Relevance of Modern Management Principles for Government Organizations

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Relevance of Modern Management Principles for Government Organizations

TARUN SHARMA PGP02.120IIM Rohtak


Looking Back

• Organized endeavors directing people for planning, organizing, executing, leading, monitoring and controlling activities have existed since the beginning of the civilization. (Pyramids, Monuments, Mythology)

• It has been only during the last century that this subject has undergone systematic investigation, acquired a common body of knowledge and has become a formal discipline

• It has been the fastest growing discipline both in content and application over the last 50 years

Tarun Sharma, IIM Rohtak


The run up to the formal theory. Literature review

• Sun Tzu the Chinese General (6tn century BC) in his “The Art of War” recommends that the success can be achieved by being aware of utilizing the organizations strength to exploit the weakness of rival the enemy. (Coordinated group effort)

• Chanakya’s Arthashastra (3rd century BC) It lays down the principles that should be taken into consideration by the leader while formulating public policies

• Machiavelli (Discourses 1513) written for the leadership of Florence, recommended that the ends justifies means and that a leader should use fear, not hatred, to maintain control

• Adam Smith (The wealth of nations -1776). Economic advantages organizations would gain by division of laborTarun Sharma, IIM Rohtak


The run up to the formal theory. Literature review• The Industrial Revolution and the mechanization of the process

(large volume outturn)• No government control supported the development of large

corporations (J. Rockefeller- oil, Andrew Carnegie steel)• Around World War II, H. Dodge, Ronald Fisher and Thornton C.

Fry introduced mathematical and statistical techniques to give it a scientific basis

• Peter Drucker published “Concept of the Corporation” in 1946 describing different facets of business organization. He also developed the concept of MBO in 1950 as a comprehensive system based approach to accomplish the organizational objectives



Objectives of Government

• preserve public trust

• enhance economy, efficiency, and effectiveness

• ensure transparency and accountability

The Government’s role is primarily based on utilitarian philosophy of greatest good for the greatest number of people



Why Modern Management?

• Top-performing companies recognize the importance of the way they treat their work forces

• These companies use ideas such as employee satisfaction, selective recruiting, performance based high wages , reduction of status differences, sharing information, self-managed teams, and training and skill development

• Investing in people will create long-lasting competitive advantages that are difficult for other companies to duplicate

• Sound management practices can produce substantial advantages in sales, revenues, and customer satisfaction

• Poorly performing companies that adopted management techniques as simple as setting expectations, coaching, and rewarding were able to substantially improve return on investment



Government Organizations

• Centralization versus Decentralization– Where is the locus of control?– How many layers in the organization?

• Checks and Bounds: Corporate Governance– Levels of Management Control?– Transparency, external influences?

• Political, Economical, Social, Technical, Environmental, Legal implications and influences?



Examples of Modern Management Practices

• Stability of Tenure for the employees has to be ensured but not guaranteed

• Initiative, innovation, collaboration

• Principles essentially have no minimum standard of practice and can rise over time

As organizations and their environments change, the government organizations must become flexible and adapt to future opportunities and threats by improving processes

and practices with the correct set of people



Thank You!!!


Relevance of Modern Management Principles for Government Organizations

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