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Breaking Down Administration
Literal meaning-
So administration means – management of affairs – public/private

When two men cooperate to roll a stone that neither one could have moved alone, the elements
of administration have occurred. This simple act has the two essential characteristics of what is
called administration. There is a purpose—moving the stone—and there is cooperative action—
several persons using combined strength to accomplish something that could not have been
done without such a combination.
In its broadest sense, Administration can be defined as the activities of groups cooperating to
accomplish common goals.

Prominent scholars have defined administration as :

 Frederick Lane - “organizing and maintaining human and fiscal resources to fulfil a group’s

 Leonard D. White - “The art of administration is the direction, co-ordination and control of
many persons to achieve some purpose or objective.”

 Ordway Tead - “Administration is conceived as the necessary activities of individuals

(executive) in an organization who are charged with ordering, forwarding and facilitating the
associated efforts of a group of individuals brought together to realize certain defined

 E. A. Nigro - “Administration is the organization and use of men and materials to

accomplish a purpose.”

 Herbert A Simon - “In its broadest sense, administration can be defined as the activities of
groups co-operating to accomplish common goals.”

 J. M. Pfiffner - “the organization and direction of human and material resources to achieve
desired ends.”


Putting all these definitions into perspective, we can establish for a fact that administration is
characteristic of all human enterprises to achieve a purpose or a predefined objective. However,
the central idea of administration is rational action, defined as,
“action correctly calculated to realize given desired goals”.
Thus, administration is cooperative human action with a high degree of rationality.
Human action is cooperative if it has effects that would be absent if the cooperation did not take
place. The significance of high degree of rationality lies in the fact that human cooperation varies
in effectiveness of goal attainment, whether we think in terms of formal goals, the goals of
leaders or the goals of all who put in their cooperative efforts.
The term administration is also used in a narrower sense to refer to those patterns of behaviour
that are common to many kinds of cooperating groups and that do not depend on either the
specific goals toward which they are cooperating, or the specific technological methods applied
to attain these goals. For example, the two men rolling the stone could have used various
techniques in accomplishing their purpose. They might have merely pulled and shoved the stone
in some manner. Or they could have used a pole or a steel bar as a lever. They might have
fastened a rope to it, with a pulley attached to the nearest tree. They might have broken the
stone with sledge hammers and then carried away the fragments. The methods of moving the
stone are legion.

However, administration in the more restricted sense is not basically concerned with the chosen
technological methods. It is concerned with such questions as how the method was chosen—in
this case—how the two men moving the stone were selected and induced to cooperate in
carrying out such a task, how the task was divided between them, how each one learned what his
particular job was in the total pattern, how he learned to perform it, how his efforts are
coordinated with the efforts of the other.

Although the illustration of the two men and the stone expresses the basic characteristics of
administration, the complexity of modern life requires organized activity much more involved
and specialized. To build and market an automobile, for example, calls for a complex system of
interrelationships. Specialists of a bewildering variety must bring their competences to bear on
the problem at exactly the right time and the right place. Raw materials must be bought,
processed, and transported to the place of assembly. The factory must be planned and built.
Thousands of men with exactly the right tools and skills must be on hand at an appropriate time.
Thousands of independent parts must be put together in a certain sequence. After the
automobile is completed it must be transported and sold—a task requiring the aid of still other
group of persons.

In all of this activity, every step is essential to the completion of the next step and any failure to
cooperate at any one point may disrupt the whole pattern and make the accomplishment of the
goal impossible. If the steel makers fail to provide the steel; if the wheel maker fails to produce
the wheels; if the dealers fail to sell the cars; the factory will close. The key to the whole process
is effective cooperation among the persons engaged in the operation.

Since the problems are complex, the work has to be carefully planned. Estimates must be made
as to what materials and persons will be needed at a given place and at a given time. The
participants must be induced to cooperate. And because resources are limited, the amount of
materials and the amount of human energy used to accomplish the task must be held to a
minimum. The employment of ten clerks to accomplish a task that one clerk could do is
inefficient—it brings more energy to bear on a task than is necessary for its accomplishment.

Defining Administration :
In general sense Administration can be defined as the activities of groups co-operating to
accomplish common goals. It is a process of management which is practiced by all kinds of
organisations from the household to the most complex system of the government.

Public Administration

There is dual usage of the words Public Administration. They are used to designate and
delineate both:
 An area of intellectual inquiry, a discipline or a study.
 A process or activity—that of administering public affairs.
While the two meanings are of course closely related, they are nevertheless different; it is a
difference similar to that between biology as the study of organisms and the organisms
themselves. Public administration as an academic discipline is a little over a hundred years old,
whereas public administration as an activity—the context for which this study is based—is
traceable to the earliest periods of human history when man started living in organized societies.
Public Administration is the management of governmental affairs; it comprises activities of all
levels of government: national (federal), state and local. It is any kind of administration in the
public interest which, in other words, has simply come to mean governmental administration.
Administration of private enterprises is known as private administration.
In the above definitions of Administration, you might observe, lay stress on two essential
elements of administration, namely:
 Cooperative effort, and
 Pursuit of common objectives.
Thus, Public Administration is the organization and management of men and materials to
achieve the objectives of the state. This definition emphasizes the managerial phase of
administration and relates the conduct of the affairs of any other social organization,

commercial, philanthropic, religious, or educational, in all of which good management is
recognized as an element essential to success.
The objective of public administration is the most efficient utilization of the resources at the
disposal of officials and employees. These resources include not only current appropriations and
material equipment in the form of public buildings, machinery, highways and canals, but also
the human resources bound up in the hundreds of thousands of men and women who work for
the state. In any given direction, good administration seeks the elimination of waste, the
conservation of material and energy, and the most rapid and complete achievement of public
purposes consistent with economy and the welfare of the workers.

Public Administration has been used in two senses. In the wider sense it includes all the
activities of the government whether falling in the sphere of legislature, executive or judicial
branch of the government, in the narrow sense Public Administration is concerned with the
activities of the executive branch only.

1. Wider View
 Woodrow Wilson defined Public Administration as detailed and systematic execution of
public law; every particular application of general law is an act of administration.
 L D White observes, “Public Administration consist of all those operations having for
their purpose the fulfilment or enforcement of public policy”.
 Pliffner defines It would seem that “Public Administration consists of getting the work of
government done by co-ordinating the efforts of the people so that they can work
together to accomplish their set tasks”.
2. Narrow View
 Luther Gullick ‘Public Administration is that part of the science of administration which
has to do with Government and thus concerns itself primarily with the executive branch
where the work of the government is done.
 Simon – “By Public Administration is meant in common usage the activities of the
executive branches of the National, State and Local Governments”.


A frequent question asked by scholars and practitioners in the academic community is whether
public administration is a science or an art. There are conflicting views and opinions on this
issue and each appears to be justified in its own way. Thus, Public Administration can be
regarded as both science and art.

Public Administration as an Art :

Public Administration lends itself two meanings:
 Firstly, it is used to designate a process or an activity of administering governmental affairs.
 Secondly, it is used to designate an area of intellectual or academic inquiry, a discipline or a
The first is definitely an art. But is Public Administration, as an academic discipline of study of
governmental affairs, a science?

Administration both public and private, is often consists of a series of acts or is concerned with
the doing of deeds; thus it is undoubtedly an art. In the Art of Administration, Ordway Tead
“Administration is the comprehensive effort to direct, guide and integrate associated human
strivings which are focused toward some specific ends or aims. Administration is, in short, a fine
art, because it summons an imposing body of special talents on behalf of a collaborative creation
which is integral to the conduct of civilized living today.”
Quite obviously, the process or activity of administering governmental affairs is an art that can
be acquired and developed, over time, under proper training. So, administration is the art of
government; in reality, it is government in action.
Public Administration is not merely a theory but an art which is learned by practical application
of knowledge. It deals more with actual practice rather than mere theoretical concept. A public
administrator cannot be a success by merely being a theorist. The best knowledge can be gained
over time by constant practice. To the proponents of this view, Public Administration is an art of
getting things done.

Public Administration as a Science :

People in this school of thought have identified certain specific and clear principles on which
day-to-day administration of states is being run and managed. These specialists are also of the
opinion that Public Administration has well defined field and sufficient data for application to
arrive at facts and has obtained considerable perfection to claim a place in the family of physical

Existence of a body of principles in a discipline entitles it to claim the title and status of science.
If Public Administration can prove that it has developed a set of principles, it obviously qualifies
to be rated as science. Does Public Administration have a set of such principles?
The essential characteristics of science include:
 Absence of normative (or, ethical) value,
 Predictability of behavior, and finally,
 Universal application.

All these three features are as yet imperfectly present in Public Administration.

Public Administration cannot be called a science until the following three conditions are
 First, the place of normative values in Public Administration should be clearly identified
and made clear.
 Second, greater understanding should be gained of human nature in the field of Public
 And third, the principles of administration, could be derived from a body of cross-
cultural studies, thereby making them relatively free from cultural bias.

The last few decades have seen a remarkable development of the science of Public
Administration. The transformation of the laissez-faire state into the modern welfare sate has
enlarged its sphere, added to the functions of government and aroused interest in the problem
of efficiency in government, which had remained for long an art proceeding by way of trial and
error. Industrial engineers like Taylor pioneered the scientific method with its emphasis on
experimentation, observation, collection of data, classification and analysis, and the formulation
of laws and principle. The subsequent progress of the scientific method added substantially to
such facets of administration as organization, planning, personnel administration and budgetary
control. Today Public Administration is a multidimensional study. It is both an art as well as


As a co-operative group activity, administration is truly universal and operates in all types of
public and private organizations. In other words, administration occurs in both public and
private institutional settings. Its nature depends upon the nature of the setting and goals with
which it is concerned. On the basis of the nature of the institutional setting, public
administration can be roughly distinguished from private administration.

Distinction between public and private administration

Sl Characteristics Public Administration Private Administration

1 Legal framework Government officials They act as per profit

are obliged to act within motive and don’t have
their legal powers and to obey administrative
not outside the law laws

2 Political Direction Public administration private administration

takes place in a political is non-political

3 Consistency of treatment A government official is Private officials flow

required by law to with the motive of
maintain a high degree profit and need not
of consistency in his follow law of equality
dealings with the
public. He has to
observe the principle of
equality of treatment

4 Public accountability Public administration is Not accountable to the

responsible to the public
public, though not
directly but indirectly
through political
executive, legislature,
judiciary, etc

5 Profit motive Absent Present


6 Prestige & Power High Comparatively low

7 Public Gaze All the actions of public This does not happen in
administration are private administration
exposed to wide public
gaze because the public
closely watches it.

8 Service and Cost Most governments Private administration

spend more money income often exceeds
than their income or expenditure without
revenues. That is the which they cannot
reason for finding survive
generally a deficit
budget that is,
expenditure exceeding

9 Monopolistic and Essential Services In the field of public In large investment

administration, there is projects and low
generally a monopoly of income projects and
the government and it huge risk projects they
does not generally allow themselves do not take
private parties to part leaving room for
compete with it Government.

10 Officials remain Anonymous In public They are not

administration, even anonymous
the most senior officials
remain anonymous and
their identity is not
disclosed. This is so
because whatever they
do, they do in the name
of the government and
not in their own name

Similarities between Public and Private Administration

 Public and private administration serves the people, whether being called clients or
customers. Both have to maintain close contact with people to inform about their services
and also to get feedback about services and product. In both the cases, public relations help
them to inform and improve their services to the people.
 Both Pubic and private administration carries on continuous efforts to improve their
internal working and also for efficient delivery of services to people or customers.

 There is a similar type of hierarchy and management systems, both in public and private
sectors. Both have same kind of organisation structure, superior – subordinate relationships,
 The private concerns are also subjected to many legal constraints. Government is exercising
much control over business firms through regulatory legislation such as taxation, monetary
and licensing policies, etc. Consequently, they are not as free as they once used to be.
 In personnel management, the private organisations have been influenced greatly by the
practices of public organisations.
 In modern times the principle of profit motive is not peculiar to private administration,
because it is now accepted as a laudable objective for public sector enterprises also.
Both public and business administration rely on common skills, techniques and procedures.


According to William Schulze,
 Administration is the force, which lays down the object for which an
organisation and its management are to strive and the broad policies under which they
are to operate.
 An Organisation is a combination of the necessary human beings, materials,
tools, equipment and working space, appurtenances brought together in systematic and
effective co-relation to accomplish some desired object.
 Management is that which leads guides and directs an organisation for the
accomplishment of pre-determined object.
To put the above in simple terms, administration sets the goal, management strives to attain it
and organisation is the machine of the management for the attainment of the ends determined
by the administration.


Nature means – the main characteristics of the something & what is to be expected from it as
per its nature. In context to public administration, scholars have expressed two different views –

 According to this view, public administration includes all activities such as managerial,
technical, clerical & manual activities, undertaken in an organisation to achieve the given
 L.D. White & Dimock were proponent of this view.
(L D White - Public Administration consists of all those operations having for their
purpose the fulfilment or enforcement of public policy
Marshal E Dimock - administration is concerned with the ‘what’ and ‘how’ of
government. The ‘what’ is the subject matter, the technical knowledge of a field which
enables the administrator to perform his tasks. The ‘how’ is the technique of

management, the principles according to which cooperative programmes are carried to
 In developing countries, like India, public administration has to be studied with the
integral approach as 90% of the work originating at the clerical level is okayed at the top
level – that is why the ‘clerk’ is considered as the kingpin of Indian administration.

 According to this view, public administration includes only the managerial activities &
not the technical, clerical & manual activities which are non-managerial in nature.
 Simon, Smithburg Thomson & Luther Gulick adopt this view.
 (Gullick says ‘Administration has to do with getting things done; with the
accomplishment of defined objectives’.)

Conclusion ;
 Postal dept. can be the best example of integral view, since over there everybody from the
top job to the post man’s job is of importance.
 Whereas the managerial view can be applied to each and every organizations, since
POSDCORB (Planning, Organizing, Staffing, Directing, Co-coordinating, Reporting and
Budgeting) activities as prescribed by Luther Gulick are present in every organization.

Approaches to the Study of Public Administration

The emergence of the study of Public Administration can be dated back to 1887, the year in
which the political scientist, Woodrow Wilson an article entitled The Study of Administration.
Since then, there have been different approaches to the study of public administration when this
subject as a separate academic discipline was born.
These are relatively distinct approaches that emanate from the different structures and
functions of administrative activities. These approaches—briefly reviewed below—are best
regarded as ways in which to approach the study of administrative activity, rather than as

Historical Approach
The theorists of the historical approach believe that knowledge of history is essential for a
thorough study of any field. The historical approach sought to explain the administrative
institutions in the light of their past. It analyses the administrative institutions by tracing their
development within a particular time span. Therefore, this approach organizes and interprets
the information relating to administrative institutions in a chronological order.
The father of the study of Public administration Woodrow Wilson emphasized the historical
method as one of the two best suited methods (the other being comparative method) for the
study of Public Administration.
A society furnished with rich history would gain huge benefit employing this approach as the
uniqueness of its administrative systems is thus identified. In fact, quite a sizable number of
administrative institutions can be comprehended in the light of their past by adopting this

approach. For instance, it is rather difficult to understand the creation of Nigeria into one unit
without going into her origin and her phases of development.

Legal Approach
Another name for the legal approach is juristic approach. The proponents of this approach
sought to study public administration as part of law and focus on the formal legal structure and
organization of public bodies. The primacy of the legal approach is concerned with power—its
structure and functions. It lays emphasis on the formal organization of offices, official duties,
limitations of power and discretionary authority of administrators. Its source materials include
constitution, codes of law, office manuals of rules and regulations and judicial decisions.
Some European countries, for example, Germany, Belgium and France, are particularly known
to have employed the legal approach to the study of public administration. In these countries
there are two principal divisions of law, namely: constitutional and administrative.
Constitutional law deals with the three main organizations of the government, their interrelation
and the distribution of power among them; whereas administrative law is mainly concerned
with the structure and functions of public bodies, departments and authorities.
The legal approach is valuable for the understanding of the legal framework within which the
administrative system operates. However, by neglecting the informal forces operating in the
organization (the sociological and psychological variables), it remains to a great extent an
incomplete approach to the study of public administration. Frank J. Goodnow is known to be
the main advocate of the legal approach.

Philosophical Approach
The philosophical approach comes with a comprehensive range as it takes within its purview all
aspects of administrative activities and enunciates the ideals underlying those activities. It tends
to focus attention on the rationalization of human behaviour in administrative activities.
By a philosophy of public administration is meant that scheme of classification and analysis
which looks at values of the administrative structures and the values and expectations of the
individuals or society it ought to serve. This might incorporate a philosophy of the science of
administration, i.e., the ways and methods by which the administration, ranks and justifies
Philosophical approach is said to be the oldest approach, examples of which are found in the
following works: Republic, by Plato; Leviathan, by Thomas Hobbes, Second Treatise on Civil
Government, by John Locke.

Systems Approach
The system to the study of Public Administration is derived from the technique of engineering.
It appeared on the scene in the 1960s. The term system may be defined as ‘a complex whole, a
set of connected things or parts’. In other words, a system is a collection of interrelated parts
which receives inputs, acts upon them in an organized manner and thereby produces certain

Generally, systems theory means that the administration is seen as a system of interrelated and
interdependent parts (sub-systems) who interact among themselves. Interdependence implies
that a change in one part influences the other parts, ultimately affecting the entire system.
Persons in the organization are seen as the basic unit of organizational systems.
All human organizations are open sub-systems engaged in transactions within the larger social
system, that is, society. All sub-systems receive inputs in the form of human and material
resources from the larger system, while giving out outputs in the form of products, services or
rewards to its members as well as to the larger system.
Characteristically, organizational sub-systems are adaptive in nature; they can affect the larger
system and can as well be affected by it; they are dynamic in the sense that they undergo
continuous change as a result of interaction with other sub-systems within the larger social
A major contributor to systems analysis in organizational theory is Herbert Simon. Simon views
the organization as a total system, a composite of all the sub-systems which serve to produce the
desired output. His basic assumption is that the elements of organizational structure and
function emanate from the characteristics of human problem-solving processes and rational
choice. Thus, the organization is seen as a system made up of individuals making choices and
behaving on the basis of their reactions to their needs and environment.

Case-method Approach
The case-method approach began to develop in USA in the 1930s. It narrates what has actually
occurred in the past in the sphere of administration by giving detailed account of specific events
leading to a decision taken by a public administrator. In other words, the Public administration
case is a narrative of the events that constitute a decision of an administrator.

The case-method approach emphasizes the decision-making behaviour of the administrator and
the influence of the various factors such as personal, legal and institutional on the decision
making process. It is very useful to study the empirical behaviour of decision-makers and the
dynamics of decision-making in public administration. Therefore, it is realistic, but the pitfall is
that this approach deals with only those decision-problems that involve policy rather than
technical issues. It is also limited in its ability to provide the conceptual knowledge and
principles of public administration. Despite its limitations, the case method is believed to
remain a consistent feature in the study and teaching of public administration.

Mechanical or Managerial Approach

This is the earliest approach to the study of public administration. Its main advocates are
Leonard D. White , William F. Willoughby, Frederick W. Taylor and Richard Warner. These
theorists deliberated efforts and focused attention on achieving efficiency in public
administration. Taylor particularly believed that the problems of efficiency were alike in private
industry and public administration and advocates the idea that the principles of organization are
of universal applicability to all forms of administration. His resolution was to break down
workers, experiment with different work methods and procedures, and finally adopt those which
proved most efficient. He was concerned with mechanical efficiency and viewed Public

administration as a purely technical and non-political organization concerned with ‘getting
things done’ effectively.
The basic idea underlying the mechanical approach is that administration is a mechanical
organization and that we can find out certain principles which will make the organization
function efficiently. According to his approach, efficiency is chiefly the number one axiom in the
value scale of administration. The mechanical approach may therefore be also called “efficiency
oriented approach or scientific management approach” with a little difference of emphasis.

Behavioural Approach
The behavioural approach also called the socio-psychological approach is basically concerned
with the scientific study of human behaviour in diverse social settings, being that it incorporates
a diversity of perspectives, including the Human Relations Movement, Simon’s Model of
Decision-making, Theory of Organizational Humanism, and Contingency Theory. The approach
grew out of the criticism against the traditional approaches which laid emphasis on descriptive
analysis rather than substantive one.
According to James Fesler the following characteristics can be ascribed to behavioural
 It entails the study of actual behaviour, usually taking the individual as the preferred unit
of analysis.
 It is multidicisplinary in focus.
 It calls for ‘rigor’ in the use of scientific procedures.
 It proscribes prescription (that is, it is primarily descriptive in intent).
In the sphere of Public Administration, Behaviouralism dates back to 1930’s with the Human
Relations Movement and was later popularized by Chester Irving Barnard, Herbert Alexander
Simon and others. Simon argued that ‘Administrative behaviour’ is part of behavioural science
movement and the only difference lies in the subject-matter of various disciplines. He said,
‘before a science can develop principles, it must possess concepts’ this was however, after
critically examining the principles of public administration. In his book, administrative
behaviour, Simon rejects the traditional approach and holds that public administration should
be concerned with the study of human behaviour in organization.
Behaviouralists observed that the conduct of administration is greatly influenced by human
sentiments, perceptions, and the environment in which administration operates. It is
interdisciplinary in nature as it draws on sociology and psychology.


By the scope of Public Administration, we mean the major concerns of Public Administration as
an activity and as a discipline.

1. Scope of Public Administration as an activity

Broadly speaking, Public Administration embraces all the activities of the government. Hence as
an activity the scope of public administration is no less than the scope of state activity. In the
modern welfare state people expect many things – a wide variety of services and protection from

the government. In this context public administration provides a number of welfare and social
security services to the people. Besides, it has to manage government owned industries and
regulate private industries. Public administration covers every area and activity within the ambit
public policy. Thus, the scope of public administration is very wide in modern state.

2. Scope of Public Administration as a Discipline

The scope of public administration as a discipline, that is subject of studies, comprises of the
The POSDCoRB view
Several writers have defined the scope of public administration in varying terms. Gullick
sums up the scope of the subject by the letters of the word POSDCoRB which denote:
Planning, Organisation, Staffing,Directing, Coordinating reporting the Budgeting.
 Planning - the working out in broad outline the things to be done, the methods to be
adopted to accomplish the purpose.
 Organisation - the establishment of the formal structure of authority through which
the work is sub-divided, arranged, defined and coordinated.
 Staffing - the recruitment and training of the personnel and their conditions of work.
 Directing - making decisions and issuing orders and instructions.
 Coordinating - inter-relating the work of various divisions, sections and other parts
of the organisation.
 Reporting - informing the superiors within the agency to whom the executive is
responsible about what is going on.
 Budgeting - fiscal planning, control and accounting.
According to Gullick the POSDCoRB activities are common to all organisations. They are
the common problems of management which are found in different agencies regardless
of the nature of the work they do. POSDCoRB gives unity, certainty, and definiteness
and makes the study more systematic.
The critics pointed out that the POSDCoRB activities were neither the whole of
administration, nor even the most important part of it. The POSDCoRB view over looks
the fact that deferent agencies are faced with different administrative problems,which are
peculiar to the nature of the services, they render and the functions they performed. The
POSDCoRB view takes into consideration only the common techniques of the
administration and ignores the study of the ‘subject matter’ with which the agency is
concerned. A major defect is that the POSDCoRB view does not contain any reference
to the formulation and implementation of the policy. Therefore, the scope of
administration is defined very narrowly,being too inward looking and too conscious of the
top management.

The Subject Matter View

 We all know that public administration deals not only with the processes but also with
the substantive matters of administration, such as Defence, Law and Order, Education,
Public Health, Agriculture,Public Works, Social Security, Justice, Welfare, etc. These
services require not only POSDCoRB techniques but also have important specialised
techniques of their own which are not covered by POSDCoRB techniques.

 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 toefficient
police work, than the formal principles of organisation,personnel management,
coordination or finance and it is the same with other services too. Therefore, the study of
public administration should deal with both the processes (that is POSDCoRB
techniques and the substantive concerns).
Conclusion :
 We conclude the scope of public administration with the statement of 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”.
 We may conclude the discussion with the observation of Herbert Simon who says that
Public administration has two important aspects, namely deciding and doing things. The
first provides the basis for the second. One cannot conceive of any discipline without
thinking or deciding.
 Thus Public administration is a broad-ranging and an amorphous combination of theory
and practice.

Importance of Public Administration as Specialised Subject
of Study
The study of administration assumed significance, according to Woodrow Wilson, as a
consequence to the increasing complexities of society, growing functions of state and growth of
governments on democratic lines. This exhaustive list of functions made to think as to ‘how’ and
in what ‘directions’ these functions should be effectively performed. To this Wilson suggested
that there was a need to reform the government in the administrative field. As per Wilson, the
object of administrative study is to discover what government can properly and successfully
does and how it can do these things with utmost efficiency and the least possible cost either of
money or of energy.
The importance of public administration as a specialised subject can be attributed to the
following reasons:
1. One of the important reasons is the practical concern that the government today has to work
towards the public interest. The first and foremost objective of public administration is to
efficiently deliver public services. In this context, Wilsonian definition of the subject as
efficiency promoting and pragmatic field was the first explicitly articulated statement on the
importance of a separate discipline of public administration.
During the first half of the preceding century, a numbers of countries have appointed
committees to look into the problems of administration and recommended suitable
administrative machinery to respond to diverse public needs.
2. Administration is looked at, in the social science perspective, as a cooperative and social
activity. Hence the concern of academic inquiry would be to understand the impact
ofgovernment policies and operations on society. What kind of society do the policies
envisage?; To what extent administrative action is non-discriminatory?

How is public administration functioning and what are the immediate and long term effects
of governmental action on the social structure, the economy and polity?; etc. are questions
requiring careful analysis. From the social science perspective, public administration, as a
discipline, has to draw on a variety of sister disciplines such as History, Sociology,
Economics, Geography, Philosophy, Psychology, etc., with the objective to explain and not
just to prescribe.
3. Public administration has a special status in the developing countries. Many of these
countries, after independence from the colonial rule have stressed upon speedy socio –
economic development. Obviously, these countries have to relay on government for speedy
development. The latter requires a public administration to be organised and effectively
operated for increasing productivity quickly. Likewise, social welfare activities have to be
effectively executed. These aspects have given birth to the new sub-discipline of development
administration. The emergence of development administration is indicative of a felt need for
a body of knowledge about how to study the third world administration and at the same time
to bring about speedy socio-economic development with government’s intervention.
Development administration has therefore, emerged as a sub-discipline to serve the cause of
4. Public administration, as witnessed holds a place of significance in the lives of people. It
touches them at every step. For most of their needs, the citizens depend upon public
administration. In view of the important role of public administration in the lives of people,
the citizens of a country cannot ignore. Therefore, its teaching should become a part of the
curriculum of educational institutions. People must get to know about the structure of
government, the activities it undertakes and the manner in which these are actually
performed. The study of public administration will contribute to the realisation of the values
of citizenship.

Importance of Public Administration as an Activity

The contemporary age, which has witnessed the emergence of ‘Administrative State’, public
administration has become an essential part of society and a dominant factor. The functions it is
called upon to perform, have expanded in scope and nature, and what is more, are continually
increasing. Many of them are more positive in nature because they care for the essential
requirements of human life, be ithealth, education, recreation, sanitation, social security or
others. It is, therefore, a creative factor, with its motto being ‘human welfare’.
These functions are over and above its regulatory functions. The view points of eminent
scholars, as referred to below, amply reflect the significance of public administration.
 Woodrow Wilson: “Administration is the most obvious part of government; it is government
in action, it is the executive, the operative and the most visible side of the government.
 Brooke Adams: “Administration is an important human faculty because its chief function is
to facilitate social change and to cushion the stock of social revolution”.
 W.B. Donham, ‘If our civilization fails, it will be mainly because o breakdown of
 Paul H. Appleby: ‘Administration is the basis of government. No government can exist
without administration. Without administration government would be a discussion club, if
indeed, it could exist at all’.
The role of public administration in various facets is noted below:
1. Basis of the Government: A Government can exist without a legislature or an independent
judiciary. But no Government can exist without administration.

2. An instrument for providing services: Public administration mainly concerned with the
performance of various activities performed by government in the public interest. Felix A.
Nigro aptly remarks, “The real core of administration is the basic service which is performed
for the public”.
3. An instrument for implementing policies: Modern governments go a long way in formulating
and adopting sound policies laws and regulations. It should not be forgotten that such
policies, laws, etc. are not merely printed papers. Such paper declarations of intent are
translated into reality by public administration thus converting words into action and form
into substance.
4. A stabilising force in society: Public administration is a major force for bringing stability in
society. It has been observed that though government often changes, but violent change is
seldom experienced by administration. An element of continuity between the old and the
new orders is provided by public administration. It does not hold true only of
constitutionalchanges of government in democratic countries, but is also reflected when
there are revolutionary changes in the form and character of government.
5. An instrument of social change and economic development: Public administration’s role as a
change agent is particularly crucial in developing nations. It is expected of the state at
present to work for accelerating socio-economic change and not to be a passive agency to
maintain the status quo.
6. Technical Character: The present day government is expected to provide various services to
its population. The increase in the number of functions undertaken by the government
require highly specialised, professional and technical, services. Modern public
administration usually represents a galaxy of all of a nation’s occupations.
7. Emergence of Welfare and Democratic state : Emergence of welfare and democratic state has
led to an increase in the activities of public administration compared to that of the laissez-
faire state. The state has to now serve all sections of people in the society.
8. Industrial Revolution : The industrial revolution gave rise to socio-economic problems
making the government to assume new roles and responsibilities such as protection and
promotion of the rights of workers in industrial establishments, etc. Consequently, the state
hasenacted a number of Industrial and Labour laws and it is imperative for public
administration to implement such laws in order to meet the requirements of labour welfare.
9. Scientific and Technological Development : Scientific and technological developments have
brought about welcome additions in infrastructure such as power, transport and
communication system. The invention of telephone, telegraph and other mechanical devices
such as typewriter, tele-printer, and calculators, photocopying machines, computers, fax and
the electronic mail has brought revolutionary changes in office administration. All these
have made possible ‘big government’ and ‘large scale administration’. Besides changing the
ethos and character of public administration, the revolution in information and
communication technologies have contributed to improved delivery of services to people.
10. Economic Planning : Centralised economic planning has been pursued in many developing
countries as a method for socio-economic development. It requires a large number of
experts and elaborate administrative machinery for plan formulation, implementation,
monitoring, and evaluation.


Thomas Woodrow Wilson, the President of U.S.A. and recipient of noble prize, is regarded as
the founder of the discipline of Public Administration.
He got education in politics, administration and law.It is interesting to note that when he was in
his graduation at Johns Hopkins University, he wrote his first book entitled “Congressional
Government”, in which he proved his metal. The book published in 1885 .His famous essay
“The Study of Administration” (1887) is hailed as a ‘significant trail-blazing effort’ because
through this he stressed the need for the scientific study of administration.
Woodrow Wilson, besides being Professor of Political Science, was also an administrative
scholar, an educationist, a historian, a reformer, a statesman and a prolific writer. His main
works are Congressional Government (1885); The State (1889); Division and Reunion 1829-
1889 (1893); An Old Master and Other Political Essays (1893); Mere Literature and other Essays
(1896); George Washington (1896); A History of the American People (1902); and
Constitutional Government in the United States (1908).
Woodrow Wilson was deeply influenced by the contemporary events. It was a time when in the
U.S.A. spoils system had degenerated itself and its abuse at political level was an open secret.
Feeling deeply concerned about this sorry state of affairs, he wanted to reform the system and to
him effective reform lay in the study of administration. Further, responding to the spirit of the
reform movement, he proposed that administration should be separated from political and
policy concerns.
However, Woodrow Wilson came to prominence when he contributed his essay on the “Study of
Administration” in 1887 in which he traced the history of the study as a new development in
political science, outlined its significance and suggested the ways and means to carry it out.

Science of Administration :
At the very outset of his essay, Wilson clarified the concept of administration. To him,
‘administration is the most obvious part of government; it is government in action; it is the
executive, the operative, the most visible side of government, and it is of course as old as
government itself.’
However, according to Wilson, nowadays the functions of government are becoming more
complex and difficult as he said that ‘there is scarcely a single duty of government which was
once simple which is not now complex.’ Besides, these functions are vastly multiplying in
number. In brief, ‘the idea of the state and the consequent ideal of its duty are undergoing
noteworthy changes and to him the ‘idea of the state is the conscience of administration.’ Seeing
every day new things which the state ought to do, the next thing is to see clearly how it ought to
do them. Thus in the changed scenario Wilson felt the need and significance of the science of
administration. He explained that this is the reason why administrative tasks have nowadays to
be so studiously and systematically adjusted to carefully tested standards of policy.
In this regard he aptly remarked that ‘it is getting to be harder to run a constitution, than to
frame one’ . Hence there should be a science of administration, which shall seek :
 To straighten the path of government
 To make its business more business like
 To strengthen & purify its organization
 To crown its duties with dutifulness

Evolution of the Study of Administration :
While tracing the evolution of the science of administration, Wilson lamented that this science
can hardly be discerned in the administrative practices of U.S.A. mainly due to the poisonous
atmosphere of city government, the crooked secrets of state administration, the confusion, and
According to Wilson, it is a time (the third period) when the people have to develop
administration in accordance with the constitutions they won for themselves in a previous
period of struggle with absolute power. Undoubtedly, it would be a better proposition as
compared to any European country.
However, he lamented that the people are not prepared for the tasks of the new period. To him,
the main hurdle in the way of achieving this cardinal objective is the concept of popular
In this regard he aptly remarked that, ‘it is harder for democracy to organize administration
than for monarchy’. Elaborating this point further he said, ‘an individual sovereign will adopt a
simple plan and carry it out directly; he will have but one opinion, and he will embody that one
opinion in one command. But this other sovereign, the people, will have a score of differing
opinions. They can agree upon nothing simple; advance must be made through comprises, by a
compounding of differences…’ Thus wherever regard for public opinion is a first principle of
government, practical reforms must be slow and all reforms must be full of comprises.
Notwithstanding, this hard reality and the difficulties involved, he unequivocally advocated for
the study of administration independent from politics.

Dichotomy between Politics and Administration :

Wilson argued that the field of administration is a field of business. It is removed from the hurry
and strife of politics; it at most points stands apart even from the debatable ground of
constitutional study. It is a part of political life only as the methods of the counting-house are a
part of the life of society; only as machinery is part of the manufactured product.
Likewise, at another place he observed that ‘administration lies outside the proper sphere of
politics. Administrative questions are not political questions. Although politics sets the tasks for
administration, it should not be suffered to manipulate its offices.’ Politics is thus the special
province of the statesman, administration of the technical official.”
Wilson referred to another distinction between administration and politics—the distinction
between constitutional and administrative questions, between those government adjustments
which are essential to constitutional principles and those which are merely instrumental to the
possibly changing purposes of a wisely adapting convenience.

Public Opinion and Administration :

Wilson, thus, raised a pertinent question—the proper relations between public opinion and
administration or in other words what part shall public opinion take in the conduct of
administration? He seemed to be quite forthcoming by replying that ‘public opinion shall play
the part of authoritative critic.’ But at the same time he was conscious of the fact that it is not an
easy proposition particularly in U.S.A. where public opinion is meddlesome.
Wilson was of the firm view that administration in the United States should be at all points
sensitive to public opinion. But at the same time administrators must adhere to the policy of the

government they serve and that policy should be the creation of statesmen, whose responsibility
to public opinion will be direct and inevitable.

Comparative Methods :
After dealing with the subject matter and objects of the study of administration, Wilson also
examined the best suitable method for it. He unequivocally favored comparative method when
he said that ‘without comparative studies in government we cannot rid ourselves of the
misconception that administration stands upon an essentially different basis in a democratic
state from that on which it stands in a non-democratic state.’ It is only after such studies that
one can appreciate the democratic set up in which all issues affecting the public welfare are
debated and determined on majority basis.
In this context, he also observed that ‘we can never learn either our own weakness or our own
virtues by comparing ourselves with ourselves.’ In Wilson’s own words, ‘we can borrow the
science of administration with safety and profit if only we read all fundamental differences of
condition into its essential tenets. We have only to filter it through our constitutions, only to put
it over a slow fire of criticism and distil away its foreign gases.’

Critical Evaluation ;
Critics point out that on the one hand, Wilson considered politics and administration as
separate disciplines while on the other hand he based administrative principles on politics.
Further, Wilson’s views have been criticized on the ground of being inconsistent. In this regard
Dwight Waldo has pointed out that he has tried to link administration to business methods.
He himself has noted that his study is ‘too general, too broad and too vague’ as he has raised too
many questions and provided answer to too few.
Wilson is also criticized on the ground that his view lack originality. In this regard Daniel W.
Martin has said that Woodrow Wilson’s advocacy of politicsadministration dichotomy had been
employed in Europe nearly a century earlier. The academic field of administration had matured
in France between 1812 and 1859. What is more, no one including White, Dimock …identified
Wilson as the founder of the study of administration
In brief, notwithstanding certain amount of ambiguity and inconsistency in his views here and
there, Wilson contribution to administrative thought is phenomenal as he laid down the
intellectual roots of Public Administration as an independent discipline by releasing it from the
clutches of Political Science. He has also emphasized the significance of administration in the
wake of ever increasing number and nature of state activities in a democratic polity. Further, he
appreciated the value of public opinion in administration. Considering administration as a
science he advocated comparative method for its study so as to enable one to learn form the
experiences of others.


Nicholas Henry in his book entitled “Public Administration and Public Affairs” has explained the
evolution of the discipline keeping in view its definitional crisis into following five successive

Paradigm I: The politics/Administration Dichotomy, 1900-26
Paradigm II: The Principles of Administration, 1927-37
Paradigm III: Public Administration as Political Science, 1950-70
Paradigm IV: Public Administration as management, 1956-70, and
Paradigm V: Public Administration as Public Administration, 1970-

However in a more logical sense the development of Public Administration as an academic field
can be discussed through the following five successive phases:
Phase I: The Politics/Administration Dichotomy (1887-1926)
Phase II: The Principles of Administration (1927-1937)
Phase III: Criticism and Challenges (1938-1950)
Phase IV: Crisis of Identity (1950-1970)
Phase V: Public Administration as an Independent Discipline (1970 Onwards)

Phase I: The Politics/Administration Dichotomy

 Woodrow Wilson was the first scholar who mainly set the tone for the early study of Public
Administration through his essay entitled “The Study of Administration” appeared in 1887
in which he emphasized the necessity of developing the scientific foundations of the
He originated the ‘politics/administration dichotomy‘- the distinction between political
activity and administrative activity in public organization by observing that it ―is getting
harder to run a constitution than to frame one’
 Wilson‘s view was further continued by Frank J. Goodnow, who in his book “Politics and
Administration”, published in 1900 contended that there were two distinct functions of the
government viz. ‘politics’ and ‘administration’. According to him, “politics has to do with
policies or expressions of the state will while administration has to do with the execution of
these policies”.
He explained, further, that the heart of his distinction lies in the classic separation of
powers, which prescribes the desirability of entrusting ―in large measures‖ the expression or
formulation of the ―will of the sovereign‖ to ―a different organ‖ than is charged with
executing that will.
 In the beginning of the 20th century, Public Administration started gaining popularity
mainly because of the keen interest taken by scholars in the public reforms movement going
on in American universities. Resultantly, a Committee on Practical Training for Public
Service was established in 1912 by the American Political Science Association which
recommended that professional schools were needed to train public administrators. This
committee became the forerunner of the American Society for Public Administration, set up
in 1939.
 In 1926 Leonard D. White‘s “Introduction to the Study of Public Administration” was
published which is regarded as the first book entirely devoted to the discipline. The main

thrust of White‘s text book was ‘Politics should not intrude on administration. ….Public
Administration is capable of becoming a value –free science in its own right and the mission
of administration is economy and efficiency.’
Thus, White strengthened the notion of a distinct politics /administration dichotomy.
Accordingly, whatever Public Administration scrutinized in the executive branch was
regarded as factual and scientific; while the study of public policy making and related matter
was left to the political scientists.
 It was mainly because of the emphasis on science and fact in Public Administration, a
foundation was laid for the later discovery of certain scientific principles of administration.

Phase II: The Principles of Administration (1927-

 In 1927, W. F. Willoughby‘s book “Principles of Public Administration” was published in
which he asserted that ―”in administration there are certain
fundamental principles of general application analogous
to those characterizing any science.” They could be discovered and
administrators would be expert in their work if they learned how to apply these principles.
Further, efficiency in administration would be increased if these principles are applied. By
the very fact that the principles of administration were principles, it therefore, followed that
they could be applied successfully in any administrative setting.
 Among the most significant works relevant to this phase were M. P. Follet‘s “Creative
Experience”(1924), Henri Fayol‘s “Industrial and General Management” (1930) and James
D. Mooney and Alan C, Reiley‘s “Principles of Organization” (1939) all of which delineated
varying number of overarching administrative principles.
 However, the landmark study in the field which enhanced the prestige of the discipline was
the publication of Luther Gulick‘s and Lyndall Urwick‘s “Papers on the Science of
Administration”(1937). According to these scholars, the general thesis of this paper is ―that
there are principles which can be arrived at inductively from the study of human
organization which should govern arrangements for human associations of any kind.‖
Further, they propounded the famous concept of POSDCORB – final expression of these
Resultantly, Public Administration touched its zenith and this phase is regarded as a golden
era in the evolution of the discipline.
 Organizational theorists often dub this school of thought Administrative Management since
it focused on the upper hierarchical levels of organization.
 A related literature that preceded the work in administrative management was under
continuing development in business schools, often called Scientific Management. The most
notable contribution to the literature was F. W. Taylor‘s “Principles of Scientific
Management” (1911). However, Scientific Management had less effect on public
Administration during its principles phase because it focused on lower level personnel in the
 Speaking in terms of locus and focus Mohit Bhattacharya has rightly pointed out that ―”the
‘public‘ aspect of public administration was virtually dropped at this stage and the focus was
almost wholly on efficiency.”
 The lack of locus, if not, perhaps, the sharpening new focus of public administration during
this period, made itself evident within the university community.
 Scholars who identified with the study of Public Administration nonetheless found it useful
to establish American Society for Public Administration which continues to function as the

nation‘s primary association of scholars and professionals of Public Administration, and as
the sponsoring organization of the field‘s premier Journal Public Administration Review.

Phase III: Criticism and Challenges (1937-1950)

 In the very next year (1938), the mainstream Public Administration was challenged with the
publication of Chester I. Barnard‘s “The Functions of the Executive”. The challenge came
basically in two forms: first, rejection of the idea of politics administration dichotomy and
second, principles of public administration lacking in scientific validity.
 A book entitled “Elements of Public Administration” edited by Fritz Morstein Marx (1946)
was one of the first major volumes to question the assumption that politics and
administration could be dichotomized. It was argued that administration cannot be
separated from politics because of its political nature. Further, administration is not only
concerned with implementation of political policy decisions but also plays an important role
in their formulation.
 In 1946, Herbert Simon gave a foreshadowing of his Administrative Behavior in an article
entitled “Proverbs of Administration” published in Publication Administration Review.
However, the most formidable dissection of the principles notion appeared in 1947 when
Simon‘s “Administrative Behaviour: A Study of Decision-Making in Administrative
Organization” was published. In this book Simon showed that for every principle of
administration there was a counter principle, thus rendering the whole idea of principles
He advocated the behavioral approach to public administration to make it a more scientific
discipline. He focused upon decision- making as the alternatives to the principles approach.
 In the same year, Robert A. Dahl also countered the claim of principles of public
administration as a science in his article entitled “The Science of Administration :Three
Problems”. He observed: ―We are a long way from a science of public administration. No
science of public administration is possible unless:
a) the place of normative values is made clear;
b) the nature of man in the area of public administration is better understood and his
conduct is more predictable; and
c) there is a body of comparative studies from which it may be possible to discover
principles and generalities that transcend national boundaries and peculiar historical
 The same theme was reflected by Dwight Waldo‘s in his book “The Administrative
State”(1948) when he ‘attacked the notion of unchanging principles of administration, the
inconsistencies of the methodology used in determining them, and the narrowness of the
values of economy and efficiency that dominated the field‘s thinking.’
 Thus, by midcentury the two defining pillars of Public Administration – the
politics/administration dichotomy and the principles of administration – had been

Phase IV: Crisis of Identity (1948 – 1970)

 The scholars of public administration reacted to this crisis by reestablishing the linkages of
Public Administration first with Political Science and then with the Management. Speaking
in terms of Political Science, it can be said that most of the writings on Public

Administration in the 1950‘s spoke of the field as an ‘emphasis,’ ‘and area of
interest’ or even as a ‘synonym’ of Political Science.
John Gaus, for example, in his famous article “Trends in the Theory of Public
Administration” (1950) observed that ”A theory of public
administration means in our time a theory of politics
However, they were not liked and encouraged by political scientists.
 During this period two developments took place –the growing use of the Case Study Method
and the rise and fall of Comparative and Development Administration.
o The emergence of the case study method reflected the response of Public
Administration to the behavioral revolution going on in that time in social sciences.
o Scholars like Robert Dahl and Dwight Waldo pointed out that ‘cultural factors could
make public administration on one part of the globe quite a different ….on the other
part.’ As a result of this revised thinking, the study of Comparative Public
Administration started in Universities and Colleges.
However, the real impetus came in 1960 when Comparative Administrative Group
was founded which received liberal grants from Ford Foundation.
o The Foundation‘s emphasis on the Third World led to a semi-autonomous sub-field
of the Comparative Public Administration called the Development
o The most notable contribution in this sphere was that of F. W. Riggs. But
Comparative Public Administration from its very origin emphasized upon theory
building and to seek knowledge for the sake of knowledge. The purely scholarly
thrust of Comparative Public Administration led to its downfall so much so that in
1973 the Comparative Administrative Group was disbanded.
 Due to their second-class status in the discipline of Political Science, some scholars of Public
Administration began to search for an alternative and they found the same in management
which sometimes is called administrative science. They argued that ‘ organization
theory was, or should be, the overarching focus of public administration.’
A number of developments led to the selection of management, with an emphasis on
organization theory, as the paradigm of public administration. In 1956, the important
Journal Administrative Science Quarterly was founded on the premise
that the distinction between business and institutional administration is false and that
administration is administration.
Further, such works as James G. March and Herbert Simon‘s “Organizations”, Richard
Cyert and March‘s “A Behavioural Theory of the Firm,” March‘s “Handbook of
Organizations” and James G. Thompson‘s “Organizations in Action” gave solid theoretical
reasons for choosing Management as the paradigm of Public Administration.
As a paradigm, Management provided a focus and not a locus. It offered techniques, often
highly sophisticated techniques, that require expertise and specialization, but in what
institutional setting that expertise should be applied is undefined.
 But in both the situations i.e. its linkages either with Political Science or Management, the
essential thrust was one of Public Administration loosing its identity. That is why this phase
known as period of identity of crisis for the discipline of Public Administration.


Phase V: Public Administration as an Independent

Discipline (1970 Onwards)
 Renaissance of Public Administration : Couple of factors,
complimentary to each other, contributed in the process of renaissance of Public
o The first was the development of interdisciplinary programs focusing upon policy
science. In this regard three distinct intertheoretical linkages – a) politics-
administration union, b) Economics-administration confluence, and c) organization
theory-administration intermixing -- can be identified
o The second was the emergence of New Public Administration (NPA)
– an outcome of first Minnowbrook Conference held in 1968 sponsored by Dwight
Waldo -- which put more emphasis on values replacing the traditional goals of
efficiency and effectiveness. Besides, it laid stress on relevance, social equity and
change. The overall focus of NPA movement was to make administration less generic
and more public, less descriptive and more prescriptive, less institution-oriented and
more client-oriented, less neutral and more normative, but it should be no less
scientific all the time.
 NASPAA : The above twin intellectual currents compelled the scholars of public
administration to think in terms of academic autonomy by severing their ties both with
political science and management. These, in turn, made the public administrators proud as
they started asserting that their profession is useful to the society.
In this backdrop, in 1970 National Association of Schools of Public Affairs and
Administration (NASPAA) was established which comprises of institutions of higher
learning of different countries offering courses on major public administration programs. It
is worth mentioning that over the years, the efforts of NASPAA has led to the increase in the
number of separate departments of public administration considerably. Even more and
more political science departments are joining this association. Likewise, the number of
public administration programs which are housed in department of management or school
of business administration has declined noticeably. Thus, the formation of NASPAA
represented the development of public administration as an independent area of study.
 On theoretical side : due to the impact of NPA, normative questions were being
reassessed in this newly emerged discipline.
o The philosophy of ‘neo-liberalism’ provided a powerful base for the setting
up of public administration in ‘public interest,’ thereby adding an ethical dimension
to it.
o The system theory originated from natural sciences and ecological approach
also strengthened the theoretical base of public administration. The ‘Sala Model‟ of
Fred Riggs has proved an important milestone in this direction.
o Likewise, Yehezkel Dror‘s contribution in the field of Policy Sciences is
providing new directions to the discipline. Increasingly, public policy academics and
practitioners have utilized the theoretical concepts of political economy to explain
political outcomes such as the success or failure of reform efforts.
 New Public Management (NPM) : In the late 1980‘s New Public
Management (NPM) theory advocated by David Osborn and Ted Gaebler in their book
Reinventing Government emphasized the use of private society style models, organizational

ideas and values to improve the service and service orientation of the public sector. It treated
individuals as ―customers‖ or ―clients‖, rather than as citizens.
 Further, in the late 1990‘s, In response to the dominance of NPM Janet and Robert
Denhardt proposed a new public service model known as digital era
governance. It focused on themes of reintegrating governmental responsibilities, and
digitalization exploring the transformational capabilities of modern IT and digital storage.
 The Public Choice Approach of Vincent Ostrom underlined the fact that an
era of State Minimalism has started in the 21st century which demand small but effective
government from public administration.
 Another trend which one can observe is that the distinction between
administration and management is becoming irrelevant. Traditionally,
management is broadly concerned with industries and private enterprises while
administration refers to government machinery. Now when government itself is conducting
industrial and commercial activities through public enterprise and private enterprises, in
turn, are adopting more and more bureaucratic system; and public and private sectors are
collaborating with each other in the wake of privatization, the difference between
administration and management becomes meaningless.

New Public Administration

By the end of 1960s the American society appeared to be in a state of disruption, dissolution and
breakdown. The traditional Public Administration had shown its weaknesses in understanding
the agony of the present social & economic crisis. Other problems – nuclear fear, Vietnam war,
pollution, population, riots etc .
The earlier dogmas of public administration ‘economy’ and ‘efficiency’ were found inadequate
and incomplete objectives of administrative activity. The impact of administration on human
character is more important than its efficiency and economy. Public administration cannot be
‘value free’, it is to be ‘value-oriented’ as certain human values are to promote in the society.
The term New Public Administration was used to describe this new trend in the field of public
administration. The two books “Towards a New Public Administration, The Minnow-
brook Perspective” edited by Frank Marini and published in 1971 and “Public
Administration in a Time of Turbulence” edited by Dwight Waldo and published
simultaneously gave currency to the concept of New Public Administration.
These two books edited the ideas of an academic get together of younger age-group on public
administration called the Minnow-brook Conference held in 1968. This conference expressed
dissatisfaction with the state of the discipline of public administration and sought to give it a
new image by discarding traditional concepts and making it alive to the problems presented by
the “turbulent times”.

The major landmarks in the growth and emergence of New Public Administration are the
1. The Honey Report on Higher Education for Public Service, 1967.
2. The Philadelphia Conference on the Theory and Practice of Public Administration, 1967.

3. The Minnowbrook Conference, 1968.
4. Publication of "Toward a New Public Administration: The Minnowbrook Perspective"
(edited by Frank Marini), 1971.
5. Publication of "Publication Administration in a Time of turbulence" (edited by Dwight
Waldo), 1971.

The Honey Report on Higher Education for Public Service,

It was in 1966 that John Honey of Syracuse University undertook an evaluative study of Pubic
Administration as a field of study in the U.S. Universities.
The Honey report, submitted in 1967 identified four problems confronting the discipline which
needed immediate action:
(1) Inadequate funds at the disposal of eh discipline;
(2) Uncertainly and confusion over the status of the discipline (Is it a discipline, a science, or
a professions);
(3) Institutional shortcoming (inadequacy of Public Administration departments);
(4) Lack of communication between Public Administration scholars and the practicing
It was this report which aroused considerable interest in U.S. Universities. It was however,
found wanting in several respects. It did not say anything about the role of Public
Administration in crisis ridden society of the period. However, the report became the basis of
discussions for the wider issue of the role of Public Administration in solving and creating social

The Philadelphia Conference on the Theory and Practice of

Public Administration, 1967
In 1967 The American Academy of Political and Social Science organized a conference in
Philadelphia under the chairmanship of James C. Charles worth.This conference was a get
together of young scholars and professionals .
Major viewpoints expressed in the deliberations of the conference are:
(1) The scope of the subject should remain flexible to facilitate its growth.
(2) Since administrators are involved in both policy making and implementation, so politics –
administration dichotomy is irrelevant.
(3) Excessive rules and rigidity acts as a hindrance for administration to work towards rapidly
changing environment .
(4) The discipline and practice of public administration should focus on emerging socio-
economic-environmental problems
(5) There are great socio-economic disparities, hence social equity should be given due


In 1960’s, public administration came under the influence of younger generation, which was
feeling restless with the prevailing status of the discipline as highlighted by the Honey Report

and Philadelphia Conference. Public administration was facing some sort of generation gap. In
1968, thirty-three young scholars and practitioners of public administration gathered at the
Minnowbrook Conference centre under the inspiring leadership of Dwight Waldo and
challenged the traditional public administration .It was this youth conference on public
administration, which gave rise to ‘new public administration’.

Anti-Goals of New Public Administration:

Robert T. Golenbiewski mentions three “anti-goals” (what they reject) and five “goals” (what
they want to approach) of the New Public Administration.
These are:
(1) The literature of the New Public Administration is anti-positivist which means:
a) They reject the definition of public administration as ‘value-free’,
b) They reject a rationalist or perhaps deterministic view of humankind,
c) They reject-any definition of public administration that was not properly involved in
(2) The New Public Administration is anti-technical—that means they decry the human being
sacrificed to the logic of the machine and the system.
(3) The New Public Administration is more or less anti-bureaucratic and anti-hierarchical.

Goals of New Public Administration:

From a positive perspective, the five goals of New Public Administration are:
(1) Relevance: Public administration focused on efficiency and economy. These had little
significance to modern problems and so were insignificant. NPA wanted meaningful studies
towards realities of social life.
(2) Values: Reject value neutral stand of public administration. It wants openness about values
being served through administration action.
(3) Social equity: Administrators should be champions of underprivileged. They should use
discretion to protect poor.
(4) Change: Reject status quo and bring innovations in administrative machinery for bringing
about social change.
(5) Client focus: Focus on providing goods, services to clients and also giving them a voice in
how, when, what is to be provided.

Main characteristics of New Public Administration as per

Frederickson :
(1) Less generic more public
(2) Less descriptive more prescriptive
(3) Change oriented
(4) Competent to implement good policies
(5) Client oriented
(6) Normative
(7) Scientific
Frederickson called New Public Administration as “second generation behaviouralism”.

NPA unlike development administration is applicable to western countries too .

Critical evaluation of New Public Administration:

(1) The critics of the doctrine of New Public Administration hold that the New Public Ad-
ministration possesses only a kind of difference by definition. For example, Campbell argues
that it “differs from the ‘old’ public administration only in that it is responsive to a different
set of societal problems from those of other periods.”
(2) Robert T. Golembiewski holds that New Public Administration must be counted a partial
success, at best and perhaps only a cruel reminder of the gap in the field between aspiration
and performance. He describes it “revolution or radicalism in words and (at best) status quo
in skills or technologies.”
(3) The critics also fear that the advocates of New Public Administration are trying to arrogate to
themselves what falls within the domain of political institutions.
(4) According to James C. Charlesworth, “Public Administration theory has not caught up with
emerging problems, like the huge military industrial complex, riots, labour unions and
strikes, public school conflicts, slums, the impingement of sciences and developing
(5) The New Public Administration has not yet developed a theory of its own. It was the product
of the social ferment of the 1960’s and early 1970s in the United States. The Minnow-brook
Conference was a youth conference which felt that old public administration had failed to
solve the current social problems.
(6) Further, the concept of social equity is vague. What it means, what it requires in public
programmes, opinions vary greatly.


 Minnowbrook conference has become institutionalized now. It is conducted every 20 years.
The first effort in this regard took place during September, 1988 through the Minnowbrook
Conference- II. This conference following the part-I has become an academic get-together in
every 20 years to identify and address the changes in both, the theory and the practice of
Public Administration and thereby, to redefine the public administration.
 This conference took place under the leadership of Dwight Waldo. It was also conducted in
background of a crisis related to the identity of the discipline. During the 1970s, because of
the new-liberalism, there was an emphasis on the minimalization or rolling back of the state
or shrinking of the state. The emphasis was not only to reduce the size of the state and
increase in the size and operations of the market but also developing a state based on the
market. It resulted into a reengineering of the state beginning with the developed countries.
For the state to become efficient, it needed to reduce its area and size of operation.
 Dwight Waldo said that in the era of rolling back of the state, role of the state will be
redefined but the importance of the state will not be undermined.
 It was acknowledged that the state is undergoing a change and these changes are market-
related stages. Thereby, it emphasized on study of certain concepts like LPG, M&A,
contracting out, outsourcing, imposition of user-fee etc. The committee also reemphasized
on the Discretionist character of Public administration as was the case in Minnowbrook
Conference-I. It was said that these concepts, market-related practices are adopted by the
state in order to become efficient and the efficiency of the state should be primarily directed
towards attaining equity, constitutional goals and ethos of the society. Thus, the philosophy
of the state i.e. well-being of the citizens, remained unaltered. The conference reemphasized
the importance of concepts like justice, democracy, honesty, integrity etc. This conference

also appreciated a new public service approach (the market principles will be used to
enhance the purposes of the state and society) .

Difference between minnowbrook I & II :

 Minnowbrook Conference-I was more revolutionary and radical .
 Minnowbrook-II Conference was attended by a large number of scholars. This significantly
showed that the discipline has grown and gained vibrancy.
 The average age of the scholars in this conference was considerably higher than the previous
Minnowbrook conference.
 In terms of gender equity, the Minnowbrook Conference-II was more gender wise equal than
the Minnowbrook Conference-I.
 The participation of minorities was higher in Part-I than Part-II.
 In terms of the academic background, the scholars of Minnowbrook-II were more diverse
than Part-I.

 This conference took place during September, 2008. It was chaired by Rosemary O’Leary. It
was conducted in two phases. The first phase was a pre-conference phase. In this conference,
the young and emerging scholars of public administration were asked to contribute a five
page critique of public administration. Almost 56 proposals were accepted and considered.
In this conference, a single formal critique of public administration was not being able to be
developed rather a dozen of areas of concern in public administration were identified such as

o Democratic Performance Management

o Performance measurement
o Globalization and International Perspective
o Administrative ethics and values
o Information technology and management
o Methodology and inter-disciplinary perspective

 The second phase was conducted in a round table format. It was a get-together of senior
scholars. The scholars were divided into various groups based on their areas of concern.
Simultaneously, a number of issues relating to public administration were discussed. Finally,
three major areas of emphasis were identified. They are :
o It emphasized on Comparative Studies. In this conference, it was acknowledged
that because of impact of LPG and IT, no system could be meaningfully studied in
isolation. The systems across the world are interconnected.
o It emphasized on Action Research and Methodological Pluralism. In this
conference, there was an agreement that for the study of Public Administration to
be meaningful, it is required that the teachings in Public Administration should
include the teachings on methodologies and tools and techniques to undertake
research. It was realized that a discipline will become more and more enriched
when there will be more R&D. If the students are more equipped with the tools
and techniques, they can independently carry out their own research. This will
provide a robust foundation for the study of the discipline. It also emphasized
that the findings of the research should be subjected to Peer Review. It also

recognized the importance of Multiple Approach or Multiple viewpoints towards
the study of public administration.
o It came out with a redefinition of public administration. According to this
conference, public administration is considered as a socially embedded process of
relationship, dialogue and action to promote human flourishing for all (Refer to
the discussion on good governance).


 This conference will discuss the future of Public Administration, public management and
public services around the world in 2028. We see that Minnowbrook Conference-III had
non-American members as well. The part-IV will be a global conference and the American
isolationism is expected to break. Till 1980s, public administration as a discipline did not
have any identity outside USA. The publication of literature on public administration was
dominated by USA. The theories, concepts and the methodological developments were also
American. Also, almost all of the institutions imparting education in public administration
were American.
 But, after 1980s public administration gained an identity globally and moved beyond
America. A number of important concepts and theories started to develop outside USA.
Now, a large number of publications and literature relating to public administration is being
published outside USA. Across the world, universities and colleges are imparting education
in public administration. No more the academic get-together is restricted to the
Minnowbrook conference. Now, a number of academic get-together on public
administration are taking place outside USA. Thus, public administration is gaining an
international character. If the Minnowbrook conference has to retain its relevance, it ought
to go global. If it remains American in character, it will lose its relevance

Public choice approach (1960’s)

Public choice approach is the application of economics in the study of public administration.
This approach is advocated by Chicago school of economists such as Vincent ostram and
niskanen during 1960s.It was suggested as a method to improve the performance of government
in quality delivery of goods and services.
Public choice is defined by Dennis Mueller as “the economic study of non-market decision
making or simply the application of economics to political science”.
This theory challenges the traditionally established public interest theory of democratic
government which holds that decision making in government is motivated by selfish
benevolence by elected representatives or government employees. In other words, public
interest theory presumes that public servants are motivated by a desire to maximize society’s
welfare. The public choice theory repudiates this view and takes a poor view of bureaucracy.
William A. Niskanen says, the career bureaucracy is self-aggrandizing and shows indefinite
capacity for its expansion.
He has criticized bureaucracy :

 Civil servants attitude towards the consumer of their service is different from the attitude
of private sector producer to his customers.
 Producer’s revenue comes from his customers, but in bureaucracy there is no clear
correlation between public revenue and expenditure, the revenue comes from the finance
 The civil servant unlike private entrepreneur has little interest to minimize the costs and
maximize the profits as he gains nothing financially from such efforts.
 In bureaucracy there is no incentive to save tax payer’s money, rather the bureaucrat is
interested to get maximum budget allocations for his bureau. This leads to higher cost of
production per unit.
William Niskanen holds that to raise the performance of public bureaucracy, the remedy has to
be sought more and more in terms of private markets where the structure and incentive system
exist for the supply of public services. The monopoly of the bureaucracy must be reduced by
exploring private sources of supply of public services.
Thus public choice theory commits itself to market values and criticizes the government
monopolies. The market system, it may be mentioned, as based on a competitive principle a
customer has the opportunity of choosing between competitive service providers.
As under the public choice theory, public bureaus will have to compete with the private
suppliers, there will be a continual search for improvement in the quality of public services and
their supply to the service seekers expeditiously. This will promote decentralization also.
Under the impact of Public Choice Theory, it may be noted the role of private sector has
expanded and the state sector has shrunk both in direct administration and through
privatisation of public enterprises. In several fields like communication and transport, airlines,
television, energy production and distribution, oil exploration and its marketing, a number of
private agencies have come up to provide public services.

1. Private sector does not enter areas with low profits and long gestation.
2. Protection of consumer interests are important.
3. Through pc draws to failures of replacing it with market is too simplistic solution.
4. Completely takes out values & public spiritedness out of P.A.

Thus, public choice approach helped in justifying the role of market forces in the delivery of
services and legitimized the institutional pluralism.

Challenges of liberalization,
privatization & globalization

Liberalization : When Government removes the restrictions from the fields of
production exchange and distribution through its industrial export-import and taxation policies,
it is called the Policy of liberalization.

Advantage Challenges

Liberalization will provide free trade services Foreign industries will capture Indian market,
to everyone, and will give foreign market, Indian government has come under the foreign
domestic product will have scope of export, capitalized class, control of WTO will increase
area of industries will develop industrial on India, India’s Import of goods will increase,
growth rate will increase etc. domestic products can’t survive in
liberalization will not reduce disparity.

Privatization : Primarily, it is the process of transferring ownership of a business,

enterprise, agency, public service or public property from the public sector (a government) to
the private sector, either to a business that operate for a profit or to a non-profit organization.

Advantage Challenges

Privatization will help reducing the burden on Privatization will encourage growth monopoly
exchanger, it will help the profit making public power in the hands of big business house. It
sector units to modernize and diversify their will result in greater disparities in income and
business, it will help making public sector wealth. Private enterprise may not show any
units more competitive, it will help in interest in buying shares of loss making and
improving the quality of decision – making of sick enterprises, and result in lop- sided
managers because their decisions will be made development of industries in the country, the
without any political interference. limited resources and the private individuals
Privatization may help in receiving sick units cannot meet some of the vital task which alter
which have become a liability on the public the very character of the economy. The private
sector, without government financial backing, sector may not uphold the principles of social
capital market will force public sector to be justice and public welfare.

Globalization : ‘Globalization’ means the coming together of different societies and

economies via cross border flow of ideas, finances, capital, information, technologies, goods and
services. The cross border assimilation can be social, economic, cultural, or political. But most of
the people fear cultural and social assimilation as they believe this would have a negative impact
on the existing culture of their society. Globalization, therefore, has mostly narrowed down to
economic integration and this mainly happens through three channels; flow of finance, trade of
goods and services and capital movement.

Advantage Challenges

It will help to restructure the production and The globalization process is an essence a
trade pattern in a capital, labour abundant tremendous redistribution of economic power
economy in favor of labour intensive goods at the world level which will increasingly
and techniques, Foreign capital will be translate into a redistribution of political
attracted and with that, updated technology power. One study reveals that in the


will also enter the country, With the entry of globalizing world. The economics of the world
foreign companies and the removal of import are ironically moving away from one another
tariff barriers, domestic industry will be more than coming together. With the lightning
subject to price and quality they improving speed at which globalization is taking place, it
effects in the domestic economy. It is also is increasing the pressure on economies for
believed that the efficiency of banking and structural and conceptual readjustments to a
financial sectors will improve, as there will be breaking point. It is becoming hard for the
competition from foreign capital and foreign countries to ask their public to go through the
backings. It is believed that main effects of pains and uncertainties of structural
integration will be felt in the industrial and adjustment for the sake of benefits yet to come.
related sectors. High quality consumer goods Globalization is helping particularly the
will be manufactured at home. Besides developed 16 economies. None of the
employment opportunities will also go up. multinationals has set up manufacturing
plants in India or signed any technology
transfer agreement with any Indian company.

For meeting the challenges put forth by Liberalization,

Privatization and Globalization the role of
bureaucracy should be:

1. LPG leads to inequality and. the poor and needy become more destitute. Existing life styles,
values and systems of local people are transformed. Hence the administration is required to
be more cautious and vigilant.
2. The civil services guide the political executive, helping them in policy making by keeping in
view the national interest and the welfare of the people. Such policies are framed as may lead
to self- sufficiency, efficiency, and equitable use of natural resources
3. It has been rightly said, "To resist the onslaught of multinationals the challenge before civil
servants is, therefore, how to localize globally and globalize locally. They have to initiate
decentralization, people's empowerment through devolution of powers and encourage local
self governing institutions to administer and meet collective or social needs while
encouraging markets to meet the individual needs."
4. "The rolling back of the state on the economic issues necessitates a redefining of its new role
and re-examination of its structures and processes. It may no longer remain to be the owner
of strategic industries, but it is still a regulator, a pro-consumer regulator that oversees and
prevents abuses of market and provides the legal, physical and human infrastructure. It has
to concentrate in development economics that would benefit primarily the poor and the
5. LPG i.e., Liberalization, Privatization and Globalization, sometimes lead to cut throat
competition which causes corruption, diminishes quantity of production and influences the
quality of life. To ensure consumer satisfaction, one should draw upon the quality in
production and promote fair trade practices. In off-market dealings there is need to have fair
and rational rules and efficient and effective governance
6. But good governance, essential for economic progress, peace and sustainable development,
depends on services and talents of an efficient, dedicated and committed civil service. Good
governance empowers and encourages people to take increasingly greater control of their
lives through their participation, in a manner that does not impinge upon the accepted rights
of others.

7. The civil servants are expected to lead and have the responsibility to hold the scales even and
do what is good for the common man. The civil servants are required to gear up the
administration and create stability by keeping themselves politically neutral and dedicated
to the cause of the people
8. They can display greater skill to serve the society and make the people more conscious of
their rights. Therefore, to be successful in a globalised system of economics, civil servants
have to strike a fine balance between participation and accountability ; competition and
conflict ; user and citizens ; public interests and market interests and old and new .
9. The civil servants must promote efficiency not only in public services but also within
government. In developing countries, governments are the main promoters of public
welfare, and civil servants should work hard to achieve their stipulated targets.
10. In a globalised economy, local entrepreneurs can ill afford to compete with giant foreign
corporations, and this conduces to monopolistic exploitation of the locals. The profits are
drained out and domestic industry and national interests suffer. Here the civil services can
enforce the rules strictly and disallow the multinationals to take over domestic enterprises.
11. The civil services should work hard to create an environment in which rights of the citizens
are protected, law and order is maintained, stability is provided and efficient financial and
administrative infrastructures are put in place to tone up welfare services to the people. The
civil services should protect the people against the market forces and onslaught of
12. The people should be encouraged to manage their affairs through various forms of
organizations like N.G.O.s, cooperatives, self-help groups and institutions working for the
welfare of people. Participatory measures should be taken as an end as they help the people
to enjoy their freedom.

The Important Reform Measures (Step Towards

liberalization privatization and Globalization)
Indian economy was in deep crisis in July 1991, when foreign currency reserves had plummeted
to almost $1 billion; Inflation had roared to an annual rate of 17 percent; fiscal deficit was very
high and had become unsustainable; foreign investors and NRIs had lost confidence in Indian
Economy. Capital was flying out of the country and we were close to defaulting on loans. Along
with these bottlenecks at home, many unforeseeable changes swept the economies of nations in
Western and Eastern Europe, South East Asia, Latin America and elsewhere, around the same
time. These were the economic compulsions at home and abroad that called for a complete
overhauling of our economic policies and programs. Major measures initiated as a part of the
liberalization and globalization strategy in the early nineties included the following:
(1) Devaluation: The first step towards globalization was taken with the announcement of the
devaluation of Indian currency by 18-19 percent against major currencies in the
international foreign exchange market. In fact, this measure was taken in order to resolve
the BOP crisis. Disinvestment-In order to make the process of globalization smooth,
privatization and liberalization policies are moving along as well. Under the privatization
scheme, most of the public sector undertakings have been/ are being sold to private sector.
(2) Dismantling of The Industrial Licensing Regime At present, only six industries are under
compulsory licensing mainly on accounting of environmental safety and strategic
considerations. A significantly amended location policy in tune with the liberalized licensing
policy is in place. No industrial approval is required from the government for locations not
falling within 25 kms of the periphery of cities having a population of more than one million.

(3) Allowing Foreign Direct Investment (FDI) across a wide spectrum of industries and
encouraging non-debt flows. The Department has put in place a liberal and transparent
foreign investment regime where most activities are opened to foreign investment on
automatic route without any limit on the extent of foreign ownership.
(4) Non Resident Indian Scheme the general policy and facilities for foreign direct investment as
available to foreign investors/ Companies are fully applicable to NRIs as well. In addition,
Government has extended some concessions especially for NRIs and overseas corporate
bodies having more than 60% stake by NRIs
(5) Throwing Open Industries Reserved For The Public Sector to Private Participation. Now
there are only three industries reserved for the public sector.
(6) Abolition of the (MRTP) Act, which necessitated prior approval for capacity expansion the
removal of quantitative restrictions on imports.
(7) The reduction of the peak customs tariff from over 300 per cent prior to the 30 per cent rate
that applies now.
(8) Wide-ranging financial sector reforms in the banking, capital markets, and insurance
sectors, including the deregulation of interest rates, strong regulation and supervisory
systems, and the introduction of foreign/private sector competition.

Good governance (1989)

The concept of ‘Governance’ is not new. It is as old as government itself. Both the terms are
derived respectively, from the old French words gouvernance and governement. Initially their
meanings were very close, referring to acts or manner of government.
By the mid-16th century, however, government denoted a “system by which something is
governed” and by the early 18th century it further evolved to acquire the meaning of a
“governing authority.” In this process the term governance gradually became marginalized, and
by the 19th century it was deemed to reflect an incipient archaism. For the next 100 years, it
would hardly be used as a political term.
However, during 1980s under economic reforms, especially under globalization the use of term
governance became popular with its emphasis on the process and manner of governing to the
notion of sustainable development. Meanwhile, organizations such as the IMF, NGOs, the UN
and its agencies, the World Bank and international media were quick to pick up the term and
use it in a variety of ways.
In 1989 World Bank study “Sub-Saharan Africa-from Crisis to Sustainable Growth”, the term
‘Governance’ was first used to describe the need for institutional reform and a better and more
efficient public sector in Sub-Saharan countries. It defined governance as “the exercise of
political power to manage a nation’s affairs.” However, it did not explicitly refer to the
connotation ‘good’. It was only in the foreword, that former World Bank President Barber
Conable (1986-1991) used the term ‘good governance’, referring to it as a “public service that is
efficient, a judicial system that is reliable and an administration that is accountable to its
public.” The concept of governance was further developed in the Bank’s 1992 publication
‘Governance and Development’. In this publication, governance was defined as “the manner in
which power is exercised in the management of a country’s economic and social resources for
Subsequently in 1998 World Bank’s annual report Governance in Asia: From crisis to
Opportunity, presented a more cogent concept of good governance. The report elaborates four

key components of good governance: accountability, transparency, predictability and
However, concept of ‘Good Governance’ is a recent entrant in the domain of Public
Administration. There are 3 ways of understanding this new development:
1. It is an attempt to widen the scope of Public Administration by going beyond the formal
2. It is an externally dictated term invented to prescribe aid–conditionality.
3. It is a genuinely democracy-intensifying concept to make public administration more
open, transparent and accountable.
Good Governance need not to be narrowly conceived in the manner the World Bank and other
funding agencies have sought to present them. A more creative approach would be to treat the
issues as new opportunities to have a fresh look at state-society relationships in today’s complex
world of governance.

Good governance has 8 major characteristics :

1. Participation
2. Rule of law
3. Transparency
4. Responsiveness
5. Equity and inclusiveness
6. Effectiveness and efficiency
7. Accountability
8. Rule of Law

Necessary preconditions for Good Governance:

4. Sound legal framework
5. Robust institutional mechanism for proper implementation of laws
6. Competent personnel staffing
7. Right policies for decentralisation, delegation and accountability

Good Governance in India: Ancient and Modern:

 The idea of Good Governance is as old as Indian civilization. The rulers were bound by
dharma, popularly called ‘Raj Dharma’, which precisely meant for ensuring good governance
to the people. Raj Dharma was the code of conduct or the rule of law that was superior to the
will of the ruler and governed all his actions.
 This description of Good Governance found in ancient Indian scriptures, can be the Jataka
tales, Shanti ParvaAnushasanparva of Mahabharat, Shukracharyas’s Nitisar, Panini’s
Ashtadhyayi, Aitreya Brahmana, Valmiki’s Ramayana and especially in Kautilya’s
 Shanti Parva of Mahabharat has devoted considerable space to Raj Dharma which aims to
establish Good Governance in the society. It stressed that, it is the duty of the king to seek
and promote the welfare of its subject.
 Bhishma Pitamaha, who had mastered the art of governance and had dedicated himself to
the throne of his kingdom, Hastinapur, says: “the foundation for good governance is
righteousness in public affairs. The king, his son—including relatives—his ministers, andthe

State employees who have taken the oath of their offices to uphold Dharma and to take care
of the public needs, must not act unjustly or unethically because if they do so, they will not
only destroy the moral basis of governance but will also turn the State into a hell”
 The Rig Veda states “Atmano mokshartham jagat hitayacha” i.e., the dual purposes of our
life are emancipation of the soul and welfare of the world.
 Brihadaranya Upanishad while recognizing the importance of good governance stressed
that, it is the responsibility of the king to protect Dharma, the public good, so that all citizens
get equal opportunity and that the weak are not exploited and harassed by the strong.
 Arthashastra while highlighting the principle of good governance declares, “In the happiness
of his people lies king’s happiness, in their welfare his welfare, whatever pleases himself he
shall not consider as good, but whatever pleases his people he shall consider as good.”
 When during 1990s World Bank raised the issue of governance, this immediately, became an
issue of concern in India. The document of the Ninth Five Year Plan (1997- 2002) released in
April 1999 included a Chapter on “Implementation, Delivery Mechanism and Institutional
 This was followed by a more specific chapter titled, “Governance and Implementation” in the
Tenth Five Year Plan (2002-2007).


 New Public Management is a new perspective which evolved in early 1990s, which seeks to
merge the core values of business administration in the domain of Public Administration.
Public Administration is traditionally associated with rules and procedures, on the other
hand business administration deals with achievement and performance. NPM borrows ‘how’
from business management and blends it in ‘what’ of public administration.
 The term ‘NPM’ was used for the first time by Christofer Hood in 1991 in his research paper
titled ‘A new public management for all seasons’. However the idea was further elaborated
by David Osborne and Ted Gaebler in their book ‘Reinventing Government’ publishes in
 There was a time when public bureaucracy was viewed sure solutions of all the problems
encountered by society. As the society evolved, government took multifunctional role. By the
1970s huge criticism arised against budget maximising and bureaucrates’ self interest
attitude. The size of bureaucracy and cost of administration came to be questioned. There
was a demand for thorough restricting of public delivery system.
 NPM emerged out of Thatcherism, Reaganism of 1980s. Political ideology of Neo-liberalism,
New Right philosophy, Public Choice approach helped in evolving the idea of NPM.
NPM also known as ‘Entrepreneurial Government’ aims at efficiency, effectiveness and
economy in performance of public sector by employing modern managerial tools such as
performance appraisal, cost cutting, functional autonomy, financial incentives, output
targets, innovation, market orientations, responsiveness and accountability.
As the NPM is the product of LPG era, it advocates fundamental change in the role of
bureaucratic state in the field of economy and society. It relies on the market as the key
regulator of social and economic process. NPM advocates the roll-back of state thesis in
which state assumes the role of a facilitator and promoter of public activities rather than
doer of such activities

LPG= Entrepreneurial Government= Neo-liberalism= Neo-Taylorism= New Right philosophy=
Public Choice approach=NPM

 About the nature of government under NPM, Osborne and Gaebler remark, ‘we do not need
more government, we need better government, to be more precise we need better
governance. Governance is an act of collectively solving out problems. Government is the
instrument, we use. The instrument is outdated and it is time to remake it.
 Defining attributes of Public Management are three – localization, externalisation and de-
bureaucratisation. Localisation refers to inclination towards devolution and de-
centralisation. Externalisation refers to contracting out of government functions to non-
government agencies. De-bureaucratisation has many elements like de-layering, downsizing,
decentralisation, splitting of hierarchy or splitting an organisation in autonomous units.
 Many theorists point out that NPM has historical roots in two theories:
(1) Public choice theory : it was concerned with replacing the government with the market.
It talked about institutional pluralism i.e. existence of multiple institutions providing
goods and services including policy framing. It is also known as political economy
(2) Neo-Taylorism : it is concerned with internal organisation of the bureaucracy like
introducing certain techniques and methods from private management into public

Osborne & Gaebler listed following ten features of

(1) Catalytic role of government
(2) Empowerment of citizen
(3) Efficiency and economy in performance
(4) Emphasis on goals rather than rules
(5) Customer oriented government
(6) Competitive government
(7) Anticipatory approach
(8) Enterprising government
(9) Decentralisation of authority
(10) Emphasis on market mechanism

Criticisms :
(1) The public interest is at risk and could undermine the trust in government.
(2) There are blurred lines between policymaking and providing services in the New Public
Management system.
(3) Accountability can be a big issue.
(4) Questions have been raised about the potential politicization of the public service, when
executives are hired on contract under pay-for-performance systems.
(5) Questions such as managers being more or less faithful arise.

(6) There are concerns that public managers may move away from trying to meet citizens' needs.
(7) NPM brings to question integrity and compliance when dealing with incentives for public

Comparison of NPA & NPM


It is basically a periodic academic get It is actual process of govt reform
together to reconceptualise

Emphasize is on Publicness of Public Weakens the PUBLICNESS nd moves more

Administration towards generic administration..no concern
whether public or private

NPA is developmental..where interests of the NPM is POPULIST …responds to demands in a

society are taken into consideration uncritical way without thinking whether it is
Beneficial or not

They study on change nd try to reconceptualise It is influenced by NEW RIGHT PHILOSOPHY


NPA is rational..since means and goals are ANTI RATIONAL ….since emphasis is only on
emphasized …means to achieve goals are taken Goals…not the means to achieve them
into account

Makes Public Administration closer to Makes Public Administration move towards

Political Science and Sociology management

Similarities between New Public Administration and New

Public Management
 Both emphasize on Democratization,Decentralization,Associative Administrtation
 NPA II & NPA III took note of privatisation , globalisation , implementation of market
principles and practices but they primarily took care of the publicness of Public
Administration. with this we can refer to the NEW PUBLIC SERVICE APPROACH by
theorist like DENHADT and DENHADT



Classical Theory/classical
An approach is a way of gaining access to the understanding of a subject or a discipline. Like
other social sciences, in Public Administration too, there are various approaches which have
been developed since the discipline was identified as an independent field of enquiry by
Woodrow Wilson in 1887. Further, there has been a gradual evolution of the study of these
approaches which chronologically can broadly be divided into three categories viz. Traditional or
Classical, Human Relations Movement or Behavioral, and Modern or System.
The main exponents of this approach are F. W. Taylor, Henri Fayol, Max Weber, Mooney and
Reiley, Gulick and Urwick, who put emphasis on the scientific study of organization.
Many believe that the classical school represents the first source of the managerial process, in
the late nineteenth century, while it was considered a product of the interaction between the
employers and the capital control during that period. The focus was in that period to

confirmation the interest of employers, and the production process, whereby the classical school
/ traditional management Includes three main approaches:
1) Scientific management Approach - which focuses on production work flows and
productivity of individual workers
2) Administrative Approach/Classical Approach - which focuses on the total organization.
The emphasis is on the development of managerial principles rather than work methods.
3) Bureaucratic Approach - which focuses on strict implementation of rules and regulation,
hierarchy systems in achieving maximum efficiency.

scientific management movement

Prior to the early 1900s, there was no management theory as we think of it today. Work
happened as it always had—those with the skills did the work in the way they thought best
(usually the way it had always been done). The concept that work could be studied and the work
process improved did not formally exist before the ideas of Frederick Winslow Taylor. Scientific
Management as a term was coined by Louis D. Brandies in 1910 and subsequently used by
Taylor in his book " Principles and Methods of Scientific management". Scientific Management is
one of the significant approaches to the study of Public Administration that emerged during the
early part of the 20th century. Though Taylor had written his theory much before the essay by
Woodrow Wilson, he got the fame after the publication of the essay and the mass interest that it
generated on the lines of having a separate administration from politics and to develop it as a
true science. Taylor is regarded as the father of the Scientific management approach.
Taylor’s theory was called scientific because to develop it, he employed techniques borrowed
from botanists and chemists, such as analysis, observation, synthesis, rationality, and logic.

Frederick W. Taylor(1856-1915)
Books by Taylor :
 A Piece Rate System (1985);
 Shop Management (1903);
 The Art of Cutting Metals (1895);
 The Principle of Scientific Management (1911)

Background Story
Before the Industrial Revolution, most businesses were small operations, averaging three or four
people. Owners frequently labored next to employees, knew what they were capable of, and
closely directed their work.
The dynamics of the workplace changed dramatically in the United States with the Industrial
Revolution. Factory owners and managers did not possess close relationships with their

employees. The workers “on the floor” controlled the work process and generally worked only
hard enough to make sure they would not be fired. There was little or no incentive to work
harder than the next man.
Taylor was a mechanical engineer who was primarily interested in the type of work done in
factories and mechanical shops. He observed that the owners and managers of the factories
knew little about what actually took place in the workshops. Taylor believed that the system
could be improved.

Observation :

Soldiering :
Working in the steel industry, Taylor had observed the phenomenon of workers' purposely
operating well below their capacity that is, soldiering. He attributed soldiering to three causes:
 The almost universally held belief among workers that if they became more productive,
fewer of them would be needed and jobs would be eliminated.
 Employees take great care never to work at a good pace for fear that this faster pace
would become the new standard.
 Workers waste much of their effort by relying on rule-of-thumb methods rather than on
optimal work methods that can be determined by scientific study of the task.

Experiments :
To scientifically determine the optimal way to perform a job, Taylor performed experiments that
he called time studies, (also known as time and motion studies). These studies were
characterized by the use of a stopwatch to time a worker's sequence of motions, with the goal of
determining the one best way to perform a job.
The following are examples of some of the time-and-motion studies that were performed by
Taylor ;
 Pig Iron
If workers were moving 12 1/2 tons of pig iron per day and they could be incentivized to try
to move 47 1/2 tons per day, left to their own wits they probably would become exhausted
after a few hours and fail to reach their goal. However, by first conducting experiments to
determine the amount of resting that was necessary, the worker's manager could determine
the optimal timing of lifting and resting so that the worker could move the 47 1/2 tons per
day without tiring.
Not all workers were physically capable of moving 47 1/2 tons per day; perhaps only 1/8 of
the pig iron handlers were capable of doing so. While these 1/8 were not extraordinary
people who were highly prized by society, their physical capabilities were well-suited to
moving pig iron. This example suggests that workers should be selected according to how
well they are suited for a particular job.
 The Science of Shoveling
In another study of the "science of shoveling", Taylor ran time studies to determine that the
optimal weight that a worker should lift in a shovel was 21 pounds. Since there is a wide
range of densities of materials, the shovel should be sized so that it would hold 21 pounds of
the substance being shoveled. The firm provided the workers with optimal shovels. The

result was a three to four fold increase in productivity and workers were rewarded with pay
increases. Prior to scientific management, workers used their own shovels and rarely had the
optimal one for the job.
 Bricklaying
Others performed experiments that focused on specific motions, such as Gilbreth's
bricklaying experiments that resulted in a dramatic decrease in the number of motions
required to lay bricks. The husband and wife Gilbreth team used motion picture technology
to study the motions of the workers in some of their experiments.

Techniques used in Experiments :

1. Functional Foremanship : Taylor rejected the idea of traditional type of authority of
military style of management based on unitary control, where the worker received orders
from one of man, the foreman. He proposed that under the system of functional
management, every production worker would have eight bosses, each o whom would give
order in his functional specially. The worker would get separate order from gang boss,
speed boss, inspector, repair boss, work and route clerk, instruction and clerk, time and
cost clerk and shop disciplinarian. He pleaded that the principle of specialization was no
less appropriate at higher levels than it was at the lowest level.
2. The Exception Principle : Taylor also advocated the exception principle. According to
this concept, decisions which recur frequently should be reduced to a routine and
delegated to subordinates, leaving more important issue and exceptional matters to
superiors. The relieving of higher executives from details allows them more time to
devote to top policy and to crisis that arise.
3. Motion Study : This is finding out “one best way” to do a work by observation &
standardizing it.
4. Times Study : Planning of large daily task & follow the motion study using stop watch &
determination of standard time for completion of work.
5. Differential Piece Rate System : According to the standardization of performance –
a. If the performance is below average -> give low piece rate
b. If the performance is at par -> give set piece rate
c. If the performance is above average -> give high piece rate
d. If the performance is below average consistently -> discharge from the
6. Instruction cards for workers
7. Routing system
8. Modern cost system
9. Separate planning cell
10. Mnemonic system for products

Theories propounded
 Taylors four principles of scientific management :
1. Look at each job or task scientifically to determine the “one best way” to perform the job.
This is a change from the previous “rule of thumb” method where workers devised their
own ways to do the job.
2. Hire the right workers for each job, and train them to work at maximum efficiency.
3. Monitor worker performance, and provide instruction and training when needed.

4. Divide the work between management and labor so that management can plan and train,
and workers can execute the task efficiently.
The basic idea behind the principles of scientific management is to change the mental
attitudes of the workers and the management towards each-other. With mutual trust and
division of work , employee will increase production and employers will increase incentives.
It will create win-win situation for both. Taylor called it ‘mental revolution’.

 The philosophy of these principles may be summarised

as under:
1. Science, not rule of thumb;
2. Harmony, not discord;
3. Co-operation, not individualism;
4. Working for maximum output, rather than restricted output; and
5. Developing all workers to the fullest extent possible for their own and their company’s
highest prosperity.

Frank(1868-1924) and Lillian Gilbreth

Two more pioneers in the field of management theory were Frank and Lillian Gilbreth, who
conducted research about the same time as Taylor. Like Taylor, the Gilbreths were interested in
worker productivity, specifically how movement and motion affected efficiency.
As stated above, the Gilbreths used films to analyze worker activity. They would break the tasks
into discrete elements and movements and record the time it took to complete one element. In
this way, they were able to predict the most efficient workflow for a particular job. The films the
Gilbreths made were also useful for creating training videos to instruct employees in how to
work productively.

Henry Gantt(1861-1919)
Henry Gantt (1861–1919) was also an associate of Taylor. He is probably best known for two key
contributions to classical management theory: the Gantt chart and the task and bonus system.
The Gantt chart is a tool that provides a visual (graphic) representation of what occurs over the
course of a project. The focus of the chart is the sequential performance of tasks that make up a

Criticism of Scientific Management Movement

Workers Viewpoint :
1. Over speeding - the scientific management lays standard output, time so they have to
rush up and finish the work in time. These have adverse effect on health of workers. The
workers speed up to that standard output, so scientific management drives the workers
to rush towards output and finish work in standard time.
2. Weakening of Trade Union - To everything is fixed & predetermined by
management. So it leaves no room for trade unions to bargain as everything is

standardized, standard output, standard working conditions, standard time etc. This
further weakens trade unions, creates a rift between efficient & in efficient workers
according to their wages.
3. Monotony - Due to excessive specialization the workers are not able to take initiative
on their own. Their status is reduced to being mere cogs in wheel. Jobs become dull.
Workers loose interest in jobs and derive little pleasure from work.
4. Exploitation - Workers feel they are exploited as they are not given due share in
increasing profits which is due to their increased productivity. Wages do not rise in
proportion as rise in production. Wage payment creates uncertainty & insecurity
(beyond a standard output, there is no increase in wage rate).
5. Unemployment - Workers feel that management reduces employment opportunities
from them through replacement of men by machines and by increasing human
productivity less workers are needed to do work leading to chucking out from their jobs.

Employer’s Viewpoint :
1. Time Consuming - Scientific management requires mental revision and complete
reorganizing of organization. A lot of time is required for work, study, standardization &
specialization. During this overhauling of organization, the work suffers.
2. Expensive - Scientific management is a costly system and a huge investment is required
in establishment of planning dept., standardization, work study, training of workers. It
may be beyond reach of small firms. Heavy food investment leads to increase in
overhead costs.

Max Webers (1864-1920)

 The Theory of Social and Economic Organisation,1947
 Economy and Society,1909
 The Protestant Ethic and the Spirit of Capitalism,1904

Background Story
 Bureaucratic approach is an offshoot of classical approach that emerged in the beginning of
the 20th century. Weber’s theory of bureaucracy was a response to the demands of industrial
capitalist economy, which required an efficient administration. While Taylor attempted to
rationalise functions of modern factory, Weber made an attempt at the rationalisation of
bureaucratic structures. Both of them emphasised on control and discipline in the working
of organizations.
Weber’s theory of bureaucracy is developed from the Prussian military forces, and which
enterprises such as the British Railway Companies actually found in the ranks of the British
Army, was to become the specific form of management of big business.
 The invention of word bureaucracy belongs to Vincent de Gourney, a French economist in
1745. He took the conventional term ‘bureau’ meaning writing-table and office, and added to

it the word derived from the Greek suffix for the ‘rule’, in order to signify bureaucracy as the
rule of officials.
Marx - “ bureaucracy like a state itself is an instrument by which the dominant class
exercise its domination over the other social classes.”
Hegel - “the governing bureaucracy of public administration is a bridge between the state
and the civil society.”
Bureaucracy as an institution existed in China even in the period of 186 B.C, public offices
were in existence and persons for those offices were recruited through competitive
examinations even then.
The above discussion shows that there existed a bureaucracy much earlier to Weberian
writings. But the Weber is considered to be the first person to attempt at the systematic
understanding of the bureaucracy


Max Weber’s concept of bureaucracy is closely related to his ideas on legitimacy of authority.
Weber differentiated authority, power and control.
 Power : “the probability that one actor within a social relationship will be in a position to
carry out his own will, despite resistance. Such exercise of power becomes controlled.”
 Authority : “the probability that a command with a given specific content will be obeyed by a
given group of persons.”
 Legitimacy : “ legitimacy turns power into authority.”
For Weber, ‘authority’ was identical with ‘authoritarian power of command’ and he called it

Components of Authority
Weber identified five essential components of authority. They are:
(1) an individual or a body of individuals who rule,
(2) an individual or a body of individuals who are ruled,
(3) the will of the rulers to influence conduct of the ruled,
(4) evidence of the influence of the rulers in terms of the objective degree of command, and
(5) direct or indirect evidence of that influence in terms of subjective acceptance with which the
ruled obey the command.

Categories of People in Organisation

Weber categorised persons in the organisations in to four types:
(1) those who are accustomed to obey commands,
(2) those who are personally interested in seeing the existing domination continue,
(3) those who participate in that domination, and
(4) those who hold themselves in readiness for the exercise of functions.

Types of Authority
Weber classified authority in to three ‘pure’ or ‘ideal’ types based on its claim to legitimacy.


Ways of exercising Kindof Type of

authority administr obedienc
ative e
In this kind of authority a command is This is a pure type of feudal, Obedience is given not to
Traditi obeyed because of the belief in age-old patrimonial regime under the rules but to the rulers,
on customs, traditions, conventions and
beliefs. New rules are not enacted, they
not to the superiors, but to
the chiefs. The persons
al are “found”. The only documents in officials, relatives, and who obey orders are called
the administration of law are the loyalists. ‘followers’. They carry out
Au “documents of tradition, namely the commands out of
th precedents”. Under the traditional personal loyalty to the
authority a person enjoy authority by ruler and pious regard for
ori virtue of their inherited status. The his time honoured ‘status’.
ty system retains legitimacy as long as
the customs and traditions are
respected in the organisation.

It “rests on devotion to the specific and Under this authority the Those subject to the
Charis exceptional sanctity, heroism, or leader selects his disciples authority are “followers” of
m exemplary character of an individual
person and of the normative patterns
or followers as his officials
based on their personal
the leader, not “subject”.
He can exercise his
ati or order revealed or ordained by him”. devotion to him rather than authority, so long as it is
The term charisma here refers to their special qualifications proved, that is so long as it
c supernatural, super human or or status. These ‘disciple receives recognition and is
Au extraordinary qualities of a leader. officials’ constitute an able to satisfy the
Among the holders of charisma are the organisation and their followers.
th sorcerer, the prophet or the warrior of sphere of activity and power
ori chieftain or the personal head of a
party and demagogue.
of command depends upon
likes and dislikes of the
ty leader .

It rests on “a belief in the legality of The members who exercise Obedience is owed to the
Legal- patterns of normative rules and the power under this authority legally established
Ra right of those elevated to authority
under such rules to issue commands.
are the superiors and are
appointed or elected by
impersonal order.
extends to the persons

tio legal procedures to exercising the authority of

maintain the legal orders. office only by virtue of the
na The organisation is a formal legality of their
l continuous process and all commands, and only with
its members are subject to in the scope of the
Au certain rules. authority of the office

Of all the three types of authority Weber considers the legal authority, not only the most rational
authority, but also the most efficient form of authority. He considers bureaucracy as legal-
rational type of authority.



As in the case of authority, Weber categorised bureaucracy in to
1. patrimonial bureaucracy found in traditional and charismatic authorities and
2. legal-rational bureaucracy found only in the legal type of authority.


(1) High degree of Division of Labor and Specialization.
(2) There is a well-defined chain of command.
(3) It follows the principle of Rationality, Objectively and Consistency.
(4) The relationship among the member of the organization is Formal and Impersonal relations.
And it’s based on positions and not on personalities.
(5) Rules and Regulations are well defined and it indicates the duties and rights of the
employees. These rules apply to everyone from to bottom of the organization and must be
strictly followed.
(6) Selection and Promotion are based on Technical qualifications.
(7) Only Bureaucratic or legal power is given importance.
(8) Offices can not be appropriated by the incumbents as private property
(9) Administration is conducted on the basis of written documents
(10) Officials do not own the resources necessary for rendering the duties, but they are
accountable for use of official resources. Official business and private affairs, official revenue
and private income are strictly separated


In order to prevent the bureaucracy from acquiring powers Weber suggested certain mechanism
for limiting the scope of systems of authority in general and bureaucracy in particular :
(1) Collegiality : Weber suggested the principle of collegiality involving others in the decision
making process.
(2) Representation : Sharing of authority of bureaucracy with the elected representatives of the
(3) Direct Democracy : The officials were guided by and answerable to an assembly. Short term
of office, permanent possibility of recall was designed to serve the purpose of direct
(4) Amateur Administration : The involvement of amateur administration in certain activities.
Such men have sufficient public esteem to command and general confidence. But this system
could not measure up to the demands for expertise which modern society made, and where
the professionals assisted amateur it is always the professional who dominated the scene.
(5) Separation of Powers : dividing responsibility and functions between two or more bodies to
avoid monopoly.

Criticism of Bureaucracy Theory

(1) Discourages creative and innovative ideas
(2) Bureaucracy believes in the system to formally record all the operations whether it be a small
or big task in written documents. This is considered as a waste of money and efforts
(3) Misuse of power

(4) Rigidity and inflexible in its ways
(5) Delay in decision-making process
(6) One way communication

The Classical Approach

 The classical approach, also known as traditional or formal or structural or mechanical or

engineering or administrative management, developed during the 1 st half of the 20th
century. The credit for originating this approach goes to Henri Fayol, a French industrialist
and manager who expressed his ideas in his famous book “General and Industrial
Management” published in 1916. In this effort, he was supported by James Mooney and
Allen Reiley who co-authored a book entitled “Onward Industry” published in 1918. The
approach became popular after the publication of “Papers on the Science of Administration”
by Luther Gulick and Lyndal Urwick in 1938. They formulated “universal principles of
organization” which popularly came to be known as “classical or ‘traditional’ approach” of
 It is so called because of being one of the earliest formulations based on systematic analysis
of organization. The approach is also named ‘formal’ or ‘structural because it views the
organization in terms of its purpose and formal structure. Another name given to this
approach is ‘mechanical’ or ‘engineering’ as it lays stress on design or plan which can be
prepared by experts with the help of certain definite principles. Accordingly, it assumes
organization as a machine and personnel working in it the tools of the machine. Further,
classical approach is also called ‘administrative management’ because it mainly deals with
the formulations of principles pertaining to administration and management which
according to Fayol are not two distinct domains but one i.e. administrative management.

Henri Fayol’s (29 July 1841–19

November 1925)
 General and Industrial Management,1949
 The Theory of Administration of the State,1923
 General Principles of administratons,1908

Background Story
 As one of the oldest and most popular approaches to management thought; Henri Fayol’s
theory holds that administration of all organizations—whether “public or private”, or “large
or small” requires the same rational process or functions .

 Henri Fayol, French practitioner and theoretician, like Taylor, contributed significantly to
the corpus of management concepts and is considered founder of the modern management
theory/ Universal process /Operational management or Administrative management
theory / Modern Management Process School/Classical Theory.
 Fayol, as a theorist, has been contemporary to Taylor. Although scientific management was
for long considered an American invention and rooted in the writings of Taylor, Fayol’s
writings, in fact, precede those of Taylor. It is no wonder that many historians of the
European management thought consider Fayol as a pioneer of scientific management. It is a
pity that, just as in the case of Weber, the importance of Fayol’s ideas was discovered outside
Europe only after the translation of his works into English. Henri Fayol’s Administration
Industrielle et Generale was first published in France in 1916, but it did not come to light in
the Englishspeaking countries until its English translation published in 1949 under the title
General and Industrial Management. His work is considered a classic and a foundation in
classical management theory. The book offers a theory and principles of management.

 Fayol has been a multi-faceted personality because he was a geologist, a mining engineer
and he went on to win a Nobel Prize in metallurgy in 1921. At the same time, he was a very
successful administrator and a renowned administrative philosopher. He penned down his
ideas out of his successful experience as being a functionary in a private industrial
organization. Fayol started his career as a Manager and went on to occupy the highest
position in the organization. This difference in experience contributed towards difference in
orientation towards the Organizational Management.
 This school is based on two assumptions;
o first, although the objective of an organization may differ; for example, business,
government, education, or religion, yet there is a core management process that remains
the same for all institutions.
Successful managers, therefore, are interchangeable among organizations of differing
o Second, the Administrative management process can be reduced to a set of separate
functions and related principles.

Contribution of Fayol
(1) Industrial Activities Identified by Fayol
The totality of activities of an industrial undertaking is divided into six groups viz.:
1. TECHNICAL - production, manufacture, adaptation;
2. COMMERCIAL - buying & selling - exchange (banking, insurance, warehousing,
3. FINANCIAL - search for an optimum use of capital;
4. SECURITY - of property & personnel;
5. ACCOUNTING - stocktaking, balance sheets, costs, statistics;
6. MANAGERIAL - planning, organisation, command, co-ordination & control. Fayol
describes management as a function, a kind of activity. He is quite indifferent whether
those exercising this activity are described as ‘Managing Directors’, or ‘supervisors’, or
‘Clerks’. He is connected with the function, not with the status of those who exercise it.

However, he is sensitive to the fact that those holding positions at higher level in the
hierarchy would devote a larger proportion of their time to this function than employees
at lower levels.

Fayol says that irrespective of the nature of organization – big or small, simple or
complex, non-industrial or non-profit making - the six activities are always present
though the importance and significance of the first five activities may vary.

(2) Five managerial functions :

1. Planning : examine the future and draw up plans of action. To him, unity, continuity,
flexibility and precision are the broad features of a good plan of action.
2. Organizing : build up the structure, material and human, of the undertaking
3. Commanding - maintain activity among the personnel
4. Coordinating - bind together, unify and harmonise activity and effort
5. Controlling : see that everything occurs in conformity with policy and practise

(3) Six managerial attributes :

1. Physical : health, vigour and appearance
2. Mental : ability to understand and learn, judgment, mental vigour and adaptability
3. Moral : firmness and willingness to accept responsibility
4. General Education : general acquaintance with matters not belonging exclusively to
functions performed
5. Special Knowledge : special knowledge of the functions being handled - be it technical,
commercial, financial or managerial
6. Experience : knowledge arising from the work proper

(4) Principles of Administration

Henry Fayol states that the principles of administration/management are not rigid. On
the contrary, they must be capable of adaptation to various enterprises and settings.
Fayol derives fourteen principles viz.:

1. Division of work: Specialisation of labour produces more and better work with the
same effort.
2. Authority and responsibility: Authority should be commensurate with responsibility.
In other words, the occupant of each position should be given enough authority to
carry out all the responsibilities assigned to him.
3. Discipline: Obedience should be observed in accordance with the standing
agreements between the firm and its employees.
4. Unity of command: For any action, an employee should have only one boss.
5. Unity of direction: One head and one plan for each activity.
6. Subordination of individual interest to general interest: The interest of one employee
or group should not prevail over that of the total organization.
7. Remuneration of personnel: The remuneration paid for services rendered should be
fair and afford satisfaction to both personnel and the firm.

8. Centralisation: The degree of initiative left to managers varies depending upon top
managers, subordinates and business conditions.
9. Scalar chain (Hierarchy): The line of authority of superiors ranging from the ultimate
authority to the lowest ranks.
10. Order (Placement): Once the basic job structure has been devised and the personnel
to fill the various slots have been selected, each employee occupies that job wherein
he or she can render the most effective service.
11. Equity: For the personnel to be encouraged to fulfill their duties with devotion and
loyalty there must be equity based on kindness and justice in employer-employee
12. Stability of tenure of personnel: Suitable conditions should be created to minimize
turnover of employees.
13. Initiative: The ability to think afresh would act as a powerful motivator of human
14. Esprit de corps: Harmony, union among the personnel of an organisation is a source
of great strength in the organisation.

(5) Need for Administrative Training

Fayol is a pioneer in suggesting the need for systematic training in administration. He
criticizes civil engineering colleges in France for excluding administration from their syllabi.
Fayol suggests that training is a continuous process, starting from the school and covering
in-service training of the employees within an organisation. He considers every superior
officer in an organisation as a teacher to his immediate subordinates.

(6) Gangplank

The Gangplank refers to the need for ‘level jumping’ in a hierarchical organisation.
Although Fayol places emphasis on formal organisation, he is alive to the dangers of
conformity to hierarchy and formalism. ‘It is an error to depart needlessly from the line
of authority, but it is even greater one to keep it when detriment to the business ensues’,
asserts Fayol. He illustrates the problem with reference to the figure given below.
If ‘F’ follows the principles of proper channel of communication, he has to send his
message or file to ‘P’ through ‘E’, ‘D’ and so on, covering nine levels. It is, however,
possible for ‘F’ to use ‘gangplank’ and avoid going through ‘A’ and all the other
intervening layers as intermediaries. Recourse to ‘gangplank’ is possible only when the
immediate superiors (in the case, ‘E’ and ‘O’) authorize such a relationship. Whenever a
disagreement develops between ‘F’ and ‘P’, they must turn the matter to their superiors.
While suggesting ‘gangplank,’ Fayol is rather cautious. He feels that it may be less

relevant to Government agencies in which the lines of authority are less clear than in
private organizations.

Both of these belong to the rare breed of ‘pracademics’(both as academician and

practitioner )who not only believed what they thought but also practiced it in their public
and private lives. They belonged to an era where public administration as a field was
struggling for its identity. One’s contribution cannot be studied without counting the
other, thus whenever there has been discussion on either of them, work of both have
been put under the scanner.

Luther Halsey Gulick (1892-1993)


 The Papers on Science of Administration, 1937

 Metropolitan Problems and American Ideas, 1962

Background Story
 He was one of the firm believers of a science of administration, applicable both in public and
private sectors. This was a continuation of Wilsonian tradition well laid out at the end of the
nineteenth century through the article of Woodrow Wilson.
 Luther Halsey Gulick was born in Osaka, Japan. He belonged to family of varied
experiences-scholars, doctors, teachers, scientists, authors, missionaries and pastors. This
enriched him and had a long lasting impact in the formative years. He graduated from
political science in 1914 & then done M.A in Philosophy. At the same he came in contact with
the New York Bureau of Municipal Research, attending courses at its Training School for
Public Service. Gulick specialized in administration and budgeting and, in 1917, worked as
secretary of the Joint Special Committee on Finance and Budget Procedure of the
Massachusetts Congress.

 He started his career in the U.S. army as a captain and staff member of the Statistics Branch
of the General Staff. During 1920s, Gulick was appointed director of the Bureau of Municipal
Research (later renamed Institute of Public Administration) and continued in that capacity
until 1962. Between 1936 and 1937, he served as a member of the President’s Committee on
Administrative Management and co-edited the famous, “Papers on the Science of
Administration”, to which he contributed two papers.

Gulick’s Major Thoughts

(1) Relationship between Politics and Administration

 Rejecting the common contention that the two domains can be, or should be, separate
and distinct, Gulick argues that such a separation is impractical, impossible and
undesirable. Instead, he supported idea of using administrative expertise and
competence in matters of public policy. Thus, he was thinking much ahead of his times.
Harmon (2006) is of the view that Gulick was one of the first to debunk the dichotomy.
According to Gulick, administration involves the determination of major policy; the
development and adoption of specific programmes; the creation of the organization;
provision of personnel; authorization of finances; administrative supervision,
coordination and control of activities; and the audit and review of results (Gulick, 1951)
 Though, he was against the separation between politics and administration, but
distinguished the roles of politicians, political appointees, administrators, and
technicians in determining degrees of political and policy involvement. The role of a
politician is to maintain equilibrium in the overall system by monitoring and adjusting
the relationship among the experts, bureaucrats, and interest groups. The
administrator’s role is to understand and coordinate public policy and to interpret public
policy directives to the operating services, but with unquestioned loyalty to the decisions
of elected officials (Gulick, 1951).

(2) The Role of Government and Administration in Society

 Gulick felt the need to limit the role of market in society due to its unpredictable and
cyclical nature of adequacy and inadequacy. But, he did not favoured unilateral
governmental acts. Therefore, the state should not encompass all human activity. There
should be proper checks & balances.
 While perusing the federal legislation, he observed that the needs and requirements of
the states and local governments were not been given due attention. Similarly, the state
and local governments were taking decisions as if there was no federal power. Keeping
this in mind he was averse of clear separation of powers. He contended for functional
division into local, state and federal responsibilities but should be flexible and subject to

(3) Science and Values in Administration

 Gulick aspired to the application of scientific methods to administrative matters. Gulick
is also aware of the potential dangers of scientific “experts.” The science of
administration propounded by Gulick called for making it sensitive to social conditions.

An administrator must be able to communicate the conditions of effective administration
to both the elected and the electors.

(4) Administrative Reformation

His strategy was based on defining of functions, division of work, formalization of structure
and relationships, professionalism, and rationalization of activities. He asserted that there
was a need for a new set of principles.
Thus, Gulick believed in a strong chief executive overseeing and coordinating the whole
gamut of administrative affairs. Gulick opined the need of budgeting.

A. Principles of Administration
Sl. Principles Characteristics

1 Division of work or Specialization

According to Gulick "work division is the
2 Bases of departmental organisations
foundation of organisation, indeed, the cause for
organization”. Work division is necessary
because "men differ in nature, capability, and
ability, and gain greatly in dexterity through
This theory addresses itself to the problem of
bases on which the work may be divided in an
organisation and departments are created.
Luther Gulick identified 4P’s on which different
departments are created.
o Purpose based organisation:
means the organisation which are
formed for a particular purpose
such as conducting coordination.
o Process based organisation: refer
the organisation in which
basically the processing is done
like ministry of law, statistic
department, accounting
department etc.
o Person based organisation: are
the organisation which are
formed to serve any particular
target group, community or
society like department of
scheduled caste, minorities etc.
o Placed based organisation: are
basically formed to serves any
particular territory.

3 Coordination through Hierarchy If sub-division of work is inescapable, Gulick

declared, coordination becomes mandatory.
4 Deliberate Coordination Based on his experience, Gulick says that


5 Coordination through Committees coordination can be achieved in two primary

ways: Through organisation, that is inter-
relating the sub-divisions of work through
allotting them to persons who are appropriately
placed in the structure of authority, so that the
work may be coordinated through orders
reaching from the top to the bottom of the whole
organisation. Through the dominance of an
thought, that is, the development of intelligent
singleness of purpose in the minds of those who
are working together so that each worker will
voluntarily fit his task into the whole with ability
and enthusiasm. These two principles of
coordination, he observes, are not, mutually
exclusive, but together both are really effective.
Size and time are the great limiting factors in the
development of coordination. So, he pointed out,
coordination, necessity be approached with
dissimilar emphasis in small and in large
organisations, in-simple and in complex
situations, in stable and in new or changing
organisations. Therefore, Gulick maintains that
"coordination is not something that develops
through accident. It necessity be won through
Intelligent, vigorous, persistent and organized

6 Decentralization While perusing the federal legislation, he

observed that the needs and requirements of the
states and local governments were not been
given due attention. Similarly, the state and local
governments were taking decisions as if there
was no federal power. Keeping this in mind he
was averse of clear separation of powers. He
contended for functional division into local, state
and federal responsibilities but should be
flexible and subject to change.

7 Unity of Command Gulick and Urwick whispered that "well-

supervised administrative units in the
Government are approximately without
exception headed through single
administrators". They were against boards or
commissions. They were emphatic that "A man
cannot serve two masters". A workman subjected
to order from more than one supervisor will be
―confused, inefficient; and irresponsible", a
workman subjected to order from but one
superior may be "methodical, efficient, and



8 Staff and Line They borrowed these principles from their

experience in military administration. Though,
no management theory has yet been clear about
the meaning of the Line and Staff principle in
civilian organisations.
According to Gulick the staff experts have to
"devote their time exclusively to the knowing,
thinking, and planning functions".
Therefore, the general staff and special staff
relieve the top executive from the burdensome
details of administration; they free him to
concentrate upon the mainly significant tasks
and enable him to exercise a larger span of

9 Delegation He contended for functional division into local,

state and federal responsibilities

10 Span of control Gulick, suggested further research into the

problem, but concluded that the chief executive
of an organisation can deal with only a few
immediate subordinates, The number is
determined not only through the nature of work,
but also through the capability of the executive,
and the number of immediate subordinates: the
stability and geographical proximity of
organisation. Though, he was less categorical
about the number of subordinates, he was
nonetheless confident about the general validity
of the principle.

Among the ten principles of administration listed out, Gulick lays special emphasis on division
of work. According to him large scale organizations require many men to carry out their
different tasks. Wherever many men work together best results can be achieved when there is a
division of work among these men. The theory of organization, therefore, has to do with the
promotion of coordination among different units of an organization created by the principle of
division of work. Thus, Gulick says that “division of work and integration are the boot straps by
which mankind lifts in the process of civilization”.

B. Gulick also has prescribed functions of the Managers

and Executives : POSDCoRB
P : Planning - Deciding What to do i.e., Setting Agenda
O : Organizing - Allocating and organizing activities i.e., Setting up of Organizational
S : Staffing - Personnel managements and its related activities

D : Directing - Decision and giving orders to convert into work
Co :Coordinating - Establishing connectivity and cooperation between the parts
R : Reporting - Providing status and reports to the concerns (eg. Managers)
B : Budgeting - Fiscal Planning and management, accounting and control

C. 4 basis of Organization as per Luther Gullick :

 By the purpose the workers are serving, such as furnishing water, providing education,
or controlling crime. Gulick lists these in his organizational tables as vertical
 By the process the workers are using, such as engineering, doctoring, lawyering, or
statistics. Gulick lists these in his organizational tables as horizontal organizations.
 By the clientele or material: the persons or things being dealt with, such as immigrants,
veterans, forests, mines, or parks in government; or such as a department store's
furniture department, clothing department, hardware department, or shoe department
in the private sector.
 By the place where the workers do their work.
Gulick stresses how these modes of organization often cross, forming interrelated structures.
Organizations like schools may include workers and professionals not in the field of education
such as nurses. How they are combined or carefully aggregated into a school — or a school
system — is of concern.

Urwick (1891-1983)
 The Elements of Administration, 1947
 The Papers on Science of Administration, 1937

According to Urwick, an organization needs to be properly structural and in order to achieve
that the various activities need to be sort out and properly grouped them (design of
organization). Designing of Organization is very important and lack of design is
illogical,cruel,wasteful and inefficient.
 Illogical - There is no clarity on idea of Position ( no clarity on authority and
 Cruel - qualification or capacity are not known to the members for the requirement of
the job
 Wasteful - No specialization
 Inefficient - No established rule or procedure for the managers to act so their acts were
rather subjective.

The design of the organization (Structure) has to be based
on 8 principles
(1) PRINCIPLE OF OBJECTIVE:- an organisation should have an expressed objective.
(2) PRINCIPLE OF CORRESPONDANCE:- at all levels authority and responsibility must be
coterminous and coequal.
(3) PRINCIPLE OF RESPONSIBILITY:- the superior must take absolute responsibility for
the work of their subordinates.
(4) SCALAR CHAIN:- a pyramidical type of structure should be built in an organisation.
(5) PRINCIPLE OF SPAIN OF CONTROL:- No supervisor can supervise the work of more
than five or at the six subordinates whose work inter- locks.
(6) PRINCIPLE OF SPECIALISATION:- Limiting one’s work to a single function.
(7) PRICIPLE OF COORDINATION:- Harmonious functioning of different parts of the
(8) PRINCIPLE OF DEFINATION:- Clear prescription(defining in writing) of duties,
authority and responsibility of each position and its relationship with other positions.:
Urwick further developed 29 principles of organization by integrating the Fayol's, Mooney
and Reiley's, Taylor's principles, and Follett's Principles

Mooney and Reiley

James D Mooney and Alan C. Reiley were the first in USA to formulate the classical theory in
1931, when their book Onward Industry was published. Latter, in 1939, they republished the
same book under a new title The Principles of Organisation. They opined that the principles
formed the basis for efficient functioning of organisation charts and manuals and enunciated
four principles:

(1) Coordination: Mooney defined coordination as “the orderly arrangement of group

effort to provide unity of action in the pursuit of a common purpose”. According to him,
“coordination is the first principle of organistaion and includes within itself all other
principles which are subordinate to it and through which it operates.” He further observed,
“Coordination is no less than the determining principle of organization, the form which
contains all other principles, the beginning and the end of all organized efforts.”
(2) Scalar Process: Mooney and Reiley emphasized hierarchy in organizational design
and called it the ‘scalar processes. To them, it constitutes the universal process of
coordination, through which the supreme coordinating authority operates throughout the
whole organisation. They stated that the scalar process has its own principle, process and
effect. These they referred to as leadership, delegation and functional definition.
(3) Functional Differentiation: Mooney and Reiley have suggested that the
functional principle should be followed in organizing tasks into departments. According to
Functionalism means the differentiation between kinds of duties. This is the concept of
division of labour or specialization. They explained it as follows: “The difference between
generals and colonels is one of the gradations in authority and is, therefore, scalar. The
difference between an officer of infantry and an officer of artillery, however, is functional,
because there is distinct difference in the nature of their duties.

(4) Line and Staff: Mooney and Reiley suggested that the line management should be
vested withauthority to get things done. At the same time, they recognized the role of the
staff in providing advice and information. According to Mooney, the staff is “an expansion of
the personality of the executive. It means more eyes, more ears and more hands to aid him
in forming and carrying out his plans.

Criticism of Classical Theory of Organization

(1) The principles of organization at best represent conclusions of some experienced
administrators who have seen the functioning of organizations closely. They are not
universal in their applicability. Simon called these principles as mere "proverbs" because like
proverbs these principles existed in pairs. For every acceptable principle a contradictory
principle could also be found to be equally acceptable. Principles of division of work and co-
ordination are examples of such contradiction. So these principles are not theoretically
(2) The principles enunciated by the structuralists seem to be general knowledge propositions
which are not intellectual propositions.
(3) Marxist thinkers were of the view that classical theorists were exploitative of the worker class
of the organizations and the classical theory seeks to maximize the profits for the
(4) Workers and trade unions also opposed this theory as it treated the workers as only objects
which were means for generating goods.
(5) Advocates of ecological school of thought have criticized this theory due to its inability to
take the external factors such as social and economic factors etc. into consideration.
(6) Overzealousness to generalize the principles has led to the generalization of even facts. Due
to this universal nature of principles is lost.
(7) Some of the principles of classical theory could cause dysfunctionality in the organizations e.
g. excessive hierarchy increases the levels of communication thereby hindering the work.
(8) Social scientists considered the productivity of the organizations as a function of the
motivation of workers and their willingness to work for the organization. Hence they
opposed the view of structuralists that structure only determined the efficiency of the
(9) Only the problems from the point of view of managerial level are considered by the
proponents of classical theory whereas worker level people have no place in it.
(10) Classical theory neglects human element in the organizations. Only "formal
organization" has been considered neglecting all the informal elements of the organization.
(11)There is little consistency in the works of these writers. The scientific validity of the so
called"principles" is questionable.

 Most of the criticism of Fayol seems to be out of ego-clashes. Fayol's emphasis on making
management a science had irritated the managers as it had lessened the importance of
managers. The principles enunciated by the structuralists had curbed the arbitrary powers of
the managers and had eliminated ad-hocism. Fayol was aware of the problem arising out of
rigid application of the principles. So he left it to the managers to decide the right mix of
authority and responsibility for the smooth functioning of the organizations. Structuralists
also believed in the administrative training of the managers. Often classical school is
criticized for not taking human relations and behavior into account but it should be realized

that by that their importance was not realized and the ecology of administration did not have
those ideas at that time. So it is improper to criticize the classical school of management on
the basis of reasons which did not exist at that time. Instead it should be credited with
replacing the ad-hocism of the rules of thumb with the systematized way of thinking. Further
concepts such as stability of tenure, Initiative etc. emphasized the human factor in
organization and its importance.

 The principles such as division of work, hierarchy, delegation, span of control etc. are still
relevant for the management literature and continue to be taught in public administration
also. The classical theory of organization came at a time when the organizations were
becoming complex and they were facing problems of low productivity and low efficiency.
This approach helped to solve these problems and to understand their working. As the time
changes the nature and problems of organizations also change and so should the
management approach. In this light classical theory should also be modified keeping in mind
the modem principles of democracy, participation, employee welfare, emphasis on
motivation & leadership rather than coercion.

The Neo Classical Theory is the extended version of the classical theory wherein the
behavioural sciences gets included into the management. Its also called the Human Relations
Modern management theory refers to emphasizing the use of systematic mathematical
techniques in the system with analyzing and understanding the inter-relationship of
management and workers in all aspect.

Post Weberian Period

The post-Weberian development view has emphasised on decentralisation and bottom up
approach. It advocates not a rigid model of administration instead it aims at an administration
which is responsive,responsible,accountable,transparent and result oriented and technology

Sl. Weberian Model Post Weberian Model

1 Organization centered Citizen Centered

2 Position power importance Participative leadership

3 Rule centered People centered

4 Focuses on independent action Believe in collective action

5 Status quo oriented Change oriented

6 Process oriented Result oriented


7 Autocratic behavior Democratic

8 Procedural accountability Performance accountability

9 Monopolistic Cooperative

 Dynamic Administration, 1924
 Creative Experience, 1924
 Freedom and Coordination, 1949

Background story
Mary Parker Follett was born in Boston in USA in 1868. It goes to her credit for initiating
studies on industrial groups which had seldom been subject matter of study by political or social
scientists. She evolved principles of human association and organization specifically in terms of
industry and convinced businessmen of the practicability of these principles in dealing with
current problems. Her writings are replete with practical wisdom, deep flashes of intuition,
undepartmentalized thinking and an all-pervading spirit of democratic dynamism.
Associates of scientific management schools like Fayol, Urwick, Oliver Sheldon were influenced
by her. Peter Drucker, the management theoretician, called her ‘the prophet of management’
and his ‘guru’. Along with Lillian Gilbreth, she was one of two great women management experts
in the early days of classical management theory. She has been called the "Mother of Modern
Unlike other contemporary theorists, she viewed organization as a social system and
administration as a social process. She was pioneer in focusing the sociological and
psychological dimensions of organization. Hence she is looked as the precursor of the
behavioural-human relations approach to organizational analysis.
Danial A Wren says “ Chronologically, she belonged to the scientific management era and
philosophically to the social man era”
Urwick and Matcalf says “her conceptions were in advance of her time”


Follett’s major works are as follows:

(1) The Speaker of the House of Representatives (1896);
(2) The New State (1920);
(3) Creative Experience (1924); and
(4) Dynamic Administration: The Collected Works of Mary Parker Follett (A collection of
her papers, edited by Henry Metcalf and L. Urwick in 1941).

Follett’s 4 Major Contribution

I. Constructive Conflict
Mary Parker Follett accords an important place to the problems of conflict in her writings.
She advances the idea of “constructive conflict recognizing thereby that conflicts should be
regarded as a normal process in any activity of an organization by which socially valuable
differences register themselves for the enrichment of all concerned”. To Follett, conflict is
neither good nor bad and has to be considered without passion or ethical pre-judgments.
Conflict is not warfare, but is only an appearance of difference – difference of opinions, of
interests not only between employer and employee but also between managers, between
directors or wherever differences appear. Since conflict is unavoidable, instead of criticizing
it as something bad, one should try to capitalize on it, and make use of it to do something
Drawing analogies from the universe, she says: “All polishing is done by friction. We get
music from the violin by friction and we left the savage state when we discovered fire
through friction.”
She advised managers to use conflict in a constructive manner by suggesting three ways to
do the same. These are:
(1) Domination to resolve a conflict– Here only one party wins which is
the stronger one. The weaker party remains disgruntled and this will lead to very ugly
consequences later. therefore this should be avoided.
(2) Compromise– Where no party benefits but settle mutually for the time being. But
this sort of resolution is only a short term one and the conflicts keep building up
internally and become more dangerous when it shows its face again and then it might
become out of hand to even try to settle it. This method also she did not suggest much.
(3) Integration to resolve a conflict – Follett considers this technique to
be the best. As under this method there is a feeling of win-win equation & both
conflicting groups see their issues addressed. And this is long term solution.

The Process Of Integration

This process unfolds in three steps:
(1) Surfacing of conflict or identification of existing issue -
This involves finding out the significant, rather than the dramatic features involved in a
conflict or controversy.

(2) Analysis of the conflict and development of a solution
– A solution should be such that it no way leaves any room for the conflict resurfacing or
a new conflict arising and it should benefit all and a circular response should be evoked
where every member gets to vent out his feelings so that he feels heard.
(3) Anticipation of results - Anticipation of conflict does not mean the
avoidance of conflict but responding to it differently. To Follett, integration is like a game
of chess. Anticipation of response is by itself not enough; there is need for preparation
for response as well.

Hindrances To Integration
(1) It requires high degree of knowledge and analysis.
(2) It requires high order of creativity and innovation
(3) It may require more resources.
(4) Superiors may have the tendency to continue domination.
(5) True integration may not be achieved as groups may not agree to substitution.
(6) Rushing to the application of scheme may create problems as its proper comprehension
may require time.
(7) Groups may feel inadequately represented but may not show at that particular time
when integration is seemed to be achieved.

II. Power, Authority and Control

Power :
 She defines Power as “the ability to make things happen, to be a causal agent, to initiate
change”. Power is the capacity to produce intended effects. It is an instinctive urge inherent
in all human beings. She makes a distinction between ‘Power-Over’ and ‘Power-With’. The
former may tend to be ‘coercive-power’ while the latter is a jointly developed ‘coactive-
power’. One should try to reduce ‘Power-Over’ & increase ‘Power-With’.
 This can be accomplished by integrating the desires, obeying the law of situation and
through functional unity. In a functional unity, each has his/her functions and s/he should
have the authority and responsibility which go with that function.
 Follett also believes that power can never be delegated or handed out or wrenched from
someone as it is the result of knowledge and ability. But, she feels, we can create conditions
for the development of power.

Authority :
 Follett defines Authority as vested power – the right to develop and exercise power.
According to her, authority stems from the task being performed and is derived from the
situation, and suggests that function is the true basis from which authority is derived.
Therefore, she says that central authority i.e., derivation of authority from the Chief
Executive should be replaced by Authority of Function in which each individual has final
authority within the allotted functions.

 She feels that authority can be conferred on others and such conferment is not delegation.
She expresses the clear terms that ‘delegation of authority’ should be an ‘obsolete
 Like authority, responsibility also flows from the function and situation. Therefore, one
should ask “For what is one responsible?” than “To whom is s/he responsible?” Follett also
believes in the pluralistic concept of responsibility or cumulative responsibility.

Control :
 Control, like Authority and Responsibility, is an important aspect to achieve organizational
goals. Unlike classical thinkers. Follett believes in Fact-Control rather than man-control and
in Correlated-Control than super-imposed control. Since facts vary from situation to
situation, control should depend upon the facts of each situation, instead of superiors
controlling subordinates. Similarly, situations are too complex for central control to be
meaningfully effective.
 If organizations are to be well integrated, unified and coordinated, control should be
designed and developed as a part of the unifying process. A unified organization is a self-
regulating and self-directing organism. In all such organizations, Follett feels, control tends
to be self-control.

Exercising Power, Authority and Control: The Issue of

She says that there are four important steps in giving orders:
(1) a conscious attitude – realize the principles through which it is possible to act on in any
(2) a responsible attitude to decide which of the principles we should act on;
(3) an experimental attitude – try experiments and watch results;
(4) pooling the results.

To her, to know the principles that underlie any given activity is to take a conscious attitude.
After recognizing the different principles, one must think of what principles s/he should act
on and then s/he should give orders in accordance with those principles. To give orders
based on principles is a responsible attitude. Trying experiments, noting whether they are
successful or a failure and analyzing as to why they are successful or a failure is taking an
experimental attitude. Finally, one should pool the experiences of all and see to what extent
and in what manner the methods of giving orders can be changed if the existing methods are
found inadequate.

Past life, training, experience, emotions, beliefs and prejudices form certain habits of mind,
which the psychologists call ‘habit patterns’, ‘action-patterns’ and ‘motor-sets’. Unless these
habit-patterns and certain mental attitudes are changed, one cannot really change people.
Before giving orders, the employer should also consider the ways and means of forming the
‘habits’ among the employees to ensure acceptance of the orders. This involves four
important steps:
(1) the officials should be made to see the desirability of a new method

(2) the rules of the office should be so changed as to make it possible for the officials to
adopt the new method
(3) a few people should be convinced in advance to adopt the new method to set an example
(4) intensifying the attitude to be released.

Environment of giving orders - She says that the “strength of favourable

response to an order is in inverse ratio to the distance the order 11 travels”
Manner of giving orders - Alleged harassing, tyrannical and overbearing
conduct of officials is an important reason for many industrial controversies. Treating men
without regard to their feelings and self-respect would result in strikes and strained
industrial relations. The language used often arouses wrong behavioural patterns. The more
one is bossed over, the more one develops opposition to bossing
Depersonalising Orders - Depersonalizing orders, however, does not mean
that one should not exercise authority. It only means exercise of authority of the situation.
She gives the example of a boy who says no and then gets a pail of water for his mother. In
this case, he resents the command, but recognizes the demand of the situation.

III. Coordination
To Follett, planning is a scheme of self-adjusting and self-coordinating the various and
varying interests.
The process of self-adjusting is possible only though Coordination. To Follett, coordination
“implies harmonious ordering of parts”. To achieve coordination, she postulates four
principles of organization:
(1) Coordination as the reciprocal relating of all factors in a
situation: All factors in a situation have to be related to one another and these
interrelationships themselves must be taken into account.
(2) Coordination by direct contact: Responsible people in the organization
must be in direct contact with one another irrespective of their position in the hierarchy. She
believes that horizontal communication is as important as vertical chain of command.
(3) Coordination in the early stages: All the people concerned should be
involved at the stage of policy formulation itself than being involved only at the
implementation stage. Such participation at the early stages will benefit the organization
through increased motivation and morale.
(4) Coordination as a continuing process: Follett emphasizes the need
for a permanent machinery to achieve coordination from planning to activity and from
activity to further planning. Similarly she emphasizes the importance of information based
on continuous research. The information itself would be a form of control, for there would
be a tendency to act in accordance with the information given, if it were accepted as accurate

IV. Leadership
To Follett, a leader is not the President of the organization or Head of the Department, but one
“who can see all around a situation, who sees it as related to certain purposes and policies, who
sees it evolving into the next situation, who understands how to pass from one situation to
According to her, a leader is “the man who can energize his group, who knows how to encourage
initiative, how to draw from all what each has to give”. He is “the man who can show that the
order is integral to the situation”. Leadership goes to the man who can grasp the essentials of an
experience and, as we say, “can see it as a whole” and “to whom the total inter-relatedness is
most clear”. Follett stresses that leaders are not only born but can be made through education
and training in organization and management.

According to Follett, three functions of the leader :

(1) coordination,
(2) definition of purpose
(3) anticipation

Three different types of leadership by follett :

(1) Leadership of Position - the leader holds a position of formal authority
(2) Leadership of Personality - a leader because of his forceful personality
(3) Leadership of Function - “The man possessing the knowledge demanded by a certain
situation tends in the best managed business, and other things beings equal, becomes the
leader at that moment.”


(1) She is criticised as an Idealist.

(2) The thread of consistency and continuity is absent in her thought and though her ideas can
be plucked from here and there and mixed with other thinker’s ideas in order to
implement,they cannot be implemented in totality as it would lead to chaos.
(3) She has also been criticised for pursuing collectivism(in her theories of co-ordination and
State) and individualism( in her theory of conflict & leadership) at the same time without
providing specific dimensional definitions in their regards.
(4) Few writers on organization have called her 'classical' thinker.
(5) She has ignored the social nature or the processes involved in the management of
(6) Her ideas on integration were illusionary.

Follett as a classical thinker Follett as a behaviouralist

She is influenced by Principles of Organization Constructive conflict shows her Socio
Psychologist orientation


Authority, control, order shows her bent Her ideas are related to situation and function
towards hierarchal structure

She regarded structural analysis of She believes in empiricalism, individual

organization leading towards proper difference & interdisciplinary orientation of
systematization public administration

Human Relations Approach

The Human Relations approach explains the informal relations among employers and
employees and concerned with moral and psychological rather than legal aspects of an
organization. Unlike Classical approach, which studies organization from structural point of
view, it puts emphasis upon human relations, self respect, informal social relations, individual
motivation, psychological feelings and tendencies of the workers. Thus, it believes in analyzing
the multidimensional nature of human beings and their interactions for understanding the
working of organizations.
The human relations approach is also known as New Classical approach. Elton Mayo termed it
Clinical approach. The credit for shaping this approach goes to Elton Mayo and his associates
such as F. J. Roethlisberger, William J. Dickson, T. North Whitehead, E Warne, W. Lloyd and L.
J. Henderson

Emergence of Human Relations Approach

Human Relations approach emerged after 1920 to explain the informal aspect of an
organization. It emerged as a reaction to the Taylor‘s Scientific Management approach– an
offshoot of broad Classical approach--which became popular in the beginning of the 20th
century. As a result of the Scientific Management approach whole human culture was influenced
by material and mechanical environment. In industries emphasis was on increasing production.
Resultantly, labor became a commodity and human being cog in the wheel. Main problems
before workers were low wages, more hours of work, unhealthy working conditions and labors‘
exploitation. Managers were ignoring psychological needs of labors and social aspects of work.
All these factors made workers apathetic towards their work. Besides, technological
advancement in industry increased the educational level and professional skills of the workers to
a great extent which made them more assertive about their rights and interests. Further, the
class conflict and Trade Union movement in U.S.A. coupled with Communist Revolution in
Soviet Union became the catalyst factors for the emergence and evolution of the Human
Relations approach.

Elton mayo(1880-1949)

 The Human Problems of Industrial Civilization, 1933
 The Political Problems of Industrial Civilization, 1974
 The Social Problems of Industrial Civilization, 1975

Background story
Elton mayo is widely recognized as the father of human relations theory. He explained the role
of human behaviour in production and also highlighted the importance of communication
between the workers and the management.
Elton mayo in his studies concentrated on fatigue, accidents, production levels, rest periods,
working conditions, etc., of industrial workers in factories.
His two among many important researches were:-
(1) Research in textile mill near Philadelphia,
(2) Research in Western electricity company, Chicago (Hawthorne studies)



He undertook first research programme in 1923 in a textile mill near Philadelphia & named it
“The first enquiry” .It was conducted to see effect of enhancing humanistic feeling like –
liberalized supervision, rest period, refreshment, interactive session .
Textile mill near Philadelphia was a model organization with all facilities to workers, was well
organised. The employers were highly enlightened and humane.
The labour personnel faced problem in the mule-spinning department of the mill.

Issues were:-

 Had to hire 250% more workers than the actual requirement. So absenteeism among
workers was the main issue.
 Management also consulted efficiency engineers, several financial incentives were
introduced, and number of schemes were launched, but they yielded no appreciable results.
Mayo was consulted to study the problem of multi-spinning Department of the mill.

Mayo’s observations:-

He studied the problems intensely from various angles i.e., physical, social and psychological.
(1) He found that almost every piecer working in the mule-spinning department, suffered from
foot trouble for which they had no immediate remedy. This trouble developed since every
piecer had to walk up and down a long alley, a distance of 30 yards or more, on either side of
which the machine head was operating for spinning frames with cotton thread.
(2) A single worker had to care 10 to 14 such machines due to which he felt miserable attending
to the job.
(3) Also found that workers were afraid of the company president because he was a Colonel in
the US Army in France both before and during the First World War. So, workers would
never protest.

Mayo’s experiments:-

(1) INTRODUCTION OF REST PERIODS: He introduced two rest periods of

ten minutes each in the morning and again in the afternoon with every team of piecers.
 The rest period scheme eliminated the problem of physical fatigue.
 Production increased
 Morale improved
 Labour turnover almost came to an end.


‘Earn Bonus Scheme’. Under this Scheme, if the workers were to produce more than a
certain percentage, they would earn bonus.

These two Schemes made the workers happy. But very soon, these new schemes faced
problem as the supervisors were not under these two schemes so they never liked the
workers enjoying rest period. Therefore, they suggested that workers should ‘earn’ there rest
periods. This New system was launched
 Within a week the production fell
 The workers became unhappy
 The old symptoms started reappearing.

So, the company president looked into the problem. He discussed with Mayo and his
research team, and ordered that:-
The spinning department should be shut down for ten minutes, four times a day and that all
hands from the supervisors down to the workers should enjoy the rest period.
Also, he gave the control of the rest period into the hands of workers.
 Old problem disappeared.

 Production increased
 The workers started earning bonus.


 Spinning produces postural fatigue and induces absenteeism and passivity
 Rest periods relieve postural fatigue, and end absenteeism and passivity.
 Rest periods are more effective when they are regular.
 The life of the worker outside the mill has improved as workers become more interested
in their families and become more sober.
 Prevailing problem in the mill was not the result of working conditions but the result of
emotional response of the workers to the work performed.
 Monotony was not the problem but repetitive work done under conditions of isolation.

The term “Hawthorne” is a term used within several behavioral management theories and is
originally derived from the western electric company’s large factory complex named Hawthorne
works. Starting in 1905 and operating until 1983, Hawthorne works had 45,000 employees and
it produced a wide variety of consumer products, including telephone equipment, refrigerators
and electric fans. As a result, Hawthorne works is well-known for its enormous output of
telephone equipment and most importantly for its industrial experiments and studies carried
In 1927, a group of researchers led by Elton Mayo and Fritz Roethlisberger of the Harvard
Business School were invited to join in the studies at the Hawthorne Works of Western Electric
Company, Chicago. The experiment lasted up to 1932. The Hawthorne Experiment brought out
that the productivity of the employees is not the function of only physical conditions of work and
money wages paid to them. Productivity of employees depends heavily upon the satisfaction of
the employees in their work situation. Mayo’s idea was that logical factors were far less
important than emotional factors in determining productivity efficiency. Furthermore, of all the
human factors influencing employee behavior, the most powerful were those emanating from
the worker’s participation in social groups. Thus, Mayo concluded that work arrangements in
addition to meeting the objective requirements of production must at the same time satisfy the
employee’s subjective requirement of social satisfaction at his work place.
The Hawthorne experiment consists of four parts. These parts are briefly described below:-
i. Illumination Experiment.
ii. Relay Assembly Test Room Experiment.
iii. Interviewing Programme.
iv. Bank Wiring Test Room Experiment.

1. Illumination Experiment (1924-27):

This experiment was conducted to establish relationship between output and illumination.
When the intensity of light was increased, the output also increased. The output showed an
upward trend even when the illumination was gradually brought down to the normal level.

Therefore, it was concluded that there is no consistent relationship between output of workers
and illumination in the factory. There must be some other factor which affected productivity.
2. Relay Assembly Test Room Experiment (1927):
This phase aimed at knowing not only the impact of illumination on production but also other
factors like length of the working day, rest hours, and other physical conditions. In this
experiment, a small homogeneous work-group of six girls was constituted. These girls were
friendly to each other and were asked to work in a very informal atmosphere under the
supervision of a researcher. Productivity and morale increased considerably during the period of
the experiment. Productivity went on increasing and stabilized at a high level even when all the
improvements were taken away and the pre-test conditions were reintroduced. The researchers
concluded that socio-psychological factors such as feeling of being important, recognition,
attention, participation, cohesive work-group, and non-directive supervision held the key for
higher productivity.
3. Mass Interview Programme (1928-31):
The objective of this programme was to make a systematic study of the employees attitudes
which would reveal the meaning which their “working situation” has for them. The researchers
interviewed a large number of workers with regard to their opinions on work, working
conditions and supervision. Initially, a direct approach was used whereby interviews asked
questions considered important by managers and researchers. The researchers observed that the
replies of the workmen were guarded. Therefore, this approach was replaced by an indirect
technique, where the interviewer simply listened to what the workmen had to say. The findings
confirmed the importance of social factors at work in the total work environment.
4. Bank Wiring Test Room Experiment (1931-32):
This experiment was conducted by Roethlisberger and Dickson with a view to develop a new
method of observation and obtaining more exact information about social groups within a
company and also finding out the causes which restrict output. The experiment was conducted
to study a group of workers under conditions which were as close as possible to normal. This
group comprised of 14 workers. After the experiment, the production records of this group were
compared with their earlier production records. It was observed that the group evolved its own
production norms for each individual worker, which was made lower than those set by the
management. Because of this, workers would produce only that much, thereby defeating the
incentive system. Those workers who tried to produce more than the group norms were isolated,
harassed or punished by the group. Thе following соdе of соnduсt was maintained fоr grоuр
 One should not turn out too muсh wоrk. If оnе does, hе iѕ a ‘rat buster’.
 One ѕhоuld not turn оut tоо littlе work. If оnе dоеѕ, he iѕ a ‘сhеѕlеr’.
 Onе should not tеll a ѕuреrviѕоr аnуthing dеtrimеntаl tо an associate. If оnе dоеѕ, he iѕ a
 Onе ѕhоuld nоt attempt tо mаintаin social diѕtаnсе or act оffiсiоuѕ. If оnе iѕ аn
inѕресtоr, fоr еxаmрlе, hе should not асt likе оnе.
The findings of the study are:-
 Each individual was restricting output.
 The group had its own “unofficial” standards of performance.
 Individual output remained fairly constant over a period of time.
 Informal groups play an important role in the working of an organization.


Contributions of the Hawthorne Experiment to

Elton Mayo and his associates conducted their studies in the Hawthorne plant of the western
electrical company, U.S.A., between 1927 and 1930. According to them, behavioral science
methods have many areas of application in management. The important features of the
Hawthorne Experiment are:
(1) A business organization is basically a social system. It is not just a techno-economic system.
(2) The employer can be motivated by psychological and social wants because his behavior is
also influenced by feelings, emotions and attitudes. Thus economic incentives are not the
only method to motivate people.
(3) Management must learn to develop co-operative attitudes and not rely merely on command.
(4) Participation becomes an important instrument in human relations movement. In order to
achieve participation, effective two-way communication network is essential.
(5) Productivity is linked with employee satisfaction in any business organization. Therefore
management must take greater interest in employee satisfaction.
(6) Group psychology plays an important role in any business organization. We must therefore
rely more on informal group effort.
(7) The neo-classical theory emphasizes that man is a living machine and he is far more
important than the inanimate machine. Hence, the key to higher productivity lies in
employee morale. High morale results in higher output.
A new milestone in organisational behavior was set and Elton Mayo and his team found a way to
improve productivity by creating a healthy team spirit environment between workers and
supervisors labeling it as The Hawthorne Effect.
The Hawthorne effect is a physiological phenomenon that produces an improvement in human
behavior or performance as a result of increased attention of superiors and colleagues. As a
combined effort, the effect can enhance results by creating sense of teamwork and a common
purpose. As in many ways the Hawthorne effect is interpreted, it generates new ideas
concerning importance of work groups and leadership, communication, motivation and job
design, which brought forward emphasis on personnel management and human relations.

(1) This theory lacks scientific base.
(2) This theory is not based on actual behaviour of workers as they were influenced by their
feelings of importance, attention and publicity they received in the research setting. Workers
react positively and give their best when they know that they are being observed.
(3) It is anti-union and pro-management. Mayo underestimated the role of Unions in a free
society as well as never tried to integrate unions into his thinking.
(4) This theory neglected the nature of work and instead focused on interpersonal relations.
(5) It ignored the environmental factors of workers’ attitudes and behaviour.
(6) Evidence obtained from the experiments does not support any of the conclusions derived by
Mayo and the researchers.
(7) It lacks economic dimension.
(8) It does not consider effects of ‘conflicts’ and ‘tension’ on the workers.

(9) This theory give much attention to informal relations among workers and between workers
and supervisors, but little to the formal relationships with informal ones

(1) The fierce opposition of the Theory of Human Relations (with its strong emphasis on the
people) in relation to classical theory (with its strong emphasis on the tasks and
organizational structure) walked slowly to a second stage: a Behavioral Theory. This now
represents a new attempt to synthesize the theory of formal organization with the focus of
human relations.
(2) A Behavioral Theory is, at bottom, an offshoot of the Theory of Human Relations, with which
it shares some fundamental concepts, using them as starting points or reference and
recasting them deeply. It also rejects the naive and romantic conceptions of the Theory of
Human Relations.
(3) A Behavioral Theory criticizes the Classical Theory, the theory of formal organization, the
general principles of management, the concept of formal authority, and the position of the
rigid and mechanistic classical authors.
(4) With the Behavioral Theory came the incorporation of Sociology of Bureaucracy, broadening
the field of management theory. Also with regard to the Theory of Bureaucracy, the Behavior
al Theory proves to be much criticism especially with regard to the "machine model" that
one adopts as a representative of the organization.
(5) In 1947 the United States comes a book that marks the beginning of the Behavioral Theory in
Administration: The Administrative Behavior, Herbert A. Simon. This book, which achieved
great effect, constitutes an indiscriminate attack the principles of the Classical Theory and
acceptance - with necessary repairs and fixes - the main ideas of the Theory of Human
Relations. The book is also the beginning of the so called Theory of Decisions.

The behavioral sciences have toasted the administrative theory with a variety of conclusions
about the nature and characteristics of human beings, namely:

(1) The human being is endowed with a social animal needs. Among these needs emerge
gregarious needs, i.e., tends to develop cooperative and interdependent relationships that
lead to living in groups or social organizations,
(2) Man is an animal endowed with a psychic system, i.e., is able to organize their perceptions in
an integrated manner that allows a perceptual and cognitive organization common to all
human beings,
(3) Human being has the ability to articulate language with abstract reasoning, in other words,
has communication skills
(4) Man is an animal with a willingness to learn, i.e. to change their behavior and attitudes
toward higher standards and effective;
(5) Human being has his goal-oriented behavior, very complex and changeable. Hence the
importance of understanding the goals of basic human society in order to clearly understand
their behavior

(6) Humans characterized pair a dual pattern of behavior: both can cooperate to compete with
others. Cooperates when their individual goals can only be achieved through the joint efforts
and collective responsibility when their goals are pursued and contested by others. The
conflict becomes a virtual part of all aspects of human life.

A Behavioral Theory of the Administration has its greatest exponents in Herbert A. Simon,
Chester Barnard, Douglas McGregor, Chris Argyris and Likert Rensis. Strictly within the field of
human motivation are emphasized Abraham Maslow, Frederick Herzberg and David

Chester Irwing Barnard [1886-

 Functions of the Executive, 1938
 Organization and management, 1948
 Philosophy for Managers; Selected Papers of Chester I Bernard, 1986

Background story
Chester Barnard, an American business executive, was born on November 7th 1886, in Malden,
Massachusetts. He did not get a bachelor’s degree because he lacked the technical requirements
of a laboratory science. Even so, he later got 7 honorary doctorates for his life long interest and
work in respect of organizations. He was deeply influenced by the New England attitudes of
independence, pragmatism, industriousness, and respect for the rights of the individual.
He started his career which spanned 40 years in the Bell Telephone Company and rose to be its
President in New Jersey. Simultaneously, he was engaged in voluntary public service. This
wealth of knowledge and experience he brought to bear in his writings. The Functions of the
Executive is the only major book of Barnard. In it he developed a comprehensive theory of co-
operative behaviour in formal organizations, better known as his theory of formal organization.
He discussed the complex problem of incentives, acceptance theory of authority, decision-
making process, status systems and ethics in organization.
Barnard’s Humanism: Barnard was primarily concerned with the dignity and worth of the
individual. He has been described as an idealist humanist, concerned with the well-being of man
and the general welfare of society. He sees man as a single unique, independent, whole being.
But the individual in an organization gets depersonalized. The management perceives him in
terms of his limited role in the organization rather than view him as a whole being. But this
duality does not make for a dichotomy. The 2 aspects are really simultaneously present in co-
operative systems. It is only that when we think of the organization as a functioning system of 2
or more persons the functional aspect gets high-lighted. When the focus is on the individual as
the object of the co-operative system, the emphasis is on individualization.



I. Organization:
He defined an organization as a “system of consciously co-ordinated activities or forces of two or
more persons.” It is a system made up of activities of human beings, a system in which the whole
is more than the sum of its parts and “each part is related to every other part in some significant
way.” To change one part is to change the interactions and thus to change the system as a whole
Also, each is composed of various subunits, each of which is an organization in itself. Hence, the
system must be treated as a whole. Barnard’s entire theory of organization is a special
application of the open-system theory. Viewing organizations as open systems, implies looking
into parts and elements that make up the system, examining processes of functioning systems
such as communication, decisions, feedback and identifying purpose, motivation and incentives.
While adopting the open-system theory, his approach was to frame issues in terms of opposites.
The basic dichotomy of the individual and the organization permeates his entire work. On the
one side he deals with man who rationalizes rather than behaves rationally, who acts on
intuitions and hunches and is influenced by personal needs and emotions. One the other hand is
the organization which is a rational structure with an impersonal, objective management. As a
humanist, Barnard sought a balanced position, a sort of mid point, a way to benefit, the
individual and the society.

Formal and informal Organisations

He explained how individuals experience personal relationships in an organization due to the
gregarious instinct or fulfillment of some personal needs. In course of time, these relationships
get systematized and result in informal organization. Thus informal organization which is the
aggregate of personal contacts and interactions does impact the formal organization. Formal
organizations are vitalized and conditioned by informal organizations.
Bernard suggested that executives should encourage the development of informal organisation,
to serve as a means of communication, to bring cohesion in the organisation, and to protect the
individuals from dominance and on slaught of the organization. Both the formal and the
informal organisations, depend on each other and there is continuous interaction between the
two. Therefore inmanaging an organization, managers should take into account both types of

 Every organization contained 3 universal elements:

1. Willingness to co-operate: Barnard states that from the ‘viewpoint of the
individual, willingness is the joint effect of personal desires and reluctances; from the
viewpoint of organization it is the joint effect of objective inducements offered and burdens
imposed. The measure of this net result, however, is entirely individual, personal and

What makes for a willing contributor?
what an organization seeks to do is to maintain an equilibrium between contributions and
satisfactions. Barnard identifies 4 specific inducements from the viewpoint of the
organization. They are
(1) material inducements such as money or physical conditions;
(2) personal non-material opportunities for distinction, prestige and personal power;
(3) desirable physical conditions of work;
(4) ideal benefactions such as the pride of workmanship, loyalty to the organization, sense of
patriotism etc.

Barnard also singles out 4 types of ‘general incentives’ which affect man’s behaviour in an
organization. They are:
(1) associational attractiveness of the given work which could also be explained as social
(2) adaptation of working conditions to habitual methods and attitudes;
(3) the opportunity for the feeling of enlarged participation in the course of events. It is
sometimes related to love of personal distinction and prestige. It is a feeling of
(4) the condition of communion which makes for a feeling of social integration and a sense
of solidarity.

2. Common purpose:
 Willingness to co-operate must be for some specific purpose. Thus there is something
like simultaneity in the acceptance of a purpose and willingness to cooperate.
 According to Barnard, every participant in any organization has a dual personality- an
organizational personality and an individual personality. When the purpose of the
organization is co-operatively viewed, one has the organizational personality of
individuals in mind. But what is dictated as worthy of support by organizational
personality may be at variance with what is perceived by the individual personality. In
other words, we have to clearly distinguish between them.
 The only time they are identical is when accomplishment of an organizational purpose
becomes itself a source of personal satisfaction. Often, they are distinct and apart.
Individual motive is necessarily an internal, personal and subjective thing while common
purpose is essentially external, impersonal and objective. The executive has to imbibe in
members the common purpose or objective of the organization in such a way that
contributors feel that their personal satisfactions would come through accomplishing the
purpose of the organization.

3. Communication: Willingness to co-operate and common purpose are linked

through communication. Barnard lists the formal principles of communication. They are the
(1) Channels of communication should be definitely known. The authority of person and
position must be defined and publicized.

(2) Objective authority requires a definite formal channel of communication to every
member of the organization. Everyone should know where he is placed in terms of
superior-subordinate relationships.
(3) The line of communication should be as direct or short as possible.
(4) The complete line of communication should usually be used. ‘Jumping the line’ can lead
to contradictory communications, wrong interpretation and the undermining of
(5) The competence of persons serving as communication centres, i.e. executive personnel,
must be adequate.
(6) The line of communication should not be interrupted in a functioning organization.
Hence the need for the temporary filling of offices during incapacity or absence of
(7) Every communication must be authentic. The person issuing the communication must
have the authority to do so, must be known to hold the position of authority and the
communication must be actually issued by him .

II. Authority
Barnard subscribed to the acceptance theory of authority according to
which managerial authority rests on the consent of the subordinates. While Follett would
depersonalize authority and obey the law of the situation, Barnard retained the personal aspect
of authority, but gave it a ‘bottom-up’ interpretation.
According to Barnard, ‘Authority is the character of a communication [order] in a formal
organization by virtue of which it is accepted by a contributor to or ‘member’ of the organization
as governing the action he contributes’.

Accordingly, authority involves 2 aspects:

(1) The accepting of a communication or order as authoritative which is subjective, personal
and an individual matter and
(2) The objective aspect which relates to the character of the communication by virtue of
which it is accepted and which depends on organizational factors.
In the final analysis, “the decision as to whether an order has authority or not lies with the
persons to whom it is addressed and does not reside in ‘persons of authority’ or those who issue
these orders.”

With respect to the subjective aspect of authority, Barnard holds that an individual in an
organization can assent to orders only when 4 conditions simultaneously obtain:
(1) He can and does understand the communication. If necessary, the order can be
interpreted for him so that he understands how it applies to him and what is expected of
him by way of compliance.
(2) At the time of his decision, it is compatible with the purpose of the organization. If
executives are required to issue orders that will appear to the recipients as contrary to
the main purpose, they must explain or demonstrate why the appearance of conflict is an
(3) At the time of his decision, it is compatible with his personal interest as a whole.
(4) He is able to comply with it, mentally and physically.


According to Barnard, each individual has a ‘ zone of indifference’. It is akin to

Simon’s ‘zone of acceptance.’ It implies that a person will accept orders willingly and without
question, as long as they fall within this zone. The zone may be broad or narrow and will depend
on his commitment to the organization and the degree to which the inducements exceed the
burdens and sacrifices associated with compliance with a specific order. 3 types of response by
workers to orders :
 Fully unacceptable
 Partially Acceptable
 Fully acceptable
This last group lies within the ‘zone of indifference.’

Guidelines to executives in securing acceptance of orders :

(1) Interpret orders for individuals and groups so that they are applicable and understood in
specific situations.
(2) Avoid conflicting orders.
(3) Never issue orders which cannot and will not be obeyed.
(4) If apparently unacceptable orders are to be issued, prepare the ground through
education, persuasion and the offer of incentives.
(5) Focus attention upon responsibility rather than authority.
(6) Recognize the limits of the saying that authority and responsibility should be equal.
Often, one has responsibility without authority.

III. Decision-making process

If the decision taken is correct and successful, one is happy but this is more than matched by the
frustration or depression that results from failure or error of decision. So those in charge
hesitate to take decisions. Often, they fear criticism or want to avoid responsibility.

Occasions for decision making originate in 3 distinct fields

(1) Authoritative communications from superiors;
(2) Cases referred for decisions by subordinates;
(3) Cases originating at the initiative of the executive.

The types of decisions as well as the conditions for

decision-making change in character as we move
down the scalar chain :
(1) At the upper end of an organization, decisions relate to ends
(2) At the intermediate levels, the broad ends or purposes are broken up into more specific
ends and the technical, including economic problems, become important.
(3) At the lower levels, decisions relate directly to technologically correct conduct in
organization action. These low levels are not insignificant, for it is here that personal

decisions determining willingness to contribute have relatively greatest aggregate

Types of decisions :
 Decisions could be positive, i.e. decision to do something or it could be negative, i.e.
decision not to decide.
 In understanding decision-making it would be profitable to examine Barnard’s
distinction between logical and non-logical thought processes. Logical thought processes
involve conscious thinking which can be expressed in words or symbols and this has a
place in decision-making. Non-logical thought processes cannot be expressed in this
manner. Here, the executive acts on intuition, hunch, commonsense or whatever. Often,
an executive has to arrive at a decision by a given date. He may not be able to do so on
the basis of logical thought processes alone. So he falls back on non-logical thought
processes. Thus Barnard finds a place for both the thought processes in decision-making.
As mentioned earlier, every participant in an organization has a dual personality. The
private personality would imply decisions that are personal and which often follow non-
logical thought processes. The organizational personality will take organizational
decisions largely by logical thought processes.
Barnard has indicated 5 significant differences between an individual’s personal
decisions and those he makes in his organizational role. They are:
(1) Organizational decisions are impersonal and are dominated by organizational
(2) Organizational goals are explicitly stated, whereas this need not be so for
personal decisions;
(3) The ends of organization are usually arrived at, after a high degree of logical
thought processes which may not be the case with personal goals where sub
conscious processes predominate;
(4) Personal decisions cannot be delegated to others; organizational decisions can
and are in fact, delegated;
(5) Organizational decisions are specialized, while personal decisions are not

Strategic factor :
According to Barnard, decision-making involves a search for the strategic factor. His
theory of the strategic factor is linked to the systems concept. As Barnard put it, ‘If we
take any system, or set of conditions, or conglomeration of circumstances existing at a
given time, we recognize that it consists of elements, or parts, or factors, which together
make up the whole system, set of conditions, or circumstances. Now, if we approach this
system or set of circumstances, with a view to the accomplishment of a purpose….the
elements are parts which become distinguished into two classes: those which if absent or
changed would accomplish the desired purpose, provided the others remained
unchanged; and these others. The first kind are often called limiting factors; the second,
complementary factors….a limiting strategic factor is the one whose control, in the right
form at the right place and time, will establish a new system….which meets the purpose…
If a machine is not operable because a screw is missing, the screw is the strategic
[limiting] factor.’ Therefore, to make an effective decision, is to get control of the

strategic factor and this control must be exercised at the right time, in the right form and
amount and in the right place so that the purpose is achieved or accomplished. The
strategic factor then, is all important and is at the centre of the environment of decision-

IV. Status Systems

Barnard discussed status systems not in The Functions of the Executive but in a lecture on this
subject titled ‘Functions and Pathology of Status Systems in Formal Organizations.’ Status, in
essence, according to Barnard, consists of the rights, privileges, duties and obligations of an
individual in an organization. Status is, therefore, indicative of individual behaviour. Status
systems are linked to other features of the organization like communication, incentive and
authority as also to the value system of society. Status systems meet the needs not only of the
individual but of the formal organization as well.
There are two fairly distinct types of status systems in an organization:
(1) Functional status arises out of functions performed and has to do with the horizontal
division of labour. For instance, a carpenter would enjoy certain rights and privileges
which flow from his craft. If one is told that a worker is a carpenter in a given
organization, one immediately determines his status.
(2) Scalar status, on the other hand, has to do with formal authority and corresponding
responsibility and relates to the vertical dimension of an organization. It implies the
status that arises from one’s formal position in the organizational hierarchy in terms of
superior - subordinate authority.

Merits :
(1) From the individual point of view, they serve to identify individual roles and abilities.
They are a way of determining who’s who in an organization.
(2) To the individual, his status is doubly significant. It endorses his past history and
provides evidence of attainment and competence. At the same time, it helps to establish
his formal authority so that his orders will be accepted by his subordinates
(3) Furthermore, status systems preserve personal integrity by preserving the integrity of
the organization. It is definitely a personal asset to be a member of a good organization
because a top official, in his person, signifies the organization.
(4) Status systems provide means for recognizing individual differences for…’where
differences of status are recognized formally, men of unequal abilities and importance
can and do work together well for long periods.’
(5) From the point of view of the organization, status systems are valuable. They are crucial
to the maintenance of the co-operative system. They enable placement of personnel and
provide the channels for communication in the organization. They ensure that the
communications are authentic, authoritative and intelligible. They give members
prestige, powers and position which lead to greater responsibility and stake in the
efficient running of the organization.

Demerits :
(1) 1] They tend to give a distorted value to individuals. Status may be assigned for various
reasons such as ability, skill etc. Yet, the person concerned may think too much of
himself even though the status given to him is unrelated to his personal worth.
(2) 2] Status systems require stability. It is only stable status systems that can provide
incentives to persons who aspire to reach them. But there is the risk that stable status
systems can cause harmful rigidities in the organization. For instance, outstanding and
deserving men of proven ability may not be able to serve in higher positions, men who
ought to move away because of inadequacy continue to stay on in key positions and
generally, the organization will not be able to adjust to changing internal and external
(3) 3] Status systems may fly in the face of distributive justice. Higher status persons may
not be deserving of excessive rewards which accrue to them and this would be viewed as
gross injustice in the eyes of those denied promotion.
(4) 4] Status systems tend to detract from morale by exaggerating the needs of
administration. They tend to inhibit changes in status and thus come in the way of the
promotion of abler men.
(5) 5] Since the individual is symbolic of the organization, he gets, so to speak, the stamp or
label of the organization on him. It therefore becomes difficult to remove him from the
official top position, even when his performance is found wanting. In this way, status
systems tend to limit the adaptability of the organization.

Status systems, despite their drawbacks, are necessary for effectiveness of the organization. It is
up to the executives to ensure that status is reflective of ability, that it does not become an end in
itself and that it serves as a morale booster. To make this possible, executives require not only
great ability, knowledge and skill but most importantly, moral courage.

V. Organizational Morals
The Functions of the Executive is a book suffused with a moral fervor . According to Barnard, an
organization functions as a distinct moral entity having its own beliefs, convictions, mores and
culture. Its morals differ from those of other organizations and also from those of broader
society. Within an organization, one finds at times, contradictory and conflicting moralities.
Hence an organization is characterized by complex moralities.
Morals are private codes of conduct which guide the individual in his behaviour. They could also
be described as innate forces or propensities to behave in a certain manner under a specified set
of circumstances. These propensities tend to ‘inhibit, control or modify’ interests, impulses and
desires which are inconsistent with them and conversely reinforce those that are consistent with
them. These propensities arise from different sources or a combination of them and are
generally external to man. They could be of supernatural origin; or rooted in practice or habit;
the product of education and training; absorbed from local environment or even result from
contact with formal organization. An individual has usually more than one code. In fact, he has
different codes for different settings. For instance, a man could have one code as a father,
another as head of a family and a third as a member of a formal organization. These different
codes of conduct, put together, define the moral status of a person
Moral conflicts : Given several codes of conduct that a person possesses, there could
be clashes between them in determining ‘right behaviour’. For instance, loyalty to a friend may
be an important value in one code. Yet, when that friend works against the interest of the

organization to which one belongs, the individual experiences conflict of codes. Such conflicts
tend to become more complex and difficult to resolve, the higher one is placed in the executive
Not all codes have sanctions that go with them, though organizational codes do have them. One
observes one’s code out of a sense of responsibility. If codes are ignored or violated, the
individual feels guilty, frustrated or demoralized. In an organization, there is the individual
personal code, the organizational code that promotes the good of the organization and the code
relating to the good of society. Difficulties arise when there is a wide gap between personal
ethics and organizational ethics. When conflicts occur, it becomes difficult to decide on the right
course of action. There could be paralysis of action, tension, frustration, blockade, loss of
decisiveness and even lack of confidence. Adherence to one code can violate the other and in
time, even kill the second code.
Barnard talks of 3 approaches to resolve moral conflicts within the organization.
(1) Act subconsciously in terms of a system of priorities so as not to see the conflict.
(2) Develop a priority among codes and consciously adhere to it.
(3) Be morally creative.
This third approach would mean finding ways and means that will result in subordinating
individual interest and the minor dictates of personal codes to the good of the co-operative
whole. It would imply that he has to find a solution possibly by ‘substituting a new action which
avoids the conflict or in providing a moral justification for an exception or compromise.’ The
solution has to be ‘worked out’ and calls for ability, imagination and innovation on the part of
the executive

Moral responsibility : A word needs to be said about moral responsibility.

Responsibility is the measure of the degree to which an individual holds to his code. As Barnard
defines it,’…responsibility is the property of an individual by which whatever morality exists in
him becomes effective in action’. If a person is weakly controlled by his moral codes, he is
irresponsible and if he zealously exerts to adhere to his codes, he is said to be responsible. But in
a situation of conflicting codes it can just happen that a dominant code will assert itself. Given a
strong sense of responsibility, it is certain that any conflict of codes will assume critical salience
and would even lead to denial of authority if the organization code is not strong or important. In
such a situation, incentives or inducements would not matter at all.

Moral aspects of leadership : It goes to the credit of Barnard that he put the
focus on the moral aspects of leadership for he felt that without moral leadership an
organization cannot survive. It is such leadership that creates faith and inspires confidence that
builds up common understanding of organization goals and purposes and works towards their
realization. Moral leadership manifests itself in the creation of moral codes for others. Such
activity calls for conviction, commitment and an identification of personal with organization


Criticism of Chester Barnard's Theory

 The presentation by Barnard has been considered quite abstract Quite general examples are
given to make points.

 Though "purpose" has been recognized as central to the co-operative group effort still the
process of its formulation has not been described in detail.

 The concept of authority according to Barnard seems to give an impression that it may be
accepted or rejected by the sub-ordinates. In practice, it is sometimes required to maintain
order in the organization at all costs.

Simon’s Decision-Making Theory

 Administrative behavior, 1947
 Organization, 1958
 The New Science of Management Decision, 1960

Background story
The pioneering scholar of the theory of decision making in organizations, was Herbert Simon.
He was born in Milwaukee, Wisconsin and was one of the most celebrated political scientist,
economist, sociologist and also a psychologist. His body of work covers topics from
administration to cognitive psychology to artificial intelligence. He was awarded the Nobel
Memorial Prize in Economics for his most important work, the decision making process of the
Simon criticized narrowness of the traditional approach and the ‘principles’ of administration
and calls them proverbs and myths. He says classical principles of administration is are un
scientific. Classical principles of administration are in fact based on rule of thumb. The principle
of classical theories of administration individually appear to be logical and nicely argued, but
when applied to reality they are contradictory to each other. When these principles of
administration Confront evidence they fail.
Simon was influenced by Folett’s idea on group dynamics in organizations and the human
relations approach pioneered by Elton Mayo and others. Barnard’s ‘functions of the executive’
had a positive influence on Simon’s thinking about administration. Simon sought to develop a
science of administration and unlike classicists made human decision making as the central
theme of his studies.
He considered decision-making as a process of drawing conclusions from premises, therefore
premise rather than whole decision is unit of analysis. He equated ‘administration’ with
decision-making and laid emphasis on how decisions are made and how they be made more

Another reason for acceptance and popularity of Simon’s theory was due to its apparent
subsuming of several administrative functions such as Fayol’s POCCC and Gulick’s POSDCoRB
into a single all embracing concept of decision-making.

I. Decision-making:
An organisation is viewed by Simon as structure of decision makers. To him decisions are made
at all levels of the org. Each decision is based on a number of premises and Simon focuses his
attention on how these premises are determined. Some of these premises pertain to the
decision-makers preference, some to his social conditioning and others to the communications
he receives from organization units.
As per Simon, decision-making process involves three phases :
 Intelligence activity : The head of the organisation tries to
understand organisational environment in which decisions have to be taken. Intelligence
activity is finding occasions to take decisions.
 Design activity : A head of the organisation tries to identify all
possible options before making a final decision. This involves time & energy of the head to
think over the best possible alternative.
 Choice activity : Finally a head chooses one of the selected options,
which becomes a decision.
Though these three stages are described by Simon, he says that these phases may appear to be
simple & one precedes the other, in practice, the sequence is more complex, than what it appears
to be. These three phases are wheels within wheels. These three phases are closely related to the
problem solving – what is the problem, what are the alternatives & which alternative is the best?
Thus, decision making is a choice between alternative plans of action & choice in turn, involves
facts & values.

II. Fact and value in decision-making:

Every decision has two components:
(1) ‘Value’ component : A value is an expression of preference. A value premise
can only subjectively asserted to be valid.
(2) Fact component : A fact is a statement of reality indicating the existing deeds,
act or state of things. A factual premise can be proved by observable and measurable

Simon disapproved policy-administration dichotomy both on descriptive and normative

grounds and in its place proposed fact-value dichotomy based on his decision-making schema.
Simon maintains that to be scientific one must exclude value judgements and concentrate on
facts, adopt precise definition of terms and apply rigorous analysis. An administrative science,
like any science, is concerned purely with factual statements. There is no place for ethical (value)
statements in the study of science.

Simon explains that decision-making basically involves choice between alternative plans of
action, and choice in turn, between facts and values. To him, every decision consists of a logical
combination of fact and value propositions.
He clarifies fact-value as – so far as decision lead to selection of final goals, they may be treated
as ‘value judgements’, and decisions those are related to implementation of such goals may be
treated as ‘factual judgements’. In administration both value and factual premises are

III. Rationality in Decision Making:

Simon expounds the necessity of being rational in making a choice. He defines rationality as one
concerned with evaluation of consequences while selecting an alternative action. To him, it
requires a total knowledge and anticipation of consequences that will follow on each choice.
Simon disputes the concept of ‘total rationality’ in administrative behavior and observes that
human behavior is neither totally rational nor totally non-rational. It involves, what he calls,
‘bounded rationality’. Though it is simple concept, it has revolutionary implications.
Total rationality is based on the assumption that the decision-makers know all the alternatives,
they know the utilities (values) of all the alternatives, and they have an ordered preference
among all alternatives. Simon finds these assumptions to be ‘fundamentally wrong’. He rejects
the theory of total rationality.
In place of optimizing decisions based on total rationality, he advances the idea of ‘satisficing’ –
a word derived from satisfaction and sufficing. Satisficing involves the choice of a course of
action, which is satisfactory or at least good enough.

IV. Models of decision-making behavior:

There are various models of decision-making behaviour ranging from complete rationality of
economic man to complete irrationality of social man. Simon develops the model of
‘administrative man’ who stands next to the economic man.
As the economic man cannot perceive all possible alternatives nor can predict all possible
consequences, he instead of attempting to arrive at ‘optimal solutions’, is satisfied with ‘good
enough’ or ‘some-how muddling through’.
Administrative man perceives simplified version of real world. He makes his choices without
examining all possible alternatives.
In a sense, Simon’s administrative man tries to rationalize man, but does not have the ability to
maximize or satisfice. To Simon, resistance to change, desire for status quo, dysfunctional
conflicts caused by specialization etc are the obstacles which impedes maximization.

V. Programmed and non-programmed decisions:

Repetitive and routine in nature, definite procedures can be worked out and each decision need
not to be dealt separately. Decisions are based on established practices.
Non-programmed decisions are those which are novel, unstructured and have to be tackled
independently as no well tried methods are available for handling them. Selection and training

of executives, higher skills, judgement, innovative ability etc are the techniques to deal with non-
programmed decisions.
He suggests that mathematical tools, operations research, electronic data processing, systems
analysis, computer simulation etc can profitably used to make decisions. Use of such techniques
will reduce dependency on middle level management and lead to centralization in decision

VI. Authority – zone of acceptance:

The general impression that authority flows from top to bottom is flawed. Authority might
operate at various levels and not necessarily downwards. Exercise of authority ultimately
depends on the willingness of those who accept it. If exercise of authority is attempted beyond
zone of acceptance, the subordinate disobeys it. The magnitude of this ZoA depends upon the
sanctions available to enforce the authority. It is comparable to Barnard’s zone of indifference.

(1) While concentrating on the processes and the role of decision-making, Simon relegates
social, political, economic, cultural factors into the background although their role is no less
significant in the analysis of administrative decision-making and behavior.
(2) Similarly exclusion of value premises which are essential and integral component of policy
making, would steer the study of pub ad to mechanical, routine and less important aspects.
It is argued that Simon’s idea of fact-based administrative theory is more relevant to
business administration than pub ad.
(3) Simon’s efforts to construct a value-free science of administration was criticized on the
ground that bureaucracy is not, and cannot be, a neutral instrument solely devoted to the
presentation of facts and the docile execution of orders from political superiors.
(4) Simon’s concept of efficiency is subject to frequent criticism. Efficiency is not, and cannot be,
the only goal of administration because there is whole range of other major categories of
organizational purposes, such as, satisfaction of various interests, production of goods and
services, mobilizing resources, conforming with certain organized codes.
(5) Simon’s theory of decision making is criticized as being extremely general. Though it
provides framework, it does not provide details to guide the organizational planners. His
concept of rationality is also criticized. Argyris opines that Simon, by insisting on rationality,
has not recognized the role of intuition, tradition and faith in decision-making. Simon’s
theory focuses on status-quo-ante. It uses satisficing to rationalize incompetence.

Participative Management refers to as an open form of management where employees are
actively involved in organization’s decision making process. The concept is applied by the
managers who understand the importance to human intellect and seek a strong relationship
with their employees. They understand that the employees are the facilitators who deal directly
with the customers and satisfy their needs. To beat the competition in market and to stay ahead
of the competition, this form of management has been adopted by many organizations. They
welcome the innovative ideas, concepts and thoughts from the employees and involve them in
decision making process.


Participative Management can also be termed as ‘Industrial Democracy’, ‘Co-determination’,

‘Employee Involvement’ as well as ‘Participative Decision Making’. The idea behind employee
involvement at every stage of decision making is absolutely straight. Open and honest
communication always produces good results both for organization as well as workers.
Freedom and transparency in company’s operations take it to the next level and strengthens the
basis of the organization. On the other hand, there are several companies that straightway rule
out the possibility of participative decision making process. According to them, employees
misuse their freedom of expression and participation in decision making as it provides higher
status to employees and empowers them.

RENSIS LIKERT (5 August 1903–3

September 1981)
 New Patterns of Management, 1961
 The Human Organization, 1967
 New Ways of Managing Conflict, 1976

Background story
During the 1950s and 60s, Likert directed his research interest towards management. His 1961
book, New Patterns of Management, proved highly influential. It introduced his four systems of
management and articulated his advocacy for ‘System 4‘. He followed this, in 1967, with Human
Organization: Its Management and Value. This further detailed System 4, and contains his most
widely quoted statement:

‘…the greater the loyalty of the members of a group toward the group, the greater is the
motivation among the members to achieve the goals of the group, and the greater is the
probability that the group will achieve its goals.’

In 1970, he established his consulting business, Rensis Likert Associates, to capitalise on his
thinking, and he also continued to develop and publish his ideas. His 1976 book, New Ways of
Managing Conflict, was also very successful.


I. Rensis Likert and his associates studied the patterns and styles of managers for three
decades at the University of Michigan, USA, and identified a four-fold model of management
systems. The model was developed on the basis of a questionnaire administered to
managers in over 200 organizations and research into the performance characteristics of
different types of organizations. The four systems of management system or the four
leadership styles identified by Likert are:

Syste Exploitative Authoritative : where power and direction 'Rational economic

come from the top down', where threats and punishment man'
m1 are employed, where communication is poor and
teamwork is minimal. Productivity is typically mediocre.
Syste Benevolent Authoritative : is similar to the above but Weaker version of
allows some upward opportunities for consultation and 'rational - economic
m2 some delegation. Rewards may be available as well as man'
threats. Productivity is typically fair to good but at cost of
considerable absenteeism and staff turnover.
Syste Consultative : where goals are set or orders issued after 'Social man'
discussion with subordinates, where communication is
m3 upwards and downwards and where teamwork is
encouraged, at least partially. Some involvement of
employees as a motivator.
Self - actualising
Syste Participative : this is reckoned by many to be the ideal
system. Under this system, the keynote is participation,
m4 leading to commitment to the organisation's goals in a (see also McGregor:
fully co-operative way. Communication is both upwards, theory Y)
downwards and lateral. Motivation is obtained by a variety
of means. Productivity is excellent and absenteeism and
turnover are low.

The nature of these four management systems has been described by Likert through a profile
of organizational characteristics. In this profile, the four management systems have been
compared with one another on the basis of certain organizational variables which are:

 Leadership processes
 Motivational forces
 Communication process
 Interaction-influence process
 Decision-making process
 Goal-setting or ordering
 Control processes

On the basis of this profile, Likert administered a questionnaire to several employees
belonging to different organizations and from different managerial positions (both line and
staff). His studies confirmed that the departments or units employing management practices
within Systems 1 and 2 were the lease productive, and the departments or units employing
management practices within Systems 3 and 4 were the most productive.

Advantages :

With the help of the profile developed by Likert, it became possible to quantify the results of
the work done in the field of group dynamics. Likert theory also facilitated the measurement
of the “soft” areas of management, such as trust and communication.

He set out four principal characteristics of successful System 4 management:

(1) Supportive group relationships, both within the group and between the group members
and the leader. A sense of care and collaboration.
(2) Each person’s individual contribution, needs, value, and development needs to be
equally respected.
(3) The group undertakes problem solving together, and aligns behind their eventual
consensus solution.
(4) Different groups overlap, with certain individuals playing the role of ‘linking
pin’ between them. These are people whom Karen Stephenson refers to as ‘Gatekeepers’.

II. Human Resource Accounting

Besides this, he has also tried to elaborate the productivity of human resource within the
organization. This Human Resource Accounting been explained through the concept of
Science of Management. He has used three types of variables in this regard. This is with
reference with to productivity within system 1 and system 4.
 Causal Variable- He refers to the organizational structures and leadership style.
 Intermediate Variable- He refers to the motivation and the control within the
 End Result Variable- He refers to the individual’s productivity.


Variables System 1 System 4

Hierarchic Structure, Rigid Flexible Structure, Relaxed
Causal Superordinate -subordinate Supervision, having trust and
Variable Relationship, Lack of trust and confidence in the subordinate,
s confidence in the subordinate, group to group relation etc.
emphasis on Carrot and Stick Policy
Less co-operation, More conflict, High More co-operation, Less
Intervening unnecessary pressure of work, Lower Conflict, Less pressure of
Variable Performance Goal, Lower commitment work, Higher Performance
s towards managers and peers. Goal, Higher loyalty towards
the managers and peers.
Lower Productivity, High Cost of Higher Productivity, Lower
End Result Production and Loss or Inefficiency. Cost of Production and Higher
Variable Profit or Efficiency.

III. Organization Improvement Cycle :

The organization to be efficient should always move towards System 4. The movement in
this regard should not be abrupt rather it should be gradual. Abrupt grafting towards system
4 will result into failure as the individuals will not able to adapt to the new values or norms.
For this, he has developed a concept of Organization Improvement Cycle. His concept in this
regard is explained below.
(1) Create an ideal model of the desired system.
(2) On the basis of the comparison, identify the strengths and weaknesses of the current
(3) Prepare a plan of action to retain the strength and eliminate the weaknesses.
(4) Apply the plan into action.
His suggestions in this regard are as follows.
(1) Changes should be on account of organizational structure and leadership style.
(2) While bringing about changes, the workers should be involved, individuals within the
organization should be aware about the changes.
(3) Changes should be brought about while involving the most influential personalities
within the organization.
(4) The changes should be brought about through an impersonal approach. Changes should
not be planned with bias.

IV. Organizational Conflict :
It is a viewpoint or a standpoint carried by one which will get displaced if the viewpoints of
others are accepted.
(1) Substantive Conflict- It refers to the conflict which surrounds the job.
(2) Affective Conflict- The conflict which involves emotions, prejudices, superstitions etc. is
referred to as Affective Conflict. The managers should always try to discourage affective
The managers should try to devise a Win-Win Strategy rather than Win-Lose Strategy. This
is similar to the Follet’s idea of Integration.


 Likert's linking pin model is often accused of only drawing the triangles around the
hierarchial structures & slowing down the process of decision making and doing nothing
 Likert has not dwelt on how to push organisations from System 1 to System 4.
 In practice it is observed that management often reverts back to the System 1 & 2
techniques in times of crisis. If System 4 is that much effective then why it is not
preferred in times of emergency. Does it mean that supportive relationships break down
in these situations.
 Organisations exist in an overall ecology. If the society itself is hierarchial and
authoritarian culture exists in it then it should not be expected that the organisations
would follow System 4 concept

Chris Argyris (1923-2013)

 Personality and Organization, 1957
 Integrating the Individual and the Organization, 1964
 Organizational Learning, 1978

Background story
A descendant of Greek immigrant parents to the United States, Chris Argyris (1923-2013) served
in the U.S. Army during the second world war. He studied at Clark, Kansas and Cornell
Universities. He obtained his Ph.D. degree in Organizational Behavior (1951) from Cornell
Chris Argyris attempts a detailed exploration of the fundamentals of organisation behaviour and
human interaction in the workplace. Argyris raises profound questions about how organisations

are managed and frequently throws into doubt what is accepted as ‘systematic theory’ and ‘good

His work can be divided into 4 phases :
(1) Argyris analyses the impact of formal organisational structures and
control systems and processes on individuals and how the latter responded and
adapted to them. The publications relevant to this phase are Personality and Organization
(1957) and Integrating the Individual and the Organization (1964).
(2) In the next phase his interest shifted to organisational change. This research
resulted in an important book: Organization and Innovation (1965).
(3) The third phase of his inquiry was focused on the role of the social scientist as
researcher and actor / interventionist. Two major publications of
relevance to this phase are: Intervention Theory and Method (1970) and Action Science
(4) From there on he moved to his fourth phase of work on individual and
organisational learning. The important books of this phase are: Theory in
Practice (1974); Double Loop Learning (1974); Organizational Learning (1978); and
Organizational Learning-II (1996)--all in collaboration with Donald Schon.

I. organisational structures and control systems

Argyris’ started his academic journey as a behavioural scientist and as an advocate of the human
relations school in the early 1950s. His book on Personality and Organization (1957) became a
classic text for students of psychology and organisation behaviour. In his early work Argyris
advances three interrelated propositions:
i. For achieving goals organisations depend on people.
ii. In most cases, the organisation itself stands in the way of people realising their potential.
iii. The primary task of the organisation is to ensure people’s motivation and provide
direction to the fulfillment of their potential.

He categorized individuals into two types. This idea has been discussed through the idea of
Immaturity- Maturity Paradigm.
 Immature Personalities- He is referring to individuals who carry the characters of an
 Mature Personalities- He is referring to individuals who carry the characters of an adult.

Immature Personality Mature Personality

Passive Active


Dependent Independent

Limited Behaviour Multiple Behaviour

Erratic and Shallow Interest Stable and Deeper Interest

Short Term Perspective Long Term Perspective

Feeling of Subordination Feeling of Equality or Superiority

Lack of Self-Awareness Possess Self-Awareness

He emphasizes that most of the contemporary organizations today are conducive to the
immature personalities although most of members of these organizations are capable of being
turned into mature personalities.

Immaturity / Maturity Theory

According to Argyris, seven changes should take place in the personality of individuals if they
are to develop into mature people over the years.
(1) individuals move from a passive state as infants to a state of increasing activity as adults.
(2) individuals develop from a state of dependency upon others as infants to a state of relative
independence as adults.
(3) individuals behave in only a few ways as infants, but as adults they are capable of behaving
in many ways.
(4) individuals have erratic, casual, and shallow interests as infants but develop deeper and
stronger interests as adults.
(5) the time perspective of children is very short, involving only the present, but as they mature,
their time perspective increases to include the past and the future.
(6) individuals as infants are subordinate to everyone, but they move to equal or superior
positions with others as adults.
(7) as children, individuals lack an awareness of a "self," but as adults they are not only aware
of, but they are able to control "self."

II. Organisation Development and Organisation Change

Organisation Development
Along with Edgar Schein and Warren Bennis, he was a co-founder of the field of organisation

 Organisation Development ∝ Individual development

 Individual development ∝ Organisation environment

He argues that the principles of formal organisation such as task specialization, unity of
direction, chain of command, and span of control and managerial controls, combined with the
impact of directive leadership, would have adverse consequences for individual growth and
organisational effectiveness. A votary of job enrichment, Argyris challenges the extremes of
Taylorism, especially the view that ‘one hires a hand rather than a whole person.’

Job Enrichment –to make job more interesting & satisfying & generate the feeling of
responsibility among the employees .

Collating evidence from studies in social psychology and organisation behaviour, Argyris
hypothesizes a basic incongruence between the requirements of formal organisation and the
needs of mature personality. Relying heavily on maturity – immaturity theories, he suggests that
these characteristics tend to be incongruent with the needs of adult individuals. The career
development models of organisation further contribute to a less mature behavior on the part of
organisation members.
Impact of formal organization on individuals : The compounding
affects or the various instruments of control lead individuals to become passive, dependent and
submissive. They also generate in healthy individuals feelings of frustration and failure. As a
result, they tend to be indifferent and mechanical. Subordinates focus their attention on meeting
the organisation’s formal requirements, and the leader’s needs. They neglect their own needs
and compete with each other in pleasing the leader. Argyris concludes that the impact of
directive leadership ‘compounds the felony’ that the formal organisation commits.
Argyris proceeds to link the organisational scenario to the Maslowian framework of hierarchy of
needs. Since individuals are unable to use their abilities in the context of a bundle of
incongruent organisational characteristics and the assumption of the management that the
employees are lazy, uninterested in work and money-crazy and guided by a short term
perspective, the fulfilment of the higher order needs goes haywire.

Critique of Herbert Simon: Argyris is critical of Herbert Simon for his emphasis
on the importance of authority structures, for paying limited attention to the emotional side of
man and for ignoring the negative feelings of a typical employee towards the organisation and
its goals. He states that Simon’s concept of ‘intendedly rational man’, with its focus on the
consistent, programmable and organized thinking activities’ of an employee, accords primacy to
goal-relevant behaviour and ignores the more salient aspect as to how the purpose itself has
emerged. Argyris considers that the concept of ‘satisficing man’ would promote status quo in
organisations. Besides the exclusion of variables like self-actualization, reliance on mechanisms
of organisational influence would tantamount to the view that human beings can be motivated
by the authority system

Intervention Strategies for Organisational Change

His strategy of intervention for organisation development encompasses four core areas. In
operationalising the strategy in these four areas Argyris relies on the assumptions and
procedures of Maslow’s theory of hierarchy of needs. These are :


(1) The organisation should provide an environment for the development of the
personal or psychological maturity of the individual.

(2) A programme for organisation change should aim at improving the interpersonal
competence of the employees :
Argyris finds that hitherto both public and business organisations have been placing
emphasis on improving intellectual and mechanical skills to the neglect of interpersonal
skills. Contrary to this trend, Argyris advocates that organisations function better if their
members are more interpersonally competent. He postulates the requirements for the
development of interpersonal competence. In operationalising the concept of interpersonal
competence, he mentions the following specific kinds of behaviours (Argyris, 1970, 40).
(1) Owning upto, or accepting responsibility for one’s ideas and feelings;
(2) being open to ideas and feelings of others and those from within one’s self;
(3) experimenting with new ideas and feelings; and
(4) helping others to own up, be open to, and to experiment with their ideas and feelings.

(3) Changes must be introduced to transform the traditional pyramidal form of organization :

Advocating an open-ended approach, Argyris suggests a match between the requirements of

the task and the nature of decision making on the one hand and the form of organisation on
the other. He notes that the old pyramidal form will be more effective for the routine,
noninnovative activity that requires little, if any, internal commitment by the employees.
However, as the decisions become less routine, more innovative, as they require more
commitment, the newer forms such as the matrix organisation will be more effective.
Accordingly, he suggests various mixes of the organisation with different pay offs.

Matrix Organization– It is a superimposition of the project organization over the functional

organization. It is a non-hierarchic organization or a flatter organization. These organizations
carry the required authority and autonomy to deal with the concerned issues. These structures
are primary suitable to deal with issues of emergent nature or those require multiple skills or

(4) Techniques for programmed learning aimed at individual change should be

introduced :
In Argyris’ view programmed learning is a basic tenet of organisational development.
Programmed learning, according to him, should focus on exposure of employees in teams,
organisational diagnosis, renewal and effectiveness. T-group technique or sensitivity training is
an innovative technique suggested by Argyris for improving employee effectiveness.
T-Group Technique : The T-group technique is a laboratory programme designed to develop
awareness of their self and acceptance of the sensitivities of others and in the process give and
receive feedback. The T-group is expected to improve self-esteem and interpersonal
competence, and contribute to effective group functioning. The technique was formed to enable

participants to submerge hierarchical differences and develop distributive leadership and
consensual decision making.
Argyris suggests the need for widespread use of T-group training in public administration. In
this connection, he cites the experience of the US Department of State. Since the pathologies
affecting other organisations in the west and non-west are similar application of T-group
training in government bureaucracies is expected to have positive outcomes.

In operationalising the strategy in these four areas Argyris relies on the assumptions and
procedures of Maslow’s theory of hierarchy of needs

III. Action Science / theories of action

An important component of Argyris contribution is his approach to action science / theory of
action. It is grounded in his practice as a researcher, educator and interventionist (1978, 1980,
1982). It is also a perspective of mainstream research, which enables him to offer a critique of
others’ work or provide an alternative. Action science envisages a conception of human beings as
designers of action.
There is a theory of action behind the design of each programme. Design includes specific
meanings and intentions to each or several of behaviours of the employee. The meanings or
constructs attributed, in turn, serve as guides to action. Further, action is designed to achieve
intended consequences, which are monitored to learn the extent of effectiveness of action.
Implicit in this design is prediction and causal relationships, with ‘a set of complexly related
propositions’. It is also a theory of control envisaging the intended consequences of role
enactment by Managers or other organisation members. Achievement of results is the expected
outcome. The main purpose of action science in Argyris’ view is to identify which actions are
produced by which conditions.

Actionable Knowledge :
Theories-in-use are often the cognitive maps by which individuals design action. For the action
scientist this is a high level design programme. Actionable knowledge is defined by Argyris as
“information actors could use, for example to craft conversations that communicate the
meanings but leave actors free to select the specific words.” The theory-in-use relating to face
saving is an example of actionable knowledge. It identifies the action strategies -- bypass and
cover-up -- leaving the choice of words to the actor. Specification of the theories of action held
by any individual would be enormously complex and lengthy. The action scientist’s job involves
learning to reflect on reflection-in-action, making explicit the theories-in-use. The models
constructed for this purpose should provide ways to test and extend the theory, and at the same
time, help client systems to reflect on their theories in use and to learn new theories-in-use.
Client organisations can be helped through actionable knowledge derived from tests of the
models of theories-in-use.

Knowledge Management :
he art of management, in Argyris’ words, is managing knowledge. That means “we do not
manage people per se, but rather the knowledge that they carry.” And the job of leadership is to
create conditions that enable people to produce valid knowledge. The purpose of knowledge

goes beyond understanding and explaining. Its purpose is action. In Argyris perspective
Knowledge Management has three requirements: (1) to produce valid and validatable
knowledge; (2) to produce informed choices about the ways to use that knowledge; and (3) to
monitor how well one is doing on the first two.

Model I and Model II :

According to Argyris and Schon (1974) “most people utilize a dysfunctional theory-in-use, called
Model 1.” The causal reasoning behind Model 1 reduces sensitivity to feedback and thus inhibits
the detection of error, and “prevents learning about the real causes and problems.” The salient
characteristics of Model 1 are the need for control, maximization of winning, suppression of
emotions, and being rational. Its strategies involve making untested attributions about others,
single-track evaluations and expression of arguments without openness. Adherence by
individuals to Model 1 results in a set of organisational characteristics (O-1) such as
‘defensiveness, self-fulfilling prophesies, self-fueling processes, and escalating error’ (Argyris,
1982:8). Furthermore, certain features of Model 1 theories-in-use block “actor’s own awareness
of their counterproductive nature”. For these reasons, theories-in-use cause organisations to
malfunction and at the same time O-1 systems ‘cause’ individuals to reason and act as they do.
Argyris argues that the blindness about the tacit sources of ineffectiveness is unlikely to correct
itself without inputs from an outside interventionist.
Model II is expected to change the self-reinforcing dynamics and also help the actors to learn an
alternative cognitive programme. Argyris expects that a Model II theory-in-use would rely on
directly observable data, and would require advocacy to be “supported by illustration, testing
and inquiry into others’ views.”

IV. Learning
The work of Argyris and Schon has contributed to the emergence of the idea of a ‘learning
organisation’. An organisation develops frameworks, norms and strategies for carrying out its
activity. In a healthy organisation these are continuously being tested, thereby enabling
employees to learn new ideas and practices. As a result, the organisation itself changes /
transforms itself, to be called a ‘learning organisation’. Argyris devotes considerable attention
towards a systematic analysis of learning in organisations. He refers to two types of learning:
(1) single-loop learning (Model I behavior) : Single –loop learning
occurs when a manager responds to a problem by recourse 13 to the routine ‘application of rules’
(2) double-loop learning (Model II behaviour) : Double-loop learning
takes place when the Manager / employee questions the assumptions on which the response is

Learning can be defined as occurring under two conditions. First, ‘learning occurs when an
organisation achieves what is intended, that is, there is a match between its design for action
and the actual outcome’. Second, learning also occurs ‘when a mismatch between intention and
outcome if identified and corrected, that is, a mismatch is turned into a match.’ Singleloop
learning occurs when matches are created, or when mismatches are corrected by changing
actions. Double-loop learning occurs when mismatches are corrected by examining and altering
first the governing variables and then the actions. Defensive routines are minimized in double-

loop learning, thereby facilitating learning. In this, errors are detected and corrective action is

Critique of Chris Argyris

(1) There is a subtle inconsistency between Argyris’ commitment to the benign view of man and
his belief in self-actualization on the one hand and his advocacy of the need for flexibility in
finding a match between the nature of the task and the structure of the organisation on the
(2) Herbert Simon (1973, 348) takes serious objection to Argyris’ antipathy to authority, 16
which is considered to be without any parallel. According to him the view that ‘structure is
devil’ is influenced by Argyris’ obsession with the need for power.
(3) Attention has also been drawn to lack of sufficient empirical support to Argyris’ contention
that employees are always antagonistic to authority. On the contrary, there is considerable
support to Herbert Simon’s view that many employees seem to accept authority and
organisation goals because such acceptance is in congruence with their values and interests
(4) The T-group training experiments initiated in the 1960s by Argyris and several others were
reported to be an astounding success. The experimenter were excited about their power to
unfreeze the rigid, authoritarian behaviour of many managers. However, with the passage of
time and thousands of T-group experiments, it was noticed that the effects of T-groups
experiments were short-lived and the behavior change could not be sustained for long as the
employees reverted to their pre-existing behavior patterns.



Douglas M. McGregor (1906 –

 The Human Side of Enterprise, 1960
 The Professional Manager, 1967
 Leadership and Motivation, 1969

Background story
A leading industrial-psychologist of the early 20th Century, McGregor is a household name in
the field of Management and Administration. A thinker, an academician of repute, manager and
a consultant, McGregor’s interpretation of the assumptions about Human Behaviour and what
motivates man to work resulted in his propositions – namely Theory X and Theory Y.

McGregor’s focus was on how the management could utilize its human resources for the welfare
of both the enterprise and the employee. Douglas McGregor’s views on the theory of motivation
are significant because it is applicable to both the public and private enterprises. His major work
was “The Human Side of Enterprise” (1960). “The Professional Manager” was published

What distinguished McGregor from other thinkers was his ability to translate the ideas into
techniques that can be applied and used by the practitioners in their work environment. “The
Human Side of Enterprise” comprises of three parts, the first discusses the theoretical
assumptions behind management and organizations, the second deals with practical application
of Theory Y and the third explains how managerial talent can be developed.

 He identifies three reasons as significant as to why the traditional principles (principles of
classical organization) have failed:
(1) the principles are derived from the study of models (notably the military and the Church
– as Max Weber does in elucidating the characteristics of bureaucracy);
(2) classical principles ‘suffer’ from “ethnocentrism” (in ignoring the significance of the
political, social and economic milieu in shaping organizations and influencing
managerial practice); and
(3) underlying assumptions about human behavior, which are only partially true.

Thus, McGregor argues the need for “new theory, changed assumptions, more
understanding of the nature of human behavior in organizational settings”



 Theory X assumes that the average employee:

 Dislikes work and attempts to avoid it.
 Has no ambition, wants no responsibility, and would rather follow than lead.
 Is self-centered and therefore does not care about organizational goals.
 Resists change.
 Is gullible and not particularly intelligent

 Soft & Hard Approach :

 Essentially, Theory X assumes that people work only for money and security. The
managerial approaches under Theory X vary from hard to soft. The hard approach relies
on coercion, implicit threats, close supervision, and tight controls, essentially an
environment of command and control. The soft approach is to be permissive and seek
harmony with the hope that in return employees will cooperate when asked to do so.
However, neither of these extremes is optimal. The hard approach results in hostility,
purposely low-output, and hard-line union demands. The soft approach results in ever-
increasing requests for more rewards in exchange for ever-decreasing work output. In
short, Theory X is a carrot and stick approach to management.
 McGregor’s contention is that the two approaches are inappropriate because the
assumptions of Theory X (on human behaviour and attitude towards work) are not
correct. Further in McGregor’s words “The Philosophy of Management by direction and
control – regardless of whether it is hard or soft – is inadequate to motivate because the
human needs on which this approach relies are today unimportant motivators of
 Based on Maslow's hierarchy of needs, McGregor says that under Theory X the firm
relies on money and benefits to satisfy employees' lower needs, and once these needs are
satisfied the source of motivation is lost. Theory X management styles in fact hinder the
satisfaction of higher-level needs.

 From this reasoning, McGregor proposed an alternative:

Theory Y. Theory Y makes the following general
 Work can be as natural as play and rest.
 People will be self-directed to meet their work objectives if they are committed tothem.
 People will be committed to their objectives if rewards are in place that address higher
 needs such as self-fulfillment. Under these conditions, people will seek responsibility.
 Most people can handle responsibility because creativity and ingenuity are common in
the population.
Theory Y enables the enterprise to do many things that helps motivate its employees:
 The enterprise may decentralize control and reduce the number of levels of
management. A superior may have more number of subordinates and consequently will
be forced to delegate some responsibility and decision making to them.
 The scope of an employee's job can be increased to add variety and opportunities to
satisfy ego needs of the employee.
 Employees can be involved in the decision making process.


 Performance appraisal of the employees through self-evaluation techniques can be
McGregor insists that Theory Y management does not imply a soft approach. McGregor’s
preference for Theory Y was because he believed that man is in dependent relationship (from
worker to Vice-President), more so in an enterprise, and therefore will look to “security
needs.” (Maslow). However, once the dependent relationship is secured his social needs
become important motivators through which he fulfills other needs like recognition from his
peer group, love and respect etc. He says that management had wrongly assumed that they
(man’s aspiration to fulfill social needs) are a threat to the enterprise, though they are not.
But when management tries to prevent the fulfillment of social needs through control and
repression, the employees may go against the objectives of the enterprise. Thus, McGregor’s
Theory Y is not only a framework for motivating employees, but also a guideline for the
management as to what they are expected to do towards their employees. He expects a
management that is responsible and responsive to the needs of the employee. Taylor also
talks of the change that has to be brought about in the managers (mental revolution) for
increased productivity under scientific management.

 Professional manager
The role of the professional manager in motivating employees attracts the attention of
McGregor. He says “most professionals – lawyers, doctors, architects, engineers – simply
rely on the authority of knowledge” and “their relationships with clients represent an
extreme form of authoritarianism”. They do not realize that “the clients can ignore their
advice or even terminate the relationship”. True professional help, to McGregor, “is not in
playing God with the client, but in placing professional’s knowledge and skill at the client’s
disposal.” McGregor’s professional manager is one who helps the client in making use of the
knowledge and skill that is made available at his (client’s) disposal. He considers this as an
important form of social influence, not understood by many.

 Leadership
“Leadership”, according to him, “is not a property of the individual, but a complex
relationship among the variables”. The variables include the characteristics of (a) the leader,
(b) the followers, (c) the organization – structure, purpose and the nature of tasks to be
performed, and (d) the social, economic and political milieu. The task of management,
therefore, is “to provide a heterogeneous supply of human resources from which individuals
can be selected to fill a variety of specific but unpredictable needs.”

Theory Z of Dr. William Ouchi

Theory Z of Ouchi is Dr. William Ouchi's so-called "Japanese Management" style popularized
during the Asian economic boom of the 1980s. For Ouchi, 'Theory Z' focused on increasing
employee loyalty to the company by providing a job for life with a strong focus on the well-being
of the employee, both on and off the job. According to Ouchi, Theory Z management tends to
promote stable employment, high productivity, and high employee morale and satisfaction.
Theory Z of Abraham Maslow


Humanistic psychologist Abraham Maslow, upon whose work McGregor drew for Theories X
and Y, went on to propose his own model of workplace motivation, Theory Z. Unlike Theories X
and Y, Theory Z recognizes a transcendent dimension to work and worker motivation. An
optimal managerial style would help cultivate worker creativity, insight, meaning and moral
Contingency theory
For McGregor, Theory X and Theory Y are not opposite ends of the same continuum, but rather
two different continua in themselves. In order to achieve the most efficient production, a
combination of both theories may be appropriate. This approach is derived from Fred Fiedler's
research over various leadership styles known as the contingency theory. This theory states that
managers evaluate the workplace and choose their leadership style based upon both internal
and external conditions presented. However, because there is no optimal way for a manager to
choose between adopting either Theory X or Theory Y, it is likely that a manager will need to
adopt both approaches depending on the evolving circumstances and levels of internal and
external locus of control throughout the workplace.

1. Theory X style of management fosters a very hostile and distrustful atmosphere-
An authoritarian organization requires many managers just because they need to constantly
control every single employee, and the method of control usually involves a fair amount of
threat and coercion.
At times, an employer that is overly threatening will lead to dissatisfaction among
employees, or they might even attempt to blame each other in order to save themselves from
the threats.
Conversely, Coercion might work better with the prospects of bigger rewards for more, but
employees might purposely try to cheat or attempt to hide the truth itself. Also,employees
might try to sabotage the efforts of each other in order to make it easier for them to achieve
the rewards.
2. Theory Y style of management is tough to uphold in reality-The core belief of Theory Y, is
that with the right support and the right environment, self-directed employees will be able to
perform their jobs well. However, because every individual is different from one
another,creating an environment which fits all does not sound very practical in the current
era of organizations.
3. Perhaps one of the most important critique is the subject of culture. McGregor was heavily
influenced by his colleague Abraham Maslow and his work on motivation; indeed he used
the hierarchy of needs in his 1957 paper to help explain the shortcomings of Theory X as an
appropriate management style. The criticism here is that is it very ethnocentric and does not
take into consideration different cultural environments. Theory Y concepts are “not
universally applicable and that Theory X is more applicable in countries characterized by
high power and /or high uncertainty avoidance“
4. Another criticism of his ideas comes from the fact that, as The Economist (2008) puts it,
people have “criticised his ideas as being tough on the weaker members of society, those who
need guidance and who are not necessarily self-starters“
5. A second criticism of his ideas comes from the fact that, as The Economist (2008) puts it,
people have “criticised his ideas as being tough on the weaker members of society, those who
need guidance and who are not necessarily self-starters“




In order to understand administrative behaviour, it is important to examine one of its basic
elements; namely, the concept of decision-making with particular reference to Herbert A.

The first question that comes to mind is: What is decision making? First and foremost decision
making is viewed by various leading scientist and writers as follows:
 Webster’s Dictionary: the act of determining in one‟s own mind upon an opinion or course
of action.
 Robert Tannebaum: involves a conscious choice of selection of one‟s behaviour alternative
from among a group of two or more behaviour alternatives.
 G. R. Terry: the selection of one behaviour alternative from two or more possible alternatives
 Seckler-Hudson: decision making in the government is a plural activity. One individual may
pronounce the decision, but many contribute to the process of reaching the decision. It is a
part of the political system.
 W. F. and Ivan H. Meyer: a management technique used to reach decision by analyzing
information, evaluating alternatives and, in each case, choosing the best policy or line of
(a) identifying the problem;
(b) analyzing the problem;
(c) collecting data;
(d) classifying and analyzing data;
(e) preparing data;
(f) cataloguing alternative solutions;
(g) evaluating the alternatives;
(h) taking the decision;
(i) implementing the decision; and obtaining feedback on the effects of the decision.

Relevant scientists. Scholars and writes and their

A systematic related literature review of decision making as one of the basic elements of
administrative behaviour gives the following eminent scholastic contributions:



Discussion and analysis of the meanings

A careful review of the contributions by the various behaviour, scholars and writers reveals that
as one of the basic elements of administrative behaviour, decision-making means choosing one
alternative from various alternatives and that it is essentially problem solving in nature.

 Decision making is closely related to policy-making, but they are not the same. G. R. Terry
clarifies the difference between decision and policy as follows: „a decision is usually made
within the guidelines established by policy. A policy is relatively extensive, affects many
problems, and is used again and again. In contrast, a decision applies to a particular problem
and has a non-continuous type of usage‟
 Classical thinkers, however, did not attach much importance to decision making as an all
pervasive activity related to all management functions like planning, organising,
coordinating, controlling, and so on.
 In the words of Fred Luthans, classical thinkers such as Henri Fayol and Lyndale Urwick
were concerned with decision-making process only to the extent that it affects delegation
and authority, while Frederick W. Taylor alluded to the scientific method only as an ideal
approach to making decisions.
 The first comprehensive analysis of decision making process was given by Chester I. Barnard
(1886 - 1961) who observed that the processes of decision making are largely techniques for
narrowing choice.
 J. D. Millett mentions three factors which should be examined in order to understand the
decision making process:
(a) Personal differences among the individuals that make some decisive and others
(b) Role played by knowledge in decision-making
(c) Institutional and personal limitations which circumscribe decision-making
 But W. Fox and Ivan H. Meyer: argue that in practical real life situations decision are more
often made on reflex, without mush conscious thought, or they are made without
systematically and exhaustively collecting all possible alternatives but deciding on an
alternative that satisfies

H. A. Simon’s Concept of decision making

A closer look at Simon‟s concept of decision-making indicates the following:

Meaning of decision making

 Herbert A. Simon, a leading America public administration scientist as the foremost decision
theorist looks at decision-making as the optimum rational choice between alternative
courses of action. According to Simon, decision-making pervades the entire organization,
that is, decisions are made at all levels of the organization. Hence, he views an organisation
as a structure of decision makers. Simon equates administration with decisionmaking as
every aspect of administration revolves around decision-making. He observes that decision-
making is an all embracing activity subsuming all the administrative functions described as
„POCCC by Henri Fayol and POSDCORD by Luther Gulick‟.


 H. A. Simon is very critical of the classical approach and its advocacy of principles of
administration having universal application. He challenges their universal validity and
describes them as proverbs occurring in mutually contradictory pairs. He argues that before
one can establish any immutable principles of administration, one must be able to describe,
exactly how an administrative institution (organisation) looks and exactly how it works.

 H. A. Simon observes that before a science can develop principles, it must possess concepts.
Decision-making is the most important activity of administration …… An administrative
science like any science is concerned purely with factual statements. There is no place for
ethical statements in the study of science.

Summary of Simon’s concept of administration

To sum up, H. A. Simon concept of administration has two basic elements; namely,
(a) The emphasis upon decision-making approach as the alternative to the classical thinkers
principles approach, that is, structural approach and
(b) The advocacy of empirical approach that is, value-free approach, as against the
normative approach to the study of administration.
As rightly observed by N. Umapathy, H. A. Simon’s proposes a new concept of administration
that is based upon theories and methodology of logical positivism with the focus on decision

Bases of factors of decision making

 What then are the bases of decision-making in any situation?
To answer this, contribution by Seckler-Hudson and H. A. Simon, as leading scholars in this
area, are considered.

 Seckler-Hudson: gives a famous list of twelve (12) factors which are considered in decision-
making. These are enumerated as:
1. Legal limitations;
2. Budget;
3. Mores;
4. Facts;
5. History;
6. Internal morale;
7. Future as anticipated;
8. Superiors;
9. Pressure groups
10. Staff
11. Nature of programme; and
12. Subordinates

 According to Herbert A. Simon, every decision is based upon two premises; namely
(a) The factual premises : A fact is a statement of reality. A factual premise can be proved
by observable and measurable means, that is, it can be tested empirically to find out
its validity.


(b) The value premises : A value is an expression of preference. A value premise cannot
be tested empirically, that is, it can only be subjectively asserted as valid.
According to H. A. Simon, the value premises are concerned with the choice of ends of
action, which the factual premises are concerned with the choice of means of action. He
maintains that, in so far as decisions lead to the selection of final goals, they can be called as
value judgments, that is, the value component predominates, and in so far as they
(decisions) involve the implementation of such goals, they can be called as factual judgments
that are the factual component predominates.

Process or stages in decision making

 According to Fox and Ivan Meyer(1995:33), steps in the comprehensive rational decision-
making process include:
G. R. Terry, a prominent scholar on the subject, lays down the following sequence of steps in
decision making:
(a) Determine the problem.
(b) Acquire general background information and different viewpoints about the problem.
(c) State what appears to be the best course of action.
(d) Investigate the proposition(s) and tentative decisions.
(e) Evaluate tentative decisions
(f) Make the decision and put is to effect.
(g) Institute follow up and if necessary modify decision in the light of result obtained

 According to H. A. Simon’s stages of decision-making, decision making comprises three

principal stages/phases/processes. These are: intelligence activity, design activities and
choice activity. They are explained separately as follows:

(a) Intelligence activity:

Herbert A. Simon calls the first phase of decision-making process as an intelligence activity
which involves finding occasions for making a decision. According to him, the executives
spend a large fraction of their time surveying the economic, technical, political and social
environment to identify new conditions that call for new action.
(b) Design activity:
The second phase, also called the design activity, consists of inventing developing and
analyzing possible courses of action that is, finding alternative courses of action. Simon
believe that the executive spend an even larger fraction of their time, individually or with
their associates, seeking to invent, design and develop possible courses of action for
handling situation where a decision is needed.
(c) Choice activity:
Simon calls the last phase in decision making as the choice activity, which involves selecting
a particular course of action from the given alternatives. He opines (thinks, believes) that the
executives spend a small fraction of their time in choosing among alternative actions already
developed and analyzed for their consequences to meet an identified problem.

According to Herbert A. Simon, these three phases in decision making are closely related to
the stages in problem-solving first described by John Dewey (1910). They are:
(a) What is the problem?


(b) What are the alternatives?
(c) What alternative is best?

Herbert A. Simon: concludes that, in general, intelligence activity precedes design and
design activity precedes choice. The cycle of phases is, however, far more complex than this
sequence suggests. Each phase in making a particular decision is in itself a complex decision
making process. For example, the design phase may call for new intelligence activities;
problem at any given level generate sub-problems that, in turn, have their intelligence,
design, and choice phases, and so on. There are, therefore, wheels within wheels.
Nevertheless, the three large phases are often clearly discernible as the organisational
decision process unfolds.

Classifications of decisions

1. Programmed and non programmed decisions

(a) Decisions are programmed to the extent that they are repetitive and routine so that a
definite procedure has been worked for handling them and they do not have to be treated
de novo each time they occur. It is decision making by precedent.
(b) Decisions are non-programmed to the extent that they are novel, unstructured, and
consequential. There is no cut and dried method for handling the problem because it has
not arisen before, or because its precise nature and structure are elusive or complex or
because it is so important that it deserves a custom – tailored treatment.
H. A. Simon has identified the traditional as well as the modern techniques of programmed
and non programmed decision. These are illustrated below in Table 1.1



Types of decision Traditional Modern

techniques techniques
1. Habit 1. Operations research
Programmed: 2. Clerical routine  Mathematical analysis
1) Routine, repetitive 3. Organization structure: models
decision  Common  Computer simulation
2) Organisation develops expectations 2. Electronic data processing
specific processes for  A system of sub-goals
handling them well defined
information channels

1. Judgement intuition Heuristic problem solving

Non and creativity techniques applied to:
programmed 2. Rules of thumb (a) Training human decision
: 3. Selection and training of makers
executives (b) Constructing heuristic
 One-shot, ill- computer programmes.
structured, novel,
policy decisions
 Handed by general

Simon and March have stated that the administrator who is responsible for both routine
activities and long term planning devotes greater share of his time on routine activities. This
results in either postponement or avoidance of long term decisions. This phenomenon is
called by them as Gresham’s Law of Planning. It implies that routine drives out non-
programmed activity.

2. Generic and unique decisions

Peter Drucker in his popular book. The Practice of Management classifies decisions into
generic and unique decision. In some way, these resemble programmed and non
programmed decisions respectively.

3. Organisational and personal decisions

Chester I. Barnard: classifies decision into organisational and personal decisions. The
former (organisational) are taken by an executive in his individual capacity that is, not as a
member of his organisation.

4. Policy and operating decisions

Decisions are further classified into policy decisions and operating decisions
(a) The policy decisions are also known as strategic decisions. These decisions are of
fundamental character affecting the entire organisation. Obviously, they are taken by the
top management.


(b) By contrast, the operating decisions are meant for executing the policy decisions. Hence,
they are taken by the lower management cadres. These are also known as tactical

5. Individual and group decision

Decisions are also classified into individual and group decisions on the basis of the number
of persons involved in the decision making process.
(a) Individual decisions: are those decisions which are made by individual public
administrators or managers in the organisations. They assume complete responsibility
for the consequences of their decisions.
(b) Group decisions: on the other hand, are those decisions which are made by a group of
administrators or mangers in an organisation.

They assume collective responsibilities for the consequences. Cabinet policy decisions are an
example of decisions assuming collective responsibility.

Models of decision-making
To understand Simon’s concept of decision making more comprehensibly let us examine
another relevant aspect; namely, models of decision-making. There are four models of decision
making namely:
(a) H. A. Simon’s bounded rationally model;
(b) Charles E. Lindblom’s incremental model
(c) Amitai Etzioni’s mixed scanning model and
(d) Yehezkel Dror’s optimal model

We analytically examine each model separately as follows:

I. Simon’s bounded rationality model of decision making

Herbert A. Simon deals comprehensively with the rationality aspect of decision making process.
His model of rational decision making is also known as behaviour alternative model because he
proposes an alternative model as a more realistic alternative to the classical economic rationality
Simon views rationality as the selection of preferred behaviour alternatives in terms of values
whereby the consequences of behaviour can be evaluated. He also distinguishes various types of
rationality. According to him, six specific elements must be analytically understood in that a
decision is:
(a) Objectively rational if in fact is the correct behaviour for maximizing given values in a
given situation.
(b) Subjectively rational; if it maximizes attainment relative to the actual knowledge of the
(c) Consciously rational to the degree that the adjustment of means to ends is a conscious
(d) Deliberately rational to the degree that adjustment of means to ends has been
deliberately brought about by the individual of by the organisation.
(e) Organizationally rational if it is oriented to the organization‟s goals.


(f) Personally rational if it is oriented to the individual‟s goals.

The concepts satisfaction and sufficing and bounded rationality Herbert A. Simon: believes that
total rationality is impossible in administrative behaviour. Hence, maximizing decisions is also
not possible. As a result:
1) Simon observes that human behaviour in an organisational setting is characterized by
bounded rationality (Limited rationality) leading to satisficing decisions as against
maximizing decisions (optimizing decisions).

2) Satisficing (a term derived from the combination of terms, satisfaction and sufficing)
decisions implies that a decision maker chooses an alternative which is satisfactory or good

3) Regarding the term bounded rationality, a number of factors are responsible for bounded
rationality leading to satisficing decisions

(i) Dynamic (rather than static) nature of organisational objectives.

(ii) Imperfect (inadequate) information as well as limited capacity to process
(analyse) the available information.
(iii) Time and cost constraints
(iv) Environmental forces or external factors.
(v) Alternatives cannot be always quantified in an ordered preference.
(vi) Decision- maker may not be aware of all the possible alternatives available and
their consequences.
(vii) Personal factors of the decision maker like preconceived notions, habits, and so
(viii) Organizational factors like procedures, rules, channels of communication, and so

Proposition of the model of administrative man


 In view of the above limitations, H. A. Simon proposes the model of administrative man
as against the model of economic man who takes the maximizing decisions. According to
him, the administrative man:
(a) In choosing between alternatives, tries to satisfy or look for the one which is
satisfactorily or good enough;
(b) Recognizes that the world he perceives is a drastically simplified model of the real
(c) Can make his choice without first determining all possible alternatives and without
ascertaining that these, in fact , are all the alternatives because he satisfies, rather
than maximizes; and
(d) Is able to make decisions with retatively simple rule of the thumb because he teats
the world as rather empty.

 Thus, the ‘satisficing’ administrative man of H. A. Simon is different from the

‘optimising’ economic man, evolved by the classical economic theorists. He ends up with
„satisficing‟ as he does not have the ability to „optimise‟ (maximise).

 However, Chris Argyris observes that H. A. Simon, by insisting on rationality, has not
recognized the role of intuition, tradition and faith in decision making. He says that
Simon’s theory uses „satisficing’ to rationalize incompetence

 Norton E. Long and Phillip Selznick argue that Simon’s distinction between fact and
values revises in a new guise the discredited politics-administration dichotomy and
considers bureaucracy as a neutral instrument.

II. Charles E. Lindblom’s incremental model

 Charles E. Lindblom in his article the Science of Muddling through (1959) advocates the
incremental model of decision-making. It is dramatically opposite to Herbert A. Simon‟s
rational comprehensive model.

 C. E. Lindblom says that the actual decision making in administration is different from
the way it is generally described in theory. He recognizes the practical problems and
challenges in the rational comprehensive approach. He highlights the various limitations
like money, time information, politics, and others, which govern the actual decision
making process in the public administration

 Lindblom opines that that decision makers always continue the existing policies and
programmes with some additions. Thus, he argues that what actually occurs in
administrative decisions is „incrementalism‟ that is virtual continuation of the previous
activities with few modifications. The incremental model is also known as „branch
technique’ or „model of successive limited comparisons’ or „step-by-step decision-

 Thus, Lindblom assumes that the past activities and experiences are sued by the
administrators to make future decisions. He applies the two concepts to describe the


actual decision making process in administration- (a) „marginal incrementalism’ and (b)
„partisan mutual adjustment’.

III. Amitai Etzioni’s mixed –scanning model

 In his article Mixed scanning: A third approach to Decision making published in 1967,
Amitai Etzioni has suggested an intermediate model that combines the elements of both
rational comprehensive model (rationalism) and incrementalism.

 Etizioni broadly agrees with Lindblom’s criticism of the rational model. However, he also
says that incremental model is having two main drawbacks, viz:
(a) It discourages social innovation, and is thus partisan in approach, and
(b) It cannot be applied to fundamental decision. Hence, he advocates a mixed scanning

IV. Yehezkel Dror’s optimal model

 Yehezkel Dror in his book Public Policy making Re-examined suggests an optimal
approach to policy making (decision making) and policy analysis. He claims that his
„optimal model‟ is superior to all the existing normative models of decision making and
is a combination f economically rational model and extra-rational model.

 Dror’s optimal model is a rationalist model of policy making, It has, according to Dror,
five major characteristics; namely:
(a) It is qualitative and not quantitative.
(b) It contains both rational and extra-rational elements
(c) It is basic rational to economically rational
(d) It is concerned with meta-policy making.
(e) It contains built in feedback.

 Dror says that the optimal model has three principal phases that is:
o meta-policy making;
o policy making; and
o post policy making.

 Dror advocates the speedy development of the policy science to adequately solve the
critical problems of society. In his words, “Policy science can be partly described as the
discipline that searches for policy knowledge, that seeks general policy issue knowledge
and policy making knowledge, and integrates them into a distinct study.”

 Dror, in the words of Rumki Basu, “pleads for the adoption of the best policy by a
judicious evaluation of goals, values, alternatives, costs and benefits based on the
maximum use of all available information and scientific technology. He even
recommends extra-rational aids to facilitate effective policy analysis”.




The word communication is derived from the Latin word ‘Communis’ which means to share.
Thus communication is the activity of conveying information through the exchange of thoughts
and messages either by speech, visuals writings or behavior.

Communication in organizations:
Organizations are designed to work towards time-framed objectives.There is a need for deriving
proper coordination among all the parts of an organization and that is possible only through
proper communication. All organizations, big or small, simple or complex, general or technical
require a communication network. Millet rightly describes communication as ‘the life blood of
administrative organization’ and Pfiffner also portrays it as ‘The heart of management’. Thus
communication plays a vital role in organization functions depending upon its availability. To
put it in another way communication is the essence of organization.

Definitions of Communication:
 Ordway Tead, “Communication is the process whereby one person makes ideas and feelings
known to another. The underlying aim of communication is a meeting of minds on common
 Peter Drucker, “The most important thing in communication is hearing what is‘nt said.”
 Herbert Simon: “Communication is a process through which decisions are transmitted from
one person of an organization to another.”
 J.D.Millet , “Communication is the shared understanding of a shared purpose”
 Lawrence.A.Appley, “Communication is that process whereby one person makes his ideas
and feelings known to another.”
 Keith Devis, “Communication is the process of passing information from one person to

Analyses of the above definitions reveal the following essentials of communication:

(a) Communication is a process.
(b) For communication to take place at-least two persons are required.
(c) Communication is a continuous process.
(d) It involves both information and understanding
(e) It occurs at many levels in the organization.

Types of Communication


1. Oral and Written Communications:
Oral communication refers to the messages sent or received verbally and there is nothing in
black and white. Face-to-face discussion, telephonic talks, conference, interviews, public
speeches, whistle and bells, grapevine etc are some of the examples of oral or Verbal
Merits :
 It saves time and money.
 It is comparatively more effective when a detailed explanation of a message can be done
and doubts easily clarified.
 The communicator can easily guess whether the recipient is able to understand or not.
Limitation :
 There is no evidence made and hence difficult to verify later.

Written communication on the other hand refers to messages conveyed in writing form. For
example news paper bulletins, letters and memos, reports and forms, manuals and handbooks
annual reports and written grievances.
Merits :
 It is easily verified and precisely defined if there is a need for subsequent correction.
 Lengthy and complicated messages are better understood if they are put in writing.
Limitation :
 Delays and red-tapism gives scope for corruption
 response of the receiver may not be instantly available.
 Written communication may not be understood by everybody in the organization.

2. Gestural Communication:
Communication through gestures or postures is called as gestural communication. It is often
used to supplement oral communication.
Merits :
 Gestural communication is very useful in conveying feelings, attitudes and emotions. For
Ex: Handshake with a subordinate, parting of lips, movement of eyes etc. A good
manager cannot afford to ignore the role of gestures in the art of communication.
Limitation :
 Elements of non-verbal communication vary across cultures. Colors and body language
can convey quite a different in one culture than in another. For ex. The American sign for
OK (making a loop with thumb and first finger) is considered rude in Spain and vulgar in
Brazil. There is a need to fully acquaint oneself as far as possible in dealing with people
from other cultures.


3. Formal and Informal Communications
Formal Communication refers to official communication that is a part of recognized
communication system involved in operation of an organization. The organizational structure
reflects superior-subordinate relationship. Thus the scalar chain of authority established by the
organization provides the channels for all official communication. Formal communication can
be oral or written but it is mostly in the written form such as notes and letters reports and
Merits :
 Formal communication is systematic and ensures proper flow of information and ideas.
 Authority relationships indicate the direction and flow of communication in an
organization,eg.between superior and subordinate communication is in the form of
instructions and directions. In another form between subordinate and superior in the
form of reports, complaints, grievance redresses‘ etc
 Division of work, responsibility can easily be fixed and control can be exercised.
Limitation :
 The main disadvantage of this kind of system is that it is slow moving as it follows the
scalar chain and is impersonal.

Informal communication (Grapevine): This type of communication takes place informally

through inter-personal contacts among the employees. Members of informal groups pass on
information to each other. Thus informal communication takes place independently outside the
official line of communication. It transcends the barriers and boundaries of formal
communication channels. A grapevine is structure-less and information passes through it in all
directions. The informal organization can in fact be a ‘shadow’ organization, a site of
countervailing power and resistance — a shadow with a lot of substance, an anti-empire within
an empire.

Grapevine has the following characteristics:

(f) It arises from social interaction among people.
(g) It is a natural and normal activity due to desire of people to talk to one another
(h) It generally operates like a cluster chain as every person tells in turn many other persons.
(i) Only a few persons are active communicators in it. People are active on grapevine only when
their own interests or interests of their friends or colleagues are involved.
(j) It operates at a faster pace and this type of communication spreads like wild fire in a forest.
(k) Grapevine functions partly in a predictable manner which offers managers the chance to
influence it.

Merits :
 It helps in developing better human relations in the organization.
 It serves to fill possible gaps in formal communication due to its flexible and personal
 Its speed is very fast because it is free from all barriers.
 Grapevine helps to meet the social needs of the employees and provides an outlet for
realizing anxiety and frustration among the employees.


Limitation :
 It is not authentic and may get distorted and hence gives rise to rumors in the
 Nobody can be held responsible for spread of any kind of message as grapevine has no
definite origin.
 Grapevine can easily mislead the people.

4. Downward, Upward and Lateral (Horizontal)

Downward : Downward communication flows from people at higher levels to those at lower
levels in the organizational hierarchy. This kind of communication exists in organizations with
authoritarian atmosphere. Communication flows from top level executives to various lower
levels in the hierarchy of the organization in the form of orders and instructions, rules and

Upward: It flows from a subordinate to a superior andcontinues up in theorganizational

hierarchy. It is known as subordinate initiated communication. While the downward system is
highly directive- giving orders, instructions, information and procedures- the upward system is
characteristically non-directive in nature. Upward communication may consist of information
relating to i) Sub-ordinates work performance ii) Problems relating to work iii) Opinions
grievances and suggestions.
Unfortunately upward communication is often hindered by administrators in the chain of
hierarchy who filter the messages to be sent to their superiors. Effective upward communication
requires an environment in which subordinates feel free to communicate. Since the
organizational climate is greatly influenced by upper management, it is their duty to provide
free-flow of upward communication to a great extent.

Horizontal, (Lateral) or Cross-wise Communication:Flow of communication between persons

holding similar positions in the organization is known as horizontal or lateral communication.
This type of communication promotes horizontal flow of messages enabling departments to
work with other departments without having to rigidly follow the downward and upward
channel of communication. It promotes coordination and team work among different
departments. Lateral or horizontal communication takes place primarily at one level of the
organization — for example, within teams, among heads of department, among others in
coordination and liaison roles, or among virtually everyone at the lower levels of the pyramid.
Some important purposes of crosswise communication:
 Task coordination: The department heads may meet monthly to discuss how each
department is contributing for organizational success.
 Problem Solving: the members of department may assemble to discuss how they will
handle and treat budget cut.
 Information sharing: The members of one department may meet with the members of
another department to share some information
 Conflict resolution: Through meetings, the members of various departments can resolve
differences arising between them



5. Diagonal communication :
This is another form of communication that takes place between people who areneither in the
same department nor in the same level of hierarchy. It cuts across organizational structure and
facilitates speedy transmission of messages.

Communication Process
The communication is a dynamic process that begins with the conceptualizing of ideas by the
sender who then transmits the message through a channel to the receiver, who in turn gives the
feedback in the form of some message or signal within the given time frame. Thus, there are
Seven major elements of communication process:

1. Sender: The sender or the communicator is the person who initiates the conversation
and has conceptualized the idea that he intends to convey it to others.
2. Encoding: The sender begins with the encoding process wherein he uses certain words
or non-verbal methods such as symbols, signs, body gestures, etc. to translate the
information into a message. The sender’s knowledge, skills, perception, background,
competencies, etc. has a great impact on the success of the message.
3. Message: Once the encoding is finished, the sender gets the message that he intends to
convey. The message can be written, oral, symbolic or non-verbal such as body gestures,
silence, sighs, sounds, etc. or any other signal that triggers the response of a receiver.
4. Communication Channel: The Sender chooses the medium through which he
wants to convey his message to the recipient. It must be selected carefully in order to make
the message effective and correctly interpreted by the recipient. The choice of medium
depends on the interpersonal relationships between the sender and the receiver and also on


the urgency of the message being sent. Oral, virtual, written, sound, gesture, etc. are some of
the commonly used communication mediums.
5. Receiver: The receiver is the person for whom the message is intended or targeted. He
tries to comprehend it in the best possible manner such that the communication objective is
attained. The degree to which the receiver decodes the message depends on his knowledge of
the subject matter, experience, trust and relationship with the sender.
6. Decoding: Here, the receiver interprets the sender’s message and tries to understand it
in the best possible manner. An effective communication occurs only if the receiver
understands the message in exactly the same way as it was intended by the sender.
7. Feedback: The Feedback is the final step of the process that ensures the receiver has
received the message and interpreted it correctly as it was intended by the sender. It
increases the effectiveness of the communication as it permits the sender to know the
efficacy of his message. The response of the receiver can be verbal or non-verbal.

Noise: The Noise shows the barriers in communications. There are chances when the
message sent by the sender is not received by the recipient.

Communication Networks
A communication network is a pattern of inter-connected lines through which messages
might flow in one direction or several directions. As a pattern of contacts among the
organizations, communication network contains several channels. These channels determine
the rapidity, accuracy and smoothness with which the messages flow in and outside the
organization. Lengthy network delays the communication process and withthe networks
containing several filtering points, the message gets distorted.There are different types of
communication networks depending upon the channels and the number of persons involved.
These networks are broadly divided into two kinds:

Formal Communication Networks

Wheel Network: This is the most
centralized forms of a communication
network wherein all the information flows
from one central person, typically the
leader. The other members have little or no
communication link with each other. Here,
the leader deliberately controls the line of
communication and make sure that the
information reaches all in the group.

Chain Network: Under the chain

pattern, the information flows either up or
down the line. Here each person gets the
information from his immediate superior
and then passes it to their immediate
subordinates. Likewise, the chain gets
created, and all members get connected to a



single person, typically the leader. This

network is suitable when the information to
be passed is legally correct.

Circle Network: The circle network

is one of the decentralized forms of a
communication network wherein the
information is shared equally among all the
members. Here each person gives and
receives information from two or more
persons in the network. Under this pattern,
each member has the equal chance to

Free Flow Network: Under this

pattern, everyone is connected to each
other, and the information can flow freely
from anywhere in the organization. It is the
most decentralized form of formal
communication. The distinct feature of this
communication pattern is that all the
persons in the group are linked to each
other and can freely communicate with
anyone they want.

Inverted “V”
Communication: The inverted “V”
communication is a formal network wherein
the subordinate is allowed to communicate
with his immediate superior as well as with
the superior’s superior, i.e. the boss of the
immediate boss. But, however, the
communication between the subordinate
and the superior’s superior is limited.

Informal Communication Network



Single Strand Network:

Under this communication pattern, the
information flows from one person to the
next person in the network. Such as, one
person will give information to another
person who will communicate it to the next
person and similarly the third person will
also communicate the same message to the
next person in the network and so on. This
type of chain is less reliable and accurate to
pass on the message. Here, the
communication process is linear.

Gossip Chain Network: In the

gossip chain network, there is an individual
who tells the message to all other members
in the network directly. He is generally the
central person who seeks out and transmit
information to all that he has obtained.
Here, every person in the network
communicates with each other informally.
This network is often used when the subject
matter is unrelated to the nature of the job.

Probability Chain
Network: Under this communication
pattern the information passes randomly
from persons to persons. Such as, there is
an individual who acts as a source of
message selects any person randomly in his
network to communicate the message. That
second person will again, select another
person randomly and passes on the
message to him, likewise the
communication flows to different people
chosen randomly. Here, the source of
information for each member of the
network is different. This communication
pattern is used when the information is
interesting, but not significant.



Cluster Chain Network: In

the cluster chain network, there is an
individual who, acts as a source of a
message, transmits information to the pre-
selected group of individuals out of whom
few individuals again tell the same message
to other selected group of individuals.
Likewise, the chain continues, and the
message reaches to all in the network.This
pattern is similar to the telephone tree,
wherein one person calls other two
persons, then these two persons call other
three persons and again these three
persons are expected to call other three
persons. Likewise, the information gets
transmitted to all persons connected to the
telephone network. This is the most
common form of informal communication

Networking : It is deliberately cultivating contact in one‘s own organization and also

in other organizations in order to create and improve informal system of relationships and
also to develop one‘s own career.Networking can take many forms, including:
 Establishing communication links with other people at formally structured social
gatherings at which ‗shoptalk‘ is the primary focus.
 Relationship-building behaviour at formal gatherings such as conferences,
professional association meetings, and social activities associated with lectures and
presentations and similar gatherings
 Relationship-building behaviour within organizations such as service clubs, religious
groups and lodges that often bind members together with rituals for the purpose of
fellowship and, sometimes, creating systems of reciprocal preference for professional
opportunities or the sharing of confidential information
 Relationship-building at social occasions such as luncheons, dinner parties and golf
matches that provide circumstances for professional payoffs.
 Loose coalitions of organization representatives who meet on an ongoing basis to
exchange information and work towards unofficial, and sometimes official,

Means of Communication
1. Personal contacts: Personal contacts in an organization are maintained through
personal messenger, telephone, mobile phone SMS and Fax system. The alternative
mechanical aids in telecommunications have widened the scope for personal contacts both
within and outside the organization


2. Formal correspondence: This is maintained in the organization through a
system of files, memoranda, minutes etc. These devices facilitate the exchange of views and
knowledge on the matters on hand.
3. Forms: All administrative agencies use official forms in order to secure information from
their clients on the basis of information secured from the clients and administrators. The
usage of forms, standardize the administrative process and ensures equality of treatment to
citizens. However this is possible only when they are properly used.
4. Reports: Reports contain lot of information regarding the progress of work or of
completed work. The report should be brief and avoid unnecessary details.
5. Manuals: Most organizations prepare manuals for the use of their employees. They
provide information regarding the organization and guide the employees in their work
towards the organization objectives. However preparation of such manuals is expensive.
6. Staff Meeting: Staff meetings help the officials to know each other and exchange
information. They also build morale and secure coordination. Such meetings help the
employees to have an overall idea about the organization problems and prospects.

Communication and Technology

Advances in technology have increased the quality and quantity of communication in work
places. Six developments that illustrate the impact of technology on communication are : E-
Mail, InstantMessaging (IM), Social Networking site (SNS), Web logs (Blogs), Power Point
Presentations, Video conferences.

Essentials of Communication
(a) Clarity: Communication must be clearly and precisely stated. Clarity depends not only
on simplicity of language but also on the expression of the reason for the decision. Brief and
abrupt instructions given in most of our government departments are faulty and far from
clarity point of view.
(b) Consistency: Communication should be consistent with the expectations of the
recipients. It should ordinarily express what the recipient expects by virtue of his past
experience with the agency. Unexpected communication will not cause the expected
response in the recipients and hence must be avoided.
(c) Adequacy: The content in the communication should be adequate enough to stimulate
the desired response but at the same time not so much as to over-burden the recipients.
Administrative communication, however, is different from mass communications and it
needs to be based upon sound principles of human relationships.
(d) Timeliness: Communication should reach the recipient in time, neither too late nor
too early. The purpose of communication is to produce the desired administrative behavior
in the recipient and this cannot happen by providing him obsolete or advanced information.
(e) Uniformity: Communication must be uniform for all those who are expected to
behave in the same way. Discrimination in the nature or amount of communication causes
heart burning or jealousies. So, if management expects uniform behavior from its
employees, it must provide uniform stimulus.


(f) Flexibility: Uniformity should not bring about rigidity in the form or character of
communication. Since public administration involves human beings on both the sides of
communication- sender and receiver, local conditions may require variations in
administration. Sufficient discretion should be allowed to the local officials if people in
different areas have to be served according to their needs. Communication in administration
is meant to facilitate successful implementation of a program and it is not an end in itself.
(g) Acceptability: Good communication is one which is readily relied upon and
accepted to be true or factual. In an organization, communication is a technique of
conveying the decisions of management to the subordinates and vice-versa.
(h) Use of informal organization: Formal messages flow from superior to the
sub-ordinates but this channel is sometimes inadequate for handling all messages
expeditiously and with understanding. Therefore managers often approach subordinates to
manage urgency of the situations.

Barriers to Communication
(a) Semantic barriers: It refers to the barriers caused by failure to understand the
language of the communicator. Word differences are big hindrances to mutual
understanding. Faulty translation, badly expressed messages, un-clarified assumptions and
technical jargons fall in this category.
(b) Psychological barriers: Message is interpreted by the recipient depending
upon his psychological status. This is equally true for the person who sends the message
also. Some barriers of this category are: carelessness, lack of mutual trust etc.
(c) Ideological barriers: In words of Pfiffner Ideological barriers include
misunderstandings arising out of differences in background, education and differences in
social & political views. All these differences lead to differences in perception of a problem.
(d) Rigid rules and regulations: Communication through prescribed rules and
regulations can lead to delay and delay inevitably leads to distortion.
(e) Status relationships: Hierarchical system in the organization places people in
superior subordinate capacities. The greater the difference in the hierarchical positions, the
greater would be the possibility of communication breakdown.
(f) Attitudinal barriers: Conservative attitude of the superiors lead to withholding
the information, strict adherence to the proper channel, lack of confidence in the
subordinates and ignoring communication from them.
(g) Complexity of organization structure: The larger the organization,
the greater is difficulty in communication process. There is scope for delays and distortions.
(h) Resistance to change: Human beings by nature want to maintain their status
quo. When communication involves a change in the organizational functions seriously
affects the employees.

Importance of Communication
 Communication is required to establish and disseminate the goals of an enterprise.
 Smooth functioning of an enterprise totally depends upon effective communication system.


 Communication helps the administration in arriving at vital decisions.
 Communication also helps in planning and coordination.
 Communication is a tool of supervision.
 It is a basic tool for motivation and helps in increasing the morale of the employees.
 Communication is a means for judging maximum production at the lowest cost by
maintaining good human relations in the organization.

“In war, morale conditions make up three–quarters of the game, the relative
balance of manpower accounts for the remaining quarter”. – Napolean

Human resource is considered to be the most valuable asset of any organization. It is the sum of
inherent abilities, acquired knowledge and skills represented by the talents and aptitudes of the
employed persons who comprise of executives, supervisors, and employees. It may be noted
here that human resources should be utilized to the maximum possible extent in order to
achieve individual and organizational goals.
The attitudes, feelings and emotions of employees play a vital role to determine their
performance and behaviour. These in turn determine the success and growth of the
organization. It is for this reason that personnel experts as well as line managers now keen
attention to the issues of motivation and morale in industry.
Morale is a very widely used term. It generally refers to esprit de corps, a feeling of enthusiasm,
zeal, confidence in individuals or groups that they will be able to cope with the tasks assigned to
them. A person’s enthusiasm for his job reflects his attitude of mind to work, environment and
to his employer, and his willingness to strive for the goals set for him by the organization in
which he is employed. Morale is a synthesis of superiors, his organization, his fellow-employees,
his pay and so on. Feelings, emotions, sentiments, attitudes, and motives-all these combine and
lead to a particular type of behaviour on the part of an individual or his group; and this is what is
referred to as employee morale.

Different definitions of morale can be classified into three major approaches.
1) CLASSICAL APPROACH : Robert M. Guion defined morale as the extent to
which individual needs are satisfied and the extent to which an individual perceives that
satisfaction stemming from total job satisfaction. According to this approach, the
satisfaction of basic needs is the symbols of morale. If the basic needs of the employees are
satisfied their morale will be high.
2) PSYCHOLOGICAL APPROACH : In the words of Jucious and Slender,
“morale is a state of mind and emotions affecting willingness to work which in turn affects
individual and organisational objectives”. According to this approach, morale is a
psychological concept i.e., a state of mind. Emotions are affect the willingness to work which
in turn affect individual and organisational objectives. Accordingly the attitudes and


willingness to work is morale. Morale is a mental condition or attitude of individuals and
groups which determine their willingness to cooperate.
3) SOCIAL APPROACH : Morale is a social phenomenon which enables the men to
live in a society or group in pursuit of a common goal. According to Blackmanship, morale is
the feeling of togetherness. There is a sense of identification with and interest in the
elements of one’s job, working conditions, fellow employees, supervisor, employer and the

 Morale is not an absolute concept which can convey a specific meaning. Like the word
„health‟, the word „morale‟ by itself does not convey any favourable or unfavourable
meaning. Morale is an elusive thing. It is not easy to define, control or measure. But it
exercises a potent influence on the human relations climate in an organization. It has to be
qualified with a degree, as high morale or low morale. Thus, morale is the degree of
enthusiasm and willingness with which the members contribute their efforts towards the
organisational goals. If the enthusiasm and willingness to work of a group are high, we will
say the morale is high and vice versa. High morale is to be built and maintained by
continuous efforts.
 Morale is multi-dimensional in nature in the sense that it is a complex mixture of several
elements. It recognizes the influence of job situation on attitudes of individuals and also
includes the role of human needs as motivational forces.

Morale is a group concept with five components:
1) A feeling of togetherness, i.e., of belonging to a group and not being isolated
2) A clear goal which will be the target of production set before them
3) There must be an observed or perceived progress towards the attainment of the goal, i.e.,
expectation of success
4) Within the group each member feels that he has a meaningful task to perform and
5) A supportive or stimulating leadership

 Morale is a state of mind. It reflects mental health.
 It is the aggregate of attitudes, feelings, emotions, sentiments, etc.
 Morale is of two types.
o Individual morale-which means a persons attitudes towards life, and
o Group morale, which implies the collective attitudes of a group of persons
 Morale is a relative term. It may be high or low.
 Morale influences human behaviour and performance.
 Morale is a psychological feeling.
 Morale is intangible. It cannot be increased directly.
 Morale is a contagious phenomenon. Individuals transmit their attitudes to each other.




 Morale may be concerned with an individual. An individual‟s morale is related with knowing
one‟s own expectations and living up to them. If one is clear of one‟s own needs and how to
satisfy them, one‟s morale is high. Whereas an individual‟s morale is a single person‟s
attitude toward life, group morale reflects the general esprit de corps of a collective group of
personalities. Group morale is everyone‟s concern and it must be practiced continually, for it
is never ultimately achieved and is constantly changing.
 Group morale and the morale of the individual are interrelated but not necessarily identical.
They have an effect on each other. It is conceivable that an individual‟s own personal
perception of existing conditions as they relate to himself may be high, and the group‟
perception of conditions may be low, or vice versa, but more usually the two share common

 High morale / Good morale
High morale exists when the employee’s attitude is favourable to the total situation of a
group and to the attainment of its objectives. It is represented by the use of such terms like,
spirit, zest, enthusiasm, loyalty, honesty, dependability, resistance to frustration etc.
Possible effects of high morale: Higher performance; Better quality of work; Job satisfaction;
Cheaper goods and services; Lower cost; Higher profits; Better wages; Employment stability;
Low absenteeism; Low labour turnover; Employees’ initiative, regularity and punctuality;
Good discipline; Fewer industrial accidents; Stability and growth of the organization; Sound
industrial relation

 Low morale / Poor morale

Low morale exists when attitudes inhibit the willingness and ability of an organisation to
attain its objectives. If employees seem to be dissatisfied, irritated, cranky, critical, restless,
and pessimistic they are described as having poor or low morale.
Effects of low morale are: Apathy and non-involvement; Fatigue and monotony; High labour
turnover; Work stoppages; High rate of Absenteeism; Disciplinary problem; Restriction of
output; Increased grievances; Labour unrest; Strike; Wastage and spoilage;


1) THE ORGANISATION : If the goals set by the management are worthwhile,
useful and acceptable, then employees develop a positive feeling towards the job and the
organisation.The reputation of the company is another important factor worth
mentioning here. Persons working in a reputed organisation experience feelings of pride
and a spirit of loyalty.


2) OBJECTIVES OF THE ORGANISATION : Employees are highly
motivated and their morale is higher if their individual goals and objectives are in tune
with organisational goals and objectives.
3) ORGANISATIONAL DESIGN : Large organizations tend to lengthen their
channels of vertical communication and to increase the difficulty of upward
communication. Therefore the morale tends to be lower. Against this, a flat structure
increases the level of morale.
4) THE NATURE OF WORK : A meaningful and satisfying job helps to improve
employee morale.
5) WORK ENVIRONMENT : The building and its appearance, the condition of
machine tools available at work place, provisions for safety, medical aid and repair to
machinery, etc. have an impact on employees morale.
6) WORKING CONDITIONS : Physical work environment, job security, wages
and other allied factors exercise a significant influence on employee morale.
7) REWARDS : Employees expect adequate compensation for their services rendered
to the organisation.
8) LEADERSHIP : Competent, dependable and fair-minded leadership can build and
maintain high morale.
9) SUPERVISION : There should be an impartial, helpful, and capable team of
supervisors and managers and their sympathetic attitude towards their subordinates.
10) FELLOW EMPLOYEES : Man, being a social animal, finds his work more
satisfying if he feels that he has the acceptance and companionship of his fellows.
11) CONCEPT OF SELF : How employees perceive themselves influences their
attitudes to the organizational environment. For example, the morale of individuals who
lack self-confidence or who suffer from poor physical or mental health is generally low.
12) THE LEVEL OF SATISFACTION : The satisfaction which an individual
obtains in his job is largely the result of the extent to which different aspects of his work
situations are relevant to his job-related value systems-such as opportunity to learn a
job, steadiness of employment, supervision, pay, co-cooperativeness or otherwise of the
coemployees, working conditions, cleanliness, working hours, communication,
recognition; individual adjustment and group relationship outside the job.
13) FUTURE OPPORTUNITIES FOR REWARDS : If the employee looks
to the future and perceives opportunities for satisfaction and for attainment in the
rewards and conditions that lie ahead, morale will tend to be high.


1) THE EMPLOYEE’S AGE : But today‟s belief is that age and morale are
directly related and that, other things being equal, older employees seem to have higher
morale, because perhaps younger employees are more dissatisfied. They are a “new
breed” with higher expectations than their elders. Studies have reported that employers,
therefore, hire employees of somewhat higher age, for they perceive in them these
o stability that comes with maturity;
o a serious attitude towards job;
o more reliability, less absenteeism, and proven steady work habits;
o a sense of responsibility and loyalty and


o less tendency to be distracted by outside interests or influences.
2) EDUCATIONAL LEVEL : An inverse relationship has been found between
educational level and employee morale.
3) SEX : There is as yet no consistent evidence as to whether women are more satisfied
with their jobs than men, holding such factors as job and occupational level constant.
One might predict this case, considering the generally lower occupational aspirations of
4) MARITAL STATUS : The general impression is that married employees and
employees who have more dependents tend to be more dissatisfied with greater
responsibilities. But such employees may be more satisfied because they value their jobs
more than unmarried employees.
5) OCCUPATIONAL LEVEL : For example, executives are on the whole more
satisfied than managers; managers are more satisfied than subordinates; and so forth.
6) EXPERIENCE : Morale tends to increase with increasing years of experience. But
it may decrease after twenty years of experience particularly among people who have not
realized their job expectation.


One of the most unpredictable effects of the level of morale is its impact upon employees‟
productivity. There can be four combinations of morale and productivity.
1) High morale–High productivity : High morale reflects a predisposition to
be more productive if proper leadership is provided. This situation is likely to occur when
employees are motivated to achieve high performance standards through financial and non-
financial rewards.
2) High morale–Low productivity : The situation arises when employees
spend their time and energy in satisfying their personal objectives unrelated to the
company‟s goals. Faulty machinery, lack of training, ineffective supervision and restrictive
norms of informal groups can also lead to low productivity on the part of employees with
high morale.
3) Low morale–High productivity : Low morale cannot result in high
productivity for a long period. However, this situation can occur for a temporary period due


to fear of loss of job, exceptionally good supervision and machine paced work in which only a
part of employees‟ capabilities are used.
4) Low morale – Low productivity : This is a normal relationship. In the
long run low morale is likely to result in low productivity.

Though motivation and morale are closely related

concepts, they are different in following ways:

(a) While motivation is an internal-psychological drive of an individual which urges him to

behave in a specific manner, morale is more of a group scenario.
(b) Higher motivation often leads to higher morale of employees, but high morale does not
essentially result in greatly motivated employees as to have a positive attitude towards all
factors of work situation may not essentially force the employees to work more efficiently.
(c) While motivation is an individual concept, morale is a group concept. Thus, motivation takes
into consideration the individual differences among the employees, and morale of the
employees can be increased by taking those factors into consideration which influence group
scenario or total work settings.
(d) Motivation acquires primary concern in every organization, while morale is a secondary
phenomenon because high motivation essentially leads to higher productivity while high
morale may not necessarily lead to higher productivity.
(e) Things tied to morale are usually things that are just part of the work environment, and
things tied to motivation are tied to the performance of the individual.


Motivation may be defined as keenness for a particular behaviour or simply willingness to work
in order to achieve a predetermined reward or goal.
Motivation is a product of needs, drives or motives, which is basically the driving force within a
person. It is inner state that energizes, activates or directs behavior towards achieving a goal.
Motivation is a process that starts with physiclogical or psychogical deficiency or need that
activates a behaviour or a drive that is aimed at a goal or an incentive.

Therefore motivation lies in the meaning of interrelationship between

 Need : Created whenever there is a physiological or psychological imbalance e.g. when
the body is deprived of food
 Drive : it is a deficiency with direction – actions which provide an energizing thrust
towards reaching an incentive
 Incentive : anything that alleviates the need and reduces the drive, restores the
physiological or psychological balance



Model of motivation

 The need is created when there is a psychological or physiological imbalance in the person.
 A stimulus - e.g. Hunger ( physical) or desire for company (social/psychological) ……….give
rise to a response ( some kind of behaviour) ………which leads to an outcome….( either
satisfaction or frustration)

Schein’s classification of needs

Schein propounded a classification of managers’ assumption about people based on a review of
earlier approaches of motivation. His classification follows a broadly chronological pattern as
 Rational- Economic : According to Schein, this view places human beings into two
o The untrustworthy, money- motivated, calculative masses
o The trustworthy, more broadly motivated, moral elite whose task is to organizes and
control the masses
 Social model : Views people as predominantly motivated by social needs – the need for
personal relationship. This is drawn heavily on the conclusions of Hawthorne studies. The
implications for managers is that emphasis on attending to people’s needs over the task will
lead to greater productivity as well as higher morale.
 Self actualization model : Individual needs for self actualization is the prime motivator. The
implications to managers here is that people need challenge, responsibility and autonomy in
their work if they are to be motivated.
 Complex model : Presupposes that understanding people motivation is a complex business
in which interrelated factors are at work .




Content theories : These theories attempt to answer some of the following questions:
What needs do people want to satisfy? What are the factors that influence individual behaviour?
According to this perspective, people have needs that they wish to satisfy, which in turn direct
their behaviour towards satisfying these needs.

Process theories : In contrast to the content theories that attempt to identify people’s
needs, the focus in process theories is on how motivation actually occurs. The emphasis is on the
process of individual goal setting and the evaluation of satisfaction after the achievement of
Reinforcement theory : is a behaviourist approach with the basic premise that
behaviours followed by positive consequences will occur more frequently. Behaviours followed
by negative consequences will not occur as frequently.



The content theories

1900 – Scientific management theories (Fredrick Taylor which emphasized wages and
incentives as motivators
1940s – Hawthorne Studies (Elton Mayo) emphasizes working conditions and need for
affiliation as motivators

I. Maslow – hierarchy of needs

This is the earliest and most widely known theory of motivation, developed by Abraham Maslow
(1943) in the 1940s and 1950s.

This theory condenses needs into five basic categories. Maslow ordered these needs in his
hierarchy, beginning with the basic psychological needs and continuing through safety,
belonging and love, esteem and self-actualization. In his theory, the lowest unsatisfied need
becomes the dominant, or the most powerful and significant need. The most dominant need
activates an individual to act to fulfil it. Satisfied needs do not motivate. Individual pursues to
seek a higher need when lower needs are fulfilled.

Maslow's hierarchy of needs is often shown in the shape of a pyramid: basic needs at the bottom
and the most complex need (need for self-actualization) at the top. Maslow himself has never
drawn a pyramid to describe these levels of our needs; but the pyramid has become the most
known way to represent his hierarchy.



(i)Physiological needs (e.g. food, water, shelter, sleep)

It includes the most basic needs for humans to survive, such as air, water and food. Maslow
emphasized, our body and mind cannot function well if these requirements are not fulfilled.
These physiological needs are the most dominant of all needs. So if someone is missing
everything in his/her life, probably the major motivation would be to fulfil his/her physiological
needs rather than any others. A person who is lacking food, safety, love (also sex) and esteem,
would most probably hunger for food (and also for money, salary to buy food) than for anything
If all the needs are unsatisfied, and the organism is then overruled by the physiological needs, all
other needs may turn into the background. All capacities are put into the attendance of
satisfying hunger. Any other things are forgotten or got secondary importance.

(ii) Safety and security (secure source of income, a place

to live, health and well-being)
If the physiological needs are relatively well contented, new needs will appear, the so called
safety needs. Safety needs refer to a person’s desire for security or protection. Basically
everything looks less important than safety and protection (the physiological needs even
sometimes). The healthy and fortunate adults in our culture are largely satisfied in their safety
needs. The peaceful, sure, safety and unwavering society makes us feel in safety enough from
criminal assaults, murder, unbelievable natural catastrophes, and so on. In that case people no
longer have any safety needs as first-line motivators.
Meeting with safety needs demonstrated as a preference for insurance policies, saving accounts
or job security, etc., we think about the lack of economic safety. Children have a greater need to
feel safe. That is the reason why this level is more important for children.
Safety and security needs include: Personal security; Financial security; Health and well-being;
Safety mesh against accidents, illnesses and their adverse impacts.


To tell the truth, in real dangers and traumas – like war, murder, natural catastrophes, criminal
assault, etc. -, the needs for safety become an active, first-line and dominant mobilizer of human

(iii) Belongingness and love (integration into social

groups, feel part of a community or a group;
affectionate relationships)
If both the physiological and the safety needs are fulfilled, the affection, love and belongingness
needs come into prominence. Maslow claimed people need to belong and accepted among their
social groups. Group size does not mean anything: social groups can be large or small. People
need to love and be loved – both sexually and non-sexually – by others. Depending on the power
and pressure of the peer group, this need for belonging may overbear the physiological and
security needs.
Love needs involve giving and receiving affections (love is not synonymous with sex – sex is a
physiological need). When they are unsatisfied, a person will immediately eliminate the lack of
friends, peers and partner. Many people suffer from social nervousness, loneliness, social
isolation and also clinical depression because of the lack of this love or belongingness factor.

(iv) Esteem (respect for a person as a useful, honourable

human being)
In our society most people long for a stable and high valuation of themselves, for the esteem of
others and for self-respect or self-esteem.
Esteem means being valued, respected and appreciated by others. Humans need to feel to be
valued, such as being useful and necessary in the world. People with low self-esteem often need
respect from others. Maslow divided two types of esteem needs: a ‘lower’ version and a ‘higher’
version. The ‘lower’ version of esteem is the need for respect from others: for example attention,
prestige, status and loving their opinion. The ‘higher’ version is the need for self-respect: for
example, the person may need independence, and freedom or self-confidence.
The most stable and therefore the healthiest self-esteem is based on respect from others.
External fame or celebrity and unwarranted adulation won’t cause self-esteem, although you feel
better for a while.

(v) Self-actualization (individual’s desire to grow and

develop to his or her fullest potential)
‘What humans can be, they must be.’ (Maslow, 1954)
Self-actualization reflects an individual’s desire to grow and develop to his/her fullest potential.
People like opportunities, choosing his/her own versions, challenging positions or creative
tasks. Maslow described this level as the ‘need to accomplish everything that one can, to become
the most that one can be’. Maslow believed that people must overcome their other needs –
described above -, not only achieve them. At this level, individual differences are the largest.

As each level is adequately satisfied, we are then motivated to satisfy the next level in the
hierarchy, always new and higher needs are coming. This is what we mean, when the basic
human needs are drawn like a pyramid, a hierarchy. Life experiences, including divorce and loss


of job, may cause an individual to fluctuate between levels of the hierarchy. These five different
levels were further sub-categorised into two main groups: deficiency and growth needs.
Deficiency needs – The very basic needs for survival and security.
These needs include:
 physiological needs
 safety and security needs
 social needs – belongingness and love
 esteem needs
It may not cause a physical indication if these ‘deficiency needs’ are not fulfilled, but the
individual will feel anxious and tense. So the most basic level of needs must be fulfilled before a
person wants to focus on the secondary or higher level needs.
Growth needs – Personal growth and fulfilment of personal potential.
These needs include:
 self-actualisation needs
This hierarchy is not as rigid as we may have implied. For example, there are some humans for
whom self-esteem or self-actualization seems to be more important than love or belonging. The
popularity of this theory of motivation rooted in its simplicity and logic.

II. Alderfer – ERG theory: Existence needs, relatedness

needs and growth needs
Alderfer (Furnham, 2008) distinguished three steps or classes of needs: existence, relatedness
and growth. Maslow’s physiological and safety needs belong together to existence needs.
Relatedness can be harmonised to belongingness and esteem of others. Growth is the same as
Maslow’s self-esteem plus self-actualization. Both Maslow and Alderfer tried to describe how
these needs, these stages of needs become more or less important to individuals.
Existence needs: These include needs for basic material necessities. In short, it
includes an individual’s physiological and physical safety needs.
Relatedness needs: Individuals need significant relationships (be with family, peers
or superiors), love and belongingness, they strive toward reaching public fame and recognition.
This class of needs contain Maslow’s social needs and external component of esteem needs.
Growth needs: Need for self-development, personal growth and advancement form
together this class of need. This class of needs contain Maslow’s self-actualization needs and
intrinsic component of esteem needs.

Alderfer agreed with Maslow that unsatisfied needs motivate individuals. Alderfer also agreed
that individuals generally move up the hierarchy in satisfying their needs; that is, they satisfy
lower-order before higher-order needs. As lower-order needs are satisfied, they become less
important, but Alderfer also said: as higher-order needs are satisfied they become more
important. And it is also said that under some circumstances individuals might return to a lower


need. Alderfer thought that individuals multiply the efforts invested in a lower category need
when higher categorized needs are not consequent.

For example there is a student, who has excellent grades, friends, and high standard of living,
maybe also work at the university. What happens if this individual finds that he or she is
frustrated in attempts to get more autonomy and responsibility at the university, maybe also
more scholarship that generally encourage individuals’ growth? Frustration in satisfying a
higher (growth) need has resulted in a regression to a lower level of (relatedness) needs (‘I need
just my friends, some good wine, I do not want to go to the university anymore.’).
This event is known and called as the frustration-regression process. This is a more realistic
approach as it recognises that, because when a need is met, it does not mean it will always
remain met. ERG theory of motivation is very flexible: it explains needs as a range rather than as
a hierarchy. Implication of this theory: Managers must understand that an employee has various
needs that must be satisfied at the same time. ERG theory says, if the manager concentrates only
on one need at a time, he or she won’t be able to motivate the employee effectively and
efficiently. Prioritization and sequence of these three categories, classes can be different for each

III. McClelland – Need for achievement, affiliation and

In the early 1960s McClelland – built on Maslow’s work – described three human motivators.
McClelland claimed that humans acquire, learn their motivators over time that is the reason
why this theory is sometimes called the ‘Learned Needs Theory’. He affirms that we all have
three motivating drivers, and it does not depend on our gender or age. One of these drives or
needs will be dominant in our behaviour.
McClelland’s theory differs from Maslow’s and Alderfer’s, which focus on satisfying existing
needs rather than creating or developing needs. This dominant motivator depends on our
culture and life experiences, of course (but the three motivators are permanent). The three
motivators are:
 achievement: a need to accomplish and demonstrate competence or mastery
 affiliation: a need for love, belonging and relatedness
 power: a need for control over one’s own work or the work of others
These learned needs could lead to diversity and variety between employees. More precisely,
prioritization and importance of these motivational needs characterises a person’s behaviour. As
we wrote, although each person has all of these needs to some extent, only one of them tends to
motivate an individual at any given time.

Achievement motivation – a need to accomplish and demonstrate competence

or mastery. It pertains to a person’s need for significant success, mastering of skills, control or
high standards. It is associated with a range of actions. Individual seek achievement, attainment
of challenging (and also realistic) goals, and advancement in the school or job.
This need is influenced by internal drivers for action (intrinsic motivation), and the pressure
used by the prospects of others (extrinsic motivation). Low need for achievement could mean


that individuals want to minimise risk of failure, and for this reason people may choose very
easy or too difficult tasks, when they cannot avoid failure. In contrast, high need for
achievement means that humans try to choose optimal, sufficiently difficult tasks, because they
want to get the chance to reach their goals, but they have to work for it, they need to develop
Individuals with high need for achievement like to receive regular feedback on their progress
and achievements; and often like to work alone; seek challenges and like high degree of
Sources of high need for achievement can be: praise for success, goal setting skills, one’s own
competence and effort to achieve something, and it does not depend only on luck; of course
positive feelings and also independence in childhood. McClelland said that training, teaching
can increase an individual’s need for achievement. For this reason, some have argued that need
for achievement is not a need but a value.
Affiliation motivation – a need for love, belonging and relatedness
These people have a strong need for friendships and want to belong within a social group, need
to be liked and held in popular regard. They are team players, and they may be less effective in
leadership positions. High-need-for-affiliation persons have support from those with whom they
have regular contact and mostly are involved in warm interpersonal relationships. After or
during stressful situation individuals need much more affiliation. In these situations people
come together and find security in one another. There are times when individuals want to be
with others and at other times to be alone – affiliation motivation can become increased or
decreased. Individuals do not like high risk or uncertainty.
Authority/power motivation – a need to control over one’s own work or the
work of others. These persons are authority motivated. There is a strong need to lead and to
succeed in their ideas. It is also needed to increase personal status and prestige. This person
would like to control and influence others. McClelland studied male managers with high need
for power and high need for affiliation and found that managers with a high need for power
tended to run more productive departments in a sales organization than did managers with a
high need for affiliation.
It is important to speak about gender differences in need for power. It is said that men with high
need for power mostly have higher aggression, drink more, act in sexually exploitative manner,
and participate in competitive sports, and also political unrests. At the same time women with
higher need for power show more socially acceptable and responsible manner, are more
concerned and caring. These types of people prefer to work in big, multinational organisations,
businesses and other influential professions.
McClelland argues that strong need for achievement people can become the best leaders – as we
wrote it above. But at the same time there can be a tendency to request too much of their
employees, because they think that these people are also highly achievement-focused and
results-driven, as they are. Think about your teachers and professors! I am sure they all want the
best for you, they would like to develop you, but I do not think you feel the same every time.
McClelland said that most people have and show a combination of these characteristics.

IV. Herzberg – Two factor theory

It is also called motivation-hygiene theory.


This theory says that there are some factors (motivating factors) that cause job satisfaction, and
motivation and some other also separated factors (hygiene factors) cause dissatisfaction. That
means that these feelings are not opposite of each other, as it has always previously been
Opposite of satisfaction is not dissatisfaction, but rather, no satisfaction. According to Herzberg
(1987) the job satisfiers deal with the factors involved in doing the job, whereas the job
dissatisfiers deal with the factors which define the job context.

If the hygiene factors, for example salary, working conditions, work environment, safety and
security are unsuitable (low level) at the workplace, this can make individuals unhappy,
dissatisfied with their job. Motivating factors, on the other hand, can increase job satisfaction,
and motivation is based on an individual's need for personal growth. If these elements are
effective, then they can motivate an individual to achieve above-average performance and effort.
For example, having responsibility or achievement can cause satisfaction (human
characteristics) (Dartey-Baah, 2011).
Hygiene factors are needed to ensure that an employee is not dissatisfied. Motivation factors are
needed to ensure employee's satisfaction and to motivate an employee to higher performance.

Dissatisfaction – Low level

No dissatisfaction-High level Hygiene factors
No satisfaction – Low level
Satisfaction – High level Motivating factors

Herzberg’s five factors of job satisfaction (motivating factors):

 achievement
 recognition
 work itself
 responsibility
 advancement


Only these factors can motivate us. But at the same time we need the lack of dissatisfactions (we
need hygiene factors, "workpeace") to achieve more efficient work.

Herzberg’s five factors of job dissatisfaction (hygiene factors – deficiency needs):

• company policy and administration
 supervision
 salary
 interpersonal relationships
 working conditions
Can we motivate with money, with higher salary? What did Herzberg and Maslow say? Is it just
the same or something different?
Herzberg addressed salary not a motivator in the way that the primary motivators are, just like
achievement and recognition. Salary can be a motivator, if you get always higher and higher
salary, but we cannot say that it is an incentive. Maslow said, money or salary is needed to buy
food to eat, to have some place to live and sleep, etc. It can be a physiological need. Some
differences between Herzberg and Maslow theory are described in Table below :

Points of
view Maslow’s theory Herzberg’s theory
Date of the
theory in 1940’s in 1960’s
Study group ordinary American people well-situated American people
Every level of needs give us
satisfaction and give the
opportunity to move on to the Not every type of needs can give us
About needs next level of needs. satisfaction, just motivating factors.

Limitations of this theory:

• This theory oversees situational variables.
• Herzberg supposed a correlation, linear between productivity, performance and satisfaction.
• The theory’s reliability is uncertain.
• No comprehensive measure of satisfaction was used.
• The theory ignores blue-collar workers, only white-collar men’s opinion was discussed.

However, Herzberg tried to bring more humanity and caring into companies’ life. His intention
was not to develop a theory that is used as a 'motivational tool’, but to provide a guidance to
improve organizational performance.

Summary of Content Theories of Motivation

Maslow Alderfer McClelland Herzberg

Safety and security Existence
Belongingness and love Relatedness Need for Affiliation Hygiene
Self-esteem Growth Need for power Motivators


Self-actualization Need for achievement

There are some critics for all need theories. Although, there is a consensus for the general
concept: human behaviour is motivated by the strong wish for fulfilling a human need. Critics
(a) Universality: they do not care about gender, age, culture, religious or other factor
(b) Research support and methodology problems: these theories were not based on reliable and
creditable research results.
(c) Work focus: individuals have needs only at their workplaces, but not at any other places of
their life.
(d) Individual differences and stability over time.
(e) Process simplicity.

The Process theories

I. Skinner's reinforcement theory

The Reinforcement theory, based on Skinner's operant conditioning theory, says that behaviour
can be formed by its consequences (Gordon, 1987).
Positive reinforcements, for example praise, appreciation, a good mark/grade,
trophy, money, promotion or any other reward can increase the possibility of the rewarded
behaviours' repetition.
If a student gets positive verbal feedback and a good grade for his test, this reinforcement
encourages the performance of the behaviour to recur. If the teacher doesn’t tell precisely what
he expects, then the positive reinforcements can drive the behaviour closer to the preferred. For
example, when a student who is usually late to class gets positive feedback when he arrives on
time, the student becomes more and more punctual. Positive reinforcement motivates to get the
anticipated reinforcement of required behaviour.
We use negative reinforcement when we give a meal to a hungry person if he
behaves in a certain manner/way. In this case the meal is a negative reinforcement because it
eliminates the unpleasant state (hunger).
Contrary to positive and negative reinforcement, punishment can be undesired
reinforcement, or reinforce undesired behaviour. For example, if a student is always late to class
and thus he gets negative verbal feedback and also always has to tidy up the classroom at the
end of the day, in this case the undesirable behaviour is reinforced with an undesirable
reinforcer. The punishment declines the tendency to be late.
According to the theory, positive reinforcement is a much better motivational technique than
punishment because punishment:
 tries to stop undesirable behaviour and does not offer an alternative behaviour
 creates bad feelings, negative attitudes toward the activity, and the person who gives the
 suppresses behaviour, but does not permanently eliminate it.


Once certain behaviour has been conditioned through repetitive reinforcement, elimination of
the reinforcement will decline the motivation to perform that behaviour. Therefore it is better
not to give a reward every time. Reinforcement in the workplace usually takes place on a partial
or irregular reinforcement schedule, when reward is not given for every response.
The reinforcement theory is included in many other motivation theories. Reward must meet
someone's needs, expectations, must be applied equitably, and must be consistent. The desired
behaviour must be clear and realistic, but the issue remains: which reinforcements are suitable
and for which person?

II. Vroom's expectancy theory

The expectancy theory places an emphasis on the process and on the content of motivation as
well, and it integrates needs, equity and reinforcement theories.
Victor Vroom's (1964) expectancy theory aims to explain how people choose from the available
actions. Vroom defines motivation as a process that governs our choices among alternative
forms of voluntary behaviour. The basic rationale of this theory is that motivation stems from
the belief that decisions will have their desired outcomes.
The motivation to engage in an activity is determined by appraising three factors. These three
factors are the following:
 Expectancy – a person’s belief that more effort will result in success. If you work harder, it
will result in better performance.
In this case the question is: "Am I capable of making a good grade on a math test if I learn
more?" Appraisal of this factor is based on the effort to learn math, on knowledge of math,
on the previous experience of math test results, on self-efficacy and specific self-rated
 Instrumentality – the person’s belief that there is a connection between activity and goal. If
you perform well, you will get reward.
In this case the question is that: "Will I get the promised reward (a good mark) for
performing well on a math test?" Appraisal of this factor is based on the accuracy and
consistency of marking. If one day I get a good grade and another day I get a bad grade for
the same performance, then the motivation will decrease.
 Valence – the degree to which a person values the reward, the results of success.
In this case the question is that: "Do I value the reward that I get?" Appraisal of this factor is
based on the importance of its subject (math), the good mark, and the good performance in

Vroom supposes that expectancy, instrumentality and valence are multiplied together to
determine motivation. This means that if any of these is zero, then the motivation to do
something will be zero as well.



A person who doesn’t see the connection between effort and performance will have zero
expectancy. A person who can’t perceive the link between performance and reward will have
zero instrumentality. For a person who doesn’t value the anticipated outcome, reward will
have zero valence.
For example if I think:
- that no matter how hard I’m studying I can’t learn math due to lack of necessary skills or
- that no matter how good I perform on the test I don’t always get good mark so the
reward is unpredictable, not dependent on my success or
- the good mark from math is not important for me, and I’m not interested in math, so
the reward is not attractive, then I won’t be motivated to learn for the exam.

The expectancy theory highlights individual differences in motivation and contains three
useful factors for understanding and increasing motivation. This theory implies equity and
importance of consistent rewards as well (Konig & Steel 2006).

III. Adams' equity theory

The equity theory states that people are motivated if they are treated equitably, and receive what
they consider fair for their effort and costs.
The theory was suggested by Adams (1965) and is based on Social Exchange theory.

According to this theory, people compare their contribution to work, costs of their actions and
the benefits that will result to the contribution and benefits of the reference person. If people
perceive that the ratio of their inputs-outputs to the ratio of referent other's input-output is
inequitable, then they will be motivated to reduce the inequity.



At the workplace the workers put inputs into the job, such as education, experience, effort,
energy, and expect to get some outcomes such as salary, reward, promotion, verbal recognition,
and interesting and challenging work each in equal amounts.

The equity theory works not just in the workplace, but at school as well. For example, when for
the same oral exam performance two students get different marks, then inequity exists. In this


case, the student who gets the worse mark may lose his/her motivation to learn (reduce his/her
efforts), or persuade the teacher to give him/her a better mark, or change the perception of the
reference person's performance ("I did not know everything, but my classmate could answer all
the questions"). At the school it can demotivate students if someone who never studies or who
never performs better than the others always gets good mark. The greater the inequity the
greater the distress an individual feels, which will motivate the endeavour to make the outcomes
and the inputs equal compared to the reference person.
When inequity exists, a person might…
• reduce his/her inputs, efforts, quantity or quality of his/her work
• try to increase his/her outputs (ask for better mark, or pay raising)
• adjust his/her perception of reference person or his/her outcomes or inputs (re-evaluate
his/her or the reference person's effort or outcome)
• change the reference person
• quit the situation.
The problem with equity theory is that it does not take into account differences in individual
needs, values, and personalities. For example, one person may perceive a certain situation as
inequitable while another does not. Nevertheless ensuring equity is essential to motivation.

IV. Locke's goal-setting theory

Locke's (1990) goal setting theory is an integrative model of motivation just like the expectancy
It emphasizes that setting specific, challenging performance goals and the commitment to these
goals are key determinants of motivation. Goals describe a desired future, and these established
goals can drive the behaviour. Achieving the goals, the goal accomplishment further motivates
individuals to perform.
We can distinguish goals according to specificity, difficulty and acceptance. A specific goal can
be measured and lead to higher performance than a very general goal like “Try to do your best!”
A difficult, but realistic goal can be more motivational than easy or extremely difficult ones. The
acceptance of the goal is very important as well, therefore involvement in the goal setting is
For example, if I decide to pass a medium level language exam in German in six months – this
goal is specific and difficult enough – because I want to work in Germany – this goal is very
important for me, therefore the goal commitment is high – then I will be motivated to learn, and
to pass the exam.
The following guidelines have been useful in the goal-setting:
• Set challenging but attainable goals.
• Set specific and measurable goals.
• Goal commitment should be obtained.
• Support elements should be provided.
• Knowledge of results is essential
Goal-setting is a useful theory which can be applied in several fields, from sport to a wide range
of work settings. Sports psychology in particular has adopted its recommendations. The concept
of goal-setting has been incorporated into a number of incentive programmes and management
by objectives (MBO) techniques in a number of work areas. Feedback accompanying goal


attainment may also enhance a worker’s job performance and ability to become more innovative
and creative on the job through a trial-and-error learning process. Since goal-setting is a
relatively simple motivational strategy, it has become increasingly popular.

Contemporary Theories on Motivation

These are referred to as contemporary theories because these theories are able to more
appropriately explain the phenomenon of the motivation in the contemporary organizations.
There are eight theories in this regard.
1) ERG Theory
2) Cognitive Evaluation Theory
3) Job Design Theory
4) The Equity Theory
5) Goal Setting Theory
6) The Achievement Motivation Theory
7) Expectancy Theory of Motivation
8) Porter and Lawler’s Theory
Some of the theories have already been discussed earlier. Lets discuss others:

I. Cognitive Evaluation Theory

This theory has established the relationship between the extrinsic and intrinsic factors while
influencing the behaviour of the individual. The introduction of the extrinsic factors influences
the effect of intrinsic factors and weakens the intrinsic factor’s influence over the individual.
This explains the lack of motivation among the individuals in various organizations.
While this theory explains administrative behaviour in a pleasing manner but still it suffers from
some infirmities.
• Though it explains the extrinsic factor influencing the intrinsic factors, but it fails to explain
how the strength of the intrinsic factor can be maintained in the background of the
introduction of the extrinsic factors.


• This theory has been developed while conducting the studies with groups of students rather
than groups of employees. Thus, its findings are questionable.
• Some subsequent studies were undertaken and those studies revealed that this theory is not
applicable to explain the jobs which carry high intrinsic factors or certain type of jobs which
are higher in terms of job Content. A job where intrinsic factors are high, in such a scenario,
the extrinsic factors are not influence the intrinsic factors. This is particularly in the higher
levels of an organization.
• At the same time, the studies also found that job which in terms of content is low, for them
the extrinsic factors are motivational or extrinsic factors act as motivators. The cognitive
evaluation theory is more relevant to explain the jobs where the job in terms of job content is
more intermediate. Thus, his theory is more relevant at the intermediate levels of an

II. Job Design Theory

It says that an individual’s motivation to work largely arises out of certain psychological
antecedents of the individual which in fact define individual’s motivation or lack of motivation.
This theory maintains that every job carries certain characteristics and these characteristics are
responsible for development of psychological feelings. These psychological feelings form the
cognitive antecedents defining the individual’s motivation or lack of motivation.
• Skill Variety- It refers to the extent to which the job requires multiple skills or a single skill.
If the job requires multiple skills, it is high on skill variety and if the job requires single skill,
it is low on skill variety.
• Task Identity- It refers to the extent to which the job is related to the completion of the
whole of the work or the job is related to complete work or the extent to which the job is
related to an identifiable piece of work or a part of the larger identity. If it is related to whole
of the work, it is high on task identity and if it is related to a part of the work, it is low on task
• Task Significance- It refers to the extent to which the job influences/impacts the
performance of other jobs or the extent to which the other jobs are dependent on this job. If
other jobs are dependent on this job, the job is high on task significance and if other jobs are
not dependent on this job, the job is low on task significance.
• Autonomy- It refers to the extent to which the job allows freedom in defining the job. If the
job allows freedom, it is high on autonomy and if the job does not allow freedom, it is low on
• Feedback- It refers to the extent to which the information is available about the performance
of the job. If the information is available, the job is high on feedback and if the information is
not available, the job is low on feedback.
This theory says that these characteristics in a job are responsible for the feeling of
meaningfulness in an individual.

III. Porter and Lawler’s Theory

Porter and Lawler (Lyman W Porter and Edward E Lawler) used Victor Vroom’s Expectancy
Theory as a foundation to develop their expectancy model. Similar to Vroom’s theory Porter and
Lawler concluded that an individual’s motivation to complete a task is affected by the reward
they expect to receive for completing the task. However Porter and Lawler introduced additional
aspects to the expectancy theory as they felt that Vroom's theory was too simple.


The diagram below illustrates the two types of motivation rewards under Porter & Lawler's
Expectancy Theory

Intrinsic And Extrinsic Rewards

Porter and Lawler categorised the reward as intrinsic and extrinsic
• Intrinsic rewards are the positive feelings that the individual experiences from completing
the task e.g. satisfaction, sense of achievement.
• Extrinsic rewards are rewards emanating from outside the individual such as bonus,
commission and pay increases.
Porter and Lawler's Expectancy Theory Model suggested that an individual's view regarding the
attractiveness and fairness of the rewards will affect motivation.

Ability And Perception

Porter and Lawler said that motivation is also affected by
• the individual’s ability to perform the task and
• their perception of the task

Post Job Completion Reward

 Once the individual has completed the task their motivation will drop if the intrinsic and
extrinisic reward received does not match their expectations of the reward they has expected
to receive.


Contributions of some of the famous thinkers, writers and scholars :

 Phillip Selznick: according to him, the functions of organizational leadership

includes the following:


(a) The definition of institutional mission and role, that is, setting organizational goals and
formulating policies.
(b) The institutional embodiment of purpose that is, helping the meaning of policy to
percolate down to lower levels of the organisation.
(c) The defence of institutional integrity that is maintaining the core values and distinctive
identity of the organizational.
(d) The ordering of internal conflict that is, maintaining balance of power among competing
interests in the organisation.

 Hicks and Gullet: They identified the following eight functions of a leader;
(a) Supplying organizational objectives to the members
(b) Arbitrating on disagreements among organizational members.
(c) Catalyzing to arouse the subordinate to action
(d) Suggesting ideas to subordinates.
(e) Inspiring subordinates to work effectively towards accomplishment of organizational
(f) Praising subordinates to satisfy their recognition and esteem needs.
(g) Providing security to followers when they face problems
(h) Representing the organisations before others and serving as a symbol of the organisation

 Chester Barnard: He states that a leader performs the following four functions:
(a) Determination of objectives
(b) Manipulation of means
(c) Control of the instrumentality of action, and
(d) Simulation of coordinated action

 M. P. Follet : according to her, a leader should perform the following three main
(a) Co ordinations
(b) Definition of purpose
(c) Anticipation

 Peter Drucker : he mentioned the following functions of leadership:

(a) lifting of man’s vision to higher sights.
(b) raising of man’s performance to higher standards
(c) building of man’s personality beyond its normal limitations

 F. E. Fiedler: he identified the following two functions of leadership

(a) Directing group activities
(b) coordinating group activities

 Pfiffner and Sherwood: Accounting to them, a leader is the modifier of

organizational behaviour. They commended: Get the right man in the leadership job, and all
your problems will be solved.



Theoretical Approaches To Administrative

For decades, leadership theories have been the source of numerous studies. In reality as well as
in practice, many have tried to define what allows authentic leaders to stand apart from the
mass! Hence, there as many theories on leadership as there are philosophers, researchers and
professors that have studied and ultimately published their leadership theory.
Theories are commonly categorized by which aspect is believed to define the leader the most.
The most widespread one's are:

I. Great Man Theory (1840s)

The Great Man theory evolved around the mid 19th century. Even though no one was able to
identify with any scientific certainty, which human characteristic or combination of, were
responsible for identifying great leaders. Everyone recognized that just as the name suggests;
only a man could have the characteristic (s) of a great leader.
The Great Man theory assumes that the traits of leadership are intrinsic. That simply means that
great leaders are born... The Great Man theory assumes that the traits of leadership are intrinsic.
That simply means that great leaders are born...
In 1860, Herbert Spencer, an English philosopher disputed the great man theory by affirming
that these heroes are simply the product of their times and their actions the results of social
This is a traditional theory of leadership and the rest are modern theories.
II. Trait Theory (1930's - 1940's)
The trait leadership theory believes that people are either born or are made with certain
qualities that will make them excel in leadership roles. That is, certain qualities such as
intelligence, sense of responsibility, creativity and other values puts anyone in the shoes of a
good leader. In fact, Gordon Allport, an American psychologist,"...identified almost 18,000
English personality-relevant terms".
The trait theory of leadership focused on analyzing mental, physical and social characteristic in
order to gain more understanding of what is the characteristic or the combination of
characteristics that are common among leaders.
There were many shortfalls with the trait leadership theory. However, from a psychology of
personalities approach, Gordon Allport's studies are among the first ones and have brought, for
the study of leadership, the behavioural approach.
 In the 1930s the field of Psychometrics was in its early years.
 Personality traits measurement weren't reliable across studies.
 Study samples were of low level managers
 Explanations weren't offered as to the relation between each characteristic and its impact on
 The context of the leader wasn't considered.


Many studies have analyzed the traits among existing leaders in the hope of uncovering those
responsible for ones leadership abilities! In vain, the only characteristics that were identified
among these individuals were those that were slightly taller and slightly more intelligent!

III. Behavioural Theories (1940's - 1950's)

In reaction to the trait leadership theory, the behavioural theories are offering a new
perspective, one that focuses on the behaviours of the leaders as opposed to their mental,
physical or social characteristics. Thus, with the evolutions in psychometrics, notably the factor
analysis, researchers were able to measure the cause an effects relationship of specific human
behaviours from leaders. From this point forward anyone with the right conditioning could have
access to the once before elite club of naturally gifted leaders. In other words, leaders are made
not born.
The behavioural theories first divided leaders in two categories. Those that were concerned with
the tasks and those concerned with the people. Throughout the literature these are referred to as
different names, but the essence are identical.
Associated Theories
• The Managerial Grid Model / Leadership Grid
• Role Theory

IV. Contingency Theories (1960's)

The Contingency Leadership theory argues that there is no single way of leading and that every
leadership style should be based on certain situations, which signifies that there are certain
people who perform at the maximum level in certain places; but at minimal performance when
taken out of their element.
To a certain extent contingency leadership theories are an extension of the trait theory, in the
sense that human traits are related to the situation in which the leaders exercise their
leadership. It is generally accepted within the contingency theories that leader are more likely to
express their leadership when they feel that their followers will be responsive.
Associated Theories
• Fiedler's contingency theory
• Hersey-Blanchard Situational Leadership Theory
• Path-goal theory
• Vroom-Yetton-Jago decision-making model of leadership
• Cognitive Resource Theory
• Strategic Contingencies Theory

V. Transactional leadership Theories (1970's)

Transactional theories, also known as exchange theories of leadership, are characterized by a
transaction made between the leader and the followers. In fact, the theory values a positive and
mutually beneficial relationship.
For the transactional theories to be effective and as a result have motivational value, the leader
must find a means to align to adequately reward (or punish) his follower, for performing leader-
assigned task. In other words, transactional leaders are most efficient when they develop a


mutual reinforcing environment, for which the individual and the organizational goals are in
The transactional theorists state that humans in general are seeking to maximize pleasurable
experiences and to diminish un-pleasurable experiences. Thus, we are more likely to associate
ourselves with individuals that add to our strengths.
Associated Theories
• Leader-member Exchange (LMX)

VI. Transformational Leadership Theories (1970s)

The Transformational Leadership theory states that this process is by which a person interacts
with others and is able to create a solid relationship that results in a high percentage of trust,
that will later result in an increase of motivation, both intrinsic and extrinsic, in both leaders
and followers.
The essence of transformational theories is that leaders transform their followers through their
inspirational nature and charismatic personalities. Rules and regulations are flexible, guided by
group norms. These attributes provide a sense of belonging for the followers as they can easily
identify with the leader and its purpose.
Associated Theories
• Burns Transformational Leadership Theory
• Bass Transformational Leadership Theory
• Kouzes and Posner's Leadership Participation Inventory




The earliest form of organization was the family and over the period of time other forms of
organizations also came up. The industrial revolution ushered in the era of mass production of
goods. Machines replaced men and factories became centre’s of production ushering in an era of
big organizations.
The term organization is viewed differently by different authors depending upon the emphasis
the author would like to lay upon.
 Morstein Marx defines organization as structure developed for carrying out the tasks
entrusted to the chief executive and his administrative subordinates in the government. The
emphasis is in this definition is on structure.
 J.D. Mooney on the other hand, defines organization as the form of human association for
the attainment of common purpose. The family, the mahila mandals, the youth welfare
associations, etc., can be cited as examples. In this particular definition, the author lays
stress upon the cooperative Endeavour of human beings.
 According to L.D. White, organization is the arrangement of personnel for facilitating the
accomplishment of some concrete purpose through the allocation of functions and
responsibilities. The working of a public transport system can be cited as an example. The
maintenance staff are entrusted with the responsibility of the upkeep of the vehicles. The
movement of vehicles is the sole responsibility of the running crew and the support services
are provided by the auxiliary staff consisting of the clerical; stores, personnel, finance, etc. It
would be evident that different units are assigned specific responsibilities and are held
accountable for the purpose of specific task.
 Gladden defines organization as the pattern of relationship between persons in an enterprise
so arranged as to fulfill the enterprise's function. The functioning of an organization depends
upon the formulation of policy, preparation of plans in accordance with the policy and their
implementation. In an organization the top management is responsible for policy
formulation, the middle management for programming and planning and the rank and file
for implementation. The principle of hierarchy ensures that the rank and file is accountable
to middle management and middle management is accountable to the top management.
Thus the superior subordinate relationship made possible through hierarchy ensures the
tasks are assigned and responsibilities are fixed for different levels that facilitates the
smooth achievement of goals.

Different types of organizations

1) Small or Big : Based on the number of people working in an organization, they are classified
as small or big. A school, with a single teacher, can be cited as an example of a small
organization. On the other hand, the Indian Railways which employs over twenty lakhs of
personnel is a good example of a large organization.


2) Simple or Complex : Based upon the nature of relationship, organizations are also
categorized as simple or complex. The family, where the nature of relationship is direct and
the activities are few is good example of a simple organization. On the other hand, the
defense ministry, which is responsible for safeguarding the sovereign interest of the nation,
renders a wide spectrum of services traversing land, sea and air covering different sectors
both public and private is a good example of a complex organization.

3) Formal and Informal : Organizations are also classified as formal and informal based upon
the significance attached to the structure or the human side of the enterprise.

4) According to the different practices of distributing authority and responsibility among he

members of the enterprise, several types of organization structure have been evolved. They



(i) Line organization : This is the simplest and the earliest form of organization.
It is also known as "Military", "traditional", "Scalar" or "Hierarchical" form of
organization. The line organization represents the structure in a direct vertical
relationship through which authority flows. Under this, the line of authority flows
vertically downward from top to bottom throughout the organization. The quantum of
authority is highest at the top and reduces at each successive level down the hierarchy.

(ii) Line and Staff organization and Auxiliary Agencies : In

line and staff organization, the line authority remains the same as it does in the line
organization. Authority flows from top to bottom. The main difference is that specialists
are attached to line managers to advise them on important matters. These specialists
stand ready with their specialty to serve line mangers as and when their services are
called for, to collect information and to give help which will enable the line officials to
carry out their activities better. The staff officers do not have any power of command in
the organization as they are employed to provide expert advice to the line officers. The
combination of line organization with this expert staff constitutes the type of
organization known as line and staff organization. The 'line' maintains discipline and
stability; the 'staff' provides expert information. The authority by which the staff
performs these functions is delegated by the line and the performance must be
acceptable to the line before action is taken. According to Willoughby and White, these
services may not be called ‘staff because they do not render any advice or assist in the
sense in which ‘staff units do. They render certain services of house-keeping nature to
the departments. Auxiliary agencies are the agencies which serve the line agencies rather
than the public. They perform functions common to all the departments.

(iii)Functional organization : The difficulty of the line organization in securing

suitable chief executive was overcome by F. W. Taylor who formulated the Functional
type of organization. As the name implies, the whole task of management and direction
of subordinates should be divided according to the type of work involved. As far as the
workman was concerned, instead of coming in contact with the management at one point
only, he was to receive his daily orders and help directly from eight different bosses; four
of these were located in the planning room and four in the shop.

(iv) Committee organization : Committee organisation as a method of

managerial control has very little practical importance, because it is managed by a senior
member of the committee only. But the committee organisations are widely used for the
purpose of discharging advisory functions of the management. Committees are usually
relatively formal bodies with a definite structure. They have their own organisation. To
them are entrusted definite responsibility and authority.
According to Hicks, "A committee is a group of people who meet by plan to discuss or
make a decision for a particular subject."
A committee may formulate plans, make policy decisions or review the performance of
certain units. In some cases, it may only have the power to make recommendations to a
designated official. Whatever may be the scope of their activities, committees have come
to be recognized as an important instrument in the modern business as well as non
business organizations.


4 basis of Organization as per Luther Gullick :
 By the purpose the workers are serving, such as furnishing water, providing education,
or controlling crime. Gulick lists these in his organizational tables as vertical
 By the process the workers are using, such as engineering, doctoring, lawyering, or
statistics. Gulick lists these in his organizational tables as horizontal organizations.
 By the clientele or material: the persons or things being dealt with, such as immigrants,
veterans, forests, mines, or parks in government; or such as a department store's
furniture department, clothing department, hardware department, or shoe department
in the private sector.
 By the place where the workers do their work.
Gulick stresses how these modes of organization often cross, forming interrelated structures.
Organizations like schools may include workers and professionals not in the field of education
such as nurses. How they are combined or carefully aggregated into a school — or a school
system — is of concern.

Organizational Theory

Definition : The Organizational Theory refers to the set of interrelated concepts,

definitions that explain the behavior of individuals or groups or subgroups, who interacts with
each other to perform the activities intended towards the accomplishment of a common goal.
In other words, the organizational theory studies the effect of social relationships between the
individuals within the organization along with their actions on the organization as a whole. Also,
it studies the effects of internal and external business environment such as political, legal,
cultural, etc. on the organization.
The term organization refers to the group of individuals who come together to perform a set of
tasks with the intent to accomplish the common objectives. The organization is based on the
concept of synergy, which means, a group can do more work than an individual working alone.
Thus, in order to study the relationships between the individuals working together and their
overall effect on the performance of the organization is well explained through the
organizational theories. Some important organizational theories are:

I. Classical Organisation Theory :

The classical writers viewed organisation as a machine and human beings as components of that
machine. They were of the view that efficiency of the organisation can be increased by making
human beings efficient. Their emphasis was on specialisation and co-ordination of activities.
Most of the writers gave emphasis on efficiency at the top level and few at lower levels of
organisation. That is why this theory has given streams; scientific management and
administrative management. The scientific management group was mainly concerned with the
tasks to be performed at operative levels.
Henry Fayol studied for the first time the principles and functions of management. Some
authors like Gullick, Oliver Sheldon, Urwick viewed the problem where identification of


activities is necessary for achieving organisation goals. Grouping or departmentation was also
considered essential for making the functions effective. Since this theory revolves around
structure it is also called ‘structural theory of organisation.”

II. Neo-Classical Organisation Theory:

The classical theory of organisation focussed main attention on physiological and mechanical
variables of organisational functioning. The testing of these variables did not show positive
results. The Hawthorne Studies conducted by George Elton Mayo and associates discovered that
real cause of human behaviour was somewhat more than mere physiological variables. These
studies focussed attention on human beings in the organisation.
New-classical approach is contained in two points:
(i) Organisational situation should be viewed in social, economic and technical terms, and
(ii) the social process of group behaviour can be understood in terms of clinical method
analogous to the doctor’s diagnosis of human organism.
This theory views formal and informal forms of organisation as important. The behavioural
approach followed in this theory is the other contribution of new-classical thinkers. The pillars
of classical theory viz. division of work, departmentation, co-ordination and human behaviour
were taken as given but these postulates were regarded as modified by people acting
independently or within the context of the informal organisation.
The main propositions of neo-classical theory are given as follows:
 The organisation in general is a social system composed of numerous interacting parts.
 Informal organisations exist within the formal organisation. Both are affected by and affect
each other.
 Human being is independent and his behaviour can be predicted in terms of social factors at
 Motivation is a complex process. Many socio- psychological factors operate to motivate
human beings at work.
 A conflict between organisational and individual goals often exists. There is a need to
reconcile the goals of the individual with those of the organisation.
 Team-work is essential for higher productivity.
 Man’s approach is not always rational. Often, he behaves non- logically in terms of rewards
which he seeks from his work.
 Communication is necessary as it carries information for the functioning of the organisation
and the feelings of the people at work.

III. Modern Organisation Theory:

Modern organisation theory is of recent origin, having developed in early 1960’s. This theory has
tried to overcome the drawbacks of earlier theories. In the words of W.G. Scott, ‘The distinctive
qualities of modern organisation theory are its conceptual analytical base, its reliance on
empirical research data and, above all, its integrating nature. These qualities are framed in a
philosophy which accepts the premise that the only meaningful way to study organisation is to
study it as a system.” This theory may be understood in two approaches: systems approach and
contingency approach.


1) Systems Approach:
This approach studies the organisation in its totality. The mutually dependent variables are
properly analysed. Both internal and external variables are studied in analysing the nature of
organisation. Though this theory passes a much higher conceptual level as compared to earlier
theories but different writers have given varied views of the system.
Organisation as a system can well be understood by identifying various sub-systems within it.
Each sub-system may be identified by certain processes, roles, structures and norms of conduct.
Seiler has classified four components in an organisation, human inputs, technological inputs,
organisational inputs, and social structure and norms.
Katz and Kahu have identified five sub-systems of organisation:
(i) Technical sub-system concerned with the work that gets done;
(ii) Supportive sub-system of procurement, disposal and institutional relations;
(iii)Maintenance of sub-systems for tying people into their functional roles;
(iv)Adaptive sub-systems concerned with organisational change; and
(v) Managerial sub-systems for direction, adjudication and control of the many sub-systems
and the activities of the structure.

2) Contingency Approach:
Even though systems approach presents a better understanding of organisational and
managerial functioning but it does not provide solution for all types of organisational structures.
Systems approach offers models which may not suit every type of organisation. A structure
suitable for one unit may not be suitable for another. Contingency approach suggests an
organisational design which suits a particular unit. A structure will be suitable only if it is tailor
made for an enterprise.
The influence of both internal and external factors should be considered while framing a
suitable organisational structure. This approach suggests that needs, requirements, situations of
a particular concern should be considered while designing an organisational structure.
The factors which influence an organisation may be described as:
(i) Environment
(ii) Technology
(iii) Size of operations
(iv) People.

An organizational structure plays a vital role in the success of any enterprise. Thus, the
organizational theories help in identifying the suitable structure for an organization, efficient
enough to deal with the specific problems.

Organizational Structures in
Public Administration


In government and public agencies, the organizational structure establishes the responsibilities,
power and control assigned to each member of an organization. It also dictates relationships
between employees who provide direct services, management and directors, which sets the tone
for how work is conducted and goals are achieved. A generally strict assignment of roles is
important for those working in the public sector so that individuals can accomplish short- and
long-term projects and aid their organizations in overcoming complex obstacles, enabling each
to better serve the public.

1. Vertical Structure
The most prevalent organizational structure used by government agencies is the vertical
structure. Similar to a hierarchical structure, it is characterized by having several directors at the
top who are responsible for making decisions that define policies, public programs and
operational procedures; these top level directors report to elected or appointed political
leadership. The next level down is made up of middle managers who establish plans for
accomplishing goals set out by top level administrators. The subsequent level of positions are
the greatest in number and work to carry out assigned tasks. An example of this structure can be
found in government agencies such as the military, where the chain of command is clearly
defined and individuals within the structure focus on their specific roles and responsibilities
allowing them to perform duties efficiently and proficiently in accordance with established rules
and standards.

2. Horizontal Structure
A horizontal structure embodies few people at the top with the majority of positions being of
equal standing. Most of the individuals within this structure are peers working with one another
as opposed to answering to someone higher up on the hierarchical ladder and supervising
someone lower on the ladder. While this structure is most common in organizations such as law
firms and medical practices where professionals have equal standing, there are instances when it
applies to government agencies as well. For example, departments in smaller jurisdictions
working with limited budgets and staff may utilize this structure, as it makes communication
easier and allows efficient work together, building upon each other’s strengths and shared
responsibilities and tasks. In addition, employees in smaller public organizations enjoy more
direct decision making authority and greater autonomy to demonstrate their skills as public
service employees.

3. Matrix Structure
The matrix organizational structure utilizes at minimum a dual chain of command, in which an
employee answers to two or more managers from separate departments. Most commonly in
government, an employee from a different functional discipline is assigned to a project while
retaining their original position within the civic service organization. Matrix teams are created
within government agencies and similar organizations to tackle complex problems because they
bring together specialized employees who offer expertise and experience from other
departments or agencies to address specific issues. The goal is to bring the right people and
resources together to collaborate with each other and solve problems more intelligently and
efficiently. These structures also establish relationships between agencies and foster better
communication, visibility and organizational oversight.
Another benefit of the matrix structure is that it empowers and motivates employees to be
proactive and creates new leadership roles, opportunities to expand and develop skills and


capabilities outside of their initially hired position description. Challenges associated with this
type of organizational structure include increased complexity and reporting to multiple
supervisors. This requires clear and consistent communication and cooperation between
managers and employees so that responsibilities, work priorities and performance standards are

4. Divisional Structure
Functions and responsibilities are separated based on job specialty, service or geography in the
divisional structure. Each division is fully autonomous with the resources and capabilities for
handling their operations with very little input or assistance needed from other departments or
agencies. Divisional structures that are separated according to regions can be seen in the court
system and government agencies like police departments. These are divided and assigned to
specific jurisdictions according to where they are and function on their own while running
parallel to other departments. Divisional structures work in conjunction with other
organizational structures.
Organizational structures represent more than the way an agency is set up. These structures
establish rules and responsibilities for the most efficient routes for attaining organizational
objectives. While variations of these structures are used in different areas of the public sector,
administrators need to be familiar with the various ways organizations are structured, and how
specific organizations have changed over time, so that they can be most effective within their
own organization.


Exercising powers vested by virtue of Article 77, the President has made the “The Government of
India (Allocation of Business) Rules”. The Rules stipulate that the business of the Government
of India shall be transacted in the Ministries, Departments, Secretariats and Offices.
The Rules provide that all business allotted to a Department shall be disposed of by, or under
general or special directions of, the Minister-in-charge, subject to certain limitations where
consultation is required with other departments or where cases have to be submitted to the
Prime Minister, the Cabinet and its Committees or the President. These Rules also provide for
the constitution of the Standing Committees of the Cabinet and each Standing Committee shall
consist of such Ministers as the Prime Minister may, from time to time, specify.
The Rules also provide for appointment of ad hoc Committees of Ministers for investigating and
reporting to the Cabinet, and, if so authorized, for taking decisions on such matters. The Rules
also stipulate that it shall be the responsibility of the Departmental Secretary, who shall be the
administrative head thereof, to ensure observance of these Rules in the Department.

Ministry Department
Ministry is a political entity Department is a technical entity



Ministry is non permanent Departments are permanent

Ministry may or may not have departments Department is always under a Minister or full
under it ministry

Ministry is more prone to public criticism for Department is protected against public
non achievement of goals criticism as civil servants are not answerable to
public but to political heads

Ministerial appointments are usually political Departmental appointments are based on

merit and capability

Ministry usually enjoy higher status Department is subordinate to ministry

Ministry is a staff organization Department is a line Organisation

Main function of ministry is to co-ordinate Main function of department is to achieve

control and direct bureaucracy specific goals set for them

Ministry is closer to the seat of power like Department is not

Prime Minister or president

Structure of the Ministries/Departments

I. Political level :
The Minister, the Minister of State, the Deputy Minister and the Parliamentary Secretary are the
political officers who are in-charge of a ministry. They come to occupy their position on the
strength of their place in the party and board and not by virtue of any expertise or technical
qualifications. Broadly speaking the functions of Minister In-charge of a Department are of four
 The Minister initiates the broad policies which the department has to follow and decides all
the important policy questions which may arise in the functioning of the department.
 The Minister exercises general supervision over the implementation of the policy by the
 The Minister bears the responsibility for the policies and the administration of his
Department before the Parliament. He answers in Parliament the questions relating to his
Department. He has to pilot the legislation and to represent his department before the
Parliament as well as the people.
 One of the most important functions of the Minister is to represent his Ministry in the
Cabinet. He has to keep in mind the principle of joint responsibility of the Cabinet and
ensure co-ordination of his policies with those of other ministries.
The Ministers of State, the Deputy Ministers and the Parliamentary Secretaries share such of the
duties of the Cabinet Minister, as he may assign to them. Usually the responsibility of some
specific work is allotted to a Minister of State while the Deputy Ministers and the Parliamentary
Secretaries provide general assistance to the Minister in-charge.


II. The Secretariat level :
Immediately below the political head, there is the Secretariat organisation of the Department.
The function of the Secretariat is to provide to the Minister, mature and expert advice for the
formulation of policies and watch over the execution of these policies when they have been
formulated. The Secretariat may be called the brain centre of the administrative body directing
and controlling the administrative activities. The head of the Secretariat organisation of a
department is called the Secretary. For the convenient transaction of business the Department is
further sub-divided into convenient units as mentioned below:

Department Secretary

Wing Additional Secretary/Joint Secretary

Division Deputy Secretary

Branch Under Secretary

Section Section Officer

Under the Secretariat there are a network of agencies which are responsible for the execution of
the government policies. With the steady expansion in, and increasing complexity of, the
governmental functions, the executive agencies have been variously organised to suit the
requirements of the job.
1. An attached office (e.g., The Indian Council of Agricultural Research, New Delhi)
2. Subordinate office (e.g., Inspectorate of Explosives, Nagpur)
3. Departmental undertaking (e.g., Ordinance ~factories)
4. A company registered under the companies Act (e.g., Hindustan Steel Limited)
5. A Corporation or Board set up under a special statute (e.g., ONGC, Tea Board, etc.)
6. A society registered under the Societies Registration Act (e.g., Institute of Foreign Trade)

III. The Executive level

The Secretariat, as we have seen, is responsible for discharging the policy making functions of
the Government. Below the secretariat there is, in most of the departments, the executive
organisation with a head of its own known as the Head of the Department. The Head of the
Secretariat Organisation i.e. Secretary is not technically speaking the Head of the Secretariat
Organisation.The Secretary is the Chief Advisor to the Government in the formulation of
policies. Primarily his duties are in the nature of ‘staff ’ rather than ‘line’ work. The executive
organisation is the ‘line’ machinery of the department/ministry and is also often termed (rather
confusingly) as a department with its own head who is officially styled as the Head of the
Department. Such executive head is designated differently in different departments. Usually he
is called Director or Director General but there are also designations such as Inspector General,
Advisor, Commissioner, etc.



Board, Council, Committee,

Commission and Tribunal

The terms Board, Council, Committee, Commission & Tribunal are all legal terminologies and
are formed as per requirements. Sometimes they co-exist in the same organization. They are not
mutually exclusive. In case of Government bodies, the relevant act that regulates that specific
Government body empowers the formation of such groups. In such cases, the act specifically
mentions the type of group that will be formed according to the requirements of that body.

Based on the distribution of authority, there are two main systems namely Bureau System and
the Board or Commission system within departments. When all the administrative authority is
invested in a single individual within the department then the system is Bureau.
When a plural body is vested with all the administrative power then the system is known as
Board or Commission.
Conditions that determine the choice of systems:

 If the department is to carry out work of administrative character, the Bureau system is
more appropriate. He further explains that for the administrative functions the speedy
decision making, unity of command and promptness is required for efficient performance
and it can be achieved only when the responsibilities and power are invested in a single
 When the nature of work is such that a lot of discretion and care is to be maintained with
respect to information which affects a large number of people, like the drafting of policies,
rules and regulations, the Board or Commission kind of system works best. Also, when an
organization has to perform both kinds of functions, then in such cases as well, the Board
systems works better. To sum up, for services and functions that require collective
intelligence, holistic view points, mature decision making, a Board system works well as
there are more members to arrive at balanced decisions.

 Board - Board is a group of people who have all the powers to decide and control the
working of a body. They are usually at the apex of the organization. In other cases, every
artificial legal body has a board at its apex where owners and managers are different. For e.g.
Companies, LLP, etc. The members of board are appointed by the real owners of the
organization. There may or may not be a fixed terms for the members.
E.g. Board of Control for Cricket in India (BCCI), State Electricity Board, Central Board of
Secondary Education (CBSE), The Securities & Exchange Board of India (SEBI) etc.
 Council - Council is a body, generally large in size than other types of groups mentioned
here. The members of council are elected by the members. They act as representatives of the
people. Thus, elections are conducted for forming the council. Councils are formed when
there is a large body of people who have come together for a purpose. For e.g. Universities,
Colleges, Trade Associations, etc. The members of council are elected for a fixed term.


E.g. All India Council of Technical Education (ACTE), Municipal Councils, Project Export
Promotion Council of India (PEPC), etc.
 Committee - Committees are subgroups of the original body. They are formed for a
specific purpose. The most common example of forming committees would be organizing
events. When we organize event, the group formed specifically for the event is called
committee. These committees are also further subdivided into various other sub-committee.
The members of committees are generally selected on merit or some other criteria. Many
times committee is formed by volunteers. The members of committee are appointed for
period until they serve their purpose.
E.g. Parliamentary Committee, Kelkar Committee (2002), Swaminathan Committee (2004),
 Commission - A Commission is quite similar to Committees except for the fact that
Commissions are formed by Government bodies or Statutory bodies. For e.g. when any
Government Ministry wants to research on a specific issue, it forms a commission. The
members of commission are either selected or nominated by the interested groups.
Commissions can be permanent or temporary depending upon the purpose of such
commission. The members of commission are appointed for a fixed term.
E.g. Election Commission (EC), University Grants Commission (UGC), etc.
 Tribunal - Tribunal is very different from all the above types of groups. The members of
tribunal are current or retired judges. Sometimes, people having relevant experience and
knowledge in the field are also appointed. The Tribunals are adjudicating authority.
Together they decide over various matters involving disputes. Usually, it is one rank below
the High Courts. The members of Tribunal are appointed for a fixed term.
E.g. Income Tax Appellate Tribunal (ITAT), National Companies Law Tribunal (NCLT),
Customs Excise and Service Tax Appellate Tribunal (CESTAT), etc.

Ad-hoc bodies and advisory


 Ad-hoc bodies are organizations formed on functional lines usually to address policy
formulation, review or implementation issues. They are non-routine bodies with generally a
complex task in hand.
These bodies are characterized by flexibility in operation, knowledge pooling and innovative
solutions. The ease to form work and dismantle is the chief attraction of ad-hoc bodies.
Moreover, generally constituted by experts who are in touch with ground reality, ad-hoc
bodies could be vital tool of participative decision making in an increasingly elitist turning
If we try to evaluate the performance & utility of ad-hoc bodies in Indian parlance, then we
observe that they are not only actively sought but also more often than not provide
innovative, amicable & forward looking solutions.


Taking the example of parliament, two broad category of ad-hoc committees could be seen,
the one constituted by the house to report on specific subjects like environment, security etc
and select or joint committees to report on a particular bill. Thus they save a huge amount of
parliamentary time by delegating detailed analysis of bills and issues, as well as maintain the
quality of reporting by expert opinions and suggestions. These committees generally take a
positive stand and do not shy away from criticizing regressive policies. Though their
recommendations may not find adequate support from the government, more often than not
they become the rallying points for government criticism by opposition, press and trade
Thus ad-hoc bodies are indeed a vital organization to address urgent and complex issues of
major organizations and government.
 Advisory bodies are created in regard to various functional areas as and when executive is of
the opinion that a deliberation and thorough analysis by specialists shall be useful before
pursuing implementation of policy in a given issue/area. These advisory bodies may be
created by the Cabinet Secy,Prime Minister's Office or any other appropriate levels as
seemed fit by the executive.
Types of Advisory bodies :
 Technical advisory bodies
 Editorial advisory bodies
 Scientific advisory bodies
 Business advisory bodies

Headquarters-field relationship

Headquarters means the apex organization of an enterprise wherein policy is deveopled and
review undertaken. In the Union and State Governments, the Secretariats of respective
Governments are the headquarters organization. This is also termed as ‘top-management’. For
coordination, control and communication, there are State Directorates, District offices and
Block offices, which serve as field offices for top management but headquarters for the field
agencies operating under them. This is called ‘middle-management’. Thus, headquarters and
field offices are relative terms. The offices providing concrete services directly to the people at
the lowest level are actual field offices. A field office may be merely an outpost of the
headquarters with no authority, or it may be an agency with adequate authority and
responsibility delegated to it.
Fields offices creation basis :
 Geographical basis like districts, blocks….
 Functional basis like development, technical….
 Mixed basis : A mix of both territorial and functional systems is adopted in India.
Ex : The Deputy Commissioner is a district officer, who ensures area coordination from the
district’s perspective. However, all the field agencies which are created on specialization
have their own channels of communication and control. It is not possible for the area
administrator to coordinate the field agencies from technical angle.
Factors responsible for the growth of field offices :


 Social : Social communication is very important in many programmes like anganwadi,
ASHA,ICDS etc. Here close contact between government and people is essential.
 Economic : Field offices can be setup to generate economic change and development.
Ex ; ATM, Bank branches, Cooperative societies.
 Administrative : For the purpose of efficiency and convenience.
 Political : Political decisions based on political considerations lead.

Failed relationship & way to correct it

At present, the multiplication of field agencies in India has resulted into its mushroom growth,
without effective control and communication. Even the basic purpose of their creation, ie;
providing services efficiently, economically and irresponsiveness has not been fulfilled. Why has
such deterioration occurred in the field administration? Why does a huge headquarters
organization fail to check inefficiency and irresponsiveness among field agencies? The answer to
these questions is , unsuitable field structure and need for rationalization. The model based on
the following premises would strengthen the middle level organization, which would
automatically reduce the need and scope of headquarters-field relationship:
 There should not be any distinction between the urban and rural field agencies, as it creates
unnecessary and illogical dichotomy between rural and urban development, as well as
duplicates the administrative structure. At present, isolated autonomous urban local bodies
and rural institutions cannot afford the services of competent people, and are being
managed by persons without adequate technical and administrative capability.
 There should not be any distinction among the components of the scheme- Union
government, State government, Local government, etc. All resources may be put together
and may be reflected in accounts and not in the scheme.
 The headquarter organization needs to be reduced in size and strength, ie; it may consist of
higher level specialists and institutional services, or auxiliary agencies to support field
agencies, through policy guidelines, based on quality research and auxiliary support.
 Field agencies have to be strengthened by appointing competent people from every sector of
development. This would be met in the present scheme by transferring unproductive
specialists and general bureaucracy, from the Secretariat and Directorates to the field
agencies, thus reducing the infrastructure to the minimum at the headquarters.
 Clear definition of roles and responsibilities – start from the governance principles and go
down to practical things. In common projects, make clear what is the local team supposed to
deliver and how the head office will support. Clear definition of roles and responsibilities –
start from the governance principles and go down to practical things. In common projects,
make clear what is the local team supposed to deliver and how the head office will support.

Methods of Communication, Coordination and Control

between Headquarters and Field Agencies
Regardless of the degree to which operations are deconcentrated geographically, the
headquarter has to maintain continuous supervision over such operations. There are a number
of methods by which the headquarters can exercise control over the field offices. Some of these
are inherent in the powers vested in the top administration at headquarters, eg;


 Prior approval of the programmes to be implemented
 Allocation of financial resources
 Appointment and transfer of personnel from one agency to another
 Lying down rules and regulations etc
In doing these, the following methods are used :
 System of reporting
 Field observation and inspection
 Periodic meetings of the Field Administrators

regulatory authority
A regulatory agency (also regulatory authority, regulatory body or regulator) is a public
authority or government agency responsible for exercising autonomous authority over some
area of human activity in a regulatory or supervisory capacity. An independent regulatory
agency is a regulatory agency that is independent from other branches or arms of the
Regulatory authorities are commonly set up to enforce safety and standards, and/or to protect
consumers in markets where there is a lack of effective competition or the potential for the
undue exercise of market power. Examples of regulatory agencies that enforce standards include
the Food and Drug Administration in the United States and the Medicines and Healthcare
Products Regulatory Agency in the United Kingdom; and, in the case of economic regulation, the
Office of Gas and Electricity Markets and the Telecom Regulatory Authority in India.

1 RBI- Reserve Bank Of India Banking And Finance MUMBAI
Monetary Policy

2 SEBI - Securities and Exchange Board of Securities ( Stock) & MUMBAI

India Capital Market

3 IRDAI- Insurance Regulatory and Insurance HYDERABAD

devolopment Authority

4 PERDA- Pension Fund Regulatory and Pension NEW DELHI

Devolopment Authority

5 NABARD- National Bank For Financing Rural MUMBAI

Agriculture and Rural Devolopment Devolopment

6 SIBDI- Small Industries Devolopment Financing Micro Small LUCKNOW

Bank Of India and Medium-Scale



7 NHB - National Housing Bank Financing Housing NEW DELHI

8 CBFC - Central Board Of Film Film/TV Certification MUMBAI

Certification & Censorship

9 FIPB- Foreign Investment Promotion Foreign Direct NEW DELHI

Board Invesment

10 FSDC- Financial Stability and Financial Sector NEW DELHI

Devolopment Council Devolopment

11 FSSAI- Food Safety and Standards Food NEW DELHI

Authority Of india

12 BIS - Bureau Of India Standards And NEW DELHI


13 ASCI - Advertising Standards Council Of Advertising MUMBAI


14 BCCI - Board Of Control For Cricket In Cricket MUMBAI


15 AMET - Assosiation Of Mutual Funds Mutual Funds MUMBAI

16 EEPC - Engineering Export Promotional Trade and Investment KOLKATA

Council Of India

17 EICI - Express Industry Council Of India Trade MUMBAI

18 FIEO - Federation Of Indian Export Export MUMBAI


19 INSA - Indian National Ship Owners Shipping MUMBAI


20 ICC - Indian Chemical Council Manufacturing MUMBAI

21 ISSDA - Indian Stainless Steal Growth And HARYANA

Devolopment Assosiation Devolopment

22 MAIT - Manufacturers Assosiation For IT NEW DELHI

Information Technology

23 NASSCOM -National Assosiation Of IT MUMBAI

Software and Service Companies

24 OPPI -Organisation Of Plastic Manufacturing MUMBAI

Processors Of India



25 PEPC - Projects Exports Promotion Trade MUMBAI

Council Of India

26 TEMA - Telecom Equipment Telecom NEW DELHI

Manufacturer Assosiation Of India

27 TRAI- Telecom Regulatory Authority Of Telecommunication & NEW DELHI

India Tariffs

Public-private partnership

A public-private partnership, or P3, is a contract between a governmental body and a private

entity, with the goal of providing some public benefit, either an asset or a service. Public-private
partnerships typically are long-term and involve large corporations on the private side. A key
element of these contracts is that the private party must take on a significant portion of the risk
because the contractually specified remuneration—how much the private party receives for its
participation—typically depends on performance.

Public-Private Partnership Benefits :

 They provide better infrastructure solutions than an initiative that is wholly public or wholly
private. Each participant does what it does best.
 They result in faster project completions and reduced delays on infrastructure projects by
including time-to-completion as a measure of performance and therefore of profit.
 A public-private partnership's return on investment, or ROI, might be greater than projects
with traditional, all-private or all-government fulfillment. Innovative design and financing
approaches become available when the two entities work together.
 Risks are fully appraised early on to determine project feasibility. In this sense, the private
partner can serve as a check against unrealistic government promises or expectations.
 The operational and project execution risks are transferred from the government to the
private participant, which usually has more experience in cost containment.
 Public-private partnerships may include early completion bonuses that further increase
efficiency. They can sometimes reduce change order costs as well.
 By increasing the efficiency of the government's investment, it allows government funds to
be redirected to other important socioeconomic areas.
 The greater efficiency of P3s reduces government budgets and budget deficits.
 High-quality standards are better obtained and maintained throughout the life cycle of the
 Public-private partnerships that reduce costs potentially can lead to lower taxes.


Public-Private Partnership Disadvantages :
 Every public-private partnership involves risks for the private participant, who reasonably
expects to be compensated for accepting those risks. This can increase government costs.
 When there are only a limited number of private entities that have the capability to complete
a project, such as with the development of a jet fighter, the limited number of private
participants that are big enough to take these tasks on might limit the competitiveness
required for cost-effective partnering.
 Profits of the projects can vary depending on the assumed risk, the level of competition, and
the complexity and scope of the project.
 If the expertise in the partnership lies heavily on the private side, the government is at an
inherent disadvantage. For example, it might be unable to accurately assess the proposed




Administrative Accountability
According to Leonard D. White accountability is `the sum total of constitutional, statutory,
administrative and judicial rules and precedents and the established practices by means of
which public officials may be held accountable for their official actions'. It refers to the formal
and specific location of responsibility vested in a person. While responsibility has a personal
and moral connotations and is not necessarily related to formal status and power.
Accountability is also defined as the answerability of a person in organization.

Meaning of Control
Accountability is a kind of management Control. Control is the process of ensuring that actual
activities conform to established standards and laid done procedures. Control helps managers to
monitor the effectiveness of managers

Figure shows the basic control process. This process is essential to accountability. As shown in
figure before control process is initiated standard and methods are established against which
performance is measured. Then it is measured or assessed if the performance matches the laid
down standard. If it matches then it is satisfactory performance. But if it does not match
corrective actions are taken. Now, this is a general process of control and accountability. These
general steps can be adapted to any work situation.



Accountability Mechanisms

I. Legislature

 Legislative Control: The major instrument of public accountability is

the authority of the
legislature to empower, limit, investigate and censure the executive branch. The legislature
enacts Laws, authorizes administrators to engage in quasi-legislative and quasi-judicial
activities, appropriates funds for all administrative programmes, and determines the general
outlines of administrative organization and procedure.
 Questions:- The first hour of every day sitting of legislature is known as the question-
hour. This time is allotted for asking and answering questions. Every legislators, after
giving due notice, are entitled to put questions and supplementary questions to the
ministers about the state of public administration. The ministers are bound to answer these
questions. The purpose of questions is to elicit information on the working of
administrative departments.
 Resolutions and Motions:- Resolutions and motions are of two kinds i.e. first
ly, those
whose object is to censure a particular minister or government as a whole, secondly those,
which recommend some course of action to be adopted. The former leads to dismissal of
the government or ministry. The later is recommendatory, hence it may or may not be
accepted by the government. Members of parliament are entitled to pass resolutions on
matter of general public interest.
 Debates and Discussions:- Debates or discussions in the House constitute
important means for controlling the executive. Houses perpetually go on debating one
thing or other. Discussions, take place over every point of a bill or budget. Every motion
comes under discussion in the house. The inaugural address of the President, the budget
speech, introduction of bill for amendment, introduction of new law, or introduction of
motion or resolution provide opportunity for debates and discussions.
 Committees of Legislature:- Legislatures are unwieldy bodies and can not
meet for the whole of year. Hence, they appoint committees of their own members, who are
specialists in their sphere of activity and keep constant watch over administration. Public
Accounts Committee, Committee on Subordinate legislation, petitions Committee,
Committee on Public Service. These committees gather a lot of material, hear expert
evidences and frame conclusions. Such conclusions, which are formed in the form of
recommendations, which correct the tone of administration, by improving efficiency and
quality of work civil service responds immediately to the recommendations of such
committees, because they know that their opinions are of experts and backed by the full
 Sunshine laws − Requirement that meetings and decisions are made in public



II. Executive control

 Policy-Making:- The chief executive along with his cabinet, control the
through policy-making. All important policy-decisions are taken by the cabinet in every
country. The departments carry on their day to day business, within the policies laid down
by cabinet.
 Budgetary System: It is the main responsibility of the
chief executive to prepare budget
and to present it to the legislature. After the approval by legislature, the chief executive
implements it through the allocation of funds among various departments, and controls it
by proper utilization of funds.
 Recruitment
system:- The third system of executive control works through recruitments
of public personnel. This is usually placed in the hands of an independent recruiting agency
like Public Service Commission.

III. Judicial Control

 Judiciary is one of the important external agency, which exercises control over
administration. Byjudicial control means the power of courts to keep the decisions and
acts, of administrative officials withinthe bounds of law. L.D. White explains the
importance of judicial control and says, "The system of formalexternal control officials
and their acts which fall primarily into two divisions that exercised by thelegislative
bodies and that imposed by the courts.
 The main purpose of judicial control is to determine the constitutionality and legality
ofadministrative acts of public administrators, and thus to protect the rights and liberty
of citizens from thewrongful acts of government officials.
 There are two systems of legal remedies against the unlawful acts of government
officials. One iscalled the Rule of law and the other Administrative law or Driot

 Monitoring by interest groups/client groups : Interest groups
typically pay close attention to the implementation and outcomes of public policies.
Often have their own information on outcomes that they distribute. Will often monitor
administrative decisions (e.g., issuance of environmental permits)
 Monitoring by the professional community : Professional
associations will often monitor the actions of its members and could intervene in
executives decision-making processes or testify before legislatures


 Freedom of information laws : Includes access to meetings, minutes of
meetings, and formal documents pertaining to administration operations. Example
would be the information pertaining to a permit decision. Some information may be held
confidential if it pertains to national security or patents
 Media : Countless examples of how the media monitors executives decision-making
processes as well as the implementation and outcomes of programs.


 Administrative process:- In a parliamentary system, cabinet stands at the

apex of the executive. Prime minister directs the ministers; who are in-charge of their
respective department and are responsible for the efficient working to the cabinet and
prime minister. The whole working of the departments are reviewed by the Prime
Minister and his Cabinet.
 Hierarchical order:- Every administrative department is arranged on scalar
pattern and executives are organized in hierarchical order. The executives are linked
with superior-subordinate-relationship with clear authority and responsibility. They are
accountable to their respective superiors for their actions and dealings. Thus hierarchy
itself a powerful instrument for monitoring subordinates behavior and for enforcing
 Annual confidential Reports:-The superior officers prepare annual
confidential reports (ACRs) of their subordinates every year. The work of whole year of
each public servant is assessed.
 Budgetary control:- A budget is not only a complete policy statement of the
total activities of the government but it also reflects the aspiration of the people. The
Ministry of Finance prepares budget, and operations of the budgetary sanctions and
 Administrative leadership:- It is another means of internal control.
Leadership motivates, and inspires the employees for efficiency. Thus the morale and
motivation of employees depends upon the leadership. The effective leader set examples
of high standards of integrity and performance for his followers. He inspires them for
work and instills in them a pride in work. A good leader is objective oriented and always
tries his subordinates to achieve that objective.


 Professional standards : Various professions (e.g., law, medicine,

accounting, engineering, etc.) have standards and ethical guidelines that its members
must follow or could lose their certifications
 Ethical codes and values : Must adhere to society’s ethical standards and
moral values
 Whistle-blowers : When employees encounter mismanagement or wrong
doing within their organization. While the proper bureaucratic response is to confront



the problem within the organization. However, there are times when the high-level
officials are part of the problem and the only way to address this wrongdoing is to
publicize it outside the agency (e.g., go to the press)


BUT A HABIT “ ------------------------Aristotle


Administrative law is the bye-product of the growing socio-economic functions of the State and
the increased powers of the government. Administrative law has become very necessary in the
developed society, the relationship of the administrative authorities and the people have become
very complex. In order to regulate these complex, relations, some law is necessary, which may
bring about regularity certainty and may check at the same time the misuse of powers vested in
the administration. With the growth of the society, its complexity increased and thereby
presenting new challenges to the administration we can have the appraisal of the same only
when we make a comparative study of the duties of the administration in the ancient times with
that of the modern times. In the ancient society the functions of the state were very few the
prominent among them being protection from foreign invasion, levying of Taxes and
maintenance of internal peace & order. It does not mean, however that there was no
administrative law before 20th century. In fact administration itself is concomitant of organized
Administration. In India itself, administrative law can be traced to the well-organized
administration under the Mauryas and Guptas, several centuries before the Christ, following
through the administrative, system of Mughals to the administration under the East India
Company, the precursor of the modern administrative system. But in the modern society, the
functions of the state are manifold, In fact, the modern state is regarded as the custodian of
social welfare and consequently, there is not a single field of activity which is free from direct or
indirect interference by the state. Along with duties, and powers the state has to shoulder new
responsibilities. The growth in the range of responsibilities of the state thus ushered in an
administrative age and an era of Administrative law.
The development of Administrative law is an inevitable necessity of the modern times; a study of
administrative law acquaints us with those rules according to which the administration is to be


carried on. Administrative Law has been characterized as the most outstanding legal
development of the 20th-century. Today in India, the Administrative process has grown so
much that it will not be out of place to say that today we are not governed but administered.
Administrative Law is that branch of the law, which is concerned, with the composition of
powers, duties, rights and liabilities of the various organs of the Government.
The Constitution of India is having significant effect on laws including administrative law. It is
under this fundamental laws are made and executed, all governmental authorities and the
validity of their functioning adjudged. No legislature can make a law and no governmental
agency can act, contrary to the constitution no act, executive, legislative, judicial or
quasijudicial, of any administrative agency can stand if contrary to the constitution.
In India, in the Watershed one can include the whole control mechanism provided in the
constitution for the control of the administrative authorities that is article 32, 226,136,300 and

The Indian Institution of Law has defined Administrative Law in the
following words;

“ Administrative Law deals with the structure, powers and functions of organs
of administration, the method and procedures followed by them in exercising
their powers and functions, the method by which they are controlled and the
remedies which are available to a person against them when his rights are
infringed by their operation.”


1. The administrative law has growing importance and interest and the administrative law is
the most outstanding phenomena in the welfare state of today. Knowledge of administrative
law is as important for the officials responsible for carrying on administration as for the
students of law.
2. Administrative law is not codified like the Indian Penal code or the law of Contracts. It is
based on the constitution. No doubt the Court of Law oversees and ensure that the law of the
land is enforced. However, the “very factor of a rapid development and complexity which
gave rise to regulation made specific and complete treatment by legislation impossible and,
instead, made necessary the choice of the body of officers who could keep abreast of the
novelties and intricacies which the problems presented.”
3. Administrative law is essentially Judge made law. It is a branch of public law as compared to
private law-relations inter-se. Administrative law is an ever-expanding subject in developing
society and is bound to grow in size as well as quality in coming the decades. We need an
efficient regulatory system, which ensures adequate protection of the people’s Rights.


4. Principles of administrative law emerge and development whenever any person becomes
victim of arbitrary exercise of public power. Therefore administrative law deals with
relationship individual with power.
5. The administrative agencies derive their authority from constitutional law and statutory law.
The laws made by such agencies in exercise of the powers conferred on them also regulate
their action. The principle features are: (a) transfer of power by legislature to administrative
authorities, (b) exercise of power by such agencies, and (c) judicial review of administrative
6. Administrative law relates to individual rights as well as public needs and ensures
transparent, open and honest governance, which is more people-friendly.
7. Inadequacy of the traditional Court to respond to new challenges has led to the growth of
administrative adjudicatory process. The traditional administration of justice is technical,
expensive and dilatory and is not keeping pace with the dynamics of everincreasing subject
matter. Because of limitation of time, the technical nature of legislation, the need for
flexibility, experimentations and quick action resulted in the inevitable growth of
administrative legislative process.
8. Administrative law deals with the organization and powers of administrative and powers
quasi-administrative agencies
9. Administrative law primarily concerns with official action and the procedure by which the
official action is reached.
10. Administrative law includes the control mechanism (judicial review) by which
administrative authorities are kept within bounds and made effective.

1. The advantage of the administrative process is that it could evolve new techniques, processes
and instrumentalities, acquire expertise and specialization, to meet and handle new complex
problems of modern society.
2. Administration has become a highly complicated job needing a good deal of technical
knowledge, expertise and know-how.
3. Continuous experimentation and adjustment of detail has become an essential requisite of
modern administration. If a certain rule is found to be unsuitable in practice, a new rule
incorporating the lessons learned from experience has to be supplied. The Administration
can change an unsuitable rule without much delay.
4. Even if it is dealing with a problem case by case (as does a court), it could change its
approach according to the exigency of the situation and the demands of justice. Such a
flexibility of approach is not possible in the case of the legislative or the judicial process.
5. Administration has assumed such an extensive, sprawling and varied character, that it is not
now easy to define the term “ administration” or to evolve a general norm to identify an
administrative body. It does not suffice to say that an administrative body is one, which
administers, for the administration does not only put the law into effect, but does much
more; it legislates and adjudicates. At times, administration is explained in a negative


manner by saying that what does not fall within the purview of the legislature or the
judiciary is administration.
In such a context, a study of administrative law becomes of great significance. The increase in
administrative functions has created a vast new complex of relations between the administration
and the citizen. The modern administration impinges more and more on the individual; it has
assumed a tremendous capacity to affect the rights and liberties of the people. There is not a
moment of a person’s existence when he is not in contact with the administration in one-way or
the other.
It has increasingly become important to control the administration, consistent with the
efficiency, in such a way that it does not interfere with impunity with the rights of the individual.
Between individual liberty and government, there is an age-old conflict the need for constantly
adjusting the relationship between the government and the governed so that a proper balance
may be evolved between private interest and public interest. it is the demand of prudence that
when sweeping powers are conferred on administrative organs, effective control- mechanism be
also evolved so as ensure that the officers do not use their powers in an undue manner or for an
unwarranted purpose. It is the task of administrative law to ensure that the governmental
functions are exercised according to law, on proper legal principles and according to rules of
reason and justice fairness to the individual concerned is also a value to be achieved along with
efficient administration
A democracy will be no better than a mere façade if the rights of the people are infringed with
impunity without proper redressed mechanism. This makes the study of administrative law
important in every country. For India, however, it is of special significance because of the
proclaimed objectives of the Indian polity to build up a socialistic pattern of society. This has
generated administrative process, and hence administrative law, on a large scale.
Administration in India is bound to multiply further and at a quick pace. If exercised properly,
the vast powers of the administration may lead to the welfare state; but, if abused, they may lead
to administrative despotism and a totalitarian state A careful and systematic study and
development of administrative law becomes a desideratum as administrative law is an
instrument of control of the exercise of administrative powers.

Sources of Administrative Law

There are four principal sources of administrative law in India:-
• Constitution of India
• Acts and Statutes
• Ordinances, Administrative directions, notifications and Circulars
• Judicial decisions


The concept of the rule of Law is of old origin. Edward Coke is said to be the originator of this
concept, when he said that the King must be under God and Law and thus vindicated the


supremacy of law over the pretensions of the executives. Prof. A.V. Dicey later developed on this
concept in the course of his lectures at the Oxford University. Dicey was an individualist; he
wrote about the concept of the Rule of law at the end of the golden Victorian era of laissez-faire
in England. That was the reason why Dicey’s concept of the Rule of law contemplated the
absence of wide powers in the hands of government officials. According to him, wherever there
is discretion there is room for arbitrariness. Further he attributed three meanings to Rule of
1. The First meaning of the Rule of Law is that ‘no man is punishable or can lawfully be made
to suffer in body or goods except for a distinct breach of law established in the ordinary legal
manner before the ordinary courts of the land. (The view of Dicey, quoted by Garner in his
Book on ‘Administrative Law’.)
2. The Second Meaning of the Rule of Law is that no man is above law. Every man whatever be
his rank or condition. is subject to the ordinary law of the realm and amenable to the
jurisdiction of the ordinary tribunals (Ibid).
3. The Third meaning of the rule of law is that the general principle of the constitution are the
result of judicial decisions determining the rights of private persons in particular cases
brought before the court. (View of Dicey, quoted by Garner in his book on Administrative
Law, p.11.)


 Dicey has opposed the system of providing the discretionary power to the administration. In
his opinion providing the discretionary power means creating the room for arbitrariness,
which may create as serious threat to individual freedom.
 According to Dicey the rule of law requires that every person should be subject to the
ordinary courts of the country. Dicey has claimed that there is no separate law and separate
court for the trial of the Government servants in England. He critcised the system of droit
administratif prevailing in France. In France there are two types of courts Administrative
Court and Ordinary Civil Courts. The disputes between the citizens and the Administration
are decided by the Administrative courts while the other cases, (i.e. the disputes between the
citizens) are decided by the Civil Court. Dicey was very critical to the separation for deciding
the disputes between the administration and the citizens .


According to Dicey, Administrative Law is that portion of a nation’s legal system which
determines the legal status and liabilities of all state officials and defines the rights and liabilities
of private individuals in their dealing with public officials. It also specifies the procedures by
which those rights and liabilities are enforced)
The above definition suffers from imperfections.
 It does not cover several aspects administrative law;
 It excludes the study of administrative processes and examination of various powers and
functions of administrative authorities and
 It covers only one aspect of administrative law i.e judicial control of public officials.


He developed a philosophy to control the Government and Officers and to keep them within
their powers.
The rule of law established by him requires that every action of the administration must be
backed by law or must have been done in accordance with law
The role of Dicey in the development and establishment of the concept of fair justice cannot be


The concept of rule of law, in modern age, does not oppose the practice of conferring
discretionary powers upon the government but on the other hand emphasizing on spelling out
the manner of their exercise. It also ensures that every man is bound by the ordinary laws of the
land whether he be private citizens or a public officer; that private rights are safeguarded by the
ordinary laws of the land
Thus the rule of law signifies that nobody is deprived of his rights and liberties by an
administrative action; that the administrative authorities perform their functions according to
law and not arbitrarily; that the law of the land are not unconstitutional and oppressive; that the
supremacy of courts is upheld and judicial control of administrative action is fully secured.

Future Role of Administrative Law

Growth in science and technology and modernization has resulted in great structural changes
accompanied with increase in the aspirations of people as to quality of life. We know socio-eco-
politico and multi dimensional problems which people face due to technological development
cannot solved except by the growth of administration and the law regulating administration. No
doubt the principles evolved by the court for the purpose of controlling the misuse of
governmental of power is satisfactory. Yet it is said that the administrative law in India is an
instrument in the hands of middle class Indians to combat administrative authoritarianism
through the instrumentality of the court and there is need to make administrative law a shield
for the majority of Indians living in rural area and people under poverty line. Therefore easy
access to justice is considered important form of accountability this may include
 Informal procedure,
 Speedy and less expensive trial,
 Legal aid,
 Public interest litigation,
 Easy bail
 The administrative law has to seek balance between the individual right and public needs
 Administrative law has to identify the excesses of power and endeavor to combat there


Further, the multifarious activities of the state extended to every social problems of man such as
health education employment, old age pension production, control and distribution of
commodities and other operations public utilities. This enjoins a new role for administration
and also for the development of administrative law.

One of the most significant developments of the present century is the growth in the legislative
powers of the executives. The development of the legislative powers of the administrative
authorities in the form of the delegated legislation occupies very important place in the study of
the administrative law. We know that there is no such general power granted to the executive to
make law it only supplements the law under the authority of legislature. This type of activity
namely, the power to supplement legislation been described as delegated legislation or
subordinate legislation

Why delegated legislation becomes inevitable?

1. Certain emergency situations may arise which necessitate special measures. In such cases
speedy and appropriate action is required. The Parliament cannot act quickly because of its
political nature and because of the time required by the Parliament to enact the law.
2. The bulk of the business of the Parliament has increased and it has no time for the
consideration of complicated and technical matters. The Parliament cannot provide the
society with the requisite quality and quantity of legislation because of lack of time. Most of
the time of the Parliament is devoted to political matters, matters of policy and particularly
foreign affairs.
3. Certain matters covered by delegated legislation are of a technical nature which require
handling by experts
4. Parliament while deciding upon a certain course of action cannot foresee the difficulties,
which may be encountered in its execution. Accordingly various statutes contain a 'removal
of difficulty clause' empowering the administration to remove such difficulties by exercising
the powers of making rules and regulations.
5. The practice of delegated legislation introduces flexibility in the law. The rules and
regulations, if found to be defective, can be modified quickly. Experiments can be made and
experience can be profitability utilized.


1. Skeleton delegation In this type of delegation of legislative power, the
enabling statutes set out broad principles and empowers the executive authority to make
rules for carrying out the purposes of the Act. A typical example of this kind is the Mines and
Minerals (Regulation and Development) Act, 1948.
2. Machinery type This is the most common type of delegation of legislative power,
in which the Act is supplemented by machinery provisions, that is, the power is conferred on
the concerned department of the Government to prescribe – i) The kind of forms ii) The
method of publication


1. Procedural
 Development of a procedure to be followed by the delegates while formulating rules and
 A Prior consultation of interests likely to be affected by proposed delegated Legislation
 Prior publicity of proposed rules and regulations
 Publication of Delegated Legislation
2. Parliamentary
 Parliament has various Committees (like Public accounts Committee, departmental
standing Committees). Similarly there is one Committee on Subordinate legislation. It
carries out detailed scrutiny of all the rules framed by the executives through delegated
 The committee then submits its report to the speaker of the Lok. A copy also tabled in
Rajya Sabha.
 If executives make some mischief in law making, parliament / SLA can always over ride
it. Delegated legislation is meant to save the time of legislators without undermining
their responsibility .
3. Judicial Safeguards
Judiciary can declare a delegated legislative acts as “invalid” if
 The parent act (enabling act) itself is ultra vires (against the Constitution).
 The provisions of subordinate legislation violates the Constitution
 Subordinate legislation is moving in a different direction than the parent act (enabling


1. Time of Parliament Saved
2. Flexibility of Rules
3. Interests Affected Consulted
4. Expert Knowledge Utilized
5. Experimentation in New Fields Possible
6. Unforeseen Contingencies Adequately Met
7. Avoidance of Litigation
8. Prompt Action in Emergencies
9. Proper Drafting of Rules


1. The practice of delegated legislation was considered a factor, which promoted centralization
2. Delegated Legislation was considered a danger to the liberties of the people and a devise to
place despotic powers in few hands.
3. It may lead to the legislature having diminished control over executives
4. In the name of technical law making by executive sometimes even basic or those which can
be made by the legislature are passed on.
5. The executive is unconnected with the people and thus they would not take into account a lot
of substantive interests of people and focus more on organised interests and technicality of
6. Jurisdiction of Courts Ousted
7. Publicity of these Rules Poor
8. Democratic Principle Undermined


9. Privileged Position of the State
10. Retrospect Effect Unfair
11. Inadequate scrutiny of the rules and regulations by parliament
12. It is contended that too much flexibility leads to confusion and causes chaos

There are a large number of laws which charge the Executive with adjudicatory functions, and
the authorities so charged are, in the strict scene, administrative tribunals. Administrative
tribunals are agencies created by specific enactments. Administrative adjudication is term
synonymously used with administrative decisionmaking. The decision-making or adjudicatory
function is exercised in a variety of ways. However, the most popular mode of adjudication is
through tribunals.


 Administrative Tribunals is the creation of a statute.
 An Administrative Tribunals is vested in the judicial power of the State and thereby
performance quasi-judicial functions as distinguished form pure administrative functions.
 Administrative Tribunals is bound to act judicially and follow the principles of natural
justice. • It has some of the trapping of a court and are required to act openly, fairly and
 An administrative Tribunal is not bound by the strict rules of procedure and evidence
prescribed by the civil procedure court.
Let us now study the evolution of the Administrative Tribunals with special reference to Central
Administrative Tribunal, State and Joint Administrative Tribunals, their jurisdiction, powers
and authority. The composition of the Tribunal and its functioning will also be dealt with.


The growth of Administrative Tribunals both in developed and developing countries has been a
significant phenomenon of the twentieth century. In India also, innumerable Tribunals have
been set up from time to time both at the center and the states, covering various areas of
activities like trade, industry, banking, taxation etc. The question of establishment of
Administrative Tribunals to provide speedy and inexpensive relief to the government employees
relating to grievances on recruitment and other conditions of service had been under the
consideration of Government of India for a long time. Due to their heavy preoccupation, long
pending and backlog of cases, costs involved and time factors, Judicial Courts could not offer the
muchneeded remedy to the government servants, in their disputes with the government. The
dissatisfaction among the employees, irrespective of the class, category or group to which they


belong, is the direct result of delay in their long pending cases or cases not attended properly.
Hence, a need arose to set up an institution, which would, help in dispensing prompt relief to
harassed employees who perceive a sense of injustice and lack of fair play in dealing with their
service grievances. This would motivate the employees better and raise their morale, which in
turn would increase their productivity.
The Administrative Reforms Commission (1966-70) recommended the setting up of Civil
Service Tribunals to function as the final appellate authority, in respect of government orders
inflicting major penalties of dismissal, removal from service and reduction in rank. As early as
1969, a Committee under the chairmanship of J.C. Shah had recommended that having regard
to the very number of pending writ petitions of the employees in regard to the service matters,
an independent Tribunal should be set up to exclusively deal with the service matters.
The Supreme Court in 1980, while disposing of a batch of writ petitions observed that the public
servants ought not to be driven to or forced to dissipate their time and energy in the courtroom
battles. The Civil Service Tribunals should be constituted which should be the final arbiter in
resolving the controversies relating to conditions of service. The government also suggested that
public servants might approach factfinding Administrative Tribunals in the first instance in the
interest of successful administration.
The matter came up for discussion in other forums also and a consensus emerged that setting up
of Civil Service Tribunals would be desirable and necessary, in public interest, to adjudicate the
complaints and grievances of the government employees. The Constitution (through 42nd
amendment Article 323-A). This Act empowered the Parliament to provide for adjudication or
trial by Administrative Tribunals of disputes and complaints with respect to recruitment and
constitutions of service of persons appointed to public service and posts in connection with the
affairs of the union or of any state or local or other authority within the territory of India or
under the control of the government or any corporation owned or controlled by the government.
In pursuance of the provisions of Article 323-A of the Constitution, the Administrative Tribunals
Bill was introduced in Lok Sabha on 29th January 1985 and received the assent of the President
of India on 27th February 1985


The Administrative Tribunals Act 1985 provides for the establishment of one Central
Administrative Tribunal and a State Administrative Tribunal for each State like Haryana
Administrative Tribunal etc; and Joint Administrative Tribunal for two or more states. The
Central Administrative Tribunal with its principal bench at Delhi and other benches at
Allahabad, Bombay, Calcutta and Madras was established on Ist November 1985. The Act vested
the Central Administrative Tribunal with jurisdiction, powers and authority of the adjudication
of disputes and complaints with respect to recruitment and service matters pertaining to the
members of the all India Services and also any other civil service of the Union or holding a civil
post under the Union or a post connected with defense or in the defense services being a post
filled by a civilian. Six more benches of the Tribunal were set up by June, 1986 at Ahmedabad,
Hyderabad, Jodhpur, Patna, Cuttack, and Jabalpur. The fifteenth bench was set up in 1988 at
The Act provides for setting up of State Administrative Tribunals to decide the services cases of
state government employees. There is a provision for setting up of Joint Administrative Tribunal
for two or more states. On receipt of specific requests from the Government of Orissa, Himachal
Pradesh, Karnataka, Madhaya Pradesh and Tamil Naidu, Administrative Tribunals have been
set up, to look into the service matters of concerned state government employees. A joint


Tribunal is also to be set up for the state of Arunachal Pradesh to function jointly with Guwahati
bench of the Central Administrative Tribunal.


Each Tribunal shall consist of Chairman, such number of Vice-Chairman and judicial and
administrative members as the appropriate Government (either the Central Government or any
particular State Government singly or jointly) may deem fit. A bench shall consist of one judicial
member and one administrative member. The bench at New Delhi was designated the Principal
Bench of the Central Administrative Tribunal and for the State Administrative Tribunals. The
places where their principal and other benches would sit specified by the State Government by


In order to be appointed as Chairman or Vice-Chairman, one has to be qualified to be (is or has
been) a judge of a High Court or has held the post of secretary to the Government of India for at
least two years or an equivalent-pay-post either under the Central or State Government
To be a judicial member, one has to be qualified for appointment as an administrative member,
one should have held at least for two years the post of Additional Secretary to the Government of
India or an equivalent pay-post under Central or State Government or has held for at least three
years a post of Joint Secretary to the Govt. Of India or equivalent post under Central or State
Government and must possess adequate administrative experience.

The Chairman, Vice-Chairman and every other members of a Central Administrative Tribunal
shall be appointed by the President and, in the case of State or joint Administrative Tribunal(s)
by the President after consultation with the Governor(s) of the concerned State(s).
But no appointment can be made of a Chairman, vice-chairman or a judicial member except
after consultation with the Chief Justice of India.

The Chairman, Vice-Chairman or other member shall hold office for a term of five years from
the date on which he enters upon his office or until he attains the age of
1. Sixty five, in the case of Chairman or vice-Chairman,
2. Sixty-two, in the case of any other member, whichever is earlier.

 The Chairman, Vice-Chairman or any other member of the Administrative Tribunal may, by
notice in writing under his hand addressed to the President, resign, his office; but will
continue to hold office until the expiry of three months from the date of receipt of notice or
expiry of his terms of office or the date of joining by his successor, whichever is the earliest.
 They cannot be removed from office except by an order made by the President on the ground
of proven misbehavior or incapacity after an inquiry has been made by a judge of the
Supreme Court; after giving them a reasonable opportunity of being heard in respect of
those charges.


 The Chairman of the Central Administrative Tribunal shall be ineligible for further
employment under either Central or State government, but Vice-Chairman of the Central
Tribunal will be eligible to be the Chairman of that or any other State Tribunal or Vice-
Chairman of any State or Joint Tribunal(s).
 The Chairman of a State or Joint Tribunal(s) will, however, be eligible for appointment as
Chairman of any other State or Joint Tribunals. The Vice-Chairman of the State or Joint
Tribunal can be the Chairman of the State Tribunal or Chairman, Vice-Chairman of the
Central Tribunal or any other State or Joint Tribunal.
 A member of any Tribunal shall be eligible for appointment as the Chairman or Vice-
Chairman of such Tribunal or Chairman, Vice-Chairman or other member of any other

Other than the appointments mentioned above the Vice-Chairman or member of a Central or
State Tribunal, and also the Chairman of a State Tribunal, cannot be made eligible for any other
employment either under the Government of India or under the Government of a State.


1. Chapter III of the Administrative Tribunal Act deals with the jurisdiction, powers and
authority of the tribunals. Section 14(1) of the Act vests the Central Administrative Tribunal
to exercise all the jurisdiction, powers and authority exercisable by all the courts except the
Supreme Court of India under Article 136 of the Constitution.
2. One of the main features of the Indian Constitution is judicial review. There is a hierarchy of
courts for the enforcement of legal and constitutional rights. One can appeal against the
decision of one court to another, like from District Court to the High Court and then finally
to the Supreme Court, But there is no such hierarchy of Administrative Tribunals and
regarding adjudication of service matters, one would have a remedy only before one of the
Tribunals. This is in contrast to the French system of administrative courts, where there is a
hierarchy of administrative courts and one can appeal from one administrative court to
another. But in India, with regard to decisions of the Tribunals, one cannot appeal to an
Appellate Tribunal.
3. Though Supreme Court under Article 136, has jurisdiction over the decisions of the
Tribunals, as a matter of right, no person can appeal to the Supreme Court. It is
discretionary with the Supreme Court to grant or not to grant special leave to appeal.
4. The Administrative Tribunals have the authority to issue writs.
5. In disposing of the cases, the Tribunal observes the canons, principles and norms of ‘natural
justice’. The Act provides that “a Tribunal shall not be bound by the procedure laid down in
the Code of Civil Procedure 1908, but shall be guided by the principles of natural justice.
6. The Tribunal shall have power to regulate its own procedure including the fixing of the place
and times of its enquiry and deciding whether to sit in public of private”.
7. A Tribunal has the same jurisdiction, powers and authority, as those exercised by the High
Court, in respect of “Contempt of itself” that is, punish for contempt, and for the purpose,
the provisions of the contempt of Courts Act 1971 have been made applicable. This helps the
Tribunals in ensuring that they are taken seriously and their orders are not ignored.




A person aggrieved by any order pertaining to any matter within the jurisdiction of the Tribunal
may make an application to it for redressal of grievance. Such applications should be in the
prescribed form and have to be accompanied by relevant documents and evidence and by such
fee as may be prescribed by the Central Government but not exceeding one hundred rupees for
filing the application. The Tribunal shall not ordinarily admit an application unless it is satisfied
that the applicant has availed of all remedies available to him under the relevant service rules


• Appropriate and effective justice.
• Flexibility
• Speedy
• Less expensive

1. The tribunal consists of members and heads that may not possess any background of law.
2. Tribunals do not rely on uniform precedence and hence may lead to arbitrary and
inconsistent decisions.


There are four categories of tribunals in India:

1. Administrative bodies exercising quasi-judicial functions, whether as part and parcel of the
Department or otherwise.
2. Administrative adjudicatory bodies, which are outside the control of the Department
involved in the dispute and hence decide disputes like a judge free from judicial bias .
Example: The Income Tax Appellate Tribunal is under the Ministry of Law and not under
Ministry of Finance.
3. Tribunals under Article 136 in which the authority exercises inherent judicial powers of the
State. Because the functions of the body are considered important over the control,
composition and procedure, even Departmental bodies can be classified as Tribunals.
4. Tribunals constituted under Article 323A and 323B having a constitutional origin and
enjoying the powers and status of a High Court.




Origin of Comparative Public

Administration & its growth

The origin of comparative public administration can be discussed from two perspectives.
1. The activities of the Comparative Administration Group
2. Aristotle’s classification of government

 Even though comparative studies in administration date back to Aristotlian times where he
sent scholars to dissimilar parts of world to revise their political systems, Comparative
Public Administration started off as a topic of interest post the Wilson(described the 1st
comparatives) essay in 1884 where he very rightly stated that in order to know our own
country's administrative weaknesses and virtues we need to compare with others. And, he
stated that administration is the best and mainly safe prospect of comparative studies as
administrative techniques and procedures are similar approximately everywhere and in fact
we can learn a lot through comparing.


Though, it was not taken so seriously due to the emphasis on conceptualizing and
structuring as well as defining Public Administration at that time was the top priority. The
theorists and administrators as well as governments were busy understanding their own
administrative setup before they could set off on a comparison with others. So, while this
was being contemplated the First World War erupted and with its end and the establishment
of the League Of Nations there came about a lot of questions concerning the need to
understand the needs of the countries who were not so developed because several of them
came under the British colonialism as well as other imperialist countries in order to control
these and draw maximum benefit.
This comparative revise took a philosophical turn throughout the course of the second world
war and its aftermath when there came the end of imperialism and colonialism and
emergence of several independent states, a joint initiative through the developed countries
under the United Nations(formerly described 'The League Of Nations') aegis to refurbish the
developing an third world countries as well as to develop their own war damaged national
economies. And lets not forget the beginning of Cold War flanked by the two superpowers
USA and Soviet Union which played a big part in this movement where both looked to
hegemonies the world politics and economy.
USA took the lead here in administrative studies and also in providing financial as well as
technical help to the developing nations in order to augment their market share and also to
curb communism that was a product of the Soviet Union.
The USA was the hub of these studies since the Western countries lacked the institutional
and administrative capacities to implement their development plans post world war 2.the
government, United Nations and several private institutions as well as corporate sponsored
varied technical assistance programmes that enabled the public administrators, lecturers of
public administration and professionals to revise the same in depth as well as travel abroad
and gather hands on experience and build a universal comparative theory of Public
Administration. Notable in these efforts was that of the American Society for Public
Administration(ASPA) & American Political Science Association( APSA).
The first organisation formally shaped to formulate a universal comparative theory of public
administration was the Comparative Administration Group(CAG) in 1960 that was a division
of the ASPA, funded through the Ford foundation to revise methods for improving public
administration in developing countries under the chairmanship of Fred W. Riggs. More than
providing administrative techniques this group became a forum for intellectuals to
understand why the developing countries differ so much in practice of administration and
are not able to sustain the classical theory principles of administration in their systems even
though Classical theorists of administration like Fayol & Weber, etc preached that their
principles and models of administration were universal in their element and can be applied
anywhere with greatest success.
CAG gave the thought of scientific studies and emphasized on empirical and
ecological(social, cultural, and historical factors) revise of several administrative systems.
Even though the CAG had to shut shop in the early 70's since several administrators and
academicians realized that due to the highly complex setting which the group had provided
for comparative Public Administration studies was resulting in failures in providing really
empirical assessment of administration factors in a society. They stated that it provided a
very good direction but the techniques were not being specified to execute the thought. And
so the studies were transferred back to the Department of Comparative Studies.
Also in 1968, the first Minnowbrook Conference was held under the chairmanship of Dwight
Waldo that also talked about the need for Comparative Public Administration revise and


 Another school of thought that advanced the idea of comparing political systems started with
Aristotle when he tried to compare various political institutions that were in existence then.
This is clearly discussed in his work “politics”. Comparative administration has a lot of
history that dates back to ancient Greek. It is a field of study that deals with comparative
analysis of political and administrative structures within and outside the state.
Aristotle at that time tried to classify models or forms of governments based on their
inherent features. For instance, the ancient city of Rome was also like a city-state of Athens
and other city-states of Greece. Its constitution was that of a city-state just like that of
Athens. The Roman concept and practice of democracy was also similar to that of the
Athenians in Greece. Just like in Athens, Rome had an executive council called the Senate.
However, the Roman executive council was less democratic than that of the Athenians in the
sense that its members held office not just for a year at a time but in effect for a longer
period of time.
Aristotelian Models of government : Aristotle tried to compare forms and structures of
government by classifying them. Classification of government is imperative in comparative
politics and administration because it illuminates the major differences and similarities in
the various political and administrative systems and even behaviour.

Number of Rule in the Self Interest Social Group

Rulers General Rule
One Monarchy Tyranny King

Few Aristocracy Oligarchy The wealthy

Many Democracy Masses The poor

Aristotle’s Modern Classification of Government : The attempt at classifying as well as

comparing state structures and institutions has contributed largely to the identification and
development of models of comparative politics and administration. Although the evolution
of the civil service in ancient times could be traced to those of ancient Egypt, Babylon,
Mesopotamia and Asia Minor thousands of years before the city-states of Greece and Rome
came into being. The various classifications and models of government are still prominent
features of modern governments as shown below.

S/N Types of Leaders Opportu Director of mass

Gov hip nity
ern for
men Cont
t est
1 Traditional Closed Negligible Conservation



2 Competitive Open Multiples Conservation/Adaptive

3 Military Closed Negligible Conservation/Reformist

4 Populist Closed Moderate Transformative/Adaptive

5 Communist Closed Multiples Transformative/Regimented

6 Liberal Open Multiples Reformist voluntary


Factors that Led to the Growth of Comparative Public

The following are the main factors that led to the growth and development of comparative public
administration from the 1950s through 1980s. They include:
1) The revisionist movement in comparative policies due to the dissatisfaction with the
traditional approaches of public administration
2) The dissatisfaction with traditional public administration which was culture-bound
3) Intellectually oriented catalysts, that is, to develop universally relevant theoretical models
4) Exposure of American scholars and administrators to the new features of the administrative
systems of developing countries during World War II
5) The emergence of newly independent third world countries that attempted to achieve rapid
socio-economic development - creating opportunities for scientific investigation
6) Policy oriented catalyst, that is, to develop practical knowledge that will make policy-
formulation and policy- execution more effective
7) The scientific, technological and theoretical developments which have influenced forms of
administrative structures
8) The extension of American foreign aid programmes (both political and economic) to newly
emerged developing countries

Trends in Comparative Public Administration/ Nature of

Comparative Administrative Studies
F.W Riggs noticed five trends in comparative public administration. These include:
1) A shift from ideographic studies (one nation studies/individualistic studies) to nomothetic
studies (universal studies)
2) A shift from normative studies (which deal with what ought to be) to empirical studies (that
deal with what is)
3) A shift from non-ecological studies, which examine administrative phenomena in isolation
to ecological studies which examine administrative phenomena in relation to the external
4) Learn the distinctive features of a particular system or cluster of systems.
5) To explain the factors responsible for cross national or cross cultural differences in
bureaucratic behaviours



What is Comparative Public Administration

 Nimrod (1979) views comparative public administration as a study of public administration
on comparative basis.
 Robert (1980) on the other hand sees comparative public administration as “that facet of the
study of public administration which is concerned with making rigorous cross-cultural
comparisons of the structures and processes involved in the activities of administering
public affairs”.
 According to the Comparative Administration Group (CAG) comparative public
administration is a theory of public administration applied to the diverse cultures and
national settings and the body of factual data by which it can be examined and tested.
 Jong (1980) on his part stated that CPA has been cross-cultural or cross-national in

Purposes of CPA or why comparison is necessary

 Comparison is fundamental to all human thought.
 It is the methodological core of the humanistic and scientific methods
 It is the only way a comprehensive knowledge and understanding of political systems can be
 obtained.
 Comparison in phases (past and present) and experiences of nations aid indepth
understanding of political and administrative institutions.
 Comparison of politics and administration of other societies affords the benefits of
identifying political alternatives and remedying short comings in our national life.
 It widens our horizon of political possibilities by taking us beyond the precincts of familiar
arrangements and assumptions.
 It assists in developing explanations and testing theories relating to how political and
administrative processes/changes occur.
 As a corollary, it affords the opportunity of assessing the developmental models, theories,
 assumptions, phases or processes of nation-states in relation to others.
 The comparative approach facilities an initiation of general theories of political, economic
and socio-cultural relationships between countries.
 By comparing the experiences of many institutions and settings with underlining political
 theories, the comparative method offers a potent tool for thought and analysis.

Significance/Contributions of Comparative Public

According to T. N Chaturvedi, the various contributions of comparative study in public
administration are:
1) It has helped to eliminate the narrowness of ―provincialism‖ and ―regionalism‖.
2) It has broadened the field of social science research, which was earlier confined to cultural
3) It has led to a greater scientific outlook in theory construction.
4) It has encouraged the process of broadening the field of social analysis.


5) It has played an important role in making the subject of public administration broader,
deeper, and useful.
6) It has brought politics and public administration closer to each other.

Methods of CPA or how to compare

The study of CPA entails description, explanation and prediction which are essential
ingredients of the scientific process.
 Description involves conceptual framework or apparatus. The easier this is, the better for
the study of CPA. Conceptual frameworks are not generally right or wrong, but useful to the
task at hand.
 Explanation implies seeking to identify relationships between political and administrative
phenomena of nation-states. A good example may involve identifying the correlation
between democracy and international peace. Are states peaceful because they are
democratic or vice-versa or peaceful and democratic because they are prosperous, or
prosperous because they are peaceful and democratic? By the causal-effect of explanation,
theories are developed, tested or proved.
 Prediction is enabled or made possible from the above process. In the example above,
repeated studies or research may import an inference or conclusion that democratic states
are peaceful or prosperous. After continuous trials and experiments, a theory may result
from research to the effect that democratic states are stable because they are peaceful.

Scope and level of Analysis of Comparative Public

In comparative (public) administrative studies, the unit of analysis (scope) is on administrative
system. Therefore, the focus is either on the whole of an administrative system or on its various
parts. Briefly, the subject matter of comparison would be one or all of the following phenomena:
1) Environment of the administrative system.
2) The whole administrative system.
3) The formal structure of the administrative system with a focus on the pattern of
hierarchy, division of work, specialization, authority-responsibility network,
decentralization, delegation, control mechanisms, procedures, etc.
4) The informal organizational patterns existing in an administrative set-up, including the
nature of human groups, the relationships among individuals, motivational system, the
status of morale, patterns of informal communication and the nature of leadership.
5) The roles of the individuals.
6) The interaction between the personality of individuals and the organizational system.
7) The policy and decisional systems of the organization that link its various parts.
8) The communicational system, which also involves the feedback mechanism.
9) The performance of an administrative system.
You would notice from the foregoing discussion that an administrative system is not asimple
entity. There are intricacies of its functioning which will be highlighted in any comparative


However, Comparative administrative studies can be conducted at three analytical levels:
macro, middle-range and micro.
(a) Macro studies: Theses focus on the comparisons of whole administrative systems in
their proper ecological contexts. For instance, a macro study would involve a comparison of the
administrative systems of India and Great Britain or Nigeria and Senegal. It will comprise
detailed analysis of all important aspects and parts of the administrative system of the two
nations. It will be comprehensive in its scope. Though the studies of macro level are rare, they
are not impossible to be taken up. Generally, the relationship between an administrative system
and its external environment is highlighted in the macro level studies.
(b) The Middle-range studies: Theses are on certain important parts of an
administrative system that are sufficiently large in size and scope of functioning. For instance, a
comparison of the structure of higher bureaucracy of two or more nations, comparison of
agricultural administration in two or more countries or a comparison of local government in
different, countries will form part of middle range studies. For instance, the Indian local
government system can compare to that of Britain.
(c) Micro studies: These relate to comparisons of an individual organization with its
counterparts in other settings. A micro study might relate to an analysis of a small part of an
administrative system, such as the recruitment or training system in two or more administrative
organizations: Micro studies are more feasible to be undertaken and a large number of such
studies have been conducted by scholars of Public administration In the contemporary
Comparative public Administration, all the three types of studies may exist.

Forms/Types of Comparison/ The Range of Comparative


1) Inter-institutional Analysis : Inter-institutional analysis involves a

comparison of two or more administrative systems within an organization. For instance, a
comparison of the structure and working of the department of human resource and
department accounting such comparisons could involve the whole of an administrative
organization or its various parts.
2) Intra national Analysis : When an analysis in a comparative perspective is
taken up among various administrative systems functioning within a country, it would be an
intra-national analysis. For instance comparison of district administration in Bihar and
Harayana district would be an example of such an analysis.
3) Cross-national Analysis : When two or more administrative systems (or their
parts) are compared in the settings of different nations, this would be cross-national
analysis. For example, comparing the recruitment of higher civil service of China, Thailand
and Tanzania will form an example of a cross-national analysis or comparing the promotion
of senior public servants in Nigeria, Niger and Senegal.
4) Cross-cultural Analysis : A cross-national analysis of administrative system
involves countries forming part of different "cultures", this would be called a cross-cultural
analysis. For instance, comparing the administrative system of the USSR (a socialist state)
with the U.S. (a capitalist system) could be termed a cross-cultural analysis. Even a
comparison between a developed country (e.g. Britain or France) with a developing country


(e.g. Tanzania or Nigeria) or between a developing democratic country (e.g. Philippines) and
a developing Communist regime (e.g. Vietnam) will be covered in a cross-cultural
comparison. Thus, the word "cultural" in the category "cross-cultural" has a broad
connotation and involves an aggregation of distinctive political, economic and socio-cultural
traits of a particular system and its environment.
5) Cross Temporal Analysis : Such a comparison involves different time-frames
for analysis. For instance, a comparison between the administrative system prevailing
during Ashoka's reign and during Akbar's regime would be a cross-temporal analysis.
Likewise, comparisons, between the administrative systems of ancient Rome and modem
Italy, or between the administrative practices prevailing during the period of Jawaharlal
Nehru and Indira Gandhi would fall under the rubric of cross-temporal analysis.
A cross-temporal analysis may be inter-institutional, intra-national, cross-national or cross
cultural. For instance, a comparison of the administrative control mechanisms prevailing
during the times of Julius Caesar, Alexander, Harsha, Attaturk and Nasser will be cross
national as well as cross-cultural. Exactness in cross-temporal studies is not possible
because of differences in the nature of historical sources available for various periods. But
some broad conclusions on the basis of existing sources can be reached through such
studies. Nimrod Raphaeli has defined Comparative Public Administration a study of Public
Administration on a comparative basis. The Comparative Administration Group referred to
Comparative Public Administration as the theory of Public Administration which belongs to
diverse cultures in the national settings and the body of factual data by which it can be
expanded and tested. Robert Jockson has defined it as the phase of study which is –
concerned with making rigorous cross-cultural comparisons of the structures and processes
involved in the activity of administering public affairs.

Advantages of the Comparative Method

1) Through comparison, we can discover our own ethnocentrism and ways of overcoming it.
Here, the behaviour of man as it relates to the norms and values of other cultures or society;
the feeling of superiority of one’s tribe over another. But through the comparative methods,
one would be able to appreciate the culture and values of others.
2) The comparative method provides scholars or analyst with a toolbox of concepts and
techniques for comparing nations or countries. Just as the motor mechanic has his toolbox
for the repair of vehicles, a student of Comparative Public Administration also has a toolbox
that provides concepts and techniques to be used in carrying out comparative analysis. It
could be through theories or models, e.g. system theory, motivation theory, leadership
theories and the like.
3) Comparison also provides more variables for the analyst to work with. When concentration
is on a single country, ones knowledge would be limited.
4) Generalizations derived from comparisons have more potential for prediction; i.e., they
provide some capacity to forecast the future through the control provided by the knowledge
that had existed.
5) Comparative method provides knowledge of foreign government or countries and their
administrative systems which can cast fresh light on our own administrative system.
6) It enables us to formulate and test hypothesis about other administrative systems.
7) The generalizations that are derived when comparisons are made become essential for our
understanding of administration even in a single country. Thus, these generalizations can be
useful in predictions while enabling us to control and change administrative and political
processes generally.


8) Cross-polity and cross-administrative comparisons could help us to construct typologies and
make rankings very possible. It also gives panoramic descriptions of the universe of
administration and politics.
9) It also makes possible the identification of uniformities of the characteristics of
administrative systems. That is to say, it helps us identify the differences and similarities in
administrative and political systems of countries.

Disadvantages of Comparative Analysis

1) Variations of concepts used for analysis : Too many variables and
too few countries; for instance, there are over 180 countries in the world. Given the number
of countries available in this world, it is indeed difficult to find how they are identical in all
respects except a few. One can adduce this to differences in environment, political systems
and socio-cultural backgrounds. As such, comparing administrative and political systems
cannot be easily carried out because data collected for analysis cannot be controlled as in the
natural sciences and due to the inconsistencies and differences in administrative and
political systems of these countries.
2) Problem of misinterpretation. There is the problem of misinterpretation
of the same administrative and political phenomena when comparison is carried out. What
this means is that the same phenomena could be given a different meaning. For instance, a
change of power through military coup d'état in Africa could be likened to a democratic
election held in the Western world. The fact is that the meaning of an action depends on the
convention of the country concerned. Thus, comparing like with like is not always a
straightforward task. It requires some knowledge of each of the units, organizations or
institutions one is comparing. Therefore, comparison is not a straightforward endeavour.
3) Boundary problems: The classification of systems and their elements have
boundary problems. That is, how can one define the nature of concepts to be used for
For example, a strong leadership in country A could be seen as dictatorship in country B.
Definition of concept is in fact a problematic issue in comparative analysis.
One can again cite this example: Dr. Nelson Mandela was a nationalist in Africa but was on
the other hand seen as a terrorist in Britain during the period of apartheid. In fact, what one
says depends on the perspective one is viewing a concept from. It is in the light of this fact
that one can say that comparative analysis is confronted with the problem of eclecticism and
4) Environmental factors: According to Riggs (1964) it has to do with the
dynamics of the environment with which public administration operates. For example,
variations in social, political, economic and cultural environment between countries greatly
limit the possibility of generalizing. Since one cannot manipulate administrative structures
like the legislature, executive, civil service, bureaucracy and the like because of the
inconsistencies in the behaviours of these institutions, the closest thing to do is to examine
and compare a number of these institutions which is a very difficult task to achieve.
5) The methodology is cruel: I.e., it is not precise and concise. In fact, the
analytical approaches and theories vary. For instance, we have several leadership theories,
leadership styles and organizational theories. Thus, it becomes difficult to adopt a method
that can be generally accepted by scholars.
6) Human behaviour: This deals with the fact that administration is aimed at solving
social problems in a society. Hence, the study of human beings as they behave or as they are


expected to behave under certain conditions. This concern with human being greatly limits
the immediate need for comparative analysis because human being is difficult to predict.
7) Normative values: Scholars, like practitioners, have their own individual values
and idiosyncrasies. As a result, it is common to find their analyses oscillating between
empiricism to normalism. That is, from how things are to how things ought to be.



According to E,H, Cart, 'history is a continuous procedure of interaction (flanked by the

historian and his facts) an unending dialogue flanked by the present and the past'. History gives
an insight into the past. The revise of historical background of a country enables us to
understand its administrative systems. Historians have recorded not only political events like
battles and the deeds of rulers but also particulars of administration., 'For instance, L.D. White
in his books on the early history of American administration. Administrative history of Medieval
England provided useful material for understanding the systems of administration of those
times, History tells us how administrative troubles arose in the past and how they were solved.
Significantly, modem historians have been paying rising attention of the prevalent
administrative systems. This augurs well for Social Sciences like Public Administration since it
will give' valuable information to them.
No social event can be studied in isolation without reference to other events. Consider for
instance, the policy on Reservation. A good section of people are supporting it and an equal
number are opposing it. If it is viewed only as a policy, for raising or reducing the percentage of
reservations we would be facing difficulties. We have to take into consideration its root cause
which is the outcome of the historical development of the Indian society. This means that we
have to analyze the social, economic, political, and cultural characteristics of reservation policy
in order to be able to formulate it in such a way as to meet the ends of social justice and ensure
national progress. Likewise, with regard to the problem of rising inefficiency in public offices
you have to take into account a whole spectrum of policies ranging from the recruitment policy
through educational policies to the absence of 'attainment' motivation. Then only you will know
what has caused it. If you view inefficiency only as a matter of discipline in the offices you may
not he able to solve the problem of inefficiency.
If one notices cautiously then it is clearly apparent that historical events have led to the
invention of several administrative practices. Though there are aplenty, though, some examples
are cited below.
English Administrative system: England does not possess a written
constitution mainly because it was a monarchy prevailing there and the people lived there
through conventions and traditions going on from time immemorial.
Indian Administrative system: Reservations are made as Indian society is
very diverse in matters of social as well as economic status, etc., after a lot of historical events


like B.R Ambedkar and his policies as well as the British division of Hindu and Muslims and
other minorities in separate electorate system, etc. There are several social laws in India that are
made from society like panchayats, etc. Tribal welfare is given special attention in India due to
subsistence of tribals in the society. Several offices (bureaucratic, political, economical, etc) are
remnants of British legacy like the office of the collector, police dept, civil services, etc. Revenue
administration here is a modern version inspired through historic Mughal ones.
SA Administrative system: Several historical and sociological factors have also
shaped the American system. A few of them cited are the Civil war that lead to providing African
American slaves was given the title of citizens and right to vote. Also the second civil rights
movement that occurred under the aegis of Martin Luther King Jr. leading to elimination of
segregation and racial discrimination flanked by black and white Americans.
France Administrative system: Arrangement of Droit Administration could
be seen associated with the approach and functioning of Napoleon Bonaparte who set the table
for a centralized administration as an efficient administration. The storming of Bastille incident
which was fuelled through economic crisis lead to the overthrow of monarchy there to
republican system and led to the establishment of Declaration of the Rights of Man and the
Citizen that lead to the first step of France's constitution framing.


There are a number of approaches, models and theories presently characterizing the subject-
area of Comparative Public Administration. Particularly after Second World War, a number of
approaches have emerged in comparative administrative analysis. Much of this effort is based
on an adaptation of the developments in comparative anthropology, I comparative sociology and
comparative politics. We will now study different approaches :

What is a theory?
A theory is a coherent group of propositions formulated to explain a group of facts or
phenomena in the natural world and repeatedly confirmed through experiment or observation.
What is a model?
In the field of social sciences, a model is an imitation of or an abstraction from reality that is
intended to order and simplify the view or perceptions of that reality while still capturing some
essential characteristics. Models and theories are often used interchangeably. A model is often
characterized by the use of analogies to give a more graphic or visual representation of a
particular phenomena.
What is an approach?


An approach is based primarily on one central concept that is thought to be especially useful in
studying basic features of public administration. Models can be thought of as refined and more
specific versions of approaches. Within Olle approach different models can be developed.
Models are very specific towards a particular study. On the other side, approaches are general in

I. Weber’s Ideal or Bureaucratic Approach

The most influential of the approaches is Max Weber's ideal-type bureaucratic model. This has
structural characteristics of hierarchy, specialization, role-specificity, recruitment by merit,
promotion by seniority-cum-merit, career development, training, discipline, separation between
personal and official means, etc. The emphasis in the model is on rationality and efficiency.
There have been a number of studies conducted in a comparative context employing the
bureaucratic model of Weber. Notable scholars in this area include Michael Crozier (on
Fiance),Roy Laird (on the Soviet Union) and Morroe Berger (on Egypt). The methodological
limitation of an ideal-type model and specific context of a legal-rational authority system poses
constraints in the application of Weber's model to the comparative, study of bureaucracies.
Nevertheless, for an analysis of the bureaucracies, of the developed countries, the model is still
considered eminently useful. Dwight Waldo views Weber's ' bureaucratic model as a "paradigm"
of Public Administration.
Particularly after Second World War, a number of approaches have emerged in- comparative
administrative analysis. Much of this effort is, based on an adaptation of the developments in
comparative anthropology, comparative sociology and comparative, politics.

II. Behavioral Approach

The behavioral approach emphasizes '"acts", rigorous scientific methods of data collection and
analysis, quantification, experimentation, testing, verification and an, interdisciplinary
orientation. It focuses on the analysis of human behavior in administrative settings.

III. David Easton’s system Approach


The systems approach may view an explainable phenomenon as a system which comprises
several parts with each part interacting with each other. Each system functions in its
environment, and there is a continuous interaction between the system and its environment.
The environment influences the system in the form of “inputs” which are “converted” into
“outputs” by the system or systemic interaction. Through a process of “feedback”, outputs cause
the emergence of new inputs.
The application of the systems theory to CPA lies in the fact that nations, administrative, socio-
political and economic processes of nation- states among several other indices are construed in
terms of systems and sub-systems which interacts within, among and between themselves in
line with the operations of the system approach.
Systems theory is basically concerned with problems of relationships, structure and
interdependence. It is common knowledge that open systems possess permeable or flexible
boundaries which makes interaction with the environment possible. The major characteristics of
the open systems are as follows:
 Importation of energy from the external environment
 Transportation process allows for activities and service provision
 Open systems export some product (output) into the environment
 The pattern of activities of the energy exchange is cyclic in character
 Open systems acquire negative entropy, implying that the importation of more energy from
its environment than it actually expends, avert organizational/systems collapse or
disintegration (or death which no living/biological organism can escape).
 Through the feedback mechanism, open systems re-process negative information and
correct deviations from normal course. Negative feedback therefore serves as a regulatory
 Resulting from the importation of energy to arrest entropy, open systems attempt to cope
with external forces by injecting them or acquiring control over them, thus maintaining
steady state of affairs referred to as “Homeostasis”.
 Open systems have greater capacity for increased performance and functional specificity
 Open systems attain their goals/objectives through a diversity of methods and approaches.
This refers to the principle of equifinality.
The systems theory however has been accused of the following pitfalls:
 It is silent on hierarchy and narrows issues to horizontal or equilibrium balancing.
Predicated on Weber’s analysis on organisation, that without structure, an organization
cannot function, then systems theory appears too micro and its use limited and relative to
 The “boundary” is difficult to determine especially between internal and external
 It tries to maintain the status-quo by its emphasis on equilibrium. To that extent, it strikes a
balance between systems, sub-systems and super systems
In conclusion, it should be noted that the political system is a set of institutions and agencies
charged with policy formulation and execution or implementation of the collective goals of a
society or constituent groups.


IV. Fred W. Riggs Ecological Approach
An ecological approach to public administration is based on understanding the interrelationship
between the administration and everything that forms its environment. For example the
interaction among the environmental factors (climate, flora, fauna, and topography), people
(their knowledge and skills) and technology (physical and social) makes human existence
possible. So understanding this factor and locating the functions of the government in this
context will amount to having an ecological approach to public administration. Ecology
(originated from the Greek word ‘oikos’) is the study of interactions among organisms and their
environment. Ecology includes biology and Earth science and studies interactions of organisms
with each other, with other organisms, and with a biotic component of their environment.
The ecological approach to Public Administration was first popularised by Fred W. Riggs. He
tried to understand the disparity between the administrative systems of developed and the
developing countries. He found that the main reason for this uniqueness in the world is the
environment that they are embedded in. Each country had a different environment setting
which shaped the administrative system both from within and outside. Internally the
administrators shape the administration and they are themselves a product of their culture,
technology and environment and polity and the same set of factors impact it externally through
systems and processes.

Gaus emphasized that factors of people and place like migration, economy, technology etc are
interwoven. These processes have impact on governments. He explains this with the help of
examples from Lake States of New England and New York where the older farm lands or are no
longer profitable to agriculture and reforestation is too recent to yield timber crops have
produced a chain of institutional consequences like land values and tax payments decline, tax
delinquent land reverts to county or state, public schools, roads and other services can no longer
be locally financed. Therefore he emphasised that a broader understanding of ecological factors
and their impact on administration should be studied.
Riggs is attributed with popularization of Ecological Approach to Public Administration. He
emphasized that in order to become a comparative study, Public Administration needs to shift
its focus from being Normative (based on norms and values) to empirical (Based on verifiable
observations or experience rather than theory), and to include in its ambit cross cultural
perspectives and approach to administration. He was uncomfortable with adoption of
administrative practices of developed countries by the developing countries for their progress
without adapting it to their own cultural context. He proposed the concept of structural
functional approach as a means to study the environment and administration relation.
According to this approach every society has various structures like political, economic, and
social that perform specific functions like symbolic and communicational functions in the
society. He found that since every society has a specific structure of social, political, economic
and cultural value system, aping the development models and theories of the west will not
necessarily lead to the desired result in the developing countries.

V. Structural-Functional Approach



Structural-Functionalism: Talcott Parsons

Parson’s structural-functionalism with the four Functional Imperatives for all “Action” Systems,
his famous AGIL scheme.
AGIL : Talcott Parsons believed that every society has a function to play in meeting its needs in
the society. According to Rizter (2007) and Rocher (1975), a function is “a complex of activities
directed towards meeting the need or needs of the system”. According to Parsons, four
functional imperatives are necessary for all systems. These include:
 Adaptation (A)
 Goal attainment (G)
 Integration (I) and
 Latency (L)
Parsons believes is that no system can survive if it fails to perform these four functions. The
AGIL is discussed below:
Adaptation : Every system exists in an environment. This environment can be ecological,
legal, social, technological, religious or political. Each environment exists with some problems
or obstacles that can affect its development. The ability of that system to survive these
challenges or obstacles makes it to function successfully.
Goal Attainment : Every system has a goal to attain. It is because of this fact that
organizations, states or countries are established. It is for this goal that almost all the units or
sectors that make up a system must cooperate to achieve.
Integration : For a system to function properly, all the units must cooperate with one
another. Such cooperation leads to integration. It is therefore the responsibility of those in
charge of organizations to ensure that departments or units in the organization lead to
teamwork and better performance. Integration discourages conflicts.
Latency : Joseph (2005) states that social order does not only reside in being able to
perform the roles expected of people occupying certain statuses in the system. These roles could
be performed just to satisfy the expected demands but with no moral basis to respect the rights
of others in the system who also have roles to perform. Joseph (1978) goes further to add that
latency is a double faceted phenomenon involving tension management and pattern
maintenance. It is true that in every system or organization conflicts abound since it is the
nature of man. Human nature is unpredictable so it is the responsibility of the society or system
to ensure that all players in the system and sub-system conform to the expected patterns or
behaviours to enable them perform their expected functions. The system should endeavour to
appreciate hard work and symbolic roles by rewarding those who perform exceptionally.



Structure of the General Action System :

Now, you can see above that the Behavioural Organism is the action system that handles the
adaptation function by adjusting to and transforming the external world. The Personality
System performs the goal-attainment function by defining system goals and mobilizing
resources to attain them. The Social System copes with the integration function by controlling
its components parts. Finally, the Cultural System performs the latency function by providing
actors with the norms and values that motivate them for action (Ritzer, 2005).

 The Structural-Functional analysis originated in the biological and mechanical sciences. In

the social sciences, it was first used in Anthropology. Later on it was developed and refined
as a mode of sociological analysis, predominantly by Talcott Parsons and Marion Levy.
 It has been under the influence of the sociologists, particularly these two, that the Structural-
Functional Approach has come to be developed by political scientists, particularly by Gabriel
A. Almond and his associates.
 In 1960, Almond and Coleman, in their work ‘The Politics of Developing Areas,’ used this
approach for the study of non-Western political systems. Six years later, Almond and
Bingham Powell published their work ‘Comparative Politics: A Development Approach’.

The structural-functional approach is derived from earlier uses of functionalism and systems
models in anthropology, sociology, biology, and political science. Structural functionalism
became popular around 1960 when it became clear that ways of studying U.S. and European
politics were not useful in studying newly independent countries, and that a new approach was
needed. Structural-functionalism assumes that a bounded (nation-state) system exists, and
studies structures in terms of their function(s) within the system. For structural functionalists
the question to be answered is what does a structure (guerrilla movement, political party,
election, etc.) do within the political system (of country x)? The goal is to find out what
something actually does in a political system, as opposed to what it is supposed to do. Thus,
structural functionalists would not waste time studying constitutions in Third World countries if
they found that the constitutions [structures] had little impact on political reality.
Almond claimed that certain political functions existed in all political systems. On the input side
he listed these functions as: political socialization, political interest articulation, political interest
aggregation, and political communication. Listed as outputs were rule-making, rule
implementation, and rule adjudication. Other basic functions of all political systems included
the conversion process, basic pattern maintenance, and various capabilities (distributive,
symbolic, etc.). Structural functionalists argued that all political systems, including Third World
systems, could most fruitfully be studied and compared on the basis of how differing structures
performed these functions in the various political system.


Structural functionalism is based on a systems model. Conceptually, the political process can be
depicted as follows:

For analytical purposes the political system is considered to be the nation-state, and the
environment is composed of the interactions of economic, social, and political variables and
events, both domestic and external. The idea is that there are a number of actors in the national
political system (political parties, bureaucracies, the military, etc.) and that the actions of all
these actors affect each other as well as the system. The political analyst must determine the
importance of these actors in a particular political system. This is done by analyzing the
functions performed by the various actors. Any changes in the system also affect all the actors.
The feedback mechanisms allow for constantly changing inputs, as actors react to outputs.
Structural functionalists, like systems analysts, have a bias toward systemic equilibrium, (ie
toward stability). Such a bias tends to make this approach conservative, as stability, or
evolutionary change, is preferred [and more easily analyzed], to radical, or revolutionary
change. A problem which arises with this system-based model is that the nation-state's
boundaries are often permeable in the real world, rather than being the neatly bounded nation-
state conceptualized by structural functionalists. In other words, in the real world it is usually
difficult to state exactly what the boundaries are, leading to some conceptual difficulties. For
example, some international actors are only intermittent, such as the U.S. when it intervenes
directly in Haitian or Panamanian politics. Should U.S. military forces be considered a part of
the Panamanian or Haitian political systems?
Fred Riggs has successfully applied the ecological and structural-functional approaches in his
analysis of societies and their administrative systems.


VI. L. W. Pye’s Political Culture Approach
In order to understand the past, present and future behaviour in a nation-state, an enquiry into
attitudes and values held dear by citizens is necessary. The functioning of political and
administrative institutions reflects the attitudes, norms and expectations of the citizens to an
extent, which in effect dictate actions and behaviour. Examples of this will include the strong
feelings of patriotism by the Americans, Japanese attitude to work and time, and the inclination
of the French towards dissent and protest. Public support as a factor of legitimacy,
constitutionalism and respect for rule of law underscore political culture in civilized and well
ordered societies.
A nation’s political culture can be measured by citizens’ orientation towards the political system;
policymaking process and policy output and outcomes. The system level involves what citizens
and leaders hold as values and organisations that bind the political system together, and
examples will include national pride, national identity and legitimacy of government plus
orderly transition or change of regimes. The process level implies expectation of how politics
should function and individuals relationship to the political process. This is exemplified by
principles of government, role of citizens in the political process and perceptions of political
rights. The policy level deals with citizens and leaders policy expectations from the government.
The defining characteristics of this will be government’s policy goals and means of attaining
them. Examples include the role of government and policy priorities.
Note the role of political structures and political culture as mutually reinforcing stable political
systems in cultural congruence. Participation strengthens democracy while authoritarianism
and other forms of dictatorship or iron rule/tendencies weaken democracy and stable political
atmosphere. Also worthy of note is the influence of consensual and conflictual political culture.
That is, how are decisions made or arrived at, and the means of attaining issues of public policy,
views on legitimate governmental and political arrangements and the resolution of major
problems facing the society.
Political culture and values are transmitted from one generation to the other through the
socialization process. Socialization can be direct or indirect and it is a continuous process lasting
through life. Socialization patterns in a society can be unifying or divisive.
Agencies of political socialization are: the family; educational institutions; religious and esoteric
bodies; mass media; social class and gender movements, interest and professional groups;
political parties; and direct contact with public bureaucratic structures.

VII. Development Approach

A very well-known conceptual approach in Comparative Public Administration is of
'Development Administration' which has been elaborately dealt with in a separate unit. This
approach focuses on certain characteristics of a dynamic administrative system, e.g. goal-
orientation, change-orientation, progressiveness, innovativeness, participation and

Besides, the above, there are a number of other less-known approaches to comparative
administrative analysis. These include "information-energy' model of John Dorsey and decision-
making model of 'Martin Landau. Nevertheless, other models have not been able to match the


comprehensiveness and acceptability of Weber's bureaucratic model, Rigg's prismatic model
and of course, the construct of Development Administration.
It appears that the experimentation phase in model-building in Comparative Public
Administration is not vigorous anymore. However, the enthusiasm for understanding the
varieties of administrative patterns is alive in the scholarship of Public Administration. That is
why, one can hope for newer dimensions of Comparative Public Administration emerging on the
scene in the times to come.

Riggsian Models and their critique

Fredrick W. Riggs
Riggs was born in Kuling, China, a mountain resort on the Yangtze river in Kiangsi province, in
1917. His parents were American missionaries who had arrived in China in 1916 with the intent
of helping peasants improve their farming methods. Riggs observed the transformation of
Western methods at an early age. American agricultural technology did not work in China, given
prevailing conditions at that time. His family, however, did not leave China. The family stayed,
where Riggs' father developed an indigenous approach to agricultural improvement based on
local conditions and tools. In 1935 Fred Riggs came to the United State to study journalism and
political science at the University of Illinois. Graduating in 1938, he elected to stay in school,
enrolling at the Fletcher School of Law and Diplomacy. He received his master's degree from the
Fletcher School in 1941 and, after wartime public service assignments, completed his doctorate
in political science with a specialization in international relations from Columbia University. He
wrote his dissertation (published as a book in 1950) on the repeal of the Chinese Exclusion Acts.
In 1951 he took a position with the Public Administration Clearing House in New York, as an
assistant to Rowland Egger. Riggs was deeply suspicious of what he found. Virtually all of
American public administration was deeply narcissistic: it idealized our administrative practices
as though they had evolved independently without counterparts elsewhere, and offered
universally relevant answers to the problems confronting the new states emerging around the
world. In 1955-56, Riggs team-taught one of the first graduate seminars on comparative public
administration as a visiting professor at Yale University. He authored various articles and three
books The Ecology of Public Administration (1961), Administration in Developing Countries:
The Theory of Prismatic Society(1964), and Thailand: The Modernization of a Bureaucratic

Fredrick W. Riggs’ Theory of Prismatic Society

Fredrick Riggs is a foremost model-builder in comparative public administration. Rigg’s book
“Administration in Developing Countries: The theory of prismatic society (1964)” continues to
be probably the most notable single contribution in comparative public administration. Riggs
constructed his two ideal models (theoretical models) to explain the administrative systems in a
comparative context, These are:
1. Agraria-industrial model
2. Fused-prismatic-diffracted model



Agraria-Industrial Model
Riggs developed the Argaria-industrial model in 1956. This model distinguished between three
types of societies:
a) Agrarian society: This society is characterised by domination of agriculture.
Occupational pattern is fixed and is hereditary. Society is differentiated along the lines of
caste or similar category. Administrative structures are not well developed and their
functions are also not well defined. Social mobility is very limited and communities are
usually self sufficient units which exist through mutual cooperation.e.g.China (Imperial
b) Industrial society: This society is characterised by domination of Industry.
Administrative structures are well developed and their functions are also well defined. The
norms are universalistic and society places great value on individual achievements. Social
mobility is very high. Social differentiation is based on class but prevalence of values of
justice, equality and liberty. E.g. USA
c) Transitional society: It has the characteristics of both of the above societies.
This society is transition between the Agrarian and Industrial society and has features of
both. It is on the path to become a developed society from an agricultural society. Examples
are India, Thailand, etc.
According to Riggs, all societies move from an agrarian stage to an industrial stage, a view which
is similar to Rostow’s stages of economic growth. He identified the structural features of these
two societies as shown :

S/N Agrarian Industrial

1 Ascriptive values Achievement values

2 Particularistic norms Universalistic norms

3 Diffused patterns Specific patterns

4 Stable local groups and limited High degree of social and spatial mobility

5 Simple and stable occupational Well developed occupational system


6 Differential stratification system Egalitarian class system - i.e., prevalence of

associations which are functionally specific
and non-ascriptive

As you can see from Table above, the agrarian society is a traditional society that is basically
primitive and unstable while the industrial society is a stable society with a well- developed
economic and political system.


The Agrarian-Industrial model was however not free from criticism from scholars. The model
was criticized for the following reasons:
1. It does not provide enough mechanism to study mixed societies - i.e., societies that have
both agrarian and industrial features.
2. It does not examine transitional societies such as ours.
3. The agrarian-industrial model as postulated by Riggs was also too abstract with little
resemblance to concrete reality.
It is in the light of the above criticisms that Riggs abandoned this model and came up with the
fused-prismatic-diffracted model.

Fused-Prismatic-Diffracted Model
Riggs approached the understanding of administration through systems approach where a
system is understood through understanding of its component because a system is made up of
several components (sub systems) integrated together. He took the global system as a starting
point and proposed his ideal models. These models are hypothetical and attempt to explain the
pre-historic, developing and developing society. Here he uses the analogy of a ray of light
passing through prism (as shown in the diagram above) to explain societies/social systems at
different stages of development. Each stage is characterized by different sets of structures and
functions and based on whether they are fused or highly differentiated he has classified them as
under. He uses the structural functional approach i.e. what kinds of functions these structures
The fused-Prismatic-Diffracted model was propounded by Riggs as a response to criticism
leveled against the agrarian-industrial model.
Riggs offered his prismatic model (as an attempt to conceptualise developing countries) based
on the metaphor of a prism. When white light (that is, light made up of all visible wavelengths)
passes (fused) through a prism, it is diffracted, broken into a variety of colors—a rainbow.
The fused-prismatic-diffracted model represents the undeveloped, developing and developed
societies respectively. According to Riggs, traditional agricultural and folk societies (agrarian)
represent the fused model and modern industrial societies represent the refracted model. The
former is functionally diffused while the latter is functionally specific; i.e., the structure
performs limited functions. In between these two polar extremes comes the prismatic society.



The prismatic society is a traditional society and hence combines the features of both the
agrarian and industrial societies as you can see in Table below.

S/N Fused Prismatic Diffracted

1 Ascription Attainment Achievement

2 Particularism Selectivism Universalism

3 Functional diffusion Poly-functionalism Functional-specific

1. Fused Model- according to Riggs a society is said to be fused when-

 It is heavily dependent on agriculture.
 Doesn’t have a strong monetary system in place and is economy is dependent on barter
 The head of the system is a king and the system is hereditary. The office of the king and
officials nominated by the king carry out all administrative, economic and other
 The loyalty to king decides social status
 Society places greater importance on ascription
 The structures and the functions are not clearly delineated. So many functions are
performed by single structures and some structures have only very specific functions
(e.g. Religious functions could be performed only by priestly class)
Riggs studied Imperial China and pre-revolutionary Thailand to understand this model. He
found out that in these societies royal families played a vital role and controlled majority of
important functions. Society was governed by traditions, customs and age old belief systems.
The administration was controlled by the royal family and certain section of the population and
aimed at their welfare rather than the welfare of the masses in general
2. Diffracted Model: It is opposite of a fused society. A society is said to be diffracted
 Each structure carries out distinct functions.
 Highly developed monetary system. Economy is based on market mechanism and is
guided by the rule of demand and supply
 Society places greater value on individual achievements.
 The system of governance is people centric and non hereditary therefore instituting a
responsive government
 The state is a welfare state and there is a push for general level of well being among all.
Thereby promoting egalitarian measures of development

3. Prismatic Model: This is a mixed model and a model which characterises all the
developing societies. It has the following characteristics:
 Society has attained a certain degree of differentiation or specialisation through the
process of growth and development.


 Society is marked by heterogeneity - different kinds of system and value orientations
exist simultaneously is somewhat uneasy cohesion. For instance- different health care
practises rural and urban values and cultures, western and traditional education
 Bureaucracy enjoys a special status and enormous influence.
 Differences along religious and communal lines warrants special treatments for select
groups (minority) which poses challenge to administration.
 Very high degree of Formalism i.e. adherence to prescribed forms exists.
 Discrepancy between formally prescribed norms and and effectively practiced norms.
 Lack of commitment on the part of govt. For effective implementation of programme
 Uneasy coexistence of differentiated structures with undifferentiated ones in this society.
So modern social structures are created, but traditional social structures continue to
exist and dominate. This is best reflected in the political liaisons and agenda. Example
India, Thailand.

Sub-systems of the prismatic model: Sala model

Since Riggs was mainly concerned with how administrative systems interact with their
environment, he constructed the prismatic-Sala model . Prismatic represents
transitional society and Sala represents the administrative sub-systems with the following
1. Heterogeneity: A prismatic society has a high degree of heterogeneity; that is, a
simultaneous presence, side by side, of quite different kinds of systems, practices and
viewpoints. The Sala (administrative sub system) is also heterogeneous as it combines the
elements of fused society and bureaucracy of a diffracted society.
2. Formalism: A prismatic society has a high degree of formalism. That is, a degree of
discrepancy or incongruence between the formally prescribed and the effectively practiced,
between norms and realities. In short, it refers to the gap between theory and practice.
3. Overlapping: Overlapping in Sala refers to what is described as administrative
behaviour but which is actually determined by non-administrative criteria which include:
a) Nepotism: In recruitments, appointments, promotions, award of contracts etc. in
Nigeria, these are some of the problems affecting administrative development. It is in
view of these that the budget procurement and contract award office (due process) was
established in 2003 to check contract scams.
b) Polynormativism: In a Sala administrative system, there exist traditional and
modern norms, thus leading to lack of consensus on norms of behaviour. Riggs called
them ‘Clects’ ie; club plus sect. The consequence is that there would be no set of
standards in the system. The implication is efficiency and effectiveness would be stifled.
c) Polycommunalism: Under the Sala administrative system as propounded by
Riggs in the polycommunal system, there exist ethnic and religious groups competing in
a hostile environment. The consequence of such interaction is administrative and
political instability because of the conflict that such interaction would spawn.
d) Bazaar-canteen model : This has both the features of traditional and
modern economic systems. Such a system encourages fluctuation in market prices and
inconsistencies in government policies.


The model is the economic system of prismatic society. Riggs proposed this model to
understand the system economic transactions in a prismatic society. It is characterised by
the following :
 Elements of both systems- market factors of demand and supply as well as traditional
factors like religious, social, family values determine the economic transaction.
 Since it has both types of economy it is difficult to determine price of commodities which
worsens economic conditions and promotes black marketing, hoarding, adulteration etc.
 Economy is controlled by a small section of people
 Since it is difficult to determine prices commodity the price of services vary from place to
place and there is no uniformity
 The economic system favours the privileged class whereas the under privileged class is
always at the receiving end
 Equal pay for equal work doesn’t exist. People are often paid according to their
qualification and position in the job hierarchy. So people with specialized skills requiring
higher educational attainments like doctors are paid more than the ones who are less

e) Authority verses control: A Sala prismatic society has an unbalanced

polity in which administrators dominate the politico-administrative system.

Change in a prismatic society

According to Riggs, the pace of development in any society is related mainly to the sources of
change. The western societies were able to adjust their effective behaviour gradually to the
evolving behaviour since they had relatively long time span for their development.
Consequently, these societies experience less heterogeneity, formalism and overlapping than the
contemporary developing (transitional) societies.
In a prismatic society, the pressure for change is external as well as internal. When it is external,
it is called 'exo-genous' change and when internal, it is called 'endo-genous' change. Further,
when the change is caused by both external and internal pressures, it is called 'equi-genetic
change'. Riggs stated that greater heterogeneity, formalism and overlapping are likely to exist in
an 'exo-prismatic' society (the society where the pressure for change is primarily external) than
in an 'endo-prismatic' society (the society where the pressure for change is primarily internal).
The reason is that in an 'endo-prismatic' society change, effective behaviour precedes the
establishment of new formal institutions, while in an 'exo-genetic' change the sequence is
reversed. The prismatic (transitional) societies face the problems of greater heterogeneity,
formalism and overlapping in their bid to absorb the externally induced change in the shortest
possible time.

Revised Prismatic Theory

In his book Prismatic Society Revisited (1973), Riggs revised his prismatic theory. In his new
formulation he replaced the 'one dimensional approach' (i.e., differentiation) with 'two
dimensional approach' (i.e., into differentiation and integration). He further sub-divided the two
basic diffracted and prismatic societal model into finer types on the basis of degree of
integration. Thus, he reconceptualised diffracted societies as 'eo-diffracted'. 'ortho-diffracted'


and 'neo-diffracted' and prismatic societies as 'eo-prismatic', ortho-prismatic and 'neo-

Criticism of Riggs' model:

 Usage of new words to explain concepts: It has highly technical description and he also gave
new meaning to existing words which can potentially create confusion. He borrowed terms
from physical science, however mere scientific words can’t make a discipline scientific
 Prismatic and SALA models are ideal models. They lack ways to measure the level of
diffraction in prismatic or diffracted society. It is difficult to identify the level of
differentiation and integration in these societies for development
 Diffracted society is also a static society and in equilibrium which is not always the case.
Social systems are dynamic in nature.
 Each society has elements of others for e.g. overlapping as a phenomenon is not specific to
prismatic society. It is visible even in diffracted society as well.
 Prismatic model is made to appear to be negative in character. The truth is that values of
good and bad are relative terms.

1) There is high degree of task specialization. There are a large number of specific
administrative structures each specialized for particular purpose-agricultural, transport,
regulatory, defense, budgetary, personnel, public relations, planning etc. Moreover, a set of
political structure - parties, elections, parliaments, chief executives and cabinets are
designed to formulate the rules and lay down the targets which the administrative structures
then implement. In Rigg‘s view this is highly differentiated political system.
2) The roles are assigned according to the personal achievements of individuals rather than
according to family status or social class. This system ranks high in terms of universalism
and achievement orientation.
3) Developed political system consists of formal political structures in which control is
exercised in conformity with a formula or a pattern which is laid down. The making of
political decision becomes the duty of politicians, administrative decisions of administrators.
Political decisions and legal judgements are made according to secular standards of
rationality. Traditional elites (tribal or religious) have lost any real power to affect major
governmental decisions.
4) Government activity extends over a wide range of public and personal affairs.
5) Popular interest and involvement in public affairs is widespread. A high degree of
politicization has taken place, so the population is mobilized for intensive participation in
decision making and executing processes.


6) The occupants of political or governmental leadership positions are widely viewed as
legitimate holders of those positions, and change of leadership occurs according to
prescribed and orderly procedures.

The general attributes of public administration in developing countries especially those
attributes defined by Fred Riggs as characterizing transitional systems seeking modernization
1) Overlap and heterogeneity : The administrative system in a developing country gives an
illusory impression of autonomy, whereas in fact it is deeply enmeshed in and cross-
influenced by remnant of older traditional social, economic, religious, and political systems.
Thus, to understand public administration in a heterogeneous social system, one must also
study ―overlapping‖ interrelationships.
2) Formalism : Forms in developing countries do not always represent reality. Laws passed by
legislators are not enforced by the administration, necessitating more rules, which remain as
formalistic as the previous ones.
3) Diffusion : This is an attribute of a low level of differentiation (or no differentiation) of
administrative structures and functions: Everybody is doing everything. The opposite of
diffusion—as used by Riggs—is diffraction, where structures of the system are specific and
perform particular functions. Here, the system becomes differentiated, and the processes are
universal and achievementoriented. Thus, diffusion is low differentiation—a characteristic of
4) Particularism and ascription : Administration in developing countries tends to apply rules
variably according to family connections, wealth, and influence rather than uniformly
according to universal rule.

Politics and administration in

dissimilar countries


1 Type Of Constitution Unwritten & Written & Written & Rigid

Flexible Most Rigid

2 Nature Of State Unitary & Federal & Unitary & Republic

Monarchy Republic

3 Type Of Legislature Bicarmel Bicarmel Bicarmel

4 Model Of Bureau Weberian Weberian Weberian



5 Redressal Of Parliamentary NA Administrative Courts

Grievence Commissioner

6 Judicial Review Absent Present Absent

7 Type Of Government Parliamentary Presidential Quasi-Presidential

8 Head Of State King/Queen President President

9 Nature Of Franchise Universal Universal Universal Adult Franchise

Adult Adult
Franchise Franchise

10 Government Executive Legislature Executive

Regulated By

11 Citizenship Single Double Single

12 Basic Administration Ministry Executive Ministry

Unit Department

13 More Powerful Lower House Upper House Lower House


14 Top Local Tier County County Department

15 Top Local Chief County County Prefect

Executive Chairman Chairman

16 Autonomy Of Local Less More No Autonomy


17 Major Political Conservative & Democratic & Communist,Socialist,Movement

Parties Labor Republic Republican Populaire & Union
For New Republic

18 Political Order Liberal Liberal Liberal Democracy

Democracy Democracy

19 Party System 2 Party 2 Party Multi Party

20 Type Of Planning Capitalistic Capitalistic Capitalistic

21 Financial Year April-March July-June Jan-Dec

22 Budget Type Single Budget Single Plural

23 Central Planning NA Economic Planning Comissionarate

Agency Advisory




24 Central Financial Treasury Office Of Ministry Of Finance & Economy

Agency Management
& Budget

25 Central Auditing CAG Comptroller Court Of Accounts

Agency General

26 Central Personal Treasury & Office Of Central Civil Service Directorate

Agency Office The Personnel
Minister For Management
Civil Service (OPM)

27 Central Training Civil Service No Central Ecole National’d

Agency College Agency Administration

28 Central Recruitment Civil Service Office Of Ecole National’d

Agency Commission Personnel Administration

29 Historical Basis Of Patronage Spoil System System Of State & Offices

Recruitment System

30 Recruitment Merit System Merit System, Merit System

Spoil System

31 Political Rights Restricted- Restricted Enjoyed

Higher Level
Lower Level

32 Right To Strike Not Denied Legally Legally Permitted

Legally Denied

33 Right To Association Given Given Given

34 Retirement Age 60-65 65-70 60

35 Type Of Rank Position Rank


Decline of CPA


The beginning of the 1970s saw the decline of the comparative public administration. In 1971,
the Ford Foundation terminated its finical support to the CAG. In 1973, the CAG itself was
disbanded and merged with the International Committed of the American Society for Public
Administration to form a new Section on International and Comparative Administration (SICA).
Its major journal The Journal of Comparative Administration ceased to publish from 1974, after
five years of existence. Its legacies were absorbed into the larger field of political science and
public administration. On failure of comparative public administration, Robert T. Golembiewski
said, “Public administration should take full notice of the fact that comparative administrations
failure rests substantially on a self-imposed failure experience. It set an unattainable goal, that
is, in its early and persisting choice to seek a comprehensive theory or model in terms of which
to define itself “. Similarly, Peter Savage, who served as the editor of The Journal of Comparative
Administration (published for a five-year period from 1969 to 1974), observed, “Comparative
administration started with no paradigm of its own and developed none.”

Revival Movement of CPA

 In early 1980s, a number of scholars started a movement for revival of comparative public
administration. They made efforts to arrest the downward trend of the field and to give a
fresh life to it. These scholars included Ferrel Heady, Charles T. Goodsell, Jung S. Jun,
Milton Esman, G.E Caiden, Naomi Caiden, and others. Ferrel Heady, who spearheaded the
resurrection attempts, emphasized: “At this juncture, what comparative public
administration needs is not prolonged post mortem of the past contributions but vigorous
pursuit of attractive new opportunities.
 Charles T. Goodsell in his article entitled “The New Comparative Administration: A Proposal
“ (1981) recommended that the scope of comparative public administrative should be
extended to cover comparisons at supra-national and sub-national levels of analysis. To him,
it should embrace all studies of administrative phenomena where the comparative method
in some guise is explicitly employed.
 According to Jong S. Jun, the comparative public administration did not deal with
comparison of methods and strategies of organisation change and organisational
development in a cross-cultural context. Hence, he suggested that the revival in comparative
studies must incorporate these aspects.

After the decline of the comparative administration group (CAG) in the early 1970's,there was a
lull in this field due to several factors like theoretical and fact based revise was only done and so
there was problem in the applicability of those models and USA was going through a bad stage
in the Vietnamese war and so funds had to be diverted, etc. Though, it got a boost once again
when scholars like Robert Dahl, James Cloeman, Rapheli, Dwight Waldo etc propagated it and


stated that without comparison there can never be a science of administration. Also the
behavioral school of thought was bringing in a lot of attention to the fact and value theories of
administrative man and so comparative public administration saw a resurgence. In the 80's and
90's studies in CPA resurfaced but with a new objective, philosophy and orientation than its
previous precursors and counterparts. It started to revise several arrangements like RTI, Rule of
Law, good governance, etc in dissimilar countries. It has recently started focusing itself on the
analysis of such operations of administrative systems which affect functioning of several
societies. The following could be seen as the recent trends in the studies of Comparative Public
 Learning the status of human rights in the nations of the troubles associated with human
 Learning the status of Rule of Law and analyzing the barriers if any.
 Learning the attendance of Civil Society Institutions and their role and contribution in the
administrative arrangements of societies.
 Learning the stage of participation and involvement in the implementation of schemes
related to welfare of people.
 Learning the attendance of arrangements through which accountability of politicians and
administrators could be ensured towards the public through the mechanisms prescribed and
accessible like RTI, Citizens charters, Ombudsman, Social Audit, etc.




Development is an ever changing and dynamic concept. The shapes and dimensions of
development have taken multiple twist and turns since the beginning of civilisation. Some
defined it in terms of increase in national economy, while others incorporate social
improvement and still others think of it in terms of increase in the capacity of a political system.
There are also others who make no distinction between development and modernisation. Then
in the context of public administration, we read about ‘development administration’ and
‘administrative development’. Thus, development is a complex phenomenon comprising many
dimensions- social, political, economic, and administrative and so on .
Development can be defined as a process of directed change towards some objectives which are
accepted as desirable goals. It implies progressive improvements in the living conditions and
quality of life, expanding choices, freedom and dignity which are enjoyed by the society and
shared by its members. It means the continual improvement of the quality of human life.
Development to be meaningful must benefit all sections of the population through redistribution
or equitable distribution of income among different strata of the population. Development is a
process of change which takes place in a society when the social, political, economic and cultural
conditions are favourable for such a change. That is why development is defined ‘intra-
contractually’, that is, in terms of each individual country and according to its own perceived
needs, wants and aspirations.

In as much as the post-War era was a period characterized by heightened confidence in the
developmental power of economic and administrative systems and techniques of Western
origin, it was also a time of intellectual optimism. Besides scholarly interest and curiosity among
Western researchers and academics in so-called ‘traditional’ or transitional societies, Cold War
political considerations came into play in the sense that newly-independent Third-World
countries created a grey area of competition for spheres of influence by the then super-powers,
namely, the USA and USSR. Last but by no means least, Third World countries, in the aftermath
of World War II, presented an ideal environment for the pursuit of economic interests, including
the desire to secure economic advantages by the developed countries and multi-national
corporations (MNCs), mainly from the West. Development administration emerged against a
backdrop of the realization that governments and their bureaucracies in less developed
countries needed to be recreated, renewed and revitalized in order to bring about the
development that is required in the transformation of societies (Gant, 1979).


The term ‘development administration’ was first coined by Goswami in 1955, however, the
Comparative Administration Group of the American Society for Public Administration and
Committee on Comparative Politics of Social Research Council of the U.S.A laid its intellectual
foundations. 6 Development Administration emerged after the Second World War in the wake
of the decolonization of Third World countries and was based on ‘modernization’ paradigm to
develop these countries along the capitalist lines.
Edward W. Weidner, “development administration is concerned with maximizing
innovation for development.”
Fred W. Riggs, “organised efforts to carry out programmes or projects thought by those
involved to serve developmental objectives”
Donald C. Stones, “development administration is concerned with the formulation
and implementation of four P’sPlans, Programmes, Policies and Projects.”


The dominant premise of development administration is that there are significant and
fundamental differences between the administrative process in less developed countries and
public administration in developed countries. In many respects, the notion of development
administration questions the relevance of classical or traditional systems, concepts and methods
of public administration to the demands and challenges of development in less developed
countries. The argument is that, having evolved from the experience of Western developed
countries, traditional or classical administrative systems, concepts and methods of public
administration were not designed to be responsive to the challenges of socio-economic
development in the Third World.
In fact, it was Fred Riggs who, in the early 1960s, formulated a theoretical framework known as
the ‘ecology of public administration’. Rigg’s theory held the view that public organizations, in
order to better serve administrative and development goals, must conform to their socio-
economic and political environment. In other words, they must be ‘innovative’ rather than
‘imitative’ of foreign or Western models of administration. In part, Rigg’s theoretical framework
recognizes the fact that organizations and public administration in particular do not operate or
exist in a vacuum or in isolation but, instead, impact on and, in turn, are affected by the
immediate environment around them.

 Decentralization - As a resource as well as beneficiaries of development, people must be
perceived as key stakeholders and active participants in the development process.
 Innovation - The novel nature of the problems and challenges facing less developed
countries demands that administrative organizations and institutions be structured in
accordance with ecological or environmental factors and or variables.
 Experimentation - the road to development in less developed countries lies in experimenting
and learning from the lessons of experience. What this means is that there are many
different paths and or destinations in the development challenge, such that the development


process is not unilinear in the sense of being characterized by stages through all countries
must pass, as argued by the American economic historian W.W. Rostow.
 Government intervention - The dynamics of development administration are such that the
role of government is crucial in the design, formulation and administration of development
programmes and projects. It is in this context that the concept of the ‘administrative state’
 Development Administration - it refers to the administration of development programs, to
the methods used by large-scale organization, notably governments to implement policies
and plans designed to meet their developmental objectives.
 Administrative development - Administrative reform, the establishment of new
organizations, the restructuring of existing ones and other administrative improvements can
all be subsumed under administrative development. To this end, public organizations and
institutions must be recreated and restructured to be able to adequately respond to the
developmental needs and aspirations of the vast majority of the people.

In the literature, the term “development administration” has been used in two interrelated
senses – administration of development(Development Administration) and
development of administration(Administrative development) . According to Fred W.
Riggs, “the reciprocal relatedness of these two sides involves a chicken and egg type of
causation. Administration cannot normally be improved very much without changes
in the environmental constraints (the infrastructure) that hamper its effectiveness;
and the environment itself cannot be changed unless the administration of
developmental programmes is strengthened.”

 Goal oriented - It is result oriented that pertain to social,economic,political and cultural

goals(including technological) which are progressive in nature.
 Effective integration - Effective integration among groups and authorities involved while
achieving development goals both at the small and big level.
 Responsiveness - Fulfilling the needs of people and responding to the demands and needs of
society are its top priorities.

Development administration, as a distinct approach to the management of public affairs under
extremely difficult circumstances, such as those that are prevalent in Third World countries,


first gained popularity and wide-spread appeal during its heydays in the 1950s and 1960s.
During period, there also emerged the Development Administration Group (DAG) of the
American Society for Public Administration (ASPA) which was a think-tank that occasionally
conceptualized about development, the administration of public affairs and its challenges in less
developed countries. Specifically, the DAG was a group of scholars, intellectuals, researchers and
policy-makers who took an active interest in development and its challenges in the Third World.
In terms of membership, the DAG was made up of such academic and intellectual heavyweights
as Fred Riggs, William Siffin, Milton Esman, Dwight Waldo, Samuel Huntington, Lucian Pye
and other notable scholars.
These intellectual pioneers, together with U.S.A. policy-makers, under the eigies of DAG, were
mainly involved in technical assistance for public administration. To this end, they exported, to
the Third World, a number of planning and administrative techniques, such as planning,
programming and budgetary systems (PPBS), zero-based budgeting (ZBB) and other tools and
or instruments of decision-making. However, despite earlier enthusiasm and vigour, the
development administration movement began to show serious cracks and eventually collapsed
in the late 1970s, an era that was characterized by some kind of intellectual depression and
general disillusionment. For instance, instead of developing, many less developed countries
slipped further down the abyss of poverty and underdevelopment. Earlier emphasis on
industrialization and urbanization, as cornerstones of the development process, led to no
trickle-down effect. Furthermore, growth in the Gross National Product (GNP) per capita
occurred but at the expense of income distribution which remained skewed and or lop-sided.
Violence, coups and other forms of unrest dominated the socioeconomic and political landscape
in the Third World in general and African countries in particular.


 The collapse of the development administration edifice can be attributed to a number of
reasons, chief among which was the fact that the movement suffered from many of the
simplistic assumptions of the theories of development. In other words, the general
disillusionment with Western theories of development, represented by the Rostowian thesis
and the Harrod Domar model, affected thinking in development administration.

The crux of the Rostowian strand of thinking was that development must be viewed in terms of
a series of progressive stages through which all countries or societies must pass, such
as traditional society, pre-conditions for take-off, self-sustaining growth, drive to
economic maturity, and finally, the age of high mass consumption.

Closely related to the Rostowian stages of growth theory is the Harrod Domar model which
argued that the more economies save and invest a certain portion of their GNP, the
more rapid they grow in economic terms. The cornerstone of the Harrod Domar model
is the capital/output ratio which addresses issues of the amount of capital required to
produce a certain level of output by an economy.
 Another factor behind the collapse of the development administration movement was its
being closely intertwined with the foreign aid/technical assistance nexus and or relationship.
It will be recalled that at the height of the Cold War and heightened tensions between the
then superpowers, foreign aid was, more often than not, used for military and political
rather than developmental purposes


 In some less developed countries, ruling elites are preoccupied with the relentless pursuit of
their own self-interest and, in particular, the preservation of the status-quo or prevailing
socio-economic and political order, from which they benefit handsomely.
 Moreover, the development administration movement adopted a micro rather than a macro
perspective in the analysis of the nature and dynamics of poverty and underdevelopment.
Put differently, it failed to analyze and understand poverty and underdevelopment within
the wider context of the international economic system of which Third World countries are
an integral part. These and other arguments, such as dependency theory, are buttressed by
the phenomenon of globalization with all the challenges it poses for less developed countries.
 In as much as conceptualization within the development administration movement was
influenced, largely, by ideas originating from traditional economic theory, with its emphasis
on growth in GNP per capita as a measure of the development process, thinking within the
movement was also influenced by the spectacular success and experience of the Marshall
Plan. In other words, lessons from Marshall Aid to countries of Western Europe in the
immediate post-War period were used to justify the flow of foreign aid and technical
assistance to Third World countries. Accordingly, the Marshall Plan was used as a standard
‘model’ for development in that it influenced other aid programmes to the Third World, such
as the Truman Doctrine, Point Four and many others. Unfortunately, no one came to the
realization that the socio-economic and political environment in Western Europe after
World War II was significantly different from that of less developed countries.
 Closely related to the foregoing is the view that development administration was not as
effective as originally intended because it was dominated by the stereotyped views of
Western scholars. The latter, in their conceptualization, did not examine alternative
perspectives on the causes of poverty and underdevelopment in the Third World.

 One of the contributions of development administration was its success in highlighting the
nature, extent and or dimensions of poverty and underdevelopment in the Third World
 Highlighted the inappropriateness of many of the implicit assumptions of Western economic
theory for practical conditions in these countries. Aligned to these lessons of experience is
the fact that development administration brought to the fore the complexities of the
development process and the fact that the latter goes beyond mere economic considerations,
such as increases in per capita GNP.
 Not only did the collapse of the development administration movement dispel the
assumption that the history of the West, in terms of development, would be repeated in less
developed countries but also shattered the view that the road to development in these
countries lay in foreign aid, technical assistance and a revitalized administrative apparatus.
 Last but by no means least, development administration, as an approach to the management
of change or planned change under extremely difficult or challenging circumstances,
sharpened the realization, on the part of governments throughout the world, that
development cannot be automatic but, instead, should be deliberately induced or brought
about. Those that came up with the notion of ‘administration development’ argued that,
closely related to the concept of development administration, the former refers to a


systematic attempt to influence the nature and direction of development through the
administrative process. This definition immediately brings into the academic or intellectual
terrain another equally important concept that has dominated discussion and debate in
recent years, that is, the notion of a ‘developmental state’.


In view of the fact that the concept of the development state is relatively new and is, therefore, a
subject of intense debate and or discussion among academics, policy-makers, politicians and
members of civil society, there is lack of broad based agreement on its precise definition and or
meaning. However, common understanding has emerged to the effect that Third World
countries in general will be unable to overcome the monumental challenges of reducing hunger
and poverty, inequality and unemployment, as well as deliver goods and services to the vast
majority of their people in the absence of a developmental state that is capable of actively and
purposefully intervening in the economy
In terms of origin, the concept of a developmental state is closely associated with Chalmers
Johnson, whose analysis of Japan’s rapid and highly successful postwar reconstruction,
industrialization and development revealed that the country’s remarkable and historically
unparalleled socio-economic renaissance was the culmination of the efforts of state-led
developmentalism .
Definitionally, a developmental state can be regarded as one that is committed to influence the
nature, direction and pace of economic development by directly intervening in the process,
rather than relying on the unco-ordinated influence of market forces to allocate economic
resources (Beeson, 2005)


 through direct state involvement that an economy will become globally competitive, promote
investment and subsequently achieve high economic growth.
 ability to promote sustained human centred development and equitable growth
 transform into a knowledge based economy will largely be dependent on the existence of a
developmental state that promotes technological and social innovations and takes measures
to enhance the human capabilities of its people


 Although the phenomenal nature of Japan’s socio-economic transformation and its
emulation across the region, with varying degrees of success and to differing extents, by a
number of Asian countries is unquestionable, some observers have drawn attention to the
impact of external geo-political factors in the success of developmental states, particularly in
Japan, Taiwan and South Korea.
 one of the most important preconditions for an effective developmental state is state
capacity or the ability of a government not only to formulate but also, and much more
significantly, implement development policies, programs and projects.


 Closely related to state capacity to formulate and implement developmental policies, is the
existence of an efficient and or competent civilian bureaucracy. Herein lies the significance
of administrative reforms, designed to create capacity within the state bureaucracy in order
to enhance its role in the development process. There is, therefore, no doubt that the
existence of a development-oriented bureaucracy is one of the basic requirements of success
for a developmental state, including the availability of public servants who are not only
sufficiently trained, educated, skilled as well as appropriately experienced but are the
embodiment of relevant attitudes towards the development process.
 an effective relationship between the state and a vibrant domestic business class that will be
the cornerstone on developmental initiatives . Not only were contacts between ‘the state’ and
big business in Japan regular and institutionalized in corporatist-style arrangements that
allowed precisely the sort of interaction, monitoring and feedback that (is) considered
crucial for effective development, but such relationships were further cemented when former
public servants joined private sector companies upon retirement


Concomitant with the development state is the need for the existence of a highly efficient,
competent and development-oriented bureaucracy committed to the formulation and
implementation of a planned process of economic development .
Since bureaucracy as a system of government has come to stay in almost all countries and
certainly in India, it is only to be expected that the bureaucratic phenomenon will grow in
coming years .More & more State activities which are on the anvil , will inevitably see the
burgeoning of the bureaucracy in the fields which have traditionally been outside the purview of
the governmental system .From all evidence of the recent history of India every new state
activity seems inexorably to lead to greater bureaucratic growth and consequently
bureaucratization .
The experience of the post planning period in India clearly demonstrates that the developmental
process can be greatly accelerated through state action.
The problem of development seems ultimately to hinge upon management , especially how the
process of development is conceived, handled ,and administered .This poses the basic problems
to development management. On the one hand development in countries like India sees the
almost inevitable growth of bureaucracy as the sole instrument of state policy .On the other
hand , bureaucracy also develops a stranglehold on the developmental process and it adjusts this
process to suit its own pace and liking whether it meets the needs of a country like India which is
primarily interested in accelerating development or not .


The essential values of bureaucracy are In contrast democracy is built around almost
hierarchy, status, secrecy, specialization, rules diametrically opposite values of egalitarianism,
and an unflinching obedience to authority. non-hierarchism, open discussions, and above



all dissent

The guiding principle of bureaucracy is The guiding principle of democracy is popular

rationality which, in essence , means efficiency will

At the same time there are almost no examples to show democratic institutions as instruments
of implementation or actual day-to-day management. All democracies have therefore ,had to fall
back upon bureaucracies as their principal instruments for getting things done .This is what
Peter Blau calls paradox ie, necessary coexistence of democratic and bureaucratic institutions .

INDIAN BUREAUCRACY – Weberian or Modified ?

To an extent changes have indeed been made in the bureaucratic apparatus in India .But these
changes have been within existing framework , and atleast Indian bureaucracy basically wears
the looks of the classical Weberian model both structurally and behaviourally .


While we did find a significant level of incompatibility between bureaucratic values and
developmental values, the research shows contradicting results.
As bureaucracy came face to face with developmental tasks – especially tasks requiring peoples
participation and involvement – bureaucratic norms and values began to undergo
metamorphosis. There was a marked and percentible trend towards lessening the rigours of the
structural and behavioural patterns of bureaucracy. In other words the bureaucracy showed
signs of dynamic institution.
It was perhaps a crucial finding that developmental bureaucracies which are more at the
“receiving end” ie; those requiring citizen cooperation for bureaucratic performance rather than
at the “giving end’ ie; the civil service dishing out favours, permits etc….tend to get structurally
less rigid and behaviorally more responsive .The whole “gestalt” of the bureaucracy gets altered
and the concerns begins to shift, undoubtedly through through necessity to meet the needs of
the people rather than that of the bureaucracy itself. This holds out the prospect that even the
traditional bureaucratic organizations such as the ones in India are not beyond hope. More so
since the kind of transformation that has taken place thus far in different bureaucratic
organizations is entirely accidental and not by design – accidental in the sense that the
occurrence is a consequence of something not planned in a systematic manner. A well-planned
adaptation could therefore, yield far greater results.
The incompatibility which we found between the traditional bureaucratic values and values of
development therefore is not entirely a negative conclusion. It only means that while the
classical model may be irrelevant for India, bureaucracy per se is not necessarily so. As an
organizational instrument it can be modified, altered and adapted to meet, atleast to some
extent, the needs of development .


 Transform the present bureaucratic system, atleast at the higher levels, by integrating it with
the political system . That is to say, that the higher bureaucracy would be politicized and key
bureaucratic positions would be manned by cadres of the ruling party so that there is an
active and direct involvement of the political system in the actual implementation of
developmental programmes . It is likely that ruling party will seek to ensure better
performance .
 A variant to the above approach would be to design a bureaucratic system which seeks a
greater involvement of the people in its work programme. One way to do this would be to
develop the Panchayat institutions especially at the grassroot level and help them to develop
as instruments of administration rather than as merely local political institutions. This is
decentralization and devolution of development administration.
 A third alternative would be to identify whatever peoples organizations exist at various levels
and strengthen and support them with a view to enabling them to play a greater and
expanded role in development administration. Several voluntary organizations , sometimes
affiliated to political parties, but quiet often independent of partisan involvement exist with
excellent record of development services to the local community. While on this alternative
special mention should be made of the cooperative sytem .Ex –AMUL milk .
 Fourth alternative could be direct association of citizen clientele with the official agencies at
the key performance levels so that people have a say in programmes directly affecting them.
Ex – People committees
 Excessive division of labour tends to diffuse creative response of the bureaucracy in terms of
essential terms. So, excessive differentiation should be reduced.
 De-hierarchization
 Making bureaucracy result oriented & citizen oriented
 Behavioural characteristics need to change to make bureaucracy less impersonal and
 Designing administrative system where civil servants are at the “receiving end”
 Inculcate task orientation rather than rule orientation

Significance of Bureaucracy as a instrument of

Bureaucracy has become a universal phenomenon. It is a pre-requisite of modernization of every
society. Most developing countries are engaged in the process of nation building and bringing
about rapid socio-economic development. The complexity of such formidable activities
connected with the development enterprise is essentially governments enterprises. Bureaucracy
can contribute immensely to development by serving as an advisor, inventor and decision
It can vitalize administration by building up a social environment emphasizing responsibility by
creating incentives, by encouraging healthy competition and self-development , by organizing
institutional management under competent and progressive leadership and by delegating


authority to lower levels by maximizing development. Bureaucracy constitutes the mechanism
through which the state realizes its purposes. A high degree of bureaucratic competence is
essential to push through speedy development measures.

Role of Bureaucracy as a instrument of development

1. Implementation of Policy : They execute laws and policies to attain the goals of welfare state
that is social equity economic development and so on.
2. Formulation of Policy : They aid and advise the ministers in policy making. Political
executives being amateurs cannot understand the technical complexities of policies and hence
depend upon the expert advice of professional civil servants.
3. Delegated Legislation : This is a quasi legislative function performed by the civil service. Due
to lack of time, pressure of work and increased complexities of legislation the legislative makes
laws in skeleton form and delegate’s power to the executive to fill in the details.
4. Administrative Adjudication : This is a quasie judicial function performed by the civil
service. The civil servants settle disputes between the citizens and the state. For this purpose, the
Administrative Tribunals with judges are established.


 lack of experienced administrators
 lack of highly developed technocrats in specialised fields
 lack of modern management techniques, poor methods adopted in policy-making, planning
and budgeting
 procedural delays
 lack of sufficient discipline and commitment to plans and programme implementation
 Poor direction, coordination and relationships between the generalists and the specialists
 poor organisation of public enterprises, government departments, boards and regulatory
agencies and financial institutions
 need for change in the attitudes, values and motivations of civil servants



 lack of political support to the development programmes and projects, poor finances and
material resources
 delay, inefficiency, corruption, nepotism
 credibility gap between the political and administrative leadership is on the increase
 Absence of satisfactory monitoring system to measure the regulated performance during
implementation of development administration posed as another issue in development

 Poor response of the people
 Lack of participation

Anti Development Thesis

In the second half of the twentieth century many countries got independence from their
colonial masters. In the last fifty years these countries gave special importance to
Development (primarily economic development) to reduce poverty and provide better
standard of living to their people (the goals of development).
Anti-Development Thesis criticizes the development models employed by these countries
to achieve the goals of development. The criticism is centered around the costs of these
development models. The costs include :
 Social costs - Displacement of people due to industrial development etc and the
resultant social tensions.
 Environmental costs - Environmental degradation due to developmental projects like
ports and mining.
 Economic costs - By employing the present development models, the Asian and
African countries are still reeling under external debt.
Though many countries achieved better economic growth, poverty continues to be a
problem in the developing world and world over, the gap between the rich and the poor
has been widening.
So, it calls for :
 A broader notion of development which focus on the overall quality of life of the
people, distribution, satisfaction of basic needs, valuable capabilities and functioning
of the people eg. health, education, life expectancy etc.


 Sustainable Development - Development that meets the needs of the present
generation without compromising the ability of future generations to meet their own


MARKET DEBATE/States, Market
and Development

The interplay between the institutions of the state and market has been the subject of much
political, economic and social debate. As institutions, both have figured prominently in the
discourse around development. The last few decades have witnessed a sharpening of the
debate, focussing on the nexus between a rapidly increasing transnational class of corporate
capitalists and the emergence of a global administrative regime, instrumental in promoting a
model of market led growth. Focussing specifically on the Indian experience, this article
documents the shifts that have taken place regarding the role of the state vis-a-vis the
market in meeting the needs of development.
The Indian experience with development provides an important case study. Predominantly
capitalist in orientation, traces of feudal life still exist in certain parts of the country that
pose a challenge to the democratic norms of modern society.1 Bonded wage labour as
opposed to free employment, small-scale labour intensive manufacturing units vis-a vis
larger and fully automated units of production, the coexistence of a relatively small
organised sector with a massively huge and heterogeneous unorganised sector, are a few
reflections of the complexities involved. It has been estimated that roughly 77 percent of the
total Indian population totalling 836 million people, consist of the poor and vulnerable
segments of the society, living on less than Rs. 20 a day. 2 However, poverty as a condition of
social life is more than just low or inadequate income. It encompasses several other
dimensions such as isolation, vulnerability and powerlessness. Moreover such deprivation is
not natural, or out of bad luck or a matter of choice, but a state of chronic destitution arising
from the absence of the most essential and basic of resources.
It is in this context of unmet needs and wants related to development, that the present
debate over reallocation of responsibilities from the state to the market becomes critical.
What is the criterion for selection of priorities? Who decides how allocations are to be made
between a plethora of civil society actors? How transparent and accountable is the process of
decision-making? All these questions assume importance as the introduction of
liberalisation and privatisation in the name of development over the past two decades have
witnessed a rewriting of the fundamental obligations of the state towards its citizens
especially the poor. The reforms as Corbridge and Harriss put it are not simply about the
renegotiation of India‟s relationships with the global market-place, nor even are they about
the relationships of private capital with the Indian State in the formal economy; the reforms


are in essence also about reworking the idea of the State and its capacity to work on behalf of
those who stand outside the narrow circle of elites.

States, Market and Development - Contextualising

the Discourse
Historically, the word development came into usage in English in mid-seventeenth century
and was used to convey primarily the idea of a society passing through definite evolutionary
stages. The identification of development with industrialisation was inherent, and got
gradually strengthened through time till in the twentieth century the association between the
two was looked upon as perfectly normal. Following the end of the Second World War, with
the emergence of underdevelopment, a word coined to describe the relative condition of the
colonies and ex-colonies vis-a-vis the industrialised group; the dominant notion of
progressive evolution i.e. economies and societies proceed in a set course of “stages of
development”, became firmly established. Each sense of the term underdeveloped connected
with images of poverty-stricken societies, to which the established ideas of development
were applied. Development in such an ethnocentric framework was inevitably equated with
westernisation, producing a discourse that for many represented nothing more than yet
another form of domination and control.
In the present context, the recommended policy reforms are not simply just about accessing
the global market place, or building private-public partnerships, but fundamentally about
reworking the idea of the State. Both the state and the market are amongst the many
institutions that govern the relationship between individuals living in a particular society.
The state having the authority and the legitimate power to exercise coercion shapes the way
the market functions. The market in turn steeped in non-market institutions like caste and
kinship networks relies on these for its sustenance and growth. The organisation of exchange
in a social setting is a mediated process, dependent on a number of interrelated factors.
Markets vary in their openness – a given market is not necessarily open to all potential
buyers and sellers. Differentiation on class, caste and gender play an important role in
determining to a large extent the question of who participates in the market, under what
circumstances and terms.


Historically, the proliferation and consolidation of markets has been very much a function of
politics. As an ideology, neo-liberalism is theoretically rooted in a depoliticised
understanding of development, particularly regarding the role and functioning of markets in
history. The market economy is defined as one based on voluntary cooperation, each
interaction in the vast web of market relationships (what Hayek described as the „extended
order‟ of the marketplace) involves voluntary cooperation, which is the origin of the
market‟s mutual benefits. „No arrangement is imposed by someone else ‟s decree. Rather,
each develops as people follow their self-interest, among participants who often live in vastly
disparate places, speak and write in a multitude of languages and often believe many
different, and sometimes mutually inconsistent, things. And the more competition operates
at each stage, the better the outcome, because the requirement to get others ‟ consent forces
competition into positive channels, generating beneficial results ‟ (Hayek).
The market is interpreted as a spontaneous order that does not engage in the pursuit of any
intentional outcomes. There are no ends in that sense that the market actively seeks to


attain. By implication therefore, there can never be a moral critique of the market in terms of
their supposed injustices. An injustice occurs only when a person intentionally interferes
with the life of another without that person‟s consent. And since there are no „intentional
distribution of resources in a free market economy, poverty and deprivation become more a
matter of misfortune borne out of bad luck than an injustice brought upon by the workings
of the market.
According to Hayek, strictly speaking, only human conduct can be called just or unjust. If we
apply the terms to a state of affairs, they have meaning only in so far as we hold someone
responsible for bringing it about or allowing it to come about. As long as it remains a
spontaneous order, the particular results of the social process cannot be just or unjust. In a
spontaneous order the position of each individual is the resultant of the actions of many
other individuals and nobody has the responsibility or the power to assure that these
separate actions of many will produce a particular result for a certain person. By
implications therefore, the market is in no way responsible for the inequities and
shortcomings that arise by way of its operations.
An abstract categorisation of the market such as the above not only provides a ahistorical
reading of the interface between the political and the economic forces at work, it necessarily
also obscures the politics of who gets what, when and how through the process of


As an institution, the market is largely embedded in the structure and the regulatory
mechanisms of the society wherein which it operates. The existence of slave markets in
ancient Greece and Rome or in the United States prior to the Civil War demonstrates what
Polanyi describes as the complex „double movement‟ through time between institutions of
the State and the proliferation of markets in history. This is plainly visible in the way neo-
liberalism conducts itself in practice. Despite fundamental opposition to the institution of
the State, neo-liberalism has greatly relied on the apparatus of the State, especially its
capacity to exercise coercive powers, to enforce globally its preference for the market
The fundamental convergent proposition on development is the provision of basic needs
such as food, education, health, safe drinking water and shelter to the citizenry. It is also
widely accepted that this task is better and more appropriately performed by public
institutions. This underscores the critical role of the government in the process of economic
Public expenditure is expected to stimulate the factors of production towards effective
utilization of resources, enhancement of the value-adding capacities of the factors of
production and thus generating the process of sustainable growth and development of the
various activities of government such as provision of infrastructure services, the protection
of property rights and taxation policies could affect the level of baseline technology and thus
affects the long-run per capita growth rate.
public services are complementary with the private inputs in the sense that an increase in
government expenditure raises the marginal products of labour and capital to individual
It is assumed that government purchases a portion of private output, which it uses to
provide free public services that is non rival and non excludable.


Adequate provision of basic needs of the society through the state-controlled machinery of
government motivate private investments, which enhance the productivity of the factors of
production and leads to growth and development of the economy.
The state has a great responsibility in creating favourable conditions for the interplay of
societal forces and directing the economic dispensation towards a path of growth and
Given that development is a process not an event, the role of the state is continuous and does
not end at a given level of economic development even though the scope and nature of such
roles may change to reflect the intricate dynamics of society.


The State in an unprecedented move has been privy to its own dissolution through a
deliberate and most calculated dismantling of public services. Beginning with Thatcherism
and Reagonism in the West and then through series of structural adjustment and
stabilisation programmes in the rest of the world, the institution of the State have been
subject to gradual metamorphosis. A change not necessarily borne out of the local, but more
or less brought upon countries at the behest of a small circle of transnational elites,
interested in furthering the process of market expansion for the sake of rapid capital gains.

Development Planning vs. Free Market: The Indian

Narratives on development (political, economic, social and cultural) have been a central and
recurrent theme of the political imagination of India. Whether it be nationalists leaders like
Dadabhai Nauroji who took upon themselves to critique the drain of wealth by the British
capitalists, or statesmen like Nehru espousing a mixed economy comprising of both the public
and the private sectors, or indigenous entrepreneurs like the Tatas, Birlas and Modis , the
engagement with development has been constant. Added to this, the subaltern critique coming
from peasants, workers and tribal movements have been vocal in drawing attention to the
normative aspects of the debate, on the persistence of exploitative practices and the inequities
that characterise the development process. In comparison with other erstwhile colonies in
Africa, Asia or South America, the Indian experience offers some unique and interesting points
of view on some of the important aspects of development. For instance, the interrelationship
between development and growth, development as progress, democracy and development,
development and rights. Equally influenced by the Soviet model of socialist
planning and Keynesian welfarism and the resultant model of mixed economy, throws up many
interesting insights both from the point of view of theory and practice, of capitalist development
and exchange.


Historically the formal end of two hundred years of colonial rule in August 1947, presented a
significant opportunity for social and economic transformation. From 1757, the year the East
India Company established its control over Bengal till the very last years of colonial rule, India


remained a prized possession of the British.4 An ideology of “paternalistic benevolence,
occasionally combined with talk of trusteeship and training towards self-government”, thinly
veiled the realities of the Raj. 5 The unsatisfactory diffusion and denial of the accrued benefits to
a large majority of the native Indian population, along with gradual impoverishment under
colonialism, provided the immediate imperative for an indigenously designed, selfreliant
programme of development. Amid other developing countries who gained independence around
the same period, the relatively better position of India gave rise to genuine expectations that
despite the grinding poverty, the country would manage to embark on a successful programme
of national reconstruction and development. India benefited from a rich stock of natural
resources, an industrial base which by the standards of other colonies was fairly broad and
advanced, a bureaucratic and administrative apparatus and lastly a political leadership
committed to a programme of modernisation.
It is interesting to note that while the very political strategy of building up a mass movement
against colonial rule had required the nationalists to espouse Gandhi‟s idea of machinery,
commercialisation and centralised state power as the curses of modern civilisation imposed by
European colonialism, Gandhi‟s vision of national self-sufficiency through a vibrant and largely
self-reliant village economy was considered to be too impractical and unrealistic at the eve of
Independence.6 Instead of the Gandhian model of community-based decentralised
development, a centralised model of planned development was adopted, in the hope of rapid
industrial and economic transformation, very much influenced by the theories of socialist
The central core of the development policy was a move towards a capital intensive, public sector
led programme of heavy industrialisation. The strategy “did not draw its principal inspiration
from a reasoned analysis and assessment of the political economy of the country, its resources,
social structure and the immediate needs of its people.”7 Instead, it drew upon the very model of
the modern industrial economy that the freedom struggle had criticised severely in its drain of
wealth theory. The initiation of an aggressive policy of industrialisation minus commensurate
attention on other equally more important goals of development therefore left much to be
While a popularly elected representative form of government provided both the legitimacy and
the mandate to the Executive to determine the vision and course of development, the Executive
in India also retained a degree of autonomy from the civil society in determining the goals and
objectives of development. The Westminster model of parliamentary democracy in fact
replicated the colonial practice of giving the Executive de facto powers to decide, plan and
execute all policies related to national and regional development. A strong consensus existed
among the political leadership and the immensely powerful bureaucracy concerning the central
importance of industrialisation in laying the groundwork for development. While the
Government formally announced the abolition of zamindari and placed ceilings on land
ownerships, these concerns were considered to be of secondary importance to the
industrialisation that continued to be closely identified with modernisation.
While it is understandable that situation prevalent at the time of Independence was a complex
one, the failure of the Indian State to undertake a proactive programme of social reconstruction
and development remains an anomaly. For example, on the issue of caste, while in 1955 the
Government passed the Untouchability (Offences) Act, which made its practice in any form a
punishable offence, there was little that was done in concrete terms to tackle the issue of caste-
based discrimination.
Therefore, while economic growth and democratic arrangements buttressed the legitimacy of
political authorities by providing economic rewards to the upper class urban professionals and


the rural landed elite, the majority of workers in both agricultural and the industrial sectors
received relatively little benefits from this growth.12 Studies undertaken have in fact shown that
the pattern and process of development in fact strengthened the primordial system of caste-
based loyalties.13 The Community Development Programme, instituted in 1952, serves as a
useful illustration of the inherent limitations of a process of development biased against persons
coming from lower castes. Although the first phase of the programme focussed on the
improvement of social amenities such as schools, health centres, roads, wells, etc., the major
beneficiaries were upper caste elites; lower caste workers who constituted the majority of the
poor continued to be both physically and socially deprived of the benefits of such investments .



It is an immediate effect of globalization. Liberalisation is commonly known as free trade. It
implies removal of restrictions and barriers to free trade. India has taken many efforts for
liberalisation which are as follows:
 New economic policy 1991
 joint ventures with foreign companies
 Reduction of import tariffs
 Removal of export subsidies
 Full convertibility of Rupee on current account
 Encouraging foreign direct investments

 Increase foreign investment
 Increase foreign exchange reserve
 Increase in consumption
 Reduction in dependence on external commercial borrowing.
 An unrestricted flow of capital
 Control of price
 Raise in the rate of economic growth
 Increase in efficiency of a domestic firm

 Increase in an Unemployment.
 Loss of domestic units.
 Increased dependence on foreign nations.
 Unbalanced development.


In the event of globalization privatisation has become an order of the day. Privatisation can be
defined as the transfer of ownership and control of public sector units to private individuals or
companies. It has become inevitable as a result of structural adjustment programmes imposed
by IMF.

 Increase in efficiency
 Professional management
 Increase in competition
 In line with international trends
 Reduction in economic burden of government
 Increase in industrial growth
 Increase in foreign investment
 Encourage to new innovation.

 Exploitation of labour.
 Abuse of powers by executives.
 Unequal distribution of wealth and income.
 Lack of job security for employees.

The term globalization can be used in different contexts. The general usages of the term
Globalization can be as follows:

i. Interactions and interdependence among countries.

ii. Integration of world economy.
iii. Deterritorisation.

It refers to a process whereby there are social, cultural, technological exchanges across the

The term Globalization was first coined in 1980s. But even before this there were interactions
among nations. But in the modern days Globalization has touched all spheres of life such as
economy, education. Technology, cultural phenomenon, social aspects etc. The term “global
village” is also frequently used to highlight the significance of globalization. This term signifies
that revolution in electronic communication would unite the world.


 Access to Technology
 Growth of international trade
 Increase in production
 Employment opportunities
 Free flow of foreign capital

 Inequalities within countries
 Financial Instability
 Globalization has opened up employment opportunities. But there is no job security for
employees. The nature of work has created new pressures on workers. Workers are not
permitted to organise trade unions.
 Impact on farmers:
Indian farmers are facing a lot of threat from global markets. They are facing a serious
competition from powerful agricultural industries quite often cheaply produced agro
products in developed countries are being dumped into India.
 Impact on Environment:
Globalization has led to 50% rise in the volume of world trade. Mass movement of goods
across the world has resulted in gas emission. Some of the projects financed by World Bank
are potentially devastating to ecological balance. E.g.: Extensive import or export of meat.
 Domination by MNCs
 Threat to national sovereignty




 Globalisation has been increasing  liberalisation has enforced for
efficiency, productivity and customer transparency, ethical values and
orientation in Indian administration responsiveness
 Globalisation has encouraged market  liberalisation has encouraged flattening of
oriented policies and structure of hierarchy, downsizing of bureaucracy, and
administration decentralization of policy formulation
 Globalisation has emphasized on reducing  liberalisation has emphasized self –
restrictions and controls on economic controls in administration
activities of administration
 Globalisation has brought advanced  liberalisation has brought right to
technologies, IT advancements in information, e-governance and
administration transparency in administration
 Globalisation has applied cost and time  liberalisation has facilitated easy access to


bound techniques to increase the information and services to citizens
 Globalisation has introduced competition  liberalisation has introduced
with private sector for quality and price administrative effectiveness and efficiency
in administration
 Globalisation has paved the way for  liberalisation has paved the way for
interaction of Indian administration with coordination and relation of Indian
international economic system and policies administration with multiplicity of
 Globalisation is posing problems for  liberalisation is making administration
national democracy because collective adaptable to different conditions and
decisions are made in context beyond varied situations.
government control

 Reduction in number of jobs.
 Negative impact of global meltdown on Indian industry.
 Numbers of frauds are increasing.
 Numbers of cyber crimes are increasing.
 Both internal and external security problems have been increasing.


Attempts to improve the economic conditions through globalization have been made in our
country and liberalisation has also paved the way to achieve maximum output, quality and
value products but regionalism, communalism and political discretion are the main
obstacles in the way to good governance. So the world politics is thinking about
globalization retreat.


Feminism has never been about getting a job for one woman. It’s about making life more
fair for women everywhere. It’s not about a piece of the existing pie; there are too many
of us for that. It’s about baking a new pie.
— Gloria Steinem


The concept of SHG serves the principle “by the women, of the women and for the
women”.The origin of SHG is from the brain child of GRAMIN BANK of Bangladesh, which
was found by the economist, prof. Mohammed Yunus of Chittagong University in the year
1975. This was exclusively established for the poor.

The SHG movement became a silent revolution within a short span in the rural credit
delivery system in many parts of the world. It has been documented that nearly 53
developing countries including India, have taken up this on a large scale. In 1997, World
Micro Credit Summit at Washington converged the developed and the developing countries
to tackle the serious problem of poverty by using micro credit as a tool to empower the
poorest sections.

The self-help groups have their origin in the self-help affinity groups facilitated by the
Mysore Resettlement and Development Agency (MYRADA) that were adapted by the
National Bank for Agriculture and Rural Development (NABARD). The adapted version
started in 1992 as a pilot project and was soon upgraded to a regular banking programme.
The self-help group movement, which is now in its silver jubilee year has, over a span of 25
years, grown massively with 85 lakh units operating across the country.

Indian government has taken a lot of initiatives to strengthen the institutional rural credit
system and development programmes. However formal sector credit agencies find it
difficult to reach vast majority of rural people . The problem highlighted above require a
complete paradigm shift where the flexible and responsive system meets the needs of rural
poor. Viewing it in the welfare programmes of ninth five year plan (1997-2002) and shifting
the concept of “development to empowernment” the Indian government adopted the
approach of “Self Help Groups” to uplift the rural poor women .

Today, these self-help groups are seen as more than just a conduit for credit – they also act
as a delivery mechanism for various other services ranging from entrepreneurial training,
livelihood promotion activity and community development programs.

Members take loans for a variety of reasons: to buy medicine, start a business, purchase
animals, pay school fees, buy clothing, buy food during the lean season and invest in
agriculture. With help for starting businesses, impoverished women can earn money and
support their countries as well as their families. They represent perhaps the best hope for
fighting global poverty. According to a Harvard Business Review study, women in emerging
markets reinvest 90 per cent of every dollar earned into “human resources” — their
families’ education, health and nutrition — compared to only 30 to 40 per cent of every
dollar earned by men.

Allowing women direct access to financial services might improve their possibilities to
become entrepreneurs, thus increasing their individual incomes, their chances to become
more independent, and strengthen their participation in family and community decision
making. There is also an important insurance effect: better access to finance reduces their
dependence on relatives or local moneylenders.

The self-help groups are the biggest generators of social capital in rural India. Best
practitioners in communities become community professionals (CPs). The vast majority of
women leaders in panchayati raj institutions have come from self-help groups and most
successful sarpanches have had their grooming in these collectives.


Moreover, self-help groups are an instrument for the empowerment of poor and
marginalised sectors. They have proved to be an effective instrument for changing
oppressive relationships in the home (gender and tradition related), and in society. This is
specially true for those relationships arising from caste, class and political power, which
have made it difficult for poor people to build a sustainable base for their livelihoods and to
grow holistically.


 To inculcate the habit of saving and banking habit among the rural women.
 To build up trust and confidence between the rural women and the bankers
 To develop group activity so that various welfare and developmental programmes can
be implemented in a better way with the participation of these women groups
 To achieve women and child welfare programme goals by actively involving these
women groups in Universal Immunization Programme , small family norm , universal
elementary education etc..


 Small size
 Identical interest/social heritage/common occupation, homogeneity , affinity
 Intimate knowledge of members of intrinsic strength, needs and problems.
 Flexible and responsive
 Democratic in operations
 Simple documentation
 Collective leadership, mutual discussions
 Group solidarity , self help, awareness ,social and economic empowerment


 A via-media for development of savings habit among the poor

 An access to large quantum of resources
 A window for better technology/skill upgradation
 Availability of emergent, consumption/production credit at the door step
 Access to various promotional assistance


 Assurance of freedom , quality , self reliance and empowerment


 Members take loans for a variety of reasons: to buy medicine, start a business, purchase
animals, pay school fees, buy clothing, buy food during the lean season and invest in
agriculture. With help for starting businesses, impoverished women can earn money and
support their countries as well as their families. They represent perhaps the best hope for
fighting global poverty. According to a Harvard Business Review study, women in emerging
markets reinvest 90 per cent of every dollar earned into “human resources” — their families’
education, health and nutrition — compared to only 30 to 40 per cent of every dollar earned
by men.
 Allowing women direct access to financial services might improve their possibilities to
become entrepreneurs, thus increasing their individual incomes, their chances to become
more independent, and strengthen their participation in family and community decision
making. There is also an important insurance effect: better access to finance reduces their
dependence on relatives or local moneylenders.
 The self-help groups are the biggest generators of social capital in rural India. Best
practitioners in communities become community professionals (CPs). The vast majority of
women leaders in panchayati raj institutions have come from self-help groups and most
successful sarpanches have had their grooming in these collectives.
 Moreover, self-help groups are an instrument for the empowerment of poor and
marginalised sectors. They have proved to be an effective instrument for changing
oppressive relationships in the home (gender and tradition related), and in society. This is
specially true for those relationships arising from caste, class and political power, which
have made it difficult for poor people to build a sustainable base for their livelihoods and to
grow holistically.
 For poor women, it is a journey towards the second freedom or the real freedom, as
Mahatma Gandhi said when he talked of the unfinished agenda at the time of Independence.
 Ela Bhatt, the founder of Self Employed Women’s Association (SEWA) and one of India’s
tallest social workers emphasising the creative role of women in synthesising new cultural
patterns: “In my experience, women are the key to rebuilding a community. Focus on
women, and you will find allies who want a stable community. The woman wants roots for
her family. In women, you get a worker, a provider, a caretaker, an educator, a networker.
She is a forger of bonds — in her, essentially, you have a creator and a preserver.”


Despite early success, however, the growth of SBLP has slowed in the last five years. Several
factors have contributed to the deceleration:

 The microfinance crisis in 2010 led to the perception of self-help group being
inextricably linked with the development of the microfinance program.


 NABARD too acknowledged issues of regional imbalance, less than ideal average loan
size, lack of monitoring and training support by self-help group federations, delays in
opening bank accounts, impounding of self-help group savings by banks as collateral,
and escalating non-performing assets of self-help group loans with banks.
 Several studies have also found that self-help groups grapple with issues related to
governance, quality, transparency and irregularity in their functions.
 Despite the relatively positive results, the study found that over time groups were
disintegrating on account of coordination issues. Few members knew how to maintain
the group’s required financial documentation, so if those members left, the groups
would also dissolve.
 Low levels of literacy among the rural women


Following are the immediate necessities to further strengthen the SHG movement in our
1. Effective digitisation of the SHG member level data. Develop tracking system for
member level transactions so that this data becomes dynamic. Make this data available
to bankers for taking lending decisions.
2. Aggressively canvas Jan dhan accounts of SHG members and their family members and
link these accounts to SHG accounts so that the internal group transactions become
completely cashless.
3. Encourage the Business Correspondents/Facilitators in the SHG sphere and make their
activities completely sustainable.
4. Use the SHG as last mile delivery institutions for providing banking and insurance
services to the excluded sector.
5. Aggressively increase credit flow to the SHG sector. Make available collateral-free,
higher funds of upto Rs.10 lakhs to the members of SHGs for taking up
microenterprises and build infrastructure like housing through the SHG module. These
will further strengthen the cohesiveness among the members to provide group
guarantee for higher loan amounts.
6. Do away with savings-based credit and start need-based credit for the SHG members.
7. Develop SHGs as strong competitors to the micro finance industry.
8. Approach the government agencies to meet the cost of SHG monitoring services
undertaken by the SHPIs.
9. Bring down unwanted subsidies to the capital investments made by the SHG members.
10.Provide interest subsidy as applicable to such SHG members who apply the credit
received from the SHGs for their micro enterprise rather than consumption purposes.
For this purpose member level borrowing profile needs to be digitised so that spending
for micro enterprises and certain infrastructures are encouraged rather than just




It is an established fact that, 'Personnel Administration' is one of the component parts of the
whole administrative system of a country. The operation of the personnel administration,
therefore, is influenced by variety of social, economic as well as political forces. It is no
denying the fact that, administration is a dynamic and continuous process which takes the
shape according to the demand of time. As a part of general administration, personnel
administration also cannot be viewed without considering the changing situation of the
human society. As a matter of fact, personnel administration of a country is one of the most
crucial and complex problems of the whole administrative process. It is such an area where
the frontier of private or business administration and what is properly known as the public
administration. Both are the integral part of the society and must reflect its compulsions and
aspirations. In other words, personnel administration is the keystone of the public
administration, chiefly concerned with managing and developing resources. It is not an
isolate system. It is intimately connected with the political culture and constitutional system.

Significance of Personnel Administration

1. As already mentioned personnel administration is the keystone of any administrative
organization, be it public or private. It is the keystone in the sense that the administration is
done by the personnel. Ruthnaswamy says - "However necessary and useful organization
and machinery may be in administration, the importance of the manning of the
administration is greater, for it is the men that work the machine. From the top of the
bottom, from the centre to the circumference and in between, it is men that make the
machinery of administration work".
2. It constitutes one of the most important elements of 'good administration'. Walter R.Sharp
observes - "good administration is a composite of effective organization, adequate material
facilities and qualified personnel".
3. The effective and efficient functioning of any administrative organization depends upon the
quality of personnel carrying on its administration. The policies and programmes of the
organization are formulated and implemented by them. The success and the failure of an
organization, therefore, rest on the personnel it employed. So, it has been aptly remarked
that the personnel are the ultimate source of administrative efficiency. Of course, it has to be
also remembered that, "a theoretically perfect administrative structure and sound methods
of work may be devised, but they will be of little or no avail if those who man the
administration are unequal to their work".
4. Considering this aspect, Walter R. Sharp says - "even poorly devised machinery may be
made to work if it is manned with well - trained, intelligent, imaginative and devoted staff.
On the other hand, the best planned organization may produce unsatisfactory results if it is
operated by mediocre or disgruntled people".
5. Inspite of this fact, it must be conceded that the well-organized personnel system is the only
instrument through which an administrative organization can accomplish the defined and
desired goal. According to H. Finer "personnel is t he sovereign factor or in public


administration". In a sense, the importance of personnel in administration cannot be
questioned ; because, it constitutes the 'nervous system' of an organization.
6. Personnel constitute an important part of the organizations. With the requisite skills,
apptitude, integrity and organizing capacity the personnel can build the image of their
organizations as effective institutions in the nation building process. In other words, human
beings are a resource to an organization. Like any other material on economic resources they
represent an investment whose development and utilization require managing (i.e.,
planning, organization, leadership and evaluation). There is a fundamental truth in the
cliche that people are an organization's most important asset. In every organization, human
resources are a pivotal variable without which the inanimate assets are worthless. Therefore,
human resources need to be understood in their proper perspective and utilized effectively
to achieve the goals of an organization. This requires that human resources must be
administered and administration implies that work should be effectively completed with and
through other people. The process of administration is made up of four steps embracing the
personnel dimension - getting them, preparing them, activating them and keeping them. So,
today personnel administration is becoming a very complicated and challenging task for
those who are entrusted with the successful running of an organization.

Inspite of all this fact, it is observed today that there is a general tendency in the
organization to lay emphasis on material and financial management to the utter neglect of
personnel. The consequences of this is that the process of development takes longer,
sometimes even fails. The main reason for this is that the organizations concerned are not so
much attentive to the personnel who are the real agents of development and ultimately the
beneficiaries of the process of development. Personnel, properly selected and given the job
of their choice, produces excellent results otherwise they are a liability on the organization.

Definition of Personnel Administration

The Oxford Advanced Learner's Dictionary of Current English lays down the meaning of
'personnel' as "staff ; persons employed in any work, especially public undertakings and the
armed forces". It is defined as "the body of persons employed - both managers as well as who are
managed". In a sense, the term personnel means all the members working in an organization.
The concept of Personnel Administration, therefore, means the administration of human
resources of an organization. It relates to the administration of persons employed in an
organization. It is that branch of public administration which can help an organization in the
management of personnel resources with the use of well - thought out principles, practices and
rationalized technique in selecting, retaining, developing personnel for the fulfillment of
organizational objectives systematically and scientifically. It is both the art and science of
planning, organizing, implementing and evaluating the personnel resources in any organization
to ensure their best use for the achievement of the objectives, goals and targets of an
organization. To be more clear, let us quote some definitions of authentic writers in this field :
 Glenn Stahl : Personnel administration is the totality of concern with the human resources
of organization. It is one of the organizations major linkages with its environment. It applies
in microsm the values, the ethics, the philosophy of that environment, and it in turn
influences the environment. To whatever extent it is true in the publ ic service - simply
because of its size and its relationship to the whole people.
 F. A. Nigro : Personnel administration is the art of selecting new employees and making use
of old ones in such manner that the maximum quality and quantity of output and service are
obtained from the working force.


 Ordway Tead : Personnel Administration is the utilisation of its best scientific knowledge of
all kinds to the end that an organization as a whole and the corporate purpose and the
individual purposes are being reconciled to the fullest possible extent, while the working
together of these purposes realises also a genuine social benefit.
 Andrew F. Sikula : Personnel Administration is concerned basically with manpower on
'people', organizational resource of output.
 Pigors and Myers : It is a method of developing potentialities of employees so that they get
maximum satisfaction out of their work and give their best efforts to the organization.

From the above definitions, it is clear that personnel administration is the art and science of
policymaking, planning, decision-making, organizing, directing, controlling and motivating
human resources for securing, maintaining, developing integrating, involving, compensating as
well as enriching human environment for the blooming of human skills and capacities in an
organization, to secure organization and social objectives as well as employees satisfaction.

Personnel Administration: Evolution And Development

 While the development and development of personnel administration in U.K. and U.S.A.
was largely voluntary, in India, the growth of personnel administration can be attributed to
the efforts made through the government. While in the West, the pioneering work in the
field of personnel management was motivated through the managerial preoccupation with
the concept of welfare, in India, unsystematic recruitment practices, rising labour unrest,
loss of production etc., initiated some interest in personnel management. In U.K., personnel
administration had its origin in the concept of welfare as propounded and practiced through
some of the enlightened entrepreneurs, who sought the establishment of modern personnel
administration. The term personnel management actually originated in the U.S.A.

 It was F.W. Taylor‟s scientific management which laid the foundation for the development
of personnel administration. Taylor laid emphasis on scientific selection and systematic
training and development of the individual worker. H.L. Gantt, a secure associate of Taylor,
in scientific management movements, foresaw the need for obtaining the willing cooperation
of the worker. He maintained that it was not enough to tell the worker how to do a job, but it
was also necessary to promote the skill and willingness to do a job. Mary Parker Follet also
laid stress on training and development characteristics of management. The pioneers of
scientific management, separately from rising efficiency, aimed at fighting fatigue and
monotony in the middle of the workers.

 Mainly significant breakthrough for personnel administration was Elton Mayo‟s Hawthorne
experiments and the human relations movement. These experiments paved the way for
using the disciplines of sociology, psychology, industrial psychology, social psychology etc.,
with a view to understanding employees and organizational behaviour and influencing them
through a motivational approach. All this led to the gradual development and development
of a theory and practice of personnel management. There were also other events and
influences which led to the growth of personnel management. Several revolutionary
concepts like mass production, mass sharing and mass financing were evolved through
industrial and business empires. The labour shortages throughout the world wars and
several labour troubles posed a challenge to management. With the Great Depression in


1929) big business suffered a severe setback. The State, the public and the trade unions,
aimed at efficient professional management. Their demands were elimination of waste and
maximum utilization of possessions, particularly human possessions. All these growths in
America emphasized the fact that management of people or personnel management is just as
significant as the management of production.

 Therefore the entrepreneurial interest, separately from other events in the sphere of worker
welfare provided the source of inspiration for the development of modem dynamic
personnel administration. The history of the development and growth of personnel
management in our country is not very old. It was the Royal Commission on Labour which
recommended in 1931 the appointments of Labour Officers to deal with the recruitment of
labour to settle their grievances. The industrial disputes of 1920s forced the government and
businessmen to think in conditions of labour troubles and promotion of personnel
management. The recognition of trade unions in India gave a new perspective to the
employer and employee relationship. Entrepreneurs like the Tatas, Calico Mills, British
India Corporation etc. had appointed Welfare Officers as early as 1920. These Labour
Welfare Officers performed the functions of redresses of employee grievances and
promotion of industrial harmony.

 In 1937 in Bengal, on the suggestion of the Government, the Indian Jute Mills Owners‟
Association appointed a Labour Officer to bring about a settlement of employee grievances
with the mills and through 1939 five more Labour Officers were appointed. Other
Employers‟ Associations like Indian Engineering Association, Indian Tea Association, the
Engineering Association of India etc., also followed the instance of Indian Jute Owners ‟
Association in appointing labour officers. In 1941, the Government of India initiated the
Tripartite Labour Conference with the representatives of Government, labour and employees
in order to promote uniform labour legislation determine a procedure to settle industrial
disputes, and promote consultations on industrial matters affecting the country. Now they
have become permanent and regular characteristics of labour policy. In 1948, the Factories
Act Rules laid down the appointment, duties and qualifications of a new statutory officer in
industry described the Welfare Officer. The following years saw the emergence of yet another
officer described the Personnel Officer. The Personnel Officer deals with labour welfare,
industrial relations, and personnel administration. Several companies in India now have
specialized personnel departments and a fulltime Personnel Officer in charge.

 Now the number of personnel is rising at a very fast rate, expenditure on personnel is also
correspondingly rising. There has also been a trend in regard to the diversification in the
personnel as more and more specialists, experts and technicians are being appointed in
government departments, public, and private organizations. Modern personnel do not just
deal with welfare of employees but also aim at achieving profits for the organization. The
motive is to earn profits as well as benefits for the organization and its employees.

Scope of Personnel Administration

The scope of personnel administration is very wide. It is becoming diversified as the number of
personnel is increasing in magnitude and complexity. It may be classified as under –
(a) Personnel Functions Personnel administration has to deal with various aspects like
recruitment, training, promotion, conditions of service, employees welfare and employees-


employer relations. Today, more and more interest has been laid on the processes of morale
and motivation to enhance the efficiency of personnel.
(b) Environmental Linkage Personnel Administration has to develop links with immediate,
intermediate and external environment to make itself effective and efficient. Particularly it
has to develop link with the political elite without whose direction, the personnel
administration cannot function.
(c) Constitutional Provisions and Executive Orders: Personnel administration has to function
according to the constitutional provisions and executive orders. So, there is the need to
understand the provisions of the constitution for the understanding of the scope and
liquidation of authorities to deal with the personnel issues and problems. Since there is an
independent judiciary to deal with various personnel issues, there is also a need to
understand the role of judiciary in this context.
(d) Personnel Associations or Unions : The employees unite in the form of associations or
unions to get their genuine grievances redressed. Many of these associations or unions are
legally recognised. So, there is a need to understand their role in personnel administration.
(e) Responsibility to Legislature Through the Executive For the clear understanding of the
scope of personnel administration, one has to understand the role of parliamentary
institutions like Ombudsman, Parliamentary Commissioners, Lok Pal, Lok Ayukt etc.,
because, these are public beneficiaries at large. In addition to, it is our duty to study the
responsibilities of personnel administration to the legislature through the ministers or the
legislative committees.

To sum up, personnel administration covers proper planning for work, selection, placement,
and training of employees so selected, distribution and assignment of work among them. It
includes supervision, conduct and discipline, motivation, communication and welfare grievance
settlement terms of employment etc. It also deals with all other auxiliary functions starting from
recruitment and ending with retirement. Personnel administration functions are comprehensive
and cover the entire work career of the employment vis-a-vis the organization. This function is
universal and is useful for all organizations whether government, industry, hospital or

Changing Scope of Personnel Administration

The scope of personnel administration has changed somewhat over the last few decades. But
this change has been relatively slow in comparison to the changes in other areas of business,
management and administration. Sikula rightly observes - "Changes definitely are taking place
in personnel administration. Some personnel sub - functions seems to be breaking away from
personnel, others seem to be new sub-area while still others seem to be changing only in terms
of their relative emphasis and degree of importance". Many of these changes depend on size of
an organization in which the personnel function occurs, the managerial personnel philosophies,
the growing importance of the functions, the changing managerial demands, employee needs
and societal concerns. Managerial and organizational planning are incoming areas, i.e., they are
now going to receive substantially more attention ; they did not have any prominence in the
past. Training and managerial development and personnel research have become increasingly
important today ; while importance of personnel appraisal, wage and salary administration, has
somewhat declined in terms of relative emphasis. Employee benefits and services, and worker's
health and safety have always been important personnel concerns. Labour relations, public
relations and plant security are "Outgoing” personnel sub-areas which have been taken aways
from the personnel department because of their increased organizational importance.



Personnel Administration - An Art or a Science ?

Personnel Administration has been recognised as a science as well as an art. A science is "an
exact and systematic classification of knowledge" of some subject. In view of this definition,
personnel administration may definitely be regarded as a science, for its principles, concepts,
laws, rules and procedures, methods and techniques have been presented in a systematic way.
They are not static and rigid, but flexible and adaptive ; they can meet the changing
circumstance of an organization.
On the other hand, "an art is an application of skill or knowledge in a unique and creative
manner". To identify personnel administration as a career implies that artistic qualities are
associated with personnel practices, which are recognised as a result of unique creative
administrative styles rather than as a result of set of personnel rules and procedures.

Personnel Administration as a Discipline

Personnel administration has now been recognised as a well-established academic discipline.
Most of the Universities in India are today engaged in the teaching and research of personnel
administration. Many University have instituted courses leading to a diploma or degree in
personnel management. Moreover, it is being taught as one of the compulsory papers to the
students of post-graduate classes in the field of public administration and business
management. During the last three decades, a large number of literature has been produced by
teachers, executives and research students based on empirical studies and experience. It is
suggested that active collaboration need to be developed between the practising personnel
managers and the teachers of personnel administration to develop applied research to provide
solution to the existing and emerging personnel issues.

Personnel Administration as a Profession

Personnel administration has developed today, into a profession in the context of the industrial
and commercial enterprises. It has to be noted that personnel administration has not developed
as a profession within the machinery of government as we still believe that any executive in the
administration hirarchy can manage this function. Generally, a profession has some attributes.
These are - a corpus of knowledge, social responsibility, prolonged training and education before
practice, code of conduct and the development of professional bodies. But according to some
writers personnel administration is not a profession for the following reasons –
a) lack of special training to personnel officers,
b) lack of personnel system and personnel policy resulting confusion to personnel offers,
c) low position of personnel officers in the organization,
d) a poor self - image of personnel officers.
In spite of all these facts the feeling is gaining ground in the government that there should be
human resources experts well-versed in the diverse aspects of personnel administration. It is
being realised that such personnel specialists can contribute meaningfully to their organizations
and administer personnel departments effectively. But the achievement in this regard so far has
been limited. This can be achieved only with the help of the universities and the training



Functions Of Personnel

Manpower Planning
Before the formal procedure of selection of personnel begins, an organization has to create an
assessment of its necessities in conditions of number of personnel needed for a job, definition of
a job, the skills, and specialization it entails the duration for which personnel are required,
nature of work etc. Manpower planning is engaged with these kind of activities. Organizations
whether large or small, whether public or private, are in constant need of manpower. They
require men and women for dissimilar stages of positions for performing dissimilar types of jobs
at dissimilar places and intervals. The number of personnel with defined skills and
specializations needed at dissimilar periodic intervals has to be forecasted. Manpower planning
predicts the number of personnel an organization will have to hire, train, or promote in a given
Manpower planning creates long range estimates of the general and specific manpower needs of
the organization for dissimilar activities. Through anticipating the need for several kinds of
ability necessities and stages of personnel, well in advance, a manpower plan is able to provide
adequate lead time for recruitment, selection, and training of such personnel. It controls delays
and is a very effective device to develop the required sources from which needed personnel can
be made accessible. The objectives of manpower planning are:
 To ensure optimum use of human possessions currently employed
 To assess or forecast future skills necessities if the organization‟s overall objectives are
to be achieved
 To give control measures to ensure that necessary possessions, are accessible as and
when required
 To determine recruitment stage
 To anticipate the weaknesses of organizational procedures and avoid unnecessary
 To determine training stages To give a basis for management
 To assess future accommodation necessities.
At the stage of manpower planning, planners have to take into consideration several things. The
planner necessity takes into account all such variables which are beyond his/her control, these
are wavering variables which always affect the functioning of an organization, for instance
strength of an organization, investment, union rules etc. The planners also have to identify those
variables which are manipulative, for instance, productivity, incentives, training etc. the
planners necessity determine in advance the time horizons of their plans since they affect the
changeability of structures and functions within the system.


Manpower planning can only be effective if goals are explicitly laid down. Manpower planning
has to determine the quality and quantity of personnel needed for a specific job. The methods
used for this purpose are job analysis, job account, job specification, workload analysis, and
work force analysis. Without effective manpower planning, the other functions of personnel
administration viz. recruitment, placement, training, promotion, welfare of employees etc.
cannot be performed properly.

Recruitment is one of the most crucial problems of personnel administration. It forms the first
stage in the process which continues with selection and ceases with the placement of the
candidate. Naturally, it is the next step in procurement function, the first being the man power
planning. In fact, the success and failure of an organisation, be it public or private, completely
depends upon the recruitment policy adopted. Considering this fact, 0. Glenn Stahl rightly
remarks that recruitment is the "cornerstone of the whole public personnel structure".
The purpose of recruitment is to locate sources of manpower to meet job requirements and job.
Recruitment has been regarded as the most important function of personnel administration,
because the right type of people are hired even the best plans, organisation charts and control
systems would not do much good. With an unsound recruitment policy, there can be little hope
of building up a first rate staff. According to Amereswar Avasthi and Shriram Maheshawari a
faulty recruitment inflicts a permanent weakness up-on the administration, the latter virtually
becomes a heaven for the dull and the incompetent. No amount of inservice training can make
faultily recruited persons bright and efficient".
The nature and degree of usefulness of the administrative machinery also largely rests on the
recruitment policy. Thus, the need for a sound recruitment policy is hardly over-emphasised. On
the whole, ill determines the "tone and calibre" of the personnel administration. The aim of
recruitment is to locate the right type of persons for various jobs.

Meaning :
 Ordinarily, the concept of 'recruitment' is used as a synonym of appointment. But it is not
correct. "In the technical phraseology of administration, recruitment means attracting the
proper and suitable type of candidate for the post to be filled".
 In other words, recruiting is the discovering of potential applicants for actual or anticipated
organizational vacancies. It is a linking activity bringing together those with jobs and those
seeking jobs. It includes all the processes occurring from issuing the filling of an application
for a particular position.

Theories regarding recruitment :

 There are certain theories of recruitment. According to 0. Behling and others recruitment is
a two-way street ; it takes a recruiter and a recruitee. Just as the recruiter has a choice whom
to recruit and whom not, so also the perspective employee has to make the decision if he
should apply for that organization's jobs. The individuals makes this decision usually on
three different basis, the objective factor, critical contact, and subjective factor.
 "The objective factor theory views the process of organizational choice as being one of
weighing and evaluating a set of measurable characteristics of employment offers, such as
pay, benefits, location, opportunity for advancement, the nature of the work to be
performed, and educational opportunities".


 "The critical contact theory suggests that the typical candidate is unable to make a
meaningful differentiation of organization's offers in terms of objective or subjective factors,
because of his limited or very short contact with the organization. Choice can be made only
when the applicant can readily perceive the factors such as the behaviour of the recruiter, the
nature of the physical facilities, and the efficiency in processing paper work associated with
the application".
 "The subjective factor theory emphasises the congruence between personality patterns and
the 'image' of the organization, i.e., choices are made on a highly personal and emotional

Negative and Positive Recruitment :

 Recruitment has both 'positive' and 'negative’ side. According to Flippo, "It is a process of
searching for prospective employees and stimulating and encouraging them to apply for jobs
in an organization. It is often termed positive in that it stimulates people to apply for jobs to
increase the 'hiring ratio' i.e., the number of applicants for a job. Selection, on the other
hand tends to be negative because it rejects a good number of those who apply, leaving only
the best to be hired". It is important to note that when the spoil sytem was replaced by the
merit system the approach to recruitment was primarily negative. The entire recruitment
policy was designed to keep favouritism, nepotism and political influence out of
appointments to public service. In fact, the aim of such recruitment policy was "to keep the
rascals out". This negative approach succeeded in preventing the employment of many
incompetents. But the limitation of this system was that it could not guarantee the
appointment of the most fit persons available. Donald Kingsley has rightly observed upon
the result of this negative approach thus ; "the rascals have been kept out perhaps, but so
have many men of vision and ability".
 As the negative approach failed to induce an adequate number of able candidates to apply
for government jobs, it has gradually given rise to the tendency to use the positive approach
in matters of recruitment. By positive recruitment is meant making efforts to find out the
best qualified and most able candidates and induce them to apply for government jobs. It
implies that the chief personnel agency should go out after able candidates for government

Factors Affecting Recruitment :

All organizations whether large or small, do engage in recruiting activity, though not to the same
extent. This differs with
(a) the size of the organization ;
(b) the employment conditions in the community where the organization is located ;
(c) the effects of past recruiting efforts which show the organization's ability to locate and good
performing people ;
(d) working conditions and salary and benefits packages offered by the organization which may
influence turnover and necessitate future recruiting ;
(e) the rate of growthof organization ;
(f) the level of seasonability of operations and future expansion and production programmes
(g) cultural, economic and legal factors etc.


Recruitment needs are of 3 types:
1) Planned – Arises from the changes in the organization and retirement policy.
2) Unexpected – Arises during resignations, deaths, accidents or illness.
3) Anticipated – Refers to those movements in personnel which an organization can predict by
studying trends in the internal and external environments.

Recruitment Policy :
Recruitment policy asserts the objectives of recruitment and provides a framework of
implementation of the recruitment programme in the form of procedures. According to Yodere
and others - "such a policy may involve a commitment to broad principles such ns filling
vacancies with the best qualified individuals. It may embrace several issues such as extent of
promotion from within attitudes of enterprise in recruiting its old employees, handicaps,
minority groups, women employees, part time employees, friends and relatives of present
employees. It may also involve the organizational system to be developed for implement ting
recruitment programme and procedures to the employed". It is, therefore, clear that a well-
consLdorod and pre-planned recruitment policy, based on corporate needs, may avoid hasty or
ill-considered decisions and may go a along way to man the organization with the right type of
However, a good recruitment policy must contain certain elements. These are –
(a) Organization's objectives - both in the short-term and long-term must be taken into
consideration as a basic parameter for recruitment decisions and needs of the personnel,
area wise, job-family wise.
(b) Identification of the recruitment needs to take decisions regarding the balance of the
qualitative dimensions of the would be recruits, i.e., the recruiters should prepare profiles
for each category of workers and accordingly work out the man specifications, decide the
section, departments or branches where they should be placed and identify the particular
responsibilities which may be immediately assigned to them.
(c) Preferred sources of recruitment, which would be tapped by the organisation e.g. for skilled
or semi-skilled manual workers, internal sources and employment exchanges may be
preferred ; for highly specialised categories and managerial personnel, other sources besides
the former, may be utilised.
(d) Criteria of selection and preference ; these should be based on conscious thought and
serious deliberations. In some cases trade unions may be consulted in working out the
recruitment policy. In others, the management may take the unilateral decision.
(e) The cost of recruitment and financial implications of the same.

Process of Recruitment
The recruitment and selection of Human Resources procedure in Public Administration relies
on three fundamental pillars :
 On the equal conditions and opportunities for all applicants,
 In the neutrality of Selection Boards and
 In the use of methodologies based on studies and technical research.
Any organisation wishing to meet staff needs should adopt a series of procedures so as to ensure
the compliance with legal requirements in this field.


The process of recruitment, normally, consists of a number of steps which may be briefly stated
1) Requisitioning of the Jobs/Posts : The process of recruitment in the
government begins with asking the various government departments and agencies about
their requirements of personnel. How many persons are required? Haw many posts are to be
filled up by direct appointment? How many posts are to be filled up by promotions? All this
information is collected by the recruiting authority before the beginning of the process of
recruitment. Different vacant posts are classified and total final requirements are estimated.
At the same time, requirements of the different vacant posts are also considered for
determining the qualifications, experience etc., required for the posts.
2) Determining Qualifications, Conditions and
Requirements : The second step after the requisition of jobs is to determine the
required qualifications, and other conditions for announcement in the newspapers, bulletins
and other methods. The decision regarding the minimum educational qualifications,
previous experience, age limit, residence, nationality, physical fitness etc. are taken at this
stage. The constitutional provisions and government's policies relating to recruitment are
considered before finalising these matters.
3) Designing the Application Form : At this stage, it is necessary to design a
suitable application form, which will be given to the applicants for different posts or
vacancies. The application form should contain the columns which will give all the relevant
information about the applicant's age, educational qualifications, residence, nationality,
experience, physical and family background, religion, caste etc. Different application forms
are designed for different posts or examinations or for different services.
4) Advertisement : After determining the qualifications, other conditions and
requirements etc. the next stage is to announce the post/examinations in the newspapers
and bulletins or in radio and television etc. All the information necessary to attract and
induce the maximum number of competent applicants to apply for the competitive
examination is given in the advertisement. Application forms are supplied. within a specified
date, to all those who want to apply. Sometimes the 'proforma' of the application form itself
is printed in the newspapers and the candidates are asked to apply on their own. In order to
attract more and more suitable candidates, many times the 'advertisement' is repeatedly
printed, broadcasted are telecasted. The recruiting agency may publish their own periodicals
for the benefit of the prospective candidates e.g. the Government of India publishes
'Employment News' every week. Sometimes a specific day of every week is reserved for this
type of advertisement by the Government's recruiting agencies e.g. UPSC. Advertisements
are published in all newspapers on every Saturday of the week. Advertisement is thus an
important step in the process of recruitment.
5) Scrutiny of the Applications : The applications, in the prescribed proforma
are received within an announced date, time and the applications are scrutinised. All those
who do not fulfil the minimum prescribed requirements/ qualifications or conditions of
application, are rejected at this stage and informed accordingly, whenever possible. Those
candidates, who possess the minimum qualifications are required for being eligible to take
the competition, are given information about their selection, interview or examination
schedule. If necessary, 'call letters' for interviews or 'hall tickets' for the examination giving
necessary details, about the date, time, place of examination1 interview etc are sent to the
eligible candidates. At this stage many of the incompetent and unqualified applicants are
eliminated from the process of recruitment. However, it should be noted here that scrutiny


of the application form should be done very carefully by the competent authorities, so that
no injustice is done to a qualified candidate.
6) Holding of Examination/Interview/Tests etc : n order to select the
most suitable and competent candidates it is necessary to test their ability or 'merit'. This
can be done by conducting examination or interview or other type of tests. Examination is
the formal process of testing the merit of a person. Through examination we can test ;
(a) the qualification of a candidate,
(b) determine the rank or position of a candidate,
(c) determine the order of merit of the candidates.
7) Certification : After conducting the examination, interviews or other type of tests
etc., the names or roll number of the successful candidates are declared in the newspapers or
on the notice board. A list of successful and hence, eligible candidates, is prepared and it is
certified by the personnel agency like the Public Service Commission. This list of certified
candidates is sent to the Government with the recommendation that the candidates may be
selected and appointed from this final list of certified candidates only. This is the final work
of personnel agency like the Public Service Commission. Normally the Government makes
the selection and appointment of the qualified candidates from this certified list only. But in
exceptional cases, only because of some very concrete reasons, a candidate may be rejected
from this list by the Government. But in such a case it has to give an explanation in the
8) Selection : Selection is an activity of choosing from among those candidates who are
eligible, qualified and available. Although the eligibility of a candidate is tested through '
examinations/interviews and eligible candidates are certified by the personnel agency like
the Public Service Commission, the final act of selection is the responsibility of the
government. Even if a list of eligible and certified candidates is sent by the personnel agency,
it is ultimately the government which has the power to select or reject a candidate. The
normal practice is to select the candidates from this list only.
But if the government finds that a particular candidate has an objectionable past record, or
had been involved in violent, anti-national or criminal kind of activities then it has the power
to reject appointment to such a candidate. For this purpose police records are verified and
secret enquiry about the candidate and his character is conducted in many countries. If the
government is satisfied then only the candidates are selected for appointment.
In democratic countries like India, the government normally makes appointments out of the
certified list of candidates recommended by the Public Service Commission. However, due to
some reasons, if a candidate is rejected, the government has to give a reasonable and
satisfactory reason for it, in the Parliament. Because in democracy the Government has to be
ultimately responsible and responsive to the people.
9) Appointment : After selecting the suitable and qualified candidates, the formal
appointment is done by the government. It should be noted that in all the countries
appointments are done by a 'competent executive authority' and not by the personnel agency
like the Public Service Commission. The constitutional and legal system of a country
determines as to who should have the powers to make appointments. The formal
appointment letters are issued by or in the name of the legally recognised 'appointing
authority' only. For example in India, all appointments in the Central Government are done
in the name of the President of India, whereas all appointments in the State
Governments are done in the name of the Governors of the States.
Appointment letter issued by the Government are of different types like:
(a) Permanent Appointment
(b) Temporary Appointment
(c) Provisional Appointment


(d) Appointment on Probation
(e) Appointment for indefinite term.
Initially no candidate is given permanent appointment letter. Normally a selected candidate
is appointed on 'probation'. The probation period may range from 6 months to 1 year or upto
2 years. During the probationary period a person is considered to be in 'Temporary senile'.
During the probationary period he is called a candidate.
10) Person management - Policies and Tactics : The candidate is
posted in different positions and his/her performance is evaluated by the immediate
superior authorities and the relevant reports are submitted to the 'appointing authority'.
After the successful completion of the probationary period a candidate is given
'conformation' in the service and then this appointment is considered to be permanent. After
this he is posted on a permanent government post.
11) Placement or Posting : After the successful completion of the 'probationary
period', service of a candidate is 'conformed' and he is placed or posted in a right place. This
is called as placement or posting. He is given charge of some specific nature of work
associated with that post. He is given a chance to work on that post for a few years, so that he
can learn from his experience. In some cases, before a person is posted, some kind of pre-
entry or orientation training regarding the particular work assigned to him, is given. But in
many other cases he is posted and allowed to learn while doing his work.

Essentials of a good Recruitment system

We know that recruitment is the most important step in personnel administration. If
recruitment policy is not good then incompetent and unqualified persons will enter the civil
services and they will spoil the administration of the country. It is, therefore, essential that the
recruitment policy should be well planned and sound. It is also necessary to understand as to
what are the essentials of a good recruitment policy. What makes a recruitment system good and
1) Recruitment policy must be positive. It must be planned to attract the best, most competent
and qualified persons in the government service.
2) Recruitment policy must be democratic. It must be planned to provide opportunities to the
maximum number of qualified and competent persons. All sources of supply should be given
information about the vacancies in the government.
3) Recruitment policy must be attractive. It must permanently create a good employment
market for the government service. Attractive literature and publicity techniques must be
used to attract the best talented persons to join the government service. This flow should
4) Recruitment policy must be impartial and non-political. First of all recruitment must be
done by an independent, impartial and non-political recruiting agency like the Public Service
Commission. There should be no interference from the government or politicians in
recruitment of civil servants. Government should normally recruit only those candidates
who are selected and recommended by the Public Service Commission.
5) Recruitment must be based on merit principle. Only able, capable and meritorious
candidates must be recruited after testing the merit and abilities of the candidates.
6) Recruitment agency must adopt scientific and modern methods of testing merit. It is
necessary that scientific and up-to-date methods written and oral tests must be used to test
the ability and calibre of the candidates. From time to time these methods must be reviewed
and new up-date methods must be adopted.


7) Recruitment Policy must have a good combination of direct and indirect systems - able and
capable candidates who are already in the service must be given promotions and recruited to
higher posts. At the same time; fresh, new, talented young persons must be recruited
directly. Both systems have to be combined to make a good recruitment policy and achieve
best results.
8) Placement of right person to the right job. After the selection process is over, 'the candidates
must be given placement in such a way that right person is appointed to the right job, that is
the job which is suitable to him and takes into consideration his qualifications and

Sources of Recruitment :
There are two sources of recruitment - one is - internal and the other is external. Now, let us
discuss these two sources categorically.
1) Internal Sources : Internal sources are the most obvious sources. These include
personnel already on the pay-roll of an organization i.e. its present working force. Whenever
any vacancy occurs, somebody, from within the organization, is upgraded, transferred,
promoted or sometimes demoted. This source also includes personnel who were once on the
pay-roll of the Company but who plan to return or whom the company would like to rehire,
such as these on leave of absence, those who quit voluntarily, or those on production lay-

Merits :
 The employer is in a better position to evaluate those presently employed than outside
candidates. This is because the Company maintains a record of the progress, experience
and service of its employees.
 It promotes loyality among the employees, for it gives them a sense of job security and
opportunities for advancement.
 As the persons in the employment of the company are fully aware of and well acquinted
with, its policies and know its operating procedures, they require little training, and the
chances are that they 'would stay longer in the employment of the organization than a
new outsider would.
 They are tried people and can, therefore, be relied upon.
 It is less costly than going outside the organisation for recruitment.

Demerits :
 It often leads to inbreeding. It discourages cross breeding which may lead to inefficiency.
 There are posibilities that internal sources may dry up, and it may be difficult to find the
requisite personnel from within an organization.
 Since the learner does not know more than the lecturer, no innovations worth the name
can be made. Therefore, on which require original thinking (such as advertising, style,
designing and basic research), this is not followed.
 As promotion is generally based on seniority, the danger is that really capable hands may
not be chosen. The likes and dislikes of the management may also play an important role
in the selection of personnel.

The internal source is used by many organization