Challenge of Effective Challenge of Effective Public ManagementPublic Management

ByBy

Chandra-nuj Mahakanjana, Ph.D.Chandra-nuj Mahakanjana, Ph.D.

GSPA, NIDAGSPA, NIDA

9/119/11 Weakness in the way agencies were Weakness in the way agencies were

organized and managedorganized and managed Organization and managerial Organization and managerial

problem problem inadequate inadequate communication and handling crucial communication and handling crucial infoinfo

Understanding management of Understanding management of public organizationspublic organizations

Skepticism about governmentSkepticism about government Public-private continuumPublic-private continuum Body of management knowledge has Body of management knowledge has

paid too little attention to the public paid too little attention to the public sector sector managing bureaucracy managing bureaucracy

Legitimate skepticism about public Legitimate skepticism about public org VS. recognition of their org VS. recognition of their indispensable roles in societyindispensable roles in society

Need to improve their effectiveness Need to improve their effectiveness (efficiency-effectiveness)(efficiency-effectiveness)

Government context (envi) Government context (envi) influences public organization and influences public organization and management management constraining constraining performanceperformance

Gov organization and managers Gov organization and managers perform better than perceivedperform better than perceived

More authority & responsibility to More authority & responsibility to Dept. of homeland security Dept. of homeland security

Go against the trend of anti gov. Go against the trend of anti gov. movementmovement

Resentment of taxes and ineffective Resentment of taxes and ineffective government performancegovernment performance

Politicians attack BureaucracyPoliticians attack Bureaucracy Red tapeRed tape

Public org (in the U.S.) Public org (in the U.S.) great great achievement achievement

Small proportion of the GDPSmall proportion of the GDP Low taxesLow taxes

Strong anti-gov role == demand for Strong anti-gov role == demand for a strong and active government have a strong and active government have continuedcontinued

Both government & private activities Both government & private activities have strengths and weaknesseshave strengths and weaknesses

Both are still very crucial for its Both are still very crucial for its existence existence

Challenge Challenge designing the mix and designing the mix and balance of the two while attaining balance of the two while attaining effective management of botheffective management of both

Organization BehaviorOrganization Behavior PsychologyPsychology Individual behaviorIndividual behavior Group behaviorGroup behavior

Organization TheoryOrganization Theory SociologySociology Org as a wholeOrg as a whole Org enviOrg envi GoalsGoals EffectivenessEffectiveness StrategyStrategy Decision makingDecision making Change managementChange management

Public ManagementPublic Management

Ineffective public managementIneffective public management Effective operationEffective operation Control over by democratic processesControl over by democratic processes Need to be balancedNeed to be balanced

Dilemmas of improving public Dilemmas of improving public managementmanagement

Improving Improving Reform Reform Negative, control-oriented Negative, control-oriented Damage public service at the endDamage public service at the end

Defining Effective Public Defining Effective Public ManagementManagement

Perception of government Perception of government incompetence incompetence crisis in public crisis in public managementmanagement

Confusion between reinventing Confusion between reinventing government & government cutbackgovernment & government cutback

Image of incompetenceImage of incompetence

Why?Why? People in private sector are smarter?People in private sector are smarter? Government employees are lazy and Government employees are lazy and

corrupt?corrupt? Government cannot get any work Government cannot get any work

done?done?

Lots of successful government programs, Lots of successful government programs, but no attention givenbut no attention given

Negative image remainsNegative image remains

Media Media Public sector failures are more Public sector failures are more difficult to hide than failures in private difficult to hide than failures in private sector sector

Fishbowl atmosphereFishbowl atmosphere

Rules and regulations in public Rules and regulations in public sectorsector

Not designed for rapid and effective Not designed for rapid and effective operationoperation

But to combat fraud and improper But to combat fraud and improper political influencespolitical influences

If rules and regulations are ignored If rules and regulations are ignored media & public will suspect fraud media & public will suspect fraud or corruption or corruption

Fishbowl atmosphere Fishbowl atmosphere always always negative image of public managernegative image of public manager

Image problemImage problem

Bumbling bureaucrat (stereotype by Bumbling bureaucrat (stereotype by media & politicians)media & politicians)

• Inept bureaucrat Inept bureaucrat national economy national economy• Too simple Too simple ignore the benefit of ignore the benefit of

government programs in economic government programs in economic growth (ex. infrastructure)growth (ex. infrastructure)

• Social security program Social security program more more opportunity for young generation (not opportunity for young generation (not having to take care of their parents)having to take care of their parents)

causescauses• 1) Bureaucrat bashing by the media & 1) Bureaucrat bashing by the media &

politicians politicians easy to do and draw more easy to do and draw more attention than trying to explain how attention than trying to explain how complex their situation is complex their situation is

Public policy process is so complicated and Public policy process is so complicated and involve trade-off (usually not notice by the involve trade-off (usually not notice by the media) media)

• 2) Bureaucrat avoiding choices2) Bureaucrat avoiding choices Using vague language to avoid choicesUsing vague language to avoid choices Making choices Making choices draw criticism (both from draw criticism (both from

internal & public in general)internal & public in general)

• 3) Extreme Formality (red tape)3) Extreme Formality (red tape) Rely on written communicationRely on written communication Focus on accountabilityFocus on accountability Habit Habit Leads to in effective and costly management Leads to in effective and costly management

practices practices negative image negative image

• 4) Public managers 4) Public managers lack of control lack of control over goal setting (unlike those in private over goal setting (unlike those in private sector)sector)

• Private sector Private sector BOD is controlled or related to BOD is controlled or related to org managersorg managers

• Public sector Public sector BOD = elected legislators and BOD = elected legislators and executives )who are more focusing on their executives )who are more focusing on their political popularity more than organizational political popularity more than organizational performance performance

• Political interests always change without much Political interests always change without much warningwarning

• Successful public managers = 1) adjust programs Successful public managers = 1) adjust programs rapidly, 2) foresee changes in policy direction, 3) rapidly, 2) foresee changes in policy direction, 3) build org capacity for change build org capacity for change

สู�ตรแห่�งความล้�มเห่ล้วสู�ตรแห่�งความล้�มเห่ล้ว 1) Negative image 1) Negative image Bureaucrats’ self perception Bureaucrats’ self perception

negative thinkingnegative thinking psychology of failurepsychology of failure Ex. Roper family (p.5)Ex. Roper family (p.5) self-defeated = define ‘success’ as ‘the absence of self-defeated = define ‘success’ as ‘the absence of

failure’failure’ Low expectationsLow expectations Ignore sense of visionIgnore sense of vision Make fun of those who are ambitiousMake fun of those who are ambitious Same manager in private sector Same manager in private sector fired fired In public sector In public sector impossible to fire impossible to fire hard to hard to

measure performance objectivelymeasure performance objectively Hard to measure ‘success’ (unlike balance sheet in Hard to measure ‘success’ (unlike balance sheet in

private sectorprivate sector

2) Letting the constraint constrain 2) Letting the constraint constrain youyou

Accept problems and obstacles (instead of Accept problems and obstacles (instead of searching for solutions) searching for solutions) explanation for explanation for nonperformancenonperformance

Give up easilyGive up easily Due to the love-hate relationship with Due to the love-hate relationship with

government (need government to do things government (need government to do things ‘for’ them but not ‘to’ them)‘for’ them but not ‘to’ them)

3) Allowing caution to become inertia3) Allowing caution to become inertia

CautionCaution paralysis paralysis New projects are abandon once tentative New projects are abandon once tentative

negative signals are received (ex. some negative signals are received (ex. some other powerful public orgs do not favor the other powerful public orgs do not favor the project proposalproject proposal

Ex. Internet & USPS (p. 10) Ex. Internet & USPS (p. 10) Emphasize ‘process’ over ‘product’Emphasize ‘process’ over ‘product’ Standard operation procedures (SOP)Standard operation procedures (SOP)

4) Hiding behind ambiguity4) Hiding behind ambiguity Use of unclear languageUse of unclear language Ex. disturbed manEx. disturbed man Hide their actions behind unclear phases, passive Hide their actions behind unclear phases, passive

voice, refuse to agree to logical conclusionsvoice, refuse to agree to logical conclusions To prevent outsiders from understanding who is To prevent outsiders from understanding who is

doing what to whom!!doing what to whom!! To hide poor or nonexistent performance (using To hide poor or nonexistent performance (using

vague statement of goals, unclear assignments of vague statement of goals, unclear assignments of responsibility)responsibility)

Create impression that they are achieving goals while Create impression that they are achieving goals while actually achieving very little actually achieving very little

Focus on image more than actual performanceFocus on image more than actual performance Ex. preventive-retaliatory = invasionEx. preventive-retaliatory = invasion Ex. revenue enhancements = tax increasesEx. revenue enhancements = tax increases

5) Forgetting that people matter5) Forgetting that people matter

Forgetting that org = people Forgetting that org = people people count people count

Effective Management = art of getting people to do Effective Management = art of getting people to do the right things the right things obtain resources to create obtain resources to create incentives to achieve org goalsincentives to achieve org goals

Org as organic entities (living, breathing, being) = Org as organic entities (living, breathing, being) = organism organism need nourishment from envi need nourishment from envi

Public managers usually ignore this essential Public managers usually ignore this essential conceptconcept forgetting to interact and communicate forgetting to interact and communicate with people who work for them with people who work for them deal with staff as deal with staff as abstractions abstractions productivity impaired productivity impaired org lost org lost ability to attract resources from its enviability to attract resources from its envi

Ex. of ‘empowering people’ (p.13)Ex. of ‘empowering people’ (p.13) Goodwill Industries of Tulsa Goodwill Industries of Tulsa shifting people from shifting people from

welfare to work welfare to work (Nonprofit, receiving grants from (Nonprofit, receiving grants from Oklahoma state) Oklahoma state)

In 2000 In 2000 Okl. Started to give grants based on Okl. Started to give grants based on outcome rather than output outcome rather than output

• Output = placing most people from welfare to workOutput = placing most people from welfare to work• Outcome = meaningful welfare-to-work =number of Outcome = meaningful welfare-to-work =number of

people who people who keepkeep their new jobs) their new jobs) staff need to spend staff need to spend more time with their clients to make sure they suit the more time with their clients to make sure they suit the jobjob

• Allowing people to do their bestAllowing people to do their best• Focusing on goalFocusing on goal• Giving staff to feel they are in control of what they are Giving staff to feel they are in control of what they are

doingdoing

** “Effective public manager must ** “Effective public manager must understand the psychological, economic, understand the psychological, economic, and social needs that motivate their and social needs that motivate their workforce” **workforce” **

BUT, normally, public managers are not BUT, normally, public managers are not trained to managetrained to manage

• Rudeness Rudeness dealing with subordinates as they dealing with subordinates as they were not valuable human beingswere not valuable human beings

• Have one personality for their staff/another Have one personality for their staff/another personality for their bosspersonality for their boss

Example p. 15Example p. 15

Innovative, Effective Public Innovative, Effective Public ManagerManager

Effective management Effective management • active, aggressive, and innovative effort to overcome active, aggressive, and innovative effort to overcome

constraints and obstaclesconstraints and obstacles• Positive with “Can-do” attitudePositive with “Can-do” attitude• Make things happenMake things happen• Pursue goals by thinking and acting strategicallyPursue goals by thinking and acting strategically• Understand why things are happening and how things Understand why things are happening and how things

can be changescan be changes• Touch with informal network (SC?) Touch with informal network (SC?) information, ideas, information, ideas,

initiativesinitiatives• Learning, teaching, experimenting, changingLearning, teaching, experimenting, changing• Understand org enviUnderstand org envi• Able to Project the effect of the enviAble to Project the effect of the envi• Understand constrain and influence of the enviUnderstand constrain and influence of the envi• Entrepreneurship Entrepreneurship

Risk takingRisk taking • Bigger numbers of government Bigger numbers of government

employeesemployees• Professionalization of government Professionalization of government

service (MPA, MBA)service (MPA, MBA)• Public management Public management more on private more on private

contractors to provide servicescontractors to provide services• Privatization, competition, contracting Privatization, competition, contracting • Innovative public-private partnership Innovative public-private partnership

(ex.) (ex.)

Need for effective and innovative Need for effective and innovative public managementpublic management

Economic reason (free market)Economic reason (free market)• Modern industrial lifeModern industrial life• Labor moved from direct production of food, Labor moved from direct production of food,

clothing, and shelter clothing, and shelter manage info, provide manage info, provide services, professionservices, profession

• Econ downturn, disease, terrorists, fear of Econ downturn, disease, terrorists, fear of flying, homeless flying, homeless government intervention government intervention

• Trend Trend reduce government role reduce government role threat to threat to libertyliberty

• Reality Reality economic interdependence is a far economic interdependence is a far great constraint than power of governmentgreat constraint than power of government

• Growth of government = reflection of Growth of government = reflection of economic reality (material consumption)economic reality (material consumption)

Government (Traditional value)Government (Traditional value)• Liberty, family, spirituality, envi Liberty, family, spirituality, envi

preservationpreservation• Plastic bags – toxic-free enviPlastic bags – toxic-free envi• Fresh fruit – safe pesticidesFresh fruit – safe pesticides• Material wealth – spiritual fulfillment Material wealth – spiritual fulfillment

** Free market DOES NOT designed ** Free market DOES NOT designed to protect traditional valueto protect traditional value ****

What Makes Public Organizations What Makes Public Organizations DistinctiveDistinctive

Experts on management & Org Experts on management & Org treat treat differences bt public & private orgs as differences bt public & private orgs as unimportant issueunimportant issue

Generic theory of organizationGeneric theory of organization• Broadly apply to all types of organizationsBroadly apply to all types of organizations• Standard principles to govern administrative Standard principles to govern administrative

structures of all organizationstructures of all organization

Public OrganizationsPublic Organizations

If public and private organizations If public and private organizations are the same are the same questions are… questions are…

Can we nationalize all industrial Can we nationalize all industrial firms?firms?

Can we privatize all government Can we privatize all government agencies?agencies?

If no, this means there are some If no, this means there are some important differences in the important differences in the administration of public and private administration of public and private organizationorganization

Purpose of public organizationsPurpose of public organizations

Public organization = “inevitable Public organization = “inevitable components of free-market components of free-market economies” (Downs, 1967)economies” (Downs, 1967)

Thomas Hobbes Thomas Hobbes State of Nature State of Nature

Politics & MarketPolitics & Market

Political Hierarchy Political Hierarchy “Polyarchy” “Polyarchy” Political authority Political authority social control social control

People willing to stop at red light vs. People willing to stop at red light vs. paying them to do so paying them to do so

Can be clumsy, ineffective, poorly Can be clumsy, ineffective, poorly adapted to local circumstances, adapted to local circumstances, resistance to changeresistance to change

Market Market voluntary exchanges voluntary exchanges Producers Producers

induce customers to engage willingly in exchanges induce customers to engage willingly in exchanges with themwith them

incentive to produce what consumers want, as incentive to produce what consumers want, as efficiently as possibleefficiently as possible

Freedom & flexibilityFreedom & flexibility Efficiently use of resourcesEfficiently use of resources

However, have limited capacity in However, have limited capacity in handling certain problems (ex.?) that handling certain problems (ex.?) that require government actionrequire government action

Public goods & Free ridersPublic goods & Free riders tragedy of the commontragedy of the common Services that benefit to everyone in societyServices that benefit to everyone in society Free-riders Free-riders get common benefit, let get common benefit, let

others payothers pay

Individual incompetenceIndividual incompetence People lack sufficient edu or info to make People lack sufficient edu or info to make

wise individual choices in some areas ex. wise individual choices in some areas ex. medicines, food safety medicines, food safety need government need government regulationsregulations

Externalities/SpilloversExternalities/Spillovers Costs that spill over to other people who are Costs that spill over to other people who are

not part of a market exchange (air pollution, not part of a market exchange (air pollution, water contamination water contamination Government Government intervention (EPA – Environmental Protection intervention (EPA – Environmental Protection Agency) Agency)

Government Government correct problems that correct problems that economic market creates or unable economic market creates or unable to addressto address

MonopoliesMonopolies Income redistribution Income redistribution Provide services that are too risky/too Provide services that are too risky/too

expensive for private competitors to provide expensive for private competitors to provide (facility for handicaps) (facility for handicaps)

Conservative economists Conservative economists think that market will eventually solves all think that market will eventually solves all

these problems these problems Government makes these problems worseGovernment makes these problems worse

Political Rationales for GovernmentPolitical Rationales for Government

Maintain law, justice, social organizationMaintain law, justice, social organization Maintain individual rights & freedomMaintain individual rights & freedom Provide national security and stabilityProvide national security and stability Promote general prosperityPromote general prosperity Provide direction for the nation & Provide direction for the nation &

communitiescommunities Provide services that are not exchanged on Provide services that are not exchanged on

economic markets (but based on general economic markets (but based on general social values, public interest, politically social values, public interest, politically imposed demands of groups (politics)imposed demands of groups (politics)

Meaning and Nature of Public Meaning and Nature of Public Organizations & Public Organizations & Public

ManagementManagement

Public (Latin) Public (Latin) people people

Private (Latin) Private (Latin) set apart from set apart from government as a personal mattergovernment as a personal matter

Three major factorsThree major factors

Interests affected Interests affected benefits or losses are communal or benefits or losses are communal or

individualsindividuals

Access to facilities, resources, Access to facilities, resources, informationinformation

AgencyAgency A person/org acts as individual or for the A person/org acts as individual or for the

community as a wholecommunity as a whole

Agencies & Enterprises ContinuumAgencies & Enterprises Continuum

Agencies ------------------- Enterprises Agencies ------------------- Enterprises

(Public)(Public) (Private) (Private) trouble integrating cost reduction into trouble integrating cost reduction into

their goalstheir goals

Pricing system links revenues to Pricing system links revenues to products & services soldproducts & services sold

Stronger incentive for cost reductionStronger incentive for cost reduction

Ownership & FundingOwnership & Funding

MinistriesMinistries

DepartmentsDepartmentsDefense Defense contractorscontractors

Rand Rand corporationcorporation

Postal servicePostal service IBMIBM

Grocery storesGrocery stores

Public Ownership Private Ownership

Public Funding

(taxes, gov contract)

Private Funding

(sales, private donations)

Distinctive Characteristics of public Distinctive Characteristics of public Management Management

Environmental FactorsEnvironmental Factors Organization-Environment Organization-Environment

TransactionsTransactions Organizational Roles, Structures, and Organizational Roles, Structures, and

ProcessesProcesses

Environmental FactorsEnvironmental Factors

No economic markets for outputsNo economic markets for outputs Depend on governmental fundingDepend on governmental funding

No incentives for cost reduction, efficiency, No incentives for cost reduction, efficiency, effective performanceeffective performance

Low efficiency allocating resourcesLow efficiency allocating resources Weak reflection of consumer preferencesWeak reflection of consumer preferences Weak supply-demand relationsWeak supply-demand relations Less clear on market indicators and info that Less clear on market indicators and info that

lead to managerial decisionslead to managerial decisions

Heavy formal legal constraints Heavy formal legal constraints Oversight by legislative branch, executive branch, Oversight by legislative branch, executive branch,

courtscourts Constraints on operation procedures Constraints on operation procedures Managers have less autonomy in making choicesManagers have less autonomy in making choices Leading to more and more formal administrative Leading to more and more formal administrative

controlscontrols External formal authorities involvedExternal formal authorities involved

Intensive external political influencesIntensive external political influences Bargaining, negotiating, lobbying, public opinion, Bargaining, negotiating, lobbying, public opinion,

interest groups, constituent pressureinterest groups, constituent pressure Need political support Need political support

Organization-Environment Organization-Environment TransactionsTransactions

Production of public goodsProduction of public goods Handle externalitiesHandle externalities Outputs are not transferable to economic market Outputs are not transferable to economic market

at a market priceat a market price Gov activities are coercive, monopolistic, Gov activities are coercive, monopolistic,

unavoidable, unique sanctioning powerunavoidable, unique sanctioning power Financing of activities are mandatoryFinancing of activities are mandatory Activities have broader impact and greater Activities have broader impact and greater

symbolic significancesymbolic significance Involve public interestInvolve public interest Pressure on public managersPressure on public managers Expectation of fairness, responsiveness, honesty, Expectation of fairness, responsiveness, honesty,

transparency, and accountabilitytransparency, and accountability

Org roles, structures, and Org roles, structures, and processes processes

Unclear goalsUnclear goals Vagueness, intangibility, hard to measure goals and Vagueness, intangibility, hard to measure goals and

performance criteriaperformance criteria Debatable & value-laden goal (clean envi, public Debatable & value-laden goal (clean envi, public

safety, better living standards for the poor, etc) safety, better living standards for the poor, etc)

Multi goalsMulti goals Efficiency, accountability, transparency, Efficiency, accountability, transparency,

responsivenessresponsiveness Fairness, equality, distribution, moral correctnessFairness, equality, distribution, moral correctness

Conflicting goalsConflicting goals Involve trade-off (due to limited resources)Involve trade-off (due to limited resources) Value conflicting Value conflicting

• Efficiency vs. transparencyEfficiency vs. transparency• Efficiency vs. social equalityEfficiency vs. social equality• Efficiency vs. accountability Efficiency vs. accountability

• More political rolesMore political roles• More meetings with external interest groups More meetings with external interest groups

and political authoritiesand political authorities• More skill on balancing external political More skill on balancing external political

relations with internal management functionsrelations with internal management functions• Weaker authority over subordinates (due to Weaker authority over subordinates (due to

institutional constraints, ex. civil service institutional constraints, ex. civil service personnel system, purchasing & procurement personnel system, purchasing & procurement systemssystems

• Turnover of top executive leaders (elections, Turnover of top executive leaders (elections, political appointmentspolitical appointments

StructureStructure More red-tape, elaborate bureaucratic More red-tape, elaborate bureaucratic

structurestructure More constraints on administrationMore constraints on administration

Environment of Public Environment of Public OrganizationsOrganizations

““public organizations tend to be public organizations tend to be subject to more directions and subject to more directions and interventions from political actors interventions from political actors and authorities who seek to direct and authorities who seek to direct and control them”and control them”

Public manager Public manager ability to analyze ability to analyze and monitor their environment and monitor their environment

General Environmental ConditionsGeneral Environmental Conditions

Technological conditionsTechnological conditions knowledge and knowledge and capability in sciences, etccapability in sciences, etc

Legal conditionsLegal conditions law, regulations, legal law, regulations, legal procedures, court decisionsprocedures, court decisions

Political conditionsPolitical conditions political process, institution, political process, institution, and forms of government in a given society and forms of government in a given society capitalism, socialism, communism, electoral capitalism, socialism, communism, electoral outcomes, political party systemoutcomes, political party system

Economic conditionsEconomic conditions prosperity, inflation, prosperity, inflation, interest rates, tax rates, labor, capital, economic interest rates, tax rates, labor, capital, economic marketmarket

Demographic conditionsDemographic conditions age, gender, race, age, gender, race, religion, ethnicreligion, ethnic

Ecological conditionsEcological conditions physical envi, climate, physical envi, climate, pollution, natural resourcespollution, natural resources

Cultural ConditionsCultural Conditions predominant values, predominant values, attitudes, beliefs, social customs, socialization attitudes, beliefs, social customs, socialization process, family structure, work orientationprocess, family structure, work orientation

Examples of Political and Examples of Political and Institutional Environments of Public Institutional Environments of Public

OrganizationsOrganizations

General valuesGeneral values• Political & economic traditionsPolitical & economic traditions• Constitution provisions (ex. democratic Constitution provisions (ex. democratic

elections and representation/ unitary elections and representation/ unitary state/ fused power, etc.)state/ fused power, etc.)

Values & performance criteria for government Values & performance criteria for government orgsorgs

• EfficiencyEfficiency• EffectivenessEffectiveness• TimelinessTimeliness• ReliabilityReliability• ReasonablenessReasonableness• AccountabilityAccountability• LegalityLegality• Responsiveness to rule of lawResponsiveness to rule of law• Responsiveness to public demandsResponsiveness to public demands• Ethical standardsEthical standards• Fairness, equal treatmentFairness, equal treatment• Openness to criticismOpenness to criticism

Institutions & actors with political Institutions & actors with political authority & influenceauthority & influence

Chief Executive Chief Executive LegislaturesLegislatures CourtsCourts Other governmental agenciesOther governmental agencies Other levels of governmentOther levels of government Interest groups (client groups, constituency Interest groups (client groups, constituency

groupsgroups Professional associationsProfessional associations News/mediaNews/media Public opinionPublic opinion Individual citizens with requests for servicesIndividual citizens with requests for services

Conflicting values Conflicting values Challenges to Challenges to public managerspublic managers

Leadership, Managerial Roles & Leadership, Managerial Roles & Organizational CultureOrganizational Culture

DisputeDispute

Inborn (Trait Theories) Inborn (Trait Theories) Identify traits of effective leaders, ex. Identify traits of effective leaders, ex.

height, intelligence, enthusiasm, persistenceheight, intelligence, enthusiasm, persistence

Learned trait Learned trait

Definition of leadershipDefinition of leadership• ExecutiveExecutive• ManagerialManagerial• SupervisorySupervisory• Informal leadershipInformal leadership

General definition (Lundstedt 1965) General definition (Lundstedt 1965)

‘ ‘leadership involves influencing the leadership involves influencing the behavior of others in any group or behavior of others in any group or organization, setting goals, organization, setting goals, formulating paths to those goals, and formulating paths to those goals, and creating social norms in the group’creating social norms in the group’

Three levels of leadership in Three levels of leadership in BureausBureaus

Executives Executives establish bureau’s structure (including positions establish bureau’s structure (including positions

filled by managers and supervisorsfilled by managers and supervisors maintain general view of the bureau and its place maintain general view of the bureau and its place

within political enviwithin political envi Interpret political statements of intentions (unclear Interpret political statements of intentions (unclear

& contradictory) into rational goals & policies& contradictory) into rational goals & policies Create environment that encourage goal Create environment that encourage goal

achievementachievement close attention to org environment (take close attention to org environment (take

advantage of opportunity & protect org from threatsadvantage of opportunity & protect org from threats

managermanager depend on rules & regulations that define depend on rules & regulations that define

their power over otherstheir power over others interpret org goals (set by executives) in interpret org goals (set by executives) in

concrete manner (into structure, procedure, concrete manner (into structure, procedure, taskstasks

often pulled by superiors & subordinatesoften pulled by superiors & subordinates focus on how org can be best organized focus on how org can be best organized

to achieve the overall goals established by to achieve the overall goals established by executivesexecutives

SupervisorSupervisor focus on motivation, productivity, focus on motivation, productivity,

interpersonal relationsinterpersonal relations work directly with production processwork directly with production process protect subordinates from political protect subordinates from political

pressurepressure

Informal leadershipInformal leadership have no official leadership positionshave no official leadership positions need to understand informal leadership need to understand informal leadership

phenomenon along with formal onephenomenon along with formal one

Definition of leadership Definition of leadership two two common elementscommon elements

Group phenomenon Group phenomenon 2 or more people 2 or more people must be involvedmust be involved

Influence processInfluence process

Influence Influence

flow from leaders to followersflow from leaders to followers

Followers grant the leadership Followers grant the leadership role to leaderrole to leader

leaders rallying people leaders rallying people together and motivating them to together and motivating them to achieve some common goalsachieve some common goals

Influence Tactics (Yukl 1994)Influence Tactics (Yukl 1994)

Rational PersuasionRational Persuasion Inspirational AppealsInspirational Appeals ConsultationConsultation IngratiationIngratiation Personal AppealsPersonal Appeals ExchangeExchange Coalition TacticsCoalition Tactics Legitimating TacticsLegitimating Tactics PressurePressure

Authority Authority rational basis of power rational basis of power

Rational side of orgRational side of org what an org what an org should do according to the official, should do according to the official, formal dictates of orgformal dictates of org

Political side of organizationPolitical side of organization what what organizations actually do organizations actually do

AuthorityAuthority

**the rationally based formal right to **the rationally based formal right to make decisions and influence make decisions and influence behavior to implement decisions behavior to implement decisions based on formal organizational based on formal organizational relationships** relationships**

Authority = a right determined by an Authority = a right determined by an obligationobligation

‘‘Authority is solely associated with Authority is solely associated with formal org, with formal sanction or formal org, with formal sanction or approval from society’approval from society’

Forms of authorityForms of authority

Managerial authorityManagerial authority Staff authorityStaff authority Situational authoritySituational authority Operative authorityOperative authority

Managerial AuthorityManagerial Authority

Managers are responsible for acquiring, Managers are responsible for acquiring, deploying, & controlling resources needed deploying, & controlling resources needed to accomplish objectivesto accomplish objectives

Rights to choose among alternativesRights to choose among alternatives The right to enforce those choices based on official The right to enforce those choices based on official

positionposition

Principle of parity of authority and Principle of parity of authority and responsibilityresponsibility Balance between Balance between responsibility & authorityresponsibility & authority

Staff AuthorityStaff Authority

Suggestions & recommendations about Suggestions & recommendations about the solutions to problems, procedure, or the solutions to problems, procedure, or improvementsimprovements

Right to recommendRight to recommend Right to suggestRight to suggest Right to adviseRight to advise Right to attempt to exert influence to gain Right to attempt to exert influence to gain

acceptance for ideasacceptance for ideas

Ex. TQM, suggestion boxes, employee Ex. TQM, suggestion boxes, employee empowerment, decentralizing org.empowerment, decentralizing org.

Situational AuthoritySituational Authority

Hybrid authorityHybrid authority Contains both managerial and staff Contains both managerial and staff

authorityauthority Delegated by managers to a staff Delegated by managers to a staff

expertexpert

Operative AuthorityOperative Authority

All members have this authorityAll members have this authority make certain decisions about how, make certain decisions about how,

in what order, which tools they carry in what order, which tools they carry out their tasksout their tasks

right to work without undue right to work without undue supervisionsupervision

PowerPower

““the ability to impose one’s will on the ability to impose one’s will on others’others’

“ “ the ability of one person to affect the ability of one person to affect the behavior of someone else in a the behavior of someone else in a desired way”desired way”

Based on factors such as knowledge, Based on factors such as knowledge, authority, information, personality, authority, information, personality, resource control resource control

Authority Authority simple power associated simple power associated with formal organizationwith formal organization

Power Power influence that does not influence that does not necessarily depend on formal necessarily depend on formal organizational recognitionorganizational recognition

ExampleExample

Two Perspectives on PowerTwo Perspectives on Power

The French and Raven Power The French and Raven Power TypologyTypology individual bases of individual bases of powerpower

Dependency, Critical Contingencies, Dependency, Critical Contingencies, and Powerand Power how individuals, how individuals, groups, or departments gain power groups, or departments gain power through dependency relationshipsthrough dependency relationships

French & Raven Power TypologyFrench & Raven Power Typology

Sources & potency of power in orgSources & potency of power in org• Rational/legal powerRational/legal power• Reward PowerReward Power• Coercive powerCoercive power• Referent powerReferent power• Charismatic powerCharismatic power• Expert powerExpert power

Dependency, Critical Dependency, Critical Contingencies, and PowerContingencies, and Power

Power through control of resourcesPower through control of resources Power through solving critical or Power through solving critical or

strategic contingenciesstrategic contingencies Level of substitutability Level of substitutability Power and location in the orgPower and location in the org Power and position in the orgPower and position in the org

How to assess power ?How to assess power ? Determine by sources or origin of power Determine by sources or origin of power

judgment about how much of particular power a judgment about how much of particular power a person/department possessesperson/department possesses

Determine by consequences of decisions made by Determine by consequences of decisions made by various actorsvarious actors

Determine by power symbols Determine by power symbols larger office, larger office,

luxurious furniture, more expensive company luxurious furniture, more expensive company carscars

Representational indicators of power Representational indicators of power memberships on influential boards or committeesmemberships on influential boards or committees

The use of power in organizationThe use of power in organization Effort Effort energy & ingenuity energy & ingenuity to fill power to fill power

vacuumsvacuums Control of information flowsControl of information flows Dominant coalitions Dominant coalitions “group holding “group holding

extensive power & authority that may be extensive power & authority that may be separate from formal power”separate from formal power”

Organizational politics (Pfeffer)Organizational politics (Pfeffer)

‘‘those activities taken within organizations those activities taken within organizations to acquire, develop, and use power and to acquire, develop, and use power and other resources to obtain one’s preferred other resources to obtain one’s preferred outcomes in a situation in which there is outcomes in a situation in which there is uncertainty or a lack of consensus about uncertainty or a lack of consensus about choice”choice”

Executive leadershipExecutive leadership

Most important Most important influence influence skillful skillful playing of political game playing of political game power power

““Administrative conservators”Administrative conservators” Preserve institutionPreserve institution Improve institutionImprove institution

““what is political climate?”what is political climate?” ““what is the resource base?”what is the resource base?” ““what is the potential for mobilizing what is the potential for mobilizing

support for the program?”support for the program?”

Four functions for executive Four functions for executive leadership (Selznick)leadership (Selznick)

The creative task of setting goalsThe creative task of setting goals The capacity to build policy into an The capacity to build policy into an

organization’s social structureorganization’s social structure Maintaining values and institutional identityMaintaining values and institutional identity Reconciling the struggle among competing Reconciling the struggle among competing

interestsinterests

The ManagersThe Managers

““in the middle”in the middle” Traits (Stogdill 1981)Traits (Stogdill 1981)

CapacityCapacity intelligence, alertness, verbal facility, intelligence, alertness, verbal facility, originality, judgmentoriginality, judgment

AchievementAchievement scholarship, knowledge scholarship, knowledge ResponsibilityResponsibility dependability, initiative, persistence, dependability, initiative, persistence,

aggressiveness, self-confidenceaggressiveness, self-confidence ParticipationParticipation activity, sociability, cooperation, activity, sociability, cooperation,

adaptability, humoradaptability, humor StatusStatus Socioeconomic position, popularity Socioeconomic position, popularity SituationSituation mental level, status, skills, needs and mental level, status, skills, needs and

interests of followers, objectives to be achievedinterests of followers, objectives to be achieved

Values held by successful Values held by successful managersmanagers

Support Support understanding, kindness, considerate understanding, kindness, considerate

Conformity Conformity follow regulation, doing what is accepted, follow regulation, doing what is accepted, proper, socially correctproper, socially correct

Recognition Recognition attracting favorable attention; being attracting favorable attention; being admired, looked up toadmired, looked up to

Independence Independence free to make decision free to make decision

Benevolence Benevolence generous, helping and sharing with those generous, helping and sharing with those who are less fortunatewho are less fortunate

Leadership Leadership have authority over people have authority over people

Managerial rolesManagerial roles Figurehead role (also executives)Figurehead role (also executives) Leader oleLeader ole Liaison role Liaison role web, network of relations web, network of relations Monitor role Monitor role problem, opportunity problem, opportunity Disseminator role Disseminator role interpret info & passing on to interpret info & passing on to

subsub Spokesperson roleSpokesperson role Entrepreneur roleEntrepreneur role Disturbance-handler roleDisturbance-handler role Resource-allocator roleResource-allocator role Negotiator roleNegotiator role

Managerial characteristic Managerial characteristic (Mintzberg)(Mintzberg)

Work paceWork pace no break, grueling pace, long no break, grueling pace, long hourshours

Activity duration & variationActivity duration & variation engage in engage in wide variety of activitieswide variety of activities

Action rather than reflectionAction rather than reflection gravitate gravitate toward active aspects of their jobstoward active aspects of their jobs

Communication media usageCommunication media usage written written messages, scheduled meetings, messages, scheduled meetings, unscheduled meetings, observational unscheduled meetings, observational tours, telephone messages tours, telephone messages

The SupervisorsThe Supervisors

““getting the work done”getting the work done”

Three major focusesThree major focuses ProductionProduction Maintenance of individual moraleMaintenance of individual morale Maintenance of group cohesivenessMaintenance of group cohesiveness

Supervisory behavior (Bass 1990)Supervisory behavior (Bass 1990) Consideration Consideration “extent to which a leader “extent to which a leader

shows concern for the welfare of the other shows concern for the welfare of the other members of the group, appreciation of good members of the group, appreciation of good work, stress importance of job satisfaction”work, stress importance of job satisfaction”

Initiation of structure Initiation of structure “extent to which a “extent to which a leader initiates activities in the group, leader initiates activities in the group, organizes it, & defines the way work is to be organizes it, & defines the way work is to be done”done”

Path-Goal Theory of LeadershipPath-Goal Theory of Leadership

‘‘Effective leaders increase motivation Effective leaders increase motivation and satisfaction among subordinates and satisfaction among subordinates when they help them pursue when they help them pursue important goals’important goals’

Leaders help subordinates to see the goalsLeaders help subordinates to see the goals The paths to achieve those goalsThe paths to achieve those goals How to follow those paths effectivelyHow to follow those paths effectively Show the values of outcomesShow the values of outcomes Using appropriate coaching and directingUsing appropriate coaching and directing Removing barriers and frustrations to those Removing barriers and frustrations to those

pathspaths

House & Mitchell’s 4 leadership House & Mitchell’s 4 leadership stylesstyles

Directive Directive Leaders give specific directions and Leaders give specific directions and expectationsexpectations

Supportive Supportive stress on encouraging, sympathetic stress on encouraging, sympathetic relations with subordinatesrelations with subordinates

Achievement-oriented Achievement-oriented leaders set high goals leaders set high goals and high expectations for subordinates’ and high expectations for subordinates’ performance and responsibilityperformance and responsibility

Participative Participative leaders encourage subordinates leaders encourage subordinates to suggest opinions and suggestionsto suggest opinions and suggestions

Directive leadershipDirective leadership good for ambiguous taskgood for ambiguous task bad when task is well structured and clearbad when task is well structured and clear

Supportive leadershipSupportive leadership good when tasks are frustrating and stressfulgood when tasks are frustrating and stressful bad when groups or other parts of org already provide bad when groups or other parts of org already provide

plenty of encouragementplenty of encouragement

Achievement-oriented leadershipAchievement-oriented leadership good for tasks toward ambitious goalsgood for tasks toward ambitious goals

Participative leadershipParticipative leadership good for ambiguous task & that subordinates feel good for ambiguous task & that subordinates feel

their self-esteem is at staketheir self-esteem is at stake participation allows them to influence decisions and participation allows them to influence decisions and

work out solutionswork out solutions

Leader-Member Exchange Theory Leader-Member Exchange Theory (LMX)(LMX)

Dyadic relationships Dyadic relationships • between a leader and individual subordinatesbetween a leader and individual subordinates• On development of low-exchange and hi-exchange On development of low-exchange and hi-exchange

relationshipsrelationships

Low-exchange relationships Low-exchange relationships little mutual influence between the leader and subordinate little mutual influence between the leader and subordinate subordinate follows formal role requirementssubordinate follows formal role requirements receive standard benefit (salary)receive standard benefit (salary)

High exchange relationshipsHigh exchange relationships leader establishes with a set of trusted subordinatesleader establishes with a set of trusted subordinates mutual influence relationsmutual influence relations subordinates receive benefits in the form of more interesting subordinates receive benefits in the form of more interesting

assignments and participation in important decisionsassignments and participation in important decisions leader’s expectation of hard work, loyalty, more responsibility leader’s expectation of hard work, loyalty, more responsibility

Transformational LeadershipTransformational Leadership