Public and Non-Profit Organization

PUBLIC AND NON-PROFIT
ORGANIZATION
Reported by:
Ivy Advento-Capito
TOPIC OUTLINES
A. THE THREADS OF ORGANIZATIONS – THEORIES

 The Closed Model of Organization
 The Open Model of Organization
 The Closed and Open Models: Essential Differences
B. THE FABRICS OF ORGANIZATIONS: FORCES

 Assessing Organizational Worth
 Organizational Knowledge
 Decision Making in Organizations
 Administration in Organizations
1. The Closed Model of Organization (Classical Theory)
 Some organizations fall in the group

category of closed model.
 The closed model includes bureaucratic,
hierarchical, formal, rational and
mechanistic.
 Bureaucratic Theory (Max Weber) - is the
best and prominent closed model and
about this it has been said that is an
ideal type.
1. The Closed Model of Organization (Classical Theory)
Salient features (Nicholas Henry)
2. It is believed that in closed model organization's internal functioning or conditions do

not frequently and rapidly change. In these models mainly routine works are- found
and internal conditions are stable.
3. There is some sort of specialization but it is found in the center of organization.
4. To transact a job certain means are required and these means are emphasized.
5. Conflicts may crop up at any level, but these are settled at the central level. This
means that there is some sort of centralization.
6. Responsibility of each employee is clearly stated and it is also emphasized that they
cannot avoid their responsibility.
6. There is hierarchical system of organization, and each stage is headed by an officer
who enjoys some authority.
7. Only few persons have monopolized the management knowledge and particularly
the chief executive knows everything.
8. The interaction among the people in such organization is vertical and never
horizontal.
9. Workers are loyal to the organization and one man.
10. In every sphere of the organization there reigns obedience, command and loyalty.
2. The Open Model of Organization (Neo-Classical Theory)
 Opposite to the closed model of
organization is the open model.
 It is known by different names such as
collegial model, competitive model, or
free market model.
2. The Open Model of Organization (Neo-Classical Theory)
The principal features of the open model:
3. The organization are of fluidic structure or nature. It is like an amoeba.
4. Objectives or purposes always get priority, means are not so important.
5. There are very little that can be called stable.
6. Specialized knowledge is not confined within limited circle or it is not the property of
a particular person.
7. A person is respected not for his status in the organization but for his knowledge,
ability to manage, and professional capacity.
8. Organizations achievement and excellence are rewarded or prioritized.
The Closed and Open Models: The Essential Difference
(1) perception of organizational The basic differences are:
environment
The closed model assumes that employees
(2) perceptions of the nature of man are unwilling to work and the organizations
are rational. Environment is stable and
(3) perceptions of the use of coercion is basic.
manipulations in organizations
On the other hand, the open model
(4) perceptions of the role and assumes that people love work,
significance of organizations in society organizations are not rational, environment
is unstable and coercion is not acceptable.
1. ASSESSING ORGANIZATIONAL WORTH

Testing for Efficiency - assesses an
organization’s ability to fully and
satisfactorily complete its tasks using
the fewest resources possible. It is
applicable to organizations with
“crystallized standards of desirability.”
Testing for effectiveness – An
organization’s ability to fully complete
its takes- period.
Testing for Society – The ability to
appear relevant and useful in achieving
its mission.
2. ORGANIZATIONAL KNOWLEDGE
- Knowledge and information have been defined as “what changes us” or, more
formally but just as accurately, “data, passed through A person’s mind, that becomes
meaningful.
2.1. INFORMATION AND HIERARCHY 2.2 INFORMATION AND DECISION MAKING
 Absorbing uncertainty  Know-nothing decision making

 Centralization and the fate of intelligence  Information as symbol
 Decentralization and the fate of intelligence  Making decisions faster – and
 Turf and bureaucratic jealousies
 Hierarchy, handling, and information
3. DECISION MAKING IN ORGANIZATIONS

- The principal reason underlying this darker side of decision making is that the
people who make decisions, like all people, are less than logical.
3.1. THE BOUNDS OF INDIVIDUAL RATIONALITY
 The decision premise

 Bounded rationality and dysrationalia
 “Satisficing” decisions
 Victims of groupthink
 Thinking disposition and good decisions
making
3.2. THE BOUNDS OF ORGANIZATIONAL RATIONALITY
TYPES OF ORGANIZATIONAL DECISION MAKING:

a. Analytic of organizational decision making
b. Judgmental decision making
c. Compromising decision making
d. Inspirational and/or authoritarian decision making
DECISION MAKING IN PUBLIC ORGANIZATIONS: A DIFFERENT DYNAMIC
a. An attenuated autonomy i. Caution, Communication And
b. Bargaining vs analyzing Unappreciated Peril
c. Complex process j. Life-or-death Decision—imprimatur Of The
Public Sectors
d. Taking it slowly and cautiously
k. Decision Making In Non-profit
e. Participation and consultation
Organizations: More Talk, Fight And Risk
f. Consulting with whom
l. Consultative Decision Making
g. Ignoring clients and citizens
m. Conflictual Decision Making
h. Ignoring Bosses And Overseers
n. Riskier Decision Making
4. ADMINISTRATION IN ORGANIZATIONS
- Administration is based on
coalitions, or informal alliances designed
to advance individual goals. Coalitions
appear to be basic to the human
condition, and “many biologists believe
that . . . We are a ‘coalitional’ species;
groups compete with each other for status
and influence.”
4.1. THE CHALLENGES OF ADMINISTERING
 The Power of Subordinates

Public administrators, at least the more
talented ones, seem to appreciate these
administrative limitations and to work within
them. They comprehend that their subordinates
demand their “obedience to roles.” To
unseasoned actors, behaving capriciously might
seem the quintessential evidence of power. But
such a strategy cannot endure in an organized
setting.
 Widening Workers’ Zones of Acceptance
POSITION POWER PERSONAL POWER
1. Control 1. Expert power
2. Reward power 2. Referent power
3. Coercive power 3. Charisma
4. Legitimate power
4.2. MECHANISMS OF ADMINISTRATIVE CONTROL
1. Supervision
2. Input control
3. Behavior control
4. Output control
5. Selection-socialization control
6. Environmental control
4.3. THE TACTICS OF ADMINISTRATION
TACTICS TACTICAL CHOICE TACTICAL SUCCESS

1. Persuasion Implement nearly half, 49 percent, of Average adoption rate of 58%
decisions (adequate to good)
2. Edict Implement 30 percent of decisions Average adoption rate of 50%
(adequate)
3. Participation refers to stakeholders cooperatively Averages an adoption rate of 80%
implementing the decision, and it is (good to outstanding)
used 13 percent of the time
4. Intervention It is the most aggressive tactic and 90 % adoption rate
the least used, accounting for only 8 (good to outstanding)
percent of policies implemented
4.4. ADMINISTRATION IN PUBLIC ORGANIZATIONS: A DIFFERENT DYNAMIC
The Whirlwind Lessons Learned
- The whirlwind of public management ■ Hire with care and be alert to an employee’s
requires that effective public administrators be performance during the probationary period.
people of action.
■ Engage new employees with a welcoming first-
The Pressures year program that introduces them to the agency’s
culture.
- To “accomplish” their convoluted and ill-
defined missions, public administrators must ■ Communicate to build trust.
confront many more “conflicting environmental
demands” and “external stakeholders” than ■ Hold employees accountable for their
business managers. performance.
- These realities force public executives to ■ Closely link recognition, rewards, and sanctions
interact far more frequently and formally with to performance.
outside groups than their corporate
counterparts. ■ Give all employees the opportunity to grow and
develop.

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PUBLIC AND NON-PROFIT

A. THE THREADS OF ORGANIZATIONS – THEORIES

B. THE FABRICS OF ORGANIZATIONS: FORCES

 Some organizations fall in the group

2. It is believed that in closed model organization's internal functioning or conditions do

1. ASSESSING ORGANIZATIONAL WORTH

2.1. INFORMATION AND HIERARCHY 2.2 INFORMATION AND DECISION MAKING

 Absorbing uncertainty  Know-nothing decision making

3. DECISION MAKING IN ORGANIZATIONS

3.1. THE BOUNDS OF INDIVIDUAL RATIONALITY

 The decision premise

3.2. THE BOUNDS OF ORGANIZATIONAL RATIONALITY

TYPES OF ORGANIZATIONAL DECISION MAKING:

4.1. THE CHALLENGES OF ADMINISTERING

 The Power of Subordinates

1. Control 1. Expert power

2. Reward power 2. Referent power

3. Coercive power 3. Charisma

4.2. MECHANISMS OF ADMINISTRATIVE CONTROL

4.3. THE TACTICS OF ADMINISTRATION

TACTICS TACTICAL CHOICE TACTICAL SUCCESS

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