Managerialism

Managerialism
See also
Contingency approach Management system Management theory Strategic project management Social economy Centralized management Enabling technology Socio-cultural environment Strategic fit

Managerialism is a prominent theory within public administration that has been used to explain the management of public organizations. It is a belief that a bureaucracy should be run like a business, and that the most effective way to do so is to appoint an experienced executive with the authority to make decisions, hire and fire personnel, and manage the organization's finances. At its core, managerialism emphasizes the importance of managerial authority and expertise to the success of public organizations.

• Managerialism emphasizes efficiency in public organizations by appointing an experienced executive with the authority to make decisions.
• It suggests that public organizations should be managed like a business, with an emphasis on cost-effectiveness and minimizing waste.
• It promotes the use of quantitative methods to measure performance, such as cost-benefit analysis and performance metrics.
• It advocates for the use of technology to increase efficiency and reduce bureaucracy.
• It encourages the use of incentives to motivate personnel, such as merit-based pay and other forms of recognition.

By emphasizing managerial authority, expertise, efficiency, and technology, managerialism is an important theory in public administration that has helped shape the management of public organizations.

Example of Managerialism

An example of managerialism in action is the recent reform of the California Department of Motor Vehicles (DMV). In 2019, the Governor of California appointed a new executive to take over the DMV and implement a series of reforms. These reforms included new performance metrics to measure the DMV’s efficiency, the use of technology to reduce bureaucracy, and the adoption of a merit-based pay system for DMV personnel. These changes were implemented in an effort to make the DMV more efficient and cost-effective, and to reduce long wait times for customers. This example highlights how managerialism can be used to reform and improve public organizations.

When to use Managerialism

Managerialism should be used when public organizations want to increase efficiency, reduce bureaucracy, and improve performance. It is particularly useful when there is a need to streamline processes and reduce costs, as well as when the organization needs to become more competitive or adopt a more business-like approach. Managerialism also offers an effective way to motivate personnel and set performance targets. Additionally, it can be used to introduce new technologies or methods to improve efficiency and effectiveness.

Managerialism can be particularly effective when used in combination with other theories, such as New Public Management. This approach combines elements of managerialism with other approaches, such as decentralization, citizen participation, and public-private partnerships. By combining different approaches, public organizations can benefit from a more holistic approach to management.

Types of Managerialism

Managerialism is an expansive ideology that has many different forms and interpretations. For example, there are two main types of managerialism: the traditional and the modern.

• Traditional managerialism is focused on the organization as a hierarchical structure with a clear division of labor and authority. It emphasizes rules and regulations, bureaucracy, and a top-down approach to management.
• Modern managerialism is concerned with flexibility, responsiveness, and adaptability. It promotes the use of decentralized decision-making and collaboration, as well as the use of technology to increase efficiency.

Managerialism is a complex ideology that encompasses many different aspects of public administration, from hierarchical structures to decentralized decision-making. It has helped shape public organizations in many ways, emphasizing the importance of managerial authority, expertise, efficiency, and technology.

Steps of Managerialism

Managerialism consists of five core steps in order to successfully manage a bureaucracy: planning, organizing, directing, controlling, and evaluating.

• Planning involves the creation of a strategy to achieve organizational objectives and the identification of resources needed to do so.
• Organizing involves the allocation of resources and personnel to implement the plan.
• Directing involves the management of personnel to ensure the successful implementation of the plan.
• Controlling involves the monitoring of progress and the implementation of corrective action when necessary.
• Evaluating involves the assessment of the success of the plan and the identification of areas for improvement.

By following these five steps, an organization can effectively manage a bureaucracy using the principles of managerialism.

Advantages of Managerialism

The advantages of managerialism are numerous, as it offers an effective way to manage public organizations.

• Managerialism allows for efficient decision-making and reduces bureaucracy by appointing an experienced executive with the authority to make decisions.
• It focuses on cost-effectiveness and minimizing waste, which helps public organizations remain financially viable.
• It encourages the use of quantitative methods to measure performance, such as cost-benefit analysis and performance metrics, which helps to ensure that the organization is achieving its goals.
• It promotes the use of technology to increase efficiency and reduce bureaucracy, which can save time and money.
• It encourages the use of incentives to motivate personnel, such as merit-based pay and other forms of recognition, which can lead to increased productivity.

Limitations of Managerialism

While managerialism has been an important theory of public administration, it has been criticized for its limitations in certain areas.

• Managerialism has been criticized for its emphasis on efficiency and cost-effectiveness, which can lead to a focus on short-term solutions instead of long-term, systemic solutions.
• It has been argued that managerialism fails to account for the political and bureaucratic dynamics that can affect the success of public organizations.
• It has also been criticized for its emphasis on quantitative methods, which can lead to a lack of attention to qualitative factors, such as public opinion, social values, and legal constraints.
• Its reliance on technology can lead to a lack of understanding of human behavior, which can be difficult to measure and quantify.

Other approaches related to Managerialism

In addition to managerialism, other prominent theories in public administration include New Public Management (NPM), the Efficiency Movement, and the Political Model.

• New Public Management (NPM) is a theory that emphasizes the use of privatization and market-based solutions to improve efficiency and effectiveness in public organizations. It suggests that public organizations should be more responsive to the public and that they should prioritize customer service.
• The Efficiency Movement is a theory that emphasizes efficiency in public organizations by focusing on cost-effectiveness and minimizing waste. It promotes the use of quantitative methods to measure performance and encourages the use of technology to increase efficiency and reduce bureaucracy.
• The Political Model is a theory that looks at the relationship between politics and public administration. It suggests that the political environment should be taken into account when making decisions about public policy and that the public should be involved in the decision-making process.

These theories are all closely related to managerialism and emphasize the importance of efficiency, technology, and customer service in public organizations. Together, they provide a comprehensive view of public administration and help shape the way public organizations are managed.

Suggested literature

• Maor, M. (1999). The paradox of managerialism. Public administration review, 5-18.