Governance - SPEX209

INTRO TO GOVERNANCE

  • Quote by James Madison: "If men were angels, no government would be necessary."

  • Quote by Amitai Etzioni (1964): Highlights the pervasive role of organizations in human life, from birth to death.

PURPOSE OF THIS LECTURE

  • Key Objectives:

    • Discuss the importance of theory and its relevance.

    • Introduce the concept of ‘governance’ as a foundational theory.

    • Explore three governance models: hierarchies, markets, and networks.

    • Define the role of bureaucracy within these models.

BETWEEN THEORY AND PRACTICE

  • Defining Theory:

    • A theory serves as an explanation or inference of reality, focusing attention on specific practices.

    • It is often contrasted with action and practice, where managers typically favor immediate action over theoretical understanding.

  • Theory in Management: Managers may form theories about productivity, such as the effectiveness of open-plan offices.

INTEGRATING THEORY AND PRACTICE

  • Link between Theory and Management:

    • Comment from Peter Miskimmin emphasizes the consumer-centered approach in sports, suggesting a shift from viewing participants as 'citizens' to 'customers'.

  • Significance of Theorization: Consideration of the impact of labeling participants can have tangible consequences.

GOVERNANCE

  • Importance of Governance Theories:

    • Understanding governance is crucial due to the complexity and uncertainty within the sport sector.

    • Governance seeks effective organization amidst the challenges of pluralism and interconnectedness.

  • Challenges of Governance: Remedies are fallible, and outcomes are often incomplete.

WHAT DO WE MEAN BY GOVERNANCE?

  • Definition: Governance refers to the 'steering' of the organizational vessel of sport rather than merely 'rowing'.

  • Coordination Aspects:

    • Horizontal coordination across sectors (e.g., health, education).

    • Vertical coordination from local to national to international levels (e.g., doping regulations with WADA).

  • Characteristics of Public Governance: Good coordination is essential as it affects development goals in sport.

HIERARCHIES, MARKETS, AND NETWORKS

  • Hierarchical Structures:

    • Characterized as unitary governance seen in sport systems like those of Russia, China, and South Korea.

    • Lower organizations are directed by higher authorities and follow rules established from above.

  • Questions of Governance: Are New Zealand's National Sporting Organizations governed hierarchically, and should they be?

MARKETS

  • Market Operations:

    • Governed by competition and consumer choice rather than rules.

    • Different sporting codes vie for membership in a marketplace of choices.

  • Implications of Market Dynamics:

    • Changes in competition structures are supported by local authority in hierarchies but come with risks in markets.

NETWORKS

  • Characteristics of Networks:

    • Reliance on trust and negotiation, fostering partnerships to reach common objectives.

    • Effective for addressing complex issues requiring collaboration across various stakeholders (e.g., schools, clubs).

  • Examples in Practice: Talent identification and development rely on the cooperation of diverse organizations.

THREE GOVERNING MODES (Rhodes 1997; Williamson 1985)

  • Hierarchies:

    • Defined by unitary structure and bureaucratic operations.

    • Operate via command and subordination, based on authority and rules.

  • Markets:

    • Govern through competition and the principles of buying and selling.

    • Function based on prices and costs.

  • Networks:

    • Govern by trust and norms, leveraging flexible arrangements for collaboration.

GOVERNING YOUR ‘FLAT’

  • Flat Characteristics:

    • Involves pluriformity and interdependence among individuals and organizations.

  • Key Questions:

    • What are the responsibilities and issues?

    • How should activities be steered or issues resolved? Options include hierarchies, markets, or networks.

THE BASIS FOR HIERARCHY: BUREAUCRACY

  • Bureaucratic Structure: Exemplified by a humorous cartoon highlighting the difficulties of navigating bureaucracy.

TO SUMMARISE SO FAR…

  • Importance of Theory: Theory provides insights into organizational dynamics.

  • Governance Theory Focus: Emphasizes effective coordination and the role of three governing modes in sport. Each mode has distinct logics and limitations.

MOVING ON…

  • Future Focus: Investigate the historical context of organizational effectiveness and the complexity of governance, particularly regarding bureaucracy and scientific management.

THE “BUREAUCRACY” PERSPECTIVE

  • Max Weber’s Concerns:

    • Examined power, authority, and the concept of obedience in organizational structures.

  • Types of Authority: Traditional, Charismatic, and Legal-Rational authority.

CHARACTERISTICS OF LEGAL-RATIONAL, BUREAUCRATIC ORGANISATIONS

  • Defined by:

    • Functional specialisation and a hierarchical authority structure.

    • Formal rules guiding operations and merit-based recruitment.

  • Weber's Assertion: Bureaucratic organization's technical superiority drives its advancement.

CRITICISMS OF WEBER’S PERSPECTIVE

  • Efficiency Claims: Some argue bureaucracy is not always the most efficient and can be overly rigid and resistant to change.

  • Narrow Focus: Critiques address bureaucracy's neglect of informal relations and dynamics within organizations.

BUREAUPATHOLOGY??

  • Example from Dilbert: Highlighting potential frustrations of dealing with bureaucratic systems.

CONTEMPLATING BUREAUCRATIC NEEDS

  • Why Bureaucracy is Necessary:

    • Acts as a check on authority and corrupt practices.

    • Provides accountability and stability, ensuring equitable and systematic service delivery.

FINAL TAKEAWAYS

  • Importance of Theory: Allows for deeper understanding of organizational behaviors.

  • Bureaucracy's Role: Fundamental for hierarchical structures, yielding both benefits and drawbacks depending on the values prioritized.