(PAD 204)
Writer
SHIREEN HARON
Instructional Designer
Suzana Hamzah
Content Editor
Fazimah Hayati Hassan Basri
Language Editor
Nor Fazlin Mohd Ramli
PUBLIC ADMINISTRATION
GOVERNMENT AGENCIES
STAFF ADMINISTRATION
PUBLIC POLICY
CHAPTER 1 CHAPTER 2
CHAPTER 3 CHAPTER 4
GOVERNMENT ADMINISTRATION
PUBLIC ORGANIZATION THEORY MECHANISM
CHAPTER 5 CHAPTER 6
GOVERNMENT AGENCIES STAFF ADMINISTRATION
CHAPTER 7 CHAPTER 8
JUDICIAL ADMINISTRATION PUBLIC POLICY
CHAPTER 9 CHAPTER 10
FINANCIAL ADMINISTRATION IN CURRENT ISSUE IN PUBLIC
PUBLIC SECTOR ADMINISTRATION
public administration Chapter 1
PUBLIC ADMINISTRATION
1
Learning Objectives:
At the end of this chapter you should be able to:
1.1 INTRODUCTION
In term of history, literature on public administration has started since the prehistoric
period. Egypt and Babylons people in ancient times had left us various opinions and
guidance on methods in management and administration. People in China, Greek
and Rome were also not excluded in their idea related to this field. The origination of
modern methods of management can be studied from the existence of Nicolo
Machiavellys Theory. In term of public administration concept, United States leaders
such as Alexender Hamilton, Thomas Jefferson and Andrew Jackson had gave
important contribution to the study of public administration especially in the aspect of
state administration (Shafritz, 1978). After 1887, ideas which focus on the
importance of public administration as a professional field began to grow. This is
stated by Woodrow Wilson in his article The Study of Administration. Wilson does
not want the study of public administration to be specialized only to the study of
personnel problems but also to the organizational problems and general
administration. He studied on several issues in managing public sector by analyzing
the methods used in organizing government office by clinging to two important
questions:-
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Important Facts
First, what are the elements that can help a government to function effectively?
Second, how can a government perform its duties in the most effective way by
utilizing the limited resources such as money and human resources?
From the above questions, it is clear that Wilson focuses on the concept of efficiency
and effectiveness in public administration. Besides that, Wilson also emphasizes on
the importance of dissociation between administration and politics. By doing this, the
function of public administration can be carried out according to its mission without
being influenced by negative value that can cause injustice and oppression. Until
today, Woodrow Wilson literature has been the foundation of academic study in
public administration field.
1.2 DEFINITION
In order to study more on public administration, this book will analyze several
definitions generated by a few of philosophers in public administration and political
science field.
The Dewan Bahasa dan Pustaka bilanguage dictionary defined the term
administration as any matter or action of administering, managing or monitoring.
Meanwhile, the term public refers to the people or citizens in a country. Woodrow
Wilson in his article The Study of Administration, which written in 1887 (Shafritz,
1978), defines administration as, it is the most obvious part in a government, it is the
action taken by government, it is an executive, and it is a body that operates in a
government.
Felix A. Nigro and Lloyd G. Nigro (1984) define public administration according to
these characteristics:-
a) Executive
b) Legislative
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c) Judicial
Dwight Waldos (1965) idea stated that there are two general definitions of public
administration:-
Luther Gullick (1937) defines public administration by forming a concept called P-O-
S-D-C-O-R-B. According to him, public administration is a process which involves
activities such as Planning (P), Organization (O), Staffing (S), Directing (D),
Coordinating (C), Reporting (R), and Budgeting (B).
1.2.1 P-Planning
1.2.2 O-Organization
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1.2.3 S-Staffing
1.2.4 D-Directing
Every organization must have and officer who act as the head
of the organization. He gives direction or instruction to other
staff. Instruction is important because it gives direction,
leadership and motivation to staff who involves in executing
duties to achieve the organizations mission.
1.2.5 C-Coordinating
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1.2.6 R-Reporting
1.2.7 B-Budgeting
L.D. White (1965) defines public administration as, all the activities that aim to amend
and implement public policy.
George J. Gordon (1978) defines public administration as, all the organization and
individual process which relate to the execution of law formed by the Judicial,
Executive and Legislative body. This definition shows that public administration also
include the involvement of administration in the formation and implementation of
Legislative and Executives practices.
Marshalls Dimock, Gladys Dimock (1969) and Douglas Fox (1979) explain public
administration as, the production of products and services to fulfil peoples demands.
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Important Facts
From all the definitions given above, it can be concluded that public administration is best
defines as:-
The increases of scope of activities which involve public administration has leads the
philosopher to define public administration in various definitions as stated above.
(vi) A political process and has important role in legislation of public policy.
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Important Facts
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and loyal in his work regardless which party is in rule. He should has
a good attitude, capable to adjust himself in the society, has integrity,
quality leadership and able to make reliable decision in various
problems within the given period of time. In the field of government,
he needs to have an ability to work together with politicians. (Bhagwan
and Bushan, 1986)
Modern democracy bring along the concept of welfare state. This has
cause the increase of activities in the country as well as the increase
of demand towards public administration to provide more services.
However, if the administration want to work for democracy, it should
operates by itself and be given the freedom and authority to function
effectively. Unfortunately, nowadays, we find that there is a lot of
insignificance interference from politicians in administration. This
interference will disturb the effectiveness of administration and later
erase its role as an instrument to achieve better country
administration. (Bhagwan and Bushan, 1986)
i) Mechanical Approach
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Policy refers to any decision that determines what to be done, how, when and
where it should be done. Policy is the guideline for any action taken no matter
if the action is in the form of oral, written or implicit, which is accepted and
applied by a particular administrator. According to Dimock, Policy is the rule of
behaviour that is recognized to lead any decision in administration. Policy
does not have the same meaning with the term rule because policy is dynamic
and flexible while rule is specific and rigid. Policy is a major decision and it
provides a framework for the other rule which to be generated.
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Important Facts
First, they gather information, facts, data and critical view whether a particular
policy can be implemented or not. The collected information is given to minister
or legislator if the initiative policy came form them. The members of legislative
chamber or the minister is the amateur who were elected by the citizens, not
because of their talent in administration. Therefore they should listen to all
opinion generated by the officer.
Secondly, in many cases, the initiative for a particular policy or law derives from
administration. This is because, administration has good relation with citizens
and it understands more the problems arise in the society which occurs
because of the enforcement of law. Therefore, the administration needs to
generate ideas to overcome those problems. This is done by amendment of
existed law or generates new law. In this situation, opinion on the policy is
generated by the administration while the legislation members will pass it.
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Thirdly, because of the limited time and insufficient knowledge, the legislative
body will only pass the law in the basis framework form and allow the
administration to complete the other details. This situation places
administration at the highest stage in policy-making process. To execute these
acts, the administration provides rules and law that act as the main contributor
to policy-making process.
In the early stage of development, public administration is not very strong and
well known. Therefore, it is easily influenced or powered by politic. This is
because, the officers being elected to make policy and administer would only
implemented the policy. The chief executive, on the other hand, control and
manages bureaucracy according to political significance. However, in reality,
there is no demarcation line between administration and politic. This is due to
the power of own consideration (kuasa budibicara) given to the administration
to implement certain policies. Administration also makes policy which facilitates
the process of administration or the activities in other departments.
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Important facts
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i) Effectiveness
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ii) Efficiency
iii) Responsive
From the three values mentioned above, responsive value is the most
important value. It shows that all activities and objectives of
administration are carried out according to public needs. When this
happen, all the activities is considered have achieve their mission.
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1.8 CONCLUSION
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Study Notes
the history ofpublic administration in Chapter 2
malaysia
2 ADMINISTRATION IN
MALAYSIA
Learning Objectives:
At the end of this chapter you should be able to:
2.1 INTRODUCTION
Before the colonization of British in Tanah Melayu, the Sultans and the ministers of
the Malays states practice feudal system in their governance. The system is known
as Sistem Kerah.
The king is the chief of administration and he is helped by the ministers such as the
Bendahari, Laksamana, and Temenggung. The administration in each district in the
state is lead by the minister elected by the Sultan. As a return, the ministers will give
their service to their Sultan through paying tax, collect tax from citizens for the Sultan
and organize and prepare the citizens when the Sultan need their service. The role
of administration is to keep the state in a peace and harmony condition. This is done
by enforcing the rules regulated by the Sultan. Other than that, the administration
also helps the Sultan in term of collecting taxes from the citizens. This system of
administration ensures that the power and position of the king or Sultan is preserved.
This pattern of administration was maintained until the arrival of British in 1867
(Pangkor Treaty), the first British intervention in Tanah Melayu (Perak). The
intervention of British spread to Selangor, Negeri Sembilan and Pahang (Negeri-
negeri Melayu Bersekutu). At that time, the Sultan agreed to accept a British
President as the advisor in all matters of administration except matters related to
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religion and Malays customs. However, the British President started to interfere in
matters that outside their power. They had forced the Sultans to accept their advice
regarding Malays religion and customs and tried to involved themselves in those
matters. This shows that, they want to take over the power hold by the Sultans.
The British has established Malayan Civil Service (MCS) to help the British officers in
administering Negeri-Negeri Melayu Bersekutu. After being insisted, only then the
British establish Malayan Administrative Service (MAS) for Malays. However, MAS
has been neglected. Later than, the Malay officers who had work 10 years in MAS
were given the opportunity to join MCS but were not allowed to hold important
position in MCS, for instance Chief of Department. Nevertheless, there were no
chances for them to hold such position because they have to wait for some years
before they are really qualified. Most of them almost reach their retirement before
they are really qualified to hold the position. Moreover, there are certain allowance
that be given only to British officer but not to Malay officer.
Important Facts
The situation is better in Negeri-Negeri Melayu Tidak Bersekutu because their Sultans
were more careful to make any treaty with British. They realize the trick British played
in Negeri-Negeri Melayu Bersekutu. Until the World War II, there were more Malays
offivers in Negeri-Negeri Melayu Tidak Bersekutu compared to Negeri-Negeri Melayu
Bersekutu.
The fate of Malays administers are similar in both organization. They act only as
assistant to the British administers without the power to voice their opinion or make
decision. The British not only have power in matters related to rules and law, but
also matters concerning on politics such as the election of Sultan.
This reveal British policy which aims to exploit the resources existed in Tanah
Melayu. The British also used public administration to enforce rules and law in order
to keep pace in the society. The public administration also is used to manage
matters concerning on taxes, who responsible to collect tax, and the amount of tax to
impose. Thus, public administration is used as a controlling tool to keep peace and
collect citizens income as a step of exploiting Malays resources.
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The Malays were not given a high position or power in Public Administration because
the British afraid if they are given too much power, the Malay could do things which
can disturb their intentions during Japan colonization. They realized that British
Administration system is not so strong. Malays administers plays important role to
take over power from the British after Japan colonization. The establishment of
Malayan Union was defied by Malay administers in Johor and then joined by the
other Malay administers in other states. The Malay administers work hard to gain
independence for Malaysia from the British. They became the exponent in Malay
struggle to confront the British in their battle for independence.
After independence, the public administration was slowly controlled by the Malays.
The English administers also left Tanah Melayu and their places were taken by the
local people. However, these local peoples have to face new problem in managing
their new position because they were not given enough knowledge how to hold and
manage such task.
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Important Facts
Public administration responsible in planning and implementing all economic and social
development plans for the people. The public administration at the present time responsible to
fulfill citizens needs and demands. At this stage also the task of the ruler changed. In former
times, the ruler neglects its citizens, but after independence the condition is in the contrary. The
ruler task is to manage people needs not their own needs because the people had chosen them to
manage the task for them.
The function of public administration in our country has change for the second time in
1970 with the launched of New Economic Policy (NEP). The role of public
administration has expanded and more complicated in order to ensure the
achievement of development as planned in NEP. Government has allocated an
enormous amount of budget to support the projects and plans in NEP. Therefore, it
is important for public administration to implement the plans and projects effectively
and efficiently to prevent over-spend.
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Important Facts
Appropriate with the society demand, the public administration in the current times based on the
principle of excellence in management. The pubic staffs are employed based on their excellence
in work to ensure they are truly qualified to enter public administration. Because the task they
have to hold is complicated.
2.4 CONCLUSION
Public administration has to change the traditional policies, structure and methods
used that might prevent the achievement of social equivalent. An effective system of
managing through scientific and modern technology need to be introduced in public
administration because this methods can help Public Administration to achieve their
objective more effectively in economic, and to ensure efficient development in
economic and social equivalent in society.
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Study Notes
public organization theory Chapter 3
PUBLIC ORGANIZATION
3 THEORY
Learning Objectives:
At the end of this chapter you should be able to:
3.1 INTRODUCTION
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Important Facts
Organization, like staff, is the critical factor in every operation of political and
administration system. The effectiveness of organization depends on the matters like position
of responsibility, the use of hierarchy principle, role of the staff, how the accountability of the
staff can be guaranteed, synchronizing of effort and the use of efficient staff through
specialization in labor division.
Some of the philosopher believes that organization only creates a structure, no more
than that. For example, Urwick limits the definition of organization to creating
administration mechanism. He defines organization as determining what activities
are needed for a task and arrange it in a cluster to be given to individual. This
approach is known as structural or traditional approach. However, not so many
people accept the structural approach introduced by Urwick. They believe that
organization is a network of human relation and this fact should not be neglected in
the study of organization.
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Important Facts
There are various organization theory generated like theory of behaviour, theory of
decision-making, theory of information, theory of communication, theory of group,
theory of game, informal organization concept, motivation approach, semi-
mathematical approach, human relation approach and many more. However, none
of these theories contains half of the others. Study on the administration of
organization today is more focus on two approaches, traditional or mechanical
approach to problem, and another one is human behaviour orientation where any
sociologist, psychologist and anthropologist play the main role. These two theories
are different from each other in term of value. People who involved in industrial
management discipline which focus on formal structure concept, emphasize on the
value of productivity, individual competition, efficiency and individual industry.
Whereas, social scientist is more humanistic toward actors in organization (related to
authority).
This theory is based on two assumptions. First, this theory speculates that there is a
particular principle that suit with environment in organization so that it can be
established to fulfil the function or activity. Second, the task is free from its actor. It
is clear that this theory considers organization as a medium and human can be filled
in it like wheel. The scientific management movement started in the beginning of 20th
century under Ferderick W. Taylor, makes division of task based on every
components as the main objective. This movement ignores human behaviour in its
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effort to give a fair daily task to staff. Therefore, it has cause problems. This theory
also believes that personality does not have any role in performing any task. Every
human have to fit themselves with organization needs and who does not suit should
be fired.
Important Facts
In early 1930s, there is a conflict towards traditional organization theory. This conflict
arise because there are many people who are not agree with the narrow and limited
concept on organization hold by traditionalist clan. This is a conflict of abolishing
humanitarian value in organization and also the belief that human is a wheel with
teeth (roda bergigi). Herbert A. Simon (Bhagwan and Bushan, 1986) critics that the
particular organization principal by saying it only an assumption without scientific
testing. Elton Mayo (Bhagwan and Bushan, 1986) who conducted Hawthorne
Experiment had prove that human do not give feed-back when environment or
physical incentive are used. In other word, motivation could not be planned.
Organization is a social institution and the human who work within the organization is
social creature. They can work efficiently if they are provided with a comfortable and
perfect work environment. According to Henry Fayol, if we ignore human factor, it is
easier to build or establish an organization, anybody can build it if they have related
knowledge and enough money needed as capital. However, we cannot build an
effective organization with only dividing human in group and giving them task to do;
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we need to know how to suit organization with the environment and how to obtain
suitable workers and to place them in the division that they can work best.
From the theories explained above, it is difficult to determine which theory is the best.
Moreover, both of the theories depend on each other, the weaknesses in formal
organization theory can be mended by informal organization theory. It is difficult and
requires a long time before a single organization theory can be really established.
3.4 BUREAUCRACY
The word bureaucracy usually gives a negative meaning in our life. When we spoke
of bureaucracy, automatically we would imagine things like red-tape, filled form with
too many information and too detail, small problems become complicated because of
the rule to be abided and others. Even though we normally equalize bureaucracy
with inefficiency, but the truth is, it represents efficiency (the advantages is more than
disadvantages). Bureaucracy also can be regard as an effective way created in
order to move a big organization.
The bigger and complicated a formal organization, the greater requirement needed to
control and synchronize every members activities. This necessities can be fulfilled
by bureaucracy, which is an authority structure operated under a rule and
procedures. Max Weber defines organization as a social mechanism that maximizes
efficiency and effectiveness in administration.
Neutral in this context means do not support either group in dispute. Neutral
bureaucracy is a bureaucracy that neutral in term of politics. They only perform their
tasks in order to implement policy without involving in politics. In United States, there
are laws likes Civil Service Act 1983 and Hatch Acts 1939 and 140 generated to
maintain neutral bureaucracy so that political activities among public officer are
controlled and supervised.
In our country, there are rules that prevent our government officers from participate
actively in politics or become member in any political parties. For example there is a
rule in Public Instruction (Perintah Am) that forbids them from participating in politics.
They have to resign if they want to join politic.
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Important Facts
Neutral is important so that bureaucracy can perform their task fairly, effectively and
efficiently. If they do not practice neutrality, they will easily be influenced with political
belief and their decision being made would not be the best. This decision would somehow
be influenced with elements like bias that arise from the political belief. .
a) There are certain activities that are aim for organization structure
where these activities are divided into formal tasks
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e) It is easier for government to choose among its officers who are really
capable to perform in a certain task.
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3.10 CONCLUSION
In public administration, organization and staff are the two basic factors which reflect
to modification and changes. If we create the best organization structure to perform
the agencys activities, but the officers in the other hand, anxious and not motivated,
the agencys operation will be effected. On the contrary, if the agency has efficient
officers, dedicated and motivated but have to work in inappropriate and inefficient
environment, the agency still will fail to achieve its mission.
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Study Notes
government administration mechanism Chapter 4
GOVERNMENT
4 ADMINISTRATION
MECHANISM
Learning Objectives:
At the end of this chapter you should be able to:
4.1 INTRODUCTION
i) Legislative Body
ii) Executive Body
iii) Judicial Body
Legislative body or Malaysias Parliament posses the power to regulate law and this
power cannot be hold by other bodies. This body has three main elements:-
Every law that was regulated and approved in Parliament assembly must be
approved by the YDPA before those laws are considered as law. YDPA does
not attend the meeting but he only gives his command at the formal opening
of the Parliament. However, he has the power to command, end and dissolve
Parliament assembly. YDPA is assisted by Jemaah Menteri.
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Dewan Negara is the Majlis Tinggi or Senate. Its main function is to debate
on any law in more conscientious and detail way compare to Dewan Rakyat.
It also function to discuss matters concerning on public welfare.
Important Facts
The adjournment period for financial law is one month while the other laws is
one year. Dewan Negara also does not has the power to amend law if
Dewan Rakyat does not accept it.
To manage the meeting for Dewan, a Yang DiPertua Dewan and a Deputy
Yang DiPertua Dewan are elected among the member of Dewan. If both
Yang DiPertua Dewan and his deputy did not attend the meeting, the task can
be taken over by one of the member chosen according to Peraturan Dewan.
Dewan Negara also has a secretary elected by the YDPA.
Dewan Rakyat is a council where the citizen can voice their demands and
they will be represented by their representative. The umber of members of
Dewan Rakyat are 177 people and all of them are chosen through election.
The period of the position as Dewan Rakyats member is until the Parliament
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Dewan Rakyat has greater power compare to Dewan Negara. Therefore, the
majority of the members consist of Prime Minister and the Ministers of the
cabinet. Most of the laws are issued from the Dewan itself, whether by the
ruler or the other member of the Parliament. In this Dewan also where the
government policy is debated and approved.
i) Regulate Law
Important Facts
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related to the law. After obtaining the approval from all parties,
a law draft must be prepared by the National Law Division.
This draft is then presented to Jemaah Menteri for approval.
When it is approved, notice will be send by the Minister to the
secretary of both Dewan Negara and Dewan Rakyat. The
laws are then be printed and distribute to all the member of
both Dewan.
Important Facts
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v) Amendment Power
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Ruler Body or Executive functions to carry out executive power which written in
Constitution and law. This body cannot make law or carry out judicial duty.
According to Perkara 39, Federal Constution, Federal Executives power depend on
YDPA and this power can be performed alone or by Jemaah Menteri or Cabinet.
YDPA is the main leader and he has the executive power which can be
carried out by himself or by Jemaah Menteri or other Minister who has the
proper power to do so. YDPA is a ruler with power that depends on the
Constitution and cabinet advice.
However, the ruler can acts according to his own instinct in three matters:-
iii) demand for meeting of Majlis Raja-Raja on matters related to the King
special position, sovereignty and honour.
Important Facts
YDPA is the highest ruler of Malaysias military with power to amend and give
forgiveness to the punishment sentenced in Military Court. He also has power to
forgive all offences committed in Wilayah Persekutuan and certain offences
under Akta Keselamatan Dalam Negeri.
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Jemaah Menteri or Cabinet is a ruler body that carry out executive power for
YDPA. It also performs policy ruler body and its command will be carried out
by government adminstration mechanism at Federal level.
Important Facts
Cabinet posses the power to form countrys policy. Before any policy is
implemented, it will be discuss first in Jemaah Menteris meeting held every
week. This means every policy implemented by a Minister is the policy
agreed by Jemaah Menteri. In order to facilitate Cabinet to form policy,
several Jawatankuasa Tetap Kabinet is established such as Jawatankuasa
Kabinet for education, investment, and nationality.
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Other than Ministry and Departments, there are also badan-badan berkanun
which help in national administration.
Important Facts
Judicial Body is a body that posses judicial power and carry out judicial function for
the country. This body cannot regulate law or carry out executive power. Perkara
121(1) Fedaral Constitution has allocated judicial power to Mahkamah Tinggi in
Malaya, Mahkamah Tinggi in Borneo and any Mahkamah Bawahan according to the
law.
This body is given the freedom to act as an institution that enables the judges to
carry out these task fairly and justly without bias. Mahkamah Agung is then highest
court in Malaysia and Yang Dipertua Kehakiman is the Ketua Hakim Negara
Mahkamah Agung elected by YDPA.
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Government departments and public body are two different sectors with different
control of each other. Departments are placed under direct control of Ministry and
Central Agency while Public Body is control indirectly.
i) Mahkamah Agung
1) The power to hear and determine the appeal of crime and civil
cases from Mahkamah Tinggi.
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i) Mahkamah Seksyen
This court is chaired by a Yang Di Pertua. It is the high court for the
category of Mahkamah Rendah. In crime cases , this court has the
power of justice upon all crime, except the crime that can be
sentenced to death.
For civil cases, this court posses power of justice if the amount of
argument is not exceed RM 100 thousand except that on certain
matters concerning on permanent property, furniture and hired
property, divorce and bankrupt.
On July 1987, Mahkamah Seksyen has been given the power to take
over part of the function of Mahkamah Tinggi. This is to foster the
perbicaraan of cases especially civil cases. Meanwhile, part of the
function of this court is transfer for the perbicaraan of Majistret Kelas
Pertama.
This court manages civil and crime cases and it is chaired by Majistret
Kelas Pertama or Majistret Kelas Kedua. Majistret Kelas Pertama
posses the power of justice for all crime where the punishment is not
more than 10 years of prison or RM 10 thousand fine and 12 sebatan.
In civil cases, the majistret can manage the cases where the amount
of argument is not exceed RM 25 thousand. Majistret Kelas Kedua
responsible in reading cases and allowing jamin. He also can manage
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This court has power to manage all juvanile crime except the crime
that can be sentenced to death. This court is chaired by Majistret
Kelas Pertama.
Through the extend of Mahkamah Rendah Act 1948 to Sabah and Sarawak in
Jun 1st 1981, Mahkamah Seksyen and Mahkamah Juvana is established in
both states. This courts has the same power as the Mahkamah Seksyen and
Mahkamah Juvana in Semenanjung. Both of the states carry out Mahkamah
Negeri System known as Mahkamah Adat. Its power of justice covers the
reaking of rule or custom which involve certain races.
Perkara 32(1) Federal Constitution has placed YDPA as Ketua Negara who
posses executive power and plays important role in managing Federal
Government matters. This power also can be carried out by YDPA or Cabinet
or any Ministry that gain the power from Cabinet. In performing ruling
matters, YDPA needs to get assistant and advice from Prime Minister and
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Cabinet except in three matters where he can used his own instinct and
sense. The three matters are as follows:-
Other than Ketua Negara, YDPA also is the Highest Ruler of Military and
Chief of Islam for the states that do not have Sultan or Raja.
Important Facts
Among the power of YDPA is the power to elect the highest posititons such as
National Judge, Makamah Agung judges, Ministers and Deputy Ministers,
Commissions members, and National Auditor. He also has power to give
forgiveness to crime dibicarakan in Mahkamah Tentera or committed in Wilayah
Persekutuan and the criminal is under Akta Keselamatan Dalam Negeri.
YDPA is given the mandate to preserve and maintain the special position of
Malays and aborigines/native people in Sabah and Sarawak. Perkara 150
Federal Constitution gives power to YDPA to preserve the peace and
harmony of public and security of the country. Through that grand of power,
YDPA has the power to declare darurat in certain condition. He also has
power to determine the date of activity and festive celebration of Islam like the
start date of fasting and Hari Raya.
Jadual III Federal Constitution has determine the rule in electing of YDPA
among Raja-Raja in states. The first king in the list will be offered the YDPA
position for five years except that if he resign or fire from its position as YDPA
and do not rule the state anymore since the date of election. Therefore, a
Pemangku Raja or Jemaah Pemangkuan Raja will be elected to carry out
executive task in that state. However, YDPA is still the Chief of Islam at that
state and the agreement from him is needed to perform changes in state
constitution.
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The second Raja in the list of YDPA candidate usually will be elected as
Deputy YDPA by Majlis Raja-Raja. As YDPA, the period of position is five
years. When the position of YDPA is vacated due to kemangkatan, ill or there
isnt any YDPA at Federal Government for more than 15 days, thus the
Deputy YDPA will fill the position.
This Majlis is memberred by all Raja-Raja while for the state without Raja, the
Yang Di Pertua take place. This Majlis usually meets for three or four times in
a year. Several of the task of Majlis Raja-Raja:-
IV. Cabinet
Cabinet is a body that carry out executive power hold by YDPA. The cabinet
for out country is formed by party that win majority in Parliament. It is lead by
Prime Minister and other Ministers elected by YDPA with the advice from
Prime Minsiter. Most of its members are Dewan Rakyat members and were
elected based on political status. Changes in cabinet occur due to changes
of Ministrys function or changes of members political status.
Important Facts
Cabinet is the highest body in country. It responsible to make basis decision and regulate
national policies to be implemented by government administration mechanism. In regulating
government policies, Cabinet is helped by several permanent committees in matters such as
Investment, Perjawatan, Kewarganegaraan, and salary for public sector workers. Other than
that, there is also special or temporary Cabinet Committee formed to asisst Cabinet in various
fields from time to time.
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V. Majlis
Generally, there are two types of Majlis in Federal Government system. They
were Majlis Perundangan and Majlis established to synchronize
administration matters.
Besides that, there are three Majlis that were formed to help Cabinet in
synchoronizing the activities of Ministry and facilitate the progress of the
administration mechanism at Federal level:-
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All Majlis is chaired by Prime Minister and attended by all Cabinet members.
VI. Commission
Other than that, there are special Commission established especially to study,
investigate on certain matters or problems. This commission is temporary
and usually is amend when the issue or problem is settled, such as Salary
Commission.
Perkara 105 Federal Constitution has allocated that YDPA or Prime Ministers
advicer must elect a National Auditor. The role of National Auditor is to audit
all government agencies account at Federal level and State level as well as
other accounts according to YDPA. The practice of accountability covers:-
To ensure that all accounts being keep is reliable and can be trusted,
and all business transaction is carried out according to rule and law.
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3) Accountability in Planning
In a federal country, the process of ruling is divided into Central Government, State
Government, and Local Government. Every state government has their own
structure and administration mechanism as well as their own right and responsibility
outside the power of central government.
Important Facts
State Government is lead by King, Sultan and Yang Dipertua Negeri, in which the
executive power is carried out by Ketua Menteri or Menteri Besar. Any state has its own
constitution, legislative body known as Dewan Undangan and Majlis Mesyuarat Kerajaan
Negeri or Exco Negeri..
In carrying its task, Raja or Yang DiPertua Negeri is assisted by Exco Negeri
or any member of the Yang DiPertua Negeri can use his budibicara:-
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Every state has a Dewan Undangan Negeri and its members are chosen
through general election or small election. Different from Federal Parliament,
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it only has ine chamber only. This chamber has power to approve any law
required and not dissent from Federal Constitution. In certain matter like
financial loan and increase staffs, state government must get advice from
federal government and must follow the policies set by Majlis-Majlis Negara.
Both states practice cabinet system that almost similar to federal cabinet
system. In Sabah, there is a State Cabinet member by young Ministers who
responsible on certain Ministries. In Sarawak, the cabinet is known as Majlis
Tertinggi. The main Pegawai Tadbir for a Ministry is called Setiausaha Tetap
that has the role similar to Ketua Setiausaha in Federal Ministries.
i) District
ii) Mukim
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iii) Village
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4.6.2 Department
1) State Department
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The main state department in Sabah and Sarawak that was placed
under the responsibility of State Government are:-
4.6.3 Commission
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This administration structure is very important to countries that posses a large area
or territory. This is to ensure that the administration can be carried out effectively in
area that are far from administration centre or city.
In 1976, local government has performed restructuring over its local entrepreneurs.
The reason of the restructure is:-
i) to ensure that local entrepreneur will be independent units and able to provide
good service to people under his authority
ii) to enable local entrepreneurs to administer the city area more efficiently and
provide modern services
Before the restructuring is done, there are six types of local authority which is Dewan
Bandaraya Kuala Lumpur, Majlis Perbandaran, Majlis Bandaran, Lembaga
Bandaran, Majlis Tempatan and Majlis Luar Bandar. However, after Akta Kerajaan
Tempatan 1979 is created, there are only two types of local authority; Majlis
Perbandaran and Majlis Daerah.
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ii) to control over territory change, new territory and city status
clarification
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These acts are the foundation for legislation of small law that can be done
by local entrepreneur. Legislation of small law also can be done through its
Majlis.
i) Majlis Penasihat
2) Member of Majlis
3) Yang DiPertua
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4) Setiausaha
i) Professional Group
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6) Committee System
Important Facts
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There are two main principles that determine the status of local
government function:-
a) Mandatori Function
i) Security
ii) Environment
iii) Recreation
iv) Trade
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4.8 CONCLUSION
As a conclusion, the challenges on 90s decade will need local authority to plays its
role and function more actively parallel to the changes of international scenario
especially in increasing the economic activity in industrial and trade. Therefore, the
local authority has to create suitable condition and accommodation to attract more
foreign investor in our country. This effort can help to increase the local economic
growth. Similar in tourism, the local authority needs to make more initiative to attract
tourism in supporting the Tahun Melawat Malaysia and the effort such as cleaning
and improve the beauty of our environment.
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Study Notes
government agencies Chapter 5
GOVERNMENT AGENCIES
5
Learning Objectives:
At the end of this chapter you should be able to:
5.1 INTRODUCTION
The field of state administration at federal level is very wide. It covers the aspect of
services such as economic, social, security and education. Therefore, to ensure the
smooth operation of administration duties, government has form several agencies
that function to perform specific duties. These agencies are central agency or
management agency (executants agency).
Central agency is the government agencies that responsible to help, synchronize and
control of the performance of management agencies. Its main responsibilities are:-
ii) Supply two main necessities; personnel and expenditure allotment, to all
government agencies.
iv) Control and synchronize the two necessities provided, policies as well as
economic plan can be carrying out successfully by the management agency.
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1) Exchequer
ii) Gather income through taxes and loan for Federal Government.
iv) Determine the most effective and efficient system for acquisition,
utilization, management and pelupusan process of property.
vi) Provide various services such as central contract, housing loan and
other loan for government and state agencies.
a) Administration Unit
g) Accountacy Unit
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In general, the role plays by JPA are to regulate and implement personnel
policies to ensure that all public service have an efficient and discipline staff.
ii) Regulate policy for salary, allowance and pension for public service
workers.
iii) Create post or positions in public service. This task is done together
with exchequer.
iv) Solve any problem arise from the unsatisfying feeling among worker in
public service especially in matter concerning salary, allowance,
pension and anamoly through consultancy.
i) Administration Unit
ii) Bahagian Perjawatan
iii) Service Unit
iv) Salary and Allowance Unit
v) Consultancy Unit
vi) Career Training and Development Unit
vii) INTAN
viii) Pension Unit
Important Facts
EPU is an agency that plans national economic development. It is divided into 2 main
division; Macro Planning Division and Sectoral Planning Division. Other than that, this
unit also has External Aid Section and General Service which provide administration
service and operate technical aid matter.
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ii) Check annual development budget. This task is done with Exchequer.
This unit has been established since 1971 which aim to determine the
synchronization and implementation of policy, for example DEB, as well as
development plans whether at federal level, state or between departments.
ii) Monitor public agencies and bodies like MISL, HICOM, PETRONAS
and PERNAS in order to ensure their operation is parallel to DEBs
need.
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Important Facts
ICU is urusetia for Majlis Tindakan Negara (MTN) and responsible to operate Bilik
Gerakan Negara.
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Besides that, MAMPU also has branches in Sabah and Sarawak. MAMPU
also act as urusetia to some committee such as National Administration
Development Committee and National Data Processing Committee.
This agency consists of most of the government agency such as Ministry and
departments that carry out development task as well as providing services to the
public. In government administration mechanism system, these administrative
agencies can be divided to Ministry, Department and Badan-Badan Berkanun/Public
Bodies.
1) Ministry
KSN is the main administrative officer for JPM. He also acts as the Cabinet
Secretary and adviser to Prime Minister on administrative matters. He
responsible to ensure the smooth operation of Federal Government
Administration as well as a administrative penyelaras at state and local level.
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i) Self-accounting Ministry
The determination of the category is based on size of the Ministry and the
function of this action is to facilitate the operation in administration and
financial process.
2) Government Departments
Every department has its own main office/headquarters which mainly located
in Kuala Lumpur. This headquarter function to regulate policies, plan, control
and monitor activities in department at state and district level.
3) Public Bodies
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national objective and mission. It is also responsible to take over certain task
and responsibility as well as the function of other department.
Important Facts
The establishment of this body will generate opportunity for the government to
involve actively in national socio-economic development. Besides that, these
bodies also responsible to provide various facilities and services for the citizens.
i) Badan-Badan Berkanun
Every public body has Board of Director which its members were elected by
the Minister for the Badan-Badan Berkanun.
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The government departments and public body are two different sectors with different
control of each other. Departments are placed under direct control of Ministry and
Central Agency while Public Body is control indirectly.
Ministry and Central Agency control upon public body especially Badan-Badan
Berkanun is on matters related to government policies.
ii) Election of government officers (senior officers) to fill the board of director
iii) Control of the estimation of budget, annual and five years development plans
of the corporation. Corporation needs to get approval from Ministry,
Exchequer, JPA, and EPU.
Important Facts
Badan-badan tidak berkanun has wider freedom in term of their skim perjawatan.
However, their activities must be parallel to the laws and the act of their establishment.
5.5 CONCLUSION
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Study Notes
staff administration Chapter 6
STAFF ADMINISTRATION
6
Learning Objectives:
At the end of this chapter you should be able to:
6.1 INTRODUCTION
In public sector, the average role of staff administration does not have much
dissimilarity to private sector. Only that its responsibility in public sector is wider and
more complicated because of the organization size of public sector is bigger. In
Malaysia, the main role of staff administration in public sector is played by Jabatan
perkhidmatan Awam who responsible to legislate policies concerning to staff and
staff service from the employment stage until retirement stage.
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Even in the current science and technology era, the importance of human resource
cannot be neglected. Human resource has the same importance as machine and
modern equipments used in organization. The productivity of an organization,
whether public or private sector, still depends on the ability of staff energy.
Important facts
For example, in Japan, economic development achieved today is the contribution of staff
behavior who hardworking and efficient. There is a statement stated that the most important
asset in organization is the workers because the achievement of an organization depend on the
ability of the staff as well as efficient administration.
If the staffs are treat with care, given the appropriate salary, enough rest and holiday,
appropriate medication and other aspect, welfare, and comfortable working
environment, the staff will feel comfortable to work without wasting their time to think
personal or family problems. For the organization that neglect the welfare of their
staff, surely there will be dissatisfaction among the staff and due to the
dissatisfaction, the staff will not give the appropriate contribution to the organization.
This will effect the performance of the organization.
i) Staff administration must employ suitable staff that really qualifies to fill the
position. At the same time, the usage of staff must be systematically planned
so that it will not exceed or less than the requirement. The inappropriate
amount of staff will effect the organization performance.
ii) Staff administration also needs to prepare appropriate rules that suit with
organization demand as well as the rules do not too control of the staff. The
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rules also must able to help workers and create a good working environment,
not the kind of rule that tries to control and punish the staff.
iii) Staff administration must create a reward system which suitable with every
level of position in the organization. The salary must be appropriate with the
work done by the staff. If the salary is too high, this can be overwhelming for
the organization to defray as the cost will increase. Whereas, if the salary is
too low will create dissatisfaction among the workers. As a result, the staff
will not work efficiently.
v) Protect the needs and necessity of staff like providing proper medication
facility to them and even their family, financial loan (house/car), recreation
facility and others. These facilities help to reduce problems faced by staff and
as incentive to them.
vi) Maintain discipline and ethic of staff. Good discipline in work need to be
formed so that the staff can easily obey it. Staffs that break the rule of
discipline must be given second chance to improve their performance or to
solve their problem. They should not be punished as punishment will
somehow increase their problem. They should be assisted to overcome their
problem.
vii) Prepare appropriate training to enable them to increase their knowledge and
skill in their work.
viii) Prepare career opportunity like promotion, retirement scheme and others.
The above points are the main role of Staff Administration in an organization. When
Staff Administration able to plays the above roles efficiently and effectively, it can
help increase the organization performance.
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A vacancy exist when a staff stop his service due to retirement, get
offer for new position at other organization, to start a business, or due
to health problem or efficiency problem. Vacancy exist when there are
new vacancies in the organization.
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The candidates that seem to have good potential will be sieved for an
interview. The selection process is a complicated process that
involves evaluation between the candidates ability, attitude, interest,
and behaviour with the position he going to hold. There are two
methods used in the selection process:- interview or test.
The following criteria are usually referred when selecting the best
candidate for the position:-
i) academic qualification
ii) age
iii) Skill (technical staff)
iv) Working experience
v) Health
vi) Working ability
vii) Attitude (cooperation, hob-nod)
viii) Interest in work
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Important facts
The increase of staff technical skill will help the staff to perform more
effectively and efficiently. Through training, they can increase their
working skill, knowledge, new method and technique to perform their
daily task. As a result, cost can be decreased, productivity can be
increased, and further organization performance can also be
increased.
Important facts
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ii) Flexibility; which is to adjust the staff and his task which is
always change in a environment that is also changeable
Formal training of the staff is carried out through various methods like
discussion, proceeding, conference, talk, and workshop. Among the
most usable training are:-
i) Pre-Entry Training
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This type of training is given to staff after they has started their
duty in organization. The objective of this training is to
increase the performance of work as well as to prepare the
staff for promotion. This training usually conducted through
two methods:-
6.3.4 Promotion
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Important facts
There are two main criteria which are usually used in public sector;
merit and seniority.
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c) The staff with more seniority may not want to work hard
as they know that they will be promoted when the time
has come
ii) Merit is the second criteria used and it is against the former
criteria. It means that promotion is based on qualification and
achievement without considering the period of service.
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Important facts
From the above discussion, we can identify that the criteria seniority
and merit has their own advantage and disadvantage. So, in order to
solve this problem, the following solution can be made: -
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6.3.5 Retirement
ii) To create promotion opportunity when there are high level staff
who retire. The number of high level position is limited. Staff
can only be promoted when there is a vacancy in the high level
position. If the upper staff does not retire, it is difficult for the
lower staff to get promotion to higher position. This will
emasculate their morale and further effect the organization
performance.
iii) To provide opportunity for new staff and new idea to be absorb
into organization so that the older staff can retire and be
replaced by new generation.
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The role of JPA is to formulate, plan and perform public/government that related to
public service and to ensure that public service in Malaysia is participated by
efficient, trained and dedicated staff to perform all government policies and objectives
for the sake of citizens. JPA is responsible to administer all matters related to staff
since the first day he start work until he retire. This role is played by JPA through the
following departments: -
i) Perjawatan
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ii) Service
v) Pension
This division responsible to make sure the pension payment is done efficiently
in order to ensure staff welfare is not neglected.
vi) Consultancy
This division responsible to fulfil the need of public staff data by creating a
computer system called Personnel Basic Information Data that contains basic
data of public staff.
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INTAR organize course for every level of public staff whether long-period
course at diploma level or short-period course. Most of the courses focus to
improve problems related to management in public agency or to improve the
career of public staff. This can be achieved by improving general
management problem in government agency or evaluating the appropriation
of government officer to be promoted or to be appointed to specific service.
6.5 CONCLUSION
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Study Notes
judicial administration Chapter 7
JUDICIAL
7 ADMINISTRATION
Learning Objectives:
At the end of this chapter you should be able to:
7.1 INTRODUCTION
The role of Legislative Body is to make and approve laws. While the role of
Executive Body is to implement policies. The role of Judicial Body on the other hand,
is to ensure peace and harmony in society. This body responsible to cancel any laws
which is not suit to Constitution. This body has the power to interpret laws as well as
maintain the right of the citizen.
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Important facts
Garner (1979) in his book Administrative Law stated that any statutory body which
posses all or one of the values of characteristics stated below is an administration tribunal
body.
iii. Every decision made by this body will be precedent to the other cases
iv. Every decision is made by all the member not by one single person
vi. Rule and procedure for case hearing is more easy and simple from other
ordinary court
The development of administration tribunal of this century has gained many critics.
The issue being debate is on the concept of original establishment of tribunal and the
lack of self-dependent in some of the administration tribunal.
In 1957, the attitude toward administration tribunal starting to changed due to the
establishment of Franks Committee Report in England on Tribunal and Enquiries.
This report emphasize on the benefit of tribunal from aspect of economic, informality,
time, decision-making, and skill compare to court. Various opinions has been
presented and further implemented to increase the role and work of administration
tribunal. This has directly increased the trust and confidence of public toward tribunal
body.
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Franks Committee Report stated the need and importance of these following
characteristics in administration tribunal:-
i. openness concept
There are several reason why tribunal exist. First, from the aspect of cost and time.
The existence of tribunal quickens the administration work and lightens the burden of
court. There are small administration cases which if they are brought to tribunal, they
could be quickly solved. This will reduce cost and time. If small cases are brought to
court, it will take long time to be solved. From the aspect of cost, it will save cost as
the process of hearing the cases would not need any lawyer.
Tribunal panel membership normally involves people who have skill in certain fields.
The complicated cases such as case relate to science and technology needs advice
and opinion from the experts.
Industrial Court is established through Akta Perhubungan Industri 1976. Its function
is to solve all conflict of entrepreneurship. This court is member by a President who
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was elected by Yang Dipertuan Agong. Three other members were elected by
Ministry. They were free member, employer and employee representative.
7.6 CONCLUSION
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Study Notes
public policy Chapter 8
PUBLIC POLICY
8
Learning Objectives:
At the end of this chapter you should be able to:
8.1 INTRODUCTION
The study of public policy enables individuals to study, explain and analyse policy
formed by government. These topics will study on four models of public policy which
are system model, elite model, group model, and incremental model.
Important facts
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Various fields are administered through public policies like internal securitys issues,
rural development, international relation, financial administration, unemployment,
education, urbanization, inflation, taxation, social charity, and economic
development.
The term policy means all decision made to plan and determine what to be done,
how, when and where to be done. Policy is planned and implemented specially to
solve problem.
Dimock (1957) defined policy as a legal rule which aims to lead public administration
in decision making process.
The process of forming public policy must be based on complete information and
accurate data. For legislative body, it is public administration or executive to supply
needed information.
There are also three ways to collect information for policy making process:-
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It is important for public policy researcher to study on public policy meticulously and
critically as:-
i) First, study on public policy allow individual mind to study the form of
government and political stability at every levels of government.
iv) Fourth, allow public policy researcher to study on the implications of policy
implementation upon the citizen.
Learning and studying of these models will introduce your mind to different approach
and concept in public policy.
The study on this model is an approach which helps us to view public policy as a
motivator for a political system toward power the environmental power movement.
(Ahmad Atory Hussain, 1990) This power movement exist in system model
environment. (Please refer to Figure 1).
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There are several terms used in the study of model system. These terms are
environment, input, output, and support.
(Source: Ahmad Atory Hussain. Politik dan Dasar Awam Malaysia. 2nd ed. Kuala
Lumpur: 1990)
ENVIRONMENT ENVIRONMENT
POLITICAL
SYSTEM
ENVIRONMENT ENVIRONMENT
ii) Output
Public policy is the output for political system. The concept of model system
involves the power of institution and activities carried out in society that
function to change demand to a legal decision. Demand from society
normally appears when there is problem occurred in the society.
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iii) Input
Input is the demand of the society. These demands usually relate to the
values of life shared by all individual (shared values). For example, the
shared life values being shared are comfortability of life, country security,
stable economy, low level of crime, and harmonization of life.
iv) Support
This system can maintain itself through three ways (Ahmad Atory Hussain,
1990)
Important facts
The concept emphasized by the model is the interaction occurs among groups in the
society. It is the main factor in politic and in the process of policy making. (Please
refer figure 2)
(Source : Ahmad Atory Hussain. Politik dan Dasar Awam Malaysia. 2nd ed. Kuala Lumpur:
1990)
Increase of influence
Group B Group A
Policy change
Alternative policy
position
Balancing
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Truman felt that group model is a group with importance. It is a group which
has shared attitude to raise certain demand toward another group in the
society.
Therefore, group with importance means a group of people who shared the
same ideas and values.
These groups has political attitude if and when they raise demand upon any
government institution. Individual is only important in politic when they act as
part of the group with importance. This group function as a connector
between people and their government. This group will try to influence public
policy for the sake of their needs.
In this situation, the task of political system is to maintain and control the
groups conflict using the following techniques:-
Important facts
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The group with more influence will able to influence the Public Policy. Policy
will be drafted according to requirement stated by the group with influence.
Therefore, the effect of it in this model is that the particular public policy will
change its position towards influences group.
Latham felt that in term of group model, Public Policy is a balancing achieved
the power struggle between two groups with importance. In this power
struggle, the law makers act as the judges.
The number of member the more member the group has, the more
influence the group will be
Group model has its main objective which is to ensure that all political
activities in the government is done according to the group in struggle.
This model is found by Charles LindBloom (Ahmad Atorny Hussain, 1990). (Please
refer Figure 3)
In this policy, the public policy makers will checks the plan of policy meticulouly as
well as check all activities and programs. The checking aims to ensure that all policy
being implemented achieve its goal.
Incremental means the task that is done slowly. Every activity is important and in this
model, every policy activity or program is not selected according to the best.
The concept of this model is public policy cannot be implemented entirely due to
these following problems:-
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Incremental model normally is used in the country that only started to develop or only
gain its independence. The country has many strategies to achieve political,
economic and social stability.
(Source : Ahmad Atorny Hussain. Politik dan Dasar Awam Malaysia. 2nd ed. Kuala Lumpur:
1990)
Increase of Policy
Former
policy
commitment
In the mission to plan public policy for country development, the following problems
occur:-
i) The administrators do not have much time to plan policy because for a
country that just acquire its independence or only begin to plan for its
development, the planning must be done as soon as possible.
ii) The use of technology needs a large amount of financial resource. Therefore,
there is policy which is needed to be implemented slowly using the maximum
utilization of the resources.
iii) Every policy has strategy, activity and program. With limited financial
resource, complication of investigation of each strategy, the activity and
program will take a lot of time and money. This will make the process difficult.
The cost to collect information and data is too high. Therefore, the
administrators and policy makers are not able to predict.
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The elite people have the right to form multitude opinion upon the task of
policy making and planning. (Please refer Figure 4)
(Source: Ahmad Atorny Hussain. Politk dan Dasar Awam Malaysia. 2nd ed. Kuala Lumpur:
1990)
ELITE
Policy Instruction
Administrator/Officer
Policy
Implementation
PEOPLE/CITIZEN
Referring to Figure 4, it is found that the communication flow in this model is from top
to down. The upper part consists of elite people. The middle part consists of
administration officer. The lower part consists of the citizen whom did not know on
public policy.
The task and responsibility of elite group is to make sure that the policy is formed
according to the need of elite group.
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The task and responsibility of administration officer is to implement laws being form
by the elite group.
Different from system model, public policy is legislated bt elite group, not according to
demand raise by the people.
Public policy legislated by elite group shows the need of particular group. The public
policy implemented provides profit and benefit to elite group. In this model, all
changes to be done on public policy are very slow and not urgent.
8.9 CONCLUSION
Public Policy is important as it act as a plan of program and activity which aim to
increase the standard of living of the people as well as the improvement of country
development. It is form according to people needs so that the policy can help solve
problems in society as well as country.
Evaluation of public policy is an effort to develop and test the general opinion on the
objective of public policy formation. Evaluation of Public Policy can provide important
information and knowledge. Therefore, the effort to improve the foundation to
achieve consistent decision for public policy can be done soon.
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Study Notes
financial administration in public sector Chapter 9
FINANCIAL
9 ADMINISTRATION IN
PUBLIC SECTOR
Learning Objectives:
At the end of this chapter you should be able to:
9.1 INTRODUCTION
Financial administration is a process that begins with collection of tax until the final
expenditure. For a modern government, financial administration for public sector
involves the formation of financial resources, approval, expenditure and accounting
of those financial resources to defray public service.
i. Budget
Budget is a document that contains the estimate income and expenditure for
an organization.
ii. Exchequer
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iii. Taxation
iv. Supply
v. Audit
Audit ensures all business transaction are correctly recorded. The Chief of
Audit is responsible to ensure that public money is used properly according to
rule and law.
vi. Accounting
The differences between the financial administration in public sector and private
sector can be studied through these following aspects: -
In public sector, government usually plans its expenditure before it finds the
method to gain returns. Activities in private relate more to income. While
activities in public sector do not relate to how to get profit as most of its
departments focus only on expenditure.
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Private sector has a clear and special objective which is to maximize effort of
planting capital in business. Whereas public sector, it has various objectives
in order to fulfil public demands.
Important facts
There are several government agencies involve at planning stage which are
Jabatan Perdana Menteri, Ministries, Economic Planning Unit (EPU), MAMPU,
and Bank Negara .
ii) Budgeting
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iii) Funding
iv) Accounting
9.4 BUDGET
Important facts
Annual government budget is a statement of amount and types of expenditure which will be
used and statement of return that will be gained to defray those expenditures.
That budget is for one year period and every suggestion stated by an agency on
matters that will be carried out in that particular year in order to achieve its special
objective and government objectives as whole is presented in term of ringgit.
Therefore, budget is not only a financial planning but it is also a media to present
government policies and how those policies should be carried out.
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Budget acts as a tool for financial planning because in our life, sources and
resources is limited whereas demand is not limited. Therefore, priority and choice
must be determined. The roles of budget are as follows:-
i. As a policy statement
Budget states the predicted return that will be gained and the amount of
expenditure to be used for a specific period of time. It also states the policy
concerning government income and expenditure in order to achieve economic
stability, to control inflation, to divide income and others.
Budget ensures that every cash is spent for certain matters determined by
parliament.
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1. Preparation Stage
In preparing budget policy and budget draft, Exchequer will obtain a set of
estimate return from international economic analyst division. This information
will produce the estimate economic condition in our country. Budget
Department then will produce feedback by sending letter to every
departments that contains guideline on how to prepare estimate budget of
their department. Budget Department will give instruction called call-for-
estimate and give the due date on which the estimate budget to be sent to
Budget Department and Exchequer.
The estimate budget being accepted from every department will be checked
and evaluated by the Budget Examiner. One of the evaluations is by asking
questions (soalan berbangkit). After that, the estimate budget is send to
Budget Department who will produce budget document for the particular year
to Finance Minister to get approval from Legislative Body.
2. Approval Stage
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3. Implementation Stage
4. Audit Stage
This stage functions to ensure that government department and agency follow
the rules of financial manner so that it will parallel Parliament approval.
9.9 CONCLUSION
Generally, a budget which is planned and implemented efficiently will produce a good
return. Budget being prepared without good planning will create wasted program in
term of cost, power and time. This will create loss which can affect the economic and
political stability.
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Study Notes
current issue inpublic administration Chapter 10
CURRENT ISSUE IN
10 PUBLIC ADMINISTRATION
Learning Objectives:
At the end of this chapter you should be able to:
The traditional public administration focuses more to control and monitor in order to
ensure peace and stability in the country and collection of tax to defray country
activities. Major part of its power held by government officer in state capital or states.
Most of public staffs are generalists, not specialists. Public officers give priority to
their position and create social gap between citizen and themselves. Citizen rarely
can meet with these officers as those officers rarely want to meet citizens outside
their offices. Government department also practice individualistic attitude and
seldom be cooperative. They like to be competitive in order to be the best in their
department. They consider themselves as master to citizen.
Even though the role of traditional public administration which is to collect tax and
maintain peace is important, it needs to be changed so that public administration can
be adjustable to the changes occur in current situation but still able to help to develop
the country. Taxation system and the method used to collect tax needs to be
improved so that collection of income can be maximized without creating problem to
citizen or preventing economic development. Peace and harmony must be
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Important facts
Public administration should be responsive to people needs and they should not wait
until the citizen come face to face to them in order to get the service but they themselves
who should go down to offer the service. They are the slave not the master to people.
Public administration should be alert all the time to give appropriate service to citizen.
Public organization should not be individualistic and competitive for their own
benefits. This will waste time and resource. They should be cooperative and try to
synchronize their work to prevent waste of time and resource. This will help to
optimize utilization of resources and further help to achieve government objective
effectively and efficiently.
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Nowadays, public and private organization has intermediate and modern equipment
as well as trained and skilled staff in order to help increase their productivity.
However, this will not entirely true as level of productivity do not depends on modern
equipment and trained staff. There are other factors that contribute to productivity
achievement.
If the salary is too high, the organization has to defray unbearable cost. Sometimes,
this cost has to be bear by customer in term of expensive product or service.
Increase of price will reduce demand and further reduce production as well as reduce
the profit. However, if the high salary can increase or double the level of productivity,
this can create profit to organization.
Appreciation to staff can motivate the staff. The staff will has satisfaction in their
career as their contribution is appreciated by their employer and this can increase the
spirit to work hard in their position. Other than that, the facilities provided by
employer also can motivate the staffs. This includes facilities like free medication,
financial loan, praying place in office and opportunity to get promotion.
Employer also must create suitable rule in office to ensure discipline among the staff.
However, the rules must not be to strict which can disturb the staff freedom to use
their creativity and interest in their work. Sometime, the staffs have new idea for the
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organization but the rule prevent them from voicing their ideas and this can distract
their incentive in their work.
Public sector is a sector that contains the highest number of workers, more that 840,
000 workers. This size actually has been reduced through privatization of Telekom,
Lembaga Letrik Negara, Pelabuhan Kelang and several other organizations. This
privatization policy is still under study in order to privatize government agency like
MARDI, Jabatan Hasil Dalam Negeri, as well as universities.
This policy is introduced by Prime Minister in 1983 and the enforcement start in 1984.
Privatization means the displacement of government role or public sector to private
party including its asset and right. Privatization can exist in the form of private
contractor to give service which the public sector used to provide.
Important facts
There are two reasons of privatization. First, the increase of expenditure in public sector due to
the increase in development project to be carried out by government. The problem become
critical as government has to defray salary and emolument of public sector which is increasing
day by day. Second, government believes that private sector can play the role held by public
sector more efficiently than public sector.
The size of public sector in Malaysia is increasing year by year with the increase of
new workers due to new position being offered. Government department usually
request for additional staff every year to increase their operation. They rarely figure
out how to increase the operation by optimizing the utilization of existed human
resource without having to add new staff. At the end, the number of staff is
increased and sometimes there are staffs who do not do their work because there
are not enough work for everyone.
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One of the ways to overcome this problem is by reducing the size of public service.
This is done through privatization of certain services. Privatization is done through
several methods:-
ii) Leasing
This method involves the transfer of the right to use asset in a given period for
example 30 years with the amount of lease agreed. Usually this method
involves high value or strategic asset like airport or harbour. However, at the
end of the given period, negotiation can be made for the leaser to buy the
particular asset at the end of the lease period. Example of this privatization is
Terminal Kontena Kelang (KCT).
In this method, the private sector use its skills to manage government equity
and the public sector will pay the management fee to the private sector. This
may involve transferring of staff but does not involve transferring of asset.
For example, Loji Penapisan Air at Empangan Semenyih.
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10.4 CONCLUSION
Even though the size of staff in public sector is reduced, this condition will not affect
the service provided by public sector. This is because, government has carried out
various efforts and programs to increase the quality of staff and public service.
Moreover, it is easier for government to manage and handle smaller size of staff.
The service being privatize will also be better and improved. As a whole, this
privatization concept will create benefit to all party whether the public, government as
well as private sector.
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Study Notes
current issue inpublic administration Chapter 10
REFERENCES :
9 Fox Douglas. M (1979). Managing the Publics Interest. Holt, Rinehart and
Winston, New York.
9 Gordon, G.J. (1978). Public Administration in America. St. Martins. New York.
9 Nigro, F. A. Nigro L.G (1977). Modern Public Administration. 4th ed. Harper
and Row 1977.
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