public administration and business administration ...faculty.augie.edu/~jkeltgen/linkages...

PublicAdministrationandBusinessAdministration:SiameseManagementTwinsSeparatedattheHeart?

ByJacielKeltgen

Dr.MatthewFairholmPOLS812

UniversityofSouthDakota

SiameseManagementTwins

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Introduction

Countlessscholarsandpractitionersovertheyearshaveattemptedto

legitimizethefieldofpublicadministration,makesenseoftheso‐calledpublic

administrationdichotomy,andtoreinforce‐‐orerase‐‐theconnectionsbetween

publicadministrationanditsmorepopularandmoreperhapsmoreheartless

sibling,businessadministration.

Theseattemptshavebeengatheredintoscholarlyjournals,fancytomesand

collegetextbooks.Butthefactremainsthatthereisstillgreatpoliticaldebateover

theentirepublicadministrationprofession.Argumentswillcontinuelongafterthis

paperhasbeenresearched,written,annotatedandputonashelfsomewhere.MPA‐

trainedprofessionalswhoworkforstate,localorthefederalgovernmentandMBA‐

trainedprofessionalsengagedinthequasi‐publicsectorwillalsocontinuetodo

theirjobsnomatterwhatlinesaredrawn,conclusionsmadeorresearchpapers

presented.Doesitreallymakeanydifferencewhetherpublicadministrationand

businessadministrationarelinkedinanyway?Accordingtosomeoftheauthors

who’veweighedinonthematter,aswellasthreeprofessionalswhocurrentlywork

orwhohaveworkedinthepublicsectors,andcurricularofferingsinmaster’s

programs,itdoesmatter.Allmanagementisnotnecessarilythesame.Thehistoryof

thedebateisimportantandongoing,asarethesortsoftasksexpectedonthejobas

wellaspreparationforthosetasksandoutcomes.


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Notsurprisinglysincemostoftheliteraturereflectsresearchandwritingsby

scholars,thereislittlementionofemotionorpassionreflectedindiscussionsof

businessadministrationtasks.Thevernacularislimitedtotermslike“bottomline”

and“returnoninvestment”ratherthan“connectiontomission”or“doingtheright

thing.”Thesetermsandtasksmayleadonetoassumethatbusinessprofessionals

lacktheheartattributedtothoseworkinginthepublicsector,especiallyinnon‐

profitorganizations.

AnutterancebyWallaceSayreinthe1950shasledtoastormofdiscussions

andwritingsrevolvingaroundthesimilaritiesanddifferencesbetweenmanagers

workinginthepublicsectorandthoseengagedintheprivatesector.Sayreisquoted

ashavingsaid,“Publicandprivatemanagementarefundamentallyalikeinall

unimportantrespects.”Anotheracademic,GrahamT.Allison,carriedSayre’s

statementonestepfurtherbydeclaring,“publicandprivatemanagementareat

leastasdifferentastheyaresimilar,andthatdifferencesaremoreimportantthan

thesimilarities”(1979,p.87).ProponentsofNewPublicManagementlaud

managerialpracticesfromtheprivatesector.Reformershaveproclaimed,“public

managersshouldseektoemulatethesupposedlysuccessfultechniquesoftheir

privatesectorcounterparts(e.g.managementbyobjective,totalquality

management,devolvedmanagement,performance‐relatedpay)”(Boyne,2002,p.

97).BoynewentontocontradictSayre,havingsaid,“Theargumentofthispaperis

thatSayre’sassertionisnotsupportedbytheempiricalevidence.Therefore,the

injunctionthatpublicmanagerscanlearnusefullessonsfromprivatemanagersis

worthyofserious,butcautious,consideration”(p.98).Explanationsofthe


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similaritiesanddifferences,aswellasthreadsofthecontentiousissueunraveling

sincethen,willbepresentedhere.Additionally,threeprofessionalsworkingin

SiouxFalls,SouthDakota,offeredtheirinput.JeffreyTraill,formercity

administratorandcurrentlyadministrativeofficerfortheDepartmentofHomeland

Security(partoftheTransportationSafetyAdministration),AndyWentzy,Director

oftheSanfordInitiatives,andMarkMeierhenry,formerSouthDakotaAttorney

Generalandnowanattorneyinprivatepractice,wereconsultedaboutthepractical

linkagesanddifferencestheyhaveexperiencedintheirgraduatecoursesinpublic

administration,businessadministrationandlawaswellaswhattheyhaveseenon

thejobintheprivateandpublicsectors.Abriefinspectionofpublicadministration

andbusinessadministrationcurriculawillalsolendsomeweightinthecourses

linkingandseparatingthetwoprofessionaldegreesandhowprofessionalsare

preparedtocarryouttheirduties.

Definitions

Areviewofliteratureillustratesthedifficultyofevendrawingcogent

definitionsof“public”and“private”managementoradministration.Thereismuch

overlap,interminglingandblurringofenterprises,especiallyinfirmsworkingunder

governmentalcontracts.Somecorporationswieldsomuchpowerandinfluenceon

thepublicinterestthatitisnolongeraccuratetodescribethemas“private.”Forthe

purposesofthispaper,“public”isdefinedasgovernmentandnon‐government

organizationsownedcollectivelybypoliticalcommunitiesdedicatedtoproviding

servicestothepublic(includingnon‐governmentorganizations).“Private,”forthe

purposesofthispaper,referstobusinessesthatareprivatelyownedandoperated


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andcontrolledbymarketforces.“Management”isdefinedbyWebsterasthe

organizationanddirectionofresourcestoachieveadesiredresult.

HistoricalandTheoreticalUnderpinnings

Althoughhistorianssaypublicadministrationhasbeenpracticedfor

centuries,mostattentionhasfocusedonthelate19thCenturyforward.Asfarback

asWoodrowWilsoninthe1880s,“administration”wasconsideredascienceanda

fieldofbusiness.Wilsonbelievedinseparatingpoliticsfromtheadministrationof

government’saffairs.Whilemostpublicadministratorstodaynolongerbelievein

thedichotomy,muchofWilson’sbeliefthatdoingthepublic’sbusinessshouldlook

muchmorelikethedoingofprivatebusinessisstilldebated.Heemphasizedthe

needtoincorporateefficientandeffectivewaystogetthegovernment’sworkdone.

FrederickTaylorbelievedthatscientificmanagementwastheanswertothe

ailmentsdoggingAmerica’sresponsetotheindustrialage.Increasedefficiencies

wouldsmoothproceduresandofferanswerstomanagementthatwereconcrete.

Taylor’sthoughtsinfluencedaccounting,education,consulting,libraryscience,

architecture,health,themilitary,publicadministration,industrialand

organizationalpsychologyandgenderstudies(Fry&Raadschelders,2008,p.750).

Furthermore,Taylorheldthathistenetswereapplicabletopublicadministration

specificallysinceheconsideredthe“averagepublicemployeedidlittlemorethan

one‐thirdtoone‐halfofagoodday’swork”(Fry&Raadschelders,2008,p.56).

Twostrandsofprogressivismdeveloped,usuallyreferredtoasOld

ProgressivismandNewProgressivism,bothofwhichfocusedonamoreresponsive

government.MaryParkerFollett,commonlyconsideredtobepartoftheOld


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Progressivistschool,studiedorganizationalbehaviorthatiscommoninschoolsof

businessandpublicadministration.Shebelievedmanagersshouldconsider

psychologyandsociology.Sherefocusedherprofessionalattentiontobusiness

practicesinbothAmericaandEuropeinthe1920s.Sheexpressedthroughseveral

lecturesaimedatindustrialleadersthatbusinesspracticeshadeclipsedothersocial

science‐basedendeavorsinexcitingdevelopments.Shedidn’ttakethetimeto

separatethefunctionsofbusinessversuspublicadministration,perse,butchose

insteadtofocusonthevaluebusinesslenttosociety.ParkerFollettpointedoutthat

“businessservesabroadersocialpurposethanmereprofit‐making,offeringaplace

forpioneeringinhumanrelations.Businesscombinestechnicalknowledgewith

scientificinvestigationsofcooperativehumanbehaviortodiscoverbasicprinciples

oforganizedactivity(FryandRaadschelders,p128).Duringapresentationonthe

PsychologyofControl,ParkerFollettexpressedsomeofthesesentiments.“The

reciprocalinfluence,theinteractivebehavior,whichinvolvesadevelopingsituation,

isfundamentalforbusinessadministrationasitisforpolitics,economics,

jurisprudenceandethics”(MetcalfandUrwick,1940,p.201).

NewProgressivistssuchasWilson,LutherGulik,andFrederickMoshertook

afederalistperspective.Gulik,especially,believedthatbusinessliketechniques

shouldbeadoptedtoimprovetheefficiencyofgovernmentaloperations(Fry&

Raadschelders,2008,p.107).Gulik’sfamousPOSDCORBwillbevisitedlaterinthe

paperasadministratorsin2009discussedsimilaritiesbetweenpublic

administrationandbusinessadministrationthatGulikfirstaddressedinhispre‐

WWIIwritings.ThisviewdemonstratedagreementwithFrederickTaylor’s


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techniquesofScientificManagement.Thesetechniques,designedthrough

experimentation,wereintendedtomakeindustrial(taskmanagement)functions

moreefficientandwouldthereforeimproveprofitability.

Classictheoryarguesthatpolicy,instructions,guidanceandauthorityflowed

downthehierarchyandcommunication(feedback)flowedup.ChesterBarnard

showedthatconsiderablepoweraccumulatesatthebaseofthehierarchyand

theoriesofeffectivemanagementneededtoreflectthisandaccountfortheculture,

preferencesandattitudesofworkers,andtheextentofagreementbetween

workers’needsandinterestsandmanagementpolicyanddirection(Frederickson&

Smith,2003,pp.100‐101).Inthistheory,authorityisdelegatedupwardratherthan

downwardsincemanagementischargedwithsecuringcooperationthrough

participation.

MovingawayfromtheClassicalperspective,BehavioralistsDwightWaldo

andHerbertSimonweighedinonthematterinpost‐WWIIdebates.Simon’s

writingsconcentratedonindividualandorganizationaldecisionmaking.He

supportedascientificapproachtoadministration.However,hefirstdisputedthe

dichotomyandpointedoutfundamentalcommonalitiesinhumanbehaviorinpublic

andprivateorganizations(Fry&Raadschelders,2008,p.221).Simonintroduced

thetheoriesofboundedrationalityandSatisficingMan.BothWaldoandSimon

agreedthatpublicadministrationwasmulti‐disciplinary.Wheretheydifferisthat

Waldothoughtverylittlewasclear‐cut;Simonbelievedinbreakingcomplex

problemsintomeasurablefacts.Waldoassertedthatpublicadministrationaccepted

bothbusinessproceduresandbusinessideology.In1967hestatedthathisinterests


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weremoreinlinewithsociology,businessadministrationandorganizationtheory

andthesesubjectsweremoregermanetotheagendaofpublicadministrationthan

politicalscience(Fry&Raadschelders,2008,p.306).However,Waldosaid,public

administrationisdifferentfromprivateadministrationinsofaraspublic

administratorsmustoperateinapoliticalenvironment.Simoncontendedthere

werefundamentalcommonalitiesinhumanbehaviorinbothpublicandprivate

organizationsandthe“findingsofascienceofadministrationareapplicableinboth

settings”(Fry&Raadschelders,2008,p.221).Ultimately,authorsFryand

RaadscheldersspokeoutonbusinessadministrationANDpublicadministration(a

Waldoism)andsaidpublicadministrationpredatedbusinessadministrationand

thatanyprotestationsthatPAborrowedfromBAwasincorrect.Further,they

claimedtherewasnoconvincingevidencethatprivatebusinesswasmoreefficient

thanpublicorganizations(2008,p.348).

LiteratureReview

Traditionaleconomictheoryholdsthatinacapitalisteconomythepurpose

andmotivatingfactorinbusinessenterpriseistoearnaprofit.Efficiencyisensured

throughcompetitiontooffersuperiorgoodsandservicestocustomers.Inhispaper

discussingmajoradministrativereformsofthe20thCentury,JamesP.Pfiffner

discussedpublicandprivatemanagement.“Ifabusinessmakesaprofit,providingit

stayswithinthelaws,thatissufficientjustificationforitsexistence.Withinsucha

capitalisticsystemgovernmentalactionisjustifiedwhenaserviceisusefultothe

economy,(orpolity)butthereisnotsufficientincentiveintheprivatesectorto

provideit“(1998,p.10).


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AuthorMichaelA.Murrayin1976suggestedthatpublicandprivate

organizationshadbeenconvergingandfacingsimilarconstraintsandchallenges,

andthatmanagementinalltypesoforganizationsshouldbeviewedasageneric

process.Othersclaimeditwastooearlytodiscountthesignificanceofpublic‐

privatedifferencesandtheirimplicationsformanagementtrainingandpractice

(Raineyet.al,p.233).ArthurSementelli(2005,p.492)asked:“Doespublic

administrationhaveauniqueidentitythatcanbeidentifiedusingpsychometric

information?Isthisidentity‘shared’witheitherbusinessadministrationorpolitical

science?,andifsoisthereanempiricalargumentthatcanbemadeforeitherasa

‘mother’disciplineforpublicadministration.”Tworesearchers,BarryBozemanand

StuartBretschneiderofSyracuseUniversity,in1994pointedoutthat“despitethe

widespreadrecognitionofunrealismofthepolitics/administrationdichotomy,

muchoforganizationtheorycontinuestoignoreexternalpoliticalandeconomic

forces”(p.198).

Becauseauthorshaveapproachedthequestionfromsomanydifferent

angles,thispaperhasaddressedlinkagesbetweenbusinessadministrationand

publicadministrationinamoresimplisticway.Managementpracticesinboth

sectorswereexaminedbythisauthorintermsofeitherinternalprocessesor

externalprocesses.Thesevariablespointeddistinctdifferencesinhowthebasic

functionsofmanagementwereexacted(Boyne,2002,p.100)ineachsector.

Comparisonsandcontrastsfromavarietyofauthorswerecontemplatedinregard

toeachofthefollowingfactors.


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InternalFactors

1. Goals/objectivesandevaluationcriteria2. Structure,decisionmakingandcontrol3. Finances4. Performancecharacteristics5. Natureofgoodsproduced

ExternalFactors

1. Marketexposure2. Legalandregulatoryconstraints3. Politicalinfluences4. Publicscrutinyandexpectations5. Scopeofimpact

InternalFactors:Goals/objectivesandevaluationcriteria

Someauthorschoosetofocusonsimilaritiesbetweenprivateandpublic

managements.Pffifnerisonewhopointedoutdifferences.“Theproblemwith

managementtechniquesandtheirtransferabilityisthatinbusinessesthereisa

‘bottomline.’Thatis,ifabusinessismakingaprofititsexistenceisjustified,andits

variouspartscanbejustifiedbyhowtheycontributetomakingthatprofit.

Efficiencycanbecalculatedbyshowinghowthesameproductcanbeproducedwith

fewerresources.Evaluatingpublicservicesismuchmoredifficultbecausethereis

no‘bottomline.’Sincebydefinition,thepublicsectorisprovidingservicesthat

wouldnotproduceaprofitintheprivatesector(atleastinthesamequantity),there

isnowaytojudgehowmuchanyportionofactivitycontributestoprofitability.

Thereisnopricingsystembywhichtojudgewhetheranygivenactivityisworth

carryingout”(1998,p.10).

Allisonalsoaddressedthe“bottomline”andpointedoutthatgovernmental

managersrarelyhadaclearbottomline,“whilethatofaprivatebusinessmanageris

profit,marketperformance,andsurvival”(1979,p.78).HequotedDonald


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Rumsfeld,formerCongressman,SecretaryofDefense,AmbassadortoNATOand

ChiefofStaffunderPresidentGeraldFord(wholaterjoinedG.D.Searle&Co.,asCEO

andpresident),ashavingsaid,“Inbusiness,you’reprettymuchjudgedbyresults.I

don’tthinktheAmericanpeoplejudgegovernmentofficialsthisway…In

government,toooftenyou’remeasuredbyhowmuchyouseemtocare,howhard

youseemtotry–thingsthatdonotnecessarilyimprovethehumancondition”

(1979,p.87).Allisonsummedupthispointquitewellwhenhewrote,“The

perceptionthatgovernment’sperformancelagsprivatebusinessperformanceis

alsocorrect.Butthenotionthatthereisanysignificantbodyofprivatemanagement

practicesandskillsthatcanbetransferreddirectlytopublicmanagementtasksina

waythatproducessignificantimprovementsiswrong”(1979,p.88).

Duringaninformalpresentation,"HistoricalPerspectivesontheFinancial

Crisis,”tocollegestudentsstudyingbusinessadministration,governmentand

economics,economistandacademicianRobertE.Wright(April14,2009)said

governmentgrowthwasconsideredmoreimportantthanefficiency.“The

governmentmeasuresinput,notoutput.Forinstance,officialssay,‘Wespent$70

billiononthatproblem.’”In2003K.J.Euske’spublishedresearchshowedthat

publicsectororganizationshad“shifting,complex,conflictinggoals”withequitythe

dominantconcernwhileorganizationsintheprivatesectorhad“clearandagreed

upon”goalsandefficiencywasthedominantconcern(p.6).Thepaperarticulated

that“economicefficiencyiscoretotheoperationofprivatesectororganizations”(p.

7).Nootherauthorsdisputedthiscontentionandinfact,mostagreedthatthe


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politicalenvironment“effectivelyprecludestheuseofefficiencyasaperformance

metric”(Euske,p.7).

InternalFactors:Structure,decisionmakingandcontrol

Euskebelievedallmanagersneededdataonwhichtobasedecisions.

Whetheritwasfinancialdataormarketdata,thisinformationwasvitaltomaking

intelligentchoices.Accordingtotheauthor,“Interpretationandusesofdatamay

differfromsectortosector”(2003,p.8).Motivationhaslongbeenanissuein

managementresearch.Multiplestudiesshowedthatpublicmanagerswere“less

materialisticthantheirprivatecounterparts;managersinprivateorganizationsare

morestronglymotivatedbytheirpersonaleconomicprosperity”(Boyne,2002,p.

112).Similarstudies,alsoreportedbyBoyne,showedthatpublicmanagershavea

strongerdesiretoservethepublicinterest.However,organizationalcommitment

wasweakerinthepublicsector(2002,p.113).

FormerSecretaryoftheTreasuryW.MichaelBlumenthalwasCEOofBendix

Corp.beforemovingintothemorepublicrole.InanarticleprintedintheJan.29,

1979,issueofFortune,Blumenthalsaidthisaboutcontrol:“(Y)oufindthatthehead

ofagovernmentdepartmentoragencyisnotlikethechiefexecutiveofalarge

corporationwhohascontroloverpersonnelsystem,whocanchangeit,caninstilla

certainspirit,canhireandfire.Ingovernmentthatkindofcontroldoesnotexist”(p.

39).

Pfiffneralsoaddressedmanagementflexibility.“…intheprivatesector

managershaveachoice.Inthepublicsector,however,executiveshaveonlya

narrowrangeofchoice;theycantrynewwaystoaccomplishthemission,butthey


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cannotchangethemissionoftheagency.Atthefederallevel,thatisforCongressto

decide”(1998,p.11).Rumsfeldsawmanysimilaritiesbetweengovernmentand

business.Hebelievedjobsinbothrequiredplanningandestablishingpriorities

(Fortune,p.91).

InternalFactors:Finances

Traill(personalcommunication,April8,2009),whohasamaster’sdegreein

publicadministration,lookedatitthisway:“Inthebusinessworldifyou’renot

makingmoneyyou’regoingtoshutyourdoorsandlayoffpeople.Inthefederal

government,weborroworprintmoremoney.StateandlocalgovernmentinSouth

Dakotadoesn’thavethatoption.Youhavetooperatewithinyouravailable

resources.Youcanonlyborrowmoneyforcapitalassets.Basicallyyoudon’tsee

citiesgoingbankrupt.Revenueformostgovernmentalentitiesisfromtaxdollars.

Youhaveagroupofpeopleyoucantaxuntiltheygetfedupandvoteyououtof

officeorhaveareferendum.Ifyou’renotsellinginthebusinessworld,you’renot

goingtogenerateanyrevenue.Ingovernmentyoucanprovidecrappyservicesand

stillgeneraterevenue.Ingovernmentyouwillhaveanewpotofmoneythrough

allotments,grantsandtaxdollars.Inbusinessyoudon’thavethatluxury.”

MarkMeierhenry,formerSouthDakotaAttorneyGeneralandcurrentlyin

privatelawpractice,whittleddowndifferencesbetweenpublicandprivate

enterprisetooneofmoney.“Managementinthepublicsectorbeginswithabudget

andtaskstoaccomplish.Theworkistoutilizetheassetstoobtainmaximumresults.

Inprivatebusiness,thefirstthoughtisconstantlycashfloworthelackthereof.The


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emphasisonobtainingworkandpaymentistheprimarymotivator”(personal

communication,April10,2009).

AndyWentzy,whohasamaster’sdegreeinbusinessadministrationbutwho

worksforthenon‐profithealthcareorganizationthatisthelargestemployerinthe

stateofSouthDakota,saidheseeslittledemarcationbetweenprivateandpublic

organizationswhenitcomestomoney.“Ourorganizationoperatesmorelikea

businessthanmanyotherhealthcareorganizationsinthecountryandworld.Here

westillfocusonfinancialaccountability,firstandforemost,assumingthatstaffand

doctorswilldeliverhealthcareholistically.Ourverysmallandleangroupofleaders

workswithproformasandprojectsfromafinancialaspectratherthanfroma

patientcareperspective”(personalcommunication,March25,2009).

InternalFactors:Performancecharacteristics

Allisonapproachedperformancecriteriaquitematter‐of‐factly:“Thereis

littleifanyagreementonthestandardsandmeasurementofperformanceto

appraiseagovernmentmanager,whilevarioustestsofperformance–financial

return,marketshare,performancemeasuresforexecutivecompensation–arewell

establishedinprivatebusinessandoftenmadeexplicit”(1979,p.77).Allisonalso

claimedthatthepoliticaleconomyinwhichpublicsectororganizationsoperate

mosteffectivelyprecludedtheuseofefficiencyasaperformancemetric.Instead,he

argued,publicentitiesarefocusedonequity.

Boyne(2002,p.101)pointedoutthatpublicagenciesaremarkedbymore

bureaucracy,redtape,andlessfreedomtoreacttocircumstances.Thistrioof

bureaucracy,redtapeanddelaywasechoedbyJeffreyTraill,formerDellRapids,


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S.D.,administratorandcurrentlyadministrativeofficerfortheDepartmentof

HomelandSecurity.“Managers(inbothsectors)havethesamecoreskills,

knowledgeandabilities.However,therearedifferences.Youcanmakechanges

rapidlyandadapttoconditionsinbusiness.Butthebureaucracyhammersyouin

thefederalgovernment.Officespacetakesprivatebusinessesafewmonthstolease,

butinthefederalgovernmentittakes2‐3years.Itwaseye‐openingtometosee

howtrulyridiculousitis.Peoplefromtheprivatesectorwouldhavesomedifficulty

adjustingtothat”(personalcommunication,April8,2009).

AccountabilityforperformancefactoredintoWentzy’smeasurement

considerations.AsdirectoroftheSanfordInitiatives,whichincludeestablishing

children’shospitalsaroundtheworld,Wentzysaidexpectationsforhisperformance

weresetprimarilybymulti‐million‐dollardonorT.DennySanford.“Whetheryou’re

talkingaboutagovernmentalagencyoranonprofitfoundation,Idon’tseethatas

anydifferentthanbeingaccountabletoashareholder.Everybodywhohasastake,

whetheraphilanthropistorboardmember,isinterestedinwhetheryou’remaking

shrewdinvestmentswiththeirmoney.Alllookfortheorganizationtoworktoward

theirstatedgoal”(personalcommunication,March25,2009).

Traill’sperspectivewassimilartothatexpressedinBozeman’sand

Bretschneider’sPublicnessPuzzlepaper.“Governmentadministrationdiffersfrom

allotheradministrativeworktoadegreenotevenfaintlyrealizedoutside”(1994,p.

200).

Traillagreedanddescribeditasineptbureaucratsrisingwithinapublic

organizationuntiltheyaretooincompetenttoadvancefurther.“ThePeterPrinciple


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isreallyrampantinthefederalgovernment.It’sfrustrating.Anewemployeehasa

two‐yearprobationaryperiod.Iftheytransferinandhadbeenwiththefederal

governmentformorethantwoyears,you’restuckbecausethere’snomore

probationaryperiod”(personalcommunication,April8,2009).Atleasttwo

researchersagreedwithTraill’sconclusionaboutdealingwithentrenchedstaff.

Bretschneiderin1990reportedthatdecisionsinpublicagenciestooklonger,

particularlydecisionsontheappointmentordismissalofstaff.Allison,too,agreed.

“Theroutesbywhichpeoplereachgeneralmanagementpositionsingovernmentdo

notassurethattheywillhaveconsciousnessorcompetenceinmanagement”(1979,

p.88).

Ifbureaucracyisindeedmoreprevalentinthepublicsector,Boyne(2002,p.

102)said“itisunclearwhetherthisisassociatedwithalackofentrepreneurial

behaviororanaversiontoriskonthepartofthepublicmanagers.”

InternalFactors:Natureofgoodsproduced

Productionwasoftendifficultnotonlytomeasure,butalsotoarticulatein

government.JohnJ.DiIulioJr.madethisdistinctioninaBureauofJusticeStatistics

article.“Unlikemostprivatecorporations,mostgovernmentagencieshaveno

market‐testofoutput.Themanagersofasmokestackcompanyareouttoturna

profit(bysellingsmokestacks);themanagersoftheEnvironmentalProtections

Agencyareoutto‘protecttheenvironment.’Theexecutivesofthetelevision

networkscontrivetogeneratedividendsforshareholders;theheadsoftheFederal

CommunicationsCommissioncontrivetoregulateairwavesin‘thepublicinterest.’

Atmost,publicmanagershaveproxiesforoutputs:forexample,increasingweapons


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stockpilesasaproxyfor‘enhancingcombatreadiness’and‘strengtheningnational

defense’”(1993,p.143).

Traillconcurredthatbureaucracywasrampantandthis,combinedwitha

dearthofperformancemeasurementcriteriaforhisemployer,TSA,wasfrustrating.

“Ingovernmentit’sdifferent.We’reinthesecuritybusiness;youcan’treachoutand

grabthat.We’reansweringtoalargerpopulationandpoliticalwhims.We’renot

reportingtostakeholders.”(personalcommunication,March25,2009).

ExternalFactors:Marketexposure

Whilemostpublicagenciesmaynotconsiderservingconstituenciestobe

managingmarketforces,theynevertheless“mustmanagethesegmentofthe

marketitisgoingtoserve,managetheservicesandproductsitprovidesand

manageitssuppliers”(Euske,2003,p.9).Wentzybelievedhealthcarewasn’t

necessarilylikeaprivatebusinessinthatitwasn’ttrulyresponsivetomarketforces.

“Becauseourpatientsdon’treallythinkabouthealthcareuntiltheyneedit,it’snota

verypredictiveindustry.Wemostlyhavetobereactive,andeventhoughwecansee

trends,it’shardtoplan”(personalcommunication,March25,2009).

ExternalFactors:Legalandregulatoryconstraints

Constitutionaldifferencescomprisedamajordistinctionbetweenpublicand

privatemanagement.Theconstitutionalgoalofgovernmentwastospreadout

functionstothepresident,twohousesofCongressandcourts(aswellastostate

andlocalgovernments)whilebusinessmanagementfocusedonaCEOwho

competedinthefreemarket(Allison,1979,p.80).OversightbyCongressional

groupsaswellasjudicialorderswerecommonforgovernmentalmanagersbut


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“quiteuncommon”inprivatebusinessmanagement(p.78).Allisonsaidsuch

scrutiny“oftenmateriallyconstrainsexecutiveandadministrativefreedomtoact.”

ExternalFactors:Politicalinfluences

Politicalconstraintsresultinfrequentchangesinpolicy.Thepoliticalcycle,

accordingtoBozeman(1987,p.20),meansa“constantpressuretoachievequick

results–resultsthatcanhelptheagencyreceivealargershareofthenextroundof

appropriations;resultsthatmaybepossibleonlysolongascongressionalallies

remainentrenched;resultsthatcanhelpre‐electapresident.”

BothPfiffnerandTraillcharacterizedpoliticalchangeasadetrimenttolong‐

rangeplanning.“Withpresidentialelectionseveryfouryearsandcongressional

electionseverytwoyears,thereisgreatpotentialforreversalsinpolicydirection.

Frequentchangesinpartisancontrolofgovernmentmakelongtermplanning

difficultandoftenfrustratepublicmanagerswhomustplantoimplementprograms

forlongtermeffectiveness”(1998,p.15).Traill(personalcommunication,April8,

2009)pointedtotheadministrationchangefromBushtoObamaandhowitaffected

hisagency.“RightnowTSA,likeeveryotherfederalagency,isintransitionfroma

moreconservativeadministrationtoamorecentristadministration.Wehavea

chancetodothateveryfouryearssowerunaroundchasingourtailaccordingto

whateverthepresidentorcongresswantsustodo.”

ExternalFactors:Publicscrutinyandexpectations

Publicagenciesfaceavarietyofstakeholders,asdoprivateconcerns.L.

Metcalfeisquotedashavingsaid,“[G]overnmentoperatesthroughnetworksof

interdependentorganizationsratherthanthroughindependentorganizationswhich


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simplypursuetheirownobjectives”(Boyne,2002,p.100).Allisonstatedbluntly

that“governmentalmanagementtendedtobeexposedtopublicscrutinyandtobe

moreopen,whileprivatebusinessmanagementismoreprivateanditsprocesses

moreinternalandlessexposedtopublicreview”(1979,p.78).Expectationsby

externalconstituenciessuchastaxpayersandservicerecipientsandconsumer

groupswerelikelytoconflict.Privatecompaniesalsoanswertostakeholderswith

conflictingviewpoints,butultimatelywereconcernedprimarilywithsatisfying

fundingsources,customersandmedia.Customersexpectproductstobeavailable

whereandwhentheywantthematpricestheyexpecttopay.Stockholdersand

othercreditorsexpectareturnontheirinvestments.Thisabsenceofcompetitive

pressuresinpublicagenciesresultsinlessrivalry.Rather,publicsector

organizationsareexpectedtocollaboratewithotherorganizationsofferingsimilar

servicesandnotcompeteforcustomers(Boyne,2002,p.100).

Watchdogssuchasthemediatendtofocusmoreonwhat’shappeningin

governmentthanwatchingbusinessoutcomes,mostliteraturecontended.

“Governmentmanagementmustcontendregularlywiththepressandmedia;its

decisionsareoftenanticipatedbythepress.Privatedecisionsarelessoften

reportedinthepress,andthepresshasamuchsmallerimpactonthesubstanceand

timingofdecisions”(Allison,1979,p.78).

FormerSecretaryoftheTreasuryBlumenthalalsoaddressedthemedia

issue:“Inacorporation,mistakesareofnogreatinterestunlesstheyleadtoamajor

lossofprofit.MistakesbyaCabinetmemberarealwaysnewsworthy,soyoulearnto

beverycarefulaboutwhatyoureveal”(Fortune,p.38).


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Publicexpectationsdiffer,accordingtoRumsfeld.“Thegoalingovernmentis

generallyacceptedasaworthyone–alegitimatehumanendeavor.Ontheother

hand,therearemanypeopleintheworldwhosimplydon’tconsiderbusinessa

worthyactivity.Theycharacterizeprofitsasevilandbusinessasanessentially

selfishactivity.Theydon’tappreciatethatsocietyisdamagedwhenenterpriseis

stifled”(Fortune,p.91).

ExternalFactors:Scopeofimpact

BlumenthalstressedthathewasjudgedonhisefficacyasTreasurysecretary

indifferentwaysthanhissuccessatBendixwasmeasured.“You’reperceivedtobea

goodSecretaryintermsofwhetherthepoliciesforwhichyouareresponsibleare

adjudgedsuccessfulornot:whathappenstotheeconomy,tothebudget,to

inflation,andtothedollar,howwellyourundebtfinancingandinternational

economicrelations,andwhatthebankersandthefinancialcommunitythinkofyou.

That’snottrueinacompany.Inacompany,it’showwellyouruntheplace.Thefact

thatBendixundermytenurewasselectedasoneofthefivebest‐managed

companiesintheU.S.meantsomethingtomyreputationandthatofmycompany”

(Fortune,p.39).

ManagementTraining:MPAandMBACurricula

Howthen,areprofessionalspreparedtoworkinpublicandprivatevenues?

Anon‐scientificsurveyofMPAandMBAcurriculashowedthatmostprograms

requirestudentstotakeacommonslateofcourses.Thesecourses‐‐accounting,

humanresources,organizationaltheory,statisticsandeconomics–wererequired

bybothMPAandMBAprograms.WheretheydifferedwasthatMBAprogramswere


21

likelytoincludecoursesinbusinessstrategy,marketingmanagement,

manufacturingandoperationsaswellassometechnology‐basedcoursework,

whereasMPAprogramsincludedcourseworkinresearchmethods,budgeting&

financialanalysis,publicpolicyandintergovernmentalrelations.Specialtyareas

differedslightly.Whilebothusuallyofferedafocusinhealthcaremanagement,MBA

programsweremorelikelytoofferemphasesinmarketing,technologyandfinance.

MPAprogramslogicallywentintothequasi‐publicandpublicareassuchaspublic

safety,non‐profitmanagement,stateandlocalgovernmentandpublicfinance.

InanarticleaboutMPApreparation,BenjaminD.MinercomparedMPAand

MBArealitiesandsaidbothprogramsreliedoncommoncoursework.“[T]hisperson

hastypicallylearnedleadershipskills,constitutionallaw,administrativelaw,

researchmethods,theoriesofgovernment,principlesofhumanresource

management,policyanalysistechniques,andmethodsofbudgeting.Thisdiverse

educationprovidespublicandprivatepractitionersacommonknowledgebase”

(2006,p.3).

WhenaskedabouttheirspecificMBAandMPAcoursework,Traillsaidhefelt

underpreparedinaccountingandcompensatedbyenrollingintwoaccounting

courses(personalcommunication,April8,2009).Wentzysaidhewouldhave

welcomedadditionalpreparationinresearchmethods(personalcommunication,

March25,2009).

POSDCORB

ManagementfunctionsasoutlinedbyGulik’sacronymforPlanning,

Organizing,Staffing,Directing,Coordinating,Reporting,andBudgeting,resonatedin


22

botharenas.Allisonsaid,…”thelargerlessonisthatdedicatedattentiontospecific

managementfunctionscan,asinthehistoryofbusiness,createforpublicsector

managersaccountingcategories,andrules,andmeasuresthatcannotnowbe

imagined”(1979,p.89).

TraillandWentzysaiditwastrueintheirexperiencesthatanexecutivewas

engagedineachoftheseendeavors,whetherthatorganizationwaspublicor

private.Theyillustratedwithafewexamples.“Planningisonethingthegovernment

doesnotdowell.Theprivatesectordoesaverygoodjobofplanningfiveand10

yearsout.Forexample,theclinics[Sanford]willbuildaroundtheworldarewell

planned.Thefederalgovernmentmightsaywe’regoingtofederalizeanother40

airportsoverthenext20yearsandthisiswhatit’sgoingtocostus.Bythetimeallis

saidanddone,itwouldhavecostfourorfivetimesmorebecausewedon’tplan

well”(Traill,personalcommunication,April8,2009).

Traillsaidreportingwasa“deficiencyofeverylevelofgovernment.The

businesssectorhasSarbanes‐Oxleyandotherreportingrequirementssoinvestors

trulyknowwhatyourliabilitiesandassetsare.Ingovernmentit’snevertruly

reported.Partofitisduetothebudgetingprocess.Inlocalgovernmentin2004we

finallywenttoGASB34(GovernmentalAccountingStandardsBoard),requiringall

largerentitiestogobackinhistoryandfigureoutactualacquisitionofassetcosts

becausetheyaretrulyassetsofthegovernmentalorganization.Morestringent

requirementshavemovedgovernmentclosertothebusinessworldsoyougeta

betteroverallpicture”(personalcommunication,April8,2009).


23

OneareawhereTraillandWentzyagreedthatbusinessandgovernment

differisintheneedfor,andpracticeof,marketinggoodsandservices.Wentzysaid

Sanfordisalwayscognizantofthemarketandtheneedtocommunicate.“Itseems

oneimportantelementismissingbetweenpublicadministrationandbusiness

administration.Thatismarketingorsales.Inpublicadministrationitseemsthe

audienceispresumed(constituents)andinbusinessadministrationproductsare

developedorrefinedbasedontheneedsofaspecificmarket.Messagesregarding

theproductsmustbedisseminated.There’sacommunicativefunctionineachof

thesetopicareas.MaybeGulikwasfocusingontheinternalaspectsofabusiness

ratherthanexternalconsiderations.Thebottomlineisthatcommunicationsand

marketingaresoinherentineverythingwedo”(personalcommunication,March

28,2009).Traillwasmorebluntinhisassessment:“Ithinkthegovernmentdoesa

pisspoorjobofmarketing,mostlybecauseit’sakneejerkreaction.Theagencygets

badpublicityandsoallofasuddenwedooutreach.It’snotnecessarilywellthought

out.Inlocalgovernmentyou’llseesmallercommunitiesarebrandingthemselves

(billboardsandTVadsforsmalltowns)aspartoftheireconomicdevelopment

strategies.Withthefederalgovernment,thesheersizeandseparationbetween

agenciesprohibitaconcertedeffort–despitelipservicefromourcurrentpresident

–tomarketnewprograms”(personalcommunication,April8,2009).

Conclusion

Despitevariousviewpointsaboutthedifferencesandsimilaritiesin

governmentandbusinessoperations,thedebatewillcontinuebothoncampusesas


24

curriculaarere‐examinedandinthemarketplaceasperformancecriteriaarere‐

visited.

ResearchersNygaardandBramming(2008,p.402)concludedthepublic

sectorhasbecomeincreasinglymarket‐drivenoverthelastfewdecades.They

describedapublicmanager’sroleasjugglingmultipleagendas,developing

networks,engaginginteamwork,managingprojectsandapplying“thebestpossible

mixofcompetenciestoreachtheclearlydefined–oftencontractuallyset–

outcomes.”It’stheircontentionthatpublicmanagementwassocloselylinkedtothe

marketthatflexibilityandstakeholdermanagementwereofvitalimportance.

Pfiffnersummedupbysaying,“Whileitmaybetruethatthebestmanaged

companiesintheprivatesectorarethemostproductiveorganizationsinthe

country,itdoesnotnecessarilyfollowthatbusinessmanagementisalwaysmore

efficientthanpublicmanagement.Becauseofprofounddifferences…thetwosectors

arenotdirectlycomparableonefficiencycriteria”(1998,p.14).

Ifbeingattentivetothebottomline,toefficiency,tostakeholdersandtoa

missionisheartless,thenbusinessadministrationisthelessemotionalofthetwo

disciplines.Itthrivesonindependenceyethassoughtoutpartnersand

interdependentfirmstohelpinitsdeliverynetwork.Thesomewhatmore

ponderousandlessdefinedtwin,publicadministration,alsoisinterdependentand

intrinsicallymotivatedbythepublicgood,whateverthatmaybeinanygiven

politicalclimate.Thesocialaspectofbothisstillthecirculatorysystemthatlinks

them,asbothservepeopleandexistonlybecausetheirmissionsaretomeethuman

needs.


25

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