Introduction and Scope of Public Management
Public management is the optimal integration of actors, processes, capital, technology, cost, time, and outcomes to achieve public objectives.
Concept
Although the practice of management in the public sector has existed alongside human civilization, its development as a distinct field is marked by key milestones:
- 1887: Woodrow Wilson’s article The Study of Administration distinguished public administration from politics.
- 1910s: F.W. Taylor’s Scientific Management Theory introduced new dimensions to management.
- 1980s onwards: Successful private sector practices were adopted into the public sector, leading to the refined concept of public management.
- Concepts like privatization, service contracts, performance agreements, quality assurance, management audits, grievance redressal, public hearings, social audits, third-party evaluations, citizen charters, client satisfaction surveys, and ICT-based services gained prominence.
- Modern public management embraces innovation, knowledge, and technology-driven managerial styles.
Definition
- The collective activities undertaken by public entities to acquire, mobilize, control, and achieve results using available resources for public purposes and welfare.
- Public services and development should be systematic, timely, high-quality, cost-effective, and results-oriented.
- Reducing Time, Cost, Distance, and Procedure while increasing Quality and Citizen Satisfaction (TCDP↓QC↑).
- Luther Gulick’s POSDCORB: Planning, Organizing, Staffing, Directing, Coordinating, Reporting, and Budgeting.
Characteristics of Public Management
- A refined version of public administration.
- Efficient and effective mobilization of limited resources.
- Multidimensional in scope.
- Optimal integration of actors, processes, capital, technology, cost, time, and outcomes.
- Dynamic and flexible.
- Collective effort.
- Goal-oriented, program-focused, and time-sensitive.
- Includes cost-benefit analysis and risk assessment.
- Prioritizes state governance and public welfare.
- Service-oriented, with profit as a secondary concern.
- Led by elected representatives.
- Emphasizes participation, collaboration, and decentralization.
- Adheres to principles of transparency, frugality, effectiveness, and accountability.
- Combines public sector legitimacy with private sector efficiency.
- Operates within government policies and legal frameworks to maximize results.
- Manages internal affairs and external relations.
- Fosters professionalism, efficiency, and competence.
Dimensions/Functions/Scope of Public Services
- Policy Management: Policy cycle (agenda identification, analysis, drafting, implementation, monitoring, evaluation, and impact assessment).
- Public Service Management: Managing sectoral services, resource acquisition and mobilization, quality standards, partnerships, coordination, and monitoring.
- Development Management: Project cycle (demand analysis, planning, implementation, monitoring, evaluation, impact assessment), resource management, budget cycle, and auditing.
- Human Resource Management: HR planning, recruitment, development, utilization, maintenance, and retirement management; job creation and talent management.
- Organizational Management: Creating structures, formulating laws and procedures, directing, controlling, motivating, and leadership development.
- Information and Communication Technology Management: Data creation, collection, storage, reuse, technical infrastructure management, innovation promotion, capacity building, and security.
- Economic/Financial Management: Policy formulation, implementation, regulation, control, and financial infrastructure management.
- Relationship and Coordination Management: Managing economic, political, and diplomatic relations.
- Emergency Management: Managing contingencies, disasters, changes, and crises.
- Security Management: Ensuring peace, order, and security for physical, human, social, financial, and IT assets.
Objectives of Public Management
a) Political Objectives
- Institutionalize political change.
- Promote civic awareness and education.
- Advance good governance.
- Protect human rights.
b) Economic Objectives
- Achieve rapid and sustainable economic growth.
- Ensure macroeconomic stability.
- Create employment and promote economic equality.
c) Social Objectives
- Promote social justice.
- Ensure social security and protection.
- Foster social development, empowerment, and mainstreaming.
d) Other Objectives
- Protect sovereignty.
- Strengthen foreign relations and diplomacy.
- Promote environmental conservation.
Fundamental Principles of Public Management
- Organization Principle
- Legal Principle
- Public Relations Principle
- Political Guidance Principle
- Research Principle
- Democracy Principle
- Efficiency Principle
- Decentralization Principle
- Coordination Principle
- Legitimacy and Legality Principle
- Reputation Principle
Operational Principles of Public Management
A. Classical Approaches
- Scientific Management Theory (F.W. Taylor): Emphasizes industrial production and productivity through scientific worker selection, division of labor, and modern tools, using scientific methods and monetary incentives.
- Administrative Theory (Henri Fayol): Outlines 14 principles (DAD UUSR DSOE SIE): Division of Work, Authority & Responsibility, Discipline, Unity of Command, Unity of Direction, Subordination of Individual Interest, Remuneration, Degree of Centralization, Scalar Chain, Order, Equity, Stability of Tenure, Initiative, Esprit de Corps.
- Bureaucratic Theory (Max Weber): Advocates merit-based systems, rule adherence, impartiality, political neutrality, hierarchical structure, task specialization, written decisions, and discipline.
B. Behavioral Approaches
- Human Relation Theory (Elton Mayo): Based on the Hawthorne Experiment, emphasizes human behavior and social skills in management, recognizing that people are not motivated solely by money.
- Behavioral Theory: Focuses on understanding human behavior in organizations.
C. Modern Approaches
- Comparative Study: Analyzes different management practices.
- System Approach: Views organizations as systems with inputs, processes, outputs, and feedback, where changes in subsystems affect the whole system.
- Contingency Approach: Adapts management styles to specific situations and environments.
- Participative Approach: Involves stakeholders meaningfully at all management levels.
Scope of Public Management
| Managerial Scope | Functional Scope |
|---|---|
|
|
Functions of Public Management
a) Planning Management
- Plan formulation
- Implementation
- Monitoring and evaluation
- Feedback
- Ensuring active and meaningful stakeholder participation at all stages.
b) Human Resource Management
- Recruitment
- Development
- Utilization
- Maintenance
- Ensuring skilled, competent, and qualified personnel for policy formulation and implementation.
c) Development Management
- Identification
- Operation
- Utilization
- Maintenance
- Addressing citizens’ developmental aspirations.
d) Organizational Management
- Efficient
- Decentralized
- Modern
- Technology-driven
- Critical for effective public management.
e) Service Management
- Cost-effective
- Efficient
- Effective
- High-quality
- TCDP↓QC↑
f) Budget/Financial Management
- Resource identification
- Acquisition
- Utilization
- Accounting
- Auditing/Reporting
- Financial accountability
- An essential element for all management processes.
Conclusion
Public management’s scope is broad and dynamic, aiming to maximize results with minimal resources. Adopting best practices from New Public Management (NPM), New Public Service (NPS), and New Public Governance (NPG) is crucial for efficient resource mobilization and public welfare.
Problems in Public Management
Issues in public management relate to actors, processes, capital, technology, tendencies, circumstances, systems, and structures (policy, behavioral, structural, and others).
Actors
- Short-sighted leadership
- Employees shirking responsibility
- Trade unions prioritizing partisan interests
- Unwanted political interference
Processes
- Note-based decision-making prioritizing process over results
- Lack of clear authority and responsibility distribution
- Lack of operational coordination
- Policy ambiguity and duplication
Other Issues
- Lack of risk identification
- No cost-benefit analysis
- Traditional organizational structures
- Resistance to change
- Lack of ICT-based administration and skilled personnel
- Inequitable resource and opportunity distribution
- Lack of frugality
- Excessive political interference
- Centralized mindset
- Excessive government involvement
- Lack of integrity, ethics, and professionalism
- Absence of contemporary laws and weak enforcement
- Limited use of ICT
- Tendency to avoid responsibility
- Lack of scientific management
- Inability to compete with the private sector
Positive Attributes of Private Management for Public Management
- Professional resource utilization (3Es: Economy, Efficiency, Effectiveness)
- Positive recruitment/talent hunt
- Result-oriented management
- Performance-based pay
- Human resource development (training, motivation, support, opportunities)
- Client-oriented approach
- Proactiveness
- Technology utilization
- Service contracts
- Performance agreements
- Quality assurance
- Management audits
- Grievance redressal
- Client satisfaction surveys
- Innovation and invention
- Corporate Social Responsibility (CSR)
- Global partnerships
- Flat organizational structures
Differences Between Public Administration and Private Management
| Basis | Public Administration | Private Management |
|---|---|---|
| Objective | Public welfare, service | Private satisfaction, profit |
| Process | Legal, complex | Goal-oriented, flexible |
| Target Group | General public | Customers |
| Organization | Vertical, control-oriented | Flat, network, virtual |
| Legal Basis | Parliament-made laws | Board of Directors’ rules |
| Public Participation | Mandatory | Not obligatory |
| Obligation | Unavoidable, monopolistic | Voluntary, public choice |
| Accountability | To the public | To Board and shareholders |
| Stability | High | Low |
| Legitimacy/Legality | Legitimacy | Legality |
Core Values of Public Management
- Publicness: Focus on public interest and concerns.
- Legal Guidance: Law as the primary guide, principles secondary.
- Rule of Law: All entities and rulers are subject to law.
- Public Welfare: Prioritizing national and public interest.
- Citizen Rights: Ensuring citizens’ rights as a core goal.
- National Interest: Protection and promotion of national interests.
- Transparency and Accountability
- Public Participation and Legitimacy
- Focus on State and Nation Building
- Frugality and Optimal Resource Utilization
- Government Leadership and Decisive Role
Basis for Public Management/Administration/Governance
- Constitution
- Laws, policies, and acts
- International laws (treaties, agreements, conventions, commitments)
- Greater national and public interest
- Periodic plans and budgets
- Resource availability and potential
- Institutional capacity
- Capacity and initiative of other governance actors
- Citizen aspirations and demands
- National priorities and needs
- Current national and international context
- Emergencies like disasters and epidemics
Differences Between Public Administration and Public Management
| Public Administration | Public Management |
|---|---|
| Traditional concept | Modern concept |
| Process-oriented, authority-driven | Result-oriented, citizen-centric |
| Expects government control and monopoly | Seeks minimal control and market competition |
| Guided by rules and procedures | Guided by transparency and accountability to citizens |
| Adopts bureaucratic systems | Adopts decentralized, participatory methods |
| Government as service provider | Government as regulator, services via market systems |
| Focus on policy guidance and regularity | Focus on efficiency, frugality, effectiveness (3Es) |
| Emphasizes government control | Emphasizes citizen and community control |
| Confidentiality, indirect accountability | Guided by goals and citizen satisfaction |
| Centralized, directive approach | Adopts service contracts, performance agreements, managerial autonomy |
| Follows classical economics and political guidance | Follows neoclassical economics and private sector practices |
| Older version of public management | Modern version of public administration |