Organization and Management

New Public Management

New Public Management (NPM) is an approach to running public

service organizations that is used in government and public service
institutions and agencies, at both sub-national and national levels. The term
was first introduced by academics in the UK and Australia to describe
approaches that were developed during the 1980s as part of an effort to make
the public service more "businesslike" and to improve its efficiency by using
private sector management models.

As with the private sector, which focuses on customer service, NPM reforms
often focused on the "centrality of citizens who were the recipient of the
services or customers to the public sector". NPM reformers experimented with
using decentralized service delivery models, to give local agencies more
freedom in how they delivered programs or services. In some cases, NPM
reforms that used e-government consolidated a program or service to a
central location to reduce costs. Some governments tried using quasi-
market structures, so that the public sector would have to compete against the
private sector (notably in the UK, in health care). Key themes in NPM were
"financial control, value for money, increasing efficiency ..., identifying and
setting targets and continuance monitoring of performance, handing over ...
power to the senior management" executives. Performance was assessed
with audits, benchmarks and performance evaluations. Some NPM reforms
used private sector companies to deliver what were formerly public services.

NPM advocates in some countries worked to remove "collective agreements

[in favour of] ... individual rewards packages at senior levels combined with
short term contracts" and introduce private sector-style corporate governance,
including using a Board of Directors approach to strategic guidance for public
organizations. While NPM approaches have been used in many countries
around the world, NPM is particularly associated with the most
industrialized OECD nations such as the United Kingdom, Australia and
the United States of America. NPM advocates focus on using approaches
from the private sector – the corporate or business world–which can be
successfully applied in the public sector and in a public administration context.
NPM approaches have been used to reform the public sector, its policies and
its programs. NPM advocates claim that it is a more efficient and effective
means of attaining the same outcome.

In NPM, citizens are viewed as "customers" and public servants are viewed
as public managers. NPM tries to realign the relationship between public
service managers and their political superiors by making a parallel
relationship between the two. Under NPM, public managers have incentive-
based motivation such as pay-for-performance, and clear performance targets
are often set, which are assessed by using performance evaluations. As well,
managers in an NPM paradigm may have greater discretion and freedom as
to how they go about achieving the goals set for them. This NPM approach is
contrasted with the traditional public administration model, in which
institutional decision-making, policy-making and public service delivery is
guided by regulations, legislation and administrative procedures.

NPM reforms use approaches such as disaggregation, customer satisfaction

initiatives, customer service efforts, applying an entrepreneurial spirit to public
service, and introducing innovations. The NPM system allows "the expert
manager to have a greater discretion". "Public Managers under the New
Public Management reforms can provide a range of choices from which
customers can choose, including the right to opt out of the service delivery
system completely"

Decentralization

The term "decentralization" embraces a variety of concepts which must be

carefully analyzed in any particular country before determining if projects or
programs should support reorganization of financial, administrative, or service
delivery systems. Decentralization—the transfer of authority and responsibility
for public functions from the central government to subordinate or quasi-
independent government organizations and/or the private sector—is a
complex multifaceted concept. Different types of decentralization should be
distinguished because they have different characteristics, policy implications,
and conditions for success.

Types of Decentralization

Types of decentralization include political, administrative, fiscal, and market

decentralization. Drawing distinctions between these various concepts is
useful for highlighting the many dimensions to successful decentralization and
the need for coordination among them. Nevertheless, there is clearly overlap
in defining any of these terms and the precise definitions are not as important
as the need for a comprehensive approach. Political, administrative, fiscal and
market decentralization can also appear in different forms and combinations
across countries, within countries and even within sectors.

Political Decentralization

Political decentralization aims to give citizens or their elected representatives

more power in public decision-making. It is often associated with pluralistic
politics and representative government, but it can also support
democratization by giving citizens, or their representatives, more influence in
the formulation and implementation of policies. Advocates of political
decentralization assume that decisions made with greater participation will be
better informed and more relevant to diverse interests in society than those
made only by national political authorities. The concept implies that the
selection of representatives from local electoral jurisdictions allows citizens to
know better their political representatives and allows elected officials to know
better the needs and desires of their constituents.

Political decentralization often requires constitutional or statutory reforms, the

development of pluralistic political parties, the strengthening of legislatures,
creation of local political units, and the encouragement of effective public
interest groups.

Administrative Decentralization

Administrative decentralization seeks to redistribute authority, responsibility

and financial resources for providing public services among different levels of
government. It is the transfer of responsibility for the planning, financing and
management of certain public functions from the central government and its
agencies to field units of government agencies, subordinate units or levels of
government, semi-autonomous public authorities or corporations, or area-
wide, regional or functional authorities.

The three major forms of administrative decentralization -- deconcentration,

delegation, and devolution -- each have different characteristics.

Deconcentration. Deconcentration--which is often considered

to be the weakest form of decentralization and is used most
frequently in unitary states-- redistributes decision making
authority and financial and management responsibilities among
different levels of the central government. It can merely shift
responsibilities from central government officials in the capital
city to those working in regions, provinces or districts, or it can
create strong field administration or local administrative capacity
under the supervision of central government ministries.

Delegation. Delegation is a more extensive form of

decentralization. Through delegation central governments
transfer responsibility for decision-making and administration of
public functions to semi-autonomous organizations not wholly
controlled by the central government, but ultimately accountable
to it. Governments delegate responsibilities when they create
public enterprises or corporations, housing authorities,
transportation authorities, special service districts, semi-
autonomous school districts, regional development corporations,
or special project implementation units. Usually these
organizations have a great deal of discretion in decision-making.
They may be exempt from constraints on regular civil service
personnel and may be able to charge users directly for services.

Devolution. A third type of administrative decentralization is

devolution. When governments devolve functions, they transfer
authority for decision-making, finance, and management to
quasi-autonomous units of local government with corporate
status. Devolution usually transfers responsibilities for services
 to municipalities that elect their own mayors and councils, raise
their own revenues, and have independent authority to make
investment decisions. In a devolved system, local governments
have clear and legally recognized geographical boundaries over
which they exercise authority and within which they perform
public functions. It is this type of administrative decentralization
that underlies most political decentralization.

Fiscal Decentralization

Financial responsibility is a core component of decentralization. If local

governments and private organizations are to carry out decentralized
functions effectively, they must have an adequate level of revenues –either
raised locally or transferred from the central government– as well as the
authority to make decisions about expenditures. Fiscal decentralization can
take many forms, including a) self-financing or cost recovery through user
charges, b) co-financing or co-production arrangements through which the
users participate in providing services and infrastructure through monetary or
labor contributions; c) expansion of local revenues through property or sales
taxes, or indirect charges; d) intergovernmental transfers that shift general
revenues from taxes collected by the central government to local
governments for general or specific uses; and e) authorization of municipal
borrowing and the mobilization of either national or local government
resources through loan guarantees. In many developing countries local
governments or administrative units possess the legal authority to impose
taxes, but the tax base is so weak and the dependence on central
government subsidies so ingrained that no attempt is made to exercise that
authority.

Economic or Market Decentralization

The most complete forms of decentralization from a government's perspective

are privatization and deregulation because they shift responsibility for
functions from the public to the private sector. Privatization and deregulation
are usually, but not always, accompanied by economic liberalization and
market development policies. They allow functions that had been primarily or
exclusively the responsibility of government to be carried out by businesses,
community groups, cooperatives, private voluntary associations, and other
non-government organizations.

Privatization. Privatization can range in scope from leaving the

provision of goods and services entirely to the free operation of
the market to "public-private partnerships" in which government
and the private sector cooperate to provide services or
infrastructure. Privatization can include: 1) allowing private
enterprises to perform functions that had previously been
monopolized by government; 2) contracting out the provision or
management of public services or facilities to commercial
enterprises indeed, there is a wide range of possible ways in
which function can be organized and many examples of within
 public sector and public-private institutional forms, particularly
in infrastructure; 3) financing public sector programs through
the capital market (with adequate regulation or measures to
prevent situations where the central government bears the risk
for this borrowing) and allowing private organizations to
participate; and 4) transferring responsibility for providing
services from the public to the private sector through the
divestiture of state-owned enterprises.

Deregulation. Deregulation reduces the legal constraints on

private participation in service provision or allows competition
among private suppliers for services that in the past had been
provided by the government or by regulated monopolies. In
recent years privatization and deregulation have become more
attractive alternatives to governments in developing countries.
Local governments are also privatizing by contracting out
service provision or administration.

Philippine Bureaucracy

The Philippines is a republic with a presidential form of government wherein

power is equally divided among its three branches: executive, legislative, and
judicial.

One basic corollary in a presidential system of government is the principle of

separation of powers wherein legislation belongs to Congress, execution to
the Executive, and settlement of legal controversies to the Judiciary.

The Legislative branch is authorized to make laws, alter, and repeal them
through the power vested in the Philippine Congress. This institution is divided
into the Senate and the House of Representatives.

The Executive branch is composed of the President and the Vice President
who are elected by direct popular vote and serve a term of six years. The
Constitution grants the President authority to appoint his Cabinet. These
departments form a large portion of the country’s bureaucracy.

The Judicial branch holds the power to settle controversies involving rights
that are legally demandable and enforceable. This branch determines whether
or not there has been a grave abuse of discretion amounting to lack or excess
of jurisdiction on the part and instrumentality of the government. It is made up
of a Supreme Court and lower courts.

The Constitution expressly grants the Supreme Court the power of Judicial
Review as the power to declare a treaty, international or executive agreement,
law, presidential decree, proclamation, order, instruction, ordinance or
regulation unconstitutional.
 Code of Conduct

REPUBLIC ACT NO. 6713 Section 4. Norms of Conduct of Public

Officials and Employees. - (A) Every public official and employee shall
observe the following as standards of personal conduct in the discharge and
execution of official duties:

(a) Commitment to public interest. - Public officials and employees shall

always uphold the public interest over and above personal interest. All
government resources and powers of their respective offices must be
employed and used efficiently, effectively, honestly and economically,
particularly to avoid wastage in public funds and revenues.

(b) Professionalism. - Public officials and employees shall perform and

discharge their duties with the highest degree of excellence, professionalism,
intelligence and skill. They shall enter public service with utmost devotion and
dedication to duty. They shall endeavor to discourage wrong perceptions of
their roles as dispensers or peddlers of undue patronage.

(c) Justness and sincerity. - Public officials and employees shall remain true
to the people at all times. They must act with justness and sincerity and shall
not discriminate against anyone, especially the poor and the underprivileged.
They shall at all times respect the rights of others, and shall refrain from doing
acts contrary to law, good morals, good customs, public policy, public order,
public safety and public interest. They shall not dispense or extend undue
favors on account of their office to their relatives whether by consanguinity or
affinity except with respect to appointments of such relatives to positions
considered strictly confidential or as members of their personal staff whose
terms are coterminous with theirs.

(d) Political neutrality. - Public officials and employees shall provide service to
everyone without unfair discrimination and regardless of party affiliation or
preference.

(e) Responsiveness to the public. - Public officials and employees shall

extend prompt, courteous, and adequate service to the public. Unless
otherwise provided by law or when required by the public interest, public
officials and employees shall provide information of their policies and
procedures in clear and understandable language, ensure openness of
information, public consultations and hearings whenever appropriate,
encourage suggestions, simplify and systematize policy, rules and
procedures, avoid red tape and develop an understanding and appreciation of
the socio-economic conditions prevailing in the country, especially in the
depressed rural and urban areas.

(f) Nationalism and patriotism. - Public officials and employees shall at all
times be loyal to the Republic and to the Filipino people, promote the use of
locally produced goods, resources and technology and encourage
appreciation and pride of country and people. They shall endeavor to maintain
and defend Philippine sovereignty against foreign intrusion.
(g) Commitment to democracy. - Public officials and employees shall commit
themselves to the democratic way of life and values, maintain the principle of
public accountability, and manifest by deeds the supremacy of civilian
authority over the military. They shall at all times uphold the Constitution and
put loyalty to country above loyalty to persons or party.

(h) Simple living. - Public officials and employees and their families shall lead
modest lives appropriate to their positions and income. They shall not indulge
in extravagant or ostentatious display of wealth in any form.

(B) The Civil Service Commission shall adopt positive measures to promote
(1) observance of these standards including the dissemination of information
programs and workshops authorizing merit increases beyond regular
progression steps, to a limited number of employees recognized by their office
colleagues to be outstanding in their observance of ethical standards; and (2)
continuing research and experimentation on measures which provide positive
motivation to public officials and employees in raising the general level of
observance of these standards.

Sample Government Policy

Public policy is defined as a system of courses of action, regulatory

measures, laws, and funding priorities concerning a given topic promulgated
by a government entity or its representatives1 . Numerous issues can be
addressed by public policy including crime, education, foreign policy, health,
and social welfare. Public policy is, in fact, the product of a public policy
making process.

In the Philippines, access to basic healthcare services remains a major

challenge. This is largely attributed to scarcity and maldistribution of health
facilities in many parts of the country. About 50% of the population do not
have access to primary care facilities (PCFs) within 30 minutes. One of the
policy in the Philippines focusing on health issue is the Universal Healthcare
Act Law (R.A. 11223) is a big remedy especially to the poor population in our
country that are deprived of basic health care services. It is the policy of the
State to protect and promote the right to health of all Filipinos and instill health
consciousness among them. The UHC helps ensure every Filipino is healthy,
protected from health hazards and risks, and has access to affordable,
quality, and readily available health service that is suitable to their needs. Just
like other policy in the Philippines, the Universal Health Care Law also
undergo policy process or cylce. The policy process in the Philippines takes
five steps, namely: agenda-setting; policy formulation; legislation;
implementation; and monitoring. Firstly, the board conducts performance
review of the prior year, considers emerging issues and concerns locally and
internationally with regards to health system in our country and also considers
any shift in the policy agenda of the present administration. Secondly, the
board formulates policies on e health. The process also includes the
determination and review of the corresponding budget by the Department of
Budget and Management. The output is the so-called proposed National
Budget which is submitted to Congress for deliberation. Thirdly, the Lower
House (House of Congress) deliberates on the proposed National Budget in
three (3) readings. Once done, they submit the proposed National Budget to
the Upper House (Senate) for deliberation which also comes in three (3)
readings. After which and once signed by both houses, the proposed National
Budget is forwarded to the Office of the President for approval.On February
2019, President Rodrigo Duterte signed the Universal Health Care Bill into
law, ushering in massive reforms in the Philippine health sector. Among the
salient features of the UHC Law are the expansion of population, service, and
financial coverage through an array of health system amendments. Along with
this is a planned paradigm shift to primary care, which is the core and center
of all health reforms under the UHC.Fourthly, the implementation of the UHC
are delegated to Department of Health (DOH). Finally, the NEDA Board
coordinates closely with the implementing departments to get feedbacks as
basis for evaluation of the present programs and as reference for
improvement for the next policy cycle.

The UHC Law seeks to re-integrate the Philippines’ highly devolved

governance system into province-wide health systems. These integrated
provincial health systems promise more efficient use of resources and
delivery of comprehensive care. Providers are encouraged to consolidate into
health care provider networks, capable of delivering a range of services,
grounded on a strong primary care base. With the UHC Law, all Filipinos are
automatically members of PhilHealth, and are immediately entitled to benefits.
Families and households are also given the freedom to choose the primary
care provider they prefer and trust. The UHC Law mandates the
institutionalization of cooperative intergovernmental decision-making and
implementation, particularly on areas such as health impact assessment,
health professional education, and monitoring and evaluation of health system
performance. The private sector is also enjoined to respond to service
delivery needs as health care provider networks, and to generate evidence
together with the academe through data sharing and commissioning of
relevant health policy and systems studies.Through these more inclusive and
regular stakeholder engagement processes, strategic complementation with
partners within and outside government is encouraged.

Etiology of Bureaucracy

The concept of bureaucracy has come a long way since the 18th century.
Nowadays, bureaucratic institutions are to be found, I dare to say, in every
state in the world, regardless of the form of government: from the young
democracies of Eastern Europe to the post industrial capitalist countries on
both sides of the North Atlantic or Japan, from the emerging giants of BRIC
(Brazil, Russia, India and China) to the sunny fiscal paradises wherever.

As long as there is money to be made, interest groups will never give up

trying to impose corporate wishes, as long as there is more power to be
earned, elected politicians will constantly change, as long as there are
promises taxpayers are willing to dream. A handful of bureaucrats want it all:
the money of corporations, the power of elected officials and the dreams of a
better life as all taxpayers want.

POSDCORB

POSDCORB is an acronym which means Planning, Organizing, Staffing,

Directing, Coordinating, Reporting and Budgeting which was first coined in a
paper on administrative management that was written for the Brownlow
Committee by Luther Gulick and Lyndall Urwick.

Steps of POSDCORB

This essentially refers to the various steps or stages involved in a typical

administrative process. POSDCORB can be explained in detail below:

1. Planning: This essentially refers to establishing a broad sketch of the work

to be completed and the procedures incorporated to implement them.

2. Organizing: Organizing involves formally classifying, defining and

synchronizing the various sub-processes or subdivisions of the work to be
done.

3. Staffing: This involves recruiting and selecting the right candidates for the
job and facilitating their orientation and training while maintaining a favorable
work environment.

4. Directing: This entails decision making and delegating structured

instructions and orders to execute them.

5. Coordinating: This basically refers to orchestrating and interlinking the

various components of the work.

6. Reporting: Reporting involves regularly updating the superior about the

progress or the work related activities. The information dissemination can be
through records or inspection.

7. Budgeting: Budgeting involves all the activities that under Auditing,

Accounting, Fiscal Planning and Control.

Importance of POSDCORB

Every organization needs to have systematic framework in ensuring there is

maximum output, minimum wastage and higher margins. POSDCORB is one
such method in management where workforce and employees can be
managed in a way which would be beneficial for an organization. This concept
helps organizations to break down the work into multiple processes and help
in getting maximum value out to each employee. These steps and stages of
POSDCORB help the HR team to deliver to the needs of a company.