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Globalization, Organization, and Public Administration


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Management Engineering

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Globalization, Organization, and Public Administration

  1. 1. <ul><li>Presenter: </li></ul><ul><li>Engr. Marvin Darius M. Lagasca </li></ul>Globalization, Organization, and PA Professor: Jo B. Bitonio ME 215 Management of Change & Transition
  2. 2. GLOBALIZATION <ul><li>Definition: </li></ul><ul><li>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. </li></ul><ul><li>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) </li></ul>
  3. 4. Globalization is Made Possible by: <ul><ul><li>Technology </li></ul></ul><ul><ul><li>Communication networks </li></ul></ul><ul><ul><li>Internet access </li></ul></ul><ul><ul><li>Growth of economic cooperation (APEC, EU, NAFTA, WTO, etc.) and movement to free trade </li></ul></ul><ul><ul><li>Collapse of ‘communism’ </li></ul></ul>
  4. 5. GLOBALIZATION AND ORGANIZATIONS <ul><li>What changes has GLOBALIZATION brought about in the structure and design of bureaucratic ORGANIZATIONS? </li></ul>
  5. 6. WEBER’S BUREAUCRATIC ORGANIZATION <ul><li>FEATURES: </li></ul><ul><li>Hierarchical </li></ul><ul><li>Centralized </li></ul><ul><li>Division of Labor </li></ul><ul><li>Authoritarian </li></ul><ul><li>Rigid Adherence to Rules and Procedures </li></ul><ul><li>Impersonal Relationships </li></ul>
  6. 7. <ul><li>Advantage: </li></ul><ul><li>It has the promise of stability, order, precision, and predictability. </li></ul><ul><li>Disadvantage: </li></ul><ul><li>Too slow and too rigid, and therefore inappropriate to the demands of Globalization. </li></ul>
  7. 8. FEATURES & FORMS OF GLOBAL ORGANIZATIONS <ul><li>A. NETWORK ORGANIZATIONS </li></ul><ul><li>Rather 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. </li></ul><ul><li>Network organizations utilize the expertise of their partners. </li></ul><ul><li>This is much faster and more flexible than the Weber type of organization. </li></ul>
  8. 9. <ul><li>B. CELLULAR ORGANIZATIONS </li></ul><ul><li>Analogous 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. </li></ul><ul><li>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. </li></ul>
  9. 10. <ul><li>C. VIRTUAL ORGANIZATION </li></ul><ul><li>E-mail, mobile phones, computers, fax modems, and video conferencing dispense with requiring people to be together in the same place at the same time. </li></ul><ul><li>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. </li></ul>
  10. 11. <ul><li>D. OTHER FORMS OF ORGANIZATIONS </li></ul><ul><li>Joint Ventures and Strategic Alliances </li></ul><ul><li>- cooperative arrangements that adopt a collective strategy enabling organizations to enter new markets, both domestic and global. </li></ul><ul><li>Modular Corporations </li></ul><ul><li>-subcontracts all non-core activities, like computer operations, cafeteria, security services, and janitorial services to outsiders. </li></ul>
  11. 12. <ul><li>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. </li></ul>
  12. 13. GLOBALIZATION AND PUBLIC ADMINISTRATION <ul><li>The private sector has changed and adopted with the trends set by Globalization. Will the public sector follow suit? </li></ul><ul><li>What are the challenges set by Globalization to Public Administration? </li></ul>
  13. 14. Challenges to Public Administration <ul><li>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. </li></ul><ul><li>-Osborne & Gaebler from their book Reinventing Government </li></ul>
  14. 15. Osborne and Gaebler suggest that governments should: <ul><li>1) steer, not row (or as Mario Cuomo put it, &quot;it is not government's obligation to provide services, but to see that they're provided&quot;) </li></ul><ul><li>2) empower communities to solve their own problems rather than simply deliver services </li></ul><ul><li>3) encourage competition rather than monopolies </li></ul><ul><li>4) be driven by missions, rather than rules </li></ul><ul><li>5) be results-oriented by funding outcomes rather than inputs </li></ul>
  15. 16. <ul><li>6) meet the needs of the customer, not the bureaucracy </li></ul><ul><li>7) concentrate on earning money rather than </li></ul><ul><li>spending it </li></ul><ul><li>8) invest in preventing problems rather than curing crises </li></ul><ul><li>9) decentralize authority and </li></ul><ul><li>10) solve problems by influencing market forces rather than creating public programs </li></ul>
  16. 17. Old Public Administration: <ul><li>Large bureaucracy, slow, and inefficient </li></ul><ul><li>Low quality of civil service </li></ul><ul><li>Citizens unaware of their rights </li></ul><ul><li>Limited resources </li></ul><ul><li>Lack of capacity building for citizens and </li></ul><ul><li>politicians </li></ul><ul><li>Excessive and overlapping rules and </li></ul><ul><li>regulations </li></ul>
  17. 18. Old Public Administration <ul><li>Weak performance and weak results-based </li></ul><ul><li>management system </li></ul><ul><li>Lack of culture of competitiveness </li></ul><ul><li>State has strong monopoly position (excessive </li></ul><ul><li>regulation) </li></ul><ul><li>Discrete information process (lack of </li></ul><ul><li>transparency) </li></ul><ul><li>Poor accountability mechanisms </li></ul>
  18. 19. New Public Administration: Elements <ul><li>Lean State </li></ul><ul><li>Separation of Decision-making Levels </li></ul><ul><li>Lean Management </li></ul><ul><li>New Service Attitude </li></ul><ul><li>New Model of Control </li></ul>
  19. 20. NPM Element: Lean State <ul><li>Cutting back on excessive regulation </li></ul><ul><li>Prioritizing the freedoms of citizens </li></ul><ul><li>Defining the core functions of government </li></ul><ul><li>Developing Public-Private Partnerships (PPP) </li></ul><ul><li>Active participation of civil society in </li></ul><ul><li>governance – from planning, budgeting, and </li></ul><ul><li>implementation to monitoring and evaluation </li></ul><ul><li>Leveraging Resources </li></ul>
  20. 21. NPM Element: Separation of decision-making levels <ul><li>Separation of the strategic level (deciding what </li></ul><ul><li>has to be done; setting targets and time frames; </li></ul><ul><li>and defining the budget) from </li></ul><ul><li>the operative level (deciding how things have to be done; delivery of services; reporting) of decision making. </li></ul>
  21. 22. NPM Element: Lean Management <ul><li>Focus on efficiency, continuous improvement, </li></ul><ul><li>and capacity building </li></ul><ul><li>Development of new leadership style </li></ul><ul><li>Management by objectives </li></ul><ul><li>Teamwork </li></ul><ul><li>Flat organization </li></ul><ul><li>Performance incentives </li></ul>
  22. 23. NPM Element: New Service Attitude <ul><li>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 . </li></ul>
  23. 24. NPM Element: New Model of Control <ul><li>Quality Management </li></ul><ul><li>Decentralization </li></ul><ul><li>Benchmarking </li></ul><ul><li>Results-oriented </li></ul><ul><li>Product Approach </li></ul>
  24. 25. <ul><li>But the Question is: </li></ul><ul><li>Did PA in the Philippines embrace the necessary changes and reforms to address the demands of the times? </li></ul>