Theory and Practice of

Public Administration

Wilhelmina L. Cabo

University of the Philippines

OPEN UNIVERSITY
Theory and Practice of Public Administration
By Wilhelmina L. Cabo

Copyright © 1997 by Wilhelmina L. Cabo

and the University of the Philippines Open University

Apart from any fair use for the purpose of research or private study,
criticism or review, this publication may be reproduced, stored
or transmitted, in any form or by any means
ONLY WITH THE PERMISSION
of the author and the UP Open University.

Published in the Philippines by the UP Open University

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Email [email protected]

First printing, 1997

Second printing, 1998

ISBN 971-767-047-1

Printed in the Philippines

Table of Contents
UNIT I: The Study and Practice of Public Administration
Module 1
The Meaning, View of Public Administration 3
Nature, and Scope Administration and Public 5
of Public Public and Private Administration 6
Administration
Module 2
The Evolution of Development of Public Administration Study 16
Public Politics-Administration Dichotomy 17
Administration as a Civil Service Reform Movement and Scientific 17
Field of Study Management
New Focus and Trends 18
Paradigmatic Issues 19

Module 3
Public Overview of the Study and Practice of Public 28
Administration in Administration in the Philippines
the Philippines

UNIT II: Theories of Administration

Module 4
Organization Theory Models of Organization Theory 36
Classical Theory 37
Neoclassical Theory 46
Integrative or Modern Organization Theory 49
Decision-Making Theory 49
Industrial Humanism 51
Open-Systems Theory 52
Contingency Approach 54

Module 5
Development Development Administration 63
Administration New Public Administration 65
and New Public
Administration

Module 6
Reinventing Concepts and Principles of Reinventing 72
Government Government
Reinventing in the Philippines 81
UNIT III: Public Administration Processes
Module 7
Public Policy Policy Studies 84
Some General Considerations About Public Policy 85
Defining Public Policy 85
The Policy Process, Actors and Environment 88
Public Policy in the Philippines 91

Module 8
Organization and The Nature of Organization and Management 96
Management Organization 96
Management 97
Organization and Management in the Public Sector 99
Organization and Management Techniques 99
Some Words About Organization and Management Studies 100
O and M Studies in the Philippines 103
Module 9
Personnel Importance and Scope of Personnel Administration 108
Administration Personnel Administration in the Public Sector 109
The Philippine Central Personnel Agency 112
Some Issues in Personnel Administration 113

Module 10
Fiscal What is Public Fiscal Administration? 117
Administration Lingering Issues in Fiscal Administration and Development 121

Module 11
Local Government Concepts and Characteristics of Local Governments 124
A Profile of Local Governments in the Philippines 127
Decentralization and the 1991 Local Government Code 128

UNIT IV: Public Administration and National Development

Module 12
Concepts and Development and Its Varied Senses 135
Strategies of Human Development in the Philippine Context 143
Development

Module 13
Issues, Trends, Some Major Issues and Concerns 149
and Challenges Bureaucracy and the Civil Service 149
National Public Administration in a Global Community 150
The Scope and Role of Public Administration 151
Technology and Bureaucratic Traditions 151
Public Accountability and Graft and Corruption 152
Civil Society and Non-Government Organizations 152
Unit I
The Study and Practice of
Public Administration
PM 201 UP Open University

1
The Meaning, Nature, and
Scope of Public Administration

INTRODUCTION
I would say that this module is a crucial one in this course. In a figurative way of
speaking, it will provide you with the first ray of light in understanding public
administration. Thus, in this module, we will examine its meaning, nature, and scope.

I also discussed it in the Overview portion of this module. To enhance your

understanding of the topic, I suggest that you read the Tapales and Cariño materials
that accompany the Manual. The supplementary readings that are listed on the next
page will also broaden your knowledge and appreciation of public administration. I
suggest that you try to find time to read them. These are available in the learning
centers. You will have a chance to see them when you go there for your tutorials.

OBJECTIVES

When you finish the module, you should be able to:

1. discuss the meaning of public administration;
2. define public administration as a field of study and as practice; as art and as
science;
3. describe the characteristics of public administration;
4. distinguish public administration from private administration;
5. discuss the changing meaning of public administration; and
6. appreciate the impact of public administration on our lives.

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Unit I: The Study and Practice of Public Administration
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READINGS

Tapales, Proserpina. “Part 1: Concepts and Issues in Public Administration” in PSSC

Encyclopedia on Public Administration and Political Science (Forthcoming).
Cariño. Ledivina. “Contributions of the Perspective of Public Administration” in
Bautista , et al., (eds.), Introduction to Public Administration in the Philippines:
A Reader. Quezon City: College of Public Administration, University of the
Philippines, 1993.

SUPPLEMENTARY READINGS
Allison, Graham. “Public and Private Management: Are They Fundamentally Alike
in All Unimportant Respects?’’ in Jay Shafritz and Albert Hyde (eds.),
Classics of Public Administration , Chicago: The Dorsey Press, 1987.
Bautista, Victoria. Kahulugan, Sakop at Kasaysayan ng Disiplina ng
Administrasyong Pampubliko ng Pilipinas. Quezon City: College of Public
Administration, University of the Philippines, 1990.
Caiden, Gerald. “The Meaning of Public Administration” in Gerald Caiden (ed.),
The Dynamics of Public Administration: Guidelines to Current
Transformations in Theory and Practice. Minsdale, Illinois: The Dryden
Press, 1971.
Nigro, Felix and Lloyd Nigro. “What is Public Administration?” in Nigro and Nigro.
(eds.), Modern Public Administration (itals), New York: Harper and Row
Publishers, 1989.
Rosenbloom, David H. and Debora D. Goldman. “The Practice and Discipline of
Public Administration: Competing Concerns” in David Rosenbloom (ed.),
Public Administration: Understanding Management, Politics and Law in the
Public Sector, New York: Random House, 1986.
Waldo, Dwight. “ What Is Public Administration? ” in Waldo Dwight (ed.), The
Study of Administration. New York: Doubleday and Company, Inc., 1955.

ACTIVITY 1
How would you define public administration? What is your notion of the term?
Before you turn to the next page, I would like you to list down your ideas about
the meaning of the term public administration. Then go back to the list after
completing the module to compare what you wrote and what we discussed here.

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VIEW OF PUBLIC ADMINISTRATION

What is public administration? The literature of public administration abounds with
various definitions of the term. To acquaint you with them, I have listed some that are
frequently cited in the literature. You will find them at the end of the module. But don’t
look yet until you finish reading the module.
We can discern from the literature several ways of examining its meaning. One is in terms
of how it is viewed or used. According to Waldo (1955), public administration has dual
usages: as a field of practice and as a field of study. It means that public administration is “
both a professional and scholarly discipline” (Ocampo,1993). When distinction is made
between the practice and study, it is customary to use small letter to refer to the former and
big letter to denote the latter.

In the first category, the meaning invoked is the activity or process of administering public
affairs and carrying out governmental functions (Waldo,1955). Enacting a law, making
decisions on the best policy concerning the debt issue, constructing the megadikes in
Pampanga to contain the lahar flow, formulating the Medium Term Philippine
Development Plan, maintaining peace and order, processing of claims, building roads and
bridges, issuance of license, setting standards for environmental protection, providing
health and welfare services - all these activities and processes illustrate the practice of
public administration.
When referred to as a field of study or discipline, Public Administration means
“the systematic study and improvement of government capacity and practice in forming
policies, making decisions, implementing them, and securing the desired results”
(Ocampo,1993). As a scholarly pursuit, Public Administration is concerned with
discovering and advancing theoretical and practical knowledge in the field using scientific
methods that other social sciences use, for example, empirical studies, case methods
analysis, surveys, quantitative analysis, etc.

SAQ 1
Which of the following definitions refer to the practice of public administration? study of public
administration?
1. “Public administration is the art and science of management as applied to affairs of the state.”
(Cited in Waldo, 1955)
2. “Public administration differs from political science in its emphasis on bureaucratic structure
and behavior and its methodologies.” (Cited in Rossenbloom, 1989)
3. “The process of public administration consists of actions involved in effecting the intent or
desire of a government. It is thus the continuously active, ‘business’ part of government,
concerned with carrying out the law, as made by the legislative bodies (or other authoritative
agents) and interpreted by the courts, through the processes of organization and management.”
(Cited in Rossenbloom, 1989)

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ASAQ 1
Numbers 1 and 3 refer to the practice and Number 2 refers to the study of
public administration.

Now you may ask: what constitutes the public administration field or area of
inquiry? In other words, what is the subject matter or focus to be studied ? There
is an abundance of phenomena, variables or topics that can be studied in the
practice of public administration. A scholar, student, or practitioner of public
administration may study how a policy is made and implemented, the
interrelationships between government institutions, human resource development
of a particular agency, the impact of environmental regulation on communities
and economic activities, the behavior and attitude of public servants as they
perform their official duties, the leadership styles of public managers, the
mechanisms adopted by poverty-focused programs to achieve their goals, the
relations of government and the citizens. The list goes on. We can say that as the
size and scope of government activities increase, the area of inquiry also expands.

Public Administration is also considered an applied discipline because it has

practical use for government, particularly in improving government performance.
(I’m not saying, though, that if government is efficient, wittingly or unwittingly, in
making the people poor , it should aspire to do better in making their lives more
miserable.) It prepares persons for careers in public service and trains them to be
good public administrators.

There is also a view that public administration is both an art and a science. As an
art, public administration involves creativity , leadership, a good sense of
judgment or what Waldo (1955) calls the intangibles in administration. This view
is closely allied to the practice of public administration.

Public administration as a science means that there is a body of knowledge or

theories that can explain or predict certain phenomena or variables in the field of
public administration. The public administration theories and concepts are built
based on empirical research and using systematic methods. (You will learn more
about these theories when we move to the next modules.) These theories can be
used not only to explain but also to improve the art and practice of public
administration (Bautista, 1990). As the art and practice of public administration
are closely intertwined, so are the science and study of public administration.
From the above descriptions, we can deduce a close link between the study and
practice of public administration. Can you explain it?

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ADMINISTRATION AND PUBLIC

There is much to be said about the features or characteristics that describe public
administration as practice and academic discipline and these are discussed further in
the Tapales material. For instance, in delineating the practice of public
administration, the author pointed out that it has a rational and generic meaning.
Broadly defined as a cooperative human action, administration connotes rationality
because the cooperative action seeks to achieve specific goals. Administration has
also generic or universal meaning because it can happen in any organization, public
or private, and in any political system and culture. There are certain aspects of
administration, too, that are common among them. For instance, recruitment is a
technique that is used in both public and private administration and this process is
guided usually by the policy of getting the best minds, talents, and skills in the
market.

As to the modifier public, it refers to a collective, community, all or general. Thus,

administration is for all; the attainment of objective of cooperative human action is
meant to benefit the community and the general population.

The conventional usage of public administration (with emphasis on the word

“public”) focuses on the government and its various institutions. We usually
connote public administration with government and what it is doing for people and
society. (Is this in the list of your ideas about public administration?) It also means
that administration takes place in or is carried out by government and its arms. This
perspective is largely drawn from general political theory in political science which
is the mother discipline of public administration. (You will know more about the
disciplinal lineage of public administration when you reach Module 2.)

In the Cariño material, the author posits that public administration has taken a new
meaning. What is it? Do you agree with her? What factors do you think will
explain the shift in the meaning of the term public in Philippine context?

There is also a view that public administration differs across cultures and political
systems, that what may be regarded as public administration in one country may not
necessarily be true in another. The domain of public administration can vary from
state to state. What may be considered as functions and activities of government in
one country may not be the same as those in another. For instance, many countries
in Western Europe own and operate their public transport system. In the
Philippines, public transport is generally in the hands of private companies. Can
you give your own examples? Waldo (1955) cites that culture accounts for the
variation in administration between different societies. “As the constituent parts of
culture vary within a society, or between societies, so does administration vary as a
system of rational cooperative action in that society, or between societies.”

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PUBLIC AND PRIVATE ADMINISTRATION

Another way of defining public administration is to distinguish it from private
administration. Tapales identified four differences. Can you name and explain
them? Do you have any observation that you can add to the list?

The often cited difference between public and private administration is goal or
mission. The former is service-oriented and the latter is guided primarily by
profits. Another difference lies in the nature of goods and services they provide.
Public administration provides what are called public goods which can be enjoyed
by all regardless of whether they have money to pay for them or not. Examples of
public goods are national defense, streetlights, public parks, and roads. You
might argue that these are funded out of taxpayers’ money, thus, people have also
paid for them. Correct. But even those who have not paid taxes do benefit from
them. When government provides these goods and services , no one is excluded
from benefiting from them, no one is directly charged for their availment.

Private administration, on the other hand, provides goods and services to those
who can afford to pay for them. Using this as criterion, it is quite selective in
whom it is going to deliver goods and services to. Like, if you want to eat
hamburger in the mall, you have to pay for it so you can enjoy it. This difference
is closely related to the goal orientation of public and private administration.
Pause for a while and think about it.

Public administration is subject not only to public pressures and scrutiny or what
Tapales calls “ fishbowl existence” but also to internal legal administrative
constraints presented by government rules and regulations. Pressures are posed as
well by political institutions, such as the legislature and individual political
leaders themselves, on the civil servants. This kind of environment makes the
tasks of public administrators more complicated and their discretion and
flexibility more circumscribed than their counterparts in the private sector. This
characteristic distinguishes public administration from private administration (Fry,
1989).

According to Caiden (1971), public administration has peculiarities that separate

it from other institutions. First, it is unavoidable. Citizens cannot escape the
reach of its authority and have to deal with it in their daily life. Second, it can
compel obedience from the citizens because it has a legal monopoly of coercive
power. The powers it enjoys is generally accepted and considered legitimate by
the people and necessary for maintaining a stable, civilized, and productive
society.

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Unit I: The Study and Practice of Public Administration
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Third, the activities carried out by public administration have priority. This
means that the activities are important and significant in making the life of
citizens better, that these are all needed in making society a better place to live in.
There is an implication here that public administration must be able to perform its
functions with efficacy so that no activities will be jeopardized. Identifying what
activities require priority attention and budget than others will certainly pose a
problem to public administration because resources are scarce.

Fourth, having the largest single multipurpose organization, public administration

can provide, as it does, people with a wide range of public services, from issuing
birth certificate to pollution control, granting franchise, maintaining peace and
order, vaccinating children, delivering mail, sweeping the streets, maintaining
public parks, etc. Can you give some examples, too?

Before we continue, I have prepared a small task that you can quickly do. You’ll
find it in Activity 2. The activity will give you the opportunity to reflect on and
appreciate the impact of public administration on our life. Ready?

ACTIVITY 2
On a sheet of paper, describe your typical working day from the time you
wake up to the time you go to bed. When you’re through, go over it and
ponder whether there’s anything in your typical day that is completely
unaffected, directly or indirectly, by public administration.

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COMMENT TO ACTIVITY 2
See? Nothing seems to escape the reach of public administration. For example, if you cited
that the first thing you do is heat some water for your morning coffee, government has
ensured through its regulatory powers that your water is safe for drinking. As you eat your
pan de sal with your coffee, you are assured that it no longer contains some toxic chemical
that used to be there. Remember the issue about the harmful chemical used in making
flour? Without prompt government action, manufacturers would have continued using it
and we wouldn’t be wiser that we’re killing ourselves slowly and unknowingly.

Fifth, public administration has, for its boss, the political leadership to which it reports
directly. It’s the political leadership that determines the activities it will perform, the
services to provide, the organizations by which these will be carried out, the budget to
support them, the mission and objectives to follow, etc. In our political system, it’s the
elective officials, local and national, who make up our political leadership.

Sixth, measuring the performance of public administration is difficult due to its political
nature and the kind of functions and processes it performs. For instance, when we read in
the papers about the spate of kidnapping, does it mean that public administration has failed
in its job of maintaining peace and order in the country? And if we don’t see them reported,
does it mean that law enforcement is effective? In the private sector, performance can be
easily measured using their bottomline-profit.

Seventh, there are public expectations which public administration must meet but which
are not heaped upon the private sector. A basic expectation is the protection and promotion
of public interest at all times. Public officials are also expected to possess personal virtues
and attributes and, most often, the public expects that they observe these in their public and
private life. They are expected to be honest, scrupulous, courteous, efficient, dedicated,
prompt, etc.

While reading the module and the assigned materials, please be sure that you know the
following concepts and their importance in understanding the meaning of public
administration:
♦ rationality of public administration
♦ generic meaning of public administration
♦ art of public administration
♦ science of public administration
♦ study of public administration
♦ practice of public administration
♦ size and scope of study and practice of public administration
♦ differences between public and private administration

8 MODULE 1: THE MEANING, NATURE, AND

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Unit I: The Study and Practice of Public Administration
PM 201 UP Open University

COMMENT TO ACTIVITY 1
Now that you are through reading, try to compare your notion of public
administration with what we have discussed. How similar is it to the ideas
presented here? Did you mention something like “public service” or perhaps
“administration of public affairs” or “government at work?” That’s fine for a start.
I’d say though that there’s no precise or even standard way of defining public
administration. As you will note in the list of definitions below (this is what I
promised you earlier), scholars themselves could not agree to a common single
definition or even a one-sentence description. But did you notice that, generally,
all of them refer to the practice of public administration in their definition?

Here’s the list of some definitions that I promised.

“Public administration is the organization and management of men and
materials to achieve the purposes of government.”
“Public administration is the art and science of management as applied to
affairs of the state.”
Cited in Waldo, 1955
“Public administration:
1. is cooperative group effort in a public setting.
2. covers all three branches - executive, legislative, and judicial - and their
inter-relationships.
3. has an important role in the formulation of public policy and is, thus, part
of the political process.
4. is more important than, and also different in significant ways from, private
administration.
5. (as a field of study and practice, has been much influenced in recent years
by the human-relations approach.)
6. is closely associated with numerous private groups and individuals in
providing services to the community. ”
Cited in Caiden, 1971
“Public administration is policy-making. But it is not autonomous, exclusive
or isolated policy-making. It is policy-making on a field where mighty forces
contend, forces engendered in and by the society. It is policy-making subject
to still other and various policy-makers. Public administration is one of a
number of basic political processes by which this people achieves and controls
governance” (p. 170).
Cited in Fry, 1989

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Unit I: The Study and Practice of Public Administration
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“From a very broad perspective, public administration may be viewed to refer

not only to those activities in carrying out or in implementing the policies and
programs of the government but also to the processes and contents of these
policies and programs. From an even broader perspective, public
administration may refer to cooperative human action whether within the
public bureaucracy, the private sector, or in nongovernmental organizations
aimed at delivering services to the people.”
De Guzman,1993

“Public administration.... is the action part of government, the means by

which the purposes and goals of government are realized.
Public administration as a field is mainly concerned with the means for
implementing political values.
Public administration can be best identified with the executive branch of
government.
Public administration differs from political science in its emphasis on
bureaucratic structure and behavior and its methodologies. Public
administration differs from administrative science in the evaluative techniques
used by nonprofit organizations, and because profit-seeking organizations are
considerably less constrained in considering public interest in their decision-
making structures and the behavior of their administrators.
The process of public administration consists of the actions involved in
effecting the intent or desire of a government . It is thus the continuously
active, ‘business’ part of government, concerned with carrying out the law, as
made by the legislative bodies (or other authoritative agents) and interpreted
by the courts, through the processes of organization and management.”
Cited in Rossenbloom, 1989

ACTIVITY 3
This activity will take you out of your house or workplace and you need to devote
some time to accomplish it. It is aimed at helping you understand the changing size
and scope of the practice of public administration. We will focus on local
governments to see how much change has occurred in the scope of concerns that they
must attend to. What I’d like you to do is to have a chat, maybe for thirty minutes or
so, with your local officials or staff about the things or activities that your local
government is doing. Find out the changes in what they are doing since 1991 when the
Local Government Code was implemented. Try to discuss with them the implications
of the changes on having a more effective, efficient, and responsive public
administration at the local level.

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PM 201 UP Open University

COMMENT TO ACTIVITY 3

What did you learn from your field interview? Did it enable you to have a concrete
grasp of the size and scope of public administration at the local level? With the
passage of the Local Government Code, new functions were transferred to the
local governments. For example, did you find that local governments are now
empowered to regulate the operation of tricycles and to reclassify agricultural
lands within their jurisdiction? They are now also responsible for providing basic
health services like primary health care. These are just some of the increased
scope of local government activities that the Code has effected. Certainly, these
new responsibilities have implications on local administration. For instance, the
additional functions may necessitate changes in the internal organization,
assignment of tasks among the staff, recruitment of additional personnel, or
require greater effort to generate resources to support the new functions.

SAQ 2
Using a matrix , identify the characteristics of public and private administration
based on these criteria: goal, nature of goods/services provided, environment,
accountability, measure of performance. Your matrix can look something like
this:

Criteria Public Administration Private Administration

goal/mission

environment

accountability

measure of
performance

nature of
goods/services
provided

Turn to the next page for the answer.

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ASAQ 2

Criteria Public Administration Private Administration

goal/mission public service profit

relations to subject to public scrutiny less exposed to public

environment (fishbowl existence); public inspection; internal
demands/expectations; processes are kept from
political pressures public; response to public
guided by market dynamics

accountability accountable to public; management accountable to

transparency in transactions owners of
is expected firms/corporations

measure of performance difficult to profit is the bottomline

performance measure; general public
satisfaction is the gauge; in
the ultimate sense-general
improvements in quality of
life (which itself is open to
many interpretations)

nature of public goods - basically private goods - availment

goods/services open to all based on one’s ability to pay
provided

Comment

Your answers don’t have to be in sentence form. You can fill up the cells with
key terms or phrases that capture the meaning or answer. And they don’t have to
be written in precisely the same style as I wrote them here. It’s the main idea
that’s important.

If you are able to fill correctly at least 8 cells in the matrix, give yourself a tap on
the back. If it’s 5 or below, well......But don’t be disheartened. Just think that
there’re only 5 points more to master. That’s half of the work done. So, you
might want to go back to the materials. Try to be more conscious of the
characteristics of the two types of administration.

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REFERENCES
Bautista, Victoria. (Cited in Supplementary Readings.)

Caiden, Gerald. (Cited in the Supplementary Readings.)

Fry, Brian. “ Five Great Issues in the Profession of Public Administration ” in

Jack Rabin, W. Bartley Hildreth, Gerald J. Miller (eds.) Handbook of Public
Administration, New York: Marcel Dekker, 1989.

Ocampo, Romeo. “Toward a Review of Research and Knowledge in Philippine

Public Administration ’’ in Victoria A. Bautista, Ma. Concepcion P. Alfiler,
Danilo R. Reyes, Proserpina D. Tapales (eds.) Introduction to Public
Administration in the Philippines: A Reader, Quezon City: College of Public
Administration, University of the Philippines, 1993.

Rosenbloom, David H. and Deborah D. Goldman. “The Practice and Discipline

of Public Administration: Competing Concerns” in David Rosenbloom (ed)
Public Administration: Understanding Management, Politics and Law in the
Public Sector, New York: Random House, 1989.

MODULE 1: THE MEANING, NATURE, AND 13

SCOPE OF PUBLIC ADMINISTRATION
Unit I: The Study and Practice of Public Administration
PM 201 UP Open University

2
The Evolution of
Public Administration
as a Field of Study

INTRODUCTION
A review of the growth of public administration study will tell you that the field's
journey to claiming its rightful niche in the academic community has been
tumultuous. Questions of definition, content, boundaries, methods, and identity
had been thrown along its way.

In this module, we will study the development of public administration as a field

of study and examine the dominant issues that accompanied its growth.

OBJECTIVES

After completing this Module , you should be able to:

1. trace the evolution of public administration as a discipline;
2. summarize the significant contributions of leading personalities and scholars
to the study of public administration; and
3. discuss the major themes and paradigmatic issues in the evolution of the field.

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AS A FIELD OF STUDY
Unit I: The Study and Practice of Public Administration
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READINGS

Reyes, Danilo. “The Study of Public Administration in Perspective: A Passing

Review of the Development of the Discipline” in Philippine Journal of Public
Administration, 39(1) (January 1995):1-36.

Reyes, Danilo. “The Identity Crisis in Public Administration Revisited: Some

Definitional Issues and the Philippine Setting” in Bautista, et al., (eds.),
Introduction to Public Administration in the Philippines: A Reader ( cited in
Module 1)

Woodrow, Wilson. “The Study of Public Administration” in Dwight Waldo (ed.),

Ideas and Issues in Public Administration, New York: McGraw-Hill Book,
Co., Inc., 1953 (pp.64-75).

SUPPLEMENTARY READINGS
Caiden, Gerald. “The Study of Public Administration” in Gerald Caiden (ed.),
The Dynamics of Public Administration : Guidelines to Current
Transformations in Theory and Practice (cited in Module 1)

Fry, Brian R. “Five Great Issues in the Profession of Public Administration” in

Jack Rabin, W. Bartley Hildreth, Gerald J. Miller (eds.) Handbook of Public
Administration, New York: Marcel Dekker, 1989.

Golembiewski, Robert. “Public Administration as a Field” in Robert T.

Golembiewski (ed.)Public Administration as a Developing Discipline, New
York: Marcel Dekker, 1977.

15 MODULE 2: THE EVOLUTION OF PUBLIC ADMINISTRATION

AS A FIELD OF STUDY
Unit I: The Study and Practice of Public Administration
PM 201 UP Open University

DEVELOPMENT OF PUBLIC ADMINISTRATION

STUDY
You will recall in Module 1 that public administration practice is as old as the
history of many nations; it existed in ancient Greece, Mesopotamia, Egypt and
China. This was mentioned in the Tapales material. Caiden, assigned here as a
supplementary reading, also mentioned that it is as old as civilized society.
Administration was present when the leaders of nations built their cities,
constructed massive infrastructure projects, organized huge armies, managed vast
territories, and codified their laws. These human activities however were
considered as part of the political economy, military organization, or religious
activities (Caiden, 1971).

It was not until the seventeenth century when the term “public administration”
came into use. This happened in monarchical Europe when distinction was made
between the king’s administration of public affairs and management of his private
household. Later, as church and state were separated and government grew to
take care of increasingly diverse societal activities, modern public administration
emerged (Caiden,1971).

According to Caiden (1971), the first systematic studies in contemporary public

administration were done in Prussia. These studies, conducted and taught by
professors of cameral sciences, were designed to prepare potential public officials
of Prussia for government service. Cameral sciences covered all knowledge
considered necessary in running an absolutist state. The studies basically
described the formal machinery of government, the work of civil servants, and the
code of conduct expected of public officials. The cameralist approach to the
study of public administration influenced studies elsewhere in Europe and
continued until the twentieth century when it was replaced by administrative law
and legal studies.

In American shores, it is generally accepted that the first call for a systematic
study of public administration was sounded by Woodrow Wilson in 1887 in his
essay “The Study of Public Administration.” But years before that, as Reyes
(1995) contends, the Frenchman, Tocqueville, who was observing the penal
system in America, already noted the lack of study of public administration in the
United States.

Here in the Philippines, we can say that the formal introduction of public
administration study occurred when the Institute, now College of Public
Administration, was established in the University of the Philippines in 1952. We
will have time to discuss this more when we go to Module 3.

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AS A FIELD OF STUDY
Unit I: The Study and Practice of Public Administration
UP Open University PM 201

Politics-Administration Dichotomy

We have briefly discussed above the beginning of the study of public administration.
Reading Wilson’s piece will further enhance your knowledge on this. The material
elaborates on the separation of administration from the realm of politics, thus, providing
the analytical focus of public administration study.

In that essay, Wilson called attention to the need for efficient administration and to keep
partisan politics from intruding into the task of administration. He proposed the study of
what government can properly and successfully do and how it can accomplish these in an
efficient way so that “stable principles” that could guide administration could be
identified. Even as he stressed the need for efficient and politics-free administration,
Wilson was well aware that a clear demarcation line between politics and administration
could not be easily drawn. His essay provoked a long-running debate on the dichotomy
of politics and administration, which was to become a major theme in the evolution of the
field.

Reyes, whose article on PA development serves as a basic reference for Module 2,

reviewed the development of the discipline as it evolved in the United States. Take note
of the major themes, debates and trends that characterized the growth of the field and the
prominent scholars and personalities and their contributions. Consider these points as
general guides in tracking the evolution of the field.

The first part of the material discussed the various definitions made by American
scholars, which revealed the changing scope and meaning of public administration.

Civil Service Reform Movement and Scientific Management

Historically speaking, the start of public administration study in the United States was
propelled by the civil service reform movement that swept America in the 1880s. During
this period, partisan politics and spoils system reigned over the bureaucracy, displacing
merit and qualifications as bases for recruitment and appointment which, consequently, led
to an ineffective and inefficient government. This was the context when Wilson called for
separating politics from administration so that government would be able to proceed with
its expected tasks.
The movement stimulated serious and concerted inquiry into the practice of public
administration and education and training for public service. A significant development in
the early years of administrative reform was the creation in 1906 of the New York Bureau
of Municipal Research. Founded and funded by civic leaders active in New York City
reform movement, the bureau conducted and publicized surveys of governmental agencies
and programs and trained persons for public service careers. Interest in public
administration as a field of study and practice spread across key cities in America. The
bureau became a model for other cities and universities which, subsequently, established
their own research programs and training schools (Nigro and Nigro, 1989).
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Scholarly work, notably those by Frank Goodnow and Leonard D. White, were
published and these contributed to a nascent literature on public administration.
Frank Goodnow in his book Politics and Administration: A Study in Government
(1900) espoused the functional distinction between politics and administration.
(Caiden, 1971). White wrote the first textbook in public administration
Introduction to the Study of Public Administration (1926). Its focus was the
structure of administrative organization and government management services such
as personnel and financial administration (Nigro and Nigro, 1989). This is
discussed further in the second part of Reyes material.

Frederick W. Taylor’s ideas in scientific management (you will know more about
this when you go to Module 4) or the “one best way” of carrying out a task greatly
influenced the focus of administrative studies. The studies concentrated on the
structure and processes of public agencies and on improving organizations,
procedures and the quality of the public civil servants. The emphasis on
organizational housekeeping was consistent with the demand of the times for
improved civil service.

New Focus and Trends

After World War II, a new understanding of public administration came into view.
Scholars recognized that there was much more to public administration than
governmental management processes and techniques. Public administration study
branched out to the analysis of organizations as social systems, focusing on
behavior and relationships of people in organizations. In the analysis of human
behavior, public administration applied the knowledge and insights of social
sciences like general psychology, social psychology, and anthropology.

One important consequence of the expansion of the concept of public

administration was the attention given to the relation between policy and
administration (politics of administration and role of the executive branch in the
political system) and decision making in government. The value judgment of
administrators, goal conflicts, relations with pressure groups and legislators became
a subject of administrative studies. (Nigro and Nigro, 1989) You will recall that
this topic was generally left out in the beginning. Can you explain why?

The emphasis on policy and administrative behavior of public officials would be

renewed when the New Public Administration movement emerged in the U.S. in
late 1960s. The movement, led by young scholars notably H. George
Frederickson, was a reaction to the irrelevance of the value-free stance of
traditional public administration to existing disparities in society. New Public
Administration called attention to the impact of public administration on society
and people. It emphasized the principle of social equity. We will discuss this
further in Module 5.

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AS A FIELD OF STUDY
Unit I: The Study and Practice of Public Administration
UP Open University PM 201

PARADIGMATIC ISSUES
The matter of definition is one of the provocative issues that accompanied the
development of the field. (Recall in Module 1 the discussion of the meaning of
public administration.) At the heart of the debate was the issue of defining the
parameters of the public administration as a distinct field of study. Some of the
questions raised in this regard concerned the focus and the locus of the study
(Golembiewski, 1977). The focus relates to the content or subject matter
(“what”) of the inquiry while the locus refers to the institutional location
(“where”) of what is being studied. To illustrate, the focus of public
administration study can refer to the internal management procedures, e.g.,
personnel, of the government, while the locus can refer to the executive branch
whose procedures are the subject of the study.

Part of the debate also concerned the issue of whether the study of public
administration covered the activities of the executive branch alone or it also
covered the legislature and judiciary. This issue may be said to have emanated
from the earlier premise of politics-administration dichotomy which made public
administration study concerned with the implementation or execution of public
laws and policies. Later on, the parameters were broadened with the inclusion of
the client-government relations and the larger society and environment as a
germane focus of public administration study.

The evolution of the field of public administration can also be examined in terms
of its theoretical and conceptual foundations. Determining what constitute the
science, principles, or techniques of administration served as a central issue in the
development of the field. This is discussed in the middle part of Reyes’ material.
Take note of the scholars who have contributed their ideas to the debate, the
counter critique to the principles of administration, and the publication of
literature on the topic.

Past scholars have analyzed the growth of public administration study. For
instance, Nicholas Henry formulated five paradigms that explain the development
of the field from 1900s to 1970s. (Henry’s paradigms are described in Reyes.)
Robert Golembiewski, another scholar, divided the development of public
administration thought into four phases with each phase dealing with a particular
analytical focus and locus. These are both cited in the Reyes material. The
original materials of these scholars are available in the learning centers. I suggest
that you try to read them, too.

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Unit I: The Study and Practice of Public Administration
PM 201 UP Open University

To sum up our discussion of public administration study, we can say that its scope
and meaning have been changing over time. Reyes cited that: (1) public
administration study expanded its coverage to include not only the executive
branch, its processes and activities, but also the legislative and judicial
departments; (2) the concerns of public administration study and practice have
grown to encompass not only the internal aspects of administration but also the
societal context and impact of government on the people that it serves; (3) the
term public administration has moved from its limited definition that refers only
to the operations and activities of government to one that has developed into a
distinct field of study. Today, public administration is understood as an academic
discipline, the activities, operations, and dynamics of government, and a
profession.

For additional discussion on the development of public administration thought in

the United States, please read the other article of Reyes (The Identity Crisis…)
assigned for this module. The issue of identity crisis that has besieged the field in
America was discussed here. The identity crisis relates to the problem of
definitional boundaries - what is the scope and nature of public administration;
whether it is a field by itself or part of political science; if it is separate from
political science, where does political science end and public administration
begin.

It also relates to the issue of normativism or the value premises of the field-“what
ought to be” or “what should be” in public administration. This suggests some
kind of standards that should be observed and practiced in the conduct of
government. These two dimensions of the identity crisis are discussed at some
length by Reyes.

As we move on, your understanding of the development of the field will be

further enhanced because this topic is touched upon, in one way or another, in the
other materials that we will be using for this course.

REFERENCES
Caiden, Gerald. “The Study of Public Administration” (cited in the above
supplementary readings)

Nigro, Felix and Lloyd Nigro. “What is Public Administration” in Nigro and
Nigro (eds.) Modern Public Administration, New York: Harper and Row,
Publishers, Inc., 1989.

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UP Open University PM 201

SAQ
1. Briefly describe the beginnings of a serious inquiry into public
administration.

2. Identify at least five leading scholars and their ideas or contributions to the
field.

3. Discuss the various themes and concerns that emerged in the course of the
development of the discipline.

4. What is meant by Public Administration as an eclectic field?

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ASAQ
1. It is instructive to distinguish the beginnings of study in public administration in
two different settings, that is, Europe and America, because they have quite
distinct historical context and took different routes and focus. Tracing the growth
of the study, as stated in above manner, will help put things in proper light.
If you discussed this in your answer, then you started well in tracing the roots of
the discipline. But this is just the initial phase of the evolution of the field of
public administration. In this module, we have focused on the field as it grew in
the United States. You might ask, why U.S.? Well, American public
administration strongly influenced Philippine Public Administration. The
impetus for establishing the formal study or discipline of public administration in
the country came from the U.S. (This is tackled in Module 3). As a
consequence of that, we have relied heavily on the ideas, concepts and methods
produced in the U.S., using them as materials and examples in teaching and
research. The reliance on American literature is nevertheless being
countervailed now by a fast growing literature written by Filipino scholars,
notably from the College of Public Administration, University of the Philippines.

2. Many scholars had a major impact on the development of public administration

study. Wilson was one of them. He had successfully focused attention on the
subject of administration with his call for distinction between administrative and
political tasks. But it wasn’t much after Leonard White published the first
textbook on public administration, Introduction to the Study of Public
Administration, in 1926, that Wilson’s contribution to the field would be
recognized. Frank Goodnow, considered the “father of American public
administration,” echoed Wilson’s views in his Politics and Administration: A
Study in Government (1900). In that book, he advanced the functional distinction
between politics and administration. The former meant the policies or
expressions of the state will and the latter meant the execution of these policies.
He believed that administrative functions could be made more efficient if they
could be depoliticized and removed from partisan politicians (Caiden, 1971).
What may be regarded as moves to bring into sharper focus the domain of
public administration were the subsequent publications on administrative
principles or “science of administration.” It was believed that certain principles
underly administration and these could be discovered and identified using
systematic methods. Among its proponents were Luther Gulick and Lyndall
Urwick, editors of Papers on the Science of Administration (1937) and William
F. Willoughby, author of The Principles of Administration (1927). Gulick and
Urwick coined and popularized the acronym POSDCORB which stood for the
managerial functions of planning, organizing, staffing, directing, coordinating,
reporting, and budgeting.

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3. One of the fundamental issues that characterized the growth of Public

Administration (PA) is the matter of defining its meaning. This issue raised
subsequent debates about its content and focus, the boundaries and
parameters. There was also the question whether public administration is a
science or art. A related issue is the identity crisis, though it came much
later. The crisis concerned whether PA is a field by itself or a subfield of
political science, which was its mother discipline, and the content, scope, and
boundaries of its study.

The politics-administration dichotomy was one of the burning issues that

accompanied the growth of the discipline. It is said that Wilson’s essay had
provoked this debate. Goodnow, was a strong advocate of the separation
of politics and administration. Another important theme in the development
of PA was the search for administrative principles or the science of
administration. Corollary to this episode is the counter-argument posed by
Simon who challenged the validity of administrative or scientific principles.
These are some of the themes and issues that accompanied the growth of
public administration study.

4. Public administration study as an eclectic field benefited from the concepts,

ideas, techniques, and methods of other disciplines. These included political
science, sociology, psychology, economics, and engineering. The study of
public organization, for instance, drew heavily from the sociological concept
of bureaucracy advanced by Weber, himself a sociologist. Understanding
and explaining human behavior in organizations drew from studies and
concepts in psychology. Political science, its mother discipline,
understandably had a major contribution to the PA discipline, not the least
of which is reference to government as the field’s institutional locus and
focus. Reyes discussed the eclectic character of PA in his article.

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Comment

All of us have different ways of expressing ourselves. So don’t be upset if the

construction of your response is different from mine. Your answer should, at
least, show that you were able:

For SAQ 1: To distinguish the European and American developments and identify
the focus of early studies.

For SAQ 2: To name the scholars and the ideas they have espoused. For example,
Woodrow Wilson was acknowledged as the first to raise the
possibility of studying administration and the separation of politics
from administration; Frank Goodnow was known to advocate the
functional distinction between politics and administration in his book,
Introduction to the Study of Public Administration, etc. You can cite
other scholars who have elevated public administration as a legitimate
field of study through their writings, e.g., Gulick and Urlick, Leonard
White, etc. The Reyes material will help you out here.

For SAQ 3: To cite the dominant concerns and issues that characterize the growth
of the discipline, e.g., the issues of politics-administration dichotomy,
definition, content, boundaries, identity crisis, etc. The Reyes material
“The Study of Public Administration in Perspective: A Passing Review
of the Development of the Discipline” will be useful in answering this
question.

For SAQ 4: To describe and cite examples that public administration has
benefited from the concepts and methods of other disciplines like
psychology , sociology, political science in its study and practices.

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AS A FIELD OF STUDY
Unit I: The Study and Practice of Public Administration
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ACTIVITY
On the blank chart below, summarize the chronology of PA growth by citing
the significant themes, developments, personalities, and their ideas. To help
you out with organizing your presentation, you can consider the format I
wrote below. It is similar to the matrix you made in Module 1. I have
likewise given two examples that you can follow.

Period/ Dominant Themes/Issues and Personalities

Year Developments
1887-1900s ∗ Separation of administration from Woodrow Wilson
politics
∗ Identification of techniques of
administration
∗ Civil service reform
1920-1926 ∗ The publication of Politics and Frank Goodnow; Leonard
Administration: A Study in White
Government and Introduction to
the Study of Public
Administration strengthened
academic inquiry in the field of
PA
∗ Politics-administration dichotomy

Comment

Don’t be obsessed with coming up with timelines strictly separate from each
other. It’s okay to have overlaps between periods. When applicable, it is useful
to identify dates associated with specific events and developments.
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3
Public Administration
in the Philippines

INTRODUCTION
In Modules 1 and 2, we studied the meaning of public administration and its
evolution as a field of study. In this module, we’ll be focusing on public
administration in the Philippines. The purpose of this module is to give you an
overview of the practice and study of public administration in the Philippines.

OBJECTIVES

After going through the module, you should be able to:

1. give an overview of the nature and scope of public administration in the
Philippines;
2. discuss the development of public administration study in the Philippines; and
3. explore the issues in the study and practice of public administration in the
country.

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READINGS

Bautista, Victoria. Kahulugan, Sakop at Kasaysayan ng Disiplina ng

Administrasyong Pampubliko ng Pilipinas. Quezon City: College of Public
Administration, University of the Philippines, 1990.

Cariño, Ledivina. “Contributions of the Perspective of Public Administration” in

Bautista, et al., (eds.), Introduction to Public Administration in the Philippines
(pp. 59-64). See Module 1.

Corpuz, Onofre. “Is There a Philippine Public Administration?” in Bautista, et

al., (eds.), Introduction to Public Administration in the Philippines, Quezon
City: College of Public Administration, U.P., 1993 (pp. 11-17).

De Guzman, Raul. “Is There a Philippine Public Administration?” in Bautista, et

al., (eds.), Introduction to Public Administration in the Philippines (pp. 3-10).

Endriga, Jose. “Stability and Change: The Civil Service in the Philippines” in
Bautista, et. al., (eds.), Introduction to Public Administration in the
Philippines (pp.426-446).

Ocampo, Romeo. “Toward a Review of Research and Knowledge in Philippine

Public Administration” in Bautista, et al., (eds.), Introduction to Public
Administration in the Philippines (pp.39-47).

Pilar, Nestor. “The Relevance of New PA in Philippine Public Administration” in

Bautista, et al., (eds.) Introduction to Public Administration in the Philippines
(pp.141-149).

Reyes, Danilo. “The Identity Crisis in Public Administration Revisited: Some

Definitional Issues and the Philippine Setting ” in Bautista, et al., (eds.),
Introduction to Public Administration in the Philippines (pp.18-38).

Reyes, Danilo. “Life Begins at Forty: An Inquiry on Administrative Theory in

the Philippines and the Structure of Scientific Revelations ” in Tapales, Pilar
and Romblon (eds.), Public Administration by the Year 2000: Looking Back
into the Future, Quezon City: College of Public Administration, University of
the Philippines, 1995 (pp.18-73).

Case Study “Utilized Computers in the Commission on Elections”

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OVERVIEW OF THE STUDY AND PRACTICE OF

PUBLIC ADMINISTRATION IN THE PHILIPPINES
The readings provide an encompassing view of the history, nature, scope and
issues of public administration practice and study in the Philippines. As you go
through your readings, take note of the following issues/concerns:
1. The context under which the PA discipline was introduced in the country
2. American influence on Philippine public administration
3. Indigenization of the discipline
4. Contemporary meaning of “public” as interpreted by Filipino scholars
5. Meaning of Development Administration and New Public Administration
concepts and their relevance to the Philippine context
6. Factors that explain the changing emphasis in PA study by Filipino scholars

From a historical point of view, the article, “Stability and Change: The Civil
Service in the Philippines”, written by Endriga provides an excellent and concise
background on the evolution and nature of our bureaucracy. I suggest that you
read this first so that you will have a perspective of the Philippine bureaucracy.
In your readings, you will often encounter the term bureaucracy, sometimes used
interchangeably with public administration and government, at other times
specifically singled out as an instrument of public administration or government.

The articles by De Guzman and Corpuz discuss public administration in action.

The first examines the structural and behavioral characteristics of public
bureaucracies in the Philippines. His conclusion that public administration is
“inevitably ethnocentric or culture-bound” and that each country has its own
distinctive patterns of public administration echoes our discussion in Module 1.
This idea was also discussed by Waldo, which was part of your supplementary
readings in Module 1.

In the Corpuz article, the author takes a critical look at the quality of Philippine
public administration. Its “unforgiving mirror of frailties” makes public
administration in the country, he concludes, characteristically or “faithfully
Filipino.” Education, politics and government, which he decried as lacking
continuity with our past, have a pervasive role in shaping the quality of public
administration in the country.

Do you think that the authors’ observations about the ills and weaknesses of
the bureaucracy are still happening today?

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ACTIVITY 1
Read “ Unutilized Computers in the Commission on Elections.” It’s a case
study on how COMELEC, a government agency, utilized its financial and
material resources. There is a short concluding summary that assesses the
situation. But before you proceed to that section, here are some questions
that I’d like you to think about.
1. Was the project successful? Why?
2. What issues/problems affected the implementation of the project?
3. What suggestions can you give to improve the situation?
4. Given the objective of improving the electoral process, will you suggest
the continuation of the project? Why?

COMMENT
In this country where the integrity of electoral process is always questioned,
efforts to promote clean, honest, and orderly elections are, thus, welcome. In the
small case study you analyzed, the computerization of the voters’ list was meant
to improve the administration of elections in the country. But this was not
achieved. Several factors could explain this and these are identified in the
concluding part of the case. The case study has shown us examples of
weaknesses, e.g., lack of planning in the way government, in this case the
COMELEC, carries out its activities. The project was affected also by the
changes in management leadership.

We probably can say that good intentions in government are not wanting, but the
road between intentions and means is often not that clear nor smooth. We have
heard so many stories about well-intentioned government programs and projects
that failed. The causes of failure may be attributed to factors internal to the
project and its implementors - these can probably be managed and controlled, or
they can be outside of the influence of the administrators or even beyond their
control, like a force majeure. In any case, political support of affected key
stakeholders and sectors is often crucial to the success of a policy or program.

At the end of the day, we probably will ask ourselves if modernization of the
electoral process will really solve our problems with elections.

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The formal introduction of the academic discipline in the country can be traced to
the establishment of the Institute, now College, of Public Administration in the
University of the Philippines in 1952 that offered degree programs, conducted
training and executive programs for civil servants, and undertook research
activities and consultancies mostly for the different organizations of the national
government. Since then, other universities and colleges have opened their
respective degree programs in public administration. Today, these academic
institutions have grouped themselves into the Association of Schools for Public
Administration in the Philippines. For an extended discussion on the
development of public administration study in the Philippines, read “Life Begins
at Forty: An Inquiry on Administrative Theory in the Philippines and the
Structure of Scientific Revelations “ by Danilo Reyes and the article written by
Bautista.

It’s also instructive to examine the routes and thrusts that public administration
study in the country has taken. You will find this in the Ocampo material. It
tackles the advancement of public administration knowledge in the country by
focusing on the researches undertaken by the College of Public Administration.

The identity crisis that had beset American Public Administration has, according
to Reyes, a different version in the Philippines. In the United States, the crisis
was a “question of determining the scope, nature, and boundaries of the field,
including the methods of studying and teaching it.” In the Philippines, the author
argues that the crisis revolved on defining public administration that is rooted
to local conditions and development aspirations of the Filipinos as a people and
nation. You will notice that this concern for relevance appears in the different
stages of the discipline’s growth. He identified Development Administration as a
more appropriate model and perspective to use in developing countries like the
Philippines. Another model of public administration that is regarded as relevant
to the country is New Public Administration. This is discussed by Pilar. Do you
agree with the contentions of the authors? Do you find congruence and
differences in the ideas propounded by the models? In present times, which
one do you think is more meaningful to use?

In the Cariño reading, take special note of the significance of the dimensions of
public administration to Philippine setting specially the role of the people and the
issue of indigenization.

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SAQ
1. What features or characteristics of public administration in the country are
described in the articles?

2. Briefly give an overview of important events in the development of public

administration study in the Philippines.

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ASAQ
1. De Guzman described Philippine public administration according to its structural and
behavioral characteristics. Our government bureaucracy is hierarchical, meaning
there are layers of authority that have supervising functions over the subordinate
levels. It is organized according to functions or specialization. Hence, we have
various departments and offices that perform the multiple functions of government.
We use merit and competence as bases for recruitment and promotion of staff. The
Civil Service Commission ensures that these civil service rules are observed by all
concerned. There is a system of rules and procedures that govern the actions and
decisions of public servants. There are laws, agency manuals, and the Administrative
Code as well as court decisions that serve as guides for public officials and
employees to follow. These features are common to public bureaucracies all over the
world. These are the same characteristics of Weber’s model of bureaucracy.

Our cultural values and traditions find their way in the decisions and behavior of
public officials as demonstrated by the case of the “50-50” agreement which was
cited in De Guzman material. Philippine public administration can further be
described according to the terms expressed by Corpuz. In broad terms, public
administration in the country is in a sorry state as evidenced by poor service delivery,
corruption, partisan interests, etc. From the Endriga reading, it can be discerned that
the character of the government bureaucracy or civil service changed under different
regimes. For instance, during the Spanish colonial administration, there were great
tendencies toward corruption, which up to present times continue to bedevil our
government. The bureaucracy was also highly centralized, the powers being reposed
in the governor-general and the central offices being concentrated in Manila.

2. The formal introduction of public administration study in the country can be traced to
the establishment of the Institute, now College, of Public Administration in the
University of the Philippines in 1952 via an agreement between U.P. and the
University of Michigan. The Institute was an offshoot of the Bell Mission’s
recommendation to improve the Philippine government and conditions in the
country. Several years after we became a republic, the U.S. government sent the
Bell Mission to assess the political, economic, and social conditions in the country.
It found the country in bad shape and promptly blamed the bureaucracy as the cause
of the country’s slow progress. Accordingly, the Institute was established first as a
training ground for public servants and as a research arm. Shortly thereafter,
academic degrees were offered.

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It can be said that the United States had a great influence on the content and
direction of the Institute’s programs, including the training of its faculty and staff,
during the early years of the Institute. For instance, public administration study in
the country followed the same course that American public administration study
pursued, in that it focused on the internal aspects of administration and
emphasized the values of efficiency, economy, and effectiveness. This
orientation is reflected in the Institute’s curricula, training programs ,
consultancies, and researches. Sired by a foreign father, the discipline
nevertheless had its own self-searching process to make it more relevant and
responsive to Philippine realities. The matter of indigenizing the field and
redefining the meaning of public is part and parcel of the process of evolving
what may perhaps be labeled as Filipino public administration.

Comment
What I have given here is a broad canvass of the development of public
administration study in the Philippines. I trust that you can elaborate on this and
provide the more specific details of its growth. Reyes and Bautista are
particularly useful here for they provide the history of Philippine public
administration study. In your answer, you can likewise cite the concerns of the
field like, for example, the need to make it relevant to Philippine context, in other
words, indigenizing it. You can refer to Bautista, Cariño and De Guzman to
expand your answer on the item of indigenization. You can also amplify on the
extent of influence of American public administration study on Philippine Public
Administration, e.g., literature and PA concepts. The Reyes and Pilar materials
highlight the point that foreign concepts such as development administration and
new public administration can be adapted to our needs and conditions.

ASSIGNMENT 1
Please refer to your course guide for
Assignment 1.

33 MODULE 3: PUBLIC ADMINISTRATION IN THE PHILIPPINES

Unit I: The Study and Practice of Public Administration
Unit II
Theories of Administration
PM 201 UP Open University

4
Organization Theory

INTRODUCTION
In public administration, we are interested in how public organizations or the
government bureaucracy work and how we can further improve them. Before we can
do that, we need some handles to help us understand, analyze and explain how these
public organizations function and, when necessary, to prescribe what we think are
appropriate interventions to improve performance. These handles are found in the
organization or administrative theory (we’ll use these terms interchangeably) which
we will discuss here in Module 4. Organization theory is generally considered the
conceptual or theoretical foundation of public administration study.
As an eclectic field, Public Administration drew much of its theoretical bases from
various disciplines. As Caiden once said, there are no distinctive schools of public
administration theory; theoretical work in public administration takes place within
the general field of administration (Caiden: 1971).

OBJECTIVES

When you have worked through the module, you will be able to:
1. trace the beginnings of modern administrative thought;
2. discuss the three major schools of administrative theory and how they evolved;
3. discuss the major contributions and limitations of each school;
4. determine what concepts and ideas are applied in your workplace;
5. identify the leading personalities and their contributions to organization
theory;
6. identify the disciplines from which public administration drew its concepts in
administration; and
7. formulate your own synthesis of the three schools.
MODULE 4: ORGANIZATION THEORY 34
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READINGS

For this module, your readings are the following:

Caoili, Manuel. "Some Notes on the Origins of Modern Management" in Bautista,

et. al., (eds.), Introduction to Public Administration in the Philippines: A
Reader, (pp. 103-118).

Dubsky, Roman. "The Classical Theories of Management: A Critical Appraisal"

(mimeo)

SUPPLEMENTARY READINGS
Nigro, Felix and Lloyd Nigro. “Organization Theory” in Nigro and Nigro, (eds.),
Modern Public Administration, New York: Harper and Row Publishers,
1989.

Caiden Gerald. "Administrative Theory" in Gerald Caiden, (ed.), The Dynamics

of Public Administration: Guidelines to Current Transformations in Theory
and Practice, Minsdale, Illinois: The Dryden Press, 1971.

The Caoili material serves as a background reading for our topic. I suggest that
you read it first for it will help you put in proper perspective the emergence and
development of modern management thought.

From the reading, you will get a sweeping view of the beginnings of modern
management thought. Caoili traced the origins of management as far back as the
ancient civilizations and in Great Britain and the United States in modern times,
particularly through the Industrial Revolution. You can say that it was during and
around the industrial era that explosion of management ideas began to occur in
both sides of the world. Paying special attention to the historical context is
important for it shows us how management practice had influenced the
development of administrative theory.

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In Module 2, we have mentioned the link between theory and practice of

administration. Here, as we discuss the various schools of management ideas, you
will note once more the close interplay between them. It is no more vivid than
when management practitioners like Taylor, Fayol, and Barnard wrote about their
own work experiences which eventually stimulated further theoretical inputs
from various scholars and theorists. You will be familiar with these people and
their ideas subsequently.

Dubsky, on the other hand, discussed the three streams of thoughts of classical
organization theory, namely, scientific management, administrative management
and bureaucratic model. We’ll elaborate on them here. He also presented a
critique of the theory as well as its contributions to organization and management.

Now, let’s discuss the various schools of thought that form the foundations of
organization theory. I have described neoclassical and modern theory at length
here because they are not covered by the Caoili and Dubsky materials. I have
used the supplementary readings as main references to explain the neoclassical
and modern theory. When you go to the learning centers, you can read them to
further enhance your understanding.

MODELS OF ORGANIZATION THEORY

Different authors have different ways of categorizing the theories of
administration. For instance, Koontz identified six schools of administrative
theory : (1) administrative-process; (2) empirical school; (3)
human-behavior school; (4) social-system school; (5) decision-making
school; and (6) mathematics school (Caiden, 1971). Caiden reduced these into
two major schools: (a) reductionist administrative-process school that combined
the empirical, decision-making and mathematics schools, and (b) a holistic
administrative-system school that put together human-behavior and social-
systems schools (Caiden, 1971).

Nigro and Nigro, on the other hand, classified organization theory according to:
(1) bureaucratic model, (2) scientific management, (3) principles of
administration, (4) human relations, and (5) integrative framework or holistic
approach. The last category subsumes under it three varieties: (a) decision-
making; (b) industrial humanism, and (c) open-systems framework (Nigro and
Nigro, 1989).

To simplify, we’ll use the commonly employed way of categorizing organization

theory: (1) classical, (2) neoclassical or human relations, and (3) integration
theory or modern theory. You’ll note that this hews closely to Nigro’s
classification. Under each group are various streams of ideas which encompass
those mentioned above.

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CLASSICAL THEORY
Classical theories, so-called because they are timeless and well-established, include
the scientific management, administrative management, and the bureaucratic model.
The conceptual foundations of traditional public administration are founded on these
three theories.

Now, let’s discuss briefly each of the classical theories.

Scientific management covers a number of ideas about how work at the industrial
shop or factory can be carried out with utmost efficiency and minimum waste in
human and material resources. Its principal proponent, also regarded as father of
scientific management in the United States, was Frederick W. Taylor (1856-1915). In
Great Britain, Robert Owen (1771-1858) and Charles Babbage (1792-1871) were the
early advocates of applying scientific methods to work processes in the industrial
factories. This is mentioned in the Caoili material. You can say that these two
persons were the forerunners of scientific management.

In the United States, Taylor led the scientific management movement. Let me just
give a bit of background here.

Taylor was an industrial engineer with a long experience in supervising work at the
shop level in the United States during the turn of the industrialization era. He
observed that workers were not being managed by their employers. Left to their own
devices, the workers decided by themselves the means by which they accomplish
their work. They relied on rule-of-thumb methods that they developed over years of
experience in their job (Nigro, 1989).

Taylor may have been appalled at the amount of waste that accompanied such kind of
work style. He argued that there were scientific ways of doing one’s work and that
these methods could be identified and applied. His studies of actual work situations
at the industrial shop and individual worker, e.g., observing and timing how an
exceptional employee performed a particular task, in search of “the one best way” to
perform a task supported his advocacy. He contended that by subscribing to the best
way of carrying out a task, efficiency could be achieved and waste of resources could
be minimized (Kernaghan and Siegel, 1991).

Taylor’s investigations also signaled the beginning of time and motion studies. The
scientific approach to work management or “one best way” would be the enduring
contribution of scientific management to organization theory. Scientific management
emphasized, too, the importance of a managerial cadre that would supervise the work
in the factory, clear division of duties between management and labor (e.g.,
management will determine and assign workload; labor is expected to provide the
skills and energy to carry it out), selecting through scientific means the best person for
a job, training the staff, and monetary incentives to reward good performance or
increased productivity (Nigro, 1989; Kernaghan and Siegel, 1991).

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In the Dubsky reading, these contributions are mentioned as time and motion
study, systems of incentives, reorganization of supervision, division of tasks,
separating planning from doing, and functional foremanship.

Taylor’s ideas are nearly a century old now. Do you see any of his ideas being
used in your own agency or workplace? Keep your answers at the back of
your mind. You’ll be needing them when you do Activity 1.

According to Nigro, the influence of scientific management on public

administration was its contribution to the wide acceptance of efficiency as a
primary objective of administration. The values and methods it espoused were
also compatible with the government reforms being sought during that time such
as the establishment of merit systems, centralization of administrative/executive
authority and accountability, and removal of partisan politics from administration
(Nigro, 1989).

SAQ 1
Quickly describe the “one best way” principle.

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ASAQ 1
The “one best way” principle means that there’s always a most efficient,
economical, and effective way or method of carrying out a task or job. The
costs of doing things are kept at minimum while the results or benefits are
maximized.

Administrative management, also called principles of management, was

concerned with developing a set of universal principles that can be applied to any
type and all levels of the organization. Unlike scientific management which
focused on the lower level of organization, administrative management
emphasized the functions of management and the structuring of organization.
Foremost among its exponent was Henry Fayol, a French mining engineer and
industrial executive, who believed that administration was a skill that could be
learned and mastered once its underlying principles were understood and
developed into a general theory of administration. Administration, according to
Fayol, was a process that must be carried out at all levels of the organization or
administrative system. The tasks of administration were planning, organizing,
commanding, coordinating, and controlling (Nigro, 1989; Stoner, 1978). These
tasks are explained by Dubsky.

Based on his executive experience, Fayol identified 14 principles of

administration that he most frequently applied. According to him, these were
neither rigid nor to be applied unconditionally, for nothing in administration is so
absolute and inflexible (Stoner, 1987). How and when to use them depends on
the executive’s assessment of the situation. This line of reasoning would,
however, become its own Achilles’ tendon when its claim to being a “science”
would later be attacked. We’ll get back to this when we tackle the criticisms
against it.

The 14 principles of administration are:

• division of labor - work is distributed among different employees; greater

efficiency is achieved if people become more specialized in their jobs

• authority - formal authority gives superiors the right to command people to

get things done; authority emanates from the position one is holding

• discipline - employees should respect the policies and rules of the

organization; good leadership at all levels of the organization, fair agreements
(for example, provision for salary increases), and judicious application of
penalty for violations contribute to discipline
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• unity of command - an employee should receive instructions only from one

person or from his or her superior to prevent conflict and confusion

• unity of direction - organizational functions that have the same objective

should be directed by only one supervisor

• subordination of individual interest to general interest - the good or interest

of the organization should prevail over individual interest; employee interest
should not supersede the interest of the organization

• remuneration of employee - payment for work done should be fair to both

employees and employers

• centralization - management should have the final or ultimate say in the

organization but it should also be able to decentralize adequate amount of
decisionmaking powers or authority to its subordinates to enable them to
perform their functions well

• scalar chain or hierarchy - organization is structured along a line of

authority that starts from the top then down to the lowest level of the
organization; the topmost part wields the ultimate power and responsibility in
the organization; hierarchy is usually depicted by the organizational chart

• order - people and materials should be present in the right places and at the
right time (and perhaps in the right amount?); people should be matched to the
right jobs

• equity - supervisors should be friendly and fair to their subordinates

• stability of tenure of personnel - security of tenure among the staff provides

continuity and efficiency in operations; high employee turnover rate disrupts
work and consequently adversely affects the effective functioning of the
organization

• initiative - subordinates should be given a certain amount of freedom to

devise plans and carry them out even when some plans do not turn out well

• esprit de corps - team or group spirit promotes organizational unity and

should thus be encouraged (Stoner, 1987).

In your opinion, which of the 14 principles are applied in public sector

organizations?

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If you ask me, all of them! And I suppose that most of them are also practiced in the
private sector. Let me add though that in practice, some of these principles may not
strictly be observed. For example, we hear stories of employees complaining about
having a de facto boss - e.g., the secretary or assistant to the superior authority acts
like they’re the boss simply because of their close association with the latter. It’s
also possible that some concepts are modified to adapt to circumstances and needs.
In the Philippines, for instance, centralization of authority (in national government)
was significantly altered with the passage of the Local Government Code. New
powers and functions that formerly were exercised by the national government were
transferred or devolved to local governments. In Reinventing Government written
by Osborne and Gaebler (we will tackle this topic in Module 6), the authors proposed
decentralizing authority to the field and frontline workers to make governments more
responsive to people’s needs.

I’d like to add further that in the public sector, subordination of personal interest to
public interest is very relevant. What do you think about this?

While Fayol worked on his ideas in France, concurrent efforts were also being
carried out in the United States along the same thinking. Gulick and Urlick, whom
we have mentioned in Module 2, edited the Papers on the Science of Administration
which Nigro said could perhaps be the most influential work on the principles of
administration (Nigro, 1989).

According to Nigro, Gulick built upon Fayol’s five elements of administration’s

tasks the famous acronym POSDCORB which stands for the seven administrative
functions:
• Planning - involves identifying the activities to be carried out and the means to
implement them with the purpose of accomplishing the goals of the organization
• Organizing - means setting up the formal structure of authority which becomes
the basis for subdividing the work, e.g., departments, bureaus, agencies, offices,
etc., and coordinating them
• Staffing - refers to the whole gamut of personnel function from recruitment to
training of staff to maintaining favorable work environment
• Directing - is a continuous process of leading the organization by making
decisions and executing them through policies and procedures
• Coordinating - involves interrelating and meshing the various parts or elements
of the work process
• Reporting - refers to the process and techniques of keeping superiors informed
and updated on the progress of work
• Budgeting - refers to the tasks of fiscal planning, accounting and control (Nigro,
1989).

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Dubsky mentioned six classical concepts that have influenced contemporary

management thought and practice. Can you identify them?

What was the impact of the principles school on public administration? It is said
that the principles school is a response to the Wilsonian call for a “science of
administration.” It offered practical prescriptions to organization and
management. It was most influential in American public administration during
the period, 1930-1950, when the administrative reform movement was strong.
The administrative management principles found their way in the structural
reforms being instituted in many agencies during that period. Its influence on
public administration practice and academic curricula is apparent in the way the
administrative role, following the POSDCORB functions, is defined (Nigro,
1989).

Administrative management was criticized heavily for its lack of scientific

validity and methods. Herbert A. Simon, in his Proverbs of Administration,
argued that for every principle proposed, there was a counter principle that
contradicted its validity; many of the principles were mutually contradictory. For
instance, the principle of narrow span of control contravened the principle of
keeping the number of supervisory levels at a minimum. The principles were also
attacked for its lack of systematic methods. According to this criticism, the
principles were derived from observations, personal experiences, and
commonsense conclusions without a valid theoretical framework to explain them
(Nigro, 1989).

SAQ 2
Differentiate administrative management from scientific management.

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ASAQ 2
In a nutshell, scientific management was concerned with determining
scientifically the best methods or techniques of carrying out a task and
selecting, training, and motivating employees. It focused on the workshop
level and was concerned with increasing the productivity of workers and the
shop or factory. Administrative management focused on the overall
management of organization. It was concerned with developing a set of
management principles which managers can apply as they perform the tasks
of planning, organizing, commanding, coordinating, and controlling.

Now, what about the bureaucratic model?

The bureaucratic model is derived from the construct of the ideal bureaucracy of
Max Weber (1864-1920). Weber was a German sociologist who systematically
studied various forms of social organizations in Western and Eastern societies. In
today’s parlance, bureaucracy is usually thought of with pejorative meaning like
red tape, slow, inept, etc. But based on Weber’s study, the bureaucracy is the
most efficient form of organization for administrative purposes. The main
characteristics of the ideal bureaucracy, also called rational-legal bureaucracy are:
1. hierarchy
2. division of labor
3. formally written rules and procedures
4. impersonality
5. neutrality

These and other characteristics are discussed in the Dubsky material.

The three theories have commonalities. All of them focus on the organization and
internal structure. Very little regard is given to the worker or employee within the
organization as persons; when they do, it’s usually in terms of how people can
help accomplish organizational goals in the most efficient manner. All of them
emphasize the value of efficiency, effectiveness, and economy in carrying out
administrative tasks. All are concerned with productivity that should be attained
at least cost and human efforts.

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When you read the portion on criticisms against the classical theory in the
Dubsky material, you will also get to understand more the main concepts and
ideas of each theory. It’s quite easy to see because Dubsky structured his
discussion around them.

One criticism against classical theory concerned its view of the worker.

SAQ 3
Derive the concept of man in the classical theory of administration.

incentive system, he will produce more to earn more.

motivated principally by economic rewards. Thus, under the piece-rate
economic benefits when given a choice. He is driven by self-interest and
rational-economic person in the sense that he will seek to maximize his
primary role in the organization is to help increase its productivity. He is a
Man is seen as an organizational appendage, a cog in the machine whose

ASAQ 3

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These points are elaborated on by Dubsky.

The classical school received its share of criticisms both for its practical and
theoretical inadequacy. Yet many classical concepts have remained important
today. Hierarchy, initiative, “one best way,” unity of direction, stability, and
training of staff and others continue to be used in public and private
organizations. The modern assembly line in today’s factories is an excellent
example of the enduring contribution of classical theory to management.

Now that were through discussing the classical theory, I think you’re ready for
this SAQ. This is an easy one. You can very quickly answer it in less than a
minute.

SAQ 4
Give five classical concepts of administration.

5. Rules
4. One best way
3. Division of labor
2. Hierarchy
1. Unity of command
Some examples that you can cite are:

ASAQ 4

Surely, you can identify more concepts.

Now, how do you like the idea of having a coffee break
before we go to the next topic?

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NEOCLASSICAL THEORY
Before starting on a new topic, let’s review a bit by way of this SAQ.

SAQ 5
On what theories of administration is the classical public administration
based?

model, and administrative management

Scientific management, bureaucratic
ASAQ 5

Now, let’s turn to the neoclassical theory. Neoclassical theory is commonly

referred to as the human relations or human behavior school. It’s an attempt to
improve on the classical concepts. It prevailed in the late 1920s through the
1930s. Neoclassical public administration derived its concepts from this school.

From the term itself, you can discern a shift from the mechanical view of
organization in the classical theory to a more humanistic perspective. Human
relations theory looked at organizations as a social system consisting of
interpersonal relationships. It focused on the people and the dynamics of human
behavior in organizations - how people interact with one another, how they
behave in their workplaces, their feelings, motivations, and aspirations.

Mary Parker Follett (1868-1933) was one of the first psychologists who elevated
the aspect of human nature in organization. She lectured widely in the United
States on the importance of the informal system and exercising executive
leadership rather than wielding power to motivate workers (Kernaghan and
Siegel, 1991).

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But the human dimension didn’t receive earnest attention until the advent of the
Hawthorne experiments, so-called because these were carried out in the
Hawthorne plant of the Western Electric Company. The Hawthorne series of
experiments, conducted in the late 1920s to the 1930s by Elton Mayo and his
associates, investigated the relationship of different work conditions with
employee productivity.

One experiment involved changing the lighting conditions of a select group of

women workers. They were set apart from the rest of the workers. Mayo and his
group expected that under poor lighting, the productivity of the workers would go
down. No matter the degree of lighting, employee productivity remained high.

In another experiment, following Taylor’s assumption about mutuality of

economic interests between employer and employee, the male workers were
expected to increase their work productivity when the piece-rate incentive system
was introduced. Contrary to expectations, the workers did not raise their output.
They set among themselves a certain daily output which they considered was
reasonable and fair. It was found that the workers feared being displaced from
their jobs or their wages reduced if they increased their output. Even if they were
assured that this would not happen, the workers’ productivity did not increase.

The Hawthorne researchers established the informal group as a major explanation

of why the workers behaved as they did. They concluded that informal work
groups - which stood as the workers’ anchor of security and belongingness in the
workplace - have greater influence on employee productivity rather than
management demands. In the experiment involving the men, the workers were
obliged to adhere to their group norms, such as not being a rate-buster by
producing too much or squealing on group members, if they were to continue
enjoying their status and position in the informal group. In the women’s case, the
female workers experienced a sense of importance when they were chosen by
management for the study. This boosted their morale and motivated them to work
harder and produce more.

A significant contribution to the human relations movement came from Chester

Barnard (1886-1961), former president of the New Jersey Bell Company and
author of The Functions of the Executive (1938). Barnard considered the
organization as a cooperative system whereby workers make contributions to it
and management provide inducements to encourage workers to contribute to the
organization. Workers’ contributions are their efforts. Inducements include
economic or material incentives like money and comfortable working conditions.

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Barnard believed that social and psychological incentives like prestige, pride, and
loyalty were more important than economic considerations. In this regard,
Barnard argued that the informal group was an important component in the formal
structure because it caters to the social and psychological needs of its members. It
fosters social integration. Informal structures, thus, fulfill a certain positive role in
organization. It can likewise work against organization. It is management
responsibility to tap that role for the benefit of the formal organization (Nigro,
1989; Kernaghan and Siegel, 1991).

On the side of management, it can offer social and psychological inducements like
employee participation in making decisions that affect them, allowing people with
similar values and attitudes to work together, matching the workers’ working
conditions with their work habits, methods, and attitudes.

Human relations movement had its share of criticisms. It is said that the human
relations approach was management-oriented and paternalistic. Management
could use it to manipulate the informal groups to behave in a manner that would
protect and promote the organization’s interest. As a theory, it could not
adequately explain many aspects of organizational behavior and performance
(Nigro, 1989).

Nevertheless, human relations had significantly affected public administration

theory. Under the classical public administration, administrative organization was
understood purely in terms of structural aspects of organization, for example,
division of labor and hierarchy. Problems were analyzed and management
interventions identified based on this perspective. By injecting the human
perspective, the human relations movement has focused attention to people within
organization as an equally important administrative and managerial concern.

SAQ 6
Can you derive the model of man in human relations theory?

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ASAQ 6
Man is not merely a technical part in the overall design of organization.
He is not an automaton that just goes about producing what management
expects him to. He is a social being who has inner needs and motivations
that must be met. He is a thinking, feeling person who must be treated by
management in the most humane manner possible.

INTEGRATIVE OR MODERN ORGANIZATION

THEORY
Classical theory focused on the formal organization while neoclassical
emphasized the people aspect or informal group in organizations. Subsequent
organization studies tried to explain and understand organizational phenomena in
a more holistic method, integrating the classical approach with the social-
psychological perspective of human relations. This represents the modern public
administration. Three streams of thoughts in modern public administration are:
(1) decision-making theory; (2) industrial humanism; and (3) open-systems
theory. The contingency approach is also considered as integrative theory. We
will discuss this last.

Let’s look at each of them. By the way, I have used the Nigro and Caiden
supplementary readings as references for our discussion.

Decision-Making Theory

One way to reconcile the classical model with the human relations perspective
(or rational and non-rational) was to focus on the decision-making process in the
organization. Among its proponents, Herbert Simon had been the most influential.

In his book, Administrative Behavior (1947), Simon argued that complete

rationality in administrative decision-making as maintained by the classical model
was not possible. According to him, complete agreement on goals, access to all
needed information and complete capacity to analyze them, full knowledge of
courses of action and their consequences - all of these are assumed to be present
in the classical model of rational decision-making - are not descriptive of the real
world (Nigro, 1989).

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Simon proposed an alternative model of decision-making that admits of limited or

bounded rationality. It is not so much that rationality is absent but that it is
circumscribed by certain organizational and human limitations, such as those
mentioned above. In this model, people are willing to accept satisficing
decisions. These are decisions that accomplish their main goals. One can still be
rational despite certain limitations.

SAQ 7
Briefly explain the meaning of bounded rationality and satisficing decision.

that optimizes or maximizes.

searching (which will likely take more time and be more expensive) for one
satisfice, their goal or need, rather than go to extensive length of
Given the limitations, people choose decisions that will sufficiently meet, or
decision they can within the constraints of limited information and ability.
Bounded rationality means means that people make the most logical

ASAQ 7

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You may ask: how does this model harmonize the rational component of the
classical theory and the nonrational aspect of human behavioralism? How can
organizations maintain rationality and at the same time accommodate the
individuality of people within the organization?

In general, people in organization make decisions that enable them to achieve

their personal goals as well as those of the organization. Within the
organizational context and terms, individuals can make rational decisions. For
instance, people join and stay with organizations on the basis of what they think is
a favorable exchange between them and the organization. They accept the
inducements offered by the organization. In return, they allow the organization to
influence their behavior particularly in areas where administrative decision-
making is involved. The formal structures and processes within the organization
set the boundaries and terms for administrative decision-making.

In summary, decision-making school has proposed a framework that explains

organizational behavior in a holistic way. It has also focused attention of theorists
to decision-making and all its concomitant relationships with other parts of the
organization.

Industrial Humanism

Further contribution to organization theory came from psychology. Social and

industrial psychologists who studied the impact of organization on the socio-
psychological being of workers found that certain aspects of the formal structure,
for example, task specialization, alienated and demotivated the workers which,
consequently, adversely affected their performance.

The contributions of psychology to organization theory are suggested in the

recommendations that social and psychological concepts like human needs and
motivations should be taken into consideration in the overall appreciation of
organization. Job design, organization structure, management functions, and
practically all dimensions of the organization could affect employee
performance. These deserve serious study. Among the prominent names who
have advocated this theory were Douglas McGregor, Chris Argyris, Abraham
Maslow, and Rensis Likert. All of them invariably worked on theories of
motivation. Maslow advanced the concept of hierarchy of needs: physiological,
safety, belongingness and love, esteem, and self-actualization. This theory
suggests that human motivation moves in a succession of needs starting from the
most basic (physiological) to the highest degree (self-actualization). As a person
attains the first level, he will strive to meet the next level of needs.

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McGregor worked on managerial attitudes towards their employees and came up

with Theory X and Theory Y. Under this theory, employees behave in the
manner that their supervisors expect them to. Theory X managers have negative
assumptions about their employees and Theory Y managers regard their
employees in a more positive light.

Examples of the views of the first type are: people have inherent dislike of work
and will avoid it whenever they can; because they dislike work, they have to be
coerced, threatened, etc. to make them work; and most people prefer to be
directed, avoid responsibility, are not ambitious, and desire security above all.
Theory Y managers, on the other hand, assume that work is as natural as play or
rest and that people do not inherently dislike work, employees have initiative
and motivation to achieve the goals of the organization, etc.

Open-Systems Theory

Let’s first clarify the meaning of the social system approach. The social system
approach or perspective considers the organization as consisting of interrelated
and interdependent parts or subsystems. These parts include the social and
psychological, technology, structure, and overall management. Any change in
any part of the organization has concomitant effect on the other parts. For
instance, if you introduces new technology in the organization, it potentially will
induce behavioral and attitudinal changes in the staff. Some may welcome the
change in work processes, others will resist the change and stick to what they
have been used to. Management is then expected to make the proper response to
these reactions to maintain harmony and, ultimately, achieve the organization’s
goals.

Organizations are viewed as open social systems because they continuously relate
or transact with their environment. They receive inputs from it. These inputs
such as human and material resources are essential to their operation and success.
This quality injects dynamism in the organization.

Under the open systems perspective, organizations are dynamic and have the
capacity to make and adjust to internal changes and respond to the changing
conditions in the environment where they are operating. Its relationship with the
outside world is not unidirectional. It exports its products and services to the
environment which, in turn, affect the organizations. They may be in constant
flux in response to internal and external forces, but they do attain stability and
equilibrium through a continuous process of adaptation and establishment of
regular patterns of activities that enable them to get on with their daily tasks. This
state of equilibrium allows the organization to operate and grow.

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54 MODULE 4: ORGANIZATION THEORY
ASAQ 8
The classical model focused on the organization itself and concentrated on
the internal parts and processes. This follows very much its mechanistic
view of organization. You can call the classical model as a closed-system
view. Human relations had the systems view it was limited to socio-
psychological dimension of the organization; the interdependency of its
parts and relation to the external environs were not taken into account. In
open-system theory, organizations are viewed as composed of interrelated
and interdependent parts. It looks at the interrelations of these parts or
subsystems and the relations of the organization to its environment.
of organizations?
Can you explain why the open system view departs from the earlier models
SAQ 8
UP Open University PM 201
UP Open University PM 201

Contingency Approach

The contingency approach is also an attempt to integrate the various schools of

management ideas. It proposes that no single technique or method is applicable to
all situations. That is, a particular method may successfully work in one situation
but it does not necessarily mean that it will be effective in other situations. The
main thesis of the contingency approach is that administrators or managers have
to identify the best solution or strategy that is most suitable in a given situation.
This suggests that administrators must have an understanding of the various
factors, e.g., resources, policies, organizational structure, technology, attitude and
morale of employees, etc., that are at play in a particular organization and
circumstance and be able to determine what will work best in each case (Stoner,
1987). For instance, giving financial incentives to increase employee productivity
may work for those who are unable to make both ends meet. It may not work,
however, with employees whose need for a more fulfilling and meaningful work
is greater than their need for monetary rewards.

REFERENCES
Caiden, Gerald E. The Dynamics of Public Administration: Guidelines to Current
Transformations in Theory and Practice, Hinsdale: Dryden Press, 1971.

Kernaghan, Kenneth and David Siegel. Public Administration in Canada,

Ontario: Nelson Canada, 1991.

Nigro, Felix A. and Lloyd Nigro G. Modern Public Administration, New York:
Harper and Row, Publishers, Inc., 1989.

Stoner, James A. Management, New Jersey: Prentice Hall, 1987.

55 MODULE 4: ORGANIZATION THEORY

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SAQ 9
1. What significant events influenced the beginnings of modern administrative
ideas?

2. What disciplines had major influence on organization theory? What were

their contributions to organization theory?

3. Identify three persons who had a major influence in the development of

organization theory.

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ACTIVITY 1
This activity is aimed at determining the influences of the organization theory
in present-day organization and administration. I’d like you to consider one
organization, it may be the office where you are working or some other
organization or agency that you’re familiar with. Recall some episodes or
issues that happened in your organizations which have stirred the attention of
the staff and probably the public. Now, try to identify the relevant school of
thought, concept or techniques that were applied in responding to the situation
or issue. You can also attempt to explain why the concepts or techniques
were chosen in dealing with the issue.

COMMENT
Your output can look something like this:.

Organization Issue or Situation School of thought/concepts/techniques

applied or involved
E.g.
1. Tardiness Human relations, efficiency, discipline
2. Assignment of tasks
3. Reorganization
4. Moving to a new building or site
5. Sending people for training

It’s possible that several schools, concepts, or techniques are applicable to a given
situation or issue. This only shows that no single theory can provide all the
answers to a given situation or problem, or that an organization will subscribe to a
single management theory. In my opinion, the natural tendency of a practical
administrator or manager is to make the best of a given situation - a combination
actually of the contingency approach and satisficing model.

57 MODULE 4: ORGANIZATION THEORY

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ACTIVITY 2
Formulate a matrix of administrative theory that classifies the various theories
according to focus, values or goals promoted, and the concepts/techniques of
administration. You may add other organizing categories if you wish, for
example, important personalities who had contributed to organization theory.
The matrix will help you synthesize important ideas about organization theory.
To help you carry out this activity, I have written down below a portion of the
matrix that you can follow.

Classification of Focus Goals Administrative

Theory Concepts and
Techniques/Methods
Classical Theory Man Efficiency One-best way
Internal org. Economy Hierarchy
Effectiveness

COMMENT
You may perhaps have realized by now the usefulness of a matrix in synthesizing
and integrating ideas and concepts. I find it a very useful tool for comparing
different perspectives or ideas. The examples I cited should sufficiently help you
in completing the matrix.

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ASAQ 9
1. Briefly speaking, it can be said that the industrial revolution that was
sweeping across the northern countries in the beginning of the 19th century
provided the impetus for the incipient knowledge in organization to grow.
There’s a reciprocal relationship between the scientific management
movement and the demands of an industrializing society. Industrial
revolution connoted progress; attainment of progress required the search for
and experimentations on ways and means that would increase productivity
and efficiency in running factories and business enterprises. The scientific
management movement became a source of new ideas and methods that could
be applied to the industrial firms.

2. Social sciences like sociology and psychology and professional courses like
engineering and business management contributed to the development of
organization theory. The classical and neo-classical theories particularly had
derived much of its conceptual foundations from these disciplines. The
concept of bureaucracy, for instance, was derived from sociological study of
organizations made by the sociologist Weber. The psychology perspective
broadened the understanding of organizations by including the human
dimension. And so on.

3. Frederick Taylor, Max Weber, and Herbert Simon are just some of the leading
personalities in the evolution of organization theory. Their contributions to
this body of knowledge are discussed in this course manual and in the Dubsky
reading.

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ASAQ 10
Concepts Exponents/Authors
1. Bureaucracy Max Weber
2. Scientific management Frederick Taylor
3. Organizations as cooperative system Chester Barnard
4. Universal principles of management Henry Fayol
5. Division of labor Weber, Fayol
6. POSDCORB Gulick and Urwick
7. Hierarchy of needs Abraham Maslow
8. Hawthorne experiements Elton Mayo
9. Decision making theory Herbert Simon
10. Human relations Elton Mayo,
Mary Follet,
Chester Barnard
10. Human relations
9. Decision-making theory
8. Hawthorne experiments
7. Hierarchy of needs
6. POSDCORB
5. Division of labor
4. Universal principles of management
3. Organizations as cooperative system
2. Scientific management
1. Bureaucracy
Exponents/Authors Concepts
To whom can you attribute the following ideas?
SAQ 10
UP Open University PM 201
PM 201 UP Open University

5
Development
Administration and New
Public Administration

INTRODUCTION
In Module 4, we focused on organization theory which underlie traditional or
classical public administration. In this module, we will study the two public
administration paradigms that emerged during the ‘50s-‘70s. These are
development administration (DA) and new public administration (NPA).

OBJECTIVES

After completing the module, you will be able to:

1. explain the concepts of new public administration and development
administration;
2. describe the features of the two models; and
3. examine their relevance to the Philippines.

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UP Open University PM 201

READINGS

Cariño, Ledivina. The portion on varieties of public administration in

“Administrative Accountability: A Review of the Evolution, Meaning and
Operationalization of a Key Concept in Public Administration” in Bautista
and others, (eds.) Introduction to Public Administration in the Philippines..

Pilar, Nestor. “Relevance of New PA in Philippine Public Administration ” in

Bautista and others, (eds.), Introduction to Public Administration in the
Philippines.

Reyes, Danilo. The NPA portion of his article “The Study of Public
Administration in Perspective: A Passing Review of the Development of the
Discipline” which is an assigned reading in Module 3.

SUPPLEMENTARY READINGS
Dubsky, Roman. “Max Weber and Development Administration: Toward a New
Development Administration” in Bautista and others, (eds), Introduction to
Public Administration in the Philippines: A Reader.

Frederickson, George. “Toward a New Public Administration” in Frank Marini,

(ed.), Toward A New Public Administration: The Minnowbrook Perspective.
Scranton: Chandler Publishing Co., 1971.

Frederickson, George. “The Lineage of New Public Administration” in Uveges,

(ed.,) The Dimensions of Public Administration,1979.

Gant, George. “The Concept of Development Administration” in George Gant,

(ed.), Development Administration: Concepts, Goals and Methods. Madison:
University of Wisconsin Press, 1979.

Nef, J. and O.P. Dwivedi. “Development Theory and Administration: A Fence

Around an Empty Lot?” Indian Journal of Public Administration, Vol.27, No.
1, (January-March 1991).

62 MODULE 5: DEVELOPMENT ADMINISTRATION AND

NEW PUBLIC ADMINISTRATION
Unit II: Theories of Administration
PM 201 UP Open University

The papers of Cariño, Pilar and Reyes are your basic reference materials for this
module. Pilar focuses on New Public Administration and Cariño gives an
overview of the four models or varieties of public administration theory, namely
traditional public administration, development administration, new public
administration and development public administration. Our focus here is on
Development Administration (DA) and New Public Administration (NPA). The
supplementary readings are available in the learning centers. I recommend that
you read them to enhance your understanding of these two models of public
administration.

You can consider Cariño’s summary of traditional public administration as a

review of organization theory. Maintenance or stability of the organization’s
structure, goals and processes, internal orientation or focus on inputs to
organization, and separation of politics from administration as the emphases of
traditional public administration study are mentioned in the material.

DEVELOPMENT ADMINISTRATION
The Development Administration (DA) school is the variety or type of public
administration theory that studied the administration of new independent states or
developing countries in the ‘50’s and ‘60’s. It aimed to identify administrative
behavior and patterns that would be useful for these countries to effectively run
their governments and to attain economic development.

According to Nef and Dwivedi, the concept of development administration was

coined by Goswami in 1955 and popularized by Riggs and Weidner. It has been
used to refer almost exclusively to the developing countries in Asia, Africa, and
Latin America. Its conceptual foundations were western, influenced largely by
scientific management and administrative reform (traditional public
administration theory), joint impact of the great depression (in the U.S.) and
World War II, reconstruction of national economies devastated by the war, and
the power struggle between the U.S. and the U.S.S.R. for hegemony.
Subscribing to the Marshall Plan reconstruction model exported by the U.S. to
war-torn Europe, development administration infused the Asian, African, and
Latin American countries with western (particularly U.S.) capital, technology,
and management tools. DA became closely linked to foreign aid and western
models of development (Nef and Dwivedi, 1981).

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In studying the developing economies, also called Third World countries, the
development administration school used the concepts and methods of traditional
public administration to describe Third World administration, and to prescribe
solutions. Hence, much of public administration practice and study in these
countries, the Philippines included, was guided by emphasis on internal aspects of
administration, conventional techniques and the values of economy and
efficiency. You can glean this from Cariño’s overview of the topic. You will
recall in Module 3 readings that the discipline of public administration itself as it
was introduced in the Philippines by American scholars in the ‘50s did not depart
from traditional public administration.

Take note that development administration was applied in countries at a time that
the latter were in the process of nation building and grappling with social and
economic problems. That’s why it is also said that development administration is
“management of innovation” and “carrier of innovating values” because it sought
to help countries that were undergoing rapid social transformation - from rural
and agricultural toward modern and industrial societies. The ultimate goal of
development administration was to steer these countries along the path of
economic and social progress.

Thus, where society and development are concerned, development administration

aimed to develop the administrative capability of governments to enable them to
achieve development. It focused on the support and management of development.
As defined by Gant, development administration refers to the “complex of
agencies, management systems, and processes a government established to
achieve its development goals” (Gant,1979). In other words, development
administration aimed to strengthen the bureaucracy to ensure that government
policies and programs for national development were effectively and efficiently
implemented.

As to the reasons or causes why a nation’s progress was slow, these were touted
as administrative-rooted if not cultural. The solutions offered, therefore, were
administrative in nature. Such was the case of the Philippines as pointed out in
the Cariño reading.

At this point, we can say that public administration became development

administration when it was exported from the West to the Third World countries,
while retaining the hallmarks of traditional public administration that remained in
force in the West.

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Gant characterized development administration according to its purposes,

loyalties, and attitudes. As to purpose, development administration aims to
stimulate and facilitate national development, implement policies and programs
that are determined by the people, and introduce change and innovative structures
and processes that will help achieve the goals of development. Because it is
concerned with the involvement of the people in development, the bureaucracy it
establishes pledges its loyalty to the people through their elected representatives.
In terms of attitude, development administration is positive, persuasive,
innovative, and outward looking (Gant, 1979).

There are certain criticisms, though, that have been leveled against development
administration. Development administration was regarded as a panacea to the ills
and problems of the Third World countries without giving much consideration as
to whether its tools and techniques were relevant and appropriate to their
respective settings. Because of its emphasis on organization structure and
processes, explanations of and solutions to the slow progress of these countries
were sought primarily within the realm of the bureaucratic model. Other factors
have been glossed over. It is argued, for instance, that the dominance of
development administration in the less developed countries had been in
consonance with the political agenda and strategy of the U.S. during that period
to stem off communism and ward off USSR supremacy in these countries, and not
necessarily driven by altruistic intentions. The structural relations between rich
and poor countries which led to the latter’s underdevelopment and dependency on
foreign assistance had also been ignored ( Nef and Dwivedi, 1981),

NEW PUBLIC ADMINISTRATION

Classical or Traditional Public Administration evolved during the era of the civil
service reform movement and industrial revolution in the West. The conditions
and demands of that particular period stressed attention to efficacious means of
running organizations to achieve organizational goals. In the ‘50s and ‘60s,
another paradigm emerged. This was Development Administration. DA roots
were basically western (U.S. particularly). Unlike Classical Public
Administration which grew in the U.S., Development Administration was applied
and nurtured in developing countries. DA took off from the West carrying in its
wings the doctrines of traditional public administration, and planted them on the
hospitable grounds of developing nations like the Philippines.

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In the ‘70s, a new thinking in public administration took shape. This was the
New Public Administration thought, or New PA for short. It emerged in the
United States at a time of fast-paced technological advancement and unprecented
economic growth. It was a movement that started in the late 1960s led by young
scholars who questioned the relevance and responsiveness of traditional public
administration to existing deprivation amid plenty. They noted that despite the
prosperity experienced by the country, others remained poor, unemployed, and
uneducated. These scholars, led by H. George Frederickson, argued that these
disparities existed because public administration has focused less on social
purposes or values of government policies and programs and more on the
economy and efficiency of their execution. The value-free and neutral stance of
traditional public administration has alienated the less privileged and deprived
groups in society. The scholars even contended that government had in fact been
less than neutral because it operated in a way that catered to special interests.

The New Public Administration movement did not cast aside the classical criteria
of economy and efficiency but it faced head-on the issue of value-free
administration. According to its proponents, public administrators should not be
neutral; they should be committed to both good management and social equity as
values to be achieved. At the heart of the NPA doctrine is the principle of social
equity which seeks to redress the deprivation of the minority. New PA called on
public officials to abandon the facade of neutrality and, instead, use their
discretion to protect and promote the welfare of the disadvantaged groups. It
called for a client-oriented administration, non-bureaucratic structures,
participatory decision-making, decentralized administration, and advocate-
administrators (Frederickson, 1971; Nigro and Nigro, 1989).

New PA is relevant in the Philippine context particularly in its avowed goal of

addressing the issue of social justice and equity. While in the United States, only
a minority of the population were considered economically and socially
disadvantaged, in the Philippines, the poor and disadvantaged comprise the
majority of the population. The call of New PA for public officials to be
advocates of the deprived and for creative structures that will facilitate their
participation, for instance, in project identification and implementation are
pertinent in the Philippines.

The features of New PA are discussed at some length by Pilar. You can also
review Reyes’ piece “The Study of Public Administration in Perspective” which
is a reading in Module 2. In that material, you will find more about the birth of
New PA.

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REFERENCES
Frederick, George. “Toward a New Public Administration” in Frank Marini, (ed),
Toward a New Public Administration: The Minnowbrook Perspective.
Scranton: Schandler Publishing Co., 1971.

Gant, George. “The Concept of Development Administration” in George Gant,

(ed.), Development Administration: Concepts, Goals and Methods. Madison:
University of Wisconsin Press, 1979.

Nef, J. and O.P. Dwivedi. “Development Theory and Administration: A Fence

Around an Empty Lot?” Indian Journal of Public Administration, Vol.27, No.
1, (January-March 1991).

Nigro, Felix and Lloyd Nigro. “Organization Theory” in Nigro and Nigro, (eds.),
Modern Public Administration, New York: Harper and Row Publishers, 1989.

SAQ 1
In the Pilar article, he presented a matrix that compares classical and new
public administration. Can you complete the matrix by adding a column for
development administration and supplying the appropriate characteristics
for each of the variables?

ASAQ 1
concepts like bureaucracy, efficiency, internal processes, etc.
processes, DA is like the traditional PA for it adhered to classical
economic progress. In terms of values, premises, structure, and
strategies, e.g., foreign loans and technical assistance to achieve
were pursuing economic development and experimenting with
countries where conditions were crying for reforms. These countries
that it was also turbulent and unsettled. DA operated in developing
In my opinion, the environment of DA is akin to New PA in the sense

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NEW PUBLIC ADMINISTRATION
DEVELOPMENT ADMINISTRATION AND
MODULE 5: 68
DA focuses on improving the bureaucracy or upgrading the
administrative capability of government to attain economic
development. NPA ,on the other hand, emphasized social equity as
the goal of public administration and looked
at the bureaucracy in terms of how it could further that aim.
ASAQ 2
Administration.
Briefly explain the concepts of Development Administration and New Public
SAQ 2
PM 201 UP Open University
PM 201 UP Open University

SAQ 3
In what areas of Philippine public administration would New PA be most
significant today?

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Unit II: Theories of Administration
UP Open University PM 201

ASAQ 3
Let me say that the New PA’s emphasis on social equity remains relevant to
the Philippines until today. Given the prevailing social and economic
conditions
in the country, particularly where the 50%-60% poor population are concerned,
the emphasis of New PA on social justice and equity remains a relevant and
persistent concern of public administration. Poverty alleviation has always been
in the government agenda, yet, poverty incidence in the country does not show a
marked decline historically. And the gravity of deprivation particularly of those
who are way below the poverty line, the poorest of the poor, in other
words, seems to be worsening. It’s one thing to reduce poverty incidence,
meaning those who are considered poor by government standards. It’s entirely
another matter lessening the intensity of deprivation that the poor experience.
Promoting social equity in this country will continue to be a major concern of
public administration in the next century.

Comment

The question calls for your assessment of the relevance of New PA in the
Philippines. You can get your cue from the Pilar reading material. The
distinguishing feature of New PA is its emphasis on promoting social equity.
Changes in the structures, process, and orientation of traditional public
administration have to be made to advance the cause of social equity.

70 MODULE 5: DEVELOPMENT ADMINISTRATION AND

NEW PUBLIC ADMINISTRATION
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PM 201 UP Open University

6
Reinventing Government

INTRODUCTION
There is, in recent years, a new paradigm that has emerged in the literature and has
come into prominence in the United States and probably elsewhere in the world, the
Philippines included. This is the concept of “reinventing government” which is the
subject of a book written by American authors, David Osborne and Ted Gaebler.
Reinventing government or entrepreneurial government involves changing the ways
and means or using resources in new ways to achieve the goals of government. As
the authors contend, “the central failure of government today is one of means, not
ends.” While the context of the paradigm is American, it may offer something of
value to other countries in the way they run their government.

In this module, we will explore the ideas presented by the paradigm of reinventing
government in the light of existing realities in the country. Questions like: Does the
reinventing government concept really offer a fresh approach to improving
government? Is it relevant to the political socio-economic and administrative milieu
of the Philippines? Are all parts of the government bureaucracy suited for
reinvention? How do we assess and on what basis shall we assess the results of
reinventing? are just some of the issues that should challenge you when you finished
this module.

OBJECTIVES

At the end of the module, you should be able to:

1. discuss the concept and principles of reinventing government; and
2. ascertain its applicability in Philippine public administration.

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Unit II: Theories of Administration
UP Open University PM 201

READINGS

Enriquez, Salvador, Jr. Re-Engineering the Bureaucracy for Better Governance,

PCSB, 1994.
Reyes, Danilo. “Reinventing Government and Bureaucracy in the Philippines:
Old Themes and a New Image?” PJPA, Vol. 38, No. 2 (April 1884)
Sta. Ana, Filomeno III. “Re-engineering the Bureaucracy, Philippine Style”
PJPA, Vol. 40, Nos. 3 & 4 (July-December 1996)

Case Study
Joaquin, E. and W. Cabo. “The BOT Program for Local Enterprise Promotion” in
Legaspi et. al., (eds.), Local Economic Promotion in the Philippines

SUPPLEMENTARY READINGS
Halachmi, Arie. “Re-engineering and Public Management: Some Issues and
Considerations,” International Review of Administrative Science, London:
Sage Publications, May 1995.
Moe, Ronald. “The `Reinventing Government’ Exercise: Misinterpreting the
Problem, Misjudging the Consequences,” Public Administration Review, Mar-
Apr 1994.
Osborne, David and Ted Gaebler. Reinventing Government: How the
Entrepreneurial Spirit is Transforming the Public Sector. New York:
Penguin Books, 1993.

CONCEPTS AND PRINCIPLES OF REINVENTING

GOVERNMENT
The idea of improving government performance is presumably in the agenda of
any administration. In can be comprehensive as to cover the entire government
bureaucracy or focused on certain sectors of government. Such improvements
may be instituted in the way jails are managed, public utilities are operated,
national planning is undertaken, national budget is prepared, social services are
delivered. The list goes on.

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Neither is it a novel invention. Modern public administration shows a tradition of

deliberate efforts to increase efficiency and effectiveness of operations as exemplified,
for instance, by the cameralists in Europe, the Wilsonian call for protecting
administration from partisan activities in America, and the New Public Administration
movement which sought to transform public administration from its primarily inward-
looking orientation to focus on the impact of policies and programs on society.

So, what is new about the concept of “reinventing government” that seemingly has
become a by-word in the halls of government and academic corridors? American
authors, Osborne and Gaebler, in their book, Reinventing Government: How The
Entrepreneurial Spirit is Transforming the Public Sector (1993) argue for a paradigm
shift in the basic model of governance used in America. The paradigm is premised on
the thesis that the kind of government that developed during the industrial era no longer
works in present times. The “postindustrial, knowledge-based, global economy”
creates new problems and opportunities which only a different kind of government can
respond to in a better way.

Reinventing government suggests that governments must act in entrepreneurial ways.

According to the authors, an entrepreneurial government utilizes its resources in new
ways to maximize productivity and effectiveness. They adapted to the government
context the definition of entrepreneur made by the French economist, J.B. Say:
“entrepreneur shifts economic resources out of an area of lower and into an area of
higher productivity and greater yield” (Osborne and Gaebler, 1992, p. xix).

There are certain premises or beliefs which the authors said underlie their propositions.
These are:
1. Belief in government - government is needed by societies as a mechanism to make
collective decisions (e.g., what to do with homeless people), to provide public
services needed by the population, to collectively solve societal problems like
pollution, crime, etc.
2. Civilized society can’t function effectively without effective government.
3. It’s the systems in government which is the problem, not the people who work
there.
4. The conventional or standard approaches that have been used to solve problems are
not that relevant anymore to the challenges faced by governments today.
5. Equity or equal opportunity for all should be upheld by government not only
because it is right and just but also because it’s critical to a nation’s success.

Osborne and Gaebler identified ten principles of reinventing government. As you read
them, you will notice that they are not mutually exclusive and are, in fact, interrelated.
I will present them here as they are written in the chapter titles. I’ll also give the gist of
each principle. Some of the problems and examples cited in the book have parallels in
the Philippines. More strikingly, some of the principles that they are talking about are
not new to the Philippines. Meaning, we are already practicing them here, even
before the term “reinventing” was invented.
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A common theme that runs across these principles is that entrepreneurial

government is constantly seeking new and better ways to accomplish its mission.
It is creative, resourceful, and innovative. Also, entrepreneurial public
organizations use their experience to learn what works and what doesn’t. This
makes an entrepreneurial government a learning organization.

1. Catalytic Government: Steering Rather Than Rowing

According to this principle, government sees to it that public problems are
solved not necessarily by directly engaging in the provision or production of
the needed goods and services (rowing) but by seeking solutions and
mobilizing resources outside the public sector (steering). Steering means that
government acts as catalyst and facilitator in bringing together private
business, foundations, non-profit organizations, volunteer organizations,
community residents, and other groups and members of the community to
address a public or social need.
A steering government has more time to concentrate on policy matters and
actively direct and shape the future of the country. In other words, to lead and
govern. The entrepreneurial government allows its policy managers to steer
other service providers, within and outside the public sector, using
competition to determine the most effective and efficient providers.

2. Community-Owned Government: Empowering Rather Than Serving

An entrepreneurial government involves the community in governance.
Rather than foster dependency on public institutions and civil servants that
deliver services and solve social problems, the government encourages the
community-citizens, voluntary organizations, church, neighborhood
associations - to help solve them. The premise here is that communities can
better understand and define their needs and problems; they are, therefore, in a
position to identify what is best for them. When people become part of the
problem-solving process, when they are able to gain control over matters that
directly affect their lives, they become more concerned and more committed
to perform their civic responsibilities. As communities become more involved
in solving communal problems, they begin to see that keeping their
communities a better place to live in is a shared responsibility between public
institutions and the people. For instance, maintaining public safety and
keeping children from drugs are as much a responsibility of government
enforcers as the residents. An entrepreneurial government, thus, steers
communities to solving the problems and not just providing services or
solutions; the latter makes dependents out of them while the former empowers
them.

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3. Competitive Government: Injecting Competition into Service Delivery

The idea here is that government should consider more effective and efficient
ways of providing public services. This means looking for service providers
who can do the job better than the regular government offices or departments
that have traditionally been providing or monopolizing them. Government
monopoly tends to result to poor services and, in the long run, more costly and
less effective. But if service delivery is placed in the market, government can
choose the offer that is most beneficial and advantageous.
The competition to do the job can be between public and private and between
public and public. This can mean contracting out services to private firms or
other government agencies. When government does this, the unit or agency
that’s primarily responsible for the service, if it wants to keep its job and
avoid public backlash, is challenged to match if not outdo the capability of the
others which are competing for the job. Competition in service delivery
makes public agencies keep costs down and provide better services. It
encourages innovation and excellence among service providers.

4. Mission-Driven Government: Transforming Rule-Driven Organizations

Most public institutions are driven not by their mission but by their rules,
procedures, and budget. There are rules to be followed every step of the way
which detract officials from focusing on and pursuing the fundamental
purpose of their organization. Adherence to rules becomes the primary
obligation of public officials and organizations. In the process, the
accomplishment of their fundamental goals is waylaid.
Transforming rule-driven organizations to mission-driven means engendering
an organizational culture that puts premium to the attainment of mission. To
foster this environment, the entrepreneurial government gives public
organizations the flexibility and discretion to use creative and innovative
methods and strategies to accomplish their mission. Rules are there to help,
not to encumber, government institutions perform and accomplish their
purpose.

5. Results-Oriented Government: Funding Outcomes, Not Inputs

For public organizations which are able to receive their budget year in and
year out without so much accounting for what they have accomplished, there
is little incentive for them to improve their performance. There’s some sense
of security that lulls them to do things the way they’ve been used to. There’s
some truth in this. Why work harder when you get anyway what you ask for?
But, if performance becomes the basis for budget allocation, they have little
choice but to improve their performance.

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The entrepreneurial government looks at what public institutions have

accomplished, or what they have done to make this world a little better place
to live in. It’s the results or outcomes of their spending that matter, not every
single input that gets into the provision of services or goods, for instance,
justifying that you need such and such amount because you have so much
number of people in your staff. A pollution regulatory body, for example,
will have to show that the quality of air has improved to justify that they
deserve the budget they are asking. Results-oriented government uses
performance measures and indicators to assess their performance, in other
words, how well they have used their budget to fulfill their mission.

Let’s pause here for our first SAQ. You’ll find the answer on the next page.

SAQ 1
What is the basic premise or reinventing government?

6. Customer-Driven Government: Meeting the Needs of the Customers, Not the

Bureaucracy
Remember the saying “the customer is always right?” In business, that
applies very well. The success of business firms depends on how well they
sell which, in turn, is highly contingent on having satisfied customers. The
customers are their lifeline so it’s really important that they are kept satisfied
and happy with what they get from the store.
In government, it’s often a different story. The existence of public institutions
depends more on the executive and legislature rather than the public that they
serve. It’s the former which the agencies are wont to please because they
decide the budget. They also please interest groups like their intermediate or
secondary clients, e.g., public works contractors. The intended beneficiaries
of their programs and services are usually taken for granted and regarded as
mere recipients.

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The entrepreneurial government does not behave in this manner. On the

contrary, it seeks out its clients, through surveys, suggestion boxes, interviews,
and other means, to listen to them and learn what exactly they need or think of a
service received so that more responsive and appropriate programs and services
are provided. The consumers are given control of resources, or what the authors
say “putting customers in the driver’s seat.” Rather than conscript them into
one-size fits all model, the entrepreneurial government gives its consumers
elbowroom to choose which among government resources (service providers)
best suit their needs and particular circumstances because they themselves know
what their needs are.
When government end-users or recipients of services are treated as customers, it
suggests that they have option to shop around for the service provider or agency
that best serves their needs. The track record of agencies become the basis of
people when they choose the service provider. This way, the customer-driven
government institutions, thus, become directly accountable to the public. If
they did well, people will patronize them. Else, they will shop around and look
for the best. The customer-driven government, thus, encourages competition
among service providers to give their best to their customers. It also promotes
accountability. In the final analysis, it’s the public who benefit when public
institutions are customer-driven and competitive.

ASAQ 1
Anyway, briefly speaking, the central point of the premise is that new
developments and changes are rapidly taking place everyday and they pose
tremendous challenges to our society and governments. The old ways of
dealing with today’s problems are no longer effective. Government should
consider new and innovative approaches, or reinvent, to improve performance,
efficiency and effectiveness.

7. Enterprising Government: Earning Rather Than Spending

The public budget systems operate from the standpoint of spending and
government officials oblige by spending their agency’s budget. The tack often
used to approach activities or solve a problem is “how much will they cost”.
The enterprising government transforms circumstances like these into
opportunities to generate revenues or profits for government, or convert
provision of services into self-liquidating systems. The profit motive is there
but its philosophy is primarily public in the sense that government will not use
public money to fund the activities; instead will earn from them. The earnings
generated can consequently be used for other public projects.

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The enterprising government, thus, searches for creative and innovative

strategies to fund a project or activity at least or no cost to itself and at the same
time earn revenues for government. Examples of what enterprising
governments do are swap and sale schemes and the use of user fees. The build-
operate-transfer scheme and its variants are other examples of innovative
financial strategies used to finance public projects.

8. Anticipatory Government: Prevention Rather Than Cure

Governments spend enormous costs to deal with the symptoms or
consequences of social problems, for example, cleaning toxic wastes produced
by industries, maintaining rehabilitation centers for youth offenders, solving
death crimes due to gun, etc. More often, treating or curing the problems is
much more expensive than preventing them. The costs can be minimized and
the magnitude of social problems lessened if governments act immediately to
prevent them from happening.
Entrepreneurial governments thwart potential crisis or problems by
anticipating them. This means that government incorporates foresight in its
planning and decision-making activities and tries to foresee the costs and
consequences when decisions and actions are delayed. And it’s not just the
administrative costs that matter but the costs on society, too. High infant
mortality rate, for instance, can be prevented if, among other things, a strong
pre-natal care system and primary health care is available to most mothers.
Preventive measures such as regulations that reduce waste production, health
warnings on cigarette packs, and the like are easier, more effective, and less
costly to administer in the long run than treating the problems that result.
Being anticipatory means not just trying to prevent problems from occurring
but also envisioning the future and the desired state that the government wants
to achieve. It means planning for the future and steering the public sector,
private entities, non-government organizations, communities, and others
towards its vision, towards the attainment of its goals and mission. The
agencies can use their budget to attain their vision.

9. Decentralized Government: From Hierarchy to Participation and Teamwork

The entrepreneurial government is a participatory government because it
decentralizes decisionmaking powers to the different levels in the
organization, to the “periphery” and “down below” - the frontline workers,
customers, communities and non-government organizations. Authority is also
decentralized between levels of governmental organizations. By
decentralizing authority, public institutions can respond more quickly to the
changing circumstances and needs of the public they serve.

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A decentralized government empowers employees and frontline workers.

Giving authority to them to make decisions at their level can lead to better and
innovative solutions because they are the ones who are more familiar with
situations and needs of their customers. Teamwork is encouraged; teams are
given authority and responsibility to define their targets and the means to
achieve them. “Institutional champions”, such as programs and boards, are
created to encourage and protect those who take risks and initiative to identify
new ways and means to achieve results.
Decentralization also means investing in the employees - their welfare and
training - to ensure that they have the skills, knowledge, attitude, and morale
to make the most of their new authority.

10. Market-Oriented Government: Leveraging Change Through the Market

Governments cannot provide for all the public services needed by people and
communities. Neither raising taxes nor greater spending will satisfactorily
solve this, politically and financially speaking. Governments can, however,
resort to market mechanisms to provide the needed services, or what the
authors say leveraging change through the market.
Being market-oriented means that government solves a social problem not by
“rowing” but by structuring the marketplace, which is the most powerful
method of steering according to the authors. Instead of directly administering
social programs to solve a public problem, what entrepreneurial governments
do is influence the market using a system of incentives to address the
problem. The incentives serve as the catalyst in affecting the behaviour and
decisions of people in the direction of solving the public problem and
achieving communal goal, while permitting them to make most of the
decisions themselves.
By affecting changes in the community through the market, the
entrepreneurial government is able to accomplish its goals. By structuring the
market, government is able to achieve a public purpose without engaging in
direct provision of the required social services. Being market-oriented means
having an active government without bureaucratic government.

Now, I think you’re ready for the second question.

Before you answer it, let’s have a break. You can mull
over your answer while having your coffee or juice or
probably stretching your legs. I need it. You surely need
it, too.

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SAQ 2
Can you sum up in a few sentences the concept of reinventing government?

ASAQ 2
problems. That’s a start. I do think you can finish it.
is driven by innovative and creative energies in finding solutions to
Reinventing government calls for an entrepreneurial government that

Though reinventing has much to offer in terms, for instance, of the quality, cost,
process, and speed of services, it also has a lot of implications, costly ones
particularly. Reinventing involves radical changes; a change can trigger more
changes or disruptions which may not be easily tractable. It may also be difficult
to get a consensus of all stakeholders who will be affected by the changes. The
political risks and economic costs as well as organizational and personnel
implications entailed in being an entrepreneurial government may be too high for
political leaders and public managers to take (Halachmi, 1995).

A critical view of the paradigm is also presented by Roe (1994). According to

him, there is danger of having a government that will become less and less
responsible to the citizens for its performance principally because the
management roles of the institutional presidency and national government
departments are weakened by the entrepreneurial values and practices of the
reinventing government paradigm.

What do you think about these criticisms? Do you agree with them?

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REINVENTING IN THE PHILIPPINES

Now, let’s shift to the local scene. Given the fact that we’ve had so many reorganizations
in the past (you’ll know this when you read Sta. Ana and Reyes) with probably few
outstanding results, it’s time perhaps that we really consider another option in
approaching the task of improving government. It looks like we’re not too far behind in
embracing the concept of reinventing. As directed by President Ramos, A Presidential
Committee on Streamlining the Bureaucracy in the Department of Budget Management
studied the reform of bureaucracy. In 1993 it came out with the report Framework for
Governance: Streamlining the Bureaucracy that set down the philosophy and principles
of reorganizing the bureaucracy. The central point of the Framework focused on the
principles, policies, and parameters that will serve as guide in determining the scope,
level, focus, and structures of government intervention in the country. The dysfunctions
of the bureaucracy were also identified there.

Based on that report, a separate document, Re-Engineering the Bureaucracy for Better
Governance: Principles and Parameters (1994) was subsequently produced by the DBM
Secretary who served as the Chair of the Presidential Committee. Its content is basically
the same as that found in the Framework. Re-engineering is in your reading list.

Read it carefully. Do you think it’s close to Osborne and Gaebler’s reinventing
government? Which principles of reinventing are adopted (and adapted) in the
Framework? A model is presented there which depicts the scope of government. Try to
consider its implications on social equity in this country.

Now, read Sta. Ana. It’s a critique of the Philippine version of re-engineering the
bureaucracy. You have read the document that he’s reacting to. Do you agree with him?
What is your own assessment of the DBM report? Do you think the principles identified
there are valid given the prevailing socio-economic and political situation in the country?

Improving government, often through reorganization, is not new in this country. This
much you can gather from Sta. Ana and Reyes. While Sta. Ana focused his critique on
the suggested framework of governance in streamlining the bureaucracy, Reyes took off
from the reinventing principles of Osborne and Gaebler to assess the administrative
reform agenda of the Ramos administration in the context of the development thrusts and
goals it has set in the Medium Term Philippine Development Plan. Some similarities are
pointed out between the Philippine reform agenda and reinventing . But the agenda,
according to Reyes, have standard or `one size fits all’ remedies and tend to be more
general, thus, are harder to measure and implement.

What is important to note in the material is that regardless of the perspective we use, it
seems that the success of improving government or reorganizing the bureaucracy depends
on certain things or preconditions. And these are, according to Reyes, political will, fair
and speedy justice system, performance-based reward system, effective implementation
process, and prioritization of reform agenda.

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ACTIVITY
Read the case study, The BOT Program for Local Enterprise Promotion. Sort
out whether the City of Mandaluyong has applied reinventing principles in
solving the public market problem.

COMMENT
The experience of the City of Mandaluyong shows that reinventing government is
at work in the Philippines, perhaps even before the term “reinventing” was
coined. The Local Government Code that was passed in 1991 enhanced the
revenue-generating powers of local governments in the country. The BOT
strategy is just one such option that local governments can use to finance local
projects.

You should be able to cite the principles and explain how these were applied in
Mandaluyong City.

REFERENCES

Halachmi, Arie. “Re-engineering and Public Management: Some Issues and

Considerations,” International Review of Administrative Science, London:
Sage Publications, May 1995.
Moe, Ronald. “The `Reinventing Government’ Exercise: Misinterpreting the
Problem, Misjudging the Consequences,” Public Administration Review, Mar-
Apr 1994.
Osborne, David and Ted Gaebler. Reinventing Government: How the
Entrepreneurial Spirit is Transforming the Public Sector. New York:
Penguin Books, 1993.

ASSIGNMENT 2
Please refer to your course guide
for Assignment 2.

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7
Public Policy
INTRODUCTION
You have learned in the first three modules about public administration being a
field of study and how its scope has grown over time. Historically speaking,
public administration study, using various theoretical approaches and social
science techniques, focused on such subject areas as organization and
management, personnel administration, and fiscal administration. You will note
that these are the traditional core functions of public administration. We will
discuss these in the succeeding modules.

The postwar years saw the emergence of public policy as a sub-field of study.
Such interest came about in an effort to relate (not dichotomize, as what occurred
in the early years of the evolution of the discipline of public administration)
policy and administration and, in a broader sense, to study the relation of
government with and its impact on the people, environment and society.

In Module 7 and the succeeding ones, you will get the chance to have an overview
of these subfields.

Rather than attempting a full treatment of public policy, Module 7 will provide
you with some notion of public policy and relate it to the Philippines as far as
practicable. You will also have a chance to have a sense of the dynamics of
policymaking through the case study on the Generics Act.

OBJECTIVES

At the end of the module, you will gain some understanding of and be able to:
1. discuss concepts in public policy;
2. describe some features of policymaking in the Philippines; and
3. relate the role of government in public policy in the Philippine context.

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READINGS

Guno, Carmelita Yadao. “The Generics Act of 1988: Policy Formulation and
Implementation Under Pressure,” PJPA, vol. 35 no. 4, October 1991.
Ocampo, Romeo. “Public Policy and the Role of Government” in Proserpina D.
Tapales and Nestor N. Pilar (eds.), Public Administration by the Year 2000:
Looking Back into the Future. Quezon City: CPA-UP, 1995
Ocampo, Romeo. “The Nature Of and Need For Policy Studies,” in Introduction
to Public Administration in the Philippines: A Reader.

SUPPLEMENTARY READINGS
Dye, Thomas R. Chapters 1 & 2 in Understanding Public Policy. Englewood
Cliffs, New Jersey: Prentice Hall, 1995.

POLICY STUDIES
The interest in studying the policy process developed not too long ago, around the
1950s in the United States. In the Philippines, the U.P.-C.P.A. initiated the first
attempts in the 1970s to make policy studies part of the College’s programs in
research, teaching, and training. It is offered as a specialization in the residential
MPA degree program and will subsequently be offered in the MPM.

Policy studies can focus on the content of public policy, assess the impact of
environmental factors on policy content, analyze the effect of various institutional
arrangements and political processes on public policy, determine the
consequences of public policy, and evaluate the policy impact on national life.
Furthermore, certain theoretical approaches or models of policy analysis have
been advanced by scholars in studying public policy. These include the
institutional, process, group, elite, rational, incremental, game theory, public
choice, and systems models. (Dye, 1995).

Some of these models may purport to be normative in the sense that they
prescribe how policies should be made while others may tend to be descriptive of
how decisions are made in practice. We wonder, however, if policymakers
consciously think of these models when they make decisions. For elaboration on
the models of policy analysis, I encourage you to read the Dye supplementary
reading materials. They are available in the Learning Center.

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There are various reasons why policy studies or policy analysis is important. But
ultimately, it is hoped that it can aid the political leaders and public administrators
in making and implementing informed policy decisions on vital as well as
frivolous issues affecting the people and society.

In practice, however, it’s also possible that policy recommendations produced by

policy studies may not necessarily be accepted or implemented by legal
authorities. The academic community, for instance, produces tomes of studies on
various substantive areas but these remain, in large part, unutilized by
policymakers.

SOME GENERAL CONSIDERATIONS ABOUT

PUBLIC POLICY
You probably must have asked yourself on several occasions what exactly is the
policy of government when what it does doesn’t turn out well for the people and
the nation. In the case, for instance, of overseas employment, you probably must
have wondered in the middle of the national indignation over the hanging of Flor
Contemplacion, a domestic helper in Singapore, what the national government
has in mind or what its policy is concerning sending Filipino labor abroad that
such an ugly incident had to happen? Or even more specifically, what our foreign
policy is when our fellow Filipino workers abroad become victims of any form of
abuse in the country where they are working?

Defining Public Policy

But what is public policy? There are various definitions of the term. Let’s look at
some of them.

Thomas R. Dye defines public policy as “whatever governments choose to do or

not do.” According to him, governments do many things. “They regulate conflict
within society; they organize society to carry on conflict with other societies, they
distribute a great variety of symbolic rewards and material services to members of
the society; and they extract money from society, most often in the form of taxes.
Thus, public policies may be regulative, organizational, distributive, or extractive
- or all these things at once. Public policies may deal with a variety of substantive
areas - defense, foreign affairs, education, welfare, police, highways, taxation,
housing, social security, health, economic opportunity, urban development,
inflation, recession, and so on. They may range from the vital to the trivial - from
the allocation of tens of billions of dollars for an antiballistic missile system to the
designation of an official national bird” (Dye, 1995).

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Nicholas Nicolaidis elucidates on policy as “a rule for action, manifesting or

clarifying specific organization goals, objectives, values, or ideals and often
prescribing the obligatory or most desirable ways and means for their
accomplishment. Such a rule for action established for the purpose of framing,
guiding, or directing organizational activities, including decision-making, intends to
provide relative stability, consistency, uniformity, and continuity in the operations of
the organization” (Nicolaidis: 1963).

Policies as specific courses of action are also echoed by James E. Anderson who
defined public policy as “purposive course of action followed by an actor or set of
actors in dealing with a problem or matter of concern” (Anderson, 1975).

We can say then that policies are specific courses of action dealing with a particular
issue or concern. For example, recognizing that education is more than just a
privilege than can be enjoyed by a few, the Philippine government enacted a law or
policy providing for free elementary and high school education to all so that each and
every Filipino child will have equal access to education.

Policies can also be decisions not to act. These “non-decisions” or what may perhaps
be called a “hands-off” kind of policy can be as equally important as decisions.

Public policy addresses societal problems with the end in view of at least improving
the situation if not entirely eliminating the problem. But when does a problem
become societal or public to warrant a formal policy declaration by the government?
Saying that a particular situation is a public problem and another one as non-problem
can be contentious. It is highly subjected to perceptions and interpretations and, more
crucially, to the wherewithals available to those who have interest or stake in its
resolution.

You can review Module 1 on the meaning of public. Additionally, according to John
Dewey, a public problem arises when transactions between private individuals are
perceived to produce indirect consequences for others; whether government acts on it
or not depend on the desire and capability of those indirectly affected to influence
government to act on it (Dewey as cited by Nigro and Nigro, 1989). There’s an
important criterion suggested by the preceding definition as to what constitutes a
public problem. Roughly speaking, it involves consequences, light or grave, for
others which can be a group of people, a community, or even the whole nation.

There’s another crucial point. If the issue requires government action, the
policymakers will have to be informed about its existence. Putting the issue in the
policy agenda of government is a matter of grave concern for it involves a
competition of power, resources, and influence. What if those affected don’t have
access to the decisionmakers or they don’t have the power and resources to influence
them? Will the problem remain a problem? Or should the government, once it has
recognized the problem, step in and provide relief, through a policy, to the affected
people?
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These interrelated questions converge on a fundamental policy issue concerning

the role and scope of government: to what extent should the latter intervene to
help those affected by the problem? Take the case of health care in the
Philippines. What should be the scope of health services that government shall
provide? Who should be covered by the public health service system? Should
preferential treatment be given to the poorest 20% of the population? Or should
government give more space ( which means it will have limited participation in
direct provision of services) to the private health industry to respond to health
concerns?

A related issue is who defines the problem or perceives that there is a problem?
Because perceptions are very much part of the process of defining the problem, a
particular circumstance can be interpreted in various ways, depending on the
inclination and biases of the interpreters. It’s akin to the saying that there are
many ways to skin the cat.

It’s also possible that what is perceived as a problem may not necessarily be so in
the eyes of those who are supposed to be affected by it.

Public policy, as you can see, is attended with complex ramifications.

An important point that perhaps should not be missed when we consider public
policy is that policy is not just an expression or articulation of the intention of
what government wants to do about a particular public problem but what it
actually does or implements in relation to that problem. As one scholar argued, a
policy that is not implemented means no policy at all. In other words, intentions
should be matched with action.

You can say that making and implementing public policy form the essence or core
of government activity. The effectiveness of government programs depends
greatly on how the policymaking function is carried out. This applies as well to
the process of implementing the policies and evaluating their actual results.

In the past, policy implementation and evaluation have received little attention
because it was assumed that, once policies were made, implementation would
follow automatically and smoothly and, thus, achieve the desired effects of such
policies. But experience has shown that that’s not always the case. Some policies
remain unimplemented or not fully enforced, others don’t achieve the expected
results or, at worse, produce unwanted consequences. It’s also possible that the
policies adopted are not exactly the right solutions to the problem at the time
these were made.

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The Policy Process, Actors, and Environment

From what we have just discussed, you can already have a view of the general
process or cycle of public policy. The first step in the process is policy
formulation. Anderson identifies two major types of participants in the process:
the official policymakers and the unofficial participants. The first group has legal
authority to engage in the formation of public policy (Anderson, 1975). So the
policies they produce are not only legitimate but are binding and authoritative. To
this group belong the executives, legislators, administrators, and judges.

ACTIVITY
Here in our country, can you identify the dominant key official actors in the
policy formulation stage?

COMMENT
The President and his Cabinet and Congress play the major role in policymaking
in the country. The judicial courts are also considered key official policymakers
because they provide rulings and decisions that are binding and which are also
used as bases by government leaders and administrators for future decisions and
actions.

In policy formulation, the executive department and the legislature are aided by
the civil service bureaucracy and administrators. They provide the information,
presented in various forms and styles, (e.g., technical reports, policy paper, etc.)
needed by the former in crafting policy. Thus, the bureaucracy and public
administrators perform an important advisory role in policy formulation.

It is easy to identify the official actors in the policy process because they occupy
positions in the government. However, there are other stakeholders outside the
government who are interested in the outcome of the policymaking process and,
therefore, would like to influence the content of policy. They are what Anderson
calls unofficial participants (Anderson, 1975).

You can cite as examples the business block, labor, women’s groups, NGOs,
individual citizens, cause-oriented groups, the church, political parties, and other
organized interest groups. Being organized as a group is important in order to be
more effective in influencing policy. In the Philippines, the Freedom from Debt
Coalition, an NGO, for example, is very active in the policy area of foreign debt.
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The Catholic church is also very influential in population policy particularly during
the Aquino administration but, apparently, its role diminished under the Ramos
regime. A strong public opinion (accompanied perhaps with street protests and
rallies) can also exert a serious influence on the fate of proposed changes in policy.
Remember the “cha-cha” controversy?

The next step is implementation. The key role in this process is played by the civil
service bureaucracy which is responsible for executing the policies and programs of
the government, with the Executive and Congress performing a vital oversight role.
Implementation is crucial to the success of policy. As it’s often said, there’s a long
road between intentions and actual accomplishments. ‘Good’ policies may suffer
from faulty implementation. On the other hand, the implementation process may
open the doors for improving an otherwise poorly designed policy.

How do we know if a particular policy is effective or not or its intended results

were achieved? For instance, how do we know if the government policy of
providing free elementary and high school education is effective if the results are
not evaluated? Has enrollment, for instance, among the targeted groups improved
over a specified time period? What factors could explain if no marked
improvements are registered? Were there consequences that were not considered
when the policy was made?

This is the concern of evaluation, the last step in the policy process. It’s usually the
executive department that calls for evaluation. To ensure objectivity, professional
groups from the outside are commissioned to conduct the evaluation study.
Sophisticated social science techniques are normally used when conducting a
formal evaluation. Reactions and comments can also be considered a form of
evaluation but these are rather informal.

The results of the evaluation may prompt policymakers to alter, modify, or adopt
complementary measures to strengthen a policy. Thus, if the evaluation found that a
sizable number of children don’t go to school because they have to help the family
earn a living, the government may have to consider other policy options. These
options may not even be directly related to education, but other substantive areas
like employment, agriculture, or social welfare.

Just one word about the policy cycle. While the process is sequential, it does not
mean that each step is completely separate or independent from the others.
Realistically speaking, these three stages have a considerable degree of overlaps
and occur in a more dynamic fashion. For instance, policies may be subject to fine-
tuning even as they are already being implemented. They can be modified or
revised or even be withdrawn as a result of evaluation. The recent nullification of
the oil deregulation law and the new efforts by some members of Congress to
formulate a new one in its place tells us, too, that policies are seldom carved in
stone. In practice, policies are continually revised or adjusted in what Lindbloom
calls “incremental” fashion.
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SAQ 1
What, in your opinion, can explain such a characteristic of public policy?
Can you give one reason why policies don’t remain unchanged?

ASAQ 1
acceptable to those affected by them, or to move them in the desired direction.
concerning established policies. They could make small or big changes to make them more
who come in may have a different interpretation or view or even ideological biases
government, involved in the making of policy changes from time to time. The new players
One significant reason, is that the configuration of actors, within and outside

There are, of course, other reasons that you can cite. Apart from the political
configuration, the socio-economic conditions are strong factors why policies don’t
remain as they were originally formulated. These factors are very influential in
shaping public policy.

Both the political and socio-economic systems form part of the environment of
policymaking. The physical characteristics of the nation, e.g., natural resources,
demography, are also parts of the environment that impinge on the process of
formulating policies (Anderson, 1975).

There are other environmental factors that affect a country’s policymaking. I’m
referring to the influences that the external (as opposed to the environmental
factors internal to the country) environment presents. These influences can be
exerted by foreign governments, international organizations like the UN, world
trade bodies and agreements such as the GATT, and financial institutions like the
International Monetary Fund and World Bank. As you and I know, the influence
(others call it interference) of these external factors on domestic crucial policy
areas like taxation, trade and industry, agriculture, to name a few, is considerably
great enough to determine a nation’s fate and the life of its citizens.

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PUBLIC POLICY IN THE PHILIPPINES

We have somehow integrated some aspects of Philippine policymaking in the
preceding discussion. In this section, we will explore further some salient issues
in policymaking in the Philippines. You will find the material for our discussion
in the Ocampo and Guno references.

As we said earlier, government does many things. It regulates behavior, provides

public services, collects taxes, redistributes wealth, and so on, through the policies
it makes and implements. The policies government produces are more or less
determined by the role that a particular political regime or administration has
ascribed to itself. For instance, is the administration pro-poor? Is it pro-social
welfare? Is attracting foreign investments high on its list? Is it pro-
industrialization? Is it anti-abortion? The stance of the government on these
concerns will influence its policy thrust and priorities. In a broad sense, the policy
agenda of any government, or for that matter, the political regime, is linked to
how it defines its role in a given time and situation.

This is a crucial issue raised in the Ocampo reading material. In the context of
Philippine realities, particularly with respect to existing social and economic
conditions, what do you think is the proper role that our national government
should adopt? What kind of development should we pursue? Should we have
more of an interventionist or steering government? Should government give the
private sector the upper hand in national economic development? These are
fundamental issues that bear on the content and direction of our national policies
that consequently will impact on the lives of millions of Filipinos.

We also discussed that policymaking is influenced not only by the country’s

environment but also by external factors such as foreign governments,
international agencies, and other multilateral international bodies, groups, and
institutions. Their influence bears not only on the policies adopted but also on the
methods or tools used. For instance, analyses of political and economic scholars
and the media have criticized how the IMF- prescribed fiscal and monetary
policies wrecked havoc on the national economy and development and everyday
life of the Filipinos. (See also the Ocampo reading material for a discussion on the
privatization policy and policy tools that we have copied abroad.)

In an analysis of the process of formulating and implementing the Generics Act of

1988, Guno showed how a foreign business group subtly threatened the
government about the consequences on the economy and employment if the latter
were to push the passage of the law regulating the pharmaceutical industry in the
country. There were also pressures coming from the private medical profession
and drug industry, with the former elevating the issue to the Supreme Court
(Guno, 1991).

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The Guno case study provides you with enough details to appreciate the dynamics
of the making of a policy, in this case, drug policy within the Philippine context
and the pressures surrounding the process of formulating and implementing it.
Read it. Then, try to answer the questions below. The questions are meant to
encourage you to relate the theoretical points we have raised here to a factual
situation.

SAQ 2
What major public problem was being addressed by the policy?

ASAQ 2
important elements in preventive and curative health.
costs of drugs and pharmaceuticals (among other factors, I believe) which are
poor being deprived of their right to health because they cannot afford the high
quality medicines at affordable price. This is linked to a fundamental issue of the
As described in the case, there was need to make available to the poor people

As you think further about this SAQ, you’ll realize that problems can be defined
hierarchically and that, truly, there are various angles from which you can define
them.

The foregoing discussion alerts you to the possibility that after going through the
arduous task of formulating the best possible course of action, it will be found
later that the policy adopted was not appropriate simply because the issue was not
fully clarified and defined. It’s much like applying the wrong medicine to an

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illness. Alternatively, you can say that there was nothing wrong with the
medication but the diagnosis of the illness was erroneous.

SAQ 3
Can you identify the leading actors in the formulation of the Generics Act?

ASAQ 3
the pharmaceutical companies and the medical profession, on the other.
Generally speaking, the protagonists are the government, on one side, and

We can, however, pinpoint that it’s the Department of Health, on the government
side, that had the crucial role in pushing the National Drug Policy prepared by the
executive department to be enacted by Congress into a law. The enactment of the
Generics Act was preceded by stages of consultation process where participants
from various groups and institutions from both sides of the issue contributed their
ideas into the making of the national policy.

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REFERENCES

Anderson, James E. Public Policy-Making. New York: Praeger Publishers, Inc.,

1975.
Dye, Thomas R. Understanding Public Policy. Englewood Cliffs, New Jersey:
Prentice Hall, 1995.
Nicolaidis, Nicholas G. “Policy and Policy-Making: An Empirical Analysis.”
International Review of Administrative Sciences, 29(4), 1963.
Nigro, Felix A. Lloyd G. Nigro. Modern Public Administration. New York:
Harper and Row Publishers, 1989.

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8
Organization and
Management

INTRODUCTION
In this module, we will focus on organization and management. We will discuss
the nature of organization and management in the public sector, organization
studies, and then relate these to the Philippine setting.

OBJECTIVES

It is expected that at the end of Module 11, you will be able to:

1. expound upon the nature of organization and management;

2. ascertain approaches and types of organization studies; and
3. relate local O and M studies to Philippine context.

READING

Reyes, Danilo. “Life Begins at Forty: An Inquiry on Administrative Theory in the

Philippines and the Structure of Scientific Revelations” (See Module 3 Readings)

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THE NATURE OF ORGANIZATION AND

MANAGEMENT
Organization and management are twin terms that exist side by side with each
other, each one needs and supports the other. Organizations will be inert and
useless if there is no management that will steer it; management will be hollow
and meaningless if there’s no organization to manage. In the real world of
administration, organization and management are essential elements through
which human actions and objectives are carried out and accomplished. In a
manner of speaking, organization and management become a means to an end.

Now, let’s look at each of these two terms.

Organization
Organizations are defined differently by different authors. There are, however,
certain essential elements that can be discerned from them. According to Kast
(1974), organizations are goal-oriented, psychosocial systems, technological
systems, and an integration of structured activities. In other words, organizations
consist of people who, more or less, share common objectives or purpose. The
behavior of the organization is directed towards the attainment of these
objectives. The members who comprise the organization work jointly in groups
and cooperate together in interdependent relationships. This suggests that
organizations structure and integrate their activities. Furthermore, organizations
use knowledge and techniques to accomplish their goals.

Organizations help us to accomplish goals which otherwise would be much more

difficult, if not impossible, to achieve on an individual basis. Organizations, like
public organizations, business enterprises, hospitals, church and military, serve
the multifarious and growing needs of the people and society. For most of us,
organizations provide a means of livelihood, a vehicle to develop our career, and
a source of pride. Others even develop a strong attachment and commitment to
their organization that they’d say they are ‘married’ to their jobs there.

Organizations can be formal or informal. Formal organizations are “a system of

coordinated activities of a group of people working cooperatively toward a
common goal under authority and leadership” (Scott and Mitchell as cited in
Nigro 1989). Informal organizations, while they exist side by side with formal
ones, are “undocumented and officially unrecognized relationships between
members of an organization that inevitably emerge out of the personal and group
needs of employees” (Stoner and Freeman, 1989). They are, as described by
Herbert A. Simon, “the interpersonal relationships in the organization that affect
decisions within but either are omitted from the formal scheme or are not
consistent with it” (cited in Stoner and Freeman, 1989).

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Government relies on formal organizations, more popularly known as bureaucracy,

to carry out its functions and perform its role in society. Much of government
activities are carried out by these organizations which are of varying sizes and
functions, scattered all over the country, but all bound by a common mission and
purpose - that is, to protect and promote the welfare of the people. The familiar usage
of bureaucracy has become associated with and often interchanged with government.

In the Philippines, you can cite as examples of organization, the Department of

Social Welfare and Development which is responsible for planning and
implementing social welfare programs, the Philippine National Police for
maintaining security, peace and order, the local government units and their offices
for the delivery of basic health services, the legislature for enacting laws, and so on.

Let us now, in turn, consider the other half of the twins.

Management
Management, on the other hand, involves the coordination of human and material
resources toward the attainment of organizational’s goals (Kast, 1974). In any
organization, absolute harmony is hard to attain and, perhaps, unrealistically
achievable. What is more realistically bound to happen is for some conflict to arise.
Thus, it is the task of management to integrate the varied elements, be these
cooperative or conflictive, into a complete organizational undertaking.

Managers - people who are responsible for integrating, coordinating, and directing
activities of others - then have to bring together the organization staff, money,
materials, time and space into an integrated and effective system to achieve
organizational objective. Managers get things done by working with people and
physical resources to realize the goals of the organization; they coordinate and
integrate the work and activities of others (Kast, 1974).

Because most organizations work in a larger environment where other organizations,

institutions, groups of people, demands, pressures, changes, developments, and so
on, exist, it behooves the organizations and their managers to relate with the external
environment if they have to be effective and assure their existence and relevance.

SAQ 1
From our discussion above, can you identify certain elements of management?

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ASAQ 1
Management, according to Kast, has the following elements: 1) toward
objectives, 2) through people, 3) via techniques, and 4) in an organization.

In short, management is getting the tasks done through people and techniques
toward the attainment of objective within the organizational setting.

Management is also construed as a process consisting of the following managerial

functions: planning, organizing, leading, and controlling. You can say that this is
the condensed version of the administrative principles and functions enunciated
by Fayol, Gulick and Urlick which we discussed in Module 4.

Management books define these processes thus (Stoner and Freeman, 1989):

Planning is the process of establishing objectives and appropriate

courses of action before taking action. Managers think through
these goals and actions in advance.

Organizing means arranging an organization’s structure and

coordinating its managerial practices and use of its resources to
attain its goals. It is the manager’s job to integrate and coordinate
the resources and work of the organization so that the organization
becomes effective in accomplishing its goals.

Leading is the process of directing and inspiring the personnel to

perform their functions. Managers have to guide, influence, and
motivate their subordinates to do their job well. Keeping a
conducive atmosphere can motivate the staff to do their best.

Controlling refers to the process of monitoring actual

organizational activities to see to it that these conform to the
planned activities and to institute corrections if there are any flaws
or deviations. This requires managers to consistently ensure that
the organization is moving toward its objectives.

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Organization and Management in the Public Sector

Organization and management in the public sector may share many similarities
with those in the private setting. For instance, both practice division of labor, have
an internal organization structure, recruit personnel, give direction and assign
tasks to employees, etc.

But as we discussed in Module 1, there are certain major differences between

public and private administration. These differences, or reasons for differences,
would also explain why organization and management in government would
differ from the private. For instance, did you know that the organizational mission
and purpose of public organizations are officially defined by Congress in the 1987
Administrative Code? That major reorganization of the bureaucracy and national
agency budgetary decisions requires approval of the Congress? That public
organizations are more subject to social criticisms and public opinion, more often
harsh and unrelenting, which they can’t just shirk from, than private organizations
and managers?

Such work environment present challenges that will require public managers and
the organizations that they manage to respond in a unique way that combines all
the resources at their disposal, be these technological, organizational, mental, and
emotional/attitudinal. These challenges may not be present in the private sector.

Organization and Management Techniques

There are some techniques or methods which can help organizations operate more
effectively. Just to give you an idea about these techniques, I’ll briefly mention
two of these that are more familiar or we often hear about.

Organization Development (OD). Organizational development, OD for short,

is an approach to planned organizational change. It is a long-term and, oftentimes,
complicated effort to bring the organization to a higher level of functioning and,
at the same time, improve the performance and sense of satisfaction of the
members of organization. While OD includes structural and technological
changes, its main focus is on changing people and the nature and quality of their
working relationships, in short, the organizational culture. To achieve this, OD
zeroes in on improving the problem-solving and self-renewal processes of the
organization. Problem-solving process refers to the methods by which
organizations deal with problems and situations they face. Renewal process
allows managers to adjust to environmental changes by adapting their problem-
solving style and goals in a way that will be most suitable to given situations.
Because organizational development involves the whole organization, support of
top management is essential. Another way of saying this is that OD can only take
place with the blessings of the top hierarchy or high-ranking officials in the
organization (Stoner and Freeman, 1989).
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Management and Information System (MIS). Management information

system, or MIS, is computer-based information system that provides accurate and
timely information to those needing them. MIS is highly important for the
effective performance of the managerial functions. MIS facilitates planning,
decision-making and control, and enables the organization to carry out these
functions more effectively and efficiently (Stoner and Freeman, 1989). It is not
surprising that with the increasing sophistication of computer technology today,
newer systems that can aid public managers in their job will be developed.

SOME WORDS ABOUT ORGANIZATION AND

MANAGEMENT STUDIES
As a field of study, public administration has always been concerned with
improving our understanding of public organizations, commonly known as
bureaucracy, and their effective management. Because much of government
activities are carried out by the bureaucracy, it is important to investigate how
these public organizations work and operate. The knowledge gained can help
those working in government manage their agencies more effectively.

I think that the interest in studying the organization and management of public
organizations and institutions will not wane. Government has always relied upon
its agencies and institutions to carry out its activities and the concern for
improving government will undoubtedly involve looking into how these
organizations function, their interrelationships with each other and the external
environment.

In the early years of public administration study, various concepts or theories

about organizations and principles of management have been advanced by
scholars in their study of organizations. But newer ways of thinking about
organizations and management came about as a result of developments in the
human relations and behavioral sciences and, later on, by studies promoting the
integrative frameworks. We discussed these in Module 4. It’ll be helpful if you go
back to refresh your memory about these models.

Public administration studies on organization and management, O and M for

short, varied in their approaches and focus. Historically speaking, the early O and
M studies in the West, particularly the United States, focused on the formal
structures, functions, and processes of the administrative organizations of
government. The focus on the internal aspects of public administrative system and
the concomitant values of efficiency, economy, and effectiveness with which the
organizations function and operate is characteristic of the traditional public
administration. We discussed this in Module 2.

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You will recall that this approach coincides with the administrative management
movement in the field of public administration. The administrative management
models were the most influential during this period. Thus, questions concerning
the efficiency, effectiveness, and economy of managing organizations were
approached using the bureaucratic model of organization and the ideas
propounded by management school or administrative principles. If you notice,
these are the classical theories of administration which we discussed in Module 4.
O and M studies focused on structural concerns such as hierarchy, line of
authority, division of labor, staff-line functions, span of control, records keeping,
unity of command, and the like.

Subsequent studies in organization and management branched out to other

concerns, using the behavioral perspective or the human relations model. These
studies focused less on the formal structure and more on the human dimension
and informal groups and interactions within organizations.

Other approaches to studying organizational phenomena tried to integrate the

elements of classical and neoclassical theories such as the open-systems,
decisionmaking, and industrial humanism models. We discussed these models in
Module 4.

In general, three major approaches to O and M studies can be identified. As a

form of review, try to answer the following SAQ. If you can recall what we
discussed in Module 4, then you can easily answer the following question.

SAQ 2
1) Under what organization theory will you categorize the organization
studies that emphasized human relations?

2) Can you name and explain the three approaches to the study of
organization and management?

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ASAQ 2
1. Neoclassical theory.

2. These approaches are the classical, neoclassical and integrative models.

The integrative models are sometimes called modern view. You can go
back to Module 4 for the explanation of these models.

Other works on organization have been marked by their quest for innovative
approaches ( e.g., more flexible organizational forms, more participative
processes, and more client-oriented) in managing organizations as well as concern
for the impact of government policies and activities on the people and society.
These are emphasized, for example, by the New PA.

There are organization studies that analyze and explain certain organizational
phenomena using a particular theoretical premise or approach. We discussed these
approaches in Module 4. These studies could validate or contradict existing
thinking about organizations or lead to new theoretical constructs and worldviews
about them. Such studies advance our knowledge and understanding of the
nature and dynamics of organizations and provide public administrators with
some theoretical guides or handles on how to manage and work with
organizations. In social science parlance, this type of study is called basic
studies or research, as exemplified by Weber’s work on bureaucracy and Simon’s
on administrative decisionmaking.

Other organization studies are more prescriptive in character in that they

recommend specific and concrete measures to improve organizational
performance. These studies deal with practical administrative issues and offer
solutions to solve them. These studies are what you call applied studies or
research and are sometimes referred to as management studies.

A popular example of applied organization studies that we can cite is the

reorganization of the bureaucracy. A study of the existing structure, functions, and
procedures is conducted with the view to identifying concrete measures that will
improve the conduct of government and public affairs.

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SAQ 3
How will you relate the two major types of O and M studies to public
administration study and practice?

ASAQ 3
studies aimed at improving the practice of public administration.
On the other hand, the applied O and M researches or management
particularly in setting the intellectual foundations of the discipline.
tremendously to the development of public administration study
The basic studies in organization and management contributed

O AND M STUDIES IN THE PHILIPPINES

Getting their impetus from the twin and intertwined events of the formal
introduction of public administration study and the establishment of the Institute,
now College, of Public Administration in the Philippines in 1952, studies on the
organization and management of Philippine government began on a descriptive
and prescriptive note. This was because, according to Reyes (1995), of the
urgency to address exigent administrative concerns confronting the government
during the years following WWII. This was the period when the Philippine
government faced tremendous administrative, political, economic, and social
problems and issues.

Generally speaking, the studies made by the Institute during those years were
“characteristically inward-oriented” and focused on organization structures,
functions, processes, and procedures, concluded by recommendations to apply
management tools and techniques that have been employed in the United States.
The studies dealt with wide ranging practical issues concerning internal structure,
building space, work simplification, salary scale, employee morale, line of
authority, line and staff functions, and so on.

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According to Reyes, the focus on organization and administrative processes and

procedures would continue on until the 1970s. This theme dominated the applied
studies conducted by the Institute.

Even as the researches continued to adhere to this “inward-looking orientation,”

other patterns emerged. Research investigations already included the local
governments - their organizations, functions, and management - and not just
concentrating on the national government offices and institutions. Studies also
began to cover the relations between the bureaucracy and the public at large, as
exemplified by the researches on public accountability and program
implementation. This “outward-looking orientation” and interest on social
relevance of public administration became more pronounced in the studies
following the declaration of martial law and onwards to the ‘80s (Reyes, 1995).

What I have done above is to give you a brief account of the characteristics of O
and M studies in the Philippines, primarily of those that were carried out by the
College of Public Administration starting in 1952. You may feel that you have
already encountered this narrative. That’s correct because Reyes, whose article is
the main source for this overview, is a reading in Module 3. I, therefore, suggest
that you read again his paper “Life Begins at Forty” to reinforce your
understanding of the topic. His paper provides a comprehensive review of major
studies conducted by the CPA since its inception until the late ‘80s.

After reading Reyes, try to answer the following SAQ. Before answering the
question, it may also be helpful if you recall what we discussed in Module 3
concerning the societal and governmental conditions of the Philippines after it
gained its independence in 1946.

SAQ 4
How will you relate the O and M studies to the context of the Philippines
during the postwar years?

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ASAQ 4
We can say that there is discernible relation between the trends of O and M
studies and the context of the Philippines during the postwar years. The
Philippine government then faced the gargantuan task of administering the
development of a country ravaged by war. The national government had to
rely on an efficient and effective bureaucracy to accomplish such a task.

Many of the organization studies conducted by the CPA that time precisely
fitted into the scheme of upgrading the administrative capability of the
government. They were a direct and relevant response to the need and call
for efficient, economical, and effective government. These studies were of
the applied type and addressed practical problems in internal
administrative structure, functions, and processes. They also offered
concrete measures to improve the system. In a sense, the studies filled the
role of providing the government with ideas and solutions to improve
government operations and performance and, thus, make it more capable in
accomplishing its task of nationbuilding and national development.

I think it will be instructive if you extend the analysis of relations between the
literature and context beyond this period.

Thus far, it is apparent that the bulk of organization studies before were more
oriented towards dealing with practical issues in Philippine public administration
than building theoretical knowledge about public organizations. This much was
noted by Cariño when she reviewed the researches undertaken by the College.
According to her, as cited by Reyes, a little less than three percent of studies made
between 1952 and 1972 could be considered as theoretical works. Reyes also
reiterates this observation in his article.

What can explain this? Without having to say here that one type of study is better
than the other, can you posit some conjectures or hypotheses as to the reasons
why this is so?

There are probably different factors that can be cited; these can range from the
inclination (academic or otherwise) of the persons who are doing the studies, to
the presence of pressing issues and problems in administration requiring practical
solutions, to the fact that we can easily access the theoretical works of foreign
scholars, and so on.

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For the Filipino public administration scholars, the challenge probably lies not
only in discovering new frontiers in the discipline but, more importantly perhaps,
in defining a public administration model that brings in the Filipino perspective
and the realism of Philippine experience. If you recall in Module 3, public
administration study in the Philippines took after the models developed in the
West. Hence, the call for indigenization made by Filipino scholars many years
ago. Our discussion and readings in Module 3 tackled the matter of indigenization
of the field. This topic is also tackled by Tapales and Cariño in separate articles.
If you wish to pursue this topic, I list below their titles. You may wish to read
them on your own free will. They are available in your campus library.

Cariño, Ledivina. “Education for Public Administration in Asia and Pacific:

Woodrow Wilson in a Different Time and Place”,. in L.V. Cariño, (ed), Public
Administration in Asia and the Pacific- Survey of Teaching and Research in
Twelve Countries. Social and Human Sciences in Asia and the Pacific.
RUSHSAP Series on Occasional Monographs and Papers No. 33. Bangkok:
UNESCO, 1991.

Tapales, Proserpina D. “New Challenges to Teaching and Research in Public

Administration.” PJPA. 32(1&2) (January-April): 1-6, 1988.

REFERENCES
Kast, Fremont E. and James E. Rosenzweig. Organization and Management: A
Systems Approach. New York: McGraw-Hill, 1974.

Nigro, Felix A. and Lloyd G. Nigro. Modern Public Administration. New York:
Harper and Row Publishers, 1989.

Stoner, James A. and R. Edward Freeman. Management. New Jersey: Prentice

Hall, 1989.

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9
Personnel Administration

INTRODUCTION
A full treatment of public personnel administration is given in PM 221. So in this
module we will just have an overview of public personnel administration and, to a
certain extent, address some key concerns and issues in this area within the
Philippine context.

OBJECTIVES

After going through the module, it is expected that you will be able to:

1. describe the general attributes of personnel function in the public sector; and

2. discuss some important issues in public personnel administration in the

Philippines.

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IMPORTANCE AND SCOPE OF PERSONNEL

ADMINISTRATION
The personnel function is considered a pillar in public administration, for obvious
reasons. The personnel is a basic resource of government. They are entrusted with
the responsibility of carrying out the tasks of government, of providing services to
the public. Even with the availability of advanced technologies, governments will
continue to rely on the minds, talents, and skills of their staff to achieve their
avowed mission and goals. Considering our culture wherein we give high
premium on interpersonal relations, most of us would probably prefer to face a
person than a computer or a robot when transacting business with government.

Wendell L. French defines personnel management as the “recruitment, selection,

development, utilization of, and accommodation to human resources by
organizations.” This definition captures a wide range of the personnel activities.
Matters like recruiting and selecting the most qualified and high potential people,
testing, putting the right person to the right job, promoting the deserving
employee, upgrading personnel competence, assuring a continuous supply of high
calibre managers, maintaining high morale, providing a fair and just
compensation, and the like, are all important considerations in an effective
personnel administration. If these are not given the serious attention that they
deserve, you can expect that the operations of government will suffer a setback.

The proficient performance of organizational functions like planning, accounting,

and budgeting are dependent on having an effective personnel system. And the
success or failure of government programs depends to a great extent on the quality
of performance and services rendered by the public personnel. For how can
government function well if the people it recruits are not qualified for the job?
How can you expect the employees to give their best in their work if they are not
properly motivated? How can public agencies plan and embark on programs if
they have no idea or reliable measure about the existing competencies of their
staff, or if they have the right number of people at all?

You probably realize how important it is then that the personnel function be
carried out well, in the same way that we expect the accounting or budgeting
functions to be performed with utmost care, integrity, and efficiency. By the way,
we will use the terms personnel management and personnel administration
interchangeably in this module.

When an outsider comes to your office to gather information about your agency
personnel management practices, do you or your coworker, as a matter of habit,
direct the person to your personnel office or department? It is not surprising if you
answer yes to the question.

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In practice, because most organizations, be they public or private, have created a

separate unit to handle the personnel function, it’s often thought that personnel
administration is singularly the responsibility of that unit and the personnel
manager or personnel administrator. This view likewise suggests that the other
managers or supervisors within the agency need not be equally concerned with
personnel management. A variant of this thinking is the view of the personnel
function in terms of routine administrative tasks like processing of appointment or
promotion papers, keeping track of employee absences or leave credits, filing
personnel records, and the like.

This common but rather flawed or limited perception of personnel administration

runs counter to the broader meaning of personnel administration that we have
discussed above. And, on the contrary, as Hays and Reeves contend, the personnel
function is central to the job of every public manager . It permeates the whole
organization and involves every manager(Hayes and Reeves, 1984 ). Making the
staff consistently productive, efficient, committed, and motivated is a task of and a
challenge not only to the unit or persons directly responsible for running the
personnel system but to every public manager or administrator. For, in the long
run, it is they who are in constant association and communication with their staff.

PERSONNEL ADMINISTRATION IN THE

PUBLIC SECTOR
The personnel function in the public and private sectors have similar activities:
they recruit, select, motivate, train, evaluate performance, promote, discipline and,
when necessary, terminate staff. But beyond these general similarities, the
personnel function in the government is significantly different from that of the
private.

Hayes and Reeves cite two reasons. One reason is the nature of government work;
the other is the environment (Hayes and Reeves, 1984 ). You can go back to
Module 1 and review the characteristics or nature of government.

On the nature of government work: The government operates to serve and

promote the public interest. It pursues wide-ranging public goals that are quite
broad, if not vague. Consequently, the measures of performance used are usually
broad and, you’re right, vague. This character of government bears little
relationship, according to the authors, to the government agencies’ efficiency in
utilizing its human resources. There is no compelling incentive, for instance, to
keep the personnel costs down. Unlike in the private sector where the measure of
performance, which is profit, is distinctly clear, keeping the personnel cost at a
minimum translates into bigger profit.

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There are services needed by the general public which the private sector
businesses presumably do not find profitable to engage in. So, government steps
in to provide those services regardless of whether the citizens who benefit from
them can pay or not.

This monopolistic character of government creates distinct occupations and

principally provides the job opportunities for people belonging to those
occupations, as in the case of police and fire officers, air traffic control experts,
foresters, foreign service officers, and others. The services provided by the people
in these professions are essential to the security and survival of the population and
society. These professions are also unique to the government.

On the environment of the public personnel administration: Various groups and

institutions bear on personnel function in the public sector. They are influential in
shaping personnel policies and practices. What do you think are these groups and
institutions?

The list can be long. Hayes and Reeves identified some. There are the political
executives, legislature, study commissions or committees, civil service
commissions, other government agencies, citizens groups, and others. In the
Philippines, we can say that the same sources of influence exist. However, it’s
difficult to ascertain the degree of influence that each one exerts.

According to the authors, a major consequence of exposure to many

environmental influences is that the personnel system is expected to respond to
diverse demands and expectations of a pluralistic society. These demands range
from the notion that government should provide public employment (government
jobs), public employment is a panacea to a social problem or a means to stimulate
or control economic activities. When you read Sto. Tomas, you will again
encounter the idea that government fills the role of employer.

There are also the public expectations of efficient delivery of quality services and
upright conduct of public employees. These demands pose certain standards and
restrictions that the public personnel administration must adhere to if it wishes to
continue receiving public support. For instance, where personal behavior is
concerned, the society expects more from the public employees than they do, if at
all, with the private employees. Corruption, for example, is not peculiar to
government but we are quick to condemn it when we hear so much as a whisper
about it happening in government, but not a whimper when it happens in the
private sector. We have, in the Philippines, a code for conduct and ethical
behavior that every public officer and employee must observe. This code which
was passed by Congress in 1991 is known as Republic Act 6713. You can find a
copy of the Code in the Learning Center.

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SAQ
Can you cite from the Philippine context an example of how Congress
affects the personnel system?

ASAQ
local government unit, he or she will receive the rate for Clerk 1.
Clerk 1 appointment works, whether in a national government agency in Manila or in a remote
uniform salary grades and rates for all government employees. So, wherever a person with a
Law that was enacted by Congress and approved into law by the President. The law prescribes
rates of their employees. They have to follow what is provided in the Salary Standardization
Government agencies and local government units cannot decide on their own the salary

This is not the only answer to the question. You can think of other examples. As a
matter of fact, you can also cite R.A. 6713.

Let me add, though, that when the SSL was first implemented in 1989, not all
local government units could cope with the prescribed rates. As you know, local
governments have varying financial capacities; their capability to follow the SSL
rates depends on their income. You know from Module 11 that many
municipalities belong to fifth class. In consideration of this factor,
implementation of SSL among local governments was done gradually, according
to their income classification. So, for example, if a local government is classified
as 6th class (that’s the lowest), the implementation could probably have started
with 70% of the prescribed rates, then 85% in the following year, and so on, until
they have reached the full rates. I remember one municipal mayor from the South
telling me several years ago, quite proudly, that they have already fully
implemented the SSL.

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With the recent upgrading of the SSL, it’s again possible that some local
governments will not be able to implement it fully right away. This issue is not
much of a problem in national government agencies for their budget comes from
the national government. Local governments have to generate their own income.

You can consider the issue of salary as a major difference between public and
private personnel administration. Except for some prescribed government
regulations that they have to follow, e.g., minimum wage law, business
enterprises and corporations have the flexibility to determine salaries and other
benefits and emoluments in their respective firms. It is acknowledged that this
gives them undue advantage over the public sector in attracting highly qualified
applicants because they can offer very competitive and attractive packages. This
flexibility establishes another characteristic of private personnel administration.
There are no uniform rates that are applied to businesses, even perhaps for
comparable positions. Each one may be said to have a distinct salary scale and
even policies relating to how such a scale shall be applied.

THE PHILIPPINE CENTRAL PERSONNEL AGENCY

In the Philippines, the responsibility for government personnel administration is
lodged with the Civil Service Commission (CSC). The Commission is a
constitutional body and being such, is endowed with the autonomy and
independence to establish, maintain, and promote a professional civil service
based on merit and free from political interference. As the central personnel
agency, the Commission performs policy, regulatory, and quasi-judicial functions.
It is mandated to establish a career service, adopt measures to promote morale,
integrity, responsiveness, and courtesy in the civil service, strengthen the merit
and reward system, integrate all human resource development programs for all
levels and ranks, and institutionalize a work environment that endengers public
accountability.

The civil service in the country is anchored on the merit system. The merit system
embraces the entire career service, national and local government. It ensures that
the people recruited into the government service and become promoted are
qualified and competent for the job, thereby assuring an efficient, effective, and
professional pool of civil servants. We have in government what is called the
qualification standards which set the minimum criteria or qualification
requirements that should be observed in filling up positions, whether by original
appointment or promotion. There are also standards to be followed in promoting
personnel. Setting all these criteria and ensuring that they are followed remain the
responsibility of the Commission. The Commission also administers the
competitive examinations for entrance into the public service. Passing such tests
makes one eligible for the career service.

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National government agencies and local government units and other

instrumentalities of the government are individually responsible for recruiting,
promoting, training, motivating, and disciplining their staff. But these activities
have to be consistent with the standards, policies, and rules established by the
Civil Service Commission. And in the case of appointment and promotion, these
actions have to be confirmed or attested by the latter.

SOME ISSUES IN PERSONNEL ADMINISTRATION

One aspect of the public service bureaucracy that continues to attract criticism is
its perceived hugeness. The size of the government is always an object of any
organization reform, with the view to “trimming its fat,” so to speak. These
criticisms are usually lumped together with complaints about the inefficiency and
costliness of maintaining a big government.

The issue of size is linked to the image of government as an employer of last

resort. Truly, government is the single largest employer in the country, with more
than 1.4 million personnel in its payroll as of 1993. You’ll get this figure from the
Sto. Tomas reference. That image is compounded by perceptions that those who
join the government are not really the best in the market. Do you agree with this
hypothesis?

Whether these perceptions are valid or not, it remains a challenge to government

to attract and recruit not just the qualified, for there may be many who are
qualified, but the best in the field. In a positive light, though, Sto. Tomas noted
that our civil service is becoming more professional than before. The seeming
weakness of government to attract the best people is linked to another personnel
issue which concerns the competitiveness of government rates and benefits, which
is even exacerbated by the general negative impressions of government. But we’ll
discuss this later.

Considering the size of our population that has to be served by the government,
you may be surprised that the size of our civil service is not that big compared
with our Asian neighbors (Mangahas, 1993) or Canada (Sto. Tomas, 1995).

Even as we are concerned with the size of government, because it means cost to
taxpayers like you and me, we are equally concerned, and perhaps much more so,
with the quality of services rendered by the civil servants. As Sto. Tomas said,
even if our bureaucracy is not that big, the pressure to reduce the number of
personnel will remain if services are not improved. You perhaps will agree that it
is better to maintain a lean and efficient civil service than a big but inept one.

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Apart from size and quality, there are other nagging issues identified by Sto.
Tomas (1995). For example, our bureaucracy remains centralized. Majority of
government personnel are deployed to the national government. This could be a
factor why direct service delivery is not efficient. Another issue is the continued
practice of political patronage particularly in local governments.

The importance of providing not just a fair and equitable salary, but realistic rates
that will allow one a quality way of living, particularly in these hard times, cannot
be overemphasized. It has great implications on the ability of the government to
attract and keep the best people. The issue of salary is real, notwithstanding the
claims that money cannot motivate “good” performance. Indeed, how can
government attract and hire those with best qualifications and high potentials if
they can’t offer competitive rates? Some state universities, for instance, whose
salary rates are determined by Congress, just like any regular government agency,
admit that they are losing their faculty at an alarming rate to the private sector, not
the least reasons for which are better financial and other opportunities available
there.

But upgrading salary levels and other emoluments is also a ticklish issue in
government. If the size of bureaucracy is big, tremendous amounts of funds have
to be generated to support salary increases. As pointed out by Sto. Tomas (1995),
the huge number of teachers prevented the granting of salary increases to them.
Inevitably, government will depend on taxes and other revenues to support salary
increases. But taxpayers can’t readily agree to tax hike to finance government
expenditures, especially when the public sees that it gets poor services in return.

Now, granting that indeed salary level is one big consideration in attracting
prospective job applicants, how can government truly encourage them if it can’t
offer competitive rates? For if it does, it could mean larger public expenditures
which, consequently, will have to be borne by the public. You can see that salary
determination in the public sector is not as simple as one may think. In the private
sector, management can pass on the costs to consumers. But with government,
there are many ramifications involving the public interest that have to be taken
into account.

While salaries are adjusted from time to time, these are not in close pace with the
ever increasing prices of goods and commodities. To augment their income, many
government employees engage in some form of enterprise whether during office
hours or breaks so that they can bring home a few more pesos at the end of the
day. Disturbing as the sight may be, such activities have apparently been tolerated,
implying a tacit acknowledgment of the insufficiency of government salary to
provide for the needs of the employees and their families. One can only surmise
about the possible consequences of these activities on the speed and quality of
services rendered by the employees concerned.

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There is also the issue concerning security of tenure. This feature of the Philippine
civil service ensures job stability and protects employees from arbitrary dismissal
. It is granted to employees who have the qualifications and eligibility for the
position they are occupying. While the philosophy underlying security of tenure
cannot be questioned, it also breeds unwanted consequences. For instance, it is
said that security of tenure has become a cloak for those who have become
incompetent or ineffective in their job from being dismissed. So, these people stay
on and continue to be paid their salary despite their lackluster performance. The
basic policy question in this regard is, what kind of tenure should the government
have? Some contend that tenure should be not be enjoyed as a lifetime (or for as
long as the person stays in service) privilege and that it should be given
periodically based on performance. What is your opinion on this?

You can see that the issues in personnel administration are closely intertwined
with one another, which makes this function even more complicated and complex
than we perhaps thought in the beginning. While it will be good attempt to deal
with each one separately, in the end, ‘good’ public managers will have to find a
balanced solution to the issues they face as they manage their staff.

ACTIVITY
Describe the attributes of the personnel system in your government agency
or any government office that you are familiar with. How close or far are
they in terms of what we discussed here. Are there any personnel issues that
you can identify? What gave rise to the issues?

REFERENCES
Hayes, Steven W. and T. Zane Reeves. (eds.) Personnel Management in the
Public Sector. Newton, Massachusetts: Allyn and Bacon, Inc., 1984.

Mangahas, Joel V. “A Study of Size, Growth and Rationalization of the

Bureaucracy.” PIPA, vol 37, no. 3, July 1993.

Sto. Tomas, Patricia P. “The Philippine Bureaucracy: A Question of Numbers” in

Cariño, Ledivina, (ed.) Conquering Politico-Administrative Frontiers: Essays
in Honor of Raul P. de Guzman, QC: CPA-UP Press, 1995.

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10
Fiscal Administration
INTRODUCTION
So far, we have discussed three areas in public administration - public policy,
organization and management, and personnel administration.

In this module, we will tackle another subject area which is fiscal administration.
Fiscal administration covers a wide range of topics and issues and these are
treated more fully in the PM 231 course. This module will give you some
general ideas about this important process and relate them to Philippine context.
Our basic references for this topic are the two articles written by Leonor M.
Briones.

OBJECTIVES

It is expected that after completing the module, you will be able to:
1. explain and relate concepts in fiscal administration; and
2. identify the implications of fiscal administration on the country and the
citizens.

READINGS

Briones, Leonor M. “Fiscal and Monetary Policies as Constraints to

Development” Paper submitted to KASARINLAN (Philippine Quarterly of
Third World Studies), June 1995.
Briones, Leonor M. “Financing Government: Issues and Dilemmas of an Aspiring
Tiger,” Paper read at the Orientation on Public Administration for ABS-CBN
Newscasters and Commentators conducted by ABS-CBN and U.P. College of
Public Administration, Sulo Hotel, November 5 and 12, 1994.
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WHAT IS PUBLIC FISCAL ADMINISTRATION?

In a broad sense, public fiscal administration embraces the formulation,
implementation, and evaluation of policies and decisions on taxation and revenue
administration; resource allocation, budgeting, and public expenditure; public
borrowings and debt management; and accounting and auditing (Briones, 1983).

Other definitions of fiscal administration, also called public finance, refer to it as

“the inflow and outflow of government” or branch of economics that deals with
the income and expenditures of government and their impact on the economy
(Briones, 1993).

As defined above, the scope of fiscal administration covers key issues affecting
government operations, the national economy and the life of the citizens: taxation,
public expenditures, borrowings, and accountability.

Central to these issues are the fiscal policies adopted by government to generate
resources through taxes and borrowings, and to use such resources to promote
public welfare. Fiscal policy is the mix of policies on taxes and revenue,
expenditure and budgeting, borrowing, and accountability. It is “one course of
action that a government follows to stabilize the national economy by adjusting
levels of spending and taxation” (Grolier Family Encyclopedia p. 293). Hence,
fiscal policies are decisions made by government concerning, for example: What
taxes will it impose to generate funds? On whom will the taxes be imposed? on
the businesses? landowners? importers? or on all citizens? What form of taxes
will be imposed? Direct or indirect? In terms of expenditures, what sector in
government will be given greater or lesser budget? social services? economic
development? defense? borrowings? So, you can see that the fiscal functions of
government ultimately affect the nation and the individual lives of its citizens.

If you want to ascertain the fiscal policies of the government, a good place to look
into is the national budget. The national budget represents the mix of fiscal
policies adopted by the government. How the budget will be financed (sources of
revenue), how it will be allocated (expenditures), and whether public borrowing
will be resorted to finance government programs - all these are reflective of the
fiscal policies of government.

Not only are the fiscal policies reflected in the budget. The budget is also a
statement of government priorities regarding the various services it provides to the
public, e.g., health, education, social welfare, public safety and protection,
transportation, and so on. More than just a technical document stating the
estimated revenues and expenditures of the government for a given fiscal year, the
budget speaks clearly of the political decisions made by the policymakers which,
ultimately, have great consequences on the nation and its people.

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ACTIVITY 1
Look at any General Appropriations Act. This is the national budget passed
by Congress every year. Examine its contents. Look for your agency there
or any agency that you are familiar with. How much did your office get
compared with the others? Can you identify the programs that the budget is
supporting? How much did debt servicing get in proportion to the other
items in the budget?

COMMENT
As mentioned earlier, the budget reflects the priorities of government. For
instance, you may have observed that government allocated more funds to certain
programs and projects, or agencies, than others. You perhaps can recall how
student activists during martial law severely criticized and lambasted the
government because of the relatively small amounts it allocated to education
compared to defense. And did you know that debt servicing constituted the
largest single expenditure of the government in several years?

ACTIVITY 2
Can you give an example, from your personal experience, of how fiscal
administration affects(ed) your life?

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COMMENT
There are infinite ways in which we can show how fiscal ad affects our life, from
birth to death, so to speak. When you were born, your parents secured a birth
certificate from the local civil registrar for you (or you won’t be legal). Your
parents paid a fee (non-tax revenue) to get that certificate. A death certificate is
also issued when a person dies. There’s also a fee that goes with the issuance.
Between these two dramatic points in our life, many things happen where the
impact of government fiscal policies is felt. One outstanding but lamentable
example is the foreign debt. The hugeness of our foreign debts is such that even
our children and our children’s children will carry the burden of paying these off.
Any oil price hike has reverberating effect on possibly every detail of our life,
from lights to transportation fare, gasoline that your cars consume, milk your
children drink, etc. What about the ‘sin taxes?’ Did it reduce the propensity to
smoke, for example, of people you know? That’s how pervasive fiscal
administration is.

Fiscal administration is a continuing activity which can be analytically delineated

into several stages: (1) formulation of fiscal policy; (2) taxation and revenue
administration; (3) expenditures and budgeting; (4) public borrowing; and
(5) accounting and auditing or, accountability, for short. This is also known as the
finance cycle. In practice, these processes are taking place simultaneously. So,
even as the government makes fiscal policy, at the same time, it collects taxes,
spends them, borrows from local or foreign sources, and accounts for what it has
collected and spent. Read Briones for further elaboration on this.

Different administrative agencies, constitutional offices and government officials

are involved in the various processes of fiscal administration, from policy
formulation to tax collection, budget preparation, enactment of budget
appropriation, implementing the budget, and ensuring that funds are spent for
public purposes and as officially specified.

Within the executive department, the key agencies in the formulation of fiscal
policies include the Department of Finance (DOF), Department of Budget (DBM),
National Economic and Development Authority (NEDA), and the Central Bank.
The DOF is the principal government agency responsible for revenue collection;
DBM prepares the national budget and releases allocation to various offices; the
Central Bank is the leading agency in monetary policies; and the NEDA is
responsible for the preparation of the national development plan. They constitute
the Development Budget Coordinating Committee which formulates the fiscal
measures upon which the national budget is based.

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You can say that it’s presence in the group is necessary to ensure consistency and harmony
between government plans and resources - that the programs of government, as these are
reflected in the national development plan, are financially secured through the fiscal measures
(e.g., taxation) adopted by the Committee. The national development plan will be
meaningless if not implemented; it can only be implemented when the funds for its
implementation are fixed in the national budget.
ASAQ
when it’s not a finance office like the three others?
Why do you think the NEDA is involved in the fiscal policy formulation
SAQ
directly on finance matters.
You can see that, except for NEDA, the functions of the other three offices bear
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Congress has a crucial role in the process for it has to approve the fiscal measures
devised by the executive branch. When it finally approves the national budget, for
example, it means that it agrees with the means by which the proposed budget will be
financed, e.g., through taxes alone or including borrowings.

A certain amount of the spadework in smoothening out possible sources of

disagreement and conflicts is done in the Legislative-Executive Development
Advisory Council, or LEDAC, which has a key role also in formulating fiscal
policies. It’s a consultative body principally composed of members coming from the
executive and legislative offices.

It serves as a venue and mechanism for cooperation and agreement on vital issues
requiring action and approval of both. This innovative mechanism was started in the
beginning of the Ramos administration.

LINGERING ISSUES IN FISCAL ADMINISTRATION

AND DEVELOPMENT
For this topic, I ask you to read the two articles of Briones. These deal directly with
the pestering and festering issues concerning government financial affairs and how
these impact on the national economy and development, our daily life, the nation’s,
and our children’s future.

We took up public policy in Module 7. You can see that these two readings will
further enhance your understanding of how public policies so powerfully influence
our life and the fate of our nation.

The ramifications of issues surrounding the fiscal policies and the finance cycle
processes and their implications on various aspects of national and private life are
discussed at length in the readings.

Referring again to Module 7, we discussed there that there are official and non-
official participants in the policy formulation process. I have also mentioned that
access and influence of non-official participants in the process will be greatly
determined by the power and resources available to or enjoyed by them. In fiscal
matters, policies are made by our top financial ‘honchos’ and, as mentioned in the
readings, in conformity with the stabilization and structural adjustment programs
prescribed by the IMF and multilateral institutions. Do you see the role of the
ordinary citizens in making such policies? At one time, if you recall, even Congress
was demanding that the Ramos administration make known the fiscal measures
under the structural adjustment programs that it was proposing to the IMF. When
you go to the bottomline of all of these, the ones who bear the brunt are the countless
people who are powerless to tilt the decisions more kindly in their direction. And
meanwhile, more people are more harshly affected by the burden of the external
prescriptions than others.
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Briones, thus, points that the citizens should demand that they be part of the
decisionmaking. We are, after all, living in a democracy where every person has a
right to be heard by the government. In the national development plan of the
Ramos administration, people empowerment is touted as a strategy by which the
administration’s vision and targets for the country will be achieved. How truly
this is faithfully operationalized remains to be seen.

The financial and currency turmoil that some Asian countries, including the
Philippines, are undergoing may require drastic measures on the part of the
government. As you guess, we will all be part of these measures, albeit, in the
downstream side. Although altruistically speaking, this can be a historic
opportunity for all of us to demonstrate nationalism. Look at how the South
Koreans voluntarily donated their personal gold jewelries to prop up the country’s
foreign reserves. Do you think the Filipinos can do the same? The perennial
skeptics among us will probably retort that they had nothing to do in the first
place with creating the problem and will in fact suffer it. So, let the government
solve its problem.

I don’t want to end our discussion on such a sad note. Perhaps, there will be many
among us who will rise to the challenge of helping our country weather the crisis.
The government will only have to sound the patriotic call.

ACTIVITY 3
If you were to give the highest allocation to three specific services, what would
be these services and why did you choose them? What would be the fiscal
constraints, in your opinion, that would make it difficult for these services to be
allocated the biggest share?

This activity is meant to encourage you to reflect on the ramifications and issues
surrounding the fiscal function.

REFERENCES

Briones, Leonor M. Philippine Public Fiscal Administration. Quezon City:

NCRP and COA, 1983.
Grolier Family Encyclopedia

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11
Local Government
INTRODUCTION
We conclude our discussion of the different subfields of public administration by
focusing on local government. Local government, as a distinct subfield, provides
the regional focus in public administration study. This is in recognition of the fact
that government activities, as response to a society that has increasingly become
complex and where human needs have become diverse, can no longer be carried
out by the national government alone. Local governments, as instrumentalities of
the state, have increasingly been relied upon by the national government in
providing goods and services to the people. Local governments are essentially
public administration in community settings and is, therefore, an important
subject matter of public administration study. In the Philippine context, its
significance is heightened because of the important changes in local government
brought about by the passage of the Local Government Code in 1991.

In this module, we will briefly discuss the concept of local government and then
focus on local governments in the Philippines for the remainder of the discussion.
We will also tackle the issue of political decentralization and the Local
Government Code.

A general understanding of the concept of local government can be found in the

Tapales reading. The reading also tackles the history and state of local
government in the Philippines and some general issues affecting it. A description
of local governments in the Philippines can also be found in the Panganiban
article.

In the Legaspi and Panganiban materials, the issues that have accompanied the
implementation of the Code are examined. In the Legaspi material, the results of
a study (which used the case study methodology) on the implementation of the
Code are discussed. These issues relate to the extent of devolution of services and
functions, appointment of local officials, exercise of regulatory powers, exercise
of taxing powers, and extent of NGO participation. The Panganiban material
examines the Code as a strategy of decentralization or devolution from the
perspective of two competing values, democracy and efficiency. .
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OBJECTIVES

After completing the module, you will be able to:

1. explain the concept of local governments; and
2. give an overview of Philippine local governments and the Local Government
Code in the context of decentralization.

READINGS

Tapales, Proserpina. "The Nature and State of Local Government" in Introduction

to Public Administration in the Philippines.

Legaspi, Perla. Summary and Conclusions (Ch. 5) in Legaspi (ed.),

Decentralization, Autonomy and the Local Government Code: The Challenge
of Implementation, vol. 1, QC: LGC-CPA-UP and Ford Foundation, 1995.

Panganiban, Elena. "Democratic Decentralization in Contemporary Times" PJPA,

No. 2 April 1995,

CONCEPT AND CHARACTERISTICS OF LOCAL

GOVERNMENT
The United Nations define local governments as political subdivisions of a state
or nation, which are created by law, have power over local affairs including the
power to impose taxes, and whose governing body is locally chosen, either
through election or appointment.

As political subdivision, local governments have certain powers that enable them
to control and manage local affairs, and to promote and protect public interest and
welfare. These powers are exercised by duly selected officials. For instance, they
can formulate and implement a policy or ordinance, such as a tax or zoning
ordinance, that is binding to their constituents and the communities they govern.

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Being creatures of the state, the powers that they enjoy are expressedly provided
and defined by the law creating them, such as a Constitution or congressional
legislation. This means that local governments must depend principally on the
higher level of government for delegation of power and that the scope of what
they can do or extent of discretion they can exercise is circumscribed by what the
latter decides. This issue relates to the concept of decentralization and the
question of local autonomy. We will tackle this particular point subsequently.

Local governments are also called territorial subdivisions. This means that they
have a defined geographic or physical area of jurisdiction. Each one is responsible
for administering the local affairs within their area of responsibility. The
ordinances they pass are binding on their respective communities and the people
living there.

They are likewise considered public corporations and general purpose authorities.
As public corporations, local governments have corporate or proprietary powers.
They can thus engage in business or income-generating activities such as
operating public markets and wharves. Their being corporate bodies is significant
for it widens their avenues to generate more funds and, thus, beef up local budget.
As corporate entities, local governments have a right to succession and corporate
name, can sue and be sued and, as I have earlier mentioned, engage in business.

As general purpose authorities, local governments perform wide-ranging

functions, from provision of basic services and facilities to revenue generation,
regulation, and other governmental and corporate powers. In the Philippines, for
example, local governments impose and collect taxes and fees, build local roads,
construct a public market, undertake local development planning and budgeting,
enact and impose ordinance, and so on.

You can also analyze local government according to tiers or layers. The historical,
political and cultural experience, as well as geography of a nation determine, to a
certain extent, the number of layers of local government. In general, two layers of
local government are identified: the basic and intermediate. The basic units
provide the essential services and facilities needed by the community residents
such as health services and facilities, sewerage, roads, traffic management, safety
and security, street lighting, sanitation, and environmental protection, among
others. The intermediate local governments perform coordinative functions over a
larger area comprising the basic units. Their position over the lower levels of
government give them the vantage point of coordinating the services and the
social, economic, and physical development efforts within their area of
jurisdiction.

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In our country, the cities and municipalities correspond to the basic units and the
provinces correspond to the intermediate level. You may perhaps ask, what about
the barangays? You can classify them as sub-city or -municipal layer. Under
existing laws, these are also political subdivisions and are assigned the role of
articulating the ideas of the residents and as a basic unit for planning and
implementing programs and projects.

There are also subnational levels of government that have been created by the
Congress and these are the Autonomous Region of Muslim Mindanao
(ARMM)and the Metropolitan Manila Development Authority (MMDA).

The ARMM is a political region and created in response to the unique historical
and cultural heritage and the economic and social structures in Muslim Mindanao.
The regional government established there is responsible for the development of
the region and the promotion of the welfare of the people living within its
territorial jurisdiction. It has authority to impose taxes, fees and charges and can
exercise administrative and corporate powers like those granted to the local
government units. It also has the “authority, power and right in the exploration.
Development and utilization of its natural resources.” The establishment of the
regional government is expected to improve among other things, the planning and
implementation of social and economic development and the delivery of public
services in the region. The region is composed of four provinces and 82
municipalities.

The MMDA, on the other hand, is a special development and administrative

authority under the direct supervision of the President of the Republic. Its
creation is aimed at imp[roving the efficiency and effectiveness of planning,
supervising, and coordinating the efficiency and effectiveness of planning,
supervising and coordinating basic services that transcend the territorial
boundaries of the nine cities and eight municipalities comprising the Metropolitan
Manila. To fulfill this mandate, the MMDA is given regulatory powers over land
use, physical development and delivery of metro-wide services.

You may perhaps recall that aside from the ARMM, another autonomous region
was supposed to be established in the north, namely the Cordillera autonomous
Region. That is correct, the Congress enacted two separate organic acts, RA 6734
and RA 6736, for Mindanao and Cordillera, respectively. However, the CAR did
not materialize because only one province voted in favor of establishing an
autonomous region there. A revised version of the act was presented to the people
in 1998 for approval. Again, it was rejected.

You will learn more about this topic when you take PM 251, which is a course on
local government.

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A PROFILE OF LOCAL GOVERNMENTS IN THE

PHILIPPINES
The roots of local governments in the Philippines can be traced to the barangays
or villages scattered all over the archipelago long before the Spaniards colonized
the country. The barangays were small communities that were governed by a local
chieftain or datu assisted by a council of elders. The barangays were generally
independent and minded their own affairs.

The colonization of the country by Spanish and American forces marked the
integration of the autonomous communities into a highly centralized
governmental framework that was run from Manila. The barangays were
organized into towns, cities and provinces that served as the extension units of the
central government outside of Manila. The long history of colonial rule in the
country has shaped the character of local governments and their relation to the
national government. For example, national control and direction has, for a long
time, circumscribed many aspects of local government administration like
finance, budget, and local development projects.

Local governments in the Philippines are political subdivisions endowed with

substantial political powers to manage local affairs. They have governmental and
corporate powers to protect and promote public interest and welfare, particularly
of the inhabitants that they are representing.

In general, their powers and functions range from provision of basic services and
facilities to revenue generation, regulation, and other governmental and corporate
powers. These include levying and collecting fees, taxes and other impositions,
budgeting, land use planning, development planning, enforcement of building
code, enacting and implementing local ordinances, constructing local
infrastructures, etc. Police and fire protection are national functions but local
executives are empowered to provide operational supervision and direction to
personnel assigned in their jurisdiction.

As of April 1995, local governments in the country comprise of 78 provinces, 65

cities, 1,543 municipalities and 41,924 barangays. They form the three levels or
tiers of local government structure in the country. In addition, the Autonomous
Region of Muslim Mindanao and the Metropolitan Manila Development
Authority constitute a higher level of authority over the local units within their
jurisdiction.

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Under our governmental framework, local governments have the constitutional

status of being creatures and instrumentalities of the state. It is the Congress that
creates, merges, or abolishes local governments, subject to the approval of
affected residents in a plebiscite. In the past, creation of local governments was
rather arbitrary and often accompanied with intense political gerrymandering. The
passage of the first local government code in 1983 and, subsequently, the second
one in 1991 established the minimum requirements for local government creation,
abolition, or merger. The requirements are population, income, and land area. The
specific requirements for each criterion vary depending on what units are created
or merged. For instance, minimum population requirement for province,
component city, highly urbanized city, municipality, and barangay are 250,000,
150,000, 200,000, 25,000, and 2,000, respectively.

Within the framework of a unitary state, local governments are subordinate to the
central or national government, with the President exercising general supervision
over them. The national government defines and delimits the powers that may be
exercised by local governments, and defines the criteria for their creation,
abolition, or merger.

The levels of development, economic- and administrative-wise, of local

government units vary greatly, and more obviously, across the same levels. In
terms of income, for example, a large number of municipalities (608) in 1993
were classified as fifth class as against the combined number of 77 municipalities
classified as first and second class (Cabo, 1996).

DECENTRALIZATION AND THE 1991 LOCAL

GOVERNMENT CODE
It is generally accepted that decentralization is a strategy for promoting the
development of local communities. Decentralization refers to the transfer of
powers and functions from a higher or central level of authority to a lower level
government or field offices of central units. And there are basically two modes
by which decentralization can be effected. These are through deconcentration and
devolution.

Deconcentration decentralizes functions from central government agencies to its

field units. The transfer of functions takes place within the same administrative
machinery of government, from the central office to its field units or offices.
Deconcentration is administrative in nature, hence, it is also called administrative
decentralization. Appointments to lower level positions, like clerical positions, by
regional directors of national government agencies is an example of
deconcentration.

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Devolution is political in character for it transfers powers and functions from the
national government to local governments. In effect, devolution empowers local
governments by giving it wider scope of discretion and decisionmaking powers.
The passage of the 1991 Local Government Code is an act of devolution.

Perhaps you have heard of a third stream of decentralization: this is what may be
called privatization. This mode is unlike the first two in the sense that the entities
which absorb the governmental functions are not part of the government
machinery. Privatization involves the assumption by a business corporate of a
service or function performed by government. A recent example of this is the
transfer of water services provision from the government-owned corporation,
Manila Waterworks and Sewerage System, to private corporations. In effect,
government withdraws from directly providing services to the public. The
involvement of nongovernment or nonprofit organizations in the provision of
public services may also be included in this category. The participation of the
NGOs, however, does not necessitate the withdrawal of government involvement
in public service provision. Complementation and collaboration between
government and NGOs are often sought in the provision of services to the people.

Decentralization is an issue of long-standing in the Philippines particularly with

respect to relations between national and local governments. Centralism has held
sway over local governments ever since, notwithstanding the piecemeal
legislations that were passed from time to time by the national government giving
local governments additional powers. National government tendencies of control
and regulation have been criticized as thwarting local initiatives and development
of more progressive communities. It was, thus, no accident that the new Local
Government Code was passed in 1991.

The Local Government Code has been hailed as a revolutionary piece of

legislation for it gave local governments greater powers and resources to enable
them to develop into more progressive and self-reliant communities.

One major component of the Code was the transfer of five front-line services from
national government agencies to local governments, namely, health, agricultural
extension, social welfare, some aspects of local infrastructure and natural
resources and environmental protection. The devolution of these functions also
involved the transfer of agency field personnel, assets and liabilities, and records
to the local units.

Accompanying the devolution was an increase in the internal revenue allotment

(IRA) given to local governments, from 20% to 40% of national internal revenue
taxes. The increase was intended to cover the costs of devolved functions and to
ensure that the delivery of services would not be impaired.

The other major feature of the Code is the enhancement of fiscal resources and
regulatory powers. While taxing powers enjoyed by local governments have
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remained the same, greater financial resources have been made available to them
in terms of higher tax rates, new sources of income, and additional IRA. They also
have more leeway in sourcing funds for local projects.

Their regulatory powers have likewise been expanded. Local governments are
now authorized to reclassify agricultural lands, albeit subject to certain national
requirements. They can also regulate real estate trade and tricycle operation,
among other things.

The implementation of the law particularly during the initial stage was, however,
beset with numerous problems. Among others, these concerned the readiness and
capability of local units to absorb the functions devolved to them; the
insufficiency of funds, despite the increased IRA, to cover the costs of new
services to be provided; the perceived unfair scheme of IRA distribution; the
politics involved in the appointment of devolved personnel; and the
demoralization of local personnel owing to disparity in ranks and salary rates
between them and the devolved personnel. At one point, there was even a move to
recentralize, via a congressional law, the health function but this was promptly
vetoed by the President.

The Code is now on its sixth year of implementation. How well are local
governments performing with their additional powers and responsibilities? A
survey conducted in 1994 showed that devolved functions have not been
uniformly absorbed by the local units. Financial capability and priorities of the
local governments concerned have been cited as reasons for this (Legaspi, 1995).
But there are also informal reports of overwhelming enthusiasm among local units
to carry on with their new tasks.

At this point, we probably can say that there is still so much to be accomplished as
far as the intent of devolution is concerned. As an instrument for democratization,
the Code enables local governments and communities to have a greater say in
managing their local affairs. This can be seen in the provisions that, for example,
encourage participation of NGOs and people's organizations in government
processes and activities. And significantly, the Code presents new opportunities
for local governments to transform their communities into dynamic and
progressive ones. The bottomline here lies on the thinking of local officials and
the way local governments use their new powers to achieve these goals.

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ACTIVITY
Interview a local official about the new tasks that have been devolved to
local governments. Ask him or her about the problems they have
encountered in implementing the Code. Ask whether there are other
national functions that should be decentralized or there are functions that
should be reverted to national government. Ask them to explain why.
Through this activity, you will be able you to relate the decentralization
concept that we have discussed to practice.

REFERENCES
Cabo, Wilhelmina L. “Overview of Local Governments in the Philippines” in
Legaspi, Cabo, Joaquin (eds.), Local Economic Promotion in the Philippines.
Quezon City: LGC-CPA-UP and Public Administration Promotion Centre,
German Foundation for International Development, 1996.

Legaspi, Perla. Decentralization, Autonomy and the Local Government Code:

The Challenge of Implementation. Vol. 1. QC: LGC-CPA-UP and Ford
Foundation, 1995.

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Public Administration and
National Development
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12
Concepts and Strategies
of Development

INTRODUCTION
Thus far, we have discussed the various aspects of public administration theory
and practice. As we come close to the end of the course, it’s only fitting to focus
on the topic of development since public administration, in the ultimate analysis,
is and will always be directed towards achieving development, be it economic,
social, human, and sustainable development.

OBJECTIVES

At the end of the module, you will be able to :

1. describe and explain the changing meaning of development;

2. discuss the efforts and issues in development in the Philippines; and
3. define the role of public administration in achieving development.

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READINGS

Abueva, Jose. “Towards the Filipino Vision of the Good Society and an Authentic
Democracy: From Development to Social Transformation” in Bautista and
others (eds), Introduction to Public Administration in the Philippines: A
Reader.

Social Reform Agenda

SUPPLEMENTARY READINGS
Briones, Leonor. “Two Critical Issues in Sustainable Development: Finance and
the Role of NGOs and POs” in Ja’fari, de Guzman and Reforma (eds), Public
Administration and Sustainable Development. Tehran: EROPA, 1994.

Dag Hammarkdjold Foundation. What Now: Towards Another Development.

Prepared on the occasion of the Seventh Special Session of the United Nations
General Assembly, Uppsala, Sweden, 1975.

NEDA. Medium-Term Philippine Development Plan 1993-1998.

NEDA. Social Development in the Philippines: Vision, Challenges and

Imperatives. 1995.

UNDP. Human Development Report 1990, 1993, 1994, 1995, 1997.

UNDP. Philippine Human Development Report 1994.

UNDP Series on Sustaining Human Development: The Philippine Experience.

Seers, Dudley. “The Meaning of Development” in International Development

Review. 9(4)2:6, 1969.

Todaro, Michael. Economic Development in the Third World. (Chapter 3 - The

Meaning of Development) London: Longman Group, 1977.

World Commission on Environment and Development (WCED) (The Bruntland

Commission) Our Common Future. Oxford and New York: Oxford University
Press, 1987.

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DEVELOPMENT AND ITS VARIED SENSES

Looking back, we can say that the concept of development underwent different
interpretations since WWII. The first or classical model of development was growth-
led development. Also known as economic development, the model was patterned after
the successful economies of the countries in the West. Economic growth, measured in
terms of increased overall and per capita GNP, served as the principal goal of
development. Industrialization was the major development strategy used to attain
progress.

Hoping to duplicate the economic success of the advanced nations, many poor
countries, including the Philippines, subscribed to this model especially when the
United Nations launched, in the 1960s, the First Development Decade and set the target
of 5% growth rate for the decade among its member-countries. It was expected that
economic progress would translate into better living conditions especially among the
poor. For these countries, industrialization, together with development aid and loans
from the advanced countries and multilateral institutions, served as the principal means
to achieve development. In our case, the national development plans formulated by past
administrations echoed economic growth as the goal of development.

While economic growth, in varying degree of success, may have been experienced by
those countries, the benefits of such growth did not “trickle down” to the vast majority
who remained poor, jobless, illiterate, and nutrition-deficient. In other words, the
economic development paradigm failed to produce the hoped-for improvements in the
quality of life among the poor in these countries. The aftermath of such a model only
increased the disparity between the rich and poor countries and between the rich and
poor within the poor countries, aggravated the problems occasioned by increasing
industrialization and urbanization, and ravished the environment.

The failure of the First Development Decade to bring about qualitative changes in
human welfare and improve the levels of living of the masses of people resulted to
rethinking about the meaning of development. Among those who are considered to have
had profound influence in redefining development were Seers (1969), Dag
Hammarskjold Foundation (1975), and Todaro (1977) whose ideas on development
emphasized social dimensions and espoused the centrality of man, not only as recipient
of, but, more crucially, as active participant in development.

Seers (1969), for instance, posited that for development - which is the realization of the
potential of human personality - to occur, substantial improvements in eradicating
poverty, unemployment, and inequality must take place. According to him, a nation’s
claim to development should be able to prove that all the three problems have declined
from high levels. If any, and especially if all three, have been growing worse, then there
could be no development to speak of even if average per capita has tremendously
increased. Improvements in poverty levels, equality, and employment thus became
important criteria of development.

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Todaro (1977), noting the limitations of the economic growth models of

development to bring about fundamental social and economic changes, concluded
that development must be regarded as “a multidimensional process involving
major changes in social structures, popular attitudes, and national institutions, as
well as the acceleration of economic growth, the reduction of inequality, and the
eradication of absolute poverty.” He further explained that “development, in its
essence, must represent the whole gamut of change by which the entire social
system, tuned to the diverse basic needs and desires of individuals and social
groups within that system, moves away from a condition widely perceived as
unsatisfactory and toward a situation or condition of life regarded as materially
and spiritually ‘better.’ ”

He identified three core values of development which relate to basic human needs
and which represent the ‘good life’ or goals sought by all individuals and
societies. These are:

1) Life sustenance - which is the ability to provide life-sustaining

basic human needs that include food, shelter, health, and
protection.
Economic progress (translated into rising per capita incomes,
elimination of absolute poverty, greater employment opportunities and
decreasing income inequalities) is still considered important because
it can provide the people with the means to overcome the helplessness
and misery caused by lack of food, shelter, health, and protection.
Todaro, however, cautioned that economic progress, while necessary,
is not sufficient requirement for the realization of the human potential.

2) Self-esteem - which is a sense of worth and self-respect, of not being

used as a tool by others for their own benefit.
Modernization and economic progress have reduced the self-esteem of
the poor because self-worth has been equated with possession of
material wealth and economic progress. Poverty has become a stigma
of poor nations and people. The poor, thus, seek development and
emancipation from poverty to gain respect and dignity.

3) Freedom from servitude - to be able to choose.

Development means that people should have access to an expanded

range of social and economic choices, unencumbered by constraints
posed by poverty, joblessness, ignorance, misery, nature, dogmatic
beliefs, and institutions. It also means that a country has the freedom
to chart their own development without interference from external
pressures.

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The same theme of improved quality of life is carried by the Dag Hammarksjold’s
(1975) ‘another development.’ Starting with poverty eradication, ‘another
development’ is geared towards the satisfaction of man’s basic needs for food,
clothing, shelter, health, and education. Two other elements of development were
likewise identified by DHF: that development be endogenous and self-reliant, and
be in harmony with the environment.

In the first, the poor or less developed countries do not have to rely on or imitate
western models to develop. According to DHF, if development refers to the
realization of man’s full potential, that means that the poor countries must
harness the ‘inner core’ of their society - their very own rich cultural heritage,
resources and human energies and creativity. By drawing on their inner resources,
the people are able to develop their independent capacity to make decisions and
become confident about themselves. Being self-reliant, then, becomes a process
for the realization of human potential. To make all this possible, it is advanced
that democratization of power through decentralization and popular participation,
and improvement of the socio-economic conditions of the poor be established for
these are the means by which the poor can improve their lot.

In the second, development must ensure that it does not transgress the ‘outer
limits’ of the biosphere, the point where the ecosystem loses its capacity to
regenerate itself. Another development, thus, requires us to keep the environment
in good shape even as we draw our sustenance from it. It advocates prudence and
responsibility in the use of nature’s wealth if we desire the survival of the present
and future generations.

The limits, according to Dag Hammarksjold, do not pertain alone to the

territoriality of a particular community or country but to the ecosystem of the
entire planet. For, in the long run, the consequences of environmental degradation
will transcend national boundaries and affect the essence of human existence.
Thus, an environment-friendly development should be a concern of all nations and
peoples. This theme was to, again, be emphasized in the decades of the eighties
and nineties.

The UN Second Development Decade ushered in the social development concept

in the ‘70s as successor of growth-led development, incorporating in it the social
and nonmaterial dimensions advanced by Seers, Todaro, Dag Hammarksjold and
others. The economic model has not been completely discarded for it was
recognized that growth was needed, but, with qualification: it should be growth
with equity or growth with redistribution. Speaking on the second development
decade, the United Nations declared:

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“As the ultimate purpose of development is to provide increasing

opportunities to all people for a better life, it is essential to bring about
a more equitable distribution of income and wealth for promoting both
social justice and efficiency of production, to raise substantially the
level of employment, to achieve a greater degree of income security
and to expand and improve facilities for education, health, nutrition,
housing and social welfare, and to safeguard the environment. Thus,
qualitative and structural changes in the society must go hand-in-hand
with rapid economic growth and existing disparities - regional,
sectoral and social - should be substantially reduced.”

The pronouncement echoes the declaration of the United Nations Center for
Regional Development in 1988 when it said that “social development is measured
not only by improved access to services such as health, education, or welfare, but
by progress in achieving more complex and sometimes nebulous, social goals -
such as equity, ‘social justice,’ cultural promotion, and ‘peace of mind,’ as well as
enhancing the capacity for action by the people, so that their creative potential can
be released and shape social development.”

In social development, the poor masses are considered not just as beneficiary but
as active participant in development. As beneficiary, it is meant that the fruits of
development, e.g., jobs, rising incomes, improved health and welfare, should
redound to their benefit and welfare. The policies and programs implemented by
their government should bring about improvements in their economic and social
well-being. As participants, it is meant that they should be involved or must take
part in making decisions on matters that directly affect their lives. Because
development is addressed to them and because they are in the best position to
identify what they need, their participation in decisionmaking is essential in
coming up with programs that directly respond to their needs and problems.
Their participation in development is operationalized in project planning,
implementation, monitoring, and evaluation at the community level.

Thus, social development involves the satisfaction of the basic needs such as
health, welfare, education and housing, promotion of social justice and equity, and
empowering people to develop themselves.

A decade after Dag Hammarksjold Foundation advanced the idea of a

development that is in harmony with the environment, the United Nations World
Commission on Environment and Development (1987) would resurrect that theme
which would later become the agenda of a major gathering, the Earth Summit in
Brazil in 1992, organized by the UN Commission on Environment and
Development (UNCED). The Summit, attended by heads of states around the
world, produced the Agenda 21 - a global blueprint and action plan for sustainable
development for the 21st century.

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Sustainable development was the emergent concept in the ‘80s. It emerged in the
context of increasingly serious threats to human existence posed by global
warming, acid rain, depletion of non-renewable natural resources, profligate
human consumption and waste, rapid population growth, and even warfare.

All these problems have largely been caused by excessive human activities - in
the hallowed name of development - especially accelerated and indiscriminate
economic activities, that led to wanton waste and destruction of natural and
human resources. It’s recognized that such pursuit of development has only
contributed to the worsening of poverty and human suffering among the less
privileged, and endangered mankind’s life support system.

Sustainable development, as described by the WCED (1987), is “development that

meets the needs of the present without compromising the ability of the future
generations to meet their own needs.” Apart from caring for the future,
sustainable development takes cognizance of the fact that there are certain limits
to which the world’s natural resources and ‘carrying capacity’ can be subjected to
human activities and level of technology. This idea suggests that nature can only
absorb the excesses of human activities and technology up to a certain extent.
Beyond that is dangerous living. It could mean the destruction of the planet earth
and, by extension, the annihilation of the human race. The prevention of such an
eventuality to happen requires the collective effort of all nations, not individual
efforts. As the WCED (1987) put it, all must work as one for ‘our common
future.’

Pronk and Haq (1992 as cited in Briones 1994)) described the meaning of
sustainable development succinctly when they said that: “The call for sustainable
development is not simply a call for environmental protection. Instead,
sustainable development implies a new concept of economic growth - one that
provides fairness and opportunity for all the world’s people, not just the
privileged few, without further destroying the world’s finite natural resources and
carrying capacity. Sustainable development is a process in which economic,
fiscal, trade, energy, agricultural, industrial, and all other policies are so designed
to bring about development that is economically, socially, and ecologically
sustainable. This means that current consumption cannot be financed for long by
incurring economic debts that others must pay. This also means that sufficient
investment must be made in the education and health of today’s population so as
not to create a social debt for future generations. And natural resources must be
used in ways that do not create ecological debt by overexploiting the carrying and
productive capacity of the earth. All postponed debts mortgage sustainability -
whether economic debts or social debts or ecological debts.”

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As nations worked to become more progressive, the human dimensions of

development continued to lag behind. Poverty and misery existed along side
progress. The United Nations reported that human deprivation on a large scale
persisted: over a billion people or 20% of the world’s population living in abject
poverty, 900 million adults in the developing countries still cannot read and write,
1.5 billion are without safe water, 400 million have no housing, and 30% (2.8
billion) of the world’s labor force are not productively employed.

In 1990, the United Nations Development Programme published the first Human
Development Report and introduced there the human development index (HDI).
The HDI is a development measure that goes beyond the traditional concern for
income. It reflects the essential elements of a decent standard of living expressed
in such indicators as life expectancy, literacy and educational attainment, and
access to resources or income. As defined by UN, human development is a
process of enabling people to have wider choices. It entails enlarging those
capabilities that enable people to live a full life as human beings. The most
important dimensions of human development are the person’s physical survival
and health, level of knowledge, livelihood or income, and political freedom.
These are the minimum basic needs (MBN) that must be fulfilled.

The human development approach would later contribute significantly toward

creating a new development paradigm in the 1990s that would “put people at the
centre of development, regard economic growth as a means and not an end,
protect the life opportunities of future generations as well as present generations
and respect the natural systems on which all life depends” (Human Development
Report, 1990). That is the concept of sustainable human development.

Sustainable human development is an encompassing concept of development that

enables all individuals to develop their capabilities to the full and apply them to
their best use in all spheres - economic, social, cultural and political - that shape
their lives. It accelerates economic growth and translates it into improvements in
the quality of life and more equitable distribution of wealth and economic
opportunities. It protects the future of unborn generations by not running down the
natural resource base needed for sustaining development in the future. It also
recognizes that achievements in these areas could be meaningless if dramatic
improvement in the status of women and the opening up of all economic
opportunities to them would not be attained.

In other words, sustainable human development is development that generates

growth and distributes its benefits equitably, enhances the capabilities of people to
engage in productive employment, empowers them to participate in making
decisions that affect their lives, empowers and enhances the potential of the
women, and regenerates the environment rather than destroy.

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In the final analysis, sustainable human development is pro-people, pro-jobs, and

pro-nature. It gives the highest priority to poverty reduction, productive
employment, social integration, and environmental regeneration.

The UNDP has expanded its indicators of human development in subsequent

years to include participation (1993) and gender (1995). Its most recent concern is
the measurement of deprivation or human poverty (1997). The 1997 Human
Development Report introduced the human poverty index (HPI) in an effort to put
together in a composite index the different features of deprivation in the quality
of life in order to arrive at an aggregate judgment on the extent of poverty in a
community. The HPI measures deprivation in basic human development in the
same dimensions as the HDI.

At this point, we can perhaps summarize the major points of the various concepts
of development. But instead of me doing it, let me pose it as SAQ that you have
now come to be so familiar with.

SAQ 1

Briefly summarize the concept of each of the development models that we just
discussed. Write it down on the space below. Then you can check your answer
with those on the next page.

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ASAQ 1
Economic model of development - It’s growth-oriented and
development is measured according to how much progress is made in
gross and per capita national product, national and per capita income,
and similar economic indicators.

Social development - It considers people and their total development and

improvements in the quality of life as focus of development. Poverty
eradication, social justice and equity, and employment opportunities are
the goals pursued by social development.

Sustainable development - It balances the requirements for economic

progress and the imperative to conserve and safeguard the environment
for future generations. Productivity remains a valid goal but one that is
consistent with the carrying capacities of nature.

Human development - It is the process of enlarging people’s choices.

The strategies used to achieve human development focus on providing
opportunities and access to education, health services, and livelihood.

Sustainable human development - a development paradigm that

emphasizes total well-being of the people within the context of an
ecologically-friendly and future-minded development activities.
Economic growth is considered a means, not the end of human
development. It is development that distributes the benefits of growth
more equitably, substantially satisfies human needs, and improves the
quality of life.

You certainly can improve on this brief summary by comparing the concepts
according to some analytical criteria, for example, goals, strategies, focus,
measures, weaknesses, strengths, and others that you can think of. The extended
analysis will go a long way in helping you critically examine the various
development models.

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HUMAN DEVELOPMENT IN THE PHILIPPINE

CONTEXT
Role of Public Administration and Actions of the National
Government

As we enter the next century, it is evident that we would still be relying on public
administration as the primary instrument for advancing and sustaining human
development in the country. The role of public administration in this process is
crucial. It is expected to provide an overarching framework for all - government
agencies, private firms, NGOs, people’s organizations, institutions - that will
integrate and coordinate individual, group, and organizational efforts to effect
sustainable human development. It is called upon to develop and implement
positive policies and strategic approaches to promote social, economic, cultural,
political, and environmental development. Most importantly, public
administration must ensure that the goals of sustainable human development are
achieved.

As a member of the United Nations, the Philippine government is committed to

the pursuit of sustainable human development. The Ramos Presidency (1992-
1998) envisioned, at the turn of the century, a Philippines that is economically
progressive, globally competitive and steeped on the principle of people
empowerment. This vision is also called the Philippines 2000. The 1993-1998
Medium-Term Philippine Development Plan, or MTPDP, formulated and
implemented during the incumbency of the Ramos administration, is meant to
concretize that vision. The plan put at its helm sustainable human development
with economic growth and people empowerment as strategies to achieve it.

In September 1993, the national government launched the Social Pact for
Empowered Economic Development (SPEED) which would speed up the
transition of the country from agricultural to the NIChood status (Social Reform
Council Secretariat 1996). NIC means newly-industrialized country. SPEED took
care of the economic thrust of the Philippine development plan.

The Social Reform Agenda (SRA), on the other hand, operationalizes the
government’s human development goals contained in the MTPDP. The SRA
addresses the recurring issues of poverty and inequity in the Philippines which,
according to 1991 official records on poverty incidence, affect 39.2% of the
population. It contains a set of interventions aimed at meeting the basic human
needs, advancing social justice and equity, and promoting effective participation
of the people, especially the poor and marginalized sectors, in the mainstream of
economic and political life. The SRA represents the government’s commitment
to human development. The human development goals of the government as
contained in the MTPDP are to:

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• enable the majority of the population to meet their minimum basic

needs, especially raising incomes above the poverty threshold;

• provide
There are manyfocused basic that
possibilities services
you canto the more But
mention. disadvantaged sectors at a
probably foremost
level
of these is which shalldown
the laying allowofthem to managepolicies
fundamental and control their resources as
and administrative
well as benefit from development interventions; and
measures that ensure the commitment of government and all sectors of
society to human
• harness development
the productive and environmental
capacity of the country’s concerns.
humanFor example,
resource base for
the enactment of a law banning
international competitiveness. logging, whether partial or full,
establishing a fiscal incentive system that will encourage businesses to
Theuse environment-friendly
reduction technology,
of poverty incidence from 39.2 andpercent
settingin of
1991standards that by
to 30 percent
regulate
1998 and thethegeneration
emission of of toxic materials
employment at from factories
1.1 million andper
jobs industries
year fromcould
1994 to
help prevent further deterioration of the environment. Of
1998 which thereby would reduce unemployment rate from 9.1 percent in 1994 course, the to
6.6assumption hereareissome
percent in 1998 thatofthere will be strict
the development targetsenforcement
of the MTPDP. of such

In 1989, the national government adopted the Philippine Strategy for Sustainable
Development. That framework identified 10 major strategies to achieve
sustainable development: integration of environmental considerations in the
decisionmaking process, proper pricing of environment and natural resources,
resource access and property rights reform, conservation of biological diversity,
rehabilitation of degraded ecosystems and resources, pollution control, control of
population growth, and human resources development, introducing growth in the
rural areas, promotion of environmental education, and strengthening of citizens’
participation (Malalang, 1994). The 1993-1998 MTPDP raises the need to
rehabilitate and preserve the environment in order to assure quality of life for all
today and in the future. The government established the Philippine Council for
Sustainable Development to ensure greater focus on environmental concerns in
plan implementation. Its creation was also pursuant to Agenda 21 agreed upon by
various countries during the Rio Summit in June 1992.

SAQ 2
Can you give example of how the government can perform its role in the pursuit
of sustainable human development?

ASAQ 2

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Some Issues and Concerns

There certainly remain many nagging questions concerning human development

that we would have to face and resolve in the next century. Since we can’t possibly
cover all of them here, we’ll just focus on some. I hope, though, that this limitation
will not prevent you from investigating other issues. I strongly suggest that you
read other materials like the ones mentioned in your supplementary readings.

Briones (1992), for instance, has raised the significant issue of financing
sustainable development. This is crucial especially in the developing countries
where the debt burden takes its toll on scarce financial resources. She cited the
enormity of Philippine debt burden and the corresponding debt servicing leaving
very little for social services, let alone sustainable development. She pointed out
that, according to the Commission on Audit, the actual debt service of the country
stood at an average of 57.2% of the budget for the period 1986-1991, as approved
by the President and submitted to Congress. For the year 1991 alone, actual debt
service amounted to 66.9% of the total budget of 254.4 billion pesos.

The provision of basic services such as health, social welfare, education, and
housing is essential in the attainment of human development. So, it behooves the
government to allocate significant amounts of the budget to the provision of these
enabling services. But how much does the government spend on these in proportion
to the total budget? According to the study made by Bautista (1994), the social
development expenditures of the government during the Aquino administration and
the first two years of the Ramos administration had 19% and 21% share,
respectively, of the total budget, which are nearly the same amounts allotted to
economic development. But the figures pale in comparison to the allocations given
to debt service payments which reached 40% during Aquino’s time and 37% in the
first two years of Ramos’ presidency. Clearly, debt servicing represents a major
stumbling block in financing social development.
There is also the recent presidential directive to cut by 25% government expenditures in
view of the rough economic situation the country is going through. The directive will
create a severe setback for social development. As it is, the proportionately smaller share
of social development to total budget will be further reduced because of this. It would have
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been desirable if the cuts were made selectively and the programs for advancing human
development in the country spared.

Briones (1997) cites that a recent assessment of social development in the Philippines
made by Sarah L. Timpson showed that the absolute number of poor has kept on growing
despite the decline in the percentage of people living in poverty. The latest estimates of
Filipinos considered absolutely poor reach more than 20 million, or just under 36% of the
population. Also, there were regions where poverty has even worsened, like in Muslim
Mindanao, the Cordillera region and Region I. The income inequality in the country was
also cited to be great where income of the wealthiest was approximately placed to be ten
times that of the poorest.

The issue on equity has apparently not changed since the 1988 World Bank report. In that
report, the Philippines was mentioned to have one of the most unequal income
distributions among middle-income countries; in 1985, the top 10% of the population had
more than 15 times the income of the poorest 10% (World Bank, 1988). Sustainable
human development puts special emphasis on women for the clear and simple reason that
women’s plight has been neglected in the race to progress. In the Philippines, there
remains a lot to be desired in advancing the cause of women. Women’s issues are merely
subsumed under government policies; there are no clear-cut references to women’s role in
development even in the Medium Term Philippine Development Plan. Development
programs are planned and implemented without sensitivity to the needs of women
(Tapales, 1992).

And with the implementation of the Local Government Code, monitoring of the progress
of human development efforts in the country becomes doubly important. The Code
mandated the devolution of certain basic services, like health and social welfare, from the
national government to local governments. The early years of implementing the code was
wrought with many difficulties. These include the financial aspects. The costs, particularly
of funding the operations and maintenance of hospitals, have been problematic for the
local governments. What we are asking here is: what would be the implications of the
devolution on the overall human development efforts? It is imperative that policymakers
and administrators take cognizance of this factor to ensure the continuity of the gains
achieved by the government in this field.

Needless to say, the political will of national leadership will remain an essential ingredient
in the pursuit of sustainable human development - political will not only in pushing
forward human development in the context of sustainable development but also in
harnessing the support and participation of the various sectors of society to make the
collective vision of ‘good society’ for all Filipinos a reality. Political will can be gauged in
many ways: government financial support to human development will tell us where in the
priority list it lies.

REFERENCES

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Briones, Leonor. “Two Critical Issues in Sustainable Development: Finance and

the Role of NGOs and POs” in Ja’fari, de Guzman and Reforma (eds), Public
Administration and Sustainable Development. Tehran: EROPA, 1994.

Briones, Leonor. The Philippines: A Transitory Phase or a Crisis in the Making?

Country situationes prepared for NOVIB, Netherlands: The Hague, September
16, 1997.

Dag Hammarkdjold Foundation. What Now: Towards Another Development.

Prepared on the occasion of the Seventh Special Session of the United Nations
General Assembly, Uppsala, Sweden, 1975.

Malayang, Ben. “Balancing Social and Economic Progress with Concern for the
Environment in the Philippines” in Ja’fari, de Guzman and Reforma (eds),
Public Administration and Sustainable Development. Tehran: EROPA, 1994.

NEDA. Medium-Term Philippine Development Plan 1993-1998.

NEDA. Social Development in the Philippines: Vision, Challenges and

Imperatives, 1995.

UNDP. Human Development Report, 1990, 1993, 1994, 1995, 1997.

UNDP. Philippine Human Development Report, 1994.

Seers, Dudley. “The Meaning of Development” in International Development

Review. 9(4)2:6, 1969.

Tapales, Proserpina. “Women and sustainable Development: The Case of the

Philippines” in Ja’fari, de Guzman and Reforma (eds), Public Administration
and Sustainable Development. Tehran: Eropa, 1994.

Todaro, Michael. Economic Development in the Third World. (Chapter 3 - The

Meaning of Development) London: Longman Group, 1977.

World Commission on Environment and Development (WCED) (The Bruntland

Commission) Our Common Future. Oxford and New York: Oxford University
Press, 1987.

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13
Issues, Trends and
Challenges

INTRODUCTION
We have now come to concluding part of the course. As we finish the course, it
will help if we briefly review what we have covered here.

As an introductory course in public administration, PM 201 is designed to give

you an overview of public administration theory and practice. In line with this, we
discussed developments, trends, concepts and processes in public administration
study and practice and related these as far as practicable to Philippine experience.
We have likewise focused on concepts and strategies of development, especially
human development for, as I mentioned in Module 12, public administration will
ultimately be geared towards achieving the development of the country and the
people.

After covering these topics, it is relevant that we survey some of the major issues
that public administration in the country will continue to grapple with and new
challenges and directions that have to be faced.

OBJECTIVES

At the end of the module, you will be able to:

Identify some of the major issues, trends, and challenges in public administration
in the Philippines.

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SUPPLEMENTARY READINGS
Bautista, Victoria. “The Nature, Causes and Extent of Corruption: A Review of
Literature,” PJPA, vol 36, July-October, 1982.

Briones, Leonor. “Globalization, Nationalism and Public Administration:

Challenge and Response,” Paper presented at the 5th National Conference on
Public Administration, June 26-27, 1997, Q. C.

Briones, Leonor. “Issues on the Privatization Policy in the Philippines,” PJPA,

vol. 33, No. 1 January 1989.

Cariño, Ledivina. “Future Developments in Philippine Public Administration.”

Cariño, Ledivina. Administrative Accountability: A Review of the Evolution,

Meaning and Operationalization of a Key Concept in Public Administration,”
PJPA, vol. 27, no 2, April 1983.

Ocampo, Romeo. Public Policy and The Role of Government (See Module 7).

Reyes, Danilo. “Controversies in Public Administration: Enduring Issues and

Questions in Bureaucratic Reform,” Paper presented at the 5th National
conference on Public Administration, June 26-27, 1997, Q. C.

SOME MAJOR ISSUES AND CONCERNS

Bureaucracy and the Civil Service

When we hear the word bureaucracy, we usually associate it with pejorative

meanings. Inept, red tape, huge, overstaffed, inefficient, wasteful, unresponsive,
inaccessible, “palakasan,” double standards (one for the powerful and another for
the small people) - these are just some of the most common criticisms hurled
against the bureaucracy and the civil servants. These anti-bureaucratic sentiments
are reinforced by media-bashing and scholarly studies made on the bureaucracy.
It is perhaps no exaggeration that public perception of public administration in the
country remains negative.

Every new administration seeks to reform the bureaucracy through various ways,
such as reorganization, civil service reform and training, infusion of new
technologies and management tools, privatization, decentralization, etc. But these
administrative reforms apparently have not solved all the problems plaguing the
bureaucracy. Performance has lagged behind targets.

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According to Reyes (1994), there are four reasons why reform efforts in the
country have failed. These are (1) the lack of sufficient and uncompromising
political will to implement reforms; (2) complex web of rules in the
administration of justice thereby making it difficult to promptly remove,
prosecute, and punish erring officials and employees, especially those who were
involved in graft and corruption; (3) the absence of well-defined standards and
monitoring system that will undertake surveillance of bureaucratic activities and
performance thereby facilitating swift decisionmaking; and (4) the lack of focus
in the direction and target of reforms and tendency to address problems in
compartmentalized fashion, thus, dissipating the reform efforts.

While the rise of global markets and the liberalization of international trade and
the tremendous advancements in science and information technology open
opportunities for the country, these likewise present formidable pressures on
public administration to make adjustments and reforms. It is said that these
developments have called for emphasis on cost-consciousness, efficiency, and
lean management. This management ideology has far-reaching implications on
public administration, not the least of which is the ‘contraction’ - through
privatization and reduced budgetary allocations - of the government’s
involvement in the provision of basic services. This is related to the issue of the
role and scope of government and state that we have tackled in Module 7. In any
case, administrative reorganization that leads to the reduction of service provision
by the government has to be mindful of its consequences on those who need the
services most - the marginalized and deprived members of the Filipino society.
Should minimization of costs take priority over the provision of services urgently
needed by the underprivileged? The government has to ensure that those who
have less in life are not sacrificed even as it strives for an efficient and effective
management.

National Public Administration in a Global Community

The increasing trend toward globalization, particularly of the economy, creates

tensions on the independence of national public administration to formulate
national policies consistent with the needs and aspirations of a sovereign people.
Agreements and commitments entered into by the country at the international
level, for instance, in the case of the General Agreements on Tariffs and
Trade/World Trade Organization (GATT/WTO) and the Asia-Pacific Economic
Council (APEC) would require the national government to make adjustments and
revision in the existing laws and policies in order to conform to such agreements.
It is said that even the Constitution has to be amended to comply with the
requirements of the GATT. In the ultimate analysis, these adjustments made in
the name of globalization will have tremendous impact on the lives of the
Filipinos.

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Within this disconcerting set-up, is it still possible to delineate and maintain the
boundaries and sovereignty of national public administration?

The Scope and Role of Public Administration

Globalization carries in its wings the call for redefining the role of State and
public administration from one of direct involvement in production to the
functions of development, regulation, and continuance of an enabling framework.
In the reinventing government parlance, this is what you may call a government
that ‘steers’ rather than ‘rows.’ Some call it ‘minimalist’ government. This
paradigm shift necessitates tremendous adjustments in the existing administrative
set-up and in the competencies and orientation of public servants to adjust to the
new role of government and the changing environment.

We have always looked up to government as provider of public goods and the

final arbiter in the spheres of life - social, economic, and political. In the context
of poverty, unemployment, and other socio-economic inequities, would this new
ethos of government be desirable in the Philippine setting?

Technology and Bureaucratic Traditions

Public administration has benefited from the advancements in computer and

information technology - from efficient and faster administration of routine work
to improved process of policy and decisionmaking and monitoring and evaluation
of government policies, programs, and projects. These new technologies,
consequently, are revolutionizing the workplace and behavior of the employees.
What are the implications of these technological innovations on traditional
practices of public administration such as work hours, staffing, training,
organizational structures, decisionmaking, work assignment, etc.?

The benefits of technological advancements, however, are yet to be fully

harnessed by the bureaucracy especially at the lower levels of administration like
the provinces, cities, municipalities, and the barangays. Many of these local
government units are yet to install a computer in their offices. In contrast,
sophisticated computer and softwares are used widely and progressively in many
national government agencies and public corporations and in more prosperous
local governments. There is a need to fill this gap because information technology
can contribute to improving the administrative capacities of government to
undertake socioeconomic development. This implies costs in terms of the needed
facilities and equipment and the training of personnel in the use of the computers
and computer softwares.

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Public Accountability and Graft and Corruption

Most of us wouldn’t like the spectre of the unlamented authoritarian regime that
was accountable only to itself and used public funds as if these were its own to
visit this country again. The 1987 Constitution that was ratified after the popular
overthrow of the Marcos regime upholds the accountability of civil servants to the
public.

It is said that the country does not lack laws, rules, and procedures that ensure the
accountability of public officials and employees in the conduct of their official
functions as well as punish the commission of graft and corruption. The public
expects and demands transparency in government operations. Yet, corruption
continues to beset the government. Every incoming administration professes to
eradicate graft and corruption in government but with little success. The public has
become cynical about government pronouncements to bring the full force of the
law on the violators. It has become accustomed to seeing the ‘big fish’ being given
the face-saving exit and the ‘small fries’ being jailed for petty corruption. It’s not
only that there is a lack of strong political will to enforce the law; there also
appears a double standard in the administration of justice. What would it take to
ensure that accountability is observed not in breach but in practice?

Civil Society and Non-Government Organizations

Connected to the issue of redefining the role of public administration is the

increasing involvement of the non-governmental organizations (NGOs) and the
civil society in the arena of governance. Our old notion of public administration is
dramatically being transformed as NGOs, people’s organizations, cause-oriented
and advocacy groups, women’s groups, fisherfolks’ and farmers’ organizations,
organizations of disabled persons, and other sectors of society are increasingly and
actively getting involved in the practice of public administration. For instance,
provision of public goods and services is no longer a monopoly of government;
these groups also provide public services to the people. They are also active in
policy advocacy especially when the issues involved have overwhelming
implications on the lives of the Filipinos.

Before, we make distinctions only between private and public administration.

Today, we have to make room for emergence of the civil society in the study and
practice of public administration. What could be the implications of this
development on public administration? Would it result to the ‘withering of the
state?’ Or to refocusing on what it can do best under certain existing conditions?
Or will it inspire government to give its best to maintain the loyalty and obeisance
of the public that, in the first place, put it in its present status? You can think of
other theoretical questions which you can consider as research topics in your public
administration courses.

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There certainly are many more issues and concerns involving public
administration that cannot be covered here at the moment. I, thus, strongly
encourage you to read relevant materials accessible to you and those that are
available in the library.

For a start, you can review the readings assigned in this course and to read
“Globalization, Nationalism and Public Administration: Challenge and Response”
written by Leonor Briones and “Future Developments in Philippine Public
Administration” by Ledivina V. Cariño. These are available in your learning
centers.

ACTIVITY
Get a newspaper and choose an item that discusses or talks about the
government. Try to identify issues, trends, and challenges in the report.
Analyze these as to their causes, magnitude, impact on government and the
Filipino people.

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Unit V
New Concepts of Public
Managemet and
Development

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INTRODUCTION
Public Administration is a dynamic field, and responds to changes in politics,
society and culture. Since it is concerned with using public management for
development, it has responded promptly to new ideas and concepts which
underline development issues and challenges.

Since the modules for PM 201 were written many ideas have evolved, from
international and national agencies and academic institutions which have seen the
necessity of adjusting old ideas to new social concerns. Even as this unit
concentrates on those new areas, we should stress that these are by no means
going to be the end of theorizing and conceptualizing public management; PM
always responds to socio-political changes, and its theories will continue to
evolve as called for.

This Unit discusses three new topics—governance, human rights and gender, and
the new public management; each is discussed in a module. The modules will
follow this order, but we will set the stage for the topics with a background on the
human development and reinventing government from Unit IV.

OBJECTIVES

At the end of the Unit you are expected to:

1. learn new ways of looking at development;
2. learn new strategies to meet the new goals of PM and development and how
they impact on PM theory of organizations;
3. be able to merge theory and practice of PM in responding to current problems
and issues of development; and
4. be able to apply these strategies into your own work, whether you are in
bureaucracy, politics, or the development fields.

READINGS

Cariño, Ledivina. “The Concept of Governance.” In Cariño, Ed. From

Government to Governance. EROPA 1999.
Ocampo, Romeo. “Models of Public Administration Reform: The ‘New Public
Management’ (NPM)”. In Asian Review of Public Administration. Vol X
Nos. 1-2. January-December 1998.

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Tapales, Proserpina. “Engendering the Political Culture: Some Persistent Issues

on Women Empowerment in the Philippines”. Panorama (Journal of the
Konrad Adenauer Foundation) No. 2, 2006.
UNDP. Governance for Sustainable Human Development. January 1997.
UNDP. Integrating Human Rights with Sustainable Human Development. January
1998.

These are all found in your volume of readings for PM 201.

You are encouraged to read the entire books, not just the chapters listed above
which are required. Get a copy of the UNDP’s 1990 Human Development Report,
for broader explanation of human development.

SUPPLEMENTARY READINGS
Asian Development Bank. Country Governance Assessment: Philippines. 2005.
Philippine Human Development Reports. 1994, 1997, 2000. Latest.
Review of Women’s Studies. 2002.
UNDP. Human Development Reports, 1990, 1995, 2000, 2005 and latest.

BACKGROUND: CURRENT PERSPECTIVE ON

DEVELOPMENT
Reread the last module of PM 201, the topic “Development and its Varied Senses,
starting on p. 132. It discusses the changing view of development from an
emphasis on economic growth to the ‘realization of the potential of human
personality, as propounded by Seers, Todaro, the Dag Hammarksjold Foundation,
and dependency theorists. To refresh your knowledge, answer the following self-
assessment questions:

SAQ 1
What were the core values of development identified by Todaro to relate to basic
human needs?

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Read on.
On p. 134, the UN’s Second Development Decade expounded on the concept of
social development incorporating the social and non-material dimensions of
growth advanced by Seer, Todaro and others. “The economic model has been
completely discarded for it was recognized that growth was needed, but with
qualification: it should be growth with equity or growth with redistribution.” (p.
134).

The concept of growth with equity was refined by the UNDP in 1990 when it
published its first Human Development Report. In it, the UNDP defined human
development as “the process of broadening people’s choices”. These simple
words mean much; they mean that people must be able to choose what they will
become in life. How can they choose? How can the poor, specifically, choose to
do better in life, when they are deprived of opportunities? This is precisely what
human development means—everyone, especially the poor, should be given the
opportunity to improve their lives through education, health facilities, and social
services. Strategies are needed to enable people to meet their minimum basic
needs as human beings. Education provides them the ability to work; better health
enables them to remain at work. States must be able to provide these. Human
development means looking at development in terms of people, planning and
programming, seeking strategies to provide the basic needs of people to enable
them to choose better alternatives in life.

Look at the answers to SAQ 1; I hope these have refreshed your memory about
the new concept of development.

ASAQ 1
1. Life sustenance—life sustaining basic human needs—food, shelter,
health, and protection.
2. Economic progress—rising per capita incomes to provide means to
overcome helplessness
3. Self-esteem;
4. Freedom from servitude

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Thus, the UNDP came up with indicators to measure the level of human
development in each country. The first HDR measured literacy, infant mortality,
life expectancy, and gross domestic product. These were further refined to include
school enrolment, by level. Literacy and school enrolment provide data on level
of education available; life expectancy provides data on the level of health, even
as infant mortality tells the level of nutrition of mothers. If the scores for each of
these indicators are high, it means that the level of human development of a
country is high. For example, if the life expectancy is 75, the literacy rate is 95
and the GDP is similarly high, the overall HDI of that country is high. However, a
country may have lesser GDP is similarly high, the overall HDI of that country is
high. However, a country may have lesser GDP but may be able to maintain high
levels of life expectancy and literacy if it provides opportunities for health and
education to be available to everyone. UNDP computes the HDI and ranks
countries according to their indices. The Philippines rank has always been in the
middle level among about 185 countries; in recent years, our ranks have
fluctuated between 78-90.

The HDI became a means to determine the level of human development in each
country, and to be able to compare countries with each other. HD also
underscored the need for sustainable human development, making development
strides last through generations. In other words, development programs should be
sustained and expanded, and efforts must be made to preserve the environment, so
they can benefit future generations.

The UNDP followed up its HDI with its gender-sensitive HDI, using the same
indices to compare the level of human development by gender in each country;
UNDP called it GDI. Thus, it is now not enough just to get literacy rates or life
expectancies. Data must be gender specific, so that the welfare of male and
female within a country can be compared. For instance, the literacy rate for a
country may be 80%, but the data for males is 60% while for females is only
20%; this shows gender inequality of educational opportunity, meaning a low
GDI. For the Philippines, for instance, the GDI is higher than the HDI, fluctuating
in the 60s. Do you know what this means? It means that even if our resources are
not as much, females are not neglected in the development process.

In 1995 UNDP-HDI introduced the Gender Empowerment Measure (GEM), using

percentages of women in parliament, in decision making positions in government
ad the public sector, and their incomes compared to the men. I will discuss this in
detail in the module on Human Rights and Gender. Suffice it to say at this point
that the Philippines’ GEM is even higher than its GDI, for countries with
available data. Also, a similar study on the Gender Gap conducted by the World
Economic Forum places the Philippines among the top ten countries with the least
gender gap; and we are the only economically poorer country listed among the top
ten.
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Data from the different indices show the uneven level of human development by
country, the ten highest scores exhibited by developed countries like Canada, the
Scandinavian countries, USA, Japan, and some countries in Europe. They have
high levels of education, long life expectancies (in the 80s), and high income. The
lowest levels are found in poor African countries like Burkina Faso, Sierra Leone,
and some rarely mentioned countries, where life expectancy is as low as 40 years
and the level of education and literacy are very low.

This current view of development has had many ramifications in public

administration thinking. For planning and programming, countries concerned with
human development have sought (or should seek) to identify strategies to respond
to people’s minimum basic needs and to preserve the environment. This has also
greatly influenced public administration theory, as you can see in the last module.

ACTIVITY 1
Write a paragraph for one of these topics:

1. Justify whether the concept of human development is valid. It will help you
comprehend the concept better. In doing so, you may use the Philippines.
For example, can human development strategies based on HDI answer the
needs of slum dwellers in your city? What are the advantages of looking at
development beyond economic factors?
2. What do you think will be the implications of the new thrust on human
development on public management theory? Can it go much further than the
new PA and reinventing government?

Before you go to the next module, be sure you have read carefully the readings on
human development and have thought about its implications on strategies you
may plan as administrator or technical person in your organization, or may
formulate as politician. You must also bear in mind that, as concepts of
development have evolved and broadened, so did concepts of public management.

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14
Governance: Expanding the
Concerns of Public
Management

E ven if you did not attempt to write your essay on the topic of theoretical
implications of human development on PM theory, you must be aware, of
course, that HD has tremendous impact on theory, or at least on perceptions on
how government should respond to new changes. New PA and reinventing
government were actually earlier responses to the call to responsive management.
A bigger, conceptual response came from the UNDP in 1997, with its new policy
document, Governance for Sustainable Human Development. Governance has
been the guiding principle on subsequent UN actions; the academe has followed
suit.

OBJECTIVES

1. To enable the students to look at development issues and concerns from a

wider perspective, beyond economic development; and
2. To provide knowledge of strategies needed to foster sustainable human
development.

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READINGS

UNDP policy document, Governance for Sustainable Human Development, 1997.

Cariño. “The Concept of Governance”. If your learning center has the book, read
the entire book, which is short and readable.

SUPPLEMENTARY READINGS
UNDP. Human Development Reports. 1990, 1995, 2000, 2005, and latest.
Philippine Human Development Reports. 1994, 1997 and latest.

In its policy document, UNDP emphasized that sustainable human development

means “protection of life opportunities of future generations”, and cautions that
economic growth does not automatically lead to sustainable human development
and elimination of poverty; economic growth is only a means to sustainable
human development”. UNDP “focuses on four critical elements of sustainable
human development: eliminating poverty, creating jobs and sustaining
livelihoods, protecting and regenerating the environment, and promoting the
advancement of women”.

To attain the objectives of sustainable human development, the UNDP came up

with a new emphasis on governance, expanding the notion of government to
embrace sectors outside of government itself. Indeed, states have had to deal with
other sectors of society in politics and the economy. The UNDP placed emphasis
on the collaborative efforts the three actors it identified in governance—the state,
the private sector, and civil society. It called for the creation of a system of
governance that “promotes, supports, and sustains human development. The
UNDP called for a system of good governance to foster efforts towards
sustainable human development.

Read the document very well Define the three actors. What are the roles of the
three actors in governance?

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SAQ 2

a. What must the state do? List three.

b. What is the main role of business or the private sector?

c. Give two functions of civil society.

The state is government itself. How do you find similarities between the functions
of the state as prescribed by the UNDP document and the reinventing government
paradigm? It still does the directing, regulating and setting standards, though not
said in exactly the same words. The private sector is the primary source of
employment. Civil society, comprising NGOs. POs, media and church should be
protectors of citizen rights.

Above all, the main function of the state is to foster good governance. The UNDP
document characterized good governance as participation, rule of law,
transparency, responsiveness, consensus orientation, equity, effectiveness and
efficiency, accountability, and strategic vision. The Asian Development Bank in
2005 considered crucial elements of good governance—accountability,
participation, predictability of law, regulations and policies, and transparency.
How many of these are familiar to you from earlier theories of management? Are
there differences in definition? Not in the meanings; it is the emphasis given to
them in the UNDP document and the ADB Publication.

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ASAQ 2
a. Choose three from pages 5 and 6 of the UNDP document.
b. Choose from 7-8.
c. Choose from 8-0.

For your own deeper knowledge, which of the functions of each actor are most
important?

Now, read Cariño’s essay. The essay is the first of several materials on the
concept of governance, explored in the World Conference on Governance held by
the EROPA in 1999.

Cariño expounds on the concept of governance, first by looking at the art of

governing, as exercising power and authority over a territory, system or
organization. She adds: “All governing is an act of leadership, of moving a
society toward a preferred direction”. Preferred direction, if we put it within the
context of earlier material cited, is towards a sustainable, human development. Its
major role is “to facilitate by providing resources to assist markets and
communities”. In relation to business, these refer to standards of performance,
regulation, as well as motivation, through policies which should be implemented.
The state has also the responsibility of listening to the civil society voices of
advocacy and criticism.

Cariño essay presents a clear picture of what civil society organizations—NGOs,

POs, the church, the media, and similar organizations do or must do; they may
criticize existing policy and advocate for appropriate policies for the good of the
nation. She also explains how civil society pushes for governance. Civil society
organizations generally lobby for causes; many of them perform services to
supplement state effort. Thus, cooperation and collaboration between the state and
civil society must be fostered.

She concludes by saying that one lesson learned from the experiences of some
developed countries is that countries emerging from internal conflicts “all found
that governance—particularly decentralized governance—was necessary to make
concrete the commitments of all protagonists for peace”. For indeed, human
development can only be sustained in at atmosphere of peace.

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ACTIVITY 1
Identify an issue which you consider important in your city, or the nation,
which you think should be addressed by a system of good governance. For
instance, slum clearance, reproductive health, teachers. What role must the
state or city government perform? How should the private sector and civil
society be involved?

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15
Human Development and
Equality: Human Rights and
Gender
Proserpina D. Tapales

I hope you now have a clear idea about development for people. The UNDP,
having come up with the document on sustainable human development in 1997,
published another report the next year, entitled integrating Human Rights with
Sustainable Human Development. It is an expansion of the earlier concept,
putting emphasis on the aspect of equality through the recognition of human
rights as an approach to development strategies; it is known now as the rights-
based approach.

OBJECTIVES

1. To broaden the student’s knowledge of development for people as equality.

2. To enable the students to look deeper into strategies for development using the
rights-based approach.
3. To emphasize the importance of gender in the development perspective.

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READINGS

UNDP. Integrating Human Rights with Sustainable Human Development.

Tapales, Proserpina. “Engendering the Political Culture: Some Persistent Issues
on Women Empowerment in the Philippines”. Panorama (Journal of the
Konrad Adenauer Foundation). No. 2, 2006.

SUPPLEMENTARY READINGS
Review of Women’s Studies, Special Issue on Gender and Governance. 2002.
Review of Women’s Studies. Jan-June 2003. “The Manila Declaration”.
Read the 1998 UNDP document.

The document expanded the usual notion of rights— civil and political such as
voting, freedom of the press and religion, to include what it called the social,
economic and cultural rights, “including the right to an adequate standard of
living, the right to education, the right to work and to equal pay for equal work,
and the rights of minorities to enjoy their own culture, religion and language”. It
address:

Of particular importance to this view is the protection and advancement of

the rights of the disadvantaged and minority groups, such as women,
children and indigenous peoples. The United Nations has adopted this
holistic approach in determining what human rights are.

The UNDP document further stressed that “human rights and sustainable human
development are interdependent and mutually reinforcing.” Thus, the document
listed as its aims the following:
1. Eliminating poverty and sustaining livelihoods;
2. Promoting the advancement of women;
3. Protecting and regenerating the environment; and
4. Developing capacity for good governance.

There have been later developments, such as the protection of ethnic

communities. However, since the document specifically addresses women, we
will confine our discussion here to women, a sector which the UN has been
supporting through policy initiatives since 1975. Moreover, the present thrust in
UN training is gender and development.

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Before going further, let us define some relevant terminologies. The earlier terms
used by the UN were women in development (WID), then women and
development (WAD). The current terminology used is gender and development
(GAD). The first term looked at the role of women in development, focusing on
their expanded role in the economy; the second term used looked closely at the
role of women in different aspects of life, focusing on their different roles and
needs which can be harnessed for development. The last term is considered more
apt because, while it stresses the woman’s role in society, it recognizes that those
roles are gendered, in other words, learned. Moreover, gender connotes not just
female but also different types of gendered roles.

Now for our definitions. Sex has physiological reference; one is born male or
female. On the other hand, gender roles are learned through the process of
socialization in society. One learns to be a boy or a girl; in other words, one learns
the behavior expected of him in society. These come in the form of toys; for
instance, guns for boys and dolls for girls, repeated in songs and media hype. One
is taught at home and in school how to behave as a man or a woman, performing
roles in society. Thus, the term gender has cultural connotations. For instance,
historically, research shows that the pre-Spanish Filipino women could own
property, serve in important societal roles like the babaylan, the village priestess,
astrologer and medicine women. These concepts were changed to relegate the
woman to church and home when Spanish-western Catholic colonization crept
into our shores in 1521. However, anthropologists have showed that in some areas
such as the Bontocs of the Mountain Province, there remain more egalitarian
relations between the sexes, because of centuries of practice, and lesser colonial
influence.

The concept of gender and development or GAD (remember this acronym) posits
that gendered relations (from learning gender roles) affect development, since
relegating women in different societies into lower roles keep them forever in a
lower status than the males, whereas they can be harnessed well as contributions
in the development process. Thus, development should also consider their
peculiar needs as mothers and individuals. Development planning must take
women’s concerns into consideration. Thus came the terms gender analysis for
program planning, and the latest, more radical approach which we now have in
the Philippines, providing for a gender budget.

What is so peculiar about considering gender in development? The UN came up

with the recognition that it is not only women’s contribution in society that
matters, but what women are persons also with their own rights; just as the
concern for other sectors left out in the development process, e.g., tribal
communities, have their rights.

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During the 1995 International Women’s Conference held in Beijing, China, one
guest speaker was then US First Lady Hilary Clinton. In her speech, she
emphasized that women’s rights are human rights, which has been reinforced by
the 1998 UN document. The disparities in GDI mentioned earlier shows that in
many countries, especially in the south (formerly called third world) the rights
accorded to males, such as in education, are not given to females. This is what the
UN is aiming to redress. In fact, one major goal of the UN’s Millennium
Development Plans is to redress this gender inequality.

SAQ 1
1. How can good governance promote the advancement of women? What
does the UN document say about it?

2. What do you say about it?

In 2001, the UN held a regional conference for women political officials in

Phitsanulok, Thailand. There, the women crafted the Phitsanulok Declaration,
which called for increasing government efforts to look at the welfare of women
and girls. In 2003 the UN conducted national conferences for local women
officials. In the Philippines it was held by the National Commission on the Role
of Filipino Women with secretarial support from the UP Center for Women’s
Studies and the UP-NCPAG’s Center for Local and Regional Governance. The
conference, called “Summit of Women Local Chief Executives and Legislators”
likewise produced the Manila Declaration, calling for government initiatives for
women.”

The Philippines’ active policy of decentralization has helped so much in terms of

training women local officials to advocate for policies for women, by providing
awareness for gender concerns and responses for them through gender policies.
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Yet, this is not the first time efforts for the women’s cause have been exerted.
Since 1985 the National Commission on the Role of Filipino Women had been
conducting workshops at all levels of government, for men and women, to
provide them the gender perspective. By providing them with the women’s
situation, the policy makers are able to find ways to provide policies and
programs for women.

ASAQ 1
1. Choose your answers from pp. 8-9 of the document.
2. For your own views from those.

Now read the Tapales article on “Engendering Local Governance”. It describes

the Philippine situation in terms of women’s status and state and civil society
responses.

In Module 14 I mentioned that the Philippines fares well in terms of gender and
development. Indeed, our women have been benefited by a Constitutional
provision providing for equality of women and men, as well as by subsequent
policies. Among them is the very significant law, Women in Development and
Nation Building (RA 7192 or the Roco-Rasul Bill), which removed
discriminatory practices against women; it allowed women to borrow money by
themselves, enter formerly exclusive clubs and the military academies and police
forces. The Family Code removed some unequal provisions of the civil code
affecting the relationships between men and women (President Aquino’s
executive order). Other laws followed—anti-rape, anti-violence against women
and children, and anti-trafficking of women and children, provision for day care
in barangays and offices. What has been considered a breakthrough for Filipino
women is the so-called gender budget (mentioned earlier) which mandated as
early as 1995 that 5% of national agency budgets should be set aside for women-
oriented programs. Later, the mandate was extended to local governments. This
admonition has been difficult to implement; definitions of some agencies of the
GAD budget include the salaries of their women employees in the 5%. Professor
Leonor Briones of NCPAG found in a study that agencies tend to define its as
programs only for women in their offices rather than for the agency’s clientele.
Findings of some of my students in my Gender and Governance course showed
that the gender budget of some agencies tend to provide for mundane projects or
for those which cannot be funded by their regular funds. In that case, these are
being resolved by the government and development funders in the country.
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Such protections have been largely responsible for the higher GEM of the
Philippines since the inception of the concept in 1995; some have been due to the
higher status of women in the country. As mentioned in Module 14, the
Philippines has been ranked among the top ten countries (among 115 studied)
with the least gender gap by the World Economic Forum in 2007. The other nine
countries in the list are all more developed economically than the Philippines:
Sweden, Norway, Finland, Iceland, Germany, New Zealand, Denmark, the United
Kingdom, and Ireland. Surprise, the richest country in the world, the USA, is not
among the top ten. However, as academician and columnist Michael Tan said,
Filipinas should not be too complacent because, in reality, there is inequality
between male and female in the country—the Philippines income for women
workers is still 59 centavos for every peso earned by the men. This last variable is
responsible for the Philippines GEM ranking lower than the top ten in the Human
Development Report.

We must also be aware that women’s actual political participation as elected

officials is still low in proportion to the women in the population. Moreover,
many of the women in politics belong to political dynasties, or relatives of those
already in political office, as substantiated by research. This is important to
consider, since the more women are in policy-making positions, the more
advocacy for women is possible. However, physiological sex is not a prerequisite
in itself; those women must have the gender perspective; in other words, looking
at development from what we call the “gender lens”. Some men have the gender
awareness needed for public policy; we have seen that many of the laws
benefiting women have been co-sponsored by men. That is why the focus on
gender and governance is very important. As noted by the NGO Report on the
status of Filipino women after the Beijing conference (2000), training for women
leaders is not wanting; it is the number of women to be trained entering politics
which must be expanded.

There are many women in the bureaucracy; 72% of technical persons are women,
and 32% of those in top administrative positions are women. These numbers are
important, considering that those women are in policy-making and policy support
positions. In all, what it boils down to is that, we need not only women in policy-
making, but women and men who are aware of and committed to uplifting the
plight of women and children.

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ACTIVITY 1
Look around your barangay or homeowners association. What project do you
think the women in your community need? In doing so, be aware that women-
oriented projects need not be just for them but for those other clients who are
among their concerns. (Hint—children, family, work, domestic violence).

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