Chapter 5 - Management

Question 1

Define NPM

Answer 1

New Public Management is where the public sector mimics the private sector and places more emphasis on results than on traditional procedural compliance

Question 2

Define separation of ownership and control

Answer 2

Ownership = shareholders
Control = management

Agency theory attempts to align the two

Question 3

Describe the management hegemony thesis

Answer 3

Management have more power than shareholders

Question 4

Name two types of Corporate ownership and control

Answer 4

1. Anglo-Saxon (Outsider)

2. European-Continental (Insider)

Question 5

Contrast the Anglo-Saxon and European-Continental Corporate ownership and control models

Answer 5

EC is a community of people rather than a property of shareholders

1. High Institutional share ownership in AS vs Interlinked network of shareholders in EC
2. AS focused on short-term financial goals vs EC focus on long-term performance
3. AS high internal monitoring vs EC less developed stock market

Question 6

Name the 4 types on managerial control strategies

Answer 6

1. Personalised
2. Technical
3. Bureaucratic
4. Commitment

Question 7

Describe personalised managerial control

Answer 7

Direct control by supervisors. Very Taylorism.

Question 8

Describe Technical managerial control.

Answer 8

Using systems of work to restrict and specialise workers

Question 9

Describe bureaucratic managerial control

Answer 9

Use of policy and levels of authority within systems

Question 10

Describe commitment managerial control

Answer 10

Aligning employee-employer interests to promote positive discretionary effort

Question 11

Describe the application of Friedman’s broad strategies of control

Answer 11

1. Direct control generally for unskilled and periphery workers
2. Responsible autonomy generally of skilled core workers