Public_finance_Chapter-2 daFL uiwEJHFEHJJJJJ

ORIGIN AND
DEVELOPMEN
T OF
PUBLIC
ADMINISTRATIO
N
P R E S E N T E D B Y : O R N E L A S &
T O M A L E
SAINT MARY’S COLLEGE OF CATBALOGAN

A CALL FOR PUBLIC
ADMINISTRATION
Public administration has existed since ancient times, dating back to civilizations like
Greece and Mesopotamia. It has always played a key role in organizing society to serve
the public good. According to Caiden, public administration should be seen not just as
managing the public, but as serving the public — a concept seen in early codes and
philosophies like Hammurabi’s Code, Confucianism, and Pericles' speeches.
Historically, in monarchies, public administration was divided into two parts: managing
state affairs (like justice, finance, and military training) and providing public services.
This structure was evident as early as the 17th and 18th centuries, especially in places
like Prussia.
In the 18th century, F.K. Nedikus promoted the idea that public administration (called
“cameralism” then) should be its own important field of study to train future
government workers. While cameralism was eventually replaced by administrative law,
it was influential in shaping modern public administration.

PUBLIC ADMINISTRATION AS A
DISCIPLINE
PUBLIC ADMINISTRATION AS A
DISCIPLINE CAN BE DIVIDED INTO
TWO MAJOR PERIODS:
1.Classical period (Traditional
PA): from the late 1800s to
the 1950s
2.Modern period (Modern
Public Administration):
from the 1950s up to the
present day
1.Development Administration (DA) –
1950s to 1960s
2.New Public Administration (NPA) –
Toward 1970s
3.New Public Management (NPM) –
1980s to 1990s
4.Reinventing Government (RG) –
1990s
5.Public Administration as a
Governance (PAG) – Toward 2000s
THE MODERN-DAY PERIOD CAN
BE FURTHER DIVIDED INTO SUB-
PERIODS, WHICH ARE:

DISCIPLINED APPROACH
PERIOD OF DEVELOPMENT
THRUST OF PUBLIC
ADMINISTRATION IN THE NEW
WORLD
We follow a disciplined investment process rooted in
thorough research, risk management, and continuous
monitoring to optimize performance.
I. DEVELOPMENT
ADMINISTRATION
(DA): 1950S TO 1960S
II. NEW PUBLIC
ADMINISTRATION (NPA):
TOWARD 1970S
III. NEW PUBLIC
MANAGEMENT (NPM):
1980S TO 1990S
IV.REINVENTING/
REENGINEERING
GOVERNMENT (RG): 1990S
V. PUBLIC ADMINISTRATION
AS A GOVERNANCE (PAG):
TOWARD 2000S
Figure 5. Period of Development Thrust of Public Administration
in the New World

The political discourse on public administration would not be possible had it not been to Woodrow
Wilson's classic essay, The Study of Administration. Wilson, a pioneer of the study of Public
Administration, set the tone of the role of government and the administration in the civil society, and
the improvement they should separately adapt for successful operation.
To Wilson, there should be distinct and separate sphere between politics and administration, an adage
of dichotomy. This separation is believed to bring about solvency in the inefficiency and ineffectiveness
of government organization or simply government mismanagement.
Meanwhile, Woodrow Wilson later became the 28th President of the United States.
Wilson noted in his classic essay:
"It is the object of administrative study to discover, firstly, what the government can properly and
successfully do; and secondly, how it can do proper things with the utmost possible efficiency and at
the least possible cost either of money or of energy."
He propounded four theses of administration as embodied in the essay, to wit:
1.The distinction and separation of politics and administration
2.The marked difference between public organizations and private entities
3. Stressing the goal of efficiency by emphasizing on business attitudes in the workplace, and
4. Anchoring effective delivery of public services by professional civil servan chosen on the basis of
merits.
WOODROW WILSON
MOVEMENT

Wilson clearly espoused the public administrators’ ethos, which are efficiency, effectiveness, and economy. These cultures
are known to be the traditional Es. Recruitment in the civil service is anchored on merits and fitness as a result of the
spoils system. Therefore, the question of organizational inefficiency rests on the spoils system. In earlier governments in
the conduct of administration, characterized by red tape or general distaste. The spoils system is a term derived from the
phrase “to the victor belongs the spoils.” Spoils meant that successful candidates, including newly elected presidents,
were expected to distribute government jobs to those who have taken the trouble of supporting their campaigns. The
spoils system continued at least until 1883 when the Pendleton Act created a civil service commission to employ and
control government employees. This Act shunned politics of patronage and introduced merits and fitness, a subtle way of
bureaucratic cleansing.
Woodrow Wilson viewed public administration as a distinct, politics-free discipline focused on
efficiency and technical execution, separate from the broader and more value-driven field of politics.
He argued that politics sets the goals, while administration carries them out in a practical, non-political
manner.
Alongside Frank Goodnow, Wilson emphasized that in a democratic society, political (policymaking)
leaders must control administrative (implementation) officials to maintain accountability. They
established a clear division: political leaders make policy, while administrators merely implement it,
never initiating policy themselves.
SPOILS SYSTEM
POLITICS AND ADMINISTRATION DICHOTOMY

The separation of politics and administration has been for decades a good topic of debates. This
dichotomy of Wilson, however, was challenged in the 1940s and gained momentum from the second-
generation scholars up to the present day by arguing that politics and administration cannot be
separated but they are mutually reinforcing. In the language of Lazo (2009):
POLITICS AND ADMINISTRATION MARRIAGE/NEXUS
The distinction made by Goodnow and Wilson, which is the dichotomy of politics and administration may not
all be acceptable today to present governments because nowadays, according to political scientists,
administrative officials do make policy decisions with some regulatory guidelines set forth by the Presidents to
the legislative bodies. Most of these policy decisions are anchored on the administrators’ expertise in their
fields which, because of their highly specialized government today, politicians may not always have that kind of
expertise. Bureaucracy, to work effectively, should consider the meeting or the workable nexus between
politics and administration, or between political leaders and administrators. (p. 213)
But Wilson stressed that politics and administration are separate as politics is the expression of the will of the
state, and administration is the execution of that will. This politics and administration dichotomy was later
examined by Frank Goodnow, Father of American Public Administration, in his book Politics and Administration
(1900). To Goodnow, modern administration presented a number of dilemmas involving political and
administrative functions that had now supplanted the traditional concern with the separation of powers
among the branches of government.

The Industrial Revolution began in Great Britain in the late 18th to early 19th
century, bringing major changes in agriculture, manufacturing, transport, and
mining. These changes deeply affected society and culture, eventually spreading
across Europe, North America, and the world, impacting nearly every part of
people's lives.
The Revolution marked the shift to using machines in production, leading to
urbanization, better working conditions, and higher living standards. It also
influenced government structures and operations.
During this time, management (in businesses) and bureaucracy (in government)
developed, each with different work relationships, but both aimed to improve
efficiency. Management theories helped shape how organizations operated.
Public Administration, which comes from Political Science, developed later and
was less established than Business Management.
EMERGENCE OF THE INDUSTRIAL REVOLUTION

While there are thoughts that are inherently in the sphere of Public Administration, many theories of PA have evolved, or are borrowed
from management thoughts. The classical period considered the society or the environment as somewhat stable, predictable, and
orderly. Hence, proponents of traditional public administration believed in the primacy of organizational values that a man in the
business is treated as a mechanical worker who followed bureaucratic order standardized by the management for maximum efficiency
and increased industrial outputs.
Discussed below are some classical proponents of management theories, from where many PA theories have later evolved, which
centered on a mechanical approach in dealing with the industrial capacity of a state.
CLASSICAL PROPONENTS OF PUBLIC ADMINISTRATION
ECONOMY
EFFICIENCY
EFFECTIVENESS
Figure 6. Traditional Goals of Management Organization
and Public Administration

The early proponent of management thought is Frederick W. Taylor who was
considered the Father of Scientific Management. He wrote the Principles of
Management in 1911. In the study, he pioneered the development of time and
motion studies. He premised on the notion “one best way” in accomplishing a task.
Classical organizational theory has evolved from this premise of Taylor. He argued
that scientific management sought to increase output by discovering the fastest and
most efficient way of producing goods. The job of a scientific manager is to search
for the best method and impose the same among all workers. Under this movement,
public administration became increasingly concerned with understanding
bureaucratic forms of organizations. Thereupon, critical concerns of scholars and
practitioners of public administration contented on following the Taylorian principles,
namely:
FREDERICK
TAYLOR
1. Division of labor
2 Span of control;
3. Organizational hierarchy and chain of command;
4. Reporting systems;
5. Departmentalization; and Development of standard operating rules, policies,
and procedures

Few years after Frederick Taylor came Henry Fayol who, in 1916, published the
book, Administration Industrielle et Generale, which focused on the general
theory of management. He has proposed important primary functions of
management, some of which are planning, organizing, commanding,
coordinating, and controlling.
In 1926, Leonard White wrote a groundbreaking book, Introduction to the Study
of Public Administration, the first ever text in this field. He noted four critical
assumptions that shaped the framework for the study of Public Administration,
which are:
1.Administration is a unitary process that can be studied uniformly both in
central–national and regional–local levels.
2.The basis for the study of Public Administration is management, and not
laws.
3.Administration is still an art but it can also be transformed into science.
4.The recognition that administration has become and will continue to be the
heart of the problems of modern governments.
HENRY FAYOL AND LEONARD
WHITE

MARY PARKER
FOLLET
Meanwhile, another early scholar of Public Administration is William F. Willoughby. He believed
that Public Administration has universal aspects that were applicable to all branches of
governments. Willoughby’s writings in 1918 outlined developments that were leading to the
creation of a modern budget system or budget reformation. Among his thrusts are the following
ideas:
1.How budgets would advance and provide for popular control.
2.How budgets would enhance legislative and executive cooperation.
3.How budgets would ensure administrative and management efficiency.
Willoughby discussed budgetary reforms in the US as the basis to promote effective democracy,
also as the basis for consolidating legislative and executive actions and as the basis for
administrative efficiency and economy.
An additional classical thought emerged in 1926 when Mary Parker Follet, a leading scholar on
management theory and behavior, argued on the following organizational theses, which are:
1.Lateral processes within hierarchical organizations which led to the matrix style organization;
2.The importance of informal processes within organizations; and
3.The idea on the authority of expertise.
Follet likewise argued on “situational leadership” that the job of the leader is not how to get people to obey
orders but how to devise a method by which he will discover that the order is an integral part of the
situation. Follet’s proposal for participatory management and the “law of situation” can be attributed to the
concept of contingency management. She illustrated the advantages of participatory management in her
article, The Giving of Orders.
WILLIAM
WILLOUGHBY

WHAT TYPES OF FINANCIAL SERVICES DO YOU OFFER?
This period was considered a humanist in approach. Man as a worker is regarded
the center of the organization, which in order to attain organizational objectives,
management environment should favor the need of an individual worker. One
proponent is Herbert Simon. He coined the terms bounded rationality and
"satisficing," and was the first to analyze the archi-tecture of complexity and to
propose a preferential attachment mechanism to explain power law distributions.
Simon introduced the famous decision-making that "satis fices." He argued that
managers should find decisions or solutions that would "satis-fice" the situation. He
is known for the concept of bounded rationality and his model of adıninistrative
man who maximizes.
NEOCLASSICAL PROPONENTS OF PUBLIC ADMINISTRATION
As modern organizations developed, some management techniques, innova. tions,
and functions have been the significant factors in their expansion and progress.
Likewise, management thought has been the focal point in the emergence and
growth of organization. To a large extent, modern organizations are so structured
and managed within the context of current practices of organizational thoughts.
HERBERT SIMON AND ELTON MAYO

Elton Mayo, for one, conducted case studies in group dynamics of workers with the
premise: "How is work efficiency achieved?" Certain ways and motivational drives
were anchored on the groups, and were evaluated as to how they responded to
given stimulus while at the same time achieving the organizational ends. Mayo
conducted Hawthorne's experiments on the theory of individuals within an
organization which propelled the human relations school of management thought.
Chester
CHESTER BARNARD
In 1938, Chester Barnard presented a more comprehensive theory of organizational
behavior where he wrote the functions of the executives. He argued that for the
executive to become more effective, he should maintain equilibrium between the
needs of the err.ployees and the organization.
CHESTER BERNARD
ABRAHAM MASLOW
Maslow (1943), focused on the hierarchical needs of the individuals. His "Theory of
Human Motivation," states that human being has five sets of needs: psychological,
safety, love and affiliation, esteem, and ultimately, self-actualization.

CHESTER BARNARD
In 1937, Luther Gulick and Lyndall Urwick edited, as what was purportedly
considered as a state of the art organizational theory, "A Collection: Papers on the
Science of Administration." It was here that Gulick introduced his famous acronym
POSDCORB, which stands for the duties of the administrators. It stands for Planning
Organizing Staffing, Directing, Coordinating, Reporting, and Budgeting. However, in
the article of Brillantes et al., (2008) by adapting Stillman's words in 1991, it was
stated.
The reasoning of the science of administration was largely borrowed from Fayol's
fourteen principles of organization. POSDCORB, however, was seen as less
influential in part of American government. Thereafter, Simon, Waldo and Appirby
attack the idea of POSDCORB.
LUTHER GULICK AND LYNDAL URWICK
His concepts were later explored and developed into more comprehensive theories
and principles as advocated by other researchers in organizational behavior and
management such as Herzberg's "Motivation-Hygiene Theory," McGregor's "Theory
X and Theory Y." Argyris's "Personality versus Organization" and Likert's "System's 1
to 4." among others. (Shafritz and Hyde, 1997 in Brillantes et al., 2008:4)
LUTHER GULICK
LYNDALL URWICK

FREDRICK HERZBERG
Simon in his book, "Administrative Behavior, created a distinction between theoretical and practical science. He introduced more
common principles in literature of administration, which highlighted administrative efficiency and specialization (Simon, 1946 as
cited in Shafritz and Hyde: Stillman, 1991). On the other hand, in 1945, Appleby led a postwar attack on the concept of politics and
administration dichotomy by drafting a convincing case that "public administration was not something apart from politics" but
rather at the "center of political life."
Herzberg in 1959 published the book, The Motivation to Work. He studied and
published the book to determine which factors in an employee's workplace caused
satisfaction or dissatisfaction. The box below represents Herzberg's theory-factors
affecting job attitudes.

DOUGLAS MCGREGOR
Consequently, Herzberg found the factors causing job satisfaction were different from that causing job dissatisfaction. The motivation
theory called for self-drive while hygiene theory suggested the necessity to work. Thus, he developed the motivation-hygiene theory to
explain these results. He called the satisfiers as motivators and the dissatisfiers as hygiene factors, using the term "hygiene" in the
sense that they are con-sidered maintenance factors that are necessary to avoid dissatisfaction but that by themselves do not provide
satisfaction
Managers who tend to assume Theory X (authoritative direct control) generally get poor results as
workers are dissatisfied to work, and so organizational managers coerce people to work; while
managers who apply Theory Y (integrative self-control) produce better performance and results as
workers are satisfied to work because of self-motivation which then allows people and employees
to develop prohress.
MAX WEBWER
Max Weber (1946), Father of German Sociology, provided reference framework in evaluating both
the good and bad effects of bureaucratic organizations. Weber conceived of bureaucracy as a
structured hierarchy in which salaried officials reached rational decisions by applying explicit rules
to the facts before thera. For him, bureaucracy is an ideal type characterized by hierarchy, division
of labor, formally written rules and procedures, impersonality and neutrality. Weber's central claim
was that the bureaucracy made administration more efficient and rational; he believed that it was
the means by which modern industrial efficiency could be brought to bear in civil affairs.

DOUGLAS MCGREGOR
THE PROPONENT ADVANCED FIVE POINTS DISAPPROVAL ON WEBERIAN ORGANIZATION
1. An ideal organization is completely bureaucratized administration that is unshattered.
2. The fully developed Weberian bureaucracy seems to refer only to the apparatus than its members
3.The rationalization in the administration should be matched with the interest of national consensus.
4. Democracy is opposed to the rule of bureaucracy.
5. Bureaucracy as an administrative device for using specialized skills.
For Weber, the ideal bureau was a fine piece of administrative machinery. But like many modern devices, bureaucracy brought
the risks of dominating its supposed masters. Weber's contribution was therefore, to pose a question of relationship between
bureaucracy and democracy, an issue that agitated much about bureaucracy in the 20th century politics. In the Philippines,
Weberian model of bureaucracy did not escape criticism from the academe, as well as from the arrays of government
stakeholders. Corpuz (1993) in the article, "Theoretical Limitations of Max Weber's Systematic Analysis of Bureaucracy,"
Further, this strict bureaucratic model in later decades was viewed to have precipitated bureaucratic politics. Over time, many
theorists have predicted that this bureaucracy, if unrestrained, will work mainly for its own interests. Such interests may be its
well-being as an institution or the advancement of its membership, mainly those keeping office in highest levels.
Bureaucratic patronage would then become, at least in the Philippines, which in the words of Cariño (1993), as "the process by
which the bureaucracy-and its mem-bers exercise power, in their own behalf or that of their masters. A politicized bureaucracy
may, for instance, severely limit policy choices of its superiors to ensure that certain clients are favored, engaged in corruption,
given private interests precedence over the general welfare-generally unwholesome uses of bureaucratic base power.

In 1948, Dwight Waldo wrote "Administrative State: A Study of the Political Theory of American Public
Administration." As a populist, Waldo was continually concerned about democratic values and the norms of
public administration. Waldo's overall perspective held that public administration was a "subject of Political
Science that the long standing art of public administration would have to be fused with the newly emerging
science of public administration." He was an American political scientist and perhaps the defining figure
towards modern public administration. Wal-do's career was often directed against a scientific/technical
portrayal of bureaucracy and government that now suggests the term public management as opposed to
public administration. He is recognized all over the world for his contributions to the theory of bureaucratic
government. Waldo is only now taking his place as one of the most important political scientists of the last
100 years.
DWIGHT WALDO
HARMONIZING THE GOALS OF POLITICS AND DEMOCRACY
Initially students and advocates of Public Administration were so concerned with liberating administrative
processes from the undue political interference, then prevalent political interference as they assumed that a
sharp distinction could be drawn between politics (policy formulation) and adıninistration (policy execution).
They also tended to exaggerate the differences between the two areas. Today, there is a general agreement
that these processes are not and cannot be carried on in partition, but are really two phases of the single and
complex process of government.

EMERGING CHALLENGES
After World War II, Public Administration has evolved into a modern bureau-cratic state but the principles of management, particularly
that of Taylor's scientific management, proven rather futile given the size and complexity of modern governments. management,
proven rather futile given the size and complexity of modern governments. Thus, new challenges for more effective public
administration thrust have emerged. In the lecture of Prof. Kartasasmita (2006) entitled "The Theory of Public Administration" said:
The existing view is that major public policies in a democracy must be the product of the give and take of politics and politicians,
and that not only the administration but a multiple of secondary policy decisions should be entrusted to them expert administrators
chosen for competence not on the basis of their political affiliation. Not only should such administrators be as free as possible from
political pressures, but they should be invested with both power and responsibility for the performance of the tasks assigned to
them.
The firmly established established rule of public administration is that the increasingly important executive branch of government
must be integrated and organized in such a way that the chief executive appoints, controls, and removes all his department chiefs
or bureau heads wherever apumstances warrant them, instead of having such off-cials popularly elected. This is the core value of
the local level plan of city government. for example. This is consequently compatible with democracy, which does not require the
direct election of minor administrative officers or leaders.

“cratic organizations and the political dimensions of the new administrative state. The new deal and
WWII Keynesian economic theory were significant influences on the theory and practice of public
administration. While those wars against depres sion and oppression were primarily economic and
military operations, there were also immense managerial undertakings. The experience of those years
called into question much of what was then the conventional wisdom of public administration The politic
and administration dichotomy of the reform movement lost its viability amid the new deal and the war
effort. It was simply not possible to take value-free processes of business and apply them to government.
Government, in spite of the best efforts of many reformers, was not a business and was not value-free.
During this period, public administration had returned to the field of Political Science.”
In the lecture of Prof. Kartasasmita (2006) entitled "The Theory of Public Administration" said:
In the past, an ordinary citizen may have thought of public administration merely as the responsibility of the people behind the workings
of the government. They may have likewise viewed it as a mechanism of management, focusing mainly on government regulations of
individual or group conduct. This perspective often overlooks the vast and varied forms of protection, assistance, and service provision
which are chiefly what a government provides.
Public administration can be categorized—though not limited—to the following:
1.Protection of society as a whole
– Examples include national defense, police services, health care providers, among others.

2. Promotional activities or assistance to particular economic and social groups
–For example: farmers, businessmen, the unemployed, the sick, and the disabled
3. Proprietary Functions
– Instances where the government owns and operates enterprises serving the public
4. Regulation of particular activities or businesses
– Such as granting business permits, professional licenses, and similar responsibilities.
OLD PUBLIC ADMINISTRATION ( CLASSICAL PA)
The Old Public Administration, or Classical PA, developed from early management theories in response to the needs of emerging
industrialized societies and the growing role of the public sector.
Classical management theories in 19th-century Western and European societies focused on maximizing production efficiency. These
were originally applied to private businesses but later influenced public administration.
During this stage, public administration emphasized efficiency, effectiveness, and economy (the traditional Es) in managing
organizational structures and personnel to improve public service delivery.

OLD PUBLIC ADMINISTRATION ( CLASSICAL PA)
However, many classical theories treated workers as machine-like tools, meant to be trained and motivated only to keep the system
working.
As a distinct field from private administration, Classical PA followed the Weberian bureaucratic model, which emphasized rational
decisions through structural hierarchy and organizational values. Weber's model was seen as rational and effective but not necessarily a
part of administration itself.
Over time, this bureaucratic structure was criticized for being:
• Too rigid
• Linked to red tape and dissatisfaction
• Full of overlapping rules and regulations
• Lacking citizen capacity-building
• Having low civil service quality and accountability
It resulted in weak bureaucratic performance and poor results-based management.
Eventually, the long-term use of the Weberian model was seen as ineffective, reducing workers to mechanical beings unable to think for
themselves or meet their personal needs. These issues led to the evolution of Public Administration in the 1950s and the rise of Modern
Public Administration.

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