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THE PUBLIC SECTORN I N T H E D I T I O N

Grover StarlingUNIVERSITY OF HOUSTON-CLEAR LAKE

; \ WADSWORTHt% CENGAGE Learning-

Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States

Contents

Preface xvii

Chapter 1 The Nature of Public Administration 1

Opening Case:What Do We Do Now? 1

Who Are Public Administrators? 3Where Do Public Administrators Work? 7

The Public Sector: Government 7The Building Blocks of Government 7The Size of Government • 8

The Public Sector: Nonprofits " ~ 10What Is a Nonprofit Organization? 10The Basic Division of Nonprofits 10Measuring the Size of the Nonprofit 11

The Private Sector 11Different Structures 12Different Incentives 12Different Settings 13Different Purposes 13

The Interdependence of the Three Sectors 14How Do Public Administrators Manage? 14

Management Skills 15Political Management 15

iv Contents

PART ONE

Program ManagementResource Management

Management RolesInterpersonal RolesInformation RolesDecisional Roles

Why Public Administration at All?When Did Public Administration Emerge as a Field of Study?

The Madisonian PerspectiveThe Wilsonian Perspective

Henri Fayol: Administration as a ProcessFrederick Wilson Taylor: The One Best Way

The Rooseveltian PerspectiveConcluding ObservationsConcepts for ReviewKey PointsProblems and ApplicationsFavorite BookmarksNotes

Closing Case:Federal Bureau of Investigation

POLITICAL MANAGEMENTThe Political-Leaal Environment of Administration

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O p e n i n g C a s e :Chancellor Michelle Rhee 50

Public Administration and the Policymaking Process 53The Policymaking Process: A Brief Overview 54Formulation of Policy 55Implementation of Policy 56

Program Operations 56Rulemaking 56Investigations 58Adjudication 59

A Simple Descriptive Model of the Administrative Process 60Public Administration and the Force Field of Politics 63

The Political Appointee Connection 66The Nature of the Tension 67Surviving in the Political Force Field:

Managing the Political Boss 68The Legislative Connection 69

Legislation with a Pervasive Influence 69

Contents

Oversight and AppropriationsSurviving in the Political Force Field: Influencing

LegislatorsThe Judicial Connection

Preventing LitigationAdministrative Law: The Essentials

Key Concepts in Administrative LawHow Political Strategies Complement Management StrategiesPolitical Competency

ResourcesExternal SupportProfessionalismBases of Individual Power

CostsStakeholdersStrategies

CooperationCompetitionConflict

Concepts for ReviewKey PointsProblems and ApplicationsFavorite BookmarksNotes

Closing Case:The Prince

Intergovernmental RelationsOpening Case:Supermayor - -

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Federalism and Intergovernmental Relations Compared 109Federal-State Relations: A Historical Perspective 110

Dual Federalism (1789-1933) 110Cooperative Federalism (1933-1960) 111Creative Federalism (1960-1968) 111New Federalism (1968-1980) 112The New New Federalism (1980-1993) 113Devolution? (1993-2009) 114Obama and States and Cities (2009-) 115Looking Ahead 117

The Supreme Court 117Policies and Programs 120

vi Contents

Federal-State Relations: An Economic Perspective 121Other Important Relationships in the Intergovernmental System 122

State-State Relations 123Constitutional Aspects 123Practical Aspects 123

State-Local Relations 125Local-Local Relations 126

Cities 126Counties and Special Districts 128Fragmentation, Cooperation, and Competition 129

Managerial Implications 131Principal-Agent Theory 131

Adverse Selection and Moral Hazard 133Principles of Agency Theory 134An Example 134

Negotiating 136Preparing 137Probing 140Proposing 140

Concepts for Review 142Key Points 143Problems and Applications 145Favorite Bookmarks 146Notes 147

Closing Case:The Katrina Breakdown 149

Chapter 4 Administrative Responsibility and Ethics 157

Opening Case:

The FDA Task Force 157

The Ideal of Administrative Responsibility 161Responsiveness 162

Degrees of Responsiveness 162Product 163Price 164Promotion 164Placement 164

Fairness 165Flexibility 165Honesty 167

Why Honesty Matters 167Why Public Officials Deceive 169

Contents vii

What Should Be Done? 170Corruption 171

Accountability 172Competence 173

External and Internal Controls 174Judiciary 176

The Administrative Process Revisited 176Accountability Through Liability 177The Importance of Judicial Control 179

Ombudsman 179Whistle-Blower Statutes 180Agency Head 181Citizen Participation 182Professional Codes 183Representative Bureaucracy 183Public Interest 184

Ethical Analysis 185Why Study Ethics? 186Four Approaches to Ethics 187

The Utilitarian Ethic 187Obligation to Formal Principles 189The Rights Ethic 189The Ethics of Aristotle 190

A Methodology for Ethical Analysis 194Concluding Observations 195Concepts for Review 196Key Points 196Problems and Applications 198Favorite Bookmarks 200Notes 200

Closing Case:Doing The Right Thing 202

PART TWO PROGRAM MANAGEMENT 205

Chapter 5 Planning 206Open ing Case:Robin Hood 206

Overview of Goals and Plans 209Some Useful Definitions 209Where Do Goals Come From? 211

Planning Types and Models 213

viii Contents

The Rational Planning ModelStrengths of the ModelWeaknesses of the Model

Logical IncrementalismUrban and Regional PlanningContingency PlansCrisis Management Planning

Three Forms of CrisisThe Stages of Crisis Management

Pitfalls of Public-Sector PlanningExpecting Continuance of the Status QuoTrying to Do Too MuchGetting Emotionally InvolvedOverplanningUnderplanningUnderestimating the Importance of Organizational

StructureDiscounting DetailsIgnoring Unintended Consequences

What Can Government Learn from the Private Sector?Defining the Mission and the Desired OutcomesInvolving StakeholdersAssessing the EnvironmentDefining the Desired OutcomesAligning Activities, Core Processes, and ResourcesPerformance Assessment

Performance MeasurementProgram Evaluation

Concluding ObservationsConcepts for ReviewKey PointsProblems and ApplicationsFavorite BookmarksNotes

Closing Case:A Strategy Is Born

Decision MakingOpening Case:Deciding How to Decide

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Identifying the Problem (or Opportunity) 252Gathering Facts 254

Framing a Decision 254Consulting People 255

Making the Decision: Five Analytical Techniques 260Cost-Benefit Analysis 260

Measurement of Costs and Benefits 260Distributional Impacts of Public Programs 262Discount Factor 262Decision Rules 264Cost-Effectiveness Analysis 265

Multiobjective Models 266Decision Trees 267Systems Analysis 269Group Decision-Making Techniques 273

Advantages and Disadvantages 273When to Use a Group 274Improving Group Decision Making 275

Implementing and Evaluating the Decision 275Program Evaluation 276

Define the Goals 276Translate Goals into Measurable Indicators 277Collect Data 277Compare Data 277

Decision Making in the Real World 279"Strategic Misrepresentation" in Estimating

Cost 279Biases in Human Decision Making 280Limitations of Systems Analysis 282

Concepts for Review 284Key Points 284Problems and Applications 285Favorite Bookmarks 287Notes 287

Closing Case:Wild Horses 289

Chapter 7 Organizing 294

Open ing Case:The Laboratory 294

Fundamentals of Organizing 297Division of Labor 298Hierarchy 299Span of Control 301

Contents

Chapter 8

Line and StaffCommon Organizational Designs

Leader-Follower OrganizationBureaucracyMatrix ApproachTeam Approach

What Is a Team?Types of TeamsAdvantages and Disadvantages

NetworkThe Process of Organizational Design

Limitations of the Organizational ChartFour Critical Questions in Organizational Design

Question #1 : In What Area Is Excellence Required toAttain the Organization's Objectives?

Question #2: What Activities Belong Together andWhat Activities Belong Apart?

Question #3: What Decisions Are Needed to Obtain thePerformance Necessary to Attain the Organization'sObjectives?

Question #4: Where Do Specific OrganizationalComponents Belong?

Symptoms of Effective and Ineffective OrganizationalStructure

Reorganizing, Reinventing, and Reforming GovernmentRationale for ReorganizationKey Concepts in ReinventionFour Pitfalls of Reform

Monetary IllusionsCultural ConflictsOrganizational DespecializationRedundancy Reduction

Concepts for ReviewKey PointsProblems and ApplicationsFavorite BookmarksNotes

Closing Case:Aravind Eye Hospital

LeadingOpening Case:It's Your Ship

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Research Perspectives on LeadershipCan Leadership Traits Be Identified?Leadership Styles

Leader as MotivatorHawthorne StudiesThe Human Resources ApproachMaslow's Hierarchy of NeedsDouglas McGregor: Theory X and Theory YFrederick Herzberg: Satisfiers and Dissatisfiers

Leadership CommunicationUsing GobbledygookMissing Opportunity: The Power of WordsLeading Groups and TeamsStages of Group DevelopmentKey Characteristics of Groups: Norms, Roles, and

Leading ChangeTwo Approaches to Organizational Change

Planned Organizational ChangeOrganizational Development

Actions to Reduce Resistance to ChangeConcluding ObservationsConcepts for ReviewKey PointsProblems and ApplicationsFavorite BookmarksNotes

Closing Case:Day One

ImplementationOpening Case:NYPD's Counterterrorism Division

Contents xi

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Three Perspectives on Implementation 382The Complexity of Joint Action 382Implementation as a System of Games 384Implementation as a Process to Be Managed 385

First Strategic Question: Who Will Run the Program? 386Governmental Operations 386Contracting 388

Scope 388Advantages and Disadvantages 389The Process 390

xii Contents

Grants 392Franchises 392Partnerships 393Vouchers 394Voluntary Service 394Divestiture: Selling Public Assets 395Implications for Public Administration 396

Second Strategic Question: How Will the Program Operate? 397Case Management 397

Acquisition 397Screening 397Assignment 398Prioritization 398Scope Definition 399Data Collection 399Interpretation 399Action 399Resolution 400Evaluation 400

Total Quality Management 400What It Is 400Central Theme 402The Concept of Continuous 403International Quality Standards 405

Compliance Management 406Tactical Considerations 407

Scheduling Models 408Backward Mapping 409Reengineering 411

Streamlining 412Limits to Reengineering 413

Management by Objectives (MBO) 414Management by Walking Around (MBWA) 415Other Considerations 416

Concluding Observations 416Concepts for Review 418Key Points 418Problems and Applications 420Favorite Bookmarks 421Notes 422

Closing Case:Friendly Fire 423

PART THREE RESOURCES MANAGEMENT 427

Chapter 10 Human Resources Management 428O p e n i n g Case :New Haven Firefighters 428

The Development of Public Personnel Management in theUnited States 432The Early Years 432Government by Shared Power 436

Professionals 436Unions 437Minorities and Women 438Public Managers 439Contractors 439

The Environment of Human Resources Management (HRM) 440Civil Service Reform 441Other Major Federal Laws 442

Overview 442Proving Discrimination 444Defending against Charges of Discrimination 445Affirmative Action 445Sexual Harassment 447

Public Employees' Rights and Responsibilities 447Political Rights 447Free Speech 448Privacy 449

Demographic Trends 450Organizational Culture 453

Getting the Right People 455Resources Planning 455Recruiting 455Testing 456Selection 459Classification and Compensation 460

Maximizing Performance 464Training and Management Development 464Advancement 466

Maintaining an Effective Workforce 466Retaining the Best Employees 466Discipline and Grievances 469Collective Bargaining: Six Critical Questions 470

Who Is Going to Bargain for Management? 471

xiv Contents

Who Is Going to Bargain for the Union?What Will Management and Labor Bargain About?What Happens if the Negotiators Cannot Reach an

Agreement?Should Public Employees Be Allowed to Strike?How Is a Contract Administered?

Concluding ObservationsConcepts for ReviewKey PointsProblems and ApplicationsFavorite BookmarksNotes

Closing Case:The Star Award

Public Financial ManagementOpening Case:Find Me The Money

The Federal Budget CycleExecutive PreparationLegislative ApprovalExecutionAuditUnderstanding the Federal Budget: A Guide for the

PerplexedThe State and Local Budget Process

State, Local, and Nonprofit Budgeting: An OverviewState and Local Budgeting: The Nuts and Bolts

AccountingCash ManagementPurchasingDebt AdministrationCapital Budget

The Purposes of BudgetingLine-Item BudgetingPerformance BudgetingProgram BudgetingZero-Based Budgeting

The Politics of BudgetingAre "Cuts" Really Cuts?Budgets and Political StrategiesDefending the Base

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Expanding the BaseProposing New Programs

TaxationCriteria for Evaluating Revenue Options

Tax EquityTax EfficiencyTax. Overlapping

Sources of RevenueFederal Tax Reform

What Ails the Federal Budget Process?EarmarksUncontrollable ExpendituresThe Budget Deficit

Concepts for ReviewKey PointsProblems and ApplicationsFavorite BookmarksNotes

Clos ing Case :

Dangerous Stratagems

Chapter 12 Information Management

Opening Case:

Making It Happen

Acquiring InformationAn Example of a Formal Reporting System: The British

Civil Service in IndiaAn Example of an Informal Network: The Eisenhower

White HouseCharacteristics of Useful Information

Processing InformationWhat Can Go Wrong Organizationally and IndividuallyData Mining and Data Warehousing

Securing InformationAccessing Information and Knowledge

Internal Access to InformationInternal Access to KnowledgeExternal Access to Information

The Art of Presenting InformationLooking Ahead: Whither E-Government?

Transparency and ProductivityTaking Responsibility

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xvi Contents

Concluding Observations 563Concepts for Review 564Key Points 565Problems and Applications 566Favorite Bookmarks 567Notes 567

Closing Case:The U.S. Army 569

Index 573

Box ListThe Johnson "Treatment" 90The Supreme Court and Federal-State Relations: The Early Years 118The New Public Management and the Moore Paradox 175Principles of Urban Design 219The Hawthorne Effect Revisited 351Working Profile: Mike Krzyzewski: Communicator 360Global Perspective: Two Approaches to Civil Service

Recruitment: A Global Perspective 457The Budget's Original Meaning 500What Is a Snack? 519Perspectives on Power Point 553