MGM4136 Current Issues in Management

Public Sector Organizational Change• Initiatives involving large-scale, planned, strategic, and administrative change (Abramson and Lawrence 2001; Kotter 1995 ).

• Any significant alteration of the behavior pattern of a large number of the indviduals who constitute an organization (Dalton, 1978)

New Public Management

A set of contemporary administrative changes aimed at improving public sector efficiency and performance in the delivery of services. (Noore,2006)

Key Elements

•Decentralization of authority --contracting out and quasi-privatization;•Downsizing, deregulation, and employee empowerment

in the public sector;• Emphasis outcomes and results rather than inputs and

processes,

• Private sector-style management and flexibility;• Improving quality of regulation and the management of

human resources;• Emphasizes on the centrality of citizens/customers and

accountability for results (Osborne and Gaebler, 1992; Hood, 1995; Pollitt and Bouckaert, 2000).

Background Reforms are nothing new in public services --started since the early 1980s.

By early 1980s, a major policy shift occurred when Malaysia :

• Opted for heavy industrialization and joint ventures with foreign partners.

• Increased its export substantially to emerge as a leading exporter of manufacturing and electronics goods in the world

• The global economic recession of the 1980s led to a serious rethink of the prevailing economic principles and policies elsewhere.

•Malaysia could neither remain unaffected nor could ignore the realities as they had serious implications for the domestic economy.

•Globally, the new economic philosophy -- not only questioned the size and capacity of the public sector but also presented market mechanisms as better alternatives for greater efficiency and faster economic growth.

• There has been a worldwide movement towards privatization and commercialization of public sector undertakings.

Organisational Structure in CabinetFirst Cabinet Portfolio( 1957)

Chief Minister Prime Minister of MalaysiaDeputy Prime Minister of Malaysia

Minister of Home AffairsDeputy Minister of Home Affairs

Ministers in the Prime Minister’s DepartmentNational Unity and Performance ManagementLaw and ParliamentEconomic Planning Unit (EPU)Islamic AffairsPerformance Management and Delivery Unit (Pemandu) CEO Modernisation and Management, Public Complaints Bureau

Minister of Natural Resources Minister of FinanceMinister of Finance II

Minister of Transport Minister of Education

Minister of Agriculture and CooperativesAssistant Minister of Agriculture and Cooperatives

Minister of Transport

Minister of HealthAssistant Minister of Health

Minister of Plantation Industries and Commodities

Minister of WorksAssistant Minister of Works

Minister of Home Affairs

Minister of Labour Minister of Information, Communications and Culture

Minister of Local Government, Housing and Town Planning Minister of Energy. Green Technology and Water

Minister of Communications, Telecommunications and Post Minister of Rural and Regional Development

Minister of Higher Education

Minister of International Trade and Industry

Minister of Science, Technology and Innovation

Minister of Natural Resources and Environment

Minister of Tourism

Minister of Agriculture and Agro-based Industry

Minister of Defence

Minister of Works

Minister of Health

Minister of Youth and Sports

Minister of Human Resources

Minister of Domestic Trade, Co-operatives and Consumerism

Minister of Housing and Local Government

Minister of Women, Family and Community Development

Minister of Foreign Affairs

Minister of the Federal Territories and Urban Well-being

Organisational Structure in Cabinet

Reasons For Restructuring/Change

1. To improve public sector performance.• manage operations efficiently and effectively• responsive delivery of public services• improve productivity (save time & cost)

2. To enhance accountability in the Public Sector• establish criteria to measure the performance of

public officials and to ensure that standards are met.

Positive Implications

Negative Implications

Monopoly

A List of ExamplesPrivatization• Pos Malaysia Berhad• Indah Water Konsortium• Tenaga Nasional Berhad• Telekom Malaysia

Merger• Kementerian Pendidikan Malaysia

Transformation• Urban Transformation Center• E-Government

Lack of Information

I don’t understand. I

don’t care!

Employees refuse to change

Merger

The combination of two or more political or administrative

entities such as municipalities into a single entity.

Conclusion

• Malaysian government had done a great job in providing a good service to the public.

• Malaysia continues it’s commitment and efforts to achieve a higher standard in the quality of the services provided.