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Fülöp The behavior of an organization Saurer arbon suisse anti aging risk attitude followed in case of decision making process has long been the subject of economy. The great majority of the investigations however concern the entrepreneur or the entrepreneurial organization.
This study summarizes the research results regarding the components of risk attitude and the main characteristics of the behavior of a public organization and its managers.
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The bureaucratic organization Risk avoidance has been an intriguing subject of economic research both on individual and organizational levels. The great majority of the investigations concern the entrepreneur or the entrepreneurial organization.
Risk avoidance is a priori hypothesized as a major attribute of both the public servant and the public sector organization but the specialties of risk attitude are treated by a few works only.
Below is an outline of the most important characteristics of risk attitudes of the bureaucrat and the bureaucratic organization. Practical level conceptualization and evaluation of certainty and uncertainty is determined by the scope of decision, its circumstances and naturally the individual decision maker.
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Also with regards to risk behavior those active in the business sector are connected by the main objective of their actions: profit gain. Such motivator is harder to find when we look at economic decision makers in the public sector. The man of the office, the conformist sitting behind his desk often abusing his power is usually appearing in the next years as the antithesis of 1 Lector: Dr.
Zsolt Huszti PhD 15 katalin b. Mill, the danger of bureaucracy is that it becomes pedantocracy. Spencer postulates that bureaucrats work only for creating steady employment for their family members and friends, while F. Von Stein specifically advises against having paid accou ntants, dis intere sted, propertyless officials sitting on government.
The works of the organi zation-sociologist, Max Weber, in the first part of the last century have re-evaluated the phenomenon. According to him the bureaucratic organization is a consequence of the general development of modern society, more specifically the consequence of normal rationalization.
The Weberian bureaucracy is an idealtype which is ratio nalist in its function fulfillment and helped by its reliability, professional wisdom as well as clear hierarchical pathways. In reality the disfunctionality of the organization — power struggles, job accumulation, sluggishness and opportunism —was an empirical fact during tata harper anti aging time.
Kieser, There are three theoretical schools concerning the role of public sector and bureaucracy. One is the school of public choice theory 3 based on the theses of Niskanen, Wolf, Wagner, Buchanan, Tullock and Stigler which is unmercifully critical of the workings of bureaucracy. Niskanen with his double office thesis analyses the behavior of burea ucr tata harper anti aging abusing their monopolistic position Niskanen, The also profusely quoted Wagner law Wagner,as well as Berry and Lowery also analyze the dangers of the ever bigger role the government plays.
With statistical data Stigler proves that intertwined with industrial interest groups bureaucrats are very capable of hijacking jurisprudence from the original intentions of the legislators Stigler, Wolf lists non-market errors which result in the proliferation of state institutions: overexpectations of public services, the role media plays in exaggerating market failures or the remains of socialist ideologies not discredited in Western democracies, which all force the growth of the public sector Wolf, Buchanan, honored with the Nobel Prize inwas studying public decision making processes and when analyzing the entanglement of politics and economy also pointed to the inevitability of state overspending.
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Hallmarked by Musgrave, Marshall and Pigou, the social optimum school 4 is prima rily focused on market failures remedied by state interventions being pushed towards the Pareto optimum.
Following R. Musgrave, mainstream economic thought is defined by the notion that in a democracy an economy can be maintained successfully for a long time when market mechanisms are complemented by the public sector. Representatives of the trend are too numerous to list, I would briefly mention only two examples here.
Paul A. Samuelson wrote Economics under this influence which is perhaps the most popular textbook in the science of economics. Also based on the philosophy of social optimum school is the indispensable work of Nobel Prize winner in 2 During the 20th Century authoritarianism the entrepreneurial activity becomes anti social behaviour, the tata harper anti aging and knowledge of the state official is unquestionable.
The ideology based on this system fortunatelly has become marginalised by now.
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On one hand when the state increases social expenditures fulfill expectations of entrepreneurs it enhances better profit gaining opportunities. On the other hand it needs to provide consumption products and services to reduce social tensions, which brings an increase of the so-called social expenditures.
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Both induce the growth of state. Cullis-Jones, The effectiveness at organizational level — the tata harper anti aging of input-output — and the improvement of rates are classic problems of economy.
Several studies prove that business organizations operate with higher efficiency than public institutions. Mueller provides 71 comparative studies between and covering some 20 sectors from aviation through mining to weather forecast services.
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In only 5 cases did business ventures turn out to be less efficient and further 10 cases revealed no significant differences between businesses and public institutions. Mueller, The most important is the lack of a profit driven philosophy. Beyond this, lower efficiency levels are usually explained by the followings: 1.
Operational specifications. Public sector organizations are often active in areas where performance is difficult to measure prevention in healthcareonly long term performance can be conceptualized educationconsumer satisfaction as point of measure cannot be used protectionor the organizational operation cannot be compared to anything since the main activities of the organization fall within a quasi-monopolistic position Constitutional Court.
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Organisational specifications. Public institutions are not usually threatened by bankruptcy, which means they can afford inefficiency. Their decisions are more often regulated by legal provisions -like rules of public procurement-and these may very well increase expenditures.
Their operations depend on annual budget allocations which may also limit the rationalities of economic decisions even if financing is either more or less than what is reasonable. Personal specifications.
The strongest binds hindering efficient operations are concerning employees; hiring and firing public servants is always cumbersome and legal provisions of salary allocation may also prevent a rational management of human resource. Tight budget and the system of payroll placement may obstruct the creation of high quality workforce; employment, the retention of employees, even recruiting 6 Stiglitz, J. Quality performance by worker is not followed by adequate reward- just as bad performance is not sanctioned- the incentive less environment is thus fed by workers holding back performance.
The most important being segmentation: everybody is responsible only for a limited area; hence operational members- workers- protect their respective areas only.