Managing Change in Public Services of de

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managing change IN Public Services of developing economies : 

managing change IN Public Services of developing economies Dr. H. Kwame Afaglo (PhD, MBA, BSc) © 2009

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. Change management is not unique to private-for-profit enterprises only, it is a continuous exercise in public services labelled as Public sector reforms. Inasmuch as this presentation is not about the genesis of the reforms, it is worth mentioning that from the1970’s developing economies started to witness the involvement of Bretton Wood institutions in public services on the back of reforms. Reform programmes were dictated by Bretton Wood institutions and have

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. metamorphosized from, Structural Adjustment Program (SAP 1&2), Program of Action to Mitigate the Social Costs of Adjustment (PAMSCAD), Millennium Development Goals (MDG 2015), Poverty Reduction Strategic Papers (PRSP) to New Public Management (NPM). In exchange for facilities Bretton Wood institutions request a mandatory implementation of reforms under the earlier mentioned programmes, besides imminent repayments. Academics and policy implementers are locked-in the debate of the success of all the earlier programmes, but for now NMP is the current

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. reform programme being implemented in governance. Because government’s vehicle for policy implementing is public services, the reform of the vehicle is equally as important as the driver itself. Therefore this presentation would concentrate on public service (Ministries, Departments and Agencies-MDAs) reforms under NPM. New Public Management (NPM) is simply the transformation of the mode of working in public services (MDAs) from Public Administration to Public Management for effectiveness, efficiency, sending service delivery to stakeholders and result oriented.

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. Hood an authority in NPM emphasis it as; ‘Direct public sector costs should be cut and labour discipline raised so as to improve resource use; Private-sector-style management practices applied to increase flexibility in decision-making; Competition in the public sector (through term contracts and tendering) increased, as rivalry is the key to lower costs and better standards; The public sector disaggregated and decentralized to make units more manageable and to increase competition among them;

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. Controls shifted from inputs to outputs, to stress results rather than procedure; Explicit standards and performance measures established, because accountability requires clearly stated aims and efficiency requires attention to goals; and Managers given powers to conduct hands-on professional management, because accountability requires clear assignment of responsibility, not diffusion of power. (1991)

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. Hoods concept has been widely discussed and some approaches have been implemented in economies as: Finland, Australia, UK, US among others. States must carefully examine the NPM requirements and ensure it is culturally fair and the cognisance of state vision and constitution. Inferring from the earlier definition of NPM, the following conditions were projected;

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. effectiveness, efficiency, sending service delivery to stakeholders, result oriented. The primary goal of NPM is the creation of a new public services image by importing the best practices from private-for-profit industries and retaining good procedures that would displace the existing “poor performance”.

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. Starting with nomenclature, public services need to be in line with management and not just administrative. Effectiveness – has to do with practices whose yield are more than inputs. The recommended practices are: decentralisation, privatisation, performance management and commercialisation. Decentralisation requires the delegation and strengthening state, district and municipal parastatals. Further, it mandatorily requires Ministries to encourage the setting up and working in partnership with civil societies as Non-Governmental Organisations (NGOs) and Charitable institutions. All these bodies must be accountable to stakeholders, Tax office and Accountant Generals as stipulated by law.

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. Decentralisation comes with a certain level of autonomy, else the line of authority becomes very long, deepen bureaucracy and red-tapism of which management abhors. Municipal, district and metropolitans must be semi-autonomous but maintain reporting lines with Ministries. The semi-autonomy of the decentralised bodies should focus on rendering services-for-profit ventures. Decentralisation is notable in states as Uganda, Nigeria, Ethiopia, Senegal as studied by Bangura in 1997.

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. Privatisation – the integration of private establishments into the delivery of effective public service becomes inevitable under NPM. MDAs are encouraged to identify areas of work to be handed to specialist, consultants and project outsourcing private individuals and private-for-profit establishments. This would improve services delivered by public institutions, improve relationships with stakeholders, enhance image of civil service, increased production whiles remaining cost effective. Zimbabwe is recorded appreciable results in the outsourcing of its non-clinical jobs as cleaning, catering, security, works and finance.

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. The controversial International Monetary Fund (IMF) conditionality of the state enterprise acquisitions by private-for-private firms preferably Transnational corporations (TNC) is still on the agenda of NPM. A good number of developing economies including Ghana, Guinea and Togo are noted to have drastically off-loaded a significant portion of their state owner enterprises to private establishments. Basic but sensitive sectors as water, electricity, education, housing and agriculture have been on the privatisation agenda for a while. However, it is recommended that states in considering privatising these facilities must match them with their developmental needs, level of poverty and constitution. In the academic sector,

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. the Ghanaian state owned universities charge students ‘academic user fees’ as a supplement to state funding. The failed Nigerian water privatisation program is not unique, Angola and Ghana did obliged to increasing water tariffs as a condition to securing IMF loans, Guinea-Bissau did transfer its water and electricity management to private ownership all as directed by NPM and IMF. The ramifications of privatising basic utilities in Africa as directed by NPM and IMF is deepening poverty levels conversely to its intention.

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. Performance – the transformation of public services requires breaking departments into smaller manageable units with target setting a must. The line of reasoning here would result in enhanced performance and subsequent increase in productivity, accountability and reduced delays in processing of documents. Under small and manageable units in MDAs, performance can properly be measured and suitable training needs redressed. States as Botswana, Ghana, South Africa and Uganda are known to have in place performance management criteria in this line.

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. Efficiency – the concept is to drive MDA services to stakeholders (public) within reasonable time, and not the current situation of interest parties going to the parastatals for delayed response(s). With NPM, public management places premium on ‘the people’ as customers who are the source of profitability. Central issues relating to efficiency are; cost recovery, ICT and access to information. Cost recovery – with semi-autonomy and profitability as a required integral part of the operations of MDAs, cost recovery must be carefully designed with external private consultants assistance in identifying such activities. The principle here is to levy services

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. afforded by the ‘haves’ to improve basic facilities. User fees are to serve as additional revenue in the cost recovery process. Democratic Republic of Congo implements various stages of user fees in their health sector as flat fee upon visit to the hospital with an illness and other graduations. Against the fore-knowledge of the low life expectancy of Congo D.R. as 54.4 years, it would be prudent to implement a National health insurance scheme instead of the current health user fees. ICT – Information technology (IT) should be integrated in the processing of all services in MDAs, so as to expedite activities, reduce cost, entrench transparency and fairness and accountability of all firms (both state and private). Tax and company houses documents

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. should be online for readily access to registered users and purposes of accountability. Application forms and their various stages of checking should go online (internet) and on a secured platform to be accessible to only registered users and at a fee(s). A gray area to be debated by legislation, judiciary prior to implementation by public services is e-voting and online voting in national and state elections. This would give the opportunity to citizens living outside their home geographical area to participate in elections. Since, citizens living and working abroad make significant contributions to their home economies.

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. Access to information – This relates to accountability of public services to stakeholders or masses likewise the openness of information to masses. With the later, states must legislate ‘Freedom of information act’ that would remove the deliberate refusal of giving public information to interested parties. Governments are bound by this act as a duty to publish and open their books to the public. Ghana in 2004 did promulgate the ‘Freedom of information act’ of which is aided in bringing government spending into the public domain of which hitherto was not possible. NPM in an attempt to harmonising accounting systems in the African region did prefer states to implement accrued accounting system as practised in the US.

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. Accrued accounting - ‘An accounting system that recognizes income when it is earned and expenses when they are incurred, rather than when they are received or paid’ (2009) Since 1997, Botswana did introduce the accrual accounting system with trained experts at all levels of parastatal. The ‘Freedom of information act’ when legislated would help governments to be accountable to the people, minimise government malfeasance and eventually would improve the macro-economic health of the state. Nigeria’s senate did legislate the Freedom of Information Bill (FOIB) in 2006 which is an essential ingredient for growth.

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. Sending service delivery to stakeholders – The afore-mentioned requirements thus aid in the establishing and fulfilment of the ‘Culture of excellence in service delivery’ charter. Nigeria’s SERVICOM is a well formulated documented with structures but lacks sending these services to the stakeholders. Nigeria’s SERVICOM is inline with NPM service charter. The focus here is that, public services must not just be heard but seen to be sending their services to stakeholders (the populace) in all communities irrespective of social standing or language or ethnicity, religion, etc.

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. Result oriented – the current wholesale and automatic promotion in public services is not healthy for increased productivity and profitability, also it inhibits creativity, initiative drive (enterprise) and deters intelligent young people from serving in civil services. Hence the implementation of a cultural fair NPM individual performance based promotion would assist in reversing the trend, modernise and strengthen capacity of public services. Factors that complements performance are; pay reform and incentives.

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. Pay reforms – Wages and salary are expected to be based on performance and competitive with private sector. Some countries civil service salaries are not commensurate with the workload, besides it is far below that of private sector of the same rankings. This serves as a disincentive for serving the country in the public service sector or if employed in the public sector, rendering mediocre services. NPM encourages performance to match salaries and outstanding performance be rewarded with bonus or incentives. Most developing economies have gone through couple of reformed salary and wage assessments and are still under reforms, however they miss the core value as performance and matching private sector remunerations.

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. Public service reforms is essential under NPM and the Millennium Development Goals for the amelioration of poverty in developing economies, however, the onus lies on the three arms of government to ensure the reforms are culturally fair, development oriented and constitutionally aligned.

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. References Bangura, Y. (2000) Public Sector Restructuring: The Institutional and Social Effects of Fiscal, Managerial and Capacity Building Reforms, Geneva 2000, Occasional Paper No.3, United Nations Research Institute for Social Development (UNRISD), Geneva. Economic Commission of Africa (2003) Public sector Management In Africa Paper No. ECA/DPMD/PSM/TP/03/1 Development Policy Management Division Hood, C. (1991) ‘A Public Management for All Seasons’, Public Administration, 69 (1). Wikipedia (2009) Accrual Accounting http://www.google.co.uk/search?hl=enrlz=1W1SNYW&defl=en&q=define:Accrual+accounting&ei=wPkbS8zhO6WsjAfr-u34Aw&sa=X&oi=glossary_definition&ct=title&vend=0CAkAE [Accessed 6 December 2009]

Managing Change in Public Services of Developing economies. : 

Managing Change in Public Services of Developing economies. Thank you