TO PUBLIC MANAGEMENT:
REASSESSING A REVOLUTION?
more striking. The rst three chapters address the perceived crisis in
the British public sector and the remainder deal with aspects of public
management in practice including markets and prices, performance meas-
urement and a user-oriented service. The rst reference in Flynns biblio-
graphy is to the Adam Smith Institute, the second the Audit Commission
and the last to Williamsons (1975) Markets and Hierarchies.
One should hesitate from drawing easy conclusions from such a com-
parison. However, this simple exercise indicates how public management
has, to a considerable extent, redened the focus, language and theoretical
basis of study of the public sector, drawing on literatures and ideas often
external to traditional public administration. As noted above, the reasons
for this include the insularity and fragmented focus, organization and the-
oretical underpinning of the subject. As a consequence it has been reactive
rather than proactive, open to colonization by marauding theoretical hordes
and changing agendas, often driven by outside forces. This situation has
also been compounded by the fact that the links between theory and practice
have also been weak. Rarely has the traditional academic community of UK
public administration or the ideas it developed been sought out by prac-
titioners as offering useful guides to practice or reform. This state of affairs,
charted by Hogwood (1995) elsewhere in this volume, has also been com-
mented on recently by the current head of the UK Home Civil Service
(Butler, 1992).
It can be argued that the rise of public management as a threat to the
study of public administration can be traced to the late 1960s and early
1970s, a period charted by Rhodes (1996) as an age of eclecticism. This
period undoubtedly was characterized by the efforts of many academics to
strengthen the analysis of UK central and local administration through the
application of decision making and organization theory anid the develop-
ment of policy analysis and policy studies (Hogwood, 1995). These efforts
went hand in hand with reforms in the practitioner community that focused
on corporate or strategic planning in local government and the National
Health Service, rational techniques of budgetary reform and an increased
emphasis on the strategic management of the public services. Such reforms
were championed on both the left of the political spectrum (the Fabians)
and the right (Conservative Research Department). Although their objec-
tives differed (better service delivery vs. a smaller state), the argument that
the state was badly managed was common. Moreover, the arguments were
often found in ofcial reports such as that by the Fulton Committee on the
Civil Service (Cmnd 3638, 1968) and others on local government and the
welfare services. Yet, these reform efforts rarely questioned the fundamental
548 ANDREW GRAY AND BILL JENKINS
political theory of the role of the state in modern life (Dunleavy & OLeary,
1987). The debate engendered is complex and detailed but for the sake of
simplicity can be seen to range from the conservative call for a smaller state
through the socialist demand for a more responsive state to more radical
demands for a more empowering state where real power is devolved to
lower-level organizations and citizens (Hambleton, 1992). The importance
of distinguishing between such visions (and they appear in other shades and
combinations) is that they represent different ideological positions and sets
of values (Hood, 1991). Thus, while reform strategies appear similar they
may represent different political stances, i.e., such strategies are not neutral
(see below).
Linked with this ideological analysis is a theoretical onslaught on tradi-
tional public administration, led principally by economists and management
scientists, aided and abetted by practitioners of personnel management (now
termed human resource management) and by those who argue more gene-
rally that the arts of private sector management should be transposed to the
public sector in the name of improving efciency. If none of this is new
(Rhodes, 1996), it is now an integrated and sustained attack on what is
perceived as the failure of traditional government and public administra-
tion. Moreover, this intellectual baggage (or selected elements of it) has been
harnessed by many political actors as a means to promulgate and fashion
their ideological vision of the state (Pollitt, 1990).
As a consequence of the latter, the new public management is often used
to redene politics rather than simply improve state management within
current structures. This approach is illustrated by the work of think tanks
such as the Institute of Economic Affairs (IEA) and the Adam Smith In-
stitute. In contrast, economic analysis that has focused on the nature of the
state as a mechanism for service provision and delivery may simply and less
radically seek to improve the relative efciency of its operations. Hence,
as venous writers have pointed out (Taylor-Gooby & Lawson, 1993a;
Le Grand, 1990, 1993; Levacic, 1993), questions can be raised on failings
arising from the monopolistic nature of state provision and co-ordination of
activities. Solutions to such problems include creating markets, charging
for services, liberalizing administrative regimes and even privatizing
(Heald, 1983; Vickers & Yarrow, 1988). In separate but related critiques,
management accountants have characterized traditional systems as lacking
accountability for resource use and contributing to inefciency. They
have proposed delegated nancial management to remedy this and re-
organize institutional budgeting (Hopwood & Tompkins, 1984). Meanwhile,
the motivation and incentive systems of traditional public organizations
550 ANDREW GRAY AND BILL JENKINS
(incremental pay scales, career systems, job security) have also been at-
tacked and reforms advocated which focus on performance-related reward
systems and management against targets (even in the British Higher Civil
Service, Cm 2627, 1994, pp. 4445).
Hence, for its advocates, public management represents less an addition
to the traditional practice of public administration in the UK than the
intellectual and practical means to achieve true cultural change by which
the old internal order is swept away (Dunsire, 1995). This coming together
of political ideology, economic theory and perspectives from private sector
management lie behind the last decade of change in the UK public sector
and include the mission to eliminate waste (Hennessy, 1989; Metcalfe &
Richards, 1990), introduce delegated nancial management (Gray &
Jenkins, 1991, 1993a), develop performance measurement (Carter, 1991)
and create executive agencies (Davies & Willman, 1991), citizens charters
and regimes of market testing (Connolly, McKeown, & Milligan-Byrne,
1994; Doern, 1993). Thus, the Head of the UK Civil Service, Sir Robin
Butler (1992, 1993) and the former Civil Service Minster (Waldegrave, 1993)
can talk of an administrative revolution involving the federalization of cen-
tral government administrative structures.
Yet does this emergence of public management represent the development
of a new paradigm in either theory or practice? Undoubtedly its rhetoric
suggests so and its advocates champion change over stability. However, as a
commentator on recent US reforms points out
To say that we are living in a rapidly changing world is simply to recite a truism under
the guise of intellectual insight. Change is an instrumental value and like efciency,
another instrumental value, has no normative content until linked with another concept
or objective. What we need today therefore is to think what we really expect from our
government (Moe, 1994, p. 119).
1988). The validity of this position can and should be questioned (see
below).
The new public management has brought with it a new epistemology, a
redefinition of accountability and a fresh batch of seers. The issue of epis-
temology is dealt with by Dunsire (1995) elsewhere in this volume. It is
worth emphasizing, however, that a focus on cost, price, market, customer
and similar terms constitutes not simply a relabelling as an introduction of
different (and often dominant) values into the dialogue of public admini-
stration. This is often at the expense of professional groups (and their own
languages) who in the past controlled particular areas of administrative life
(for example, education, health, housing) (Richards, 1992). Indeed, the
thrust of the reform agenda is almost unhesitatingly hostile to the values of
traditional public sector professionals. Yet the outcome of such changes has
often not been so much the de-professionalization of administrative life as
the superimposition of a new management cadre over established profes-
sional groups, thus redening the internal and external politics of admin-
istrative organizations.
The reconceptualization of accountability is based on this epistemology as
well as on the dictates of what has been termed the new managerialism
(Pollitt, 1990). Thus, in a decentralized, target-driven world of public
management, responsibility and performance are often redened in indi-
vidualistic ways driven by particular conceptions of terms such as efciency,
effectiveness and quality that reect the beliefs and values of the new faith
(Jackson, 1993; Likierman, 1993). Moreover, faith is not too strong a word
to describe public management and its growth. Many of its advocates are
dearly true believers in the power and sanctity of markets or the ability of
other nostrums to rescue what they perceive as the theoretically weak and
misconceived eld of public administration. They would replace the tradi-
tional emphasis on public administration by commitments to excellence,
quality, exibility, responsiveness and mission.
The consequences of these developments for the study of British public
administration have included the redening, isolating or relocating the study
of public administration as public management, the drawing of a number of
new actors into the area and the restructuring of the relevant literature. The
location of public management studies is increasingly, therefore, not tra-
ditional university departments of political science but business schools
(e.g., London, Aston, Warwick), dedicated research institutes (e.g., Institute
of Local Government Studies, School of Advanced Urban Studies), various
professional bodies that attempt to link the world of theory, practice and
consultancy (The Public Management Foundation and Public Finance
552 ANDREW GRAY AND BILL JENKINS
Foundation) and even various polemical think tanks (Adam Smith Insti-
tute, European Policy Forum, institute for Economic Affairs, Institute for
Public Policy Studies). These organizations vary widely but they often share
an approach and perspective that differ radically from organizations that
supported public administration in a more traditional sense (e.g., the former
Royal Institute of Public Administration). Many also promote a literature
that has its own distinctive signature and focus while traditional journals
have grafted on public management sections to stimulate practitioner in-
terest (e.g., Public Administration), or adjusted their content to reect
changing concerns in specic professional areas (Local Government Studies,
Policy and Politics). Practitioner journals have, of necessity, followed man-
agement trends if selectively (The Health Services Journal, Local Government
Chronicle and Public Finance (formerly Public Finance and Accountancy).
But how far do all these developments represent the development of a
unique area different from traditional public administration? Has the con-
text and content of the eld of study simply changed or is public manage-
ment an area with distinct characteristics from public administration? Such
questions are less academic quibbles as prerequisite enquiries in under-
standing the logic of recent developments and assessing the current study
and practice of public management. Public administration is based on an
acceptance of a political model of parliamentary government and a profes-
sional and essentially bureaucratic model of state structures and operations.
Neither its alleged failures nor the superiority of alternative administrative
arrangements should be taken for granted, especially when arguments are
expressed in apolitical terms. What is important about the theory and prac-
tice of traditional public administration is the value system embraced and
served. What we need to know of public management and its new agenda
are its values and basic assumptions. With this in mind we proceed to an
examination of some of the developments in both the theory and practice of
public management.
more specialistic, dealing with recent reforms in areas such as health care
(Harrison, Hunter, & Pollitt, 1990), the welfare services (Taylor-Cooby &
Lawson, 1993b) or local government (Walsh, 1989). Much of this offers
incisive analysis of recent public sector reforms and changes many of which,
if not all, have been driven by a mission to change the structures of public
sector organizations and reshape relationships with the political world on
the one hand and the public on the other.
Within all the above has been a common concern with organizational
structures. This has been a traditional issue for the study of public admini-
stration for decades (Self, 1972; Dunsire, 1973, 1995) although, as Rhodes
(1996) illustrates, theoretical concerns with structural reform (e.g., as in
classical management theory) initially had limited impact. However, in the
1960s and 1970s an interest in organization theory, policy analysis and
management attempted to refocus the study of public administration on
such issues as structures for strategic planning, policy implementation and
policy co-ordination. In addition, the concern with strategic nancial man-
agement (as reected in such innovations as planning programming bud-
geting (PPB)) also had a structural emphasis in its attempts to refocus and
integrate hierarchical organizational structures (e.g., via corporate plan-
ning). The practical expression of these concerns in this period were giant
merged Whitehall departments, mechanisms of corporate review (e.g., the
Central Policy Review Staff), local government reorganization, social
service departments and the restructuring of the National Health Service.
Undoubtedly, many of these reforms were driven by a technocratic agenda,
based on ideas of rational decision making and the perceived inefciencies
of political structures (e.g., failures to dene goals, or to evaluate options,
etc.). Nevertheless, within the conventional study and practice of public
administration the role of the state was rarely questioned, a minority task
undertaken only by those of more radical (usually left wing) persuasion
(Ham & Hill, 1993).
In the late 1970s and throughout the 1980s, however, these consensus
approaches were ferociously attacked for their theoretical weakness and
practical failures. In their place came an emphasis on markets, exible and
responsive organizations and decentralization. In the lexicon of public sec-
tor studies the word management began to usurp administration.
Even if the evidence for discrediting the ideas of traditional administra-
tion and the values underpinning the so-called bureaucratic paradigm
(Kernaghan, 1993; Osborne & Gaebler, 1993) seems often more assumed
than demonstrated (Jordan, 1994), the attack which emerged from the
Chicago School of Political economy (e.g., Friedman), the Austrian School
554 ANDREW GRAY AND BILL JENKINS
may emerge from different ideological positions and value sets, each leading
to different frameworks of analysis and offering differing structural solu-
tions. Public management theory is therefore neither coherent nor neutral,
rather, it represents a different political perspective not only on the structure
and functioning of public organizations but also on the political basis of the
pubic sector itself.
In its most radical form the difference between the public management
agenda for the structuring of public sector organizations and that of tra-
ditional public administration begins with the assumption that the current
political system is inefcient. Further, what has previously been positively
valued (e.g., bureaucratic routines and professional codes of conduct) are
assessed as costs rather than as benets. This analysis is also transposed to
networks of organizations (better fragmented) as well as to internal struc-
tures (better individualized and destabilized). Thus, efciency is valued over
accountability and responsiveness over due process.
This perspective undoubtedly has it strengths but it is also based on a
universal and neo-managerial view of government and its processes. We
now turn to discuss some of these, notably the recent emphasis on nance
and performance management as well as the focus on quality and entre-
preneurship.
Committees Report into the Civil Service, some support for improved
accounting and management techniques promulgated by enthusiasts such
as Garrett (1972). Some, but not all of this, appeared on the political
agenda as experiments in programme budgeting and evaluation but few of
these reforms were long lived. Instead, as big governments faced hard
times (Hood & Wright, 1981) from the early 1970s, the prevailing eco-
nomic voices that gained political attention in the UK were writers such as
Bacon and Eltis (1976), US public choice economists such as Buchanan,
Downs and Niskanan, and emerging think tanks such as the Adam
Smith Institute and the Centre for Policy Studies. These were to change the
political agenda and focus, aided by populist voices which claimed that
nancial management in the public sector was characterized by waste and
inefciency (Chapman, 1978).
Faced with deepening crises of public expenditure the prime policy goal of
government in the UK and elsewhere became the control of public nances.
The importance of this cannot be over-estimated both in terms of the in-
ternal management techniques called upon to serve this objective and of the
regimes of personnel management that accompanied it. In brief, between the
late 1970s and early 1980s there was a conscious shift of political emphasis
from the management of policy to nancial control and a search for mech-
anisms to serve this end. Practical developments such as delegated nancial
management and individualized personnel management systems therefore
represent strategies developed to support a particular set of political values
and agenda. Further, the theories deemed necessary to service this agenda
were those of management accounting and nance rather than any iden-
tiable sub-discipline of traditional public administration.
In the practice of public management, the 1980s and 1990s have become
the age of the nancial manager. Accounting, budgeting and auditing have
dominated the discourse about the delivery of public services and changed
the language and rules of resource allocation in areas as diverse as educa-
tion, health, and policing both in the UK and overseas (Cothran, 1993;
Gray Jenkins, & Segsworth, 1993b; Schick, 1990). The theoretical literature
used to legitimize this transformation has been drawn frequently from the
elds of academic accounting and, to a lesser extent, the work of economists
interested in the public sector and public management processes (Jackson,
1982; Hopwood & Tomkins, 1984). This has also been aided by the emer-
gence and development of bodies such as the National Audit Ofce in cen-
tral government and the Audit Commission in local government (and now
the National Health Service), bodies who in their staffing and focus have
reached beyond the traditional role of audit to value for money studies.
From Public Administration to Public Management 559
The period has also seen the publication of new journals such as Financial
Accountability and Management, Accounting, Auditing and Accountability
and Public Finance, a publication of the CIPFA, which is also involved with
Public Money and Management and, through its research arm the Public
Finance Foundation (PFF).
The most significant practical impact of these changes has been the
emergence of accountable management and regimes of performance meas-
urement. Even if dening accountable management precisely has its dif-
culties, it is clearly based on a management accounting theory that
commends the decentralizing of responsibility for resource use within or-
ganizations by identifying individuals and holding them responsible for
budgets and performance (Gray, Jenkins, Flynn, & Rutherford, 1991).
Backed up by the development of information systems to enhance top
management control, accountable management is therefore concerned with
the economics of public sector delivery (Humphrey, Miller, & Scapens,
1993, pp. 1415) and aims to change the nature of public sector management
processes. It is also, in the view of some of its academic advocates, a way of
liberating managers from over rigorous central controls. Hence entrepre-
neurial budgeting (Cothran, 1993) is seen as a device where budget holders
can use resources in a creative and innovative way to serve their needs
within accepted limits of accountability.
Such logic lies behind a host of recent reforms (e.g., local nancial
management of schools, general practitioner fund holders) and links with
some of the centralization initiatives discussed above and which have been
subject to critical debate, including in the accounting community (Andrew
& Bill, 1993). Moreover, it also underpins the conception of a results
driven organization that can measure its performance. Two different issues
are involved here, the nature of performance measurement and its related
reward systems. The issue of performance measurement is far from new in
either the theory or practice of public administration, having been central
to earlier discussions of policy evaluation (Hogwood & Gunn, 1984), as
well as featuring in debates on successive innovations such as costbenet
analysis (CBA), planning programming budgeting (PPB), zero-based bud-
geting (ZBB) and management by objectives (MBO). In terms of current
fashions, the last of these is of greatest interest. Once rejected, MBO now
appears to have gained a new lease of life on the coat-tails of accountable
management. Thus, systems of budgets managed against negotiated targets
appear to be an MBO in all but name. However, in this current guise, more
grandiose ideas of effectiveness measures (a feature of reform movements
such as PPB) appear to have been abandoned in favour of target systems
560 ANDREW GRAY AND BILL JENKINS
that assume the sanctity of higher level values and goals (i.e., fundamental
questions are rarely asked of goals).
In a similar way, the growing literature on performance measurement
appears to play out old debates in a new arena. How can effectiveness be
measured and performance assessed in a world of ambiguous or conicting
objectives. Does the easy to measure drive out the more difcult. Indeed,
the emphasis on measurement, performance and cost has been one of the
prime causes of the labeling of this nancial focus of public management
theory and practice as managerialism and neo-Taylorism and criticized
accordingly (Pollitt, 1990). However, as Flynn (1993, Chapter 8) also points
out, performance cannot be ignored and, if any organization is to learn and
progress, mechanisms for assessing performance at different levels and dif-
ferent ways are necessary. This is clearly the position of writers such as
Jackson (1993) and Carter (1989, 1991, 1992) who make a strong case for
the development of performance measures and indicators while noting the
difculties in developing such systems in the public sector (recognized also
by Pollitt, 1986, 1988 and Likierman, 1993).
Meanwhile, in government itself, more robust systems of performance
measurement have been promoted by the Treasury (1992) and by the Audit
Commission (1988). In the eyes of current gurus such as Osborne and
Gaebler (1993), this focus on performance is crucial if one is to develop a
results-driven government that learns from its mistakes (Chapter 5). They
also argue that such a perspective is absent from bureaucratic government
that focuses on inputs rather than outputs. Yet reforms such as programme
analysis and review (PAR) and PPB were all output orientated, they failed
not because of the weaknesses of bureaucratic government but because they
did not gel with the political values that shaped administrative structures
and behaviour.
Similar problems also arise in terms of the development of new personnel
regimes to match the new delegated and resource-driven culture. Personnel
management in local government and the National Health Service, for ex-
ample, has traditionally drawn on an institutional literature that focuses on
the development of professional groups and service conditions dominated
by central pay bargaining mechanisms and professional career and reward
structures (Poole, 1978). However, both these professionally based systems
in local government and the career structures of central government have
been neglected areas in the literature of traditional public administration.
Nor has the latter drawn extensively on the literatures of disciplines such as
organizational sociology and psychology.
From Public Administration to Public Management 561
This picture, however, has now dramatically changed not least since the
achievement of a political vision of a public sector based on fragmented
nancial structures and a contract culture is deemed to require the disman-
tling and federalizing of professional and occupational groups. Hence, the
practical agenda of public management includes a vision of personnel man-
agement dominated by contracts and performance-related reward schemes
and the opening-up of appointment systems to both public and private
sector candidates. The practical face of this agenda can be seen, for example,
in recent reform proposals for the UK police service (Cm 2280, 1993), the
Higher Civil Service (Cm 2627, 1994) and more generally for the public
sector (Cm 1730, 1991).
Given its current fashionable status, one might have expected a sub-
stantial empirically based literature on the merits or otherwise of perform-
ance-related reward systems. Such evidence, however, appears at best
limited both at home and abroad. In a recent review, for example, Ingra-
ham (1993) notes that the diffusion of pay-for-performance has been based
less on careful analysis and evaluation than on a perception of success in
other settings, informal communication among bureaucratic and elected
decision makers and perhaps wishful thinking (p. 348). Ingraham (1993)
goes on to note the fact that reviews of the effects of performance-related
pay in the US (commissioned by the Ofce of Personnel Management) and
by bodies such as the Organization for Economic Co-operation and Deve-
lopment (OECD) demonstrate that many of the assumptions held about
the effectiveness of performance-related reward systems appear to have
little empirical foundation. The author then concludes that what is required
is an assessment of what systems public organizations need rather than
what private organizations do. This should involve integrating such inno-
vations closely into other reforms and into the reality of public sector work
(pp. 354355).
Such reservations, echoed by inquiries in the UK by research bodies such
as The Institute of Manpower Studies, indicate the tenuous theoretical basis
on which some of the practice of the new public management is based or, in
a different way, the selective use of particular literatures to sustain a prac-
tical political agenda. This, in turn, is characterized by paradoxes in which
liberated managers (a feature of theory of accountable management) nd
themselves facing new constraints (e.g., chief executives in Next Steps agen-
cies (Dopson, 1993)), a feature commented on by an astonished David
Osborne (of Osborne and Gaebler fame) in a recent visit to the UK (Local
Government Chronicle, 1993).
562 ANDREW GRAY AND BILL JENKINS
old to a new world. The central point of interest of the Kuhnian vision of a
paradigm shift is that it represents a discontinuity rather than a continuity in
value systems. Our contention is less that a paradigm shift has taken place
but rather that competing visions exist that in many ways remain separate
and distinct. Whether they can be drawn together is an issue we now address
in the conclusion.
CONCLUSIONS
Over two decades ago, Ridley (1972) wrote that there was cause for dis-
content in the subject public administration. It is reasonable to ask, he
observed
whether progress in the eld of public administration is more likely to come in response
to a demand from administrators or whether demand itself depends on the existence of a
recognized subject. If administrators are to ask for more than instruction in a miscel-
laneous bag of techniques, if they are to ask for something actually called public ad-
ministration, they must surely rst see the existence of an integrated discipline clearly
different from other disciplines which between them offer the miscellaneous techniques
they currently study (p. 68, emphasis in original).
At the time of Ridleys comments, public administration was still the pre-
serve largely of political science and constitutional law. It had enjoyed an
opportunity to use these disciplines to forge a clearly dened and at least
interdisciplinary subject with its own territories and conceptual and meth-
odological framework. Yet neither before nor since have those in the posi-
tions of academic leadership sought to seize this opportunity. It will not
return. Yet in some ways this may not matter as both traditional public
administration and public management may never be more than a foci for
study in which a variety of disciplines make a contribution. It may thus be
more important to seek ways in which these elds can be integrated rather
than remain as mutually exclusive areas occupied by different academic
communities with differing theoretical values and prescriptions.
The need for such a move may be urgent since in terms of practice, the
advance of public management may be unstoppable. As Prior (1993) has
observed
It is arguable that the fundamental change that has occurred in the public sector is not
the replacement of one broadly uniform set of arrangements with another uniform set,
but the fracturing of the public sector into a plethora of different sets of arrangements
with few common features. It is then questionable whether the term public sector is any
longer useful as a generic analytical concept (p. 459).
From Public Administration to Public Management 565
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