MGM4136 Current Issues in Management. Public Sector Organizational Change Initiatives involving large-scale, planned, strategic, and administrative change.

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Presentation transcript:

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 Cabinet First Cabinet Portfolio( 1957) Chief MinisterPrime Minister of Malaysia Deputy Prime Minister of Malaysia Minister of Home Affairs Deputy Minister of Home Affairs Ministers in the Prime Minister’s Department National Unity and Performance Management Law and Parliament Economic Planning Unit (EPU) Islamic Affairs Performance Management and Delivery Unit (Pemandu) CEO Modernisation and Management, Public Complaints Bureau Minister of Natural ResourcesMinister of Finance Minister of Finance II Minister of TransportMinister of Education Minister of Agriculture and Cooperatives Assistant Minister of Agriculture and Cooperatives Minister of Transport Minister of Health Assistant Minister of Health Minister of Plantation Industries and Commodities Minister of Works Assistant Minister of Works Minister of Home Affairs Minister of LabourMinister of Information, Communications and Culture Minister of Local Government, Housing and Town PlanningMinister of Energy. Green Technology and Water Minister of Communications, Telecommunications and PostMinister 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

A List of Examples Privatization 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.