Professional Documents
Culture Documents
Paul Haggett
This paper examines the crisis ofthe bureau- the organisation and management of the public
cratic mode of organisation within public sector. This is the purpose of this paper.
and private sectors and the emergence of
new forms of organisational control within
A restructured private sector, a
which maximal operational decentralisation
restructured public sector?
occurs alongside the further centralisation
Here is not the place to dwell at length upon the
of strategic command. It is suggested that
current state of argument surrounding the nature
the new basic principle of post bureaucratic
of restructuring in the private sector. I have
management corresponds to the idea of giv-
attempted to sketch some of the main differences
ing managers 'freedoms within boundaries'
of analysis in a previous paper (Hoggett, 1990).
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(Clarke and Mayer, 1986)7 Secondly, isthe organ- emerged which focuses upon the way in which
isational form of the state changing in a way which work is controlled within public and private organ-
corresponds to the new forms of organisational
isations. This tradition (Edwards, 1979; Clegg,
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National Health Service within the 1980s. Similar capitalist countries, It would be foolish to separate
trends within the American welfare sector have out this particular ideology (of the organisation of
been charted by Kenneth Alford (1975) where he production) from wider ideologies and 'ways of
speaks of managers and professionals as compet- seeing things' which were common to the period
ing structural interest groups (the professionals of post-war development which is sometimes
being dominant but managerialism being emerg- regarded as a period of 'modernism' par excel-
ent). A similar line of analysis can also be found in lence. The mechanistic and rationalistic principles
Heydebrand's (1977) analysis ofthe bureaucratis- of bureaucratic organisational control appear to
ation of the American legal profession. have corresponded to much wider, and deeply
rooted, ways of visualising the world and using
Bureaucratic control language.
As I have already suggested, the apogee of
bureaucratic control corresponded to the post-war It is difficult, if not impossible, to peel down and
period of growth and development in the Western succinctly capture the nature of the bureaucratic
dardised systems of co-ordination and control, bureaucratic control strategies, also produced its
and excessive attention to formalised procedures' own antithesis. Within organisational sociology
(p. 198). Others have noted the primacy of imper- the 'symbolic interactionist' literature was con-
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sonal forms of regulation, of objectivity, of detailed cerned primarily to study the informal strategies
prescription and differentiation. Indeed, it may adopted by people within bureaucratic organ-
come as a reassurance to many public sector isations to subvert the formalised and regu-
workers that such forms of organisational life
latory regimes in which they found themselves
appear to have been as prevalent within the post- immersed. Within the social policy literature the
war private sector as within government, health samephenomenon becomesexplored through the
and other social servicesagencies. concept of 'discretion', 'a ubiquitous phenomenon
However, to fully appreciate the nature of organis- linked to the inherent and logical limits to control'
ational bureaucracy, it is necessary to get away (Ham and Hill, 1984).
from those mechanistic ways of thinking which
An analogy may be useful here in enabling us to
were so much a part of the bureaucratic world,
think through the character of the organisational
ways which felt uncomfortable with handling
regimesduring the bureaucratic era. Leaving aside
paradox, contradiction, and conflict. In Table 2 I
the issue of coercion, a very close comparison
attempt to outline some of the essential character-
can be made between the experience of working
istics of bureaucracy, but in a way which demon- within bureaucratic regimesand the social experi-
stratesthe essential contrariness of bureaucracy (a
ence of citizenship in post-totalitarian regimes
contrariness which bureaucratic ways of thinking
within eastern Europe (Havel, 1987). Within both
could neverfully apprehend).
regimes we find an ascendant principle of regu-
Anyone familiar with large private sector latory control through attempts to define, specify
companies in Britain (e.g. British Aerospace), or and regiment all aspects of social life. We might
with the National Health Service and local govern- think of such systems as bureaucratic command
ment in Britain in the 1970s would be familiar structures - an attempt to reach out and control
with the many highly autonomous departments, all pores of society/organisation. The point is that
enclaves and territories which characterise these where no formalised freedoms exist then the result
large bureaucratic formations. Nevertheless,there is widespread, informal subversion. And this is as
is still some truth in suggesting that the dominant true within British local government or British
characteristic of such bureaucratic forms was cen- Aerospace in the 1970s as it was within eastern
tralisation, the problem being that such processes European societies under Brezhnev, Husak, etc.
of centralisation in themselves constituted their The problem for bureaucratic regulationists was
methods of asserting control and in doing so information concerned with the planning, design,
merely exacerbated existing tensions. Thus, the co-ordination and supervision of production. But
centre of the organisation reacted to the emerg- this demise was made imperative by the develop-
ence of divisionally based, or departmentally ment of PI E, turbulent market conditions and (par-
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based, power centres by seeking to impose greater ticularly for state democracies) the fiscal crisis of
degrees of corporate regulation and control. the state itself.
'Centralised units devoted to development of By the 1970s, mechanistic and rationalistic
corporate strategy grew like Topsy, budget- approaches to management, e.g. management by
making processes became geared to under- objectives, had more or less had their day (except
mining the dysfunctional autonomy of the in the British public sector where they were under-
corporate sub-units, the culture of mistrust going something of a renaissance). Signs of new
necessitated the enforcement of the principle thinking were clearly beginning to emerge through
of 'delegation upwards', and so on' (Hoggett, the work of the Palo Alto school of 'communi-
1990, p, 10). cations theory' (Watzalwick, Beavin and Jackson,
Increasingly, then, the centre of bureaucracy was 1968) and the important work of Gregory Bateson
forced to adopt a policing role which led it towards (1973). Bateson studied complex forms of animal
progressive encroachment on routine and admin- learning and applied this to theories of learning
istrative operations and details themselves. Hence within family and social systems. This in turn
the constant experience of policy makers within became the basis for thinking through issues
state bureaucracies in the later 1970s and 1980s of of imitation and innovation within management
being bogged down in detail, of never having time learning. What some have referred to as the 'New
to focus upon real strategic issues. Wave' of management writing (Wood, 1989)
really began to take off in the early 1980s with
The demise of bureaucratic control the work of Tom Peters and others (Peters and
Such 'dysfunctions' could be contended with so Waterman, 1982; Peters, 1987; Kanter, 1984). The
long as the bureaucratic form was congruent with book by Peters and Waterman (1982) announced
prevailing market and technological conditions. In itself as a full-blown critique of the basic mana-
terms of their liking for centralisation, massifica- gerial assumptions of the bureaucratic era. This
tion and 'the vertical integration of production' single text has had a most remarkable impact upon
bureaucracies seemed geared to the mass pro- the rhetoric, if not the practice, of managers in
duction of goods and services. Moreover, the the British public sector producing a plethora
giant, slow moving organisations which emerged of 'Excellence' seminars, conferences and even
during this period could not respond swiftly to annual awards (e.g. the winner ofthe annual Local
going to amount to little more than an attempt to reform of the civil service, proposals which drew
disperse services spatially into districts and neigh- quite heavily upon the Swedish model of state
bourhoods. Management control often remained administration (Fudge and Gustafsson, 1989). As
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quite hierarchical, comparatively little progress a result, the Ibbs Report Improving management in
was made in devolving managerial decision- government: the next steps (1988) recommended
making. Nevertheless by as early as 1984 the Audit reconstituting much of central government along
Commission was taking note of the fact that the lines of a devolved or 'executive agency'
decentralised arrangements appeared to have an approach.
impact upon organisational efficiency (see the
Audit Commission document Bringing council By the late 1980s devolved approaches to man-
tenants' arrears under control, 1984). agement were being heralded by the Audit Com-
mission very much as if they constituted the new
It wasn't until the mid-1980s that real progress in orthodoxy for the public sector to follow (Audit
creating more devolved managerial forms began to Commission, 1988, 1989). Clearly we should re-
occur. In the National Health Service 'cost centre main sceptical of the extent to which such ideas
budgeting' was introduced through the Griffiths have taken hold of the practice of public sector
reforms in 1984 (Petchey, 1986). Within Social managers as opposed to the rhetoric. There has
Services a number of Shire County Social Services
been considerable resistance to such change from
Departments began to experiment with more trade unions, managers and politicians alike. Inad-
devolved approaches to management - the equate, and often manually based, financial infor-
Eastbourne Area Social Services Team in East mation systems presented a major block to many
Sussex was probably the first to acquire fully such developments as did the attitudes and prac-
devolved financial and personnel powers in 1987. tices of the many powerful senior officers within
Such developments were followed closely by the centralised financial, personnel and legal sections.
Social Work Inspectorate of the then Department However it would seem that the further extension
of Health and Social Security. This led tothe publi- of competitive tendering through the Local
cation of a major package oftraining materials, The Government and Housing Act of 1989 has finally
decentralisation of social services departments provided the catalyst for a major shake up of
(1988) which encouraged further developments. central services. Three basic models for the re-
The Department of Education and Science (DES) organisation of central services appear to be
had been similarly interested in developments in emerging. The first opts for a radical devolution of
Cambridgeshire's Education Department, where financial and personnel functions to the main ser-
attempts were being made in the mid-1980s to vice departments. The second, for the creation of
devolve financial management down to the heads an internal market for support services through the
management within the public sector are compat- The key point is that such processes of decentral-
ible with a range of political and institutional ob- ised centralisation occur at all institutional levels.
jectives-they can lead towards more genuinely They are as pertinent to our understanding of the
relationship between the centre of a social services
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organisations have to be managed by specifying read off from the formal statement of an organis-
Delivered by Ingenta to: University of Liverpool
'the essential core' and 'by being clear about ation's values. Because pressures to control costs
boundaries and areas of discretion by specify- are so great there is a tendency for organisations
ing the kinds of results which are required' (pp. to espouse service quality whilst privileging cost-
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103-4). control.
This new concern for results rather than methods Another way of thinking about this notion of
and procedures corresponds to the abandonment control by contract is to return to the problem
of control by hierarchy and its replacement with of discretion within bureaucratic organisational
control by contract. The development of commer- regimes. The post-bureaucratic organisation seeks
cial contracts between purchasers and suppliers is to overcome 'the problem' of informal discretion
just one manifestation of a much broader move- by replacing it with 'formalised freedom'. It is
ment towards contractual relationships within the important to note that the emphasis of much of
contemporary management process, the point the 'New Wave Management' (Wood, 1989) on
being that fully decentralised organisational 'intraprenneurialism', 'looseness', chaos, etc. is not
arrangements are incompatible with traditional so much a sign of a shift towards a greater degree
forms of hierarchical control, irrespective of of informality within organisations as it is of a
whether these arrangements are internal to the licensing (and hence control) of the informal that
organisation itself or an expression of external forms an inevitable part of all working environ-
decentralisation (i.e. contracting out). As I have ments. Cooper and Burrell (1988) note how the
said before my main interest in this paper is to look bureaucratic mentality could never get to grips
at internal forms of decentralisation. I have argued with the paradox of formality within organisations.
elsewhere (Hoggett. 1990, p. 21) that in Britain They suggest that 'post-modernist' approaches to
the impetus towards forms of external decentralis- the analysis of organisational life celebrate such
ation (i.e. contracting out) has come essentially contradictions rather than seeing them as irresol-
from the Conservative government. The objective able conceptual problems, They note, 'the formal'
underlying this strategy is clearly cost control and and 'informal' reflect each other like the obverse
hence, contrary to Aucoin's suggestion, it has and reverse sides of a coin; to the extent that they
focused more upon the specification of inputs in can never be separated, they are not just mutually
contractual relationships than upon outputs and defining but can be said to be self-referential'
results. (p. 109).
Cost control can clearly also be the main strategic This development of formalised informality within
objective underlying forms of internal decentralis- organisations is equivalent to the abandonment of
ation. Arguably this is the primary impulse behind regimented and regulated orders by more liberal
boundaries' that I now turn. ticularly in the role of the centre. In Table 3 I
attempt to sketch these changes.
Freedom within boundaries
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If control is to be devolved rather than abrogated The role of the centre is crucial in all this. There are
then devolution must take place within a given many who have argued that organisational decen-
framework or set of boundaries. Within organis- tralisation sounds fine in theory but in practice it
ations these boundaries consist essentially of sets would crucially weaken the ability of the centre
of rules and expectations, for exampe rules relating (and hence of the elected local or national poli-
to financial control or expectations relating to ticians) to direct and influence policy. But as
standards of performance. Without such bound- Handy (1989, pp. 95-6) notes, in the end organis-
aries there could be no accountability. The point ations 'have to stop trying to run everything from
about such boundaries is that they both open-up the centre, they have to begin to let go'. The
and close-off, they define what can be done and paradox of contemporary developments is that it
what can't be done, they constitute a space for is precisely by letting go of operational matters
legitimate action whilst precluding certain other that strategic command can be concentrated more
actions as illegitimate. This holds for any kind of effectively at the centre. The Thatcher government
rule irrespective of whether it consists of a 30 mph appeared to clearly appreciate this paradox. Its
speed limit, a rule relating to financial underspend- 'Next Steps' strategy was designed to increase
ing or to the invoicing of sub-contractors. In other efficiency in resource management within the
words a boundary constitutes both a constraint British civil service by re-organising it on a
and a freedom. devolved 'executive agency' basis whilst simul-
taneously enhancing the executive authority of
Typically people operating within bureaucratic Ministers over their departments (Kemp, 1990).
environments found that they could never do At the local governmental level it also tends to
anything (other than a strictly limited number have been Conservative councils who have been
of actions prescribed by their job specification) quickest to appreciate the nature of this paradox.
without first going 'back up the line'. This was Many Labour controlled local authorities have
how 'control by hierarchy' was experienced at the strongly resisted devolution, particularly of finan-
individual level. Because the boundaries were so cial and personnel powers, because of a feeling
tightly drawn they invited rule-bending as a that it would undermine the ability of elected
modus operandi. In a sense the development of politicians to direct local affairs. In reality I would
post-bureaucratic organisational forms is equiv- argue that it is only by embracing the new devel-
alent to the creation of more liberal-democratic opments that Labour politicians have any real
organisational regimes. Within such democracies chance to shape and direct events at a local
level- even the cut-back local councils of today 4. Has the unit any control over what services
are far too complex an organisational system to be it provides, how they are provided, and to
controlled from the centre. whom?
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vision or mission around which the new, liberal- budget itself a prerequisite is that control over
consensual organisational regime can be con- the revenue budget should be delegated to oper-
structed. Secondly, to be absolutely clear about ational management as well as a budget for all
the kinds of results it is looking for from operational non-major capital items. Typically the centre will
managers through the provision of practical objec- maintain tight control over the allocation of such
tives and performance targets. Thirdly, to develop budgets but devolved units may be granted (or
frameworks for monitoring, evaluation and in- may claim) influence through lobbying and bid-
spection both to encourage, reward and develop ding processes. Even if the devolved unit has no
performance and to police the boundaries for control over the central allocation it may have
possible transgression. The key point is that it no power to raise extra revenue. Schools (through the
longer has line-management (i.e. control through work of PTAs) have traditionally had such powers,
hierarchy) responsibilities and therefore no longer but housing teams may also be given the power to
needs those layers of senior managers (assistant develop agreements with tenants tying rents to
directors and principal officers) whose role, under services (this has been tried in Glasgow and else-
the old regimes, always contained an ambiguous where) or decentralised neighbourhoods may be
mixture of policy and administration. In the private granted the power to generate and keep their own
sector, the term 'down-sizing' is given to the capital receipts (as occurs in the London Borough
process of peeling off layers of redundant staff at of Tower Hamlets).
the centre.
Control over how the budget can be used (i.e.
Delegated powers expenditure control rules) constitutes an essential
What then are the managerial freedoms which facet of the boundaries within which the new
become delegated under the new organisational freedoms may be exercised. A consensus seems
arrangements? We can approach this issue by to be emerging, encouraged in part by the Audit
asking four questions: Commission document Towards better financial
1. Has the devolved unit its own budget? management (1989), which challenges overly
2. Has the unit any control or influence over the restrictive approaches to expenditure control.
size of this budget? Considerable scope for virement of sums between
3. What control does the unit have over how different budget heads can be provided so long as
this budget can be used? certain rules, e.g. preventing virement from capital
financial and personnel powers and yet have no of neighbourhoods could be maximised.
control over what services are produced, how they Such a radical approach to political and managerial
are delivered or to whom. It is equally possible to devolution has provided the conditions necessary
envisage an organisation, say for instance a social
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re-assert itself. By devolving control over oper- during this century. We noted the tension between
ational matters the strategic centre is freed up from bureaucratic and professional models of control
absorption in day to day administrative detail. This and the development of the attempt to 'subdue'
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within the private sector since the early 1970s. Studies, 9.1, 91-112.
I have suggested that this restructuring corres- Cousins, C. (1988) 'The restructuring of welfare work:
ponds, among other things, to a qualitative change the introduction of general management and the con-
in techniques of organisational control which are tracting out of ancillary services in the NHS, Work,
post-bureaucratic in character. I am aware of the Employment and Society 2, 210-228.
popularity of this particular suffix (i.e. 'post') at Day, P. and Klein, R. (1983) 'The mobilisation of con-
the present moment and am wary of adding to a sent versus the management of conflict: decoding the
Griffiths Report', BMA MedicalJournal, Vol. 287.
list which already includes post-Fordism, post-
Deakin, N. and Wright, A. (eds) (1990) Consuming
Modernism, etc. However, as I mentioned much public services, London: Routledge.
earlier, the advantage of such terms is that they DHSS Social Services Inspectorate (1988) Decentralis-
signify some degree of certainty about what has ation of Social Services Departments, Nos 1-5.
passed whilst being agnostic about what exactly Edwards R. (1979) Contested terrain, New York: Basic
will take its place. Books.
Efficiency Unit (1988) Improving management in
It cou Id be objected that so long as the pu bl ic sector government: the next steps, London: HMSO.
is about the rationing of scarce resources within a Fayol, H. (1916) Administration Industrielle et Generale,
fra mework of democrati c acco unta bi Iity th en some Bulletin de la Societe de I'Industrie Minerale, English
degree of bureaucracy will always be necessary. I translation, General and Industrial Management,
would not dispute this point. The key issue how- London: Pitman, 1971.
ever is not whether some degree of bureaucracy Fudge, C. and Gustafsson, L. (1989) 'Administrative
is necessary but whether bureaucratic principles reform and public management in Sweden and the
UK', Public Money and Management, 9.2, 29-34.
constitute the essential mode of organisational
Ham, C. and Hill, M. (1984) The policy process in the
control within a given sector. My hypothesis is that
modern capitalist state, Brighton: Wheatsheaf.
even within the public sector an essentially new Hambleton, R.and Hoggett, P. (eds) (1984) The politics
managerial paradigm is now emerging. of decentralisation: theory and practice of a radical
local government initiative, SAUS Working Paper46,
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