Foundations of Modern Management and New Public Management

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Foundations of Modern Management and New Public
Management

• Amita Singh
• Centre for the Study of Law and Governance
• JNU

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Key Management Principle

• "Profitability is the Key to Value. If You've Got
  it, Flaunt It. If You Don't Have It, Get It
  (business strategy). If You Can't Get It, Get Out
  (capital strategy)."
• --- Bill Fruhan (Financial Strategy Studies in
  the Creation, Transfer and Destruction of
  Shareholder Value)

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Role of Management   

• Investing Decisions (Capital Strategy) CEO,
  Entrepreneurship, RD, Shareholder Value, Venture
  Capital
• Financing Decisions (Accounting), CFO, Finance
• Operating Decisions (Business Strategy)
  Competitive Intelligence, Control-Corporate,
  Culture-Corporate, Customers, Distribution, 

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Management History

• Competence is not innate but a result of
  training..Impact of training on productivity
• 4 booksPiece Rate System,Shop floor Management,
  Art of Cutting Metals, Principles of Scientific
  Management.

Frederick W. Taylor
1856-1915
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Pillars of Modern Management

• Standard Output in relation to time
• scientific selection of workers
• managers should be inspirational forces
• managers-workers are interdependent.

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Evolution of Modern Management

• Management is the result of the technological
  advancement that followed the industrial
  revolution. Within one hundred and fifty years
  from 1750 to 1900 capitalism and technology
  conquered the globe and created a world
  civilization
• Peter Drucker 1993.

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TAYLOR BABBAGE

• Time and Motion Studies
• Differential Piece Rate System
• ShopFloor management
• Functional Foremanship

• Entrepreneurial management through a
• Rigid investigation of management
•   Cost determination
•   Wage incentives

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• HUGO MUNSTERBERG Psychology Industrial
  Efficiency

• HENRY L.GANT
• Task and Bonus System

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HUMAN RELATIONS MOVEMENT

• ELTON MAYO
• ROETHLISBERGER
• DICKENSON
• Hawthorne Western Electric Company,USA.
• 1926-1933

•  Human Relations
•   Motivation
• Behavioural Industrial Psychology

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MODERN ORGANIZATIONAL MANAGEMENT

•   Multidimensional reach Chester Bernard
  ,Functions of the Executive
•     Multivariate systems Rise of modern
  Governance
•     Information Processing Ability Allen Schick
  Cybernetic State
•     Learning Organization Donald F.Kettl
  1994,Gifford Eizabeth Pinchots 1993 Intelligent
  organization
•     Situational systems Cleland and Kings
  project based,,Tapscott and Caston Virtual.,
  Network Rhodes ,Snow and Miles.
•     Cross Cultural
•     Socially responsible management

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NEW PUBLIC MANAGEMENT

•           Cost cut
•           Downsizing
•           Speed
•           Transparency
•           Efficient Service delivery to people
•           Increasing participation
•           Economy

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Ideological Roots of NPM

• Thatcherism 1979
• Reaganism 1980
• Brian Mulroney of Canada
• Public Choice Agency Theory Transaction-Cost
  Economics.

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BASICS OF NPM

• a) Decentralization
• b)Contracting Out c) Downsizing bureaucracy
• e)Service to Citizens
• f)Financial and Taxation Reforms
• g)Law and Regulatory Reforms
• h)Information Technology Reforms
• i) Opening Up

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SUSTAINABILITY INDICATORS

• Micromanagement Motivation Measurement.
• Resonance, Rigor (theory) and Relevance
  (action).

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BASIC READINGS

• Peter Savages Dismantling the Administrative
  State
• Osborne and Gaebler 1992 Reinventing
  Entrepreneurial State
• Hood 1991 articles with Jackson
• Clinton-Gore Report From Red Tape to Results
  Creating a government that Works better and

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DRAWBACKS

• predictability of rule makingissues of
  human rights, labour laws and social justice.
• political stability entitlement
  obligation and corporatism
• freedom from corruption Loss of democratic
  accountability and ministerial accountability

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DEPENDENCE ON E-GOVERNANCE

•  Kenyas foreign exchange fraud
•  Computerization led to breakdown of human
  coordination at Ghana Volta River Authority
  because extra income was lost
• South East Asian Countries and also African
  countries faced work stalling at Electricity
  Companies due to computerization of meters.

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MANAGEMENT A HOLISTIC PARADIGM

• Lynton Caldwell, An ultimate task
  ---maintaining the viability of spaceship earth
  and giving its evolution a direction beneficial
  to humanity

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THANKING YOU

• 28.1.2008