Theory and Practice in Public Administration

1. Organization Theories
A. Classical Organization Theory
Merging various theories conceptualized in the early 19 th century, it
centers on theories of efficiency. It represents the merger of scientific
management, bureaucratic theory and administrative theory.
Developed by Frederick Taylor, scientific management theory has four
basic principles; 1) Find the one best way to perform each task, 2) Carefully
match each worker to each task, 3) Closely supervise workers, and use
reward and punishment as motivators and 4) The task of management is
planning and control. It involves getting the best equipment and people and
carefully scrutinizing each component of the production process. By analyzing
individual tasks, right combinations of factors can be formulated that can
yield large increases in production. While it was successful in simple
industrialized companies, the philosophy of production first, people second
had not fared well in modern companies. This resulted in declining production
and quality, dissatisfaction with work, loss of pride in workmanship and a
near complete loss of organizational pride. Max Weber expanded on Taylors
theory with the bureaucratic theory, which stressed the need to reduce
diversity and ambiguity in organizations. It focuses on establishing clear lines
of authority and control. It recognized the importance of division of labor and
specialization. A formal set of rules was bound into the hierarchy structure to
insure stability and uniformity. Administrative theory emphasized establishing
a universal set of management principles that could be applied to all
organizations.
Classical management theory was rigid and mechanistic. The
shortcomings of classical organization theory quickly became apparent. Its
major deficiency was that it attempted to explain peoples motivation to work
strictly as a function of economic reward.
B. System Theory
System theory is the study of the abstract organization of phenomena,
independent of their substance, type, or spatial or temporal scale of
existence. It investigates both the principles common to all complex entities,
and the models which can be used to describe them.
A system consists of four things the objects, attributes, internal
relationship among objects and that it exists in an environment. A system,
then, is a set of things that affect one another within an environment and
form a larger pattern that is different from any of the parts.
In a system, organizational analysis features the continual stages of
input, processing and output, which demonstrate the concept of openness or
closeness. A closed system does not interact with its environment. It does not

take in information and therefore is to vanish. An open system receives

information, which it uses to interact with its surrounding. This increases its
likelihood to survive and prosper.

C. Power and Politics Theory

Power and politics play a huge role in business, from governing how
decisions are made to how employees interact with one another. In
businesses big and small, the impact of power depends on whether
employees use positive or negative power to influence others in the
workplace. Politics may directly influence who has the power and determine
whether the overall culture of the workplace encourages productivity.
D. Modern Structural Organizational Theory
Modern organization theory is rooted in concepts developed during the
beginnings of the Industrial Revolution in the late 1800s and early
1900s. Structural organization theory is concerned with the differentiation
between organizational units and the levels of hierarchy of organizational
authority and coordination. It becomes modern because focus is on the
structure or design of organizations and their production processes.
There are four basic assumptions of modern structural theory: 1)
Rational organizational behavior through formal rules and hierarchy; 2) there
is a best structure but best is determined by many factors; 3) Division of
labor increases productivity; and, 4) Most problems are from structural flaws.
It is clear that structure is very important in organizations. I believe
that the different theorist over time have contributed to the new concepts of
modern structural theory. There were different important models and theorist
in the past. We can say that organizations must establish a structure that is
effective to improve its processes in order to improve the goods or provide
better services to customers in order to increase profits. Organizational
efficiency is the essence of organizational rationality, and the goal of
rationality is to increase the production of wealth in terms of real goods and
services.

2. External Borrowing

This refers to money borrowed from a source outside the country which
is usually paid back in the currency in which it is borrowed. External debt can
be obtained from foreign commercial banks, international financial
institutions like IMF, World Bank, ADB etc and from the government of foreign
nations.
Normally these types of debts are in the form of tied loans, meaning
that these have to be used for a predefined purpose as determined by a
consensus of the borrower and the lender.
Government and corporations are eligible to raise loans from abroad.
These are in the form of external commercial borrowings. The interest rate on
foreign loans is linked to LIBOR (London Interbank Offer rate) and the actual
rate will be LIBOR plus applicable spread, depending upon the credit rating of
the borrower.

3. Procedures in Government Procurements

Government procurement is governed by Republic Act No. 9184,
otherwise known as the Government Procurement Reform Act. This sought to
codify all pertinent laws and rules governing government procurement. It
tasked the Government Procurement Policy Board (GPPB) as the agency
headed to oversee implementation of the new law.

RA 9184 was designed to cover everything government needs to buy,

construct or provide. It set down that procurement along with the rules and
regulations around it covered the following:

1.
Acquisition of goods which includes all items, supplies, materials, and
general support services, whether in the nature of equipment, furniture, stationery,
materials for constructions, or personal property of any kind, including non-personal
or contractual services, such as the repair and maintenance of equipment, and
furniture, as well as trucking, hauling, janitorial, security, and related services
2.
Consulting services which cover services for infrastructure projects and
other types of project by the government requiring adequate external, technical,
and professional expertise that are beyond the capacity and capability of the
government to undertake such as, but not limited to: (a) advisory and review
services; (b) pre-investment or feasibility studies; (c) design; (d) construction

supervision; (e) management and related services; and (f) other technical services
or special studies.
3.
Infrastructure projects which include the construction, improvement,
rehabilitation, demolition, repair, restoration or maintenance of roads and bridges,
railways, airports, seaports, communication facilities, civil works components of
information technology projects, irrigation, flood control and drainage, water supply,
sanitation, sewerage and solid waste management systems, shore protection,
energy/power and electrification facilities, national buildings, school buildings,
hospital buildings, and other related construction projects of the government

The new law stipulated how public bidding should proceed beginning
with posting a notice on the Philippine Government Electronic Procurement
System or PhilGEPS, the new and still developing portal of the GPPB, where
all government procurement opportunities, notices, results of biddings,
awards and reasons for the award must be published. All interested parties
are invited to participate with the government agency involved obliged to
hold a pre-bid conference, where it discusses the requirements and details of
the project to the interested bidders, as well as entertaining questions from
them.

Bidders must comply with the requirements of the procuring entity and
submit all these at the date and place scheduled, together with their bids.
Eligibility is to be authenticated prior to opening bids with the one submitting
the lowest figure declared the winner. However, even then the bidder still has
to pass the post-qualification stage where the accuracy of the documents
submitted will be checked and where necessary they undergo an inspection
of their office, workplace or factory.
Negotiated Procurement is the method for selecting a contractor
without formal advertising and formal price competition. The rules and
regulations for employing the negotiation method specify that the selection of
a contractor will be made to the best advantage of the Government, price
and other factors considered.
Theoretically, factors other than the lowest bid can play the major role
in the selection process. In practice, however, there is a regulation requiring
the Government to justify the choice of someone other than the low bidder.
This gives the low bidder more of an advantage than the regulations would
lead the casual observer to believe.

Negotiated procurement may be employed by Agencies only in the

following cases as determined by the Head of Agency concerned:
a. Where there has been failure of competitive bidding for the second
time as provided under section 4.9 hereof;
b. Where the existing contract has been terminated in accordance with
the pertinent provisions of these IRR and existing laws, rules and regulations;
c. Whenever the goods/supplies/materials are to be used in connection
with a project or activity which cannot be delayed without causing detriment
to public service; and
d. Whenever the purchase is to
office/agency/corporation of the Government.

be

made

from

another

One special negotiated procurement scheme which government

offices/agencies/corporations may consider is the procurement through the
Procurement Service of the Department of Budget and Management. Such
mode of procurement should, however, conform to Executive Order No. 359
which prescribes the guidelines in the implementation of Executive Order No.
285 regarding the operation of a government-wide procurement system for
common-use goods/supplies/materials.
Agencies concerned shall formulate their respective procurement plans
in accordance with the guidelines prescribed hereunder with due
consideration of Section 424 of the Government Accounting and Auditing
Manual. The basic content of the procurement plan shall include the decisions
as to the type of contract to be employed, the extent/size of contract scopes,
the procurement methods to be adopted, along with the expected time
schedule
for
each
procurement
action.
Procurement
of
goods/supplies/materials shall be undertaken according to a plan that shall
take into account the lead time for the procurement process plus the
manufacturing and shipping times expected so that goods are available at
the time needed.
As the general rule, the procurement of goods/supplies/materials by
the Government shall be based on a fixed-price contract and no price
adjustment/escalation shall be allowed. However, in cases where, as
determined by the Government implementing agency concerned,
uncertainties involved in the performance of the contract are of such
magnitude that the cost is too difficult to estimate with reasonable certainty
and
use
of
a
fixed-price
contract
may
seriously
affect
a
manufacturer/supplier/distributor's financial stability or result in payments by

the Government of contingencies that never occurred, types of contracts

other than those based on a fixed-price basis may be used. Alternatively, the
Agency concerned may provide for a price adjustment/escalation provision in
the contract. The procedures, including the formulas to be adopted in the
computation of the price adjustment/escalation due under a contract shall be
agreed upon between the parties and shall be stipulated under the related
contract. The adoption of contract types other than the fixed-price contract or
the inclusion of a price adjustment/escalation clause in the contract
provisions shall be subject to the prior approval of the Head of Agency
concerned or his duly authorized representative.
The size and scope of individual contracts depends on the magnitude,
nature and location of the project. For projects requiring a variety of
equipment, separate contracts shall generally be required for each
type/variety. For a project requiring similar but separate items of
goods/supplies/materials, bids may be invited under alternative contract
options that would attract the interest of both small and large firms.
Manufacturers/suppliers/distributors may then be allowed to bid for individual
contract (slices) or for a group of similar contracts (package) at their option.
Contract requirements shall, however, not be artificially divided into multiple
contracts (splitting of contract package) to avoid using any source selection
method or for the purpose of doing away with or circumventing control
measures under these IRR. Bids under the alternative contract options as
described above shall be evaluated on the basis of the option provided by the
concerned manufacturer/supplier, i.e., a bid submitted as a package only
shall be eligible for award only as a package and shall not be eligible for
award on an individual contract/per item basis. The adoption of this option
including the basis of bid comparison for the same shall be clearly and
explicitly spelled out in the bidding documents. The above notwithstanding,
procurement of goods/supplies/materials shall be carried out in such a way
each bid package or contract would be of such size as to attract widespread
competition and provide optimum efficiency and economy. For routine
operations and maintenance activities, the procurement of necessary
supplies, materials and equipment spare parts by the Agency concerned
which are to be acquired through shopping as defined in Annex "C" of these
IRR shall at no time exceed normal three-month requirements.

Local Government in the Philippines

1. Governed by the Local Government Code of the Philippines, every local
government unit in the Philippines has the power to enact and enforce laws in
the local level. The legislative power is vested in the Sanggunian as a
collegial, collective body. Vested by the Constitution itself, LGUs can legislate

on matters of purely local matters. The Sanggunian has the authority to enact
ordinances, approve resolutions or appropriate funds designed to deliver
basic services and facilities, and to promote the general welfare. As such,
they have the responsibility to continuously interact with the local
government executive branch, constituents, civil society and other personnel
of governance, resulting in policy actions that promote the development of
the locality. Local legislators are more knowledgeable than Congress on
matters of purely local concern as well as in better position to enact
appropriate legislation. The products or outputs of this interaction are
ordinances and resolutions. Local legislation is a participatory process. It
acquires legitimacy and social acceptability through the involvement of
stakeholders in the LGU. The process involves legislative agenda formulation,
crafting of ordinances and resolutions, enactment of ordinances and codes of
ordinances and the evaluation of the implementation of ordinances. At each
phase, various stakeholders in the LGU interact with the sanggunian to
ensure that measures produced address the development objectives of the
LGU.
2. An ordinance is a local law that prescribes rules of conduct of a general,
permanent character. It continues to be in force until repealed or superseded
by a subsequent enactment of the local legislative body. A resolution, on the
other hand, is a mere expression of the opinion or sentiment of the local
legislative body on matters relating to proprietary function and to private
concerns. It is temporary in character.
3. Amendments to local laws generally follow the same procedure as in the
formulation and enactment of ordinances. Amendment can be done by the
local governing body through its sanggunian. Amendments are made when
someone introduced a proposed amendment. Deliberation and hearings are
held on the proposal, and votes to adopt, amend or reject the proposal are
tallied.
Ethics in Government Service
1. The purpose of RA 6713 is to promote a high standard of ethics in public
service. Public officials and employees shall at all times be accountable to
the people and shall discharge their duties with utmost responsibility,
integrity, competence, and loyalty, act with patriotism and justice, lead
modest lives, and uphold public interest over personal interest. RA 6713
expects public officials to be accountable to the people in the matter of their
integrity and competence.
2. Every public official and employee shall observe the following as standards of
personal conduct in the discharge and execution of official duties:

a) Commitment to public interest Always uphold the public interest over

personal interest. Avoid wastage in public funds and revenues. Ensure that
government resources and powers are employed and used efficiently,
effectively, honestly and economically.
b) Professionalism Perform and discharge your duties with the highest
degree of excellence, professionalism, intelligence and skill. Enter public
service with utmost devotion and dedication to duty. Discourage wrong
perception of your role as dispenser or peddler of undue patronage.
c) Justness and sincerity Remain true to the people at all times. Act with
justness and sincerity, and do not discriminate against anyone, especially
the poor and the underprivileged. Refrain from doing acts contrary to law,
good morals, good customs, public policy, pubic order, public safety and
public interest. Do not dispense or extend undue favors on account of
your office to your relatives, whether by consanguinity or affinity, except
with respect to appointments of such relatives to positions considered
strictly confidential or as members of your personal staff whose terms are
coterminous with yours.
d) Political neutrality Provide service to everyone without
discrimination regardless of party affiliation or preference.

unfair

e) Responsiveness to the public Extend prompt, courteous, and adequate

service to the public. Unless otherwise provided by law or hen required by
the public interest, you shall provide information on your policies and
procedures in clear and understandable language, ensure openness of
information, public consultations and hearings whenever appropriate,
encourage suggestions, simplify and systematize policy, rules and
procedures, avoid red tape and develop an understanding and
appreciation of the socio-economic conditions prevailing in the country,
especially in the depressed rural and urban areas.
f) Nationalism and patriotism always be loyal to the Republic and o the
Filipino people, promote the use of locally produced goods, resources and
technology and encourage appreciation and pride of country and people.
Endeavor to maintain and defend Philippine sovereignty against foreign
intrusion.
g) Commitment to democracy Commit yourself to the democratic way of
life and values. Maintain the principle of public accountability
and manifest by deeds the supremacy of civilian authority over the
military. Always uphold the constitution and put loyalty to country above
loyalty to persons or party.

h) Simple living You and your family shall lead modest lives appropriate to
your positions and income. Do not indulge in extravagant or ostentatious
display of wealth in any form.