Public administration: Environmental analysis and systems theory

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INTRODUCTION

Leadership is a contentious subject in public administration and private administration discourse. Forms of leadership, such as traditional, political and organisational or managerial leadership, are also generally prevalent in public administration. Respectively, such forms of leadership operate within a particular society. For example, traditional leadership operates within chieftainship and headmen and is mostly found at local government sphere. In the context of this study and research, political leadership is sometimes referred to as the national minister or Member of the Executive Council (MEC) and managerial leadership refers to managers within an organisation or department.
Throughout the study, leadership will be discussed within the context of managerial leadership in relation to governance in the South African Public Service. Within a managerial leadership context, the research analysis is confined to the level of director up to a head of department or accounting officer as senior managers. As with leadership, governance has been an area of debate in the field of public administration and the private sector for decades. Relatively speaking, the focus has been on the definition of leadership and the role that has been and will have to be played by leaders, including strategies to improve governance in the public sector. Through conferences and dialogue between various governments both in Africa and abroad, discussion relating to leadership and governance has been and still is the order of the day in an effort to shape the performance of governments.

PROBLEM STATEMENT

Transformation has created threats and opportunities in the South African Public Service. Such threats or problematic areas create uncertainty in the Public Service which affect the vision and mission of government. To illustrate some problematic areas, it has been reported that various policies are not properly implemented or that departments lack skills, resources and managerial leadership in implementing policies. Unethical conduct has been identified as of alarming proportions in the Public Service.
To deal with some of the aforementioned issues and to ensure that there is good governance and financial management in the Public Service, the government has introduced the PFMA. However, the PFMA and its implementation is affected by non-compliance which could be attributed to a lack of technical and conceptual skills both at managerial level and at other departmental levels, as well as poor decisionmaking by managerial leaders. The lack of fiscal discipline, mal-administration, inefficiency, poor planning and budgeting, the weak link between planning and budgeting, poor expenditure management and poor managerial skills could be matters of concern and problematic areas in the Public Service. On the basis of the above, some areas in Public Service governance are severely affected and the role of managerial leaders is also compromised.

RESEARCH METHODOLOGY

The researcher will use various methods in conducting the research. Both qualitative and quantitative methods will be used. The use of these two methods is solely based on the fact that the research seeks to operationalise certain given concepts in order to measure them. To illustrate the significance of the operationalisation of concepts, Mouton (1996:125) records that operationalisation or operational definition consists of linking concepts in the problem statement to the actual environment to be studied. For example, concepts such as risk management, governance, fiscal accountability and management are indeed concepts that will be put under scrutiny throughout the study so as to provide some merits and demerits based on the statement of the problem.
To test the linkage tools like questionnaires and observations, are very useful in measuring the accuracy and inaccuracy of the hypothetical stance of the study in question. Furthermore, Mouton (1996:125) also suggests that the above ‘linkage’ is usually accomplished by constructing a measuring instrument such as a questionnaire, scale, index, test or observation schedule, in which items are formulated to define all the variables in the study operationally. It is in this perspective that operational definition becomes helpful in scrutinising variables and their implication in explaining the statement of the problem in the study.
Furthermore, in order to obtain an in-depth analysis for the study and to operationalise concepts, participant observation will also be explored as it requires that the researcher joins the group of people who are being studied in order to observe and understand their behaviour, feelings, attitudes or beliefs (Bless & Higson-Smith, 1995:43). Therefore, the researcher will be fully involved throughout the study by taking part in relevant or related projects through assessment and participation in departmental projects. This approach could assist the researcher in understanding the approach and attitudes, and observe both conceptual and technical skills of public servants with regard to the PFMA.

SIGNIFICANCE OF THE STUDY

The study could assist in providing a conceptual analysis of public administration in general and public finance in particular. The study will also assist managerial leadership within the Public Service in understanding the weakness of the traditional public administration and the challenges of the new school of thought called the new public management. In this context the study will be of valuable importance in changing the mindset of public officials within the Public Service towards the ‘new public management’ school of thought. In reviewing the PFMA, the study could also assist in providing technical information and an understanding in order to ensure that, among other considerations, fiscal management and accountability, the rule of law and responsibility, and the processes are understood and maintained so that governance and service delivery are improved in the Public Service.

ENVIRONMENT IN RELATION TO PUBLIC ADMINISTRATION: DEFINITIONS

With regard to the aspect of environment in the field of public administration, awareness of environmental scrutiny and an understanding of it become crucial. As much as the term is elusive, environment includes every event in the world, which has an effect on the activities or outcomes of the organisation; for example, ‘primary schools’ are part of the organisational environment of education in a country (Pfeffer & Salancik, 1978:12). Pfeffer and Salancik’s analysis could be based on the fact that in dealing with matters of governance in the public service, the managers should be in a position to be acutely aware of what is happening and also recognises any environmental factors that could influence departmental outputs and outcomes The following authors enunciate some of the ideas regarding the environment.
The definitions could provide an in-depth synopsis of environmental analysis and impact on public administration. Firstly, McCurdy (1977:174) describes environment in public administration as the ‘world’ or the whole environment in which the government struggles to function. Secondly, Sharkansky (1978:9) defines the environment as the sum total of the existing social, economic and political circumstances which cause problems or challenges for policy-makers. Thirdly, Cloete (1991:85) concurs, that factors such as the policies of political parties, the needs and expectations of the population, the circumstances, such as population growth and urbanisation, international relations, natural disasters, wars and technological developments, represent the environment of public administration.

TABLE OF CONTENTS :

• Chapter 1: Research problem and research design
  • 1.1 Introduction
  • 1.2 Problem statement
  • 1.3 Hypothesis
  • 1.4 Objectives of the research
  • 1.5 Research methodology
  • 1.6 Sources of information
  • 1.7 Significance of the study
  • 1.8 The limitations of the study
  • 1.9 Organisation of the study
  • 1.10 Conclusion
  • 1.11 Clarification of concepts and terms
• Chapter 2: Public administration: Environmental analysis and systems theory
  • 2.1 Introduction
  • 2.2 Environment in relation to public administration: Definitions
  • 2.3 Environment, debate, and analysis
  • 2.4 The classical and behavioural approach: Closed system
  • 2.5 The open system
  • 2.6 Contingency school
  • 2.7 Environment and organisational analysis: Micro and macro perspectives
  • 2.8 Systems approach: Public administration environmental analysis
  • 2.9 Conclusion
• Chapter 3: Conceptual analysis of public administration
  • 3.1 Introduction
  • 3.2 Public administration: An analysis
  • 3.3 Foundations of Public administration
  • 3.4 Public Finance in public administration
  • 3.5 Importance of public administration
  • 3.6 Administrative theory: An analysis
  • 3.7 Contributions of administrative theory
  • 3.8 Theories in public administration
  • 3.9 Policy and policy-making
  • 3.10 Managerial leadership: An analytical framework
  • 3.11 From traditional public administration towards the new public management
  • 3.12 The new public management model: Some perspectives
  • 3.13 Features of the new public management model
  • 3.14 Conclusion
• Chapter 4: Public finance management system in South Africa
  • 4.1 Introduction
  • 4.2 Evolution of the public finance management system in South Africa
  • 4.3 Public Finance: A theoretical analysis
  • 4.4 Budget: Conceptual and analytical synopsis
  • 4.5 Budgeting and processes
  • 4.6 Budgeting as a system
  • 4.7 Policy prioritisation and budgeting
  • 4.8 Types of budgeting systems
  • 4.9 Outcomes-based management and budgeting model
  • 4.10 Financial management: An analysis
  • 4.11 Procurement and its evolution
  • 4.12 Financial management as a system
  • 4.13 Integrated financial management system
  • 4.14 Conclusion
• Chapter 5: Integrated risk management and internal controls in the Public Service
  • 5.1 Introduction
  • 5.2 Background and development of risk management in the South African Public Service
  • 5.3 Risk, uncertainty, management and risk management: A linkage and conceptual analysis
  • 5.4 Risk management and approaches
  • 5.5 Risk management and international models
  • 5.6 Risk management strategy
  • 5.7 Towards an integrated risk management model in the Public Service
  • 5.8 Forms of risks
  • 5.9 Department of water affairs and forestry: Risk management as an element of governance
  • 5.10 Internal controls and theoretical analysis
  • 5.11 Conclusion
• Chapter 6: Governance and Public Finance
  • 6.1 Introduction
  • 6.2 Governance: Theoretical framework
  • 6.3 Public Finance Management Act of 1999: A governance model
  • 6.4 Elements of governance: Public finance perspective
    • 6.4.1 Strategic planning and budgeting
    • 6.4.2 Public expenditure management
    • 6.4.3 Fiscal transfer and accountability
    • 6.4.4 Debt management
    • 6.4.5 Fiscal accountability
    • 6.4.6 Asset management
    • 6.4.7 Ethics in the Public Service
    • 6.4.8 Legislative oversight as an accountability mechanism
    • 6.4.9 Decision-making
    • 6.4.10 Public accountability
    • 6.4.11 Auditing
    • 6.4.12 Accounting systems
    • 6.4.13 Monitoring and evaluation
    • 6.4.14 Decision-making
    • 6.4.15 Value for money
    • 6.4.16 Conclusion

• Chapter 7: Contextualization of critical public finance issues
  • 7.1 Introduction
  • 7.2 Parliamentary oversight, efficiency and effectiveness
  • 7.3 Asset management
  • 7.4 Ethical dimensions
  • 7.5 Reporting standard
  • 7.6 Financial transfer
  • 7.7 Risk management and internal controls
  • 7.8 Non-compliance with the Public Finance Management Act,
  • 7.9 Conclusion
• Chapter 8: Conclusion and Recommendations
  • 8.1 Conclusion
  • 8.2 Recommendations
• References
  • Annexure A: Supply-Chain Management model (SCM)
  • Annexure B: Financial management
  • Annexure C: Statistics on financial disclosure forms submitted by Senior Management Service members as per Public Service regulations
  • Annexure D: Treatment of fruitless and wasteful expenditure discovered by the accounting officer
  • Annexure E: Treatment of fruitless and wasteful expenditure discovered by the accounting officer
  • Annexure F: Treatment of irregular expenditure discovered by the accounting officer

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Leadership and governance in the South African Public Service: An overview of the public finance management system