Public Administration

Sem III-Paper III

-Lecture by Sana Shaikh
What is “Administration”?
 The word ‘administer’ is derived from the Latin word administere,
which means to care for or to look after people, to manage affairs.

 Administration may be defined as “group activity which involves

cooperation and coordination for the purpose of achieving desired
goals or objectives”.

 Luther Gullick’s Definition.

 “Administration has to do with getting things done, with the
accomplishment of defined objectives”.
 What is Public Administration?

 In a simple way we can say that public administration is the

administration in which public policies are implemented.

 It is the action/executive part of the government.

 L.D. White defines Public Administration as, “Public

administration consists of all those operations having for their
purpose the fulfilment or enforcement of public policy”.
 Luther Gulick’s Definition
 Public administration is that part of the science of administration,
which has to do with the government; it concerns itself primarily with
the executive branch where the work of the government is done;
though there are obviously problems also in connection with the
legislative and judicial branches.
In this context we can reflect the definition offered by F.A. Nigro and
L.G. Nigro. According to them Public Administration:

• is co-operative group effort in a public setting;

• covers all three branches-executive, legislative, and judicial, and their
inter-relationships;
• has an important role in the formulation of public policy and is thus a
part of the political process;
• is different in significant ways from private administration; and
• is closely associated with numerous private groups and individuals in
providing services to the community”.
 Scope of
Public
Administration
The POSDCoRB view
 Traditional writers restrict the scope of public administration to only one
branch (executive) of the government. But modern administrative thinker
extends the scope of public administration to all branches (Executive,
Legislature, and Managerial) of the government.

 The POSDCORB view in the scope of public administration is given by the

prominent administrative scholar Luther Gulick and Lyndall Urwick.

 According to them every administration has should seven elements. These

seven elements are acronym as POSDCORB. Each letter of this acronym
implies one element of administration.
 P- Planning– It is the task of managers of every administration to plan everything
that needs to be done and the methods for doing them to accomplish the purpose set
for the enterprise.
 O- Organizing- Every organization needs to be well organized. Managers should
allocate the task to their employee and others subordinates by the proper techniques.
 S- Staffing- Staffing refers to the whole personnel function of bringing in and training
the staff and maintaining favorable condition for work.
 D- Directing- It refers to the continuous task of making decisions and embodying
them in specific and general order and instructions and also serving as a leader to the
enterprise.
 CO- Coordinating- It is the important duty of the manager to coordinate between
coworkers and executives.
 R-Reporting- It is referred to inform every report of the work to the executives.
 B- Budgeting- All that goes with budgeting in the form of fiscal planning, accounting
and control.
 The Subject Matter View.
 Subject matter view in scope of public administration simply refers to the subject
matter of public administration.

 For example, if you take Police Administration it has its own techniques in crime
detection, maintenance of Law and Order, etc., which are much and more vital to
efficient police work, than the formal principles of organisation, personnel
management, coordination or finance and it is the same with other services too.

 According to Lewis Meriam: “Public administration is an instrument with two blades

like a pair of scissors. One blade may be knowledge of the field covered by
POSDCoRB, the other blade is knowledge of the subject matter in which these
techniques are applied. Both blades must be good to make an effective tool”.
Significance of
Public
Administration
According Gerald Caiden public administration has assumed the
following crucial roles in contemporary modern society:

 Preservation of polity;
 Maintenance of stability and order;
 Institutionalisation of Socio-Economic changes;
 Management of large scale commercial services;
 Ensuring growth and economic development;
 Protection of the weaker sections of society;
 Formation of public opinion; and
 Influencing Public policies.
Public administration plays its role in many ways which makes the public
administration more significant to us. It plays an important role-
 As an Instrument for Providing Service
 As an Instrument for Implementing the Laws and Policies of the
Government
 As an Instrument for Development and socio-economic change
 As an Instrument for the Sustainable Development
 As an Instrument for National Integration
 As an Instrument for Community Development
 As an Instrument for Public Safety
 As a Separate Academic Discipline
Evolution of Public
Administration as
a separate
Discipline
 Phase I- Politics Administration Dichotomy (1887-1926)
 Woodrow Wilson’s “The Study of Administration” was the first to present the demand for separation
(Politics Administration Dichotomy) between politics and administration.
 It is said that while it is the responsibility of politicians to make political decisions, but politicians do
not have the experience or excellence needed to implement this decision. Therefore, to implement
these policies (decisions) successfully, qualified and trained employees are required. Only the
administration can rely on efficient and sustainable implementation of government policy.
 The legislature decides in the discussion what the will is; the judiciary resolves problems in the
implementation of that state will or policy; On the other hand, the administration applies that reality
with the help of statesmen.
 The New York Bureau of Municipal Research was established in 1906 to make local government work
a success, and in 1911 the organization established the first school of public administration known as
the Training School for Public Service.
 The year 1926 is very important in the theoretical discussion of public administration because this
year L D White published his book “Introduction to the study of public administration”.
 Phase II- Principles of Administration (1927-1937)
 In this phase of the evolution of public administration, discussions on public administration
have been tried as scientific discussions since this time. It is thought that there are a number of
scientific principles in the discussion of public administration that need to be disclosed.
 If these principles are consciously applied by the administrators in appropriate places, it is
possible to increase work efficiency and also to develop public administration as a scientific
discipline.
For example- POSDCORB
 You can see that in this phase of public administration focuses only on increase of efficiency in
administrative work.
 Mohit Bhattacharya rightly observes that “The ‘public’ aspect of public administration was
virtually dropped at this stage and the focus was almost wholly on efficiency. This stage can be
called the stage of orthodoxy, as efforts were underway to delineate firmly the boundaries of a
new discipline of management. Public administration merged into the science.”
 Phase III- Era of Challenge
 In this phase of the evolution of public administration, basically, the theoretical concept of public
administration is challenged from two perspectives.
 First, a new generation of theorists thought that the dividing line between politics and public administration
was never possible.
 Second, the administrative theories that have been published since 1940 criticize administrative principles. The
question arises as to whether there is a universal and ultimate principle in the administration.
 The human component of management is also important. By human elements, they mean the work
environment, the intentions of the director and staff, satisfaction, and so on.
 Dahl also has argued that there are three problems in the scientific theory of public administration (classical
theory of administration).
1. The exclusion of the normative elements from the administrative theory.
2. There have no human aspects in scientific administrative theories.
3. Those Theories are only based on a few examples drawn from limited national and historical settings. This
proves that classical theories are unscientific in nature.
 Phase IV- Crisis of Identity (1948-1970)
 The politics and public administration dichotomy and the application of universal
principles in the field of public administration have been abandoned by the theorists
of public administration since the 1950s.
 Administrative theorists of this time recognized the relationship of public
administration with politics. As a result, public administration became dependent on
political science. In this situation, there is confusion about what is the discussion
area of public administration.
 This is why this phase of public administration is called crisis of identity in public
administration.
 To overcome from this identity crisis, public administration came to be seen as an
interdisciplinary subject.
 Phase V- Public Policy Perspective (1971- Onwards)
 The aim of this theory is to establish which social, political and economic or personal
forces are effective in policy making.
 How much active role the state can play in planning, policy formulation, policy
implementation, how much priority can be given to the policy of public welfare and
public cooperation in administration is considered as the primary goal in development
administration.
 F. W. Riggs, Donald C. Stone, John D. Montgomery, Edward Weidner, Fredrick C.
Mosher, and others who have conducted significant research on development
administration.
 Thus it can be said that the concept of the development of the science of
administration, which began in the last half of the nineteenth century, has become more
mature in the latter half of the twentieth century.
 New interpretations and analyzes have been developed in the field of administration
and management by utilizing the advancement of science and technology.
Public Administration in
the age of
Liberalization,
Globalization and
Privatization
 Reasons for undertaking LPG reforms
 The dismal financial performance of the public sector.
 Low returns against heavy investments in Public enterprises.
 Government’s inability to provide budgetary support to sick enterprises.
The need to create competition for the public enterprises so that they are
forced to earn profits through improved efficiency.
The global trend towards liberalization, privatization and gobalisation
invited the private sector to come forward to invest in infrastructure
areas.
External factors influencing the government like advanced countries,
MNC’s, World Bank, IMF and so on.
 Concepts
 Liberalisation: A process of freeing the economy, from various Governmental regulations such as
industrial licensing, controls on pricing and distribution of products and services, imports and
exports and foreign exchange regulations; control of capital issues by companies; credit controls,
restriction on investment, etc., so that the development and operation of the economy is increasingly
guided by freely operating market forces. Thus liberalisation is essentially a process of withdrawal
of all direct controls on the economy.
 Privatisation: It means transfer, from the public to the private sector, of ownership or control over
assets or activities. Privatisation fosters efficiency, encourages investment – and thus new growth
and employment – and frees public resources for development of infrastructure and social
programmes.
 Globalisation: The process of globalisation not only includes opening up of world trade,
development of advanced means of communication, internationalisation of financial markets and
services, growing importance of multinational corporations, population movements and, more
generally, increased mobility of persons, goods, capital data and ideas, but also of infectious diseases
and environmental problems like pollution.
 The Changing Role of Public Administration in LPG
 Today, the role of public administration is towards more of governance, then of direct involvement. The
public administration has to play enabling, collaborative, cooperative, partnership and regulatory roles .
 As a follow up of this new policy and a series of macroeconomic policy reforms leading to the
liberalization of the Indian Economy, the government had taken various measures to reform the public
enterprises:

❑ Dereservations: Today only 3 areas stand reserved viz., 1) atomic energy 2) minerals specified in the
schedule to the atomic energy (control of production and use) order 1953, and 3) rail transport.
Moreover, some of the dereserved areas are opened not only to domestic private enterprises but also to
foreign private enterprises.
❑ Sick Units: In 1991, the Sick Industrial Companies Act (SICA, 1985) was amended to enable the sick
public enterprises to be referred to the Board for Industrial and Financial Reconstruction (BIFR, 1987)
for revival or closure.
❑ Golden Hand-Shake: In 1988, government initiated the Voluntary retirement Scheme (VRS) to help
the Public Enterprises to shed Excess manpower. This scheme came to be popularly known as “Golden
Hand-Shake” Policy as the workers get a handsome amount from the enterprises at the time of
dissociation.
 ❑ Disinvestment: In 1991-92, the disinvestment programme was started with the main
objective of raising non-inflationary kind of finance for the government budget.
Disinvestment is a process whereby the government withdraws a portion of the total of its
equity in a public enterprise.
❑ Navratnas: In 1997, the Government identifies nine leading, well-performing and high-
profit making public enterprises, as ‘Navratnas’ (Nine Precious Jewels.) They were granted
substantial enhanced autonomy and operational freedom in different fields (financial,
commercial, managerial and organizational) to facilitate their becoming global players.
Navratnas are- SAIL, BHEL, ONGC, IOC, HPCL, BPCL, GAIL, NTPC, VSNL, MTNL, IPCL.
❑ Miniratnas: In 1997, the Government identifies another 97 profit making public
enterprises as the ‘Miniratnas’ (Small Precious Jewels) and granted them financial,
managerial and operational autonomy
❑ Memorandum of Understanding: It is an agreement between government (ministry) and
the public enterprises management to grant autonomy to the later, that is, to reduce day-to-
day interference of the ministry in the management of public enterprises. It defines
obligations of both the parties for improving performance of public enterprises.
1. Element of Competition:
❑ Bureaucratic model- rule bound, conservative, slow, unresponsive, inefficient,
ineffective and high cost- Challenged.
❑ Reforms in terms of NPM, E- governance, etc.
❑ Process of LPG proved useful.
❑ Liberalization encourages competition among the players by ending monopoly of
Government owned companies.

2. Modernization and Technological Preparedness: Free flow of technology and

management techniques led to modernization and increased use of technology in Pub.
Administration.

3. Attitudinal changes: Principle of effectiveness added to traditional principles of Pub

administration- efficiency and economy. Competition allowed consumers to make choice.
Attitudinal change- pub administration became people oriented- improved quality service-
attractive products

4. Increasing importance of specialists: In policy making to achieve efficiency and

effectiveness. Bureaucracy became result oriented due to competition with private players.
5. Decentralization: Privatisation and deregulation shift responsibility for functions from
the public to private sector and is another type of Decentralisation

6. Professional Competence:
❑ Reorientation of attitude- new work ethics-acceptance of NPM,
❑ Introduction of private management principles in Public Administration,
❑ Entry of MNC’s,
❑ Free play of labour and manpower
 New Public Management
 New Public Management or NPM is an approach that seeks to build an administration by
implementing flexibility, transparency, minimum government, de-bureaucratization,
decentralization, the market orientation of public services, and privatization.
 It is a paradigm shift from traditional public administration to New Public Management.
 NPM makes a citizen-friendly administration from a rigid, hierarchical, disciplined
bureaucratic administration that needs to make weak public administration strong and
effective.
 NPM is also defined as a process in which the liberal market principles of efficiency and
economy are implemented in public sector management for making public sectors more
effective.
 New Public Management is also known as Managerialism, Market-based Public
Administration, Entrepreneurial Government, etc.
 Principles of New Public Management
1. The main principle of NPM is to emphasize economy, efficiency, and effectiveness by downplaying
the importance of regulation.
2. Reorganizing the bureaucracy into different agencies.
3. Increase competition through the introduction of quasi-market systems and contract systems.
4. Expenses reduce and facilitate income growth.
5. Shift to greater competition in public sectors.
6. NPM emphasizes more on private-sector styles of management.
7. Managerialism that means the role of the administrator transforms as a manager.
8. Increasing the flexibility and mobility of organizational structure, personnel, and working conditions.
9. Greater emphasis on consumerism. To NPM citizens are considered as consumers.
10. Secure participation of people through the decentralization process.