (2003), theory of democratic citizenship is based on public
interest.
• The theory bases itself on the concepts of community and democratic values.
• The theory advocated that people are not self-centred, but are guided by the feelings of
community
• The citizens take a broader view of public affairs and actively participate in amtters of community
interest.
• Bureaucracy has to abide by this spirit of democratic citizenship.

Administrative World Page 42

 PAPER 01

6. Good Governance

Good Governance
• Governance refers to forms of political system and the manner in which power is exercised in
utilising country’s economic and social resources.
• Government refers to the machinery and institutional arrangement of exercising the sovereign
power.
• Governance means the process as well as the result of making authoritative decision for the
benefits of the society.

Governance
• Governance is what government does
• Governance is the dynamic exercise of management power and policy, while government is the
instrument that does it.
• Governance in the present context is an attempt to widen the scope of public administration by
stretching beyond formal government.
• It is broader in nature extending up to private sector, Non-governmental mechanisms along with
governmental institution.
• According to Kettl “government refers to the structure and function of public institutions.
Governance is the way government gets its job done.

Defining Good governance

• Development is being looked upon as a process of creating a suitable enabling environment for
people to lead long, healthy, productive and creative lives.
• In facilitating this, governance process needs to be effective and efficient.
• This leads us to the crucial aspects of governance, called good governance.
• According to Leftwich, good governance involve an efficient public service, an independent judicial
system and legal framework to enforce contracts; an accountable administration of public funds;
an independent public auditor responsible to a representative legislature; respect for the law and
human rights at all levels of government, a pluralistic institutional structure and a free press.

Concept of Good Governance

• Assumed significance since 1989 with the publication by World Bank.
• Some thinker assumed that the term was first used in France in the 14th century where it meant
seat of government. World bank is said to have reinvented it, as a new approach to development.
• In 1992 bank published a report entitled:- GOVERNANCE & DEVELOPMENT
• In 1997, the bank redefined the concept “good governance” as a necessary precondition for
development.
• Bank considered good governance a sound development management

Administrative World Page 43

 PAPER 01

World Bank Concept of Good Governance

It has 4 dimension
• Public sector management
• Accountability
• Legal framework for development
• Transparency and information accessibility

Problem faced by developing countries

• Improper implementation of laws
• Delays in implementation of policies, projects
• Lack of clarity about rules & regulation
• Absence of effective accounting system
• Failure to involve beneficiary.
• World bank outlined the need for Good governance, necessary for economic, human and
institutional development.
World bank conceptualisation of good governance included:-
o Political accountability
o Freedom of association & participation by different group in process of governance
o Rule of law & independence of judiciary
o Bureaucratic accountability
o Freedom of information and expression
o Sound administrative system leading to efficiency and effectiveness
o Co-operation between government and civil society
o Presently this concept occupy key place in promotion of sustained all-round development

Good governance:- Features

• It assures that corruption is minimised, the views of minorities are taken into account and that the
voice of most vulnerable in society are heard in decision-making.
• It is also responsive to the present and future needs of society.
• It basically has following features :-
o Participation
o Rule of law
o Transparency
o Responsiveness
o Equity & inclusiveness
o Effectiveness & efficiency
o Accountability

Significance of Good Governance

• Good governance is a combination of efficiency concern of public management and accountability
concern of governance.
It aims at :-
• Improving quality of life of citizen
• Enhancing effectiveness and efficiency of administration
• Establishing the legitimacy and credibility of institution
• Securing freedom of information and expression
• Providing citizen-caring administration

Administrative World Page 44

 PAPER 01

• Ensuring accountability
• Using IT based services to improve citizen-government interface
• Improving productivity of employees
• Promoting organizational pluralism.
Indian context
• Reform in 1950s and 1960 were structural in nature
• Reform in 1990s to transform traditional bureaucratic administration into citizen-oriented
administration.
• Adoption of constitution, FR, DPSP. Many committee were appointed to review organizational
structure.
• Administrative reforms commission set up and it recommended many reforms. Based on them
dept. of Personnel was created which later transformed into ministry.
• Several institution such as CVC, CBI, lokpal & lokayukta have also been created.
• 73rd & 74th constitutional amendment were landmarks in decentralization
• Use of information technology to provide various service. Right to information act
Conclusion
• The concept of good governance has gained prominence over the past decade.
• In narrow sense, it focuses on improving public ad structures, processes, institutional development
• In broader sense it places emphasis on qualitative improvement in the administration.
• Hence principle such as accountability, transparency, participation and empowerment are
emphasised to make governance good or effective.
• The market forces continue to play a key role but the state cannot be washed away.
• What is needed in the present scenario, is a coordination of efforts amongst the state, market and
civil society organizations with an aim on long term stability.

Initiatives for Good Governance in India

• Right to Information
• As a party to the International Covenant on Civil and Political Rights (ICCPR), India is under an
international obligation to effectively guarantee citizens the Right to Information as per Article 19
of the ICCPR.
• RTI Act, 2005 marks a significant shift in Indian democracy.
• It gives greater access of the citizen to the information which in turn improves the responsiveness
of the government to community needs.
• The right to information promotes openness, transparency and accountability in administration by
making the government more open to public scrutiny.
E-Governance
• The National e-Governance Plan envisions to make all government services accessible to the
common man in his locality, through common service delivery outlets and ensure efficiency,
transparency & reliability of such services at affordable costs.
• E-governance effectively delivers better programming and services in the era of newly emerging
information and communication technologies (ICTs), which herald new opportunities for rapid
social and economic transformation worldwide.
• E-Governance has a direct impact on its citizens who derive benefits through direct transactions
with the services offered by the government.

Administrative World Page 45

 PAPER 01

Good Governance Index

• The Good Governance Index was launched on the occasion of Good Governance Day on 25
December 2019.
• The Good Governance Index is a uniform tool across States to assess the Status of Governance and
impact of various interventions taken up by the State Government and Union Territories.
• The objectives of Good Governance Index are to provide quantifiable data to compare the state of
governance in all states and Union Territories, enable states and Union Territories to formulate and
implement suitable strategies for improving governance and shift to result oriented approaches
and administration

Kautilaya and Good Governance

10 indicators identified by Kautilaya which contribute to attaining good governance
1. King (Government) must merge his individuality with duties
2. Properly guided administrator
3. Avoiding extremes without missing the goal
4. Fixed salaries and allowances to the king and public servants
5. To maintain law and order is chief duty of the king.
6. Carrying out preventive punitive measures against corrupt officials
7. Replacement of ministers by good ones by the king
8. Disciplined life with a code of conduct for king and ministers
9. Lays great stress on appointment of Amatyas who were highest in status.
10. Emulation of administrative qualities like uniformity in administrative practice; competent
ministers etc.
• The end of good governance is happiness and welfare of the people.
• The end of good governance is not ‘greatest happiness of greatest number’ but tolerance and
respect for minorities, consensus on social and constitutional good and, above all antyodaya

Administrative World Page 46

 PAPER 01

Impact of LPG on Public

7.
Administration

IMPACT OF LIBERALISATION ON PUBLIC ADMINSTRATION

• Liberalisation means relaxation of government controls in the spheres of economic and social
policy.
• The primary objective of liberalization is reorientation of the economies in the direction of
market principles.
• It emphasizes dismantling the licensing system, reforming financial system, removing subsidies,
user pay principle etc.
• But two central themes are found about impact of Liberalisation:-
o An effective state with citizen friendly & transparent rules and institutions is vital for
the provision of goods and services and for enabling people to lead healthier lives
o Within the state, public administration will continue to exist though in a different form
• A consensus has emerged that state should not continue to play a role of universal provider of
goods and services.
• Though it is still central in developing countries for ensuring social and economic development,
it should assume a new role of partner, catalyst, facilitator and enabler.
• This view has emerged because the state in many developing countries has failed to provide
basic amenities to the people so a new partnership between the government, citizens and the
business is called for.
• A two pronged strategy has been suggested to make administration in developing countries an
effective partner in development. This comprises:
o Matching the state’s role to its capacity
o Raising the state’s capability by reinvigorating the public institutions
For meeting the challenges put forth by liberalization following have been the strategies of
administration in developing countries

 Reform in the Public Services

• The impact of free market economy on the structure and concept of government is on the
agenda of discussion the world over.
• Terms like New Economic Policy, Structural Adjustment Programme, Privatization, Deregulation
and Contracting out used in the context of liberalization in developing countries have all
stressed on reforming the public services in these countries.
• The public services have been sought to be market and people friendly so that the individual
and market enterprise could flourish in the economy.
New Public Management (NPM) Approach:-

Administrative World Page 47

 PAPER 01

• This approach is basically to remove the internal inefficiencies of bureaucracies.

• Though many influences have been there on administration by liberalization and globalization
but the influence of new public management has the most phenomenal and visible.
The major emphasis of new public management approach has been on the following concerns:-
• Much larger use of market like mechanisms for those public sector organizations which could
not be directly transferred to the private owners
• Decentralization of management and production of services by the public sector
• Great emphasis on improving the service quality
• Individual service users are to be treated as its “clients” are treated by the private sector
Setting Bench Marks for Service Delivery
• Benchmarks for service delivery have been set not only in developed countries but also in
developing countries like Malaysia, Philipines, India etc.
• These benchmarks are also called Service Quality Initiatives (SQIs).
• With onset of liberalization the public in developing countries is demanding better services but
there is pressure on government to reduce the costs due to increasing public expenditure on
welfare programmes.
• So service quality initiatives have been emphasized as a means of reducing costs and improving
the quality of services provided.
• It has also been recognized that an efficient public sector will enhance the overall economic
performance

Sevottam Model
In India the government has come up with the public service delivery excellence model “Sevottam”
which encompasses:-
• Citizens’ Charters,
• Service Delivery and
• Grievance Redressal as its main constituents so that high quality services could be provided to the
people
Changing Role of Bureaucracy
• The process of economic liberalization seeks a reduced governmental intervention in the economic
sphere.
• Thus implying a reduced role of bureaucracy in the process of development.
• The bureaucracy has a role of helper, catalyst and facilitator.
Empowerment of the citizens
• In developing countries due to the problem of corruption in government offices the less is the
direct interaction between the government officials and the citizens less is the bureaucratic red
tape.
• Towards this end e-governance is being seen as a great asset.
• Globalisation and liberalization have helped to reduce the communication gap between the
different nations and societies.
• They have sensitized people about the events happening not only in their immediate surroundings
but also in other parts of the world.
Positive impact of Liberalisation
• Due to the impact of liberalization public administration is
o moving towards a rights’ based approach,
o a culture of accountability & transparency instead of traditional hierarchies is being sought
to be imbibed in public bureaucracies.

Administrative World Page 48

 PAPER 01

• Innovative concepts such as e-governance, corporate governance, decentralization etc. are being
offered as solutions to the “governance deficit” which has plagued developing countries for
decades.
• The role of government is undergoing a qualitative shift from “doer” to “enabler” in the provision
of goods & services and in imbibing a citizen friendly culture

Concerns with Liberalisation

The developing countries are facing some serious challenges also. Some of these are:-
• “Perceived” loss of sovereignty over taking their own economic & social policy decisions,
• Indifference of western countries over distorted trade structure at international level favouring
the developed countries,
• Lack of commitment of developed countries towards environmental conservation and to take
necessary steps so that developing countries do not face an environmental catastrophe in
future,
• Threat of rising powers of some of the multinational companies,
• Lack of movement of labour across the borders at the same pace as does the capital &
investment etc.

Impact of Globalisation on Public Administration

• Globalisation refers to the multiplicity of linkages and interconnections between the States
and societies, which make up the present world system.
• It describes the process by which events; decisions and activities in one part of the world come
to have significant consequences for individuals and communities in quite distant parts of the
world.
• Globalisation has received the boost due to technological developments and market-driven
economic development.
• Globalisation is bringing about interdependence between Nation States.
• It is said to create a free atmosphere for administrative, political, socio-economic, cultural and
technological changes
• There is a mixed response towards the impact of globalisation on different countries.
• The proponents consider the developments caused by globalisation giving a push to the
economies.
• This is said to result in employment opportunities, better living standards, and prosperity,
collaborative arrangements, networking and so on.
• The opponents point out its negative repercussions as high levels of poverty, job lay offs, lack
of employment for unskilled labour, increased economic inequality, subsidy cuts, and
environmental problems, especially in developing countries.
• Hence the world over, we find stiff opposition from various social forums against globalisation.
• Globalisation is giving rise to new societal expectations, changing value systems, altering the
nature of State and governing systems.
• This is putting pressures on public administration to respond to the widely fluctuating shifts.
• It is resulting in major changes in the nature of the State.
• The Information Technology revolution is changing the complexion of tasks of administration
• Globalisation has affected public administration due to the impact of pressures generated on it
by global institutions, information technology and increasing concern for efficiency and
productivity
New challenges due to the impact of globalisation

Administrative World Page 49

 PAPER 01

Public administration, according to Jamil Jreisat (2004) is facing new challenges due to the
impact of globalisation.
These are:
• A growing need for negotiation skills among sovereign States
• Changed role of bureaucracy from managing to facilitating economic activities
• An organisational, managerial culture which stresses performance and result-oriented
management (There is a demand for managerial skills of adaptability, cooperation and
creativity)
• Focus on managerial leadership and expertise which has been necessitated by the demands of
negotiations, mediation, and sensitivity to human rights and diversity
• Emergence of e-government, where all countries have been executing major initiatives to tap
the vast potential of the Internet for improving and perfecting the governing process
• Need for a comparative perspective wherein, in response to the new global reality, public
administration must effectively utilise a comparative outlook that incorporates non-western as
well as more developed systems
• The impact of globalisation has thus been a mixed one.

Administrative World Page 50

 PAPER 01

Administrative World Page 51

 PAPER 01

Administrative World Page 52

 PAPER 01

1. Scientific Management

F.W. Taylor
• Born in Germantown, Pennsylvania in 1856.
• In 1873, at the age of 18 he joined the Enterprise Hydraulic Works and served as apprentice for
4 years without wages.
• In 1878, he went to work at the Midvale Steel company as a labourer and over years he
promoted as gang-boss, foreman, research director and finally became Chief Engineer in 1884.
• Received master degree in Mechanical Engineering
• Published a large number of papers.
• He invented a cutting tool, a steel hammer, hydraulic power loading machine, tool feeding
mechanism and a boring and turning mill.
• From 1901, he devoted his time for research for improving the techniques of scientific
management till his death on March, 1915.
• Taylor is important and interesting not only because of his work, but also because of his
personality
Major Writing Of Taylor
• A piece rate system (1885)
• Shop management (1903)
• The art of cutting metal (1906)
• The principles of scientific management (1911)
• The testimony before a special committee of the House of Representatives (1912)

Soldiering
• 3 things for best results

1. Trained staff

2. Qualified management

3. Cooperative workers

• He noticed a phenomenon of workers purposely operating below their capacity and called this
phenomenon as ‘soldiering’ or ‘skiving’.

• 3 reasons for soldiering –

1. Deliberately less production by workers

2. Non-incentive wage systems

Administrative World Page 53

 PAPER 01

3. Unscientific methods

Piece rate system

In this he propounded 3 basic principles of wage administration:-
• Observation of work through time study ( to complete the work and to determine the
standard rate) for completion of work
• Differential rate system for completing piece-work
• Payment to men, not to the position

In Shop Management
• mentioned workshop organisation & management.
• he focused basically on organization & management of workshop.
• He dealt about the need to maintain low production unit costs and payment of high wages,
applying scientific methods of research, standardisation of working conditions, need for
training and cooperative relation between workers and management.
• Art of cutting metal:- the paper based on most exhaustive series of experiments (26 Years).
• This achievement is considered more important than Taylor’s other contribution
• He developed cutting tool for steel, motion and time study, and analysed how workers handle
materials, machines and tools when they perform different works.

Taylor on deficiencies of Prevailing management system

• Management had no clear understanding of worker-management responsibilities
• Lack of effective standard of work
• Lack of job clarity which promotes soldiering of work
• Restricted output because of soldiering
• Failure of management to offer proper incentives to workers to overcome the soldiering
• Most decision by management were unscientific
• Lack of proper studies about division of work among departments
• Placement of workers without consideration of their abilities, aptitude and interests.

Development of scientific management

• The term scientific management was coined by Louis Brandies.
• Taylor initially opposed to the phrase thinking that it sound too academic.
• But later used it as the title of monograph the principle of scientific management
• According to Taylor, “Scientific management is the art of knowing what you want your men to do
& then see that they do it in most efficient manner.”

Need to develop scientific management

 During the later part of the 19th century a new industrial climate began to descend upon
American business giving rise to the growth of managerial class.
 The practice of management began to change from day to day problem solving approach to a
more all-inclusive, comprehensive, long term approach to grapple with emerging managerial
problem.
Taylor’s Concept of Management
 According to Taylor, Management is a true science resting upon clearly defined laws, rules and
principles. The same principles could be applied with equal force to all social activities.

Administrative World Page 54

 PAPER 01

 The principle object of management, is to secure the maximum prosperity for the employer,
coupled with maximum prosperity for each employees
 Scientific management was concerned with application of scientific methods to managerial
practices & production processes in industrial organization.
 It focused on the lowest level of organization
 Taylor believed that all work processes could be separated into units, and efficiency of each unit
could be tested and improved upon using scientific techniques.
 These technique could be extended upwards in the organization so that it becomes rational &
efficient.
Taylor’s Assumptions
 One best way of doing every job. Management role is to lay down standard of work
 Organizational functioning can be improved by adopting scientific method
 A good worker is one who does not initiate action but follows the order of management
 Every worker is an economic man i.e. he is motivated by monetary factors

Scientific Management:- 4 Basic principles

Development of true science of work
O Developing one best way of doing jobs.
O If it is known as what constitute a fair day’s work, the worker is saved from the unnecessary
criticism of the boss, and enables the management to get the maximum work from worker.
O This needs a scientific investigation of large daily tasks under optimum condition.

Scientific selection and progressive development of workmen

O To ensure effective performance of scientifically developed work there is a need to select the
worker on scientific basis.
O It is the duty of management to study the character, nature and performance of each worker
with a view to finding out his limitations and possibilities of development.
O Scientific selection involves selecting a right person for a right job.
Bringing together of science of work & scientifically selected workers
O Taylor says, “you may develop all the science that you please and you may scientifically select
and train workmen just as much as you please, but unless someone brings the science and
workmen together all your labour will be lost”
O To enable the worker to do his job and to ensure that he may not slip back to the earlier
methods of doing work, there must be somebody to inspire the workers.
O Taylor felt that it is the responsibility of management
O He believed that workers are always willing to cooperate with the management but there is
always opposition from the side of management.
O He maintained that this process of bringing together causes the mental revolution.
Division of work & responsibility between worker & management
O Traditionally unequal distribution of responsibilities.
O Worker have more responsibilities than management
O Taylor emphasised on equal responsibilities between worker and management.
O Basic philosophy of these 4 principle may be summarized as
 Science, not rule of thumb
 Harmony, not discord
 Cooperation, not individualism

Administrative World Page 55

 PAPER 01

 Maximum output, in place of restricted output

 Development of each mean to his greatest efficiency and prosperity.
Mental Revolution
O Taylor was of the view that scientific management requires a great revolution that takes place
in the mental attitude of management as well as the workers.
O Instead of focusing on division of surplus, they should together turn their attention towards
increasing the size of surplus become so large that is becomes unnecessary to quarrel over how
it should be divided.
O It demands the realization of the fact that their mutual interest are not antagonistic, and
mutual prosperity is possible only through mutual cooperation.
O Taylor believed that there is no conflict in the interest of employees, workers and consumers.
O His major concern was that the results of higher productivity should equally benefit all;
employer, workers & consumers
Functional Foremanship
• Taylor is critical of “linear system” of organization in which each worker is subordinated to only
one boss. He replaced the system with what is called “functional foremanship”
• In this, the worker receives orders from 8 different specialized supervisors. He divided work not
only among the workers but also at the supervisory level.
• Of the 8 functional bosses, 4 are responsible for planning and remaining 4 for execution.
• The order of work and route clerk, the instruction card clerk, time and cost clerk, shop
disciplinarian are 4 planning bosses
• The gang boss, repair boss, speed-boss and inspector are 4 execution functional bosses.
• Taylor specified 9 qualities that will make good foreman:- education, technical knowledge,
manual dexterity and strength, tact, energy, grit, honesty, judgement and good health.
Taylor’s followers
Henry L. Gantt :-
O He improved the task & bonus system of incentive pay
O He emphasised the “habit of industry” he said that organization develop certain habitual ways
of doing things. Hence management should set up good habits in the initial stages.
O He designed a chart on which progress of work could be plotted continuously against time.
Frank & Lillian Gilbreth
O They invented the “flow process chart” to help in elimination of unnecessary steps in an
operation.
O They laid the foundation of modern motion & time study.
Morris L. Cooke
O He applied the principle & technique of scientific management to government as well as
educational fields
Criticism
Oliver Sheldon, MP Follett, Elton Mayo, Peter Drucker and other criticised Taylor's ideas
• Pro-capitalist theory :- it emerged at a time when capitalist development had reached the
stage of requiring organizational changes in the functioning of industrial enterprise.
• Partial theory :- focus on shop floor, neglected higher level of organization.
• Mechanistic theory :- undermined human aspects. Treated worker as a machine
• Dehumanising theory :- human can be motivated by money and not by social & psychological
factors.
O Opposition from trade union

Administrative World Page 56

 PAPER 01

 trade union were against the method of increasing output by the introduction of premium
bonus system.
 They considered that Taylorism as not only destroying trade unionism, but also destroying the
principle of collective bargaining.
O Opposition by managers
 Those who wanted quick promotions to the high managerial positions without any merit
based on higher education, opposed Taylor’s stand, which advocated training by highly
trained experts.
 Also their work and responsibilities increased under Taylorism.
O Lack of understanding of anatomy of work
 First, the work gets de-personalised and the worker becomes a mere cog in the machine.
 The worker lacks the sense of participation in the work.
 Secondly, Taylorism may lead to automation of workers, which may have psychological and
neurological consequence.
 Thirdly, Taylor's division of work has severely been criticised.
Criticism of functional foremanship:-
 it will lead to confusion when each worker kept under the control of 8 supervisors
 A worker may not be able to satisfy 8 supervisors in all aspects
Positive criticism
• It is significant to note that Taylor himself recognised the potential for abuse of his methods.
• Some argue that current literature presents a partial view of Taylor's work. He anticipated several
key motivational strategies generally associated with human relations movement
• he created sense of mission
• Increased two-way communication
• Understood that higher needs are also important as against economic-man approach
• Used esteem as a motivator
• Gave workers a chance of self-actualization
• It is also argued that his writing show that he used managers to realise that technical success
requires enhanced human relations; and to get an accurate sense of Taylor's message, one has to
read his own account.
Neo-Taylorism
• According to this, the major reasons for dysfunctionality of public sector is:-
 The high cost of subsidizing the public service
 Lack of accountability of administrators
• Public organization are geared to routine and maintenance administration rather than adopt to
dynamics of rapid social change.
• The top-down management, style has been called Taylorism, where management drives
workers to maximum efficiencies and upper management provides decisions with little inputs.
• Taylorism is embedded in our modern culture. Critics are now referring to this culture as
Neo-Taylorism

Relevance of Taylorism
• It spread from US to all parts of worlds. It is being followed in India even today. This shows its
importance and relevance to organization irrespective of nature of economy
• Managers could monitor employees behaviours & pay the employees according to their
working performance

Administrative World Page 57

 PAPER 01

• Managers should carefully select workers and develop their skills.

• Managers should have scientific research to every movement of workers and replace the old
ones.

Administrative World Page 58

 PAPER 01

2. Henry Fayol

Henri Fayol
O Born in Turkey in 1841.
O Educated in France. At the age of 19 he started his career as engineer.
O He worked as an engineer in a mining company. By 1888, he had raised to the position of
managing director of the company.
O He was one of the successful managing directors under whom the company achieved great
financial success.
O Based on his experience he wrote a book “General and Industrial Management” (1916)
O His papers on ‘the theory of administration in the state’ (1923) is considered as a major
contribution to the theory of public administration.
O Fayol:- Founder of Managerial Approach.
O Although scientific management was for long considered an American invention and rooted in
the writing of Taylor.
O Fayol's writing in fact precede those of Taylor.
O Importance of Fayol’s ideas was discovered outside Europe only after the translation of his
works into English.
Administration & Management
O Fayol’s work was translated into English by Constance Storrs.
O French Title :- administration industrially et Generale
O English Title:- General and Industrial Management.
O This created confusion as well as disagreement among scholars.
O Brodie:- If one has to go by Storrs’ translation, one cannot avoid the feeling that Fayol was
mostly concerned with industrial management, which would be a mistake. The better &
correct term would have been “business & Gernal Administration”
Universal Administrative theory
O A widespread tendency in western country was to draw a distinction between management
(activity confined to industrial undertaking) & public Administration (Conducting governmental
activities)
O Fayol believed that such distinction is false and misleading.
O To him, distinction based on purpose of activity is untenable.
The totality of activities of an industrial undertaking is divided into 6 groups:-
1) Technical Activities:- production, manufacture, adaptation.
2) Commercial activities:- Buying, selling and exchange
3) Financial activities:- search for and optimum use of capital
4) Security activities:- protection of property & Persons
5) Accounting activities:- stock-taking, balance sheets, costs and statistics.

Administrative World Page 59

 PAPER 01

6) Managerial activities:- management as a function, a kind of activities. Element of this activity

includes; planning, organisation, command, coordination and control.
Management was not being taught and was not part of the curriculum. This was because of absence of
theory. His “general and industrial management” is an attempt to fill this gap.

Elements of Management
1) Planning:- Fayol used the French term ‘Prevoyance” (to foresee). The plan should have the
characteristics of unity, continuity, flexibility & precision. s
2) Organization:- this is needed to create a structure of duties & functions for the attainment of
the objective.
3) Command:- needed for setting the human organization in motion to achieve the objective of
the broader organization.
4) Coordination:- it consists of working together and harmonizing all activity and efforts so as to
facilitate the working of the organization.
5) Control:- to ensure everything occurs in conformity with established rules & expressed
commands.
Attribute of Manager
O Fayol suggest that managers should have the following attributes
1. Physical :- Health, vigour and appearance
2. Mental :- ability to understand and learn, judgement, mental vigour and adaptability
3. Moral:- Firmness and willingness to accept responsibility
4. General education:- General acquaintance with matters not belonging exclusively to function
performed
5. Special knowledge:- of function being handled
6. Experience:- knowledge arising from the work proper.
Principle of Administration
O Fayol States that the principles of administration are not rigid. They must be capable of
adaptation to various enterprise and setting. He derives 14 principles
1) Division of work:- more & better work with same effort
2) Authority & Responsibility:- authority should be commensurate with responsibilities.
3) Discipline:- obedience should be observed
4) Unity of command:- for any action, an employee should have only one boss
5) Unity of direction:- one head and one plan for each activity.
6) Subordination of individual interest to general interest:- interest of one employee or group
should not prevail over that of the total organization.
7) Remuneration of personnel:- remuneration should be fair and afford satisfaction to both
personnel and firm.
8) centralization:- the degree of initiative left to the managers varies depending upon top
managers, subordinated and business condition.
9) Scalar chain (Hierarchy):- the line of authority of superiors ranging from the ultimate
authority to the lowest ranks.
10) Order(Placement):- once the basic job structure has been devised and the personnel to fill
the various slots have been selected, each employee occupies that job.
11) Equity:- to motivation personnel to fulfil their duties with devotion & loyalty there must be
equity based on kindness & justice in employer-employee relations.

Administrative World Page 60

 PAPER 01

12) Stability of tenure of personnel:- suitable condition should be created to minimise turnover
of employees.
13) Initiatives:- the ability to think afresh would act as a powerful motivator of human behaviour
14) Esprit de corps:- Harmony, union among the personnel of an organization is a source of great
strength in organization.
Need for administrative training
O Fayol is a pioneer in suggesting the need for systematic training in administration.
O He suggest that training is a continuous process, starting from the school and covering in-
service training of the employees within the organization.
O He considers every superior officer in an organization as a teacher to this immediate
subordinates.
Gangplank
O It refers to the need for “level jumping” in a hierarchical organization.
O Although he places emphasis on formal organization, he is alive to the dangers of conformity to
hierarchy and formalism.
O ‘it is an error to depart needlessly from the line of authority, but it is even greater one to keep
it when detrimental to the business.
O While suggesting “Gangplank”, Fayol is rather cautious.
O He feels that it may be less relevant to govt. agencies in which the lines of authority are less
clearer, than in private organization.
Fayol
 He concentrated on the top level i.e. managerial activities
 He worked from top to bottom theory
 He emphasised on the function of management as a whole and principle involved therein
 he focused on improving overall administration by observing certain principles.
 His approach was flexible
 He advocated “unity of command.
 He provided systematic theory of administration
Taylor
 He concentrated on the operative and shop floor level
 He worked from bottom to top level
 He emphasised on the efficiency of workers & managers in actual production
 He focused on increasing productivity through work simplification and standardization
 His approach was relatively rigid.
 He advocated “functional foremanship”
 He provided a science of industrial management
Taylor & Fayol
(Similarities)
 Both had a common objective efficiency & economy
 Both stressed on practical aspect
 Both believed in concept of “economic man”
 Both believed that managerial qualities can be acquired through training.
 Both applied scientific method to problem of management.
 Both realised the universality of management.

Criticism Of Fayol

Administrative World Page 61

 PAPER 01

1) Un-scientific theory:- his ideas are based on personal experiences.

2) Mechanistic theory:- neglect human aspect
3) Dehumanising theory:- concept of economic man.
4) Normative theory:- practically difficult to follow
Criticised by later thinkers; human relation school, behavioralist etc.

Criticism by Peter Drucker

 Peter Drucker (1909-2005) was one of the most widely known and influential thinker on
management.
 He was among the first (After Taylor and Fayol) to depict management as a distinct
functions and being a manager as a distinct responsibility.
 His writing showed real understanding of and sympathy for the difficulties and demands
faced by managers.
 Mechanistic model of an ideal organization was imposed on a living business.
 14 principles of Fayol overlap.
 Narrow functional base:- although functionalism is empirically convenient, it is found to be
deficient in design and logic.
 Besides, the empirical base used by Fayol for generating a full-fledged theory of
management is too narrow. fayol, proceeded to theorise on functionalism on the basis of
the functions undertaken in a manufacturing company.
 Contemporary organization are definitely larger in size and much more complex.
 Clash of Unity of command & Coordination :- To Fayol, the principle of unity of command
is of supreme importance.
 It would be dysfunctional to strengthen the hierarchy, where the sense of unity is less,
personal contact is limited and real difference of outlook are desirable.
 Chief executive would face problem of coordination.

Conclusion
We need to evaluate fayol “contextually” rather than finding shortcoming in his theory, it
should be appreciated for laying don some fundamentally strong principles.
Among the early writer on management, fayol has the unique distinction of attempting to build
a universal science of management applicable to commerce, industry, politics, religion, war or
philanthropy.
 He did not altogether neglect human side of organization. Bertram Gross said “To fayol
personnel is the essence of the organization.”
 He was also careful to state that his principle not be considered as rigid rules.
 He developed administration into a science.
 He gave the idea of :Gang-plank” & need for administrative training
 Fayol was pioneer of the concept of viewing management as being made up of functions
Even peter Drucker, a severe critic of Fayol’s Theory of functionalism, acknowledge that Fayol’s
model is still unsurpassed in some respect.
Fayol’s functional organization is still the best way to structure a small business; especially a small
manufacturing business.

Administrative World Page 62

 PAPER 01

Administrative World Page 63

 PAPER 01

3. Luther Gulick & Lyndall Urwick

Luther Gulick & Lyndall Urwick

Life & Works
The classical theory reached its zenith in 1937 when “Papers on the science of Administration” by
Gulick & Urwick was published.
• Luther Halsey Gulick III (1892-1993), was born in Japan. He spent there 12 years and then came
to USA.
• Authored more than 20 books and research studies.
• Lyndall Fownes Urwick (1891-1983) was born in UK. He joined family business and during the
first world war he joined the army.
• Gullick and Urwick had rich experience in the working of the civil service, military and industrial
organizations. It is because of this that one can finds continued reference to discipline and
efficiency in their writing.
• They synthesized the classical theory of organization which is also known as the Administrative
management theory. They believed that it is possible to develop a science of administration
based on principles.

Structure of Administration
• Urwick remarks that “It is possible for humanity to advance its knowledge of organization
unless the factor on structure is isolate from other considerations, however artificial such
isolation may appear.”
• He traces a large proportion of friction and confusion in society with its major consequences to
the faulty structural arrangements in organizations.
• He defined organizations as determining activities that are necessary for a purpose and
arranging them in groups, which may be assigned to the individuals. Thus while the
identifications of the tasks and their grouping is given top priority, the individuals to whom
these functions are entrusted com later.
• Urwick was aware of the facts that to begin with one may not have a clean slate but he suggest
that one may assume to have a clean slate and design an ideal structure of organizations. Any
alternations, if required may be made later.
• While conceiving an organization chiefly as a designing process, Urwick felt that lack of design
is illogical, cruel, wasteful and inefficient.
• Illogical because it is inconceivable to appoint a person and pay him wages without an idea of
the position he is likely to occupy.
• Cruel when an organizational member do not know the qualifications required for the job and
duties assigned to him in the job situations.
• Wasteful because if the job are not arranged properly, functional specialization is not possible
and training people to occupy jobs falling vacant due to death or retirement becomes difficult.
• Inefficient because the supervisors have nothing to fall back except on personalities in the
event of conflict and confusion.

Administrative World Page 64

 PAPER 01

Principles
• Gulick enumerated 10 principles of organizations which are:-
1. Division of work or specialization
2. Bases of departmental organizations
3. Coordination through hierarchy
4. Deliberate coordination
5. Coordination through committee
6. Decentralization
7. Unity of command
8. Staff and line
9. Delegation
10. Span of control.
Among them, Gulick lay special emphasis on division of work. The other classical theorist also made the
division of labour as the central tenet.

Principles given by Urwick

• Urwick derived 29 principles of management and a host of sub-principles by integrating Fayol’s
14 principle, Mooney & Reiley’s principles of effect, Taylor’s principle of management, and
ideas of Follett and Graicunas. They are:-
1. Investigation 2. Forecasting 3. planning 4. appropriateness 5. organizations 6. coordination 7. order
8. command 9. control 10. the coordinative principles 11. authority 12. scalar process 13. assignment of
functions 14. leadership 15. delegation 16. functional definition 17. determinative 188. applicative 19.
interpretative 20. the general interest 21. centralization 22. staffing 23. spirit 24. selection and
placement 25. rewards and sanctions 26. initiative 27. equity 28. discipline 29. stability.
Urwick felt that the administrative organization is still an unexplored field and there are many unknown
factors for a fullers understanding.

Executive Functions
• Gulick identified the executive functions and coined the acronym POSDCORB
P:- Planning:- working out in brad outline the things to be done, the method fro doing them
O:- Organising:- establishment of the formal structure of authority through which the work is
subdivided, arranged, defined and coordinated.
S:- Staffing:- Recruitment and training of the personnel and their conditions of work
D:- Directing:- making decision and issuing order and instructions
CO:- Coordinating:- inter-relating the work of various parts of organizations.
R:- Reporting :- informing the superiors within the agency to whom the executive is responsible about
what is going on
B:- Budgeting:- Fiscal planning, control and accounting

Urwick’s 8 principle of organizations

Urwick specified 8 principles of organizations
1. Principle of objective:- an organization should have an expressed purpose
2. Principle of correspondence:- at all levels, authority & responsibility must be co-terminus and
co-equal
3. Principle of responsibility:- superiors must take the responsibilities
4. Scalar principles:- a pyramidal type of structure should be built in an organization

Administrative World Page 65

 PAPER 01

5. Principle of span of control:- no supervisors can supervise directly the work of more than 5-6
subordinate whose works interlocks
6. Principle of specialization:- limiting one’s work to a single function
7. Principle of coordination:- harmonious functioning of all parts of organization
8. Principle of definition:- clearly defining duties, authority and responsibilities of each positions

Theory of Departmentalization
(Bases of department)
• It address the problem of bases on which work may be divided and departments created.
• Luther Gulick identifies 4 bases popularly known as 4Ps of Gulick
1. Purpose (Function)
2. Process (skills)
3. Persons (clientele)
4. Place ( territory)
1. Purpose:-
• It identify the major functions and goals of organization and create departments for each of the
functions
• For example education departments
• Advantage of such departments is that they are self-contained organization and low
coordination costs are involved in running the departments.
• Disadvantages:- lack of possibility of further work division, failure to use updated technology
and there may not be enough work for specialist working in the departments.
2. Process :-
• Some departments are created based on the process or a skill involved in its functioning. All
work based on similar process are grouped together.
• For example , O & M division in department of administrative reforms in Govt. of India,
department of accounting.
• Advantage:- most effective division of work and specialisation. Maximum use of labour and
machinery for mass production.
• Disadvantages:- it result is purposeless division and growth of departments.
3. Persons:-
• To serve a particular kind of person who need special attention
• For example old age, women, child, SC/ST
• Advantage:- the people who work acquire specialised skill over a period of time to serve that
particular clientele
• Disadvantage:- coordination between such organizations becomes difficult on account of
overlapping and duplication
4. Place:-
• Here all functions performed in a given area are clubbed together.
• For example tribal area department
• Advantage:- useful for intensive development of any area. The members of such departments
also becomes area specialists.
• Disadvantages:- lack of functional specialisation & growth.

Criticism of theory of departmentalization

• Bases of departments are incompatible with each other
• They are very vague

Administrative World Page 66

 PAPER 01

• There is also overlapping between them.

• Organization grow according to the dictates of the situation. Thus all the 4 bases might even
get adopted in a single organization. For example, defence department based on purpose may
have geographical subdivision as the basis of its working. They may have clientele sub unit
which looks after the welfare of the war-widow. There may be an accounts division in the
departments based on skill specialisation.

Single Top Executive or Unity of Command

• One director or executive should head organizations.
• Urwick warned against the use of committee for purposes of administration
“Boards and commissions are turned out to be failures. They are inevitably slow, cumbersome wasteful
and ineffective. They do not cooperate with other agencies. Well managed administrative unit in the
government are always headed by a single administrators”

Principle of Staff
• It is born out from the principle of unity of command. When all authority rests with the leader,
he requires assistance in running the organizations
• This staff assistance to the executive is of 2 categories:-
1. Special staff
2. General staff
 Special Staff:- these are the experts who have to devote their time exclusively to the knowing,
thinking and planning functions. They must not be given any administrative authority. They
should get authority of ideas.
 General Staff:- public officials in their every day work do not have time to read, think and meet
their subordinates; hence general staff assists them in their central task of command, control
and coordination

Principle of Delegation
• It emphasises on the need for administrators to keep the requisite authority with them to act,
and delegate the rest of it to their subordinates.
• Urwick maintains that “Lack of courage to delegate properly and knowledge of how to do it, is
one of the most general causes of failure in organization
• He also maintain that authority and responsibility must be co-terminus, co-equal and defined.
Thus these authors empathised the principle of “correspondence of responsibility and
authority.

The principle of span of control

• Emphasis that a supervisor cannot control more than a certain number of subordinates.
• This principle is based on the psychological conception of “span of attention”. When the
number of subordinates increases arithmetically, there is a geometrical increase in all possible
combinations of relationships which may demand the attention of supervisor.
• There is no agreement among the writers about the exact limit of span of control.
• Gulick identifies various factors that may influence the optimum span:-
– Capacity of an individual executive
– Nature of work performed
– Stability of an organization
– Geographical proximity to those who are supervised.

Administrative World Page 67

 PAPER 01

Human factor
• Gulick in his later writing has noted that much has happened to affect the field of public
administration and his analysis of its nature.
• Based upon 50 years of his analysis, he notes that “after all, governments are constituted of
human beings, are run by human beings and have as their main job: helping, controlling and
serving human beings”
• Human beings are the dynamic factors that are intrinsic in the study of administration.
• According to him, main function of state:- human welfare, survival and improvement, to meet
the challenges of ever changing environment and not war.
• Gulick brings more decentralization
• He also suggest that Public administration should forget the non-existent economic man, and
includes human welfare and compassion its embrace

Criticism
Criticism of principle of organizations
• While writing so much about principles, they have not made it clear as to what they meant by
them
• Normally principles are said to be universal truths, subjects to verifications. But such universal
validity appears to be absent in them.
• L.D. white says:-
 While the terms line, staff, auxiliary agencies, hierarchy authority etc. are useful terms
for describing administrative situations, they are no more than that.
 They are not rules. They suggest only working rules of conduct which wide experience
seem to have validated.

Criticism by Herbert Simon

• Principles are homely proverbs, myths, slogans, inanities
• It is fatal defect of the current principles of administration that, like proverbs they occurs in
pairs. For almost every principle one can find an equally acceptable contradictory principles
• One of the proverbs says that administrative efficiency is increased by specialization. But it is
not made clear whether area specialization is good or functional specialization is better.
• Contradiction between specialization and unity of command.
• One principle asserts that efficiency increased by reducing the level of organization. This is
supposed to help the simplification of procedures. But when level are thus reduced the span of
control increased.
• They are at best criteria for describing and diagnosing administrative situations.
• Perhaps the most critical failure of classical administrative science is its incapacity to confronts
theory with evidence.

Other criticisms
• Neglect of informal process:- they have shown concern only for formal organization neglecting
informal variables. Organizations do not conform to the formal model all the time.
• Neglect of dynamic nature of administration: administration function in an ever changing
setting.
As Alfred diamont says, most of the conceptual constraints have a steady state bias. The organizations
and goals undergo a constant change as a result of the economic, social or political stimuli.
Gulick to some extent was aware of the role of change.

Administrative World Page 68

 PAPER 01

Administrative World Page 69

 PAPER 01

Administrative World Page 70

 PAPER 01

4. James D. Mooney & Alan C. Reiley

James D. Mooney & Alan C. Reiley

Life & Works
• Mooney & Reiley were the first in USA to formulate the classical theory in 1931, when their
book “Onward Industry” was published
• Later, in 1939 they republished the same book under a new title “The Principles of
Organization”
• They believed that the principles formed the basis for efficient functioning of organization.
• They popularised organization charts and manuals.
• They enunciated 4 principles.

4 PRINCIPLES BY MOONEY & REILEY

1. Coordination:-
• Mooney defined coordination as “the orderly arrangement of group effort to provide
unity of action in the pursuit of a common purpose”
• Mooney maintained that it was ‘coordination’ that is the fundamental principle of any
human organization.
• He further writes “the term organization and the principles that govern it are inherent
in every form of concerted effort, even where there are not more than two persons
involved.
• He observed, “Coordination includes within itself all other principles which are
subordinate to it, and though which it operates”
2. Scalar Process:-
• They emphasised hierarchy in organizational design and called it the ‘scalar process’
• To them, it constitutes the universal process of coordination, through which the
supreme coordinating authority operates throughout.
• They states that the scalar process has its own principle, process and effect. These they
referred as leadership, delegation, functional definition.
3. Functional differentiation:-
• They suggested that the functional principle should be followed in organizing takes into
departments.
• They explain, “the difference between general and colonels is one of the gradation in
authority and is therefore, scalar. The difference between an officer of infantry and an
officer of artillery, however, is functional, because there is distinct difference in the
nature of their duties’

Administrative World Page 71

 PAPER 01

• Functionalism means, according to them, the differentiation between kinds of duties.

They say that all jobs involve one of the 3 functions:-
o Determinative function (setting goals)
o Application function (acting purposively to achieve the goals
o Interpretative function (Decision making)
• Line and Staff:-
• They suggested that the line management should be vested with authority to get things
done.
• At the same time, they recognised the role of staff in providing advice and information.
according to Mooney, the staff is “an expansion of the personality of the executive. It means more
eyes, more ears and more hands to aid him in forming and carrying out his plans”

Significance & Relevance of Classical theory

 Despite criticism, the principles of administration continue to found relevant even today.
 No textbook on administration is complete without a discussion of the principles of
organization. The simple truths underlying the propositions stated as principles by the classical
thinkers cannot be denied.
 While calling them proverbs, Simon devoted considerably to these principles in his writings.
Even he could not discard them.
 We find working of these principles such as division of work, coordination, delegation etc. in
the present day organizations. Organization cannot function without adhering to these
principles.
 Many people have criticised the principles, but they have not developed any alternative to
these principles.
 With some modification, these principles can find relevance in the present context also.

“The failure of classical science of administration is its capacity to confront theory with evidence”
Discuss.
Answer:-
The classical science of administration is also known as “formal organization theory” or “traditional
theory” or the “structural theory”. This theory of administration was developed during the years
between first and second world wars. The most important concern of classical theory is the formulation
of certain universal principles of organization.
The classical administrative science’s most critical failure is its capacity to “confront theory with
evidence”. The principles tend to dissolve when put to test; partly this is because of the consequence of
difficulties in operation. It is not possible to conduct controlled experiments to test the theories time
and again
The classical administrative theory is also criticised for its neglect of the human elements in the
organization. In the writing of classical thinkers, there are certain trends, which considered humans are
insignificant in administrative processes. In the first place, there is a tendency to treat the human being
as an inert instrument incapable of individual contribution based on personal qualifications. It is this
critical failure that gave rise to the human relations movement and behavioural studies. The new
developments compensated the failure of classical theorists by viewing organizations essentially as
human associations. Being living entities the humans are both psychological and physiological
processes involved in their behaviour. Hence human element cannot be taken for granted.
The dynamic nature of administration and ever changing setting in which it functions is not given
adequate attention by the classical theorists.

Administrative World Page 72

 PAPER 01

More practice Questions

Despite the positive and negative aspects of classical theory of administration, it is impossible to
understand modern government without acknowledging the legacy of scientific management and
general administrative theories.

Is Peter Drucker justified in saying, “management principles should not tell us what to do, but only tell
us what no to do”? Comment.

Administrative World Page 73

 PAPER 01

5. Max Weber

Max Weber (Bureaucratic Theory)

Life & works
• Max Weber (1864-1920) was born in western Germany, and he studied law & economics.
• He wrote a number f appears on law, and social, political and economic factors of his times.
• His major writings:
– The theory of economic and social organizations
– General economics history
– Protestant ethic and spirit of capitalism (1904)
• Weber always preferred knowledge obtained through practical
experience than library research. His writings reflects the social
conditions of Germany of his time.
• Weber wrote in German, and his works were not known to the
English-Speaking world.
– In 1946, the Oxford University Press published Gerth
and Mills’s translation “from Max Weber’s essays in
Sociology"

Authority, Organization and Legitimacy

• Among Weber’s works on administration, his theories on
domination, leadership and legitimacy merit special mention.
• Weber differentiated authority, power and control.
• To him, a person could be said to posses power, if in a social relationship, his will could be
enforced despite resistance. And exercise of such power becomes controlled.
• Power:- to him, a person could be said to posses power, if in a social relationship, his will could
be enforced despite resistance
• Authority:- authority manifests when a command of definite content elicits obedience on the
part of specific individual.
• Authority is state of reality where a person willingly complies with legitimate commands or
order
• In power there is no willing obedience.

Component of Authority
• Weber identified 5 component of authority:-
1. An individual or a body of individuals who rules
2. And individual or body of individuals who are ruled
3. The will of the rulers to influence the conduct of the ruled and an expression of that will or
command

Administrative World Page 74

 PAPER 01

4. Evidence of the influence of the rules in terms of the objective degree of command and
5. Direct and indirect evidence of that influence in terms of the subjective acceptance with which
the rules obey the command
An authority exists as long as it is accepted as legitimate by the ruled. Explaining the authority of
different kinds in various organization, Weber concluded that “All administration means domination”

People in organization
Weber categorised persons in the organization in to 4 types:-
1. Those who are accustomed to obey commands
2. Those who are personally interested in seeing the existing domination continue
3. Those who participate in that domination
4. Those who holds themselves in readiness for the exercise of functions

Types of Authority
• Weber defined administration as domination or exercise of authority while most other
administrative scientists defined it as service or performance of duty.
• He identified 3 forms of legitimacy.
1. Traditional authority
2. Charismatic authority
3. Legal authority

Traditional Authority
• Traditional authority derives its legitimacy from the acceptance of its hoary past.
• The persons exercising authority generally are called ‘masters’, who enjoy personal authority
by virtue of their inherited status.
• Their commands carry legitimacy because of the custom but they can also orders based on
their personal decision.
• The persons who obey the orders are called ‘followers”
• Under this type of authority, the administration becomes irrational as development of rational
regulations is impeded as there would be no staff with formal and technical training.
• Thus in the system of traditional authority, the officials carrying out the orders look like the
household staff.
• However, all the actions are legitimised in the name of tradition and customs.

Charismatic Authority
• Charisma and its form the basis for legitimacy.
• Weber defined charisma as the quality of an individual personality by virtue of which he is set
apart from ordinary men.
• The persons who receive the commands obey the leader because they believe in his
extraordinary abilities rather than the stipulated rules or the dignity of a position.
• These ‘disciple officials’ constitute the organization and their sphere of activity and power of
command depends upon the likes and dislikes of the leader.

Legal authority
• Manifestations of legal authority are found in organization where rules are applied judicially
and in accordance with ascertainable principle valid for all members in the organization.
• The members who exercise the power are the superiors who are appointed or elected by legal
procedures to maintain the legal order.

Administrative World Page 75

 PAPER 01

Weber believed that all the three types of authority claim legitimacy as long as the ‘ruled’ accept them.
The authority ceases to carry legitimacy when the rulers do illegal things, ignore the traditions and lose
charisma
• He states that ‘pure type’ of authority are always found in combination rather than separated
from each other.
• He preferred the legal type of authority. He maintains that legal authority alone Is suitable for
the modern governments and designed his model of bureaucracy keeping the ‘legal-rationality’
in mind

Bureaucracy
• It was Mr. de Gourney, French economist, who used the word ‘bureaucracy’ for the first time,
during the first half of the 18th century.
• Weber was the first social scientist who made a systematic study of bureaucracy and its
characteristics.
• The weberian model of bureaucracy is a source of inspiration to many because it largely
reflects the spirit of modern bureaucracy. That is the reason why Weberian model is being used
as a reference base for other models on bureaucracy.
• Weber never defined bureaucracy; he only described its characteristics.
• To him, bureaucracy is “an administrative body of appointed officials”. In included explicitly
appointed officials only leaving out the elected ones.

Model of Bureaucracy
• The model of legal-rational bureaucracy designed by Weber has the following characteristics:-
1. Official business is conducted on a continuous basis.
2. An administrative agency functions in accordance with stipulated rules, and is characterised by
three inter-related attributes:-
a) The powers and functions of each official is delimited in terms of impersonal criteria
b) The official is given matching authority to carry out his responsibility
c) The means of compulsion at his disposal are strictly limited and the conditions under
which their employment is legitimate are clearly defined.
3. Every official and every office is part of a hierarchy of authority. Higher officials or offices
supervise while lower offices and officials have the right to appeal
4. Officials do not own the resources necessary for rendering the duties, but they are accountable
for use of official resources. Official business and private affairs, official revenue and private
incomes are strictly separated.
5. Offices cannot be filled by incumbent as private property which can be sold and inherited.
6. Administration is conducted on the basis of written documents.

Elements of Bureaucracy
In Weberian model of bureaucracy the main element are:-
1) The impersonal order
2) Rules
3) Sphere of competence
4) Hierarchy
5) Personal and public ends
6) Written documents
7) Monocratic type

Administrative World Page 76

 PAPER 01

1. Impersonal Order:-
• weber emphasises that the official should perform their duties in an impersonal manner.
• The idea of impersonal order should orient the actions of the bureaucrats both in the issuance
of the commands to subordinates and their obedience to them.
• According to Merton, “authority, the power of control which derives from an acknowledged
status, inheres in the office, not in the particular person who performs the official role”
• Weber emphasises on de-personalization of relationship in bureaucracy.
2. Rules:-
• The fundamental characteristics of Weberian rational legal authority is the attribute of
continuous organization of official functions bound by rules
• These rules may be technical rules or norms
• In this regard Merton felt:- ‘adherence to the rules, originally conceived as a means, becomes
an end in itself.
• Rules becomes more important than the game
• This apart, rules cause procedural delays as they create complications in administration.
3. Sphere of Competence:-
• According to Weber a specified sphere of competence involves:
• A sphere of obligation to perform functions which have been marked off as part of a systematic
division of labour
• The provision of the incumbent with the necessary authority to carry out these functions
• The clearly defined means of compulsion subject to definite condition in their uses.
4. Hierarchy:-
• According to Weber every office and every official is a part of a hierarchy
• Under this system the lower office functions under the control of higher office
• He attaches greater importance to the principle of hierarchy in the organization of offices, and
also in regard to administrative staff who man them
5. Separation of Personal and Public ends:-
• Weber pleads for separation of administrative staff(official) from their ownership of the means
of administration
• Incumbent cannot use his office position for personal ends
• The office property is separated from personal property; at the same time the official is
accountable for the use of office property.
6. Written Documents:-
• Written documents are the hearts of Weberian bureaucracy
• All administrative acts, decision and rules are recorded in writing, even in cases where oral
discussion is the rule or is even mandatory
• These documents make the administration accountable to the people and provide a ready
reference for future action.
7. Monocratic Type:-
• It means certain functions performed by bureaucracy cannot be performed by any other
organization
• They monopolise certain functions and only the authorised official can perform that function,
makes them monocratic in nature
Mohit Bhattacharya deduced 2 sets of characteristics:-
• Structural characteristics
1. Division of work

Administrative World Page 77

 PAPER 01

2. Hierarchy
3. System of rules
4. Role specificity
• Behavioural characteristics
1. Rationality
2. Impersonality
3. Rule-orientation
4. Neutrality

Criticisms
• The weberian model of bureaucracy has attracted mainly on 3 points:_
1. Rationality in his model
2. Suitability of weberian model to administrative requirement of different places and changing
times
3. Whether the model can attain maximum efficiency as visualised by Weber

Critics of Max Weber & Post Weberian development

Critics

Robert Merton
• Questioned the rationality of the legal-rational model of Weber for it also produces certain
dysfunctional consequences.
• The structure especially its hierarchy and rules-which is rational in Weber’s sense, can easily
generate consequences which are unexpected and detrimental to attainment of objective of
organization.
• Adherence to the rules, originally conceived as a means, becomes an end in itself; there occurs
the familiar process of displacement of goals whereby “an instrumental value becomes a
terminal value”. Rules becomes more important than game
• He also opined that rigid rule orientation leads to “trained incapacity”
Philip Selznick
• Division of work in an organization ; sub-units set up goals of their own sometimes conflicting
with the organization as a whole
• He suggests the remedy for this is better coordination & not setting up of new departments
• Weberian model is insufficient in describing how bureaucrats will in fact behave, because the
officials have their own characteristics as social beings beyond those which the administrative
code specifies.
• Criticised weberian model for its neglect of the power which a bureaucrat assumes, whereby
he becomes increasingly pre-occupied with his own social position.
Talcott Parson:-
• Questioned the internal consistency of Weberian model.
• Weber expects the administrative staff to be technically superior as well as posses the right to
give order. But this itself gives rise to conflicts within bureaucracy, since it is not always
possible to ensue that high authority will be matched by equivalent professional skill.
• In such case the individual working will face the problem of whom to obey, the person with
right to command or the man with the greater expertise.
Peter Blau:-

Administrative World Page 78

 PAPER 01

• Weberian model cannot be applied to administrations of different places and times.

• Blau felt that fresh look has to be taken at the concept of rational administration
• In a changing environment, “the attainment of organisational objective depends on perpetual
change in the bureaucratic structure.” that is why efficiency cannot be guaranteed by tethering
the official to a set of rigid rules.
• Efficient administration is possible only when an individual is allowed to:-
• Identify with the purposes of the organization, and
• To adopt his behaviour to his perception of changing circumstances.
Alvin Goulder:-
• He opined that the promulgation of additional rules as a central mechanism produces tension
between the managers & the subordinates, leading to displacement of organizational goals.
• He distinguishes 2 major types of bureaucracies and analysed why people comply with the
bureaucracy:-
• Punishment-centred bureaucracy:- members of the organization conform reluctantly to
rules which they consider are imposed on them by an alien group
• Representative bureaucracy:- member regards rules as necessary on technical grounds
and in their own interest.
William Delaney:-
• He concluded that unless further ideal type are created, the existing Weberian work seem to
have little applicability outside western Europe and certain commonwealth countries and US.
Herbert Simon:-
• In his “administrative behaviour’, he maintained that variety of circumstances need varied
bureaucratic structures, and the so called timeless principles of Weberian model of
administration cannot suit to the ever changing circumstances of today’s modern world.
Simon & March:-
• Questioned efficiency
• Weber neglected the human behaviour in organization
• Maximum efficiency in the organization cannot be achieved by emphasising on mere structure
of bureaucracy without regard to its behaviour.
H.C. Creel & A.B. Spitzer:-
• Took objection to Weber’s claim that rational bureaucracy is a modern phenomenon.
• Creel asserted that almost all the characteristics of Weberian model existed in China by 200
B.C.
• Spitzer considers that the functions of 19th century “French Prefect” are far more
comprehensive than those attributed to Weber’s bureaucrat.

Other Criticism
• According to Parkinson, bureaucracies grow stupider by each year. Manager wish to appear
busy, so they increase their workload by creating paper and rules, filling out evaluation and
forms, and filing. Then they hire more assistants, who in turn require more of managerial time
for supervision
• Incompatible with development administration:-
• Strict adherence to rules result in delay and inefficiency in the administration.
• Carl Friedrich says:- the words “ideal” & “type”, under Weber’s ideal-type of bureaucracy,
cancel each other.

Administrative World Page 79

 PAPER 01

In Defence of Weber
• Weberian model provides reliability, stability and precision.
• Emphasis on documentation helps build up institutional memory.
• He was able to realise that bureaucracy was a threat to democracy.
• He constructed his model with respect to the conditions of Germany of his times.
• Weberian model includes both positive and negative elements
– Positive :- merit-based selection, no appropriation of official position by incumbent
– Negative:- impersonal order, rules, sphere of competence, hierarchy, technical rules,
written documents.
As the negative elements is give greater weightage in the model, the positive elements get gulfed and
enfeebled by the huge stream of negativism.

Relevance
• Despite several criticisms from scholars, the ideas of Weber on bureaucracy continue to be
relevant to understand the present administrative system. So far we have not been able to
evolve an alternative model to Weber’s bureaucracy.
• Weber is right in saying that when we are accustomed to the bureaucracy. We cannot think of
any other alternative. Today, we seen in practice this to be correct. The Afro-Asian countries
could get rid of alien rule, but not the bureaucratic established by the colonial rules.
• Whether it is capitalist society or socialist society, irrespective of the nature of economy, we
find the bureaucracy playing a very important role.
• We cannot think of implementation of all welfare and developmental programmes without
help of bureaucracy.
Hence, the bureaucracy of Weberian type continue to find its relevance even today.

Post-Weberian Development
Humanistic view
• It rejected the mechanistic and rigid view of the administration
• The argues in favour of a more social-psychological view of the organization
Public choice theory
• According to them, Weberian view is monocratic, mono-centric.
• They emphasised on methodological individualism and institutional pluralism
Critical theory
• Highly critical of Weber’s bureaucratic theory. It rejected the theory as being rigid, top-down,
means oriented.
• For administration to be efficient, it is required that it should be based on democratization,
humanisation, free flow of information etc.
New public service approach
• Weberian approach emphasised on a single actor paradigm and the importance of government
officials, but the need of the hour is a multiple-actor approach.
Marxist interpretation of bureaucracy
• Rejected the weber’s positivist and universalistic view on bureaucracy
• It emphasised that the bureaucracy is an instrument in the hands of the “haves” to protect and
promote their interest.
Situational/contingency theory

Administrative World Page 80

 PAPER 01

• It claims that thee is no best way to organize a corporation, to lead a company or to make
decision. Instead the optimal course of action in dependent upon the internal and external
factors such as size, environment, values, goals etc.

Administrative World Page 81

 PAPER 01

Administrative World Page 82

 PAPER 01

6. Mary Parker Follett

Mary Parker Follett (Dynamic Administration)

Life and Works
• Follett (1868-1933) was born in USA.
• She was influenced by her teachers.
• She went to Paris for a year for post-graduate studies.
• She published “The Speaker of the House of Representative” in 1896 while she was still a
college student.
• After her studies, she developed interest in social administration and social work.
• She did social work for women, children and slum dwellers.
• In 1912, she took to vocational guidance and became a member of the placement Bureau
Committee, Boston. In this capacity, she came in contact with industry and contributed to the
management thought.
• Thus, Follett a political scientist, turned her attention to social administration and the solution
to social problem and then smoothly to the realm of business management and administration
• She published the new state, creative experience, dynamic administration, lectures in business
organization edited by Urwick
• Her ideas provides a fascinating perspective on critical management and administrative themes
such as conflict, power, leadership etc.
• It is very difficult, almost impossible to summarise her administrative ideas and concepts.

Conflict
• Follett accords a very high importance to the problems of conflict in organization
• She advances the idea of “Constructive conflict” recognising thereby that conflicts should be
regarded as a normal process in any activity of organization by which socially valuable
difference register themselves for the enrichment of the all concerned.
• conflict is neither good or bad
• conflict is not warfare, but is only appearance of difference of opinion, interest.
• Because of individual difference, conflict is unavoidable in human organization.
• To Follett, conflict is a moment in the interaction of desires.
• Just as there are destructive ways of dealing with such moments, there are also constructive
ways.

Constructive Conflict
• She says;- “All Polishing is done by Friction”. We get music from violin by friction, discovered
fire through friction.
• Follett says that there are 3 ways of resolving a conflict:-
1. Domination

Administrative World Page 83

 PAPER 01

2. Compromise
3. Integration
Domination:-
• it is victory of one side over the other.
• Easiest way of resolving conflict.
• It is not successful in the long run.
• This is evident after the First World War
Compromise:-
• In this way, people settle most of their conflicts
• In this, each side gives up a little and settles the conflicts.
• Though it is popular method, rarely people want to compromise.
Integration:-
• It is the third method of resolving conflicts
• In this, two desires are integrated and neither side needs to sacrifice its desire.
• It has advantage compared to compromise.
• Compromise does not create but only deals with existing, whereas integration creates
something new, leads to invention and to the emergence of new values.
• Another advantage is that integration goes to the root of the problem and puts an end to the
conflict permanently.
• If we deal with conflicts through compromise, they may come up again in some other form, as
people are not always happy with fulfilment of only a part of the desire.
• Integration stabilises and conflicts are settled permanently.
• Follett is not unaware of the difficulties involved in achieving it.
• It is always not possible to achieve integration. E.g. when two men want to marry the same
women.
• If we are conscious of its advantages, we can try integration instead of compromise or
domination

Bases of Integration
• First step, is to bring the difference into the open instead of suppressing them. Means
understand real issue involved in conflicts
• Second step is breaking up of the whole i.e. to consider the demands of the both sides involved
in conflict and to break them into their constituent parts.
• Third step, anticipation. Anticipation dos not mean avoidance of conflicts but responding to it
differently.
• To Follett, integration is like a game of chess. Anticipation of response is by itself not enough;
there is need for preparation for response as well.
• Response is of two types:- circular and linear. Good example of circular response is the game of
tennis.
• Circular behaviour as the basis of integration, Follett says, is the key to constructive conflict.

Obstacles to Integration
• Integration requires high intelligence, keep perception, discrimination and a brilliant
inventiveness.
• It is always to fight than to suggest better ways of resolving conflicts.
1. As long as intelligence and inventiveness are not there, resolving conflicts through integration
would be difficult.

Administrative World Page 84

 PAPER 01

2. Another obstacle is people’s habit of enjoying domination.

3. Theorising the problem instead of taking them proposed activities needing immediate solutions
is also an obstacle
4. Language is also fourth obstacle. Language used often aroused wrong behavioural patterns.
5. The undue influence of leaders
6. Lack of training

Giving orders
• To Follett there are 4 important steps in giving orders:-
1. A conscious attitude:- Follett says that most people, without even knowing the different
principles that underlie giving order, give orders every days. To her, to know the principles that
underlie any given activity is to take a conscious attitude.
2. Responsible attitude:- one must think of what principles one should act on and then give orders
in accordance with those principles. To give orders based on principles is a responsible attitude.
3. Experimental attitude :- trying, experiments, noting whether they succeed or fail and analysing
as to why they are successful or failure is taking as experimental attitude.
4. Pooling the result:- finally, one should pool the experience of all and see to what extent and in
what manner the method of giving orders can be changed if the existing methods are found
inadequate.

Orders
• In practice, issuing orders is very difficult.
• Past life, training, experience, emotion etc. form certain habits of mind. Unless these habit
pattern are changed, one cannot really change people.
• To bring about such a change, Follett suggest 3 steps:-
1. Building up of certain attitude
2. Providing for their release
3. Augmenting the released response, as it is being carried out.
• Before giving orders, employers should considers the ways and means of forming the habits.
This involves 4 steps:-
1. First, the officials should be made to see the desirability of a new method
2. Second, the rules of the office should be so changed to make it possible for the officials
to adopt the new method
3. Third, few people should be convinced in advance to adopt the new method to set an
example
4. Last, intensifying the attitude to be released.
• To Follett, both giving and receiving orders is a matter of integration through circular
behaviour.
• Manner of giving orders is equally important.

Depersonalising Order
Giving order is a complex process. Therefore, either people stop giving orders or become
‘authoritarian’ to ensure compliance to their orders.
 To avoid too much of bossism in giving orders or giving no order at all, Follett suggests
depersonalising the order.
 One should not give orders to another, but both should agree to take orders from the situation

Administrative World Page 85

 PAPER 01

 Depersonalising order does not mean that one should not exercise authority. It only means
exercising the authority of the situation. Example, a boy who says no and then gets a pail of
water to his mother. In this, he resents the command but recognises the demand of the
situation.
 She observes that the situation is never static; it always develops and evolves. Therefore, the
orders too should never be static; but should always keep pace with situations.
 Therefore, orders must always be integral to the situation
 People resent the feeling of being ‘subordinate’ to someone. People like to work with
someone.

Power, Authority And Control

• Power:- the ability to make things happen, to be a casual agent, to initiate change”. Power is
the capacity to produce intended effects.
• She makes distinction between ‘power-over’ and ‘power-with’
• Power over may tend to be ‘coercive power’ and ‘power-with’. Power-with is superior to
power-over as it is a self-developing entity.
• Follett does not think it possible to get rid of power-over, but thinks that one should try to
reduce it. This can be accomplished by integrating the desires, obeying the law of situation and
through functional unity.
• In functional unity, each has functions and one should also have the authority and
responsibility
• Follett believes that power can never be delegated or handed out or wrenched from someone
as it is the result of knowledge and ability.
• She feels we can create condition for the development of power.

Authority
• Follett defines authority as vested power- the right to develop and exercise power.
• Authority in terms of status and the subordination of one another offend human dignity and
may cause undesirable reaction and friction. Therefore it cannot be the basis of organization
• She says, derivation of authority from the chief executive should be replaced by authority of
function in which each individual has the final authority within the allotted functions.
• She feels that the authority can be conferred on others and such conferment is snot delegation
• Control:- like authority and responsibility, is an important aspect to achieve organizational
goals.
• Unlike classical thinker, Follett believe in fact-control rather than man-control and in
correlated-control than superimposed control.
• If organizations are to be well integrated , unified and coordinated, control should be designed
and developed as part of the unifying process as a unified organization is self-regulating and
self-directing, organism.

Planning and Coordination

• To Follett, planning is a scheme of self-adjusting and self-coordinating the various and varying
interest.
• The process of self-adjusting is possible only through coordination.
• To achieve coordination, she postulates 4 principle of organization:-
1. Coordination as the reciprocal relating of all factors in a situation

Administrative World Page 86

 PAPER 01

– All factors in a situation have to be related to one another and consider these inter-
relationship
2. Coordination by direct contact
– Responsible people in the organization must be in direct contact one another,
irrespective of their position in the hierarchy
3. Coordination in the early stages
– All the people concerned should be involved at the stage of policy formulation itself,
than being involved only at the implementation stage- benefit the organization through
increased motivation and morale
4. Coordination as a continuing process
– Need for a permanent machinery to achieve coordination from planning to activity, and
from activity to further planning.

Leadership
• To Follett, a leader is not the president of the organization or head of the department.
• A leader is one
– “who can see all around a situation, who sees it as related to certain purposes and
policies, who sees it evolving into next situation, who understands how to pass from
one situation to another.
– The man who can energize his group, who knows how to encourage initiative, how to
draw from all what each has to give.
• Such people are found not just at the apex but throughout the organization.
• According to Follett, coordination, definition of purpose and anticipation are 3 functions of the
leader.
• Follett stresses that leaders are not only bone, but also can be made through education and
training in organization.
3 types of leadership:-
1. Leadership of position:- leader holds a position of formal authority
2. Leadership of personality:- one becomes a leader because of his forceful personality. One who
holds both position and personality can ‘lead’ much more easily.
3. Leadership of function:- in modern organization, leaders exercise leadership because other are
influenced by their judgements. One possessing the knowledge demanded by a certain
situation becomes the leader.

Criticisms
• She was criticised for ignoring the social nature or the processes involved in the management
of organizations.
• He ideas on integration were criticised as being illusory
• No-systematic writer:- she threw out interesting ideas more or less randomly and, therefor, the
thread of consistency was hard to find, and harder to follow. Not all her readers would see
where her thought would lead them.
• Therefore, it was observed that her valuable ideas and useful recommendations do not
conform to a theoretically well founded and integrated system.

In Her Defence
• She did not make any distinction between public and private administration.
• Follett believed in balance, in a mix :

Administrative World Page 87

 PAPER 01

 She avoided ‘either/or’ solutions and preferred ‘both/and’

 The ‘either/or’ approach to public administration is too simplistic and overlooks the
central fact that human society itself is pluralistic and solutions to problems too must
take into account the right claims of all sides.
• She is regarded as a bridge between the classical approach & behavioural-human relation
approach.
• Unlike other contemporary theorists, she viewed organization as a social system and
administration as a social process.
• She brought out the human dimension of organization.
• Her views constituted a new approach to management- she was critical of the classical theory
of organization for its one sidedness- its machine like concept of man.

Practice Questions

“Follett’s work was not directed towards the resolution of the conflict of ideas, but towards the
resolution of structural conflicts between workers and capitalists”. in the light of the statement
critically evaluate Follett’ idea of dynamic administration.

Critically examine conflict resolution according to M.P. Follett. Explain how McGregor took forward her
ideas in the context of complex organization.

Administrative World Page 88

 PAPER 01

7. Elton Mayo

Elton Mayo (Human Relation theory)

Life & Works
• Elton Mayo is regarded as the father of the ‘Human relation movement’
• He belongs to Australia and studied Medicine
• In 1923, he migrated to the USA.
• In 1926, he joined Harvard University as associate professor of industrial research.
• In all his research programmes, Mayo focussed his attention on the behaviour of the workers
and their production capacity keeping in view physiological, physical, economic and
psychological aspects. He called this approach a clinical method.
• Books:-
– Democracy and freedom: an essay in social logic
– The human problems of an industrial civilization
– The social problems of an industrial civilization
• In the late 1920s and early 1930s, the Harvard Business school, under the leadership of Elton
Mayo and his associates, conducted research at the Hawthorne plant of the Western Electric
Company.

Early Experiments: The First Inquiry

• Before Hawthorne experiment, Mayo undertook his 1st research in a textile mill near
Philadelphia in 1923; known as “the first inquiry”
• The mill was considered to be a model organization. The employees of the mill were provided
with all facilities.
• The general labour turnover in all department was nearly 5% per annum; while in the mule-
spinning department, the turnover was nearly 250%.
 Labour turnover:- it refers to the rate at which employees leave employment.
• Elton Mayo studied the problem of the mule-spinning department.
• Mayo found that lack of adequate rest causing fatigue to the worker.
 he introduces rest periods ( 4 in a day, 10 minutes each); workers motivated & their morale
increased.
 Labour turnover almost came to an end. Production also rose.
 Further he suggested a new bonus formula:- if the workers were to produce more than a
certain percentage, they would earn bonus proportionate to their extra production. With this
scheme the workers were highly motivated and happy.
 Further the management placed the “control of rest periods” in the hands of the workers.
 This led to consultation among the workers.
 Social interaction was set in motion. A new awakening began. Workers began taking
collective action.
 With this, assumption of “rabble hypothesis” which assumes “mankind as a horde of
unorganised individuals actuated by self-interest” was reversed

Administrative World Page 89

 PAPER 01

Hawthorne Studies
• There was a strong feeling that there exists a clear-cut cause and effect relationship between
the physical work, environment, the well-being and productivity of the worker.
• Management believed that Improved physical working condition and wage incentive schemes
will led the workers to produce more.
• Taking this clue into consideration, the National Research Council of the National Academy of
Science under the leadership of George Pennock decided to examine the relationship between
illumination and the efficiency of the workers with a research programme at the Hawthorne
Plant of Western Electric Company (WEC).
• The WEC employed around 30,000 workers.
• Why WEC?
– Located in Chicago, engaged mainly in manufacturing of telephone-apparatus.
– Employees were drawn from 60 nationalities.
– Within each of the national group there was a wide verity of skills.

Great Illumination Experiment (1924-27)

• Parallel observation of 2 groups:-
– Test group (experimental group)
– Control group
• Aim:- to examine the level of production on the basis of varying levels of illumination.
• The control group remained with constant illumination of the level and the type with which the
two group started.
• In test group’s room, experimental changes were introduced periodically.
• The researchers observed that the groups & kept accurate record. Study went on for 2 years.
• Result:- regardless of the level of illumination, production in both the groups increased.
• The researchers were surprised and abandoned the illumination theory. They began
manipulating wage payment, rest periods, duration of working hours.
• Instead of group incentive plan, an individual piece rate plan and provision of refreshments
were introduced. All yielded further rise in production.
• Surprised by the outcomes, the research team decided to withdraw all the above-mentioned
privileges and return to the condition prevailing at the beginning of experiments.
• For a while the output fell but soon it rose to a point higher than at any other time. The team
was puzzled over the outcome.
• In 1927, Mayo was invited to unravel the problem through further studies.
• In these studies Mayo collaborated with Fritz Jules Roethlisberger.
• After interpreting the outcome of the Hawthorne studies, mayo was of opinion that the test
room girls became a social unit and because of the research team to them, the unit developed
a sense of participation in the project. Thus, Mayo had opened the door to research into social
man.
• Then they picked up the loose threads of the earlier WEC studies and found far more valuable
insights into the industrial man.
• They came up with 5 hypotheses. After eliminating various explanations they proposed the
following two hypotheses to explain the failure of the original illumination project:-
1. The first hypothesis:- the individual wage payment incentive had stimulated increase in the
output.
2. The second hypothesis:- the changes in supervisory technique had improved the attitude and
output.

Administrative World Page 90

 PAPER 01

Relay Assembly Test Room Experiment (1927-1932)

• To test the above two hypotheses, two new groups were formed.
• Testing the 1st hypothesis:-
– They were placed in a special test room, apart from all the other workers.
– The groups were placed on an individual incentive plan on a piecework basis. Initially
the total output went up and after sometime it remained constant.
– The second group, although they were placed on individual incentive plan, was
experimented with variation in rest periods and durations of work. Changes in the
output were recorded.
– In this group there was an average rise of output in the production over a period of 14
months. The research team concluded that the first hypothesis was not confirmed
since it was not wages, but something else that le to greater output in the both group.
• Testing the 2nd Hypothesis:-
– Atmosphere was made more relaxed and congenial. The girls were allowed to
• Interact freely with fellow workers and supervisors. Supervisors were told o behave more as
democratic oriented supervisors.
• Managerial practices were modified:- before any change or move, the workers were consulted
and advised about changes, their suggestions were also considered sympathetically.
– Allowed the workers to feel free to air their problems.
– The workers responded favourably to the improved style of supervision.
– The workers realised that they were a team of indivuals, not cogs in a machine. Such
work satisfaction led everyone to feel more valued and responsible for his or her
performance and that of the group as a whole. The production increased when work
groups felt that they were important and their efforts were meaningful.
• Mayo felt that work satisfaction depends to a large extent on the informal social pattern of the
working group .
• He said that change in the style of supervision improved the morale of workers, which in turn
increased production. This link between supervision, morale and productivity became the corer
stone of the human relation.

Human Attitude & Sentiments (1928-31)

• The next study of Mayo and his team, conducted during 1928-31 was on human attitude and
sentiments.
• The workers were given an opportunity t come out and express freely about:-
– Their likes and dislikes on the programmes and policies of the management.
– Working condition
– How they treated by their boss, etc.
• They interviewed over 20,000 workers, each one given an adequate time to comment or
complain on his/her thought on any aspect of employment
• Later, these complaints were analysed and it was found that there was no correlation between
the nature of complaints and the facts
– Although no reforms were introduced, the workers thought that in view of their
complaints the working conditions were improved.
– They also felt that the wages were better although the wage scale remained at the
same level.
• It appeared that there was an opportunity to ‘let off steam’ which made the workers feel
better even though there was no material change in the environment.

Administrative World Page 91

 PAPER 01

• The study team of Mayo identified the two aspect:-

1) First, the workers appreciated the method of collecting the information on the problems of the
company from them. They though they had valuable comments to offer and felt that they had
equal status with management. They also realised that they were allowed to express
themselves freely and felt satisfied with it.
2) Second, there was a change in the attitude of the supervisors because they realised that the
research team closely observed their methods of supervision and the subordinates were
allowed to comment freely about their supervisors.
• Mayo and his tram finally led to the conclusion that the explanation for these unexpected
findings lay in the informal social forces at work in the organization.
• They became convinced that the behaviour of workers cannot be separated from their feelings
and sentiments.
• Therefore, to explain behaviour in the workplace, it was necessary to move beyond the limited
idea that organization was simply an economic and technological structure; the organization
was also to be seen as a social structure “an intricate web of human relations bound by a
system of sentiments”

Social Organization/Bank Wiring Experiments (1931-32)

• This was the last study undertaken by Elton Mayo and his team in WEC to observe a group of
workers performing a task in a natural setting. It is a detailed study of a social organization and
the operation of intra-group forces within a work group.
• 3 groups of workmen whose work was inter-related were chosen for observation. It was known
as ‘the Bank Wiring Experiments”
• In this experiment, wages were paid on the basis of a group incentive plan, and each member
got his share on the basis of the total output of the group.
• It was expected that highly efficient workers would bring pressure on less efficient workers to
increase output and take advantage of group incentive plan.
• But results did not come as expected.
• Observation/results:-
 The men did not increase the overall group output.
 Work-group evolved its own norm of standard output, which was lower than the management
target.
 The work group developed work culture of their own with codes, rules and norms.
Mayo & his team concluded that;-
• One should not miss the human aspect of organizations, while emphasising technical and
economic aspects of industries.
• The Hawthorne experience suggested a new mix of managerial skills. In addition to technical
skills, the management should handle human situations, motivate, lead and communicate with
the workers.
• They also felt that overemphasis on the technical progress and material life at the expense of
social and human life was not good.
• The concept of authority should be based on social skills in securing cooperation rather than
expertise.

Administrative World Page 92

 PAPER 01

Hawthorne Studies (continued)

• Harmony between the informal social system and the formal organization is the key concept in
Mayo’s approach to human relation. An internal equilibrium has to be established and
maintained in the organization.
• The logic of organization behaviour is primarily non-rational in economic terms; it is more social
and physiological in its roots.
• According, management would have to develop diagnostic skills and the capacity to deal
effectively with the dynamics of informal groups and the sentiments of the workers.

Absenteeism in the Industries

• During world war 2, the turnover of labour in most of the industries in USA was more than 70%
and absenteeism was chronic. Alarmed at this state of affairs, the management of three
industries requested Mayo to study this unjustified absenteeism problem in the industries and
suggest remedial measures. The research began in 1943.
• In one industry in which the turnover was minimum and absenteeism was negligible:
– Mayo and his team found that, the management had introduced group wage scheme
and made it clear that workers would earn group wage without any shortfall in any
shift in a day.
– In the event of any shortfall in any shift, the cut in the wages was uniformly applied.
– Therefore, all the workers became alert and formed into a group under the leadership
of natural leader who devoted time and energy in consolidating group solidarity
– Now it was the turn of the employees to ensure high productivity & smooth
functioning of industry.
• Mayo found out how an informal group demonstrated its strength and capacity in raising the
level of production by cooperating with the management.
• In the present case, the positive response was possible because the supervisor and his assistant
were too busy otherwise and rarely paid any visit to the department. All the work was under
the charge of a man who had no official standing and this person emerged as a natural leader
of the team.
• In the case of the other two factories there were neither informal groups nor natural leaders to
knit the workers into team. In fact, they were not given any opportunity to form informal
teams.
• Hence, there was heavy turnover and absenteeism of the labour in the production centres of
these industries.

Principal Conclusions Of Hawthorne Studies

• The results of the Hawthorne experiments & further studies led to the discovery of the
informal organization and to the inference that the social and psychological factors at work
place are the major determinants of workers’ satisfaction and organizational output.
• However, Fritz Roethlisberger, the principal research associate of Mayo, arrived at difference
conclusion.
• According to him, the Hawthorne studies reveal that the primary group had as much- if not
greater- impact upon productivity as the formally physical surrounding and economic benefits
derived from the job.

• Based on the Hawthorne studies, scholars have identified the following concepts.
Social Norms:-

Administrative World Page 93

 PAPER 01

• the level of organizational effectiveness is determined by social norms.

• Principles of administration such as division of work or the physiological capability of the
workers are not critical factors in productivity.
• Workers are essentially social beings. They must first be understood as organization members.
• Their attitudes and effectiveness are conditioned by social demands from both inside and
outside the work plant.
The group:-
> Group standard are a major influence on the behaviour of individuals in organization;
workers do not act or react as individual, but they do as members of the group.
• Groups set standard of productivity and enforce them upon all members.
• In both ways, the informal group acts as a restraints on executive power.
• Work is a group activity. Workers may react to management, the organization, and work itself
as members of groups of informal organizations rather than as individuals.
Rewards & Sanctions:-
• Instead of economic incentives, non-economic rewards such as social rewards and group
sanctions are the strong job motivators. They influence the behaviour of the workers.
Supervision:-
• Supervision is most effective when the supervisors involve and consult the group and its
informal leaders in order to ensure their acceptance of organizational objective.
• Human relations scholars believe that effective communication, supplemented by a willingness
to allow workers to participate in decision-making, is the key to effective supervision.
Democratic administration:-
• Workers achieve the highest level of effectiveness when they are allowed to manage their own
affairs without bossism from their formal supervisors.

Human Relations vs. Classical Approach

Similarities:-
• The human relations theory is called the ‘neo-classical theory’ because just as the classical
theory, it also accepts efficiency, economy and productivity as the legitimate values of
organization.
• However, to achieve these values, the human relations approach relies on techniques that are
quite different from those of the classical approach.
• The human relationship seek to maximise the values of efficiency, economy and productivity by
eliminating:-
– The dysfunctions caused by overspecialization,
– Alienating hierarchical arrangements, and
– General de-humanization of the classical approach.
• The classical and human relations theories are, thus, alike in their objective, but they differ in
the methods and technique adopted to accomplish those objective.

Differences:-
• Classical theory emphasises the formal organization structure consisting of jobs and job
descriptions as spelled out in organization charts & manuals. In contrast, the human relation

Administrative World Page 94

 PAPER 01

theory is concerned with the informal organization i.e. the life of individual workers ad
workgroup within the organization
• Classical theory takes the atomistic view of man, considers workers as various cogs in a
machine. On the other hand the human relation theory considers workers essentially as social
beings who react to management, organization & work itself as members of groups rather than
as individuals.
• In determining workers’ motivation, economic rewards and physical conditions of work are
regarded as important factors by the classical theorists. In contrasts, socio-psychological
rewards and group sanctions are considered by the human-relationships as important
motivators to work.
• The classical theory emphasises the authoritarian style of supervision, while the human
relations theory lays emphasis on democratic type of supervision.

Complementary, not Contradictory

• The preceding discussion clearly shows that both approaches have taken different views of
organizations. If the classical theory viewed organizations as formal structures, the human
relations approach emphasised informal relations within the organizations.

Neither of the two approaches is wholly right, although each is partially right.
• In realty, an organization comprises both- a formal structure and informal relations. These
aspects of an organization are not contradictory, but allied to each other.
• It is well to recognize that informal organizations exist in all formal organizations and re not
necessarily harmful, but may facilitate teamwork and collaboration.

Criticism
• Preoccupied with efficiency just like classical theorists. both wanted to increase material
wealth through greater productivity. Human relation theory did not go far enough to assert
that the ultimate objective of an organization is to ensure the employee happiness.
• Tried to substitute human relation-oriented supervisions for union representative
– Some scholars criticise mayo as anti union & pro management.
• Daniel Bell:- mayo practiced ‘not a science of man, but cow sociology’
– Human like cows are seen not as ends in themselves, but merely as means to an end.
– Make the workers content and satisfied, so they would produce more.
– Mayo was solely concerned with “adjusting men to machine”, rather than with
enlarging human capacity.
• It almost ignored the roles of formal structure, technology and conflict in influencing the
behaviour of workers. Thus, it does not adequately explain the multifaceted organizational
behaviour & organizational relationships.
• The human relation theory has overdrawn the contrast between the formal and informal
organization, and does not attempt to synthesise these two aspects of an organization to an
adequate extent.
• Peter Drucker criticise the theory for lack of awareness of economic dimension. He feels that
they it the nature of work and instead focus a great deal on inter-personal relations.
• Lack of scientific base:-
– Hawthorne studies covered the behaviour of small groups only and did not deal
adequately with the entire organization.

Administrative World Page 95

 PAPER 01

Significance
• In spite of its shortcomings, Mayo’s human relation theory marked a major turning point in the
history of administrative theory and practice.
• According to Bertram Gross, Mayo made an attempt to understand the problem of the workers
from an angle different from that of the traditional approach of the scientific management era.
• Mayo’s findings have profoundly hanged the nature of organization theory. His most important
finding is to identify the roots of work satisfaction as non-economic and to connect it with the
interest taken in a workers’ performance. These findings reverse the economic man concept of
Taylor.
• The Hawthorne studies developed a more realistic model of human nature.
• Another important finding is the concept of proper management-workers communication,
especially between the lower rungs of the organization and the higher levels. Communication
with the leaders of the informal groups is also considered equally important.

The human relation approach has great impact on business administration and later on public
administration. Indeed it is regarded as a major development in the American administrative thought
for the period 1900-1939. this approach marked a major turning point in the history of administrative
theory and practice

Practice Questions

Discuss in what way the findings of the Hawthorne experiments are considered as historic landmark in
administrative thought.

From Taylorism to Mayoism, the organization theory has travelled a long road in quest of
“organizational Effectiveness”. Explain

Administrative World Page 96

 PAPER 01

8. Chester Barnard

System Theory (Chester Barnard)

About Chester Barnard
• He is considered the spiritual father of ‘social system school’, which influences many
organizational thinkers of the last century.
• His classic “the functions of the executive” was based on a series of lectures he gave on
administration at the Lowell Institute at Boston and is a compulsory reading in all public
administration, management and organization studies across the globe.
• He was born in USA (1886-1961) in a family of modest means, had to work very hard for his
livelihood.
• Majored in economics and government.
• Had a long career in bell telephone company.
• He occupied many positions both in government and private administration.
• Barnard spent lot of time in understanding and analysing management.
• The functions of the executive is the direct outcome of Barnard’s failure to find an adequate
explanation of his own executive experience in classical organizations or economic theory.

System Approach
• Barnard is primarily considered as a behaviouralists as he laid emphasis on the psychological
aspect of management.
• At the same time he is considered as a system theorists. He viewed organization as a social
system.
• In his books he presented his views on organization as means of cooperative system.
• System is defined as a set of arrangement of things so related or connected as to form a unity
or organic whole.
• A system is composed of elements that are related and dependent upon one another but that
when in interaction, form a unitary whole.
• System approach is based on the thesis that all parts of an organization are inter-related, inter-
connected and inter-dependent.
• This approach is not new. This approach was first developed in natural and physical science
• Even in administrative and management, system concepts were used by Taylor & others.

Chester Barnard’s Theory

• The contribution of Barnard to the understanding of organization phenomenon is one of the
important landmark in the evolution of administrative theory.
• The purpose of his theory is to provide a comprehensive theory of cooperative behaviour in
formal organization.

Administrative World Page 97

 PAPER 01

• The theory was based on the experience Barnard gained in various important administrative
positions he occupied.

Organization as a system of Human Cooperation

• He seeks to develop his theory around one question “under what conditions cooperative
behaviour of man is possible”
• He maintains that cooperation originates in the need of an individuals to accomplish purpose
which he individually cannot achieve.
• He viewed the organizations as systems of cooperation of human activity.
• He defines organization
– as a system of consciously coordinated activities or forces of two or more persons.
– It is a system composed of the activities of human beings, a system in which the whole
is always greater than the sum of its parts and each part is related to every other part
in some significant way.
– As a system, it is held together by some common purpose by the willingness of certain
people to contribute to the operation of organization and by ability of such people to
communicate with each other.
• Cooperative system for its survival must be “effective” in the sense of achieving organization
purpose and “efficient” in satisfying individual motive.

Cooperation……
• He maintains that “cooperation originates in the need of an individual to accomplish purposes
which he individually cannot achieve”
– Free choice does not exist.
– An individual human beings is constrained by limiting factors of the total situation.
– Limiting factors;- biological, physical, social.
– Most effective method of overcoming these limitations, in the view of Barnard is
cooperative social action.
– This requires that he adopt a group or no-personal purpose and take into consideration
the process of interaction.
• Barnard traces the causes for cooperation in physical and physiological factors.
• Individuals enter cooperative action, because as individuals they are capable of realising their
goals.
• It is their physiological limitation that drives them into cooperative action.
• The other way to look at cooperative phenomenon is that the nature puts such a constraints on
a single individuals that he cannot overcome it except through cooperative action. E.g. there is
a stone and a man wants to lift it.

Barnard’s Theory of Motivation

Raising the question as to why an individual should contribute his activities to the operation of the
organization.
• Barnard strongly disapproves the concept of economic man and propounds the theory of
“Contribution-satisfaction equilibrium”
• Contribution is possible only when it is advantageous to individuals in terms of personal
satisfaction .
• Barnard says, if each person gets back only what he puts in, there is no incentive i.e. no net
satisfaction for him in cooperation.

Administrative World Page 98

 PAPER 01

• What he gets back must give him advantage in terms of satisfaction ; which almost always
means return in a different form from what he contributes.
• The satisfaction which an individual receive may be regarded as inducement/incentive.
• While rejecting economic man concept, analyses the multiplicity of satisfaction and identifies 4
specific and 4 general inducement.

Inducement/Incentive
Specific inducement/incentive
1. Material inducement such as money, things, physical conditions;
2. Personal non-material opportunities for distinction, prestige and personal power
3. Desirable physical condition of work
4. Ideal benefactions such as the pride of workmanship, sense of adequacy, altruistic service for
family or other, loyalty to organization in patriotism

General Incentive/Inducement
1. Associational attractiveness based upon compatibility with associates;
2. Adoption of working conditions to habitual methods and attitude
3. Opportunity for the feeling of enlarged participation In the course of events;
4. Conditions of communicating with others, a condition based on personal comfort in social
relations and the opportunity for comradeship and fro mutual support in personal attitudes.
He maintains that economic rewards are ineffective beyond the subsistence level. The arrangement of
inducement Is a dynamic process, requiring experience and imagination.
Barnard feel that the primary function of the executive is to handle the economy of incentive within
an organization.

Efficiency & Effectiveness

• Barnard treats organizational efficiency as different from organizational effectiveness.
• The cooperative organization for its survival must be:-
– Effective in the sense of achieving organization purpose
– Efficient in satisfying individual motives.
• Barnard observes that when a specific desired end is attained through an action, that action is
said to be “effective”
• When the action leads to unexpected consequences then the action is described as
“inefficient”
• In other words, an action is effective if it accomplishes its specific aim. It becomes efficient
when it satisfies the motives of that aim, and without helping in attainment of the goal towards
which the activity is directed.

Barnard’s understanding of Human beings

• Barnard seeks to understand human beings at 2 levels :- from inside & outside the organization
– From inside they are treated as ‘participants in specific cooperative system’. Here they
are regarded in their purely functional aspects. Their efforts are depersonalised and
they have to fit into the formalised roles.
– From the second angle, a person outside any specific organization has his own distinct
qualities. He says that from this angle the individual is opposed to the cooperative
system.

Administrative World Page 99

 PAPER 01

• These two aspects, according to him, are not alternative in time; but are simultaneously &
always present in cooperative system.
• It is these opposing and conflicting aspects that require a serious examination to understand
the organization phenomenon as a system of cooperation.
• Examination of behaviour of the individuals:-
• The individuals makes a choice on the basis of:-
i. Purpose, desires, impulse of the moment
ii. The alternatives external to the individual
• Organised effort result from the modification of the action of the individual through control of
or influence upon one of these categories.
• The desires, impulses, wants etc. are popularly characterised as “motives”. They form an
important dimension of human behaviour.

Formal Organization
• According to Barnard organization comes into existence only when
– There are persons able to communicate with each other
– Who are willing to contribute action
– To accomplish a common purpose
Thus, communications, willingness to serve and common purpose are the 3 element in a formal
organization.

Willingness:-
• It can be expressed in terms of loyalty, solidarity and strength of organization
• This willingness requires the belief that the purpose can be carried out(effectiveness) .
However, willingness to contribute disappears when effectiveness ceases.
• The continuance of willingness also depends upon the satisfactions that are secured by
individuals:-
– If satisfactions do not exceed the sacrifices required, willingness disappears and the
condition is one of organization inefficiency
– Is satisfactions exceed the sacrifices, willingness persists, and the condition is one of
efficiency of organization.
• Based on the above assumption, Barnard observes that initial existence of an organization
depends upon a combination of the above mentioned 3 factors, which are suitable to the
external environment.
• Its survival depends upon the maintenance of an equilibrium of the system. The equilibrium
has both internal & external dimension

Informal Organization
• For a deeper understanding of the cooperative systems and the processes, it is necessary to
understand the relationship between formal & informal organization.
• He maintains that it is a part of human nature and a social process, that men develop a
network of relationship on systemised interaction. This gives rise to the growth of conventions,
customs and institutions. All this result into what are called informal organizations.
• Barnard describes informal organizations as the aggregate of personal contacts and interaction
and the associated groupings of people. Such organizations are indefinite, structure less and
are a shapeless mass of varied densities.

Administrative World Page 100

 PAPER 01

• They have tremendous influence on cooperative systems, because they interact with formal
organization on a continuous basis.
• Barnard says that every informal organization to be effective must always establish formal
organizations within it. And every formal organization gives rise to informal organizations
because of network of interpersonal relationship.
• The informal organization becomes necessary to the operation of formal organization as a
means of communication and of protecting the integrity, self-respect & choice of individuals

Bases of specialisation
• The formal organizations have certain distinct elements which are crucial to the understanding
of the cooperative systems and their capacity to make use of the structural needs and
individuals aspiration.
• In formal organization, division of labour which is described as specialisation of
functionalization is integral to the organization.
• Men specialise but work is functionalised.
• the bases of specialization of organization are 5:-
1. The place where work is done
2. The time at which work is done
3. The persons with whom work is done
4. The things upon which work is done
5. The method or process by which work is done
• The process of cooperation requires all the 5 requirements. The efficiency of organization
largely rests on these requirements met.

Theory of Authority
Authority is the most crucial element for cooperative effort in a general organization.
• Barnard defines authority as “the character of a communication in a formal organization by
virtue of which it is accepted by a contributor or member of the organization as governing the
action he contributes”
• Further he argues that if a directive communication is accepted by one to whom it is
addressed, its authority for him is confirmed or established. It is admitted as the basis of action
• Disobedience of such a communication is denial of its authority for him.
• Therefore, the decision as to whether an order has authority or not lies with the persons to
whom it is addressed and does not reside in persons of authority, or those who issue the these
orders. He adds that organizations fail because the authority fails which means they cannot
secure sufficient contribution of personal efforts to be effective or cannot induce them on
terms that are efficient.
• Authority fails because the individuals in sufficient numbers regard the burden involved in
accepting necessary orders as changing the balance of advantage against their interest and
they withdraw or withhold the indispensable contributions
• It is for this reason Barnard emphasis “the necessity of the assent of the individual to establish
authority for him is inescapable”
• A person can and will accept communication as authoritative only when 4 conditions
simultaneously obtains:-
• He can does understand the communication
• At the time of his decision he believes that it is not inconsistent with the purpose of the
organization

Administrative World Page 101

 PAPER 01

• At the time of his decision, he believes it to be compatible with his personal interest as a whole
• He is mentally and physically able to comply with it

Zone of Indifference
• The acceptance of authority on organization depends upon the zone of indifference.
• If the orders are arranged in order of their acceptability to the person affected, they fall into 3
different categories:-
1. Those which will clearly be unacceptable
2. Those which are neutral line i.e. either acceptable or unacceptable
3. Those which are unquestionably acceptable.
Orders which fall under the last group come within the “zone of indifference”
• The zone of indifference will vary depending upon the inducement offered and the burdens
and sacrifices made by the individuals in the organization.
• The executives in the organization should be conscious of the “zone” and issue orders only
those which fall within it.
• If the executive is not conscious of this, Barnard says, that the executive either does not know
how to use his authority, or he is abusing the authority.

The Fiction of Authority

• Barnard called authority as “fictional”
 The superior assumes that subordinate accepts orders because they want to avoid
making issue of such orders, and avoid personal subservience or loss of personal status
with their colleagues.
 But this is not true, contributors accept the orders, if it taken to see that only
acceptable communications are issued; most of them fall within the zone of personal
indifference and the communal sense influence the motives of the contributors.
• The fiction of superior authority appears to be necessary for 2 important reasons:-
1. The fiction of authority enables the individuals to delegate upward or to the organization,
responsibility for what is an organization decision. Most persons obey authority because they
dislike the personal responsibility when they are not in a position to accept it.
2. The fiction derives home the point that what is at stake is the good of the organization.
Disobeying authority for arbitrary reasons and twisting organizational requirements for
personal advantages, must be construed as deliberate attacks on the organization itself.
According to Barnard “to fail in an obligation intentionally is an act of hostility”. No
organization will permit it and it will respond with punitive action.

Communication
• Communication as a cooperative system is held together by the ability of contributors to
communicate with each other.
• Barnard called attention to the fact that “a common purpose must be commonly known, and to
be known must be in some way communicated. With some exceptions, verbal communication
between men is the method by which this is accomplished.”
• Barnard regards communication as an important condition for the existence of an organization.
• Some basic principles that ensure effectiveness of communication
– The channels of communication should be definitely known
– Objective authority requires a definite formal channel of communication to every
member of organization

Administrative World Page 102

 PAPER 01

– The line of communication must be as direct or as short as possible

– The complete line of communication should usually be used.
– The competence of the persons serving as communication centres must be adequate.
– It should not be interrupted during the time when the organization is to function.

Responsibility
• Along with authority, Barnard examines responsibility in greater detail. He examines
responsibility from the point of view of morality.
• He defines responsibility “the power of a particular private code of morals to control the
conduct of the individuals in the presence of strong contrary desires or impulses”
• Responsibility Is not determined by any one single moral code, but by a complex set of morals,
legal, technical, professional and institutional codes.
• Therefore, these codes always regulate the working or organization.
• In this process of regulation, the internal moral sanction of individuals is more effective than
the external sanctions.
• Since individuals conduct or behaviour is governed by complex of codes, it may results in
conflicts. This is particularly so with codes having substantially equal validity. Such conflicts may
results in:-
a) The paralysis if action accompanied by emotional tension and ending in a sense of frustration,
blockade, uncertainty or lack of confidence
b) There is conformance to one code and violation of the other, resulting in a sense of guilt,
discomfort, dissatisfaction, or a loss of respect
c) There is found some substitute action which satisfies immediate desires or impulse or interest,
or the dictates of one code, and yet conforms to all other codes.

Decision-Making
• Barnard was most notable for his contribution to decision-making. He viewed an organization
as a system of decision-making as well as communications.
• He was one of the first to study the process of decision-making in organization.
• Problems requiring analysis and decision-making surface in various ways.
• Barnard suggests the following origins of occasions for decision:-
1. Authoritative communications from supervisors.
2. Cases referred for decision by subordinate
3. Cases originating in the initiative of the executive concerned.
• He defines decisions as acts of individuals which are the result of deliberation, calculations and
thought involving the ordering of means to ends.
There are two types of decisions:-
1) Personal:- these relates to the participation or otherwise in the organizational process and are
taken outside the organization based on the incentive the organization offered and they need
not necessarily be logical.
2) Organizational:- these relates to the organizational purpose, information-based, logical and can
be delegated. They are the result of discrimination, analysis and choice.
Decision-making in organizations according to Barnard is a specialised process.
• He emphasised that organizational decisions need not always be positive.
• Based on his long years of experience, Barnard says that decision-making in organizations is a
burdensome task.

Administrative World Page 103

 PAPER 01

• For fear of criticism, the executives avoid taking decisions and there is also a tendency not to
delegate decisional power resulting in the executives being overwhelmed with the burdens of
decision-making.

The Functions of the Executive

• In organizations, executives perform various functions necessary to ensure coordination of the
cooperative theory.
• They also act as channel of communication.
• However all the work undertaken by them, is not executive. E.g. V-C giving classroom lecture
• To Barnard executive functions involves a specialised work of maintaining the organization in
operation. The executive functions are like those of nervous system, including the brain in
relation to the rest of the body.
• Barnard classified the function of the executive under 3 heads:-
1) Formulation of purpose and objective
2) Maintenance of organization communications
3) Securing essential services from the individuals.

Formulation of Purpose and objectives

• The first function of the executive is to formulate and define purpose, objective and ends of the
organization.
• The purpose of the organization must be accepted by all the contributors to the system.
• Purpose must be subdivided into fragments and specific objectives must reflects the detailed
purpose and actions.
• Assumption of responsibility and delegation of authority are crucial aspects of the functions of
the executive.
• Purpose is defined in terms of specification of the work to be done & specifications are made
when and where work is being done.
• The formulation and definition of purpose is a widely distributed function and only the general
part of which is executive.
• It requires sensitive systems of communication, imagination, experience and interpretation.

Maintenance of Organization Communication

• This function has 3 important phase:-
a) Defining the scheme of organization or defining the organizational purpose:- it deals with the
organizational charts, specification of duties & division of labour.
b) Maintaining a personnel system:- this includes the selection of men and offering of incentives,
techniques of control permitting effectiveness in promoting, demoting and dismissing men.
c) Securing an informal organization:- the informal organizations promote the need for formal
decisions gets reduced except in emergencies. The executive must always try to avoid orders,
which are clearly unacceptable and should deal with such situations through informal system.
the informal organizations perform the following functions:-
 Communicate unintelligible facts, opinions, suggestions and suspicions which cannot
easily pass through formal channels
 Minimise excessive clicks of political influence
 Promote self-discipline of the group
 Make possible the development of important personal influence in the organizations.

Administrative World Page 104

 PAPER 01

Securing essential Services from the Individuals

• This task has 2 main aspects:-
– Bringing of persons into cooperative relationship with the organization
– Eliciting of services after they have been brought into that relationship
• These are achieved by maintaining morale and by providing incentives, supervision, control,
education and training.
• Every organization, in order to survive, must deliberately attend to the maintenance and
growth of its authority, to do things necessary for coordination, effectiveness and efficiency.
• Barnard uses efficiency in the specialised sense of an organization’s capacity to offer effective
inducements In sufficient quantity to maintain the equilibrium of the system.

Criticisms
• Kenneth Andrew, who wrote introduction to the book “Functions of Executive” observes:-
o Barnard was on his subjective experience. While it makes his analysis insightful, it also works as
a constraint
o The theory does not provide a clue as for how this theory can be extended to the various facets
of organizations of different types.
o He further observes that Barnard has not dealt about the institutions of top management.
• Barnard’s theory while focuses its attention on cooperative effort, it does not adequately deal
with the creative development of our individual.
• It does not deal with the question as to under what conditions individuals develop commitment
to the organization and how such commitment gets strengthened.

Significance
• Barnard’s 1938 classic work “the function of the executive” itself is an important contribution
to the management/organization literature.
• In the opinion of Peter & Waterman
“Barnard’s book provided probably the first balanced treatment of the management process”
• His idea of organization as cooperative social system ‘challenged Max Weber’s theory’ of
organization as bureaucracy.
• Barnard was one of the pioneers of the behavioural movement in public administration. He
influenced Herbert Simon, who developed Barnard’s ideas further.
• He was also one of the first to study the process of decision-making in organizations.
• His analysis of process of formal and informal organization and their mutual interaction has
practical utility and scientific value to everyone interested in understanding social problems.

Administrative World Page 105

 PAPER 01

8. Herbert Simon

Herbert Simon (Decision-making Theory)

Life & Works
• Herbert Alexander Simon (1916-2001) born in Wisconsin.
• He entered in University of Chicago in 1933 and studied social science and mathematics.
• Simon was associated with several public organizations and professional bodies.
• Simon received the Noble Prize in Economic (1978) for his pioneering research on decision-
making process within economic organization.
• Herbert Simon’s Contribution has been particularly significant in the field of decision-making.
• He considered a founding figure in the field of artificial intelligence, a creator of thinking
machine and a central figure in the cognitive revolution in psychology in 1960s when computer
models began to be used to study the thought processes of human.
• His pioneering studies on decision-making led him to develop a theory of bounded rationality.
• He was influenced by Follett , Elton Mayo & Barnard’s Functions of the Executive

Classical theory: Simon’s Criticism

• Herbert Simon calls the principles of administration as proverbs occurring in mutually
contradictory pairs. E.g. principle of span of control & principle of minimum number of
supervisory level.
• Simon says that these principles are not scientifically valid and do not have universal relevance.
• He finds no compatibility between the perfection of administrative processes as conceived by
POSDCoRB formula and their utility in the attainment of objective. He points to the gap
between the principles and practice.
• The missing factor according to him is correct decision-making by which he meant the optimum
rational choice between alternative courses of action.
• Thus begins his search for rational decision-making models from which guides to real world
decision-making might be derived.

Decision-making
• An organization is viewed by Simon as a structure of decision-makers.
• To him decisions are made at all levels of the organization, some of them affecting many
members, while others are relatively less important decision about detail.
• Each decision is based on a number of premises and Simon focuses his attention on how these
premises are determined.
• Simon asserts that top management cannot dictate to every member of organization hat each
decision must be, but it can influence some premises on which the decision are based.
• It can also create a structure which will permit and stimulate the transmission of necessary
information

Administrative World Page 106

 PAPER 01

Decision-Making Process
1. Intelligence activity:- identification of problem
• Finding occasion calling fro decision
• For this the executive has to analyse ad understand the organizational environment. He has to
begin with the identification of the problem to be solved.
• Recognition of such a problem establishes the need for a decision.
2. Design activity:- search for alternative & evaluation of alternative
• This stage involves identifying, developing and analysing all possible alternative courses of
action
• Critically evaluate the different consequences and costs of all the alternative courses available.
• This involve spending more time and energy than the first stage.
3. Choice Activity:- selection of solution
• The final step is the selection of the most appropriate available alternative, which enables the
attainment of objective at the lowest level.
Simon says that though these three stages appear to be simple and one precedes the other, in practice
the sequence is more complex than what it appears to be. Each stage may sometimes involve all three
stages in itself.

Value & Facts in decision-making

• The effectiveness of a decision/course of action depends upon:-
 Values:- the selection of a correct choice is related to the individual’s preference
 Facts:- choice also depends upon the information available at a given point of time.
• Value is the expression of a preference.
• Fact on the other hand is a statement of reality.
• Decision involves both facts & values. They clarify the criteria in analysing the ethical & factual
elements involved in a decision.
• Once the priorities are decided, then the implementation mostly depends upon the factual
judgement.
• To bring out the difference between fact and value, the means-ends distinction is sometimes
used:-
 choosing of ends selection based on value judgement.
 Choosing of means to achieve the end  factual judgement.

Hierarchy of Decision
• Mixed issue of fact and value impinge upon the administration, complicating the decision
process. The relevance of this impingement on administration is to be seen in the purposive
character of organization which develops groups of individuals to achieve goals ordinarily
beyond their individual reach.
• The continuum of purposiveness includes the concept of a ‘hierarchy of decisions.
• Each step downward in the hierarchy implements the goals set forth in the step immediately
above.
• This purposiveness of the organization for the attainment of the goals brings about integration
in the pattern of behaviour, in the absence of which administration would be meaningless.
• In the process, even minute decisions are inevitably instances of the application of broader
decisions relative to purpose and to method.

Administrative World Page 107

 PAPER 01

• It should not be inferred that this hierarchy or pyramid of goals is perfectly organized or
integrated in any actual behaviour. It is the complexity that makes perfect integration
extremely difficult.
• However, certain amount of integration will have to be achieved in reality, without which no
purpose can be achieved.

Rational Decision-Making
• Rationality in the decision-making process largely depends upon the correct choice of both the
‘value judgement’ and ‘factual judgement’.
• Simon’s decision-making formula assumes that the rational administrator has perfect
knowledge of the possible courses of action and their consequences and has equal access to
the relevant information on all or any of them.
• But, in the real world, administrators operate in the face of numerous limitations:-
– The decision-maker rarely known the full range of possible solutions to the defined
problems.
– His knowledge of the consequences of each possible alternative strategy is limited.
– His information is inadequate.
– He lacks sufficient time to examine fully each possibility and its consequences.
– Lack of knowledge about the future events in which the decision will be operating.
– Decision-maker’s habits, personal belief and intellectual capacity.
– The influence, conventions and behavioural norms of informal groups.
– Organisational factors such as rules and procedures.
– External pressures.
• Thus rationality in the decision-making is bound to suffer. But Simon emphasises that all
decision-making should be based on rational choices.
• He defines rationality as one “concerned with the relation of a preferred behaviour alternative
in terms of some system of valued whereby the consequence of behaviour can be evaluated.
• He explains rationality in terms of means-ends construct.
• If appropriate means are chosen to reach desired ends, the decision is rational

Types of Rationality
• Simon explains that there are 6 different types of rationality. A decision is
1) Objectively rational:- where it is correct behaviour for maximising given values in a given
situation
2) Subjectively rational:- if the decision maximises attainment relative to knowledge of the
subject
3) Consciously rational:- where adjustment of means to ends is a conscious process
4) Deliberately rational:- if the adjustment of means to ends has been deliberately sought
5) Organizationally rational:- to the extent that it is aimed at the organization's goals
6) Personally rational:- if the decision is directed to the individual’s goals

Bounded Rationality
• Simon disputes the concept of total rationality in administrative behaviour.
• He observes that human behaviour is neither totally rational nor totally non-rational. It involves
what he calls bounded rationality.
• Operating under conditions of bounded rationality, a practical decision-maker has not the wits
to maximise on decisions of any significance.

Administrative World Page 108

 PAPER 01

• The practical decision makers looks for a satisfactory course of action in solving a problem
rather than making an endless search for an ideal solution.
• He takes into account only those few factors of which he is aware, understands and regards as
relevant in decision-making.
• According to Simon, the fundamental criterion guiding an administrator in all aspects of
decision-making must be efficiency.
• In Public Administration , the efficiency criterion dictates the choice of that alternative which
produces the largest result for the given application of resources.

Types of Decisions
Simon distinguishes between 2 types of decisions:-
I. Programmed Decision:- decision which are repetitive and routine in nature. A definite
procedure can be worked out for handling them.
II. Non-programmed Decision:- when decisions are not repetitive, routine and cannot rely much
on the past practices & established rules. They are new. They exist for a particular use.
According to Simon there are different techniques for handling the programmed and non-programmed
aspects of decision-making.
• To deal with programmed decisions the techniques adopted are habit, knowledge and
skills and informal channel.
• Whereas for non-programmed decisions the techniques adopted are selection and
selection and training of executives possessing higher skills. Innovative ability etc.
• Simon is of opinion that the use of mathematical models, computer simulation and electronic
data processing may prove to be revolutionary in making decisions rationally

Models of Organizational Influence

Simon examined the way in which the behaviour of the employee can be influenced.
a. Internal Influence:- establishing in the employee himself attitude, habits and a state of mind
which lead him to reach that decision which is advantageous to the organization.
b. External influence :- imposing on the operating employee decisions reached elsewhere in the
organisation.
Internal influence can operate by inculcating:-
• Organizational loyalty
• A concern with efficiency
• Training
External influence depends upon:-
• Authority
• Advice and information

Authority
• Authority is one of the means through which organization man is made to conform to the
organizational demands.
• However, the general impression that authority flows from above is not correct. For the
exercise of authority depend upon the willingness of those who accept it.
• It should be noted that authority might operate at various levels and not necessarily
downwards.
• Organization develop both formal & informal relations and authority is largely used to settle
the dispute in the organization.

Administrative World Page 109

 PAPER 01

• Following Barnard’s “Zone Of Indifference”, Simon discusses about the “Zone of Acceptance”
and says that if exercise of authority is attempted beyond this zone, the subordinate disobeys
it.
Advice & Information
• Continuous flow of information downwards, upwards and sideways is essential for effective
functioning of an organization.
• However, the nature of information and advice to be tendered may change from situation to
situation.
• Therefore, collecting dependable information & proper utilization of it ensures greater
effectiveness in the decision-making and provides adequate lines of communication &
persuasion.
Organizational Loyalties:-
• It is generally observed that members in an organization identify themselves with it.
• Such type of loyalty is fundamental for an organization.
• Organization loyalty renders group effort possible.
• Narrow loyalty lead to friction & competition over resources.
Training
• Training is a vital device through which administrative man is equipped to face challenges.
• An efficient training programme would facilitate greater discretion to the individual in decision-
making.
• Training is applicable to the process of decision whenever the same elements are involved in a
number of decisions.
• Thus it can be used for developing effective decision-making.

Administrative efficiency:-
• the administrator must be guided by the criterion of efficiency of complicated nature of its
application in governmental organization which are not commercial in nature.
• The criterion of efficiency dictates that choice of alternative, which produces the largest results
for the given application of resources.
• While authority and organizational loyalty influence the value premise of the individual, the
criterion of efficiency influences his capacity to handle the facts.
• Efficiency implies adoption of shortest path and cheapest means in achieving the desired goals.
• “be efficient” is one of the major influences on organizational man. This leads to rational
behaviour.

Criticisms
1. Criticism of efficiency:-
• Critics do not agree with his view that efficiency is the most important goal of administrative
organization.
• They point out that satisfaction of various interest:- production of goods & services, mobilising
resources and using most rational techniques- are equally important objective.
2. Objection to exclusion of values:-
• Simon’s study of decision-making incorporates and makes uses of the logical positivists’
distinction between fact & values.

Administrative World Page 110

 PAPER 01

• Critics have objected that the exclusion of values, which are an essential part of policy
determination would limit the study of public administration to mechanical, routine and
unimportant aspect.
• Simon’s fact based theory is more relevant to business administration than to public
administration.
3. Too much importance given to decision-making:-
• Simon gives much importance to the role of decision-making and relegates the role of social,
political, economic and cultural factors to the background in analysing administrative
behaviour.
• Although decision-making is an important variable in the organizational situation, it alone is not
enough to explain the total picture of an organization.
4. Criticism of rationality:-
• Decision-making is a process, which involves both rational and non-rational dimensions.
• But Simon gave importance to rationality in decision-making.
• His theory uses the concept of “satisficing”. The concept becomes a justification-tool for
individuals for all those decisions that are less than optimal.
5. Not universal:-
• Simon’s analysis assumes that administration plays a similar role in all societies. But,
administrative system in developing countries does not have similar role orientation as their
counterpart in developed countries.
• Therefore, developing a theory on the basis of American experience cannot be valid.

In Simon’s Defence
• Despite all criticisms, Simon’s contribution is undoubtedly a major breakthrough in the
evolution of administrative theory.
• He emphasised the need to reformulate administrative theories along much sounder lines than
before; led to a new paradigm in Public Administration.
• His study of the dynamics of decision-making process provides a deep insight into
administrative behaviour.
• In recognition of his substantial contribution to the social sciences, he was awarded the Nobel
Prize.
• But, it is unfortunate that after his “administrative behaviour”, Simon has not written much on
public administration system , but has diverted his attention to economics and business
system.
• The subsequent administrative theorist do not deal with what Simon has dealt with on
decision-making processes in organization.

Administrative World Page 111

 PAPER 01

9. Chris Argyris

Chris Argyris
Life & Works
• He was born in New Jersey on July 16, 1923.
• He graduated with a degree in Psychology & Ph.D. in organizational behaviour.
• Argyris’ research relate to 4 areas
– Impact of formal organizational structure,
– Control systems and management on individual
– Organizational change
– Role of social scientist as a researchers and actors and individuals and organizational
learning.
• He authored over 30 books and over 300 articles.
• Some of the important works-
– Personality and organization
– Understanding organizational behaviour
– Organization and innovation.
• Argryis is considered as one of the first generation contributors to the field of organizational
development.
• He focused on the individuals' relationship to the organisation and the conflict between
individuals' social and psychological needs and the exigencies of the organization.
• His writing suggest that the personal development of the individual is affected by the
organizational situation.
• He was pioneer in the application of T-group Technique.

The Formal Organization

• Argyris may rightly be regarded as one of the descendants of the early human relations
theorist.
• He developed the idea of basis incongruency between the needs of the employee and the
demand of the organization.
• According to Him, informal organization results from the desires of organization members to
satisfy various needs which the formal organization neglects.
• Application of the principles of formal organization create situations in which:
 The employees are provided minimal control over their work-day world.
 They are expected to be passive, dependent and subordinate.
 They are expected to have a short-time perspective.
 They are induced to perfect and value the frequent use of a few shallow abilities.
• All these characteristics are incongruent to the needs of adult human beings.
• Argyris’ analysis suggest that this inevitable incongruences increases:-

Administrative World Page 112

 PAPER 01

 As the employees are of increasing maturity

 As the formal structure is made more clear-cut and logically tight for maximum
effectiveness
 As one goes down the line of command and as work becomes more ‘mass production’
centred.
• The emphasis on managerial controls make the employees feel dependant on their superior
and fearful of the staff in charge of the various types of control.
• For example, employees and superiors tend to perceive control as punishments.
• Similarly, evaluative techniques are perceived as unfair in that they continually accent failures
without showing why such failures may be necessary.
• These conditions tend to increase the probability of the psychology of failure and decrease the
probability of success.
• In brief, the managerial controls focus on the financial costs the organization incurs and do not
concern themselves with human costs.

Management’s Dominant Assumption

• Top administrators tend to diagnose the problem in another way.
• They observe their employees while at work and they conclude that employees are lazy,
uninterested, apathetic, money-crazy and create errors & waste.
• Management blames the employees and “sees” the disloyalty & disinterest as being caused by
the employees.
• Management initiates programmes to “change peoples’ attitudes” and “to make employees
more interested in organization”.
• Authoritarian leadership reinforces and perpetuates the ‘damage’ created by organizational
structure.
• Pressure-oriented directive leadership compounds the felony that the formal organization
commits.

Individual & Group Adaptation

• The informal organization is thus born to weaken conflict between the needs of individuals &
organization and the resultant frustration.
• Argyris Hypothesises that the formal organization creates in a healthy individual feelings of
failure and frustration, short-term time perspective and conflict.
• At the same time, it fails to satisfy the higher-order needs of the employees.
• The individuals adapts to the impact of the organization by any one or a combination of
behaviours; leaving the organization, climbing the organizational ladder, using defence
mechanisms and becoming apathetic and disinterested.
• These are all adaptive mechanism and therefore need fulfilling.
• In order to guarantee his existence, the individual employee also seeks group sanctions.
• The informal work groups are ‘organised’ to perpetuate these adaptive processes to reward
those employees who follow the informal codes and to penalise those who do not.
• The individual adaptive acts now become sanctioned by the group, and provide feedback to
reinforce the continence of the individual need- fulfilling behaviour.

Strategies for Organizational Development

1. Immaturity-maturity Theory:- organizational should provide an environment for the
development of the individual towards personal or psychological maturity.

Administrative World Page 113

 PAPER 01

2. Improving the interpersonal competence of the employees.

3. Fusion Process Theory
4. New Organizational Structure( including Matrix organization):- changes must be introduced to
transform the traditional pyramidal form of organization.
5. 5 methods of integrating individual and organizational goals:-
1. Proper work climate
2. Job-enlargement
3. Participative leadership
4. Double-loop learning technique
5. T-Group Training (Sensitivity Training)

Immaturity- maturity Theory

• It is also known as personality model.
• According to him the organization should provide an environment in which an individual is able
to develop his personality from state of infancy to a state of personal/psychological maturity.
• This progression consist 7 developments
1. Passive(like infants) - active(like adults)
2. Dependent - independent
3. Limited behaviour  different behaviours
4. Shallow interests  stable & deeper interests
5. Short-time perspective  long time perspective
6. Subordinate position  equal/superordinate position
7. Lack of self-awareness  self-awareness and self-control
• Psychological maturity is achieved when the individual has acquired the ability to foresee
consequences, to pursue interests consistently, and to own responsibilities equal to superior or
what other accept.
• Effective management must aim at development of individual towards personal/psychological
maturity.

Interpersonal Competence
Interpersonal competence  ability to deal effectively with an environment populated by other
human beings.
• Organization are presumed to be able to function better if their members are more
interpersonally competent. However Argyris found that competence involving interpersonal
skills have been woefully neglected
– People do not trust each other & feel reluctant in being honest about their own
feelings
– They find excuses for their acts
– They stick to their old ways and never try new ones
– Frank openness of manner and commitment to the job are lacking.
• to increase interpersonal competence, he has specified 4 types of behaviour:-
– Accepting responsibility for one’s ideas & feelings
– Showing openness to ideas and feelings of those above and below one’s self
– Experimenting with new ideas and feelings
– Helping others to accept, show and experiment their ideas and feelings.

Administrative World Page 114

 PAPER 01

Fusion Process theory

• Chris Argyris and E.W. Bakke developed this theory.
• According to this theory, both the organization and the individual seek to attain self-realization.
– The individual uses the organization to further his own goals known as personalizing
process
– The organization uses the individual to reach its own goals known as socializing
process.
• The simultaneous operation of both these processes is called as the Fusion process.
> Argyris claims that
healthy people seek work situations that offer them autonomy, treatment as equals and to
show their ability to deal with complex situation.

New Organizational Structure

• According to him, organization of future will be combination of both the old and new forms of
organizations.
• Argyris’ structures are based on the requirements of the task & the nature of decision-making.
1. Structure 1:- The Pyramidal structure
a. Should be used to perform limited routine tasks.
b. Effective for non-innovative activity
2. Structure 2:- the modified/adapted formal organizational structure
a. Scope for subordinate’s participation in decision-making with the option that superior
have overriding power.
3. Structure 3:- power according to functional contribution
a. Applicable in situation involving team work, group incentive & long range planning.
4. Structure 4:- The Matrix Organization
– Under this structure, each individual has equal power and responsibility.
– A matrix organization is expected to eliminate superior-subordinate relationships and
substitutes for them individual self-discipline.
– Each individual would have the freedom to terminate as well as to create new activity.
– A matrix organization would be rid of internal monopolies which seem to be the bane of
most traditional departments.
– It is designed less around power and more around who has the relevant information.
– Project teams are created to solve specific problems; project teams perform all relevant
managerial function. Each member is given equal responsibility & power to solve the
problem.
– Leaders of the project team should be consistent with the management approach. The
leader must be able to manage inter group conflicts apart from helping the employees to
understand the internal environment.
– Future organization will be the classical organization but its style of management will be
matrix. Authority would be based less on power and more on the possession of expertise
and information.

5. Methods of integrating individual & organizational goals

Argyris Suggest the following methods to enable the organization to achieve the integration of the
needs of the individuals with the goals of the organization:-
1. Proper Work Climate:-

Administrative World Page 115

 PAPER 01

– Change the structure so that everyone has a chance to develop as an individual and as
a member of a group
2. Job-enlargement:-
– To reduce anti-organizational behaviour of employees
– It means increasing variety of jobs, responsibility and autonomy to the employees.
3. Participative leadership:-
– In this leader consults with subordinates and allows them to determine many of their
work conditions.
4. Double-loop learning technique:-
– Manager acts on valid information.
– It involves learning from others rather than from one’s self perpetuating experience.

T-Group Training
• It is a kind of programmed learning technique.
• T-group technique consists of a laboratory programme designed to provide opportunities for
individual employees to expose their behaviour, give and receive feedback, experiment with
new behaviour and develop awareness and acceptance of self and sensitivity to the
personalities of others.
• This training technique focuses on building a trusting and open environment in which to
explore personal insights and interpersonal relations.
• Argyris says that this is not education for authoritarian leadership. Its objective is to develop
effective, reality centred leaders.
• This helps individuals to determine if we wish to modify our old values and develop new ones
and thus develop other leadership styles if we wish.
• Its purpose is to teach the participants human relations communication and leadership skills.

Criticisms by Argyris
1. Criticism of Socio-psycho approaches:-
• Argyris is highly critical of the approaches & work of both – industrial psychologists &
organizational sociologists.
• Many psychological researchers tended to place the environment in a black box.
• The organizational sociologists like Blau, Thompson etc. have ignored much of the research on
personality, interpersonal relationship and group dynamics.
• While studying organizations as wholes, they seem to ignore the admittedly critical parts of the
organization.
• Individual behaviour, small group behaviour and inter-group behaviour represent important
parts that helps to create the whole. .
• The nature of man implicit in their research is one of a mechanistic, closed-system; man is a
passive creature with little influence on the organization.
• Finally, Argyris states his own view of organizational reality:-
“I would prefer a view of reality where the sociological and psychological level variables interact and
reinforce each other. The pure psychological approach tends to lead to views of man that ignore the
constraints culture and social structures make and thus results in ignoring the deep psychological
issues involved in making a continual choice to give up aspects of one’s individuality and autonomy
in order to maintain one’s uniqueness and freedom.”

Administrative World Page 116

 PAPER 01

Critique of Herbert Simon

• Simon’s “rational man organization theory” was criticised by Argyris on several grounds.
• Argyris considers that Simon's reliance on the descriptive-empirical approach and the concept
of ‘satisficing man’, support status-quo in organizational life.
• Simon’s theory has no place for self-actualizing individuals.
• Argyris goes to the extent of bracketing Simon along with the traditional theorists for
emphasising the importance of authority structure for paying insufficient attention to be
emotional side of man and for ignoring the hostility, anger and negative feelings of a typical
employee towards the organization and goals.

Criticisms of Argyris
• Criticisms of Argyris’s theories fall into 3 broad categories.
1. Argyris’ utopian concept of self-actualization:-
• To Simon, self-actualization is synonymous with anarchy.
• Simon also takes objection to the view that organizations should be “be-all & end-all” of self-
actualization; it would be more realistic for organizations to plan for reducing the working
hours enhancing leisure to enable employees to seek self-actualization.
2. Argyris’ antipathy to authority:-
• Simon criticised Argyris’ strong antipathy to authority. The view that “structure is devil” is
influenced by Argyris’ obsession with the need of the power.
• In choosing de-emphasis of authority, Argyris neglects organizational effectiveness.
• What corrupts is not power, but the need for power; it corrupts both the powerful and the
powerless.
3. Objections on methodological grounds:-
• Little empirical evidence that people in organizations singularly oppose authority.
• Ideas of Argyris are too contemporary to find a precise place in administrative theory.

In His Defence
• Argyris has been able to sharpen the various facets of the human relations and participative
schools of thought on organizations.
• His objective is to build healthier organizations and to raise the quality of life in them, providing
a suitable environment for self-actualization.
• Focus on improving interpersonal competence and how interpersonal competence can be
thought of as a skill that can be learned.
• Argyris view individual & organization not only as inter-related but actually as inter-penetrating
phenomenon.
• His observation concerning the frequent recourse to the use of defence mechanism when the
higher-order needs of individuals g attended, has considerable empirical support.

Administrative World Page 117

 PAPER 01

10. Rensis Likert

Rensis Likert (Leadership)

Life & Works
• Likert was born in Wyoming in 1903. he was an American psychologist, educator and
management theorist.
• The scope of behavioural studies extends from individual personality and motivation dynamics
to organization culture and climate and their impact on work performance, job satisfaction and
organization effectiveness and development.
• Likert’s “Management systems I-IV” represents a major breakthrough in the researches in this
field.
• He is known for his studies on organization and analysis of management styles.
• His famous work:-
– A technique for measurement of attitude(1932)
– Developing patterns in management (1955)
– New patterns of management (1961)
– The human organization: its management & value (1967)
– New ways of managing conflict. (1976)

Contribution
• His contribution are mentioned under 2 title:-
1. Social survey:- contribution to statistical evaluation tools of social surveys and the Likert Scale.
• Likert scale is helpful in measuring social behaviour. 5 point scale measured the opinion
between the range of “strongly agree” to “strongly disagree”
2. Concept of Leadership
Leadership is a phenomenon of giving guidance to an organization.
Two style of leadership:-
1. Job centred
2. People centred

Job Centred Supervisors

The primary concern is to ensure performance of assigned tasks and maintenance of prescribed
standard. The characteristics of such supervisors are:-
• Exert heavy pressure to get work done
• Have little confidence in the subordinates
• Exercise close and detailed supervision
• Allow little freedom to subordinates
• Are punitive and critical when mistake occurs.

Administrative World Page 118

 PAPER 01

Employee Centred Supervisors

They are primarily concerned with the human aspects of their subordinates and effective team building
for high task performance. The characteristics are:-
• Exert little pressure on subordinates
• Earn and get the confidence and trust of their subordinates
• Increase the achievement motivation of subordinates and encourage them to accept high
performance goals though group decision process.
• Exercise general rather than detailed supervision and allow subordinate to schedule their own
pace of work
• Help subordinates when mistakes and problems occur.

4 System Of Management
The most important contribution of Likert lies in his conceptualization of different system of
management. According to him, the efficiency of an organization or its departments is influenced by
their system of management.
These systems describe the relationship, involvement and roles of managers and subordinates in
industrial setting.
Likert categorised his four management systems as follows:-
1. Exploitative-authoritative
2. Benevolent-authoritative
3. Consultative
4. Participate.

Exploitative Authoritative System

• In this type of management system the job of employees/subordinates is to abide by the
decisions made by managers and those with a higher status than them in the organization.
• The subordinate do not participate in the decision making.
• The organization is concerned simply about completing the work.
• The organization will use fear and threats to make sure employees complete the work set.
• There is no teamwork involved.

Benevolent-Authoritative System
• Just as in an exploitative system, decisions are made by those at the top of the organization
and management.
• However employees are motivated through rewards( for their contribution) rather than fear
and threats.
• Information may flow from subordinates to managers but it is restricted to “what management
want to hear”

Consultative System
• Subordinates are motivated by rewards and a degree of involvement in the decision-making
process.
• Management will constructively use their subordinate ideas and opinions.
• However involvement is incomplete and major decisions are still made by senior management.
• There is greater flow of information (than in benevolent authoritative system) from
subordinates to management.
• Although the information from subordinate to manager is complete and euphemistic.

Administrative World Page 119

 PAPER 01

Participative (Group) System

• Management have complete confidence in their subordinates/employees.
• There is lots of communications and subordinates are fully involved in the decisions making
process.
• Subordinates comfortably express opinions and there is lots of teamwork.
• Employees throughout the organization feel responsible for achieving the organization's
objective.
• This responsibility is motivational especially as subordinates are offered economic rewards for
achieving organizational goals which they have participated in setting.
• Teams are linked together by people who are members of more than one team.
• Likert calls people in more than one group “linking pins”
• 4 management systems arrayed along 2 dimensions:-
• First is the type of authority or control an organization exercise over its members.
• Second relates to the operating characteristics of organization; this include leadership,
motivation, communication, interaction, influence, decision-making, goal-setting, goal-
performance and control analysed.
• He favoured system 4 because of its commitment to giving the decision-making power to
employee and express their ideas & feelings.
• System 4 has 3 basic concept:-
• Principle of supportive relationship
• Group decision making & methods of supervision
• High performance goals for the organization.
• Likert considers system 4 as an ideal model of management and suggest applications for
transfer of systems from system1 to system4.
• he proposes improvement cycle with elaborate guidelines for the application of organizational
improvement.
• Likert suggested internal management and monitoring systems based on casual, intervening
and end result variables.

Supportive Relationship
• Likert postulates supportive relationship as a contributing factor of a high performance of
management.
• He conceives of an interaction-influence system to maximise skills, resources and motivation of
individuals at different levels of organisations and elaborates the characteristics of the system:-
o Each member will find his personal values, needs and goals reflected in those of the
workgroups and organization as a whole;
o Every member of the organization would be identified with the objective of organization and
the goals of his workgroup and see the accomplishment of them as the best way to meet his
own needs and personal goals;
o Pressure for high performance come from the member themselves.
o Authentic and sensitive communication processes within and between workgroups would
ensure accurate information flow.
o Every member will be able toe exert his influence on decisions and actions of organization.
o Cooperative motivation, communication and decision processes will enable each member in
any part of the organization to exert his influence and contribute his idea.
It is important to recognise that this type of system is a far cry in the traditional organization.

Administrative World Page 120

 PAPER 01

Linking Pin Model

• To overcome the difficulties of traditional system and to facilitate the growth interaction-
influence, Likert suggested Linking Pin Model.
• In this model each individual in the organization has twin roles in two overlapping groups.
• He is a member of a higher-level group and leader of a lower-level group..
• Group functions and processes become far more important than individual roles in this model.
• They grow upwards from the organizational base in sharp contrast to top-down management
of classical organization.

Managing Conflicts
• In his search to evolve new patterns of management based on cooperative and supportive
relationship, Likert focused attention on new ways of managing conflicts.
• He defines conflict :- “as the activity striving for one’s own preferred outcome, which if
attained, precludes the attainment by other of their own preferred outcome, thereby producing
hostility”.
• 2 kinds of conflicts:-
– Substantive Conflict:- this conflict is rooted in the substance of the task.
– Affective Conflict:- this conflict derived from emotional, effective aspects of
interpersonal relations.

Criticism
• The linking pin model is often accused of doing nothing more than drawing triangles around
the traditional hierarchical structure.
• It is also criticised as slowing down the process of decision-making
• Some critics describe “new pattern of management” as little more than summary of good
management practices.

In His Defence
• Likert’s most important contribution to management thought and practice is his systematic
analysis of goof management and extending their frontiers of knowledge and application.
• Despite criticisms, the linking pin model has its own advantages.
• The system-4 concepts hold out prospects of development of advanced forms of human
organization.
• He earned his place among management thinkers and researches for laying the empirical
foundations for the development of management science.

Administrative World Page 121

 PAPER 01

11. Douglas McGregor

Douglas McGregor (Motivation Theory)

Life & Works
• Douglas McGregor was born in 1906 in Detroit, USA and was Professor of Industrial
Management at the Massachusetts Institute of Technology.
• In his quest for productivity, McGregor develops two managerial approaches called Theory X
and Theory Y.
• The theories are published in his “The Human Side of Enterprise”, (1960).
• McGregor was greatly influenced by Abraham Maslow and made him the starting point for his
work.
• The main argument of McGregor’s work is that “the theoretical assumptions which the
management holds about controlling its human resources determine the whole character of
the enterprise.”
• McGregor’s major works are:
• • The Human Side of Enterprise (1960).
• • Leadership and Motivation (1966).
• • The Professional Manager (1967).

Theory X & Theory Y

• McGregor developed Theory X & Theory Y and made significant contributions to the
understanding of human nature and behaviour in organization.
• The management’s action of motivating human beings in the organisation, according to
McGregor, involves certain assumptions, generalisations and hypotheses relating to human
behaviour and human nature.
• These assumptions serve the purpose of predicting human behaviour.
• The basic assumptions about human behaviour may differ considerably because of the
complexity of factors influencing human beings.
• McGregor presents these assumptions on two opposite sides: Theory X and Theory Y.

Theory X
• The assumptions underlying Theory X are the following according to McGregor:
 The average person is lazy and works as little as possible.
 People lack ambition, dislike responsibility, and prefer to be led.
 People are inherently self-centred and indifferent to organisational needs.
 People are resistant to change.
 Most people are gullible and stupid.
• Theory X views that people are passive or resistant to organisational needs and need to be
persuaded, rewarded, punished or controlled to achieve organisational needs.

Administrative World Page 122

 PAPER 01

• Theory X is based on the traditional conception of control and direction. It is traditionally

known as “the carrot and the stick” theory, and is based practically on the mechanistic
approach to human relations.
• Managers subscribing to these views about human nature attempt to structure control and
closely supervise their employees.
• McGregor believes that these assumptions about human nature have not changed drastically
though there is a considerable change in behavioural patterns.
• McGregor himself questions the validity of Theory X. The assumptions about human motivation
fail to motivate employees to work toward organisation goals. He says “the ‘carrot and stick’
theory of motivation which goes along with Theory X works reasonably well under certain
circumstances”. But this “theory does not work at all once man has reached an adequate
subsistence level and is motivated primarily by higher needs”. McGregor argues that theory X
fails to describe or explain human nature.
• McGregor argues that theory X fails to describe or explain human nature. McGregor’s
generalisation is that “so long as the assumptions of theory X continue to influence managerial
strategy, we will fail to discover, let alone utilise the potentialities of the average human
being”.

Theory Y
• Theory Y takes the opposite view and assumes that:
 People are not by nature resistant to organisational needs.
 People have a latent capacity to develop and accept responsibility.
 People can be motivated towards management goals.
 Management must arrange matters so that people can achieve their goals through
organisational objectives.
• The assumptions of Theory Y suggest a new approach in management
• Theory Y postulates that people can be encouraged to perform better and thus recommends
increased decentralisation of power, delegation of responsibility, job enlargement, employee
participation, consultative management and performance appraisal in which the employee
actively participates

Comparison

Theory X
• Theory X emphasises that people do not have ambitions and try to avoid responsibilities in jobs
• According to Theory X, most people have little capacity for creativity
• motivating factors are the lower needs
• people lack self-motivation and require be externally controlling and closely supervising to get
maximum output from them.
• emphasises scalar chain system and centralisation of authority in the organisation
• emphasises autocratic leadership

Theory Y
 The assumptions under Theory Y are just the reverse.
 The capacity for creativity is widely distributed in the population.
 Higher order needs are more important for motivation, though unsatisfied lower needs are also
important.
 People are self-directed and creative and prefer self-control.

Administrative World Page 123

 PAPER 01

 Emphasises decentralisation and greater participation in the decision making-process.

 Emphasises democratic and supportive leadership styles.

Administrative World Page 124

 PAPER 01

Administrative World Page 125

 PAPER 01

1. Decision Making

Administrative Behaviour
Decision-making Process
• Decision-making is an everyday phenomenon.
• It is the basis of all organization be it public or private.
• Out of all problem in administration Problem of decision-making is most difficult.
• In Public Administration, we need right decisions.
• Decisions are not free from outside influence.
• A good leader is the one who can decide, who can solve the problem “to do or not to do” &
who can willingly take the responsibility of decision-making.
• Decision making is defined as selection of a course of action from amongst alternative & it
covers matters relating to planning, organizing, directing, staffing and controlling. A decision is
an act of choice wherein an executive forms a conclusion about what must be done in a given
situation.
• The first comprehensive analysis of the decision-making process is given by Chester Barnard.
• Herbert Simon is the foremost decision theorist.
• According to Terry, it is “the selection of one behaviour alternative from two or more possible
alternatives.”
• According to Ishwar Dayal, “decision is the commitment of the decision maker to act, thereby
committing the personnel, material and financial resources of the organization towards the
action objective.”
• Decision-making includes all the considerations that go into identifying a problem, reaching to
a conclusion and then taking action.
Characteristics:-
• Decisions are usually made to achieve some purpose or goal.
• No decision stands alone. They are all linked together in a sequential chain.
• It occurs over a period of time so that concurrent events influence the outcome.

Approaches to decision-making
• Since decision-making is a complex administrative process, many approaches have developed
in the course of actual decision-making.
• Four such approaches can be identified as important:-
1. Rational approach:- this is basically efficiency oriented and seeks to explain production of
maximum ‘output’ by expending a given level of ‘inputs’. Once there are agreement on basic
goals, the rational approach works very well. Hence this is applicable mostly to small scale
technical problem like which kind of information technology the police should be using to
communicate across the organization.

Administrative World Page 126

 PAPER 01

2. Bargaining approach:- decision-making is essentially value-laden and conflict prone. It is

always better to conduct limited analysis, as great goals are generally beyond reach. The
bargaining approach suggest that in a such a situation “partisan mutual adjustment”- the
polling and hauling among decision makers – offers the best hope for the best decisions.
3. The participative approach:-
• As the name suggest, is found more directly on the idea of political democracy. It calls
at the general level for participation by those who will be affected by the decision.
• Participative decision-making is very powerful method, is generally being pursued in
rural development and urban community development projects
4. The Public Choice approach:- it has gained considerable prominence in recent time.
• It is argued that public officials, like all other individual are self-interested and that want to
avoid risk and promote own careers. So self-interested bureaucrat are likely to produce bigger
government that is both inefficient and operating against the public interest. . The proponents
of public choice schools are in favour of turning over governmental functions to the private
sector, wherever possible.
• To sum up, the different approaches to decision-making underline the importance of plurality
of ways of decision-making. Clearly, no single approach can be taken as solution to the
problems of decision-making.
Bases or Factors
• Secker-Hudson gave a list of following 12 factors which are considered in decision-making
1. Legal limitations
2. Budget
3. Mores
4. Facts
5. History
6. Internal morale
7. Future as anticipated
8. Superiors
9. Pressure groups
10. Staff
11. Nature of programme
12. Subordinates.

Process/Stages
Terry Lays down the following sequence of steps in decision-making:-
• Determine the problem
• Acquire general background information and different viewpoint about the problem
• State what appears to be the best course of action
• Investigate the propositions and tentative decisions
• Make the decisions and put it to effect
• Institute follow-up and, if necessary, modify decision in the light of results obtained.

Classification
The decisions are classified into various types by various thinkers:-
Herbert Simon
1. Programmed
2. non-programmed decisions

Administrative World Page 127

 PAPER 01

Peter Drucker
1. Generic Decisions
2. Unique Decisions
They resemble programmed and non-programmed decisions respectively.
Chester Barnard
1. Organizational:- taken by an executive in his official capacity.
2. Personal:- taken by executive in his individual capacity.
Further classification
• Policy and operating decision:- Policy decision are of fundamental character affecting the
organization. They are taken by top management. Operating decisions are meant for executing
the policy decisions.
• Individual and group decisions- individual decisions are those which are made by individual
mangers in the organization. Group decision are made by a group of managers in an
organization.

Models
• There are 4 popular models of decision-making
1. Simon’s Bounded rationality model (Watch the lecture “Hebert Simon”)
2. Lind bloom's incremental model
3. Etizioni’s mixed-scanning model
4. Dror’s optimal model
Lind bloom's Incremental Model:-
• it is diametrically opposite to Herbert Simon’s “rational comprehensive model”
• He says that the actual decision-making in administration is different from the way it is
generally described in theory.
• He highlights the various limitations like money, time, information, politics and others, which
govern the actual decision-making process in the administration.
• He opined that the decision-makers always continue the existing programme with some
additions. Thus he argues that what actually occurs in administrative decisions is
“instrumentalism’, that is, virtual continuation of the previous activities with few modifications.
• The incremental model is also called as ‘branch technique’ or step by step decision-making or
model of successive limited comparison.
• Thus, Lind bloom assume that the past activities and experiences are used y the administrators
to make future decisions.
• He used two concepts to describe the actual decision-making process in administration
‘marginal instrumentalism’ and ‘partisan mutual adjustment’
Etizioni’s Mixed-Scanning Model:-
• Etizioni suggested and intermediate model that combines the elements of both rational
comprehensive model and incremental model.
• He broadly agrees with Lind bloom's criticism of rational model. However, he also says that
incremental model is having two main drawbacks
– It discourage social innovation and is thus partisan in approach.
– It cannot be applied to fundamental decision.
Dror’s Optimal model:-
• He suggests an optimal approach to policy making (decision-making) and policy analysis. He
claims that his “optimal model” is superior to all the existing normative models of decision-
making and is a combination of economically rational model and extra-rational model.

Administrative World Page 128

 PAPER 01

• Dror’s optimal model is a rationalist model of policy-making. It has 5 major characteristics :-

1. It is qualitative and not quantitative
2. It contains both rational end extra-rational elements.
3. It is basic rational to economically rational
4. It is concerned with meta policy-making
5. It contains a built-in feedback.
• Dror advocates the speedy development of the policy science to adequately solve the critical
problems of society.
• Dror, in the words or Rumki Basu, “pleads for the adoption of the best policy by a judicious
evaluation of goals, values alternatives, costs and benefits based on the maximum use of all
available information and scientific technology. He even recommends extra-rational aid to
facilitate effective policy analysis.

Administrative World Page 129

 PAPER 01

2. Communication

Communication
The word ‘communication’ originated from the Latin word communicatio from the verb communicatre
which means ‘to share’

Communication literally means ‘the imparting or exchanging of information by speaking, writing, or

suing some other medium.’

• Communication is the transfer of information from a sender to a receiver with the information
being understood by both the receiver and the sender.
• It is the sum total of all things one person does when he wants to create understanding in the
mind of another.
• It is a bridge of meaning.
• It involves a systematic and continuing process of telling, listening and understanding.
• Chester Barnard viewed communication “as the means by which people are linked together in
an organization to achieve a common purpose”
• Group activity is impossible without communication because coordination and change cannot
be effected.
Speaking and writing are the simple means of communication but with the changing times, it is carried
out by the major technological devices like the computers, smart phones, etc.
• Meeting and interactions are held virtually on the computer via internet.
• Businesses are run via computerised interactions from remote locations.
• Recent times have also seen political election campaigns run by video conferencing and
hologram addressing of rallies.
About 2300 years ago, while discussing the features of effective public speech, in his famous work
‘Rhetoric’, Aristotle said that communication comprises five elements –
1. The speaker (sender)
2. The speech (message)
3. The audience (receiver)
4. The occasion (context)
5. The effect (consequence)

Purpose of Communication
• The purpose of communication in an enterprise is to effect change to influence action towards
the welfare of the enterprise.
• Communication is essential for the internal functioning of the enterprise, because is integrates
the managerial functions.
• Communication is needed to:-
– Establish and disseminate goals of an enterprise
– Develop plans for their achievement

Administrative World Page 130

 PAPER 01

– Organise human and other resources in the most effective and efficient way
– Select, develop and appraise members of the organization
– Lead, direct, motivate and create a climate in which people want to contribute
– Control performance.
• But communication also relates and enterprise to its external environment.

Nature of Communication
1. Interchange of facts and thought from one person to another to bring about mutual
understanding.
2. A two way process involving sending of a message and receiving the feedback to that message.
3. A continuous ever-ending process.
4. A pervasive function. It applies to all phases of management and to all levels of authority.
Objective of communication:-
According to Keith Davis, the objectives of communication are:-
1. To provide the information, skill and understanding necessary for group effort
2. To provide the attitude necessary for cooperative relationship.

Communication Process
Communication process involves the sender, the selected transmission channel and the receiver.
1. The Sender of the Message:- communication begins with the sender, encode the message into
words, sign and symbols gestures.
2. Use of a channel to transmit the message:- the information is transmitted over a channel that
links the sender with receiver. A proper selection of the channel is vital for effective
communication.
3. The receiver of the message:- the receiver has to decode the message. Accurate
communication can occur only when both the sender and the receiver attach the same or at
least similar meanings to the message. Communication is not complete unless it is understood.
4. Noise and feedback in communication:- unfortunately, communication is affected by ‘noise’, it
hinders communication.
To check the effectiveness of a communication, a person must have some feedback. Feedback is
the reaction, reply or response which the receiver of the message sends to the sender.

Models of Communication/Theoretical Contributions

• Henry Fayol
 He is the first administrative thinker to give a comprehensive analysis of the problem of
communication in an organisation.
 He highlighted the importance of speedy communication and provided a meaningful
solution to the problem of communication, that is, to speed up the communication process
in the form of ‘gangplank’.
 He also stressed esprit de corps which can be achieved by only communication.
 It is termed as team building now, which can be done by communication,
between a sender and a receiver focussing on the integration.
• Chester Barnard
 He viewed organisation as a ‘cooperative system’ having 3 elements – common purpose,
willingness to contribute and communication.
 Thus, he viewed communication as vital dynamic of the organisational behaviour and
believed that it is a major shaping force in the organisation.

Administrative World Page 131

 PAPER 01

• Herbert Simon
 He defines communication as any process whereby decisional premises are transmitted
from one member of the organisation to another.
 He says, “It is obvious that without communication there can be no organisation, for there
is no possibility then of the group influencing the behaviour of the individual.”
 Like Barnard, Simon also stresses the informal channels of communication (also known as
grapevine) for the transmission of information.
• Norbert Weiner – Cybernetics Model
 He pioneered in the field of ‘cybernetics’.
 The word ‘cybernetics’ is derived from the Greek term ‘Kybernetics’, meaning steersman or
helmsman.
 This has greatly influenced the contemporary approach to communication.
 Norbert Weiner invented the term ‘Cybernetics’ in his book by the same name in which he
stated that communication is a complex problem.
 He mostly talked about it from a mathematical perspective but when applied to
organisation, he said that there is a general tendency of disintegration of an organisation
which is called ‘entropy’. Communication works towards the prevention of entropy.
Weiner says that organisational systems move in the direction of ‘positive entropy’, that is, the
organisational have a natural tendency towards disorder, disintegration, and self-destruction. This
tendency of organisational systems can be arrested through methodical information processing.
Thus, information is an antidote to positive entropy and enables the organisational systems to
reach a state of ‘negative entropy’, that is moving towards order and integration.

Shannon-Weaver Model
The most commonly used communication model is the Shannon-Weaver interpersonal communication
model. It was propagated by Claude Elwood Shannon in 1948 with an introduction by Warren Weaver.

Information
Transmitter Receiver Destinatio
Sources
n

Noise
Source

The Process of Communication

This model consists of following components

• Source • Message
• Encoding • Channel

Administrative World Page 132

 PAPER 01

• Decoding • Feedback
• Receiver • Noise

• The source is the initiator of communication, who wants to transmit his ideas, thoughts, needs,
intentions or other pieces of information to another person.
• Encoding is a process in which the ideas to be conveyed are translated into a code or set of
symbols or some other format of expression.
• The message is the actual physical product from the source-encoding. It represents the
meaning which the source wants to convey.
• The channel is the medium through which the message transmits. It is the connecting link
between the sender (the source) and the receiver.
• Decoding is the process which translates the message into a form that can be understood by
the receiver.
• Receiver is the person to whom the message is directed (conveyed)
• Feedback is the response from the receiver which enables the sender (the source) to determine
whether the message was received and understood as originally intended.
• Noise includes those factors in each of the components of communication that reduces the
accuracy or fidelity of message. Thus, it can occur at any stage in the communication process.

Significance of communication
Communication is as vital to the efficient functioning of an organization as the circulation of the blood
in the human body. It significance can be summarised in the following manner:-
• Scope of Organisation
 According to Barnard, ‘In an exhaustive theory of organisation, communication would
occupy a central place, because the structure, extensiveness, and scope of organisation are
almost entirely determined by communication techniques.
• Trust
 Communication helps in making the system transparent and building trust amongst the
employees across levels of hierarchy.
• Building relationships
 Open and strong communication brings individuals together across organisational levels to
interact and build interpersonal as well as professional relationships.
• Clarity
 Communication can define and clearly lay down the roles and functions of employees at
different levels of hierarchy.
• Collaboration and teamwork
 Effective and good flow of communication leads to a positive work environment which
helps in building willingly collaborative teams who want to work together.
• Globalisation
 Globalisation demands communication through electronic mails and remote location
meetings and interviews.
 An organisation grown efficiently with the new ways of communication
• Morale

Administrative World Page 133

 PAPER 01

 The morale of the individuals working in an organisation gets a boost with effective
communication as it brings out a positive environment in the workplace.
• Decision Making
 Thinkers like Herbert Simon have stressed on the importance of communication to reach a
well-informed sound decision.
 The quality of a decision depends highly on the information provided to the decision-
makers.
• Foundation of Delegation
 Delegation and consequently decentralisation improve with proper flow of communication.
 Since delegation rests upon clear definition of positions, roles and processes, effective
communication helps in achieving unambiguous delegation.
• Planning and coordination
 Effective communication takes ideas from all levels to the superiors who make plans. Good
planning and coordination follow as a result.
 Delegation is done to improve motivation among employees and to get things done
efficiently. This can be achieved with the help of good communication.

Channel/Types of Communication
Channel of communication can be divided into 2 categories:- Formal & Informal
• Formal Communication:- formal channel of communication refers to the paths of
communication which are officially created by the management.
• Informal channel of Communication is an unofficial channel is the result of the operations of
social forces at the workplace. It is also known as the ‘grapevine’ and supplements formal
communication.

Formal Channel of Communication

• Chain Network – the information and message flows only up or down in a hierarchical chain of
command. The chain can be upward or downward in a vertical direction.
A. Vertical Communication
 Downward Communication : the most popular conceptual framework of downward
communication has been given by Katz and Kahn in their work ‘The Social
Psychology of Organisations’ and called it ‘Communication down the line’.
 Upward Communication: it travels form subordinate to superiors. It is primarily
non-directive and usually found in participative organization.
B. Horizontal Communication: it is between the employees at the same organisational
hierarchical levels laterally. Since individuals at the same level share same type of
problems, it follows that horizontal communication within the unit is extremely important
for the system to function effectively.
• Star Network – the information and message flows among the group members through a leader,
that is, the central points.
 In other words, the group members do not communicate with each other directly but rely
on the leader to act as the central conduit. It is the most centralised type of formal
communication network.
 It is also known as the ‘Wheel’ network.

Administrative World Page 134

 PAPER 01

• Circle Network – the group members interact with the adjoining members only. In other words, the
information and message is transmitted laterally among the group members.
• All-Channel Network – all the members of a group actively communicate with each other freely. It
is the most decentralised type of formal communication network. It is also known as the
‘completely connected’ network.

Informal Channel of Communication

Keith Davis has investigated the phenomenon of grapevine (informal communication) in organisations.
He observed that the grapevine “cannot be abolished, rubbed out, hidden under the basket, chopped
down, tied up or stopped. If we suppress it in one place, it will pop up in another. If we cut off one of its
source, it merely moves to another one – quite similar to the way we change from one channel to
another on a television set…. In a sense, the grapevine is man’s birth right, because wherever men
congregate in groups the grapevine is sure to develop.”

Administrative World Page 135

 PAPER 01

Barriers to Communication
• Language barriers(semantic barriers) :- language and linguistic ability may act as a barrier to
communication. However even when communicating in the same language the terminology
used in a message may act as a barrier.
• Psychological barrier:- the psychological state of the communicators will influence how the
message is sent, received and perceived. E.g. stress, anger etc.
• Physiological barrier:- physiological barrier may result from the receiver’s physical state.
• Physical barrier:- an example of a physical barrier to communication is geographic distance
between the sender and receiver.
• Systematic barriers:- they may exist in organization where there are inefficient information
system or where there is a lack of understanding of the roles and responsibilities for
communication.
• Attitudinal barrier:- behaviour or perception that prevent people from communicating
effectively.
• Filtering - It refers to the sender’s purposeful and deliberate manipulation of information to be
passed on to the receiver.
• Dogmatism – this means that the attitudes, opinions and beliefs possessed by a person
prevents him from accepting accurate and additional information as it conflicts with the
current situations. This obviously affects the effective communication.
• Halo Effect – as explained by Hicks and Gullett, “The halo effect is the result of two-valued
thinking. In this situation, we see things only as dichotomies – good or bad, right or wrong,
white and black, and so on. The danger here is that most situations are not dichotomous and,
therefore, such thinking may over-simplifying most real situations.
• Stereotyping – this means that the content of communication is determined by the
expectations due to inadequate distinctions of objects or events. This interferes with effective
communication.
To improve your overall communication skills you need to be aware of and attempt to minimise any
barriers to communication that are present.

Overcoming Barriers
According to Terry, the following 8 factors make the communication effective

a) Inform yourself fully

b) Establish a mutual trust in each other
c) Find a common ground of experience
d) Use mutually known words
e) Have regard for context
f) Secure and hold the receiver’s attention
g) Employ examples and visual aids
h) Practice delaying reactions.

To Millet, 6 factors are essential to make a communication effective. The communication should be –

a) Clear

Administrative World Page 136

 PAPER 01

b) Consistent with the expectations of the receiver

c) Adequate
d) Timely
e) Uniform
f) Acceptable

The newly developed Management Information Systems (MIS) has improved the organisation
communication. The MIS means the application of information technology to the communication
process in organisation. It involves generating processing and transmitting information. It assists the
managers in problem-solving, decision-making and strategic thinking.

Effective Communication
• Effective communication is the responsibility of all persons, managers aw well as non-managers
in an organization who work toward common aim.
1. one of the first step is clarifying the purpose of the message to make a plan achieve the
intended end.
2. Avoid unnecessary technical and complicated terms.
3. The content of the message should fit into the recipient's level of knowledge.
4. It is important to consider the needs of the receivers of the information.
5. There is a saying that tone makes the music. Similarly in communication the tone of the voice,
the choice of language influences the reaction of the receiver.
6. Effective communication is the responsibility not only the sender but also of the receiver of the
information.
Most important guide for effective communication is “people have to stop talking before they can
listen”

Administrative World Page 137

 PAPER 01

3. Leadership

Leadership
• The success of every organization is dependent upon the quality of its leadership.
• All these tasks in an organization can be successfully performed only when it has an able
leadership
• KEITH DAVIS:- leadership is the ability to persuade others to seek defined objectives,
enthusiastically. It is the human factors which binds a group together and motivates it towards
goals.
• Alford and Beatty “the ability to secure desirable actions from a group of followers voluntarily,
i.e., without the use of coercion”.
Every group of people that performs near its total capacity has some person as its head who is
skilled in the art of leadership.
• This skill seems to be a compound of at least four major ingredient:-
1. The ability to use power effectively and in a responsible manner.
2. The ability to comprehend that human beings have different motivating forces at different
times and in different situations.
3. The ability to inspire
4. The ability to act in a manner depending on a climate conducive to responding to and arousing
motivations.
The fundamental principle of leadership is this:- since people tend to follow those who, in their view,
offer them a means of satisfying their own personal goals, the more a manager understand what
motivates their subordinates and how these motivations operate and the more they reflect this
understanding in carrying out their managerial actions, the more effective they are likely to be as
leaders.

Nature of Leadership
L. A. Allen – He differentiated between personal leadership and management leadership. He stated, “A
person is born with the talent for personal leadership; he must learn management leadership.

Chester Barnard – According to him, leadership depends upon three things – the individuals, the
followers and the conditions.

M.P. Follett – she says that the leader not only influences his group but is also influences by it. She
called this reciprocal relationship ‘circular response’. She observed, “we should think not only of what
the leader does to the group, but also of what the group does to the leader.”

Follett distinguished between three types of leadership –

i. Leadership of position, i.e., the leader holds a position of formal authority

Administrative World Page 138

 PAPER 01

ii. Leadership fo personality, i.e., the leader holds forceful personal qualities
iii. Leadership of functions, i.e., the leader holds both position and personality.

Millet – he states “Leadership is often made or broken by circumstances.” According to him, the
essential circumstances of leadership are two fold, that is, political and institutional.

Need for Leadership

• Daniel Katz and Robert Kohn provide the following reasons for need for leadership.
1. The incompleteness of formal organizational design:- a formal organization is generally
incomplete and imperfect. Its voids are generally filled by an informal organization. As a result,
a “real’ organization widely differs from a “formal "one. Leadership is needed to compensate
for the weakness inherent in these formal design.
2. Changing environment condition:- technological, legal, cultural and other kinds of changes
necessitate the corresponding changes to be brought about in the organization by a leader.
3. The internal dynamics of the organization:- as an organization grows, new complexities of
structure are created, new needs for coordination arise and invention of new policies becomes
a must.
4. The nature of human membership in organization:- human behaviour is determined by a
number of factors that are external to an organization. A organization has no control over
these forces. A Leader is needed to handle such situation.

Functions of Leaders
• According to Krech and Crutchfied, the functions of a leader fall into three categories as
described below:-
1. Functions of the leader in the setting and achieving of organizational goals:-
a) Policy making
b) Planning
c) Execution
2. Functions of the leader in the operations of an organization are:-
a) Expert
b) Representative of his group
c) Controller of an intra-group relationship
d) Motivator
3. Functions of a leader as a group figure are:-
a) Exemplar
b) Symbol of the group
c) Father figure
d) Scapegoat.

Philip Selznick – According to him, the functions of organisational leadership includes the following –
• The definition of institutional mission and role, that is, setting organisational goals and formulating
policies.
• The institutional embodiment of purpose, that is, helping the meaning of policy to percolate down
to lower level of the organisation
• The defence of institutional integrity, that is, maintaining the core values and distinctive identity of
the organisation.

Administrative World Page 139

 PAPER 01

• The ordering of internal conflict, that is, maintaining balance of power among competing interests
in the organisation.

Chester Barnard – He states that a leader performs the following four functions –
i. Determination of objectives
ii. Manipulation of means
iii. Control of the instrumentality of action
iv. Stimulation of coordinated action

Types of Leader
Types of leaderships can be sorted out into one or two basic models:-
• Behavioural models:- normative in approach, prescribe an ideal and the most desirable leader
behaviour.
• Contingency model:- question the existence of a single ideal style of leadership and suggest
that a number of behavioural styles may be effective or ineffective depending on the situation
or contingency that makes the environment.
Behavioural Models:- there are several theories on leadership behaviour and styles
i. Leadership based on the use of authority
ii. Likert’s four system of managing (Watch Lecture “Rensis Likert”
iii. The managerial grid
iv. Leadership involving a variety of styles, ranging from a maximum to a minimum use of power.

Types of Leadership
Leaders use their authority by using 3 basic style:-
Autocratic leadership, democratic or participative approach, free-rein or laissez faire.
• Autocratic Leadership:- in this, the leader alone determines and makes plans. He tells others
what to do and how to do it. There are variations also. Some autocratic leaders are seen as
“benevolent autocrats”

S S
S S S S
L L

S S S S
Autocratic Styles of Leadership Democratic Style of Leadership

Merits:-
• Increase efficiency, save time and get quick results.
• Chain of command and division of work are clear and fully understood by all.
Demerits:-

Administrative World Page 140

 PAPER 01

• Apparent efficiency, communication breakdown and costly errors.

• Leader is sole decision-makers and receives little information, ideas from people.
• Today authoritarian rule excludes them from involvement and reduces them to machine like
cogs without human dignity and importance.

Democratic/Participative leadership
• In this leader consults with his/her subordinates. Subordinates have considerable freedom of
action. A part of the leader’s task is to encourage and reinforce constructive interrelationships
among members and to rescue intra-group conflict and tension.
Merits:-
a) Participative leader has the critical factor of built-in personal motivation of working for his
followers.
b) This type of leadership permits and encourages people to develop, grow and rise in the
organization.
Demerits:-
a) It may prove very time-consuming and if not exercised properly may degenerate into a
complete loss of leader’s control.
b) Some leaders may use this type as a way of avoiding responsibility.

Free-rein or Laissez faire

Free-rein or Laissez faire:-
• In this type of leadership, the leader uses his/her power very nominally.
• Such leader depends largely on subordinates to set their own goals and the means of achieving
them.
• The leader only provides information's, materials and facilities to his/her men to enable them
to accomplish group objective.
S S
S S

S S

S
S S
S S

Laissaz – Faire style ofS Leadership

S

Approach to Study Leadership

There are three theories/approaches of leadership
S –

i. Trait Theory
ii. Behavioural Theory
iii. Situational Theory

Trait leadership
• The trait approach to leadership concentrates on the idea that great leaders are born with the
given abilities, and not a learned ability.
• Prior to 1949, studies of leadership were based largely on an attempt to identify the traits that
leaders possessed.

Administrative World Page 141

 PAPER 01

• Starting with the “great man” theory that leaders are born and not made, researchers have tried to
identify the physical, mental and personality traits of various leaders. The “great man” theory lost
much of its acceptability with the rise of the behaviourist school of psychology.
• Stogdill found that various researches has identified specific traits related to leadership ability:-
Five physical traits:- energy, appearance, height etc.
Four intelligence and ability traits
Sixteen personality traits:- adaptability, aggressiveness, persistence, initiative etc.
And nine characteristics :- cooperativeness, interpersonal skills, administrative ability etc.

Criticism of Trait Theory

1. There is the problem of defining and agreeing upon traits.
2. The difficulty exists in trying to measure traits.
3. There is difficulty in methodology also.
4. This approach overlooks the situational requirement of leadership qualities.
5. This approach implies that training cannot make a man a leader if he is devoid of certain born
qualities. This is not true.

Behavioural Theory
• Unlike the trait theory which concentrated on what leaders ‘are’, the behavioural theory
concentrates on what leaders ‘do’.
• The behavioural researchers sought to find out what the leaders do, how they lead, how they
behave, how they motivates subordinates, how they communicate, and so on.
• They concentrated on leadership functions and styles.

The following table gives you the details of various contributions to the growth of behavioural theory of
leadership –

Studies/Models, years and Identified Leadership Style/Variables Most Effective Leadership

Persons Associated Style
Iowa University Leadership Authoritarian, Democratic and Laissez Democratic style
Studies, Late 1930s, Kurt Faire
Lewin, Ronald Lippit &
Ralph White
Ohio State University Initiating Structure (Directive Type) A combination of high
Leadership Studies, 1945, And Consideration (Participative Type) initiating structure and high
E.A. Fleishman, E.F. Harris consideration
and H.E. Burrt
Michigan University Production-centred and Employee- Employee-centred leadership
Leadership studies, 1946, centred
Rensis Likert and his
associates
Four Systems of System 1 (Exploitative Authoritative). System 4 (Participative Group
Management Leadership, System 2 (Benevolent – Authoritative or Democratic Style)
1961, Rensis Likert System 3 (Consultative),
System 4 (Participative Group or
Democratic)
Managerial Grid, 1964, Five styles of leadership, i.e. Team Leadership (high
Robert Blake and Jane 1. Impoverished (low concern for concern for both production
Mouton production and for people) and people)
2. Country Club (low concern for

Administrative World Page 142

 PAPER 01

production and high concern for

people)
3. Task (high concern for production
and low concern for people)
4. Middle of the Road (Moderate
concern for production and for
people)
5. Team (high concern for production
and for people)

Situational Theory
• Both trait and behavioural theories failed to provide an overall and satisfactory theory of
leadership as they ignored the situational factors in determining the effectiveness of leadership.
• Hence, research scholars turned their attention to the situational dimension of leadership.
• They asserted that the leadership effectiveness is determined by the various situational factors in
addition to the traits and behaviour of the leader himself.
• This theory believes that the leadership is influenced by situational variables and thus differs from
situation to situation.
• It views leadership in terms of a dynamic interaction between a number of situational variables like
the leader, the followers, the task situation, the environment and so on.
• Thus, according to this theory, Leadership is multi-dimensional.

The following table gives the details of various contributions of scholars to the growth of situational
theory of leadership

Theories, Years and Situational variables and Leadership Styles

Propounders
Continuum of leadership The leader can choose the leadership style based on the forces
Behavioural or Styles, 1958, i. In himself
revised in 1973, Robert ii. In his subordinates
Tannenabaum and Warren iii. In the situations
Schmidt The two ends of the continuum consisting of a range of
styles/behaviour are Boss-centred Leadership and Subordinate-Centred
Leadership
Contingency Model of The effectiveness of the leader is contingent upon
Leadership Effectiveness, i. The leader-members relations
1967, Fred E. Fiedler ii. The task structure, and
iii. The leader’s position power
Path-Goal Theory of This theory is based on the expectancy theory of motivation. The
Leadership Effectiveness, effectiveness of leadership styles (Directive, Supportive, Participative
1970-71, Martin Evans and and Achievement – oriented) is contingent upon two factors –
Robert House i. Characteristics of subordinates
ii. Environmental pressures
Three Dimensional Model In his model, Reddin uses three dimensions of task-orientation,
of Leadership effectiveness, relationship-orientation, and the effectiveness and identifies four
1970, William Reddin effective and four ineffective styles of leadership based on the
situation.
Decision Participation Three variables affect the performance of the leader in terms of his

Administrative World Page 143

 PAPER 01

Model, also known as capacity as a decision-maker

Leader-Participation Model, i. Quality of the decision
Normative Model and ii. Degree of acceptance of the decision by subordinates
Leadership-Decision theory, iii. Time required to make the decision
1937, Victor Vroom and
Philip Yetton
Life Cycle (later termed the The model focuses on the level of ‘maturity’ of the followers as a
Situational) approach to contingency variables affecting the styles of leadership (Telling, Selling,
leadership, Paul Hersey and Participating, and Delegating)
Keneth Blanchard

Administrative World Page 144

 PAPER 01

4. Motivation

Motivation
Motivation: The Carrot & the Stick
• This metaphor relates to the use of rewards and the penalties in order to induce desired
behaviour.
• Despite all researches and theories of motivation, reward and punishment are still considered
strong motivators.
• Carrot means some kind of inducement such as money.
• The stick in the form of fear – fear of loss of job, loss of income, reduction of bonus or some
other penalty has been a strong motivator.
• It is not the best kind of stick. It often gives rise to defensive or retaliatory behaviours, such as
joining some union organization, providing poor quality of work, avoiding any risk in decision
making and even practising dishonesty.
• But the fear of penalty cannot be overlooked.

Motivation Theories
• We can classify motivation theories under three broad categories
1. Content theory:- this theory attempt to determine such needs of an individual which energise
and direct his behaviour.
2. Process theory:- this theory explain how a particular behaviour of an individual is energised
and directed.
3. Reinforcement theory:- this emphasises the ways in which a behaviour is learned.

Content Theory
1. Maslow’s Hierarchy of Needs Theory
2. Alderfer’s ERG theory
3. Herzberg’s motivation hygiene (Two factor theory)
4. McClelland’s Needs(Achievement) Theory Of motivation

Hierarchy of Needs Theory

• This theory was put forth by Abraham Maslow.
• He observed human needs in the forms of a hierarchy, ascending from the lowest to the
highest order.
• He concluded that one set of needs is satisfied, this set ceases to be a motivator.
• The lowest level needs are psychological in nature, while those of higher level are the self-
actualising ones.
• The basic human needs placed by Maslow in an ascending order are as follows:-

Administrative World Page 145

 PAPER 01

• Physiological Needs:- these are the basic needs for sustaining human life itself, such as food,
water etc. he took the positions that until these needs were satisfied to the degree necessary
to maintain life, other needs would not motivate people.
• Security or safety:- these are the needs to be free of physical danger and of the fear of losing a
job, property, food or shelter.
• Affiliation or acceptance:- since people are social beings, the need to belong, to be accepted
by others, need for friendship, interaction and love arises.
• Esteem:- once people begin to satisfy their need to belong, they tend to want to be held in
esteem- both be self esteem and esteem from others. The fulfilment of such needs produces
satisfaction of possessing power, prestige, status and self-confidence.
• Need for self actualization:- in Maslow’s hierarchy of needs, the need for self actualization has
been given the topmost place. It is desire to become what one is capable of becoming, to
maximise one’s potential and to accomplish something.
Maslow holds the view that the satisfaction of these needs has a very definite order. Lower level needs
have to be satisfied before going to the higher level.
There are two shortcomings in this approach:-
• Five-level need hierarchy as outline by Maslow does not have universal acceptance.
• Limitation to the satisfaction of the higher needs of worker.

Alderfer’s ERG Theory

• A variation of Maslow’s hierarchy of needs theory of motivation has been suggested by C.P.
Alderfer.
• He refers to as the ERG (Existence, Relatedness, Growth) theory of needs.
• He claims that this theory has a realistic application to a work organization.
• He suggests that Maslow's five levels of needs can be reduced into three:- existence,
relatedness and growth.
• Existence needs:- include all forms of physiological and material desires. This consumes
Maslow’s first two levels.
• Relatedness Needs:- include relationship with other people and therefore cover Maslow’s third
level.
• Growth Needs:- concerned with the desire to be creative and to achieve full potential in the
existing environment.
The novelty of Alderfer’s approach, lies not in the above regrouping of needs but tin rejecting Maslow’s
concept of hierarchy of human needs. He accept that different types of needs can operate
simultaneously.

Motivation-Hygiene
• Maslow’s need approach has been considerably motivated by Frederic Herzberg and his
associates.
• Their research centres around two groups of human needs that act as dissatisfies and
motivators for them.
• Dissatisfied:- in this group, needs are such things as company policy and administration,
supervisions, working conditions, interpersonal relations, salary, job security and personal life.
• Herzberg called these to be only dissatisfies and not motivators.
• In other words, if they exist in a work environment in high quantity and quality, they yield no
dissatisfaction. Their existence does not motivate in the sense of yielding satisfaction; their lack
results in dissatisfaction.

Administrative World Page 146

 PAPER 01

• Herzberg called them maintenance hygiene or job context factors.

• Motivators:- this group include achievement, recognition, challenging work, growth in job.
Their existence will yield feelings of satisfaction or no satisfaction.
• The first group must be present in the organization otherwise dissatisfaction will arise.
• According to Herzberg, the second group are real motivators because they have the potential
of yielding a sense of satisfaction.

Needs theory of motivation

• David c. McClelland has contributed to the understanding of motivation by identifying three
types of basis motivating needs.
• He classified them as the
1. Need for power (n/PWR)
2. Need for affiliation (n/AFF)
3. Need for achievement (n/ACH)
• Need for power (n/PWR):- he found that people with a high need for power have a great
concern for exercising influence and control. Such individuals generally are seeking position of
leadership; they are forceful, heard headed and demanding and they enjoy teaching and public
speaking.
• Need for affiliation (n/AFF):- people with a high need for affiliation usually derive pleasure
from being loved and tend to avoid the pain of being rejected by a social group. Individuals are
likely to be concerned with maintaining pleasant social relationships, to enjoy a sense of
intimacy and understanding.
• Need for achievement (n/ACH):- people with high need for achievement has an intense desire
for success and an equally intense fear of failure. They take a realistic approach to rick. They
tend to be restless, like to work long hours, don’t worry about failure and tend to like to run
their own shows.
If the needs of employees can be accurately measured, organizations can improve the selection and
placement process.

Process Theory
• The process theories of motivation are concerned with answering the question as to how
individual behaviour is energised, directed, maintained and stopped.
• Two important process theories are as follows:-
– Vroom’s Expectancy Theory
– Stacy Adam’s Equity Theory
1. Expectancy theory of motivation( Vroom’s):- Vroom hold that people will be motivated to do things
to reach a goal if they believe In the worth of that goal and if they can see that what they do will help
them in achieving it.
• Vroom’s theory is that people’s motivation towards doing anything will be determined by the
value they place on the outcome of their effort, multiplied by the confidence they have that
their effort will materially aid in achieving a goal.
• One of the greatest attractions of the Vroom theory is that it recognises the importance of
various individual needs and motivations.
• It avoids some of the simplistic features of Maslow and Herzberg approaches.
• It does seem more realistic .

Administrative World Page 147

 PAPER 01

2. Equity Theory (Stacy Adam):-

• Another important factor in motivation is whether individuals perceive the rewards structure
as being fair. This issue can be addressed through “equity theory”.
• This theory refers to an individual’s subjective judgements about the fairness of the reward
she/he got it relation to his/her inputs.
• He also compares his rewards with those of others.
• A big problem with this theory s that people may overestimate their own contributions as well
as the rewards others receive.

Reinforcement Theories
• Psychologist B.F. Skinner developed an interesting but controversial technique for motivation.
• The approach called ‘positive reinforcement’ or ‘behaviour modification’ holds:-
i. Individuals can be motivated by proper design of their work environment and praise for
their performance.
ii. The punishment for a poor performance produces negative results.
• Types of reinforcement:- there are basically 4 types of reinforcement that managers use to
modify the behaviour of subordinates:-
i. Positive reinforcement
ii. Avoidance learning
iii. Extinction
iv. Punishment.
• Common positive reinforces are praise, promotion and money. Most individual regards these
as pleasant, and are therefore likely to repeat those behaviours that earn these rewards.
• Avoidance learning or negative reinforcement takes place when individuals learn to behave in
ways that help them avoid or escape from unpleasant consequences. E.g., in order to avoid
criticism, the employees make a special effort to come to work on time.
• Extinction & punishment are designed to reduce undesired behaviour, rather reinforce desired
behaviour.
• Extinction is the withholding of reward for undesired behaviour so that such a behaviour
eventually disappears.
• Punishment only informs the individual what should not be done, rather than what should be
done. Thus, one mistake may be followed by a new one as the individual seeks to find, by trial
and error, the behaviour that will not be punished.

Morale
• The morale of public officials is universally recognised to be one of the important factors
conductive to efficiency in administration.
• It is management's responsibility to discover ways of fostering right morale.
• Morale an intangible concept in as much as it is an “inward grace”.
• It reside in the minds, attitude and emotions of individuals and groups.
• It has been defined as the “capacity of a groups of people to full together and consistently in
punish of a common purpose”.
• Edwin Flippo (1961) defined morale as ‘a mental condition or attitude of individuals and groups
which determines their willingness to cooperate’.
It is symbolised by

Administrative World Page 148

 PAPER 01

• A feeling “Belonging or identification among the employees

• A source of pride in cooperate or group achievement
• A spirit of determination and perseverance in making effort to accomplish and further
the aim and purpose of the organisation.
Morale relate to the totality of motives and attitudes of the employees of momentary, while morale
denotes a more content state of mind.
Enthusiasm may however be an index of good morale.
Important factors affecting morale of employees in any organisation are:-
• Administrative leadership – it promotes a feeling of particular and proper human relations
among the employees and provides guidance and encouragement to them.
• Personnel policies and practice which concern the physical mental and emotional aspect of a
employees life
• Internal relationship and communication within the organisation
• The attitude of political executives, legislature and the people towards the civil service.

Measure to improve morale

• Methods of handling grievances
• Collective bargaining
• Joint consolation
• Suggestion schemes
• Rewarding achievement
• Sharing information with employees
• Employee counselling
• Proper working conditions
• Fair treatment
• Good leadership
• Code of ethics
• Attitudes surveys
• Feedback system

Difference between morale and motivation

• Morale has to do with feelings.
• In workplaces where morale is high, employees approach their work and energy, enthusiasm,
and willingness
• They want to come to work –or at least are enthusiastic about work once they get there
• Motivation, on the other hand, refer to employees’ drive to get the job done.
• Highly motivated employees tend to be high producers, but that doesn’t necessarily mean their
morale is high.

Administrative World Page 149

 PAPER 01

Administrative World Page 150

 PAPER 01

Administrative World Page 151

 PAPER 01

1. Organisation

Organization
• It is the framework or system through which administration’s objective and guidelines are
implemented and executed to achievement by the management.
• It facilitates the proper utilization of men, material and money for the achievement of goals.
• It is a set of system of interacting elements each having a special function, act, office or relation
to the organization independently but work together in coordination and as a whole to achieve
their as well as the organization's goals and objectives.
• In government organizations, all departments and ministries and offices and employees work
together as per the rules and regulations of the organization in tandem to achieve the
organizational goals and objectives and in the proves their goals and objectives as well.

Organization theories (System & Contingency Theory)

System Theory of Organization
• This approach/theory of an organization was first developed for physics.
• It then later was found suitable to and extended to political science, public administration,
management etc. as a modern approach to understanding administration and similar
organizations.
• Main proponents:- David Easton & Chester Barnard.
• A system is a set f interconnected elements that function together in tandem to make up the
whole being.
• So, a system approach administration is described as a system comprising subsystem,
structure, people, actions and interaction that enable it to perform certain functions.
• Every system influences its subsystems and is also influenced by its subsystems,
• This system rejects the closed system approach of an organization or classical theory of an
organization.
• This approach/theory takes a holistic approach that is it takes into account and studies all
elements of an organization.
• This approach might not lead to a solution of all administrative problems but it surely lends
help to generate awareness of the limitation and weaknesses of formal administration in
tackling programmes of social and behavioural change.
• This approach becomes all the modern in today’s times where organizations are growing and
transcending national boundaries with product diversification.
• It is used as a criticism towards the closed system model of Max Weber’s Ideal Bureaucracy
Theory.

Administrative World Page 152

 PAPER 01

• David Easton says policy making and decision ,acing are closely related & adopted the systems
approach to analyse public policy making and implementation process in a dynamic political
system and the cycle that is involved in it.

Contingency theory of organization

Contingency theory is a class of behavioural theory that claims that there is no best way to organise a
corporation, to lead a company, or to make decision.
Instead, the optimal course of action is contingent (dependent) upon the internal & external situation.
Some important contingencies for companies that need to be strengthened are listed below:-
• Technology
• Suppliers and distributors
• Consumer interest groups
• Customers ad competitors
• Government
• Unions.
The main ideas underlying contingency theory in a nutshell:-
1. Organizations are open systems that need careful management to satisfy and balance internal
needs and to adopt to environmental circumstances.
2. There is no one best way of organizing. The appropriate form depends on the kind of task or
environment and situation one is dealing with,.
3. Management must be concerned, above all else, with achieving alignments and good fits.
4. Different types or species of organizations are needed in different types of environments.
William Richards Scott describes contingency theory in the following manner:- “the best way to
organize depends on the nature of the environment to which the organization must relate and adjust
to”.

Types of Organization
Formal organizations:-
• An organization that is established as a means for achieving defined objective has been
referred to as a formal organization.
• Formal organization is expected to behave impersonally in regards to relationships with clients
or with its members.
• According to Weber’s definition, entry and subsequent advancement is by merit or seniority.
• Each employee receive salary and enjoys a degree of tenure that safeguards him form the
arbitrary influence of superiors or of powerful clients.
• The higher his position in the hierarchy, the greater his presumed expertise in adjudicating
problems that may arise in the course of the work carried out at lower levels of the
organization.
• It is this bureaucratic structure that forms the basis for the appointment of heads or chiefs of
administrative subdivisions in the organization and endows them with the authority attached
to their position.

Informal organization
• The informal organization is the interlocking social structure that governs how people work
together in practice.
• It consists of a dynamic set of personal relationships, social networks, communities of common
interest and emotional sources of motivation.

Administrative World Page 153

 PAPER 01

• Informal organizations are always found in formal organizations and they are interdependent.
• Formal organization is concerned with work only and does not give place to personal
connections, so on employee will always want to let out and so it comes out in the form of
personal connections between employees through sharing the same goals and motivations in
life,
• So they are interrelated and if one is shut out, the other will necessarily disintegrate.

Organization structure
Pre-Bureaucratic Structures
• Pre-Bureaucratic structures lack standardization of tasks
• This structure is most common in smaller organizations and is best used to solve simple task.
• The structure is totally centralized.
• The strategic leader makes all key decisions and most communication is done by one on one
conversations.
• It is particularly useful for new business as it enables the founder to control growth and
development.
• They are usually based on traditional domination or charismatic domination in the sense of
Max Weber’s classification of authority.

Bureaucratic Structure
• Weber gives the analogy that “the fully developed bureaucratic mechanism compares with
other organizations exactly as does the machine compare with the non-mechanical modes of
production. Precision, speed, strict subordination, reduction of friction and of material and
personal costs- these are raised to the optimum point in the strictly bureaucratic
administration.”
• Bureaucratic structures have a certain degree of standardization.
• They are better suited for more complex or larger scale organizations, usually adopting a tall
structure.
• The tension between bureaucratic structures and non-bureaucratic is echoed in Burns and
Stalker’s distinction between mechanistic and organic structures.
• The Weberian characteristics of bureaucracy are:-
– Clear defined roles and responsibilities.
– A hierarchical structures
– Respect

Post-bureaucratic
• The term of post bureaucratic is used in two sense in the organizational literature:- one generic
& one much more specific.
• In the generic sense the term post bureaucratic is often used to describe a range of ideas
developed since the 1980s that specifically contrast themselves with Weber’s ideal type
bureaucracy.
• This may include total quality management, culture management and matrix management
amongst others.
• None of these however has left behind the core tenets of Bureaucracy.

Administrative World Page 154

 PAPER 01

• Hierarchy still exist, authority is still Weber’s rational, legal type, and the organization is still
rule bound.
• Heckscher, arguing along these lines, describe them a cleaned up bureaucracies, rather than a
fundamental shift away from bureaucracy.
• Another smaller group of theorists have developed the theory of the Post-Bureaucratic
Organization, provide a detailed discussion which attempts to describe an organization that is
fundamentally not bureaucratic.
• Charles heckscher has developed an ideal type, the post-bureaucratic organization, in which
decisions are based on dialogue and consensus rather than authority and command, the
organization is a network rather than a hierarchy, open at the boundaries; there is an emphasis
on meta-decision making rules rather than decision making rules.
• This sort of horizontal decision making y consensus model is often used in housing
cooperatives, other cooperatives and when running a non-profit or community organization.
• It is used in order to encourage participation and help to empower people who normally
experience oppression in groups.
• Still other theorist are developing a resurgence of interest in complexity theory and
organizations and have focused on how simple structure can be used to engender
organizational adaptations.
• For instance, Miner studied how simple structure could be used to generate improvisational
outcomes in product development. Their study makes links to simple structure and improviser
learning.
• Other scholars revive an older interest in how structure and strategy relate in dynamic
environments.

Functional structure
• Employees within the functional divisions of an organization tend to perform a specialised set
of tasks, for instance the engineering department would be staffed only with software
engineers.
• This leads to operational efficiencies within an organization, making the organization slow and
inflexible.
• As a whole, a functional organization is best suited as a producers of standardised goods and
service at large volume and low cost.
• Coordination and specialization of task are centralized in a functional structure, which makes
producing a limited amount of products or services efficient and predictable.
• Moreover, efficiencies can further be realised as functional organization integrate their
activities vertically so that products are sold and distributed quickly and at low cost.
• For instance, a small business could make components used in production of its products
instead of buying them. This benefits the organization and employees faiths.

Divisional structure
• Also called a “product structure”, the divisional structure groups each organizational function
into a division.
• Each division within a divisional structure contains all the necessary resources and functions
within it.
• Divisions can be categorised from different point of view.
• One might make distinctions on a geographical basis or on product/service basis.

Administrative World Page 155

 PAPER 01

• In another example, an automobile company wit a divisional structure might have one divisor
for SUVs, another divisions for subcompact cars and another division for sedans.
• Each division may have its own sales, engineering and marketing departments.

Matrix Structure
• The matrix structure groups employees by both function and products.
• This structure can combine the best of both separate structures.
• A matrix organization frequently uses teas of employees to accomplish, work, in order to take
advantage of the strengths, as well as make up for the weaknesses, of functional and
decentralised forms.
• Matrix structure is amongst the purest of organizational structures, a simple lattice emulating
order and regularity demonstrated in nature:-
1. Weak/Functional Matrix:_ a project manager with only limited authority is assigned to oversee
the cross-functional aspects of the project. The functional managers maintain control over their
resources and project areas.
2. Balanced/Functional Matrix:- a project manager is assigned to oversee the project. Power is
shared equally between the project manager and the functional manager. It brings the best
aspects of functional and projectized organizations.
3. Strong/project Matrix:- a project manager is primarily responsible for the project. Functional
managers provide technical expertise and assign resources as needed.

Organizational Circle: moving back to flat

• The felt structure is common in small companies. As the company grows it becomes more
complex and hierarchical, which leads to an expanded structure, with more levels and
departments.
• Often, it would result in bureaucracy, the most prevalent structure in the past.
• Its design combines functional and product based divisions, with employees reporting to two
heads.
• Creating a team spirit, the company empowers employees to make their own decisions and
train them to develop both hard and soft skills.
• This structure can be seen as a complex form of the matrix, as it maintains coordination among
products, functions and geographic areas.
• In general, over that last decade, it has become increasingly clear that through the forces of
globalization, competition and more demanding customers, the customers, the structure of
many companies has become flatter, less hierarchical, more fluid and even virtual.

Administrative World Page 156

 PAPER 01

2. Forms of Organisation

Organization Forms (Ministry, Department, Corporations, Company, Boards

& Commission)
Ministry/Ministries
Different types of organizations are seen in the government set up discharging functions of a varied
nature and varied discretion so that all are done smoothly.
• Ministry is a term use to refer to the office of the minister/political executive designated with a
portfolio to direct, supervise, monitor, control and function in a specific area.
• It is highly significant and ensures democratic implementation of public policy.
• It is headed by a political executive and day to day activities and operations are taken care of
by the administrators who are the permanent executive.
• So it is headed by a politician so that he handles it democratically.
• Ministry is the way of organization business related to a specific are under the direction of
meta-policy.

Department
• A department is a part of a larger organization with a specific responsibility. It is that
fundamental or basic arrangement through which the policy process could be organised in
regards to formulation as well as implementation of policies.
• It functions under a ministry or can be independent e.g. dept. of Atomic energy (under PM)
• When a department comes under a ministry then it is headed by the minister in charge of that
portfolio but commissioned and day to day activities are headed by a senior bureaucrat having
sufficient experience.
• It helps necessary communication and connectivity between the executive agency and the
ministry.

Corporation
• It is an organizational arrangement that owes its existence to some legislative instrument
under which it has been created.
• It is a business entity and this arrangement is mostly found in areas where economic
development is seen as a challenge or technological level has been a need.
• These corporations are granted the necessary discretion and autonomy in taking decisions and
implementation and it helps the five year plans in being a success.
• It is controlled by the state and helps manage country’s resource as well as allocate them
correctly to the relevant plans and departments for utilization for the welfare of the people.
• A good example can be Municipal corporation.

Administrative World Page 157

 PAPER 01

Company
• It is an organizational arrangement created for managing functions related to some
“commercial” area or job.
• It is also a legal entity competent to enter into contract and can be sued as well as sue and
acquire assets in its name.
• It is a government business company and performs commercial functions and operates
according to market factors.
• It is started off with a corpus or principal business capital to star toff with and then it is
supposed carry out its business and earn profits for the government which will then be used for
the benefit of the people.
• Company is more market-oriented as compared to corporations.
• A company is formed for profit earning and economic self-sufficiency in areas where private
sector would not like to enter due to heavy investment or high risk.
• A corporation is basically created for developmental activities and it not concerned about profit
or loss but collects its earnings as taxes in return for the services provided.

Boards & Commissions

• Boards & commissions refer to such organizational units which are created by the executive for
having deliberations by specialist in that field.
• Politically impartial decisions and recommendations are achieved here as these organizations
allow only the services of specialists and people having high standards of integrity.
• The decision taken here are mostly rational.
• These are appointed by the government on ad-hoc basis as well as standing basis.
– Ad-hoc:- for a particular purpose
– Standing basis:- permanent.
• Examples:- ARC & Law commission, Election Commission, UPSC.

Ad-hoc & Advisory Bodies, Regulatory bodies, Headquarter and Field

Relationship, Public Private Partnership
Ad-Hoc & Advisory Bodies
• The political executive as and when required to aid them in discharging their functions with all
detail and correctly need to appoint various bodies on ad-hoc or advisory capacity.
• Ad-hoc departments are created when there is an urgent need for focus and resolution of a
certain function where specialists are appointed to comprise a unit and work only on that and
provide a fast and correct solution.
• Once that function is over these ad-hoc bodies cease to exist and the members are wither
employed in some other department or sent back to the departments they came from.
• Advisory bodies are created in regard to various functional areas as and when executive is of
the opinion that a deliberation and thorough analysis by specialists shall be useful before
pursuing implementation of policy in a given issue/area. This advisory bodies may be created
by the cabinet or any other appropriate levels as seemed fir by the executive.

Headquarter & Field Relationship

• Headquarter(HQ) refers to an establishment that is meant to direct, supervise and monitor the
execution of public policy which is done through the field (Area of physical activity)

Administrative World Page 158

 PAPER 01

establishments should always have a clear communication as that is the basic needed for
smooth implementation of policies.
• HQ and field establishments should always have a clear communication as that is the basic
needed for smooth implementation of policies.
• HQ acts as the head whereas the field establishments act as the hands.
• HQ receive instructions regarding policy directly from the higher authorities and it is passed on
to the Field establishments in communication understandable to them for implementing the
same.
• The following measures have been suggested to ensure the smooth functioning of these
organizations and the proper implementation of public policy through them:-
1) Effective and fast communication channels should be established between field establishment
and HQ
2) HQ officials while giving instruction/directions to Field establishments should provide sufficient
detail so that Field establishment can easily understand and comprehend the same.
3) HQ officials should take into consideration the inputs provided by the field establishment
before reaching conclusion in regards to programme schedules required to be implemented at
the field levels as the field establishment have the ground knowledge of the situation
4) Training programmes shall be organised so as to improve the competence of officials at field
level so that orders could be effectively implemented by them.
5) HQ officials shall carry out physical inspections in the field establishment from time to time to
gather first hand information on the discrepancies and ground realties existing there and
suitable actions required.
6) Field establishment shall be provided with opportunities like seminars/conference etc. at the
HQ level in order to be aware of the core components of the policy programme and also get
the necessary direction through which implementation could be improved.

Regulatory Authorities
• There are establishment which are created by government with the objective of regulating
the functioning of organizations taking care of a special are/job.
• It provides the basic framework and facilities for the functioning of all those
institutions/organisations which are carrying out enterprise/business in that particular field.
• It provides transparency.
• These bodies are highly significant in the time of Liberalization, privatization and globalisation
since private players are also entering the country and setting up business.
• These bodies carry out detailed research in regards to those areas/business areas that they
have been set up for and help the government
• It helps stabilise the technology as well as pricing for the goods and services provided that is
reasonable to the people.
• It is through these regulatory bodies that a proper check is kept on government as well as
private enterprises in the market and thus leading to successful policy and planning
implementation.
• Example:- Securities and Exchange Board of India (SEBI), Telecom regulatory authority of
India (TRAI).

Public-Private Partnership
• It is a model of enterprise where both public and private entities are seen coming into an
association to provide facilities for the production of goods and service.

Administrative World Page 159

 PAPER 01

• PPP( Public-private partnership) is seen as a model under which the government invests wit
capitals/service and infrastructure and the private player provides the goods and service
through its efficient and economic mechanisms of productions and deliver in a competitive
ad timely manner under the guidelines established in their contract.
• This partnership helps in achieving the planned process of development.
• Thus, it helps in bringing together the private companies in working towards the goals of
democracy and not just profit.
• So, this mechanisms brings together the mechanisms of transparency from the government
side as well as efficiency and economy through the private organizations side.

Administrative World Page 160

 PAPER 01

Administrative World Page 161

 PAPER 01

Administrative World Page 162

 PAPER 01

Concept of Accountability and

1.
Control

Accountability & Control

Concept of Accountability & Control
• There is an increasing concern about how bureaucracies are using power. At the heart of these
concern is accountability; for what and to whom are bureaucracies answerable? How are the
bureaucracies held accountable.
• The substance of accountability places at least 4 requirements on the public administrators:-
– Make laws work as intended with a minimum of waste and delay;
– Exercise lawful and sensible administrative discretion;
– Recommend new policies and propose changes in existing policies and programs as
needed;
– Enhance citizen confidence in the administrative institutions of government.

Accountability
• Accountability is to take complete responsibility by a person or an organization for what he/she
or the organization did or failed to do and must be able to give a satisfactory reason for it and
the use of authority entrusted in them to carry out that responsibility.
• It is to check whether a work was done or not and accountability as a process is performed
after the work is completed or is supposed to have been completed.
• Civil servants though not directly accountable to the people or their representative but there
are Vigilance authorities and Ombudsman in all organizations to keep a tab on them and also
they are indirectly accountable for their action/exercise of authority to the people through the
political executive and courts of law.
• It there is no accountability then the civil servants would turn in to despots
(unfair/cruel/rulers), arbitrary and corrupt.
• Responsibility:- A job or duty that a person is entrusted with an order to perform and complete
them.
• Authority:- the legal right to control.
• Control:- the contemporaneous mechanisms to check whether work is being done and done in
the proper manner as specified on time is control. It is carried on simultaneously while work is
being done through its various forms which will be discussed below.
• Difference between accountability & Control:- Accountability happens after the job is
complete or when some work has been done
Control is performed simultaneously as the work is being done, side by side.

Types of Accountability and Control

Internal control & Accountability:-

Administrative World Page 163

 PAPER 01

it is a part of the administrative machinery and work automatically and spontaneously with the
movement of the machinery as self regulating devices and act as brakes in an automobile.
It comprises of:-
• Budgetary Control:- every department and official is given information about the amount of
funds they have and they have to perform within it, if it goes overboard then they are
accountable. These funds are passed by the parliament/legislature through voting and is not
easy to get and once they are used they are audited by the CAG and the Finance Ministry
sanctions funds to the departments and Ministries once parliament passes it.
• Personnel management control:- Every official is made aware of his rank, grade and salary and
there are rules and regulations that govern the work conditions and conduct of the personnel
and if that is not followed and then a pre-described punishments is meted out.
• Organizational and Method/management control:- Regular inspections are done and requisite
training is provided to officials for efficient execution of their responsibilities.
• Administrative ethics and professional standard:- Moral and accepted beliefs of behaviour are
promoted amongst officials.
• Leadership:- Leadership acceptance increases with an increase in hierarchy and position and
that is encouraged to keep the motivation and morale of officials going. It should not be seen
only in the negative light of a control mechanism for irrational patterns of individual
employees’ activities but as a positive mechanism of harmonising individual’s activities into
rational patterns.
External control & Accountability
• The control within the constitutional machinery e.g. legislative control, executive control,
judicial control.
• Public control through media, interest groups, voluntary organizations, civil society, citizen’s
charters, Right to Information, social audit are also a form of external control.
• A thing to note is that external and internal controls are not exclusive categories but are
interdependent and complement and supplement each other.

Administrative World Page 164

 PAPER 01

Legislative Control over

2.
Administration

Legislative Control over Administration

• The Legislature reflects the will of the people and acts as a custodian of the interests of the
people.
• It exercises control over administration to hold it accountable and responsible.
• However, the system of legislative control over administration in a parliamentary form of
government is differs from such a control in a presidential form of governmental.

General Control
Control on delegated legislation:-
• Normally the Legislature is entrusted with the job of making laws but in complex and stressful
conditions of the modern society, the state is caught up with many things at one time and is
not able to concentrate and stud a particular issue properly leads to a situations of delegate
legislation.
• Delegated Legislation:- the parliament makes the laws in a skeleton form and authorises the
executive to make detailed rules and regulations within the framework of the parent laws.
• Legislature should clearly spell out the limit of the power delegated so that there is control
maintained.
• The delegation should function under the rules and regulations of the agreement made
between the legislature and them.
• It should be transparent and public should be allowed to participate.
• Judicial review is a must for the smooth and legal functioning of the delegated legislation.
Question Hour:-
• The first hour of every parliamentary sitting is slotted for this.
• During this time, the MPs ask questions and the ministers usually give answers.
• The question are of three types:- starred (oral answer), unstarred (written answer), short
notice(10 days notice, oral answer)
• Questions are effective tools of legislative control over administration and keeps the
administration alert and on its toes.
Zero Hour:-
• It is not mentioned in the rules of procedure.
• It is an Indian innovation. It start after question hour and lasts until the agenda for the day is
taken up.
• MPs can raise matters without any prior notice.
Short Duration Discussion:-
• It is also known as two-hour discussion as the time allotted for such discussion should not
exceeds two hours.
• MPs can raise such discussions on a matter of urgent public importance.
Half-an-Hour Discussion:-

Administrative World Page 165

 PAPER 01

• It is meant for raising a discussion on a matter of sufficient public importance which has been
subjected to a lot of debate and the answer to which needs elucidation on a matter of fact.
Other Discussion:-
• Inaugural speech by President.
• Introduction of several bills for enactment of laws
• Introduction and passing of resolutions on matters of general public interest.
Calling Attention:-
• It is a notice introduced in the Parliament by a member to call the attention of a minister to a
matter of urgent public importance, and to seek an authoritative statement from him on that
matter.
• It is an Indian innovation, mentioned in rules of procedure.
Adjournment Motion:-
• It is introduced in the Parliament to draw attention of the house to a matter of urgent public
importance.
• This motion needs the support of 50 members to be admitted.
• It involves an element of censure against the government and hence Rajya Sabha is not
permitted to make use of this device.
No-confidence Motion:-
• It is against the government.
• If it is passed then, government has to resign.
• The motion needs the support of 50 members to be admitted.

Financial Control
Budgetary System:-
• This is the most important technique of parliamentary control over administration.
• The Parliament controls the revenues and expenditures of the government through enactment
of the budget.
• It is the ultimate authority to sanction the raising and spending of government funds.
• It can criticise the policies and actions of the government and point out the lapses and failures
of administration during the process of enactment of the budget.
• Unless the appropriation Bill & Finance bill are passed, the executive cannot incur expenditure
and collect taxes respectively.

Audit system
• This is an important tool of parliamentary control over administration.
• The Comptroller General of India (CAG), on behalf of parliament, audit the account of
government and submit an annual ‘audit report’ about the financial transaction of the
government.
• The report of CAG highlights the improper, illegal, unwise, uneconomical and irregular
expenditures of the government.
• The CAG is an agent of Parliament and is responsible only to it.
• Thus the financial accountability of the government to the Parliament is secured through the
Audit Report of the CAG.

Parliamentary Committees
Committee on Assurance:-

Administrative World Page 166

 PAPER 01

• It undertakes scrutiny of promises, assurance, undertaking, etc. given by the ministers from
time to time on the House Floor and reports on; to the extent that they have been
implemented and whether it has fulfilled the minimum conditions of its purpose.
• Thus making the minister wary of the their promises and efficiently perform their duties
through administration.
• Committee on Subordinate legislation:-
• It controls and scrutinises the government activities regarding administrative delegation of
legislative powers.

Reports of the Estimates Committee and Public Accounts Committee of Parliament:-

• The Parliament appoints these committees from amongst themselves through voting and
consensus.
• The PAC scrutinises the CAG’s report and also reviews the financial transaction of
governmental departments.
• Then there is an audit report compiled by the PAC that is presented for discussion and
questioning before the house.
• The Estimates committee makes recommendations for improving guidance and alternative
policies and examine whether the money is well laid out within the limits of the policy implied
in the estimates in the presentation of their estimates.

Limitation and Ineffectiveness

The legislative control over administration in Parliamentary countries is more theoretical than practical.
In reality the control is not as effective as it ought to be. The following factors are responsible for the
ineffectiveness of parliamentary control in India:-
• The parliament has neither time nor expertise to control the administration which has grown in
volume as well as complexity.
• Parliament’s financial control is hindered by the technical nature of the demand for grants. The
parliamentarian being laymen cannot understand them properly and fully.
• The legislative leadership lies with the executive and it plays a significant role in formulating
policies.
• The very size of the Parliament is too large and unmanageable to be effective.
• The majority support enjoys by the executive in the Parliament reduces the possibility of
effective criticism.
• The financial committees like Public account committee examines the public expenditure after
it has been incurred by the executive. Thus they do post mortem work.
• The increased recourse of ‘guillotine’ reduced the scope of financial control.
• The growth of ‘delegated legislation’ reduced the role of Parliament in making detailed laws
and increased the powers of bureaucracy.
• The frequent promulgation of ‘ordinances’ by the President dilutes the Parliament’s power of
legislation.
• The parliament's control is sporadic, general and mostly political in nature.
• Lack of strong and steady opposition in the Parliament, and a setback in the Parliamentary
behaviour and ethics, have also contributed to the ineffectiveness of legislative control over
administration in India.

Administrative World Page 167

 PAPER 01

Executive & Judicial Control over

3.
Administration

Executive & Judicial Control Over Administration

Executive Control
• Executive control over administration means the control exercised by the chief executive
(Political Executive).
• Such control in India & Britain is exercised by the cabinet & ministers (Individually) and in USA
by President & Secretaries.
• Ministerial responsibility is the basic feature of the parliamentary government. For this reason
the political executive exercise control over administration.
• Unlike the legislative control which is general, periodical, informational and reportive, the
executive control is fuller in content, constant, continuous, stimulate, corrective and directive.

The executive exercises control over administration through following means or techniques:-
Policy Direction(Policy-Making):-
• In India, the Cabinet formulates administrative policies and enjoy the power of direction,
supervision and coordination with regard to its implementation.
• The minister, who is incharge of one or more departments, lays down the departmental policy
and directs, supervises and coordinates its implementation by the administrators.
• Thus through political direction, the minister control the operations of administrative agencies
working under his ministry/departments.
• The departmental officials are directly and totally responsible to the minister.
Budgetary system:-
• Executive formulates the budget, gets it enacted by the Parliament, and allocates the necessary
funds to the administrative agencies. Through this, executive exercise financial control over
administration.
Appointment & Removal:-
• This is the most effective means of executive control over administration.
• The executive plays an important role in personnel management and control and enjoys the
power of appointment and removal of top administrators.
• In this function, the executive is assisted by Department of Personnel & Training.
• At the highest level, the ministers play an important role in the selection and appointment of
secretaries and heads of departments.
• Thus they exercise full control over the administration of departments under their charge
through such appointees.
Delegated Legislation:-
• The parliament make laws in the form of skeleton forms and authorises the executive to fill the
minor detail.

Administrative World Page 168

 PAPER 01

• Therefore, the executive makes rules & regulations which have to be observed by the
administrators in execution of the law concerned.
Civil Service Code:-
• The executive has prescribed a civil service code to be observed and followed by the
administrators in the exercise of their official powers.
• It consists of a set of conduct rules which prevents the administrators from mis-utilising their
powers for their personal ends.
Staff Agencies:-
• The executive also exercises control over administration through staff agencies.
• Important staff agencies in India :- Department of Administrative reforms, NITI Aayog, PM
Office.
• Mooney Said that a staff agency is “an expansion of the personality of the executive. It means
more eyes, more ears and more hands to aids him in forming and carrying out his plans.
• Thus, the staff agencies exercise influence and indirect control over the administration
agencies and play an important role in coordinating their policies and programmes.
Appeal to Public Opinion:-
• The administrative system (Bureaucracy) is status quo oriented and hence resists change.
• It does not receive new policies, plans, programmes and projects formulated by the executive
with positive mindedness,
• Various organs of administrative machinery develop vested interest not only in programme
areas but equally in established ways of doing things, which enhance self-consciousness and
strategic position of the bureaucracy.
• Due to this, the bureaucracy resist new programmes and method as they threaten its strong
position.
• Under such circumstances, the executive appeals to the public opinion.

Judicial Control
• The control exercised by the courts over the administrative acts is called judicial Control.
• The primary objective of judicial control over administration is the protection of the rights and
liberties of citizens by ensuring the legality of administrative acts.
• As observed by M.P. Sharma (1st Professor of Pub Ad in India):- “looked at from the point of
view of the citizens whose liberties and rights courts are intended to protect, the controls
exercised by the courts are called Judicial Remedies. As a matter of fact, official liability before
the courts and judicial remedies for the citizens against excesses or abuse of power are the two
faces of the same coin”.
Basis & Scope:-
• The judicial control over administration emanates from the concept of “Rule of Law”.
• The judiciary can intervene in the administrative acts under the following circumstances:-
1. Lack of jurisdiction i.e. when the administrator acts without authority or beyond the scope of
his authority or outside the geographical limits of his authority.
2. Error of law i.e. when the administrator misinterprets the law and thus imposes upon the
citizen, obligation which are not required by the content of law.
3. Error in fact finding i.e. when the administrator makes a mistake in the discovery of facts and
acts on wrong presumptions.
4. Abuse of authority i.e. when the administrates uses his authority to harm some person.
5. Error of procedure i.e. when the administrator does not follow the laid down procedure.

Administrative World Page 169

 PAPER 01

Methods
Judicial Review:-
• It is the power of the courts to examine the legality and constitutionality of administrative acts.
• On examination, if they are found to be violates of the constitution, they can e declared as
illegal, unconstitutional and invalid by the courts.
Suits against government:-
• In India Article 300 of the constitution governs the suability of the state.
• It states that the union government and state government can be sued, subject to the
provisions of the law made by parliament and this state legislature respectively.
• The state is suable in courts. This means that the contractual liability of the governments is
same as that of an individual under the ordinary law of contract.
Suits against public officials:-
• In India, President & Governors enjoy personal immunity from legal liability for their official
acts.
• The minister do not enjoy such immunities and hence they can be sued in ordinary courts like
common citizens for crimes.
• Under the Judicial Officer’s protection act of 1850, the judicial officers are immune from any
liability in respect of their acts and hence cannot be sued.
• The civil servants are conferred personal immunity from legal liability for official contracts by
the Article 299 of the Constitution of India.
• Civil proceeding  after giving two months notice.
• Criminal proceeding  prior permission from government.

Limitations
• The judiciary cannot intervene in administrative process on its own. They can intervene only
when aggrieved citizen takes the matter before them. Therefore, the judiciary lacks the suo
moto power.
• The control exercised by the courts is in the nature of a post-mortem control, that is, they
intervene after the damage is done to the citizen by the administrative acts.
• All administrative acts are not subject to judicial control as the Parliament may exclude certain
matters from the jurisdiction of the courts.
• Judicial process is very slow and cumbersome.
• The volume, variety and complexity of administration has increased due to welfare orientation
of the state. Hence the courts cannot review each and every administrative act affecting the
citizen.

Administrative World Page 170

 PAPER 01

4. Citizen and Administration

Citizen and administration

• Modern democratic states  welfare orientation.
• Govt play an important role in the socio-economic development.
• Expansion of Bureaucracy & multiplication of administrative process  increased bureaucratic
power and discretion.
• Abuse of power & discretion  corruption, maladministration & harassment.
• The success of democracy and the realisation of socio-economic development depends on
the extent to which citizen grievances are redressed.
• Therefore, the following institutional devices have been created in different parts of the worlds
to deal with redressed of these grievance
– The Ombudsman System
– The administrative courts system
– The procurator system.

Ombudsman System
• Earliest democratic institution for redressal of citizens is Scandinavian institution of
ombudsman.
• 1st created in Sweden in 1809.
• It deals with
1. Abuse of administrative discretion that is misuse of official power and authority.
2. Maladministration that is inefficiency in achieving the targets.
3. Administrative corruption i.e. demanding bribery for doing things.
4. Nepotism i.e. supporting one’s own kith and kin in matters like providing employment and so
on.
5. Discourtesy i.e. misbehaviour of various kinds e.g. use of abusive language.
• Swedish Ombudsman appointed by Parliament for a term of 4 years.
• He submit an annual report to parliament.
• He keeps a watch over all public officials
• He has no power to reverse or quash a decision and has no direct control over
administration or the courts.
• Ombudsman can act either on the basis of a complaint received from the citizen against
unfair administrative action or suo moto (on his own initiative).

The Administrative Courts

• The French system of administrative courts to deal with dispute between the administration
and the individual citizen.
• In France, the administrative courts are separate from the hierarchy of ordinary courts.

Administrative World Page 171

 PAPER 01

• A distinction is made between acts for which a govt servant is personally liable and sueable
in the ordinary court and those which are the result of administrative faults for which service
as an entity is responsible (Administrative courts)
• At the head of the system of administrative courts is the council of state.
• The council is the govt’s advisory body on legislation and also the supreme administrative
court.
• The member of the administrative courts are ordinary civil servants.

The Procurator
• Procurator system in old USSR, Hungary, Poland and Romania used to play an important part
in redressing citizen’s grievances.
• It generally consists of a central apparatus and a number of subordinate office.
• At the apex of the organisation the procurator-general supervised the work of whole
organisation.
• The procurator system of the erstwhile East European Countries should be distinguished
from the ombudsman system.
• Ombudsman is very small-scale and informal organisation based on the personal
investigation of complaints lay the ombudsman himself.
• But procurator  large, hierarchic apparatus , useful device in socialist countries including
china.

Indian Response
• Law commission (14th Report)  drew attention to the wide field of administrative discretion
in India.
• Santhanam Committee  it was necessary to devise adequate methods to control over
exercise of discretion by different categories of govt servants.
• As a result of committee report… Vigilance commission were set up in 1964.
• The administrative Reforms commission set u in 1966 took up priority basis the matter of
redress of citizen’s grievances.
• The ARC recommended two-tier machinery of Lokpal and Lokayukta for redressal of citizen’s
grievances.
• Some of the states in India have set up ombudsman-like agencies but their records do not
inspire confidence in the institution.
• To sum up, the institutional devices available round the world to deal with redress of citizens’
grievance are many and varied.
• So far as India is concerned, several institutional experimentation have been made at different
levels.
• But the problem still remains largely unresolved.
• As the ARC rightly pointed out, “the setting up of these authorities is not the complete answer
to the problem of redress of citizen’s grievances. They only provide the ultimate set-up of such
redress as has not been available through the normal departmental governmental machinery
and do not absolve the department from fulfilling its obligation to the citizen for administering
its affairs without generating as far as possible any legitimate sense of grievance. “
• A democratic system depends for its survival on the honesty and integrity of the politician.
• In a situation of falling standard of political morality, institutional innovation to deal with
citizen’s grievance may be mere cosmetic value and not of real worth.
Citizen charter

Administrative World Page 172

 PAPER 01

• This is the latest device to structure citizen-administration relationship.

• Concept was initiated by ‘common cause’ in 1994.
• It is a charter that seeks to make administration people-friendly.
• In India this mechanism is yet to be developed and matured and the organisation that posses it
either do not display it or people are aware of it and thus are fooled by the employees.
The charter places the citizen at the centre of administration instead of treating him as a passive
recipient of service rendered without regard for quality, cost or timeliness.

Administrative World Page 173

 PAPER 01

5. Role of Media & Civil Society

Role of Media & Civil Society

Role of Media
• Media is a collective/plural word for medium.
• By media we mean the various mediums of mass communications which is news channels,
newspapers, radios, journals, magazine etc.
• It airs public views and a medium of connection between citizens and the state.
• It has a wide reach.
• State policies and public views on it are disseminated through the media and thus helps both
parties effectively leading to development of the country.
• It holds the political and permanent executive accountable to the people through its forums.
• There is the state controlled media i.e. the govt. media which is more than often biased and
then there is the private funded media that does lobbying for its investor and there is the
independent media that is free from govt. or corporate control and are small in reach.

Role of Civil Society

• Traditionally the two terms – state & Civil society were used interchangeably till the 18th
century.
• G.W.F. Hegel was the first political philosopher who separated and differentiated civil society
from state.
• He was followed by Karl Marx and Fredrick Engels in 19th century.
• S.K.Das  “civil society is the organised society over which the state rules”.
• Niraja Gopal Jayal  “Civil society covers all forms of voluntary association and social
interaction not controlled by the state.
Features
1. It refers to non-state institutions
2. It covers a large space in society
3. It refers to the organised society
4. It cover groups which are intermediate between the state and family.
5. It, though autonomous, subject to the authority of the state.
6. It implies the existence of freedom of association, freedom of though and other civil and
economic rights.
7. It is in pursuit of common public good.
8. It opposes authoritarian and totalitarianism
9. It promotes citizenship by educating the individual
10. It facilitates citizen’s participation in the politico-administrative affairs.
11. It formulates public opinion and sets the demands which are general in nature
12. Its important attribute is voluntarism not coercion.
13. It advocates pluralisms to reduce to domination of the state.
14. It serves as a moral referent in to community value system.

Administrative World Page 174

 PAPER 01

Components
• The organisation and groups included under the umbrella concept of Civil Society are:-
 Non-governmental organisations
 Community-based organisations
 Indigenous people’s organisation
 Trade unions
 Farmer’s organisation
 Cooperatives
 Religious associations
 Youth groups
 Women’s groups
 Other similarly organised groups
IN USA, the civil society is highly developed, while in India, it is fast growing since 1970s.

Role:-
The civil society organisation play an important role in the Welfare and development administration :-
• They organise and mobilise the poor for social-economic development.
• They disseminate information and make the people aware of various schemes, programmes
and projects initiated by the govt for their betterment.
• They facilitate people’s participation in the administrative process.
• Thy make the administrative machinery more responsive to the needs and aspiration of the
people.
• They impose a community system of accountability on the functioning of administrative
machinery at lower levels.
• They help the administrative machinery to identify the target groups.
• They facilitate the usage of local resource for local development & thus make community self-
reliant
• They create political consciousness among the people by discussing various political issues.
• They act as the watch-dogs of the public interest.
• They strengthen the principle of self-help.
The role of civil society lies in supplementing the efforts of govt. and not competing with it.
Milton Esman identified 4 agencies of development:-
– Political system
– Administrative system
– Mass media
– Voluntary organisation

Administrative World Page 175

 PAPER 01

Interest Groups & Voluntary

6.
Organisation and Social Audit

Interest Groups, Voluntary Organisation & Social Audit

Interest Groups
• Interest groups refers to virtually any voluntary association that seeks to publicly promote
and create advantage for its cause.
• It applies to a vast array of diverse organisations.
• This include corporations, charitable organisations, civil rights groups, neighbourhood
associations, professional and trade associations.
• They often resort to legal and illegal means, violent or peaceful and make a certain policy or
amend certain policies by putting pressure on the govt. and administration via their sheer
number and financial as well as political strength.
• There are two types of interest groups.
1. Sectional interest groups:- work for interests of a particular section like for example writers
association or teacher’s association, etc.
2. Promotional interest group:- work for public good and not any particular section. Example
group against child labour etc.
They help in holding the govt. and administration accountable because people have confidence in
them.

Voluntary Organisation
• Voluntary association or union is a group of individual who enter into an agreement as
volunteers to form a body to accomplish a purpose.
• They are to confirm to a certain requirement.
• There should be a formal structure and the members should be free of any vested or personal
interests and work for the public goods.
• Three types of Voluntary organisations –
• Service oriented voluntary organisations – like care of old age people, orphans.
• Mutual aid voluntary organisations – collectively help each other like for example self help
groups.
• Resource and coordination providing voluntary organisations:- specifically provide expertise
and information relating to something for public purpose for example micro finance
institutions etc.
Good governance has brought these organisations into the limelight and they are of great importance
to the govt. while formulating as well as implementing policies as they are close to the people and have
their trust and have grass root level expertise and knowledge of issues and help in people
participation.
Thus they hold the govt. and administration accountable in various times by ensuring public
participation and making administration transparent.

Administrative World Page 176

 PAPER 01

Social Audit
• Audit is a mechanism to appraise loyalty of expenditure and revenue to check whether the
mandate has been followed as specified and the purpose is achieved.
• Different types of audit:-
1. Regulatory audit :- to check whether there is fraudulent activities going on.
2. Proprietary audit:- money may not have been spent economically and is wasted. This audit
helps check that.
3. Performance audit:- nature of spending or earning may not come out with the required
result/objective. This type of audit helps check the functional (job related) and structural level
(organisation) in performance and increases efficiency.
• Social audit is contemporary version of Audit and not only takes into consideration
economical activities but also social and cultural aspects by taking a holistic view of policy
impact.
• It does a detailed study of socio-politico-economic-psychological dimension of the society and
also the environmental dimension in order to bring about true development of the country and
its people.
• To conduct a social audit proper and measurable indicators as well as unbiasedness are
required and are employed by bringing in civil society too along with the government.
• Panchayat are a big help in this.
• Once problems are identifies then actions and steps are taken that are relevant to cure and
prevent the issue from cropping up in the future.

Administrative World Page 177

 PAPER 01

7. Right to Information

Right to Information
• Right To Information (RTI) means the freedom of people to have access to govt. information.
• It means openness and transparency in the functioning of govt.
• Currently, international pressure, particularly from the UN and donor agencies, has been
mounting on country govts. for making governance more open, transparent and accountable.
• UN General assembly’s resolution adopted at the 65th Plenary meeting on Dec 14, 1946 –
“freedom of Information is a fundamental human right and the touchstone for all freedoms to which
the UN is consecrated.”

Need for the RTI

1. Availability of RTI makes for the empowerment of the people
2. Create condition for “open governance”.
3. RTI is an investment in people’s trust in govt. which is the real basis of democratic governance.
4. RTI, by removing unnecessary secrecy make the citizen “co-sharer” in public policy making &
administration.
5. Grassroots democracy becomes much more authentic & people centric. Participative
governance is a sure safeguards against ‘secret’ govt.
6. People’s RTI brings about a major change in the quality of govt. by making it really public.
7. It ensures accountability and responsiveness to people’s needs and demands.
• Woodrow Wilson :-
“I for one have the conviction that government ought to be all outside and not inside. I, for my part,
believe that there ought to be no place where everything can be done that everyone does not know
about. Everyone knows corruption thrives in secret places and avoids public places”.
• Max Weber:-
“bureaucracy, out of a sure power instinct, fights every attempt of Parliament to gain knowledge by
means of its experts”.
• He also stated:- “bureaucracy naturally welcomes a poorly informed and hence a powerless
parliament at least in so far as ignorance somehow agrees with the bureaucracy's interests.

Role of NGOs
• In creating public awareness and holding the govt. socially accountable, the NGOs have major
role to play.
• Most important approaches to ensure people’s access to information have come from the
NGOs in developing countries.
• Example Mazdoor Kisan Shakti Sangthan – local NGO – RTI grew into a local movement –
Rajasthan
• Open Democracy Forum in Africa.

Implementation Process
• One of the biggest hurdle is difficulty in enacting such law.

Administrative World Page 178

 PAPER 01

• Many more impediment to the law’s actual implementation

• The language of the law may be a barrier
• Process, rules/regulations may be too lengthy and cumbersome.
• To have a RTI is one things; and to have access to it is another thing.
• Access means gate-keepers who may be set in such a way that the enjoyment of the ‘right’
would be extremely problematic in reality.
UNDP Guidelines:-
• Institutional reform to facilitate access to information
• Proper regulation – fees, simple application & Appeal procedures.
• Regular budgetary provision
• Agency needs to be designated.
• An independent office has to be created.
• System of Monitoring of implementation
• Awareness of problems of implementation.

Around the World

• Sweden was first to enact a law – freedom of the Press act in 1766.
• The act now forms a part of Swedish constitution under which every citizen has full access to
official documents held by public authorities.
• In UK – Freedom of Information Act, 2000
• US there is a federal law – the Freedom of Information Act, 1966 (Amended several times)
• After 9/11 incident, many western nation including USA have tightened a bit on the question of
openness of government under the threat of international terrorism.
• In France – freedom of information and accountability of public servants are an integral part of
constitutional rights.
• The freedom of Information law in Japan came into effect in 2001, allowing access to
administrative documents held by administrative agencies in electronic or printed form.
• In Canada – The Access to Information Act, 1982.
• Germany – freedom of information law in 2005.
• Certain common features of the FOIs in different countries are:-
• Defining the scope of access to governmental information.
• Putting limits to access on such grounds as national security, external relations,
personal privacy and other sensitive documents related to law and order
• Setting up administrative machineries and procedures for receipts of applications from
the members of the public, timely disposal of such applications, and appellate forum
for hearing appeals from lower level decisions.

RTI in India
• Many civil society groups & SC in India have been arguing in favour of people’s RTI with a view
to empowering people and enriching Indian democracy.
• SC in landmark case State of U.P. vs. Raj Narain (1975) observed that the RTI is implied in the
right to freedom of speech and expression under Article 19(1) and right to life guaranteed
under Article 21 of the constitution.
• 5th pay commission (1994-96) dwelt at length on the need for ‘openness’ in government
defined as ‘easy and speedy access to right information’.
• In 1997, GOI had set up a working group on right to information and promotion of open and
transparent govt.

Administrative World Page 179

 PAPER 01

• Transparency in govt. operation was very much agenda in Conference of Chief ministers held
on 24 may, 1997.
• CMs recognised that secrecy and lack of openness in govt. busies is largely responsible for
corruption in official dealings.
• UPA regime drafted a national common minimum programme in May, 2004
• To provide corruption-free, transparent and accountable govt.
• Set up ARC to prepare a detailed blueprint for revamping the public administration
system.
• The programme laid emphasis on the need for promotion of e-governance on a massive scale
and desired that the Right to Information Act will be made more progressive, participatory and
meaningful.

Right to Information Act, 2005

• The preamble to the Act affirms that
“Democracy requires an informed citizenry and transparency of information which are vital to its
functioning and also to contain corruption and to hold governments and their instrumentalities
accountable to the governed”.

• Objective of the Act:-

To provide for setting out the practical regime of right to information for citizens to secure access to
information under the control of public authorities, in order to promote transparency and
accountability in the working of every public authority.
• It extend to the whole of India except the state of J&K.
• Subject to the provisions of this Act, all citizens shall have the right to information.
What is Information:-
• Information means any material in any form, including records, documents, memos, e-mails,
opinions, advises, press releases, circulars, orders, logbooks, contracts, reports, papers,
samples, models, data material held in any electronic form and information relating to any
private body which can be accesses by a public authority under any other law for the time
being in force.
What is Public Authority:-
• any authority or body or institution of self-government established or constituted:-
a) By or under the constitution
b) By any other law made by parliament
c) By any other law made by state legislature
d) By notification issued of made by the appropriate govt. and include
– Body owned, controlled or substantially financed
– NGO substantially financed, directly or indirectly, by funds provided by the appropriate
govt.

Record maintenance
The act makes it obligatory on the part of very public authority to maintain its records properly to
facilitate the right to information & publish relevant information & data regarding its organisation,
duties, function & roles plays by all its officers and employees including the organisation’s decision-
making process.

Administrative World Page 180

 PAPER 01

Information Commissions
Central information commission:-
• Consist of CIC+IC (not more than 10)
• These would be person of eminence in public life having wide knowledge of
– Law, S&T, management, social service, journalism, mass media or administration &
governance
• Member appointed for 5 years on recommendation of a committee:-
– PM
– Leader of opposition in Lok Sabha
– Union cabinet minister (nominated by PM)
• In the same way, state information commission is constituted in the state.
Public Information Officers:-
Every public authority is required to designate its specific public information officer (PIO) in all
administrative units for providing information to the applicants and giving reasonable assistance to
them
Procedure:-
• A person desiring information has to make a request in writing or through electronic means
along with a prescribed fee
• On receipt of such request, the information officer concerned shall as expeditiously as possible,
and in any case within 30 days
– either provide the information or
– Reject (reason of rejection)
• In case of rejection, the person concerned should be told within what period he/she can prefer
an appeal along with the particulars of the appellate authority.

Conclusion
RTI Act, surely makes a major step forward toward openness and transparency in governance.
But there are many challenges that this act has to face in course of its implementation.
• The bureaucratic culture of ‘secrecy’ is not easy to change.
• Politician has to accept that democracy means people’s rule, not politician’s rule.
• Politician have often been found lacking in ‘big visions’
• People in India suffer from a variety of bondage be it of caste, religion etc. this stand in the way
of enjoyment of the rights.
• Social freedom, through education & popular movements is the key to real assertion of popular
right.
it has been argued that the ‘open government’ idea has often been broached in terms of the
prevailing consensus that looks at secrecy and democracy as two sides of the same coin.
• Governments would like to keep certain things ‘confidential’; but citizens demand information
about how they are governed.
• Ultimately, a sensible and genuine democracy has to strike a balance somewhere and find out a
golden mean.

Administrative World Page 181

 PAPER 01

Administrative World Page 182

 PAPER 01

Administrative World Page 183

 PAPER 01

1. Administrative Law

Administrative Law– Meaning & Scope

With fast growing complexity of administrative tasks with administrative technique to achieve them
also is becoming more and more exacting. No doubt, achievement of some objectives is possible
through persuasion or constant watch and periodical inspections. Yet some of the objectives can be
achieved only through the control of human behaviour by applicability of set rules and orders. These
administrative rules and orders are described by different names like Administrative Law, law or rule
making, Administrative Legislation, Delegated Legislation.

• Administrative law is the body of law that governs the activities of administrative agencies of
the government.
• It is a branch of public law which is essentially anti-authoritarian.
It strives to develop a rule of law society based on fairness, reasonableness and justness.
 Administrative law as a separate branch of legal discipline, especially in India, came to be
recognised only by the middle of the 20th century.
In administrative law, the term “Administration” is used in its broadest possible sense and covers
within its reach –
 All executive actions, its programmes and policies
 All administrative aspects of Parliament and judiciary
 All actions of State like actors
 All actions of non-State actors (private entities) exercising public functions.
There is phenomenal growth of administrative power as a by-product of an intensive form of
government. Although it is necessary for development and growth, at times also spells negation of
people’s rights and values. That’s why administrative law is needed.
But, Administrative law also has a tremendous social function to perform. Without a good system of
administrative law any society would die because of its own administrative weight like a Black hole.
Administrative law, therefore, becomes that body of reasonable limitations and affirmative action
parameters which are developed and operationalised by the legislature and the courts to maintain and
sustain a rule of law society.
Pillars of foundation of any administrative law may be identified as –
1. Checking abuse of administrative power
2. Ensuring citizens an impartial determination of their disputes by officials
3. Protecting citizens from unauthorized encroachment on their rights and interests
4. Making those who exercise public power accountable to the public.

Definitions
Early English writer did not differentiate between administrative law and constitutional law and ,
therefore, the definition they attempted was too broad and general.

• Sir Ivor Jennings defines administrative law as the law relating to administration.

Administrative World Page 184

 PAPER 01

• A.V. Dicey, like Jennings, belongs to that group of English writes who did not recognise the
independent existence of administrative law.
• F.G. Goodnow – Administrative law is “that part of the public law which fixes the organisation
and determines the competence of the administrative authorities and indicates to the
individual remedies for the violation of his rights.”
• C.F. Strong - Administrative law is “that body of rules which regulates the relationship of the
administrative authority towards private citizens and determines the position of state officials,
the rights and liabilities of private citizens in their dealings with these officials as
representatives of the state and the procedures by which these rights and liabilities are
enforced.”

The American approach is significantly different from the early English approach, in that it recognised
administrative law as an independent branch of the legal discipline.

Administrative Law can be defined as “that branch of public law which deals with the organisation
and powers of administrative and quasi-administrative agencies and prescribes principles and
rules by which an official action is reached and reviews in relation to individual liberty and
freedom.”

Sources
Administrative Law comprises a large number of statutes,
The First seminar on
charters, rules, regulations and procedures, orders, etc.
Administrative law was
which are meant for running smooth administration. The organised by the Indian Law
main sources of administrative law are - Institute, New Delhi in
December 1957.
1. The constitution of the country
2. The statutes and the resolutions passed by the
legislature of a country
3. Charters, Local Body Acts granted and enacted by
the legislature
4. Rules, ordinances, regulations, orders, decisions, etc., issued by the administrative authorities
5. Customs and conventions
6. Judicial decisions of the courts

Scope:-
• Administrative law determine the organisation & powers and duties of administrative
authorities.
• The emphasis of administrative law is on procedures for formal adjudication based on the
principles of natural justice and for rule making.
• The concept of administrative law is founded on the following principles:-
 Power is conferred on the administration by law.

Administrative World Page 185

 PAPER 01

 No power is absolute or controlled.

 There should be reasonable restrictions on exercise of such powers depending on the
situations.
 Though administrative law is as old as administration itself since they cannot exist separately.
 In India, the early signs of existence of administrative law could be found in the treatises
written during the reign of the Maurays/Guptas/Mughals/British.
 It is based on the concept of rule of law that supports Natural Justice.
 It is to prevent violation of people’s rights by officials in power.
 Administrative law specifies the rights and liabilities can be enforced by those private
individuals.
 It provides accountability and responsibility in the administrative functioning.
 Also there are specified law and rules and regulation that guide and direct the internal
administration relations like hierarchy, division of labour etc.

Significance
• It is very significant because if it did not exist then the very concept of having a democracy and
a government to work for the people would be self defeating because then there would be no
responsibility of public officials to anybody.
• The administration would run arbitrarily thus creating a huge monster that would eat up the
very system.
• There would be an upset in the balance in areas such as police law, taxation, transportation,
broadcasting etc.

Reason for growth

• Rise in complexity warranted handling of variable by the state authorities in order to provide
functioning in that area with necessary certainty and prescription.
• Industrial revolution that resulted in the coming up the cities and new types of economic
transactions necessitated handling of affairs by govt, in order to facilitate production, supply &
exchange of products and service.
• Technological invention and increasing specialisation has called for the increased need of
specialised handling of affairs by govt officials..
• To allow necessary flexibility in the administrative system.
• To allow experimentation in order to ensure the application of best fit model in a given
circumstance.
• To allow participating of people in the administrative functioning.

Dicey on administrative Law

Albert Venn Dicey, the great British constitutional scholar of the 19th century, is best known in the field
of administrative law for his denial of even the possibility of administrative law in common law
countries.

• Dicey a well-known English Jurist in his famous work “Law of the Constitution” (1885),
identified administrative law with that part of French “Droit administratif”.
• According to which actions by the citizens against officials for wrongful acts committed in their
official capacity are tried, not by ordinary courts of law but by special administrative courts.
• Dicey described Administrative law as contrary to the rule of law.

Administrative World Page 186

 PAPER 01

• Dicey was against making different rules for a different class of people so he stood by against
this concept and promoted the idea of Rule of Law.
• Here a term is used “Droit administrative”. This term was introduced by Napolean and in
France, it was known as Droit Administratif.
• France was having separate administrative court for dealing with the matter.
• According to this, action by the citizens against an official for a wrongful act committed in their
official capacity will be dealt by the special court not by the ordinary courts of law.
• Droit Administratif does not consist of rules and law made by the French Parliament but it
includes a rule which is developed by the judges of the administrative court.
• 3 main features of Droit Administratif
– Ordinary courts do not have jurisdiction in which the state or state officials in their
official capacity constitute a party.
– The rights of the state’s officials are determined by a special body of law and rules,
which are not applicable to citizens
– A special protection was accorded to its officials in France for wrongful acts done in
their official capacity.
• Features of Rule of Law:-
– Absolute supremacy of the ordinary law of the land
– Equality before the law for both official and non-officials
– The primacy of the rights of the individuals which constitute the source of
constitutional law instead of the latter being the source of the former.
• Thus, dicey believed that there should not be such a separation where there is one law that
govern the administrative and political official (administrative law)
And
• One that governs the society and its people (civil & criminal law).
• He advocated rule of law as prevalent in the UK where everybody was equal in the eyes of law
and only one common law governed each and every individual.
• But, he was heavily criticised for this later as he did not take into account that even the crown
in UK was immune from civil and criminal proceeding.

Merits and Demerits of Dicey’s Concept

Merits
• Help in making limits to the power of administrative authorities
• A major role in growth and recognition of administrative law
• Act as a scale for the test of administrative action

Demerits
• His theory was not fully accepted during that era also
• Failed to distinguish between discretionary and arbitrary power.
• He misunderstood the concept of Droit administration which was actually successful in France.

Administrative World Page 187

 PAPER 01

Administrative World Page 188

 PAPER 01

2. Delegated Legislation

Delegated Legislation
• It is one of the best known topics in the realm of Administrative Law.
• ‘Delegated Legislation’ refers to the law-making power conferred by Parliament on the
executive.
• As the exercise of the power is derivative power and not the original one, it is called
subordinate legislation.
• The history of Delegated legislation goes back to the 16th century.
• Role of the state is positive now and include the management of entire life of the people form
“womb to tomb”.
• This led to increasing burden on the legislature.
• Delegated legislation is outcome of this increasing burden on parliament.

Types of Delegated Legislation

Normal Delegated legislation:- they do not deal with matters of policy, taxation & Repealing,
modifying constitutional & statutory laws.
a) Positive delegated Legislation:- this involves legislature enabling administration to make laws
and in that gives the rules and regulations how the administration is to go about it. Thus it is
properly defined.
b) Negative delegated legislation:- also certain areas are notified where administration is
restricted from making laws.
Special Delegated Legislation/Henry VIII Clause:- here there are no areas or restrictions on the
administration on legislation. This is also called Exceptional Delegated Legislation.
An act which delegates legislative powers to amend acts of Parliament, either the Act under which
the powers are delegated or other acts, is known as the “Henry VIII Clause”

Advantages
• It saves parliamentary time without, in any way, undermining its overall responsibility.
• It is conducive to flexibility.
• It permits of the utilization of expert knowledge
• Since official are the midst of the situation in which the law operates, they are ideally suited to
supply details best calculated to attain the statutory objective.
• Rule-making power to the executive makes way for the consolation of affected interest. It
becomes possible to make practical adjustment in policy execution to suit popular wishes.
• Parliament is not always in session. Therefore, executive should be suitably empowered to face
emergencies.

Disadvantage
It has aroused moral fear and led some thinkers to identify it with the virtual renunciation of
democracy.
The principal criticisms against the system are the following:-
• The official in their zeal for “getting things done” are prone to ignore popular will.

Administrative World Page 189

 PAPER 01

• Sometimes, matters of vital importance including policy matters are delegated to the
executive. This is objectionable.
• It may lead to the legislature having diminished control over executives and significance.

• In the name of technical law making by executive sometimes even basic or those which can be
made by the legislature are passed on.
• The executive is unconnected with the people & thus they would not take into account a lot of
substantive interests of people and focus more on organised interests and technicality of
implementation.

Safeguards
• Since delegated legislation is a necessary evil, and is likely to increase in volume rather than
diminish.
• Therefore, some safeguards and controls are necessary and desirable.
 Limits to law-making powers given to the executive should be carefully defined by the enabling
acts.
 The jurisdiction of the courts should not be curtailed.
 The departments should consult outside interest, which are directly affected by the proposed
exercise of rule-making powers.
 Explanatory notes should be attached to all regulation.
 Uniform procedure should be adopted in regard to all regulations requiring them to be
numbered, printed, published and cited.
 Parliamentary control and supervision should be strengthened.

Delegation Legislation in India

• There is considerable use of delegated legislation in India.
• However, statistics are not available to explain precisely the volume of such legislation.
• Statutory rules are not published in India unlike that of U.K. where the Statutory Instruments
Act 1946 requires publication of such rules and orders.
• Moreover, Indian Parliament unlike that of its counterpart in U.K. is a non-sovereign body. Its
powers and privileges are defined in the Constitution.
• The constitutional provisions take precedence over the parliamentary enactments and set
limits to the latter.
• As such, the Acts passed by the Indian Parliament are challengeable in the courts of law. They
must conform to the Constitution otherwise their provisions are liable to be declared null and
void.
• The Delegated Legislation may therefore be declared void under the following situations:
(a) The Enabling Act is ultra vires,
(b) The subordinate legislation violates the Constitution, and
(c) The subordinate legislation runs counter to the provision of the Enabling Act.
• What are the limits of such delegation?—has been answered in Delhi Laws Case and other
subsequent decisions of the Supreme Court.
• According to the majority decision of the Court, “the essential powers of legislation cannot be
delegated”
• Various other decisions of the courts in certain cases, viz., Ram Jawaya v. State of Punjab; Raj
Narain Singh v. Chairman, P.A. Committee; Hari Shankar Bagla v. M.P. State; Hamdard

Administrative World Page 190

 PAPER 01

Dawakhana v. Union of India, clearly brought out main principles governing delegation of
legislative power in India.
• The principles so deduced are:
• (i) The legislature cannot delegate its essential legislative function to an outside authority in
any case
• (ii) The essential legislative function comprises laying down the policy of the law and making
it a binding rule of conduct;
• (iii) When the essential legislative function of laying down the policy of law and providing
guidance for implementing the policy has been performed by the legislature, there can be no
constitutional bar against the delegation of subsidiary and ancillary power to an outside
authority;
• (v) It is open to the legislature to formulate the policy as broadly and with as little or as much
details as it thinks proper.
• (vi) Delegated legislation may assume any of the three forms, namely subordinate legislation,
supplementary legislation and conditional legislation. Each one of these forms is subject to the
same conditions, viz., and essentiality.

Committee on Subordinate Legislation

• According to Rule 215 the Rules of Business of the Lok Sabha made a provision for the
constitution of a committee on Subordinate Legislation “to scrutinize and report to the House
whether the powers delegated by Parliament have been properly exercised within the
framework of the statute delegating such power.”
• It also necessitated the publication of all rules, regulations and bye-laws in the Gazette of India.
• Rule 71 further states that, “a Bill involving proposals for the delegation of legislative power
shall further be accompanied by a memorandum explaining such proposals and drawing
attention to their scope and stating also whether they are of normal or exceptional character.”
• Rule 233 prescribes the powers of the Committee. It provides after each such order referred
to in Rule 222 is laid before Parliament, the Committee shall in particular consider:
(a) Whether it is in accord with the general objects of the Act pursuant to which it is made.
(b) Whether it contains matters which in the opinion of the Committee should properly be dealt with in
an Act of Parliament.
(c) Whether it contains imposition of taxation.
(d) Whether it directly or indirectly excludes the jurisdiction of the court.
(e) Whether it gives retrospective effect to any of the provisions in respect of which the Act does not
expressly give any such power.
(f) Whether it involves expenditure from the Consolidated Fund or the Public Revenues.
(g) Whether it appears to make some unusual or unexpected use of the powers by the Act pursuant to
which it is made.
(h) Whether it appears to have made unjustifiable delay in the publication or laying it before
parliament.
(i) Whether for any reason its form or purport calls for any elucidation.
• Rule 224 states, “If the committee is of the opinion that any order should be annulled wholly or
in part or should be amended in any respect it shall report that opinion and the grounds
thereof to the House within one month of the commencement of a session of Parliament after
the promulgation of such orders or within such earlier or later period which a statute of a
parliament may have fixed for any specified case.” Further, “if the committee is of the opinion

Administrative World Page 191

 PAPER 01

that any other matter relating to any order should be brought to the notice of the House it may
report that opinion and matter to the House.”
• As per decision of the Supreme Court, the essential functions of the legislature cannot be
delegated.
For instance, the Indian Legislatures have not been authorized to delegate the following functions:
• (i) The power to declare what the laws shall be in relation to any particular territory or locality.
• (ii) The power to extend the duration or operation of an Act beyond the period mentioned in
the Act.
• (iii) The power to repeal or amend a law.
• The Committee on Subordinate Legislation which was appointed in December, 1953 consisted
of 15 members including the Chairman who are appointed by the Speaker annually. The
Chairman happens to be an important member of the Opposition Party.
• The Committee is responsible for evolving a uniform pattern of the terms of delegation
incorporated in the Enabling Acts and improving the methods of publicity to the Rules
• The Committee has recommended to Parliament the observance of the following principles:
1. All the Acts delegating legislative power should uniformly require the rules made under them
to be laid before the Houses as soon as possible but not later than a week after publication in
the Gazette.
2. The laying of the rules before the Houses should in all cases be for a period of 30 days.
3. The Enabling Acts should always provide expressly that the rules made under them shall be
subjected to modification by Parliament.
4. In exceptional cases, provision may be made for laying of the rules and regulations on the floor
of the Houses, 30 days before the rules become operative.
There is no denying the fact that the Parliament has not uniformly followed all these principles.
However, the committee has in its subsequent meetings acted on the principle that whether any rule
is expressly required to be laid before the Houses or not, the committee possesses the right to
scrutinize the whole range of subordinate legislation.
Moreover the Parliament possesses the inherent right to modify any rules whether the Enabling Act
made an express provision to that effect or not.

Administrative World Page 192

 PAPER 01

3. Administrative Adjudication

Administrative Adjudication
• It is an important component of administrative law along with delegated legislation.
• It came into response to modern day changes.
• Tribunals:- “bodies outside the hierarchy of the courts with administrative or judicial
functions”
• It is a settlement of disputes related to administrative functioning by an administrative
tribunal (an executive body that may acts as quasi-judicial body).
• Issues or disputes arising during administrative functioning is done by this mechanism acts as
an adjudicator instead of going to the courts of law directly so these disputes are settles
speedily as the adjudicators are administrative officials.
• This helps in non-stagnation of policy work and thus benefits the people at large.

Types of administrative Adjudication

• The administrative tribunals may roughly be divided into two main types – Anglo-Saxon &
continental.
• Indian system of administrative adjudication is modelled upon the former type.
Main features of the Anglo-Saxon type:-
• The administrative tribunals are not organised into a system.
• The administrative judicial functions are often performed by the departments of the
government.
• Regulatory, administrative and judicial functions may often be concentrated in one agency.
• The tribunals are often manned, not by qualified judges and administrators, but by civil
servants
• There is lack of a general method of procedure.
• There is no definite hierarchy of appeal instances
• Appeals often lie to the ordinary courts of law.
Features of continental types:-
• Administrative tribunals are organised into a definite system.
• There is a well-defined hierarchy in respect of appeals.
• The tribunals are generally separated either partially or wholly, at least in the higher instances
from the regular administration.
• The tribunals follow a well-defined procedure.
• They are manned by trained judges and experienced administrators
• They are free form the control of the ordinary courts of law. The decisions of the highest
tribunals are final.

Advantages
• Administrative justice is cheaper.

Administrative World Page 193

 PAPER 01

• Perform their functions with greater flexibility.

• The proceedings are broadly characterised by informality and simplicity.
• Quicker than ordinary courts
• Flexibility, adaptation and responsiveness are cited as some of the merits of administrative
adjudication
• Emergency power may be granted to, or withdrawn from the administrative authorities
sometimes by a notification or executive orders.
• Provide relief to the ordinary courts.
The chief merits of the administrative tribunals are Cheapness, freedom from technicality, expedition
and expert knowledge of the particular subject

Disadvantages
• It violates the Rule of Law
• Also violates principles of natural justice
• There is lack of publicity
• Tribunals cannot act judicially, being not manned by persons of judicial training and experience.
• Sometimes, no appeals to the ordinary courts of law is permitted against the decision of the
administrative tribunal.
• Do not observe uniform procedure.
Administrative adjudication suffers from many shortcomings and abuses cannot perhaps be denied.
But it is an inescapable necessity in a modern complex society. It should not be ended; rather, attention
and efforts should be directed towards mending it.

Suggestions
• Administrative tribunals should be manned by persons possessing legal training and
experience.
• A code of judicial procedure for administrative tribunals should be devised and enforced in
view of prevailing varying procedures of administrative adjudication in India.
• The jurisdiction of Ordinary courts should not be curtailed.
• Indiscriminate recourse to administrative tribunals must be avoided. These tribunals have
utility for specific purpose and within specific limits.
There is an apparent need for introducing more of judicial elements in the administrative tribunals.

Administrative World Page 194

 PAPER 01

Administrative Tribunals
The phenomenal increase in the governmental functions leads to the concentration of enormous
powers in the hands of executive. These powers include subordinate law making powers and the
judicial powers.

Administrative tribunals are often said to be a product of social, economic and political developments
of the 19th and 20th centuries. In UK, 1911 is considered an important year because it witnessed the
establishment, under Part-II of the National Insurance Act, of a non-judicial system for reviewing
decisions about entitlement to unemployment insurance payment.

• Administrative Tribunal run parallel to the court system assigned with the function of dispute
resolution but are not courts.
• They grow in response to the growing need of justice in an era of rising conflicts and the inability of
the courts to deal with them.
• Tribunals come as a substitute for courts when lesser formalism, greater expediency and better
expertise were required in adjudication of disputes.

The term ‘tribunal’ is derived from the word ‘tribunes’ which means, ‘Magistrates of the Classical
Roman Republic’.

 A ‘tribunal’ is referred to as the office of the ‘Tribunes’ that is, a Roman official under the
monarchy.
 A tribunal, generally, is any person on institution having an authority to judge, adjudicate on,
or to determine claims or disputes.

A.V. Dicey – All courts are tribunals but all tribunals are not courts. A tribunal is a genus of which courts
have emerged as a specie. The two terms, tribunal and court, were used interchangeably.

International Administrative Tribunals

The League of Nations, in 1927, set-up an administrative tribunal but the league was dissoleved in 1946
and the powers were transferred to the International Labour Organisation Administrative Tribunal.
There are other tribunals like the United Nations Administrative Tribunal which decides on complaints
of the International Aviation Maritime Organisation.

Evolution of Administrative Tribunals in India

The concept of tribunalisation came into existence in India with the establishment of the Income Tax
Appellate Tribunal before the independence of the country.

• The 42nd Amendment to the Constitution introduced Part XIV-A which includes Article 323A and
323B providing for constitution of tribunals dealing with administrative matters and other issues.

In India, the function of dispensing justice is entrusted to regularly established courts on the pattern of
common law system. Given below is the timeline regarding the evolution of administrative tribunals in
India –

• 1924: Justice Rankin Committee was constituted to examine the operation and effective of the
substantive and adjective law whether enacted or otherwise followed by the courts of India.

Administrative World Page 195

 PAPER 01

• 1941: The Income Tax Appellate was established to reduce the workload of courts to expedite
decisions.
• 1968: The Administrative Reforms Commission of India studied administrative tribunals to
explore the possibilities, of setting them in different fields. It recommended establishing the
civil services tribunals.
• 1970: The Wanchoo Committee recommended the setting up of Income-Tax Settlement
Commission to resolve disputes concerning fiscal laws which would result in an increase of
revenue. It also established a Direct Taxes Settlement Tribunal to get fair and quick decisions.
• 1972: the High Court’s Arrears Committee (Justice J.C. Shah Committee) was constituted by
the union government to deal with the pending numbers of writ petitions in the Supreme
Court and the High Court.
• 1974: the Law Commission in its 58th report recommended that a commission must be set up
to deal with litigation as the last resort in the higher courts.
• 1976: The Swaran Singh Committee Report recommended establishing administrative
tribunals as a part of the adjudicative system under the constitution.
 42nd Amendment Act, 1976 provided for the insertion of Articles 323-A and 323-B in
the Constitution of India to make it possible to establish administrative tribunals.
• 1985: Administrative Tribunals Act, 1985.

Advantages of Administrative Tribunal

1. Speedy Justice
 Tribunals serve the purpose of reducing burden on the courts and giving justice
to the aggrieved citizens.
 Tribunals serve with expediency as these administrative agencies are better
than ordinary courts in disposing cases in timely manner.
2. Saves Money
 The cost of going into litigation in the courts in enormous.
 Tribunal are a cheaper option to court procedures.
3. Informal
 Most aggrieved citizens hesitate to go to courts due to the language that is
used in applying and its procedures.
 Tribunals offer a simple procedure which accepts even a handwritten
application.
4. Fair Justice
 The tribunals provide fair justice to individuals, not undermining the courts.
 They have the advantages of having support of experts on their term to
comprehend technical issues which the courts lack as they are generalists in
law.
5. Precedents
 The tribunals are independent bodies who can take decisions according to the
individual cases. They do not follow their own precedents; however, they have
to follow court precedents.

Administrative tribunals are cheap, accessible, technically sound ensure fair justice, rich in localised
knowledge, reduce the workload of the judiciary and the government departments.

However, all is not as advantageous as it looks on paper. Here are some disadvantages of tribunals –

Administrative World Page 196

 PAPER 01

1. Imbalance
 Most of the times the aggrieved citizen in unable to articulate and represent oneself
and is unable to fight fairly with well represented organisations like large corporations
or government.
2. Rule of Law
 Tribunals do not adhere to the principle of Rule of Law.
 Tribunals have their distinct laws and procedures curbing the conceptual foundation of
equality.
3. Conflicts of interest
 No individual can be a judge in which one is involved.
 This principle of nature justice is violated giving rise to conflict of interest because
government is a party in many conflicts and cases before the tribunals.
4. Unpredicted
 Since the tribunals do not follow any precedent, the claimant has no base to
understand and predict the outcome.
 Lack of uniform procedure of adjudication adds to the problem.
5. Lack of legal knowledge
 The tribunals have a common practice of appointing administration or technical heads
who have no legal knowledge and may not equipped to give sound and wise
judgments.
6. Appeal
 In many tribunals, the right of appeal does not prevail.

Administrative World Page 197

 PAPER 01

Administrative World Page 198

 PAPER 01

Concept of Comparative Public

1.
Administration

Comparative Public Administration

Comparative Public Administration is the first major development in the post-war evolution of public
administration. It aims at the development of a more scientific public administration by building and
strengthening theory in public administration.

Concept, Background & Approaches

• Comparative public administration is defined as the study of administrative systems in a
comparative fashion. In other words, the study of public administration in other countries.
• Another definition for "comparative public administration" is the "quest for patterns and
regularities in administrative action and behaviour"
• It is a very significant area of study in Public Administration.
• It helps in understanding Administrative setups and their functioning in various settings and
societies/countries and what works and why it works.
• Also, it helps improvise administrative systems making them more efficient together
with helping in adding and improvising the already existing theories of Public Administration
thus leading to a strong and practical theory of the subject with the help of practical
experiments and analysis.

Definitions
Nimrod Raphaeli : “Comparative Public Administration is a study of public administration on a
comparative basis.” He traced the origin of comparative public administration to the 1952 Conference
on Administration held at Princeton University in USA.

Robert H. Jackson : “Comparative public administration is that facet of the study of public
administration which is concerned with making rigorous cross-cultural comparisons of the structures
and processes involved in the activity of administering public affairs.”

Comparative Administration Group: “Comparative public administration is a theory of public

administration applied to the diverse cultures and national settings and the body of factual data by
which it can be examined and tested.

Comparative public administration stands for cross-cultural and cross-national public administration. It
has two basic motivational concerns –
1. Theory building
2. Administration problems of developing countries
Ferrel Heady describes the period of the late 1960s as the ‘heyday of the comparative administration
movement.’

Administrative World Page 199

 PAPER 01

As rightly observed by Nicholas Henry, comparative public administration is different from traditional
or American Public Administration in two respects –
i. Public administration is ‘culture-bound’ (ethnocentric) while comparative public administration
is ‘cross-cultural’ in its orientation and thrust. In 1936, L.D. White observed that a principle of
administration is as useful a guide to action in the Public Administration of Russia as of Great
Britain, of Iraq as of the United States. But later Robert Dahl and Dwight Waldo pointed out
that cultural factors could make public administration on one part of the globe quite different
animal from public administration on the other part.
ii. Public administration is ‘practitioner-oriented’ and involves the ‘real-world’ whereas
comparative public administration attempts to the ‘theory-building’ and ‘seeks knowledge for
the sake of knowledge’. In brief, comparative public administration has a purely scholarly
thrust, as opposed to professional.

Need for the Study of Comparative Public Administration

• In public administration, a comparative approach in the study of Administrative problems is
comparatively new.
• Early thinkers and scholars of public administration like Woodrow Wilson and others in order to
properly study and understand and improve U.S. administration studied the administration of
European States.
• In their studies they tried to deeply study local problems and made a reference to administrative
systems of other countries only as a reference where necessary.
• This made the study of the whole subject very limited.
The result of this was that as time passed and administrative problems became complex with that need
for comparative study of different systems of Administration was felt.

The scholars have given different concepts about comparative public administration -

1. Nimrod Raphaeli’s Views

He is of the view that comparative public administration is the study of public administration
on comparative basis. This definition does not clarify the meaning of comparative public
administration. It also does not clarify as to what are the main objectives of study of this
subject.

2. Robert Jackson’s Views

Robert Jackson has given 4 basic assumptions of the study of comparative public administration

• The science of comparative public administration though not fully achievable is at least
worthy of seeking.
• For scientific study of public administration cross cultural studies should be explored.
• All empirical findings should be comparatively analyzed.
• Comparative analysis will make it possible to derive certain hypotheses which can be
universally applied.
3. Amitai Etzioni is of the view that eventually comparative study of Administration will
established the study of universal prepositions of organization theory.
4. C.A.G. while discussing the concept of comparative public administration has laid stress on
generating data for beginning large scale empirical research and believes in comparative cross
cultural administrative studies.

Administrative World Page 200

 PAPER 01

5. Fred Riggs while discussing the concept of comparative public administration has said that
should be used strictly speaking to empirical nomothetic and ecological studies.

Nature of Comparative Public Administration

Study of comparative public administration as a part of the subject of public administration though not
very new is at the same time not very old as well. Ordinarily from public administration is understood
the study of two or more organizations, their working in also their structures. This comparison can be
both at National as well as international level. The coverage of comparative public administration is
very wide. It spreads to the whole universe.

Ferrel Heady on Nature of comparative Public Administration -

He has said in the study of comparative public administration can be covered important administrative
institutions, administrative organizations, organization structures, local Administration, and
administrative system of public sector industrial units

Ferrel Heady identified for constructional approaches in comparative public administration

1. Modified Traditional
2. Development Oriented
3. General System Model Building
4. Middle-range theory formulation

Riggs on Nature of Comparative Public Administration

In an article entitled ‘Trends in Comparative Administration’ written by Riggs in 1962, he Sadi that in
the study of comparative public administration three trends are quite visible.

These are -

1. From Normative to empirical orientation

2. From ideographic to nomothetic orientation
3. From non-ecological to ecological administration

Scope of Comparative Public Administration

• It studies comparatively different systems
• It comparatively studies working of democratic institutions
• It studies methods of controlling administration
• It studies method of controlling employees
• It studies administration of social welfare activities
• It studies the working of organs of government
• It studies institutions that international level.
The views about the scope of comparative public administration differ, but general feeling is that it is
likely to widen.

Increasing Scope of Comparative Public Administration -

In comparative public administration a lot more is being covered these days because of several
reasons.

Administrative World Page 201

 PAPER 01

• One important reason for this is that activities of public administration are everywhere
increasing and with that administrative system in one country is being very much influenced by
the other.
• This is particularly happening because distances have very much shortened and administrators
of public administration of different countries with different cultures and systems frequently
meet each other in meetings, seminars , workshops, in conferences where they are influenced
by each other's ideas and viewpoints.
• The scope of comparative public administration is also increasing because nations are faced
with similar type public administration problems and each one tries to find out how the other is
attempting to solve these.

In fact the at the time is passing with that the scope of study of comparative public administration is
increasing and is likely to still further increase.

Sources/Causes
The factors that contributed to the rise and growth of comparative public administration are –

i. The revisionist movement in comparative politics due to dissatisfaction with the traditional
approaches.
ii. The dissatisfaction with traditional public administration which was culture-bound.
iii. Intellectually oriented catalysts, that is, to develop universally relevant theoretical models.
iv. Exposure of American scholars and administrators to the new features of the administrative
systems of developing countries during the World War II period.
v. The emergence of newly independent third world countries which attempted to achieve rapid
socio-economic development, creating opportunities for scientific investigation.
vi. Policy oriented catalysts, that is, to develop practical knowledge to make policy-formulation
and policy-execution more effective.
vii. The scientific, technological and theoretical developments which have influenced the forms of
administrative structures.
viii. The extension of American foreign aid programmes to newly emerged developing countries.
ix. The rise of behavioural approach in public administration as a reaction to the traditional
structural approach.

Importance/Significance of CPA
• Woodrow Wilson wanted to use comparative study for improving US administrative system.
• F. J. Tincker is of the opinion that the study of the subject is advantages both for individual
administrator and the administrative system as a whole.
• Ferrel Heady is of the view that public administration system can be developed on scientific
lines. It can help in collecting more data about administration
• Robert A. Dahl also believes that this subject of study can be developed on scientific lines.
• Nimrod Raphaele is of the opinion that the subject helps in knowing facts about public
administration in other countries. It's study also helps in knowing what changes in
administration are coming in other countries.
Some of the important advantages of the study of comparative public administration are -

• It discourages narrow regional outlook

• It develops thinking horizon
• It helps in developing scientific outlook

Administrative World Page 202

 PAPER 01

• It has widened the scope of study of public administration.

• It has opened a new era in public administration.
• It has brought Administration and politics closer to each other.
• The study has broad social science subjects closer to each other.
• It has laid stress on environmental studies.
• It has paid attention to social analysis.
• It has encouraged social research.
• It lays stress on introducing timely Administrative reforms.

Evolution of Comparative Studies in Public Administration

Study of public administration as a part of political science is very old but comparative study of the
subject begin during the 18th century.

• By comparative study we mean a type of study in which it is possible to have a scientific

explanation of principles. Its focus is on cross cultural and cross national studies. In it stress is
laid on systematization.
It was during the 18th century that interesting comparative study in public administration developed.
Those who showed interest in the USA were Hamilton, Jefferson and Woodrow Wilson. Another
scholar who showed interest was Dorman B. Easton.

• FW Taylor developed scientific management principles and his scientific management concept
became very popular all over Europe.
• In this, he laid stress on observations, measurements, and generalizations.
• His principles laid sufficiently sound principles for the study of comparative public
administration.
Both L.D. White and W.F. Willoughby in the writings also pleaded it that in the study of public
administration stress should be laid on scientific principles.

• Willoughby was of the view that fundamental principles of general application can be same
both in the case of Public Administration and natural sciences.
For various reasons the pace of study of comparative public administration was slow before the growth
of behavioural movement in Europe.

Behavioural Movement and CPA

A step forward was taken in the studies of comparative public administration with the rise and growth
of behavioural movement.

• Behaviouralism developed in the late 1930s and 1940s, that is, near about the time of World
War II.

In so far as administrative studies are concerned it is believed that behavioralism started with the
Human Relation movement which started in 1930 and developed by Chester Bernard and Herbert
Simon.

• It started as a protest against traditionalism.

Administrative World Page 203

 PAPER 01

Some of the features of behavioral approach in administrative studies were as follows -

• The literature produced by behaviourlists was not prescriptive but analytical and descriptive.
• The behaviourlists laid stress on scientific study of human behavior.
• They were opposed to traditionalist approach to the study of problems of public
administration.
• They did not believe that an administrative organization is basic unit of study but believe that
for an administrative study individuals and their environment should be picked up.
• This stressed on operational definitions of the terms, rather than their theoretical definitions.
• They laid stress on interdisciplinary approach and on the study of the close relationship of
Administration with other social science subjects.
• They laid emphasis on quantification of data on the one hand and classification,
standardization, and mechanization on the other.
• They believed that there should be no hesitation in accepting the conclusions drawn by other
social science disciplines.
• They also showed concern with formal theory building.
• They were of the view that administrative behavior data collected by other social sciences after
necessary verification ought to be accepted.
The behaviourlists have criticized traditionalists on the following grounds -

1. The literature produced by traditionalists was based on studies of Administrative systems of

Western Nations only. Non Western administrative systems have been completely ignored.
2. Their approach was normative. They are committed to western democracies.
3. Their approach to development is unidirectional.
4. They have only nominally mentioned administrative institutions and ignored non-political
factors which influence these.
5. Their approach is legalistic and formalistic and not practical.
6. They have produced descriptive and not analytical literature.
But behavioralists are not all correct in criticizing the traditionalists. They used available and known
methodology. They also developed certain important concepts. They labored hard in collecting
descriptive material. Their contribution was significant when viewed in the background of the situation
in which they were placed.

Impact of Behaviouralism on CPA

The impact of behavioural revolution on studies in comparative public administration was very deep.

• It was this approach which helped in theory construction in comparative public administration.
• It became responsible for undertaking research in comparative public administration on
scientific lines.
• Stress begins to be laid down on testing of hypotheses in cross cultural studies.
• There was no hesitation in borrowing concepts, tools and findings from other social sciences
subjects which made studies in researchers considerably easy in CPA.
The whole subject got an interdisciplinary approach and Outlook. Not only this but Nature and scope of
study of public administration considerably increased.

Studies in Comparative Public Administration

Administrative World Page 204

 PAPER 01

As the time is passing with that more and more studies in comparative public administration are being
undertaken. Some studies in bureaucratic behaviour in cross-cultural settings have been made by
Morroe Berger, Robert Presthus and Michael Crozier.

• Morroe Berger brought out in 1957 his ‘Bureaucracy and Society in Modern Egypt’.
• Robert Presthus wrote on ‘Behaviour and Bureaucracy in many cultures’, which appeared in
Public Administration Review in 1959.
• In 1964, Michael Crozier wrote ‘The Bureaucratic Phenomenon’.
In addition to these, works of Barnard and Simon, Chris Argyris, Likert, McGregor can be quoted.
Bureaucratic study by Peter Blau and Robert Martin are also among these.

Development in CPA post World War II

The role of Comparative politics Movement
During the post-World War 2 period there was a general tendency to have comparative studies and the
comparative politics movement began in 1953. It was this moment which provided bases for
comparative administration Movement

• In 1953 social science results council was founded and with that beginning can be said to have
been made of comparative politics movement.
• It was this council which approved a seminar on comparative politics.
• Subsequently it set up a committee on comparative politics as well.
• The committee had well known scholars as its members. These included G. Almond, Lucian Pye,
Myron Weiner and Sidney Verba among others.
• In 1962 the committee organized a conference to discuss the role of bureaucracy in political
development.
• Conference papers were published under the title ‘Bureaucracy and Political Development’
which came out in 1963.
• The work of this conference around the sufficient interesting comparative public
administration studies.

Princeton Comparative Administration Conference

Step forward in the study of comparative administration was taken in 1952 when the Administration
Clearing House sponsored a conference on comparative administration.

• It appointed a sub committed to develop relevant criteria and design for field studies in foreign
countries in the area of comparative public administration.
About a year later in 1953 American Political Science Association appointed an ad hoc subcommittee
on comparative administration, which continued its activity till the Comparative Administrative Group
was set up under American Society for Public Administration.

The Comparative Administration Group

• It was set up in 1963 as a committee of American Society for Public Administration.
• It was funded for long time by Ford Foundation.
• It has developed a threefold program for increasing research, teaching and policy making in
administration.

Administrative World Page 205

 PAPER 01

It tries to establish a link between scholars and government officials engaged in public administration.

• It increased research and organised seminars and conferences on comparative administration

with focus on third world countries.
• It spread its networking Asian, African and Latin American countries.
• It has brought out and helping bringing literature on comparative administration.

# The International Political Science Association set up a panel in Paris on comparative public
administration.

The eminent scholars associated with the CAG were Fred Riggs, Alfred Diamant, Ferrel heady, Dwight
Waldo, Wallaca Sayre, John Montgomary, Ralph Braibanti, Bertram Gross and others.

Literature in Comparative Public Administration

For a very long time CAG with financial assistance of Ford Foundation did considerably good work in the
field of comparative public administration.

Literature in comparative public administration has been divided into four categories -

1. Modified Traditional Literature

2. Development Oriented Literature
3. General System Model Building Literature
4. Middle Range Theory Formulation Literature

Modified Traditional Literature - this is a type of literature in which research tools have been used in
efforts have been made to use the finding of other social science subjects. The whole literature of the
period can broadly be divided in two categories namely

• The literature which is concerned with a particular administrative problem for example
organization of civil services, administrative organization, financial administration, administrative
control, etc.
• Literature in which all administrative problems have been dealt with and these have been
comparatively studied.
Development Oriented Literature

• In this, stress has been laid on the need for an efficient administrative system for bringing quick
socio economic and political changes. Emphasis is on unity in thinking and action.

General System Model and Middle Range Theory Formulation Literature

Stress has been laid on developing models and typologies.

• A model is required to explain datas and make prediction for the future.
• As a result, several models have been prepared.
• Professor Diamant has made a mention about Political Culture Model and General System
Model in politics.

Administrative World Page 206

 PAPER 01

• Professor FW Riggs is known for developing General System Approach in comparative public
administration.
Robert Presthus developed Middle Range Theory. In his view for the study of comparative public
administration, it is essential that only one aspect should be picked up for detailed study and that
should be researched as well.

Dwight Waldo is of the view that for the study of comparative public administration middle level
bureaucracy model is very appropriate.

Some of the important works in CPA are given below -

1. Heady & Sybil. L. Stokes (Ed) : Papers in Comparative Public Administration; 1962
2. Keith M. Henderson (Ed) : Comparative Public Administration -Theory and Relevance; 1967
3. James Thompson : Comparative Studies in Administration, 1959
4. Robert H. Jackson : An analysis of Comparative Administration Movement; 1966
5. Preston P. Le. Breton (Ed) : Comparative Administration Theory; 1968
6. Riggs and Edward W. Weidner : Models and Priorities in the Comparative Study of Public
Administration
7. Ennjgle Wood Cliffs, N.J. : Public Administration: A Comparative Perspective.
8. Rephaeli : Readings in Comparative Public Administration; 1967
9. F. W. Riggs : Administration in Developing Countries: The Theory of Prismatic Society; 1964

Approaches to the Study of Comparative Public Administration

Ideal or Bureaucratic Approach:
• Bureaucratic specifications are studied for reaching conclusions and developing understanding.
• Under this approach structures of organisations are analysed in terms of their horizontal
differentiation, vertical differentiation, span of control,etc. Procedures and rules are analysed
and the framework of functioning is determined.
• Job specifications and descriptions at various nodes are analysed and some understanding is
reached on the basis of elaborateness and degree of specialisation compared in regards to
different administrative systems.
• The limitations of this approach is that though it has been considered simple but it does not
explain the structures and their functions in society and gives a very general observation.
Structural - Functional Approach :
• It is considered as a very popular approach for comparing various administrative systems and
was implemented by Fred W. Riggs in his study for developing his Models of
society/environment/ecology.
• This approach analyses society in terms of its various structures and their functions for reaching
an understanding regarding their positioning and functioning.
• Structures here can refer to govt.(political arrangement) and abstract like values systems in
society.
• Function is seen as the discharge of duties by these structures in the society.
• The limitation of this approach is that there has to be a correct identification of the
structures before proceeding to analyse them especially in agraria-transitia and fused-
prismatic societies.
Ecological Approach:

Administrative World Page 207

 PAPER 01

• Devised by Riggs
• This approach states that structures and their functions exist in an inter dependant manner.
• So if a study is to be undertaken of a particular structure and its function then its effects on
other systems and their functions of society are also to be analysed.
• Limitations is that this approach is highly complex and difficult to apply.

Historical and Sociological factors & Administration and politics in different countries
It is clearly evident that historical events have led to the invention of many administrative practises.
Though there are aplenty, however, some examples are cited below.
• English Administrative system: England does not possess a written constitution mainly
because it was a monarchy prevailing there and the people lived there through conventions
and traditions going on from time immemorial.
• Indian Administrative system: Reservations are made as Indian society is very diverse in
matters of social as well as economic status, etc. after a lot of historical events like B.R
Ambedkar and his policies as well as the British division of Hindu and Muslims and other
minorities in separate electorate system, etc.
• There are various social laws in India that are made from society like panchayats,etc.
• Tribal welfare is given special attention in India due to existence of tribal in the society.
• Many offices are remnants of British legacy like the office of the collector, police dept., civil
services, etc. Revenue administration here is a modern version inspired by historic Mughal
ones.
• USA Administrative system: Many historical and sociological factors have also shaped the
American system.
• A few of them cited are the Civil war that lead to providing African American slaves were given
the title of citizens and right to vote.
• Also the second civil rights movement that occurred under the aegis of Martin Luther King Jr.
leading to elimination of segregation and racial discrimination between black and white
Americans.
• France Administrative system: Arrangement of Droit Administration could be seen associated
with the approach and functioning of Napoleon Bonaparte who set the table for a centralised
administration as an efficient administration.
• The storming of Bastille incident which was fuelled by economic crisis lead to the overthrow of
monarchy there to republican system and led to the establishment of Declaration of the Rights
of Man and the Citizen that lead to the first step of France's constitution framing.

Administrative World Page 208

 PAPER 01

Administrative World Page 209

 PAPER 01

Administration and Politics in

2.
Different Countries

Administration and Politics in different Countries

USA:
• The USA has a federal republican form of government where President is the national as well as
executive head.
• There is a separate constitution as well as citizenship for every state and they are all bound
together in a federation, thus all working as a whole with their autonomy intact.
• The Constitution of US specifies the subjects listed for the national/federal and the ones
reserved for the States and also the residuary powers lie with the states only.
• There are three level of governments – national/federal, state and local.
• Separation of powers between the legislature, executive and judiciary is an important aspect.
• The Senate (Upper House) and House of Representatives(Lower house) comprise the
congress/legislature of the country.
• There is no specificity in the constitution regarding the administrative system but it does state
that the President can from time to time as and when necessary get advise from the principal
officers of the various departments regarding his duty as the chief executive of those
departments.
• The President however does not possess the authority to change/reorder his cabinet as that
power lies with the Congress.
• Civil services in USA are also done on merit through competitive exams and also at times there
are some political appointees too who are chosen by the president for their extraordinary
achievement in a particular field suitable to the job.
• Some departments are headed by individuals whereas some are headed by Boards and
Commissions

American Constitution and Government

• The American Constitution is the Constitution of United States of America which was formed in
1787 following the American Revolution (1775-83).
• The Constitution was adopted in 1787 at the Philadelphia Convention and came into force in
1789.

1. Written Constitution
 It is the oldest among the existing written constitutions of the world.
 It is contained in a document of some 12 pages and consists of a preamble, 7 Articles and
27 amendments.
 The American Constitution, as it exists today, is a product of 1787 constitutional document
and subsequent amendments, the congressional statues, executive orders, judicial
interpretations and the political conventions.
2. Rigid Constitution

Administrative World Page 210

 PAPER 01

 American Constitution is a rigid one.

 It can be amended by the congress in the same manner as the ordinary laws are made.
 Its rigid character is evident from the fact that it has been amended only 27 times since its
promulgation in 1789.
3. Federal Constitution
 USA is a federal republic comprising 50 states and the District of Columbia.
 The constitution provides for division of powers between the federal government and the
state government.
 It confers limited and specified powers on the centre and vests the residuary powers in the
states.
 Each state has its own constitution, elected legislature, governor and Supreme Court.
4. Presidential Government
 American Constitution provides for the presidential form of government.
 The American President is both, the head of state and the head of government.
 The President is elected by an electoral college for a fixed tenure of four years.
5. Separation of Powers
 The doctrine of separation of powers is the basis of the American constitutional system.
 The legislative, executive and judicial powers of the government are separated and vested
in the three independent organs of the government.
i. Article I says that all legislative powers herein granted shall be vested in the
Congress.
ii. Article II states that the executive powers shall be vested in the President.
iii. Article III provides that the judicial powers shall be vested in one Supreme Court
and in such inferior courts as the Congress may from time to time ordain and
establish.
6. Bill of Rights
 The American Constitution is the first constitution in the world to carry the Bill of Rights.
 It guarantees a large number of rights to the people.
 This Bill of Rights was added to the original Constitution in 1791 through the first ten
amendments.
7. Bicameralism
 The American Federal Legislature called the Congress is bicameral.
 It consist of two houses namely the Senate and the House of Representatives.
i. The Senate is the upper house while the House of Representatives is the lower
house.
ii. The Senate consists of 100 members, two being elected from each state to serve
for a fixed six-year term.
iii. The House of Representatives consists of 435 members elected from single
member constituencies to serve for a fixed two year term.
iv. The Senate is more powerful chamber of the Congress.
8.

UK:
• It is a constitutional and hereditary monarchy. In practise it is a Parliamentary democracy.

Administrative World Page 211

 PAPER 01

• The Monarch is the head and performs functions akin to the President of India.
• Legislature is supreme and is bicameral viz. House of Lords(upper house) and House of
Commons(lower house).
• Executive is headed by the political executive that is the Prime Minister and his cabinet that
consist of ministries staffed by civil servants under ministers.
• Boards and commissions are formed to operate and regulate various industries and
services. Judiciary is independent.
• The House of Lords is the highest court of appeal for civil cases and some criminal cases.
France:
• It is a mixture of Republican as well as Parliamentary form of govt.
• President is the Chief executive and enjoys tremendous powers in the legislature as well as
Parliament. Here the President is directly elected by the people.
• The Prime Minister is then chosen and appointed as per the President's wish from the
Parliament.
• The Prime Minister has to enjoy the confidence of both the President and the Parliament in
order to sustain his position.
• Executive is separated from legislature and thus the President is not able to influence the
executive much but still indirectly the PM has to go by him to enjoy his confidence because
most of the times, the parliament and the president are from the same party.
• Civil services are of two types External recruitment and internal recruitment where external
recruitment is done through open competitive exams for graduates under 27 years of age and
the internal recruitment is for people from the lower echelons of service having at least five
years of service and not more than 36 years old.
• They are then chosen and trained at the Ecole Nationale Administration for two years.

Japan: The Constitution of Japan rests on three principles - a) sovereignty of people , b) guarantee of
Fundamental Rights, c) renunciation of war.
• The Emperor performs the role akin to Indian president.
• The Japanese people elect their representatives to the Japanese Parliament called Diet which is
bicameral that is, House of Councillors and the House Of Representatives.
• Both Houses share equal powers but the house of representatives has superiority in matters of
finance.
• The prime minister is appointed by the prime minister from the Diet who heads the
executive and also the Emperor appoints the chief judge of the supreme court.
• Grants are to be passed by the Diet and then only it is given to the executive. Local govt
possess autonomy in its matters.
• People posses the right to choose their public officials as well as remove them.
• Civil services are of two types here - a) Special govt service - includes members of cabinet
approved by the Diet like positions of high officials in Imperial Court, Judges, Ambassadors and
Ministers, Diet employees, common labourers and employees of state corporations. b) Includes
personnel of National govt.,administrative as well as clerical except the Special govt. services
ones

Administrative World Page 212

 PAPER 01

Current Status of Comparative Public Administration

• After the decline of the comparative administration group (CAG) in the early 1970's, there was
a lull in this field due to many factors like theoretical and fact based study was only done and
so there was problem in the applicability of those models and USA was going through a bad
phase in the Vietnamese war and so funds had to be diverted, etc.
• However, it got a boost once again when scholars like Robert Dahl, James Cloeman, Rapheli,
Dwight Waldo etc propagated it and stated that without comparison there can never be a
science of administration.
• Also the behavioural school of thought was bringing in a lot of attention to the fact and value
theories of administrative man and so comparative public administration saw a resurgence.
• In the 80's and 90's studies in CPA resurfaced but with a new objective, philosophy and
orientation than its previous predecessors and counterparts.
• It started to study various arrangements like RTI, Rule of Law, good governance, etc. in
different countries.
• It has recently started focusing itself on the analysis of such operations of administrative
systems which affect functioning of various societies.
• The following could be seen as the recent trends in the studies of Comparative Public
Administration:
1. Studying the status of human rights in the nations of the problems associated with human
rights.
2. Studying the status of Rule of Law and analysing the barriers if any.
3. Studying the presence of Civil Society Institutions and their role and contribution in the
administrative arrangements of societies.
4. Studying the level of participation and involvement in the implementation of schemes related
to welfare of people.
5. Studying the presence of arrangements through which accountability of politicians and
administrators could be ensured towards the public through the mechanisms prescribed and
available like RTI, Citizens charters, Ombudsman, Social Audit, etc.

Administrative World Page 213

 PAPER 01

3. Fred W. Riggs

Fred W. Riggs
• Fred Warren Riggs (1917-2008) born in Kuling, China
• He went to US to study Journalism and political science.
• Received several honours and awards.
• Associated with several professional organisations.
• Published a number of books and papers.
• He lectured in every continent.
• Riggs’ creative scholarship in the field of comparative public administration brought him
worldwide recognition.
• Administrative theories and models mostly developed before the second world war, were
generally the offshoot of industrial revolution.
• The developing counties adopted western models but found unsuitable.
• Models were more suitable to  to maintain the existing system rather than for changing the
system.
• These models and theories also failed to help in understanding the administrative systems in
the developing countries.
• It is in this context that the need for developing new concepts arose.
• The result is the emergence of concept of comparative public administration.
• In the study of CPA, Riggs identified 3 broad trends
• Normative  empirical
• Ideographic  nomathetic
• Non-ecological  ecological.
• Riggs depended on the concept developed in other subjects to explain the ecology of public
administration.
• He used 3 important analytical tools to explain his administrative theories:-
• Ecological approach
• Structural-functional approach
• Ideal approach

Ecological Approach
• Administration and its environment influence each other and an understanding of the
dynamics of this process is necessary to understand administration  Ecological approach.
• Ecology of public administration, being the interaction of administration and its environment
requires a deeper understanding of the society and the various factors affecting its functioning.
• Initiated by Gaus, Robert A. Dhal and Robert A. Merton long before Riggs.
• “ecology of Public Administration” according to J.M. Gaus
Includes the study of “people, area or property, physical and social technology, wants of the people,
thought, individuality and emergency situations”

Administrative World Page 214

 PAPER 01

• Developing the concept further, Riggs analysed the relationship between the administration
and economic, social, technological, political and communication factors in a larger
perspective.

Structural Functional Approach

• Main Thinker :- Talcott Parsons, Robert Merton, Almond etc.
• This approach envisages that in very society certain important functions have to be carried
out by a number of structures with the application of certain methods.
• Structures may mean the administrative or other mechanism by which the functions are
discharged.
• Thus, this approach is a method of analysing the functions that are carried out in a society, the
structures are responsible to discharge the functions and the methods that are adopted in
undertaking the functions.
• According to Riggs, in every society 5 important types of functions are discharged:- social,
economic, communication, symbolic and political.

Fused-Prismatic-Diffracted Model
• Ecological Approach
• Structural-functional Approach
• Ideal models

Ideal Models
• Riggs developed ideal models to analyse the administrative systems of developing countries.
• Riggs first used agraria-industria model of society.
• To him, all societies transform form Agraria to Industria at a given point.
• Riggs developed an equilibrium model named “transitia” representing the transforming
societies in 1957.
• Agraria-Industria was criticised as having many limitations
• So, Riggs developed another set of models.
• Fused-Prismatic-Diffracted model is the result of this effort.
• Riggs created models on the basis of structural and functional approach.
• Fused Society:- a single structure carries out various functions.
• Diffracted society:- separate structures are created to carry out specific functions.
• Between these two, there exist prismatic societies.
• However, Riggs emphasises that no society can be exclusively called fused or diffracted, all
societies are generally prismatic in nature.
• In his entire analysis, he made use of the fused and diffracted models as tools to explain the
prismatic phenomenon of developing countries.

Fused
• -particularism
• -Ascriptive values
• -Functionally diffuse

Prismatic
• -selectivism
• -Attainment
• -Poly-functionalism

Administrative World Page 215

 PAPER 01

Diffracted
• -universalism
• -Achievement
• -Functional specificity

Fused Model
• Riggs selected Imperial China and the pre-revolutionary Siamese Thailand as examples to
represent his concept of fused society.
• These societies have no classification of functions and a single structures carries out a number
of functions.
• These societies heavily depend on agriculture with no industrialisation and modernisation.
• Their economic system was based on law of exchange and barter system, which Riggs calls as
Redistributive model.
• The Royal Family plays a very important role in the administration of the country.
• The family played a prominent role in the Siamese Kingdom.
• The family apart from providing base on the social structure also stands at the apex of the
administration.
• Administration in these societies strives to protect the special interests of the family.
• These societies do not differentiate between justice and injustice, formal and informal set-ups
and governmental and non-governmental activities.
• Ascriptive values play a predominant role in the society, and the behaviour of the people
would be highly traditional.
• Age-old customs, beliefs, faith and traditional ways of living enable the people enable the
people to live together and control their behaviour.

Diffracted Model
• These societies are based on universalistic principle with no differentiation in treatment.
• There is high degree of specialisation and each structure carries out a specialised functions.
• All organisations and structures in the society are created and based on scientific rationale.
• Their economic system is based on market mechanism.
• Highly developed Communication and technology.
• There would be a general consensus among the people on all basic aspects of social life.

Prismatic Model
• According to Riggs, the prismatic society is one, which has achieved a certain level of
differentiation; specialisation of roles that is necessary for dealing with modern technology,
but has failed to integrate these roles.
• Riggs identified 3 important characteristic in prismatic society:-
1. Heterogeneity
2. Formalism
3. Overlapping

Heterogeneity
• Heterogeneity :- “simultaneous presence, side by side, of quite different kinds of systems,
practices and viewpoints.”

Administrative World Page 216

 PAPER 01

• The existence of high degree of heterogeneity main characteristics of Prismatic society.

• Co-existence of contrasting systems pulling the society in different direction makes it difficult
to draw generalisations.

Formalism
• Formalism:- “incongruence between the formally prescribed and effectively practised norms
and realities” and the existence of discrepancy between the “stated Objective” and “real
performance”
• The fused and diffracted society  realism
• Prismatic society Formalism

Overlapping
• Overlapping:- “the extent to which formally differentiated structures of a diffracted society
coexist with undifferentiated structures of a fused type”.
• In a prismatic society, although ‘new/modern, social structures are created, in essence the
old/undifferentiated’ structures continue to dominate the system.
• Thus, in prismatic society behaviour is governed and influenced by traditional organisation.

Sala model
• Prismatic society is characterised by various economic, social, political and administration sub-
system.
• Riggs termed “administrative sub-system” as ‘Sala Model’
• Its counterpart in
• Diffracted society:- Bureau/office
• Fused office:- Chamber
• “Sala” is a Spanish word has variety of meaning – Government office/a room/ pavilion
• Sala has certain features of diffracted “bureau” and fused “chamber”
Prismatic Society:-
• Nepotism & favouritism play a very important role in the appointments in administration
Diffracted society:-
• Consideration of kinship are kept away from the administration
Fused Society
• Politico-administrative system has a patrimonial character.
• Dominant importance to family/kinship
• Poly communalism also creates certain administrative problems.
• Government officer have to implement the laws without favouritism
• But a govt. official would develop a greater sense of loyalty towards member of own
community.
• Such things would lead to compartmentalisation and mutual hostility among various
community.
• Family, community and caste play a decisive role in society & there is simultaneous growth of
new groups.
• Riggs called them as “clects”.
• Clects represent exclusively the people of a particular community or group & govt. official
belonging to that category serve only the member of their respective clects.
• In a prismatic society, the traditional behaviour pattern co-exists with new sets of norms.

Administrative World Page 217

 PAPER 01

• Riggs termed the prismatic society as ‘unbalanced polity’ in which bureaucrats dominate the
politico-administrative system despite the political leader’s constitutional powers.
• There would be lack of response to people as power is concentrated in bureaucracy.
• In such a situation, strengthening of public administration in developing countries is likely to
impede political development.
• The strengths and weaknesses of any political leader in power varies with his ability to
reward and punish the administrators.
• Talented sala official tends to spend most of his time for promotion of self-interest.
• Riggs says, there is a close link between bureaucratic behaviour and administrative output;
the most powerful a bureaucrat is; the less effective he is an administrator.
• As a result, the sala is characterised by nepotism in recruitment, institutionalised corruption
and inefficiency in the administration of laws and by the motives of gaining power for
protecting its own interest.

Bazar-Canteen Model
• Riggs termed the economic sub-system of a prismatic society –”Bazar-Canteen”.
• Diffracted Society
– Market factor of supply & demand govern the market
• Fused society
– Arena factors – religious, social or family consideration
• Prismatic society
– Both market factors & Arena factors
• Other features of Bazar-Canteen Model
– Foreign domination on the economic system
– A small section of people enjoying all benefits with control over economic institution
– Price indeterminacy
• In a diffracted society everyone gets the services on equal basis without discrimination and
favouritism.
• In prismatic society, the price for the service is determined by the nature of relationship
between the public servants and their clientele.
• Thus, the economic structures in a prismatic society behave like a ‘subsidised’ canteen to the
members of the privileged groups.
• The state of price-indeterminacy in a prismatic society further deteriorates the economic
conditions, encourages black-marketing, adulteration etc. and ultimately leads to high level
of Inflation.
• In such situation, Sala official would try to develop contact with foreign businessman and
misuse foreign exchange for private purpose.
• This would lead to exploitation, poverty and social injustice in a prismatic society
• Wage relations in a prismatic society also depends on family relation.
• Low wage earner would be inclined to increase their income through illegitimate means
• Thus, the economic sub-system in a prismatic society ultimately influences the public officials
and is influenced by its governing factors.

Change in Prismatic Society

• The pace of development in any society depends on the availability of favourable conditions
for change in the system.

Administrative World Page 218

 PAPER 01

• The western societies witnessed relatively longer time-span for their development and were
able to adjust their behaviour gradually to the desired patterns.
• Generally, in a prismatic society, the pressure for change comes from both – internal & external
source.

Concept of Development
• Riggs defined development as a “a process of increasing autonomy(discretion) of social
systems, made possible by rising level of diffraction.”
– Discretion is the “ability to choose among alternatives”.
– Diffraction refers to the degree of differentiation and integration in a social system.
• Riggs considered differentiation & integration as the two key elements in the process of
development.
– Differentiation means existence of a situation in which every function has a
corresponding specialised structure for its performance.
– Integration means mechanism to tie together, to link up, to mesh and to coordinate
the various kinds of specialised roles.
• The levels of differentiation and integration represent diffracted and prismatic conditions of
development.
• The level of differentiation in any country depends on the technological and non-
technological factors.
• The integration depends on – penetration & participation.
– Penetration is the ability of a government to make and carry out decisions throughout
the country.
– Participation is the receptivity to law and the willingness to help carry out the laws and
the policies which the government has formulated.
– Participation has 2 important factors – willingness and ability of the people to
participate.

Critique of Fred Riggs

• There cannot be any study of CPA and development administration without reference to Riggs.
• But like many other theorists, Riggs was subjected to severe criticism.
Sisson
• To understand the writings of Riggs one has to read them three times.
Chapman
• Riggs should have prepared his own dictionary to explain his terminology.
Hahn-been Lee
(Lack of change orientation)
• He doubts the utility of the prismatic and sala models, in view of the administration’s focus on
social change.
• He considers Riggs’s models as equilibrium models.
• He concludes that the models of Riggs are not very useful when the objective of administration
is to change the system, rather than its maintenance.
• Difficulties in using the language
• Riggs liberally coined new words to explain his concept.
• He also gave different meanings to a number of words already in use.

Administrative World Page 219

 PAPER 01

• But free use of new words and using them with different meanings may create confusion
instead of clarifying the concept

Daya Krishan
Absence of quantitative indicators
• In applying Riggs's model to particular societies, the problem of measurement arises. In the
absence of a measuring scale, the identification of prismatic or diffracted societies becomes
very difficult.
• The reader, following Riggs's analysis, may tend to associate prismatic conditions with every
situation he knows.
• When the fused and diffracted societies are imaginary, all the societies are to be classified as
prismatic at various levels of low, middle and high.
• But when scales to measure the levels of 'prismatism are lacking, such a classification will have
no relevance. The fact is that Riggs's models are mostly based on certain assumptions. But in
the absence of any empirical evidence the validity of such assumptions is questionable.
Negative Orientation of Concepts
• Riggs did not give as much importance to the positive character of s prismatic society as to its
negative character
• He projected formalism as a negative aspect and highlighted its bad effects only
• To counter-balance the Riggsian concept of negative formalism, Valson has presented-a new
concept of positive formalism.
Ethnocentricism:
• The categorisation of the societies into fused, prismatic and diffracted ones a based on the
values inherent in a capitalist system.
• The characteristics of the diffracted model are entirely those of a capitalist system.
• Riggs's analysis clearly establishes the superiority of the diffracted model over the other
models. To that extent, this approach suffers from ethnocentricism:

Conclusion

• Riggs approach and models help us in understanding the administrative process in developing
countries.
• Although his administrative models are difficult to find in practice, they help us in
understanding the realities.
• As Chapman has correctly observed that in spite of many limitation, Riggs models may deepen
our insights into some of the underlying problems of public administration in transitional
societies.

Administrative World Page 220

 PAPER 01

Administrative World Page 221

 PAPER 01

Administrative World Page 222

 PAPER 01

1.

Administrative World Page 223

 PAPER 01

Concept of Development
1.
Administration
Development Administration is evolved as a branch of public administration and primarily concerned
with government and administration of developing countries of Asia, Africa and Latin America which
emerged after Second World War. It focuses to develop the activity of government to bring a change,
especially in achieving the progressive objectives in the social, economic and political field.

The basic objective of Development Administration is to understand the administrative problem related
to development, which in turn creates various impediments in the way of development. These
impediments includes poverty, illiteracy, population increase, resource crunch, environmental
protection, food production, energy crisis, deterioration of human environment, absence of national
unity, decrease in per capita income, etc. these and more impediments collectively, when accumulated,
put pressure and impact on the capacity and skill of administration and by which they become less
effective. That is why development administration has become important and compulsory elements for
the whole nation, so that they can act for social, economic, and political development of nation as such.

Development Administration
• Development is the most important concept defining the character of the 3rd world.
• The term development administration originated with the emergence of the newly independent
countries that had come out of colonial rule after the 2nd world war.
• The term first coined by U.L.Goswami in 1955. He used this term in his article entitled ‘The
Structure of Development Administration in India’, published in 1955.
• However, it is George Gant, an American Scholar, who is regarded as the father of development
administration. He too started using the term during the same period. His book ‘Development
Administration: Concepts, Goals and Methods’ was first published in 1979.
• But formal recognition and elaboration of the concept done by American Scholars.
• Scholars:- Fred W. Riggs, Edward W. Weidner, Joseph La Palombara, Albert Waterson, John D.
Montogomery, Ferrel Heady, Milton J. Esman, Lucian Pye, Alfred Diamant, William J. Staffin, Han
been Lee, and others.
 Edward W. Weidner is the foremost proponent of development administration. He is
also the first to conceptually explain the definition of development administration.
According to Ferrel Heady, “George Gant himself is generally credited with having coined the term
‘development administration’ in the mid-1950s.”
Prabhat Datta, on the other hand, observes: “Thought the term ‘development administration’ is
claimed to have been coined by the Indian scholar, Goswami, development administration is essentially
a western concept. The term was first used by Donald C. Stone.”

• Development administration emerged as an independent discipline to deal with the central issue of
transforming the socio-economic conditions of newly independent nations.

Administrative World Page 224

 PAPER 01

Emergence
Development Administration emerged as a sub-field of public administration in 1950s and 1960s. The
factors which have contributed to this are –
• Over-emphasis on the study of ‘means’ of administration and under-emphasis on the study of
‘goals’ of administration by the traditional public administration.
• Emergence of newly independent developing countries in Asia, Africa, and Latin America due to
the liquidation of colonialism and imperialism.
• U.N. sponsored development schemes in the developing countries through multilateral
technical aid and financial assistance.
• Extension of American economic and technical assistance plans to newly emerged developing
countries.
• Setting-up of the Comparative Administration Group (CAG) in 1960s under the aegis of
American Society for Public Administration.
• Search for a new indigenous administrative model to meet the developmental needs of the
developing countries, due to the failure of western model in these countries.

Definitions
Weidner: “The process of guiding an organisation towards the achievement of progressive
political, economic and social objectives those are authoritatively determined in one manner or the
other.”

George Gant: “Development Administration is that aspect of public administration in which the
focus of attention is on organising and administering public agencies in such a way as to stimulate
and facilitate defined programmes of social and economic progress. It has the purpose of making
change attractive and possible.”

Irving Swerdlow: “Development administration is administration in poor countries”. He identified

two inter-related tasks in development administration – institution building and planning.

Martin Landau: “Development administration is the engineering of social change.”

Fred W. Riggs: development administration covers the area from “administration of development
programmes to the methods used by large-scale organisations, notably governments to
implements policies and plans designed to meet their development objective.

Michael Todaro sees development as a ‘multi-dimensional process involving the reorganisation

and reorientation of the entire economic and social system.’

Donald Stone: “Broadly, Development Administration is concerned with achieving national

development.”

Merle Fainsod: “Development administration is a carrier of innovating values. It embraces the

array of new functions assumed by developing countries embarking on the path of modernisation
and industrialisation.”

Prof. S. R. Maheswari: ‘The administration of developmental programmes designed to promote

nation-building and socio-economic development and the concomitant development of
administrative practices and institutions necessary for the implementation of such programmes.’

Administrative World Page 225

 PAPER 01

To sum up, development administration is concerned with:-

1. The formulation and implementation of plans, policies, programmes and projects for national
development
2. Development of administrative machinery and process adequately suited to the task of
national government
It is “an action-oriented and goal oriented administrative system”.

Characteristics of Development Administration

• Change-orientation, i.e., bringing about socio-economic change rather than maintenance of
status-quo.
• Goal-orientation, i.e., achieving progress in social, economic, political and cultural goals (result-
orientation).
• Commitment, i.e., high morale and motivation in work situation to achieve the development
goals.
• Client orientation, i.e., meeting the needs of the specific target groups like small farmers,
children and so on.
• Temporal dimension, i.e., completing development programmes within a time limits (time-
orientation).
• Citizen-participative orientation, i.e., enlisting popular support and involvement in the
formulation and implementation of development programmes.
• Innovativeness, i.e., replacing or improving the administrative structures, methods and
procedures for the effective realisation of developmental goals.
• Ecological perspective, i.e., interaction between developmental bureaucracy and its social,
economic and political environment.
• Effective coordination, i.e., achieving coordination between the multiple specialised units and
programmes involved in the developmental tasks (high degree of integration).
• Responsiveness, i.e., responding to popular needs and demands.

According to Pai Panandikar: ‘Development Administration is mainly the administration of

planned change. The essence of development is holistic change undertaken through integrated
organised and properly directed action.’

Development Administration and Traditional Administration (Development

and Non-Development Dichotomy)
• Traditional administration concerned with “law & order” administration
• Distinctive character of development administration have been identified by George Gant in
terms of
– Its purpose :- change & innovation
– Its loyalties:- accountability to people
– Its attitude:- positive and innovation
– The law and order orientation of general/bureaucratic administration has its own utility
for the maintenance of the total system of administration.
• Even development administration will be nullity if there would be an absence of law and order
in a country.

Administrative World Page 226

 PAPER 01

Development Administration Traditional Administration

It is change-oriented It is status quo –oriented
It is dynamic and flexible It is hierarchical and rigid.
It emphasises on effectiveness in goal- It emphasise on economy and efficiency.
achievement.
Its objectives are complex and multiple It objectives are simple.
It is concerned with new tasks. It is concerned with routine operations.
It believes in decentralisation. It believes in centralisation.
It relies heavily on planning. It does not rely as much on planning.
It is creative and innovative. It resists organisational change.
It practices democratic and participative It practices authoritative and directive style
style of administration. of administration.
Its scope of operations is very wide. Its scope of operations is limited.
It has temporal dimension. It has no time-orientation.
It is outward looking. It is inward looking.

However, it needs to be emphasised here that both development administration and traditional
administration are complementary to each other. One cannot sustain in the absence of another. Hence,
the distinction between the two is unrealistic, untenable and over-simplistic. Moreover, as rightly
observed by Ramesh K. Arora that the “impression that development administration is concerned
solely with administration of developing countries can only reduce the utility of the concept of
development administration in its application to the comparative analysis of ‘developed’ and
‘developing’ countries.”

Nature of Development Administration

• The multifunctional nature of “development administration” was ably described by J.N.
Khosla
1) Formulation of development goals and policies
2) Programme formulation and programme management
3) Reorganisation of administrative structures and procedures
4) Evaluation of results
5) People’s participation in development efforts
6) Promotion/growth of social and political infrastructure

Joseph LaPalombara
• He discussed development with respect to administrative capabilities in a specific country instead
of defining it which are hampered by stereotypical imagery and assumptions.
• These assumptions refer to the export of idealized version of western administrative organization
and behaviour.
• It must be understood that the developing societies also vary from one country to another.

Administrative World Page 227

 PAPER 01

T. N. Chaturvedi
• He considered development administration as a concept, a part in the developing countries of the
broader discipline of public administration.
• Development may be considered as planned mobilization and direction of scarce resources to
achieve constantly rising national goals and objectives formulated by political machinery.
• It is an aspect of change that is durable, broadly predicted or planned and administered or at least
development administration highlighted the obstacles in the traditional public administration like
red tapism, corruption and power concentration with the union governments.
• An urgent need for decentralization was felt to dissipate the mega issue of centralized power.
• In India, Panchayati Raj institutions were empowered through the 73rd and 74th constitutional
amendments.
• Civil society organizations were given more importance since 1980s to implement decisions
through the approach of right sensitization.
• Citizen centric administration gained importance and tools like RTI Act 2005 and citizens charter
have given a new push to development administration influenced by government action.

Edward W. Weidner
Edward Weidner criticised the traditional administrative theory for its overemphasis on the ‘means’ of
administering in the best possible manner, and under emphasis on the study of ‘goals’ (ends). In this
context, he commented, “public administration has glorified the means and forgotten the ends. Good
administration and good human relations have become ends in themselves, quite apart from the
achievement of other values that they may or may not facilitate.”

• It was to fill such a critical gap in the traditional administrative theory that he introduced the
concept of development administration.

He defined development administration as “an action-oriented, goal-oriented administrative

system.”

• Development is never complete; it is relative, more or less of it being possible.

• Development is a state of mind, a tendency, a direction.
• Rather than a fixed goal, it is a rate of change in a particular direction.
• Weidner implied a progression in the attitudes and purpose in the government as well as the
citizens towards directed goal achievement.
To sum up, development administration is the will to develop, the mobilization of existing and new
resources and the cultivation of appropriate skills to achieve the development goals. It understands the
obstacles being faced by the administration to implement projects based on broader policies and
makes efforts to remove them to increase efficiency and achieve goals.

Writings of Weidner include

1. Development Administration: A New Focus for Research’
2. ‘Theory of Development Administration’
3. The Elements of Development Administration’
4. Development Administration in Asia

Administrative World Page 228

 PAPER 01

Fred W. Riggs
• F.W. Riggs made a significant contribution to the field of development administration.
• He identified two sides of development administration, viz. administration of development and
development of administration (administrative development).
 Development administration is “the administration of development programmes, to the
methods used by large-scale organisation, notable government, to implement policies and
plans designed to meet their developmental objectives.”
 Administrative development is “the strengthening of administrative capabilities.”
• He observed that, “development administration refers not only to a government’s efforts to carry
out programmes designed to reshape its physical, human and cultural environment, but also to the
struggle to enlarge a government’s capacity to engage in such progress.”
Books of Fred W. Riggs

1. Frontiers of Development Administration

2. The Idea of Development Administration
3. Administration in Developing Countries

Concept, Theory & Approach

• Concept of development contains the answer to what development is. Obviously, this cannot
be value free. It will always reflect notions of what ought to be understood by development.
• These notions can be formulated as development objectives either in terms of particular
conditions which must be achieved or in terms of a certain direction of change.

Strategy of Development
• It is an abstract notion referring essentially to the actions and intervention that can be
appropriately used to promote strictly defined development objective.
• These are value loaded.

Theories of development
• It seeks to answer questions like
– How can the selective and specified developmental objective be promoted
– What conditions will possible obstruct, delay progress
– What actors play dominant roles
• These are not value-neutral questions

Theories
1. Modernization Theory
2. Dependency Theory
3. World System Theory
4. Market Orientation Theory

Administrative World Page 229

 PAPER 01

Modernisation Theory
• It is the first attempt to articulate the problem of development.
• Development is conceived as an evolutionary process
• The countries that are found at the low stage of development are advised to follow the
development pattern of developed nations.
• Modernisation theorist outlined the western model of development as indispensable
solutions to the development problematic of the 3rd world countries.
• They focused on economic growth accompanied by political stability, not on social
transformation itself.
• They suggested that the developing countries should blindly follow the example of western
developed nations.
• The role of traditions was dysfunctional to development and hence this has to be dispensed
with.

Criticism of Modernisation Theory

• Critics pointed out that the early modernisation theorists viewed ‘traditions’ as an obstacle to
development.
• They neglected external factors and conflict as source of change.
• In the 1980s modernity theorist like Winston Davis and Samuel Huntington treated traditions
as an additive factors of development.
• They suggest multidirectional paths of development.

Dependency Theory
• First to challenge the main thesis of modernisation.
• This theory had its origin in Latin America in early 1950s.
• Economic aspect of ‘underdevelopment’ was given greater focus by the dependency theories.
• They stressed that underdevelopment is the historical outcome of the functioning of the
capitalist system.
• The basic theoretical thrust was thus “capitalist penetration” leads to and reproduces
combined and unequal development of its constitutive parts
• Classical dependency theorist -- Andre Gunder Frank, Samir Amin
• The flow of economic surplus to European and North American developed countries kept 3rd
world underdeveloped.
• In the historical process, the colonialist have made the 3rd world ‘dependent’ on the colonial
powers.
• New dependency theorists viewed the nature of dependency in socio-political terms.
• They focused on historical-structural aspects of dependency, emphasising internal aspects,
class conflict and the role of the state.

World-System Theory
• The development of nation states is dependent upon the expansion or the spread of their
market control.
• In their view, the origin of ‘underdevelopment’ is based upon the inclusion of 3rd world
countries within an unfair world capitalist system.
• Recommendation has been that a socialist world government was the solution to the
development trajectories of 3rd world countries.

Administrative World Page 230

 PAPER 01

Market Orientation Theory

• During 1980s & 1990s most of the developed countries suffered from fiscal imbalance which
they attributed to overspending on welfare items.
• The focus now was to get away from ‘welfarism’ and reduce the role of the state.
• According to this model, development means success in the marketplace, with little or no
attention paid to the distributive effects of aggregate economic gains either between or
within countries.

Approaches
The various approaches to development and development administration can be grouped into two
categories –

1. Early approaches – during the 1950s and 1960s, the development theorists explained
development in the third world countries in terms of the western model. They believed that
the third world countries had to develop in a western way. They emphasised Gross National
Product (GNP) as a measure of a nation’s progress in development. These approaches were
elitist and ethnocentric.
a. Economic Approaches
 These approaches suggested that third world countries should save more and
invest it as capital.
 They emphasises economic growth through industrialisation.
 This strategy of development was based on the writings of Adam Smith, J.S.
Mill, Karl Marx, Keynes, Rostow and others.
b. Diffusion Approach
 This approach propounded by Everett Rogers and R.S. Edari explained
development in terms of diffusion, i.e., a process by which a third world
country adopts capital, technology, and social structure from western
industrialised countries.
c. Psychological Approach
 These approaches advocated by David McClelland, Everett Hagen, Kunkel,
Inkeles, and Smith explained development in terms of the presence of some
individual personality traits like achievement-motivation, change-orientation,
less authoritarian and so on.
d. Dependency Theory
 Andre Gunder Frank, the major exponent of this theory, argues that persistent
poverty of the third world counties is a reflection of their dependency on the
western industrialised countries due to colonialism and neo-colonialism.
2. Contemporary approaches – since 1970s and 1980s, the development theorists have been
focusing on context-based (and not universal) approaches to development. Consequently,
there is no single comprehensive theory of development.

Arvind Singhal identified two trends in the contemporary development administration theory –

• From Blue Print to Learning Process – the blue print approach is rigid and closed-ended while
the learning process approach is flexible and open-ended. Arvind Singhal observed, “The Blue-
Print approach emphasises advanced planning ‘for’ the people. The learning-process approach

Administrative World Page 231

 PAPER 01

emphasise planning ‘with’ the people and doing so during the process of administering a
development programme.”
• From Production-Centred to People-Centred – the production-centered approach involves
production of goods and services to maximise returns on investment. It concentrates on
industrial growth and urban development. The people-centered approach (also known as
participatory approach) emphasises on the needs of the people, empowerment of people,
development of responsive administration, greater socio-economic equality, people-
participation, human growth and well-being and sustainability.

Other Approaches
Basic needs approach:-
• Originated during 1970s.
• Under this, development emphasis is shifted from a singular concern with restructuring of the
world economy to that of restructuring of domestic economy.
• It focused on new internal economic order, primarily aimed at the eradication of mass poverty
and social injustice.
Alternative modes of production perspective
• Originated in 1980s
Under this, contemporary 3rd world societies are seen essentially characterised by the coexistence
of sharply contrasting sectors.
• Sustainable livelihood approach
• Institutionalist approach
• Feminist approach
• Capability approach

Administrative World Page 232

 PAPER 01

Sustainable Development
The notion of sustainable development gained popularity in the 1980s following the importance put on
it by the World Commission on Environment and Development (known as Brundtland Commission
framed by the United Nations in 1983).

Brundtland Commission – “Sustainable development is the development that meets the needs of the
present generation without compromising the ability of the future generations to meet their own
needs.” In short, it is about being environment sensitive and plan our development which is
environment friendly.

Sustainable Development Goals (SDGs)

In the year 2015, leaders from 193 countries of the world came together to face the future. They
created a plan called the Sustainable Development Goals (SDGs). This set of 17 goals and 169 targets
imagines a future just 15 years off that would be rid of poverty and hunger and sade from the worst
effect of climate change. SDGs were result of Paris Climate Agreement. SDGs replaced Millennium
Development Goals (MDGs).

Ethno Development
The concept of ‘Ethno-development’ evolving out of a pragmatic study of development topics and
glitches states that development of a country cannot be separated from the socio-cultural veracities
and philosophy of its society. Ethno-development highlights a native mode of development, well
matched with the socio-cultural spirit of a society.

Administrative World Page 233

 PAPER 01

Administrative Development
Development Administration has to be efficient and effective. For that purpose it has to aim at
enlargement of administrative capabilities and structural and behavioural change. It is this aspect of
administration that is called administrative development or development of administration.

In simple terms, it means development of administrative system, of administrative health by

introducing administrative rationalisation and institution building.

The purpose implicit in this concept is not merely changing the administrative procedures and channels
but also bringing out fundamental change in administration that leads to –

• Political Development
• Economic growth
• Social change

The administration should evolve so as to commensurate with societal goals.

• Development of administration further means cultural change in administration.

• The colonial administrative culture is unsuitable to the changed socio-political ethos of the
developing world.
• Our British legacy has adversely affected the administration. The obsolete Acts e.g. Police Act,
1861, cannot take us towards the path of change.

Development of administration should refer to the creation of ability to adjust to new stimuli or
changes. The development of administration aims at qualitative and quantitative transformation in
administration with an eye on the performance of management of affairs.

The term also implies technological changes in administration so as the enable it to adopt new modes
or techniques of administration. Thus, administrative development focuses on adaptability, autonomy
and coherence in administration.

In short, administrative development is concerned with –

1. The capacity of an administrative system to take decisions in order to meet the ever increasing
demands coming from the environment and with the objective of achieving larger political and
socio-economic goals.
2. Increase in size, in specialisation and division of tasks and in the professionalization of its
personnel.
3. A pattern of increasing effectiveness in the optimum utilisation of available means and further
augmentation of the means, if necessary.
4. Increase in administrative capability and capacity.
5. Transformation of existing administrative mechanism into new machinery through modernising
the bureaucracy by external inducement, transfer of technology and training.
6. Replacement of initiative, practices etc. with those based on realistic needs.
7. Reducing the dependence on foreign experts by producing adequate trained manpower.
8. Promotion of development initiative.
9. Administrative reorganisation and rationalisation.
10. Making modernisation culturally related.
11. Removing or reducing bureaucratic immobility and widespread corruption.

Administrative World Page 234

 PAPER 01

12. Reorientation of established agencies, and the delegation of administrative powers to them.
13. Creation of administrators who can provide leadership in stimulating and supporting
programmes of social and economic improvement.

The meaning and importance of administrative development as an ingredient of development

administration has been well summed up by Caiden in the following words, “Administrative reform is
an essential ingredient of development in any country, irrespective of the speed and direction of
change. Administrative capacity becomes increasingly important in the implementation of new polices,
plans and ideas. The improvements in administrative capacity may involve the removal of
environmental obstacles, structural alternatives in traditional and innovatory institutions
bureaucratically organised or others. This would also necessitate changing individual and group
attitudes and performance.”

• The behaviour pattern of bureaucrats is as crucial to development administration as the

institutions and structures.
• The purpose of development of administration is to remove the administrative lag which seriously
handicaps governments in planning and executing co-ordinating programmes of economic and
social reforms.
• The predominant concern of development administration is to design and administer such
development programmes which meet the developmental objectives.
• It is the administration geared to the task of achieving certain clear-cut and specified objectives and
goals expressed in operational terms.

Thus, development administration is defined as a process of action motivated by and oriented to the
achievement of certain pre-determined goals.

Actually, administration of development and development of administration are inter-related concepts.

Both are dependent on each other. Administration of development is as important as development of
administration.

• To achieve development goals, it is essential that there is proper assessment of resources, proper
plan formulation, evaluation and implementation, adequate involvement of peole, emphasis on
technological change and self-reliance.
• At the same time we also need developed bureaucracy, integrity in administration, initiative,
innovativeness, delegation of powers, decentralised decision-making etc.
• Administrative development cannot take place without administrative change and reform. Both the
concepts support each other and development of administration is needed for administration of
development.

As per Fred Riggs, ‘Development Administration’ and ‘Administrative Development’ have a chicken
and egg kind of relationship. Superiority of one concept over the other cannot be established.

Administrative World Page 235

 PAPER 01

Changing Profile of Development

2.
Administration

Changing Profile of Development Administration

• Born in cold war era, development administration was mainly US-Sponsored.
• Beginning of development administration  creation of new nations & Speedy socio-economic
reconstruction.
• Colonial system was found unsuitable for the accomplishment of the global task of nation
building.
• Development administration stood for definite and planned institutional capacity to accomplish
the specific goals of development through formulation of appropriate policies, programme and
projects and their successful implementation.
• Participative, responsible and accountable management constituted the essence of
development administration.

Characteristics
• Change orientation that is, bringing about socio-economic change rather than maintenance of
status quo.
• Goal orientation that is achieving progress in social, economic, political and cultural goals.
• Commitment towards high morale and motivation in work to achieve the development goals.
• Citizen-participative orientation, in enlisting popular support and involvement in the
formulation and implementation of development programmes.
• Replacing or improving the administrative structures, methods ad procedures for the effective
realisation of development goals.
• Achieving effective coordination between the multiple specialised units and programmes.
• Responding to the popular needs and demands
• Meeting the needs of the specific target groups like women, children, tribal and small farmers
etc.
• 1950-1970s -- State-Led Development
• 1980s -- Disillusion with the state
• 1990s -- Re-thinking in managing development

1950s-1970s
(State-Led Development)
• Aim:- transforming lives of those living in the newly independent developing countries and to
attain the living standards of the Western Countries.
• Focus on upgraded administrative system.
• Modernisation which was sought to be achieved was externally induced.
• Improving the administrative capacity was found to be central to economic growth.

Administrative World Page 236

 PAPER 01

• The bureaucratic institutions developed more than the political institutions and soon it was
found that in many countries a new “Bureaucratic Elite” had developed which was more
powerful than even the political class.
• As bureaucracy had centralised all powers, it started acting as an interest group which
advanced only its interest.
• 1973:- CAG was disbanded.
• The CAG conceptualisation of development administration was criticised on several grounds.
• In place of systemic changes, turmoil proliferated throughout Asia, Middle East, Latin America
and Africa.
• The recession of the late 1970s and early 1980s led to the demise of western developmental
strategies.

1980s
(Disillusion with the state)
• Scholars such as Gerald Caiden & Milton Esman, social scientist, policy advisors and
international institution such as world bank etc. continued to enrich the field of development
administration.
• They maintained continuity in the field.
• The 1980s was a radical turn in the concept of development administration where scholars
wanted administration to be flexible and people should be included in the process.
• The state was considered as failure in carrying out development administration.
• Debt was increasing on developing countries. Earlier strategies made them economically
dependent on the west.
• Emphasis was given on reducing the size of the public sector in developing countries.

1990s
(Re-thinking in managing development)
• Before 1990s, developing countries were faced with the debt crises and the purchasing power
of the governments eroded substantially.
• This precipitated crisis in early 1990s.
• Towards 1990s the very influential “New Right Philosophy” sprung up which was neo-liberal
and also the Public Choice Theory emerged that brought a new paradigm to the concept of
development administration.
• This led to the good governance concept.
• Neoliberal model of development was advocated which accords minimal role to government.
• The major role of government was to ensure macroeconomic stability.
– Reduction of govt. institution and structures
– Decentralisation
– Multiplicity of institutions
World Development Report 1997 suggests a two way approach
– The state should assume that much role only which it can accomplish effectively.
– The public institutions should be strengthened to raise the capability of administration

Agenda for 21ST Century

• The area of development administration is highly dynamic and ever changing field.
• In 21st century the problems faced by the citizenry are multifaceted

Administrative World Page 237

 PAPER 01

• The agenda of development administration in the times to come is quite challenging

• The challenge before political leaders and the administrators is to achieve sustainable
development and at the same time providing basic human needs with limited resources.
• The development administration in the 21st century has to be such that it enhances the
capabilities of the individuals to attains their full potential and to develop their human faculty.
• Nowadays, the discourse theory of development administration is doing the rounds that
asserts that development administration should have two major criteria:-
• Human need based approach
• Sustainable approach
• They examined five strategies
• Liberal capitalism, communist, liberation theology, Islamic fundamentalism, sarvodaya
• It was found that Sarvodaya was the only model that contained both criteria and if
implemented properly will lead to optimum result in development administration.

Administrative World Page 238

 PAPER 01

3. Anti-Development Thesis

Anti-Development Thesis
• The western countries started the path of ‘development’ in developing countries assuming and
claiming that there was under development in these countries.
• This model of development was more capital intensive and technology centred.
• This approach was countered by anti-developmental theorists.
• It is not against development but only against the western theory of development in
developing countries
• It was precursor to the Good Governance policy.
• Anti-development supporters argue that it is not the matter of identifying most efficient way of
delivering development but they questioned the very concept of development.
• They opined that the real aim of western development is linked to modernisation which is
basically a way of increasing dependency of developing countries on western countries.
• Development processes undermine and destroy the diversity of social, cultural, economic and
political systems.
• This diversity is replaced by externally imposed model of development.
• They out rightly reject the western model of development administration.
• They say there is no fixed approach to develop a country.
• It advocates for a strong involvement of civil society and community based organisation.
• It is proposed by the scholars that when the development projects are planned and framed
then the local situation of the countries should be given prime importance.

Bureaucracy & Development

Development Administration is concerned not only with the administration of development but also
with the development of administration. The development of administration means development of
administrative machinery and processes suited to the task of national development. Therefore, the role
of bureaucracy as an agent of socio-economic change becomes important in the development process.

The term “Bureaucracy” refers to a multifarious, specialised organisation which consists of non-
elected, highly-skilled professional administrators an clerks employed on a full-time basis to
implement administrative services and tasks efficiently.

• Since development had been conceived as planned, state sponsored and state-directed, the
role of bureaucracy assumed critical significance.
• Development both as process and end-result had been considered to be dependent on a
country’s administrative capacity.

Administrative World Page 239

 PAPER 01

• The role of bureaucracy was acknowledged as crucial, but the advocacy was to modify
Weberian Bureaucracy and substitute it by development bureaucracy.
• The entire development administration movement revolved around the crucial role of
bureaucracy in bringing about speedy socio-economic change.
Some scholars like Robert K. Merton, Alvin Gouldner, Robert V. Presthus, Warren Bennis have
questioned the role of bureaucracy in the developmental administration.

According to Prof. Merle Fainsod, “Improvement in the effectiveness of development

administration depends on the quality and training of public servants who man it and on a social
and political environment which liberates their energies.”

Warren Bennis goes to the extent of saying that bureaucracy is likely to go out of use in the wake of
new social system.
• S.N. Eisenstadt writes about the tendency of bureaucracy in the new states “not only to
monopolise some central political functions but also to become a major interest group”.
• Lucian Pye feared that over-developed bureaucracy might lead to “a greater imbalance
between the administrative and the political”.
• Fred Riggs traced the root of administrative malfunctioning in the developing countries to the
absence or weakness of extra-bureaucratic institutions in those countries.
• Thus to correct the imbalance of development bureaucracy a power model of political
development has been suggested. This model focus on the role of political elite, development
of autonomous political institutions and effective popular participation in authoritative
decision-making. Viable political institutions and strong political elite are necessary to restrain
the tendency of the bureaucracy to gain autonomous power.
• Study of Lee Sigelman points out that highly developed bureaucracies, measures in terms of
administrative efficiency do not dominate less developed polities.
• There is strong correlation between low or weak-performing bureaucracy and bureaucratic
dominance.
• It is inefficient bureaucracy that poses a threat to political development.
• This study suggests that an efficiency-oriented bureaucracy does not compete with political
institutions
• In the context of developing countries bureaucracy and development are complementary and
inter-dependent.
The point to emphasize is that after the end of colonial rule, the emerging free states – called the third
world countries, started the process of socio-economic development which led to phenomenal
expansion of bureaucracy and the rise of new class, a bureaucratic bourgeoisie in many of these
countries.
 This class soon acquired social and political paramounty on account of various political and
social factors.
 This new class was west-oriented and trained in western methods of administration.
 With the aid of western countries in the form of training abroad and financial assistance for
development projects, this new class of administrators was able to establish bureaucratic
authoritarianism and hierarchical formalism which substituted for mass mobilisation and
popular participation – the two essential ingredients of developmental administration.

Riggs says that the speed of change in different functional sectors of developing countries is not
uniform. “Development in public administration takes place more rapidly than in political institutions

Administrative World Page 240

 PAPER 01

like the political, executive, legislative, electoral processes, etc. this makes bureaucracy more dominant
in the developing societies and its exercised disproportionate influence resulting in several serious
consequences.”

Ferrel heady has identified the following major characteristics of bureaucracy in developing countries –
i. The basic pattern of administration is imitative rather than indigenous;
ii. The bureaucracies are deficient in skilled manpower necessary for developmental programme;
iii. They work for the realisation of goals other than the achievement of programme objectives;
iv. There is widespread discrepancy between form and reality;
v. Operational autonomy.
The above characteristics mark bureaucracy hierarchical, unresponsive to public needs,
unrepresentative of the population at large and elitist in character.

Despite the fact that bureaucracy in developing countries is ill prepared and ill motivated for the tasks
lying before it, the fact remains that in most of these countries it is the major instrument of social
change.
Eisenstadt observes that bureaucracies in developing countries “helped to maintain the framework of a
unified policy as well as the capacity to absorb varied demands and to related them effectively.”
Not only were they important instruments for unification and centralisation, but they enabled the
rulers to implement continuous policy. In addition, they also served as important instruments for
mobilisation of resources, taxes, manpower, and political support.

There is no basic conflict between bureaucracy and development.

No doubt, at present it suffers from certain structural weaknesses and behavioural attitudes,
nevertheless, even right orientation in the new content bureaucracy can be structurally and
behaviourally geared to the task of development.

The following changes among other may be helpful to fit bureaucracy into developmental tasks –
• There should be deemphasising of hierarchy to get rid of the conventional organisational
pyramid.
• There is need to redesign organisations to enable co-operative decision-making and promote
collaborative problem-solving.
• Authority should be decentralised and field units strengthened and given more authority for
decision-making.
• There should be free flow of communication unhindered by status-levels in the organisation.
• Merit alone should be the criterion for recruitment of personnel. Adequate arrangements for
training should exist.
• Bureaucracy must secure peop2le’s participation and co-operation in developmental work.
• Behavioural changes are needed to make the bureaucracy change oriented, result-oriented and
people-oriented.
• Professional mobility should be encouraged.

Administrative World Page 241

 PAPER 01

Merit Bureaucracy – the recruitment is done purely on merit basis. It establishes the hierarchy
of officers.

Guardian Bureaucracy – the conduct of officials is directed towards the welfare of its citizens.

Caste Bureaucracy – the recruitment is on the basis of caste. It is prevalent in oligarchic

political system.

Patronage Bureaucracy – Recruitment is based purely on the principle of favoritism.

Administrative World Page 242

 PAPER 01

4. State vs Market Debate

State vs. Market Debate

• State vs. market debate is a debate about the respective roles of the state and the market in
the society and economy.
• The theoretical base for this debate lies in the Public Choice approach.
• This approach argues for the “institutional pluralism”. In the provision of public goods and
services to promote the consumers’ preferences.
• It states that the administrators and politicians are concerned with the self-interest rather than
public interest.
• It questioned the role of state and the very basis of the govt.
• PCA has given rise to a new paradigm “NPM” with a dominant market-orientation.
• This calls upon the govt. to play a more and more enabling role rather than the traditional
“doing” role.
• Following Events in the 20th century marked the large scale intervention of state in society and
economy:-
• Russian revolution of 1917
• Great depression of 1930s
• Destruction caused by 2nd world war
• Emergence of newly independent country
• Initial phase of development was state-led.
• In the developed countries of West Europe and USA, the state intervened to implement the
Keynesian Theory.
• Keynes stated that state intervention through huge investment is necessary to ensure full
employment as it is not automatic in capitalism.
• The success of state intervention in socialist countries greatly influenced the policy-makers in
the favour of state intervention.
• In newly independent countries, state intervened to accelerate the process of development.
• These countries did not even possess the preconditions for development.

Failure of State
• Huge growth in public expenditure  high inflation  high taxation
• Fiscal crisis of the welfare state
• State failed in providing fundamental goods and services
• Collapse of USSR and East Europe
• High growth rate by Japan, Singapore, South Korea which have adopted a policy of limited state
intervention

Administrative World Page 243

 PAPER 01

• Dismal performance of various public enterprise

• Excessive state intervention led to market distortions, inflated bureaucracy and corruption.
• Failure of state led to Liberalisation, privatisation and globalisation
• The role of state is not denied, it is argued that such intervention must be ‘market friendly’.
• The world bank report (1991) explained the meaning of ‘market friendly’ state intervention
as follows:-
• Intervene reluctantly i.e. allowing market to work unless it is demonstrably better to
step in.
• Apply checks and balances
• Intervene openly
• However, there are also various problems in the market regulated system:-
• Widespread imperfections in market of developing economies.
• Market decisions do no ensure optimum allocation of resources
• Market cannot ensure equilibrium between aggregate demand and aggregate supply
• Market mechanism ignores equity.
• The emerging view is that the market must be allowed to work wherever it can function
efficiently and State must step in wherever market cannot.
• The world bank report (1997) endorsed the same view.
• The report mentioned 5 fundamental task of govt.:-
• Establishing a foundation of law
• Maintaining macroeconomic stability
• Investing in basic social services and infrastructure
• Protecting the vulnerable
• Protecting the environment

World Bank Report (1991)

“A central issue in development is the interaction between govt. and market.
This is not a question of intervention versus laissez faire – a popular dichotomy.
Competitive markets are the best way yet found for efficiently organising the production and
distribution of goods and services.
Domestic and external competition provide the incentives that unleash entrepreneurship and
technological progress.
But market cannot operate in vacuum – they require a legal and regulatory framework that only govt.
can provide.
And, at many other tasks, markets sometimes provide inadequate or fail altogether.
That is why government must, for example, invest in infrastructure and provide essential services to
the poor.
It is not a question of state or market; each has a large and irreplaceable role.”

Administrative World Page 244

 PAPER 01

Impact of Liberalisation in
4.
Developing Countries
Impact of Liberalisation on Administration in developing countries
• When a nation becomes liberalised, the economic effects can be intense for the country and as
well as for the investors.
• Economic liberalisation is relaxing the government regulations in a country to allow the private
sector companies to operate business transactions with fewer restrictions.
• With reference to the developing countries, this term denote to opening of economic borders
to MNCs and foreign investment.
• There are lot of barriers in emerging market countries such as legal issues, tax laws, foreign
investment restrictions.
• The economic liberalisation begins by relaxing these obstacles & controls
• This often involves some form of deregulations and a privatisation of corporations.
• The policies and programmes are still to be determined and formulated by the state only in the
favour of social justice and development.
• The beliefs in ‘Government by the Market’, opined by Peter Self (1993), rest upon the
proposition that the market system is inherently a better method of satisfying human wants
and aspirations than recourse to government.
• The State needs to be regulatory in nature, providing for mechanisms for ensuring efficiency,
setting standards of service, removing market distortions, providing appropriate
regulatory/legal framework for players in the market; and protecting the interests of
consumers, employers, employees, and the other stakeholders.

Positive Impact
1. Free flow of capital:- liberalisation has improves flow of capital into the country which makes it
inexpensive for the companies to access capital from investors. This leads to higher growth
rate.
2. Political risks reduced:- liberalisation policies in the country lessens political risks to investors.
The govt. can attract more Foreign investment through liberalised economic policies.
3. Diversification for investors:- in a liberalised economy, investors gets benefits by being able to
invest a portion of their portfolio into a diversifying asset class.

Negative Impact
1. Destabilization of the economy:- tremendous redistribution of economic power and political
power leads to destabilizing effect on the entire economy.
2. Threats from MNCs:- prior to liberalisation, MNCs did not play much role in a country’s
economy. On account of liberalisation, competition has increased. MNCs are big which has
turned out a threat to local firms.
3. Technological impact:- rapid increase in technology makes small scale industries hard to
survive.
4. Mergers and acquisitions:- these are increasing day-by-day. It leads to re-skilling and cast
burden on the capital of the company.
5. Osborne and Gaebler (1992) in their work Reinventing Government have made a case for
government having a key role in restructuring of markets through:-

Administrative World Page 245

 PAPER 01

1. Setting rules in market place

2. Facilitating the provision of information
3. Augmenting demand
4. Catalysing private sector supplies and new market sectors
5. Creating market institutions
6. Risk sharing; and
7. Regulating through application of market-oriented incentives

Administrative World Page 246

 PAPER 01

Women Empowerment; Self Help

5.
Groups
Women Empowerment: Self Help Movement
• Self Help Group and micro credit movement have initiated in the year 1975 at Bangladesh by
Mohammad Yunus.
• According to NABARD, “SHG is a homogenous group of rural poor, voluntary governed to save
whatever the amount they can conveniently save out of their earning and mutually to
contribute to a common fund to lend to the members for making their production and
emergency consumption credit needs”.
• SHG movement aims to provide livelihood security as well as betterment in livelihood of poor.
• A self help group (SHG) is a small voluntary association of poor people.
• It can be an all women group, all men group or a mixed one and micro credit is given to them
for their enterprises.
• However, it has been found that women’s groups perform better in all the important activities
of SHG.
• SHG in India are a catalyst for the economic empowerment of women and poverty eradication.
• It is usually composed of 10-20 women who make regular small contributions of their savings
for a period of time.
• Grameen bank of Bangladesh is pioneer of micro finance providing institutions.

Women Empowerment
• Women empowerment occurs in real sense when women achieve increased control and
participation decisions making that leads to their better access to resources it often involves
the empowered developing confidence into heir own capacities.
• Women empowerment aims at realising their identities, power and potentiality in all spheres
of lives
• In the past, the positions of women was miserable in the society.
• Women of today are not like the early days.
• SHG have been emerged as powerful instrument in order to alleviate poverty and for the
empowerment of women.
• Progress of any nation is inevitably linked with social and economical plight of women in that
particular country.
• SHG phenomenon definitely brings groups consciousness among women, sense of
belongingness, adequate self confidence.
• She develops sufficient understanding about her own rights, roles, privileges and
responsibilities.
• When she becomes a member of SHG, her sense of public participation, enlarged horizon of
social activities, high self-esteem, self respect and fulfilment in life expands.
• SHG is an effective instrument to empower women socially and economically which
ultimately contributes in the overall development of country.

Administrative World Page 247

 PAPER 01

Administrative World Page 248

 PAPER 01

Administrative World Page 249

 PAPER 01

Administrative World Page 250

 PAPER 01

Significance of Human Resource

1.
Management

Significance of Human Resource Management (HRM)

• HRM is simply management of Human Resource of an organisation.
• It is a product of Human Relation Movement of the early 20th Century.
• HRM covers all levels of employees
• Applies to the employees of all types of organisation in the world.

Personnel Management
• According to Flippo – “Personnel Management is the planning, organising, compensation,
integration & maintenance of people for the purpose of contributing to organisational,
individual & societal goals”.
• HRM differs from personnel management in treating people as ‘resource’
• Human resource development:- it is a term employed for education & Training activities
undertaken at micro & Macro level for development of ‘Human capital’.

Human Relation Movement & Personnel Management

• HR movement was the result of anger against the mechanistic model given by the classical
thinkers.
• HR movement have changed all the notions that were prevalent about the personnel.
• Behavioural revolution followed Human relation movement
• Now the focus on HRM.
• HR school although was the result of excessive mechanisation of human aspect but later
provided the very foundation of HRM which is central to the organisation of new era.

Nature of HRM
• Pervasive force
• Action oriented
• Individual oriented
• Integrating mechanism
• Inter-disciplinary
• Continuous process

Significance
 To help the organisation reach its goals.
 To employ the skills & Abilities of the workforce efficiently.
 To provide the organisation with well-trained & well motivated employees.
 To increase to the fullest the employees’ job satisfaction & Self actualisation.
 To develop & maintain a quality of work life.
 To communicate HR policies to all employees.

Administrative World Page 251

 PAPER 01

Future Challenges to HRM

• Emphasis on HRM will be greater in coming years.
1) Emergence of MNCs & Consequent need to manage diversity.
2) Cost constraint & More emphasis on output maximising strategies.
3) Workers’ participation in management
4) Flexibility in the organisational structure needed to meet the changing requirement.
5) Tackling demographic changes

Administrative World Page 252

 PAPER 01

2. Recruitment

Recruitment
• Recruitment is the cornerstone of the entire personnel structure
• Proper selection and placement of employees is a pre-requisite for the development of an
effective work force.
• UN report :- “the core design of progressive recruitment policy in any organisation is the
reduction, if no elimination of favouritism, nepotism and incompetence in the selection
process.”
• Other personnel process – training, placement, promotion etc. are dependent on sound
recruitment policy

Recruitment & Appointment

• Recruitment covers the entire gamut of activities relating to entertainment, acceptance,
selection and approval for appointment and not the actual appointment itself.
• Appointment refers to the actual posting assigned to a person, post-selection to a particular
office.
• There are two sources of recruitment
• Inside (Promotion)
• Outside (Recruitment)

Direct Recruitment
• It affords equal opportunity for all
• It widens the ambit of selection and makes it possible to tap a wider market for supply of
desired human resource.
• Direct recruitment infuse new blood into the system by their fresh perspective, new ideas ad
approaches.
• It is conducive to maintain & augment efficiency standards.

Disadvantages
• Direct recruits lack experience & practical know-how
• Kills the initiative of internal candidates.
• It places young people over old.
It may be said that neither of these methods can be preferred to the total exclusion of other.
A mix of approaches for sound organisational strategy.

Steps in Recruitment
• 1st essential step – Job requisition
• It gives the recruiting agency information about each job.
• It is done through job analysis & job specifications.
– Job analysis is the study of all facts relating to a job & its environment which
potentially impacts performance

Administrative World Page 253

 PAPER 01

– Job specifications is a statement of the physical, mental and temperament qualities

desirable for accomplishing a job.
Designing Application Forms
• A well designed application form is a pre requisite for the success of the recruitment process.
• It aims to procure required information from applicants.
• Applicants should be able to look at organisational goals and match them with their personal
goals.
Advertisement
• The recruiting agency notifies vacancy through advertisements.
• Cost factor has to be considered.
• Advertisement should be speedy as well as cost efficient.
Modes of inviting applications
i. Newspapers
ii. Trade or professional journals
iii. Notice bards in field offices
iv. Employment exchanges
v. Employment job centres
Scrutiny of applications
• The purpose of scrutiny is sift out less desirable candidates
• Scrutiny of eligible candidates can ensure if information required of a candidate is complete
and whether he fulfils all requisite criteria of eligibility apart from meeting essential minimum
prescribed qualifications.
Selection
• Recruiting agency arranges an examination or interview or both to select suitable candidates.
• After selection, a list of selected candidates is prepared in the order of merit and published.
• The list generally remains valid for a period.
Communication
• The suitable candidates are informed.
• Terms & conditions governing appointment should be clearly spelt out.
• Letter of appointment is issued after selection.
Placement
• The progress of the new employee is observed during the probation period and followed by
confirmation of service of the employees, if found fit.

Administrative World Page 254

 PAPER 01

3. Training

Training
• Every organisation needs to have well trained people to perform the activities required to be
undertaken.
• All types of jobs require some sorts of training for efficient performance.
• Every new employee regardless of his previous training and experience needs to be introduced
to the work-environment of his new job & taught how to perform specific tasks.
• Job-redesigning or a technological breakthrough require some type of training and
development effort.
• Dale Yoder “Training is the process by which man-power is filled for the particular jobs it is to
perform”
• Flippo “Training is the act of increasing the knowledge ad skills of an employer for doing a
particular job”
• Training is continuous and never-ending process.
• It is a process of training, a sequence of programmed behaviour. It is application of knowledge.
• It gives people an awareness of the rules and procedures to guide their behaviour.
• It attempt to improve their performance on the current job or prepare them for an intended
job.
• According to Dale S. Beach “Training is vital and necessary to activity in all organisational and of
plays a large part in determining the effectiveness and efficiency of the establishment”.
Major advantages
• Follow up of selection procedure
• Better performance
• Reduction in cost production
• Reduced supervision
• Increased morale
• Organisational stability and flexibility
The role of training for civil servants was thoroughly analysed for the 1st time by Assheton
Committee in UK.

Limitations
• Costly affairs & expensive process
• Dislocation of work & Interruption in daily work
• Difficult to gain good training instructors and leaders

Principles of Training
• A sound training programme should be based on the following principles:-
a) Designed to achieve pre-determined objectives
b) Less-expensive

Administrative World Page 255

 PAPER 01

c) Developed for all

d) Pre-planned and well organised
e) According to size, nature and financial position of the concern
f) Flexible
g) Conducted by an experienced supervisor
h) Coverage of theoretical as well as practical aspects
i) Interests of executives and employees
j) More than one method
k) Training followed by reward
l) Sufficient time for practice

Areas of training
• Company policies & procedures
• Apprentice training
• Managerial & Supervisory skills
• Specific skills
• Human Relation
• Problem solving

Steps in training
• Discovering/identifying training needs
• Getting ready for the job
• Preparation of the learner
• Presentation of operation and knowledge
• Performance try-out
• Follow up and evaluation of the programme

Training methods
• The methods normally used are classified into:-
1. On the job
2. Off the job

On the job Training methods

• The worker by these methods learns to master the operations involved, on the actual job
situations, under the supervision of his immediate boss.
• These methods give first hand knowledge and experience under the actual working conditions.
• On specific job:- this is most common method. It Is conducted through
a) Experience:- oldest method, wasteful, time consuming and inefficient
b) Coaching:- superior give feed-back and suggestions.
c) Understudy:- this method makes the trainee an assistant to the current job holder.
• Position Rotation:- this involves the movement of trainee from one job to another.
Disadvantage:- disruption, specialisation proceeds.
• Special projects:- trainee may be asked to perform special assignment. Flexible & learns team
work.
• Selective readings:- reading may include professional journals & books. But difficult to find time
to do much reading.
• Apprenticeship:- those intended of learning skill bound themselves to a master craftsman to
learn by doing the work under his guidance.

Administrative World Page 256

 PAPER 01

• Vestibule schools:- a preliminary to actual shop experience. These are widely used in training
for clerical and office jobs as well as for factory production jobs. Expensive but less complex.

Off-the-job training methods

• Special courses & lectures:- traditional form, organised for short period.
• Conference:- old method. Discussion to arrive at improved methods of dealing with problems.
• Brainstorming:- stimulate trainees to creative thinking. Maximum of group participation,
minimum of criticism.
• Laboratory training:- provide situations which trainees themselves experience through their
own interaction.

Laboratory Training
• Two methods:-
– Simulation
– Sensitivity training
Simulation:-
• Simulation is the presentation of real situation of organisations in the training session.
• In this method, instead of taking participants into the field there can be simulated in the
training session itself.
• It Creates a whole field organisation, relates participants through key roles in it.
• There are two common simulation methods:-
– Role-playing
– Gaming
Sensitivity training:-
• Most controversial method, so revised approach– team development training
• It was first used by National training laboratory at Bethal, USA.
• The training groups are called T-Group.
• Sensitivity training is a small-group interaction under stress in an unstructured encounter group
which requires people to become sensitive to one another’s feeling in order to develop
reasonable group activity.

Causes for failure of Training

• Top management has little confidence in training
• Training objective are not clear, specific and not understood by all.
• Training policy is not clear ad comprehensive.
• Inadequate arrangements.
• Lack of coordination between staff
• lack of effort to better utilization of available resources.
• Lack of evaluation of training at various stages.
• The basic needs and objective of training programme for a particular level differ from that of
other level.
• Thus, a particular training programme would be more suitable to a particular group of people.

Administrative World Page 257

 PAPER 01

Promotion; Career Advancement

4.
and Position Classification

Promotion
• Promotion is derived from Latin word meaning to “to move forward”.
• In terms of career, a promotion refers to the advancement of an employee’s rank or position in
a hierarchical structure.
• In marketing, promotion refers to different sorts of advancement.
• “promotion is a term that is used in different context”.
• A job promotion is usually handed to an employee who has displayed exceptional performance
or has developed the appropriate skills and knowledge necessary to take on the higher job
responsibility.
• It is necessary for rewarding an employee for accomplishment and boosting morale and
motivation.
• L.D. White:-
Promotion is “an appointment from a given position to a position of higher grade, involving a change of
duties to a more difficult type of work and greater responsibility accompanied by change of title and
usually an increase in pay”
• Promotion adds to the goodwill of the govt.
• It should be just fair and equal for the true spirit and benefits of the same to be yielded for the
organisation.
• The standard specifications should be made clear to all employees of the organisation setting
forth the duties, qualification, merit factor and way of determining the same.
• Promotion as a process is required because from time to time there are vacancies that need to
be filled up in an organisation and the best are to be selected for the same from within.
• Bad promotion policy has major negative ramifications for the whole organisation.

Principle of Promotion
1. Principle of merit:- in case of promotion to higher level posts, merit is the only consideration to
the total exclusion of seniority.
2. Principle of merit cum seniority:- in case of promotion to middle level posts, merit is the
determining factor and seniority a secondary one.
3. Principle of seniority:- in case of promotion to lower rung posts, seniority carries weights.
• For a sound promotion system there should be a sound and just promotion policy outlined and
clearly communication to the employees.
• Employees should be provided with all the opportunities to bring them on equal footing with
the other contenders.
• There should be a promotion grievance board setup with a representative.

Career Advancement
• Career advancement refers to the upward progression of one's career

Administrative World Page 258

 PAPER 01

• Career advancement as a function of personnel administration is concerned with the activities

that promote job growth or expansion of job roles/responsibilities
• It is how an individual /employee manages his/her career within the organisation( promotion,
internal job postings, etc.) and between different organisations( shifting jobs, changing
organisations for career growth and development/advancement)
• It is an on-going and dynamic process
Examples of activities that contribute to professional growth and development:
• Continuing Education.
• Participation in professional organizations.
• Research.
• Improve job performance.
• Increased duties and responsibilities.
• Approaches to professional development:
• Skill Based Training.
• Job Assignments
The support for career development via the Personnel/Human Resource dept.is important because:-
• Current information about the organization and future trends helps employees create more
realistic career development goals .
• Focus on skill development contributes to learning opportunities .
• Opportunities for promotion and/or lateral moves contribute to the employee's career
satisfaction .
• A greater sense of responsibility for managing one's own career contributes to self-confidence
• Career planning and development clarifies the match between organizational and individual
employee goals .
• It's cost-effective to use the HRD(Human Resource dept./Personnel Administration) staff talent
to provide career development opportunities within your department .
• Career development increases employee motivation and productivity
• Attention to career development helps the HRD attract top staff and retain valued employees
• Supporting career development and growth of employees is mandated by the Philosophy of
Human Resources Management

POSITION CLASSIFICATION
• In Personnel administration position classification means grouping of various positions on the
basis of the commonality of responsibilities and duties.
• It started with the movement of equal pay for equal work.
• It brings orderliness into the system and makes treatment uniform to people irrespective of
their caste, status, birth, age, gender, etc.
• It also is handy as a functional tool since it makes clear even to the incumbent about his
responsibilities and duties as well as hierarchical systems formally associated with his/her
position.
• The Grade system of position classification is used to denote all 'classes' of positions which
(though different in subject matter or kind of work) are sufficiently similar as to the level of
difficulty and responsibility and level of qualifications for the job like civil engineer, accountant,
geologist,etc.

Administrative World Page 259

 PAPER 01

• Each position classification is placed under a 'class' and each class should be placed in the
appropriate 'Grade

Advantages of position classification:

a) Facilitates Division of work.

b) Removes arbitrary standards.
c) Promotes employee equality and motivation.
d) Ensures effective Manpower planning and utilisation.
e) Lays down uniform work standards.
f) Speeds up recruitment process and indicates training needs.
g) Helps in maintaining updated personnel records.

Disadvantages of position classification:

a) Introduces element of rigidity in personnel system.
b) Under it, it is difficult to shift an employee from one position to another in the interest of the
administration.
c) Tends to get stale rather soon and a lot of effort is needed to keep it up to date.
d) Constant pressure from employees to upgrade their positions

Administrative World Page 260

 PAPER 01

5. Discipline; Pay & Service

Condition

DISCIPLINE
• Discipline is vital for smooth functioning of organisation.
• Fundamental purpose is to establish harmonious relationship between employers and
employees.
• Discipline refers to the state of employee self-control and effectiveness at work.
• In Negative aspect, disciplinary action implies punishment.
• In positive aspect implies training of mind that leads to self-control, character, orderliness and
thereby efficiency at work.

Reason of indiscipline
• Lack of proper communication
• Ineffective leadership
• Unfair labour practices
• Inadequate wages and salary system.
• Unreasonable declaration of payment of bonus or non payment
• Ineffective grievance procedure.
• Inappropriate placement policy, leading to employee resentment.
• Undesirable derogatory behaviour of senior officials.
• Unfavourable working conditions
• Divide and rule policy of management.
Category of offence
Minor offence:-
• Unauthorised absence on one or more scheduled work days.
• Leaving job or work area without proper authorisation
• Fighting
Serious offences:-
• Wilful destruction to property
• Deliberate negligence of duty
• Stealing and fraud
• Carrying dangerous weapons
• Promotion of gambling
• Tempering with official records.

Disciplinary offence
Disciplinary actions to be taken and sequence of actions followed from trivial offences to serious:
• Oral warning
• Loss of entitlement/incentive
• Suspension

Administrative World Page 261

 PAPER 01

• Demotion
• Appointment termination
• Dismissal
How disciple is instilled in an organisation:
• Clearly stated rules, regulations, objectives and code of conduct of the organisation which are
constantly updated and reviewed.
• No discrimination in enforcing the above.
• Proper communication among all levels.
• Strong disciplinary action so that indiscipline is not committed the second time.
• Practices that breed indiscipline should be discouraged and prevented like favouritism, lack of
communication, lack of leadership, low morale and motivation among staff, irregularity and
non-punctuality

Pay & Service Conditions

• Pay is one of the mainsprings of motivation in a society and together with appropriate working
conditions it is the base of a sound organisational system.
• A salary scale should be determined on the basis of the current and expected cost of living of
an individual and his family.
• There should be equal pay for equal work with no discrimination at all in the same.
• The minimum wages benchmark should be religiously followed.
• Public and private jobs should have less salary disparity as possible between each other as well
as within their respective same sectors.
• A sound and attractive incentive scheme to boost efficiency and production.

Objectives
• To meet the needs of employees with emphasis on security and esteem needs
• To motivate workers to achieve desired levels of performance
• Cost-effectiveness based on affordability
• To be competitive with other organisation in order to attract and retain quality human
resources
• To comply with wage and salary provisions in the labour contract and with federal and state
laws and regulations
• To be fair and consistent throughout the organisation based on scientific criteria.
• Pay standard should be related to the cost of living.
• Employer should pay what is necessary to recruit and retain an efficient staff.
• Pay scale should be related to the per capita income of the country.
• Maintain a fair relativity between their wages and those in industries as a whole.
• Equal pay for equal work.
• Public servants should be paid at a rate corresponding to that for comparable situation in
private employment.

Other Benefits & Allowance

• Dearness allowance
• Housing or house rent allowance
• Travelling allowance

Administrative World Page 262

 PAPER 01

• Children’s education allowance

• Medical aid
• Compensatory allowance

Leave Benefits
• Casual leave:- for short period to meet unexpected contingencies.
• Earned leave:- intended to enable employee to take rest for a certain period
• Study leave:- for undergoing special course
• Maternity leave:- granted to female employees.
• Paternity leave:- male employees
• Other leave

Service Conditions
• Proper leave structure, holidays list and hours of work, rest periods, staff welfare and office
accommodation conditions, health care policy and housing policy should be clearly defined and
communicated to the employee.
• The hygiene factors that affect the productivity of the employee like proper ventilation, lighting
and noise reduction premises as well as proper sanitation should be taken good care of.
• Drawbacks like unnecessary documentation, complex policies and delay due to the same
should be checked and avoided for it to function properly and keep the employees charged.

Retirement
• It helps increase efficiency of public services and organisations by eliminating employees from
services due to old age, infirmity, inability to perform duties anymore, etc.
• It is essential to maintain the system of promotion as the employees have to retire at a certain
age and also this policy helps bring in new and fresh blood and ideas.
• A sound system of pension and retirement benefits help attract and retain the best talents as
they do not have to worry about their future.
• The basic guidelines, rules and regulations of the same have been laid down and prescribed by
the state/govt. and updated from time to time and proper adherence is mandatory

CODE OF CONDUCT
• A code of conduct is a set of rules outlining the norms, rules and responsibilities of and or
proper practices for an individual.
• A code of conduct can be an important part in establishing an inclusive culture.
• A well written code of conduct clarifies an organisation’s mission, values and principles.
• A code is a central guide and reference for employees to support day-to-day decision making.
Read this with topic of “Discipline”

Employer-Employee Relationship
• It refers to the relationship shared among the employees in an organisation.

Administrative World Page 263

 PAPER 01

• Employer and Employees are the two wheels of the engine of the organisation, a good and
healthy relationship of the organisation between these two wheels will only take the
organisation forwards.
• The employees must be comfortable with each other for a healthy environment at work.
• In today’s era where an employee is considered to be an asset, it is the prime duty to look after
them so that “The assets for today don’t turn out to be a liability in the long run”

Joint Consultative Machinery

• For Group A & Group B services, the govt of India introduced a scheme in 1966 for joint
consultation and arbitration for the central govt employees on the lines of the Whitely councils
(UK).
• Main objective of JCM is to promote harmonious relations between the govt and its
employees.

Performance Appraisal
• Performance appraisal means assessment of an employee’s performance on the job.
• It is an important aspect of HRM.
• It serve 3 fold objectives – monitoring, evaluation & control.
• It is viewed as a positive management development tool intended to help employees develop
their full potential.

Requirement of Performance Appraisal

• Standards
• Mutual consent
• Feedback from employees
• Fair & Just process
• Well trained supervisor
• Grievance redressal
• Study & research

Need for Performance Appraisal

• Need arises out of sub-optimal performance.
• To develop a system either to weed out under performing or improve their work orientation.
• Motivate employees for quality output.
• In performance appraisal there is realisation that success is a journey not a destination & there
is no failure only feedback.

Methods
Traditional methods:-
1) Graphic scale
2) Ranking
3) Forced distribution method
4) Critical incident method
5) Forced choice rating method

Administrative World Page 264

 PAPER 01

6) Group appraisal
7) Nomination
8) Work sample tests
9) Result-oriented performance appraisal system
10) Confidential reports
Modern methods:-
• Management by Objective (MBO)
• It is a systematic & Organised approach that allows management to focus on achievable goals
to attain best possible results from available resources.
• Peter Drucker:- “MBO is regarded as a system for improving performance both the individual,
managers & Enterprise as a whole by setting objectives at the corporate, departmental &
Individual manager level”.
• Assessment of performance is continuous activity
• Perceived as Fault-finding exercise
• Not taken seriously enough.
• It is necessary to discuss how responsibility for performance appraisal can be made more
meaningful.

Administrative Ethics
• Technical innovations deriving from the engineering sciences encountered considerable
resistance unless supported by corresponding changes in human attitudes and behaviour.
• Manipulation and lack of ethics produce strong negative side effects and reduce organisational
effectiveness
• Administrative ethics denotes the professional code of morality in civil service.
• They provides “rules of the game”.
• S.L.Goel “Administrative ethics is the study of those administrative standard on the basis of
which a particular action is judged to the right or wrong, moral or immoral, good or bad.
• Germany was the first state in modern times to professionalise its civil service.

Elements
a. Integrity
b. Loyalty to nation
c. Honesty
d. Efficiency
e. Non-partisan attitude
f. Humbleness
g. Non-corruptiveness
h. Devotion to the duty
i. Sense of public good
j. Secrecy
k. Neutrality
l. Anonymity
m. Impartiality
n. Fairness
o. Sincerity

Administrative World Page 265

 PAPER 01

Importance
• To check the arbitrary activities of civil servants
• To promote the sense of administrative responsibility
• To establish and promote the correct relation between citizens and the civil service
• To preserve and promote social welfare, public interest and common good.
• To improve efficiency and effectiveness of administrative process
• To strengthen the legitimacy and credibility of public administration.
P.R.Dubhashi said “it is of utmost importance that the public administration should be efficient but it is
even more important that it should be ethical. It is said of an individual that if character is lost,
everything is lost. It could be stated about public administration that it ethics is lost, everything is lost”.

Hindrance
• Corruption
• Favouritism
• Bribery
• Indifferentism
• Officiousness
• Departmentalism
• Nepotism
• Lawlessness
• Political influence
• External pressure

Administrative World Page 266

 PAPER 01

Administrative World Page 267

 PAPER 01

Administrative World Page 268

 PAPER 01

Public Policy

Public Policy as an academic pursuit emerged in the beginning of 1950s and since then it has developed
as a discipline in the comity of social sciences. Policy forms a significant component in many a course
and programme in subjects like political science, public administration, and economic management.
Public policy is a concept much in vague.

 It is a frequently used term in our daily life and in our academic literature, where we make
references to the foreign policy, education policy, and national health policy and so on.
 It is an area which had to do with those spheres which are so called as public.
 The concept of public policy presupposes that there is a domain of life which is not private but held
in common.

The study of public policy has evolved into what is virtually a new branch of policy sciences. The
concept of policy sciences was first formulated by Harold Lasswell in 1951.

• Public Policy refers to the policy that is formulated for the benefits of the public.
• Public policy is a course of action adopted & pursued by govt.
• According to Appleby, the essence of public administration is policy making.
• Policies help the executive keep his activities within a ‘prescribed framework of action’.
• Policies gives meaning to objectives.
• Prof. R. K. Sapru has rightly said that, “it is first important to understood the concept of
‘public’ for a discussion of public policy.”
• The concept of policy is not a precise term.
• It may take the form of
• A declaration of goals
• A declaration of course of action
• A declaration of general purpose
• An authoritative decision.
• The term is often used rather loosely; it is confused with rule, custom and decision.

Historical background
• Since the time the Republic came into existence, it came upon the government to have a policy, a
set of ideas envisioning what needs to be done, to govern.
• Policy-making is the primary task of a government in making decisions to bring changes in the
future whether they concern social welfare, domestic policy, trade policy, foreign policy, etc.
• The ‘Magna Carta’ in 1215 was the first official effort to hold the government accountable to the
public, however it was basically to control the king himself.
• Subsequently, many countries codified the principles and laws, giving power to the people to
participate in the law making and public policy.
• Public policies have become a part of daily lives.
• Constructing public policy models is important to give diction to a government to move on the path
of progress and development.
• Models attempt to fill the gap between theory and practice of public policy studies.

Policy & Administration

• Woodrow Wilson, attempted a rigid distinction between politics & administration.

Administrative World Page 269

 PAPER 01

• To him policy making was a political function while administration is concerned with policy
implementation.
• Wilson was followed by Goodnow.
• Later, it was accepted that politics and administration are inseparable twins.
 Luther Gulick was one of the pioneer advocates of this view.
 Appleby is the name most common associated with the thesis that politics and
administration are inseparable twins. According to him, administration is politics since
it must be responsive to the public interest.
Gaus – “a theory of Public Administration means in our time a Theory of Politics too.”
Peter Odegard – “Policy and administration are the Siamese twins of politics.”

However, it should not to be believed that there is no distinction between policy and
administration. The fact is that the two functions are distinct even though the same person or
persons may be performing them.
• Louis Brownlow:- “There is and always will be a difference between politics on the one hand,
and administration on the other, no matter how closely they may be related in democratic
society.”
• Public policy is a document that contains the broad outline as well as the detailed description
of formulated as well as implementation of various govt. programmes & plans
• Policy is not static and does not stand still.
• It is dynamic and is prone to constant changes.

Types of Public Policies

Because public policies are in place to address the needs of people, they are often broken down into
different types and categories as they relate to society.

1. Substantive Public Policy

 These are the policies concerned with the general welfare and development of the
society like provision of education and employment opportunities, economic
stabilisation, law and order enforcement, anti-pollution laws, etc.
 It does not cater to any particular or privileged section of society and have to be
formulated dynamically keeping in mind the goals and characteristics of the
constitution and directive principles of a state policy as well as the current and moral
claims of society.
2. Regulatory Public Policy
 These policies are concerned with regulation of trade, business, safety measures,
public utilities, etc., performed by independent organisations working on behalf of
government like LIC, RBI, SEBI, etc.
 Policies pertaining to these services and organisations rendering these services are
known as regulatory policies.
3. Distributive Public Policy
 These are the policies meant for specific segments of society specially the needy ones.
 Public assistance and welfare programmes, food relief, social insurance, vaccination
camps, public distribution systems, etc. are all examples of such policy.
4. Redistributive Public Policy

Administrative World Page 270

 PAPER 01

 These policies are concerned with rearrangement of policies concerned with brining
basic social and economic changes.
 Certain assets and benefits are divided disproportionately amongst certain segments of
society and so those need to be redistributed so it reaches where it is needed and does
not lie about surplus somewhere else.
5. Capitalisation Public Policy
 These policies are related to financial subsidies given by the Centre to state and local
governments and central and state business undertakings.
 These are not directly linked to public welfare, but contribute indirectly.
 It is basically infrastructural and development policies for government business
organisations to keep functioning properly.
6. Constituent Public Policy
 It is the policies relating to constituting new institutions/mechanism for public welfare.
7. Technical Public Policy
 It relates to the policies frames for arrangement of procedures, rules and framework
which a system shall provide for discharge of action by various agencies on the field.

Administrative World Page 271

 PAPER 01

Models and Theories of Policy Making

Policy making is closely related to decision making. However, it is not the same as decision making.
Policy decisions are decisions made by public officials that authorises or give direction and content to
public policy action.

Policy must be based on accurate factual information, which is largely supplied by administration.
There are 4 ways in which administration collects the necessary data and information –

1. From its own internal reports, records and statistics

2. From non-official organisation sources
3. From special investigations conducted by commissions or committee of inquiry
4. From research and study

Research in Policy Making

The government and non-official agencies may discover and interpret facts to organise research and
special studies. Such researches are classified into two –

• Administrative Research
 It is concerned with problems of organisation, procedures and methods.
 In India, a beginning in the administrative research was made in 1954 with the creation
of organisation and method division in the Cabinet Secretariat directly under the Prime
Minister.
 India Institute of Public Administration was established in March. 1954.
• Technical Research
 It is concerned with subject matter field or functional specialties of the various
departments.
 The object of research in these functional specialities is to discover the best method
and techniques of increasing production, minimising costs or solving problems which
are unsolved.

Models of Policy Making

• Incrementalist paradigm
 Substantive, procedural, descriptive & objective.
 Dominated by political scientists
 Concerned with substance of some issues. E.g. crime, environment etc.
• Rationalist paradigm
 Theoretical, effective, prescriptive & normative.
 Focus on prescribing better ways of making & implementing better policies.
 Dominated by Public administrators.

Incrementalist Paradigm
• The writing of Charles E. Lindblom are associated with incrementalism.
• This paradigm posits a conservative tendency in public policy making.

Administrative World Page 272

 PAPER 01

• The public policy maker is perceived as a person who does not have the brains, time & money
to fashion truly different policies; he/she accept the policies of past as satisficing & legitimate.
• It can be categorised in:-
– Elitism, groups, system, institutionalist, neo-institutionalist & organised anarchy.

The Elite/Mass Model

• According to this model, public policy may be viewed as the preferences and values of a
governing elite.
• Some people(elite) take the policy decision.
 Elite:- politicians & Public Administrators.
• Policy flows downward from the elite to the mass.
• Expression of elite theory can be found in C. Wright Mills’s The Power Elite.
• Policy has an oligarchic view in that policies serve the interests of the rich and the influential.

The theory can be summarised as –

 The society is divided into classes and masses.

 Masses don’t allocate values, the elite does.
 The movement of the non-elite to elite must be slow process to avoid serious disturbances or
revolutions.
 The elite share consensus on behalf of the basic values of the society.
 Public policy does not represent a demand of the masses, but the values of the elite. Since, the
elite don’t want a change in the status quo.
 The elite is subject to little influence directly from the masses, but they influence the thinking
of the masses.

Criticism
• It does not take into account the importance of civil society.
• No citizen participation.

The Group Model

• The interaction of groups is a central fact of the policy making exercise.
• People with common interests join to form groups, which then exert pressure on the system.
• It states that a few groups influences bureaucracy & legislature i.e. policy process.
• Policies are struggle between groups in influencing the exercise of policy making.
 Hydraulic Thesis:- the polity is conceived of as being a system of forces and pressures
acting and reacting to one another in the formulation of public policy.
 Expression can be found in Arthur F. Bentley’s the Process of Government.
The influence exerted by the groups is determined by –
 Number of members
 Organisational strength
 Access of the decision maker
 Internal position
The relevant pressures of the opposing groups and resulting opposition of the equilibrium, indicate the
public policy is altered to the advantage of the more powerful group. The policy makers respond to
group pressures by bargaining and negotiating compromises are competing groups.

Administrative World Page 273

 PAPER 01

System Model
• The policy making process has been regarded by David Easton as a “Black Box”, which converts
the demands of the society into policies.
• The system model relies on concepts of information theory and conceives of the process as
being essentially cyclical.
• Policy is originated, implemented, adjusted, re-implemented, re-adjusted and so on.
Limitations:-
• Environmental inputs that influence the political system have not been clearly defined &
described.
• This is seen as too simple as approach

Instituionalist Model
• Public Policies are formulated and executed through institutions.
 Institution is an established pattern of human behaviour consisting of structured
interaction within a framework of relevant values.
• The institutions not only constitute a crucial and significant juncture for policy making, but also
determine the formulation or adoption of policies, its possible content and directions.
• An institution like the legislature or the judiciary can be conceptualised as a set of regularised
pattern of human behaviour persisting over time.
• Under this model certain institutions in society are seen as competent institutions for
determining public policy objectives & processes.
• This model also specifies and suggests the relationship between various institutions and how
they all work together and collectively contribute to a successful policy implementation.

Institutionalism has a deep bearing on public policies because the policies are formulated and
implemented through various institutions of government. Institutionalism can be usefully used for
policy analysis.

Neo-instituionalist Model
• Neoinsitutionalism is a set of social scientific theories that emphasize the role of institutions
as important variables for explaining social phenomenon.
• Neo-institutionalism is an attempt to categorise public policies according to policy making
subsystems.

The Organised Anarchy Model

• John W. Kingdon’s classic, agendas, alternatives & public policies.
• Basic to the model is the presence of 3 streams that flow largely independently of one another
and which constitute the policy making process.
– Problem stream:- involve focusing on problem & defining it.
– Political stream:- in is government agenda – the list of issues or problems to be solved
– is formed.
– The policy stream:- decision agenda is formulated that means the list of alternatives
from which a public policy may be selected by policy makers to resolve a problem.

Rational Model of Policy Making

• This approach emphasises that policy making is making a choice among policy alternatives on
rational grounds.

Administrative World Page 274

 PAPER 01

• Rational policy making is “to choose the one best option”.

• Thomas Dye equates rationality with efficiency.
Stages of Rational policy making
a) Identification and determination of the goals.
b) Ranking of goals in order of importance
c) Identifications of possible policy alternatives for achieving those goals
d) Cost-benefits analysis of policy alternatives.
A rational policy maker must:-
a) Know all the society’s value preferences and their relative weights.
b) Clarify the goals and objectives and rank them
c) Know all the policy alternative available.
d) Compare the consequences of each policy alternatives
e) Calculate the ratio of achieved to sacrificed societal values for each policy alternatives
f) Select the most efficient policy alternatives that matches with the goals.
Once a policy choice is implemented, the rational policy maker is required to monitor implementation.
If necessary policy maker may modify the policy  feedback stage

Constraints to Rationality
• Accomplishing goals:- it is a very difficult exercise.
• Securing optimisation:- in reality, it does not produce optimum results.
• Conflict between rational choice and need for action:- short time available for thorough
analysis
• Dilemma of political feasibility:- by political feasibility means “the probability that, however
rational and desirable a policy action would actually be adopted and implemented by the
political system.
• Problem of cost-benefit analysis:- it is difficult when many values are at stake.
• Nature and environment of bureaucracy:- fragmentation of authority, satisfying personal
goals, conflicting values, limited technology limit the capacity of bureaucracy.

Pareto Optimality
This concept was developed by Vilfredo Pareto.

 A Pareto improvement is “a change in economic organisation that makes everyone

better off – or, more precisely, that makes one or more members of society better
off without making anyone worse off.”

Lindblom’s Incremental Approach

• Charles Lindblom presented the “incremental model” of policy making.
• His article on “science of muddling through” published in 1959.
• He criticised the model of Simon & other.
• He reject the idea that decision making is something which is about defining goals, selecting
alternatives and comparing alternatives.
• According to Lindblom, constraints of time, intelligence and cost prevent policy makers from
identifying all policy alternatives & consequences.
Features of decision making:-
1. It proceeds through a succession of incremental changes

Administrative World Page 275

 PAPER 01

2. It involves mutual adjustment & negotiation.

3. This approach involve trail & error method.
Etzioni:- He was critic of both rational & incremental approaches.
• He advanced ‘mixed-scanning model’
• According to him, models based on pluralist decision-making were biased because of the pre-
existing inequities in the power of the participating interest and individuals.

Yehezkel Dror’s Normative-Optimum Model

He is a pioneering author in the fields of management, policy science, public administration , capacities
to govern, leadership and security issues with publications including Public Policy-making Re-examined,
Design for Policy Sciences, Capacity to Govern: A Report to the Club of Rome, Israeli Statecraft: National
Security Challenges and Responses.

• Yehezekel Dror find Lindblom’s model as conservative and unsatisfactory.

• Dror aims to increase the rational content of govt.
• He proposes a modified form of rational model.
He has given an alternative model, which accepts the followings –
 Need for rationality
 Need for introduction of management techniques for increasing rationality of decision making
at lower levels.
 Policy sciences approach to deal with complex problems requiring decision at higher levels.
 Need to take account of values and irrational elements in decision making.
He maintains, “What is needed is a model which fits reality while being directed towards its
improvements and which can be applied to Policy Making while motivating maximum efforts to arrive
at better policies.”
• He argues that the aim of analysis is to induce decision maker to expand their framework to
deal better with a complex world.
Dror’s models in analysis of public policy occupy and important place. Dror considers the normative
model as a tool for systematically analysing public policy making. He examines existing normative
models critically and suggests that they fall short of the requirement.
Dror has identified six normative models of policy making –
1. The pure rationality model
2. The economically rational model
3. The sequential decision model
4. The incremental change model
5. The satisfying model
6. The extra rational process model
As normative models have many limitations, Dror suggests the optimal model integrating and
supplementing the strength of various models.

Thus, in place of a purely rational model, he offers a more complex model of 18 stages, listed as follows

Meta Policy-Making Stage

• Processing values
• Processing reality
• Processing problems
• Surveying, processing and developing resources

Administrative World Page 276

 PAPER 01

• Designing, evaluation and redesigning the Policy Making system

• Allocating problems, values and resources
• Determining policy making strategy.

Policy making stage

• Sub-allocating resources
• Establishing operational goals, with some order of priority
• Establishing a set of major alternative policies, including some ‘good ones’.
• Preparing reliable predications of the significant benefits and cost of the various alternatives
• Comparing the predicted benefit and cost of the various alternatives and identifying the ‘best’
ones.
• Evaluating the benefit and cost of the ‘best’ alternatives and deciding whether they are ‘good’
or not.

Post Policy Making Stage

• Motivating the executing of policy
• Executing the policy
• Evaluating policy making after executing the policy
• Communications and feedback channels interconnecting all phases.

• Dror’s model aims at analysing the real world which involves values and different perceptions
of reality, and has created an approach which combines core elements of the rational model
with extra rational factors.

Harold Lasswell Contribution in Policy-Making

Harold Dwight Lasswell was a leading American political scientist and communication theorist. He was a
PhD Student at the University of Chicago, and he was a professor of law at Yale University. He served as
President of the American Political Science Association (APSA), of the American Society of International
law and of the World Academy of Art and Science (WAAS).

He was described as a ‘one-man university’ whose competence in, and contributions to, anthropology,
communications, economics, law, philosophy, psychology, psychiatry and sociology are enough to
make him a political scientist.

According to a biographical memorial written by Gabriel Almond at the time of Lasswell’s death and
published by the National Academies of Sciences in 1987, Lasswell “ranked among the half dozen
creative innovators in the social sciences in the twentieth century.

• Harold Lasswell is considered as the father of Policy Science.

• The emergence of the policy science was heralded in his article ‘The Policy Orientation’ published in
1951.
• Lasswell’s Article set out the state of the policy sciences in 1970 in the first number of the Journal
Policy Sciences. For him, policy sciences were –
 Contextual
 Multi-disciplinary
 Problem oriented

Administrative World Page 277

 PAPER 01

The policy sciences as explained by Lasswell were normative in their concern with human value.
Lasswell defined the Policy sciences as providing “intelligence pertinent to the integration of values
realised by and embodied in interpersonal relations.” The emphasis on values has remained the
cornerstone of the policy science.

Administrative World Page 278

 PAPER 01

Policy Cycle
Policy studies focus on how policies are made rather than on their causes and consequences. On eof
the most simplifying policy studies has been to simplify the public policy making process by
disaggregating it into different levels and sub-levels. The resulting sequence of each level is referred as
the policy cycle.

• Policy-making is a continuing process. It does not come to an end once a policy is set out or
approved.
• As Anderson expresses it, "Policy is being made as it is being administered and administered
as it is being made".
• The use of the policy cycle can bring benefits to the analysis of public policy
Policy analysis:- Policy analysis as a technique puts data to use in, or in deciding about estimating and
measuring the consequences of public policies.

Thomas Dye (2004) sets out the following stages in his analysis of the policy process -
1. Identification of problems – the identification of policy problems through demands for government
action.
2. Agenda setting – focusing the attention of the mass media and public officials on specific public
problems as a prelude to decision-making.
3. Policy formulation – the development of policy proposals by interest groups, officers of the chief
executive’s office, committees of the legislature, think tanks, etc.
4. Policy legitimation – the selection and enactment of policies through political actions by the
executive, the legislature, and the courts.
5. Policy implementation – the implementation of policies through organised bureaucracies, public
expenditures, and the activities of executive agencies.
6. Policy evaluation – the evaluation of policies by government agencies themselves, outside
consultants, the press, and the public.

Identifying Policy Problems

• For an analytical approach the first step is to identify why and weather there is a problem at all.
• Defining the problem involves moving from mundane description to more abstract, conceptual
plan.

For example, an environmentalist who is investigating alternative pollution control measures for
Ganges will find that the water is being polluted by the dumping of industrial waste and untreated
sewage to the water. Similarly, the observer who is keenly observing the pathetic situation of rural
population will find that lack of education, lack of employment, lack of proper support from the
government and inactivity of the administrative agencies are responsible for this pathetic condition of
the masses.

• Media plays a significant role in the problem identification.

• Media highlights the problems of the masses in the political arena so that it can become an agenda
item.

Administrative World Page 279

 PAPER 01

Agenda setting
• An agenda is a collection of problems, understandings of causes, symbols, solutions, and other
element; public problems that come to the attention of members of the public and their
governmental officials.
• The demands or claims made by citizens or interest groups on public officials (elected and non-
elected) in the political system for action or inaction on some perceived problems. These demands
constitute what is known as ‘Policy Agenda”
• Policy agenda is therefore not to be interpreted as political demand.
• A policy agenda consist of issues that attract the serious attention of the policy makers and policy
makers agree to consider these demands of the public.
• Conditions that are not defined as problem and for which no alternatives are proposed never
become policy issue.
• The power to decide what will be a policy issue is crucial to policy-making process.
• Deciding what is problem is much more important than deciding what will be the solutions.

Factors in agenda setting –

 Role of the political leadership

 Crises as the basis of agenda setting
 Protest or violence work as a basis of agenda setting
 Affective role of media
 Role of the political parties
 Role of bureaucrats
 Role of individual citizens
 Past experiences

Thus, Agenda Setting is the process by which problems and alternative solutions gain or lose public and
elite attention. Group competition to set the agenda is fierce because no society or political institutions
have the capacity to address all possible alternatives to all possible problems that arise at any one time.

Policy Formulation
• It involves identifying and/or crafting a set of policy alternatives to address a problem, and
narrowing that set of solutions in preparation for the final policy decision.

According to Cochran and Malone, policy formulation takes up the “what” questions: “What is the plan
for dealing with the problem? What are the goals and priorities? What options are available to achieve
those goals? What are the costs and benefits of each of the options? What externalities, positive or
negative, are associated with each alternative?”

• This approach to policy formulation, embedded in a stages model of the policy process, assumes
that participants in the policy process already have recognised and defined a policy problem, and
moved it onto the policy agenda.
• Formulating the set of alternatives thus involves identifying a range of broad approaches to a
problem, and then identifying and designing the specific sets of policy tools that constitute each
approach.

Standard Policy texts describe formulation as a back-room function. As Thomas Dye puts it, policy
formulation takes place in governmental bureaucracies, in interest group offices, in legislative

Administrative World Page 280

 PAPER 01

committee rooms, in meetings of special commission, in think tanks – with details often formulated by
staff.

Policy Legitimation
• Ensuring that the chosen policy instruments have support of the law and authority.
• It can involve one or a combination of: legislative approval, executive approval, seeking consent
through consultation with interest groups, and referenda.
• Basically, it is concerned with selecting a proposal and developing a political support for the same.
• After getting the political support, the policy proposal is enacted into law and its constitutionality is
established.

Implementation
• Implementation is the process by which the goals and promises of a policy are carried out. It
refers to action or activity.
• Presseman and Wildavsky define implementation as "a process of interaction between the
setting of goals and actions geared to achieving them.”
• Anderson – “Policy is being made as it is being administered and administered as it is being
made.”
• According to most scholars on Public Policy implementation stage in the policy process is
concerned with turning policy intentions into action.
It was during 1960s and 1970s that a series of studies and reports appeared, indicating the importance
of implementation. Wilson right said, “It is getting harder to run a constitution than to frame one.”
Until the 1970s, policy analysis was primarily concerned with policy-making issues. However, in the
1960s, a growing interest emerged in the post decisional phases of public policy. It became evident in
the 1970s that many policies had not performed well. As it became apparent that policy making in
many areas, such as population, health, education and agriculture in India had not achieved its desired
goals, so researcher in public administration and public policy began to focus on policy implementation.
Policy implementation is of critical importance to the success of government.

Elements
Implementation is a difficult exercise because it involves various elements. According to Barrett and
Fudge policy implementation is dependent on –

a) Knowing what you want to do

b) The availability of the required resources
c) The ability to control these resources to achieve the desired end
d) If others are to carry out the tasks, communicating what is wanted and controlling their
performance.

• Machinery is developed and Bureaucracy is strengthened to implement the selected policy and
every aspect of the same is taken care of like getting the knowledgeable and skilled personnel,
proper organisational and infrastructural setup, and technology, technical and financial aid.
• Decisions making is done at every stage to choose the best alternative out of available ones by
the administrators while carrying out the tasks allotted to each.
• Mid-term appraisals are held of policy development and senior officers keep monitoring and
directing the juniors at every stage of policy implementation to make it error free.

Administrative World Page 281

 PAPER 01

Conditions for successful implementation

Implementation success or failure is usually linked to the problem of achieving its stated goals. There
are two ways of judging implementation –

1. Efficiency standard – means what outputs and production for a given level of inputs.
2. Responsiveness standard – it is reflected in the question: does implementation represent the
popular will?

In actual administration there is always a trade-off between efficiency and responsiveness or

accountability.

Effective policy implementation dependent on a variety of factors –

• Different kinds of uncertainties often accompany programmes and policies. Space, inputs,
technology and even staff may not be available at specific time.
• Resources may fall short of requirements and may not be flowing in time.
• There are well known organisational problems affecting programme implementation.
• A major problem in any organisation is organisationl leadership. Leadership makes or destroys
an organisation and its implementation.
• Success depends on inter-agency co-ordination.

Limitations are - bureaucratic(nepotism, red tapism, etc) and rigid behaviour of administrators,
lack of expertise and knowledge, lack of funds and infrastructure, citizens not cooperative.
Policy implementation has been termed as the ‘great Achilles heel’ of the policy process.

Implementation Approaches and Models

• Top-Down Model
1. Jeffrey Pressman and Aaron Wildavsky: Policy Implementation Relationship
 Two American scholars Jeffrey Pressman and Aaron Wildavsky, are the
founding fathers of implementation studies. For them, implementation is
clearly related to policy.
 They argue that an effective implementation requires a top-down system of
control, communications and resources to do the job.
2. Donald Van Meter and Carl Van Horn: System Building
 Donald Van Meter and Carl Van Horn offer a model for the analysis of the
implementation process.
 Their approach starts with a consideration of the need to classify policies in
terms that will throw light upon implementation difficulties.
 According to them, implementation will be most successful where only
marginal change is required and goal consensus is high.
3. Eugene Bardach: Implementation Game
 There are scholars who regard public policy implementation as a political
game.
 The game model was advocated by Bardach in 1977.
 In this model, organisation is seen as a structure composed of groups and
individuals, all seeking to maximise their power and influence.

Administrative World Page 282

 PAPER 01

 From this angle, implementation is about self-interested people who are

playing policy games.
 This model suggests that policies extend beyond the formal political
institutions.
4. Brian Hogwood and Lewis Gunn: Recommendation for policy-makers
 Brian Hogwood and Lewis Gunn also contribute to implementation approach in
their publication Policy Analysis for the Real World.
 They advocate a ‘top-down’ view and defend it on the ground that those who
make policies are democratically elected.
5. Christopher Hood: Styles of Public Management
 Christopher Hood argues that variation in ideas about how to organise public
services is a central and recurrent theme in public management.
 He suggests the application of grid/group cultural theory. Here, ‘grid’ refers to
alternatives that public organisations should be constrained or, by contrast,
managers should be ‘free to manage’. ‘Group’ refers to debates about who
should provide services.
 Hood arrives at four ‘styles of public management’ as mentioned below –
a) High ‘grid’/low ‘group’ – ‘the fatalist way’ where rule-bound systems
are developed and low levels of cooperation are the pattern.
b) High ‘grid’/high ‘group’ – ‘the hierarchist way’ involving socially
cohesive rule-bound systems;
c) Low ‘grid’/low ‘group’ – ‘the individualist way’ involving a high
emphasis on negotiation and bargaining; and
d) Low ‘grid’/high ‘group’ – ‘the egalitarian way’ with the expectation of a
high level of participation.
 Hood argues that these ‘four approaches represent choices, each with built in
strengths and weaknesses.’ This views expressed by Hood are mostly in the
analytical realm as they highlight the various models considered for control of
public services.
• Bottom-Up Model – exponents of bottom-up model are of the view that top-down model lacks
effective implementation in practice. They argue that students of public administration and
public policy have to take account of the interaction of implementers with their clients. The
exponents of the bottom-up approach suggest that the implementation process involves
‘policy-making’ by those who are involved in putting policies into effect.
1. Michael Lipsky: Street-level Bureaucracy
 Michael Lipsky is the founding father of the bottom-up perspective.
 His analysis of the behaviour of front-line staff in policy delivery agencies –
whom he calls ‘street level bureaucrats’ – has some influence on
implementation studies.
 He argues that the decision of street-level bureaucrats, the routines they
establish, and the devise they invent to cope with uncertainties and work
pressures, effectively become the public policies they carry out.
 According to Lipsky, they develop conceptions of their work, and of their
clients that narrow the gap between their personnel and work limitations, and
the service ideal.

Administrative World Page 283

 PAPER 01

 Such workers see themselves as cogs in a system, as oppressed by the

bureaucracy within which they work. Yet, they seem to have a great amount of
discretionary freedom and autonomy.
 Therefore, attempts to control them hierarchically simply increase their
tendency to stereotype and disregard the needs of their clients.
 This means that diverse approaches are needed to secure the accountability of
implementers.
 These approaches should provide a framework that feeds the expectations fo
the clientele into the implementation.
 In the bottom-up model, great stress is laid on the fact that ‘street-level’
implementers have discretion in how they apply policies.
• Policy-Action Relationship Model
 Lewis and Flynn developed a behavioural model, which views implementation
as action by actors, that is, constrained by the world outside their
organisations.
 Emphasis on interaction with the outside world, and the organisation’s
institutional context imply that policy goals are not the only guides to action.
 This theme of analysis has also been developed by Barrett and Fudge. They
argue that implementation may be best understood in terms of a ‘policy-
action-continuum’ in which an interactive and bargaining process takes place
overtime between those who are responsible for enacting policy and those
who have control over resources.
• Inter-Organisational Interaction Approach – Implementation is also described as a process that
involves interactions within a multiplicity of organisations. In this context, there are two
approaches -
1. Power-Dependency Approach
 According to this approach, implementation takes place in the context of
interaction of organisation.
 Such interaction produces power relationships in which organisation induce
other less powerful organisations to interact with them.
 Those organisations, which depend for their sustenance on other more
resourceful organisations, have to work in such a way as to secure and protect
their interests and maintain their relative autonomy, so that implementation
does not suffer.
2. Organisational Exchange Approach
 This view holds that organisations collaborate with their counterparts for
mutual benefit.
 Whereas in the power-dependency approach; the organisational relations are
based on dominance and dependence, interaction in the organisational
exchange approach is based on exchange for mutual benefit.

Policy Evaluation
• Evaluation means determining how well a policy is working, and it is not an easy task.
• This stage measures the policy for effectiveness. Modifications are made based on this
evaluation.

Administrative World Page 284

 PAPER 01

• The evaluation of public policy is an attempt to assess the content and effects of policy on
those for whom it is intended.
• This helps justify the need for the policy, guides the process, and determines which goals are
being met and to what degree.
• Decision-makers allocate or redirect resources based on evaluation.
• Evaluation continues throughout the life cycle of a policy.
Evaluation is not monitoring. Monitoring is concerned with establishing factual premises about public
policies. It is mainly about control and the exercise of power. On the other hand, evaluation is
retrospective and occurs after actions have been taken.
• The legislature, bureaucracy, judiciary (through its powers of judicial review) and voluntary and
non-profit organisations and associations play a huge role in policy evaluation.
• Policy studies help in reviewing the policies and improving them.

Functions
Evaluation performs following functions in policy analysis –

1. It provides reliable information about policy performance.

2. It helps to clarify the values that underline the selection of goals and objectives.
3. Evaluation is the process of learning. Policy actors learn from the evaluation what is good or bad
and can modify their future policy process.
4. An integral part of evaluation is the discussion, debate, argument and persuasion about policy
process and working.
5. Evaluational activity may restart the policy process in order to continue, modify or terminate
existing policy.
6. Evaluation is primarily an effort to analyse policy outcomes in terms of some set objectives. It
determines the social utility of policies.

Types of Evaluation
Policy evaluation is a difficult exercise. It is carried on in a variety of ways by a variety of evaluators.
Policy evaluation can be classified into 3 broad categories –

1. Administrative Evaluation
2. Judicial Evaluation
3. Political Evaluation

• Limitations are- lack of will, lack of resources, data issues, ambiguous policy staements,
equity or economical dilemma, etc

Monitoring
• Monitoring is an activity which occurs in the course of implementing a programme or a policy.
• The objective of policy monitoring is to ensure, through the policy implementation process,
that resource inputs are used as efficiently as possible to yield intended results
• In simple words monitoring' is the process of observing. It is not controlling.
Constraints
• problems in monitoring relates to poor design of the implementing system with regard to
provision of all details to enable good monitoring.
• time is a constraint for policy monitoring

Administrative World Page 285

 PAPER 01

• availability of limited corrective actions

• ignorance by the monitoring officials about its role and methods

Administrative World Page 286

 PAPER 01

State Theories
State theories of public policy formulation give different perspectives on the subject. Policy formulation
is a State exercise involving the disciplines of public administration and political science. However,
theories do not treat the concept in the same way because of the ideology and beliefs that the nations
follow individually.

The main theories of State in public policy formulation are four, which are:

1. Pluralistic Theory of State

2. Marxist Theory of State
3. Leviathan State Theory
4. Patriarchal State Theory

The four major theories of State are:

• Pluralistic theory of State: It is a liberal theory of State and states that the State acts as a
referee and umpire who as and when required steps in to arbitrate between issues occurring.
It believes that every individual of the society knows what is best for him and has mutually
agreed into a social contract with other individuals to protect their interests and the duty to
referee that social contract is in the hands of the State,so as and when that social contract
stands violated by anybody the State will punish them neutrally.
This theory states that since the State is non partisan, and unbiased it brings out only altruistic,
universal and benevolent Public policy.
• Neo-Pluralistic State theory - However, the new or neo-pluralistic State theory state that the
State is not completely insulated from influence and is influenced repeatedly by groups whose
relative strength caused by huge investments like corporates, etc and so the State also bows
down many a times and misuses its powers.
Therefore Public Policy formulated in such a State is influenced by these groups and many a
times goes against the majority's will.
• Marxist Theory Of State: Marx claimed in his theory of State that the State is an institution
created to cater to the interests of the bourgeois (rich/upper middle class) and to perpetuate
their vested interests. State wears the mask of the protector of the proletariat/peasants/poor
but actually has a different face , that of catering only to the bourgeois.
Public policy formed in such a State will be coercive towards the proletariat and will be
pleasing to the bourgeois or the dominant group.

i) Neo-Marxist or new-Marxist theory of State: Gramsci through his phrase " Ideological
hegemony" states that Bourgeois does not only use the State for its vested interests but also
uses other instruments like education,religion,etc to do the same. Public policy formulation in
such a State tries to take care of religion,culture,education,etc. through public policy to
perpetuate the bourgeois interest.

ii) Contemporary Marxist theory of State: Miliband and Poulantzas challenged the two class
model of Marx and stated that even the bourgeois class consist of different levels.
• Miliband argued that the State will formulate policies that act like an instrument to serve the
interests of business class and will also serve the poor and vulnerable but under the aegis of
the business class.
• That is why Miliband is also called as an instrumentalist.

Administrative World Page 287

 PAPER 01

• Poulantzas states that the role of the State is the outcome of the balance of the power of the
society.
• the public policy formulated in such a State arrangement is influenced by the balance of power
in the society. Thus it is a structure that is formed on the basis of benefit of both opposing
factors. Thus,he is also called the Structuralist.
• Leviathan State: State is all powerful and having all potentialities and is all encompassing.
Leviathan means Gigantic and powerful and was coined and theorised by Thomas Hobbes.
• This state has two sides - Demand and Supply
Demand side refers to the demands of the society brought about by the big state and supply
side refers to initiation of the State to become a big State.
• Public Policy formulation in this kind of a State relates to all areas including developmental
and non developmental. People get a chance to voice their view (demand side) and State on its
own brings public policy which it feels is beneficial for people(supply side of State).
• Patriarchal State: It is a feminist view of State as they believe that the State is exploitative
towards females and justifies male values and orients towards males.
It has two approaches to it - Radical and Liberal Feminism
i. Radical feminism: These are radicalists and revolutionary ideas and do not believe in reform or
gradual change. They believe in confronting the State and demanding their rights at the very
moment.
ii. Liberal feminism: This view believes in gradual reform and states that the traditional sphere is
believed to be for females and the public sphere is believed to be for males and the State
supports this imbalance. However, they believe in taking one step at a time to rectify the
gender imbalance in both sectors

TYPOLOGIES OF STATE / ROLE OF STATE & PUBLIC POLICY FORMULATION IN

THEM
i. Minimalist State: Believes in Laissez Faire "leave us alone" policy where state takes up only
regulatory role and a non-development role.
Public policy here will be regulative, facilitating (New Right Philosophy).
ii. Developmental State: It does allow private players in the public field but the State is proactive
in developmental activities and there is private public partnership to achieve the same.
Public policy here is very detailed and gives a clear explanation of each issue
iii. Social Democratic State: Here the State focuses on equity instead of economy and democratic
methods are used to achieve the same.
Public policy here is socially oriented.
iv. Collectivised State: Private sector is majorly side-lined and the economic planning and
development is centralised and in the State's hands.
Public Policy here will do the same and enforce the principles the State follows.
v. Totalitarian State: Here every aspect of society is centralised and controlled by the State totally
like education, culture, religion, etc.
Public policy here is made on every aspect and the State performs all the functions alone.

Administrative World Page 288

 PAPER 01

Administrative World Page 289

 PAPER 01

Administrative World Page 290

 PAPER 01

Administrative Improvement
• Administrative improvement is a dynamic process.
• Reforms, innovations and reorganisation are inherent in any administrative process.
• Paul Appleby suggested 2 basic types of changes in administration
– Constant:- adjustment to changing situations
– Episodic:- reorganisation.
• Reform means eradication of abuses in the existing system.
• Reorganisation means reconstructing the existing system in the light of needs and new
demands
• Change means renovation to suit the environment.
• Administrative development needs to be distinguished from administrative reform.
Need For Change
• Technological progress and Industrialisation
• Change in status of country and Complex nature of govt activities.
• Emphasis on development

O & M (Organisation & Method)

• it is originated from pioneers of Scientific management (Taylor & Gilbreth)
• It mainly stands for Organisation & method
• It aims at improving internal structure of organisation.
• According to Milward:- “the usual functions of O&M are – the examination of structure of the
organisation under review & studying of administrative and clerical methods, official
mechanisation and equipment, office layout & working conditions.”
• The idea developed during the second world war.

Functions
• Comprehensive review of departments
• Planning new activities
• Research in O&M techniques
• Training in O & M officials and employees
• Coordinating the work of different O & M units in govt.
• Studying problems of common interest to different units of govt.
• To undertake publications of O & M journals, books and other materials.
• To train personnel for the work of O & M.
• To recommend better method of maintaining and preserving records.

EVOLUTION OF O AND M
• 17th and 18th Century
o The Cameralists introduced and described goals and tactics to students in the Germany and
Austria.
o Concepts like bounded rationality, control, comparison between dues and actuals were
taught.

Administrative World Page 291

 PAPER 01

o When industry and business began emerging in the eighteenth century in the private
sector, O and M was applied to improve the organization’s efficiency
• 1930s
o Business and industry applied O and M techniques but otherwise not much was done till
the scientific management movement was initiated by Frederick Taylor and Galbraith.
o Various techniques like work-study and time study were introduced to improve the
administrative efficiency.
o A whole new set of methods were experimented and tried in government organizations
also to increase efficiency.
• 1947
o The Officer’s Shortage Committee recommended the formation of a special organization
for the purpose under a secretary.
• 1951
o Report on public administration presented to the Planning Commission and said, ‘the
lesson of the last four years is that an expert, coordinated and continuous body must exist
which plans, supervises and constantly adapts to changing needs all the arrangements
necessary for proper training, proper organization and proper methods of work’.

1952 - Paul Appleby and O and M

• Paul Henson Appleby (1891–1963) visited India in 1952, was a scholar from University of California
and researched on Indian administration.
He recommended the following in his first report in 1952:
• Creation of O and M: Appleby recommended setting up of an O and M or a public administrative
office under a minister with strong government backing, to continuously study improvement of
governmental structures and administrative methods and manners.
• Establishment of The Indian Institute of Public Administration: He recommended that an Indian
Institute of Public Administration must be sponsored by the government to provide a forum for
discussion among academicians, practitioners and other interested. It would also publish a journal.
• Public Administration Courses: He suggested that public administration graduates must be
absorbed automatically into the public service every year. However, this recommendation could
not be accepted till today.
• Simplification in Supervision: Appleby recommended that supervision over community projects
must be simple by entrusting of power to one head instead of the Planning Commission. Reduction
in the advisory committees and boards at all level with a simple channel of responsibility.
• Reducing Interministerial Reviews and Involvements: He stressed the need and gave the detailed
steps to reduce interministerial involvements and reviews. The officials must be encouraged to
take responsibility and not to pass the buck to improve speed and efficiency in work.
• Hierarchies: Hierarchies must have a more truly pyramidal form with more executive at most levels
but this means more officials and less clerks. This might lead to complex hierarchical structures.
• Flexible Recruitment: Appleby recommended that the elimination of fixed cadres and advocated
recruiting flexibility. He also suggested that all distinctive classifications such as cadres, officers,
clerks must be abandoned but he did not give any specific details.
• Simple Language: All procedural rules and manuals must be put in a simple language for better
understanding.
• Tax Collection: This report of Appleby came out in 1952 when India had a small number of tax
officials soon after the independence. He had recommended to have a prompt system of tax

Administrative World Page 292

 PAPER 01

collection but that is not applicable any more due to the online portals that are up and running. The
taxes are paid promptly.
• Methods of Checking: Appleby stressed on streamlining and introducing adequate measures of
checking of the performance of official action both during and after it. He preferred simultaneous
checks instead of post audit of the process and outcomes, This helps to identify solutions as
progress happens. The following could be done to make a process better.
o I - Implement the chosen solution (can be done as a pilot basis to begin with).
o M - Maintain and monitor the implemented solution to ensure what was intended to be
implemented has been and to ensure that benefits are achieved. All these steps involve
various techniques

How it is applied
• O & M can provide for the approach to almost any project.
• Typically the basic steps that have to be followed can be summarised as “SREDIM”
S:- select the area/process that requires attention
R:- record the current situation
E:- examine and analyse the existing situations
D:- develop, design and evaluate alternative solutions and recommend improvement opportunities
I:- implement the chosen solution
M:- maintain and monitor implemented solution.

Nature
• O & M should not be regarded as a substitute for all round management improvement.
• This should be seen as a service to govt. organisations.
• Role of O & M units is essentially advisory.
• O & M should be recognised as a work improvement study and not a fault finding mission.
• O & M function should never be presented as something mysterious and too technical.

Advantages
• It leads to the improvement of the methods of operations, the organisation as a whole and its
administration.
• It provide a machinery for frequent review of govt. organisation and methods.
• Introduction of new technique leads to higher productivity.
• There is greater security as many kinds of wastage, fraud are detected and prevented.
• There is cost reduction and enhancement of prestige of organisation.

Disadvantages
• It is itself a costly affairs
• Small organisations cannot afford to have a separate department for O & M though service of
experts in the line can be obtained on contract basis.

O & M in India
• In India, the O and M division was set-up in the Cabinet Secretariat in 1954 as a follow-up on one of
the recommendations made by Paul H. Appleby.
• A Department of Administrative Reforms was set-up in 1964 and the O and M division was
transferred to it.
• After a long journey, the division has come under the Ministry of Personal, Public Grievances and
Pensions placed under the overall charge of the Prime Minister assisted by a Minster of State.

Administrative World Page 293

 PAPER 01

Functions of O and M Division

• Formulation and implementation of common office procedures.

• Publication and updating of the Central Secretariat Manual of Office Procedure (CSMOP).
• Aiding and advising the state governments on O and M aspects.
• Quality management in government including laying down norms and standards for processes.
• Implementation of the plan scheme of modernization of government offices.
• Any other subject allocated by Secretary.

The procedures prescribed in the Central Secretariat Manual of Office Procedure (CSMOP), attempt to
provide ways to balance speed, quality, transparency and propriety. In an ever-evolving and dynamic
context that Indian polity offers, this balance cannot be rigidly or permanently fixed. Every rule and
step in the procedure must serve a definite purpose.

The First Edition of the CSMOP was published in March, 1955 and since then it has been updated from
time to time to take care of the changing scenario. The 13th Edition of the CSMOP came in the month
of September, 2010. This edition of the CSMOP was considered as too voluminous and hence difficult
to read through. The new CSMOP has been prepared with a view to remove redundancy, duplication
and also doing away with a number material which can easily be taken from the various Government
websites. It is expected that the CSMOP will help Government officials to perform their functions in a
systematic and faster manner.

Administrative World Page 294

 PAPER 01

Work Study and Work Management

Work Study
• Work study is the application of detailed analysis higher productivity.
• Its objectives are to discover through systematic methods and a scientific approach, simpler,
easier, more effective and more economical way of work activity.
• Is short, objective of work study is to improve productivity of men, machines and materials.
• It is to determine the best method of performing each operation and to eliminate wastage so
that production increases with less fatigue.
• Typically work study assignment involve 3 main elements
– Method study
– Work measurement
– Organisation analysis.
Role of Work study
• To standardise the method of doing a work.
• To minimise the unit cost of production.
• To determine the standard time for doing a task.
• To minimise the material movement and operators movements.
• To eliminate unnecessary human movements.
• To utilise facilities & resources most effectively.
• To a systematic investigation of all factors.

Method study
• According to ILO, method study is “the systematic recording, analysis and critical examination
of existing and proposed way of doing work and development and application of easier and
more productive methods.
• Method study is undertaken to improve ‘how’ of doing work not only in individual operations
but also in processes, procedures and systems.
• The techniques of method study comprises 3 elements:-
– To reveal and analyse the true facts concerning the situation.
– To examine these facts critically
– To develop best possible answer under the circumstances.
Following steps are observed in procedure:-
1. Selection of problem:- select such problem whose investigation will yield result.
2. Recording of facts:- success of technique depend upon recording of facts as they form basis for
examination.
3. Examination:- recorded data are subjected to examination and analysis.
4. Develop:- aim is to identify possible actions for improvement.
5. Submit:- proposal should be submitted to higher management.
6. Install:- the success of any method study project is realised when actual change is made on the
ground.

Administrative World Page 295

 PAPER 01

7. Follow up:- after installation, it is necessary to find out if expected benefits are being
maintained.

Work measurement
• It is sometime called performance evaluation or performance analysis.
• Its purpose is to provide administration with the means for establishing equitable relationships
between work-output and manpower.
• Work measurement is concerned with the determination of amount of time required to
perform a unit of work.
• It is very important for promoting productivity.
Objectives
• To compare the times of performance by alternatives methods
• To enable realistic schedule of work to be prepared.
• To arrive at a realistic and fair incentive scheme.
• To minimise human effort.

Technique of work measurement

• Time study
• Work sampling
• Pre-determined motion time system
• Analytical estimating.
Advantages
• Adequate matching o load of work with manpower needed for efficient disposal.
• Development of More rational standard
• It improves employees’ morale.
• Determination of time standard which is used as basis for wage incentive plan

Organisation Analysis
• Organisation analysis is must to keep an organisation in good shape.
• It helps understand how a single improvement in the work at hand will affect the entire
organisation.
• The procedure used for general administrative survey work is applicable to organisation
analysis.

Work Management
• Work management is a recent term that has come to means simply the management of work in an
organization.
• Scientific Management Approach (SMA) started the trend of finding ways and methods to improve
the work methods resulting in an increase in organizational productivity and efficiency.
• The advancement of technology in the information sector and the computer software’s have
changed the whole sphere of work management.
• Work management includes the integrated processes and procedures that help the organisation
schedule work more efficiently, meet consumer’s needs, utilise assets and evaluate performance.

Work management has been a part of work culture since the beginning of the Industrial Age.

• This is not to undermine the ancient work methods that businesses and traders used in the older
days.

Administrative World Page 296

 PAPER 01

• However, the times changed with the advent of factories, machines, offices and then large
corporations along with the digital revolution.
• The organizations use work management to improve their performance.
• Work management is a set of software products and services that apply workflow structure to the
movement of information as well as to the interaction of business process and human worker
process that generate the information.
• Work management streamlines and transforms crucial business processes and thus can improve
results and performance.
• Thus, it implies that the main objective of work management is performance improvement until
the recent work management software for organizations came to existence, there was a manual
system of office management

The important sub techniques are:-

• Task based design:- it is the detailed outline of the overall work of the organisation in the form
of a simple work chart.
• Work queue:- substantially arranging various activities within a particular task.
• Work management groups:- it is the group in charge of outlining tasks, queuing the work,
performance evaluation, setting standard etc.

Administrative World Page 297

 PAPER 01

E-Governance and Information Technology

E-governance and information technology are linked very strongly. The world has become a global
village with strong linkages in political, social and economic spheres. Globalization driven information
technology has improved the indices of Good Governance the world over. The concept of governance is
not a new one. It has been applied in the corporate, national and local governance.

• Information and Communication Technology (ICT) have facilitated the reinvention of

governments and prepared them to serve the needs of a diverse society.
• India has been at the forefront of the IT revolution
• E-governance is the application of ICT to the processes of government functioning for good
governance
• e-governance is the application of ICT in government functioning to bring in SMART
governance implying: simple, moral, accountable, responsive and transparent governance.
• According to Traunmuller and Lenk, e-governance is a global phenomenon today and it is the
most recent paradigm in public administration.
• The UN developed Sustainable Development Goals (SDGs) for sustainable development, which
are a collection of 17 SDGs and 167 targets in 2015 terming them as, ‘Transforming Our World:
The 2030 Agenda’.
• India was one of the 193 countries who pledged to the 2030 Agenda which came into effect in
January, 2016.
• The SDGs can be implemented to achieve integration of policies and delivery of public services
through the tool of E-Governance.
• It promotes accountability and transparency in government institutions by adopting best
practices like easy accessibility to data and involving citizens in decision-making.
• A UN survey describes E-governance as a powerful tool to achieve global sustainability goals. It
facilitates and integrates policies and public service by promoting accountable and transparent
institutions, such as through open data and participatory decision-making.
• It has the potential to implement the 17 SDGs and their 167 targets.
• The Information and Communication Technologies (ICTs) can help turn the public sector into an
instrument of sustainable development, efficient service-delivery coupled with social equity
and policies to ensure that all citizens can access quality services.
• The 2016 UN E-government survey is the only report that assesses the E-government
development status of all 193 Member States of the UN.
• India lags behind after Europe and the Americas.
• The best plausible solution to address the problems of governance and to assimilate the
disarrayed elements of governance was E-governance.
• ICT emerged as the best alternative to the slack and slow administrations all over the world
though till today, it is more of a technological initiative which is made up of a complicated
relationship between the stakeholders’ commitment, structured developmental processes and
sufficient infrastructural resources.
• The ICT capability is humungous but has not been exploited in the developing countries.
• E-governance has different meaning in different countries.
• Electronic government or e-governance means the delivery of services efficiently and
effectively on time.
• It also means making information available to people at the click of the mouse to enable
governments to interact with the citizens.

Administrative World Page 298

 PAPER 01

MODELS OF E-GOVERNANCE
• Prof. Dr. Arie Halachmi in his paper, namely, ‘ E-Government Theory and Practice: The Evidence
from Tennessee (USA),’ has given five important models of e-governance
• The Broadcasting Model:- The model is based on dissemination/broadcasting of useful
governance information. It provide people with correct information
• The Critical Flow Model:- The model is based on disseminating/channelling information of
critical value to the targeted audience or into the wider public domain
• The Comparative Analysis Model- the model continuously assimilates best practices in the
areas of governance and then uses them as benchmarks to evaluate other governance
practices
• The E-Advocacy/Mobilisation and Lobbying Model:- This model helps the global civil society to
impact on global decision-making processes.
• The Interactive-Service Model:- Under this model, the various services offered by the
Government become directly available to its citizens in an interactive manner
Significance
• easy & speedier communication.
• Cost reduction
• Transparency in govt. activities.
• Accountable government.
• More informed citizenry.
• Improved Public service delivery.
Disadvantages
• Loss of people to people interaction.
• Implementation of e-governance does have certain constraints. E.g. literacy, access to
technology, privacy, cyber security etc.
Challenges
• High initial cost for setting up e-governance
• People resistance to change
• Digital divide
• Privacy & security concern.

E-governance and Good Governance

Information Technology (IT) promotes Good Governance in three basic ways:
1. By increasing transparency, information, and accountability.
2. By facilitating accurate decision-making and public participation.
3. By enhancing the efficient delivery of public goods and services.

E-governance Initiative In India

• Direct cash transfer
• Adhar enabled payment system
• Digital India program.
• MyGov citizen portal
• E-Kranti scheme
• M-governance:- it is the use of mobile or wireless to improve governance service and
information. It complements e-governance.

Administrative World Page 299

 PAPER 01

Traditional vs. Electronic Administration

Traditional administration E-administration
• Unwieldy paper files • Computer based files
• Hierarchical authority • Networked power
• Wielding power through hiding • Empowerment by sharing information
information • Instant access
• Delayed access • IT savvy
• Fear of unknown • Continuous improvement
• Status-quo oriented

Administrative World Page 300

 PAPER 01

Management Information Systems (MIS)

• In the present complex and unpredictable environment in which the modern manager has to
operate, management of progressive organizations in recent years have stated reaching out for
new technique of improvement in the organizational effectiveness and efficiency.
• New approaches in this direction have been attempted in several developed countries.
• One of these approaches is called ‘Management Information System’ (MIS), which assists
management in searching for such quantitative information and other information by which,
management can analyse the proposed alternative, administrative actions and choose one as its
decision.
• Modern management functions are therefore, information oriented and management by ‘hunch’ is
replaced by MIS.
• MIS supplies such information through reports so that managers and administrators become
effective executives
• MIS is an information system used for decision making.
• Peter Keen defines MIS as ‘the effective design, delivery and use of information systems in
organisations.’

• It broadly refers to a computer based system that provide managers with the tools to organise
evaluate and efficiently manager departments within an organisation.
• It is an integrated system of IT where interaction between different units of organisation is enabled
for better and efficient management practices.
• It helps automation.
• MIS helps in decentralisation, democratization and participation.
• The purpose of an MIS is improved decision-making by providing up-to-date, accurate data on a
variety of organisational assets.
• MIS collects the data, stores it, and makes it accessible to managers who want to analyse the data.

Management in general terms is the activity which involves planning, organizing and controlling of
human and other resources to achieve some predetermined organizational goals. Information is the
second element in the term MIS.
Information is an important valuable community required by management in order to plan and control
all management activity effectively.
• In general terms, information is processed data for making decisions.
• Data is defined as raw material and may take the form of a punch card, punched paper tape and
writing of any form which have facts in isolation that enter the processing system as inputs.
Processed data is called information.
• Basically, information is a symbolic representation of real world (money, manpower, material,
machines and markets).
• Knowledge received from various sources including literature, intelligence, views or advice
communicated by words or advice communicated by word or writing, derived from the consensus
or operation of the intellectual faculties, advice or counsel, which can be studied, analysed,
organized and stored for future references and summarized.
• Information is very important in management and has two major roles, which are:

Administrative World Page 301

 PAPER 01

o To impel the executives to take action.

o To provide factual basis for taking such action.
If information is to play these roles effectively, it should be timely, with adequate and accurate
representation of the real world.

Components of MIS
There are five components of MIS:
• Hardware- the physical equipment used in computing;
• Software- the set of instructions that controls the hardware;
• People- in the early days of computers, programmers, design analysts and a few external users
were directly involved in MIS. Today, almost everyone in the organisation is involved with the
information system;
• Procedures- are instructions that help people use the systems. They include items such as,
users manuals; and
• Databases- are collections of related data that can be retrieved easily and processed by the
computers.

Significance of MIS
• MIS has great utility to management as it adopts to all management problems in various degrees.
• It provides the organization the exercise of management.
• It helps in developing planning premises, that is, critical planning assumptions.
• It supplies environmental information with respect to political, social and technical situation.
• It assists in organizing by removing lag between organizing change and information system.
• In the sphere of control, it helps in establishing standards, evaluating performance.
• As a system, it integrates the task of decision taking, planning and controlling with a view to bring
coordination.

Limitations of MIS
• The main objective of MIS is better management but it cannot act for the management.
• It can simply shape thoughts and assist in the evaluation of situation.
• As a concept, it is oversold and yet it is underutilized.
• In giving justice to the system, it must be installed with substantial commitment of time and
money.
• The cost involved in the system should be weighed with the value of information component.
• Cost is a big factor in implementing MIS along with the capacity-building in the organization.
• The system is set in a fixed format with little room for flexibility.
• In the corporate sector, MIS is applied as customer information system, account information
system or market information system.
• However, it ignores the non-quantitative factors which might not be an issue in the private sector
but the public service delivery is not possible without it.
• Another problem that is faced in implementing MIS is non-sharing culture of information.
• MIS faces issues if it cannot update its system according to the rapid changes in the socio-economic
fabric in the society

Administrative World Page 302

 PAPER 01

Network Analysis
• Information is required to follow a path making a flow through communication otherwise it
hoarded information would not of any use to anyone.
• Organizations would not be able to work without information and its analysis.
• In a workplace, all activities and tasks are designed to reach the objective of a project.
• Hence, the events and activities make up a network.
• The organizations, public or private employ techniques of project management to follow a path of
identifying the jobs, events or activities and then arranging them in a logical sequence graphically.
• The basic concepts and procedures used to build a network is done by analysing with the
information the project managers have to plan and control.
• Network analysis and its techniques were created to cater to the needs of western industry and
defence departments to plan schedule and control projects.

NETWORK ANALYSIS
• It is a method for studying communication and socio-technical networks within a formal
organisation.
• It refers to a number of techniques for the planning and control of complex projects.
• It is successful technique frequently used to plan, monitor and control the projects involving
thousands of activities.
• The two most frequently used forms of network analysis are:-
1. Programme evaluation and review technique (PERT)
2. Critical path method (CPM)

Types of Network
Networks can be of two types based on their focus on event or activity. They are described here in
brief:
1. Event-Oriented Network: It is concerned with identification of specific events instead of activities.
The top management network is usually event oriented known as ‘Program Evaluation Review
Technique’ and popularly known as PERT.
2. Activity-Oriented Network: It describes each activity represented on the network diagram. It helps
the personnel who have to carry out the specific activities. Usually, the lower management and the
supervisory level are activity-oriented called as the ‘Critical Path Method’ and commonly known as
‘CPM’.
Hence, the two management techniques PERT and CPM make up the network analysis

PERT
• The PERT was developed by the ‘Navy’s Special Projects’ office with the help of Booz Allen
Hamilton in 1957 to develop the ‘Polaris Weapon System’.
• PERT originally focused only up on time variables but it was not long before it became possible to
incorporate cost variables as well.

Administrative World Page 303

 PAPER 01

• In today’s scenario of a digitalized world, there are software packages and algorithms to implement
PERT instead of its earlier status of a statistical tool and method to analyse and represent the tasks
involved in completing a given project
• Program evaluation and review technique is a project management tool used to schedule, organise
and coordinate tasks within a project.

• It is basically a method to analyse the tasks involved in completing a given project.

• PERT is used when activity times are uncertain.
– Determine the duration of the project
– Decision making under risk
• It is probabilistic in nature (based on probability)

Steps in the PERT Planning Process

1. Identification of Activities and Milestones: The activities are identified and milestones, the ‘events’
are set to mark the beginning and end of the activity or activities.
2. Sequence of Activities: It must be decided which activity will precede which one to fix the logic
sequence in which the activities will be carried out.
3. Network Diagram: The network diagram is an important step to depict the sequence of serial and
parallel activities.
4. Activity Time Estimates: The estimated times of the activities are calculated in any consistent unit
of time. They are:
a. Optimistic Time (OT): It is the shortest time that an activity might take to be completed. It
is named as optimistic because that is what a manager perceives presumably but might be
unrealistic.
b. Most-likely Time (MT): This is the completion time having the highest probability, closest to
the estimation errors in reality.
c. Pessimistic Time (PT): As the term suggests, it is the longest expected time than an activity
might take.
5. Critical Path: The times for the activities in each sequence in the network diagram and the longest
path is determined as the critical path. It finally calculates the actual total time needed to complete
a project. If there is some slowdown, the non-critical path activity can be given less priority and
delayed but the project is achieved on time. The amount of time that a non-critical path is delayed
for is called the ‘Slack Time’.
6. Monitoring: The PERT chart is continuously updated and adjustments are made during the course
the project. Any requisition of some additional resources are considered and provided.

Advantages
• Facilitates identifications of the critical path
• Facilitate identification of
– Start date
– End date
– Slack time for each activity
• Provide potentially reduced project duration

Disadvantages
• Hundreds or thousands of activities and individual dependency relationships.
• Not easily scalable for smaller projects
• The network chart tends to be large.

Administrative World Page 304

 PAPER 01

CPM
• CPM is a special application of network analysis.
• CPM aims at the determination of the time to complete a project and the important activities
on which a manager shall focus attention.
• Developed in late 1950s by Morgan R. Walker of DuPont and James E. Kelly of Remington Rand
in the USA.
• The CPM was been designed by DuPont to deal with the issue of shutting down chemical plants
for maintenance and then again starting the plant after maintenance

Procedure
• Consider all the paths in a project.
• For each path, calculate the time of execution.
• The path with the largest time is called the critical path and the activities along this path are
called critical activities.

Main steps involved in CPM

1. Definition of the project comprising of activities with a single start and a single finish activity.
2. There must be development of the relationships among the activities specifying their sequence.
3. Drawing of a network connecting all activities, denoted by a unique number for the events. Dummy
arrows are also used in case they are need to avoid but using the same number.
4. Each activity must have the time and/or cost estimate.
5. The critical path is calculated as the longest time path through the network.
6. Use the network to help plan, schedule, monitor and control the path

Significance of CPM
• It helps in scheduling, monitoring and controlling projects.
• Project manager can determine actual dates for each activity.
• Display dependencies to help scheduling.
• Evaluate which activities can run parallel to each other.
• Widely used in industry.
• CPM determines the project duration, which minimised the sum of direct and indirect costs.

PERT & CPM - Similarities

• Both follow the same steps and use network diagrams
• Both are used to plan the scheduling of individual activities that make up a project.
• They can be used to determine the earliest start and finish times for each activity.

PERT & CPM - Differences

• PERT is probabilistic whereas CPM is deterministic
• In CPM, estimates of activity durations are based on historical data
• In PERT, estimates are uncertain.

Administrative World Page 305

 PAPER 01

Administrative World Page 306

 PAPER 01

Administrative World Page 307

 PAPER 01

Monetary Policy
• Monetary Policy (MP) is how a central bank or other agency governs the money supply and interest
rates in an economy in order to influence output employment and price.
• Monetary Policy can be broadly classified or either expansionary or contractionary.
• Monetary Policies are implemented through different tools, including adjustment of interest rates,
purchase and sale of Government securities and changing the amount of cash circulating in
economy.
Objective
• Management of inflation
• Maintenance of currency-exchange rates
• Employment

Expansionary MP:- more money in market.

• It is a monetary policy that aims to increase money supply in the economy by decreasing
interest rates, purchasing govt securities & lowering reserve requirements for banks.
• It lowers unemployment and stimulates business activities
• Goals is to fuel economic growth
• May lead to higher inflation.
Contractionary MP:- to decrease money supply in market.
• Raising interest rates, selling govt securities and increasing reserve requirement
• To control inflation.

Instruments of Monetary Policy

Qualitative as well as quantitative approaches are used as the instruments of monetary policy.

Quantitative Approach
• The Quantitative Approach focuses on influencing and controlling the quantity of credit through
Bank Rates, Reserve requirements and Market operations.
• Bank Rate or the discount rate is the minimum rate at which the Reserve Bank of India provides
financial accommodation to commercial banks, positively or negatively, which subsequently affects
the demand for credit influencing the money supply.
• A Central Bank, the RBI in case of India, also tends or seeks to influence the economy of the country
by increasing or decreasing the money supply through purchase and sales of gold, foreign
exchange, government securities and company shares.
• Maintaining a certain percentage of their deposits in the form of balances with RBI is a mandatory
requirement for commercial banks which may vary as per the discretion of RBI (such decisions
taken within certain framework with the help of market analysis) hence affecting credit capacity of
commercial banks subsequently effecting money supply.

Qualitative Approach
• A Qualitative Approach is utilised to influence the direction of the credit in the economy rather
than to control the credit.
• It is imperative to suggest and understand that all the methods and approaches are highly
interrelated and sometimes interdependent.

Administrative World Page 308

 PAPER 01

• It is only a matter of choice (depending upon the indicators of economy) to effectively start the
process through/from one of the points and to steer it through all others.

Fiscal Policy
• Term “fiscal” has been derived from Greek word “fisc” meaning treasury of public borrowing.
• Fiscal policy is that part of economic policy which is mainly concerned with revenue and
expenditure of government.
• It aims at using its 3 major instruments as balancing factors in the development of economy.
– Taxes
– Public expenditure
– Public debt
• According to Premchand:- “formulation of fiscal policy presumes the identification and clear
recognition of institutional aspect of govt finance such as tax systems, their incidence and
shifting, budget formulation and execution & financial management. “
• Monetary Policy Helps in keeping money supply and economy of a nation stable whereas fiscal
policy is more involved in development and infrastructural work and policy making and budget
enactment.

Objectives of Fiscal Policy

I. To increase the rate of capital formation – for development & improved living standard.
II. Reduction in economic inequalities of income and wealth.
III. Balanced growth – across income groups 7 regions.
IV. Economic and social development.
V. Control of inflation
VI. Progressive tax structure.
Fiscal policy has to be so formulated that adequate resources are available to govt for funding social
expenditure which benefits the poor.
• Monetised deficit:- it is the increase in the net RBI credit to the central govt. it is the part of
fiscal policy which leads to increase in money supply.
• Parkinson Law:- this gives Cyril Parkinson’s satirical view of the effectiveness of human being
and their organisation.
• The law hold that “work expands so as to fill the time available for its completion.” It was
then formulated to apply to govt red tape & bureaucratic inefficiency in Britain.

Administrative World Page 309

 PAPER 01

Principles of Financial Administration

• Financial Administration is as old as organised governments all over the world.
• But the Industrial Revolution and the new socio-economic forces which it has unfolded have given
new meaning and content to the Financial Administration.
• Primarily, the system of Financial Administration is moulded within the framework of legislative
control over the executive.
• The format of presentation, the system of authorisation, accountability and audit constitute
important aspects of the accountability system in all Parliamentary forms of Government
• Financial Administration gained importance after the advent of industrial revolution as the
governments had to perform more functions.
• The role of governments has changed from levying taxes to providing social welfare.
• The main objectives of Financial Administration in the present day relate to ensuring transparency,
accountability, control, economy, efficiency, reduction of corruption and a good taxation system.
• These objectives ensure good governance and are overlapping the worldwide indicators of good
governance.
• So, in a way, it can be safely said that good Financial Administration ascertains Good Governance.
• The objectives of Financial Administration can be achieved through wisely devised canons.
• To achieve the objectives of Financial Administration, it is essential to formulate and follow some
principles.
• The growing activities of the state have also widened the scope of public finance.
• Several factors have contributed to the increasing importance of the administrative aspects of
public finance in modern times.
• The consequent growth of public receipts and expenditures, the democratisation of political
institutions, the establishment of parliamentary control over the public purse and finally the recent
tendency of applying a more simplified and rationalised procedure have led to the realisation of the
significance of Financial Administration.
• A principle is timeless and objective.
• In other words, we recognise a principle when it is true for any context.

Principles -
1. Unity of Organisation:
 Unity of Organisation in simple terms means to have all the employees of an organisation
working towards the same goal established by it.
 A sound system of Financial Administration needs to be based on unity of organisation.
 The more unified different agencies of the government are and the more centralised the
responsibility of the hierarchy of officials, the more efficient is the administration.
2. Principle of Simplicity:
 According to this principle, Financial Administration must have the qualities of simplicity,
regularity and promptness.
 The old axiom, “simpler is better,” describes the Simplicity Principle.
 The more the attributes added to a principle or a procedure, the more the complexities.
Processes in an agency must be simple so that there can be smooth functioning.
 Since governments have a lot to deal with these days, complications arise in executing the
plans with respect to the vastness of information.

Administrative World Page 310

 PAPER 01

 A good example of this principle in India is the simplicity in processes that can be seen in
the ‘single window system’ to grant and sanction permits and licences where on-the-spot
fee remittance has been made the foundation to do business with ease.
 On the other hand, complex systems breed waste of time and delays resulting in lack of
efficiency.
3. Principle of Regularity:
 A uniform fixed principle is a necessity to have to have a sound Financial Administration.
 An organisation or a government agency can be managed well if there are desirable and
worthy regularities.
 A system must lay down regularities for the organisation to function on its own.
4. Principle of Compliance with the Legislature:
 This principle emphasises the importance of strict compliance with the will of the
Legislature.
 For the smooth working of the democratic system of the administration, it is essential that
in all financial matters compliance should be made in accordance with the law and for the
purpose and the manner as passed by the legislature.
5. The Principle of Stability and Balance:
 Financial Administration is characterised by technical expertise and hence cannot be
handled by unskilled and non-trained personnel.
 This character poses serious problems when there is a loss of specific trained personnel.
 Therefore, this principle calls upon financial organisations to develop capacity to withstand
losses of specific trained personnel without serious consequences to effectiveness and
efficiency.
 For this purpose, there is a need for an effective workforce
6. Principle of Control:
 There should be an effective and efficient control over all the stages of Financial
Administration.
 Such a control is exercised by the executive government normally through the Finance
Department or Treasury or the legislature through the Audit organisation which is
independent of the executive government.
 Further, such a control must be backed up by people who command great amount of
honesty, integrity and capability.
 The stability of the country, the continuity of policy, efficient execution of sanctioned plans
and careful handling of finance are in great measure due to the men of Services who by
their ability and experience are in an excellent position to put large schemes into
execution, and not only to the upper ranks of the Services but also the subordinate to
whom discretion in matters of detail must necessarily be given.
 Hence, this principle and practice of control will help eliminate all that is useless or
parasitic.
7. Principle of Promptness:
 A sound system of Financial Administration presupposes promptness in its functioning.
 A quick delivery system is required to have a continuous system of administration which is
lacking in India at present.
 Thus, the above given principles guide the general administration of the government and
other governmental organisations for specific purpose

Administrative World Page 311

 PAPER 01

Administrative World Page 312

 PAPER 01

Public Borrowing
• Total amount of money that has been borrowed by gotv.
• Budget deficit:- when govt spends more than it collects.
Richard Musgrave & Peggy Musgrave:-
“Public borrowing involves a withdrawal made in return for the govt’s promise to repay at a future
date and to pay interest at the interim.”
• Classical economist such as Adam Smith – condemned the concept of public borrowing.
• Great depression of 1929 – marked change in thinking.
• After 2nd world war  public borrowing came to occupy a prominent place in the budget of
govt.

Public Debt
• Modern fiscal policy endorses unbalanced government budgets for purposes of stimulating
economic growth and stabilising economy, its application leading to a growing public debt.
• Growth of public debt has been quite substantial in almost all developing economies in recent
years.
• Public debt in simple words means debt incurred by the government in mobilising savings of
the people in the form of loans, which are to be repaid at a future date with interest.
• Public debt can be both internal as well as external.

According to Richard Musgrave and Peggy Musgrave, "(Public) borrowing involves a withdrawal I made
in return for the government's promise to repay at a future date and to pay, interest at the interim".
• The concept of public borrowing as such was condemned earlier by classical economists like Hume
and Adam Smith who considered that it would compel the government to tax the public and hence
lead to disequilibrium in the economic system.
• Later the Great Depression of 1929 brought about a marked change in economic thinking of which
J.M. Keynes was the pioneer.
• It was felt that public debt would raise the national income, lead to effective demand in the
economy, increase the employment and output.
• Hence it was after the second world war that public borrowings came to occupy a prominent place
in the budgets of governments.

Causes for Public Borrowing.

• A considerable portion of the public debt is attributable to the sharp increases in government
outlays in public sector projects. Building up the economic infrastructure like railways, roads,
bridges, power plants etc. that provide the base for economic development, requires huge
investments which the government cannot finance just through taxation.
• Another reason for the growth in public debt is due to both the Central and state governments
lending significant amounts of capital funds to the private sector for investment in planned
development projects.
• Public borrowing is resorted to for meeting temporary as well as long-term deficits. It is required to
meet the current deficits in budget when the revenues are insufficient to meet the expenditure.
Also in times of war, or economic crisis, or other unexpected emergencies, the increase in
governmental activities result in increasing expenditure that make the government resort to public
borrowing. In recent years, factors-like increase in prices, enlargement of administrative services,

Administrative World Page 313

 PAPER 01

increasing expenditure on defence, wages and dearness allowances etc., have also contributed to
increase in public debt.

Classification of debt
Reproductive and Unproductive Debt
• A distinction is, often, drawn between 'reproductive debt' and dead weight debt or unproductive
debt.
• The former is a debt which is fully covered or balanced by the possession of assets of equal value.
• These debts are incurred generally for the construction of such capital assets which yield revenue
to the government.
• In case any debt is incurred to meet expenditure on irrigation, railways etc., the income derived
from the creation of such assets can be used to repay the debt.
• With regard to reproductive debt, the interest and sinking fund on it is normally paid out of income
derived by the public authority, from the ownership of its property or the conduct of its
enterprises.
• And here it is a good working rule that the debt should be repaid within the physical lifetime of the
corresponding asset.
• Unproductive or dead weight debt is that debt which is incurred to cover any Resource
Mobilisation budgetary deficits or for such purposes as do not yield any income to the government
in times of war for example.
• The interest and sinking fund, if any, on this type of debt must be obtained from some other source
of public income, generally from taxation and, since there is no corresponding asset created, there
is no rule regarding the period of repayment.

Voluntary and Compulsory Debt

• Public debts are incurred through public loans.
• There are two types of loans - voluntary and compulsory.
• Voluntary loans are those regarding which people are free to subscribe to government's securities
whenever they are floated.
• The chief advantage of a voluntary load, as compared with taxation is, that, in the case of former,
people are free, according to their circumstances and inclination, to subscribe as much or as little
as they please.
• Compulsory loan is a rarity in modern public finance, though, in emergencies like war, famine etc.,
government enforces borrowing through legal compulsion to secure required amount of funds.
• This is also resorted to at times to curb inflationary tendencies in the economy.
• With this purpose in view only the Government of lndia introduced the ‘compulsory Deposit
Scheme' in 1971.

Internal and External Debt

• Public debt may be internal or external.
• It is internal if subscribed by persons or institutions inside the country.
• An internal loan only involves transfers of wealth within the borrowing community which in this
case is the same as the lending community.
• In case of external loan, it involves, firstly, a transfer of wealth from the lending to the borrowing
community, when the loan is raised and secondly, a transfer in the reverse direction, when the
interest is paid or principal is repaid.

Administrative World Page 314

 PAPER 01

Long-term and Short-term

• Debt Public debt may either be for a long-term or for a short-term.
• This is a distinction of degree.
• The distinction often drawn between "funded" and "floating or unfunded" debt is roughly
equivalent to that between long and short-term debt.
• Funded or long-term debts are repayable after a year while unfunded debts are generally incurred
for a short-term and must be repaid within a year.
• It includes the treasury bills which are issued for a currency of ninety-one-days, ways and means
advances from the Reserve Bank of India (less than three months) etc.

Public Debt Management (PDM)

• Default:- it occurs when a borrower fails to meet its financial commitments
• Bankruptcy:- it exists when a borrower’s debt far exceeds its ability to meet obligation.
• PDM becomes a crucial responsibility of govt.
Elements of PDM
• Refunding:- it implies issue of new bonds & securities by govt in order to repay matured loans.
Burden of debt accumulated.
• Conversion:- it implies changing the existing loans before maturity into new loans at an
advantage. E.g. lowering interest rate.
• Surplus budget:- may be utilised for clearing public debts
• Sinking funds:- created by govt & it is gradually accumulated every year by setting aside a part
of current public revenue to be deposited in fund in such a way that it would be sufficient to
pay debt.

Budget
• In govt. money is blood.
• Government used a variety of means to fund the execution of public policy.
• Public finance is the raising by governemnt of revenue that are then expended to fund public
policies.
• The term ‘Budget’ is derived from the French word ‘Bougette’ meaning a leather bag or wallet
usef for carrying official papers.
• The Chancellor of the Exchequer in England used to carry his papers in a leather bag to the
House of Commons. He would open it to the place the papers containing the financial plan
before the House.
• So from that association budget came to mean papers containing financial proposals for the
year.

Evolution of Budgeting
• The development budget can be categorised in 7 periods:-
1) Traditional or line-item budgeting
2) Program/performance budgeting
3) Planning-planning-budgeting (PPBS)
4) Budgeting by objective
5) Zero base budgeting

Administrative World Page 315

 PAPER 01

6) Target base budgeting

7) Budgeting for results.
• The evolution of new budgeting formats is driven by evolving public opinion about the proper
role of govt.
• In each of our 7 budgeting thrust the idea of what a budget is could be, or should be, has
assumed a different cast.
• Nevertheless the essential meaning of “budget” has remained unaltered.
• Classical definition => “A budget is a series of goals with price tags attached”.
Line-Item Budgeting
• Traditional or conventional budgeting
• It present budget in terms of object wise classification
• Under this system, the amount granted should be spent on that item only.
• To prevent wastage, over-spending & misuse of money.
• It facilitate maximum control over public expenditure
• Also known as “incremental budgeting”.
Performance Budgeting
• It stress its focus on agency performance & measurement.
• This emphasises on purpose of expenditure rather than expenditure itself.
• In India it was introduced in 1968 on recommendation of ARC.
• It improve formulation of budget.
• It increase accountability of management.
• It renders performance audit more purposeful and effective.
Planning-Programming-Budgeting System (PPBS)
• PPBS notion has origin in industry.
• It is a system of resource allocation designed to improve govt efficiency and effectiveness by
establishing long range planning goals, analysing cost-benefits of alternative program and
articulating programs as budgetary & legislative proposal & long-term projections.
• It is concerned not only with inputs and outputs but also with effect and alternatives.
• It integrates the Planning, programming & budgeting process
Budgeting by Objective (BBO)
• In 1954, Peter Drucker wrote a book “The Practice Of Management” – which generally though
to be 1st expression of Management by Objective (MBO) concept.
• When used a budget system, MBO morphs into BBO.
• BBO may be defined as a process whereby resources are set through the participation of
organisation member in terms of result expected and resources are allocated according to the
degree to which organisational goals and objectives are met.
• BBO is concerned with inputs, outputs and effects but not necessarily with alternatives.
Zero Base Budgeting (ZBB)
• It is a rational system of budgeting
• Under this system, every scheme should be review critically and rejustified totally from zero
before being included in budget.
• Advantages
• It eliminates/minimise the low priority programmes
• It makes the high impact programmes to obtain more finance
• Reduces tax increase.
• It allocates the resources rationally.

Administrative World Page 316

 PAPER 01

• It can coexist on reasonably friendly terms with other budgetary concepts and process.

Target base budgeting

• It reflect new realities.
• Also known as fixed ceiling budgeting and top-down budgeting.
• It is a method of allocating resources to agencies in which agency spending limits or target are
set by elected chief executive of govt.
• Agency head are permitted to achieve goals in most efficient manner.

BUDGETARY PROCESS
• In India, the Union Budget is prepared by the Department of Economic Affairs of Ministry of
Finance
• According to Article 112 of the Indian Constitution, the President is responsible for presenting
the budget to the Lok Sabha.
• The annual financial statement takes into account a period of one financial year.
In parliament, the budget goes through 5 stages
• Presentation of budget with Finance Minister’s speech
• General discussion of the budget. After this, there is an adjournment of houses so that standing
committees scrutinises the demand for grants for a month.
• Voting on demand for grants in Lok Sabha
• Passing of appropriation bills
• Passing of Finance bills
This part will be covered in detail with Paper 2

Accounts

The term “Accounts” is defined as “Statements of facts relating to money or things having money
value”.

• Accounting means keeping a systematic record of financial transaction.

• In government, accounting provides information for the preparation of annual budgets.
• According to L.D. White, the primary functions of systematic accounts are:-
i. To make financial record
ii. To protect those handling funds
iii. To reveal the financial conditions of the organisation in all its branches.
iv. To facilitate necessary adjustments in the rates of expenditure
v. To aid in the making of audit.
• Francis Oakey defines the term as “Accounting is the science of producing promptly and
presetting clearly the facts relating to financial conditions and operations that are required as a
basis of management
• Accounting means maintaining a proper record of the finances of the organisation.
Maintenance of accounts is the function of the spending authorities or the executive. Proper

Administrative World Page 317

 PAPER 01

maintenance of accounts also show the legal use of funds, and on the basis of Account report,
the spending officers justify expenditure to the superiors.
• Through a proper system of accounting wrongful use of funds can be prevented. Accounting
has to ensure that funds have been legally used for the purpose for which the Parliament
sanctioned it.
• Accounts should furnish data regarding the financial operations and should also secure fidelity
on the part of spending authorities. The spending authorities should produce receipts or
vouchers concerning every penny which they spend.
• American Institute of Certified Public Accountants (AICPA) defines accounting as “the art of
recording, classifying and summarizing in a significant manner and in terms of money,
transactions and events, which are, in part at least, of a financial character and interpreting the
results thereof”.

Thus, Accounting has a dual function to perform:

• First is the determination of the fidelity of all officers who handle the fund.
• Second is the furnishing of information needed regarding financial condition and operation of
policy-determination and administrative purposes.

Objectives of Accounting
The objectives of accounting may differ from business to business depending upon their specific
requirements. However, the following are the general objectives of accounting.
1. To keep a systematic record.
2. To ascertain the results of the operation.
3. To ascertain the financial position of the business.
4. To portray the liquidity position.
5. To protect business properties.
6. To facilitate rational decision-making.
7. To satisfy the requirements of law.

Types of Accounting System

The important systems of accounting followed at present are:
1. Double-entry Book-keeping: It is the system of accounting in which every item of expenditure
is entered at two places. One entry remains with the operating service while another is sent to
the Accounts Office if there is a separate department of the Government or to the controlling
officer of the same service.
2. Cost Accounting: It is the determination of inclusive costs per unit. It may be applied in
production, e.g., the unit cost of commodity manufactured in a government factory. This
system is mostly made use of in the Public Works Department because this Department had a
reputation for extravagance.

Administrative World Page 318

 PAPER 01

By this system costs may be compared in a single institution or a single operation over
successive periods of time and the comparative costs of similar operations in different agencies
or in different jurisdictions may be determined.
3. Cash System: The cash system of accounts records transaction only when cash has been
actually received or disbursed, while the accrual system records transactions at the time of
commitment is made. Thus cash system disregards all operations of the actual type and seeks
to record only those operations in which an actual transfer of cash has taken place. It gives us
no information regarding the accrual of assets and liabilities but gives data regarding
liquidation alone. Government mostly make use of the cash accounting system because it is
simple.
4. Accrual Accounting System: It is that system of accounting by which the right to a receipt, or
the obligation to make a payment, is established or is technically called, accrues. Under this
system appropriate entry is made in the account books of all actions having for their result an
undertaking with the right to an asset or placing it under an obligation to pay. This system is
followed in France.

Advantages of Accounting
1. It helps in having complete record of business transactions.
2. It supplies meaningful information (profit or loss made by the business) about the financial
activities of the business to the owners and the managers.
3. It provides useful information for making economic decisions.
4. It facilitates comparative study of current year’s profit, sales, expenses etc. with those of the
previous years.
5. It supplies information useful in judging the management’s ability to utilise enterprise resources
effectively in achieving primary enterprise goals.
6. It provides users with factual and interpretive information about transactions and other events
which are useful for predicting, comparing and evaluating the enterprise’s earning power.
7. It helps in complying with certain legal formalities like filing of income tax and sales tax returns.
Properly maintained accounts facilitates the correct assessment of taxes.

Limitations of Accounting
1. Accounting is historical in nature as it does not reflect the current financial position or worth of a
business.
2. Transactions of non-monetary nature do not find place in accounting. Accounting is limited to
monetary transactions only. It excludes qualitative elements like management, reputation,
employee morale, labour strike and such matters.
3. Facts recorded in financial statements are greatly influenced by accounting conventions and
personal judgements of the Accountant or Management. Valuation of inventory, provision for

Administrative World Page 319

 PAPER 01

doubtful debts and assumption about useful life of an asset may, therefore, differ from one
business house to another.
4. Accounting principles are not static or unchanging. Alternative accounting procedures are often
equally acceptable. Therefore, accounting statements do not always present comparable data.
5. Cost concept is found in accounting. Price changes are not considered. Money value is bound to
change often from time to time. This is a strong limitation of accounting.
6. Accounting statements do not show the impact of inflation.
7. Accounting statements do not reflect increase in those net asset values that are not considered
realised.

Audit
• Audit is an important means of legislative control over financial administration.
• It is a part of external control over administration.
• Audit is an examination of the accounts in order to discover and report to the legislature the
unauthorised, illegal or irregular expenditure and unsound financial practices on the part of
administration.
• An audit is an unbiased examination and evaluation of the financial statements of an
organisation.
• Its objectives is to see that the expenditure incurred with the sanctions of competent
authority.
• It can be pre-audit or post-audit.
– Pre-audit ( if the audit occurs before the money is spent)
– Post-audit (If the audit occurs after the money is spent)

STATUTORY AND INTERNAL AUDIT

Statutory Audit
• Statutory audit refers to the audit conducted by the Comptroller and Auditor General, through the
agency of the Indian Audit and Accounts Department.
• As per the Constitution as well as by the CAG (DPC) Act, 1971, it is the function of the Comptroller
and Auditor General to
o audit all expenditure from the Consolidated Fund of India of the Union, of each State and
of each Union Territory, having a Legislative Assembly and to ascertain whether the money
shown in the accounts as having been disbursed were legally available and applicable to
the service or purpose to which they have been applied of charged and whether the
expenditure conforms to the authority who governs it and
o to audit all transactions of the Union and of the states relating to the contingency funds
and public accounts.
• The Comptroller and Auditor General has been given, under the Constitution, access to the
accounts of expenditure incurred against appropriations granted by Parliament.

Statutory audit has a three-fold purpose.

Administrative World Page 320

 PAPER 01

• First, it is an accountancy audit to check the accuracy of arithmetical calculations and to see that all
payments are sttpported by receipted vouchers. In its essence, it is no different from the limited
audit of private auditors. Its objects are
o detection of fraud
o the detection of technical errors and
o the detection of errors of principles. It is usually a continuous audit. but of a small
percentage of transactions.
• Secondly, it is an appropriation audit to check the classification of expenditure, in order to make
sure that the items have been charged to the proper heads of accounts and further that the
appropriation for these heads have not been exceeded.
• Thirdly it is an administrative audit or audit of sanctions to check that expenditure has been
incurred according to the rules and regulations or where not so covered, it has been sanctioned by
the competent authority.
• Statutory audit, can assure the Parliament, that appropriations have been utilised in accordance
with the rules and regulations and within limits specified. It can vouch for the accuracy of accounts
and detect misapplication of funds, frauds, and defalcations.

Internal Audit
• Internal audit is internal to the organisation. Internal audit is conducted by an agency or
department created by the management of the organisation.
• It is an integral part of the organisation and functions directly under the Chief Executive.
• It is in the nature of an internal service to the Executive for smooth and efficient functioning and
for reviewing and improving its performance.
• The common objectives of an internal audit are to
o check the adequacy, soundness and applicability of the systems of internal controls
(Accounting, financial and other operating controls);
o prevent and detect frauds
• Internal audit, in any organisation, does not possess the same kind of independence as is available
to the external audit, conducted by the Indian Audit and Accounts Department.
• There is, however, no conflict between internal and external or statutory audit. Where internal
audit is adequate, the extent of statutory audit is limited to test checking of internal audit work.

Other Types of Audit

Regulatory audit
• It is concerned with legal and technical aspect of expenditure by administration.
• Also known as legal audit.
Propriety audit
• it is concerned with the wisdom, faithfulness and economy of expenditure.
Performance audit
> it is concerned with appraisal of accomplishments.
> It typically examines the effectiveness, economy or efficiency of a government program.
> It is a tool used to determine what is working and what is not working.

SEPARATION OF ACCOUNTS FROM AUDIT

• Accounting and auditing are interrelated but have independent functions.

Administrative World Page 321

 PAPER 01

• For reasons mainly of economy, these have been traditionally combined under one authority.
• From time to time, however, attempts have been made to separate accounting from auditing as in
the case of railways, defence, food, rehabilitation and supply.
• In 1971, the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act was
passed, which visualised the need for separating accounts from audit.
• Section 10 of the Act empowered the President, after consultation with the CAG to relieve the
Comptroller and Auditor General from the responsibility of compiling the accounts of any
department of the Union Government.
• A scheme for the separation of accounts from audit was approved by the Government of India in
June 1975.
• An ordinance was issued by the President, which was followed by passing an Act, which amended
the Comptroller and Auditor General's (DPC) Act 1971, thereby relieving him from the responsibility
of compiling accounts of Ministries, Departments of Government of India.
• He, however, still performs the accounts and audit functions in each state.

Independence of Audit in India

In India, independence of the audit has been ensured by the Constitution in many ways.
• Firstly, the Constitution had made audit of the accounts of the Union and of the States a Union
subject, by virtue of Entry 76 in the Union List under Article 246 of the Constitution. There is, thus,
a common auditor of both the Union Government as well as the States and this is a unique feature
of the Indian Constitution.
• Secondly, the Constitution provides that the Parliament shall have exclusive power to make laws on
the subject of audit of the accounts of the Union and of the States. At the same time, the
Constitution has not made the Comptroller and Auditor General of India an officer of Parliament or
of the House of the People.
• Thirdly, the Constitution guarantees the independence of the Comptroller and Auditor General of
India by prescribing that he shall be appointed by the President of India by warrant, under his hand
and seal, and cannot be removed from office except on the ground of proved misbehaviour or
incapacity.
• Fourthly, while Parliament will be competent to make laws to determine his salary and other
conditions of service, they cannot be varied to his disadvantage, after his appointment.
• Fifthly, on retirement, resignation or removal, the Comptroller and Auditor General is prohibited
from holding any further office either under the Government of India or under the Government of
any State.
• Sixthly, the salary and allowances of the Comptroller and Auditor General, the pension etc.,
payable to retired Auditors General and the administrative expenses of Comptroller and Auditor
General's personal office, shall be charged on the Consolidated Fund of India. That is, they will not
be subjected to the vote of - ..
• Lastly, the Constitution further provides that the conditions of service of persons serving in the
Indian-Audit and Accounts General shall be determined by the President after consultation with
him.
• The Constitution, thus, provides adequate safeguards to the Comptroller and Auditor General to
enable him/ her perform his'/ her constitutional functions, without any fear from the Executive.

An independent judiciary and an independent audit are two of the more important elements of
democracy. On them, devolves in varying degrees, the responsibility of protecting democracy from

Administrative World Page 322

 PAPER 01

authoritarian trends and executive excesses. Our Constitution has taken, therefore, reasonable care to
safeguard their independence.

CONTACT +919896859767
Subscribe our YouTube Channel ‘Administrative World’

Administrative World Page 323