TP Final Exam

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ALDERSGATE COLLEGE
Solano, Nueva Vizcaya
THEORY AND PRACTICE IN PUBLIC ADMINISTRATION

First TERM SY-2021-2022
LONG TERM EXAMINATIONS (MID-TERM )
Name: DUGAY, SHAIRUZ CAESAR BRIONES

Agency: Department of Education/ Lamo NHS
1st MODULE
I. Define the following extensively:
a. Public administration according to Woodrow Wilson
- Public administration is a detailed and systematic application
of law. He divided government institutions into two separate
sectors, administration and politics.
- Every particular application of general law is an act of
administration. Illustrating this point, he says that the broad
plans of governmental actions are not administrative, though
the detailed execution of such plans is administrative. The
distinction according to him is between general plans and
administrative means. Thus, the study of administration
philosophical viewed, according to Wilson is closely connected
with the study of proper distribution of constitutional authority
b. PA according to Pfiffner
- Public administration consists of all those operations having
for their purpose the fulfilment or enforcement of public policy.
c. PA according to Gladden
- Public administration concerned with the administration of the
government.
d. PA according to Professor L.D. White

- Public administration consists of all those operations having
for their purpose the fulfilment or enforcement of public policy.
- This definition covers a multitude of particular operations in
many fields – the delivery of a letter, the use of public land, the
negotiation of a treaty, the award of compensation to an
injured workman, the removal of litter from a park, and
licensing the use of atomic energy.
SHAIRUZ CAESAR B. DUGAY, RN

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e. PA according to Luther Gullick

- Public administration is that part of the science of
administration which has to do with government and this
concerns itself primarily with the executive branch where the
work of the government is done.
f. PA according to Waldo
- Public administration is the art and science of management as
applied to the affairs of state.
g. POSDCORB in Public Administration with meanings of its letters

with example
1. Planning
- it means working out in broad outline the things to be
done, the method to be adopted to accomplish the
purpose.
- The planning stage would be doing the thorough
research about the number of people needed, team
size, work type etc.
- Planning determines the direction of the organisation.
On the other hand, a predetermined timespan means
that when time runs out, whatever result one has at the
time must suffice. The development of this timeline must
be closely monitored.
2. Organization
- it means establishment of the formal structure of
authority through which the work is subdivided,
arranged, defined and coordinated.
- the HR department making a list of people i.e.
supervisors and subordinates who could execute this
role.
- To achieve an end result, the manager needs the
necessary resources, including budget, raw materials,
personnel and their expertise, technology and
machines. He / she will have to organise all sorts of
things to achieve the end result. To get started as
efficiently as possible, it is important that the employees’
division of labour suits the end goal and end result as
well as possible.
3. Staffing
- It means recruitment and training of the personnel and
their condition of work.

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- the HR department making a list of people i.e.

supervisors and subordinates who could execute this
role.
- It is the task of the manager to first identify the
expertise, skills and experiences required for certain
positions. Based on this, job profiles are drawn up and
personnel can be recruited. The entire recruitment,
selection and training procedure falls under this staff
policy and ensures that the right type of employee is in
the right place.
4. Directing
- It means making decisions and issuing orders and
instructions.
- giving instructions and ensuring implementation of the
plan as per the requirement.
- In addition, the manager monitors but also motivates his
employees. He/ she tells them how best to do their
work, encourages them and drives them to take on
certain challenges
5. Coordinating
- it means interrelating the work of various divisions,
sections and other parts of the organization
- From this perspective, he/ she is able to coordinate
tasks and manage his employees. It is his/her task to
synchronise different departments and to bring them
together with the right end goal in mind.
6. Reporting
- it means informing the agency to whom the executive is
responsible about what is going on.
- Reporting provides insight into the progress and
agreements can also be recorded in this way. Other
essential information—such as problems with
employees, new processes, performances, interviews
and sales figures—is also made transparent through
reporting. Involved parties can also quickly find archived
reports.
7. Budgeting
- it means fixed planning, control and accounting
- In addition to employee wages, it is the task of the
manager to also properly monitor other expenditures
such as materials and investments. If wasteful
spending, overruns, errors or even fraud are
discovered, the manager is responsible for taking
action.
II. Enumeration:
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1. 5 branches of Public Administration

a. Organizational Theory and Behavior
- Organization and Management is one of the
oldest subfields of public administration. It
basically focuses on sub-areas like organization
theory and practice, dynamics of organization,
decision-making in administration, leadership and
other sub-areas. It particularly discusses the
theories, processes and techniques involved in
the organization and management of the national
government and its agencies. It also explores
modern management techniques such as
reinventing, reengineering and other improvement
methods in organization and management like
total quality management (TQM), which has
largely contributed to public administration
reforms. Organization and Management
b. Public Personnel Administration
- Public Personnel administration consists of
administrative processes. It involves people, its
most important element, therefore public
personnel administration is an equally important
field. In here, the definition of personnel
management as “the recruitment, selection,
development, utilization of, and accommodation
to human resources by organizations” is explored.
Specifically, it discusses on the evolution of public
personnel administration, arrangements of the
personnel system, and general attributes of
personnel functions in the public sector. It is also
concerned with the developments and current
trends in personnel administration.
- In the traditional public administration,
organization and management and personnel
administration were emphasized as salient
features of study in public administration.
Personnel administration has widened its scope
and evolved into human resource management or
human resource development. The inspiration
that not only these two fields complement but
supplement each other put them together into
what is now called “Organization Studies.”
c. Public Financial Administration
- Public finance belongs to the branch of
economics but that was during the earlier times.
With the emergence of the field of public
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administration, much interest has been directed

towards fiscal administration. Again, this subfield
of public administration covers a wide range of
issues and topics affecting government
operations like taxation, public expenditures and
borrowing, resource allocation, revenue
administration, auditing and intergovernmental
relations.
- As Briones (1996) puts it, “public fiscal
administration embraces the formulation,
implementation, and evaluation of policies and
decisions on taxation and revenue administration;
resource allocation, budgeting, and public
expenditure; public borrowing and debt
management; and accounting and auditing.”
Through the years, many researches were
devoted on these topics and issues; the
government has also introduced reforms like
reforms in tax administration, value added tax
(VAT), expanded value added tax (E-VAT),
procurement reforms, the medium-term
expenditure framework (MTEF), accounting
reforms, re-engineering the bureaucracy program
(REBP), transforming local finance, and many
others.
d. Comparative and Development Administration
- In studying local government administration, the
concepts of decentralization are taken into
account. Decentralization, as a process, is one of
the widely researched topics in promoting
development and democratic governance.
Administrative organizations and operations of
local governments; the structure and processes of
regional administration are likewise discussed. In
particular, local government administration may
also include topics on theoretical and empirical
perspectives of local government and regional
administration, community and institutional
development, local government
systems/procedure, intergovernmental dynamics,
local public finance or local fiscal administration,
local economic promotion, local and regional
development planning, local government
innovations and many others.
e. Public Policy Analysis

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- Policy Analysis and Program Administration

</li></ul><ul><li>The post-war years saw the
emergence of public policy as a subfield of public
administration. In the US, interest in policy studies
started in 1950s. In the Philippines, however, it
started not to long ago, in 1970s in the then
Institute of Public Administration in the University
of the Philippines. Generally, policy studies can
focus on the content of public policy, its
processes, models, theories and approaches of
public policy its impact as well as evaluation of
public programs and projects. Other significant
concepts, principles and techniques for
systematic analysis and decision - making in
public policy and management are also
considered in policy analysis. Dye (1995) said
that certain theoretical approaches and models
have been introduced in studying public policy
which include institutional, process, group, elite,
rational, incremental, game theory, public choice
and systems model
2. 2 importance of Public administration

a. Public administration has a very important place in the
life of people. It is the branch of government that
touches more directly and more strikingly than any other
the lives of human beings. All people use the service of
public administration almost in their activity. There are
several departments of administration like the
employment exchanges, industries department, medical
department, and agriculture department etc, which
affect almost every citizen in one way or another. With
the advancement of science and technology the
problem of maintaining effective coordination between
the administration and the rest of the community has
become very important. So the pursuit of knowledge of
public administration has become the most essential
element in the modern time.
b. The ideals of democracy, i.e., progress, prosperity and
protection of the common man can be obtained only
through impartial, honest and efficient administration.
An administrator should be neutral in politics and serve
faithfully any political party which comes in power. In the
field of government he must possess some aptitude for
getting along with politicians. Modern democracy has
brought in the concept of a welfare state. It has
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increased the scope of state activity leading to ever

increasing demands on public administration for more
and more services. Undue intervention of politicians in
administration and it may cease to be an effective
instrument for the realisation of nations’ ideals.
3. Differentiate Public Administration and Private

Administration
Public administration and private administration are two
species of the same genus, namely administration. But
administration exercises great power, more in public
administration. Public administration is often compared with
private administration with a view to finding out similarities and
dissimilarities between the two. Both the ‘classical organisation
theory’ and ‘human relation theory’ first originated in private
administration.
The management of affairs by private individuals or body of
individuals is private administration while management of affairs
by central, state or local government is public administration.
There are some points of similarity between public and private
administration. However, there are some basic differences
between the public and private administration. The following are
the important differences between the two types of
administration.
a. Political Direction
- In public administration there is political
direction. The administrator under public
administration has to carry out the orders
which he gets from the political executive with
no option of his own.
b. Profit Motive
- Public administration is conducted with the
motive of service while the motive of private
administration is profit making. If private
administration is useful to the public, its
service to it is a by-product of profit making.
Private administration will never undertake a
work if it does not bring profit.
c. Service and cost
- In public administration there is an intimate
relationship between service rendered and the
cost of the service charged from the public.
Only such an amount of money is raised by
taxation, which is necessary for the rendering
of service. In private administration income of
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funds exceeds expenditure because there is

usually an attempt to extract as much money
as possible from the public.
d. Nature of Functions
- Public administration is more comprehensive.
It deals with the various types of the needs of
the people. In a socialist State the scope of
State is still larger. Private administration does
not cover so many aspects of human life. It is
mostly concerned with the economic needs of
life.
e. Efficiency
- It is considered by many that in public
administration efficiency is less. Because of
extravagance, red tapism, and corruption,
which may dominate in public administration, it
may not be in a position to function in an
efficient manner. But in private administration
the level of efficiency is superior to public
administration. The incentive of more profits
impels the individuals to devote more to work.
f. Public Responsibility
- Public administration has responsibility to the
public. It has to face the criticism of the public,
press, and political parties. The private
administration does not have any great
responsibility towards the public. It is only
responsible to the people indirectly and that
too for securing its own ends and not for the
welfare of the people.
g. Public Relations
- The public and private administration also
differ on the principles of public relations.
Public relations have a narrower content in
public administration than in private
administration.
h. Uniform Treatment
- Public administration is consistent in
procedure and uniform in dealings with the
public. In such a system a civil servant cannot
show favour to some people and disfavour to
others. But private administration need not
bother much about uniformity in treatment.
i. Monopolistic

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- In the field of public administration, there is

generally a monopoly of the government and it
does not allow private parties to compete with
it. For example, no person can establish post
and telegraph, railways etc. But in private
administration, several individuals or
organizations compete with each other to
supply the same commodity or meet the same
needs. Thus there is no monopoly in private
administration.
j. Financial meticulousness
- Public administration has to be very careful in
financial matters. Public money is to be spent
meticulously and according to the prescribed
procedure. It is the legislature, which exercises
financial control over the executive. But there
is no difference between finance and
administration in private administration. There
is no external financial control.
k. Social Prestige
- Public Administration carries a greater social
prestige than private administration. Service to
the community is the basic characterising
public administration.
l. Social Consequence
- The social consequence of public
administration will be great because a defect
in it will do more harm to the public. But in
private administration this will be less. Even if
any harm is done by it will be of less
significance and thereby may be negligible.
The Public Administration has certain distinctive features,
which differentiate it from private administration. Public
Administration is far more closely tied up with the constitution and
formal laws of a country than private administration. It is thus
closest to political science and emphasises elements such as
equality, fairness and rule of law in decision- making. Private
administration, on the other hand, stands by profit, effectiveness,
cost- benefit analysis. The difference between the two is more
apparent than real. Both respond to the environment differently’
which inevitably produces consequences for the functioning of
the organisation and their management. It can be concluded that
public and private administration are the two species of the same
genus, but they have special values and techniques of their own
which give to each its distinctive character.

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2ND MODULE
I. Define the following extensively:
a. Administrative law according to Ivor Jennings
- Administrative law is the law relating to the administration.
It determines the organisation , powers and duties of
administrative authorities and indicates to the individual
remedies for the violation of rights
b. AL according to F.G. Goodnow

- Administrative law is that part of the public law which fixes
the organisation and determines the competence of the
administrative authorities and indicates to the individual
remedies for the violation of rights.
c. AL according to W.B. Murno

- Administrative law is defined as a system of jurisprudence
which on the one hand relieves public officials from
amenability to the ordinary courts for acts performed in
their official capacity and on the other hand sets up a
special jurisdiction to hold them accountable.
d. AL according to Dicey
- Administrative law is the law concerning the powers and
procedures of administrative agencies, including especially
the law governing judicial review of administrative action.
e. Rule of Law
- Rule of law means that “no man is punishable or can be
lawfully 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”. It implies
that no one in England can be punished arbitrarily.
- The Rule of law means equality before law. Dicey observes
that “not only with us no man above the law, but that here
every man, whatever be his rank or condition, is subject to
the ordinary law of the realm and amenable to the
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jurisdiction of the ordinary tribunals”. It implies that in

England, every citizen, rich or poor, high or low is subject
to uniform law and the same courts of law. If any public
official commits any wrong or exceeds the power vested in
him by law, he can be sued in any ordinary court and will
be tried in a will be tried in any ordinary court and will be
tried in an ordinary manner.
- Rule of law means that “the general principles of the
constitution are .... the result of judicial decisions
determining the rights of private persons in particular cases
brought before the courts”.
f. Delegated legislation
- ‘Delegated Legislation’ refers to the law –making power
conferred by legislature on the executive. This term is,
therefore, also known as Executive Legislation. Since the
law – making power given to the Executive is not its
original power, it is called subordinate legislation. It is void
if it violates the parent Act, or transgress the power granted
under the Act.
g. Administrative adjudication
- In the words of L D. White, “administrative adjudication
means the investigation and settling of a dispute involving
a private party on the basis of a law and fact by an
administrative agency.”
- Prof. Dimock defines Administrative adjudication as the
process by which administrative agencies settle issues
arising in the course of their work when legal rights are in
question.
h. Administrative tribunals
- They consist of administrative officials and experts and not
judges. Their procedure is simple and much more informal
than that of ordinary courts. The usual rules of evidence
are not observed. Lawyers are not allowed to appear.
Facts are ascertained through questioning by the hearing
officers.
II. Distinction between rule of law and administrative law

- Administrative law is the branch of law that deals with the
government and the decisions of the executive, such as
government contracts, or hiring or firing of government
servants. Rule of law is a legal concept which means that
when laws are broken, punishment or compensation must

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be according to law and not on outside criteria or on

personal basis.
III. Enumeration:
1. 8 reasons for the growth of delegated legislation
a. Lack of Parliamentary Time
- A welfare state postulates extensive legislative
activity. The enormous volume of legislative
business renders it imperative that Parliament
should enact laws, embodying broad principles,
leaving details to be supplied by the executive
departments.
b. Scientific and Technological Character of the Subject
matter
- Parliament is, generally speaking, a body of
laymen, certainly not of the various fields of
knowledge and learning. There are, therefore,
limitations on the ability of Parliament to tackle
scientific and technical matters.
c. Need to Secure Flexibility
- Law may require amendments, or modifications
with the change of times. Parliament is not always
in session. Hence, it cannot adapt the law to the
changing conditions. Delegation of this power to
the executive enables it to make alterations in the
law whenever deemed essential.
d. To Provide Unforeseen Contingencies
- Emergencies like war, famine, economic crisis
require prompt action. It is not desirable to wait
for the session of the Parliament to meet such
eventualities. Hence such a power needs to be
vested with the executive who is always prepared
to take action.
e. Legislature cannot foresee
- It is not possible for the legislature to foresee and
include in the law all contingencies which may
arise in case of large and complex matters.
Hence they are left to the departments to be
regulated and as when the opportunity arises.
f. Affected Interests Better Consulted
- Administrative agencies can make better
consultation with the interests affected than the
legislature which cannot conveniently arrange for
such consultations.
g. Administrator better aware of the requirements of the
situation
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- The administrator is better aware of the

requirements of the situation than a lay
parliamentarian. He can, therefore, draft rules in
the light of what is administratively feasible. Laws
passed by the legislature are not necessarily
concerned with the administrative feasibility of
rules. Hence, many a time they seem unworkable
and the Administrator finds himself in a dilemma.
In order to cope with such a situation, he may
enforce the laws in a way as to defeat its
purpose.
h. Rules to be Lenient in the Initial Stages
- Government is entering into new spheres
especially trade and commerce. If people get
adjusted to the new situation, government rules
may be stiffed. The administrative rule making
procedure alone can permit hardening of the rules
after passage of some time.
i. Proper Drafting of Rules
- Since rule – making is done in keeping with the
circumstances; drafting of rules is apt to be more
perfect than the legislation through the
Parliament. Hence it is preferred. Administrative
agencies offer the services of the expert and are
better equipped for experimentation than the
legislature.
2. Advantages of delegated legislation

a. Time of Parliament Saved
- Delegated legislation enables the parliament to
save time. Time, thus saved, can be more
fruitfully utilized by the legislature on important
issues of policy.
b. Flexibility of Rules
- Laws passed by the legislature are comparatively
rigid. Administrative rule, on the other hand, is
easily changeable in response to fast changing
needs, without a formal amendment of the Act.
c. Interests Affected Consulted
- Delegated legislation makes prior consultation
with the affected interests possible. Such a
consultation will make legislation more effective.
d. Expert Knowledge Utilized
- Parliament is composed of laymen. Delegated
legislation helps in making use of the expert

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knowledge and working out details on correct

lines.
e. Avoidance of Litigation
- Administrative legislation permits a definite
statement of policy thus avoiding possibility of
litigation or compulsion.
f. Prompt action in Emergencies
- Parliament is in session for a few months in a
year. If emergencies crop up during its interval,
they cannot be tackled promptly till the Executive
is empowered to meet them through its power of
issuing rules and regulations.
3. 6 disadvantages of delegated legislation

a. Individual Liberties at Stake
- It is apprehended that vesting of discretionary
powers with the officials turns democracy into
despotism. Concentration of legislative and
executive authorities results in jeopardising the
liberties of the individuals.
b. Delegation of Unlimited Powers
- Once this process of delegation of legislative
powers commences, it is apprehended that
unlimited powers may be delegated to the
Executive. In India for instance, the legislature
has been passing Skeleton bills, giving blanket
powers to the Executive.
c. Jurisdiction of Courts Ousted
- Delegated legislation often seeks to oust the
jurisdiction of the courts. This results in depriving
the citizens of judicial protection. The enabling
Act may clearly specify that the rules made
thereunder shall not be called in question in any
court of law.
d. Interest of the People Ignored
- It is generally contended by the critics that it may
serve the interests of the influential parties or the
interested groups, thus ignoring the interest of the
general masses.
e. Inadequate Scrutiny
- Inadequate scrutiny of the rules and regulations
by parliament makes delegated legislation
develop into despotism. This is rather unfair.

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f. Confusion and Chaos

- It is contended that too much flexibility leads to
confusion and causes chaos. Hence it very
adversely affects the administration.
4. 6 kinds of administrative adjudication

a. Advisory administrative adjudication which means that
the power of final decision is vested in the head of the
department or other authority
b. Administrative adjudication may constitute a part of the
regular functions of an administrative officer.
c. Administrative adjudication may be combined with a
legislative administrative process.
d. Regular suits may be filed against administrative
decisions.
e. Administrative adjudication may be adopted for
settlement of claims.
f. Administrative adjudication may sometimes serve as a
condition precedent to the performance of an
administrative act.
5. 4 causes of the growth of administrative adjudication

a. A by-product of welfare state
- The administrative tribunals rendering
administrative justice constitute a by – product of
welfare state. With the emergence of the welfare
state, social interest began to be given
precedence over the individual rights. The
existing judiciary failed to uphold the new system.
The new system of administrative adjudication
suited new social ends espoused by a welfare
state. It proved a potential instrument for
enforcing social policy and legislation.
b. Suitable to Industrialized and Urbanized Societies
- Administrative adjudication suits modern
industrialised and urbanized society as well. The
industrialised society necessitates positive and
prompt action which is possible if the problems
arising out of the new order are not left to the
mercy of ordinary courts.
c. Safety to be ensured
- A good number of situations are such as require
quick and firm action otherwise health and safety
of the people may remain in jeopardy. Such
cases, if to be dealt with in the ordinary courts of

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law, would causes immense loss to the state

treasury and undermine national prestige.
d. Standards of conduct to be devised
- The main business of the ordinary courts is to
settle disputes and not to set standard of human
behaviour. It is for the legislature to set such
standards. The legislature is not in a position to
prescribe in exact details the pattern of conduct.
This power is delegated by the legislature to the
administration. The disputes arising out of the
enforcement of these standards can be properly
tackled by the Administrative courts alone.
6. 5 advantages of administrative adjudication

a. Cheaper
- Administrative justice is cheaper comparatively. In
suits, lawyers may or may not appear. No court
fees are to be paid, no counsel is to be briefed,
no affidavits are to be sworn.
b. Speedy justice
- Justice by the Administrative Tribunals is speedy.
c. Useful in developing democracies
- In developing democracies which experiment with
new social and economic programme, ordinary
courts would be completely misfit. All the disputes
arising out of such programmes will get struck,
thus giving a setback to the programme itself
unless we such over the Administration Courts.
d. Fixing of standards
- The disputes which come for adjudication before
the Administration Tribunals are not concerned
with the proprietary or other claims of the
disputants but the fixation of public standards of
performance. Such standards of performance can
be determined only by these administrative and
not ordinary courts.
e. Flexibility
- The legalistic approach to problems is static,
unprogressive, and individualistic. The fast
changing society necessitates a progressive
attitude and an adaption of policies to meet
changing conditions.

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7. 5 causes of administrative adjudication

a. Violation of Rule of Law
- It violates the rule of law- the corner stone of
democracy. Rule of law stands for equality before
law, supremacy of law and due procedure of law
over governmental arbitrariness. The
administrative tribunals, with their separate law
and procedure often made by them, adversely
affect the celebrated principles of Rule of Law.
b. Limited right to appeal
- The right to appeal from the decisions of these
courts is either very limited or is non-existent. The
opportunity for judicial review is restricted.
c. Lack of Publicity
- The rules of procedure of administrative courts do
not provide for the publicity of proceedings.
Provision of oral hearing may not be there or it is
there it may not be open to the public and the
press.
d. Tribunal is not act judicially
- Tribunals are not manned by judicial luminaries.
As such, they do not have the impartial outlook.
e. Uniform procedures non – existent

- The administrative courts do not observe uniform
procedures. It leads to inconsistent and arbitrary
decisions. Fixed standards of conduct are
conspicuous by their absence.

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3RD MODULE
I. Define the Following extensively:
a. Organisation
- Organisation is the basic tool by means of which the
administrative process is kept operating.
- ‘Organisation’, “is the work of connecting inter-
dependent parts so that each has a special function,
act, office or relation to the whole”.
b. Organisation according to L.D. White

- “Organisation is an arrangement of personnel for
facilitating the accomplishment of some agreed purpose
through allocation of functions and responsibilities”.
c. Organization according to Pfiffnera.

- “Organisation consist of the relationship of individual to
individual and a group to groups which are so related as
to bring about an orderly division of labour”.
d. Organisation according to Luther Gullick

- “Organisation is the formal structure of authority through
which work sub-division are arranged, defined and
coordinated for the defined objective”.
e. Organisation ac ording to Milward

- “ Organisation structure is a pattern of interrelated
posts connected by line of delegated authority”.
f. Organisation according to Gladden

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- “organisation is concerned with the pattern of

relationship between persons in an enterprise, so
constructed as to fulfil the enterpriser’s function”.
g. Span of control
- By span of control mean the number of subordinates,
which a superior officer can effectively supervise, direct
and control. Span of control is simply the number of
subordinates or the units of work that an administrator
can personally direct.
- The span of control is the number and range of direct,
habitual communication contacts between the chief
executive of an enterprise and his principal fellow
officers.
h. Unity of command
- Unity of command means that no individual employee
should be subject to the orders of more than one
immediate superior. Thus it means that each individual
employee shall have only one man as his superior and
shall receive orders only from him. If he gets orders
from more than one officer it may difficult for him to
discharge his duties. Responsibility can be fixed only if
we know where the authority rests and this is not
possible if the authority stands divided. Absence of
conflict in orders, exercise of effective supervision over
the employee and clear fixation of responsibility are the
advantages of unity of command.
i. Delegation
- delegation means conferring of specified authority by a
higher to a lower authority. The scalar principles is the
principles of integration and binds the various levels and
units of the organisation with a continues chain of
authority. The essence of the scalar principle is
delegation of authority. Delegation of authority is a
feature common to all types of large scale
organisations. The smaller the organisation the lesser is
the need for division of authority. It is when an
organisation grows that the need for delegation arises,
because one person or a group of persons can no
longer make all the decisions. Authority and
responsibility along with duties must, therefore, be
divided. Delegation is one of the main ways for dividing
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and distributing authority. The extent of delegation of

authority, however, is inversely related to the size and
complexity of the organisation.
j. Coordination
- Coordination is an important principle of organisation.
No organisation can achieve the desired objective
without coordination. In a negative sense coordination
means the removal of conflicts and overlapping in
administration. In the positive sense it means to secure
cooperation and teamwork among the numerous
employees of an organisation.
k. Coordination according to Charles Worth

- “coordination is the integration of several parts into an
orderly whole to achieve the purpose of the
undertaking”.
l. Coordination according to L.D. White

- “coordination is the adjustment of the parts to each
other and of the movement and operation of parts in
time so that each can make its maximum contribution to
the product of the whole”.
m. Communication
- Communication has to be recognized as the first
principle of administration. Effective communication is
vital to the successful achievement of agency
objectives.
n. Communication according to Tead

- “the underlying aim of communication is a meeting of
minds on common issues”.
II. Enumeration
a. 7 characteristics of the Organisation
1. they are purposeful, complex human activities
2. they are characterised by secondary relationship
3. they have specialised and limited goals
4. they are characterised by sustained cooperative activity
5. they are integrated within a larger social system
6. they provide service and products to their environment
7. they are dependent upon exchange with their environment.
b. Theories of Organisation with their definition

21
1. Structural- Functional Theory

- This theory is also known as traditional or mechanistic
theory of organisation and a classical theory of
organisation. According to this theory, organisation is a
formal structure of plan, amenable to creation in
accordance with certain accepted principles in the same
way as the plan of a building which can be prepared in
advance by the architect according to some principles.
The whole concept of the theory is based on two
assumptions. Firstly, the theory assumes that there are
certain fundamental principles in accordance with which
an organisation can be built up to meet the
contemplated purpose or activity. Secondly, this theory
regards organisation as a machine wherein the human
beings are made to fit like cogs.
2. Human Relation Theory
- The late 1930’s marked the emergence of a revolt
against traditionalism in organisation theory. It was a
revolt against the dehumanisation of organisation. The
essence of this theory lies in its dominant emphasis on
people, on human motivation and on informal group
functioning. The theory rejects institutionalization. It lays
more emphasis on the day-to-day informal functioning
of the structure. It considers it more important and
indicative than the charts and maps.
c. 4 bases of an organization
1. Function
- When the organisation is built up on the basis of the
nature of functions to be performed it is said to be
organised on functional basis. Most of the organisations
in the modern governments follow functional principles
because it is useful in giving comprehensive service to
the people. In India many departments of the
government like health, education, defence, labour etc
are organised on these principles.
2. Process
- Process is a technique or primary skill of a specialised
type. Engineering, accounting, medical care, legal care
etc are examples of this basis. When an organisation is
built up on the nature of activity more or less specialised
it is said to have been organised on the principle of
process. Ministry of Law and Justice, Urban
Development, Housing etc are examples of such
organisations. It is a fact that only important process or
professional skills constitute the basis of departments.
22
In fact it is not always easy to draw a line between

function and process. For e.g. finance may appear to be
a process if we consider the special kind of skill required
in its management. But it is a function if we consider
that fiscal management is one of the central purposes of
any administrative organisation.
3. Clientele
- It means the body of persons to be served. Sometimes
some social groups have some social problems, which
require the particular attention of the government. When
a department is established to meet the special
problems of a section of the community the basis of
such department is said to be clientele or persons
served. In India the department of scheduled caste and
scheduled tribe and the department of rehabilitation are
organised on this principles.
4. Area or Territory
- Organisations spreading over a large area or territory
have the characteristics of area or territory. It is a fact
that the government cannot conduct the whole business
from a single place. Naturally it has to decentralise
many of its departments and locate them in the different
parts of the state. Ministry of External Affairs is an
example of this principle.
d. 4 basic features of the hierarchial of scalar process

1. A person will have only one immediate superior from whom he
will receive orders.
2. A person will not receive orders from lower status.
3. No intermediate level shall be skipped over in the dealing of
the people at the top with those lower level or vice versa.
4. A person who is given responsibility for a task will have
authority commensurate with this responsibility.
e. 5 merits of the scalar principles

1. Scalar system or hierarchical system serves as an instrument
of integration and coherence. It binds together the various
units and divisions into an integrated whole. It acts as a link,
which joins the various sections of an organisation most
harmoniously.
2. It enables us to fix responsibility at each level.
3. It serves a channel of communication both upwards and
downwards.
4. It simplifies the procedure for file movements.
5. It helps to decentralise decision – making and prevents
congestion of business at the top.
23
f. 5 demerits of the scalar principles

1. It creates superior – subordinate relationships in the
administrative system.
2. Procedure through the proper channel may create
unnecessary delay in administration.
3. Red tapism is another possible defect of the hierarchical
system.
4. Too much rigidity in administration and thus human
relationship which essence of good administration is missing
in it.
5. As the direction flows from top to bottom it kills the initiative of
the lower officers consequently resulting in indecisiveness and
efficiency.
g. 5 general principles of delegations

1. Delegation should be written and specific and it should be
made to a position rather than to an individual.
2. Only that much of authority should be delegated as it is within
the competence of subordinates to exercise safely.
3. Delegation should be properly planned and systematic.
Policies, regulations and procedures should be well defined as
to give no misunderstanding to the employees using
discretionary powers.
4. Finally there should be free and open lines of communication
between the delegators and delegates.
h. 8 hindrances of delegation
1. Lack of established methods and procedures
2. lack of means of coordination and communication
3. unstable and non-repetitive nature of work and size and
location of an organisation
4. Egotism to keep power
5. To remain in limelight and to take to credit of everything
6. fear of disloyalty on the part of subordinates
7. absence of emotional maturity
8. lack of confidence in the competence of the subordinates
i. 2 types of coordination
1. Internal coordination is concerned with the coordination of
activities of individuals working in an organisation
2. External coordination is concerned with coordinating the
activities of different organisational units.
j. 4 difficulties communication
1. the complexity of language
24
- Word differences are a big hindrance to mutual

understanding.
2. the ideological barriers
- Differences in political background, education, and
results in different social and political views.
3. lack of a will or desire to communicate is not known.
4. Size and distance
k. 7 factors for an effective communication

1. It should be clear
2. Consistent with the expectation of the recipient
3. Adequate
4. Timely
5. Uniform
6. Acceptable
4th MODULE
I. Define the following:
a. Chief Executive
- The chief executive is at the head of the
administrative system of a country.
b. Prime Minister
- The Prime Minister, who is the head of the
cabinet, regards other members as his
colleagues.
c. Staff agencies
- 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.
d. Auxiliary agencies
- Auxiliary agencies are the agencies, which serve
the line agencies rather than the public. They
perform functions common to all the departments.
A line agency, in order to perform primary duties,
has to meet with different kinds of activities like
recruitment, contracting, purchasing, storing,
supplying, accounting etc. in the past each
department performed all these functions.
25
e. Line agencies
- The principal agencies, which are organised on
the basis of major substantial purpose and are
concerned with the provision of services to the
people are known as line agencies. They are
concerned with the primary objects for which
government exists. From top to bottom a single
‘line’ of authority extends downwards from
secretary to the deputy secretary, under
secretary, superintendents and clerks. In fact they
deal directly with the people; supplying services
to the people, regulating their conducts,
implementing programmes sanctioned by the
legislature, collecting taxes etc.
f. Auxiliary agencies
- Auxiliary agencies are the agencies, which serve
the line agencies rather than the public. They
perform functions common to all the departments.
A line agency, in order to perform primary duties,
has to meet with different kinds of activities like
recruitment, contracting, purchasing, storing,
supplying, accounting etc. in the past each
department performed all these functions.
g. Department
- It means a part or portion of a larger whole. In the
technical phraseology of administration, however,
the term has a special connotation. It means the
biggest blocks or companies immediately below
the chief executive into which the entire work of
the government is divided. Thus a department is
the fundamental organisational units of
administration on which rest the obligation of
carrying on governmental operations. The
department is responsible and subordinates to
the chief executive.
h. Bureau
- If the headship of the department lies in a single
individual it is called a bureau type of
organisation.
i. Board
26
- If the head of the department is a body of persons

jointly responsible it is called a board type of
organisation.
j. Regulatory commission
- Independent governmental body established by
legislative act in order to set standards in a
specific field of activity, or operations, in the
private sector of the economy and then to enforce
those standards.
k. Public corporations
- Public corporations are the most important
innovation in political organisation and
constitutional practise.
II. Enumerate the following:

a. 6 functions of the Chief Executive
1. He formulates the administrative policy.
2. The chief executive authorizes the structure of the
organisation through which administration
functions.
3. The chief executive wields power in personnel
administration. He appoints and dismisses the
public officials.
4. The chief executive issues directives,
proclamations, orders, etc., to make the
administrative activities conform to the statutory
provisions.
5. He has budgetary responsibilities. The chief
executive prepares and submits the annual
budget to the legislature and after the latter’s
approval, executes and implements it.
6. Coordination is among his most important
functions.
b. 5 functions of the staff agencies

1. To ensure that the chief executive is adequately
and correctly informed.
2. To assist him in foreseeing problems and
planning future programmes.
3. To ensure that matters for his decisions reach his
desk promptly.
4. To exclude every matter that can be settled
elsewhere in the system.

27
5. To secure means of ensuring compliance by

subordinating with established policy and
executive direction.
c. 6 advantages of auxiliary agencies

1. The line agencies can devote time in the
performance of their primary activities.
2. It ensures specialisation of functions.
3. Since it avoids duplicity of work it secures
economy in administration. A single auxiliary
agency, by doing a work for all the departments
really saves time and money.
4. It has the advantage of closer supervision of the
auxiliary functions.
5. It also has the advantage of increased scope of
operations and reduced unit costs, such as in
large –scale purchasing, common godowns etc.
d. 4 disadvantages of auxiliary agencies

1. The establishment of auxiliary agencies may
weaken the responsibility of line agencies.
2. Auxiliary agencies may encroach upon the power
of the line agencies and thus there may arise
conflicts between the two.
3. The auxiliary agencies tend to consider their
mission superior to the objects sought by the line
agencies and hence happen to subordinate
questions of welfare of the economy.
4. Sometimes undue results in getting the required
service or goods on account of long negotiation
with the auxiliary agencies.
e. 4 functional principles
1. The Process Principle
- Department may be created on the basis of
technical skill involved in the performance
of the work. Thus the Department of Law,
Department of Space and Department of
Ocean Development are examples.
2. The Clientele Principle
- When a department is established to meet
the special problems of a section of the
community, the basis of such a department
is said to be clientele or person served.
Thus the Department of SC\ST is a
department organised on a clientele basis.
28
3. Geographical Principle
- When territory or geographical area serves
as the basis for the organisation of a
department it is called geographical
principles of departmental organisation.
Thus the basis of Foreign Affairs
department is geographical. Departments
may differ on another basis of their size,
structure, nature of work, internal
relationship etc.
f. 3 kinds of Boards
1. Administrative Boards
- Where the board is the head of the
department it is known as the
administrative board. For e.g. Railway
Board, Revenue Board etc.
2. Advisory Board
- It is often attached to the head of the
department for giving him advice on
administrative matters. But the advice is not
binding on the head. Generally advisory
board consists of technical hands or
experts, for e.g. Railway Advisory Board,
UGC, PSC etc.
3. Board in to Hierarchy
- Sometimes a board is found tied in the
hierarchy or at an intermediate level. It is
not empowered to run the department but
performs quasi-legislative and quasi-judicial
functions with regard to the specific field
entrusted to it. For e.g. the Electricity
Board, Board of Secondary Education etc.
g. 2 kinds of corporations
1. Corporations owned and controlled by the
government. These are known as government
corporations in which all or majority of members
of the board of directors consist of government
nominees.
2. Mixed corporation in which the government has
either some investment or some nominees in the
board of directors or both. They are
conventionally called mixed enterprises.
3. Corporations established by private parties under
authority of law and subject to some degree of
29
supervision by the government but there is no

government representation.
h. 4 bases of departmental organization

1. The functional or purpose principle
2. The process or professional principle
3. The clientele or person
4. The geographical principle
III. Differentiate the following:

a. Line and staff agencies
- In practice the line and staff agencies are strongly
intermingled. Sometimes it is very difficult to find
between the two. It has been realised that the
staff is not only advisory but also executive in
nature. On some matters the staff can command
and exercise power. At the same time we can find
certain differences between two agencies. The
following are important:
1. The line agencies are meant to
accomplish the purpose for which
they exist and as such they are an
end themselves. But staff agencies
exist to help the line agencies and
hence they are only means to an
end.
2. Line agencies come in direct contact
with the people whereas staff
agencies remain behind the curtain.
3. Line agencies are executing
agencies. But staff agencies are
advisory and consultative agencies.
4. Line agencies issue orders whereas
staff agencies have no power to send
such orders. They merely contribute
their specialised advice to the
executive.
b. Corporations and company

- A public corporation resembles a joint stock
company for the reason in the eyes of law both
are juridical persons acting in their names,
owning property and carrying out some economic
activities. But actually there are some differences
between a company and a corporation. Firstly,
each corporation is constituted under a separate
30
statute of the legislature. But each company is

incorporated under the General Company Act.
Secondly public corporations are constituted for
public benefit while the main motive of a company
is private profit and not public benefit. Thirdly,
public corporations have no shareholders. Private
individuals have no right to participate in or
control over the management of the corporations.
But in companies there can be private
participation.
c. Corporations and Departments

- There are differences between a corporation and
a department. Departmental system is generally
meant for the state regulatory activities whereas
the corporation system is for business
enterprises. Departmental system invariably
follows the ‘bureau’ system. It means that it is
headed by a single person called the secretary of
the department. But the corporation is headed by
a board of directors. Again corporation is a
corporate body and so it can be used in the court
of law. It has its own assets and liabilities but the
case of the department is entirely different.
Another difference is that corporations are
generally meant to produce revenues whereas
departments are mostly spending units of the
government. Again the corporation enjoys both
administrative and financial autonomy. On the
contrary the department works under the strict
control of the chief executive. Moreover, a
corporation is created by an act of the legislature
whereas a department can be created by an
order of the chief executive. The financial status,
methods and the procedures of the public
corporation differ from those of the department.
The corporation is not depending on the
legislature for the funds. But a department cannot
function without the annual grant. Finally there is
flexibility of procedure and policy in the working of
corporations whereas the working of a
department is characterized by red tapism,
routine formalism and rigidity.

31
5TH MODULE
a. Personnel administration
- The employees, officers, servants who fill various
positions in an organization are collectively known as
“personnel” in public administration.
b. Spoils system
- Spoils system means the public offices constitute spoils
to be enjoyed by the political party, which becomes
victorious at the polls.
c. Merit system
- Merit System implies a system in which the appointment
and conditions of service of an employee are
determined solely by his own merit, which includes his
educational and technical qualifications, personal
capacities and physical fitness.

32
d. Bureaucratic system
- In the broader sense the term is used to describe any
personnel system where the employees are classified in
a system of administration composed of a hierarchy of
sections, divisions, bureaus, departments and the like.
In the narrow sense the term is used to denote “a body
of public servants organized in a hierarchical system
which stands outside the sphere of effective public
control”. Bureaucracy is a form of administration which
can be seen in large scale organization and
bureaucratic personnel system is a pure recruitment
pattern adopted by the imperialistic government of the
past. Thus it may be used synonymous with an
autocratic personnel system.
e. Aristocratic system
- The word “aristocracy” means government by the
nobles. The aristocratic system began and developed in
England and was later adopted by other western
countries. Under this system a distinction is made
between different grade of personnel and promotion
from lower to the higher is strictly restricted. The
appointment to the higher class is not made through a
competitive examination but depends upon the
discretion of the chief executive. The officers hold office
purely on the basis of the personal judgment of the
appointing authorities. The officers are called
administrative chiefs. The relation between them and
the appointing authorities is personal in nature, and the
latter should have wide discretionary power in making
their selections. In India the administrative officers, for
instance, are known as secretaries, joint secretaries and
deputy secretaries.
f. Democratic system
- This system is based on the democratic principle that no
man is superior to others in enjoying rights. There is no
class division in this system. An employee may join at
the lowest level and can ultimately attain the highest
position. Since promotions are based on objective tests
there is no restriction for an individual to rise from one
class to another. Highly specialized qualifications are
required for the job. Again in this system public service
is not a lifelong career. Any individual can enter
government service at any stage and can leave it

33
whenever he likes. Mutual regard helps an employee to

attain the highest place in administration.
g. Tenure of Office
- One of the most important personnel administrations is
that of the tenure by which civil servants hold office. At
present there are three tenure systems. They are 1)
tenure at the will of the appointing officer 2) tenure for a
fixed number of years and 3) tenure during good
behaviour. The question is as to which of the three
tenures shall be employed for civil servants.
h. Tenure of the will of the appointing officer

- It is the system which is universally found in private
undertakings. In the government undertakings the case
is entirely different because the managing heads are not
directly interested in the financial results. But the private
management is more interested in mere exploitation of
workers. By making use of these employees they want
to make maximum profit. So this system would cause
severe hardships to the employees by unjust
dismissals. It will result in instability and inefficiency in
administration.
i. Tenure of the fix term

- This system does not suit the administrative class
because short terms can neither give capable persons
nor provide any opportunity for specialization and
experience in their profession. Tenure for the fixed term
is suitable only for the political executive. This system
would really make political office, political spoils to be
appropriated by the party victorious at the polls.
j. Tenure during the good behavior

- Because of the drawbacks of the other systems it is
highly necessary that tenure during good behaviour
should be applied to the administrative services.
According to this system a civil servant can remain in
office until the age of retirement if he performs his
functions satisfactorily. This system will ensure
efficiency in administration by making the office
permanent and continuous. It really makes government
services a permanent career. It becomes a profession,
which capable men would choose.

34
k. Government service a life career

- One of the important problems of personnel
administration is the extend to which government
services can be presented as a life career. By career we
mean a honourable occupation which one normally
takes up in youth with the expectation of advancement
and pursues until retirement. The purpose of the career
system is to attract young men and women of talent and
ambition to government service. Opportunities for
promotion and advancement should be provided so that
people may select government jobs as a permanent
career.
l. Recruitment
- Recruitment means attracting the proper and suitable
type of candidate for the post to be filled. It is selection
by a competent authority to a post in a service. It is an
important aspect of personnel administration. In ancient
days there was no problem of recruitment as the King
himself selected and appointed his employees.
m. Formal training
- Formal training is a training which is carefully
conceived, pre arranged and conducted under expert
guidance. Formal training is imparted with a view to
create administrative skill by well- defined courses at
proper stages in the man’s career. Formal training may
be discussed under four heads.
n. Pre-entry training
- It is the training given to the aspirants of public service
before they enter the service. In the strict sense pre-
entry training may take the shape of vocational or
professional training at technical schools or colleges. It
is a fact that candidates can be well trained through
liberal education also. In Britain there is pre- entry
training through liberal education. It is assumed that
general education broadens the outlook and widens the
mentality of young men.
o. Orientation training
- It aims at introducing an employ to the basic concept of
his job, to the new work environments, and to the
organization and its goals. Orientation training is gaining
importance gradually in India also. This is with a view to
keep the rural bureaucracy attuned to the new tasks.
35
The National Institute of Community Development

Hyderabad is devoting special attention to this problem.
p. In service training
- It is a sort of training which is imparted to the candidates
after their selection to the public service. This training
will stimulate the employees to make best efforts and to
improve their performance. It will boost the morale of
the employees.
q. Post entry training

- Post entry training is a training imparted to the
employees during the course of his services. It aims at
enabling the employees for a better performance.
Refresher course and self- efforts are the two ways
through which post entry training is usually imparted.
For conducting refresher courses the government may
hold seminars by inviting officials of different
departments.
r. Promotion
- Promotion means an appointment from a given position
to a more difficult type of work and greater
responsibility, accompanied by change of title and
usually an increase in pay.
s. Merit principle
- Merit principle means that promotion would be made on
the basis of qualifications and achievements of the
employee irrespective of the high length of service. The
most meritorious or best – qualified persons would be
promoted. It provides due incentive to the efficient and
hard working employees.
t. Personal judgement of the head of the department

- The Head of Department is the right person to judge the
merit of the employees as he maintains close contact
with them. This system has the advantage of being both
simple and comprehensive. But this system can work
only in small organizations. Moreover, this system is
highly subjective and may be subject to favouritism and
personal considerations. In order to avoid this defect it
is suggested that promotion of the employees should be

36
placed in the hands of a board, organized in each

service.
u. Promotional examination
- Promotion may also be made on the basis of a written
examination. This written examination may be an open
competition or a limited competition or merely a pass
examination. In the open competition system, any one
of, whether within the service or outside the service can
compete for the post. This system is justified on the
ground that it widens the range of selection and new
blood and fresh ideas can be injected to the
department.
v. Service ratings
- Under this system the qualifications of the employees
for promotion are determined on the basis of service
records. This is also called efficiency rating.
Maintenance of service records of the employees
enables the promotion making authority to gather the
necessary data on the basis of which efficiency may be
evaluated. In the U S A, efficiency rating has been
made a very elaborate affair.
II. Enumerate the following:

a. 4 merits of the spoils system
1. The American faith in democratic principle induced them
to opt for a spoils system. They advocate equality of
rights and opportunities. As such no man has any more
rights to position than another. The simplicity of their
administration during the eighteenth century was also
responsible for upholding such a view.
2. Personal motive also played a predominant part in
opting for such a system. The Chief Executive is in a
position to get assistance from a band of loyalists
chosen by him on the basis of their personal
qualifications.
3. The spoils system is fully consistent with the system of
party government. The policies of a party can be
properly implemented by the officials appointed by the
party chief.
4. The theory of rotation of the office also favours the
system. This system is considered as an effective
means of stopping the government from becoming a
caste alien to the people.

37
b. 4 defects of the spoils system

1. The spoils system is a bane on efficient administration.
Inefficiency of administration and political corruption will
be the result of it.
2. It causes a profound degradation into the life of
politicians. Political parties may contest for protecting
selfish motives rather than for achieving public welfare.
3. In the spoils system the employees may use their
offices illegitimately to promote the welfare of their
political parties or political leaders.
4. Frequent replacement of high administrative officials is
detrimental to the continuity, which is very essential for
efficient administration.
c. 4 advantages of the merit system

1. By making administration free from political parties the
merit system really increases its efficiency.
2. In this system the right man is put at the right place and
full justice is done by providing equal opportunities to all
the citizens to compete with any office of the state.
3. It frees the employees from economic worries. The
adoption of equitable rates of remuneration and proper
retirement benefits will make them free from economic
worries.
4. Neutrality in politics will naturally lead to efficiency in
administration.
d. 2 disadvantages of the merit system

1. Since power of appointment is concentrated in the civil
service commission, the principle of responsibility
stands undermined. It is generally considered that
workers must be motivated towards effective
performance by their own programme leaders and
supervisors. The directing officers should have control
over their subordinate staff.
2. In the merit system the loyalists may not be recruited
and there may be frequent conflicts between the
political heads and the permanent services.
e. 3 advantages of the bureaucratic system

1. This system produces highest degree of efficiency
2. It can be used well as an instrument of political
suppression.
3. It secures unity and concentration of power, which are
very essential for effective administration.

38
f. 4 disadvantages of the bureaucratic system

1. It has no place in democracy because there is no
popular control. It is highly necessary that the public
services should be responsible to the public and
responsive to their needs.
2. This system causes a wide gap between the public
servants and other classes of the society.
3. It makes public officials not only unresponsive but also
turns them hostile to the common man.
4. Concentration of too much power with the officials and
the head of administration may tempt them to act in a
tyrannical manner.
g. 2 advantages of the aristocratic system

1. This system beautifully combines the principles of
representative government with efficient government.
The minister who is a political chief represents the
popular feature of administration while the secretary
who has acquired the position after long training and
experience represents the expert character. The
combination of popular sovereignty and expertness
naturally leads to more efficiency and accuracy.
2. The discretion given to the ministers in selecting their
administrative personnel helps in maintaining
harmonious relations between them and the officers.
h. 4 disadvantages of the aristocratic system

1. This system is said to be highly undemocratic because
it creates a class rather than a representative civil
service. Administrative class is taken from the highest
class of society, the executive from the middle and
others from the lower middle class
2. It creates conservative administrators who may not be
ready to implement reforms in the country.
3. The low age limit debars people hailing from rural areas
for competing for administrative services.
4. It debars the lower grade employees from getting
promoted to higher administration posts. Lack of
incentives to promotion may impair efficiency also.
i. 2 essentials of promotion
1. It is essential to secure the morale of the service that
the employees who are not given promotion should be
made to feel that their exclusion from promotion is not
arbitrary.

39
2. The need for principles of promotion is needed because

opportunities for promotions are limited. A good number
of employees cannot get any promotion and happen to
retire from the same class in which they had started
their career.
j. 7 advantages of seniority principle

1. It is an objective criterion. So it cannot be misused.
2. Senior man is more experienced. Experience should be
a qualification for higher post.
3. It is a fair and just basis of promotion because
everybody gets an opportunity for promotion.
4. Interference by politicians can be avoided.
5. It boosts the morale of the employees as they are sure
of promotion at their turn.
6. It leads to automatic promotion.
7. The principle of seniority is simple.
k. 4 disadvantages of seniority principle

1. It does not lead to the selection of the best. There is no
guarantee that the senior man is more competent than
the junior.
2. It does not ensure that every officer will get a higher
post and hold it for a reasonable period.
3. If seniority alone is the basis of promotion, employees
would not make any effort for self- improvement.
4. For the organization as a whole the system may prove
to be dangerous because the senior may not
necessarily be efficient or intelligent.
l. 5 advantages of the democratic system

1. This system provides equal opportunities to all. Since
merit is the only criterion for selection it is based on
justice and fair play.
2. Since there is no limit to promotion it provides incentive
to efficient work. Through hard work any employee can
achieve the highest place.
3. Since there is no age restriction the system provides a
large scope for selecting the talented.
4. It is more economical as the state saves the training
cost. Ambitious employees will get training in the
industries where they seek jobs.
40
5. It is based upon the democratic principle that every

citizen is equally entitled to public office.
m. 3 disadvantages of the democratic system

1. Too much specialization in public administration may
create narrow vision and outlook among the personnel.
2. The top management is placed in the hands of
amateurs who hold office for the particular period. Since
they may not be officers who can discharge their duties
well and also lack qualities of general administration,
the highest permanent officers in the system ie, the
Bureau chief may be over burdened.
3. Public service ceases to be career service.
n. 4 essentials of career system

1. there should be security and permanence of job.
2. there should be equal opportunities for all citizens to
compete for government services.
3. there should be equal pay for equal work.
4. full freedom and opportunity of advancement should be
provided.
o. 2 methods of recruitment
1. selection from without the service or recruitment
2. selection from within the service or promotion.
p. 7 merits of recruitment
1. Recruitment by promotion provides ample opportunities
for advancement to the employees. It is an incentive to
the hard working employees.
2. The expectation of promotion for honest and intelligent
work will heighten the morale of the employees. The
experience gained by the employees in the lower jobs
helps them to undertake higher responsibilities.
3. The defect of the examination system can be removed
through recruitment from within or promotion. The best
criterion to judge one's worth is his own work.
4. Procuring efficient employees through this system is
easier than that of direct recruitment.
5. It is economical for the government as the cost of
training is saved.
6. The burden of public service commission is lessened in
this system. It avoids notifications, examinations and
interviews.
41
7. It reestablishes the human factor in public

administration.
q. 3 demerits of recruitment
1. It is said that this method narrows down the area of
selection. When the selection is made from within the
service it results in the selection of less capable officers.
2. Selection from within through promotion may lead to
stagnation and conservation. New innovation cannot be
seen in such a system. It is highly necessary to inject
new blood to the administrative system in the form of
direct recruitment.
3. Again it is said that since recruitment is confined to
those who are already in service it undermines the
principle of equality completely ignoring academic
brilliance. This system gives consideration only to
experience.
6th MODULE
a. Bureaucracy
- bureaucracy is the term usually applied to a
system of government , the control of which
is completely in the hands of the officials
that their power jeopardizes the liberties of
the ordinary citizen
- a government of officials

42
- bureaucratization means specialization,

hierarchies and long lines of
communication
- a system of administration characterized by
expertness, impartiality and the absence of
humanity.
b. Guarding bureaucracy
- Guardian Bureaucracy is that which is
dedicated to the general welfare of the
community. It acts as a champion of justice
and custodian of the community's welfare.
The ancient Chinese administrative system
was of this type.
c. Caste bureaucracy
- This type of bureaucracy has a caste base.
Most of the civil servants belong to the
aristocratic families. Thus in this system
civil servants are taken from the upper
strata of the society. It is prevalent in
oligarchic political systems.
d. Patronage bureaucracy
- If public appointments are made on the
basis of personal favour or as political
rewards, it is termed as patronage
Bureaucracy. The spoils system prevalent
in the U.S.A provides for such a type of
bureaucracy.
e. Merit bureaucracy
- If the civil servants are appointed on the
basis of merit, through a competitive
examination, it is termed as Merit
Bureaucracy. It aims at an efficient public
service and is taken as a career open to
talent.
f. Union public service commission

- The Union Public Service Commission
(UPSC) is the central agency authorized to
conduct the Civil Services Examination,
Combined Defence Services Examination,
National Defence Academy Examination,

43
Naval Academy Examination and

Combined Medical Services Examination.
g. State public service commission

- The state Public Service Commission
caters to the recruitment activities of the
Indian States. Article 315 of the Indian
Constitution provides that there shall be a
State Public Service Commission for each
state. There may be a Public Service
Commission in two or more states. The
composition of the State Public Service
Commission is more or less similar to that
of the Union Public Service Commission.
II. Enumeration:
1. 3 characteristics of bureaucracy
a. The regular activities required for the
purposes of the bureaucratically governed
structures are distributed in a fixed way as
official duties.
b. The authority to give the commands
required for the discharge of these duties is
distributed in a stable way and is strictly
delimited by rules concerning a coercive
means, physical, or otherwise, which may
be placed at the disposal of officials.
c. Methodical provision is made for the
regular and continuous fulfillment of these
duties and for the execution of the
corresponding rights.
2. 6 criteria of bureaucracy according to Prof.

Friedrich
a. Functions
b. Qualification for Office
c. Hierarchical organization and discipline
d. Objectivity of method
e. Precision
f. consistency or continuity involving
adherence to rules and keeping of records,
g. the exercise of discretion involving secrecy
in regard to certain aspects of government.
3. 4 types of bureaucracy
a. Guarding bureaucracy
44
- Guardian Bureaucracy is that which is

dedicated to the general welfare of the
community. It acts as a champion of justice
and custodian of the community's welfare.
The ancient Chinese administrative system
was of this type.
b. Caste bureaucracy
- This type of bureaucracy has a caste base.
Most of the civil servants belong to the
aristocratic families. Thus in this system
civil servants are taken from the upper
strata of the society. It is prevalent in
oligarchic political systems.
c. Patronage bureaucracy
- If public appointments are made on the
basis of personal favour or as political
rewards, it is termed as patronage
Bureaucracy. The spoils system prevalent
in the U.S.A provides for such a type of
bureaucracy.
d. Merit bureaucracy
- If the civil servants are appointed on the
basis of merit, through a competitive
examination, it is termed as Merit
Bureaucracy. It aims at an efficient public
service and is taken as a career open to
talent.
4. 8 evils of bureaucracy
a. Circumlocution
- The greatest criticism of bureaucracy
is about its lengthy and roundabout
way of doing the work. The
bureaucrats are very particular in
following the formal rules and
regulations. Even if the matter is of
an urgent nature it has to pass
through all the stages of its official
procedure. In the words of Bagehot
“it is an inevitable defect that the
governments will care more for
routine than for the results”.
45
b. Red- tape
- Closely associated with
circumlocution there is the defect of
red- tapism. It means blind trained in
rules and regulations they give
undue importance to them rather
than to the genuine needs of the
community. They forget the fact that
the rules and regulations exist for the
service of the community. Following
the prescribed rules is not itself bas,
but the blind attachment to them
certainly impairs the efficiency of
work.
c. Formalism
- Another defect of bureaucracy is it
excessive adherence to formalism.
Too much use of forms and
formalities makes the official lose his
sense of judgment and initiative. The
language and the forms of official
letters and the method of making
note on the file and sending it
upwards, all are fixed beforehand
and each office acts mechanically in
the prescribed manner.
d. Unresponsiveness
- Bureaucracy is not usually
responsive to the needs of the
people. It considers itself as the self-
appointed guardian and interpreter of
public interest. It keeps on following
its old standardized procedures and
does not react to the changing
political climate of the country. Even
in India we can find civil servants
who think themselves as a separate
and superior class to all other people
whom they are destined to govern.
As a result of the day-to-day routines
civil servants develop special
preferences, antipathies and
discriminations. Bertrand Russell
says that bureaucracy tends to
develop a negative psychology
perpetually prone to prohibitions.
46
e. Despotism
- Since bureaucracy craves for power
it has been condemned as despotic.
It usurps the powers of the
legislature on the one hand and
sidetracks the courts on the other. In
fact the government services are
taking more and more powers to
themselves. The power hungry
bureaucrats have an inherent lust for
power. They are really becoming
despotic and their despotism wears
cloaks of ministerial responsibilities
and delegation by the parliament.
f. Corruption
- Corruption is the malady of Indian
bureaucracy. Corruption has gone
into the very root of the bureaucratic
structure. The civil services are in
general prone to illegal extortion of
money from the people before doing
their work. The spoils system, which
prevails in America, also has
corrupting influence on the American
political system in particular and
public in general.
g. Empire building
- Bureaucracy perpetuates the evil of
dividing the work of government into
many isolated and self – dependent
sections, each pursuing its own
ends. These units thus develop the
tendency of being independent units.
h. Yesmanship
- The top bureaucrats who are political
favourites become the perfect
yesman of their political boss. In their
turn they expect yesmanship from
their subordinate officers. Such blind
obedience of the bureaucrats will
weaken the efficiency of
administration and lower the morale
of the honest employees
5. 5 functions of the commission

47
a. Recruitment to services & posts under the

Union through conduct of competitive
examinations- This is the regular mode of
recruitment where an examination is
conducted followed by an interview.
b. On the suitability of officers for appointment
on promotion as well as transfer-on-
deputation
c. Advising the Government on all matters
relating to methods of Recruitment to
various services and posts
d. Disciplinary cases relating to different civil
services
e. Miscellaneous matters relating to grant of
extraordinary pensions, reimbursement of
legal expenses etc
6. 5 functions of the state public service

commissions
a. To conduct examinations for the
appointments to the service of the State
Government.
b. To advise on all matters relating to
methods of recruitment to State’s Civil
service posts.
c. To advise on the principle to be followed in
making appointments, promotions,
transfers etc.
d. To advise all disciplinary matters.
e. To advice on the settlement of claims etc.
ALDERSGATE COLLEGE
Solano, Nueva Vizcaya

48
FINAL EXAMINATIONS
Management Theory and Practice
Name: DUGAY, SHAIRUZ CAESAR B.

Office/Agency: DepEd, Lamo National High School
Course: MPA-2
I. Define extensively the following terms:

1. Authority
 Authority, in simple words, is the right way of commanding
subordinates, issuing orders and instructions, and exacting
obedience from the team. It is also the right of the manager
to make decisions. Also, to act or not to act depends on how
he perceives the objectives of the organization. The
presence of leadership qualities and traits like intelligence,
experience, etc., usually, enhance authority. However, as an
important key to the manager’s job, authority is the power to
command others and decide to act or refrain from acting to
achieve the organization’s goals. A manager needs authority.
It makes his position real and gives him the power to order
his subordinates and get them to comply. When there is a
chain of superior-subordinate relations in an organization, it
is the authority which binds and provides a basis for
responsibility.
2. Bureaucracy
 specific form of organization defined by complexity, division
of labour, permanence, professional management,
hierarchical coordination and control, strict chain of
command, and legal authority. It is distinguished from
informal and collegial organizations. In its ideal
form, bureaucracy is impersonal and rational and based on
rules rather than ties of kinship, friendship, or patrimonial
or charismatic authority.
3. Brainstorming
 Brainstorming is a method of generating ideas and sharing
knowledge to solve a particular commercial or technical
problem, in which participants are encouraged to think
without interruption. Brainstorming is a group activity where
each participant shares their ideas as soon as they come
to mind.

49
4. Centralization
 Centralization refers to the process in which activities
involving planning and decision-making within
an organization are concentrated to a specific leader or
location. In a centralized organization, the decision-making
powers are retained in the head office, and all other offices
receive commands from the main office. The executives
and specialists who make critical decisions are based in
the head office.
5. Devils advocacy
 Devil’s Advocacy: when someone pretends, in a
discussion or argument, to be against an idea or plan that
has a lot of support in hopes of uncovering flaws or
mistakes.
6. Esprit de corps
 ‘ESPIRIT DE CORPS' here means team spirit and team
work. This principle emphasizes on team work. 'UNITY IS
STRENGTH' is the essence of this principle. Fayol
suggested that there should be a team spirit in the
organisation and all the employees must consider
themselves as member of the organisation.
7. Ethics
 Ethics in management refers to a company’s social
responsiveness. It is ‘the discipline that deals with what is
good and evil, or right and wrong, or moral responsibility
and duty.’ In other words, ethics in management can be
defined as a set of moral principles. Principles that govern
the actions of a person or a group. It is a norm of behaviour
that guides leaders and managers in their day-to-day
actions. Company core values shape business ethics. And
the establishment of an ethical culture relies
on leadership. It is particularly true of leaders who display
integrity, unity, and respect.
8. Security of tenure
 Security of tenure is a term used in political science to
describe a constitutional or legal guarantee that a political
office-holder cannot be removed from office except in
exceptional and specified circumstances. Without security
of tenure, an office-holder may find his or her ability to
carry out their powers, functions and duties restricted by
the fear that whoever disapproves of any of their decisions

50
may be able to easily remove them from office in revenge.

Security of tenure offers protection, by ensuring that an
office-holder cannot be victimised for exercising their
powers, functions and duties. It enables the democratic or
constitutional methodology through which an office-holder
comes to office not to be overturned except in the strictest
and most extreme cases.
9. Tariff
 Tariffs are duties on imports imposed by governments to
raise revenue, protect domestic industries, or exert political
leverage over another country. Tariffs often result in
unwanted side effects, such as higher consumer prices.
Tariffs have a long and contentious history, and the debate
over whether they represent good or bad policy rages on
to this day.
10. Free trade

 free trade, also called laissez-faire, a policy by which a
government does not discriminate against imports or
interfere with exports by applying tariffs (to imports) or
subsidies (to exports). A free-trade policy does not
necessarily imply, however, that a country abandons all
control and taxation of imports and exports.
11. National culture

 National culture is the norms, behaviors, beliefs, customs,
and values shared by the population of a sovereign
nation (e.g., a Chinese or Canadian national culture). It
refers to specific characteristics such as language, religion,
ethnic and racial identity, cultural history and traditions.
12. Values
 value has been taken to mean moral ideas, general
conceptions or orientations towards the world or
sometimes simply interests, attitudes, preferences, needs,
sentiments and dispositions. Values defined in
Organizational Behaviour as the collective conceptions of
what is considered good, desirable, and proper or bad,
undesirable, and improper in a culture.
13. Motivation

51
 Motivation is a powerful tool in the hands of a manager for

inducing his subordinates to act in the desired manner by
satisfying their needs and desires. It is concerned with how
behaviour gets started, is energised, initiated, sustained
and directed. motivation may be described as the process
whereby an individual is given the opportunity to satisfy his
needs by pursuing certain objectives.
14. Norms
 Norms are a fundamental concept in the social sciences.
They are most commonly defined as rules or expectations
that are socially enforced. Norms may be prescriptive
(encouraging positive behavior; for example, “be honest”)
or proscriptive (discouraging negative behavior; for
example, “do not cheat”).
15. Planning
 Planning is the fundamental management function, which
involves deciding beforehand, what is to be done, when is
it to be done, how it is to be done and who is going to do it.
It is an intellectual process which lays
down an organisation’s objectives and develops various
courses of action, by which the organisation can achieve
those objectives. It chalks out exactly, how to attain a
specific goal. Planning is concerned with setting objectives,
targets, and formulating plan to accomplish them. The
activity helps managers analyse the present condition to
identify the ways of attaining the desired position in future.
It is both, the need of the organisation and the
responsibility of managers.
16. Recruitment
 Recruitment is the process of attracting, screening, and
selecting employees for an organization. The different
stages of recruitment are: (a) job analysis involves
determining the different aspects of a job through, for
example, job description and job specification. The former
describes the tasks that are required for the job, while the
latter describes the requirements that a person needs to do
that job. (b) sourcing involves using several strategies to
attract or identify candidates. Sourcing can be done by
internal or external advertisement. Advertisement can be
done via local or national newspapers, specialist
recruitment media, professional publications, window

52
advertisements, job centers, or the Internet. (c) screening

and selection is the process of assessing the employees
who apply for the job. The assessment is conducted to
understand the relevant skills, knowledge, aptitude,
qualifications, and educational or job-related experience of
potential employees. Methods of screening include
evaluating resumes and job applications, interviewing, and
job-related or behavioral testing. (d) onboarding is the
process of helping new employees become productive
members of an organization. A well-planned introduction
helps new employees quickly become fully operational.
17. Synergy
 Synergy is the concept that the combined value and
performance of two companies will be greater than the
sum of the separate individual parts. Synergy is a term that
is most commonly used in the context of mergers and
acquisitions (M&A). Synergy, or the potential financial
benefit achieved through the combining of companies, is
often a driving force behind a merger. Synergy is reflected
on a company's balance sheet through its goodwill
account. Goodwill is an intangible asset that represents
the portion of the business value that cannot be attributed
to other business assets. Examples of goodwill include a
company's brand recognition, proprietary or intellectual
property, and good customer relationships. Synergies may
not necessarily have a monetary value but could reduce
the costs of sales and increase profit margin or future
growth. In order for synergy to have an effect on the value,
it must produce higher cash flows from existing assets,
higher expected growth rates, longer growth periods, or
lower cost of capital.
18. Stakeholders
 A stakeholder is a party that has an interest in a
company and can either affect or be affected by the
business. The primary stakeholders in a typical corporation
are its investors, employees, customers, and suppliers.
Stakeholders can be internal or external to an
organization. Internal stakeholders are people whose
interest in a company comes through a direct relationship,
such as employment, ownership, or investment. External
stakeholders are those who do not directly work with a
company but are affected somehow by the actions and

53
outcomes of the business. Suppliers, creditors, and public

groups are all considered external stakeholders.
19. Societal ethics

 Social ethics is the systematic reflection on the moral
dimensions of social structures, systems, issues, and
communities. Social ethics can be thought of as a branch
of ‘applied ethics,’ the application of ethical reasoning to
social problems. A typical list of the kinds of issues
addressed under the rubric of social ethics includes the
distribution of economic goods, research on human
subjects, animal rights, euthanasia, abortion, discrimination
and affirmative action, pornography, crime and
punishment, and war and peace. The principal tasks for
social ethicists are to (1) examine social conditions,
determining which of them are problematic in light of norms
concerning what is good or right or fair; (2) analyze
possible actions that could alter those conditions that have
been found to be problematic; and (3) prescribe solutions
based on the examination of the problem and the analysis
of the options for action. Each of these three steps is a
thoroughly value-laden activity.
20. Social responsibility

 Social responsibility is having a sense of duty to society
and everything that is a part of it. In other words, “social
responsibility” means managers are accountable to society
at large, not just their shareholders. Social responsibility is
an important aspect of capitalism at large. Individuals and
consumers place trust in businesses to “do the right thing”,
and take a leadership role in making the world a better
place. A world with more socially-responsible managers
also leads to fewer government regulations, since
regulations are almost always introduced as a reaction to
businesses profiting at the loss of society around them.
21. Total quality management

 Total Quality Management (TQM) is a
management framework based on the belief that an
organization can build long-term success by having all its
members, from low-level workers to its highest
ranking executives, focus on improving quality and, thus,
delivering customer satisfaction. TQM requires
organizations to focus on continuous improvement,
or kaizen. It focuses on process improvements over the

54
long term, rather than simply emphasizing short-term

financial gains. TQM prescribes a series of ways for
organizations to accomplish this, with the pathway to
successful continuous improvement centered on the use of
strategy, data and effective communication to instil a
discipline of quality into the organization's culture and
processes.
22. Social audit

 A social audit is a way of measuring, understanding,
reporting and ultimately improving an organization’s social
and ethical performance. A social audit helps to narrow
gaps between vision/goal and reality, between efficiency
and effectiveness. It is a technique to understand,
measure, verify, report on and to improve the social
performance of the organization. Social auditing creates an
impact upon governance. It values the voice of
stakeholders, including marginalized/poor groups whose
voices are rarely heard. Social auditing is taken up for the
purpose of enhancing local governance, particularly for
strengthening accountability and transparency in local
bodies. The key difference between development and
social audit is that a social audit focuses on the neglected
issue of social impacts, while a development audit has a
broader focus including environment and economic issues,
such as the efficiency of a project or programme.
23. Totalitarian regime

 Totalitarianism is a form of government and a political
system that prohibits all opposition parties, outlaws
individual opposition to the state and its claims, and
exercises an extremely high degree of control and
regulation over public and private life. It is regarded as the
most extreme and complete form of authoritarianism. In
totalitarian states, political power is often held by autocrats,
such as dictators and absolute monarchs, who employ all-
encompassing campaigns in which propaganda is
broadcast by state-controlled mass media in order to
control the citizenry. Totalitarian regimes are often
characterized by extreme political repression, to a greater
extent than those of authoritarian regimes, under an
undemocratic government, widespread personality
cultism around the person or the group which is in power,
absolute control over the economy, large-
scale censorship and mass surveillance systems, limited or

55
non-existent freedom of movement (the freedom to leave

the country), and the widespread usage of state terrorism.
Other aspects of a totalitarian regime include the extensive
use of internment camps, an omnipresent secret police,
practices of religious persecution or racism, the imposition
of theocratic rule or state atheism, the common use
of death penalties and show trials, fraudulent elections (if
they took place), the possible possession of weapons of
mass destruction, a potential for state-sponsored mass
murders and genocides, and the possibility of engaging in
a war, or colonialism against other countries, which is often
followed by annexation of their territories.
24. Sexual harassment

 “Sexual harassment” is defined as any behaviour of a
sexual nature that affects the dignity of women and men,
which is considered as unwanted, unacceptable,
inappropriate and offensive to the recipient, and that
creates an intimidating, hostile, unstable or offensive work
environment.
25. Whistle blowers

 A whistleblower is anyone who has and reports insider
knowledge of illegal activities occurring in an organization.
Whistleblowers can be employees, suppliers, contractors,
clients, or any individual who becomes aware of illegal
business activities. Whistleblowing is the term used when a
worker passes on information concerning wrongdoing. In
this guidance, we call that “making a disclosure” or
“blowing the whistle”. The wrongdoing will typically
(although not necessarily) be something they have
witnessed at work.
II. ENUMERATION:
1. 4 economic systems
a. Traditional Economic Systems
o A traditional economic system focuses exclusively on
goods and services that are directly related to its
beliefs, customs, and traditions. It relies heavily on
individuals and doesn’t usually show a significant
degree of specialization and division of labour. In
other words, traditional economic systems are the
most basic and ancient type of economies.
o In general, in a traditional economic system,
a surplus would be rare. Each member of a

56
traditional economy has a more specific and

pronounced role, and these societies tend to be very
close-knit and socially satisfied. However, they do
lack access to technology and advanced medicine.
b. Command Economic System
o A command economic system is characterized by a
dominant centralized power (usually the government)
that controls a large part of all economic activity. This
type of economy is most commonly found in
communist countries. It is sometimes also referred to
as a planned economic system because most
production decisions are made by the government
(i.e., planned), and there is no free market at play.
o Since the government is such a central feature of the
economy, it is often involved in everything from
planning to redistributing resources. A command
economy is capable of creating a healthy supply of
its resources, and it rewards its people with
affordable prices. This capability also means that the
government usually owns all the critical industries
like utilities, aviation, and railroad.
c. Market Economic System
o A market economic system relies on free markets
and does not allow any government involvement in
the economy. In this system, the government does
not control any resources or other relevant economic
segments. Instead, the entire system is regulated by
the people and the law of supply and demand.
Therefore, this system is sometimes also referred to
as laissez-faire capitalism. There is no government
intervention in a pure market economy (“laissez-
faire“). However, no truly free market economy exists
in the world. For example, while America is a
capitalist nation, our government still regulates (or
attempts to control) fair trade, government programs,
honest business, monopolies, etc.
d. Mixed Economic System
o A mixed economic system refers to any mixture of a
market and a command economic system. It is
sometimes also referred to as a dual economy.
Although there is no clear-cut definition of a mixed
economic system, in most cases the term is used to
describe market economies with strong regulatory
oversight and government control in specific areas
(e.g., public goods and services).

57
o However, the government is also usually involved in

the regulation of private businesses. The idea behind
a mixed economy was to use the best of both worlds
– incorporate policies that are socialist and capitalist.
2. 4 key points of bureaucracy

a. A clear hierarchy - Bureaucracies have a firm chain of
command. Every worker has his or her own place in the
chain, and everyone's work is overseen by someone on
the next level up. Power flows down from the top of the
hierarchy and diminishes as it approaches the bottom.
Just think of the beehive. The queen bee stands at the
top, and each worker bee or drone has its own place in
the hive's chain of command.
b. Specialization - Everyone in a bureaucracy has a
specific job to do and often becomes an expert at it.
Bees have specific jobs, too, collecting pollen, making
honey, or populating the hive.
c. A division of labor - In a bureaucracy, nearly every task
is broken down into its component parts, and different
people work on different parts of the task. Together they
get the job done, just like bees in a hive who divide their
labor for maximum efficiency.
d. A set of formal rules - These so-called standard
operating procedures are the clear, written
instructions for each specialized job at every level of the
hierarchy. Workers who follow them can be sure that
they are on the same page as their colleagues and are
doing their jobs properly. According to beekeepers,
bees, too, have a sophisticated system of
communication that keeps their hives running smoothly.
3. 14 Fayol’s principles
a. Division of work
o Work is divided into small tasks/jobs. A trained
specialist who is competent is required to
perform each job. Thus, division of work
leads to specialization. According to Fayol, “The
intent of division of work is to produce more and
better work for the same effort. Specialization is the
most efficient way to use human effort.” In business
work can be performed more efficiently if it is
divided into specialized tasks; each performed
by a specialist or trained employee. This results in
efficient and effective output. Thus, in a company we

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have separate departments for finance, marketing,

production and human resource development
etc. All of them have specialized persons.
Collectively they achieve production and sales
targets of the company. Fayol applies this principle
of division of work to all kinds of work – technical as
well as managerial. You can observe this principle at
work in any organization like hospital or even a
government office
b. Balancing authority and responsibility

o According to Fayol, “Authority is the right to
give orders and obtain obedience, and
responsibility is the corollary of authority. The two
types of authority are official authority, which is
the authority to command, and personal
authority which is the authority of the
individual manager. ”Authority is both formal
and informal. Managers require authority
commensurate with their responsibility. There should
be a balance between authority and responsibility.
An organization should build safeguards against
abuse of managerial power. At the same
time a manager should have necessary
authority to carry out his responsibility.
c. Discipline
o Discipline is the obedience to organizational
rules and employment agreement which are
necessary for the working of the organization.
According to Fayol, discipline requires good
superiors at all levels, clear and fair agreements
and judicious application of penalties. In
return the management has promised to
increase wages of the workers when this
mission is accomplished. Here discipline when
applied would mean that the workers and
management both honor their commitments
without any prejudice towards one another.
d. Unity of command
o According to Fayol there should be one and
only one boss for every individual employee. If
an employee gets orders from two superiors at the
same time the principle of unity of command is
violated. The principle of unity of command

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states that each participant in a formal

organization should receive orders from and be
responsible to only one superior. Fayol gave a lot of
importance to this principle. He felt that if this
principle is violated “authority is undermined,
discipline is in jeopardy, order disturbed and
stability threatened”. The principle resembles
military organisation. Dual subordination should be
avoided.
e. Unity of direction
o All the units of an organization should be
moving towards the same objectives through
coordinated and focused efforts. Each group of
activities having the same objective must have one
head and one plan. This ensures unity of action
and coordination. Each division should have
its own incharge, plans and execution resources.
On no account should the working of two divisions
overlap. Now let us differentiate between the
two principles of unity of command and unity of
direction.
f. Subordination of individual interests to the general
interest
o The interests of an organization should take priority
over the interests of any one individual employee
according to Fayol. Every worker has some
individual interest for working in a company. The
company has got its own objectives. On the other
hand, an employee may want to get maximum
salary while working the least. In another situation an
individual employee may demand some
concession, which is not admissible to any
other employee like working for less time. In all the
situations the interests of the group/company will
supersede the interest of any one individual. This is
so because larger interests of the workers and
stakeholders are more important than the interest of
any one person. A manager can ensure this by
her/his exemplary behavior.
g. Remuneration
o The overall pay and compensation should be fair to
both employees and the organization. The
employees should be paid fair wages, which should
give them at least a reasonable standard of
living. At the same time it should be within the

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paying capacity of the company. In other

words, remuneration should be just and
equitable. This will ensure congenial
atmosphere and good relations between
workers and management. Consequently, the
working of the company would be smooth.
h. Centralization and Decentralization
o The concentration of decision-making authority
is called centralization whereas its dispersal
among more than one person is known as
decentralization. According to Fayol, “There is
a need to balance subordinate involvement
through decentralization with managers’ retention
of final authority through centralization.” The
degree of centralization will depend upon the
circumstances in which the company is working. In
general large organizations have more
decentralization than small organizations.
i. Scalar chain
o An organization consists of superiors and
subordinates. The formal lines of authority from
highest to lowest ranks are known as scalar chain.
According to Fayol, “Organizations should have a
chain of authority and communication that runs
from top to bottom and should be followed
by managers and the subordinates.” According
to Fayol, this chain should not be violated
in the normal course of formal communication
j. Order
o According to Fayol, “People and materials
must be in suitable places at appropriate time
for maximum efficiency.” The principle of order
states that ‘A place for everything (everyone) and
everything (everyone) in its (her/his) place’.
Essentially it means orderliness. If there is a fixed
place for everything and it is present there, then
there will be no hindrance in the activities of
business/ factory. This will lead to increased
productivity and efficiency.
k. Equity
o Good sense and experience are needed to ensure
fairness to all employees, who should be treated
as fairly as possible,” according to Fayol.
This principle emphasizes kindliness and justice in
the behavior of managers towards workers. This

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will ensure loyalty and devotion. Fayol does

not rule out use of force sometimes. Rather he
says that lazy personnel should be dealt with sternly
to send the message that everyone is equal in the
eyes of the management. There should be no
discrimination against anyone on account of
sex, religion, language, caste, belief or
nationality etc. In practice we can observe
that now a days in multinational corporations
people of various nationalities work together
in a discrimination free environment.
l. Stability of tenure of personnel
o “Employee turnover should be minimized to maintain
organizational efficiency”, according to Fayol.
Personnel should be selected and appointed
after due and rigorous procedure. But once
selected they should be kept at their post/ position
fora minimum fixed tenure. They should have
stability of tenure. They should begiven
reasonable time to show results. Any aphorism in
this regard will create instability/insecurity among
employees. They would tend to leave the
organisation. Recruitment, selection and training
cost will be high. So stability in tenure of
personnel is good for the business.
m. Initiative
o Workers should be encouraged to develop
and carry out their plans for improvements
according to Fayol. Initiative means taking the first
step with self-motivation. It is thinking out and
executing the plan. It is one of the traits of an
intelligent person. Initiative should be encouraged.
But it does not mean going against the
established practices of the company for the sake of
being different. A good company should have an
employee suggestion system whereby
initiative/suggestions which result in substantial
cost/time reduction should be rewarded.
n. Esprit de corps
o Management should promote a team spirit of
unity and harmony among employees, according
to Fayol. Management should promote teamwork
especially in large organizations because otherwise
objectives would be difficult to realize. It will also
result in a loss of coordination. A manager should

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replace ‘I’ with ‘We’ in all his conversations with

workers to foster team spirit. This will give rise to
a spirit of mutual trust and belongingness
among team members. It will also minimize
the need for using penalties
4. 6 forces in the organizational environment

a. Socio-cultural Force
o The sociocultural elements include the forces in a
society, its cultures, and sub-cultures that bring
about changes in perceptions, attitudes, beliefs,
norms, customs, and lifestyles. For example,
changes in a population’s demographic
characteristics have a significant bearing on
individual behavior because they lead to changes in
how people live and how they consume products.
This then influences how businesses market their
products and compete for customers. The social-
cultural force is partly a macro aggregation of
customers’ desires in the definition of three core
elements of what it means to be in business.
b. Competitive Force
o Competition can be generally defined as other firms
that bring products (goods, services, or ideas) similar
to, or that can be substituted for, another company’s
products in competition for the buying power of the
same customers. It is important to consider that few
companies compete head-on with their entire lines of
product offerings. Usually there exist competitive
overlaps of segments of firms’ product offerings
resulting in different competitors for different target
markets or product categories. Also, substitution of
one customer desire for a different one can introduce
significant consumer behavior and competitive
complexity. This is often not obvious at first-glance
and can be driven in part by the elements of this
force.
c. Technological Forces
o Technology, very simply, is the application of human
ingenuity that improves or increases efficiency. This
includes everything from physical tools to more
efficient processes, to digital and computing
capabilities. It is important for companies to
determine when and how a technology is changing
an industry, and to understand the strategic influence

63
of the new technology. The technological force has

effects on a company’s new products and processes,
its operations, as well as on other organizations, and
on society in general.
d. Economic Force
o Changes in general economic conditions affect (and
are affected by) supply and demand, buying power,
willingness to spend, consumer expenditure levels,
and the intensity of competitive behavior. Economic
forces in the business environment influence both
business and consumer decisions and activities, as
well as government oversight and intervention.
e. Political and Regulatory Force
o Political and regulatory forces of the business
environment are closely interrelated. The current
political climate of a country or region will help define
future legal and regulatory forces. Companies are
interested in encouraging laws and regulations that
are favorable to their businesses. Governments are
interested maintaining tax revenue. Federal, state,
and local governments, along with various regulatory
agencies, create and enforce laws, regulations, and
taxes regarding business practices within the United
States, as well as outside the U.S. Federal, state,
and local laws influence business decisions and
activities. International law, treaties, trade
agreements, and the laws and tax codes of other
nations will also influence and affect business
decisions and activities for those companies doing
business outside of their home country.
f. Natural Force
o Natural forces include three major types of influence.
The first is the naturally occurring events that impact
business, society, and government. This includes
more predictable events such as the seasons, as
well as major events that are less predictable like
solar storms, earthquakes, storms (tornadoes,
cyclones, hurricanes, typhoons, monsoons/flooding),
droughts, wild fires, and other significant weather-
induced events. As the effects of the planetary
climate crisis have started to take hold we are
experiencing increased volatility and irregularity in
the occurrence of these events, as well as
challenges for predicting future events and their
effects.

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5. 5 Industry life cycle

a. Startup
o customer demand is limited due to unfamiliarity with
the new product’s features and performance.
Distribution channels are still underdeveloped. There
is also a lack of complementary products that add
value for the customers, limiting the profitability of
the new product. Companies at the startup stage are
likely to generate zero or very low revenue and
experience negative cash flows and profits, due to
the large amount of capital initially invested in
technology, equipment, and other fixed costs.
b. Growth
o As the product slowly attracts attention from a bigger
market segment, the industry moves on to the
growth stage where profitability starts to rise.
Improvement in product features increases the value
to customers. Complementary products also start to
become available in the market, so people have
greater benefits from purchasing the product and its
complements. As demand increases, product price
goes down, which further increases customer
demand. At the growth stage, revenue continues to
rise and companies start generating positive cash
flows and profits as product revenue and costs
surpass break-even.
c. Shakeout
o Shakeout usually refers to the consolidation of an
industry. Some businesses are naturally eliminated
because they are unable to grow along with the
industry or are still generating negative cash flows.
Some companies merge with competitors or are
acquired by those who were able to obtain bigger
market shares at the growth stage. At the shakeout
stage, the growth rate of revenue, cash flows, and
profit start slowing down as the industry approaches
maturity.
d. Maturity
o At the maturity stage, the majority of the companies
in the industry are well-established and the industry
reaches its saturation point. These companies
collectively attempt to moderate the intensity of
industry competition to protect themselves, and to
maintain profitability by adopting strategies to deter

65
the entry of new competitors into the industry. They

also develop strategies to become a dominant player
and reduce rivalry. At this stage, companies realize
maximum revenue, profits, and cash flows because
customer demand is fairly high and consistent.
Products become more commonplace and popular
among the general public, and the prices are fairly
reasonable, as compared to new products.
e. Decline
o The decline stage is the last stage of an industry life
cycle. The intensity of competition in a declining
industry depends on several factors: speed of
decline, the height of exit barriers, and the level of
fixed costs. To deal with the decline, some
companies might choose to focus on their most
profitable product lines or services in order to
maximize profits and stay in the industry. Some
larger companies will attempt to acquire smaller or
failing competitors to become the dominant player.
For those who are facing huge losses and that do
not believe there are opportunities to survive,
divestment will be their optimal choice.
6. 3 ethical origins
a. Religion
o Religion is the oldest source of Religion is the oldest
source of ethical inspiration. There are more than
ethical inspirations. 1, 00,000 religions which exist
across the whole world, but all of them are in
agreement on the fundamental principles. Every
religion gives an expression of what is wrong and
right in business and other walks of life. The
Principle of reciprocity towards one’s fellow beings is
found in all the religions. Great religions preach the
necessity for an orderly social system and
emphasize upon social responsibility with an
objective to contribute to the general welfare. With
these fundamentals, every religion creates its own
code of conduct.
b. Culture
o Culture is the set of important understandings that
members of a community share in common. It
consists of a basic set of values, ideas, perceptions,

66
preferences, concept of morality, code of conduct

etc. which creates distinctiveness among human
groups. When we talk about culture we typically refer
to the pattern of development reflected in a society’s
pattern of knowledge, ideology, values, laws, social
norms and day to day rituals. Depending upon the
pattern and stage of development, culture differs
from society to society. Moreover, culture is passed
from generation to generation. Culture facilitates the
generation of commitment to something larger than
one’s individual self-interest.
o Culture encourages the members of the organisation
to give priority to organizational goals over and
above their personal interests. Culture also serves
as a sense making and control mechanism that
guides and shapes the attitudes and behaviour of
people. Managers have to run an industrial
enterprise on the cutting edge of cultural experience.
The tension that their actions create makes the
business ethically more complex.
c. Law
o The legal system of any country, guide the human
behaviour in the society. Whatever, ethics the law
defines are binding on the society. The society
expects the business to abide by the law. Although it
is expected that every business should be law
abiding, seldom do the businesses adhere to the
rules and regulations. Law breaking in business is
common eg. Tax evasion, hoarding, adulteration,
poor quality & high priced products, environment
pollution etc.
7. 4 ways to manage diversity

a. Identity Blind
o These managers took account of individual
differences between employees such as personality
or work styles, while turning a 'blind eye' to race or
gender. As one explained, 'there are different races
but in terms of diversity I see it more in terms of the
way … some people are very strong willed and
headstrong and others are timid'.
o They selected staff on the basis of individual
differences in their professional experience, work
styles or interests and allowed flexibility to take
account of individual differences – such as letting a

67
staff member leave early to attend lectures or watch

a Formula One race on TV.
b. Assimilation
o These managers not only focused on individual
differences, but also on workers' socio-demographic
group and tried to find ways to assimilate people
from different groups, such as women or people from
non-English speaking backgrounds.
o While they used images of women and minority
groups in recruitment advertising, and promoted the
firm as a 'diversity employer of choice', they viewed
such groups as stereotypes with identical tastes,
interests and interaction styles who needed help to fit
into the 'mainstream'.
o Partners talked about helping 'quiet' Asian staff by
providing guidance 'culturally on how to behave',
'teaching them about Australia' or 'telling them what
is expected and what [is] the normal way of
operating in this country'. They also matched female
partners with more senior male partners as 'women
are not as good at networking and they needed to
learn the skills'.
c. Inclusive Differentiation
o These managers recognised both individual and
group differences, but also saw people as individuals
within groups and avoided stereotyping. Age,
gender, ethnicity and religion might all be seen as
part of the jigsaw puzzle.
o One explained: "[We are] finding there can be similar
issues depending on the [ethnic] origins of the
people…but if you assume everyone coming from
the Philippines is going to have this issue, then that's
not fair because at the end of the day they're all
people as well."
o Recruitment and perks were tailed to individuals'
particular needs – such as graduated retirement
options for an older worker and an overseas
placement for a Gen Y employee. They offered
multiple inclusive work arrangements such as
different types of part-time work, early start and finish
times and working from home.
o They learned about possible group differences and
changed their style where appropriate. One partner

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told how, after feedback from a Mexican employee,

he had learned to express himself more clearly.
d. Equitable Transformation
o These managers considered not only the individual
within the group, but also wider society influences.
They had transformed their management practice to
'level the playing field' between those from
advantaged and disadvantaged backgrounds.
o They recognised that existing ways of doing things
might de-motivate some people and importantly also
benefit some at the expense of others. They
challenged colleagues who they felt were
stereotyping people or interaction styles that were
not inclusive and questioned selection criteria.
o These Equitable Transformation managers were
consistently identified by colleagues as the most
effective, and were the only managers to have won
diversity awards. This was followed by Inclusive
Differentiation managers, who were next most likely
to be identified as effective by colleagues and were
also nominated for diversity awards. No Assimilation
or Identity Blind managers were identified as
effective by colleagues or nominated for diversity
awards. According to Professor Sandberg, the four
styles can be viewed as a hierarchy with Identity
Blind being the least effective at the bottom, and
Equitable Transformation at the top.
8. 6 decision making steps

a. Determine/Clarify the decision problem/strategic issues
o The first step in decision making process, which is
very important, is to identity and define the problem,
or strategic issues which require making decisions.
This helps the decision maker to focus on the right
questions involved in decision. Greater managerial
skill and expertise is required in defining a decision
problem to subsequently address it correctly. For
example, a production manager might wrongly
consider the choice as make or buy a part for a
product when the correct decision might be to
determine whether the product should be redesigned
so the part is not needed.

69
o Sometimes, the decision problem is quite complex.

For example, the demand for a company’s popular
product is declining. What are the reasons for it?
Declining quality control? Decrease in customer
satisfaction? Increasing competition? Availability of
alternative product in the market? Higher selling
prices? etc.
o Before a decision can be made, the problem needs
to be clarified and defined in more specific terms. In
some situations, the decision problem may itself be
clear. For example, a business firm may receive a
special order for its product at a price below the
regular market price. The decision under this
situation is clear i.e. whether to accept or reject the
order.
b. Specify the criteria
o After identifying the decision problem, the decision
maker should specify the criteria upon which a
decision is to be made. Most often, the criteria or the
objective can be easily quantified such as minimizing
cost, improving profit through increased return on
investment, increasing share of company product in
the market.
o Sometimes the criteria or the objectives are in
conflict with each other, such as where reducing
cost, quality of the product needs to be maintained.
Also, in some situations, other interested parties or
stakeholders like shareholders; creditors may have
their own separate criteria or objectives. Therefore, a
manager most often is forced to think of multiple
objectives, both the quantifiable short-term goals and
the more strategic difficult-to-quantify goals.
c. Identify alternatives as possible solutions to the problem

o Decision making is choosing between the
alternatives. If the objective is to increase sales,
there can be many alternatives to achieve this goal.
If a machine breaks down, it could be repaired or
replaced. Within the replacement, it may be bought
or leased. Determining the possible alternatives is an
important step in the decision making process.
o Those alternatives that are clearly not feasible
should be eliminated from the decision making
process.
d. Perform relevant information analysis

70
o In this fourth step, a manager collects relevant data

(relevant costs and relevant benefits) associated with
each feasible alternative. Selecting data relating to
decision is one of the management accountant’s
most important roles in an organization. In this
decision making step, manager performs an analysis
of relevant costs and relevant benefits (revenues)
and other pertinent strategic issues. Manager also
makes predictions about relevant information
corresponding to alternatives in terms of future
values of relevant costs and relevant revenues.
o Managers should also identify and analyze, to the
extent possible, non-financial advantages and
disadvantages (known as qualitative factors) about
each feasible alternative while performing relevant
information analysis.
e. Select and implement the best alternative
o Based on the relevant cost and relevant revenue
analysis, the manager, in the fifth step, selects the
best alternative and executes it.
f. Evaluate performance
o In the sixth and final step, the manager evaluates the
performance of the implemented decision as a basis
for feedback to a possible reconsideration of this
decision as it relates to future decisions. The
decision process is thus a feedback-based system in
which the manager continually evaluates the results
of prior analyses and decisions to discover any
opportunities for improvement in decision making.
9. 4 ways to evaluate alternatives

a.
III. Explain extensively the following Theories:

1. Job Specialization and Division of Labor by Adam Smith
We have learned that there aren’t enough resources to
fulfill all of our wants and this reality forces us to make choices
that have opportunity costs. How do we get the most we can from
the resources we have? Over time, markets and trade have come
into existence and have become highly efficient mechanisms for
optimizing our use of resources and bringing us the most and
best combination of goods and services.

71
Think back to pioneer days, when the average

person knew how to do so much more on his or her own than
someone today—everything from shoeing a horse to growing,
hunting, and preserving food to building a house and repairing
equipment. Most of us don’t know how to do all—or any—of
those things. It’s not because we’re not capable of learning them.
It’s because we don’t have to. The reason for this is something
called the “division and specialization of labor,” a production
innovation first put forth by Adam Smith.
In the first chapter of the book, Smith introduces the idea of
the division of labor, which means that the way a good or service
is produced is divided into a number of tasks that are performed
by different workers, instead of all the tasks being performed by
the same person. To illustrate the division of labor, Smith counted
how many tasks were involved in making a pin: drawing out a
piece of wire, cutting it to the right length, straightening it, putting
a head on one end and a point on the other, packaging pins for
sale, and so on. Smith counted eighteen distinct tasks that were
typically performed by different people—all for a pin!
Modern companies divide tasks, too. Even a relatively
simple business like a restaurant divides up the task of serving
meals into a range of jobs: top chef, sous chefs, less-skilled
kitchen help, host/hostess, waiters/waitresses, janitors, a
business manager to handle accounts and paychecks, etc. A
complex business like a large manufacturing factory or a hospital
can have hundreds of job classifications.
When the tasks involved with producing a good or service
are divided and subdivided, workers and businesses can produce
a greater quantity of those goods or services. In his study of pin
factories, Smith observed that one worker alone might make
twenty pins in a day, but that a small business of ten workers
(some of whom would need to do two or three of the eighteen
tasks involved in pin making), could make forty-eight
thousand pins in a day. How can a group of workers, each
specializing in certain tasks, produce so much more than the
same number of workers who try to produce the entire good or
service by themselves? Smith offered three reasons.
First, specialization in a particular small job allows workers
to focus on the parts of the production process in which they have
an advantage. People have different skills, talents, and interests,
so they will be better at some jobs than at others. The particular
advantages may be based on educational choices, which are
shaped, in turn, by interests and talents. Only those with medical
training qualify to become doctors, for instance. For some goods,
specialization will be affected by geography—it’s easier to be a
wheat farmer in North Dakota than in Florida, but easier to run a
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tourist hotel in Florida than in North Dakota. If you live in or near

a big city, it’s easier to attract enough customers to operate a
successful dry-cleaning business or movie theater than if you live
in a sparsely populated rural area. Whatever the reason, if people
specialize in the production of what they do best, they will be
more productive than if they produce a combination of things,
some of which they are good at and some of which they are not.
Second, workers who specialize in certain tasks often learn
to produce more quickly and with higher quality. This pattern
holds true for many workers, including assembly-line laborers
who build cars, stylists who cut hair, and doctors who perform
heart surgery. In fact, specialized workers often know their jobs
well enough to suggest innovative ways to do their work faster
and better. A similar pattern often operates within businesses. In
many cases, a business that focuses on one or a few products is
more successful than firms that try to make a wide range of
products.
Third, specialization allows businesses to take advantage
of economies of scale, which means that, for many goods, as the
level of production increases, the average cost of producing each
individual unit declines. For example, if a factory produces only
one hundred cars per year, each car will be quite expensive to
make on average. However, if a factory produces fifty
thousand cars each year, then it can set up an assembly line with
huge machines and workers performing specialized tasks, and
the average cost of production per car will drop. Economies of
scale implies that production is becoming more efficient as the
scale of production rises.
The ultimate result of workers who can focus on their
preferences and talents, learn to do their specialized jobs better,
and work in larger organizations is that society as a whole can
produce and consume far more than if each person tried to
produce all of their own goods and services. The division and
specialization of labor has been a force against the problem of
scarcity.
Specialization only makes sense, though, if workers (and
other economic agents such as businesses and nations) can use
their income to purchase the other goods and services they need.
In short, specialization requires trade. You do not have to know
anything about electronics or sound systems to play music—you
just need a device (e.g., your phone or computer), download the
music, and listen. You don’t have to know anything about
textiles or the construction of sewing machines if you need a
jacket—you just buy the jacket and wear it. Instead of trying to
acquire all the knowledge and skills involved in producing all of
the goods and services that you wish to consume, the market
73
allows you to learn a specialized set of skills and then use the
pay you receive to buy the goods and services you need or want.
This is how our modern society has evolved into a strong
economy.
Even if someone were naturally better at producing every
kind of good or service than everyone else – what economists
call an "absolute advantage" in trade – it still makes sense to
specialize in just one area and trade with those who are less
productive.
To illustrate why this is the case, consider the following
example. An attorney has a secretary in her law office. Suppose
she can type faster, file faster, and use a computer faster than
her secretary. When it comes to doing secretarial work, her labor
productivity is higher than that of her secretary. However, that
isn't her most valuable work; her most valuable work is practicing
law. Every hour that she spent doing secretarial work is an hour
that she couldn't spend being a lawyer, so she trades with her
secretary to maximize her earnings as an attorney.
2. Scientific Management by F. W Taylor

The first coherent administrative theory known as 'Scientific
Management' was propounded in the beginning of the twentieth
century. Among the scholars, the contribution of F.W. Taylor is
most important in the development of the theory of scientific
management. So, he is regarded as the 'father of scientific
management' school. Taylor observed that the conditions in
factories were unplanned, there was absence of standardization
of methods of work, there was no rational method of assigning
workers to their jobs and they were often placed in jobs that they
preferred. The work to be done and the methods to be adopted
and selection of tools were also determined by workers. He also
realized that there was a lot of waste of materials, loss of
production and efficiency; there was no coordination between
departments and managers did not possess decision making
skills, they had no clear idea of the responsibilities. Decisions and
standards of work performance were made on the basis of 'rule of
thumb' that provided the workers with an opportunity for a
'systematic soldering' as well as the purposeful restriction of
output.
Scientific Management: Based on these observations,
Taylor developed a science of management/ a scientific theory of
management aimed at discovering the 'one best way' of
performing any task as well as increasing productivity. Taylor's
work, The Principles of Scientific Management-1911,
revolutionized the idea of optimizing productivity. His notion of
scientific management focused on the most efficient way of
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managing and making the workers more productive. It offered a

systematic approach that managers could apply to their own
organization.
Taylor proceeded to work on the basis of following four
principles which are also regarded as the hallmark of the
scientific management school.
a. The development of a true science of management: The
first principle was finding the best way of doing a job so
that the best method for performing each task could be
determined. The most efficient ways of completing tasks
and standard work procedures were believed to
enhance productivity. Taylor introduced/ implemented
the time and motion studies at Midvale Steel Works to
determine the highest level of output in accordance with
a particular procedure. By doing so, Taylor was able to
find the 'one best way' of doing a job.
b. The scientific selection of workers: It involved the
scientific selection and progressive development of the
workers so that each worker would be assigned
responsibility for the task for which he/she was best
suited. By introducing this principle, it was expected that
management can better identify the inherent strengths
and weaknesses of each worker which, in turn, help
management to maximize his/her capacities.
c. Bringing science of work and the scientifically selected
workers together: The third principle was fusing the
science of doing the job with the scientifically selected
workers. Taylor emphasized that unless the science of
doing work and the workers are brought together, all
efforts will be lost. According to him, the success of
scientific management depends on the fusion of work
procedures and workers and it is the most important
responsibility of management.
d. Equal division of work and responsibility between
management and workers: He stressed that equal
division of responsibility would ultimately promote
intimate and friendly cooperation between management
and workers which, in turn, would help management for
better supervision of its workers as well as reduction of
disputes between them.
In a nutshell, productivity and efficiency were the primary
ends of scientific management. Standard work procedures,
scientific selection of workers, fusing together the science of work
and trained workers and sharing of responsibility between
management and workers were the means to achieve those

75
ends. Scientific Management is a combination of all these

principles and these principles cannot be isolated.
There were four important components of scientific
management.
a. Determination of standards of performance: The real
problem that Taylor found from his experience was that
no one exactly knew how much work a worker was
expected to do in a specific/given time. The standards
of work performance were determined on the basis of
rule of thumb rather than following any scientific basis.
Taylor introduced his famous time and motion study1 to
determine the standard of work performance.
b. Functional foremanship/functional organization: Taylor
called for a drastic reorganization of supervision and
recommended functional foremanship in the
organization in which the worker receives orders from
eight functional specialists. In other words, he proposed
using specialized experts known as functional foreman
each of whom was responsible for some specific aspect
of the worker's task. He also advocated the division of
work between managers and workers favoring a
complete separation of the planning function from the
doing function. [He opposed the linear system or military
type of organization in which each worker is subordinate
to only one boss]
c. Piecework system of wage payment: Taylor observed
that workers did as little as possible because under
prevalent system of wage payment, a worker who had
nothing to gain if he/she worked hard. To deal with this
problem, he developed the system of 'differential
piecework' for motivating them to achieve the highest
level of efficiency
d. Mental revolution: Scientific management, in its
essence, according to Taylor involves a complete
mental revolution in the attitudes of workers toward their
work and in the attitudes of managers/management
toward their duties and the ways in which they handle
their daily problems. According to him, determining
standards of work, eliminating wasteful operation and
piecework system of wage payment would benefit both
the workers and the employer/management which
would result into a mental revolution among the workers
and the management since they would develop a
cooperative attitude toward each other

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According to Taylor, MENTAL REVOLUTION is the

essence of scientific management. Without complete mental
revolution on both sides, scientific management does not exist.
Taylor's ideas of scientific management and his concepts
about management of resources, workers and workplace were
revolutionary in his time. Its principles became widely accepted in
the private sector and the idea of finding the one best way of
doing the job appeared as the standard for achieving efficiency.
Its ideas largely influenced administrative thought and
management practices over time. The scientific management
also attracted the support of governmental administrators who
were directly concerned with the question of efficiency. The
general principles of standards of work, functional organization,
selecting and placing the right person for the right job are still
being used widely in both private and public administration.
3. Time and Motion Studies by Frank and Lilian Gilbreth

For the longest time, people have been searching for the
most efficient ways to work. Frederick W. Taylor is one of the
experts who wrote a book on the subject, both literally and
figuratively.
Taylor’s concepts contributed a great deal in efficiency
studies. The time and motion study is among his significant
contributions.
Put simply, the study is about evaluating the movements
that it takes to achieve a certain role and the time consumed.
Time & motion study, at its core, seeks to drive productivity
from a workforce.
The time and motion study consists of two components –
time study by Frederick Taylor and motion study by Frank B.
and Lillian M. Gilbreth. Taylor began time studies in the 1880s
to determine the duration of particular tasks occurring under
specific conditions. A few other studies came before Taylor, but
his had the most impact. The time study was a component of
the scientific management theory. Taylor’s approach focused on
reducing time wastage for maximum efficiency.
Motion study by the Gilbreths evaluated movements and
how they can improve work methods. Frank and Lillian
Gilbreth pursued the motion study in a bid to expound on
scientific management. Taylorism, as the theory is called, had a
major flaw. It lacked a human element. Critics said that Taylor’s
approach was solely about profits.
The Gilbreths included several variables while studying
how to increase efficiency. Some of them are health, skills,
habits, temperament and nutrition. In the book Gilbreth and
Gilbreth, the two experts explain that motion study looks at the
77
fatigue that workers experience then finds ways to eliminate it.

They recommended solutions like rest-recovery periods, chairs
and workbenches.
Implementation of the scientific management theory was
one of the first instances that process improvement and process
management were treated as a scientific problem.
Every task you do, except for thinking, requires some
movement. Whether it’s typing code, plugging in a pressure
washer or sketching and building plan, movement is key. It’s
why’s the time & motion study is applicable even in the modern
environment.
By analysing how employees operate, and the time they
spend, a company can pinpoint where the problem is.
Removing inefficiencies increases the productivity of your staff.
For example, finding a better way to manufacturer a car
means that production time reduces and output increases.
Excessive motion is the biggest cause of time wastage.
Completing a task in ten steps, when seven could have easily
accomplished the same results means that a worker is wasting
a lot of resources.
With proper implementation time-motion study allows you
to improve processes and optimisation of performance. Better
working methods boost efficiency and decrease fatigue in
workers. Effectiveness not just about how hard you work, but
how smart.
Time-motion theory enhances resource planning and
allocation. When you know how much time and movements
particular tasks require, you can apportion the necessary
resources. Decreased costs is another advantage. The better
you plan resources and the more work the staff accomplishes,
the higher the cost savings. Remember to measure how much
time workers save after implementing changes.
Once you grasp how time and motion study fits into
everyday operations, you can use the theory to get the most out
of employees.
The couple placed high value on efficiency when managing
an organization. Their management theory outlined three main
points:
a. Reduce the number of motions in a task
o Frank and Lillian coined the term "therbligs," or
elemental motions required for tasks in the
workplace. They used these 18 units to analyze how
tasks were completed – searching for an object with
eyes or hands, grasping an object with hands,
assembling and disassembling two parts, etc. From

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there, they'd figure out which motions were

necessary, then eliminate any unnecessary motions
to increase efficiency.
b. Focus on the incremental study of motions and time
o As engineers, Frank and Lillian closely studied
motion and time to calculate the most efficient way to
complete a given task. Taking the scientific
approach, they measured time and motion to 1/2000
of a second to understand what works best. Their
insight was unlike that of most other theorists, as
they channeled physical science rather than
psychology.
c. Increase efficiency to increase profit and worker
satisfaction
o Your main goal as a leader should be increasing
efficiency in each individual employee, and in the
organization as a whole. Not only will this method
save time, it will also afford you a higher profit and
happier workers.
4. The Concept of Bureaucracy by Max Weber

Bureaucracy, specific form of organization defined by
complexity, division of labour, permanence, professional
management, hierarchical coordination and control, strict chain of
command, and legal authority. It is distinguished from informal
and collegial organizations. In its ideal form, bureaucracy is
impersonal and rational and based on rules rather than ties of
kinship, friendship, or patrimonial
or charismatic authority. Bureaucratic organization can be found
in both public and private institutions.
The foremost theorist of bureaucracy is the German
sociologist Max Weber (1864–1920), who described the ideal
characteristics of bureaucracies and offered an explanation for
the historical emergence of bureaucratic institutions. According to
Weber, the defining features of bureaucracy sharply distinguish it
from other types of organization based on nonlegal forms of
authority. Weber observed that the advantage of bureaucracy
was that it was the most technically proficient form of
organization, possessing specialized expertise,
certainty, continuity, and unity. Bureaucracy’s emergence as a
preferred form of organization occurred with the rise of a money-
based economy (which ultimately resulted in the development
of capitalism) and the attendant need to ensure impersonal,
rational-legal transactions. Instrumental organizations (e.g.,
public-stock business firms) soon arose because their

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bureaucratic organization equipped them to handle the various

demands of capitalist production more efficiently than small-scale
producers.
Contemporary stereotypes of bureaucracy tend to portray it
as unresponsive, lethargic, undemocratic, and incompetent.
Weber’s theory of bureaucracy, however, emphasizes not only its
comparative technical and proficiency advantages but also
attributes its dominance as a form of organization to the
diminution of caste systems (such as feudalism) and other forms
of inequitable social relations based upon a person’s status. In
the pure form of bureaucratic organization universalized rules and
procedures would dominate, rendering personal status or
connections irrelevant. In this form, bureaucracy is the epitome of
universalized standards under which similar cases are treated
similarly as codified by law and rules, and under which the
individual tastes and discretion of the administrator are
constrained by due process rules. Despite the
widespread derogatory stereotypes of bureaucracy, a system
of government grounded in law requires bureaucracy to function.
Nevertheless, the words bureaucracy and bureaucrat are
typically thought of and used pejoratively. They convey images of
red tape, excessive rules and regulations, unimaginativeness, a
lack of individual discretion, central control, and an absence of
accountability. Far from being conceived as proficient, popular
contemporary portrayals often paint bureaucracies as inefficient
and lacking in adaptability. Because the characteristics that
define the organizational advantages of bureaucracy also contain
within them the possibilities of organizational dysfunction, both
the flattering and unflattering depictions of bureaucracy can be
accurate. Thus, the characteristics that make bureaucracies
proficient paradoxically also may produce organizational
pathologies.
Jurisdictional competency is a key element of bureaucratic
organization, which is broken into units with defined
responsibilities. Fundamentally, jurisdictional competency refers
to bureaucratic specialization, with all elements of a bureaucracy
possessing a defined role. The responsibilities of individuals
broaden with movement upward through an
organizational hierarchy. The organizational division of
labour enables units and individuals within an organization to
master details and skills and to turn the novel into the routine.
Although the division of labour is highly efficient, it can lead to a
number of harmful organizational pathologies; for example, units
or individuals may be unable to identify and respond adequately
to problems outside their competency and may approach all
problems and priorities exclusively from the purview of a unit’s
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specific capabilities. This feature of bureaucracy also can lead

organizational units to shirk responsibility by allowing them to
define a problem as belonging to some other unit and thereby
leave the issue unattended. Alternatively, every unit within an
organization is apt to put a face on a problem congenial mainly to
its own interests, skills, and technologies.
Bureaucracies have clear lines of command and control.
Bureaucratic authority is organized hierarchically, with
responsibility taken at the top and delegated with decreasing
discretion below. Because of the risk of organizational
parochialism produced by limited and specific
jurisdictional competencies, the capacity to coordinate and
control the multiplicity of units is essential. Authority is the glue
that holds together diversity and prevents units from exercising
unchecked discretion. Yet, few features of bureaucratic life have
received so much adverse attention as the role of hierarchical
authority as a means for achieving organizational command and
control. Popular criticisms emphasize that hierarchical
organization strangles creative impulses and injects hyper-
cautious modes of behaviour based on expectations of what
superiors may desire. Command and control, which are
necessary to coordinate the disparate elements of bureaucratic
organization, provide for increasing responsibility upward,
delegation, and decreasing discretion downward.
Continuity is another key element of bureaucratic
organization. Rational-legal authority necessitates uniform rules
and procedures for written documents and official behaviour. A
bureaucracy’s files (i.e., its past records) provide it with
organizational memory, thereby enabling it to
follow precedent and standard operating procedures. The ability
to utilize standard operating procedures makes organizations
more efficient by decreasing the costs attached to any given
transaction. Organizational files record
procedures, antecedent behaviour, and personnel records. They
also allow an organization to be continuous and, thus,
independent of any specific leadership. On the whole, continuity
is vital to an organization’s capacity to retain its identity and even
its culture. Without its records, it would be impossible to maintain
transactions grounded in legality. Yet continuity also has a
dysfunctional side, leading organizations to behave predictably
and conservatively or, worse perhaps, merely reflexively.
Continuity also may lead a bureaucracy to repeat regularly
activities that may be inaccurate and whose inaccuracies thereby
cumulate.
Professionalization of management, another basic element
of bureaucracy, requires a full-time corps of officials whose
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attention is devoted exclusively to its managerial responsibilities.

In government, professionalization is vested in the corps of civil
servants whose positions have generally been obtained through
the passage of tests based upon merit. The civil service is
sometimes considered a permanent government, distinct from
the transient politicians who serve only for a limited time and at
the pleasure of the electorate in democratic political systems.
In businesses and in other nongovernmental bureaucratic
organizations, there is also a professional cadre of managers.
Professionalization increases expertise and continuity within the
organization. Even when organizations are temporarily leaderless
or exprience turmoil in their top leadership positions, the
professional cadre helps to maintain an
organizational equilibrium. The virtues of professionalization are
clear: without a professional corps, organizations would suffer
from crises induced by incompetency. Professionalization thus
contributes to the superior technical proficiency that Weber
claimed was the hallmark of bureaucratic organization.
Despite its virtues, professionalization also carries potential
risks. Often the professional corps of managerial experts itself
becomes a covert source of power because it has superior
knowledge compared with those who are its nominal but
temporary superiors. By virtue of greater experience, mastery of
detail, and organizational and substantive knowledge,
professional bureaucrats may exercise strong influence over
decisions made by their leaders. The existence of powerful
bureaucrats raises issues of accountability and responsibility,
particularly in democratic systems; bureaucrats are supposedly
the agents of their leaders, but their superior knowledge of detail
can place them in a position of indispensability. In addition,
although a permanent corps of officials brings expertise and
mastery of detail to decision making, it also deepens the
innate conservatism of a bureaucracy. The permanent corps is
usually skeptical of novelty because the essence of bureaucratic
organization is to turn past novelties into present routines.
Professional bureaucrats, be they in the civil or private sector,
also tend to favour the organizational status quo because their
investments (e.g., training and status) are tied to it.
Consequently, the more professionalized the cadre becomes, the
more likely it is to resist the intrusion of external forces.
Rules are the lifeblood of bureaucratic organization,
providing a rational and continuous basis for procedures and
operations. An organization’s files provide the inventory of
accumulated rules. Bureaucratic decisions and—above all—
procedures are grounded in codified rules and precedents.
Although most people dislike rules that inhibit them, the existence
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of rules is characteristic of legal-rational authority, ensuring that

decisions are not arbitrary, that standardized procedures are not
readily circumvented, and that order is maintained. Rules are the
essence of bureaucracy but are also the bane of leaders who
want to get things done their way instantly.
Rules restrain arbitrary behaviour, but they also can
provide formidable roadblocks to achievement. The accumulation
of rules sometimes leads to the development of inconsistencies,
and the procedures required to change any element of the status
quo may become extraordinarily onerous as a result of the rule-
driven character of bureaucracy. One perspective holds that the
strict adherence to rules restricts the ability of a bureaucracy to
adapt to new circumstances. By contrast, markets, which can
operate with very few rules, force rapid adaptation to changing
circumstances. Yet, most major business organizations are
arranged in bureaucratic form because hierarchy and delegated
responsibility reduce the transaction costs of making decisions.
Thus, the most basic elements of pure bureaucratic
organization are its emphasis on procedural regularity, a
hierarchical system of accountability and responsibility,
specialization of function, continuity, a legal-rational basis, and
fundamental conservatism. The emergence of capitalism and the
emphasis on standard currency transactions over and
above barter systems created the need for bureaucratic forms of
organization in both the private and public sectors. However, the
critical elements of the bureaucratic form of organization also can
conflict with one another and are often at the base of criticisms
that regard bureaucracies as dysfunctional. In sum, what makes
bureaucracy work also may work against it.
5. Behavioral Management by Mary Parker Follet

Mary Parker Follett, or the "Mother of Modern
Management," believed that management was "the art of getting
things done through people."
Though she never managed a for-profit enterprise, she
offered valuable insight on the importance of "powering with"
rather than "powering over," and integrating with employees to
solve conflicts.
"Leadership is not defined by the exercise of power but by
the capacity to increase the sense of power among those led,"
Follett once said. "The most essential work of the leader is to
create more leaders."
Follett practiced these principles of coordination that
helped develop her theory of management:

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 Direct contact. Direct contact between employees and

managers helps organizations avoid conflict and
misunderstandings. Holding regular meetings or discussing
assignments in person is a simple way to practice this
principle.
 Early stages. Coordination should be learned and
mastered straight away. No employee should feel less
important than the next; each has a significant role that
compliments the roles of others.
 Reciprocal relationship. Every worker, regardless of their
level in hierarchy, is responsible for pulling their weight and
integrating with the rest of the organization. No one person
should be trying less or more than another – it's a team
effort.
 Continuous process. Coordination must be maintained.
Don't just learn it and forget about it; channel it in
everything you do.
Known well for her mediating tendencies and managing

tactics, Follett created a management theory that is still in favor
today. Its main principals include:
a. Integration
- Follett thought that workers of all levels should
integrate to reach the organization's goals. If
conflict arises, there should be a conscious
effort to pull instead of push, and to work
together as a team. Because each member is
doing their part, overall, they'll be more likely to
be content with result.
b. Power with
- Rather than establishing a strict hierarchy and
delegating power to certain individuals over
others, Follett believed that workers should
practice co-active power. Powering with their
team is better than powering over them; this
way, each member feels just as valued as the
next. This is not to say that hierarchy should be
eliminated entirely, however. Structure is still
crucial, but employees should not feel like they
are less valuable than their managers.
c. Group power
- Group power should be valued over personal
power. Organizations do not exist for one
person's benefit, but rather the entire company
of workers. If this selfless mindset prevails, then

84
all workers will feel like they're on the same

team, rather than in competition with each other.
6. The Hawthorne Studies

The Hawthorne studies were conducted on workers at the
Hawthorne plant of the Western Electric Company by Elton Mayo
and Fritz Roethlisberger in the 1920s. The Hawthorne studies
were part of a refocus on managerial strategy incorporating the
socio-psychological aspects of human behavior in organizations.
The studies originally looked into whether workers were
more responsive and worked more efficiently under certain
environmental conditions, such as improved lighting. The results
were surprising: Mayo and Roethlisberger found that workers
were more responsive to social factors—such as the people they
worked with on a team and the amount of interest their manager
had in their work—than the factors (lighting, etc.) the researchers
had gone in to inspect.
The Hawthorne studies discovered that workers
were highly responsive to additional attention from their
managers and the feeling that their managers actually cared
about, and were interested in, their work. The studies also
found that although financial motives are important, social
issues are equally important factors in worker productivity.
There were a number of other experiments conducted in
the Hawthorne studies, including one in which two women were
chosen as test subjects and were then asked to choose four
other workers to join the test group. Together, the women worked
assembling telephone relays in a separate room over the course
of five years (1927–1932). Their output was measured during this
time—at first, in secret. It started two weeks before moving the
women to an experiment room and continued throughout the
study. In the experiment room, they had a supervisor who
discussed changes with them and, at times, used the
women’s suggestions. The researchers then spent five years
measuring how different variables impacted both the group’s and
the individuals’ productivity. Some of the variables included giving
two five-minute breaks (after a discussion with the group on the
best length of time), and then changing to two 10-minute breaks
(not the preference of the group).
Changing a variable usually increased productivity, even if
the variable was just a change back to the original condition.
Researchers concluded that the employees worked harder
because they thought they were being monitored individually.
Researchers hypothesized that choosing one’s own coworkers,
working as a group, being treated as special (as evidenced by
85
working in a separate room), and having a sympathetic

supervisor were the real reasons for the productivity increase.
he Hawthorne studies showed that people’s work
performance is dependent on social issues and job satisfaction,
and that monetary incentives and good working conditions are
generally less important in improving employee productivity than
meeting individuals’ need and desire to belong to a group and be
included in decision making and work.
The Hawthorne Effect is the inclination of people who are
the subjects of an experimental study to change or improve the
behavior being evaluated only because it is being studied and
not because of changes in the experiment parameters or
stimulus.
The Hawthorne Effect refers to the fact that people will
modify their behavior simply because they are being
observed. The effect gets its name from one of the most famous
industrial history experiments that took place at Western
Electric’s factory in the Hawthorne suburb of Chicago in the late
1920s and early 1930s.
However, subsequent analysis of the effect by the
University of Chicago economists in 2009 revealed that the
original results were likely overstated.
The Hawthorne experiments were originally designed by
the National Research Council to study the effect of shop-floor
lighting on worker productivity at a telephone parts factory in
Hawthorne. However, the researchers were perplexed to find
that productivity improved, not just when the lighting was
improved, but also when the lighting was diminished. Productivity
improved whenever changes were made in other variables such
as working hours and rest breaks.
The researchers concluded that the workers’ productivity
was not being affected by the changes in working conditions, but
rather by the fact that someone was concerned enough about
their working conditions to conduct an experiment on it.
Research often relies on human subjects. In these cases,
the Hawthorne Effect is the intrinsic bias that researchers must
take into consideration when studying their findings. Although it
can be challenging to determine how a subject's awareness of a
study might modify their behavior, researchers should
nevertheless strive to be mindful of this phenomenon and adapt
accordingly.
While there is no universally agreed-upon methodology for
achieving this, experience and keen attention to the situation can
help researchers prevent this effect from tarnishing their results.
As an example of the Hawthorne Effect, consider a 1978
study conducted to determine if cerebellar neurostimulators
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could reduce the motor dysfunction of young cerebral palsy

sufferers. The objective testing revealed that the patients in the
study claimed that their motor dysfunctions decreased and that
they embraced the treatment. But this patient feedback
countered the quantitative analysis, which demonstrated that
there was scant increased motor function.
Indeed, the increased human interaction with doctors,
nurses, therapists, and other medical personnel during these
trials had a positive psychological impact on patients, which
consequently fostered their illusion of physical improvements to
their conditions. When analyzing the results, researchers
concluded that the Hawthorne Effect negatively impacted the
data, as there was no evidence that the cerebellar
neurostimulators were measurably effective.
7. Theory X and Y by Douglas McGregor

What do you think motivates your people to come to work
each morning? Do you believe that they get
great satisfaction from their work and take pride in doing the best
possible job? Or do you think that they see it as a burden, and
simply work for the money?
These assumptions about your team members can have a
significant influence on how you manage them.
In the 1960s, social psychologist Douglas McGregor
developed two contrasting theories that explained how managers'
beliefs about what motivates their people can affect their
management style. He labelled these Theory X and Theory Y.
These theories continue to be important even today.
Theory X and Theory Y were first explained by McGregor
in his book, "The Human Side of Enterprise," and they refer to
two styles of management – authoritarian (Theory X) and
participative (Theory Y).
If you believe that your team members dislike their work
and have little motivation, then, according to McGregor, you'll
likely use an authoritarian style of management. This approach is
very "hands-on" and usually involves micromanaging people's
work to ensure that it gets done properly. McGregor called this
Theory X.
On the other hand, if you believe that your people take
pride in their work and see it as a challenge , then you'll more
likely adopt a participative management style. Managers who use
this approach trust their people to take ownership of their work
and do it effectively by themselves. McGregor called this Theory
Y.
The approach that you take will have a significant impact
on your ability to motivate your team members. So, it's important
87
to understand how your perceptions of what motivates them can

shape your management style.
Theory X
Theory X managers tend to take a pessimistic view of their
people, and assume that they are naturally unmotivated and
dislike work. As a result, they think that team members need to
be prompted, rewarded or punished constantly to make sure that
they complete their tasks.
Work in organizations that are managed like this can be
repetitive, and people are often motivated with a "carrot and stick"
approach. Performance appraisals and remuneration are usually
based on tangible results, such as sales figures or product
output, and are used to control staff and "keep tabs" on them.
This style of management assumes that workers:
 Dislike their work
 Avoid responsibility and need constant direction
 Have to be controlled, forced and threatened to
deliver work
 Need to be supervised at every step Have no
incentive to work or ambition, and therefore need to
be enticed by rewards to achieve goals
According to McGregor, organizations with a Theory X
approach tend to have several tiers of managers and supervisors
to oversee and direct workers. Authority is rarely delegated, and
control remains firmly centralized. Managers are more
authoritarian and actively intervene to get things done.
Although Theory X management has largely fallen out of
fashion in recent times, big organizations may find that adopting it
is unavoidable due to the sheer number of people that they
employ and the tight deadlines that they have to meet.
Theory Y
Theory Y managers have an optimistic, positive opinion of
their people, and they use a decentralized, participative
management style. This encourages a more collaborative , trust-
based relationship between managers and their team members.
People have greater responsibility, and managers
encourage them to develop their skills and suggest
improvements. Appraisals are regular but, unlike in Theory X
organizations, they are used to encourage open communication
rather than control staff.
Theory Y organizations also give employees frequent
opportunities for promotion.
This style of management assumes that workers are:

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 Happy to work on their own initiative.

 More involved in decision making.
 Self-motivated to complete their tasks
 Enjoy taking ownership of their work.
 Seek and accept responsibility, and need little
direction
 View work as fulfilling and challenging.
 Solve problems creatively and imaginatively
Theory Y has become more popular among organizations.
This reflects workers' increasing desire for more meaningful
careers that provide them with more than just money.
It's also viewed by McGregor as superior to Theory X,
which, he says, reduces workers to "cogs in a machine," and
likely demotivates people in the long term.
Theory of X and Y in the workplace

Most managers will likely use a mixture of Theory X and
Theory Y. You may, however, find that you naturally favor one
over the other. You might, for instance, have a tendency
to micromanage or, conversely, you may prefer to take a
more hands-off approach .
Although both styles of management can motivate people,
the success of each will largely depend on your team's needs
and wants and your organizational objectives.
You may use a Theory X style of management for new
starters who will likely need a lot of guidance, or in a situation that
requires you to take control such as a crisis .
But you wouldn't use it when managing a team of experts ,
who are used to working under their own initiative, and need little
direction. If you did, it would likely have a demotivating effect and
may even damage your relationship with them.
However, both theories have their challenges. The
restrictive nature of Theory X, for instance, could cause people to
become demotivated and non-cooperative if your approach is too
strict. This may lead to high staff turnover and could damage
your reputation in the long term.
Conversely, if you adopt a Theory Y approach that gives
people too much freedom, it may allow them to stray from their
key objectives or lose focus. Less-motivated individuals may also
take advantage of this more relaxed working environment by
shirking their work.
If this happens, you may need to take back some control
to ensure that everyone meets their team and organizational
goals.

89
Circumstance can also affect your management style.

Theory X, for instance, is generally more prevalent in larger
organizations, or in teams where work can be repetitive and
target-driven.
In these cases, people are unlikely to find reward or
fulfillment in their work, so a "carrot and stick " approach will tend
to be more successful in motivating them than a Theory Y
approach.
In contrast, Theory Y tends to be favored by organizations
that have a flatter structure, and where people at the lower levels
are involved in decision making and have some responsibility.
8. Theory Z-William Ouchi

William Ouchi developed Theory Z after making a
comparative study of Japanese and American management
practices. Theory Z is an integrated model of motivation. Theory
Z suggests that large complex organisations are human systems
and their effectiveness depends on the quality of humanism
used. A type Z organisation has three major features—trust,
subtlety and intimacy.
Mutual trust between members of an organisation reduces
conflict and leads to team work. Subtlety requires sensitivity
towards others and yields higher productivity. Intimacy implies
concern, support and disciplined unselfishness.
The distinguishing features of Theory Z are as follows:
a. Mutual Trust
- According of Ouchi, trust, integrity and
openness are essential ingredients of an
effective organisation. When trust and openness
exist between employees, work groups, union
and management, conflict is reduced to the
minimum and employees cooperate fully to
achieve the organisation’s objectives.
b. Strong bond between organization and employees
- Several methods can be used to establish a
strong bond between the enterprise and its
employees. Employees may be granted lifetime
employment which leads to loyalty towards the
enterprise. During adverse business conditions
shareholders may forgo dividends to avoid
retrenchment of workers. Promotions may be
slowed down. As against vertical movement of
employees greater emphasis should be placed
on horizontal movement which reduces
stagnation. A career planning for employees
should be done so that every employee is
90
properly placed. This would result in a more

stable and conducive work environment
c. Employee Involvement
- Theory Z suggests that involvement of
employees in related matters improves their
commitment and performance. Involvement
implies meaningful participation of employees in
the decision-making process, particularly in
matters directly affecting them. Such
participation generates a sense of responsibility
and increases enthusiasm in the implementation
of decisions, Top managers serve as facilitators
rather than decision-makers.
d. Integrated organization
- Under Theory Z, focus is on sharing of
information and ‘ resources rather than on chart,
divisions or any formal structure. An integrated
organisation puts emphasis on job rotation
which improves understanding about
interdependence of tasks. Such understanding
leads to group spirit.
e. Coordination
- The leader’s role should be to coordinate the
efforts of human beings. In order to develop
common culture and class feeling in the
organisation, the leader must use the processes
of communication, debate and analysis.
f. Informal control system
- Organisational control system should be made
informal. For this purpose emphasis should be
on mutual trust and cooperation rather than on
superior-subordinate relationships.
g. Human resource development
- Managers should develop new skills among
employees. Under Theory’ Z, potential of every
person is recognized and attempts are made to
develop and utilise it through job enlargement,
career planning, training, etc.
Thus, Theory Z is a hybird system which incorporates the
strengths of American management (individual freedom, risk
taking, quick decision-making, etc.) and Japanese management
(job security, group decision-making, social cohesion, holistic
concern for employees, etc.) systems.
Japanese companies operating in the United State have
successfully used Theory Z. After collaboration between
Japanese and Indian companies, some experts have suggested
91
application of this theory in India, in Maruti Udyog, which has

collaboration with Suzuki motors of Japan an attempt has been
made to apply Theory Z.
The workplace has been designed on the Japanese
pattern, which involves open offices. The same uniform has been
introduced for all employees irrespective of their designation.
Similarly, there is a common canteen for all. These practices are
expected to avoid status differentials and class feeling among
employees and thereby facilitate teamwork in the company.
Limitations of Theory Z
a. Provision of lifetime employment to employees to
develop a strong bond between organisation and
employees may fail to motivate employees with higher
level needs. It merely provides job security and may fail
to develop loyalty among employees. An employee may
leave the organisation when better employments are
offered to him by some other enterprise. Moreover,
complete security of job may create lethargy among
many employees. Employers also do not like to retain
inefficient employees permanently.
b. Participation of employees in the decision-making
process is very difficult. Managers may dislike
participation as it may hurt their ego and freedom.
Employees may be reluctant to participate due to fear of
criticism and lack of motivation. Even if they sit along
with management they may contribute little unless they
understand the issues and take initiative. Involvement of
all employees may also slow down the decision-making
process.
c. Theory Z suggests organisation without any structure.
But without structure there may be chaos in the
organisation as nobody will know who is responsible to
whom.
d. It may not be possible to develop a common culture in
the organisation because people differ in their attitudes,
habits, languages, religions, customs, etc.
e. Theory Z is based on Japanese management practices.
These practices have been evolved from Japan’s
unique culture. Therefore, the theory may not be
applicable in different cultures.
Thus, Theory Z does not provide complete solution to
motivational problems of all organisations operating under
different types of environment. However, it is not merely a theory
of motivation but a philosophy of managing.

92
9. Management Science
Management science, any application of science to the
study of management. Originally a synonym for operations
research, the term management science (often used in the plural)
now designates a distinct field. Whereas operations research
affords analytical data, statistics, and methods to increase
the efficiency of management systems, management science
applies these tools in such fields as data
mining, engineering, economic forecasting, and logistics.
Management science initially included any application of
science to management problems or to the process of
management itself; it thus encompassed operations
research, systems analysis, and the study of management-
information systems. This broad understanding of the scope of
the field was reflected in the constitution of the Institute of
Management Sciences (TIMS), founded in 1953 as an outgrowth
of the Operations Research Society of America (ORSA). It stated
that “the objects of the Institute shall be to identify, extend, and
unify scientific knowledge that contributes to the understanding
and practice of management.” In 1995 ORSA and TIMS merged
to form the Institute for Operations Research and the
Management Sciences (INFORMS).
Although management science could include the study of
all activities of groups that entail a managerial function, it
generally entails the following: (1) discovering, developing,
defining, and evaluating the goals of the organization and
the alternative policies that will lead toward the goals, (2) getting
the organization to adopt the policies, (3) scrutinizing the
effectiveness of the policies that are adopted, and (4) initiating
steps to change policies that are ineffective or inadequately
effective. Management science often has drawn its concepts and
methods from the older disciplines of economics, business
administration, psychology, sociology, and mathematics.
The four major characteristics of management science are
as follows:
a. Examine functional relationship from a systems
overview
- The activity of any one function of a company
will have some effect on the activity of each of
the other functions. Therefore it is necessary to
identify all important interactions and determine
their impact on the company as a whole.
Initially, the functional relationships in a
management science project are expanded
deliberately so that all the significantly
interacting parts and their related components
93
are contained in a statement of the problem. A

systems overview examines the entire area
under the manager’s control. This approach
provides a basis for initiating inquiries into
problems that seem to be affecting performance
at all levels.
b. Use the interdisciplinary approach
- Management science makes good use of a
simple principle, it looks at the problem from
different angles and approaches. For example,
a mathematician might look at the inventory
problem and formulate some type of
mathematical relationships between the
manufacturing departments and customer
demand. A chemical engineer might look at the
same problem and formulate it in terms of flow
theory. A cost accountant might conceive the
inventory problem in terms of component costs
(e.g., direct material cost, direct labour cost,
overheads etc.) and how such costs can be
controlled and reduced, etc.
- Therefore, management science emphasizes
over the interdisciplinary approach because
each of the individual aspects of a problem can
be best understood and solved by those,
experts in different fields such as accounting,
biological, economic, engineering, mathematics,
physical, psychological, sociological, statistical
etc.
c. Uncover new problems for study
- The third characteristic of management science,
which is often overlooked, is that the solution of
an MS problem brings new problems to light. All
interrelated problems uncovered by the MS
approach do not have to be solved at the same
time. However, each must be solved with
consideration for other problems if maximum
benefits are to be obtained.
d. Use of modeling-process approach to problem solving
- Management science takes a systematic
approach to problem solving. It may use a
modeling process approach taking the help of
mathematical models.
The tools of Management science

a. Decision matrices
94
- Allocation and investment problems involving a

relatively small number of possible solutions can
be presented in a tabular form known as
decision matrix.
b. Decision trees
- The extension of decision matrices for situations
involving several decision periods takes the
shape of a tree.
c. Mathematical programming
- It attempts to maximize the attainment level of
one goal subject to a set of requirements and
limitations. It has extensive use in business,
economics, engineering, the military and public
service, mainly as an aid to the solution of
allocation problems.
d. Branch and bound
- It is a step-by-step procedure used when a very
large (or even infinite) number of alternatives
exist for certain managerial problems.
e. Network models
- This is a family of tools designed for the purpose
of planning and controlling complex projects.
The best known models are PERT and CPM.
f. Dynamic programming
- It is an approach to decisions that are basically
sequential in nature or can be reformulated so
as to be considered sequential. It is a very
general and powerful tool.
g. Markov chain
- They are used for predicting the outcome of
processes where systems or units change their
condition over time (e.g., consumers change
their preferences for certain brands of commodi-
ties).
h. Game theory
- It provides a systematic approach to decision-
making in competitive environments and a
framework for the study of conflict.
i. Inventory models
- For certain types of inventory control problems,
certain models that attempt to minimize the cost
associated with ordering and carrying
inventories have been developed.
95
j. Waiting line models

- For certain types of problems involving queues,
special descriptive models have been
developed to predict the performance of service
systems such as car garages – cars standing in
queue for servicing.
k. Simulation models
- For the analysis of complex systems when all
other models fail, management science uses
descriptive-type simulation models.
10. Organization and Environment Theory

An important milestone in the history of management
thought occurred when researchers went beyond the study of
how managers can influence behavior within organizations to
consider how managers control the organization’s relationship
with its external environment, or organizational environment —the
set of forces and conditions that operate beyond an
organization’s boundaries but affect a manager’s ability to
acquire and utilize resources.
Resources in the organizational environment include the
raw materials and skilled people that an organization requires to
produce goods and services, as well as the support of groups,
including customers who buy these goods and services and
provide the organization with financial resources. One way of
determining the relative success of an organization is to consider
how effective its managers are at obtaining scarce and valuable
resources. The importance of studying the environment became
clear after the development of open-systems theory and
contingency theory during the 1960s.
One of the most influential views of how an organization is
affected by its external environment was developed by Daniel
Katz, Robert Kahn, and James Thompson in the 1960s. These
theorists viewed the organization as an open system —a system
that takes in resources from its external environment and
converts or transforms them into goods and services that are sent
back to that environment, where they are bought by customers.
At the input stage an organization acquires resources such
as raw materials, money, and skilled workers to produce goods
and services. Once the organization has gathered the necessary
resources, conversion begins.
At the conversion stage the organization’s workforce, using
appropriate tools, techniques, and machinery, transforms the
inputs into outputs of finished goods and services such as cars,
hamburgers, or flights to Hawaii.

96
At the output stage the organization releases finished

goods and services to its external environment, where customers
purchase and use them to satisfy their needs. The money the
organization obtains from the sales of its outputs allows the
organization to acquire more resources so the cycle can begin
again.
The system just described is said to be open because the
organization draws from and interacts with the external
environment in order to survive; in other words, the organization
is open to its environment. A closed system, in contrast, is a self-
contained system that is not affected by changes in its external
environment. Organizations that operate as closed systems, that
ignore the external environment, and that fail to acquire inputs
are likely to experience entropy, which is the tendency of a closed
system to lose its ability to control itself and thus to dissolve and
disintegrate.
Management theorists can model the activities of most
organizations by using the open- systems view. Manufacturing
companies like Ford and General Electric, for example, buy
inputs such as component parts, skilled and semiskilled labor,
and robots and computer- controlled manufacturing equipment;
then at the conversion stage they use their manufacturing skills to
assemble inputs into outputs of cars and appliances.
Researchers using the open-systems view are also
interested in how the various parts of a system work together to
promote efficiency and effectiveness. Systems theorists like to
argue that the whole is greater than the sum of its parts; they
mean that an organization performs at a higher level when its
departments work together rather than separately. Synergy , the
performance gains that result from the combined actions of
individuals and departments, is possible only in an organized
system. The recent interest in using teams combined or
composed of people from different departments reflects systems
theorists’ interest in designing organizational systems to create
synergy and thus increase efficiency and effectiveness.
11. Contingency Theory

Contingency theory is considered a dominant, theoretical,
rational, open system model at the structural level of analysis in
organization theory (Scott, 1992). The basic assertion of
contingency theory is that the environment in which an
organization operates determines the best way for it to organize.
The research question, 'Is Contingency Theory Science or
Technology?' asks whether these matchings of organizational
and environmental characteristics are scientific theories or a
technology for managers to aid them in making decisions.
97
Basic concepts. The position of the organizational theorist

is that "the best way to organize depends on the nature of the
environment to which the organization relates." (Scott, 1992: 89)
Contingency theory has two basic underlying assumptions: First -
There is no one best way to organize. Second - Any way of
organizing is not equally effective.
Organization theorists can identify many different
characteristics and the organization, and they define
organizational performance in various ways. These researchers
try to identify a match between the characteristics of the
environment and those of the organization that lead to high
performance. This match is called 'fit', the better the fit the higher
the performance. Such a match is called a 'contingency theory'.
In using the term 'contingency theory' wedo not mean to
immediately define such matches as science. Indeed many
researchers have avoided this issue by using other terms such as
'contingency perspective', 'contingency view' and 'contingency
approach'
A contingency theory is an organizational theory that
claims that there is no best way to organize a corporation, to lead
a company, or to make decisions. Instead, the optimal course of
action is contingent (dependent) upon the internal and external
situation. Contingent leaders are flexible in choosing and
adapting to succinct strategies to suit change in situation at a
particular period in time in the running of the organization.
In Fiedler’s piece from 1993, he describes how two main
factors contribute to effective or successful leadership and points
them out as “the personality of the leader and the degree to
which the situation gives the leader power, control and influence
over the situation”. Leadership personality can be broken up into
two main motivation schools of thought for leaders. Leaders can
be task motivated or relationship motivated. The way that Fiedler
suggests individuals determine their motivation preference is
through the Least Preferred Co-Worker Score or LPC. The
second aspect that Fielder says determines success is the
specific situation and the degree to which the leader feels in
control of the outcome of their actions.
Gareth Morgan in his book Images of
Organization summarized the main ideas underlying contingency:
 Organizations are open systems that need careful
management to satisfy and balance internal needs
and to adapt to environmental circumstances
 There is not one best way of organizing. The
appropriate form depends on the kind of task or
environment one is dealing with

98
 Management must be concerned, above all else,

with achieving alignments and good fits
 Different types or specifics of organizations are
needed in different types of environments
Fred Fiedler's contingency model focused on a
contingency model of leadership in organizations. This model
contains the relationship between leadership style and the
favourableness of the situation. Fielder developed a metric to
measure a leader's style called the Least Preferred Co-
worker. The test consists of 16-22 items they are to rate on a
scale of one to eight as they think of a co-worker they had the
most difficulty working with. A high score indicates the test
taker is relational in style and a low score indicates the test
taker is more task orientated in style. Situational
favourableness was described by Fiedler in terms of three
empirically derived dimensions:
a. Leader-member relationship – high if the leader is
generally accepted and respected by followers
b. Degree of task structure – high if the task is very
structured
c. Leader's position power – high if a great deal of
authority and power are formally attributed to the
leader's position
Situations are favorable to the leader if all three of these
dimensions are high.
How to apply Fiedler’s Contingency Model:
a. Understand your leadership style - this information
can be obtained by completing a Least-Preferred Co-
Worker Scale. Low LPC indicates a task-oriented
leader and high LPC indicates a relationship-oriented
leader
b. Understand your situation - you have to describe
your situation using the empirically derived
dimensions
c. Decide which leadership style is best - this is mostly
determined by which characteristics of a certain
situation are low, unstructured, or poor, so the best
fit leader can come in and make that characteristic
better in that circumstance
The first major strength of the contingency theory is that
it has the support of an abundance of empirical. This is critical
as it proves that the theory is reliable, based on various trials
and research. The contingency theory is also beneficial as it
widened our understanding of leadership, by persuading
individuals to consider the various impacts of situations on

99
leaders. Another strength of the contingency theory is its

predictive nature that provides an understanding to the types
of leaders that will be most effective in specific situations. This
theory is also helpful, as it suggests that leaders do not have
to be effective in all situations and that there are specific
scenarios in which a leader might not be the perfect fit. The
last major advantage of the contingency theory is that it
provides concrete data on leadership styles, that is applicable
to organizations developing their own leadership profiles
MANAGEMENT OF THEORY AND PRACTICE
REFERENCES
https://www.toppr.com/guides/business-management-and-
entrepreneurship/organizing/authority-and-responsibility/
https://www.toolshero.com/management/bureaucratic-theory-weber/
https://www.twi-global.com/technical-knowledge/faqs/faq-what-is-
brainstorming
https://corporatefinanceinstitute.com/resources/knowledge/strategy/
centralization/
https://thedecisionlab.com/reference-guide/philosophy/devils-advocacy/
https://mgtdiary.blogspot.com/2013/08/principle-espirit-de-corps_13.html
https://www.makingbusinessmatter.co.uk/ethics-in-management/
https://en.wikipedia.org/wiki/Security_of_tenure
https://www.investopedia.com/news/what-are-tariffs-and-how-do-they-
affect-you/
https://www.britannica.com/topic/free-trade
https://www.iedunote.com/values
https://www.yourarticlelibrary.com/business-management/motivation-
meaning-characteristics-and-role-business-management/70084
https://businessjargons.com/planning.html
https://courses.lumenlearning.com/boundless-management/chapter/core-
functions-of-human-resource-management/
100
https://www.investopedia.com/terms/s/synergy.asp
https://www.investopedia.com/terms/s/stakeholder.asp
https://www.sciencedirect.com/topics/social-sciences/social-ethics
https://www.personalfinancelab.com/finance-knowledge/management/
social-responsibility-management/
https://searchcio.techtarget.com/definition/Total-Quality-Management
https://www.fao.org/3/ad346e/ad346e09.htm
https://en.wikipedia.org/wiki/Totalitarianism#Definition
https://www.intelligenteconomist.com/economic-systems/
https://www.researchgate.net/publication/
349006226_MANAGEMENT_THEORY_AND_PRACTICE
https://www.ryansievers.com/art-of-business/2006/10/6/the-business-
environment
https://corporatefinanceinstitute.com/resources/knowledge/strategy/
industry-life-cycle/
https://business.uq.edu.au/momentum/4-ways-manage-diversity-work
https://www.yourarticlelibrary.com/accounting/decision-making-
accounting/decision-making-process-6-steps-involved-in-it/52783
https://mumimabastola.files.wordpress.com/2014/02/scientific-
management-theory.pdf
https://checkify.com/blog/time-and-motion-study/
https://www.business.com/articles/management-theory-of-frank-and-lillian-
gilbreth/
https://www.business.com/articles/management-theory-of-mary-parker-
follett/
https://www.investopedia.com/terms/h/hawthorne-effect.asp
https://courses.lumenlearning.com/baycollege-introbusiness/chapter/video-
hawthorne-studies-at-att/

101
https://www.mindtools.com/pages/article/newLDR_74.htm
https://www.yourarticlelibrary.com/motivation/william-ouchis-theory-z-of-
motivation-features-and-limitations/28024
https://www.britannica.com/topic/management-science
https://www.businessmanagementideas.com/essays/management-
science-definition-characteristics-and-tools/9080
https://wce.education/wp-content/uploads/2020/05/Organizational-
Environment-Theory.pdf
Work is divided into small tasks/jobs. A trained specialist who is competent
is required to perform each job. Thus, division of work leads
to
specialization. According to Fayol, “The intent of division of work is
to
According to Fayol, “Authority is the right to give orders and
obtain
obedience, and responsibility is the corollary of authority. The two types of
authority are official authority, which is the authority to command,
and
personal authority which is the authority of the individual
manager.”
Authority is both formal and informal. Managers require authority
commensurate with their responsibility. There should be a balance
between
authority and responsibility. An organisation should build safeguards
against
abuse of managerial power. At the same time a manager
should have
necessary authority to carry out his responsibility

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1

THEORY AND PRACTICE IN PUBLIC ADMINISTRATION

Name: DUGAY, SHAIRUZ CAESAR BRIONES

d. PA according to Professor L.D. White

SHAIRUZ CAESAR B. DUGAY, RN

e. PA according to Luther Gullick

g. POSDCORB in Public Administration with meanings of its letters

SHAIRUZ CAESAR B. DUGAY, RN

- the HR department making a list of people i.e.

1. 5 branches of Public Administration

administration, much interest has been directed

SHAIRUZ CAESAR B. DUGAY, RN

- Policy Analysis and Program Administration

2. 2 importance of Public administration

increased the scope of state activity leading to ever

3. Differentiate Public Administration and Private

funds exceeds expenditure because there is

SHAIRUZ CAESAR B. DUGAY, RN

- In the field of public administration, there is

SHAIRUZ CAESAR B. DUGAY, RN

b. AL according to F.G. Goodnow

c. AL according to W.B. Murno

jurisdiction of the ordinary tribunals”. It implies that in

II. Distinction between rule of law and administrative law

SHAIRUZ CAESAR B. DUGAY, RN

be according to law and not on outside criteria or on

- The administrator is better aware of the

2. Advantages of delegated legislation

SHAIRUZ CAESAR B. DUGAY, RN

knowledge and working out details on correct

3. 6 disadvantages of delegated legislation

SHAIRUZ CAESAR B. DUGAY, RN

f. Confusion and Chaos

4. 6 kinds of administrative adjudication

5. 4 causes of the growth of administrative adjudication

SHAIRUZ CAESAR B. DUGAY, RN

law, would causes immense loss to the state

6. 5 advantages of administrative adjudication

SHAIRUZ CAESAR B. DUGAY, RN

7. 5 causes of administrative adjudication

e. Uniform procedures non – existent

SHAIRUZ CAESAR B. DUGAY, RN

b. Organisation according to L.D. White

c. Organization according to Pfiffnera.

d. Organisation according to Luther Gullick

e. Organisation ac ording to Milward

f. Organisation according to Gladden

SHAIRUZ CAESAR B. DUGAY, RN

- “organisation is concerned with the pattern of

and distributing authority. The extent of delegation of

k. Coordination according to Charles Worth

l. Coordination according to L.D. White

n. Communication according to Tead

b. Theories of Organisation with their definition

1. Structural- Functional Theory

In fact it is not always easy to draw a line between

d. 4 basic features of the hierarchial of scalar process

e. 5 merits of the scalar principles

f. 5 demerits of the scalar principles

g. 5 general principles of delegations

- Word differences are a big hindrance to mutual

k. 7 factors for an effective communication