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Pressure for changes in public sector management

Public pressure for changes in public sector management is growing. On the one hand, there are business organizations that want clear rules for business, less bureaucracy, and more limited management intervention. On the other hand, some citizens claim the higher quality of public services. Under these conditions, the state needs not only to manage the available resources more efficiently but also to change itself to meet the higher requirements for its development.

All this leads to public sector reforms that require a clear definition of the responsibilities of all those who manage the supply chain of public goods. Taking responsibility is: first, a guarantee of well-thought-out strategic decisions and action plans; second, a motivating factor for the implementation of commitments and tasks; thirdly, a way to eliminate indifference and bureaucracy in the actions of state bodies and individuals, which are frequent causes of one or another failure in their activities.

The offering of public services

The provision of public services is a process that affects many economic and social groups in society. Reference: “Business process reengineering”, https://mstsnl.net/business-process-reengineering/

They of course have their interests and perspective on the way public goods should be offered and developed by the state itself as an organization. may impose its vision for solving the socio-economic problems of society. This to some extent meets the preferences of the majority of voters, because they have voted for the political platform of the ruling party. However, this type of “policymaking” always generates enough critics because there are parties and groups that do not share the political platform of the ruling party or coalition. Naturally, such debates are perfectly natural in parliament, as well as in society, of course.

However, they often inflame political passions and divert society from the agenda of its most important tasks. To overcome this defect in public administration, it is recommended to involve stakeholders in policy-making itself. They may modify the government’s views on resolving an issue, but any agreed solution is better than one imposed on its own! The reason is that the cooperative (coordinated) actions of the participants in a process always lead to better results for all of them. Reference: “To be a leader means to be awake”, https://www.policymatters.net/to-be-a-leader-means-to-be-awake/

Taking into account the interests of all stakeholders in the formulation of state policies ensures their more effective implementation. Here are some tools for pursuing this type of policy:

  • A) dialogue with interested organizations in the work of the social partners’ policies in the face of trade unions and business organizations
  • B) dialogue with non-governmental organizations that defend the interests of certain social groups in society
  • C) public-private partnerships for public activities of high public interest (contractual system and concessions
  • D) decentralization of the economic functions of the state through their transfer to local and regional authorities.

The state creates the rules for economic life

The state is a body that creates the rules for conducting economic and social life. With the adoption of a series of laws and other regulations, the state models the behavior of businesses and citizens in society. That is why the state needs to provide a clear legislative and regulatory horizon for the actions of companies and citizens. Any change in laws or regulations or discretionary interference (at the discretion of the governing bodies) in economic or social processes are indicators of – lack of long-term vision for the development of public administration; – the influence of the lobby in policy-making, which satisfies some interests at the expense of others; – imposing the will of the state at the expense of the interests of companies and citizens.

Lack of predictability in public administration

In their entirety, the above indicators reveal the lack of predictability in public administration. It generates stronger power of those entitled, a lower degree of legality, uncertainty, and uncertainty in the behavior of businessmen and citizens. In other words, predictability in public sector governance is a prerequisite for better solving the economic and social problems of society, therefore, a condition for achieving higher public welfare.

The existence of the state and the supply of public goods is possible thanks to taxpayers’ money. For this reason, they have every right to

  • A) demand stable and clear procedures for spending their money;
  • B) have accurate information on how the budget is spent;
  • C) exercise public control over the activities of state institutions. Reference: “The control function and types of control in the management“, https://www.policymatters.net/

Naturally, laws and regulations are needed to guarantee the right to clearly and accurately inform taxpayers about the actions of state bodies and individuals. Their adoption is in itself an indicator of the state’s readiness to work in conditions of sufficient transparency and openness for its actions. Is there anything disturbing in this hypothesis?

Only the desire of politicians and bureaucrats, as well as interconnected groups with them, to “fish in murky waters”, ie to generate rents for themselves, instead of benefits for citizens and society. The establishment of transparency and openness in the actions of the state creates fairness in the deal: taxes against public services.

In this sense, transparency is a better method of public sector governance than the “black box” of public administration. After all, what is better governance? These are a series of actions that include more efficient use of budgetary resources, the better quality of public goods offered, accountability for government decisions and cases, involvement of stakeholders and policymakers, legality, predictability, and transparency.

Knowledge tests

1. The new management is: (a) a well-developed and systematized legislative framework for public sector governance b) a system of market-oriented approaches to the management of public sector institutions and resources (c) a method of offering public goods through private companies

2. The privatization of state assets is aimed at (a) increasing the share of the private sector in the economy b) releasing the state from uncharacteristic economic functions c) increasing the efficiency of the company’s activity

3. The concession of public state property is: (a) a tool for developing public-private partnerships in the public sector b) transfer of rights to manage state assets to private companies for a long period c) a tool for the development of valuable economic resources by private companies

4. Natural monopolies shall be privatized subject to the following conditions: (a) liberalizing the prices of their products/services and placing competing firms in a monopolized market b) liberalization of prices, sale of state monopolies, the opening of the market to the entry of other competitors, the establishment of a regulatory institution for market maintenance; (c) the sale of shares in many competing companies to prevent a new monopoly on the market

5. Propose a graphical model for deregulation of natural monopolies

6. The good regulation of the activity of the private companies requires the creation of a) simple, clear and rational regimes (laws and regulations) for conducting business (b) detailed laws and regulations that private companies must follow in their activities c) strict system of control and sanctions of private companies

7. Executive agencies are institutions that deal with: (a) strategic planning and coordination of activities in specific sectors (b) the development of rules and laws for the supply of public goods in a sector c) offering certain public goods to the clients of the administration Reference: “The strategic consensus management of the organization“, https://phron.org/strategic-consensus-management-organization/

8. Consumer fees are a tool through which: (a) restricts the consumption of certain public goods b) implements the principle of consumption according to benefit (c) collects revenue for the maintenance of budgetary institutions.

9. The contractual system is a method for: (a) entrusting private companies with the provision of divisible public goods b) organization and management of the supply of pure public goods (c) the transfer of clerical responsibilities for certain activities to private companies Reference: “Reorganization of business processes in the organization”, https://w-europe.org/reorganization-of-business-processes-in-the-organization/

10. Quasi-markets are an instrument that promotes: (a) competition between private companies to take over the supply of certain public goods (b) competition between units in an institution for the performance of certain activities in the public sector c) private companies to take over the implementation of public activities

11. The audit of taxpayers’ money is intended to:
(a) determine whether taxpayers’ money is being spent rationally b) measure newly created value for each dollar of the taxpayers c) reveal whether the officials work effectively 12. Better governance means: (a) the full application of the methods and techniques of the new management in the management of the public sector b) a higher degree of fulfillment of the mission, goals, and plans of the state institutions c) more efficient management of people and resources in the public organization.

By Robert Brown

Robert Brown is a longtime manager of a technology organization and author of a management book. In his spare time, Mr. Brown helps students get a better education by helping to publish free study materials.

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