ABSTRACT
This chapter presents the literature on administrative and organizational theory and behavior relating to the challenges and opportunities of public management. Adam Smith believed that specialized work increased organizational productivity by increasing the “dexterity” of its workers, allowing them to become as proficient as possible in completing their task. Building on the principles of Frederick Taylor and Max Weber, Luther Gulick and Lyndall Urwick developed the notion of POSDCORB—a set of organizational processes that offer executives a tangible understanding of administration. Widely accepted classical management principles suggest that productivity and efficiency are a function of specialization, hierarchy, a limited span of control, and unity of command and direction. The organizational structure is horizontal, and decisions are made on the basis of knowledge and expertise as opposed to hierarchical position. Systems theory is based on the premise that the organization is comprised of several interconnected parts, each of which is designed to achieve broader organizational goals and objectives.
