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This paper reviews the economic literature on bureaucratic behavior, the theory of the firm, and agency theory and its application to the public sector, to determine whether any lessons can be drawn regarding how far governments should go in delegating control over inputs to public sector managers. Against a background survey of country practices, the paper concludes that input controls are one of a number of ways of dealing with the agency problem of trying to ensure that bureaucrats act in the interests of the government. Other methods can be, and have been, used for dealing with moral hazard-type agency problems, but features of current budgetary systems make it more difficult to deal with inputs that have implications for future resource use.
This paper reviews the economic literature on bureaucratic behavior, the theory of the firm, and agency theory and its application to the public sector, to determine whether any lessons can be drawn regarding how far governments should go in delegating control over inputs to public sector managers. Against a background survey of country practices, the paper concludes that input controls are one of a number of ways of dealing with the agency problem of trying to ensure that bureaucrats act in the interests of the government. Other methods can be, and have been, used for dealing with moral hazard-type agency problems, but features of current budgetary systems make it more difficult to deal with inputs that have implications for future resource use.
Policymakers and program managers are continually seeking ways to improve accountability in achieving an entity's mission. A key factor in improving accountability in achieving an entity's mission is to implement an effective internal control system. An effective internal control system helps an entity adapt to shifting environments, evolving demands, changing risks, and new priorities. As programs change and entities strive to improve operational processes and implement new technology, management continually evaluates its internal control system so that it is effective and updated when necessary. Section 3512 (c) and (d) of Title 31 of the United States Code (commonly known as the Federal Managers? Financial Integrity Act (FMFIA)) requires the Comptroller General to issue standards for internal control in the federal government.
The review of human resource management (HRM) in Belgian government provides a detailed diagnosis and solutions for improving the management of government employees in the Federal Government and various regions.
Reforming public-sector organizations--their structures, policies, processes and practices--is notoriously difficult, in rich and poor countries alike. Even in the most favorable of circumstances, the scale and complexity of the tasks to be undertaken are enormous, requiring levels of coordination and collaboration that may be without precedent for those involved. Entirely new skills may need to be acquired by tens of thousands of people. Compounding these logistical challenges is the pervasive reality that circumstances often are not favorable to large-scale reform. Whether a country is rich or poor, the choice is not whether, but how, to reform the public sector--how optimal design characteristics, robust political support, and enhanced organizational capability to implement and adapt will be forged over time. This edited volume helps address the “how†? question. It brings together reform experiences in public financial management and the public sector more broadly from eight country cases in East Asia: Cambodia, Indonesia, Lao People's Democratic Republic, Malaysia, Myanmar, Papua New Guinea, Thailand, and Vietnam. These countries are at different stages of reform; most of the reform efforts would qualify as successes, while some had mixed outcomes, and others could be considered failures. The focus of each chapter is less on formally demonstrating success (or not) of specific reform, but on documenting how reformers maneuvered within different country contexts to achieve specific outcomes. Despite the great difficulty in reforming the public sector, decision-makers can draw renewed energy and inspiration, learning from those countries, sectors, and subnational spaces where substantive (not merely cosmetic) change has been achieved, and they can identify what pitfalls to avoid.
By comparing the autonomy, control and internal management of public organizations, this book show how New Public Management doctrines work out in three small European states with different politico-administrative regimes. Using survey data on 226 state agencies, hypotheses drawing on organization theory and neo-institutional schools are tested.
This book takes stock of the past two decades of public sector modernisation in OECD countries. It assesses failures and successes and identifies challenges ahead. It includes comparable data and tables comparing systems across countries.