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College of Education
School of Continuing and Distance Education 2014/2015 – 2016/2017
UGBS 105
Introduction to Public
Administration
Session 2 – Institutions and Public Administration
Lecturer: Dr. Daniel Appiah, UGBS
Contact Information: [email protected]
Dr. Daniel Appiah, UGBS
Session 2
Institutions and Public Administration
2
Dr. Daniel Appiah, UGBS
Learning Objectives
By the end of this session, you should understand:
1.Understand the concept of institutions
2.Identify the components of an institution
3.Understand the nature of public institutions
4.Understand the types of institutions of organization
5.Analyze why public sector institutional reforms fail
6.Propose solutions for building strong public institutions of administration
3
Dr. Daniel Appiah, UGBS
Public Administration
is a System of Public Institutions
•Because we are going to learn about a special system of
institutions of organization called Public Administration, it is
appropriate that we begin this course by understanding the
definition of institutions
•We shall come to understand that not all public agencies of
administration operate with the same type of rules or
institutions. Understanding the different types of institutions of
Public Administration is therefore very important
•Once we understand when is meant by institutions, it will help
us to know how to design effective and efficient rules of Public
Administration to promote development
4
Dr. Daniel Appiah, UGBS
How Should Individuals With Different Values
Resolve Their Differences to Achieve Common
Goals?
5
Nations Fail Because of Ineffective
State Institutions to Promote
Development!
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What are Institutions?
Many scholars use the analogy of a game with players and rules
to define institutions as “The Rules of the Game” (Douglas North,
1991; Geoffrey Hodgson, 2006; Adrian Leftwich, 2007).
The definition of institutions as the rules of the game is useful in
helping us to understand the origin, content, and functions of
institutions in society. These issues have been expanded in
following working definition of institutions that I will use
Working Definition: Institutions are the humanly devised rules
of social, economic and political organization embedded with
normative values of appropriateness that provide incentives for
rational behavior of actors within and outside the organization 7
Dr. Daniel Appiah, UGBS
Institutions and Organizations:
Are They the Same or Different?
The concepts of institution and organization are sometimes used
interchangeably by scholars; but some scholars have emphasized that
the two concepts refer to different things and should be distinguished
(North, 1990; North, et. al., 2009)
It is important to note that institutions are created to organize human
relationships in society. Thus, institutions are rules of human
organizations in society and human organizations are institutions.
Perhaps institutions are best captured by Meyer and Rowan (1977) as
“institutionalized-organizations”
I will use the term agential-organization to refer to organized system
of human actors who have been recruited to function as a collective
unit within a hierarchical structure, and usually given resources, to
achieve common organizational goals
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Types of Institutions of
Organization Typology of institutions: Four types of rules of human organizations have
been identified based on the following two criteria: (i) the formal (i.e.
written) or informal (unwritten) nature of the rules of organization, and (ii)
the legal or non-legal status of the rules of organization. The four types of
rules of organizations are:
1.Formal legal rules of organization: These are written and legally binding
rules of organization
2.Formal non-legal rules of organization: These are written but not legally
binding rules of organization
3.Informal legal rules of organization: These are unwritten but legally
binding rules of organization
4.Informal non-legal rules of organization: These are unwritten and not
legally binding rules of organization
9
Dr. Daniel Appiah, UGBS
Types of Institutions of Organization
.
10
Types of rules of
organization
Legal status
Legal Non-legal
Nature of
form
Formal Formal legal rules Formal non-legal rules
Informal Informal legal rules Informal non-legal rules
Dr. Daniel Appiah, UGBS
Do Differences in Institutions
Matter for Public Administration?
Understanding the nature of the various types of institutions
is very important for the following reasons:
It will help policymakers to know what type of policy rules
are more likely to be implemented effectively by public
administrators, the judicial system, and other stakeholders
It will help public administrators to know what type of rules
are more likely to enhance transparency and accountability in
public administration
It will help policymakers and public administrators to design
and establish stable organizations of Public Administration 11
Countries with Ineffective Public Institutions of
Administration Fail to Promote Economic
Development!
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Public Institutions Matter: The Competitiveness of Public Sector
Bureaucracies in 14 out of 190 Countries (World Bank, 2014)
13
Rank Country
(Economy)
Getting
Credit
Starting a
business
Construction
Permits Getting
Electricity
Registering
Property Enforcing
Contracts
1 Singapore 3 3 3 6 28 12
2 Hong Kong 3 5 1 5 89 9
3 New Zealand 3 1 12 45 2 18
4 United States 3 20 34 13 25 11
5 Denmark 28 40 8 18 7 32
6 Malaysia 1 16 43 21 35 30
7 Korea, Rep. 13 34 18 2 75 2
8 Georgia 3 8 2 54 1 33
20 Mauritius 42 19 123 48 65 54
32 Rwanda 13 9 85 53 8 40
41 South Africa 28 64 26 150 99 80
51 Tunisia 109 70 122 55 72 78
56 Botswana 73 96 69 107 41 86
67 Ghana 28 128 159 85 49 43
Dr. Daniel Appiah, UGBS
Do Comparative Analysis of Public Institutional
Effectiveness Across Countries Matter?
Yes, comparative analysis of the effectiveness of institutions of public
administration matters for the following reasons:
�Businessmen are more likely to refrain from investing in countries notorious
for their institutional inefficiency
�Skilled expatriates are usually unwilling to work in countries with institutions
that cannot effectively protect investors, enforce contracts, and resolve
disputes
�International development donors are reluctant to give aid to countries
known for their waste and corruption
�Countries become more aware of their comparative strengths and weaknesses
and can be challenged to reform
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Dr. Daniel Appiah, UGBS
Institutional Change for Development: How Can We
Change Dysfunctional iInstitutions of Public Administration?
15
Dr. Daniel Appiah, UGBS
Changing Dysfunctional Institutions
Institutions are hard, but not impossible, to change after they have been established because of the benefits that they provide to some powerful stakeholders
Changing dysfunctional institutions of Public Administration require the following:
Ideas matter: A clear idea of what exactly needs to be changed and why it needs to be changed
Political power matter: A coalition of powerful supportive political actors in the Executive, Legislature, and society who have the authority to change the institutions.
Sustained action: Changing form-legal institutions involves a long process that requires sustained interest and action
16
Dr. Daniel Appiah, UGBS
Conclusion: What Type of Institutions
Promote Effective and Efficient Public
Administration?
Formal-legal rules have
been touted as more
effective in promoting
effective and efficient
public administration
But formal-legal rules may constrain innovation and make public administrators rigid and bureaucratic
17