UNIVERSITY OF VAASA 

FACULTY OF PHILOSOPHY 

 

 

 

 

 

Alina Shevelina 

 

AN IMPACT OF NATIONAL CULTURAL CHARACTERISTICS ON PUBLIC 

MANAGEMENT IN THE RUSSIAN FEDERATION 

 

Attempts to modernize the Public Sector 

 

 

 

 

 

 

 

 

 

 

Master’s Thesis in 

Public management 

 

 

 

 

 

 

 

 

 

 

 

 

VAASA 2017



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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TABLE OF age 

TABLE OF CONTENTS 

                                                                                                                                     Page 

LIST OF FIGURES AND TABLES 

 

ABSTRACT                                                                                                                     5 

 

1.  INTRODUCTION 7 

      1.1. Research questions and objectives 8 

      1.2. Research methods 9 

      1.3. Structure of the research 10 

2. CULTURE 11 

      2.1. Definition of Culture 11 

      2.2. Individual and group value orientations 13 

      2.3. Culture mapping 15 

      2.4. Social dimensions 18 

            2.4.1. Parameters of the Russian culture according to Hofstede model 19 

      2.5. Values and organization 21 

3.  ORGANIZATIONS AND INSTITUTIONS 24 

      3.1. Organizations as social systems 24 

      3.2. Organizations and legitimacy 25 

      3.3. Ruling elites 27 

            3.3.1. Formation of the ruling elite in the Russian Federation 28 

4.  SOCIAL AND POLITICAL RELATIONS 32 

      4.1. System-environment relations 32 

      4.2. Development and change 34 

      4.3. Public service motivation 38 

      4.4. Social capital and trust 39 

            4.4.1. Trust in public sector: corruption as a reason to reduce social trust 41 

5.  PUBLIC ADMINISTRATION AND PUBLIC MANAGEMENT 46 

      5.1. Rational bureaucracy 46 

      5.2. New Public Management model 48 

            5.2.1. New Public Management reforms 50 



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      5.3. Good Governance model 52 

6.  CASE STUDY: THREE STAGES OF THE ADMINISTRATIVE REFORM IN 

THE RUSIAN FEDERATION, CAUSES AND CONCEQUENCES 54 

      6.1. History perspective: reasons to reform and first steps towards      

democratization 55 

      6.2. First stage of the administrative reform: 1991-1993 59 

      6.3. Second stage of the administrative reform: 1994-1999 62 

      6.4. Third stage of the administrative reform: 2000- 2016 66 

            6.4.1. Anti-corruption measures and outcomes 70 

      6.5. Results of the administrative reform: Social perspective 73 

      6.6. Conclusion 79 

7. CONCLUSION 81 

      7.1. Conclusion and findings 81 

      7.2. Reliability and limitations 83 

      7.3. Suggestions for future research 84 

 

 

WORKS CITED 85 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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LIST OF FIGURES AND TABLES 

 

Figure 1. Dimensions of culture value orientations (Schwartz 2006: 14) 15 

Figure 2. Map of 76 National Groups on Seven Cultural Orientations (Schwartz 

2006:156)                                                                                                                    16 

Figure 3. Interaction of values (Schwartz 1999 & Hofstede 2001) 22 

Figure 4. Dynamics of economic crimes (Ministry of Internal Affairs of the Russian  

Federation 2016)                                                                                                         44 

Figure 5. Dynamics of economic crimes under article № 290 of the Penal Code  

(Ministry of Internal Affairs of the Russian Federation 2016) 45 

Figure 6. The main results of Boris Yeltsin's presidency; 1500 respondents. (Fund of 

Public Opinion 1998)                                                                                                  65 

Figure 7. On the work of Russian civil servants, 1500 respondents. (Fund of Public 

Opinion 1998)                                                                                                             65 

 

 

Table 1. The 7 Schwartz cultural value orientation scores (Schwartz 2008) 17 

Table 2. Bureaucratic vs. post- bureaucratic  model of organization (Barzelay 2002: 

101-107)                                                                                                                      49 

Table 3. Number of public service employees (in thousands) in federal executive bodies 

(Federal State Statistics Service 2016) 72 

Table 4. Summary of main dimensions (Fund of Public Opinion & Ministry of 

Economic Development & World Bank & Transparency International)                   73 

Table 5. Public opinion on Corruption in Russia, 1500 respondents (Fund of Social 

Opinion 2014 & 2015)                                                                                                76 

Table 6. On justice in Russian society, 1500 respondents (Fund of Public Opinion 2017 

& Russian Public Opinion Research Centre 2016)                                                     77 

 

 

 

 

 

 

 

 

 

 

 

 

 



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------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

UNIVERSITY OF VAASA 

Faculty of Philosophy 

Author: Alina Shevelina 

Master’s Thesis: An Impact of National Cultural Characteristics on 

Public Management in the Russian Federation.              

Attempts to modernize the public sector. 

Degree: Master of Administrative Sciences 

Major Subject: Public Management 

Supervisor: Esa Hyyryläinen 

Year of Graduation: 2017 Number of pages: 100 

------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 

 

ABSTRACT: 

  
One of the most important tasks of public administration is to improve the functioning of executive 

authorities. The increase of efficiency and effectiveness of public administration depends on a rational 

choice of approaches and methods made by professional public managers in order to create right 

conditions for successful and effective implementation of strategical changes in public services sector.  

 

Administrative reform implements changes to public administration system through modernizing 

management processes and structural characteristics of the state and political institutions as well by 

means of modifying the nature of relations between government and civil society in general. Crucial 

changes in the field of administrative reform should take into account many parameters that directly or 

indirectly affect the process of functioning of state bodies and relations within all units involved into the 

reformation. Cultural, historical, national and other characteristics are integral components in any 

decision-making process related to public administration field. These components should be considered 

when analysing strategic directions from the perspective of both government as a supplier of public 

services and civil society as the service consumer.  

 

The research methods that have been used in the paper is qualitative. Descriptive-interpretive qualitative 

method is selected as the research method with the view to demonstrate how the historical and cultural 

national characteristics could make a crucial impact to the ongoing processes of transformation of the 

state administrative system and integration of New Public Management reforms in the Russian 

Federation. The data for the research was gathered from various sources such as history literature, state 

regulations, statistical figures from the official National Funds of the Russian Federation and others.  

 

The main part the paper evaluates the background of large-scale transformations of the Russian 

administrative system since the second half of the 20
th

 century till the present time. It also consolidates 

the final methods the modern government address when trying to stabilize the administrative management 

processes. Furthermore, the research describes which factors have influenced the formation of the modern 

administrative apparatus and how the civil society perceives the development of the administrative reform 

starting from the late 1990s when the Government adopted the course to democratization and market 

economy.  

 

In conclusion, no positive result can be achieved when the process of change builds upon a forced and 

chaotic manner, furthermore when the used resources do not meet the requirements of estimate outcomes. 

The process of change should be gradual and sequential, as well as be able to conform to the technical, 

material, temporal and cultural specifics. 

 

_____________________________________________________________________ 

 

KEYWORDS: Corruption, Culture, Management, Public Administration, Reform 



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1. INTRODUCTION 

 

Last quarter of the 20th century, beginning of the 21st was an important period for 

seeking for optimal models of public administration, which resulted in conducting 

administrative reforms first in the Western countries and then in other parts of the 

world. The need for serious transformation of traditional government systems can be 

explained as due to socio-economic reasons like formation of post-industrial society, 

globalization processes, global economic competition along with the development of 

civil society and the rule of law. 

 

In other words, the necessity to proceed to administrative reforms is caused by a number 

of objective reasons, which, in turn, would oblige the government to correspond to the 

level of complexity and functionality of the social system. Thus, administrative reforms 

are an instrument for adapting the state to the changing conditions of the environment. 

In this regard, the essence of administrative reform cannot be linked to resolving 

immediate operational tasks aimed at increasing the effectiveness of public 

administration. On the contrary, it should be founded on a theoretical groundwork that 

embraces the ideological and cultural features of the society and state authorized 

institutions. 

 

New comprehension of the nature of the State as well as the relations between the state 

and society calls to leave behind traditional bureaucratic principles, forms and 

management methods practiced in the past. The studies in the field of public 

management demonstrated the great importance of the quality of public administration 

towards ensuring public welfare (Weber 1978; Hood 1991; Pollitt 2011; Barzeley 

2001). According to the World Economic Forum Report (2015: 18), “an effective 

state…is central to economic and social development”. At the same time, researchers in 

the field of administrative management pay great attention to the concept of efficiency 

by distinguishing it from the notion of the ability to make confident actions in public 

administration and reform. 

 

“Capability, as applied to states, is the ability to undertake and promote 

collective actions efficiently such as law and order, public health, and basic 



8 

infrastructure; effectiveness is a result of using that capability to meet society's 

demand for those goods. A state may be capable but not very effective if its 

capability is not used in society's interest.” (World Economic Forum 2015: 22.) 

 

There are many ways to proceed to establishment of the effective state and they are 

practically depending on each individual case. The Western countries proposed their 

own recipe that took the form of two management concepts - New Public Management 

and Good Governance, which founded the ground of the modern Western 

administrative reform. In the late 20
th

 century The Russian Federation also proclaimed 

the need for fundamental changes in the field of administrative sector. Several years of 

administrative reform in modern Russia have shown its strengths and weaknesses, and 

also made it possible to clarify which factors create impediments to adapting pro-

western model of governance.   

 

 

1.1. Research questions and objectives 

 

The objective of this paper is to examine the relationship of cultural identity and 

methods of public administration. In order to achieve the objective, the author will study 

the impact of cultural characteristics and historical background on the establishment of 

market-oriented system of administrative governance within a quarter of a century after 

the collapse of the communist regime.  Following this, the main question of the research 

was derived: How the key characteristics of the Russian culture are affecting public 

management in the Russian Federation?  

 

For more detailed research, the question was split into 3 sub-questions: 

1. What are the key cultural characteristics to major extent constitute the politico-

administrative style of governance in the Russian Federation? 

2.  Is there any typical Russian way of organizing and managing the public sector? 

3. How successful has the Russian government been in modernizing public sector since 

the change was proclaimed? 

 



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With the view to answer the questions, the author will introduce various theories on the 

field of cultural identities, public administration as well as provide with an historical 

overview to the formation of ruling elites and public system of administrative 

authorities. The empirical part of the thesis will be focused on the features and methods 

of the administrative management approved after several attempts to reform the public 

sector.  

 

 

1.2. Research methods 

 

For the purpose of responding to the questions posed in the previous passage, a 

qualitative research method will be chosen. Qualitative method is based on a semantic 

interpretation of data. The method is aiming at studying the widest possible range of 

opinions, it enables to disclose the most complete picture of the situation and analyse 

interrelationships of the phenomenon under the case of study (Vaus 2002: 5).  

 

“Qualitative methods are often regarded as providing rich data about real life 

people and situations and being more able to make sense of behaviour and to 

understand behaviour within its wider context.” (Vaus 2002: 5.) 

 

Descriptive and interpretive qualitative research methods have been chosen to proceed 

to a deeper understanding of the phenomenon examined in the thesis. The method is 

designed to answer the questions “why”, “how” and “what”, focusing on the conditions 

within the context of real-life situations. The advantages of this method are that they 

allow capturing the complexity of data and variety of information so the phenomenon 

can be studied in greater levels of depth (Nargundkar 2003: 40).  

 

The case study approach also implemented in this study is used in order to broaden the 

perception of an issue in its natural context. The approach favours to understanding and 

explaining causal links among series of events under various circumstances (Stake 

1995: xi). 

 



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From the point of view of cultural and historical influences on the present time situation 

in the modern governance in the Russian Federation, these research methods are the 

most suitable for investigating alleged causal relationships between ingrained forms of 

the administrative management and prevailing characteristics of the social conscience. 

 

 

1.3. Structure of the research 

 

Since the objectives of the research cover a fairly wide range of issues, the approach to 

the empirical part will be presented in a form of theoretical introduction to numerous 

concepts of the public management and the position of cultural consciousness at the 

group level. 

 

The thesis will be divided into several chapters, which will be focused on a specific 

subject of study. The second chapter will be dedicated to cultural perspectives. The third 

chapter will introduce the social status of organizations and institutions. Chapter 

number four will cover such aspects as dependency of a systemic development on the 

internal and external socio-cultural factors. The last chapter of the theoretical part will 

provide an overview on various forms of public administration and crucial impacts on 

the establishment of trustful environment to or within administrative bodies. Chapter six 

will be devoted to the empirical part, i.e. case study, which will be built upon the 

development of public management in the Russian Federation. Conclusion as a final 

chapter will combine main points of the study and reflect the derived results. 

 

 

 

 

 

 

 

 



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2. CULTURE 

 

The concept of human culture and cultural differences is fundamental in any type of 

social cultural studies. Culture can be determined as "social continuity" or knowledge 

gained in the process of living within time and particular society. Culture can also mean 

nationality and be associated with such terms as "tradition" and "socio cultural system". 

Culture is a core attribute for human social behaviour, characterized through habits, 

customs and established institutions. 

 

 

2.1. Definition of Culture 

 

The word culture proceeds from Latin language and refers to cultivating and agriculture. 

A new concept was derived centuries letter, when the general sense of the term acquired 

broader and intellectual meaning of “process of development” The second stream of 

taking the idea further away from its original roots was making it oriented towards 

human effort to outperform its natural disposition. It resulted in a new ethical concept of 

acknowledgement of human abilities, skills, and experiences shared within members of 

a single environment.  Recognition of certain traditions, rules, orders, values and beliefs 

formed the basis of collectiveness and creation of social groups (Eagleton 2016: 2-3). 

 

Weber claimed (1991: 72), social groups possess various set of values that make them 

differentiate from each other and be recognizable. Such annotations as uniqueness and 

distinctiveness began to appear in various interpretations of the term. Basic definition of 

culture as human art of leaving stated in the 18
th

 century had developed into more 

complex structural composition, where the culture was aiming at individualization and 

segregation of particular collective formations (Eagleton 2016: 5-6). 

 

According to Parsons, the follower of Weber’s theory on social action, culture should 

not be exclusively perceived as a symbolic system of meanings embedded in the 

traditional ideas; it shall be viewed as part of system of actions. The concept of social 

action is described in a sequence of four interrelated functions (AGIL-paradigm): 



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Collective adaptation to a single environment through common set of goals that rely on 

solid and binding values and maintained by mediate social systems (Parsons 1970: 26-

30). 

 

In the 20
th

 century, social psychologist Geert Hofstede continued working on the subject 

of cultural system and aligned it with the mental programming on different levels. It 

was assumed that on the individual level each mid set is programed in a way that similar 

situation would provoke almost identical reactions. Hofstede (2001: 2-3) clamed, 

mental programming of each person is unique, thought it can be shared among others 

when talking about one social environment. According to the author, social 

programming distinguishes three different levels. Besides an individual (concerns only 

individual personality), mental programming can be applied to collective (certain 

category of people using one language and observing specific traditions), and universal 

(general knowledge of humanity in regards to particular actions and feelings). Culture is 

viewed as  

 

“Collective programming of the mind that distinguishes members of one group or 

category of people from another… The mind stands for the head, heart and hands 

– that is, for thinking, feeling and acting, with consequences for beliefs, attitudes, 

and skills.” (Hofstede 2001: 9-10.) 

 

On the other hand, culture cannot be just a vessel for values and believes taking for 

granted. It also makes a big impact on people’s perception of reality and changes in 

such. Studying culture and structural components explains why members of social 

groups choose one particular way of action over another when reacting on social, 

political and economic environments. Culture itself does not undergo any crucial 

changes, as the system of values is relatively stable to resist interventions. Changes 

rather affect forms in which culture is represented including institutional structures 

where the culture is maintained (Hofstede 2001: 11). 

 

In line with Hofstede, Niklas Luhmann (1995: 295) emphasize on such an ability of 

culture as providing with orientation when decision-making in needed, meaning that the 

culture possesses the function of social memory which coordinates human actions. 



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2.2. Individual and group value orientations 

 

Professor Shalom Schwartz (1999: 25-26) makes an assumption that values exist in 

order to guide social actors through the processes of selectiveness and evaluation of 

actions over time and across situations. Professor distinguishes two types of value 

emphases. The first one refers to individual values that focus mainly on personality and 

logic that coordinates person’s existence in social system, such as autonomy, 

stimulation, hedonism, achievement and power. The second refers to collective set of 

values oriented at universalism, benevolence, tradition, conformity and security.  

 

Values apply the requirements and establish priorities practically in every social act 

where individual is involved in. Values are the central set of attributes which individual 

refers to when looking for motivation along with making decisions and determining the 

goals (Schwartz 2000: 467-468). 

 

Schwartz believes (2000: 469-471) that in the value analysis the individual and cultural 

levels are conceptually linked. First of all, value priorities at the institutional level 

should be derived considering the natural dynamics of values at the individual, which 

reflects the basic needs of people. Otherwise, individuals would not be able to operate 

within social institutions. Secondly, socialization leads to the internalization of values 

among members of society. Experience of compatibility or conflict between certain 

values is achieved by giving priorities to the values that are supported or denied by 

members of a group or society. 

 

Culture value orientations represent the goals and objectives enclosed in society and 

aim at explaining the actions that members of this society select to achieve their desires. 

Cultural orientations refer to combination of issues that arise when members of the 

society collaborate in a view of working on a common good. Besides, the concept 

investigates the opposite values that might be involved while analysing the relevance of 

goals within time (Schwartz 2000: 465, 485). 

 



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Embeddedness vs. Autonomy: The value focuses on the idea of how far the person 

associates him/herself with the community; does the feeling of being self-sufficient  and 

expressing own feelings and cultivating own qualities is stronger than staying behind 

the collective mind and order, which shares the principal of identification through the 

group and represents very close social relations. Autonomy is divided into Affective 

autonomy, which fundamentals lay in the tendency of individual to experience only 

positive emotions; Intellectual autonomy in its turn is based on potentials to be 

intellectually independent when seeking for ways of self-realisation (Schwartz 2006: 

140-142). 

 

Egalitarianism vs. Hierarchy: Equality in society is the main principal, contribution to 

everyone’s welfare by erasing social layers. Morality and members engagement into 

providing mutual benefit becomes essential such as the concern about that it is a free 

choice of each one.  Opposite to that hierarchy cultures state for building relations 

according to distribution of power from top to bottom and as a consequence 

unproportioned allocations of rights and goods among subordinates and their leaders. 

Social relations rely upon social status (Schwartz 2006: 140-142). 

 

Harmony vs. Mastery: The difference between these two concepts founds on peoples’ 

understanding and perception of what the natural and social environment offers to them. 

Adaptation to conditions goes either through acceptance and appreciation or 

implementation of changes and exploitation with the view to attaining either individual 

or collective goals. Alternative ideas on the main principals of social construction have 

always been a starting point for conflicts. Bipolar values create problems on the social 

level and thereby lead to misunderstanding, mistreatment and major cultural, social or 

political problems (Schwartz 2006: 140-142). 

 

The idea of this theory is to understand what are the cultural deviations as well as what 

are the values that the modern world encloses in the term culture. 

 

 



15 

2.3. Culture mapping 

 

The concept developed by Schwartz in regards to cultural formations differs 

significantly from Hofstede resolution on cultural dimensions. Hofstede estimates the 

cultural dimensions as independent orthogonal factors, his model methodology relates 

to empirical observations, and in majority of cases to labour values. Hofstede’s cultural 

dimensions are continuous, when Schwartz’s dimensions are bipolar.  

 

Schwartz (2008: 44) initiates the idea of the circular motivational continuum that 

reflects the structural and meaningful relationships between related cultural values that 

correspond to behaviours and social-arrangements. Value dimensions were divided into 

seven cultural profiles which were subsequently reflected in the matrix of cultural 

distances between all pairs of groups (Figure 1). These distances are calculated 

according to the aggregated principals of absolute differences between the groups. 

 

 

 

 

 

Figure 1. Dimensions of culture value orientations (Schwartz 2006: 142) 

 



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Method of multidimensional scaling, shown in the Figure 2, was applied to visualise 

different cultural groups relative to the vector of embeddedness. In order to assess the 

cultural tendencies, Swartz drew the perpendicular lines from each location point 

towards the vector thereby showing the country belonging to one or several value 

orientations.  According to the map, Russia (in the centre) is relatively close to the 

vector of embeddedness, mastery as well as hierarchy, meanwhile Finland and 

Scandinavian countries tend to opposite value orientations.  

 

 

 

 

 

Figure 2. Map of 76 National Groups on Seven Cultural Orientations (Schwartz 2006: 

156) 

 

Cultural examples with a strong orientation towards one pole values usually 

demonstrate a weak directionality towards the opposite pole (Schwartz 2008: 29). 

Cultural indexes (from 1 to 5) for the Russian Culture in 2008 were the following:  

 

 



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Table 1. The 7 Schwartz cultural value orientation scores (Schwartz 2008) 

 

Under the influence of the cultural characteristics, the communist model in the 20
th

 

century was transformed into a totalitarian regime, setting the goal of the state, in 

particular the ruling elite, over the welfare of the population. Russia possesses a great 

natural wealth, by using which the government is trying to recover the counties’ 

economic position. Natural resources inspire people to build the economy around 

exploitation of natural resources, while the developed counties aim to invest in 

innovations, which result in the incensement of productivity and intellectual autonomy 

(Yasin 2008: 26). 

 

Individuals record in their memory a certain amount of knowledge, ideas and beliefs 

that are involved into the process of perceiving or rejecting information coming from 

outside. These features play a role of filters, which according to individual values 

criteria separate useful from harmful, good from bad. Selected information as such has 

an impact on individual’s or group’s behaviour. Filters are located at different levels:  

public opinion, understandings, arrangements and values. The first two filters are 

variables under the influence of educational, mass media and other factors. Values, in 

their turn, are the barriers to diffusion of incentives for a cultural change (Schwartz 

2008: 28). 

 

Culture favours to establish the relations between the members of society, including the 

relations of equality and inequality, domination and subordination. Changes in 

perception and attitudes occur when information is assimilated by majority of members 

of society, meaning that the value system does not reject it. Nevertheless, innovations 



18 

are not easily accepted, as they have to break through habitual patterns. A complete 

modification of culture does not have to be an only possible scenario, as it can cause the 

loss of cultural identity. Cultures shall aim at partial changes in their value orientations 

with the aim of a better and faster integration to globalization (Yasin 2004: 28). 

 

Cultural value orientations do not stay behind each single individual; they demonstrate 

the functioning of social system, creation of ideological soil as well as harmonization of 

various processes. The data on cultural orientations aids to establish causal relationship 

between culture and important social phenomenon. 

 

 

2.4. Social dimensions 

 

National culture besides affecting a development of social values also shapes 

management norms of public and private organizations.  Dutch scholar Geert Hofstede 

derived measurable units that enable to describe mental peculiarities of each society, 

that later lead to formation of national culture.  

 

Globalization enforced political and business world to transform courses of countries’ 

development. Although cultural boundaries have also contributed in formation of ideas 

and informal rules of performing in market and public sectors. For the first time the 

evaluation of cultural dimensions of Russia according to Hofstede’s model was carried 

in 1980s. Later in 2006 the study was repeated by the Russian professor Naumov from 

Moscow State University, who based the measurements on the same methodology as 

well as on the historical approach. 

 

According to Hofstede, mental programming is a sustainable variable within members 

of one social group. Predictability of human’s behaviour results in a creation of social 

systems, where in similar situations people with high probability can demonstrate 

similar attitudes.  Hofstede’s model of cultural differences consists of five dimensions 

which were implemented for measuring cultural values: Power Distance, Collectivism 



19 

vs. Individualism, Masculinity vs. Femininity, Uncertainty Avoidance, Long-Term vs. 

Short-Term Orientation (Hofstede 2001: 2, 9, 28). 

 

1. Power distance defines the assent of hierarchical chains bottoms with unequal 

distribution of power. 

2. Collectivism versus individualism is a degree to measure peoples’ ability to gather 

into larger groups in order to give preferences to in-group’s goals and needs rather 

than one-self’s. Beliefs shared within one cultural group members are more preferred 

than beliefs emphasized on individualistic benefits. 

3. Masculinity and femininity refers to the domination of gender qualities in society: 

focus on winning or searching for compromise, rivalry vs. equality, etc. 

4. Uncertainty avoidance deals with ambiguous and uncertain situations. Intension of a 

society to take control over majority of procedures. In case of high-uncertainty 

avoidance, the preference is given to issuing regulations, establishing rules in order 

to structure and predict people’s interactions (Hofstede 2001:145-147). 

5. Long-term orientation versus Short-term, refers to willingness to delay short-term 

success or gratification expecting to receive bigger and more significant benefits in 

future. 

 

2.4.1. Parameters of the Russian culture according to Hofstede model 

 

Studying the Russian culture, sociologists argue about what it is to be part of a group for 

Russian people. According to his research the main ideas consist in getting a collective 

protection through a group than to promote a collective idea. Preservation of 

individualistic values is an inherent feature of the Russian culture, although it does not 

interfere with an idea of following group norms (Naumov & Petrovskaja 2008: 78). 

 

Last results measured by using Hofstede’s model on Cultural dimensions showed that 

society in comparison with 2001 (39 point on Individualism scale) started to aim to 

Collectivization (36 points in 2006). The explanation of this phenomenon lies in the 

level of inequality of income on the one hand and historical background caused by 

Perestroika reforms on the other. Within years government could not meet basic needs 



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of the population that resulted in unification of citizen on the basis of a gap between the 

rich and the poor. The perception of collectivism among Russian society acquired 

formal and artificial features based on ideas to complaining together than defending 

common interests (Naumov &  Petrovskaja 2008: 78). 

 

Tendency of the Russian culture to masculine gender originates in distribution of roles 

between men and women, besides ideological views on running business, when the 

outcomes used to depend on personal connections and privileged access to information 

and resources. From 36 points in 2001 the index in 2006 increased to 48, which can be 

explained in attenuation of civil society and uncertainty of national projects as well as 

social orientation (Naumov & Petrovskaja 2008: 80). 

 

Globalization and orientation to Western model management increased the Power 

distance index to 33 points relating to 93 derived by Hofstede in 2001. Recently 

conducted reforms assured people in political and economic stabilization together with 

decentralization of power. Nevertheless, the Russian labour model got used to high 

power distance due to vertically structured hierarchical system. Ethical norms at a work 

place created for everybody, frequently are avoided by top managers; that automatically 

encourages the subordinates to adopt same norms of conduct. Top managers are seen as 

inviolable highest authorities, criticizing which is not recommended in order to save the 

job position or avoid punishments (Naumov & Petrovskaja 2008: 83-84). 

 

The level of Uncertainty avoidance within several years has undergone noticeable 

changes; in 2006 it drop to 70 points from 95 in 2001. The phenomenon may be 

explained as due to implementation of western business standards into Russian 

management procedures, although the high uncertainty avoidance rate is still evident. In 

accordance to Naumov and Petrovskaja (2008: 82) it depends on a power distance level, 

when cultures are either in need or saturated with rules to facilitate the control and 

prevent from abuse of power. 

 

Long-Term orientation slowly changed to the opposite cultural value orientation; 62 

point in 2006 and 81 back in first years of implementation of new public management 



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techniques. The answer is enclosed in the country’s legislation incompleteness in 

financial, economic and labour fields, as well as individualistic values to evade a law 

with a purpose to generate an additional profit.  “Business is seen as a tool to capture, 

gain profit quickly and hide it from the state” (Naumov & Petrovskaja 2008: 85-86). 

 

Principles of constructing Russian mentality lay in a variety of nations gathered under 

“one roof”. In 1900
th

 Soviet government united over 10 states in one empirical union 

and for over 90 years political activity was led by representatives of Russian, Georgian 

and Armenian cultures. Studies in national characteristic features preliminary focused 

on Tsar’s and Bolshevik’s periods, when cultural formation became completed. The 

attitude of Russian people were defined as committed to excessive collectivism, apathy, 

suspicion, pessimism, craving to cheating, fickleness in work motivation and self-

insolation. (Lewis 2006: 372). 

 

During centuries theses collective unconsciousness played to government’s advantage 

thanks to people’s submission and patience, especially in terms of autocratic regime. 

Specificity of Russian culture is also enclosed in the country’s territorial space and 

climatic conditions, which made population in various parts of the country to feel 

abandoned and vulnerable in face of nature and social difficulties. In order to survive 

people were easily leaded by the will of authorities (Lewis 2006: 375-377). 

 

In spite of big influence of globalization and new public management models, Russian 

business and management culture is still conserve some features of centralization of 

management functions and application of directive management techniques. 

 

 

2.5. Values and organization 

 

Interrelations between values are blurred; they are not always inconsistent, on the 

contrary they imply a required balance, thus establishing an optimal equilibrium. 

Culture and social structure influence one another. Cultural orientations originate from 

the structural apparatus of society and provide the leaders, controlling social 



22 

institutions, purposes of their activities and arguments to support these activities. 

Success of the social institutions reinforces cultural values consistent with their activity. 

Failure of the social institutions leads to losing legitimacy of associated with their 

activity values and justifies extension of the alternative (Schwartz 2009: 138-139). 

 

Recognition or adaption of institutional and organizational values on individual levels 

would be the most probable answer to the question about continues existence of certain 

cultural systems. Individual values in any way affect the distribution of ideas within the 

organizations; the greater is similarity of certain values among the members of one 

organization, the bigger is probability to establish common objectives by means of 

implementation of single type of methods (Schwartz 2009: 141).  

 

National culture is slowly modifying under the influence of institutional and 

organizational value tendencies (Figure 3). Globalization and universal value 

orientations penetrate through the filters into the depths of the traditional cultural 

visions and partially adapt them to international benchmarks.  

 

 

 

 

Figure 3. Interaction of values (Schwartz 2008 & Hofstede 2001) 



23 

 

Political system is an aspect of the social structure which is tightly connected to the 

culture. Bribery and corruption are directly dependent on cultural orientations and 

hierarchy. The more culture emphasizes on the identification with its own group and 

performing duties in accordance to hierarchic social order, the more corruption spreads 

within the country (Hofstede 2001: 116). Rational managerial mind set is suppressed by 

exalting certain people, usually leaders, or clan in general. Research conducted by Kohn 

and Schooler (1982:1281-1282) showed that the more control and pressure is imposed, 

the less autonomy and creativity indicators were found in the ethnic group of society. 

 

Exploitation of resources for economic development prevails over the development of 

natural resources and protection of peoples’ welfare, whose interests are in conflict. 

Competitive relations are characterized by pursuit of ones interests and increase of 

individual benefits. This type of economy corresponds to a high level of mastery and a 

low of harmony. Competitive economy conforms to the hierarchical cultures, opposed 

to harmony; unequal distribution of resources is achieved by increasing own revenues to 

the detriment of others. A strong orientation toward mastery values, especially in the 

area of economic development under the condition of omniparity can contribute to 

democratization of the political sector and social institutions. Competitive economy 

rather destroys than creates freedom.  Strong dependence on external expectations 

deprives people of the opportunity to cultivate their own interest; this contradicts 

intellectual autonomy (Lebedeva 2008: 84-85). 

 

Cultural value orientations do not stay behind each single individual; they demonstrate 

the functioning of social system, creation of ideological soil as well as harmonization of 

various processes. The data on cultural orientations aids to establish causal relationship 

between culture and important social phenomenon. 

 

 

 

 

 



24 

3. ORGANIZATIONS AND INSTITUTIONS 

 

Institutions are inevitable parts of our lives. Institutions by means of coercive regulate 

people’s behaviour in accordance with socially accepted norms. Weber (1978: 548) 

considered institutions as public agencies founded on rational stipulations which must 

be obeyed by individuals in the society. The source of reproduction of public 

institutions does not proceed from a basic compliance with the norms and laws; it 

originates from a generally recognized legitimacy of institutions. Cognitive grounds of 

the political order are rather built upon practices and traditions than social liabilities. 

 

 

3.1. Organizations as social systems 

 

Neo-institutionalism is a theory that interprets political institutions in terms of 

interactions of formal and informal rules of the game. Special attention draws upon 

value orientations as well as stereotypes and procedures that affect the policy (North 

1990).  

 

Richard Scott (2000: 12) defines institutions as multifaceted, durable, social structures 

made upon symbolic elements, social activities and human relational resources. 

Institutions themselves rely on relatively stable set of rules and organizational practices 

inherent in their structures, values and resources. Institutions are relatively invariant 

under a change of actors, resistant to specific preferences, expectations and external 

environmental influences. Corporative behaviour of actors is shaped under the 

prescribed rules of standards and practices due to the fact that institutions are socially-

based structures, they tightly depend on the history and culture, since the meaning of 

their existence retraces to the purpose of life and vectors of human nature development 

(March & Olsen 1984: 738, 741). 

 

“Institutions are the rules of the game in a society or, more formally, are the 

humanly devised constraints that shape human interaction. In consequence they 

structure incentives in human exchange, whether political, social, or economic. 

Institutional change shapes the way societies evolve through time and hence is the 

key to understanding historical change." (North 1990: 3.)  



25 

The theory of rational choice, which places the rational individual into the centre of 

social system, indicates on his ability to choose the best scenario (the strategy) for 

activity, relying absolutely on his personal preferences considering the profit and loss 

calculation results. Institutions in this context take on the role of regulations for human 

interactions and arrangements which reduce the level of uncertainty and transactional 

costs. Institutions adjust external boundaries for individual behaviour, acting in this 

sense as regulatory frameworks (North 1990: 3-4, 17). 

 

Sociological approach to neo-institutionalism is associated with an emphasis on self-

organization of social structures, norms and practices. Greater emphasis is placed on the 

problem of aggregation and articulation of social group interests, meaning the values 

and attitudes of the mass. Collective decisions are not a simple sum of individual 

decisions. Along with decision-making of individual and social group levels, 

Institutions make a great impact on guiding aggregating interests to certain directions 

(Scott 2000: 33-34). 

 

Historical institutionalism defines institutions as formal and informal procedures, norms 

and agreements, deeply rooted in the organizational structure of the political systems. 

Initial choices have a profound influence on subsequent political decisions. Institutes 

provide rather a long-term continuity than innovations. Power and political interests 

became a desired objective. The interests are formed collectively by actors and 

institutions that bear the traces of their history (Scott 2000: 32-33). 

 

 

3.2. Organizations and legitimacy 

 

Sociological theory of organization suggests perceiving the actors as those who do not 

know their rational interests, in other words, cognitively dependent. Being limited in 

time and information drives actors to follow same procedures, routines and procedural 

scenarios.  

 



26 

The concept of institutional isomorphism advanced by DiMaggio and Powell (1983: 

150-152) defines a number of mechanisms, which implies a struggle for political power, 

legitimacy and social compliance: 

1. Coercive Isomorphism is associated with political influence and legitimacy, an 

impact of other organizations including own standards, procedures and laws on 

institutions from other social structures. Coercive isomorphism is caused by both 

formal and informal pressure that is asserted on subordinated organizations. Such 

pressure may be perceived as brute force that is resulted in persuasion or collusion. 

2. Mimetic Processes is characterized by provision of standard answers to uncertainty, 

tendencies to borrow other organizations management models and technologies, 

contradictory goals, unstable social environment. 

3. Normative Pressures are caused by professional, social or moral commitments. The 

key point is to consolidate the actors into a professional group for the planning, 

development and modernization of various structures and laws in political systems. 

This principal can be also defined as a collective struggle among the actors of 

organizational environment or occupational groups for control and attempts to 

legitimate their professional interests. 

 

Institutions decide upon a political development, they determine regularity and 

predictability of behaviour along with a choice of alternative political projects. If a 

policy responds to the sustainable democratic nature, then institutionalization leads to 

the rationalization of authority and conventional participation of civil society in politics. 

In case of authoritarian policy social participation in politics becomes limited as well as 

spheres of public life poorly demarcated. Low political institutionalization is possible 

either in the traditional society (low level of involvement and participation of civil 

society in politics) or in the process of transition and modernization (high level of 

involvement). Institutionalization indicates the stability, repeatability and routine of 

political practices. Institution can be defined as a stable political model characterized by 

particular social behaviour and interactions (Huntington 2004: 12). 

The non-western political process (Pye 1958: 470-472), devoted to Russia, describes the 

political organization as a system of not defined boundaries between areas of public life, 

including a social split in understanding of the basic political objectives and policy 



27 

tools, a preponderance of  voices of elites when decision-making, a gap between words 

and actions of the political actors, sharp differences of  political orientations in society 

and emotional perception of the political actions, etc. Thus, the power and influence of 

political institutions is explained by their degree of correlation with the traditions 

accepted in society.  

 

 

3.3. Ruling elites 

 

The classic definition of institutions as rules of the game derived by D. North (1990), 

draws attention on the duality of institutions: their ability to regulate human activities 

within certain limits, thereby reducing uncertainty and meeting the needs of the 

individuals and organizations. These activities define a wide range of relationships 

between individuals, including those within the ruling elite, including the rules for 

internal recruitment, as well as the rules limiting areas of influence and standards for 

exchanging the information (Ostrom 1986: 15-16). 

 

The theory of social stratification (Weber 1978: 935) refers to the social inequality 

prevailed in the course of historical development. According to it, some groups of 

people were endowed with more resources than others, mainly political resources. The 

theory of social stratification defines the ruling elite as a key subject of politics. Ruling 

elite is a team with a high level of cohesion that differs from others by its nature of 

being a decision-making centre, and abilities to influence the direction of social and 

political development. 

 

Russian political sociologists characterize political elite as a number of specific features 

that directly affect the activities to change the institutional structure. Informal practices 

or the process of informal institutionalization is understood as a "stable type of political 

behaviour that is expressed in a certain system of a collective action" and recorded in 

minds of the participants as the tendency to a definite way of perceiving the reality and 

in connection to that choosing respectively narrow set of actions (Kasamara & 

Maksimenkova 2013: 46).  



28 

"In contrast to formal institutions, informal institutions are the product of a 

spontaneous evolution of society along with a free choice of institutional 

standards made by the parties of a transaction." (Libman 2006: 54.)  

 

Arthur Bentley (2008: 240, 332) advanced the idea that the group is a basic unit of 

society and politics should be seen as a process and result of interaction between 

different groups of interest. Under the group Bentley sees such an “association of men”, 

which should be considered not as an abstract physical unit of society, but an activity of 

the “whole”. Common interest forms the basis of existence and provides with the 

objectives for the group’s activities. Individual political beliefs and interests have 

practical value only by the extent to which they are fused with political opinions and 

interests of the entire group. Political society poses a constant conflict between different 

groups that stand for their interests. In order to subordinate to the will, social forces 

driven by the ideas of political groups, are seeking for methods to control and influence 

political and administrative institutions. 

 

Russian sociologists see the potentials of ruling elite in performing general stabilization 

and control over the social system. This group shall aim at developing and transmitting 

basic principles, including the rules for society and its members individually, 

committing to maintain them by implementing various types of sanctions. Besides, this 

group is assigned to control main social resources by distributing them accordingly to 

interests of both, the society and their own. (Duka 2008: 146.) 

 

3.3.1. Formation of the ruling elite in the Russian Federation 

 

Formation of "new" ruling elite is inextricably linked to transformation of the social 

structure. There are two basic theories describing the formation of the ruling society. 

The first is associated with the idea of reproduction of elites, formulated in number of 

Eastern European studies. According to this theory, during the transition to the post-

communist societies a certain part of the governmental staff succeeded to "convert" 

their former political capital to economic capital, thereby becoming the class of large 

owners (new bourgeoisie), gaining political strength and saving the elite positions 

(Steen & Gelman 2003: 82-83). 



29 

Following this scenario, it can be expected that despite the collapse of the communist 

regime and changing nature of the social inequality, many people who used to form the 

class of elites back in the past, will continue holding privileged positions in the new 

society (Steen & Gelman 2003: 109).  

 

Former bureaucracy uses internal mechanisms such as close personal contacts with the 

aim to remain the elite status. This conversion was prevalent among post-communist 

countries especially during the process of privatization of state properties. Government 

officials at central and regional levels who managed to build their careers in politics due 

to the membership in the Communist Party, were given with the exclusive rights to 

decide whether or not to privatize the state-owned enterprise, to whom and at what 

price. Quite often these same officials obtained either the controlling set of stocks or 

large cash rewards for contribution to successful bargain (Duka 2008: 133). 

 

Another theory on ruling elites is related to the idea of circulation of elites (Pareto 1963: 

1548-1549). The idea is rooted in the fundamental social transformation in former 

socialist countries, which will result in the total substitution of elite. Formation of the 

"new" elite is caused by restoring previous rights to the third and the fourth generation 

of the bourgeoisie, which after the Second World War (even earlier in Russia) and the 

establishment of the Soviet system in Eastern Europe was expelled from their positions 

due to compelled emigration or acts of forcible-proletarianization. However, such a way 

of formatting the "new" elite has not committed in any of the post-communist countries.  

 

The main characteristics of the social political development of Russia lie in the 

specificity of national mentality and political culture, which determined the nature of 

the national elite formation mechanisms. A major impact on the formation of the 

Russian elite and the development of its functioning systems proceeds from the 

geographical position, as the county is located between European and Asian continents. 

Two opposite socio-cultural types laid the foundation of a dualistic culture of the 

political leadership. Vast territories inhabited by different people belonging to different 

religions, ethnic groups and cultures, determine the need to establish a single, 



30 

centralized power and consolidate the model of authoritarian government (Lewis 2006: 

375-377). 

 

Most authors see a genetic link between modern political elite of Russia and former 

Soviet nomenklatura, which in comparison to other post-communist societies of Eastern 

Europe, has not undergone radical rotation during the systemic reforms. As a sequence, 

modern ruling elite  inherited a number of characteristics from the Soviet government, 

which in its turn prevent democratization of political institutions and proper functioning 

of the market economy (Duka 2008: 133). 

 

The critical times of 1980-1990 have not brought any revolutionary changes and the 

idea of perestroika has not been accomplished in terms of adopting new methods of the 

political control and state management. There was no possibility to raise fundamentally 

different political mentality, but the opposition as such did not exist in the Soviet Union, 

moreover even the ideas of creating new elite did not occur for many decades (Duka 

2008: 133). 

 

During the post-Soviet period there was a big discrepancy between the traditional 

understanding of elite and the real possession of political power. Being part of a team or 

community or holding a financial status used to ensure the entry to political circles. This 

criteria indicates on a low competence of a significant number of officials; the 

corruption mechanisms that were embedded to whole political system resulted in 

official’s unwillingness to develop professionally. This situation was provoked due to 

the weakness of civil society, lack of civil control over the activities of the ruling elite. 

In fact, the elite recruitment process became an internal function of the ruling political 

elite; formation and renewal of elite membership turned into the self-reproduction of the 

ruling class (Duka 2008: 135). 

 

The complexity of situation on the governmental levels is characterized by preserving 

same expert and management membership; additionally majority of present political 

and executive leaders completed their degree education in schools of security forces, 

therefore focus mainly on the loyalty to the leader and are endowed with a particular 



31 

style of thinking towards execution of their duties, thus developing new corporate 

values (Duka 2008: 135). 

 

For centuries the traditions of the Russian authorities were established under the 

monopolistic influence of authoritarianism and bureaucracy. In comparison to European 

bureaucracy formed on the legal and professional principles and values, the Eurasian 

bureaucracy tends to traditionalism, orientation to patterns and hierarchy. Due to 

vertical alignment of power, the development of the political system is obstructed, 

especially in terms of meeting the requirements of new challenges of globalization and 

new public management reforms. (Duka 2008: 134). 

 

Russian political process of the last decades does not comply with an appropriate level 

of governance which would correspond to challenges of globalization. In its turn, 

Russian political elite is increasing the requirements for management efficiency and 

quality management conforming to a new bureaucratic system, whereas serious 

discrepancies between political ambitions and the level of professional qualities have 

been identified (Duka 208: 140). 

 

However, the only possibility to predict the success of the political elite actions in the 

process of changing institutions, is objectively evaluate the range of resources available 

for realization of their strategic plans and intentions. The abilities of the ruling elite to 

use a variety of resources: information, organizational, structural in order to consolidate 

its ruling position, determine the stability of the elite group.  

 

The only way to rectify the political situation and modify the essence of political elite 

from profit business organization back to institutional guarantor, is to increase the level 

of governmental transparency, develop objective criteria of elite groups of society and 

strengthen the public control over the formation of the ruling elite (Duka 2008: 144). 

 

 

 

 



32 

4. SOCIAL AND POLITICAL RELATIONS 

 

The relationship among members of one society goes through establishing social 

networks and interactions. By building communities people create valuable assets that 

make them believe in particular set of norms that characterize community as a single 

unit. 

 

 

4.1. System-environment relations 

 

Globalization is a key to the general development of any sector of political, economic 

and social lives. Globalization encourages the governments to start changing processes 

in order to replace unpopular obsolete reforms with new modernized ones that 

correspond to people’s expectations, aimed to public good as well as survival in 

conditions of global competitiveness.  

 

Globalization is a rapidly developing process of complex interconnections 

between societies, cultures, institutions and individuals world-wide. It is a social 

process which involves a compression of time and space, shrinking distances 

through a dramatic reduction in the time taken - either physically or 

representationally – to cross them, so making the world seem smaller and in a 

certain sense bringing human beings closer to one another. (Tomlinson 1999: 

165.) 

 

Globalisation as a phenomenon provides with a wide number of opportunities in order 

to progress in constructing a welfare society, although it does not guarantee an equal 

success to each state, which is taking this way. Historical, cultural or legislative 

background in some cases is a formidable obstacle on the way to change that originates 

in governmental bodies or society’s mass consciousness (Dunleavy & Hood, 1994:10). 

 

Nation –States are always standing at the edge of deciding either shifting the policies 

and political actions in favour of global purposes or actual practices. Functional models 

inherent in the globalization processes is a theoretical product of potential opportunities 

aimed at reorganization and development, but not a final product ready to be 



33 

implemented into the social and governmental processes of different social-political 

institutions (Meyer & Rowan 1997: 145). 

 

Seems fair to assert that the state is the result of historical, economic, political and 

foreign policy of a particular society focused on creating a rigid political framework that 

ensures territorial, institutional and functional unity, besides its own authorized body 

and the national political system. Globalization, in its turn, does not claim to abandon 

sovereignty and establish a single world state; it aims to change the prerogatives of the 

nation-state through allocating and distributing the world culture by implementing these 

values into the legal and national interests of legitimated authorities (Meyer et al. 1997: 

156-157). 

 

National-states are rational actors whose main objectives are embedded in protecting 

group’s interests through using tangible and intangible resources, institutions and 

various politically institutionalized processes. However, globalization is changing 

social-economic and political picture of the world by means of transformation of the 

inner essence of the state. Withdrawing the standard functions of organizing and 

management its physical and political space. Versatility of the modern world in terms of 

cross-cultural and cross-country interconnections compel the nation- states to found 

their legal activities on the international principles of public policy, thereby adapting 

and adopting common standards to the internal political and social activities. Hereby, 

the dependence of local social systems to universal culture and values is obvious. In 

order to obtain the full legitimacy the internal social and political structures must go 

through the process of reconciliation with the rules and requirements that, in majority 

cases represent the universal values and standards (Meyer et al. 1997: 157-158) 

 

Rational organizations at the head of national-states spread the dominance on the 

increasing number of spheres of social life; organizational structures start reflecting the 

rules, institutionalized and legitimated by the State or within it. As a result, 

organizations are becoming more homogenous within certain areas and to the great 

extent concentrate around more powerful structures. Following this, the organizations 



34 

are involved into a ritualized control of credentials and group solidarity (Meyer & 

Rowan 1997: 345). 

 

Institutionalized rules are classifications that embedded in society as mutual 

typifications or interpretation. Such rules can be either simply taken for granted, or be 

supported by public opinion or the law.  The institutions will inevitably contain 

regulatory obligations, but in social life often serve primarily as facts that actors have to 

take into account (Berger & Luckmann 1967: 56-58, 79-80). 

 

The relationship between institutions and organizations is represented as: organizations 

are created to achieve certain goals by means of institutions (restrictions) that provide 

opportunities for relevant activities held in organizations; during the process of 

achieving the goals, organization becomes the agents of institutional changes. Hence, 

organizations play the role of actors of economic, political, and other processes, 

meanwhile institutions are seen as just the rules or references. Organization according to 

Douglass North is a group of individuals united by a desire to cooperate in order to 

achieve a common goal (North 1990: 5). 

 

 

4.2. Development and change 

 

Organizational and institutional changes differ in terms of methods, pace and timing of 

implementation. Management of organizational changes is generally narrowed to the 

impact of administrative bodies on certain organizational units or entire organization 

with a view of improving their qualitative and quantitative characteristics. Any change 

is aimed at the development of the organization. Development can be understood as a 

sequence of actions which must result in a progressive transformation, followed by the 

transition to a new qualitative level of performance. This development usually takes 

place when overcoming the crisis times either within the system itself or within the 

environment where the organization is functioning. Successful management is 

determined by the resources capacity of an organization, including the effectiveness of 



35 

management and the influence of external factors, such as economics and social 

(Huntington 2006: 93, 99-100). 

 

“The most important political distinction among countries concerns not their form 

of government but their degree of government. In each country the citizens and 

their leaders share a vision of the public interest of the society and of the 

traditions and principles upon which the political community is based.”  

(Huntington 2006: 1.) 

 

Selection theory describes the process of managing and developing organizations in the 

logic of natural selection of social cultural patterns of organizational behaviour. This 

approach assumes that organizational changes are achieved not due to a strategic choice, 

but rather a preceding development of organization (Hannan & Carrol 1992: 4). 

 

The key statements of Selection theory provide a large understanding of methods of 

organizational change in the field of public administration. Conservatism and low 

adaptive capacity are the core features of the public-service organizations. These 

organizations are part of organizational population, therefore each process of the 

development or change is a consequence of a natural selection that takes place in 

organizational population under the influence of external pulses (Huntington 2006: 52-

53). 

 

One might consider that each reform is long process of a rational design; nevertheless it 

is challenging to take into account all aspects of the external environment and predict 

possible risks. This situation is especially relevant to the structures with not defined 

mechanisms for social networks. Low efficiency of the administrative reform is 

explained by the fact that the managers are highly influenced by the political and 

cultural systems which create the artificial filters and modify the perception of the 

external environment (Huntington 2006: 99). 

 

In terms of Selection theory, changes in the civil service organizations are very 

conservative, the reforms are rational and limited, selective mechanisms are 

experiencing lack of competition that prevent an effective and accountable style of 

performance. 



36 

 

According to Neo-institutional theory, civil service organizations are the product of 

adaptation to socio-cultural environment, exclusively to institutional regulations such as 

legal or behavioural. The reasons for organizational ineffectiveness were revealed by 

the scholar D. North (1990). The author of the analysis in the field of Institutional 

Change and Economic Performance explained the problems of not-functioning of 

institutions owing to the impact of certain groups’ individual values and personal 

interests. Evolution of society depends on once selected institutional vector of 

development. Therefore, according to D. North, new and more efficient “rules of the 

game” may remain postponed because their implementation requires significant initial 

investment, which are not necessary when maintaining the processes of old politico-

administrative regimes (North 1990: 56-57). 

 

Kurt Lewin (1947) substantiated two major change management concepts, which were 

subsequently tested in his research in order to help to understand the nature of resistance 

to change and the stages of the behavioural change in groups. Core idea remains in the 

assumption that organizational change is possible only if it would apply on the peoples’ 

mind set in the first place. Therefore, with the purpose to complete organizational 

change, it is essential to make sure that the objectives are understood, accepted and 

implemented by all employees. It should be noted that changes in any stage of their 

implementation might be subjected and compromised (Weick & Quinn 1999: 362-363). 

 

Lewin asserted, the process of changing a group of people (whatever it is, ethnic 

community, organizational staff or board of directors), should pass through three stages: 

"Unfreez", "Change" and "Refreeze." The "Unfreezing" stage is represented by the 

process of destruction of the existing system of value orientations of the group. At the 

stage of "Change" the group needs to acquire a new system of values and motivations, 

that can be fasten at the last stage of "refreezing". Experiments conducted by 

researchers clearly demonstrate, the quality of implementation totally depends on the 

completeness of process realization in each of the stages of the organizational change 

(Weick & Quinn 1999: 366). 

 



37 

The change in terms of practical management is embedded either in structural or 

process- oriented management components. These components are explicitly described 

in "Theory O" and "Theory E", which cover the organizational change either from the 

perspective of organizational structure or human behaviour. "Theory E" focuses 

primarily on the strategies, structures and systems, which can easily be changed from 

top to bottom, and bring a quick result/outcome. Theory “O” contains certain 

similarities with the Lewin’s change management model. In contrast to the first stage, 

Theory “O” involves the idea of creating a system of values corresponding to the 

change management tasks. Besides that the theory focuses on the development of 

employees capabilities with the aim to involve them into a decision-making process 

with respect to organizational problems. The core principal is to create a working 

system, in which employees are emotionally tied to the company's development 

objectives. Cultural changes require the management to foster the emotional 

involvement of employees to support a new structure and soften their resistance (Beer & 

Nohria 2000: 3, 8, 15). 

 

By the beginning of the 21 century the Russian system of executive power accumulated 

an eclectic and contradictory variety of managerial structures, in addition to regulatory 

tools inherited from the period of the Soviet governance. This system was inefficient 

and conflicting in terms of functionality and created serious administrative barriers to 

business. The accumulated problems and conflicts could not be resolved by partial 

organizational decisions. It was necessary to start with a blank slate, design a logical 

and consistent structure of executive authorities. No organizational change can be 

conducted in a sole way; no authoritarian leader can bring true strategic decision in 

regards to various organizational transformations into life, if the corporate culture does 

not meet necessary requirements. Therefore, the success to achieve any result lies 

primarily through the development of a corporate culture and a direct involvement of 

employees, which can be achieved either via organizational learning, or individual 

incentives and directives, depending on the corporate/state mentality and moral set of 

values (Beer & Nohria 2000: 24; Schwartz 2008).   

 



38 

Reorientation of a corporate culture can only be realized in a few years at best. 

Therefore, in case of lacking the experience in the field of administrative and change 

management when cardinal and rapid changes are required, state-level organizations 

usually resort to adaptive random transformations instead of developing gradual and 

rational approaches, forming the tradition of tolerance (March & Olsen 1984: 475).  

 

 

4.3. Public service motivation 

 

Public service motivation (PSM) methods studied the motives that drive people to 

complete diligently their duties at a work place in public administration field. According 

to James Perry and Lois Wise (1990: 368), public service motivation is “an individual’s 

predisposition to respond to motives grounded primarily or uniquely in public 

institutions and organizations”. 

 

The authors described the model of PSM theory is based on three core perspectives: 

Rational motive, Norm-based motive, Effectiveness. In their turn they were exanimated 

from a standpoint of four critical dimensions: Attraction to public policy making, 

commitment to the public interest, self-sacrifice compassion  

1. Rational motives are based on servant’s commitment to a public program due to their 

personal (group) interest that enhances the level of self-importance and self- 

identification with a program. Citizens in strong uncertainty avoidance cultures do 

not believe they can influence decisions made by authorities. Civil and public 

servants try to avoid participation in policy-making processes and believe in 

uselessness of protest actions against political reforms despite all disagreements with 

political system (Perry & Wise 1990: 368; Hofstede 2001) 

2. Norm-based motives refer to public servants capability to fulfil appropriately their 

duties, which aimed at serving public interest and being loyal to government as a 

whole. Group and hierarchical relationship in collective cultures tend to appreciate 

more moral values than economic (Perry & Wise 1990: 363; Hofstede 2001). 

3. Affective motives boils down to evaluation of society’s level of disposition to 

demonstrate emotions, motivated by empathy and pro-social behaviour. Russian 



39 

society according to Perry’s model belongs to effective cultures, where people are 

predisposed to compassion (Perry & Wise 1990: 369). 

 

Founded on these dimensions the research carried by Pippa Norris in 2003 provided 

new explanation on low and high levels of PSM. The author claimed, the index depends 

on an effectiveness of New Public Management reforms along with historical labour 

and economic patterns of each country. In post-Communist countries the lower index is 

caused by the citizen’s distrust to public authorities affected by decades of living under 

the totalitarian regime (Norris 2003:73-74). 

 

Citizens in strong uncertainty avoidance cultures do not believe they can influence 

decisions made by authorities (Hofstede 2001). Civil and public servants possess a low 

extent of social and political trust that results in avoiding any policy-making processes 

and strongly believe in uselessness of protest actions against political reforms despite all 

disagreements with political system. 

 

 

4.4. Social capital and trust 

 

Social capital as a temp was derived in the beginning of 20
th

 century by Lyda Hanifan in 

order to describe and estimate life standards and preferences of each community 

towards social life values. When talking about social capital, the author refers to peoples 

values that are particularly relevant to their daily live, such as “goodwill, fellowship, 

sympathy, and social intercourse among the individuals” (Hanifan 1916: 130). 

 

One of the main components of social capital is trust that in its turn promotes the 

establishment of a productive cooperation that is based on mutual respect, solidarity, 

reciprocity and as a most important collective behaviour. Trust might be seen as a unit 

of measure people refer to when make their judgment about daily experiences and the 

world around them (Beem 1999: 20).  

 



40 

In 1999 Newton suggested to be more specific about the term trust when divided it into 

two categories, social and political. He claimed that high rate of social trust among 

individuals partly depends on personal success and satisfaction with the life standards, 

participation in voluntary organizations that strengthening the confidence between 

people. Political trust is evoked by people’s interest in politics on the condition that it 

consents with a political course, integrity and efficiency of government bodies as well 

as possibility for citizens to be involved in decision-making processes that comply with 

public interest and are aimed at public good (Newton 1999: 174-176). 

 

In order to achieve public trust, people should “rely upon institutional arrangements for 

enforcing accountable and trustworthy behaviour on the part of political leaders” 

(Newton 1999: 1976). In their turn, the political leaders must guarantee the preservation 

of equality and liberty as essential values of modern democratic societies brought by 

waves of globalization. Credibility of political institutions also provides the raise of 

trust of inter-personnel interactions (Seligman 1997:101). 

 

Effectiveness of a political system represented by political institutions is evaluated 

according to a number of components that characterize the level of life within one 

society: political corruption, crime rate, unemployment, growth domestic product along 

with governmental decisions, which lead to citizens’ welfare. Political trust connected 

directly to satisfactory political decisions that result in logical series of events held or 

supported by government institutions (The World Bank 1997: 3-5). 

 

Effectiveness of social and political organizations is based on cooperative social 

relationship that consecutively relies on individual social trust. Hence, with little or no 

consideration of these related sequences, the success of establishing efficient and 

legitimate authority is impossible. Seligman claims (1997: 69), trust in political 

institutions also provides the raise of trust in inter-personnel interactions. Social capital 

has also been studied as forming idea by the World Bank.  

 

“Informal rules, norms, and long-term relationships that facilitate coordinated 

action and enable people to undertake cooperative ventures for mutual 

advantage.” (The World Bank 1997: 114.) 



41 

In the end of 20
th

 century a new study on social capital had begun. Social capital started 

to be viewed as means to create a class division and establishment of elite’s domination 

over deciding political questions. Social capital is nothing more than sociological 

condition shaped for the purpose of disguising profit-seeking intentions of it holders 

(Field 2003: 17-19).  

 

Here the theory on Social capital comes to a question: How do inequality and social 

capital interconnect? (Does inequality proceed from mistrust in society?). The answer 

was partly given by Tocqueville in his research on associations and civic communities. 

Tocqueville claims (1951: 503-509), associations play a significant role in social life as 

mediators between people’s desires and political decisions. By joining associations each 

individual is capable to further ones interest by merging in larger voices, which cannot 

be simply ignored. Concentration of power in one’s hands occurs due to people’s desire 

to live an individual, separate from others live. Large communities are essential in order 

to reach common goals and learn to stand up for rights and freedoms. Author remarks, 

in order to avoid a collective oppression, people have to learn to be a single entity and 

work mutually on resolving society’s issues.  

 

Horizontally established networks compare to vertical enable to take control over power 

distribution and divide it more or less equally among the participants, thus encouraging 

the growth of social trust. Talking globally, “trust has been thought of as the foundation 

of an effective economy and government”. Nevertheless, it should not be ignored, that 

members of some groups or associations are so strongly connected that do not permit 

others to join in order to safe close ties of trust when going for goals, which might lead 

to social conflicts and inequality  (Putman 19993: 163, 172; Maloney 2000: 805). 

 

4.4.1. Trust in public sector: corruption as a reason to reduce social trust 

 

Trust has become a significant component of a successful performing of public reforms. 

Trust can be divided into three subgroups regarding subject of trust (Newton 1999: 174-

176):  

1. Trust of society in the public sector. Depends on the level of political capital 



42 

2. Trust of public sector in the society. Depends on the level of social capital 

 

“When government actors fail to display confidence in citizens, or when they 

demonstrate active distrust, citizens are more likely to become wary of 

government interventions and less likely to consent willingly … Treating clients 

with respect appears to beget reciprocity. Distrust tends to evoke resistance, 

evasion, and dishonesty.” (Cook et. al. 2005: 161.) 

 

3. Within the public sector. Refers to a classical bureaucracy described by Max Weber, 

where the relationships between competent servants are based on shared set of values 

aimed on serving public good, legally authorized and recognized by society. Efficient 

bureaucracy must be built upon a distribution of authority that is supported by 

regulations and proper management skills (Weber 1978: 956–958). 

 

Trust is seen as a component in relationship between individuals and groups that has a 

positive impact on interaction between them in a view of strengthening the links.  

 

Corruption as a phenomenon and act might provide a destructive impact on the 

arrangement of social cohesion and the perception of public authorities and  guarantors 

of public goodwill. 

  

“Corruption is behaviour of public officials which deviates from accepted norms 

in order to serve private ends.”(Hungtington 2004: 59.) 

 

Representatives of the Public Fund for Applied Political Studies, INDEM (2001) 

studied corruption from the perspective of its complexity. In the first place corruption is 

viewed as a deviation of legal practices from ethical norms of behaviour. In the Russian 

Federation such a conduct is identified with the bribery on both top and bottom levels of 

government institutions. Furthermore, in socio- economic relations corruption had 

become an element of building private/individual partnership, which resulted in 

economic and political seizure of power at all levels by the shadow, i.e. criminal 

business. Thereby, corruption is a way of obtaining the right to manipulate a large 

sector of the population for lucrative purposes. 

 



43 

Several factors generate and determinate the existence of corruption crimes: socio-

political, economic, organizational, legal and psychological (Timina 2011, 64-69):  

1. Socio-political factors refer to isolation of the civil society from the state decision- 

making and governance in general, excessive number of state and municipal 

officials, populistic nature of measures implemented against corruption; 

2. Economic factors are invoked by instability in economic sector, social inequality and 

poverty along with violation of market economy conditions and competitiveness;  

3. Legal factors are associated with a poor regulatory system, including job regulations, 

law of parliamentary privilege, lack of effectiveness of the penalty system, 

inconsistencies in legislation, and a low level of legal awareness among population; 

4. Organizational factors are grounded in an absence of the state criminal monitoring 

system; 

5. Psychological factors highlighting the lack of corporate morality and ethics, along 

with personal responsibility, nepotism, willingness of civil population to recourse to 

bribery methods if needed, people’s disregard of criminal origin of bribery.  

 

The motive for committing corruption crimes is caused by the growth of social 

inequality and the split of modern Russian society into two social classes -the poor and 

the rich. This gap leads to unsustainable consequences and social antagonisms. 

Formation of classes entails the development of serious crimes almost in all spheres of 

social life, primarily in economics (Gilinskiy 2009, 16). 

 

Let’s take a look at the recent statistics on the national income per capita within past 

years. In accordance with the research of the Federal State Statistics Service (2009-

2017), the percentage of people whose income was below the subsistence rate (7.306 

RUR in 2013, 10.455 RUR in 2015) in 2009 counted 18.4 million, in 2010 – 17.7 

million, in 2012 – 15.6 million, 2015 – 13.2 million people respectively. The 

population’s average cash income per capita in 2017 demonstrated the following values: 

about 11% of population receive the salary of up to 10 thousand RUR; 15% earn in the 

range of 10 to 15 thousand RUR; 14% of working populations gain an amount of 15 to 

20 thousand RUR, 21% from 20 to 30 thousand RUR, finally 26% of the population 

receive from 30 to 60 thousand RUR monthly. The average salary of employees is 



44 

increased from 2013 – 25.928 RUR in 2013, to 27.767 RUR in 2014 and 30.474 RUR 

in 2015. It is also worth mentioning that the exchange rate in the first quarter of 2017 

stood at the average 61 RUR for 1 EUR, compared to average 45 RUR in 2013. The 

annual inflation in the 2015 reached the point of 15% or 50.27% in past 5 years (The 

Central Bank of the Russian Federation).  

 

Gilinsky affirms (2009: 22), an individual is engaged in any form of action for the sake 

of meeting one’s own needs. The opportunities are unequal. The main source for 

satisfying personal needs is socio-economic inequality, heterogeneity of the society. 

The ability to address the needs is closely related to the social or economic status. It 

should be noted that the economic partnership is accompanied by a large number of 

crimes. 

 

According to the website of The Ministry of Internal Affairs, during the period from 

2010 to 2015, the following number of economic crimes was committed (Figure 4 and 

Figure 5): 

 

 

 

 

 

Figure 4. Dynamics of economic crimes (Ministry of Internal Affairs of the Russian 

Federation 2016) 

276,435 

202,454 

172,975 

141,229 

107,314 111,244 107,630 

0

50,000

100,000

150,000

200,000

250,000

300,000

2010 2011 2012 2013 2014 2015 2016

Dynamics of economic crimes  
(in thousands) 



45 

 

 

 

Figure 5. Dynamics of economic crimes under article № 290 of the Penal Code 

(Ministry of Internal Affairs of the Russian Federation 2016) 

 

The most important institutional element for controlling and organization public life and 

political power in the state is the Administrative institution, which strategically and 

tactically determines the directions of the state development. Ironically, same time the 

Administrative institution may cause manifestation and consolidation of corruption 

within all types of socio-political relations. The central link in the administrative 

apparatus is an employee, an official. As noted previously, the lack of control over 

administrative power entails bureaucratization of society, corruption, administrative 

despotism. In turn, in the societies with high level of Mastery and Hierarchy 

embeddedness, subordination and control over the public sector activities is an essential 

element. Thus, only discipline may guarantee the administrative authority to perform for 

the benefit of the individual customer, society and the state, consequently to enhance the 

social capital and trust towards state institutions and public sector employees (Gilinsky 

2009: 244). 

 

 

 

 

7,747 

6,947 
6,576 6,710 

5,945 
6,399 

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2010 2011 2012 2013 2014 2015

Dynamics of economic crimes: bribery           
(in thousands) 



46 

5. PUBLIC ADMINISTRATION AND PUBLIC MANAGEMENT 

 

Public administration studies take their initials in the 19
th

 century when governmental 

model was built upon personal relationships, when dealing in the system depended on 

“personal” approaches to particular individuals, such as leaders. Post administrative 

model widely integrated in Western Countries in 19
th

 and 20
th

 century was described by 

German scholar Max Weber (1978: 644-645), who characterized public administration 

as the process operated by professional bureaucrats who followed prescribed legal 

regulations and ethical norms based on the loyalty to the state and the organization.  

 

American politician Woodrow Wilson (1897: 212) claimed, “Public administration is a 

detailed and systematic execution of public law”. He insisted that the only right way to 

succeed in creating stable administrative system is to separate it from politics. Such a 

matter as administrative issues should not be decided by politicians in order to avoid 

corruption in the administrative bodies. 

 

 

 5.1. Rational bureaucracy 

 

The theory of Max Weber embodies the concept of a technically perfect and clearly 

organized structure of the socio-economic system. In accordance to Weber, bureaucracy 

is a special type of social organization characterized by a strict hierarchy of 

administrative bodies operating on the basis of formalized managerial procedures by 

means of special rules and regulations aimed at effective problem-solving. Bureaucracy 

must also respond to the principle of a clear delineation of rights and duties among 

employees, their subordination and promotion proportionally to service record or merit 

(Weber 1978: 226-227). 

 

At the beginning of 20th Max Weber developed the concept of "rational bureaucracy", 

which replaced the patriarchal type of organization. According to Weber, the main 

distinguishing feature of the patrimonialism system was the ability of a master to recruit 

his personal servants to take control over the area of his interest, in their turn the 



47 

servants were acting as an instrument of his personal power. Thus, patrimonial 

management promotes the selfish attitude of bureaucracy to the position, moreover, 

economic interest and benefits associated with it (Weber 1978: 238). 

 

Rationality is one of the core concepts of Weber's theory. This term was used quite 

widely and referred to various areas of the public life.   

 

“In the last resort the factor which produced capitalism in the rational permanent 

enterprise, rational accounting, rational technology and rational law, but not this 

alone. Necessary complementary factors were the rational spirit, the 

rationalization of the conduct of life in general, and a rationalistic economic 

ethic.” (Weber 1950: 354.) 

 

Weber claims, in economic science rationalization is always “positive”, since it mainly 

relies on an accurate calculation. Thus, the market economy is also formally rational 

due to its purely quantitative essence and the fact that it is never takes into account non-

economic aspects. Negative consequences of rationalization come out when individual 

or group practices are centred on personal economic interests. According to the author, 

bureaucracy is an ideal example for positive and negative rationalization existing side 

by side.  If bureaucracy exists only to promote various directives and decrees, in this 

case it is classified as negative or irrational bureaucracy. Whereas, positive or rational 

bureaucracy serves to save effort and time, making management procedures as efficient 

and effective as possible (Weber 1978: 227-229). 

 

In line with Weber's theory, bureaucracy is a positive form for organizing collective 

activity. Bureaucracy in positive term is a role model for any institution that adheres to 

orderliness and rationality. Reaching the purely bureaucratic way of exercising the 

administrative authorities is to obey the principles of the highest degree of effectiveness 

that reside in stability, precision, discipline and accountability (Weber 1978: 223). 

 

Max Weber emphasized, modern bureaucracy should act in accordance with formal 

rules and special knowledge applied in the management process. In addition, the 

concept of rationalization may imply a logical coherence, consistency as well as 

systematization of any knowledge and information. 



48 

5.2. New Public Management model 

 

New Public Management (NPM) aims to integrate specific political methods into 

executive and public service apparatus. Set of measures implemented in the course of 

administrative reforms is based on two fundamental components which contribute to 

functioning of the system; those are academic discipline and continuous studying and 

practicing of public service management (Barzelay 2001: 16) 

 

The key difference of New Public Management from the classic model of rational 

bureaucracy is to incorporate market processes within public sector and to borrow 

management techniques which were previously practiced only by private companies. 

First of all, this could be completed when minimizing the size and sources of public 

administration: privatization, decentralization, deregulation, as well as delegation of a 

number of state functions to private authorized institutions. Reduction of government 

costs could be achieved through restructuring and marketization, revision of state duties 

or release of state bodies from executing some of them. The last but not the least, 

improvement of public financial mechanisms and budgetary system, including 

liquidation of the corrupt activity in the public sector (Wollman 2003: 23-24, OECD 

2005: 81, 104). 

 

New Public Management model calls into question the effectiveness of the traditional 

model of public administration and revises the conventional role of the state in the life 

of society, since it perceives the state as an employee whose main function is to produce 

public services.  On the basis of that principle professor Michael Barzelay distinguished 

four discrepancies between traditionally bureaucratic and post bureaucratic models of 

governance, New Public Management (Table 2). 

 



49 

 

 

 

Table 2. Bureaucratic vs. post- bureaucratic  model of organization (Barzelay 2002: 

101-107) 

 

Public administration reforms implemented through the New Public Management 

ideology imply the adaptation of a successful business management technology for 

public sector management purposes.   

 

“New Public Management paradigm” as the entire collection of tactics and 

strategies that seek to enhance the performance of public sector – to improve the 

ability of government agencies and their non-profit and for-profit collaborators to 

produce results.” (Behn 2001: 26.) 

 

Concept of the New Public Management service defines the role of the state as a market 

participant. According to the author, the philosophy of NPM is that the government 

remains the prerogative of policy-making institution, while affiliated private structures 

implement this policy in practice. 

 

The nature of the modern public administration is rather organizing the processes 

mobilizing potentials and resources, than simply being a direct provider of public 

services. The governance ceases to be a key function of the state activities; instead the 

government acquires the role of moderator of interaction processes between the state 

and civil society and a defender of public interests. Management is understood as a 



50 

system of cooperation of public, state and private-public partnership structures on order 

to increase social wealth (Behn 2001: 26). 

 

New Public Management implies transformation of the institutional-type of interaction 

within the public sector, meanwhile meeting the requirements of efficiency and 

effectiveness of power institutions. In contrast to traditional state administration, New 

Public Management in order to achieve success shall consider strategic planning 

approaches when going through reformation. Four essential characteristics of new 

public administration processes were determined by Bozeman and Straussman (1991: 

493-496): 

1. Emphasis on measurable results and outputs; 

2. Managerial instrumentalism: clear allocation of roles and responsibilities among state 

institutions.  

3. High degree of coordination and coherence between various government institutions 

and departments within their structures.  

4. Establishment of general objectives for all service provided state institutions.   

 

5.2.1. New Public Management reforms 

 

New public management reforms in accordance with OECD’s elaborated strategy on 

finding new buyers and thus enhancing the economy growth primarily were 

implemented in European countries, including the USA and Canada in 1980
th

 and 90
th

. 

Adopting private-sector approaches for the purpose of making public services 

management more customer-oriented was the main objective of the chosen strategy.  

 

New Public Management initially was focused on improving government and public 

sector performance in a view of making it less bureaucratic and corrupted, but much 

efficient, effective, flexible, accountable and customer-focused, although it is not 

always achievable. The approach to NPM is to construct a system the main principle of 

which is faith (Wollman 2003: 29). 

 



51 

Administrative reforms have never been a focus of attention of civil society due to 

people’s indifference to structural relocations, but high susceptibility towards the 

quality of services they get from the public organizations. Owing to increasing pace of 

life, society expects for flexibility and reduction of bureaucratic delays when dealing 

with public and governmental organizations. Consequently, improved productivity 

might reflect on how people perceive public – government relations along with enhance 

citizen’s trust towards government liability to guarantee common welfare and security 

(Wollman 2003: 182). 

 

New Public Management reforms are associated with a strategic course a government 

chooses in order to achieve administrative o political goals. Pollitt and Bouckaert (2000: 

176-177) distinguish four types of reformation methods:  

1. Maintain – maintenance of the existing administrative systems through tools and 

methods of political control and management;  

2. Modernize – modification or maximum improvement of management processes and 

changes in structural divisions and subordination; 

3. Marketize – stimulation of effectiveness and efficiency through implementation