Public Policy and Management: Perspectives and Issues
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1 Public Policy and Management: Perspectives and Issues product: 4386 course code: c300
2 Public Policy and Management: Perspectives and Issues Centre for Financial and Management Studies, SOAS University of London First Edition 2003, revised 2007, 2008, 2009, 2010, 2011, 2014, 2015 All rights reserved. No part of this course material may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, including photocopying and recording, or in information storage or retrieval systems, without written permission from the Centre for Financial & Management Studies, SOAS University of London.
3 Public Policy and Management: Perspectives and Issues Introduction and Overview Contents 1 Course Objectives 2 2 The Course Author 2 3 An Overview of the Course 2 4 Learning Outcomes 4 5 Study Materials 4 6 Studying the Course 4 7 Assessment 5 Getting Started Author s Answers to the Warm-up Quiz References
4 Public Policy and Management: Perspectives and Issues 1 Course Objectives In this course you look at the state and how it is managed. This is a huge agenda and brings in ideas from political science, from history, sociology and management science. The purposes are these: to survey the principles and practice of public management using a historical and comparative perspective to introduce a range of ideas that have emerged about how to manage the public sector to demonstrate the importance of context in understanding management and changing management practices. to raise some issues about the nature of the policy process in different contexts to set out some of the main debates in the field in order to help you to make your own judgements. 2 The Course Author Norman Flynn is Director of the Centre for Financial and Management Studies. He has previously been Chair Professor of Public Sector Management at City University of Hong Kong and has held academic posts at London School of Economics, London Business School and the University of Birmingham. He has written about public sector management in the United Kingdom, Europe and Asia and about the relationship between business government and society in Asia. Recent books include Public Sector Management; The Market and Social Policy in China (edited with Linda Wong); Miracle to Meltdown in Asia: Business, Government and Society, and (with Franz Strehl) Public Sector Management in Europe. Further publications are listed on his website: 3 An Overview of the Course The course consists of eight units of work, each with set readings, questions and exercises. There are additional readings available on the Online Study Centre. You also have the opportunity to discuss aspects the course with your fellow students through the OSC. The course structure Unit 1 The State, Public Policy and Management 1.1 What is Public Management? 1.2 What is the Public Sector? 1.3 What is Public Policy? 1.4 Summary: the Importance of Context in Managing Change 2 University of London
5 Introduction and Overview Unit 2 Understanding the State 2.1 Why Public Action? Market Failure as an Explanation? 2.2 Size and Functions 2.3 Economic Development and the State 2.4 States and Welfare 2.5 The State and Politics 2.6 Implications of Regime Type for Public Policy and Management Unit 3 Ideal Types 3.1 Introduction 3.2 The Classical Chinese Civil Service 3.3 Max Weber and Bureaucracy 3.4 'Progressive' Public Administration: Taking the Politics out of Management 3.5 The 'New Deal' 3.6 Post-Bureaucracy: Reinventing Government 3.7 'New Public Management' 3.8 After New Public Management Unit 4 Policy Analysis and Evaluation 4.1 Introduction 4.2 The Policy Process: 'Rational Model' and its Opponents 4.3 Institutions, Elites and Policy Networks 4.4 Policy in Practice: Case Study on China's Economic Reforms 4.5 Policy Evaluation 4.6 Summary and Review Unit 5 Policy and Management Dilemmas I 5.1 Markets, Hierarchies, Clans or Ntworks? 5.2 Public Choice or Public Spirit? 5.3 Summary and Review Unit 6 Policy and Management Dilemmas II 6.1 Managing Discretion: Centralisation and decentralisation 6.2 Managing Reforms: Big Bangs, Cultural Change and Reorganisation 6.3 Unit Review Questions Unit 7 Policy Transfer 7.1 A Theory of Policy Transfer: Institutional Form Centre for Financial and Management Studies 3
6 Public Policy and Management: Perspectives and Issues 7.2 Case study 1 the USA Occupation of Japan: The New Deal as Policy Transfer 7.3 Case Study 2 Public Sector Transformation in South Africa Unit 8 The Future of the State? 8.1 The End of the State? 8.2 Choices 8.3 End-of-Course Review Questions 4 Learning Outcomes When you have completed this course you should be able to discuss the variety of approaches to public policy and management in different parts of the world and periods analyse the elements of the social, economic, political and cultural contexts in which governments operate and the influence of these elements on approaches to management and policy explain how ideal types of government arrangements have influenced government policy advise on some of the major choices that governments have to make when making management arrangements evaluate the applicability of ideas about policy and management developed in one jurisdiction to another assess claims that the role and function of the state is everywhere in decline. 5 Study Materials In addition to the eight units of the course guide, you will be working mainly with the Course Reader. The pre-course reading for the whole of Public Policy and Management programmes is: Rod Hague and Martin Harrop (2013) Comparative Government and Politics An Introduction, Ninth Edition, Basingstoke UK: Palgrave Macmillan. The Course Reader consists of some of the classic articles in public management as well as a wide range of contemporary theoretical and empirical works on public policy and management in a range of settings. You will find that there is a variety of perspectives in the readings and you will need to use your judgment to come to your own conclusions about the debates. 6 Studying the Course When you work through the materials, there are various exercises, from the textbook or based on the readings, that are designed to consolidate your knowledge and skills. We recommend that you do the exercises, most of 4 University of London
7 Introduction and Overview which take half an hour or less, before you look at the model answers, where they are provided, at the end of the unit. You will be asked to submit your assignments and receive feedback through the Online Study Centre, and to ask questions of your tutor. The OSC will also be the main way that we will communicate with you about administrative matters. We would also encourage you to use the discussion area of the OSC to discuss issues with your fellow students. You will be prompted to do so occasionally as you progress through the course. 7 Assessment Your performance on each course is assessed through two written assignments and one examination. The assignments are written after week four and eight of the course session and the examination is written at a local examination centre in October. The assignment questions contain fairly detailed guidance about what is required. All assignment answers are limited to 2,500 words and are marked using marking guidelines. When you receive your grade it is accompanied by comments on your paper, including advice about how you might improve, and any clarifications about matters you may not have understood. These comments are designed to help you master the subject and to improve your skills as you progress through your programme. The written examinations are unseen (you will only see the paper in the exam centre) and written by hand, over a three hour period. We advise that you practise writing exams in these conditions as part of your examination preparation, as it is not something you would normally do. You are not allowed to take in books or notes to the exam room. This means that you need to revise thoroughly in preparation for each exam. This is especially important if you have completed the course in the early part of the year, or in a previous year. Preparing for assignments and exams There is good advice on preparing for assignments and exams and writing them in Sections 8.2 and 8.3 of Studying at a Distance by Talbot. We recommend that you follow this advice. The examinations you will sit are designed to evaluate your knowledge and skills in the subjects you have studied: they are not designed to trick you. If you have studied the course thoroughly, you will pass the exam. Understanding assessment questions Examination and assignment questions are set to test different knowledge and skills. Sometimes a question will contain more than one part, each part testing a different aspect of your skills and knowledge. You need to spot the key words to know what is being asked of you. Here we categorise the types of things that are asked for in assignments and exams, and the words used. Centre for Financial and Management Studies 5
8 Public Policy and Management: Perspectives and Issues All the examples are from the Centre for Financial and Management Studies examination papers and assignment questions. Definitions Some questions mainly require you to show that you have learned some concepts, by setting out their precise meaning. Such questions are likely to be preliminary and be supplemented by more analytical questions. Generally Pass marks are awarded if the answer only contains definitions. They will contain words such as: Describe Define Examine Distinguish between Compare Contrast Write notes on Outline What is meant by List Reasoning Other questions are designed to test your reasoning, by explaining cause and effect. Convincing explanations generally carry additional marks to basic definitions. They will include words such as: Interpret Explain What conditions influence What are the consequences of What are the implications of Judgment Others ask you to make a judgment, perhaps of a policy or of a course of action. They will include words like: Evaluate Critically examine Assess Do you agree that To what extent does Calculation Sometimes, you are asked to make a calculation, using a specified technique, where the question begins: Use indifference curve analysis to Using any economic model you know Calculate the standard deviation Test whether It is most likely that questions that ask you to make a calculation will also ask for an application of the result, or an interpretation. Advice Other questions ask you to provide advice in a particular situation. This applies to law questions and to policy papers where advice is asked in relation to a policy problem. Your advice should be based on relevant law, principles, evidence of what actions are likely to be effective. Advise Provide advice on Explain how you would advise Critique 6 University of London
9 Introduction and Overview In many cases the question will include the word critically. This means that you are expected to look at the question from at least two points of view, offering a critique of each view and your judgment. You are expected to be critical of what you have read. The questions may begin Critically analyse Critically consider Critically assess Critically discuss the argument that Examine by argument Questions that begin with discuss are similar they ask you to examine by argument, to debate and give reasons for and against a variety of options, for example Discuss the advantages and disadvantages of Discuss this statement Discuss the view that Discuss the arguments and debates concerning The grading scheme Details of the general definitions of what is expected in order to obtain a particular grade are shown below. Remember: examiners will take account of the fact that examination conditions are less conducive to polished work than the conditions in which you write your assignments. These criteria are used in grading all assignments and examinations. Note that as the criteria of each grade rises, it accumulates the elements of the grade below. Assignments awarded better marks will therefore have become comprehensive in both their depth of core skills and advanced skills. 70% and above: Distinction as for the (60-69%) below plus: shows clear evidence of wide and relevant reading and an engagement with the conceptual issues develops a sophisticated and intelligent argument shows a rigorous use and a sophisticated understanding of relevant source materials, balancing appropriately between factual detail and key theoretical issues. Materials are evaluated directly and their assumptions and arguments challenged and/or appraised shows original thinking and a willingness to take risks 60-69%: Merit as for the (50-59%) below plus: shows strong evidence of critical insight and critical thinking shows a detailed understanding of the major factual and/or theoretical issues and directly engages with the relevant literature on the topic develops a focussed and clear argument and articulates clearly and convincingly a sustained train of logical thought shows clear evidence of planning and appropriate choice of sources and methodology 50-59%: Pass below Merit (50% = pass mark) shows a reasonable understanding of the major factual and/or theoretical issues involved shows evidence of planning and selection from appropriate sources, Centre for Financial and Management Studies 7
10 Public Policy and Management: Perspectives and Issues demonstrates some knowledge of the literature the text shows, in places, examples of a clear train of thought or argument the text is introduced and concludes appropriately 45-49%: Marginal Failure shows some awareness and understanding of the factual or theoretical issues, but with little development misunderstandings are evident shows some evidence of planning, although irrelevant/unrelated material or arguments are included 0-44%: Clear Failure fails to answer the question or to develop an argument that relates to the question set does not engage with the relevant literature or demonstrate a knowledge of the key issues contains clear conceptual or factual errors or misunderstandings Specimen exam papers [approved by Faculty Learning and Teaching Committee November 2006] Your final examination will be very similar to the Specimen Exam Paper that you received in your course materials. It will have the same structure and style and the range of question will be comparable. We do not provide past papers or model answers to papers. Our courses are continuously updated and past papers will not be a reliable guide to current and future examinations. The specimen exam paper is designed to be relevant to reflect the exam that will be set on the current edition of the course. Further information The OSC will have documentation and information on each year s examination registration and administration process. If you still have questions, both academics and administrators are available to answer queries. The Regulations are also available at, setting out the rules by which exams are governed. 8 University of London
11 Introduction and Overview UNIVERSITY OF LONDON Centre for Financial and Management Studies MSc Examination Postgraduate Diploma Examination for External Students 91DFMC300 PUBLIC POLICY AND MANAGEMENT PUBLIC MANAGEMENT POLICY STUDIES Public Policy & Management: Perspectives & Issues Specimen Examination This is a specimen examination paper designed to show you the type of examination you will have at the end of the year for Public Policy & Management: Perspectives & Issues. The number of questions and the structure of the examination will be the same but the wording and the requirements of each question will be different. Best wishes for success on your final examination. The examination must be completed in THREE hours. Answer THREE questions. The examiners give equal weight to each question; therefore, you are advised to distribute your time approximately equally between three questions. Please do not remove this Paper from the Examination Room. It must be attached to your answer book at the end of the examination. University of London, 2014 PLEASE TURN OVER Centre for Financial and Management Studies 9
12 Public Policy and Management: Perspectives and Issues Answer THREE questions. 1 democracy in the form of multiparty elections was generally seen by African rulers as the price to pay for continued financial assistance rather than as the political modality that would make development more likely the effect of the transitions that took place was to constrain elites in that they now had to undergo the ritual of competitive elections, but not necessarily to lead to the construction of a political system that delivered greater satisfaction to the bulk of the population. (Patrick Chabal, 2002) What is the likelihood of policies adopted under pressure turning into empty rituals while the real policy continues as before? 2 Ideal types of organisation can be constructed from sets of principles about how they should be run. What are the main reasons for reality to be different from an ideal type? 3 It has been an ambition of the Public Administration tradition in the United States of America to separate public policy and politics from public administration and management. Why did that ambition develop and what are the factors for and against the ambition s realisation? 4 Under what conditions would it be best to deliver public services through: a) contracting with the private sector, and b) providing services through directly employed staff? 5 self-seeking is not the only human motivation even in the private domain of the market and people do not operate with the same degree of selfishness in the public domain as in the private domain. Once this assumption of pure self-seeking is dropped, the anti-statist conclusions of neo-liberalism need to be seriously modified, as the moral views and social norms held by individuals may restrain the extent to which they advance their interests by finding ways to distort market outcomes through political means (Ha-Joon Chang, 2002) To what extent is New Public Management based on neoliberalism and to what extent would it need to be modified if the assumptions of neo-liberalism about human motivation were shown to be false? 6. Power is said to be moving away from national government upwards to multi-national companies and organisations and downwards to sub national governments. Which powers are likely to persist at national government level? 10 University of London
13 Introduction and Overview 7 Why do governments adopt policies that were first invented somewhere else? 8 What are the main features of a policy evaluation for a newly introduced policy? Illustrate your answer with a particular new policy. [END OF EXAMINATION] Centre for Financial and Management Studies 11
14 Public Policy and Management: Perspectives and Issues Getting Started Let us start with a warm-up exercise, to focus your thoughts on the subject matter of this course. Please take a few minutes to answer the following questions. There are some answers at the end of this introduction. By the end of the course, you should be able to answer all of the questions easily. Warm-up Quiz Questions 1 State school education is free for pupils in the USA: True / False 2 State school education is free for pupils in China: True / False 3 Governments should only act when the market fails: Agree/ Disagree 4 Eventually every country in the world will be a liberal democracy: Agree / Disagree 5 Total government expenditure as a % of GDP (in 2004): which of the three figures is correct for each country? a) Netherlands 22% 35% 47% b) United States of America 20% 36% 50% c) New Zealand 20% 32% 39% d) Korea 25% 34% 45% e) Ethiopia (2001) 15% 30% 40% 6 Principal agent theory is: a) about the problem agents have sticking to their principles b) about the problem employers have controlling employees c) about the problem governments have controlling contractors. 7. Public choice theory a) concerns letting the public have more choice b) is about the motivation of public servants c) assumes that all employees maximise their own welfare. 8 Policy-making and management are two separate things and should be done by different people: Agree/disagree 9 National culture is an important influence on the appropriate management style to use in a nation s public sector. Management is a purely technical matter and what works in one context can work just as well in any other. Which of these statements do you agree with? 10 In the 1980s and 1990s New Zealand led the world in public sector reform and has stuck to its principles and practices. Agree/disagree 11 Structural adjustment programmes have been: a) an attempt to develop the infrastructure of developing countries 12 University of London
15 Introduction and Overview b) a necessary set of measures to bring fiscal health to countries with government deficits c) the imposition of a set of unnecessary cuts in public services. 12 New Public Management is a) a coherent set of ideas that will eventually transform public management b) an artificial phrase invented by academics to describe a diverse range of management reforms c) a set of reforms from the era in which some governments thought that markets were the solution to all the problems of the public sector. Now look at the answers and the comments on them, which follow. Centre for Financial and Management Studies 13
16 Public Policy and Management: Perspectives and Issues Author s Answers to the Warm-up Quiz 1 True. 2 False (the answers to 1 and 2 sometimes surprise people when they know that China is a communist state and the USA champions individualism, the market and free enterprise). 3 You may change your mind about your answer when you have completed this course. Yes would be the answer in most standard texts, especially those produced in the Public Administration tradition in North America. 4 There has been a tendency both to expect and to wish that Yes is correct and desirable. Aid and loan agencies in poor countries have behaved in this way. As with the answer to 4, you may change your mind about this as you do the course. 5 Netherlands 47% United States of America 36% New Zealand 39% Korea 25% Ethiopia 30% While the data for this answer are not wholly comparable, it is the case that there are wide variations in how much of national production goes into public services and welfare payments. Europe is generally on the high end of the scale, and Africa the lowest. Netherlands is usually among the highest. 6 b and c are both right: principal agent theory is an important underpinning of public management, whether management of employees or of contractors. If you understand the theory and its application, you will have a better idea about how to manage. 7 b and c are both correct. The theory is behind many recent reforms and assumes that people have no intrinsic motivation to do good things, only to look after their own interests. You need to have a position on this theory before you can design and run pay and other incentive systems. 8 That they are separate is a fundamental belief of the scientific school of management. The school has its opponents among those who believe that public management is inherently political and that it is naïve to try to separate them. This is another matter on which you may change your mind when you have studied the course. 9 In my view, national cultures have a profound influence on the way people relate to each other at the workplace. One of the reasons that management systems do not travel is that the managers who try to use one system in another context do not understand this, and they get frustrated because the people in the place to which the methods are imported resist them. 10 New Zealand did probably lead the world in public sector reform but has now changed many of its principles: the most important, and one you will spend some time on in this course, is that the government has abandoned the idea of the internal market in its healthcare system. 14 University of London
17 Introduction and Overview 11 b and c may both be true, depending on your point of view. The question is important for managers, because many of the reforms of management of the last years have been attempted while structural adjustment programmes, including pay cuts and job cuts for civil servants, were carried through. 12 Any of these statements might be true, depending on your point of view. Also, New Public Management may have been and may still be a slogan used by those promoting change. When you have finished this course you will have an opinion about ideal types offered by people claiming to have all the answers to public management problems. References Flynn, Norman (2007) Public Sector Management, Fifth edition, London: Sage. (2000) The Market and Social Policy in China (edited with Linda Wong), Basingstoke UK: Palgrave. (1999) Miracle to Meltdown in Asia: Business, Government and Society, Oxford: Oxford University Press 1999 (and Chinese translation, Hong Kong: Oxford University Press 2000). (1996) (with Franz Strehl) Public Sector Management in Europe, London: Harvester-Wheatsheaf Hague Rod and Martin Harrop (2013) Comparative Government and Politics An Introduction, Ninth Edition, Basingstoke UK: Palgrave Macmillan Centre for Financial and Management Studies 15
18 Public Policy and Management: Perspectives and Issues 16 University of London
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