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Classical Theories of Bureaucracy:

Background to Public bureaucracy :
State and bureaucracy:
Karl Marx:
Marx's reaction to Hegel's analysis of state and civil society
His theory of class conflict in capitalist society and the advent of communism.
His views of state and bureaucracy
Bureaucracy and alienation
Withering away of the state and bureaucracy.
Critique and Evaluation
Depicting Bureaucracy both as a servant of the ruling class and as an autonomous and powerful
institution in its own right.
The ambiguity associated with the relative autonomy of the state
Gaetano Mosca:
Society, classes and the forms of state bureaucracy
Minority rules Majority
Ruling class does not need to rule by brute force
Intra-class conflict and ensuing rotation of ruling class
Forms of state: feudal and bureaucratic
Robert Michels:
,Bureaucracy is inevitable in modern state
tools for political domination of the ruling class
Resistance to changes demanded by the general populace
Bureaucracy undermines democratic institutions.
Iron law of oligarchy;
Large scale organizations are necessarily oligarchic.
In large scale organization, power is concentrated at the top of organizations and is wielded in a
dictatorial manner,
Due to the following interrelated Reasons:
size
complexity
efficiency in decision making
need for expertise
information and communication
political and leadership skill
The quest for continuity
Apathy
Vested interest in power
Max Weber:
Has had a major influence on the study of bureaucracy and organization
To him: Bureaucracy is rational, efficient and a logical approach to organization:

Weber related bureaucracy to his analysis of three sources of authority distinguished by

their claim to legitimacy:
Three types of authority
Traditional,
Charismatic
Legal
Main features of his ideal type:
1- Hierarchical structure
2- Unity of command
3-Specilization of labour
4- Employment /promotion based on merit
5- Tenure of employment
6-Decisions based on impersonal rules
7- Importance of written files and recording
8-separation of position from individual occupying that position
9- Bureaucracy frequently has a non-bureaucratic head
Rise of Bureaucracy: Weber's explanation for the rise and inevitability of bureaucracy as a
form of all organizations in modern society.
The creation of money
The emergence of capitalist economy
The emerging trends toward rationality in western world
Democracy
Growth of European population
The emergence of complex administration problems
The modern form of communication
The effects of Bureaucracy on individuals and society:
Individuals : "cogs in machine. . specialists without spirit and sensualists without heart"
society: permeation of society with bureaucratic values and thought. people become obsessed
with order.

Week 7: Budgets and Financial Management in the Public Service

The Budgetary process: Preparation, adoption and execution
Establishing budget is the most difficult task of government:
an ideal budget must at least address three Objectives:
1-setting macro-economic policy
2-influencing behvaiour at a more micro-level
3- Raising the resources needed to fund expenditure
Preparation: The Actors
Revenue side (the prime minister and the finance minister aided by relevant agencies)
Factors that shape budgetary process: public pressures, health of the economy, ideological
orientation of government, electoral calculation (political business cycle) and external
constraints.
Adoption: Parliamentary approval
Expenditure side (other ministers have some latitude for input and influence)
An ideal budgeting should serve three purposes:
Control
Management
Planning and policy choice:
Types of financial management: Approaches to expenditure budgeting in Canada
1- Line-item budgeting or Budgetary incrementalism: strengths and weaknesses
2- Performance budgeting: positive and negative aspects
3- Budgetary rationalism: Planning, programming and budgeting system (PPBS): strengths and
weaknesses
4- Policy, Expenditure Management System (PEMS):

5- The Expenditure Management System (EMS):

6- The Expenditure Management Information System (EMIS)
Spenders/ Guardians: who are they? is there a game?
Spenders: tactics used by spenders
padding the budget/Inflate the budget
Mobilization of constituency interest groups
Crisis initiative
The thin edge of the wedge
Kill the friendly giant
Spend now save later
The Fire truck First
Guardians: tactics used by Guardians
Set the rules
Demand documentation;
Broad consultation and investigation
Know the opponent
Just say no
Financial management: auditing
From Attest and compliance auditing to comprehensive auditing
Internal: Departmental auditing
External; office of the Auditor general and Public Accounts Committee
1-Main functions and scope of responsibilities of the Auditor General are;
2-Public Accounts Committee: characteristics and functions: Reviewing and analyzing the
AGs report to parliament
3- Parliamentary Budget Officer
Auditing the audit
Questions and Discussion