Can Politics Trump Managerialism?

During World War II Germany and Japan were fighting against the production methodology of Ford and General Motors. This was the modern form of the economic corporation constructed by loosely tied and decentralised managerial units. Central to managerialism is accountability - something that politics, for its own selfish reasons, tries to step outside.

Organisational technologies are not new: empires in the past have had to innovate in this area to maximise the efficiencies under new burdens of materials, capital and military forces. Bureaucracy, for instance, grew out of the need for Britain to manage its capital intensive and resource gulping Royal Navy.

More recently Statistical Process Control [SPC] as a management technique, usually applied under the banner of Total Quality Management [TQM], has enabled production to become entirely unrelated to geography, labor laws and culture. SPC has made globalisation a reality. It is an American technology, which ironically, was ignored by American companies. Japanese industry took to the technology with zeal.

Managerialism often carries a bad name for process for the sake of it - especially in technical industries where managerial specialists make managerial decisions without any technical background. These are valid concerns. However the benefits of small groups of performance oriented and accountable units makes large organisations possible. Done well it can improve their efficiency.

In terms of large organisations - government is one of the biggest. Australian government has changed to managerial concepts which are focused on outcomes and service delivery. Allan Gyngell and Michael Wesley wrote that one of the changes in the foreign policy bureaucracy has been to managerial concepts of performance. The Department of Foreign Affairs (now DFAT) used to be highly bureaucratic due to its specialised workforce.

One of the problems with politics is that it avoid accountability in the world of managerialism. The politicians enforce managerial accountability, then divorce themselves from being the necessary centralised arbiter of performance. This has been a constant component of modern politics which unanchors managerialism from its most useful attributes.

Australia has had many examples of politicians avoiding their managerial role as heads of ministry - often using political advisors as the point of disconnect between a managerial based civil service and a political based policy of hear no evil, see no evil - the Tampa Affair, the AWB scandal to name two large ones. This makes managerialism headless and defeats the purpose of that organisational technology.

I was interested to see that the US Army Secretary resigned over the Walter Reed scandal which was exposed by journalists. This is a good example of managerial accountability, though, true to politics, it suggests that either the managerial process was headless or faulty - as the poor performance and condition of the hospital would have been brought to light by good and accountable managerial processes.

Politics played its part in the resignation of the Army Secretary. One: the management of the hospital was in opposition to the political message of the Bush Administration. Not their managerial directive, but their political message.

Two: It tried to avoid the lack of accountability in the managerial process by blaming outwardly, "Two articles in your paper have ruined the career of General Weightman, who is a very decent man, and then a captain . . . and the secretary of the Army. If that satisfies the populace, maybe this will stop further dismissals." That sentence is in total opposition to the concepts of managerialism and accountability at the top of each managerial unit.

In government the ultimate managerial unit is the ministry. Without managerial accountability and responsibility being taken by ministers - who in Australia are representatives - then the whole purpose of managerialism as an organisational technology is meaningless, headless and without purpose. If politicians are going to avoid managerial accountability then we may as well go back to bureaucracy and have the departments purely staffed with specialists.

cam
adam: Bureaucracy: It\'s older than that. It was invented to deal with the complexity of agrarian empires spread over a large area. The British civil service was informed by the Chinese tradition, particularly the meritocratic elements.

One of the oldest examples of a merit-based civil service is the Imperial bureaucracy of China which can be traced back as far back as the Qin dynasty. In the areas of administration, especially in the military, appointments would be based solely on merit. After the fall of the Qin dynasty, the Chinese bureaucracy would regress into a semi-merit system known as the Nine-rank system. However, the eventual Tang dynasty would decreasingly rely less on aristocratic recommendations and more and more upon promotion based on written examinations. The Chinese civil service became known to Europe in the mid-18th century, and influenced the development of European and American systems. (Bodde 2005)

Ironically, and in part due to Chinese influence, the first European civil service was not set up in Europe, but rather in India by the East India Company, distinguishing its civil servants from its military servants. In order to prevent corruption and favouritism, promotions within the company were based on examinations. The system then spread to the United Kingdom in 1854, and to the United States with the Pendleton Civil Service Act.

wk

I don\'t know about Ford being a stellar example of devolved decision making either. Seems to me that it was strict central command and control methods that allowed them to get the economies of scale that are so crucial to mass industrial manufacturing. You could have any colour of Model T Ford, so long as it was black. Basically they found highly effective ways to get their workforce to behave like robots.

It\'s in industries which don\'t have these economies of scale, or involve lots of local variation, that decentralised decision making is crucial.

I believe it has been argued that German commanders were more effective in the field precisely because of their autonomy of action. Actually, on an aside, do you know why there were so many German military advisers around the world in the late 19th and early twentieth century? Turkey, China, Russia ... they all seemed to have German military advisors working for them, with and without the consent of the German government.
cam: Rather than 1912 Ford: I was thinking 1943 Ford and General Motors. The modern form of corporatism (and even the mingling of government and big corporate interests as being the one and same) in western liberalism was at its zenith in WWII and the 1950s. I don\'t know who said, an American Senator?, that what was good for GM was good for America.

Gyngell and Wesley argue that the first bureaucracy was France\'s foreign affairs department, though it was the brother (IIRC) of the head of the Royal Navy\'s Admiralty that formalised bureaucracy as a philosophy in England. But yeh I agree, I am often heavily tainted by the western writing of history and achievement ... :)

On the decentralised issue in the military, one of the reasons the AIF in WWI over-achieved was the same reason as for the Germans. The soldiers would get told the strategic objectives, so if they lost a leader or an officer, it didn\'t halt the achievement of the objectives. The British units in contrast (though not all) were top down driven and didn\'t share the same level of information to corporals and privates. For whatever reason, mostly cultural IMO, the Australians didn\'t have that problem.

cam

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