MANAGERIALISMMANAGERIALISM

PPA 400 PPA 400

Lecture by Daphne H. WashingtonLecture by Daphne H. Washington

WHAT IS WHAT IS MANAGERIALISMMANAGERIALISM

Emerged within the Reinventing Gov’t Emerged within the Reinventing Gov’t movementmovement

Entrepreneurial managementEntrepreneurial management Using creativity to transform Using creativity to transform

organizationsorganizations Policy revolutionariesPolicy revolutionaries Forcefully argue for creative solutionsForcefully argue for creative solutions

REENGINEERINGREENGINEERING

Use of behavioral and technological Use of behavioral and technological sciencessciences

More sophisticated and radical than More sophisticated and radical than simple reorganizationsimple reorganization

Focuses on cost, quality , Focuses on cost, quality ,

service and speedservice and speed

REENGINEERINGREENGINEERING

Usually Includes the Following Steps:Usually Includes the Following Steps:

Process MappingProcess Mapping Customer AssessmentsCustomer Assessments Process VisioningProcess Visioning

REENGINEERINGREENGINEERING

Is a Radical Change StrategyIs a Radical Change Strategy Means Starting OverMeans Starting Over Requires looking at old processes with Requires looking at old processes with

new eyesnew eyes Must challenge old assumptionsMust challenge old assumptions

REENGINEERINGREENGINEERING

Barriers Include:Barriers Include:

Bureaucratic turf issuesBureaucratic turf issues Employee Resistance to ChangeEmployee Resistance to Change Lack of incentivesLack of incentives General skepticismGeneral skepticism

REENGINEERINGREENGINEERING

Examples from the Class??Examples from the Class??

EMPOWERMENTEMPOWERMENT

Gaining Power, by Giving away PowerGaining Power, by Giving away Power Manure Theory Manure Theory Productive PowerProductive Power Only works where manager is self-Only works where manager is self-

confident, doesn’t feel threatened by confident, doesn’t feel threatened by subordinates, and can delegate subordinates, and can delegate effectivelyeffectively

EMPOWERMENTEMPOWERMENT

Self Directed Work TeamsSelf Directed Work Teams Highly trainedHighly trained 6 – 18 people in group6 – 18 people in group Fully responsible for well-defined Fully responsible for well-defined

segment of worksegment of work

SELF DIRECTED TEAMSSELF DIRECTED TEAMS

Results in Fewer Job CategoriesResults in Fewer Job Categories

Needs Authority to go with responsibilityNeeds Authority to go with responsibility

Needs appropriate Reward systemNeeds appropriate Reward system

Frees upper management to Coach & PlanFrees upper management to Coach & Plan

ENTRPRENEURIALISMENTRPRENEURIALISM

Managers need to be transformational Managers need to be transformational leadersleaders

Entrepreneurial vision needed at every Entrepreneurial vision needed at every level in organizationlevel in organization

Citizens desire government to operate Citizens desire government to operate like businesslike business

But can It? Shouldn’t It have Constraints?But can It? Shouldn’t It have Constraints?

CONSTRAINTS CONSTRAINTS

Gov’t Operations aren’t inefficient solely Gov’t Operations aren’t inefficient solely because Stupid People work there.because Stupid People work there.

Inefficiency is due to :Inefficiency is due to : Competing interestsCompeting interests Accountability Accountability Due ProcessDue Process

PERFORMANCE PERFORMANCE MANAGEMENTMANAGEMENT

Primary responsibility of org’s leaderPrimary responsibility of org’s leader

Is the Systematic Integration of all aspects Is the Systematic Integration of all aspects of the enterpriseof the enterprise

View is toward performance outcomesView is toward performance outcomes

COMPONENTS OFCOMPONENTS OF

Specifying clear and Measurable GoalsSpecifying clear and Measurable Goals Systematic use of performance indicatorsSystematic use of performance indicators Use of Performance AppraisalsUse of Performance Appraisals Use of Performance IncentivesUse of Performance Incentives Linking people & $ resources to budget Linking people & $ resources to budget

cyclecycle Regular review at end of each planning Regular review at end of each planning

cyclecycle

THE POLITICS OF THE POLITICS OF

Can originate with an elected officialCan originate with an elected official

Can be coincidental to someone’s term in Can be coincidental to someone’s term in officeoffice

Can be the result of public demand or Can be the result of public demand or expectationexpectation

MANAGEMENT CONTROLMANAGEMENT CONTROL

To respond to the need to report to To respond to the need to report to external groupsexternal groups

To allow administrators to find out what’s To allow administrators to find out what’s going on inside an organizationgoing on inside an organization

CONTRACTING FOR CONTRACTING FOR PERFORMANCEPERFORMANCE

Formal, Informal or PsychologicalFormal, Informal or Psychological Between Supervisors & SubordinatesBetween Supervisors & Subordinates Between OrganizationsBetween Organizations Between organization and private sectorBetween organization and private sector Between organization and clientsBetween organization and clients Not the same as Employment ContractNot the same as Employment Contract

EMPLOYMENT CONTRACTEMPLOYMENT CONTRACT

Defines RoleDefines Role Responsibilities (Do’s and Don’ts)Responsibilities (Do’s and Don’ts) Terms and Conditions of EmploymentTerms and Conditions of Employment (e.g. reasons for discipline and (e.g. reasons for discipline and

termination)termination)

PERFORMANCE CONTRACTPERFORMANCE CONTRACT

Contains specific goalsContains specific goals Contains rewards and sanctions if key targets Contains rewards and sanctions if key targets

are (or not) achievedare (or not) achieved Rewards often financialRewards often financial Applies usually to executive level Applies usually to executive level Can apply in other areas where output Can apply in other areas where output

improvement can be measuredimprovement can be measured Model links individual to organizational Model links individual to organizational

performanceperformance

PURCHASER - PROVIDERPURCHASER - PROVIDER

One government agency enters in a One government agency enters in a contract with another who will deliver the contract with another who will deliver the services. services.

Contract specifies outcomes desired or Contract specifies outcomes desired or performance efficiency criteriaperformance efficiency criteria

May contain penalties May contain penalties Should contain incentivesShould contain incentives

PRODUCTIVITY PRODUCTIVITY MEASUREMENTMEASUREMENT

In public sector;In public sector; Measured by relationship between the Measured by relationship between the

Quantity and Quality of outcomes ..Quantity and Quality of outcomes ..

Minus the Quantity of Resources used to Minus the Quantity of Resources used to produce the goods or serviceproduce the goods or service

BARRIERSBARRIERS

Rigid rulesRigid rules Inflexible systems preventing or thwarting Inflexible systems preventing or thwarting

hiring, promoting or termination.hiring, promoting or termination. Lack of ability to reward and punishLack of ability to reward and punish Lack of ability to easily get additional Lack of ability to easily get additional

funds if neededfunds if needed Inability to reap benefit from savings or Inability to reap benefit from savings or

efficienciesefficiencies

T Q MT Q M

Brainchild of Edwards DemingBrainchild of Edwards Deming Uses statistical quality control methodsUses statistical quality control methods Key is management creating a culture Key is management creating a culture

receptive to the Quality conceptreceptive to the Quality concept Difficult to sustainDifficult to sustain Argued that annual performance Argued that annual performance

measurements focused on defectsmeasurements focused on defects

Customer CenteredCustomer Centered

New attitude of governmentNew attitude of government Correctly views citizen as customerCorrectly views citizen as customer 8 Principles governing customer service8 Principles governing customer service Survey often, Post Standards and Survey often, Post Standards and

Results, Benchmark Performance, Results, Benchmark Performance, Provide Choices, Make information easily Provide Choices, Make information easily available, Pleasant surroundings, Provide available, Pleasant surroundings, Provide Redress for poor serviceRedress for poor service