PADM 5010

Servant Leadership Principles

Characteristics which together comprise the sense of "It is not about me. It is not about now": Listening -Hearing both the words and the hearts of others. Empathy - engaging openly with others to better understand their perspectives, how their life experiences have shaped them, and assuming their good intentions. Nurturing the Spirit -using supportive praise and honest recognition to encourage the spirit of those working to make the vision a reality and helping them understand the role they play in the bigger picture. Building Community -fostering a strong sense of shared engagement and commitment to the team as a whole and working to nurture an authentic culture with leadership who genuinely walk the talk. Healing - promoting wholeness and transformation to help people become the best they can be and recognizing that our words either build up or tear down. but they are rarely neutral. Awareness - of self, others and our environment, and feeling compelled to act upon what we know is the right thing to do when we become aware of it. Foresight -acknowledging the realities of the past and recognizing the realities of the present so that we can anticipate the realities of the future and take appropriate actions to shape our destiny. Conceptualization - envisioning the future and communicating a clear picture of what it can look like so that others can understand, embrace and work toward making the vision a reality. Persuasion -inspiring commitment to the cause rather than forcing mere compliance through positional authority. Calling -recognizing that we are working toward something that is bigger and more important than ourselves or any single individual and nurturing a willingness to sacrifice for the greater good. Stewardship -understanding both short term and long term implications of decisions and the impact they have on the greater good. Growth of Others-developing your team at all levels and helping each of them reach their fullest potential.

Transaction Costs

Costs Of Exchange Unrelated To Production Costs costs incurred that don't accrue to any participant of the transaction

Doctrines of NPS (New Public Service)

From Denhardt & Denhardt (4th ed.) 1.

Doctrines of NPM (New Public Management) - as Defined by Hughes in Public Management and Administration (5th ed.)

From Hughes (5th ed.) 1980s-1990s 1. Hands-on professional management: letting managers manage; active, visible, discretionary control from named persons at the top; justification - accountability requires clear assignment of responsibility for action 2. Explicit standards + measures of performance: Requires goals to be defined and performance targets to be set and; justification - accountability requires a clear statement of goals; efficiency requires a hard look at objectives 3. Greater emphasis on output controls: Resources are directed to areas according to measured performance becasue of the need to stress results rather than procedures 4. Disaggregation: breaking up of large entities into corporatized units around products, funded separatedly and dealing with one another on an "arm's length" basis; justification = need to create manageable units and to gain the efficiency advantages of franchise arrangements 5. Competition: term contracts and public tendering procedures; justification = using rivalry as the key to lower costs and better standards 6. Private sector management styles: move away from military-style "public service ethic" and flexibility in hiring and rewards; justification = need to use "proven" private sector management tools in the public sector 7. Discipline + parsimony (unwillingness to spend): cutting direct costs, raising labor discipline, resisting union demands, limiting "compliance costs" to businesses; justification = need to check resource demnads of public sector and to "do more with less"

Satisficing

Herbert Simon's theory of bounded rationality states that human beings "satisfice" because they do not have the intellectual capacity to maximize Searching for and choosing an acceptable, or satisfactory, response to problems and opportunities, rather than trying to make the best decision. A phenomenon/strategy that strives for satisfactory decision-making. It is aimed at making decisions that are okay enough to tackle a situation, but not the best possible decisions. Decision making is a very important aspect of business and the management must practice effective decision-making to keep the company sound. But when the management has a number of alternatives at a juncture, it is not always possible for it to take the best possible decision as it requires increased efforts, costs, and time. In such a situation, the management might make a decision that is just 'good enough' to tackle the situation, thus devoting lesser resources to the problem. This act would be referred to as satisficing.

Individual vs. Collective Action

Individual action refers to the actions taken by one individual person, acting based on his or her personal decisions. Collective action refers to the actions taken by a collection or group of people, acting based on a collective decision.

Intermunicipal Cooperation and Shared Services

Intermunicipal cooperation or shared services is now as common as for-profit privatization in local governments across the U.S. Intermunicipal cooperation may be defined as an arrangement between two or more governments for accomplishing common goals, providing a service, or solving a mutual problem. It is a useful strategy to achieve efficient and effective service delivery and promote regional coordination. This page highlights a new research initiative in New York State on shared services as well as relevant literature on several aspects of intermunicipal cooperation, with links to more in-depth summaries.

Reasons for government failure

Lack of incentives: In the public sector, there is limited or no profit motive. Because workers and managers lack incentives to improve services and cut costs it can lead to inefficiency. For example, the public sector may be more prone to over-staffing. The government may be reluctant to make people redundant because of the political costs associated with unemployment. Poor information, politicians may have poor information about the type of service to provide. Politicians may not be experts in their department but concentrate on their political ideology. Political interference Decisions made for short-term political gain - rather than sound economics, e.g. keep on unproductive workers. e.g. politicians may take the short-term view rather than considering the long-term effects No consistency. Change of government often leads to change of approach and new political initiatives Moral hazard. The government may offer a guarantee to all bank deposits to protect the financial system, but this could encourage banks to take risks - because they know they can be bailed out by the government. Regulatory capture - When government agencies become too friendly with business/groups they are trying to regulate Unintended consequences. Policies to reduce relative poverty 'means-tested benefits' can create 'welfare dependency.' For those on means-tested benefits, moving from benefits to work could lead to very little extra income because of lost benefits and higher taxes. Benefits can then solve one problem of relative poverty but create new problems of higher spending and lower levels of labour market participation. Special interest groups. In the US, many types of business have special tax credits for their industry; this makes it difficult to reform the tax system, and leads to horizontal inequality - business with same income can be treated differently. In the Europe, farmers receive substantial financial support from the EU, making it difficult to reform CAP. Once people are used to receiving subsidies it can be politically difficult for the government to take it away.

rational-legal authority

Legal rules and regulations are stipulated in a document. How the United States government operates A form of leadership in which the authority of an organization or a ruling regime is largely tied to legal rationality, legal legitimacy and bureaucracy. Weber identified in bureaucracies a rational-legal authority in which legitimacy is seen as coming from a legal order. The majority of modern bureaucratic officials and political leaders represent this type of authority. However, while recognizing bureaucracy as the most efficient form of organization, and perhaps indispensable for the modern state, Weber also saw it as a threat to individual freedoms. For Weber, the implementation of bureaucracies in government was a kind of rationalization, in which traditional motivators for behavior were cast aside. Instead of utilizing traditions, emotions, or values to motivate behavior, in a bureaucracy, people used rational calculation. Regarding Western societies, Weber called this increasing rationalization an "iron cage" that trapped individuals in systems based solely on efficiency, rational calculation, and control. In his theory, the "iron cage" is the one set of rules and laws that we are all subjected to. According to Weber, the shift from old forms of mobility, like kinship, to new forms, like strict, legal rules, was a direct result of the growth of bureaucracy and capitalism.

Reasons for government failure

Mintrom: When governments seek to address problems of decentralized decision-making to promote desired social and economic outcomes, sometimes the cure proves to be as bad as — or worse than — the illness. In policywork, you're often choosing between degrees and types of failure. For an efficient outcome, costs must be outweighed by the benefits. Remember, government is often called upon to address problems that are deemed "too hard" by the market or other social institutions. Governments can coerce taxation and use rule of law though. Governments should focus on their facilitative role. ✔️ Lack of incentives: limited or no profit motive; workers and managers lack incentives to improve services and cut costs, leading to inefficiency; over-staffing ✔️ Poor information: politicians may have poor information about the type of service to provide; may not be experts in their department but concentrate on their political ideology ✔️ Political interference: decisions made for short-term political gain - rather than sound economics; short-term view rather than considering long-term effects ✔️ No consistency: Change of government often leads to change of approach and new initiatives ✔️ Moral hazard: by offering guarantees or protections, sectors may be encouraged to take risks ✔️ Regulatory capture: government agencies become too friendly with those they regulate ✔️ Unintended consequences: policies solve one problem but create new ones ✔️ Special interest groups: many types of business have special tax credits for their industry; makes tax reform difficult; leads to horizontal inequality; once people are used to receiving subsidies, politically difficult to revoke

Doctrines of NPM (New Public Management) - as Defined by Osborne & Gaebler in Reinventing Government (1992)

Osborne and Gaebler: Reinventing Government (1992) Applies the business customer service model to governments. Citizens are seen as customers and the administrative role is streamlined by converting policy alternatives into market choices. This approach focuses on results and promotes competition inside and outside government. 1. Catalytic Government: Steering (governing/leading), Rather than Rowing (service delivery): The government should be a catalytic facilitator and focus on what it does best — raising resources and setting societal priorities through a democratic political process — while utilizing the private sector for what it does best — organizing the production of goods and services. Strengthen the civic infrastructure. Empower communities to solve their own problems. See all issues and possibilities. Balance competing demands for resources. Contracting out allows for competition, flexibility, and accountability. Holistic, comprehensive, and sometimes specialized programs aimed at the root of a problem. Experimentation through an evolutionary process that rewards new adaptations that work. Clear mission; minimal red tape. Steering organizations set policy, deliver funds to operational bodies, and evaluate performance — but seldom play an operational role. Services can be contracted out, but governance cannot. 2. Community-Owned Government: Empowering Rather than Serving: To work, programs must be owned by the people they're serving. The industrial economy meant that professionals and bureaucrats were now doing what families, neighborhoods, churches, and volunteer organizations had done. Public safety should be a community responsibility rather than reactive, momentary solutions. Help communities help themselves. Provide resources, backup, and training. Programs should empower citizens rather than collect clients (create dependency). Clients are dependent upon and controlled by their helpers and leaders. Clients understand themselves in terms of their deficiencies and will wait for others to act on their behalf. Citizens, however, understand their own problems in their own terms. They perceive their relationship to one another and they believe in their capacity to act. Good clients make bad citizens, but good citizens make strong communities. Effective social service programs work intimately, aggressively, and with feeling. Most of the activity and money nominally addressed at solving problems is, in fact, simply going to paying for services. Only when you overcome the crisis of self-confidence can opportunity make a difference in your life. Empower stakeholders and structure things so that people can take control. Remove barriers to community control; encourage organized communities to take control of services; provide seed money, training, and technical assistance; and move the resources necessary to deal with problems into the control of community organizations. Ultimate ownership is not just of problem-solving, but of the government itself. The public doesn't want more elections, meetings, or opinion polls. They want more control over matters that directly affect their lives: public safety, schools, real estate development. PROFESSIONAL SERVICE VS. COMMUNITY CARE A) Communities have more commitment to their members than service delivery systems have to their clients. B) Communities understand their problems better than service professionals. C) Professionals and bureaucracies deliver services; communities solve problems. D) Institutions and professionals offer 'service"; communities offer 'care'. E) Communities are more flexible and creative than large service bureaucracies. F) Communities are cheaper than service professionals. G) Communities enforce standards of behavior more effectively than bureaucracies or service professionals. H) Communities focus on capacities; service systems focus on deficiencies. 3. Competitive Government: Injecting Competition into Service Delivery: The issue is not public vs. private. It is competition vs. monopoly. Frontline workers know where efficiencies are. Cut out all the fat. Competition gives better results, more cost-consciousness, and superior service delivery. Service delivery by administrative bureaucracies is embracing monopolies. Eliminating duplication and consolidating to save money leads to private monopolies, which protect inefficiency and inhibit change. When service providers must compete, they keep costs down, respond quickly to changing demands, and strive to satisfy customers. Competition between teams or organizations builds morale and encourages creativity. For garbage collection, contracted private firms were found to be equally effective and responsive, but vastly more efficient than government agencies. To safeguard consumer interest, you need competition, which favors "survival of the helpful". Competition makes jobs more exciting and more rewarding. Types: Load-shedding, procurement, contracting. Competition is the permanent force for innovation that government normally lacks (due to no incentive to cut costs). Competition breeds accountability by creating real consequences and real pressure for change to address failures. "Are we providing anything that anyone would want to come to, by their choice?" ADVANTAGES OF COMPETITION A) Greater efficiency; more bang for your buck. B) Forces public (or private) monopolies to respond to the needs of their customers. C) Rewards innovation; monopoly stifles it. D) Boosts the pride and morale of public employees. (Note: they lose a degree of security, no-layoff policies are critical). Issues: time/ skill required for writing and monitoring contracts, lowball (irresponsible) bids, fraud, reduction in the ability to hold firms accountable (in load shedding). Corruption is difficult when a contracting system meets these criteria: 1. the bidding process is truly competitive; 2. the competition is based on hard info about cost and quality of performance; 3. the contractors are monitored carefully; and 4. a relatively nonpolitical body is set up to perform these tasks. Activities that were judged better off as monopolies, such as those in which the economies of scale favored one provider, or the legislature wanted every agency to buy the same service, were called utilities. Competition should be controlled and consumers should be informed to avoid problems of inequity between those of differing socioeconomic backgrounds. Choice, properly designed, will not threaten equity but increase it. The values embraced through our governments should not be lost when the government contracts. "The less people depend upon government, the less they are willing to finance it; the less they finance it, the worse it gets; the worse it gets, the less they are willing to depend upon it." The public sector must compete. Otherwise, it will stagnate and the only customers of public service will be those who cannot afford alternatives. 4. Mission-Driven Government: Transforming Rule-Driven Organizations: Never tell people how to do things. Tell them what you want and they will surprise you with their ingenuity.

Civil service reform traces its beginnings to the

Pendleton Act of 1883

Deadweight Loss

Price is increased above market level and results in a loss of both consumer surplus and producer surplus

Privatization

Privatization is a worldwide phenomenon. In recent years all levels of government, seeking to reduce costs, have begun turning to the private sector to provide some of the services that are ordinarily provided by government. The spread of the privatization movement is grounded in the fundamental belief that market competition in the private sector is a more efficient way to provide these services and allows for greater citizen choice. In practice, however, concerns about service quality, social equity, and employment conditions raise skepticism of privatization. In New York State, labor concerns are also a major issue. Although empirical studies do not provide clear evidence on the costs and benefits of privatization, public perception and pressure for improved government efficiency will keep privatization on the government agenda.

Producer Surplus

Producer surplus is defined as the difference between the amount the producer is willing to supply goods for and the actual amount received by him when he makes the trade. Producer surplus is a measure of producer welfare. It is shown graphically as the area above the supply curve and below the equilibrium price. Here the producer surplus is shown in gray. As the price increases, the incentive for producing more goods increases, thereby increasing the producer surplus.

substitute goods

Products or services that can be used in place of each other. When the price of one falls, the demand for the other product falls; conversely, when the price of one product rises, the demand for the other product rises.

Scientific Management

Scientific management is a theory of management that analyzes and synthesizes workflows. Its main objective is improving economic efficiency, especially labor productivity. Efficiency experts examine each work operation and find ways to minimize the time needed to complete it (time-motion studies). Also called Taylorism, Scientific Management is the application of Frederick Taylor's theory to the workplace to improve economic efficiency. Taylor published "The Principles of Scientific Management" in 1911, which explains his process of using scientific studies to analyze, optimize and standardize workflow. Four Main Principles: ‣ Select methods based on science, not "rule of thumb." Rather than allowing each individual worker the freedom to use their own "rule of thumb" method to complete a task, you should instead use the scientific method to determine the "one best way" to do the job. ‣ Assign workers jobs based on their aptitudes. Instead of randomly assigning workers to any open job, assess which ones are most capable of each specific job and train them to work at peak efficiency. ‣ Monitor worker performance. Assess your workers' efficiency and provide additional instruction when necessary to guarantee they are working productively. ‣ Properly divide the workload between managers and workers. Managers should plan and train, while workers should implement what they've been trained to do.

Which is NOT a feature of a true federal system such as exists in the US? 1. A written constitution that divides the central government and constituent governments, giving power to each. 2. Levels of government, each exercising power over people. 3. Subnational units acting on citizens and the central government acts only on the subnational. 4. The distribution of powers cannot be changed unilaterally by any level of government.

Subnational governments acting directly on citizens while the central government acts only upon the subnational governments

The US is a (form of government)

The U.S. is a democratic republic. We are a democracy (people have the say) but we also choose representatives who vote for us. Other Answers: ‣ Constitutional republic ‣ a federal system ‣ constitutional federal republic

Consumer Surplus

The difference between the consumers' willingness to pay for a commodity and the actual price paid by them, or the equilibrium price. Description: Total social surplus is composed of consumer surplus and producer surplus. It is a measure of consumer satisfaction in terms of utility. Graphically, it can be determined as the area below the demand curve (which represents the consumer's willingness to pay for a good at different prices) and above the price line. It reflects the benefit gained from the transaction based on the value the consumer places on the good. It is positive when what the consumer is willing to pay for the commodity is greater than the actual price. Consumer surplus is infinite when the demand curve is inelastic and zero in case of a perfectly elastic demand curve.

Regionalism

The modern metropolitan area typically contains multiple political jurisdictions. Public choice theorists argue political fragmentation will enhance choice and efficiency in local government service provision. However, the political fragmentation of the metropolitan area makes it difficult to address economic development, service provision, or democratic voice at the regional level. Consolidationists argue that regional government is the solution. However, support for regionalism is weak. Alternatives such as inter-municipal cooperation or functional consolidation (specific to a service) have been much more popular. These solutions also raise problems of equity and democratic representation and the ability to address the need for broader multi-functional coordination.

Privatization in government is about contracting public sector jobs and personnel to the private sector. (T/F)

True

Athenian Oath

We will never bring disgrace on this our City by an act of dishonesty or cowardice. We will fight for the ideals and Sacred Things of the City both alone and with many. We will revere and obey the City's laws, and will do our best to incite a like reverence and respect in those above us who are prone to annul them or set them at naught. We will strive unceasingly to quicken the public's sense of civic duty. Thus, in all these ways, we will transmit this City not only, not less, but greater and more beautiful than it was transmitted to us.

Definition of Cost Benefit Analysis

- Compares the expected costs of the project to the potential benefits it could bring to organization - Benefit = revenue = payback - Project with higher benefit cost ratio is selected a procedure for estimating all costs involved and possible profits to be derived from a business opportunity or proposal. Description: It takes into account both quantitative and qualitative factors for analysis of the value for money for a particular project or investment opportunity. Benefits to costs ratio and other indicators are used to conduct such analyses. The objective is to ascertain the soundness of any investment opportunity and provide a basis for making comparisons with other such proposals. All positives and negatives of the project are first quantified in monetary terms and then adjusted for their time-value to obtain correct estimates for conduct of cost-benefit analysis. Most economists also account for opportunity costs of the investment in the project to get the costs involved.

Weberian Bureaucracy

A model of bureaucracy with a system of hierarchy, powers flow from the top downward, and decisions are based on rationality and logic. prioritizes efficiency "Precision, speed, unambiguity, knowledge of files, continuity, discretion, unity, strict subordination, reduction of friction and of material, and personal costs - these are raised to the optimum point in the strictly bureaucratic administration," wrote Weber. Weber's ideal bureaucracy: ‣ Authority of Hierarchy: hierarchical organization; action taken on the basis of, and recorded in, written rules. Weber advocated that management should be organized into layers, with each layer being responsible for its team's performance. Weber believed that each layer of management should provide supervision to the layers below them while being subject to the control of those above them. Thus, individuals at the top of the management hierarchy have the most authority, while those at the bottom have the least power. This hierarchical structure clearly delineates lines of communication, delegation, and the division of responsibilities. ‣ Task Specialization / Division of Labour: delineated lines of authority with fixed areas of activity; Jobs are broken into simple, routine, and well-defined tasks. Task specialization promotes the timely completion of work at the highest level of skill. Tasks, therefore, in Weber's ideal organization are divided into categories based on team members' competencies and areas of expertise. Employees and departments have clearly defined roles and expectations in which they are responsible solely for the labor they do best. This is designed to maximize efficiency for the organization. Overstepping one's responsibilities, such as presenting new ideas outside of your department's scope, is generally frowned upon. ‣ Career Orientation: bureaucratic officials with expert training; Managers being salaried personnel pursue their career as professionals not as owners of the organization. Contract terms are also entirely determined by the organization's rules and regulations, and employees have no ownership interest in a company. ‣ Efficient and uniform requirements / Impersonality: rules implemented by neutral officials; Controls and rules and regulations are applied to all uniformly irrespective of the members' personalities, positions, and preferences. Employees, argued Weber, should always know exactly what is expected of them. In the ideal organization, the rules are clearly defined and strictly enforced. This promotes uniformity within the organization and keeps the company running as smoothly and efficiently as possible. If new rules and requirements need to be introduced, higher-level management or directors are responsible for implementing and enforcing them. Under Weber's theory, relationships between employees are to be only professional only. The impersonal environment characterized by bureaucracies is designed to promote decision-making that is based solely on facts and rational thinking. It prevents favoritism or nepotism as well as involvement from outsiders or political influence, anything that could interfere with the mission of the organization. ‣ Formal Selection: career advancement depending on technical qualifications judged by organization, not individuals; Members required by the organization are selected on the basis of specific qualification as demonstrated by their formal examination, education, and training. Weber felt that promotions within an organization should be based solely on achievement, experience and technical qualifications. Personal favors, relationships or personality traits should not factor into personnel decisions. In the ideal organization, Weber believed that employees should be chosen based on their technical skills and competencies, which are acquired through education, experience or training - no other factors should be considered. And since workers are paid for their services, and services are divided by job position, an employee's salary is entirely dependent on their position. Other characteristics of the ideal bureaucracy Clearly defined job roles: Weber believed that responsibilities should be delegated based on skill and ability. There should be no flexible roles. Rather, employees should be aware of their position's responsibilities and stick to them. Straying outside of their designated roles only disrupts the hierarchy of authority. Therefore, collaboration, creative thinking and idea pitching are also strongly discouraged. Also, workers should respect their supervisors and not overstep boundaries. Meticulous record-keeping: According to Weber, leaders should take notes on every position, occurrence or concern that involves the company. That way, they can refer to it later and handle any issues accordingly. For instance, managers should record every responsibility of every role in the company so there are no misunderstandings. If an employee calls out sick or shows up late to a shift, their manager should keep tabs to ensure there are no negative patterns. Additionally, workers should track their hours, and record their daily assignments and progress. Managers have the right to know how their employees are using (or abusing) their time. Hiring based solely on specific qualifications: Weber advocated that only the most ideal candidates with the exact skill set required for the position should be hired to ensure the best results. There should be no nepotism or exceptions; only those individuals with the right skills and expertise who meet the high standards of the organization should be hired. If a person is not perfectly qualified, they are not a fit. Work-appropriate relationships only: Weber did not condone any type of personal relationship in the workplace. He supported the notion that all work relationships are bound by rules and regulations. There should be no small talk, collaboration or sharing of ideas. Work is work, it isn't a social outing.

Law of Demand

All other factors being constant (cetris peribus), price and quantity demand of any good and service are inversely related to each other. When the price of a product increases, the demand for the same product will fall.

Law of Supply

All other factors remaining constant (cetris peribus), price and quantity supplied of a good are directly related to each other. In other words, when the price paid by buyers for a good rises, then suppliers increase the supply of that good in the market.

Inferior Good

a good that consumers demand less of when their incomes increase

Production Possibility Frontier (PPF)

a graph that shows all the combinations of two goods and services that can be produced if all of society's resources are used efficiently graph which indicates the various production possibilities of two commodities when resources are fixed. The production of one commodity can only be increased by sacrificing the production of the other commodity. It is also called the production possibility curve or product transformation curve.

Prisoner's Dilemma

a particular "game" between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial

Arrow's (Impossibility) Theorem

also known as the general impossibility theorem Economist Kenneth J. Arrow: it is impossible to create a voting system (for 3+ options) that is consistent, fair, and would lead to transitive group preferences. No ideal voting structure; No reasonably consistent and fair voting system can result in sensible results. When voters have 3+ alternatives, no voting system can convert the ranked preferences of individuals into a community-wide ranking (without creating cycling group preferences) while also meeting a certain set of criteria: 1. unrestricted domain or universal admissibility (voting must account for all individual preferences; each voter can have any set of rational preferences); 2. non-dictatorship (the wishes of voters should be taken into consideration); 3. pareto efficiency (unanimous individual preferences must be respected); 4. independence of irrelevant alternatives (if a choice is removed, the others' order should not change) Underlying assumption: transitivity (each individual should be able to order the choices in any way and indicate ties; ensures that collective choices are independent of the path taken to them; preferences are "transitive" if they can be put into a sensible order)

Decentralization

devolving the responsibilities of centralized governments to regional/local governments to enhance efficiency (through inter-governmental competition and fiscal discipline) and democratic voice (though enhanced local voice over service provision). Decentralization may enhance productive efficiency but will undermine allocative efficiency by making redistribution more difficult, especially in areas with regional inequality.

government failure

government intervention in the economy causes an inefficient allocation of resources and a decline in economic welfare. Often government failure arises from an attempt to solve market failure but creates a different set of problems.

Devolution means...

returning power to subnational governments

Pareto efficiency or Pareto optimality

the economic situation when the circumstances of one individual cannot be made better without making the situation worse for another individual. Pareto's efficiency takes place when the resources are most optimally used. Pareto's efficiency was theorized by the Italian economist and engineer Vilfredo Pareto. Pareto improvement is a condition on the way to Pareto efficiency whereby goods can be re-allocated to make at least one person better off without making any other individual worse off. Pareto improving behavior, in theory, will continue until Pareto efficiency is reached.

Monopoly

the exclusive possession or control of the supply or trade in a commodity or service. A market structure characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute.

The institutional reforms of the New Public Management are heavily influenced by the assumptions of...

the public choice approach principal-agent theory transaction cost economics

A market demand curve shows

the quantity of a good that consumers would like to purchase at different prices

A market supply curve shows

the quantity of a good that firms would offer for sale at different prices

deadweight loss

the total loss of producer and consumer surplus from underproduction or overproduction It is the loss of economic efficiency in terms of utility for consumers/producers such that the optimal or allocative efficiency is not achieved. Description: Deadweight loss can be stated as the loss of total welfare or the social surplus due to reasons like taxes or subsidies, price ceilings or floors, externalities and monopoly pricing. It is the excess burden created due to loss of benefit to the participants in trade which are individuals as consumers, producers or the government. Example: if a certain tax is imposed on the producer for each unit of the good he sells, it is likely that the new equilibrium price that is settled for the transaction will be higher and therefore some burden of this will be passed on to the consumer. This will lead to reduced trade from both sides. The loss of welfare attributed to the shift from earlier to this less efficient market mechanism is called the deadweight loss of taxation. This leads to wastage or underutilization of resources due to inefficient market outcomes. Causes: ‣ Price Floors (minimum wage) ‣ Price Ceilings (rent control) ‣ Taxation (cigarette tax) ‣ Imperfect Competition (oligopolies/monopolies)

New Public Service (NPS)

theory of reform of bureaucracies that argues for a more participatory and democratic process of determining regulations and service provision that fits local community needs; it relies on bureaucracy interacting with networks of citizens interested in a particular policy area NPS is a reaction to NPM. It focuses on the mission of government, and how to determine the collective public interest. There are considerations that should come before cost and efficiency, and citizen participation should be a major factor in decisions. The role of the administrator is very complex: synthesizing the needs of citizens, interest groups, elected representatives, etc.

SERVANT LEADERSHIP AS AN ELECTED OFFICIAL

‣ I will base my decisions on the next generation more than the next election, committed to the ideal that my loyalty must be to the entire community (both now and in the future) and not merely to those who got me elected. ‣ I will focus on mission, vision, and values as the benchmark for my decisions and recognize that my responsibility is the pursuit of the greatest good for the entire community and not the satisfaction of any particular group's agenda. ‣ I will make decisions based on fact-based evidence and not allow myself to be manipulated into bad decisions for the future based on the decibel level of critics. ‣ I will recognize that "it takes a smart leader to know where they are stupid" and have the wisdom to be smart. Accordingly, I will value those who have the courage to tell me what they really think and will listen sincerely to those who disagree with me to truly understand their perspective, recognizing that understanding other perspectives makes me a better leader. ‣ I will embrace my responsibility to govern rather than to manage, recognizing that if I am doing staff's job I am not doing my job, while also understanding and embracing the appropriately exercised governance role of holding staff accountable. ‣ I will place a greater emphasis on solutions than on problems while refusing to offer solutions before I understand the problem. ‣ I will understand that mutual trust is the foundation for everything and that if I refuse to trust others they will be unable to trust me. ‣ I will protect the integrity of the process more than the rightness of my position; I will fight hard for my issue but then unify behind the governing body when the decision is made because the decision was made with integrity of process, even if I disagree with the outcome. ‣ I will understand that my deeply held beliefs, values, and positions will be strengthened, not compromised by courteous, respectful, and civil discourse. I will not treat someone as the enemy just because we disagree. ‣ I will treat everyone with dignity and respect because of who I am as a leader... not because of how they treat me or what I think about them. ‣ I will be a role model for civility. I will not treat my colleagues or staff in any way that I would be embarrassed if my five-year-old child treated someone the same way. ‣ I will never forget - it is not about me and it is not about now.

Woodrow Wilson: Study of Administration (1887) In the USA, Wilson is considered the father of public administration. He first formally recognized public administration in this article.

‣ It is the object of administrative study to discover, first, what government can properly and successfully do, and, secondly, how it can do these proper things with the utmost possible efficiency and at the least possible cost either of money or of energy. ‣ The question was always: Who shall make law, and what shall that law be? The other question, how law should be administered with enlightenment, with equity, with speed, and without friction, was put aside as " practical detail " which clerks could arrange after doctors had agreed upon principles. ‣ the functions of government are becoming more complex and difficult, and vastly increasing in number. ‣ there should be a science of administration which shall seek to straighten the paths of government, to make its business less unbusinesslike, to strengthen and purify its organization, and to crown its duties with dutifulness ‣ government with us has expanded in nature and grown great in stature, but has also become awkward in movement ‣ Three periods of government growth: 1) absolute rulers, and of an administrative system adapted to absolute rule; 2) constitutions are framed to do away with absolute rulers and substitute popular control, and in which administration is neglected for these higher concerns; 3) the sovereign people undertake to develop administration under this new constitution which has brought them into power ‣ English and American political history has been a history, not of administrative development, but of legislative oversight, - not of progress in governmental organization, but of advance in law-making and political criticism. Consequently, we have reached a time when administrative study and creation are imperatively necessary to the well-being of our governments saddled with the habits of a long period of constitution-making. ‣ It is better to be untrained and free than to be servile and systematic. ‣ It is harder for democracy to organize administration than for monarchy. The very fact that we have realized popular rule in its fulness has made the task of organizing that rule just so much the more difficult. ‣ the people ... can agree upon nothing simple: advance must be made through compromise, by a compounding of differences, by a trimming of plans and a suppression of too straightforward principles. ‣ Wherever regard for public opinion is a first principle of government, practical reform must be slow and all reform must be full of compromises. For wherever public opinion exists it must rule. ‣ A truth must become not only plain but also commonplace before it will be seen by the people who go to their work very early in the morning,; and not to act upon it must involve great and pinching inconveniences before these same people will make up their minds to act upon it ‣ Although politics sets the tasks for administration, it should not be suffered to manipulate its offices ‣ What part shall public opinion take in the conduct of administration ? ‣ The problem is to make public opinion efficient without suffering it to be meddlesome. ‣ Bv keeping this distinction in view, -that is, by studying administration as a means of putting our own politics into convenient practice, as a means of making what is democratically politic towards all administratively possible towards each, - we are on perfectly safe ground, and can learn without error what foreign systems have to teach us. ‣ Our duty is, to supply the best possible life to a federal organization, to systems within systems; to make town, city, county, state, and federal governments live with a like strength and an equally assured healthfulness, keeping each unquestionably its own master and yet making all interdependent and co-operative, combining independence with mutual helpfulness. ‣ Still there is' no denying that it would be better yet to be both free in spirit and proficient in practice.

7 UNIFYING PRINCIPLES OF SERVANT LEADERSHIP

‣ Treat everyone with dignity and respect in every interaction ‣ Select team members who strive for excellence in every responsibility ‣ Prepare for the future by developing and empowering leaders at every level ‣ Prepare before you promote ‣ Continuous improvement in every aspect both personally and professionally ‣ Integrity matters the most in every circumstance ‣ It isn't just about me - It isn't just about now - And it never is