General information
Code: J5-2561
Period: 1.9.2020 - 31.8.2023
Range on year: 0.30 FTE | 2020
Project leader at FDV: prof.dr. Rado Bohinc
External project leader: UL FDV
Co-financiers: ARRS
Research activity: Social sciences
Abstract
There are several paradigmatically contradictory concepts that intertwine in modern theories and practices of the public sector and public administration: democracy, efficiency, liberalization, professionalism, hierarchy of the organization, etc. The changing and complex social, political and technological processes (globalization, digitization, social networks) are increasingly changing the classical Weberian role and power function of the public sector and public administration. The function and structure of the public sector and related services are the result of wider legal, political, economic and social effects and changes. We can observe a merging trend from the private corporate governance models into the public administration field that to some extent controls the public administration (Bohinc 2005, p. 31); these models are not always suitable for the public sector (Wettenhall 2004; Benz and Frey 2007).
The latter is a result of the rise of the new public management (NPM), rising from the neoliberal ideology in 1980s. NPM is characterized by a commitment to: a) limiting the growth of the state and public administration (Hood 1991), b) privatization (Dunleavy 1986), c) development of automatization (information technology), production and distribution of public services/ goods (Hood 1991), d) development of a common international agenda focusing on general public management, public policy making and international cooperation (Hood 1991), e) less taxes, f) cutting public expenditure (Hood in Kickert 1997, p. 18), g) deregulation and h) liberalization (Harvey 2005). Thus, the logic of management is transferred from the private sector to the public sphere. Introduction of standards, performance measurement, exit control, decentralization, business methods, economic resource utilization, professional management (Hood in Kickert 1997, p.18) efficiency and competitiveness become the main elements/ criteria in the functioning of the public sector and public services (Peters, 1998). This strongly influences the scope, role and power of the state government and the bureaucratic apparatus. The latter is evident in the area of public and social services in the domain of state power.
With an attempt to establish internal market relations the NPM is innovative while at the same time it represents a deficient model that needs upgrading in terms of giving more importance to values, ethics, fairness, a democratic type of governance (Goodsell 2003), responsibilities (Bohinc 2018, Matei and Drumas 2015) and the public interest (Uhrig 2003, p. 30-32; Armstrong et al. 2005, p. 4). Therefore, it is necessary to harmonize both the market efficiency of operations and governance as well as the social responsibility of the public sector and related services. Since its independence (in 1991), Slovenia has been part of the aforementioned diametric processes. On one hand it is part of the western capitalist system that introduces market relations as the main basis for the regulation of social processes on the other hand, it is used to strong regulatory functions of the state, public institutions and its services in all areas (economy and society) due to its historical integrity in the former socialist system.
The scientific background of the research is thus to define a balanced model of corporate governance of public services providers, based on efficiency and social responsibility. The latter thus defines the field of economic, legal, ethical as well as discretionary responsibilities (Bohinc 2016, p. 35). According to definition of the European Commission (2001, p. 7-8) and various authors (Berrett 2002, Edwards and Clough 2005, p. 33; Mulyadi et al. 2012, p. 25-27), the principles of effectiveness and social responsibility are two of the five principles of the corporate governance of the public sector. This corporate governance is consisted of two components that need to be intertwined and considered in the study; e.g. formal component including legal framework, structure, organization, public sector services and informal component including organizational culture and employee behavior (Tucker 2010, p. 105).
The phases of the project and their realization
The research work will be divided into three content sections.
The first part will cover:
a) analysis of the state of corporate governance in the field of public services (public institutions, public agencies) in the Republic of Slovenia (empirical and descriptive analysis)
b) a comparative analysis of the contemporary challenges of effective and socially responsible management between the Republic of Slovenia and some members of the European Union (Germany, France, Sweden).
c) a review of recent existing literature on the theory and good practices of public service organization and corporate governance, which will include a review of the theories and criticisms of new public management as the dominant conceptual framework for understanding effective and socially responsible corporate governance and public service organizations (analytical descriptive and critical analysis)
d) analysis of the root causes of the inefficiency and lack of corporate social responsibility of corporate governance in public institutions and public agencies within the existing (neo) liberal capitalist institutional structure
e) defining the criteria for assessing and ultimately implementing an appropriate corporate governance model for public services, taking into account the concept of efficiency and social responsibility (based on a critique of existing theories and practices)
The second part of the research project will cover:
a) analysis of existing corporate governance models of public institutions and public agencies;
b) developing potential models for more effective and socially responsible management of public institutions (in higher education, health and research), some public funds (state and municipal) and public agencies (in the field of communication infrastructure);
The third part will make concrete proposals:
a) legal tools and proposals for legislative changes and amendments to the legislation in the selected areas;
b) improving the organization and corporate governance of individual types of public institutions and public agencies;
c) strategies for the implementation of appropriate organizational and corporate governance models in selected areas of public service delivery, which will be developed in the first and second strands of the survey.
Research Organisation
http://www.sicris.si/public/jqm/prj.aspx?lang=eng&opt=2&subopt=403&hits=1&id=18324&search_term=J5-2561
Researchers
http://www.sicris.si/public/jqm/prj.aspx?lang=eng&opt=2&subopt=402&hits=1&id=18324&search_term=J5-2561
Citations for bibliographic records
http://www.sicris.si/public/jqm/prj.aspx?lang=eng&opt=2&subopt=400&hits=1&id=18324&search_term=J5-2561
Back to list of projects