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Impact of New Public Management and Public Governance on municipal real
estate management in Poland
Bartłomiej Marona
Cracow University of EconomicsDepartment of Real Estate and Investments Economics
ERES Conference
June 28 - July 1, 2017, DELFT
Agenda
• Research objectives and research framework
• Current research in PREM
• Survey study
• Summary
Research objective
The research goal was boiled down to the assessment of the role ofindividual concepts of public management in the process of real estate management in Polish municipalities.
Theoretical framework of the study
Public Real Estate
Management
New Public Management
CorporateReal Estate
ManagementPublic
governance
Source: own study
PREM topics during ERES conferences
Conference All papers PREM papers Affiliation
ERES 2015
(Istanbul)
235 2 Netherland,
Estonia
ERES 2014
(Bucharest)
216 1 Netherland
ERES 2013
(Wien)
270 3 Estonia, Poland, Germany
ERES 2012
(Edinburgh)
307 1 Poland
ERES 2011
(Eindhoven)
232 3 Netherland, New Zealand
ERES 2010
(Mediolan)
333 3 Germany, Italy
TOTAL 1 593 13 -Source: Marona (2017)
Lp. Autors/Year Method/ Place M Paradigm
1. D-L Constantin, C.
Mitrut, R.M. Grosu, M.
Profiroiu, A.E. Iosif ,
(2016).
Survey research in Romania (8 municipalities). Part of greater research in South
and Eastern Europe - EU-funded project entitled ‘Municipal Property
Management in South-East European Cities’ (PROMISE).
New public
management
2. M. Gross, R. Źróbek,
(2015).
Modified delphi method – compilation of delphi method and questionnaire.
17 complete responses were received from 14 countries (mainly from Europe and
3 from Asia).
Good Governance
3. B. Marona (2016). Survey research - Kraków Metropolitan Area - 25 questionnaires were returned,
that is 49% of the sent ones.
New Public
management,
Good Governance
4. Z. Pozega, B. Crnkovic,
A. Zivkovic, (2014).
Literture review (Croatia) New Public
Management
5. Y. Lu (2011) Survey research based on 37 questionnaires (property and other state asset)
conducted in USA
New Public
Management
6. FAO (2007) Secondary research. Research conducted by Land Tenure and Management Unit
from Food and Agriculture Organization of the United nation (FAO).
International research based on data from World Bank, United Nations Human
Settlements Programme and International Feeration of Surveyors.
Good Governence
Source: own study
PUBLIC MANAGEMENT perspective in real estate management research
Survey research
• Preliminary research - January 2016 (01 Polish metropolitan area)
• Current research – May/June 2017 (all Polish metropolitan areas)
• 304 questionaries (response rate: 34% - 103 municipalities)
22 questions (from 35) are dealing with NPM and GG
NPM
According to Ch. Hood (1991) the doctrine includes 7 standards:
• ‘hands –on professional management’ in the public sector;
• explicit standards and measure of performance;
• greater emphasis on output control;
• shift to disaggregation of units in the public sector;
• shift to greater competition in public sector;
• stress on greater discipline and parsimony in resource use.
GG
According to European Commission (2001) 5 principles:
• openness (transparent working, active communication, accessible language);
• participation (wide involvement throughout the policy chain, and especially by central governments);
• accountability (making legislative and executive roles clearer and ensuring that institutions take responsibility for what they do);
• effectiveness (ensuring policies are timely, have clear objectives, are appropriately evaluated, are proportionate and involve decision-making at the most suitable level);
• coherence (requiring political leadership and institutional responsibility in ensuring consistency in approach).
Characteristics of respondents
urban22%
semruban23%
rural55%
Source: own study
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
correlation between staff bonus and REM effects?
outsourcing?
do you now NPM principles?
do you know GG principles?
publishing real estate reports online?
salary differentiation?
benchmark assessments?
indicators used to measure effectiveness of REM?
systematic valuation?
prepare accomplishment reports at the end of the year?
professional real estate education?
residents possibility to express opinions and co-decide in an organized way ?
complete information on websites about municipal property?
staff experience in the private sector?
performence discussed at management meetings?
complete information on website about property investments?
internal control ?
timeliness of the performed real estate management tasks?
performed real estate management objectives?
profiled trainings?
Absolutely no Mostly no Mostly yes Absolutely yes
Source: own study
Summary
• It should be stated that both the NPM and the GG concept do not constitute a benchmark model in the practice of municipal real estate management in Poland.
• The concepts are treated more as a set of tools from which the majority of municipalities choose only some, selected instruments.
NEXT STEP
• correlation between 1) public management tools and 2) RE performance and effectiveness
• more extensive statistical analysis (type of municipality, metropolitanarea…)
• case study research
Literature
• Constantin D-L, Mitrut C., Grosu R.M., Profiroiu M., Iosif A.E., (2016), Municipal real properties and challenges of new public management: a spotlight on Romania, “International Review of Administrative Sciences”.
• Good Governance in land tenure and administration, (2007), FAO Land tenure studies, Rome.
• Gross M., Źróbek R., (2015), Good governance in some public real estate management systems, “Land use policy”,No. 49.
• Hood Ch., (1991), A public management for all seasons? “Public Administration”, Vol. 69, No 1.
• Lu Y., (2011), New Public Management reforms in public asset management as the state governments of the United States, International Conference on Public Administration (ICPA ).
• Marona B., (2016), Public management in real estate area – some empirical evidence from Polish municipality. “Real Estate Management and Valuation”, Vol. 24, No. 4.
• Marona B., (2017), Nieruchomości publiczne jako przedmiot badań nauk o zarządzaniu, „Organizacja i Kierowanie”, (in press).
• Pozega Z., Crnkovic B., Zivkovic A., (2014), Effective management of state property as prerequisites for economic development, Conference Proceedings: “Economy of Eastern Croatia Yesterday, Today, Tomorrow”, Vol. 3.
