Article Hood

Introduction

The provided passage offers a profound insight into the multifaceted nature of
administrative values in the context of public management. It introduces three distinct
clusters of values - Sigma-type, Theta-type, and Lambda-type. Each cluster embodies a
unique set of principles, objectives, and implications, shedding light on the intricate
decision-making processes within public administration. This framework, akin to a
Venn diagram with overlapping and separate areas, reveals the complexities and trade-
offs involved in public management.

Sigma-Type Values

Sigma-type values focus on the efficient allocation of resources and cost-effectiveness.

They aim to match resources closely to specific tasks and objectives to maximize
efficiency. Success in this cluster is defined by achieving goals with minimal resource
utilization. Control mechanisms in Sigma-type values are geared towards cost control
and efficiency, using techniques such as 'just-in-time' inventory systems and payment-
by-results reward systems. The emphasis is on tight controls with an output-oriented
approach.

In terms of organizational design, satisfying Sigma-type values aligns with mechanistic

structures suitable for stable environments. This design emphasizes fixed, trackable, and
measurable goals. Information is a critical element in this control system, often highly
segmented and guarded with care.

Theta-Type Values

Theta-type values pivot around the principles of honesty, fairness, and ethical conduct
in public management. The primary objective is to prevent dishonesty, bias, and the
abuse of office, ensuring the proper discharge of duties with fairness and legitimacy.
Control mechanisms in this cluster prioritize process controls to ensure ethical behavior
and fairness. These mechanisms include recall systems, 'notice and comment'
procedures, and independent anti-corruption investigatory bodies. Transparency is the
hallmark of this control system.

Regarding organizational design, Theta-type values underscore the importance of

process control over output control. Goal setting often involves 'double bind' elements,
with an emphasis on achieving fairness and legitimacy. The presence of cross-pressures
may necessitate control through independent adversary bureaucracies, promoting
transparency and ethical conduct.

Lambda-Type Values

Lambda-type values revolve around security, resilience, adaptability, and the ability to
withstand adversity. The primary goal is to ensure the robustness of public services,
their capacity to endure challenges and crises, and adapt rapidly. Success in this cluster
is measured by the ability to withstand threats and recover effectively. Control
mechanisms emphasize input and process controls, with a focus on redundancy and
safety measures. Techniques such as redundancy, diversity, and robustness are
employed to enhance resilience and minimize the risk of system failure.

Organizational design principles for Lambda-type values prioritize multiple-objective

structures and 'slack' to facilitate learning and crisis management. Responsiveness to
unexpected events and loose coupling are essential characteristics. Information is
considered a collective asset, contributing to resilience and adaptability.

Compatibility and Trade-offs

The passage underscores that while there may be overlap between these three clusters of
values, satisfying all three for any administrative dimension is challenging and possibly
unattainable. This implies that organizations must carefully balance these values based
on their specific objectives and the environmental conditions they face.

Implications for New Public Management (NPM)

The passage raises important questions about the impact of New Public Management
(NPM), often associated with cost-cutting and efficiency, on other administrative values
such as honesty, fairness, and resilience. It underscores the need for further research to
determine the extent to which NPM may influence these values, particularly in contexts
with little ingrained public service culture.

Conclusion

The three clusters of administrative values outlined in the passage provide a valuable
framework for understanding the intricate dynamics of public management. These
values, while occasionally overlapping, represent distinct facets of public administration
that must be carefully considered. The passage encourages further research to assess the
impact of New Public Management on these values and their compatibility with safety
cultures within public services. Balancing these values is essential for creating a robust
and adaptive public management system.

Questions Hood

1. The article begins by describing what NPM is, using mainly seven ‘doctrinal components’. NPM is often
described with the mantra ‘run government like a business’. To what extend can you see an analogy
between the way you assume private sector organisations are run and these doctrinal components?

The philosophy of New Public Management (NPM) advocates for the implementation of professional management
techniques in the public sector, akin to those utilized by private firms. One of the fundamental tenets of NPM is the
prioritization of performance measurement through the use of explicit metrics and standards to evaluate
effectiveness. Another key principle of NPM involves the implementation of output controls in public sector
operations, which emphasizes the attainment of specific outcomes, similar to private sector practices. NPM also
incorporates competition into public services to promote efficiency, as is the norm in the private sector.
Additionally, NPM encourages the adoption of private-sector-style management techniques, such as strategic
planning and cost control. Lastly, NPM promotes greater resource discipline, mirroring the private sector's focus on
optimized resource allocation.

2. What role does accountability play in NPM? (we will go further into accountability next meeting, when
we discuss the article by Bovens)
The idea of accountability is a crucial component within the framework of New Public Management (NPM). It
encompasses various aspects that collectively support the principles and practices of NPM. Financial accountability
is a fundamental aspect that emphasizes the importance of cost-effectiveness, efficiency, and financial transparency
in the operations of the public sector. Central to NPM is the concept of performance accountability, wherein
organizations establish clear targets, measure their performance against these targets, and report the results to
both stakeholders and the public. Contractual accountability is also widely prevalent, often taking the form of
partnerships with private or nonprofit entities, where contracts are used to establish service expectations and
quality standards. User accountability, on the other hand, empowers service recipients to voice their concerns and
preferences, thus shaping the delivery of services. Lastly, managerial accountability decentralizes the decision-
making process, holding frontline managers accountable for the outcomes of their actions.

3. The next part of the article is mainly concerned with a clothes of the emperor analogy. Describe why he
uses this metaphor (both in general, but also in the steps of ‘Where the design came from’ and NPM as
an ‘all-purpose garment’) and argue whether you agree with the use of this metaphor. 1

The author uses the metaphor of “the emperor’s new clothes” to criticize New Public Management (NPM). This
metaphor compares NPM to the classic story in which the emperor is deceived into thinking he is clothed in rich
clothing when in fact he is naked. In this context, the metaphor serves two main purposes. First, it means that New
Public Management may be more about style and hype than actual content, suggesting that although it sounds
impressive, it may not deliver the promised transformative results in the field of public administration. Second, this
metaphor highlights that NPM's claimed universal applicability is questionable. Just as the emperor's new clothes do
not really fit everyone, NPM may not be a one-size-fits-all solution for public administration, especially when
different administrative values and backgrounds are taken into account.

4. The last part of the article revolves around different types of administrative values. What is the point
that Hood wants to make regarding NPM discussing these values?

Christopher Hood's discussion of various administrative values, including sigma values, theta
values, lambda values, helps to emphasize the prioritization of goals within the framework of
New Public Management (NPM). Hood's central argument revolves around NPM's primary
adherence to Sigma's values, which emphasize cost reduction, efficiency, and financial
responsibility. While Hood recognized the importance of these values, he raised serious
concerns about the potential neglect of theta and lambda values. Hood believes that NPM's
primary focus on efficiency and cost reduction may inadvertently dilute the values associated
with honesty, fairness, transparency and resilience in public administration. New public
management's tendency toward market-oriented mechanisms and competition sometimes
undermines the ethics and accountability standards of traditional public services.
Furthermore, the pursuit of efficiency may be at odds with the need for resilience and
adaptability in the face of unforeseen challenges or crises.

In essence, Hood emphasizes that by prioritizing specific administrative values, state public
administration may fail to adequately address the broader values necessary for effective and
accountable public administration. He called for further research to examine potential
conflicts and trade-offs between these different value sets within the NPM framework.

1
‘The clothes of the Emperor’ is a fairy tale, you can look it up if you are not familiar with the basic
points of the tale.