streamlining the bureacracy 1.10.2018

Reengineering the Bureaucracy

for Better Governance

Major portions from

Presidential Committee on Streamlining the

Bureaucracy Department of Budget and Management

August 1995

What is a bloated bureaucracy? Will a

one-time abolition of 3 departments,

reduction of 300,000 or so civil servants

and generation of savings of several

million pesos substantially alter its

essence, enough to transform it into a

mean and lean machine?

Or is the persistent impression of bigness

rooted in the causes that transcend the

structural facade and goes as deep as the

fundamental philosophy that predicate its

existence?

Pervading Bureaupathologies

The study conducted supports the latter

premises for pervading bureaupathologies

emanate from lack of philosophical

foundation of governance and the relevant

structural framework.

The study of the bureaucracy and its

dysfunctions shows that over the years

the national government has increasingly

expanded its role and control of societal

activities to the point of stifling the private

sector, while being generally ineffective in

its basic governance functions and

sectoral operations.

The most visible dysfunctions include:

a. Extensive direct production activities,

where the national government assumes

direct responsibility even for the

production of private goods.

b. Pervasive regulations in the various

sectors.


c. Overcentralized government operations,

where even the production and delivery of

local public goods are still done primarily

by the central government.

d. Weak basic governance functions, visible

in the poor peace and order condition and

slow system of justice.


e. Inefficient bureaucracy, manifested in

duplication, proliferation and overlapping

of functions, large overhead expenditures

and poor public services.

The government has already taken

tremendous strides in the reforming the

quality of governance. It has embarked on

a liberalization program, and initiated

efforts towards streamlining agency

operations and reducing the huge

personnel expenditures.

It has pursued innovations in the joint

financing of government development

programs by design government-private

sector partnership schemes and has

enacted the milestone legislation

devolving functions to local government

units.

We are gaining momentum in improving

governance and management in

bureaucracy. But the efforts are not

enough. It is time to seize the

momentum and muster the political will

to put in place the needed

comprehensive and speedy, yet

workable reform of the entire business

of governance.

Adopting a new paradigm of governance

Good government can no longer be

achieved simply by working more, harder,

longer, and faster. Effective governance

can no longer be realized simply by

assuming the main responsibility for all

societal concerns. Efficient government

administration can no longer be

maintained simply by correcting the

superficial symptoms of a dysfunctioning

bureaucracy.


A plethora of ideas on how to streamline

the bureaucracy and make government

more effective has been put forth from

many directions, such as: radically limiting

the number of departments to 12, requiring

Department Secretaries to submit

performance commitments, improving

agency systems and procedures, adopting

public satisfaction indices for measuring


Agency performance, and increasing

funds to support more government

programs. While many of these measures

may be worth pursuing, they no longer

provide adequate solutions to our problem

in governance. Our experience with past

reorganizations tell us that mere moving

and splitting of boxes generated

paradoxical effects: government became

more expensive in scope and has been


overly interventive to the point of stifling

the private sector initiative in several

areas. Also, as the bureaucracy expanded

in terms of number of agencies and

manpower, problems of duplication and

overlapping worsened.


Although several changes and specific

innovative reforms are generally in placed

in government, our thinking, attitudes and

decision making have not kept pace with

changing realities. Out of habit, we

respond to problems in the ways of old.


Our policy makers still want to believe that

government should directly solve all

identified societal problems instead of

empowering and enabling citizens to help

themselves. To do this, they create a new

agency and commit uncertain revenues for

every societal problem that government

needs to address.


These may have worked back in the olden

times when government ran the entire

society. The problem is that these

measures don’t work anymore.


Government needs to catch up and reckon

with the forces of change in society, if at

all it is going to play a significant role in

propelling this country to sustain progress.

Principles of Governance

It is in these context that a new paradigm

of governance is presented in this report.

It debunks preconceptions of “increase

inputs for increased outputs” and vice

versa. It goes beyond asking the question

of what government institutional

arrangements will achieve development

goals. It does not just streamline systems

and procedures.

Principles of Governance

It addresses the core issue of governance.

It offers a new paradigm of governance by

purely defining and articulating the

fundamental principles that will guide the

determination of the proper scope, level,

focus, and structures of government

intervention in society. The trinity of

principles presented hereunder are not

mutually exclusive but are inextricably

related to one another.

1. Principles of Frugality and Prioritization

A conscious and deliberate attempt will be

adapted to define what the government

will do, at this particular time in our history

within the universe of what it must do,

based on the constitutional mandate and

legal issuances can do, within institutional

resources and constraints, and wants to

do, wishes in the development plan and

other policy pronouncements.

1. Principles of Frugality and Prioritization

THE SCOPE OF GOVERNMENT SHALL

BE WITHIN AVAILABLE RESOURCES

AND ITS ACTIVITIES ACCORDINGLY

PRIORITIZED. (Exhibit 1.1)

SCOPE OF GOVERNANCE

Objective:

TO DEFINE

THE SCOPE

OF WHAT

GOVERNMENT

WILL DO AT THIS

TIME IN OUR HISTORY

RESOURCE AND

INSTITUTIONAL CAPACITIES

Gaps:

-insufficient incentives

-low morale

-discrepancy between

authority/responsibility and

accountability

-poor accountability

-defective systems and procedures

Can

Do

Want

To Do

Must

Do

Gaps:Limited Resources

-Institutional

WILL

DO MANDATED BY

EXISTING LAWS

Gaps:

-political will

-political maturity

-legal infirmities

GOVERNMENT POLICIES,

SOCIO-ECONOMIC PLANS/

PROGRAMS / PROJECTS

1. A. Governments Primary Responsibility

With limited resources, government needs

to focus its priorities. THE PRIMARY

RESPONSIBILITY OF THE

GOVERNMENT IS THE EXERCISE OF

EACH FUNDAMENTAL FUNCTIONS.

These involve, in particular, the

responsibility of establishing and ensuring

the provision of the and appropriate social,

political and physical environment which

development can occur and prosper.


These involve, in particular, the

responsibility of establishing and ensuring

the provision of the and appropriate social,

political and physical environment which

development can occur and prosper.

These are the following:

a. management of macro-economy,

including the formulation and

implementation of socio-economics, fiscal

and monetary policies;


b.) Maintenance of peace and order, and

national and political security;

c.) Conservation of natural resources and

ensuring their productive utilization and

sustainable development;

d.) Maintenance of reliable system of

administering justice, law making and law

enforcement;

1 . A. Governments Primary Responsibility

e.) Provision of adequate and appropriate

infrastructure;

f.) Provision of quality education, specially to

the poor and disadvantaged population;


g.) Promotion of economic, and political

diplomacy, developing and effectively

achieving sound and mutually productive

economic and political relationships with

other nations and international

communities; and

h.) Mitigation of disasters and managements

of state emergencies.

1.B. Frugality and High Leverage Government

operations

The government shall exercise prudence

and restraint in the use of its resources by

prioritizing, re-defining and focuses its role,

interventions and operations, in accordance

with the principles prescribed in this report.

Also, where government has to intervene

directly in society, it shall engage in high

leverage operations i.e., those that will

generate the most socio-economic returns

or impact for the least amount of efforts and

other resource inputs.

2. Principle of Steering

The government will, to the extent

possible, assume an indirect role in sector

participation. THE ROLE OF THE

GOVERNMENT IN THE SECTORS

SHALL BE TO STEER RATHER THAN

TO ROW. It will mobilize the instruments

that contribute to achieving sectoral

objectives.


The focus of its functions will be of the

following:

a.) Policy setting, monitoring and

assessment;

b.) Promotion and advocacy;

c.) Provision of information, or linkages or

access to markets, services and

production inputs and outputs;


d.) Provision of assistance and incentive

that will equalize and level the playing

filed;

e.) Enforcement of appropriate rules and

regulations;

f.) Ensuring the provision of safety nets for

adversely affected population.


The focus of its functions will be of the

following:

a.) Policy setting, monitoring and

assessment;

b.) Promotion and advocacy;

c.) Provision of information, or linkages or

access to markets, services and

production inputs and outputs;

RELATIONSHIP WITH THE PRIVATE

SECTOR

The determination of the government’s

relationship and partnership with the

private sector in the development effort will

be guided by the following:

a.) Government will strive to let the market

operate by itself. It will establish a stable

policy environment, set minimum and

appropriate rules and provide information

rather than directly engage in the provision

and production of goods and services;


SECTOR

b.) The private sector will be encouraged to

share, to the extent possible, in the

responsibility and the cost of the provision

of public goods and services; and


SECTOR

c.) The private sector will assume the

primary responsibility of public goods and

services

GROUNDS FOR GOVERNMENT

INTERVENTION

The government may intervene in society if

such intervention is intended for the

following:

a.) to provide guidance for private decisions,

promote the free exercise of individual

choice or the preference of the majority,

and permit such choice and preference to

be made more efficiently or correct failures

in the process by which private choice and

decisions are exercised;


INTERVENTION

The government may intervene in society if

such intervention is intended for the

following:

b.) To achieve distributive justice or to

correct inequity;

c.) To mitigate against threats to political

stability and national security;


INTERVENTION

d.) To positively influence the functioning of

the economy, enhance the proper

allocation and mobilization of resources

and other economic agents and achieve

efficiency;

e.) to set appropriate rules and procedures

for the determination and protection of

individual rights, and for the rectification

and prevention of iniquities; and


INTERVENTION

f.) to minimize the cost of achieving

economic objectives and mitigate against

the negative impact of market behavior on

productivity on producer incentives.


INTERVENTION IN THE SECTORS

The purpose of government intervention in the sector is

to support measures that make the free market work

better. The government may intervene in the sectors

only if such intervention will:

a.) Stimulate competition, innovation and

growth in output and productivity, and

establish stability and sustainability;

b.) promote the use of more advanced

technology in production;







c.) improve the utilization and mobilization

of resources and investments;

d.) provide guidance for making individual

decisions as well as provide protection

and redress for the exercise of individual

rights;







e.) Set appropriate rules and procedures

for the determination and protection of

individual rights;

f.) Provide an environment of equal

opportunity and asses to the masses of

production and higher income ;







g.) Correct situations that hamper

productivity and perpetuate inequity, and;

h.) Provide public goods where the public

benefits therefrom exceeds the private

benefits.


REGULATION

The government may regulate sectoral

activities only if such regulation will:

a. Prevent undue deterioration of

destruction of the environment or natural

resources (such as pollution control,

restrictions on the exploitation of

endangered animal species);


REGULATION



b. Prevent monopolies and cartel and

stimulate competition (such as tariff

reduction);


REGULATION



c. Prevent unethical behavior of business

and ensure require minimum quality

standards or prevent the undermining of

the quality of goods and services such as

product standards);


REGULATION



d. Achieve equitable distribution of

development, or prevent undesirable

development to occur (such as zoning

rules, restrictions on the construction of

factories in city centers);


REGULATION



e. Protect the rights of individuals and

organizations against the abuses and

excesses of others (such as retrictions on

electrical connections);


REGULATION



f.) maintain order or correct situations that

inhibit the smooth and efficient flow of the

inputs and outputs of the economy ( such

as transport and traffic route restrictions);


REGULATION



g.) Generate revenues or recover

investments ( such as user charges,

taxation);

h.) ensure the proper utilization and

resources by discouraging its wasteful use

(such as user charges on roads); and


REGULATION



i.) Ensure public safety.


REGULATION

Further, regulatory activities pursued under

the above conditions shall be permitted

only under the following conditions.

a.) Private initiative and competition will not

stifled;

b.) It will not result in inequities and

discrimination


REGULATION

Further, regulatory activities pursued under

the above conditions shall be permitted

only under the following conditions.

c.) The regulation will be administratively

enforceable, cost-effective and will not

create opportunities for graft and

corruption, and


REGULATION

Further, regulatory activities pursued

under the above conditions shall be

permitted only under the following

conditions.

d.) It will not overlap with existing

regulations or, being consistent with or

contradictory to other existing government

intervention.

3.A. Principle of Vertical

Compartmentalization

To the extent possible, societal functions

and activities of the government should be

so organized as to reduce duplication of

effort, and maximize the use of all

resources to achieve socio-economic and

political goals..

3.A. Principle of Vertical

Compartmentalization

SECTORAL ACTIVITIES SHALL BE

PROPERLY COMPARTMENTALIZED AND

ACCORDINGLY APPROPRIATED BETWEEN

THE GOVERNMENT AND PRIVATE SECTOR.

GOVERNMENT ACTIVITIES SHALL BE

PROPERLY DISTRIBUTED AMONG LEVELS

OF GOVERNMENT – CENTRAL

GOVERNMENT, GOVERNMENT

CORPORATIONS, AND LOCAL

GOVERNMENT UNITS.

PROVISION OF PUBLIC GOODS

THE DETERMINATION OF THE LEVEL AND PRIORITIZATION OF THE

PROVISION OF PUBLIC GOODS BY THE GOVERNMENT SHALL BE IN

ACCORDANCE WITH AVAILABLE RESOURCES AND THE POLITICAL AND

SOCIO-ECONOMIC OBJECTIVES OF GOVERNMENT UNITS. (Exhibit 4)

VERTICAL COMPARTMENTALIZATION

FROM THIS TO THIS

NG

LGU

GOCC

PRIVATE

SECTOR

NG

LGU

GOCC

PRIVATE

SECTOR

CONDITIONS FOR GOVERNMENT RESPONSIBILITY

FOR PUBLIC GOODS PROVISION.

The government may assume the responsibility

for the provision of public goods and services if

such provision will;

a.) Direct support private sector production (

such as irrigation, telecommunications, and

transportation tax incentives);

b.) Enhance the supply and quality of labor,

entrepreneurs and managerial manpower (such

as education);



The government may assume the responsibility

for the provision of public goods and services if

such provision will;

c.) Positively influence the allocation of private

sector inputs (such as financial assistance to

farmers);

d.) Upgrade the technology of production (such

as research and technology transfer schemes);

and



e.) Correct monopolies and iniquities, and

remove discrimination (such as investment

incentives that encourage competition, subsidies

to farmers ).

GROUNDS FOR DIRECT GOVERNMENT PROVISION

OF PUBLIC GOODS

The government may direct provide public

goods and services only under the following

conditions:

a.) Investments involved are so huge the private

sector capacity is insufficient (such as

establishment of railways, highways, river

basins);

b.) If there is insufficient or absence of private

sector participation (such as nuclear research,

agricultural extension );


OF PUBLIC GOODS



conditions:

c.) If the provision is needed to correct severe

poverty situations (such as primary health care

basic education );

d.) If the goods or service is to be given free of

charge (such as police protection) ;


OF PUBLIC GOODS



conditions:

e.) If there is a lack of developed markets (such

as science and technology research ) ; and

f.) If such good or service is required in cases of

national emergency or for disaster mitigation

(such as food subsidies to victims of natural

calamities).

CONDITIONS FOR DIRECT GOVERNMENT PROVISION

OF PUBLIC GOODS

To the extent possible, government shall refrain

from engaging in the direct production of public

goods, and relegate such responsibility to the

private sector. LIMITED AND RATIONALIZED

PRODUCTION OF PUBLIC GOODS BY THE

GOVERNMENT WILL ENABLE IT TO FOCUS

ON ITS MORE IMPORTANT FUNCTIONS OF

GOVERNANCE.


OF PUBLIC GOODS

The government may undertake direct

production of public goods and services only

under the following conditions:

a. If such production involves national security

(such as production of intelligence data);

b. If there is an absence of private sector

production (such as issuance of permits);

c. If the cost of production of such goods or

service can not be recovered ( such as police

protection).


OF PUBLIC GOODS




d.) If private sector production is inadequate

(such as provision of material, health care for the

poor); and


OF PUBLIC GOODS




e.) If there is lack of private sector interest due to

huge or long gestating investment required, or

high risks involved; and, if the public good can

not be priced commercially because to do so will

not result in the generation of optimum social

and economic benefits

PRIVATE SECTOR PARTICIPATION IN GOVERNMENT

PRODUCTION OF PUBLIC GOODS



under the following schemes: Franchising,

private sector management, co-ownership

schemes, management contracts, or lease

agreements.

PRIVATE SECTOR PARTICIPATION IN GOVERNMENT


Where government engages in direct production

of public goods, the participation by the private

sector should be encourage to the extent

possible, for example,

e. If there is lack of private sector interest due to

huge or long gestating investment required, or

high risks involved; and, if the public good can

not be priced commercially because to do so will

not result in the generation of optimum social

and economic benefits

3. B. PRINCIPLE OF DEVOLUTION

(DECENTRALIZATION )

The national government and local government

units shall be partners in the pursuit of the

development process. They will formulate

cooperative strategies and mechanisms to

accomplish tasks of mutual interest and benefit,

and support government’s ability to cope with

problems and changing conditions.


(DECENTRALIZATION )

The empowerment of local government units

through devolution will allow multi-sectoral

decisions to be as close as possible to the

spatial location of the problem, thereby

improving relevance and responsiveness.


(DECENTRALIZATION )

THE PROPER ROLE OF THE NATIONAL

GOVERNMENT IS TO GET NATIONAL POLICY

AND STANDARDS AND ASSIST, OVERSEE

AND MONITOR LOCAL GOVERNMENT

UNITS, COMPLEMENTARY TO THE

STRONGER IMPLEMENTING ROLE THAT

LOCAL GOVERNMENTS SHALL ASSUME.


(DECENTRALIZATION )

For this purpose, the national government will

continuously devolve to local government units

the authority, responsibility and accountability to

make decisions and undertake actions on local

public issues. Further, the national government

will increase and accelerate the devolution of the

provision and the production of public goods to

improve relevance, efficiency, transparency.

INSTITUTIONAL DEVELOPMENT OF LOCAL

GOVERNMENT UNITS

The national government, in coordination with

local government units, will formulate and

pursue a long term institutional development

program for local government units

strengthening their capacities and capabilities to

assume a wider range of functions. Such

institutional development process will involve the

improvement of revenue generation,

development and investment planning,

INSTITUTIONAL DEVELOPMENT OF LOCAL

GOVERNMENT UNITS

programming and budgeting, performance

assessment, as well as the overall capability of

LGUs to manage the entire local socio-economic

development process.

NATIONAL – LOCAL PROVISION OF PUBLIC GOODS

The delineation of authority and responsibility

between the national government and the local

government units in the provision of public

goods will be determined and agreed upon. THE

NATURE OF THE PUBLIC GOOD AND THE

EXTENT OF THE GEOGRAPHICAL SPILL

OVER EFFECTS OF BENEFITS AND COSTS

ARE THE DETERMINING FACTORS FOR THE

NATIONAL OR LOCAL PROVISION OF SUCH

PUBLIC GOOD.

GROUNDS FOR THE DEVOLUTION OF THE PROVISION

OF PUBLIC GOODS

The function to provide public goods will, to the

extent possible, be devolved to local

government units guided by the following:

a.) the benefits and beneficiaries are location –

specific (such as provision of traffic signals); and

b.) there are minimal externalities involved, or

the benefits and costs do not have geographical

spill over effects (such as provision of street

lights).

DETERMINATION OF THE LEVEL OF LOCAL

GOVERNMENT TO WHICH A FUNCTION IS DEVOLVED

The proper level of local government to which a

function is to be devolved will be determined and

agreed upon in order to achieve efficiency,

effectiveness and responsiveness. THE

EXTENT OF GEOGRAPHICAL SPILL OVER

EFFECTS SHALL DETERMINE THE LEVEL OF

LOCAL GOVERNMENT TO WHICH A

FUNCTION IS TO BE DEVOLVED.

CONDITIONS FOR SHARING NATIONAL-LOCAL

RESPONSIBILITY IN THE PROVISION OF PUBLIC

GOODS

The sharing responsibility between the national

and local governments in the provision of public

goods shall be clearly delineated and agreed

upon, guided by the following:

a. The national government may assume the

responsibility for the provision of local public

goods, but devolve the responsibility for their

actual production and delivery to the local

government units;



GOODS

The sharing responsibility between the national

and local governments in the provision of public

goods shall be clearly delineated and agreed

upon, guided by the following:

b. The national government may assume the

responsibility for the provision of local public

goods, but devolve the responsibility for their

delivery for their delivery to the local government

units; or



GOODS

c.The national government may devolve the

responsibilities for the provision, production and delivery

of public goods, and limit its role to providing financial

assistance and linkages. To this end, the national

government shall determine the financial impact on local

government units of assigning the provision of local

public goods to them. Where the financial resources of

the local government units are inadequate, the national

government shall provide financial assistance to the

extent possible.

NATIONAL-LOCAL PRODUCTION OF PUBLIC GOODS

The delineation of functions between the

national government and the local government

units with respect to the production of the public

goods will be clarified. EFFICIENCY AND

ECONOMY ARE THE DETERMINING

FACTORS FOR THE NATIONAL OR LOCAL


CONDITION S FOR DEVOLUTON OF THE


The production of the public goods will, to the

extent possible, be devolved to the local

government units, guided by the following

criteria:

a. If the production by the national government is

costly is because of the need to maintain a

vertically integrated structure to support

production and delivery; and

CONDITION S FOR DEVOLUTON OF THE


The production of the public goods will, to the

extent possible, be devolved to the local

government units, guided by the following

criteria:

b. If the public good does not require uniformity

across political subdivisions, based on nationally

determined standards.

3.C. PRINCIPLE OF HORIZONTAL

COMPARTMENTALIZATION

The functions and activities of the executive

branch will be arranged in relation to one

another to ensure that there are no unnecessary

duplications, that no effort is wasted, and that all

necessary steps are taken in the right order,

thereby contributing efficiently towards common

objectives.



THE PROPER COMPARTMENTALIZATION OF

THE FUNCTIONS AND ACTIVITIES OF THE

EXECUTIVE BRANCH IS THE PRE-

CONDITION FOR ACHIEVING EFFICIENCY,

EFFECTIVENESS, RESPONSIVENESS AND

ACCOUNTABILITY IN GOVERNMENT

OPERATIONS.



Accordingly, existing duplication, proliferation

and redundancies in the functions and structures

and departments and agencies will be removed

and prevented from recurring by re-engineering

the overall structural configuration of the

Executive Branch as well as the mission,

functions, and structures of specific departments

and agencies in accordance with the following

guidelines:

ESTABLISHMENT OF THE PRIMARY NETWORK OF

THE EXECUTIVE BRANCH

The appropriate hierarchical levels of

organizations comprising the Executive Branch

will be clarified, with a view to de-layer it’s entire

organizational structure. Accordingly, the

primary network of the Executive Branch which

will be the basis for the determination of

placement and grouping of governmental

functions, activities and corresponding

instrumentalities will be established.

CLEA DELINEATION OF DEPARTMENT MISSION AND

FUNCTIONS

The demarcation between the mission,

functions and sphere superior of operations in

accountability of one department or primary

subdivision of the Executive Branch and those of

another, will be established as clearly as

possible, guided by the following:

a. There should be clear separation between

policy, planning, housekeeping, and result-

producing functions;


FUNCTIONS

b. Each primary subdivision of the Executive

Branch should be functionally integrated to

enable it to fully realize its mission. As much as

possible, departments, agencies or units with

similar or inter-generic functions should be put

together under one organization. Monitoring and

performance assessment capabilities should be

infused in the policy-making, planning and

programming, and implementation to ensure

accurate and timely evaluation of performance.


FUNCTIONS

Complete staff support functions necessary for

policy development, formulation of plans, and

implementation of programs should be provided,

to include but not be limited to research and

development, public information, information

management, legal and legislative services, as

well as administrative, financial management

and human resource development functions.

ACCURATE DETERMINATION OF THE NATURE AND

POINTS OR INTER—DEPARTMENT COORDINATION

With the clear delineation of missions,

functions, and accountabilities between

departments, the specific points of

coordination of inter-related functions

should be clearly defined.

CONCLUSION

The three principles and their

corresponding guidelines provide a

package of conceptual and analytical tools

that will enable policy makers streamlining

the bureaucracy and the individual

department heads re-engineering the

respective departments and agencies to

analyze agency dysfunction in governance

and determine the proper role, focus and

priotization of agency functions.

CONCLUSION

The three principles and their

corresponding guidelines provide a

package of conceptual and analytical tools

that will enable policy makers streamlining

the bureaucracy and the individual

department heads re-engineering the

respective departments and agencies to

analyze agency dysfunction in governance

and determine the proper role, focus and

prioritization of agency functions.

CONCLUSION

The principles will guide the determination

of those concerns that should be relegated

to the private sector, or devolved to local

government units, as well as those that

should be addressed by the central

government, the principles will guide the

department concerned in determining the

proper interventions. In essence, the

application of these principles hopes to

address the identified core problems

CONCLUSION

In governance and establish a national

government bureaucracy that does the

right things and does them right.

CHAPTER 2 DESIGNING A STRUCTURAL FRAMEWORK

FOR EFFICIENT GOVERNMENT OPERATIONS

The development and adoption of what is

deemed to be the best structure will not

guarantee good organizational

performance, but the wrong one will make

a poor performance a certainty. The

appropriate administrative structure,

therefore, is a prerequisite to a well-

performing bureaucracy.

The structural framework translates the

principles of horizontal

compartmentalization into a detailed

articulation of concepts and design

guidelines containing two key components

First, it prescribes the organizational

design principles for determining the

overall structural configuration of the

Executive Branch and identifying its

primary subdivisions. It also establishes

the criteria in guidelines for the proper

sorting and attribution of government

functions to the primary subdivisions.

Second, it present models for the internal

organization structure of departments and

other entities comprising the primary

subdivisions of the Executive Branch. The

models are accompanied by a set of

criteria and guidelines for the proper

sorting, attribution and synchronization of

department operations among its various

internal units.

The structural framework is capsulized into

typology of government organizations

which provides a system of classifying all

government agencies in accordance with

their common organizational attributes:

nature of missions and functions, power

and leadership structure, organizational

level and placement, and financing source.

The element in the structural framework

and the corresponding guidelines are

presented in simple format and deductive

sequence for convenient interpretation and

application.

Overall Structure of the Executive Branch

The overall structure of the Executive

Branch is established in the basis of the

following design parameters:


a. ADOPTION OF ONE-LEVEL PRIMARY

SUBDIVISION.

This concept corrects the existing

situations where bureau-intermediate, and

department-level agencies report directly

to the President, burdening him with

operational concerns.


a. ADOPTION OF ONE-LEVEL PRIMARY

SUBDIVISION.

For purpose of achieving coherence,

all primary subdivisions of the Executive

Branch shall be those that are department

of equivalent level, headed by a member

of the Cabinet or an equivalent position.

Primary Subdivision of the

Executive Branch

PRESIDENT

DEPARTMENT

A

BOARD C

BOARD D

CENTER E

DEPARTMENT

B


Executive Branch

Intermediate

Intermediate

Bureau

PRESIDENT

DEPARTMENT

A

BOARD C

BOARD D

CENTER E

DEPARTMENT

B

FROM THIS

Rank of

Agency Head

ORGANIZATIONAL

LEVEL

Cabinet

Secretary Department

Undersecretary

Assistant Secretary

Department


Executive Branch

Intermediate

Bureau

PRESIDENT

DEPARTMENT

ADEPARTMENT

B

TO THIS

Cabinet

Secretary Department

BOARD C

BUREAU EBUREAU D

Undersecretary /

Assistant Secretary

Director

B. SEPARATION OF TOP MANAGEMENT, CONSCIENCE /

HOUSEKEEPING AND RESULT-PRODUCING

OF THE BUREACRACY

This prescribed parameter a lost focussed

role and functions, and clarifies

responsibility and accountability for each

primary subdivision of the Executive

Branch by separating top management

functions involving national policy

decisions and policy advise to the

President;



OF THE BUREACRACY

conscience / house keeping activities

which involves oversight functions of the

bureaucracy; and result producing

functions which deal with sector

management.



OF THE BUREACRACY

Following this concept the primary network

of Executive Branch shall consist of the

Councils Offices and Departments.

EXECUTIVE BRANCH CONCEPTUAL HIGH LEVEL STRUCTURE

NATIONAL

POLICY DECISIONSPRESIDENT

COUNCIL COUNCIL COUNCIL COUNCILTop

Management

Functions

OFFICE OFFICE OFFICE OFFICE

DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT

Conscience /

Housekeeping

Functions

Result

Producing

Functions

Macro Policy

Advisory

Agency

Headed by

The President

Oversight /

Agencies /

Policy /

Technical

Support

Agencies

To the President

Sector

Management

Agencies dealing

with respective

publics

Council

The council is the highest policy making

body of the Executive Branch which

provides advice to the President on socio-

economic, political, security and other

policy issues of vital national and

international importance. It is purely

advisory and does not engage in public

good provision, production in delivery, or

regulation.

Council

The council is a collegial body headed by

the President and composed of both

Cabinet and Private Sector members as

maybe appointed by him and provided for

by law.

Office

The office is an oversight agency

responsible for providing policy and

technical staff support to the President in

areas concerning the management of

bureaucracy or the formulation of Macro-

Economic Policies. It may also be directly

responsible for the general administration

or regulation of the functioning of the

bureaucracy as a whole.

Office

The office is headed by a Secretary or

equivalent position who is also a member

of the cabinet.

Department

The department is the result-producing

unit of the Executive Branch responsible

for the overall management of a sector, or

a permanent national concern with

nationwide or international impact. The

department has a well-designed set of

goals concerning a fundamental part of the

socio-economy which can be achieve to

the accomplishment of homogeneous

outputs.

Department

It performs a comprehensive set of

functions pertaining to the assigned sector

or functional area, including sectoral policy

formulation and program planning,

promotion, regulation as well as provision,

production and delivery of public goods, in

accordance with the principles of

governance and guidelines stipulated in

this report.

Department

As a producing entity, the department has

an identified public which it directly serve.

The department is headed by a Secretary

who is also a member of the Cabinet.

C. ESTABLISHMENT OF FUNCTIONALLY INTEGRATED

DEPARTMENTS / PRIMARY SUBDIVISIONS

Each primary subdivision of the Executive

Branch should be functionally complete.

This means that it should be infused with

the whole range of functions that will

enable it to fulfill its mission. The following

guidelines are prescribed:

C. ESTABLISHMENT OF FUNCTIONALLY INTEGRATED

DEPARTMENTS / PRIMARY SUBDIVISIONS

C.1 A function is an integral component of

a sector will be integrated with the

department assigned to that sector, such

as the integration of agricultural

infrastructure, and agricultural research

and development with the Department of

Agriculture.

INDICATIVE FUNCTIONAL INTEGRATION

Exhibit 7

Function Components

RULE MAKING

Sectoral Planning / Policy Formulation

Program Development

Monitoring / Sectoral Assessment

Policy Research, and Associated Information

Systems, Statistical System Support

ADVOCACY

Provision of Information or Technical

Assistance / Access / Incentives


Financial Assistance or Direct Production

Supervision of Private Sector / LGU Program

Enforcement of Rules / Standards

DELIVERY OF PUBLIC GOODS

Financial Assistance or Direct Delivery

Supervision of Private Sector / LGU Delivery



Exhibit 7

Function Components

RULE MAKING

Sectoral Planning / Policy Formulation

Program Development

Monitoring / Sectoral Assessment

Policy Research, and Associated Information

Systems, Statistical System Support


Exhibit 7

ADVOCACY

Provision of Information or Technical

Assistance / Access / Incentives


Exhibit 7


Financial Assistance or Direct Production

Supervision of Private Sector / LGU Program



Exhibit 7

DELIVERY OF PUBLIC GOODS

Financial Assistance or Direct Delivery

Supervision of Private Sector / LGU Delivery


C.2 Exhibit 8

INDICATIVE VERTICAL INTEGRATION OF

SECTORAL PLANNING FUNCTIONS

Public

Transport

Airports Roads

TRANSPORT

PLANR

Parts

C. 2

A function which is an

integral component of a

higher function should be

integrated with the

department assigned that

higher function, such as

the integration of

highways of planning of

DPWH with the overall

transport planning

functions of DOTC.

Transport

Plan

Parts

Airports Roads

Public

Transport

C.3

A function which is an integral part of a

sequence of activities that result in the

achievement of a specific department’s

mission should be integrated with the

department to which the mission is

designated, such as integrating investment

programming functions with the agency

responsible for overall public resource

management and programming.

C.3

EXHIBIT 9

INDICATIVE INTEGRATION

SEQUENTIAL INTEGRAL FUNCTIONS

NEDA [Investment Programming

DBM Regular Operations Programming Integration under

Annual Budget Programming one department

for Investments

D. Clear Delineation of Missions and

Functions between Departments

To the extent possible, a clear distinction

should be established between the

mission (the situation to be achieved ) and

the functions (the actions to be undertaken

to realize the mission) of departments.

This is the pre-condition for clarifying

accountability, for ensuring focussed

operations and clarity of purpose, and for

identifying the proper linkage between

departments.

EXHIBIT 10

FROM THIS

TO THIS

But what criteria will this process be made

possible? The answer lies not positively

determining where one ends and the other

begins, for this method is possible only if

the universe of dimensions of government

missions and functions are definite.

Rather, the answer lies in providing

guidance for avoiding duplications and

undesirable overlapping.

Duplication / Overlap Detection Matrix

Inputs Function ( technological

Elements conceptual, physical )

National security is the requirement to

maintain the survival of the state through

the use of economic power, diplomacy,

power projection, and political power.

streamlining the bureacracy 1.10.2018

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