By Ma. Gladys Sta. Rita
I. INTRODUCTION
Organizations inevitably change because they are open systems in constant interaction
with their environment. (Kast and Rozenweig, 1972 : 563). This means organizations have to
adopt to the changing conditions of its working environ or risk becoming inefficient and consequently obsolete.
The passage of the Local Government Code of 1991 dramatically changed the environment of a lot of public organizations. Devotion of about 68,790 personnel to77 provinces, 60 cities and 1,544 municipalities all over the country had tremendous effect on
LGU’s personnel configuration and local officials such as environmental protection called for some changes in the organization.
On top of this, fast-faced global changes call for the used of state-of-the-art technologies which can render a number of positions in public organizations irrelevant.
Also, change in LGU leadership, which is not uncommon because of frequent elections often result into modification of goals and priorities. This, in turn could trigger changes in the structure and staffing pattern of organizations.
Situations enumerated above call for organizational change which is important for public organizations to continually fulfill its obligation of serving the people in the most effective, efficient and accountable manner. These scenarios necessitate organizational development (OD), reorganization or maybe reengineering; depending on what term you are comfortable with or framework of analysis and approach you want to use.
II. ORGANIZATIONAL DEVELOPMENT and REENGINEERING DEFINED
Organizational Development is a process of planned organizational change. According to Stoner and Freeman (Cabo ; 1997 : 97), OD is a “long term and, oftentimes, complicated effort to bring the organization to a higher level of functioning and, at the same time, improve the performance and sense of satisfaction of the members of organizations”. French and Bell (1978 : 14) defined OD as “ a long-ranged effort to improve organization problem solving and renewal process, particularly thru a more effective and collaborative management of organization culture – with special emphasis on the culture of formal work terms – with the assistance of change agent, or catalyst, and the use of the theory and technology of applied behavioral science, including action research”. While OD can achieve structural, it’s main focus is on changing people and organizational culture.
Kast and Rozenweig (1979 : 573) outlined the basic steps involved in OD as follows:
1) problem sensing interviews, questionnaires, or group meetings
2) prioritizing the issues in terms of factors such as importance/urgency/solvability
3) refinement of problem statements and further diagnosis
4) generation and evaluation of alternative solutions or tentative courses of action
5) refinement of action steps in terms of feasibility
6) implementations
7) follow-up to check actual programs against anticipated results
Reengineering is another concept aimed at organizational change. It is defined by Hammer and Champy as a “fundamental rethinking and radical design of business process to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service and speed”. (1993:32) Reengineering “focuses on achieving improvement by radically redesigning the way a process operates without regard to how things were done previously.” Reengineering often involves sensitive ‘structure change, job redesign and sometimes job elimination”. (R. Chang, 1944:55).
During the administration of Pres. Fidel V. Ramos, government reengineering program was a priority program. According to a document produce by the Presidential Committee on Streamlining the Bureaucracy (1993 : 1), reengineering of the bureaucracy “establishes a new paradigm of governance that seeks to refocus the role and scope of government, and accordingly restructure the bureaucracy”, The objective is to evolve an “ efficient, focused, and innovative bureaucracy”.
The reengineering proponents in the country headed by then Secretary Salvador Enriquez, were tired of “plethora of ideas on how to streamline the bureaucracy and make government more effective”. According to them, the national government’s “ experience with past reorganizations tells us that mere moving and splitting of boxes generated paradoxical effects – the bureaucracy expanded further in terms of number of agencies and manpower, and the problem of duplication and overlapping persisted.” (PCSB,1993 : 16-17)
The reengineering disciples offer a Framework of Governance guided by the following fundamental principles (op.cit.,pp 17-26):
1. Principle of Frugality and Prioritization
The scope of government shall be within available resources and its activities accordingly prioritized.
2. Principle of Steering
The role of the national government in the sectors shall be o steer rather than to row.
(Note: The concept was lifted from Osborne and Gaebler’s
Reinventing Government which advocates that the governments
role will have to be “ more as a catalyst and facilitator; defining
problems and then assembling resources for others to use in a
addressing those problems”. Steering means more on policy
decisions and less on rowing or service delivery. (1993 : 27,35)
3. Principle of Compart mentalization
Sectoral activities shall be properly compartmentalized and accordingly appropriated between the government and the private sector. Government activities shall be properly distributed among levels of government, corporation and local government units.
For simplicity, the term REORGANIZATION will be used to mean changes in the
organizational structure of LGU’s. The concepts of organizational development
and reengineering were presented because processes, concepts and approaches of reorganization can be derived from both of them. Bottom line objectives, however, are essentially the same.
III. LEGAL MANDATE of LGU REORGANIZATION
The Local Government Code authorizes LGUs to make changes in their organizational structure to suit their new roles and meet new responsibilities vested upon them.
Following are provisions of the LGC on this:
· There shall be established in every local government unit van accountable, efficient, and dynamic organizational structure and operating mechanism that will meet the priority needs and service requirements of its communities. (LGC, Section 3 (b);
· LGUs shall have the power and authority to establish an organization that shall be responsible for the efficient and effective implementation of their development plans, programs, objectives and priorities. (LGC, Section 18);
· Every LGU shall design and implement its own organizational structure and staffing pattern taking into consideration its service requirements and financial capability, subject to the minimum standards and guidelines prescribed by the Civil Service Commission (LGC, Section 76)
There are however limitations that must be considered in the implementation of government reorganizations. First is that the total appropriations for the personnel services of a local government unit must fall within the budgetary ceilings provided in the code (Sec. 325-9, LGC). Second, Sec. 468 (I-viii) of the LGC stipulates that positions and the salaries, wages and allowances of officials and employees hve to be determined by the Sangguniang Panlalawigan (in the case of province) and so, any action to reorganize the structure or alter the staffing pattern of the LGU shall have to be covered by an enabling ordinance from the Sanggunian concerned. (Section 447,458,468, LGC). And third, the protection of the security
of tenure of Civil Service officers and employees as mandated in RA6656.
The last limitation, however, have some qualifications because there are valid causes for separation of employees to a bonafide reorganization as follows:
1) A position has been abolished or rendered redundant
2) Positions are merged, divided or consolidated to meet the exigencies of the services.
3) Causes allowed by the Civil Service Law. (Sec. 2 RA 6656; Sec II Rule Implementing 6656)
IV. REORGANIZING THE BULACAN PROVINCIAL GOVERNMENT
BUREAUCRACY
There were three reorganization made in the 12-year administration of former Governor Roberto M. Pagdanganan. Only two were implemented those in 1989 and 1997. The 1993 organizational and management study and proposal were completed but were not implemented due to budgetary constraint and political considerations. Upon assumption in office, Gov. Josefina M. dela Cruz ordered the 1997 “ reorganizations review” in time for the planned May 1999 reorganization with the end in view of a more streamline, dynamic and responsive provincial government structure.
Reorganization started with a firm decision and political will of the Chief Executive to make necessary changes in the organizational structure and staffing pattern of the Provincial Government. Approval of the Sangguniang Panlalawigan to reorganize was sought and was given. In preparation, the Governor established a Management Study Group (MSG). There were no outside consultants. No SGV or PHILPSYCHOR were tapped for this important undertaking. Only the best and the brightest among the employees were picked as member plus the HRM Officer who also served as the head of the Secretariat. The Provincial Administrator chaired the group. These eight people were given financial incentives to do the additional job. It was only in 1988 when outside consultants were utilized but services were more on health organizational structure concerns.
A survey was designed and was administered in all departments. This survey hoped to capture perceived in offices, actual workload of employees and departments, their recommendations, among others. The Department Heads in consultation with their employees were asked to submit heir proposals. The result of the survey and department Heads’ recommendations were studied vis-à-vis the functions and accomplishments of the offices. In the case of the hospitals, standard personnel requirement set by the Department of Health were considered.
Several instruments were used. Interviews were conducted in workplaces to fully analyze jobs. As required in job analysis, the committee members looked with clinical eyes “at what the employees does how he does it and why he does it, the skills involved, the supervision required and the existing working conditions” (Sison, 1991 : 92)Taylor’s time and motion study, supported by historical data, were conducted in areas where it was necessary for example to determine how many employees were needed to process so much number of vouchers per day.
All these time, consultations with the Governor were made in several occasions especially in critical issues in some offices. Side by side with the study, a series of dialogue with each office presided by the Governor with the assistance of the Provincial Administrator
and all members of the MSG were conducted
The study was completed after (14) months on the average. Recommended policies and proposed organizational structure and staffing pattern were submitted to the Governor for approval. The Governor then issued an Executive Order creating a Local Reorganization Committee (LRC). The composition was as follows:
Chairman : Provincial Administrator
Members : Provincial Budget Officer
Human Resource Management Officer
Members : Chairman, Committee on Appropriation of the Sangguiang Panlalwigan
Chairman, Committee on Good Government of the Sangguniang
Panlalawigan.
Secretariat : HRMO
The Local Reorganization Committee then reviewed the organizational and management reports prepared by the MSG. Policies such as “ There should be no first degree relatives in one office” or “ All Assistant Department Head positions will be abolished” or “
There is mandatory 5% reduction in all plantilla of all Departments” among others were subjected to further scrutiny and deliberations.
After conducting their own study and validations of the MSG study, the LRC prepared their final report. Based on these findings, changes in the structure such as abolition, merging, creation of new offices were made.
After the Governor’s approval of the LRC’s recommendations the proposal was submitted to the Sangguniang Panlalawigan for their adaption. It was now ready for implementation.
The Governor then issued another Executive Order which created the Provincial Placement Committee and the Appeals Committee on Reorganization. Membership of the two groups were as follows:
Provincial Placement Committee Appeals Committee on Reorganization
Chairman : Provincial Administrator Provincial Attorney
Members : HRM Officer HRMO Representative
Department Head Concerned (3) Employees Representative
Employees Representative (1st level)
Employees Representative (2nd level)
Employee’s Assn. Representative
In the Placement Committee, each and every employee was assessed according to skills, career aspiration, strength and weaknesses, potentials and possibility for advancement. The evaluation instruments followed the requirements of the Civil Service Commission but was revised a bit to include specific requirements of the province.
Employee selection was a critical part to the reorganization. “ Finding the right man for a job and finding the right job for a man who is available are essential to sound employee selection and placement.” (Sison, 1991: 120), Wrong placement of employees can render a beautiful and well – intentioned structure inutile.
Those who were not happy with the result of the employees placement fields complaints at the Appeals Committee Service Commission.
IV. HIGHLIGHT of the 1997 REORGANIZATION of the PROVINCIAL
GOVERNMENT of Bulacan
With the implementaton of LGC, a total of 813 employees from health, agriculture, environment and social services were devolved to the province, increasing total workforce by
60%, from 1,350 to 2,163.
Following are the highlights of the 1997 reorganized structure of the provincial government:
a) Health
Ironically, the number of plantilla position which was devolved at 715 even increased to 756 (plus 21 items in organic health offices like Physical Therapy Center, etc.). Based on the MSG study, hospitals in the province were undermanned on some important services but overmanned on administrative services. The new structure have a reduced administrative plantilla positions and more for nursing and medical services. Positions for computer operators were created in all hospitals in preparation for the computerization of hospital records, inventory and supplies which are essential for control and monitoring. All rural health midwife items were abolished since the function was devolved not to the province but the municipalities. Item holders either absorbed by the municipalities
or transferred to hospitals. Other resigned.
Organic health provincial offices like the Children and
(b) Provincial Treasurer’s Office and Accounting Office
These two offices used to be together in one department. LGC required the separation of these two offices.
As stipulated in the Code, internal control is a function of the Accounting Department. And so, the Internal Control Division which was previously under the Office of the Provincial Administrator was transferred to Accounting Department.
Three(3) cashier positions were abolished due to the computerization of employees salaries and the use of ATM in salary withdrawals.
(c) Agriculture
The devolved Department of Agriculture prevailed over the organic agriculture office. The Staff of the latter were either absorbed in the new agriculture office or got other positions in other offices like the Coop office and the Provincial Community Management Department, now named Provincial Social Welfare Development Office.
The devolved Chief of the Department of Agriculture assumed the Department Head of the new Provincial Agriculture Office. The organic Provincial Agriculturist Office was already abolished in 1989 reorganization so the conflict was avoided.
The LGC provided for a mandatory Provincial Veterinarian position. The position was created as such but not in a separate office. The Provincial Veterinarian was given an Assistant Department Head level under the Provincial Agriculture Office. The province felt that services pertaining to livestock, crops and fishery should all together be in the Agriculture Office. This decision created a stir and was vehemently opposed by the National Association of Provincial Veterinarians. They were afraid other provinces will follow suit.
(d) Environment
The province created a huge Provincial Environment and Natural Resource Office (PENRO) with sixty (60) plantilla positions. The province was somewhat overwhelmed at first with the devolved environmental management and regulatory functions.
(e) Social Welfare
Before devolution, there was a Provincial Community Management Department (PCMD) which took care of the province’s social services especially nutrition and population program. After the reorganization, this was converted into the Provincial into the Provincial Social Welfare Development Office (PSWDO) with enlarged functions including services to the disabled, senior citizens, etc.
(f) Some innovations/changes
· In 1989, the province created a department called Provincial Economic Enterprise Department (PEED) which took over all the revenue generating offices in the province such as the slaughterhouse, the Convention Center, Ice plant and the trade house were PRIVATIZED
· The province created a Management Information System Office (MIS). With a new focus on increasing locally generated revenues, the office is now handling the computerization of our Real Property Tax Administration. This is on top of the Personnel Management Information System (PMIS) already in place and the maintenance of our website at www.bulacan.gov.ph.
· One of the major changes in the reorganization was the elevation of the Human Resource Management Office (HRMO) into a full department. This was in recognition of the fact that the employees of the Capitol are now the biggest single resource of the provincial government. The maximization of this resource thru improved quality of service delivery became a primordial concern of the province.
IV. HIGHLIGHTS of the 1998 REORGANIZATION DUE FOR IMPLEMENTATION
THIS YEAR.
The on-going reorganization is scheduled to be implemented on June 1999. The organizational study of all departments of the Provincial Government has been completed except the Provincial Health Office and it’s nine district hospitals. In fact, a lot of departments are already on their interim set-up meaning they are already operating on a structure as proposed. This was a management decision to “test” the new organizational set-up of some offices.
It is expected that the organization will be streamline. As a policy, all departments were given mandatory requirements to cut their plantilla position by 5%. To date, there are already 36 identified permanent employees who will not be accommodated.
Until it is approved by the Sangguniang Panlalawigan, it is possible that minor changes will still have to be made.
Following are the highlights of the proposal:
(a) Merging of PTO and Assessors Office
These are two big offices merged into one. The importance of Real Property Tax (RPT) as the second largest source of the province’s revenue triggered this move. At present, locally generated revenue, the bulk of which is RPT, is only 30% of the total income. IRA is 70%. After two years, the target is a 50:50 ratio between IRA and locally generated revenues. The Provincial Treasurer’s Office and the Assessors Office will now have to work hard together to attain this target.
The computerization of RPT administration which is on-going is also one of the
reasons for the merger.
(b) Upgrading of Management Information System Office to Semi-Department
level.
The office started as a small division under the Office of the Provincial Administrator . Maximum of Information Technology is a priority concern of the provincial administrator. All the support was given to this group as emphasized in its upgrade.
(c) Elevation of the Provincial Youth and Sport Division into Provincial
Youth, Sports and Employment Department.
This is a realization of the promise made by the Governor long before, when she was still Vice Governor. Youth development and employment generation and programs
she strongly believes in.
(d) Creation of a Business Assistance and Promotion Office under the Office of
the Governor.
A four-man team was specifically given assignments to assist investors and businessmen.
(e) Downsizing of the Environment and Natural Resource Office (ENRO)
with sixty (60) plantilla position into half. The previous five division were trimmed down
to two.
(f) The Provincial Disaster Coordination Office, formly under the Provincial
Social Welfare Development Office was transferred to the Office of the Governor.
Merged into this office are the Firefighting Unit and Communication Section.
The Firefighting Unit was reduced into half because the function is not a mandate of a province but that of the municipal and national governments. Due to the computerization of the communication systems, several radio and telephone operator positions were abolished.
(g) The Civil Security with 127 people under it was moved to the General Services Office in the 1997 reorganization through the Code mandates that the said office should be under the Office of the Governor. We tried to follow but the province realized that through the code states it does not necessarily follow that it would be effective under the office.
(h) Abolition of all Assistant Department Head position except Assistant Provincial Treasurer.
VII. CONCLUSION
Lgus should reorganize to be able to adopt and cope with changes in its environment. Innovations geard at improving the organizational culture while enhancing its capability to convert the challenges of change into a catalyst for efficiency will inevitably bring positive results. Since no organizational is exempted from change there is no alternative therefore but to meet head-on with the prospect of personnel movement, work reorientation and redefinition of mission.
The Bulacan Experience asserts that no meaningful reorganization can be achieved without the support and political will of the Chief Executive. The Governors and Mayors are primary change agents who will make the biggest difference. With the authority and political ascendancy, they are in the best position to give the direction of the reorganization so that the bottom line objectives of a dynamic, effective, efficient and responsive organizational structure is achieved.
The reorganization experience of Bulacan also taught us that in the process of evolving a bureaucracy that is demand-driven and pro-active, sacrifices are necessary and inevitable. That in moving the once unshakable pillars of tradition we can unearth the very basic foundations of sound government service-dynamism, flexibility, creativity and commitment to the spirit of public trust.
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Enriquez,
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Prentice-Hall, Inc.,
Guidebook on LGU Reorganization. Regional Committee on Devolution
DBM, SC, DILG, LGU, Region III, 1994.
Halachmi, A. “Reengineering and Public Management : Some Issues and
Considerations”. International Review of Administrative Science,
Hammer, M. and J. Champy. Reengineering the Corporation. 1993.
Kast F.E and Rozenweig E. Organization and Management Mc Graw-Hill Inc.,
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Presidential Committee on Streamlining the Bureaucracy, 1994.
Sison, Perfecto S., Personnel Human Resources Management. 6th ed, 1991.
Rex Book Store.
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Government. German Foundation for International Development and Local
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