Building Competence. Crossing Borders.

Elective Public Management – Week 1

Development of Public Management: Bureaucracy

Andreas BergmannInstitute of Public Management

andreas.bergmann@zhaw.ch

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What is your understanding of „bureaucracy“ or „bureaucratic“?

Where or when do you experience bureaucracy?

• In a positive way

• In a negative way

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Development of Public Management/ Bureaucracy

Overview week 2

Function of Public Activities

Before Bureaucracy

Bureaucracy by Max Weber

Appraisal of Bureaucracy

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Function of Public Activities (1)

There are problems which cannot be resolved individually.

Privatesector

Non-profitorganizations

Publicsector

InfrastructureEconomic system

LegitimacyTaxation

GuaranteesFunding

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Function of Public Activities (2)

Government intervention

• Individuals/corporations are limited by the government (i.e. police, taxes

Government provision of services

• Individuals/corporations are provided with services by the government

(i.e. schools, hospitals, galleries)

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Function of Public Activities (3)

1. Legislative power = …

2. Judicial power = …

3. Executive power = …

Public administration is part of the executive power, as long as no special administrative entities supporting legislative power (i.e. parliament services) or judicial power (i.e. court administration) are concerned.

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Function of Public Activities (4)

Rule of Law: Civil rights

Predictability• Government action needs to be predictable.

Equity

• Equal treatment under equal circumstances.

Judicial control

• Government action can be referred to an independant court.

Vgl. Schedler S. 8

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Function of Public Activities (4)

Rule of Law: Implications for Public Administration

No execitive entity is above law.

If law requires activity, administration has no discretion.

Administrative action requires a legal basis.

Law is changed in the same procedure it has been enacted.

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Before Bureaucracy

Before French Revolution: Absolutism

• Elements:

- Centralism

- Civil servants are employed by the throne

- All three powers are united in the throne

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Louis XIV, um 1700

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Before Bureaucracy

French Revolution: Division of power, but administration stays the same

• Aristocratic civil service

- Personal nomination

- Inheritance of positions

• In Switzerland mainly Canton BE (inkl. occupied territories VD, AG, JU) and BS

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Before Bureaucracy

However: Separation of intervention and service provision

Intervention: Secular, by public administration

• E.g. armed forces, police, prison, customs, taxation

Public services: Religious, by the church

• E.g. schools, hospitals, homes

In Roman Catholic areas still observable

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Bureaucracy as defined by Max Weber

Max Weber (*1864 in Erfurt, +1920 in München)

Lawyer, economist and sociologist

Most important publication: Die protestantische Ethik und der ‚Geist‘ des Kapitalismus (1904/05)

But also founder bureaucracy theory (in: „Wirtschaft und Gesellschaft“, 1922)

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Bureaucracy as defined by Max Weber

Bureaucracy theory

One of the three classical organizational theories (the others are

„Structural Approach“ by Taylor/Fayol und „Human-Relations-Approach“ by

Mayo/Rothlisberger)

Bureaucracy: literally rule of the office

For Max Weber: „Rationalization“

• Rationale Form

• of legal power

Interpretationen to some extent controversial

Bureaucracy = system of related entities

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Bureaucracy as defined by Max Weber

Bureaucracy theory (2)

Two fundamental priciples:

1. Rule based power

2. Hierarchy

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Bureaucracy as defined by Max Weber

Typical elements of a Bureaucracy

Rigorous division of labor

Authority limited to clearly defined scope

Knowlegde & competence appointment functional authority

Hierarchy

Defined processes

Emphasize on documentation/written communication

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Bureaucracy as defined by Max Weber

Typical elements of a Bureaucracy

Compensation of employees only based on position

Unpersonal communication

Separation of administrative and personal possesion

Rationale discipline

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Abb.: Apparatschiks

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Bureaucracy as defined by Max Weber

Typical behaviour of civil servants:

Fullfil their duty obligations independently based on the law

Comply with hierarchy

As little communication with politicians as possible

Refuse to obey orders which are not inaccordance with the law

Dismissal only possible if there is a breach of law

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Bureaucracy as defined by Max Weber

Input-Control (following Max Weber‘s principles)

Determination of INPUTS (de facto in the Budget)

plus

Compliance with typical elements of bureaucracy

=

Optimum OUTPUT

Einflusspolitische Führung

Periodicallyrecurring

Non-recurring

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Input- Output Control

Resources Production Demand (Market)

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Appraisal of Bureaucracy : Advantages

„Checks & Balances“

Rigorous structures

Transparency (unless structure is )

Limitation of power

Rule of law

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Public Administration

Rapid change• Culture• Globalization• Technology (Internet!)

Increased complexity• Simultaneous processes• Diversity of demand• Increased expectations of citizens• Increased expectations of others• Increased expectations of financial

markets

Scarce Resources• Scarce financial resources• Scarcity of skilled employees• Public sector debt

Appraisal of Bureaucracy : Critical issues

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Bureaucracy leads to inflexibility

No adaptation to external influences

Red tape („Dienst nach Vorschrift“) is the role model

Official channels

• Slows processed down

• filters informationen

No gradual cutbacks

Appraisal of Bureaucracy : Critical issues

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Disadvantages of input control

Incremental budgeting based on earlier periods

Love of details

Little flexiblity

Dissipation of funds towards the end of the period

Not made for large service providers

Appraisal of Bureaucracy : Critical issues

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Appraisal of Bureaucracy : Critical issues

Lack of customer orientation

Arrogant (but legally correct) behaviour of civil servants

Customer needs get neglected

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Appraisal of Bureaucracy : Current situation

Importance nowadays

Where there is no NPM: still the most important organizations model

Where NPM was adopted: some elements persist

• …

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References

Literature• SCHEDLER/PROELLER, 3-36

•Abraham, M.:Vorlesung Org_Theorie, www.lrz-muenchen.de/.../ws03_04/abraham_orga/vorlesung_orgtheorie_muenchen_WS02_03_folien_kap3_v20_zweis.pdf

•Online-Verwaltungslexikon olev.de•Payer, M., Internationale Kommunikationskulturen, www.payer.de/kommunikationskulturen/kultur081.htm