Public Administration. Theories and Principles

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1 Public Administration Theories and Principles 2017

2 A Note to the Reader Public administration may be broadly defined as the management of affairs of the government at all levels national, state and local. It is any kind of administration in the public interest and has come to signify what is termed governmental administration. As well pointed out by John J. Corson and Joseph P. Harris, simply put, It is the action part of government, the means by which the purposes and goals of government are realised. The government is involved in many sectors of life today economic, cultural, social, regulatory and others. Public administration is a system of organisation and action involved with performance of governmental activities at these levels. With the growing significance of the government in the wake of expanding public functions, public administration has become a specialised field today. As a practice it has been witnessing a radical transformation especially with sweeping social, cultural and technical changes in recent years; as a discipline, it has been slowly evolving. Under the influence of new forces and conceptualisations of administrative reality, the discipline of public administration has come to be concerned to a greater extent with explaining the complexity and diversity of governmental administration. Trends towards globalisation and privatisation, increasing concern for environment, advancements in communication and information technology have all given a fresh direction and impetus to the role and function of governmental administration. As a discipline, therefore, public administration has assumed greater relevance today than ever before, as it has been responding to and reflecting the needs and problems of practical governance. 2

3 A Note to the Reader This book covers all the important aspects of administrative theory: its basic concepts, forms of organisation and its principles, administrative law, comparative pubic administration, public policy, the developmental paradigm and personnel and financial administration. It comes in an attempt to satisfy the need for a work that would present all aspects of administrative theory in one place. As the series title suggests, it is a Rapid Revision Studypack that analyses the diverse aspects of administrative theory in a comprehensive manner supported by numerous examples, especially with regard to their application in different administrative systems. It is a compendium of theories, principles and techniques of public administration characterised by a detailed yet balanced presentation emphasising on clarity of subject matter and lucidity of language. Public administration is a subject of study in various universities of India. It is an optional subject in the Civil Services (Main) Examination conducted by the Union Public Service Commission and is a subject in the UGC (NET) examination. This book would be helpful to all those who have taken up Public Administration as a subject of their choice for graduation and post-graduation courses. It would be useful for all candidates appearing for the Civil Services (Main) Examination and the UGC NET examinations who have Public Administration as a subject, as it covers the latest syllabus for both these examinations. Readers are welcome to present their constructive comments for improvement of the book. 3

4 Chapter 1 Public Administration: Nature and Scope 1 Meaning of Administration 1 Meaning and Scope of Public Administration 2 How is Public Administration similar to or different from Private Administration? 4/ Scope of Public Administration 7/ Public Administration and Other Social Sciences 10 Public Administration and Political Science 11/ Public Administration and Economics 11/ Public Administration and Sociology 12/ Public Administration and History 13/ Public Administration and Law 14/ Public Administration and Psychology 14/ Public Administration and Geography 14/ Approaches to the Study of Public Administration 14 Scope of Public Administration at a Glance 7 Is Public Administration an Art or a Science, or Both? 12 Chapter 2 Public Administration: Evolution, Challenges and Significance 18 Evolution of Public Administration as a Discipline and its Present Status 18 Stages in the Evolution of Public Administration 19/ Study of Public Administration in India 25/ Recent Trends 27/ Wilson s Vision of Public Administration 27 On Administration as a Science 28/ Politics and Administration 28/ Public Opinion and Administration 29/ Civil Service: Need and Reform 29/ Learning from other Contexts 30/ New Public Administration 31 The Honey Report on Higher Education for Public Service (1967) 32/ The Philadelphia Conference on the Theory and Practice of Public Administration (1967) 34/ The Minnowbrook Conferences 34/ Features of New Public Administration 35/ The Three Anti-goals of NPA 36/ The Goals of NPA 36/ Comments on New Public Administration 37/ New Public Management 38 Definitions and Views of Scholars on NPM 40/ Features of New Public Management 41/ New Public Management Perspective in Select Countries 42/ Summing Up 43/ Entrepreneurial Government 44 Features of Entrepreneurial Government 45/ Public Choice Approach 47 Importance of Decentralisation 48/ Emphases of Public Choice Approach 49/ Critique of Public Choice Approach 49/ 4

5 Neo-Taylorism 50 Public Administration as an Activity in Developed and Developing Countries 50/ Good Governance 51 Conceptual Parameters 51/ Good Governance: A Collective Effort 54/ Challenges of Liberalisation, Privatisation and Globalisation to Public Administration 55 Ethical Dimension of State Policy 57/ Decentralisation of Administration 57/ Nature of Administrative Reforms 58/ Need for a Research Agenda 58/ Multinational Corporations 59/ Complexities of Globalisation-Public Administration Relationship 60/ Privatisation for Better Administration 62/ Significance of Public Administration 63 Reasons for the Growing Importance of Public Administration in the Last Two Centuries 64/ Importance of Public Administration in Developing countries 64/ New Public Administration and New Public Management 39 The World Bank Approach 50 New Public Management and Good Governance 54 Threats Posed by Globalisation for Governance and Public Administration 56 Chapter 3 Administrative Thought 67 Introduction 67 Kautilya 67 Principles Governing the State and Administration 68/ Various Aspects of Administration 68/ Critique 69/ Scientific Management: F.W. Taylor 70 Introduction 70/ Aim of Scientific Management 71/ Focus of Scientific Management 72/ Assumptions of Scientific Management 72/ Principles of Scientific Management 72/ Components of Scientific Management 74/ Mechanisms for Application of Principles of Scientific Management 75/ Critique of Taylor s Scientific Management Approach 76/ Relevance of Taylor s Approach 77/ Impact of Scientific Management 78/ The Classical Theory (Henri Fayol, Luther Gulick and Lyndall Urwick, James Mooney, Alan Reiley) 79 Henri Fayol and his Approach 79/ Comparing the Ideas of Taylor and Fayol 84/ Critical Evaluation of Fayol s Contribution 84/ Luther Gulick and his Contribution 85/ Lyndall Urwick and his Principles 89/ Critical Evaluation of Gulick and Urwick 90/ Mooney and Reiley 90/ Criticism of the Classical Theory 91/ Significance of the Classical Theory 93/ Weber s Bureaucratic Model, its Critique and Post-Weberian Developments 93 Some Views on Bureaucracy 94/ Weber: His Life and Works 95/ Weber s Ideas on Power, Domination and Authority 96/ Weber s Bureaucratic Model 98/ A Critique of Weber s Bureaucratic Model 102/ 5

6 Other Thinkers on Bureaucracy 105 Karl Marx 105/ Morstein Marx 106/ Lord Hewart 107/ Edgar Norman Gladden 107/ Warren G. Bennis 107/ Dynamic Administration (Mary Parker Follett) 108 Conflicts 109/ Giving of Orders 110/ Power, Authority and Control 111/ Planning and Coordination 111/ Leadership 111/ Criticism of Follett s Ideas 112/ Human Relations School: Elton Mayo 112 The Philadelphia Textile Mill Experiment 113/ Hawthorne Studies 113/ Implications of the Hawthorne Experiment 115/ Study at the Southern California Aircraft Industry 116/ Criticism and Significance of Mayo 116/ Functions of the Executive (Chester I. Barnard) 117 Formal Organisation as a Cooperative System 117/ Informal Organisation as a Natural System 118/ Individual s Motivational Mechanism 119/ The Theory of Authority 119/ Decision-Making 120/ Elements of the Decision Environment 120/ Principles of Communication 121/ Functions of the Executive 121/ Barnard s Contribution to Administrative Theory 123/ Criticism of Barnard 123/ Herbert Alexander Simon 123 Simon s Criticism of Classical Theory 124/ Science of Administration 125/ Economic Man and Administrative Man 125/ Decision- Making : Core of Administration 126/ Rationality in Decision-Making 127/ Bounded Rationality 128/ Satisficing 129/ Improving Rationality in Decision-Making 129/ Programmed and Non-programmed Decisions 129/ Efficiency in Administrative Decisions 131/ Employee Participant and Decision-making 131/ Influences and Authority in Decision-making 131/ Planning and Review 132/ Hierarchy 132/ Communication 132/ Criticism of Simon 133/ Participative Management/Neo-Human Relations Approach/ Behavioural Approach/Socio-psychological approach: Likert, 133 Argyris, McGregor Scope of Participative Management 133/ Emphasis on Human Relations 134/ Features of the Behavioural Approach 134/ Rensis Likert 135/ Chris Argyris 140/ Douglas McGregor 143/ Criticism of the Behavioural Approach in General 146/ Systems Approach 146 Two Broad Categories of Organisation Theories 70 Contributions of Other Thinkers to Scientific Management 78 Taylor and Fayol Compared 84 Characteristics of Weber s Rational Legal Type of Bureaucracy 98 Basic Principles of Human Relations Approach 115 Differentiation between Rationality (Economic Man) and Bounded Rationality (Administrative Man) 128 Likert: System 1 to Comparison of Theory X and Theory Y 145 Chapter 4 Administrative Behaviour 148 Process and Techniques of Decision-making 148 Definition of Decision-making 148/ Characteristics of Decisionmaking 149/ Bases of Decision-making 149/ Steps Involved in 6

7 Decision-making 150/ Types of Decisions 152/ Group Decision- Making: Methods, Advantages and Disadvantages 152/ Some Management Tools of Decision-Making 154/ Problems in Decision- Making 156/ Measuring the Effectiveness of Decision-making 157/ Role of Intuition in Decision-making 157/ Approaches to Decisionmaking 158/ Theories of Decision-making 159/ Herbert Simon on Decision-making 160/ Communication 161 Meaning and Definition of Communication 162/ Importance and Purpose of Communication 163/ Modes of Communication 164/ The Communication Process 165/ Types or Channels of Communication 166/ Formal Communication 166/ Informal Communication 169/ Comparing Formal Communication and Informal Communication 170/ Barriers to Effective Communication 170/ Overcoming Barriers to Communication 172/ Morale 174 Nature and Importance 174/ Building up Morale 175/ Measuring Morale 177/ Motivation 177 Definitions 177/ Characteristics of Motivation 178/ Motivation Types 179/ Management Techniques for Increasing Motivation 179/ Motivation Theories 179/ 1. Traditional Theory of Motivation 179/ 2. Content Theories of Motivation 180/ 3. Process Theories of Motivation 186/ 4. Reinforcement Theories of Motivation 189/ 5. Contemporary Theories of Motivation 189/ Leadership 193 What is Leadership? 193/ Need for Leadership 194/ Functions of a Leader 194/ Theories of Leadership: Traditional and Modern 194/ Great Man Theory of Leadership 195/ Trait Theory of Leadership 195/ Behavioural Approach 196/ Box Comparing Motivation Theories of Maslow and Herzberg 185 Chapter 5 Organisations 209 Meaning of Organisation 209 Organisational Behaviour 211 Functions and Importance of Organisation 212 Characteristics of Organisation 213 Formal and Informal Organisations 213 Characteristics of Formal and Informal Organisations 213/ Relationship between Formal and Informal Organisations 214/ Basic Principles of Organisation 214 Principles in General 214/ The Principle of Hierarchy 216/ Unity of Command 217/ Span of Control 217/ Authority and Responsibility 217/ Coordination 218/ Centralisation and Decentralisation 219/ Delegation 219/ Supervision 219/ Organisation Theories 220 Systems Theory 220/ Contingency Theory 226/ Structure and Forms of Organisations 231 Typology of Organisation 231/ The Chief Executive 232/ Ministry 234/ Line, Staff and Auxiliary Agencies 235/ 7

8 Types of Line Agencies 236 Departments 236/ Corporations 244/ Boards and Commissions 252/ Ad hoc and Advisory Bodies 255/ Regulatory Authorities 257/ The Independent Regulatory Commission 258/ Headquarters and Field Relationships 263 Grading and Classification of Field Stations 263/ Factors that Govern Formation of Field Stations 263/ Public-Private Partnerships 266 Origin of PPPs 267/ Necessity of Public-Private Partnerships 267/ Phases of Public-Private Partnership 268/ PPP in India 268/ PPP in the USA 269/ PPP in Canada 270/ PPP in the UK 270/ PPP in China 271/ Characteristics of Closed and Open Models 221 Systems Theory, Systems Analysis and Systems Thinking 225 Public Corporation and the Departmental System 244 Public Limited Companies and Private Limited Companies in India: A Comparison 251 Statutory Corporations and Government Companies: A Comparison 252 Chapter 6 Accountability and Control 273 Concept of Accountability 273 Types of Accountability 274/ Concept of Control 275 Types of Control 275/ Legislative Control over Administration 277 Control of Administrative Policy 277/ Control of Appropriations 277/ Parliamentary Questions 278/ Parliamentary Debates and Discussions 278/ Audit and Report 279/ Appointment of Committees 280/ Legislative Control in Presidential System 280/ Limitations of Legislative Control 281/ Executive Control over Administration 282 Political Control 282/ Budgetary System 282/ Personnel Management Control 282/ Executive Law Making 282/ Direct Control: Tours and Inspections 282/ Organisation and Methods 283/ Administrative Ethics 283/ Leadership 283/ Judicial Control over Administration 283 Causes of Judicial Intervention 283/ Judicial Review 284/ Statutory Appeals in Courts against Administrative Acts/Decisions 285/ Suits against the Government 285/ Suits against Public Officials 285/ Suits against Non-Judicial Officers 285/ Extraordinary Remedies 285/ Limitations of Judicial Control 289/ Public Control 289 System of Elections 289/ System of Recall 289/ Advisory and Consultative Committees 289/ Pressure Groups 290/ Public Opinion 290/ Citizen and Administration 290 Need for Citizen Participation 291/ Measures for Harmonising Citizen-Administration Relationship 292/ 8

9 Role of Media, Interest Groups and Voluntary Organisations 295 Role of Media 295/ Interest Groups 296/ Voluntary Organisations 303/ Civil Society 306 Definitions of Civil Society 306/ Evolution of the Concept of Civil Society 307/ Basic Characteristics of Civil Society 309/ Functioning and Importance of the Civil Society 309/ Civil Society in Developing Countries 310/ Civil Society in India 311/ Challenges to Civil Society 313/ Citizen s Charter 314 Development of Citizen s Charter 314/ Preparing and Operationalising the Citizen s Charter 315/ Citizen s Charter Initiatives in India 315/ Shortcomings of Citizen s Charters 316/ Right to Information 316 Right to Information Essence of Democracy 317/ The Stand of International Organisations on the Need for Right to Information 318/ Experiences of Countries 319/ Right to Information in India 320/ Social Audit 322 Concepts 323/ Purpose of Social Audit 323/ Characteristics of Social Audit 323/ Process of Social Auditing 324/ Problems Faced in Social Auditing 324/ Box Voluntary Organisation and Non-official Organisation 304 Chapter 7 Administrative Law 326 Definition of Administrative Law 326 Sources of Administrative Law 327 Origin and Evolution of Administrative Law 328/ Features of Administrative Law 331 Importance and Scope of Administrative Law 331 Dicey and Administrative Law 333 Criticism of Dicey s Viewpoint 334/ Delegated Legislation 335 Delegated Legislation, Executive Legislation and Administrative Action 335/ Need for Delegated Legislation and Reasons for its Growth 336/ Types of Delegated Legislation 337/ Advantages of Delegated Legislation 338/ Disadvantages of Delegated Legislation 339/ Safeguards in Delegated Legislation 339/ Delegated Legislation in the US 340/ Parliamentary Committees on Delegated Legislation in UK 341/ Delegated Legislation in India 341/ Administrative Adjudication 343 Importance of Administrative Adjudication 344/ Advantages of Administrative Adjudication 345/ Disadvantages of Administrative Adjudication 345/ Administrative Tribunals 345 Reasons for Growth of Administrative Tribunals 346/ Characteristics of Administrative Tribunals 347/ Merits of Administrative Tribunals 347/ Demerits of Administrative Tribunals 347/ Safeguards to 9

10 Improve the Working of Administrative Tribunals 348/ Administrative Tribunals in Different Countries 348/ Why is delegated legislation subordinate legislation? 335 Difference between Administrative Adjudication and the Judicial Process 344 Chapter 8 Comparative Public Administration 354 Definition 354 Development of Comparative Public Administration 355 Ferrel Heady and his Contribution 356/ Importance of Comparative Public Administration 358 Approaches to Study of Comparative Public Administration 358 Current Status of Comparative Public Administration 359 From Normative to Empirical 360/ From Ideographic to Nomothetic 360/ From Non-ecological to Ecological 360/ Historical and Sociological Factors Affecting Administrative Systems 360 A Perspective on Growth of Public Administration through History 361/ Administration and Politics in Different Countries 365 The United Kingdom 365/ The USA 368/ France 371/ Russia 374/ China 377/ Germany 380/ Evaluation of Comparative Public Administration 382/ Ecology and Administration 383 Riggs Models and their Critique 385/ (i) Ecological Approach 385/ (ii) The Structural-Functional Approach 386/ (iii) Ideal Models 386/ Box The Chinese and Western Administrative Models: A Comparison 379 Chapter 9 Development Dynamics 394 Concept of Development 394 Concept and Meaning of Development Administration 394 Development of Administration and Administration of Development 395 Traditional Administration and Development Administration 396 The Political, Social and Economic Context of Development Administration 397 Political Context 397/ Economic Context 398/ Social Context 398/ Features of Development Administration 399 Criticism of Development Administration 400/ Scope and Significance of Development Administration 400/ Models of Development Administration 402 Edward W. Weidner s Models 402/ Fred W. Riggs Model 403/ John D. Montgomery 404/ Changing Profile of Development Administration 405 In the 1950s 405/ In the 1960s 406/ In the 1970s 407/ In the 1980s and Later 407/ Anti-Development Thesis 409 Bureaucracy and Development 411 Role of the Bureaucracy 411/ Strong State versus the Market Debate 413 Impact of Liberalisation on Administration in Developing Countries

11 International Aid and Technical Assistance Programmes in the Context of Development 416 The International Monetary Fund 416/ World Bank Group 418/ World Trade Organisation (WTO) 419/ Asian Development Bank 420/ Women and Development: The Self-Help Group Movement 421 Grameen Bank 422/ Self-Help Groups 422/ Reasons for the Spread of the SHG Movement 427/ Criticism of the SHG model in India 428/ Interactions among Different Groups in the Context of Development 428 Chapter 10 Social Administration 431 Social Welfare 431 Definitions of Social Welfare 431/ Residual and Institutional Concepts of Social Welfare 433/ Nature of Social Welfare 433/ Social Welfare: Developments in the West 434/ Social Welfare System in the UK 435/ Welfare System in the USA 436/ Social Welfare in Russia 437/ Social Welfare in India 439/ Social Justice 439 Social Change 440 Social Change Patterns 441/ Public Administration and Social Change 442/ Health 443 Health Care in USA 444/ Health Care in Britain 444/ Health Care in Russia 445/ The Health Care System in Germany 446/ Health Care in Sweden 447/ Health Care in China 448/ Health Care in India 450/ Education 450 Education Sector in USA 450/ Education in UK 452/ Education in Russia 454/ Education in Germany 455/ Education in China 456/ Education in India 457/ Box Defining Terms 432 Chapter 11 Personnel Administration 459 Functions of Personnel Administration 459 Bureaucracy 460 Max Weber on Bureaucracy 461/ Types of Bureaucracy 462/ Criticism of Bureaucracy 462/ Measures to Improve Bureaucratic Functioning 463/ Civil Services 464 Definition 464/ Basic Features of the Civil Services 465/ Functions of the Civil Service 465/ Importance of Human Resource Development 466 Recruitment 467 Merit System vs. the Spoils System 468/ Process of Recruitment 468/ Systems of Recruitment 469/ Methods of Recruitment 469/ Aspects of Recruitment 470/ The Recruiting Agency 475/ 11

12 Training 475 Objective of Training 475/ Importance of Training 476/ Training Methods and Techniques 476/ Types of Training 479/ Organisation of Training 480/ Career Advancement 481 Types of Career Systems 482/ Steps for Career Advancement 483/ Planning for Career Advancement 483/ Benefits of Career Advancement for the Individual 485/ Benefit of Career Advancement for the Organisation 485/ Hindrances to Career Development 486/ Classification 486 Steps in Classification 487/ Position Classification 487/ Specific Objectives of Position Classification 488/ Limitations of Position Classification 489/ Rank Classification System 489/ Discipline 490 Conduct Rules 491/ Disciplinary Action and Procedure 491/ Performance Appraisal 492 Performance Standards 492/ Specific Objectives 492/ Methods of Performance Appraisal 493/ Criticism of the Appraisal System 495/ Promotion 495 Promotion in Civil Services 496/ Essentials of a Promotion System 497/ Principles of Promotion 498/ Promotion Systems in Different Countries 501/ Pay and Service Conditions 502 Pay Determination 503/ Principles of Compensation Plan 504/ Allowances 505/Increments 505/ Service Conditions 506/ Issues in Compensation 509/ Retirement 510/ Employer Employee Relations 516 Employees Associations 517/ Machinery for Government-Employee Dialogue (Grievance Redressal Procedure) 519 In UK 519/ In USA 520/ In India 520/ Integrity and Code of Conduct 522 Devotion to Duty and Integrity 522/ Neutrality and Anonymity 523/ Politicised Bureaucracy 524/ Secrecy 525/ Administrative Ethics 525 Components of Administrative Ethics 526/ Factors that Determine Observance of Administrative Ethics 526/ Significance of Administrative Ethics 526/ Bureaucracy and Civil Services: Differences 464 The Generalist vs. the Specialist 474 Chapter 12 Public Policy 527 What is Policy-making? 527 Policies and Goals 527 Policies and Decisions 528 Public Policy and Administration 528 Features and Relevance of Public Policy 530 Policy Analysis

13 Models of Public Policy Making and their Critique 532 Group Theoretic Model 532/ Elite Theoretic Model 532/ Incremental Model 533/ Rational Model 534/ Mixed Scanning Model 537/ Institutional Model 537/ Game Theoretic Model 537/ Systems Theoretic Model 538/ Dror s Normative-Optimum Model 539/ The Public Choice Approach 540/ Types of Policy 540 Political Policy 540/ Executive Policy 541/ Administrative Policy 541/ Technical Policy 541/ Policy Formulation 541 Forces in the Policy-Making Process 542/ Constraints in Public Policy-Making 545/ Policy Implementation 546 Perspectives on Implementation 546/ Role of the Legislature in Policy Implementation 547/ Role of the Judiciary in Policy Implementation 547/ Role of Political Executive in Policy Implementation 548/ Role of Permanent Executive in Policy Implementation 548/ Role of Non-governmental Agencies and Pressure Groups in Policy Implementation 549/ Problems in Policy Implementation 549/ Public Policy Monitoring and Evaluation 550 Functions of Evaluation 550/ Criteria for Evaluation of Policy 550/ Forms of Policy Evaluation 551/ Approaches to Evaluation 552/ Problems in Policy Evaluation 552/ State Theories and Public Policy Formulation 553 Public Policies and Different Political Systems 553/ Policy Sciences 530 Lindblom s Incremental Approach and Simon s Rational Approach Compared 536 Chapter 13 Techniques of Administrative Improvement 557 Organisation and Methods (O&M) 558 Definitions of O&M 558/ Functions of O&M 558/ Application of O&M in Organisations 559/ Is a Separate O&M Organisation Needed? 560/ Location of O&M Units 560/ Staffing in O&M Units 561/ O&M Techniques 562/ (i) Survey 562/ (ii) Inspection 564/ (iii) Forms Control 565/ (iv) File Operations 565/ (v) Automation 566/ (vi) Work Simplification 567/ Work Study 568 Objectives of Work Study 569/ Steps Involved in Work Study 569/ Method Study 569/ Work Measurement 571/ Organisation Analysis 575/ Tools of Work Study 576/ Operations Research 576 Features of OR 577/ Application of OR 577/ Models used in OR 577/ Network Analysis 579 Programme Evaluation and Review Technique (PERT) 579/ Critical Path Method (CPM) 581/ PERT, CPM Compared 583/ Management Information Systems 583/ Need for MIS 583/ Benefits of MIS 583/ Designing and Developing MIS 584/ Advantages of Computers in the Context of MIS 584/ Causes of Failure of MIS 585/ Improvements in MIS 585/ 13

14 E-governance and Information Technology 585 Definitions of E-governance 586/ Goals of E-governance 587/ Models of E-governance 587/ Benefits of E-governance 588/ Risks and Criticism of E-governance 589/ Conditions Necessary for Success of E-governance 590/ Reasons for Undertaking Method Study 570 Comparison of Work Measurement Techniques 574 E-governance and Other Terms 586 UN e-government Readiness Index 590 Chapter 14 Financial Administration 592 Financial Administration: Meaning and Definitions 592 Financial Administration and Public Administration 593 Principles of Financial Administration 593 Agencies Involved in Financial Adminisration 593 The Executive 594/ The Legislature 594/ Heads of the Central Department 594/ Audit Organisation 594/ Committees of the Legislature 594/ Some Independent Organisations 595/ Importance of Financial Administration 595 Scope of Financial Administration 595 Monetary Policy 596 Objectives of the Monetary Policy 596/ Monetary Policy Instruments 596/ Monetary Policy and Price Stability 597/ Monetary Policy and Economic Growth 597/ Fiscal Policy 598 Meaning 598/ Instruments of Fiscal Policy 598/ Fiscal Policy and Inflation 598/ Fiscal Policy: Delays in Application 599/ Public Debt 599 Causes of Public Debt 600/ Public Debt Classification 600/ Objectives of Public Debt 601/ Sources of Public Debt 601/ Public Debt Management 604/ Budget 605 Significance of the Budget 606/ Characteristics of the Budget 606/ Functions of the Budget 607/ Types of Budget 608/ Principles of Budget Making 609/ The Budgetary Process 610/ Preparation of the Budget 611/ Preparation of Estimates 611/ Legislation of the Budget 611/ Execution of the Budget 612/ Performance Budgeting 613 Objectives of Performance Budgeting 614/ Stages of Performance Budgeting 614/ Pre-requisites of Performance Budgeting 614/ Criticism of Performance Budgeting 615/ Zero-base Budgeting 615 Meaning of Zero-Base Budget 616/ Procedure involved in Zero-base Budgeting 616/ Aspects of ZBB 616/ Advantages of Zero-Base Budget Approach 617/ Financial Control of Legislature over Executive 618 Accounts and Audit 618 Accounting 618/ Separation of Accounts and Audit 619/ Audit 620/ References

15 References E.N. Gladden, History of Public Administration Rumki Basu, Public Administration: Concepts and Theories Shriram Maheshwari, Administrative Theory: An Introduction Mohit Bhattacharya, New Horizons of Public Administration Hoshiar Singh and Pardeep Sachdeva, Administrative Theory Chester I. Barnard, The Functions of the Executive R.K. Sapru, Administrative Theories and Management Thought Nicholas Henry, Public Administration and Public Affairs E. Chandran, Public Administration D. Ravindra Prasad, V.S. Prasad, P. Satyanarayana and Y. Pardhasaradhi, Administrative Thinkers Felix A. Nigro and Lloyd G. Nigro, Modern Public Administration Pradeep Sahni and Etakula Vayunandan, Administrative Theory Peter Self, Administrative Theories and Politics Daniel A. Wren, The Evolution of Management Thought Gerald E. Caiden, Dynamics of Public Administration: Guidelines to Current Transformations in Theory and Practice L.D. White, Introduction to the Study of Public Administration Martin Albrow, Bureaucracy V.A. Pai Panandikar and S.S. Kshirsagar, Bureaucracy and Development Peter N. Dean, Government Budgeting in Developing Countries S.L. Goel, Financial Administration and Management R.K. Sapru, Public Policy: Art and Craft of Policy Analysis Thomas A. Birkland, An Introduction to the Policy Process Michael J. Hill, The Sociology of Public Administration Ramesh K. Arora, Comparative Public Administration R.J.S. Baker, Administrative Theory and Public Administration Peter M. Blau, Bureaucracy in Modern Society Fred W. Riggs, Administration in Development Countries: The Theory of Prismatic Society George F. Cant, Development Administration: Concepts, Goals, Methods A.R. Tyagi, Public Administration: Principles and Practice Alka Dhameja (ed.), Contemporary Debates in Public Administration 15