CERTIFICATE PROGRAMME

MMDAs AS ORGANISATIONS

SIMON BOKORILGS

21ST JULY 2014

Objectives

• Examine the conceptual framework for ‘organisation’ and how it relates to MMDAs

• Compare and contrast similarities and dissimilarities of public and private organisations

• Look at how MMDAs reflect organisational characteristics and behaviour

The concept of ‘organisation’

• What is to organize?• Demonstrate by misspelled word:

ograinastino• Can you make sense of it? Why?• Why organize?

What is an Organisation?

• A social unit of people that is structured and managed to meet a need or to pursue collective goals.

• All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks.

• Defined as a specific arrangement of structure, people, task and techniques.

• This constitutes the internal environment of the organisation

• Structure refers to the form of department, hierarchy and committees.

• People refers to the skills, attitudes and social interaction of those who work in the organization.

• Task refers to the goals of the individual and the organization and

• Techniques refers to the methodical approach used in processing input to output.

Organisation as a System

• They are open systems--- they affect and are affected by their environment.

• They have internal environment, receive input from the external environment, process it and send back to the external environment.

• The internal environment of the organization in itself is also a system.

• There is a symbiotic relationship between the organization and its external environment.

• The organization must be in congruence with the external environment otherwise it faces what is called organizational enthropy.

Brainstorm

• What are the inputs from the external environment?

• What are the outputs to the external environment?

Formal and Informal Organizations

• Fomal/Structured• Written code, rigid, roles, who, communication,

etc clearly defined

• Informal/Unstructured• Exists within the formal organisation. It is a

network of personal and social relationships

Differences• Formed by Whom?• Rules and Regulations• Duties and Responsibilities• Objectives or Goals• Stability• Organisation Chart• Superior-Subordinate Relationship• Benefits

Types of organization

• Public• Private• Quasi-Public• Non-Governmental Organisation• Civil Society Organisation

Public and Private Organisation Compared

• Goal/Objectives: Profit motive vrs public goods. Clear goals vrs diffused goals of the public organisation

• Ownership: Public vrs selected individuals (shareholders)

• Capitalisation:Taxation vrs shareholders capital

• Politics and Political influence: Political environment and decisions drive public organizations

• Structure: More hierarchical in the public sector.

• Products (goods and services) Private Good: An item of consumption that, if used by one party, may not be available for others, such as food and clothing – buy from the market or store

Public Good

• An item whose consumption is not decided by the individual consumer but by society as a whole, and which is financed by taxation. A public good (or service) may be consumed without reducing the amount available for others, and cannot be withheld from those who do not pay for it.

• No market exists for such goods, and they are provided to everyone by governments.

• Recruitment: Merit system, long process in the public organisation but swift in the private sector

• Security of tenure (more assured than the private sector) Hire and fire very rapid in the private sector. Public sector has a long procedure

• Performance Measurement (Effectiveness and Efficiency). More profound in the private sector because of reliable profit motive

• Accountability: Diffused in the public sector – who is directly responsible?

• Accountability to who? In the private sector it is primarily the shareholders who are easily identified.

• Decision Making Process: More hierarchical, bureaucratic and delayed in the public sector

• Customer orientation: More responsiveness in the private organisation

Changing Roles

• Public sector adopting some private sector practices e.g. strategic management, performance contract, learning management practices, contracting out aspects of its traditional activities to private sector, public private partnerships, etc.

• Private sector is carrying out traditional public activities through PPP. Another example is in the area of social responsibility where private sector provides public goods. (Any examples in your district?)

Question

• What happens when private sector provides public goods? E.g. education, health, housing, etc?

Answer

• The public organisation to create the enabling environment through modernizing laws, regulatory/intitutional framework, simplified procedures, enforcement, incentives, etc.

Group Discussion

• What should be the relationship between the public organization and the private sector?

Individual Question

• Identify features of MMDAs considering: • Internal environment• External environment• Inputs• Outputs

Assignments

• What differentiates MMDAs from Private Organisations and Civil Society Organisations?

• What are the goals of MMDAs? Can they really function without other external stakeholders and organizations? Justify.

End

• Thank you