Globalization, Organization, and Public Administration

Globalization, Organization, and PA

Presenter:Engr. Marvin Darius M. Lagasca

Professor: Jo B. BitonioME 215 Management of Change & Transition

GLOBALIZATIONDefinition:The movement towards the expansion of

economic and social ties between countries through the spread of corporate institutions and the capitalist philosophy that leads to the shrinking of the world in economic terms.

describes the process by which regional economies, societies, and cultures have become integrated through a global network of political ideas through communication, transportation, and trade. (wikipedia)

Globalization is Made Possible by:

Technology

Communication networks

Internet access

Growth of economic cooperation (APEC,

EU, NAFTA, WTO, etc.) and movement to

free trade

Collapse of ‘communism’

GLOBALIZATION AND ORGANIZATIONS

What changes has GLOBALIZATION brought about in the structure and design of bureaucratic ORGANIZATIONS?

WEBER’S BUREAUCRATIC ORGANIZATION

FEATURES:

Hierarchical

Centralized

Division of Labor

Authoritarian

Rigid Adherence to Rules and Procedures

Impersonal Relationships

Advantage: It has the promise of stability, order, precision, and predictability.

Disadvantage: Too slow and too rigid, and therefore inappropriate to the demands of Globalization.

FEATURES & FORMS OF GLOBAL ORGANIZATIONS

A. NETWORK ORGANIZATIONSRather than perform the entire sequence of

functions from planning, researching, designing, manufacturing, and marketing a product, organizations are LINKING with other organizations with the expertise for specific projects.

Network organizations utilize the expertise of their partners.

This is much faster and more flexible than the Weber type of organization.

B. CELLULAR ORGANIZATIONSAnalogous to the living organism, the cell,

which can perform all the functions of life but by interacting with other cells, is able to do more complex functions.

A cellular organization is made up of autonomous business units or self-managed teams that interact with other cells in order to become a more competent organization.

C. VIRTUAL ORGANIZATIONE-mail, mobile phones, computers, fax

modems, and video conferencing dispense with requiring people to be together in the same place at the same time.

Some entrepreneurs now have office addresses located in prestigious business districts like Makati that may appear impressive in business cards but are actually only virtual offices that perform as mail forwarders or message centers.

D. OTHER FORMS OF ORGANIZATIONSJoint Ventures and Strategic Alliances - cooperative arrangements that adopt a

collective strategy enabling organizations to enter new markets, both domestic and global.

Modular Corporations-subcontracts all non-core activities, like computer operations, cafeteria, security services, and janitorial services to outsiders.

Regardless of the structure adopted, the trend

is toward flat organizational structures and

less hierarchy, less centralization of

authority, less rigidity and more flexibility

and dynamism.

GLOBALIZATION AND PUBLIC ADMINISTRATIONThe private sector has changed and adopted

with the trends set by Globalization. Will the public sector follow suit?

What are the challenges set by Globalization to Public Administration?

Challenges to Public Administration

Hierarchical, centralized bureaucracies designed in the 1930s or 1940s simply do not function well in a rapidly changing, information-rich, knowledge-intensive society and economy today.

-Osborne & Gaebler from their book Reinventing Government

Osborne and Gaebler suggest that governments should:

1) steer, not row (or as Mario Cuomo put it, "it is not government's obligation to provide services, but to see that they're provided")

2) empower communities to solve their own problems rather than simply deliver services

3) encourage competition rather than monopolies

4) be driven by missions, rather than rules5) be results-oriented by funding outcomes

rather than inputs

6) meet the needs of the customer, not the bureaucracy

7) concentrate on earning money rather than

spending it8) invest in preventing problems rather

than curing crises 9) decentralize authority and 10) solve problems by influencing market

forces rather than creating public programs

Old Public Administration:Large bureaucracy, slow, and inefficient Low quality of civil service Citizens unaware of their rights Limited resources Lack of capacity building for citizens and politicians Excessive and overlapping rules and regulations

Old Public Administration Weak performance and weak results-based management system Lack of culture of competitiveness State has strong monopoly position

(excessive regulation) Discrete information process (lack of transparency) Poor accountability mechanisms

New Public Administration: Elements Lean State

Separation of Decision-making Levels

Lean Management

New Service Attitude

New Model of Control

NPM Element: Lean State Cutting back on excessive regulation

Prioritizing the freedoms of citizens

Defining the core functions of government

Developing Public-Private Partnerships (PPP) Active participation of civil society in

governance – from planning, budgeting, and

implementation to monitoring and evaluation

Leveraging Resources

NPM Element: Separation of decision-making levels

Separation of the strategic level (deciding what

has to be done; setting targets and time frames;

and defining the budget) from the operative level (deciding how things

have to be done; delivery of services; reporting) of decision making.

NPM Element:Lean Management Focus on efficiency, continuous improvement,

and capacity building

Development of new leadership style

Management by objectives

Teamwork

Flat organization

Performance incentives

NPM Element: New Service Attitude

While traditional public administration

regards citizens as service receivers who are

unilaterally given limited choices by

government, PA must regard citizens as

customers who have multiple choices, similar

to the alternatives available in any market.

NPM Element: New Model of Control Quality Management

Decentralization

Benchmarking

Results-oriented

Product Approach

But the Question is:

Did PA in the Philippines embrace the necessary changes and reforms to address the demands of the times?