Discussion questions

Question 1

Classical organization theory represents the merger of bureaucratic theory, scientific management, and administrative theory. While some of the theories proved successful in the simple industrialized firms, they do not fit well in modern organizations. The philosophy of production first and people second left a legacy of declining quality and employee dissatisfaction.  For example, Max Weber theories stressed the importance of reducing ambiguity and diversity in organizations. The theory focused on establishing clear lines of authority and control. The bureaucratic theory stressed the importance of a hierarchical structure of power. It emphasized the need of division of labor and specialization, a formal set of rules in the hierarchy structure to insure uniformity and stability.  Max Weber additionally put forth the idea that organizational behavior is a result of human interactions, where all behavior can be understood by looking at cause and effect.  The Administrative theory emphasized the importance of establishing a universal set of management principles applicable to all organizations.  While Classical management theory proved successful in the simple industrialized era, it was rigid and mechanistic.  Its deficiency was based on its attempt to explain peoples' motivation to work strictly as a function of economic reward. (Lynn & Stein, 2006)

Until recently, nearly all public organizations applied Weber's concept of bureaucratic structures. The amplified complexity of organizations has created the necessity of new structures.  In such structures, an organization is organized such that a number of independent units operate simultaneously. Today’s public organizations’ structure has been structured to be used successfully in highly dynamic and technological environments. Public managers have become the focal point for information, and the goal is to provide effective integration of an organization's resources towards the realization of specific goals.  The structures often involve dramatic changes in the interaction of authority and responsibility. A matrix organizational structure has been adopted in public organizations.  The changes in application of classical theories in public organization partly arise from the accountability concept.  Today’s public organizations receive their charter from the public as a whole, and, therefore, their ultimate responsibility is to the public. (Tompkins, 2005)

Also, the relationship between a public organization and its environment is characterized by a two-way flow of information. Thus, strategic decisions regarding their operations contribute to the selection of the organizational structure in relation to the environment. Today’s organization reflects the belief that maximization of profits is a secondary goal second to meeting society values. These structures operate within an idea of governance about which a level of consensus has been reached. There is a shared, pervasive, global perception of public management as a far broader approach due to the nature, structures and dynamisms of public organizations.  There is also a growing concern about morality and ethics of management with an increase in corporate responsibility practices.

Decreasing government size, effectiveness and economy, the emphasis on efficiency, the decentralization of management authority have also influenced the nature of organizational management. The growth of Public organizations had resulted in decreased flexibility and responsiveness. Specific steps were taken to abate these problems. One of them is the reduction in size and decentralization of management. The trend in organizations is currently away from mechanistic structures to more organic or adaptive structures. The advantage is that organizations have become more dynamic and flexible. However, the integration and coordination of activities necessitates more time and effort. Thus, the shortcomings of classical organization theories have ultimately become apparent due to their rigid and mechanistic nature.

Question 2

I agree. Public organizations have significant distinctions that make it impractical to compare them to private sector organizations. The public organization setting is characterized by settings is characterized by a structurally complex environment where managers must mediate between the organization and the environment. Public institutions are therefore quite different. Thus, rationality and logic that may apply to a private-sector body cannot easily be extrapolated to them.  Additionally, managers in public management operate in a structure that is more uncertain and has elements of not-for-profit and profit-seeking entities.

Another main characteristic of public organizations is a large number of formal processes that appear to be necessary to ensure that it functions appropriately. Not do the processes display a higher degree of formalization, they also involve regulations, rules and procedures that remain in force and involve a compliance burden for the organization but have no effectiveness for the rules’ functional object.  Public organizations have a higher level of regulations and procedures give that authority is divided among three main branches: legislative executive and judicial. To promote transparency and prevent the abuse of power of the public organization, the degree of formalization of the public organization far exceeds that of the private organizations. (McLaughlin & Ferlie, 2005)

The degree of formalization that affects management processes including decision-making.  The decision-making process is one important factor that differentiates the managers of private organizations from those of public organizations.  For example, the difference in decision making can be analyzed by looking at how managers in each type of organization interpret the emergence of conflict over a strategic decision.  Managers of private organizations are likely to see conflict as indicating that some members of the organization fail to believe in the effectiveness of a strategic decision. On the other hand, a conflict in a public organization is likely to be interpreted as the result of the participation of different stakeholders.  A conflict in a public organization shows that the strategic decision has a positive component. It reveals that different stakeholders are participating in the process, signaling that the final decision will take their interests into account. 

Additionally, the ultimate goal of public management is to maximize the collective value. On the other hand, the ultimate goal of a manager of a private organization is to apply the theory of rational choice, in order to maximize the organization’s shareholders’ value.  Acknowledging the difference existing between the public organization and a private organization can aid the transfer of management practices from one sector. The public management appears to be adopting practices often used in private organizations. (McLaughlin & Ferlie, 2005)

Other variables such as technology, task and size in public organization influence their management.  Human resource practices such as employee motivation and leadership influence employee satisfaction and satisfaction. These practices are influenced by operational structures and the nature of goals that these organizations implements.  However, there is a blurring of the sectors as public organizations have undergone significant changes. A new paradigm for public management has emerged as public organizations have been impacted by decreasing government size, effectiveness and economy, the emphasis on efficiency, the decentralization of management authority. Today’s Public Management is accountable to the public sector.  It is more justified to treat public organizations management as a separate unit of analysis that assumes managers authority, jurisdictions and responsibilities as separate from those of private organizations.

References

Tompkins J. (2005) Organization Theory and Public Management: Thomson Wadsworth

McLaughlin K. &  Ferlie E. (2005) New Public Management: Current Trends and Future Prospects: Routledge.

Lynn L. & Stein S. (2006) Public Management: Old and New Routledge

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