Dynamics of Formal and Informal Institutions shaping the administrative culture: A case of Nepalese public administration

This research analyses the interaction of formal and informal institutional mechanisms in the public administration and its influence in shaping the administrative culture of the bureaucracy. Based on a case study of the Nepalese Public Administration (NPA) it explores on how the various consciously created formal institutional factors such as structure and organisation, legal frameworks, bureaucratic routines and operational procedures create incentives or constraints on the behaviour of the actors involved thereby reinforcing and sustaining the prevailing informal institutions or giving rise to new ones. The study also demonstrates that the dynamics of the interaction between these institutions are crucial in determining the relationships between the administrators, politicians and general public in relating with the administration. The study revealed that though various formal institutional factors are devised in accordance with the 'rational-legal model' of the Weberian bureaucracy in the case of the NPA; it is co-opted or overcome by the informal institutional factors that has its roots in the path dependence characteristics of the administration, socio-cultural norms and conventions, and also the impracticality and rigidity of the formal mechanisms. Informal institutional factors ranging from nepotism, favouritism, political affiliation, personal networks, to patronage, clientelism and bribery are seen prevalent in the NPA. Analysis of the interaction between these institutional factors helped to discover the nature of administrative culture of the NPA developed as a patron-client relation between bureaucrats and political masters; elitist relations with the general public; and authoritarian and process driven within the bureaucracy. Thus, through the institutional approach this research highlights the importance of studying institutions in public administration and opens up the avenue for future research in examining its affects.