Normative Structures in Law and Organisations

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1 Stubkjær: Normative structures, of 11 Normative Structures in Law and Organisations Erik Stubkjær Aalborg University, Denmark A Theoretical Base for Cadastral Development KTH, Stockholm, 2007 Overview Todays topics within the course content Structuring behavior in society through legislation and agencies: An overview of real property rights Examples of organisations and organisational interaction Organisational concepts: a. Organisational structures: The formal aspect b. Decision processes: Rational or less rational c. Views on organisations: The informal aspects. d. Organisation relative to institution in New Institutional Economics e. Organisational change: The Leavitt-Whisler model 1. The normative structures: Organisation and law Concepts: Formal, informal structures Rational decision Technology Property rights; tenure Infrastructure Law enforcement Social Values and Resources condition Organisational interactions on Development of Cadastral System comprising of Roles, hierarchies, competencies Transactions Terrain Objects Rules, Rights and obligations Information systems

2 Stubkjær: Normative structures, of 11 Dispositions: The content of Real Property Rights: 2. Real Property Rights: An overview Physical dispositions: Use; fence, build; grow, harvest; dig; hunt, collect; Legal dispsitions: sell, devise; mortgage; rent out, take lease; grant easement; subdivide, change boundary; The Unit of RP: The object of Real Property Rights: Definition of the unit Definition of boundaries and specification of location The context for dispositions regarding Real Property Units: Restrictions of R P R "Die Sozialbindung des Eigentums" Infrastructure of R P R Real Property Rights: The Property Unit A piece of the surface of the Earth, as defined by court rulings horizontal and vertical boundary delimitation of fixtures relative to movables Definitions according to statute laws (Example: Denmark) Cadastral law Land Registry law Agricultural law Property taxation law Condominium law Real Property Rights: Restrictions by society Compulsory purchase / expropriation Purchase restrictions, incl. public pre-emption rights Spatial planning, heritage protection, environmental law Adverse possession (~ protecting the more energetic user) Enforcement of Real Property Rights: The needed infrastructure Maintenance of cadastral and land registry system (the public memory) Performance of forced sales in case of mortgage default Solving title and boundary disputes (Police) Protection of privacy (e.g. removing squatters) Protection of boundary marks and other legal evidence Allowing for an operating market in loans and mortgages

3 Stubkjær: Normative structures, of Governmental bodies concerned with land administration Ministry of Environment Ministry of taxation Ministry of.. (Interior, Spatial planning) The judiciary, including local courts with Land Registry and foreclosure office Agencies, like National Survey and Cadastre National Statistics Other: property registration, management of place names Example 1: Organisations involved in Greek project (1/2) Commission of EU, DG Regional policy Greek ministries: Environment, Planning, Publ. Works Justice Economics Agriculture Interior, Public administration Foreign affairs Culture Public organisations and services: Funding project 75%, supervision Supervises project Land Registry Offices Public land Forest areas Public administration Owners living abroad Archaeological sites Organisations involved in Greek project (1b) Public organisations and services: Hellenic Mapping and Cadastral Org. Hellenic Cadastral & Mapping Service Hellenic Military Service Hydrogr..ic Service of Hellenic Navy Registry offices Universities (Athens, Thessalonika) Planning and coordination Unit within M.Envir.; work Permission for aerial phot. Mapping seashore Work Scientific advice Organisations involved (2/2) Private sector firms: Ktimatologio S.A. (Hellenic Cadastre) The Hellenic Cadastre Consult Design (engineering) offices Aerial photogrammetry firms Marketing communication firms Telephone support firms Professional associations: Technical Chamber of Greece Company; Develops cadastre Internat.l consulting consort. Collects cadastral data Makes aerial photomaps Communicates.. awareness Answers questions Developed proposal, price list......

4 Stubkjær: Normative structures, of 11 A Greek comment: "The most complex and delicate issues to be resolved included the rivalry between the public and the private sector agencies concerning the role that each would play in the development and operation of the cadastre...." P Lolonis (2000) Public and private sector cooperation in developing the Hellenic National Cadastre. Bertinoro III, 14 Dec Final report, chapter 4.3 Example 2: The organisational structure of KTH (1/3) University Management The President is appointed by government for a period of six years after nomination of candidate(s) by the University Board. The University Board also appoints Vice-President(s) for maximum six years. Should more than one Vice-President be appointed, one of them is to be appointed Deputy President. The President of KTH reports to the University Board. The board has 15 members the chairperson, who should be one of the eight external representatives, three faculty members, the President and three students. Important tasks for the board of the university are directions, organization matters and issues of principle. Example 2: The organisational structure of KTH (2/3) The Faculty Board has overall responsibility for issues concerning research, postgraduate education and undergraduate education. A number of Programme Committees and Sub-Committees are subordinate to the Faculty Board. - The composition of this board is as follows: Six teachers with a doctoral degree (or equivalent level of academic expertise); one of these is acting as Chairperson; Three students who represent the undergraduate & postgraduate education levels; Two persons who are not being employed by KTH In addition, three representatives from KTH s trade unions attend the board meetings; these have the right to voice their own opinion during proceedings. Example 2: The organisational structure of KTH (3/3) The Faculty Assembly consists of teachers with permanent posts at KTH. This body is an independent one, meant to be a forum for discussion among KTH staff of general issues concerning both education and research. Schools Since 2005, KTH is organised into [12] Schools in order to create a more clearly structured and flexible university for both in-house operations and external cooperation partners.

5 Stubkjær: Normative structures, of 11 An organisation is 4. Theory of organisations: Definition a named and located entity, made up of a group of individuals, who perform work in specialized units coordinated by rather permanent relations and procedures as stated in written articles, to achieve the goal of the organisation Theory of organisations: Formal structure (1/3) Hierarchy The only direct links in a (power) hierarchy, insofar as they are hierarchical, are to one's immediate superior (the boss) or to one of one's subordinates. Reduces communication overhead.

6 Stubkjær: Normative structures, of 11 Formal structure (2/3): Matrix-Organisation Functional leadership is supplemented with a 'general' leadership. It is artices of the organisation, stated authority, job descriptions, etc. which define the structure. Other forms (3/3): Committees, Project organisations Committee a group of peers who decide as a group, perhaps by voting. The difference between a jury and a committee is that the members of the committee are usually assigned to perform or lead actions which leads up to or extends from the decision. Project organisation a 'local' hierarchy set up to solve a specific task, e.g to build a construction Steps in rational problem solving 4.b Rational decision processes define problem establish criteria of solution develop alternatives rate alternatives select solution, and implement it restructure problem conception Simon, Herbert,Administrative Behavior, The Free Press, New York. 1976, 3rd. ed. 364pp

7 Stubkjær: Normative structures, of 11 Alternatives to rational decision processes Subsumption of data of an application to given legal rules Refrain from developing alternatives, that is: be satisfied with a sensible solution 4.c Functionalist views Mechanistic: Taylor, 1911: Scientific management (cf Chaplin: Modern Times) Simon, 1947: Rational man, administrative man Human relations: Mayo, 1933: Hawthorne experiments McGregor, 1960: Theory X and theory Y A comment in writing from the 2004-audience: "I think that people are like horses and that somebody needs to control them" Max Weber (1924) on bureaucracy "..the exercise of control on the basis of knowledge" in church, government, and enterprise (read: hierarchy) Decisions by subsumption of cases to rules, in writing 'Bureau' (office: authority) with specific competence Officials act impersonal, duty /service, have no ownership of means Promotion based on technical skills, by superiors Recently quoted in Roberts and Hite (2000) From modernization to globalization - Perspectives on development and social change.

8 Stubkjær: Normative structures, of 11 Comments on Hierarchy (Well functioning) organisations are based on hierarchy Potential of hierarchy is division of tasks (specialization), allowing for better productivity Because of order of hierarchy, it can achieve a lot, but it may suppress creativity and individual initiative Alternatives to hierarchy: Market and (actor) network Bureaucracy and patrimonialism Democratic transition has been successful in only a few countries in sub-saharan Africa. In most countries a mixed system prevails, which has prevented the beginnings of a rational and legal administration asserting themselves against continuing patrimonial power structures. Decisions are taken not on the basis of institutionalised rules, but in favour of personal relationships and to personal advantage.... the assertion of rational-legal administration and legal systems [is] the most important precondition for Africa s development. Patrimony The sum total of all personal and real entitlements, including movable and immovable property, belonging to a person. Patrimonialism in Russia Calling Russia "patrimonial" I find much more useful, since it captures the essence of what I believe Russia is and not what it might become. By patrimonial, I mean those regimes, where political authority and property ownership are fused. In patrimonial regimes the elites -- be it the czar, the oligarchs, the bureaucracy, or Putin -- view themselves and are seen by their subjects as both ruler of the realm and its owner. In particular, in patrimonial states the legal and practical distinction between political power and private property either does not exist or is blurred. This blurring of power and property is much different from the situation in the United States or Western Europe, where the law draws a strong distinction between the two. The Washington Times, April 1,

9 Stubkjær: Normative structures, of 11 Shifting views on public administration (Koupus, 1989) Dominat conception Before 1970s After 1970s Context Public administration Business Source Germany USA Science Law Economy Task A signed decision according to law Addressee Citizien Client Quality measure Conception of information Decisions in accordance with law Archive. Paradigms A service or advice Services according to resource plans Data flows. Market in data 4.d New institutional economics (1980s-) Institution: The "rules of the game", consisting of both the formal legal rules and the informal social norms that govern individual behavior and structure social interactions Organisation: by contrast, are those groups of people and the governance arrangements they create to coordinate their team action against other teams performing also as organizations. Douglas C North's Nobel Prize lecture "Institutions are the humanly devised constraints that structure human interaction. They are made up of formal constraints (rules, laws, constitutions), informal constraints (norms of behavior, conventions, and self imposed codes of conduct), and their enforcement characteristics. Together they define the incentive structure of societies and specifically economies. Institutions and the technology employed determine the transaction and transformation costs that add up to the costs of production." An organisation is changed by 4.e Organisational change change of organizational units: New units, or changed tasks or competencies change of information channel network (new, reorganised) change of content of information flows change of norms and attitudes

10 Stubkjær: Normative structures, of 11 The Leavitt-Whisler model of organisational change Drafting a law or a bylaw - Categories of rules Rules of competency: On conditions C, NN is entitled to grant applicant A the permission/ benefit P Rules of behavior: In situation S the behavior B by addresee A is illegal/ mandatory Rules of procedure: In context X, to arrive at decision D, the steps S 1..S n have to be performed Definitions: In the present law, by term T is understood..(definition).. Drafting a law or a bylaw - My best advices Be humble as to what you can change by writing law rules (text on paper) Learn what reasonable people (~60-70 % of the concerned group) are doing, and make this become the law Make rules that make max % of the concerned group standardize their behavior to conform with the reasonable, and make sure to provide both information, and incentives to follow these rules Make sure that resources are available to perform the enforcement stated. Don't expect that the law will reach the last 5-10%. Look instead for means of social exclusion.

11 Stubkjær: Normative structures, of 11 Summary Society is structured by rules, so that we somehow can predict our environment Rules of property rights structure the use of land, the rules are backed by an infrastructure. Articles of organisations structure internal activities, to some extent a. Organisational structures: Formal aspect b. Decision processes: Rational or less rational c. Views on organisations: The informal aspects d. Max Weber on bureaucracy and patrimonialism. North on institutions and organisations e. Organisational change: The Leavitt-Whisler model Stubkjær, ISP, AaU Cadastral Development: Normative Structures February 2007

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