Yale University announced yesterday it will establish a new Graduate School of Organization and Management to instruct public and private officials in business and government service.

The graduate school, to be opened next fall, will combine courses similar to those given in public policy and management at the Kennedy School of Government and Business School.

The new school will offer a two-year master's degree in business administration.

The announcement came at a time when President Bok has placed a $21--million public policy and administration fund drive at the top of his fund-raising priority list. But Bok said yesterday that he expected the Yale program to have no negative impact on the drive, or on Harvard's public policy instruction.

The Yale graduate school will simply be a "small addition to the enormous pool of schools offering similar programs," Bok said.

He said he did not feel that Yale graduate school's faculty recruitment plans will include Harvard faculty members because the recruits will probably be drawn from business and government.

Thomas Reardon, coordinator of Harvard's program for public policy fund raising, said yesterday Yale's new school will not interfere with Harvard's drive, because the two schools take "an entirely different approach toward public policy."

Harvard may even benefit from having more entries into the public policy field because a larger group of public policy-oriented schools will call more attention to the need for public policy education, Reardon said.

Harvard considered combining its public administration and business management at one time, but "decided to go a different way," Reardon said, because the principles of public administration differ too greatly from those of private administration.

Reardon said Harvard was also worried that business would dominate public administration if the two were mixed together.

Yale also announced yesterday that William H. Donaldson, former under secretary of state and an adviser to Vice President Nelson Rockefeller, will head the school next fall.

Donaldson said in a statement yesterday he hopes the school will be able to help officials cope with the expanding role of government.

The scope and complexity of the government require private sector management and techniques that Donaldson said he wants the school to provide.

Donaldson said the school will attract those who do not want to attend business administration school and then a public policy school