PUBLIC SECTOR ORGANISATIONAL CHANGE

1. PUBLIC SECTOR ORGANISATIONAL CHANGE MGM 4136 PREPARED BY PUAN HAMIMAH HASSAN

2. ORGANISATION STRUCTURE – DEFINATIONS An organizational structure is a mainly hierarchical concept of subordination of entities that collaborate and contribute to serve one common aim The formal configuration between individuals and groups with respect to the allocation of tasks, responsibilities, and authorities within organizations Refers to the lines of authority, decision-making, accountability, management systems and the relationships between constituent parts of an organization. Introduction

3. Governments have always changed their structures for the following purposes -to respond to new priorities in a changing society - to improve the management of existing ones -to take advantage of new capacities -to employ better governance in society in general -to serve political purposes Introduction

4. e.gsome of the functions previously performed in the core public service are later privatisedor contract them out; -new agency or department is developed within the current organisational structure; -one department/ministry is later separated to two departments/ministries cont…introduction

5. DIVERSIFICATION SPECIALISATION INCENTIVES CONFIDENCE BUILDING ACCOUNTABILITY underlying social trends influence the way governments organise their work include

6. Diversification: The move towards measuring and controlling output, rather than input and processes, increases the tendency towards organisationaldiversity. Some governments have taken the view that as long as outputs can be controlled, it matters less what kind of organisation does the production underlying social trends influence the way governments organise their work include

7. EXAMPLE 1: Economic Planning Unit or known as EPU (under the dept of prime minister) plays key role in developing and coordinating the country’s economic plans in the past. However since the announcement of Government Transformation Plan ; GTP, a new agency, PEMANDU was set, to spearhead the implementation of special projects under the GTP MALAYSIA

8. Performance Management & Delivery Unit (PEMANDU) was formally established on the 16th of September, 2009 and is a unit under the Prime Minister's Department. PEMANDU's main role and objective is to oversee the implementation, assess the progress, facilitate as well as support the delivery and drive the progress of the Government Transformation Programme (GTP) and the Economic Transformation Programme (ETP). PEMANDU

9. Specialisation: There is an increasing need for specialised skills as society and government become more complex, and as governments are required to provide more individualisedservices to citizens. underlying social trends influence the way governments organise their work include

10. -the Ministry of Education was restructured to become two ministries; Ministry of Higher education and Ministry of Education Ministry of Tourism was formerly known as the Ministry of Culture, Arts and Tourism. Agencies related to arts and culture were transferred to Ministry of Information Malaysia , example 2

11. Incentives: There is a new tendency to apply to government organizations the thinking derived from economics on the way incentives of different kinds influence people’s behaviour. This has meant that attempts to change the public service culture increasingly include organisationalchange. underlying social trends influence the way governments organise their work include

12. Transfer of government services or assets to the private sector. Government link companies (GLCs) were established to operate public services with aims to provide better service and run at profitable basis, as well as better perks and enumerations for the workers. Example 3- privatisation

13. Example 3- privatisation • Formerly known as LLN, now is called TenagaNasionalBerhad (TNB) • Petronas – oil and gas • Syabas – water services

15. Confidence building: Modern governments need to ensure that the public has confidence in the decisions they make. As communication becomes increasingly important, announcing a new organisationalstructure has strong symbolic value. Governments can also use new structures to “tie their own hands” by setting up an organisation in such a way that it will be difficult for governments to change it. This creates confidence in the durability of the policies represented by the structure. Credibility has also become a crucial resource for policy makers at the national level, and increasingly it comes from persuasion rather than coercion underlying social trends influence the way governments organise their work include

16. SuruhanjayaPencegahRasuah (SPRM) was established in 2009 to replace BadanPencegahRasuah (BPR). After PRU in 2008, Prime Minister Najib took office and started reforms including SPRM to strengthen public confidence in fighting to abolish corruptions Example 4 -sprm

17. Accountability: The tendency for governments to move from controlling processes to controlling performance is increasingly seen as possible only if an individual can be held responsible and accountable for such performance and his or her incentives modified accordingly. -This trend away from the “faceless bureaucrat” and towards more personal accountability appears to create a preference for organisational structures that facilitate such accountability. underlying social trends influence the way governments organise their work include

18. to raise higher learning education standards of the Malaysia, government has reformed the public universities structure. Formerly, all universities were subjected to massive bureaucracy and reporting to the Ministry of Education The reforms aimed to increase the ranking of Malaysian universities in the world Example 5- restructure of public universities

19. UniversitiSains Malaysia- as the first APEX (Accelerated Programme for Excellence) university of Malaysia in 2008. Establishments of Research University status to USM, UPM, UM, and UKM. These universities have accessed to larger research grants and they are accountable to raise their universities’ performances Example 5- restructure of public universities

20. Advantage/disadvantag: profit or loss

21. Issues : public confidence ?