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Public Administration

(PAD 204)

Writer

SHIREEN HARON

Copyright Institut Perkembangan Pendidikan 2005

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permission from Institut Perkembangan Pendidikan, Universiti Teknologi
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Institut Perkembangan Pendidikan 2005

Instructional Designer
Suzana Hamzah

Content Editor
Fazimah Hayati Hassan Basri

Language Editor
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All rights reserved.


No part of this publication may be reproduced,
Stored in a retrieval system or transmitted in any form or by any means,
Electronic, mechanical, photocopying, recording or otherwise,
Without prior written permission from Pengarah,
Institut Perkembangan Pendidikan, Universiti Teknologi MARA, Shah Alam.

CONTENTS

PUBLIC ADMINISTRATION

CHAPTER ONE Public Administration


1.1 Introduction 1
1.2 Definition 2
1.3 Characteristics of Public Administration 6
1.4 Significance of Public Administration 7
1.5 Administration and Policy 10
1.6 Roles of Public Administration 12
1.7 Similarities and Differences between Public
Administration and Private Administration 14
1.8 Conclusion 17

THE HISTORY OF PUBLIC ADMINISTRATION IN MALAYSIA

CHAPTER TWO The History of Public Administration in Malaysia


2.1 Introduction 18
2.2 Public administration After Independence 20
2.3 Public Administration in The Current World 21
2.4 Conclusion 22

PUBLIC ORGANIZATION THEORY

CHAPTER THREE Public Organization Theory


3.1 Introduction 23
3.2 Functional Structure Theory 25
3.3 Psychological-Social Theory 26
3.4 Bureaucracy 27
3.5 Neutral Bureaucracy 27
3.6 Representative Bureaucracy 28
3.7 Characteristics of Bureaucracy by Max
Weber 28
3.8 Critics toward Bureaucracy Concept
generated Max Weber 29
3.9 Advantages of Bureaucracy 30
3.10 Conclusion 31

GOVERNMENT ADMINISTRATION MECHANISM

CHAPTER FOUR Government Administration Mechanism


4.1 Introduction 32
4.2 Legislative Body 32
4.3 Ruler Body 37
4.4 Judicial Body 39
4.5 Administration Mechanism at Federal Level 42
4.6 Administration Mechanism at State Level 47
4.7 Administration Mechanism at Local
54
Government Level
4.8 Conclusion 60

GOVERNMENT AGENCIES

CHAPTER FIVE Government Agencies


5.1 Introduction 61
5.2 Central Agency 61
5.3 Management Agency (Implementor) 66
5.4 Government/Central Agency Control 69
5.5 Conclusion 69

STAFF ADMINISTRATION

CHAPTER SIX Staff Administration


6.1 Introduction 70
6.2 Foundation of Staff Administration 70
6.3 Staff Administration Process 73
6.4 Jabatan Perkhidmatan Awam (JPA) 83
6.5 Conclusion 85
JUDICIAL ADMINISTRATION

CHAPTER SEVEN Judicial Administration


7.1 Introduction 86
7.2 Administration Tribunal 87
7.3 Administration Tribunal Development 87
7.4 The Importance of Tribunal 88
7.5 Examples of Tribunal in Malaysia 88
7.6 Conclusion 89

PUBLIC POLICY

CHAPTER EIGHT Public Policy


8.1 Introduction 90
8.2 Definition of Public Policy 91
8.3 Foundation in Public Policy Formation 91
8.4 Models of Public Policy 92
8.5 System Model 92
8.6 Group Model 94
8.7 Incremental Model 96
8.8 Elite Model 98
8.9 Conclusion 99

FINANCIAL ADMINISTRATION IN PUBLIC SECTOR

CHAPTER NINE Financial Administration in Public Sector


9.1 Introduction 100
9.2 The Differences between Financial
Administration in Public Sector and 101
Private Sector

9.3 Circulation of Financial Administration 102


9.4 Budget 103
9.5 The Characteristics of Budget 103
9.6 The Role of Budget 104
9.7 Federal Budget Composite 105
9.8 Four Levels of Budget 106
9.9 Conclusion 107

CURRENT ISSUE IN PUBLIC ADMINISTRATION

CHAPTER TEN Current Issue in Public Administration


10.1 Introduction 108
10.2 Motivation and Productivity 110
10.3 Reducing the Size of Public Sector 111
10.4 Conclusion 113
References 114
OVERVIEW OF THE MODULE

CHAPTER 1 CHAPTER 2

THE HISTORY OF PUBLIC


PUBLIC ADMINISTRATION ADMINISTRATION IN MALAYSIA

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. Define Public Administration


2. List the characteristics of Public Administration
3. Identify the significance of Public Administration
4. Identify the similarities and differences between Public Administration
and Private Administration
5. Identify the roles of Public Administration

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:-

i) Public administration is a group of people working together to organize


the public right.

ii) Public administration covers 3 branches:-

a) Executive
b) Legislative

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c) Judicial

iii) Public administration plays important roles in the transformation of


public policy and it is part of political process.

iv) Public administration is important and it is different from private


management.

v) Public administration plays an important role as mediator for private


groups and individual to deliver services to the society.

Dwight Waldos (1965) idea stated that there are two general definitions of public
administration:-

i) Public administration is an organization and it is the management of


people and materials to achieve government objective.

ii) Public administration acts as an art and science of management


which relates to state matters.

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

Planning is a process of generating programs for long-term social and


economic development. It is an effort to increase the standard of
living in society by using the available resources. Planning is a
process that determines the economic and social goal in order to
improve the human living and activities. This includes important
aspects such as social, economic, administration and other aspects.
For developing country, an effective planning is very important
because it is responsible to ensure full utilize of limited sources like
money, raw materials, and human power.

1.2.2 O-Organization

Organizations role is to prepare structure for synchronization,


communication and instruction. To perform its responsibility
effectively, public sector depends on organizational structure that

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provide a clear division of function and responsibility to ministry and


department. A weak and unclear organizational structure will cause
inefficiency and overlapping of duties.

1.2.3 S-Staffing

Staffing for public sector is normally conducted by a


government agency which elected by government. In
Malaysia, this responsibility is given to Public Administration
Commission. Staffing for certain position or post in public
sector usually conducted through two methods: - external
staffing and internal staffing (through promotion). Every public
staff must go through various training that exposes them to
mission and function of public sector. Besides that, training
will train them in their work and increase their productivity.

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

Coordination is a method to synchronize the work done by


various departments in the public organization sector.
Coordinating is important due to the huge size of public
organization. It covers various department and other
government agencies. To prevent from misspend of the cost
and time and overlapping of duties, it is important for public
organization to coordinate work effectively. This can be done
by keep-in-touch and give report from time to time on every
duty done by the department to the responsible agencies and
government office which associate to the related programs.

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1.2.6 R-Reporting

There are two main functions of generating report. First, as an


instrument to ensure an organized communication and information
flow in the administration in order to facilitate the effective process of
forming, implementing and synchronizing public policy. Secondly, as
an instrument of democracy because report can ensure that the public
administration perform their responsibility effectively and further fulfil
the needs of the people.

1.2.7 B-Budgeting

Budget is a document that records the estimate budget and income of


a country in a given period. The importance of budgeting is explained
in Aristotles essay (Kapur, 1981) which stated that any domestic
government should present the budget and revenue of their country to
the public to ensure accountability.

Other Definitions of Public Administration:-

L.D. White (1965) defines public administration as, all the activities that aim to amend
and implement public policy.

Harold P. Cortner (Golembiewski, 1976) explains that public administration involves


the coordination of all activities that have been planned which aim to 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:-

i) A branch of government Executive that can be relate to the important aspects in


Judicial and Legislative.

ii) Legislation and execution of public policy.

iii) Active participation in problems related to behavior and corporation of society.

iv) A field that can be differentiated from Private Administration.

v) Production of public products and services.

The increases of scope of activities which involve public administration has leads the
philosopher to define public administration in various definitions as stated above.

1.3 CHARACTERISTICS OF PUBLIC ADMINISTRATION

Public administration is an effort done which aims to achieve various objectives


agreed by the politicians. There are several general characteristics of public
administration:-

(i) It is a government Executive.

(ii) It involves the generation and implementation of public policy.

(iii) It involves various public policies regarding to human behaviour


between people in executive and the civilian.

(iv) An effort of a group of people in public environment.

(v) It covers 3 public branches:- Executive, Legislative and Judicial.

(vi) A political process and has important role in legislation of public policy.

(vii) It is different from the Private Administration.

(viii) Public Administration has close connection with people as it gives


services to all individual and civilian.

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1.4 SIGNIFICANCE OF PUBLIC ADMINISTRATION

The importance of public administration can be viewed through 3 aspects: - its


importance to society, its importance in a democracy country and its importance as a
subject of study.

i) Public Administration and Society

Public administration is very important in the life of every individual in


the society. It is a government branch that has a direct relation to the
society.

A farmer who lives village would not know about Malaysias


constitution but surely would know about the District Office or about
land tax. Therefore, administration is very close with the societys
matters and demand.

A child is placed under the custody of public administration since the


day he was born. His birth must be registered at any registration
centres that are recognized by the government. For the old folks,
there are welfare offices which always take care of their interests.

Most of us have business with the Land office or District Office. We


have Agricultural Department, Immigration Department,
Transportation Department and others. These departments have
relation with people life. This shows that public administration is an
important social process which responsible to fulfil people demands.

Important Facts

Public Administration is an important part in social, cultural and


economic of a country. A country can exists without Legislative or
Judicial system but there is no country that can exist without
administration.

ii) Public Administration and Democracy

Public Administration is important in a democracy country. The


elements of democracy such as development, peace and security only
can be achieved through an effective, reliable and impartial public
administration. Every public administrator must be unbiased in politics

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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)

iii) Public Administration as a Subject

Most of our needs have relations to public administration. Therefore,


the study of public administration should not be neglected by every
individual. Todays students are the administrator of tomorrow. Study
on public administration will prepare them to be a better administrator
and the cooperation between them and the current administer will
assist in the country development program.

1.4.1 The study on public administration is done through several


approaches:-

i) Mechanical Approach

It is the earliest approach use in the study of public


administration. Its main exponents are L. D. White, W. F.
Willoughby, Taylor and Warner. They emphasize on the
question that have connection to the goal which is to achieve
the efficiency of public administration. Taylor feels that the
problem of efficiency is similar in term of their condition,
between private industry and public administration. He

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believes that an individual can find the best way or principle in


doing anything. His method is done by dividing the task
according to its components, studies the staff behaviour and
action, tries different methods or procedure in the work area,
choose and used the most efficient method or procedure. He
is very aware with the mechanical efficiency and view
administration as a technical problem. The basis concept in
mechanical approach is that, administration is a mechanical
organization and we can find certain principle that can assist
the efficiency of the organizations function. This method is
also known as methods that orientate efficiency or the
scientific-management.

ii) Structural Approach

This method studies on public administration through its


structure. It emphasizes on the technique of PQSDCORB in
administration. It examines the organization administration,
personal management and financial administration. It also can
be considered as the institutional method. L. D. White gives
consideration to problems in organization administration,
personnel and administration accountability.

iii) Law Approach

This approach studies on public administration through law. It


gives attention to structural development of public
administration. It considers matters like duties, barrier, good
behaviour, officers ability, and the right of citizen from the law
context. The important characteristics in this approach are
language of constitution, code of law, printed judicial decisions
and appealing body like State Council. This method interprets
administration in the form of law and leave humanitarian
aspect in administration.

iv) Behavioural Approach

It is a new approach in the study of public administration. Mary


parker Follett (Bhagwan and Bushan, 1986) and Herbert

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Simon (Bhagwan and Bushan, 1986) are the exponents of this


approach. Herbert Simon rejects the traditional approach and
cling to the idea that public administration should aware of the
human behaviour in organization. According to him, decision
making process is the most important activity in administration.
Administration Science should study the facts related to
human behaviour without involving the question of value.
Organization is a group of people with behaviour, and the
behaviour depends on the influence, and this behaviour should
be studied with the help from the experts in sociology and
psychology. This approach emphasizes on the usage of
empirical case study method. After studying the actual
operation of an organization, general statement about the
organization and administration can be generated. According
to Simon, three set of issues is explained in public
administrations book. First, it should discuss the high ranking
organizational problem. Second, it must be grounded to
psychological relationship between human and organization
and the third is, it must always analyze administration from the
enormous view of politics and government.

1.5 ADMINISTRATION AND POLICY

One of the government duties is to generate policy. According to Appleby


(1952), the core of public administration is the legislation of policy. Policy
normally guides every action. It is a pre-condition for all affairs or matters.
Policy also determines the task required in administration. It provides a
framework for every action that aim to achieve certain objectives.

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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Administration refers to the process where the policy and decision is


implemented. This is done through law enforcement, generation and
enforcement of rule and implementation of policies. In government, the major
part of administration is carried out by the Executive branch even though the
Legislative and Judicial have the same responsibility.

Since Woodrow Wilson article The Study of Administration is published in


1887, the administration-politics dichotomy doctrine regard policy as outside the
field administration.

Nonetheless, we begin to realize that administrationpolitics dichotomy can not


function properly without policies and therefore, administration cant be
separated from the generation of policies. This is agreed by Luther Gullick.
(1937).

Important Facts

According to Wilson, Administration is a field of business. It is separated from


political chaos. Wilsons idea is accepted by W. F. Goodnow and in 1926, L. D.
White has generate a demarcation line between administration and politic.

In future, administration also will involve in policy-making. It will generate


opinion for legislation and this is part of the policy-making process. There are 3
ways in which the public officer participates in policy-making.

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.

The administration-politic dichotomy exists at the early stage of public


administration development. Many of the authors try to separate politic from
administration in their article. They hope that politic will not influence the
administration process in any aspect of people life. They afraid that if the politic
influences administration, it will prevent public administration from develop as a
professional service. At the same time, neutral bureaucracy also emerged and
introduces administration as a new and separate field, an unpolluted and
important to manage government matter effectively and efficiently.

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.

1.6 ROLES OF PUBLIC ADMINISTRATION

i) As the Main Motivator in the Country Development

Public administration acts as the main motivator and stimulator in the


country development. It helps to spread out social and economic
development to every level of society. In developing country,
government is considered as an agency that voice the public needs
and help to generate new style in public administration which can
solve social and economic problems.

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ii) As a Organizer and Executor of Plan and Program

Public administration is used as an instrument to arrange plans and


programs and later carry out them. Country resources can be fully
utilize through a good economical and social programs and the
success of the programs is depends on the effectiveness of public
administration.

iii) To Implement Government Policies

The governments policies that were implement are the government


activities that give effects to the country itself and its citizen. In former
time, it is difficult to identify who is responsible to form policy as
everyone try to get involve and try to influence the policy-making.
However, now the task is clear which is given to the administrator.

Administration officer try to influences policy by analyzing UDA (Urban


Development Authority). The mission of UDA is to organize the
community and encourage the Bumiputras to involve in business
sector. To achieve its mission, UDA administer has bought the
available business space and sell/rent it to the public.

However, if the price/rent of the available business space is high, the


business will be participated by the people who afford to buy or rent
that place. Therefore, the administer decision is important in
determining public policy because they have the authority and
experience in managing the whole community. Using the right power
to interact with community will foster a good implementation of policy.

Iv) Have Influence Towards Government Policy

One of the characteristic of public administration is, it involves political


process and has influence in public policy. Public administration has
close relation with the public as its duty to provide services to every
individual in the community. Administer acts as the middle person
between government and the public.

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v) Administer Is A Dynamic Interaction Agent

The influence of administrator and minister is a dynamic interaction. It


depends on their demand, talent and interest. To carry out
administration process efficiently, government needs to construct
major changes to the politics in social, government structure,
institution, behaviour and skills.

Important facts

In conclusion, public administration is a process where public resources and public


staff are organized and synchronized to make and implement public policy. Public
administration contains elements such as bureaucracy, implementation of activities
and responsibility. Public administration is a process of making decision, planning
duties, directing and managing staff. Monitoring and directing is the function of
government executive. It is a process of implementing systematic public law as the
usage of the public law under the public administration.

1.7 SIMILARITY AND DIFFERENT BETWEEN PUBLIC ADMINISTRATION


AND PRIVATE ADMINISTRATION

1.7.1 The Dissimilarities

a) Relation between public administration and politics can no be


separated. In public sector, government is considered as an
instrument to achieve government policy. Without a free
political system in society, public sector performance is blur.
Meanwhile, in private administration, the major control is
allocated to the production and price.

b) In term of mission, public sectors mission is wide and unique.


It is more to society-base which to satisfy public needs by
providing infrastructure. In private sector, the mission is to
earn more profit. It is work-base, like manufacturing and the
output would be profit.

c) It is difficult to measure the success of public sector in


achieving its mission as its mission is very wide. While in

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private sector, its achievement is measured according to the


ability to earn profit.

d) Public administration operates within the existed law and


depends on the public needs. In private administration, the
important people involved are the share holder.

e) Public administration depends on the public security and


responsibility or in other word Public Accountability. In private
administration, there is no public security and responsibility.

f) The scope of private administration is the skill to obtain job in


an organization. It is a process of utilization of human
resources and non-human resources for certain objective while
the scope of public administration is wider than the private
administrations scope.

g) In a public administration organization, it accepts resources


and materials from the citizens (economical product, tax,
government budget). Meanwhile, the private sector needs to
generate and use own resources or materials.

h) Private sector must be responsive to consumer demand. If the


services or products did not obtain consumer interest or have
low market, they have to generate new ideas for their product
that will get consumer attention. The price system in the
private sector market also must responsive towards the
consumer expenditure and the current market situation. While
in public sector, the responsiveness is more complex. Even
though the product and services available do not obtain
consumer interest, the government still has to take into
account the public needs and right.

1.7.2 The Similarities

In term of similarity, there are several values exist:-

i) Effectiveness

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ii) Efficiency

iii) Responsive

In public administration, there are two object of policy:-

i) To increase knowledge on public administration

ii) To increase work performance in public administration

Before reaching the second objective, it is important to achieve the


first object first, which is to increase knowledge and understanding
about public administration in management, control, direction and
others. This is a step to carry out public administration activities. In
Malaysia, INTAN is established to study in depth the public
administration system and to identify the weaknesses existed.

When public administration staff is effective in administration, it is


considered as a success in implementation of government activities
and has reached it mission. So, the effectiveness is the measure of
how extends public administration has achieves its objective.

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.

These three values also exist in private administration. This is


because all administration require these values; effectiveness,
efficiency and responsive. To determine whether the public sector or
private sectors are doing their best, these two sectors can be
compared in term of their performance in a certain business activity. If
private administration expenditure exceeds the budget being planned,
it shows a weakness in the administration. The profit or lost of private
administration refers to the degree of efficiency of the manager in that
particular administration.

In term of effectiveness of private administration to achieve its


objectives, it depends on the degree of efficiency. If production of a

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product and service is not desired by the consumer, it shows a failure


and lost of profit. Important factor that influence private sector activity
is the price system used in production and the amount of demand and
offer between private sector and the consumers.

Whether the above factors gave positive or negative response


depends on the demand of the consumers. When the private
administration gets the positive response, it means that the activities
and objectives of the sector have achieved its mission.

The values of effectiveness, efficiency and responsive exist in public


and private administration. The success or failure to achieve their
objective depends on how their staffs carry out the planned activities.
From these three values, the value of responsive is more complex in
the public administration. For example, the government can impose
door-tax, road-tax and others but the public can never avoid from
paying those taxes.

1.8 CONCLUSION

Public administration has more complex role compared to private administration.


This can be seen through the varieties of races and interest. Therefore, all interest
and demand must be taken into account by the public administration as it acts as the
representative of the government. Meanwhile, the private administration is a body
that exists with the same phase as public administration but has different
characteristic and objectives. This is a process between two peoples or more, in a
group or more, working together based on a certain rational to achieve a particular
goal or objective.

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Study Notes
the history ofpublic administration in Chapter 2

malaysia

THE HISTORY OF PUBLIC

2 ADMINISTRATION IN
MALAYSIA

Learning Objectives:
At the end of this chapter you should be able to:

1. Understand and list the history of Public Administration in Malaysia


during the pre and post Independence.
2. Explain the current trend of Public Administration

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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malaysia

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.

2.2 PUBLIC ADMINISTRATION AFTER 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.

The pattern and function of public administration changed after independence. It is


not only used to enforce law and to collect taxes as in British colonization. Now its
function expands and more complicated as it used to reach country development.
With the independence of Tanah Melayu, the citizens begin to have new aspiration.
Before the independence, they were exploited under colonist power, their right and
welfare were neglected and there were no effort done by the British to improve their
standard of living. When they gain independence, the reign of rule is hold by the
local people. The local people have their individual freedom and every member of
the community have the equal right in their society. The citizens also have the
courage to claim for the government effort to improve their standard of living
especially in education and economic field. Therefore, the Malay people hoped that
the new government will develop initiative and plan to fulfil their request. Thus, the
new task for Public Administration after independence was to develop the nation as
well as the society and improve the dreadful conditions created by the colonist.

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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.

2.3 PUBLIC ADMINISTRATION IN THE CURRENT WORLD

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.

Public administration also has starting to involve in socio-economic development. It


is the main motivator to social and economic development of the country. Public
administration should not only focus on matters likes managing service, planning
budget, planning staff and purchasing goods, but also responsible to develop social
integrity in society. Through the public administrator, the public administration should
participate in the government plans to achieve this integrity. Even though the public
administration had managed to carry out their task to develop the society after
independence, but they still fail to create an equivalent society in socio-economic of
the country. The role of public administration is regard as fail if only able to establish
programs for economic and social development which can give advantage to a single
race while the other races still live in poverty and undeveloped. With the equal socio-
economic, the society in this country can live in peace and harmony and all races
have equal opportunity to develop in their society.

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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:

1. Describe the theories of Public Organization


2. Explain the concept of bureaucracy
3. Describe the types of bureaucracy
4. Critic toward Bureaucracy Concept generated Max Weber

3.1 INTRODUCTION

Organization is a task of combining several divisions which depend on each other so


that every division would have important role, action and connection with the larger
division. According to J. M. Gaus (Bhagwan and Bushan, 1986), Organization is an
arrangement of staff in order to achieve the agreed objectives through division of
functions and responsibilities. This is related to the effort and ability of individual and
group of people who involved to perform the common task in a form that enable the
objectives to be achieve. This must be done with the minimum management and
maximum satisfaction among both group of people, the target individual who task is
done for and the individual who perform the task. According to Luther Gullick
(1937), Organization is a formal structure in any sub-divisions, where the tasks are
arranged, clarified and synchronized to achieve the objectives stated.

Referring to Gladden (Bhagwan and Bushan, 1986), Organization gives attention to


relation between human in an industry which is established in order to fulfil the
function of the industry.

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Referring to Herbert Simon (Bhagwan and Bushan, 1986), Organization refer to a


planned of system of cooperation effort where every participator have their own role
to play and task and responsibility to perform.

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.

The term organization generally refers to:-

a) The act of creating an administration structure


b) Creation and Construction
c) The Structure itself

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.

According to Milward (Bhagwan and Bushan, 1986), organization cannot function by


itself; the personnel who establish the organization who would perform the task..
Gaus (Bhagwan and Bushan, 1986) also has identified the importance of human
element (elemen kemanusiaan) in organization when he defines organization as to
braid the effort and ability of individual and cluster of people who perform the same
task through a method that can lead to objective achievement with minimum conflict
and maximum satisfaction among the people who the task is done for and the people
who involve to perform the task. We cannot deny the fact that organization is only a
frame of structure, in opposite, it is a structure and network of social relation; and
therefore, the theory of organization should be based on humanities.

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Important Facts

It is important to observe that organization is a social entity and therefore it depends on


influence, pressure, prejudice and bias as in other social organization. Thus, it is
important that the organization is viewed in diverse dimensions context and not from a
narrow mechanical idea.

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).

3.2 FUNCTIONAL STRUCTURE THEORY

This theory is also known as traditional organization or mechanistic theory.


According to this theory, organization is a formal structure, a plan like building plan
which can be prepared first by architect according to several principles. In developed
country such as United States, they have social engineers who make organization
chart.

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 brief, traditional theory contains basic ideas such as:-


a) First, it views human relation through administration.
b) Second, it considers human behavior as rational and ignores irrational elements
in human natural attitude.
c) Third, it considers economic incentive as a single motivation factor in human life
and will not consider on psychological factor.
d) Fourth, it assumes that individual is invulnerable from social group or factors.
e) Fifth, it uses mechanistic opinion on organization and ignores organization
dynamic behavioral aspects.
f) Sixth, it only considers formal relation in organization and ignores informal
relation.

3.3 PSYCHOLOGICAL-SOCIAL THEORY

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.

3.5 NEUTRAL BUREAUCRACY

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. .

3.6 REPRESENTATIVE BUREAUCRACY

It is a system where public officer acts as a representative of citizens and not as a


neutral public officer. Representative bureaucracy is based on believe that the ratio
of every minority groups in every occupation in government agency need to be equal
as the percentage of the group. The social justice concept is based on the principle
that in real democracy country, public service has to depict the composition of race,
ethnic and gender in the country so that one responsive public policy can be
regulated. This is based also on principle that bureaucracy exist not only to provide
public services but also to offer vacancy and economic development to the citizens.
Public position is viewed as a right that should be divided among every group of
people in community.

Representative bureaucracy is contrary to the merit system which emphasize on


employment based on objectives qualification. Exponent of representative
bureaucracy believe that public officers under merit system are neutral who do non-
politic activities.

3.7 CHARACTERISTICS OF BUREAUCRACY BY MAX WEBER

a) There are certain activities that are aim for organization structure
where these activities are divided into formal tasks

b) Specialization in technical field is part of power division or systematic


duty.

c) Every administration officer must obey systematic and strict disciplines


in managing administration in offices.

d) Every operation is under the supervision and control of organization


law to ensure uniformity in duties. It also aim to ensure all

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bureaucracy officer will abide the rule. Therefore, stress is given on


the concept of consistency or uniformity.

e) Organization of office or position must follow bureaucracy principle


where the lower post is placed under the supervision of jawatan
kanan.

f) Bureaucracy officer will carry out their duties formally and


unemotionally. The power of officers depends on the Bureaucracy
Law to ensure justice in bureaucracy.

g) Way of things are done is based on technical and academic


qualification. Social respect is given to officer who holds a position in
bureaucracy. For instance, officer graduated from universities is
respected more than officer with no qualification from universities. This
is an abstract characteristic.

h) Bureaucracy officer position is a career that has a promotion system


(sistem kenaikan pangkat) according to seniority or merit.

i) Bureaucracy rational in term of rules, position, decision-making and


etc. For instance, work area is separated from residence in order to
separate personal duty and objective of bureaucracy.

3.8 CRITICS TOWARD BUREAUCRACY CONCEPT GENERATED MAX


WEBER

There are various critics from public administration philosophers toward


bureaucracy theory generated by Max Weber. The critics are:-

a) Lost of ability to generate new ideas. Because of bureaucracy follow


on hierarchy, there are problems arise among lower officer. In
hierarchy, order is given by upper officer to the lower officer. The
lower officer accepts the instruction without an opportunity to give their
own opinion or ideas.

b) There is no sense of belonging. Because of the lower officer can only


receive order, they are not given the opportunity to give their own
ideas and there is no encouragement in duties. Therefore, they are
not dedicated in their duties.

c) Bureaucracy does not reflect to changes. Reflection here is in term of


attitude and speed of changes or adjustment with the changes. For

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example, when people deal with government agencies or department,


bureaucracy cannot help to accelerate the process.

d) Bureaucracy lays role as policy maker. It has a close connection with


executive and legislative. This is not a healthy style in administration.

e) There is exploitation of position based on respect and position among


higher officer. This condition is similar with the assumption generated
by Bobbes that stated that human is addicted to power and this can
create corruption and it is difficult to control it.

f) Promotion system (sistem kenaikan pangkat) is not encouraged in


bureaucracy. This system is based on seniority or qualification in
department exams. Therefore, there is no earnestness in work
because the promotion system is not based on efficiency.

g) Bureaucracy duties are not challenging. It is a routine and only can


increase officers skill as the same task is done every day and
sometimes is create boredom among the officers. This will create
unawareness among the officers and further affect the quality of work.

h) An extreme specialization will cause delay in work because there is


only one staff in one particular unit.

3.9 ADVANTAGES OF BUREAUCRACY

a) In bureaucracy structure, there is division of task as well as a clear


power limitation which is superior power to subordinate.

b) Bureaucracy can help to reach stability, unity and the rules,


arrangement and professional aspect can be predicted.

c) Bureaucracy practice rational concept where every decision in


bureaucracy is based on objectives and criteria set by the public.
Decision being made is not bias as it if free from personal matters.

d) Bureaucracy contributes in democracy through technical ability, not


because heritage of family relation in order to obtain certain position.

e) It is easier for government to choose among its officers who are really
capable to perform in a certain task.

f) Bureaucracy enables officers to know in depth their task as the task is


divided among them.

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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:

1. Describe the Government Administration mechanism,


2. Explain the administration mechanism of the central government,
state government and local government.

4.1 INTRODUCTION

Government administration mechanism can be studied through its three


components:-

i) Legislative Body
ii) Executive Body
iii) Judicial Body

4.2 LEGISLATIVE 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:-

i) Yang DiPertuan Agong (YDPA)

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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ii) Dewan Negara

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

According to Perkara 68 Federal Constitution, Dewan Negara has power only


to adjourn any law approved by Dewan Rakyat and the TDPA but does not has
the power to reject the law.

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.

Perkara 45 Federal Constitution has determine that the number of member


for Dewan Negara is 69 members where 26 members are member of Dewan
Undangan Negeri. These people which were elected by the YDPA consist of
two representatives from each state, two member of Wilayah Persekutuan
Kuala Lumpur, and one member from Wilayah Persekutuan Labuan. YDPA
also elects 40 members among the top worker who has high achievement in
their position whether in professional field, trade, manufacture, agriculture,
culture, public service or even native people. The period of position as Ahli
Dewan Negara is 3 years. A candidate who replaces other member who died
or took a leave will hold the position for the remaining period.

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.

iii) Dewan Rakyat

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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is dissolved. One special criteria of Dewan Negara is the freedom of voice in


Parliament. Any matter raise in Parliament will not be sued or accused.

As in Dewan Negara, a Yang DiPertua Dewan and Deputy Yang DiPertua


Dewan is elected to manage the council meeting. Yang DiPertua Dewan is
chosen among the member of the council or external individual who qualify to
hold the position. However, if he is not the member of the council, he will be
considered as Dewan Tambahans member and cannot be elected as Prime
Minister, Deputy Prime Minister or Parliament Secretary. Deputy Yang
DiPertua must be chosen among the member of the council. If both Yang
DiPertua Dewan and his deputy cannot attend the meeting, the task will be
carried out by the other member of the council chosen according to Peraturan
Dewan. A Secretary is elected by the YDPA.

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.

4.2.1 Function of Parliament

Malaysias Parliament carries out several functions:-

i) Regulate Law

This function relate to the power of legislation where the laws


are approved by Dewan Rakyat and Dewan Negara and
approved by the YDPA before the laws are confirm as the
National Law.

Important Facts

According to Chapter 5 of Legislation, Constitution and


Federation, law making process follows certain method and rule.
In the beginning, the particular Minister or Ministry must draft
the policies which related to the law that will be present in
Parliament.

To draft the particular policies of law, Minister or Ministry must


discuss with the Law Division, Exchequer or other Ministry that

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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.

The next stage is the presentation of the law in both Dewan


where the law will be read on the first, second and third day
before it is approved. After obtaining the approval from both
Dewan, the laws are presented to the YDPA to get his
approval and confirm them as law.

Important Facts

Article 109, Federal Constitution also gave power to


Parliament to amend Constitution if needed by obtaining two
third majority of approval from the member of Parliament.
According to Constitution, only Parliament posessed
sovereignty and and the highest power to make laws.
Therefore, the approved laws will have absolute sovereignty
and must be obeyed.

ii) Financial Field

Parliament posses power in financial field in term of


determining the budget for public service expenditure, tax rate
and power to obtain loan. According to Perkara 65, Federal
Constitution, the financial power is posses by Dewan Rakyat,
thus finance laws or amendment of the law can begin at
Dewan Rakyat. Dewan Negara does not have other choice
than to agree with the decision made by the Dewan Rakyat.

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iii) Debating Arena

The debate session is parliament functions as an arena where


formal discussion is held to discuss and debate on citizens
critique and opinion. However, in order to avoid conflict among
races, there are certain issue which is sensitive will not allowed
to be discussed or even arise.

iv) Control Over Executive

Parliament has power to Control Executive Body in matters like


resignation of Prime Minister when large portion of Dewan
Rakyats members do have trust on their Prime Minister.

However, in Malaysias history, after independence, Parliament


never decide to make undi tidak percaya towards Prime
Minister. This is because, Prime Minister is elected by ruler
party in a selection of Partys President known as UMNO.
Based on tradition, the President of the Party will automatically
become a Prime Minister.

v) Amendment Power

President possesses power to amend constitution if the


constitution doesnt care on people right. Executive body
normally will suggest amendment whenever the constitution is
considered unsuitable. Parliament will evaluate whether to
except or to reject. Article 159, Federal Constitution allocates
power to Parliament to amend constitution from time to time.
However, there are limit in amending matters like 10 (4), 38, 72
(4), and 159 (5) which cannot be amend without agreement
from Majlis Raja-Raja.

vi) Power Holder

Parliament also acts as house of keeping power. Federal


Constitution gives power to Parliament to make suitable law,
preserve law and make their own rule. However, this doesnt
mean that Parliament posses higher power than constitution.
Even though, Parliament has power to make law, but the

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power is limited to the Federal Constitution and judicial body.


Judicial body have power to cancel the law made by
Parliament if the power is not parallel to the constitution.

4.3 RULER BODY

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.

I. Yang Di Pertuan Agong

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:-

i) election of Prime Minister

ii) not agree in dispersion of Parliament

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.

YDPA is chief of Islam for Wilayah Persekutuan, Melaka, Pulau Pinang,


Sabah and Sarawak. Federal Constitution give power to YDPA to elect
judges for Makamah Agong, Mahkamah Tinggi, Jemaah Menteri, Timbalan
Menteri and other position like Peguam Negara, Juruaudit Negara, Chairman
of Commission and Members of Commission. Constitution also allocates
special allocation for YDPA to maintain his special criteria of Malay and
Bumiputra in Sabah and Sarawak through Perkara 163.

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II. Jemaah Menteri/Cabinet

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 is lead by Prime Minister and responsible to Parliament. It is


cabinet responsibility to protect government actions in Parliament. Each
Minister who is the Cabinet should work together and cooperate while
carrying their duty.

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.

III. Ministry/Department/Government Body

In order to perform the governance of country, several Ministry, Government


and Government Body is formed. Each Ministry is lead by Prime Minister,
Deputy Prime Minister or Minister of the Ministry, other than Unportfolio
Minister who does not lead any Ministry but be given specific task. Ministers
usually work in Jabatan Perdana Menteri. Ketua Penasihat for Minster in a
Minstry is known as Ketua Setiausaha, where as government departments
are lead by Ketua Jabatan known as Ketua Pengarah.

In order to facilitate administration in Federal system in Malaysia, Ministry and


Department are divided whither at federal level or state level. Generally,
there are two types of Ministry and Department at Federal level:-

i) Ministry and Department that perform task at Federal level like


Defence Ministry, National Lawyer and Law Ministry, Public Industrial
Industry, Fianance Ministry and Foreign Ministry as well as Jabatan
Perdana Menteri, Jabatan Pertubuhan Negara, Lembaga Penapis

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Filem Malaysia, Jabatan Penyiasatan Kajibumi Malaysia and


Exchequer Department.

ii) Ministry and Federal Departments at State Level such as Education


Ministry, Land and District Government Ministry, Health Ministry as
well as Education Department, National Income Department,
Immigration Department, Domestic Income Departments, Agricultural
Department, Excise Diraja.

Other than Ministry and Departments, there are also badan-badan berkanun
which help in national administration.

Important Facts

Badan-badan berkanun is an semi-government agency established through law


which function to facilitate government to foster and smoother administration and
implementation of national development plan.

Badan-badan berkanun has a huge area of task covering economic, social,


education, culture and other fields. Several examples of Badan-badan
berkanun are Perbadanan Pembangunan Bandar (UDA), Lembaga Kemajuan
Tanah Persekutuan (FELDA), and they have their own Chairman and Board
of Director.

4.4 JUDICIAL BODY

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 Atasan in Malaysia

i) Mahkamah Agung

This court consists of Ketua Hakim Negara, Hakim Besar Malaya,


Hakim Besar Borneo, and seven Hakim Mahkamah Agung.

Normally this court meets in panel containing three judges chosen by


Ketua Hakim Negara. However, in certain condition when the issue
being discussed is related to public interest, Mahkamah Agung will
meets in panel consisting of five judges.

The area of responsibility:-

1) The power to hear and determine the appeal of crime and civil
cases from Mahkamah Tinggi.

2) Power to determine the appeal of law matters that have the


significance in crime cases from Mahkamah Bawahan to
Mahkamah Tinngi.

3) Power of justice to determine the hujah undang-undang


referred by Mahkamah Tinggi in order to carry out the power of
original crime justice.

4) To carry out the power of original crime justice under Perkara


128(2) Federal Constitution.

5) Power of advice justice under Perkara 130 Federal


Constitution.

6) Carry out the power of justice that can be referred under


Perkara 128(2) Federal Constitution.

ii) Mahkamah Tinggi

Mahkamah Tinggi is lead by two Hakim Besar; one in Semenanjung


and one in Sabah and Sarawak. The court also is member by 35
judges; 8 in Sabah and Sarawak while 27 in Semananjung. The court
posses the power of original crime, appealing and monitoring. In

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performing original crime justice, this court posses unlimited power.


Among its power is to carry out justice upon crime cases that are
outside the power of Mahkamah Rendah, as well as civil cases that
cannot be dihadapkan to Mahkamah Rendah. Mahkamah Tinggi also
hear applealing of cases from the sentence of crime and civil by
Mahkamah Majistret and Mahkamah Seksyen. Mahkamah Tinggi also
is given the power of observation and examining upon all decision
made by Mahkamah Rendah.

II. Mahkamah Rendah in Semenanjung Malaysia

There are four types of Mahkamah Rendah in Semenanjung Malysia: -

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.

ii) Mahkamah Majistret

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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crime cases which the punishment is not exceed than 12 months of


prison.

iii) Mahkamah Juvana

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.

iv) Mahkamah Penghulu

This is the lowest court in Mahkamah Rendah category. It is chaired


by a Penghulu or Ketua Kampung elected by State Government for a
mukim. It can manage civil cases that the value is not exceed than
RM 50 and the fine is not more than RM 25 for crime cases.

III. Mahkamah Rendah in Sabah and Sarawak

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.

4.5 ADMINISTRATION MECHANISM AT FEDERAL LEVEL

Federal Government System applied in Malaysia contains three form of government


structures; Federal chart, State chart and Local chart. Adminstration Machinism at
Federal Level consists of DYMM Yang Dipertuan Agung, Majlis Raja-Raja, Cabinet,
various forms of Majlis, Commission and National Audit Department.

I. DYMM Yang Dipertuan Agung

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:-

1) Prime Minister election

2) Unagreement on the demand for dipersion of Parliament, and

3) Demand for Majlis Raja-Rajas meeting to discuss on the special


criteria, position and dignity of Raja-Raja.

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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II. Timbalan Yang Dipertuan Agung

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.

III. Majlis Raja-Raja

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:-

1) Elect and fire YDPA and Deputy YDPA

2) Give agreement or inagreement to matters related to Islamic custom

3) Discuss on issues related to national policies

4) Other matters that is significance or needed to be discussed

Meeting that discuss on aspects related to government policies is attended by


Prime Minister, Menteri Besar and Ketua-Ketua Menteri.

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.

Several of Majlis-Majlis Perundangan in Federal Constitution:-

1) Majlis Tanah Negara

Function to legislate national policies to develop and control the use of


land for entire Federal covering the field of mining, agriculture and
forestry.

2) Majlis Negara for Local Government

This Majlis involves in legislating policy that aim to motivate, develop


and control the local government constitutional system.

3) Majlis Kewangan Negara

Responsible in financial matters whether at government level, federal


level or state level.

4) Majlis Angkatan Tentera

Responsible in all aspects of ruling, ethics and administration for


whole military (angkatan tentera).

All Majlis Perundangan is chaired by Ministers except Majlis Kewangan


Negara which is chaired by Prime Minister or any Minister that has the
appropriate power to represent him.

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:-

1) Majlis Tindakan Negara

The highest Majlis Pentadbiran being formed to synchronize the


implementation of all government development program and project.

2) Majlis Ekonomi Negara

Responsible to all aspect of government economy.

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3) Majlis Keselamatan Negara

Responsible to synchronize activities concerning country security.

All Majlis is chaired by Prime Minister and attended by all Cabinet members.

VI. Commission

Federal Constitution has decided to establish several Commission whether


permanent or temporary. The permanent Commission is Election
Commission, Service Commission like Judicial and Law, Police Squad, Public
Service, and Education Service.

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.

The function of establishing these Commissions is to ensure certain task can


be performed freely, fairly and unbiasly. For instance, Election Commission
or justice principle being practice in employing public service staff.

VII. National Auditor

Public accountability is a mechanism established to ensure financial


management, body and organizations management so that the
administration process can be done efficiently and effectively. Therefore,
National Auditor plays an important role to ensure the accountability among
the officer and public staff in financial and property management.

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:-

1) Accountability in Public Finance Management

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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2) Accountability in Public Management

Emphasize on efficiency in performing task and meticulous in


spending public fund.

3) Accountability in Planning

Related to the responsibility in planning and implementation of


development program or project to ensure it fit and achieve objective
without effecting public sources.

4.6 ADMINISTRATION MECHANISM AT STATE LEVEL

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..

I. King/Yang DiPertua Negeri

In a state, there is a King called Sultan except in Perlis, he is known as Raja


while in Negeri Sembilan, he is known as Yang Dipertuan Besar. Melaka,
Pulau Pinang, Sabah and Sarawak has a Yang Dipertua elected by YDPA.

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:-

a) Appointing Menteri Besar Exco whether Menteri Besar or Ketua


Menteri. However, there are several matters where the Raja

b) Not agree on the demand for amendment of Dewan Negeri

c) Demand for Majlis Raja-Rajas meeting to discuss on the speciality


and dignity of Raja or Islamic matters

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d) Perform the role as Ketua Agama Islam or anything related to Malay


custom

e) Appointing Queens heir, Pemangku Raja or Jemaah Pemangku Raja

f) Selecting candidates to receive medal, title, and dignity according to


Malay custom and determine the task related

g) Regulate law concerning royal hall and palace

II. Majlis Mesyuarat Kerajaan Negeri/Exco Negeri

In Peninsular Malaysia, executive power is perform by Majlis Mesyuarat


Kerajaan Negeri or Exco Negeri on behalf of Rajan or Yang DiPertua. In
Sarawak, this Majlis is known as Majlis Tertinggi while in Sabah, the Majlis is
known as Cabinet which similar to Cabinet at Federal Level.

This Majlis is lead by Menteri Besar or Ketua Menteri appointed by Raja or


Yang DiPertua Negeri among the member of Dewan Negeri who receive
majority vote from the other member. This Majlis is participated by different
number of members of Dewan Undangan Negeri (ADUN) based on the
Constitution of the state, as well as three gvenrment officers (ex-offices)
consist of Setiausaha Kerajaan Negeri, Pegawai Keawangan Negeri, and
Penasihat Undang-Undang Negeri.

III. Sistem Pentadbiran Berjawatankuasa

In Pahang, Negeri Sembilan, Melaka, and Johor there is a administration


system known as committee administration system. It is chaired by the
member of Majlis Mesyuarat Kerajaan Negeri who are not government officer,
and he is helped by secretary who is government officer known as Penolong
Setiausaha at Pejabat Setiausaha Kerajaan Negeri. This committee
responsible to help Majlis Mesyuarat Kerajaan Negeri in makig decision and
supervising its performance. Among the matters placed under its
synchronization is that which related to agricultural, Islamic matters,
accommodation, nature, local government, industrial development and others.

IV. Dewan Undangan Negeri

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.

V. Cabinet in Sabah and Sarawak

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.

4.6.1 State Administration Level

Administration for every state in Peninsular Malaysia is divided into


several level:-

i) District

At this level, District and Land Office which is lead by District


Officer is the main office responsible in matters concerning on
land administration and Majlis Daerah administration. It
manages development activities as well as synchronizing all
activities for state and federal government agencies branches
at district level.

ii) Mukim

A district is divided into several mukim where a government


office known as Penghulu is placed. The main role plays by
Penghulu is to help District and Land Office and other
government agencies to perform development program and
project as well as synchronize the activities of villages under its
custody.

Normally, the Penghulu position is inherited or appointed


among the villager who is dominant but nowadays, the State
Public Service Commission will elect the person who has the

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capabilities and academic achievement. They are part of


public officer.

iii) Village

This the lowest level of administration. A village is lead by


Ketua Kampung appointed by State Government. Any Ketua
Kampung carry out its task through Jawatankuasa Kemajuan
dan Keselamatan Kampung (JKKK) chaired by himself. Ketua
Kampung become the representative for State Government
and his villagers. He plays a role to help the implementation of
government development project in his village. However, he is
not part of the public officer.

Administration in Sabah is divided into several residences


administered by a Resident Officer. Each of these residences
is divided into district and village. Each district is lead by
District Officer and he is helped by District Assistant Officer
and Chief of District. Every native in a district is lead by Ketua
Anak Negeri who responsible to Chief if District. They are
considered as public officer. Whereas, every village is lead by
Chief of Village or Ketua Kampung who is not a public officer.

Administration at Sarawak is divided into four levels:-

a) Division which is lead by a Resident. He is helped by


several Temenggung who is the chief of community
elected by government based on native.

b) District which is lead by District Officer/Pegawai


Daerah. The chief of community is known as Pemanca
who responsible to District Officer/Pegawai Daerah and
Temenggung.

c) Small district which is lead by Perkhidmatan Tadbir


Sarawak officers.

d) Village which is lead by Penghulu who is elected by


government.

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4.6.2 Department

The departments in state level can be divided into two types:-

1) State Department

This department is divided into two types:-

i) State Department which is responsible to state


government

ii) State Department which is responsible to state


government as well as federal government

State department in peninsular Malaysia is responsible to state


government is a department that perform the state
administration. They are:-

i) State Government Secretary Office/Pejabat Setiausaha


Kerajaan Negeri

- This office is lead by State Government


Secretary/Setiausaha Kerajaan Negeri which acts as
State Main Administration Officer/Pegawai Tadbir
Utama Negeri, Chief of State Public Service/Ketua
Perkhidmatan Awam Negeri, and Penasihat Utama to
Menteri Besar and Majlis Mesyuarat Kerajaan Negeri.

ii) State Finance Office/Pejabat Kewangan Negeri

- This office is similar as exchequer

iii) State Economic Plan Unit/Unit Perancangan Ekonomi


Negeri

- This office is similar to Economic Planning


Department at Federal level

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iv) State Law Advisor Office/Pejabat Penasihat Undang-


Undang Negeri

- Responsible to assist and give advice to Menteri


Besar or Ketua Menteri, Majlis Mesyuarat Kerajaan
Negeri and State Administration on matters related to
law and order.

State Department which is responsible to both state and federal


government is an office that responsible to matters that were listed in
senarai bersama Federal Constitution. Several of these offices are
Jabatan Pengairan and Saliran and Jabatan Kebajikan Masyarakat at
state level.

The main state department in Sabah and Sarawak that was placed
under the responsibility of State Government are:-

- Jabatan Ketua Menteri in Sabah and Pejabat Setiausaha Kerajaan


Negeri in Sarawak. Other government departments is placed under
the responsibility of Federal Government, for instance Jabatan
Kastam and Royal Excise and Jabatan Cetak Kerajaan.

2) Federal Department Branch

Federal Department branches such as Jabatan Pendidikan Negeri


and Jabatan Immigration Negeri is responsible to Federal
Government. However, it is depends on the synchoronization effort
done by state administration.

These branches leaders must attend Mesyuarat Jawatankuasa Majlis


Mesyuarat Kerajaan Negeri and Majlis Tindakan Negeri as well as be
the member of State Development Committee and other state
committees.

4.6.3 Commission

State government is allowed to form permanent or special


commissions. The member of the commission is appointed by the
King or Yang Di Pertua Negeri with the advice of Menteri Besar or
Ketua Menteri. All state except Negeri Sembilan, Perlis, Melaka, and
Pulau Pinang has State Public Service Commission. This commission

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is responsible in appointing the positions in State Public


Administration The state that does not has this commission, the task
is done by Federal Public Administration Commission.

4.6.4 Federal Secretary Office/Pejabat Setiausaha Persekutuan and


Federal Finance Office/Pejabat Kewangan Persekutuan

For Sabah and Sarawak, government has established these two


offices. Federal Secretary Office is lead by Federal Secretary and
among of his tasks are:-

a) protect the priority of Federal Government includes property


matters

b) preserve the close relationship between Federal government


and State Governments

c) Synchronize and control the administration activities perform


by State Public Departments and State Public Bodies

d) Protect the peace and harmony of the state

e) Manage matters concerning the staff in State Service

Federal Finance Office is lead by Federal Finance Officer and he is


responsible to Finance Ministry. This office carries out duties like
checking the estimate budget of Federal agencies in Sabah and
Sarawak.

The establishment of Federal Finance Office is aim to foster the


process of making decision without having to refer to the authority in
Kuala Lumpur.

4.6.5 Public Body/Perbadanan Awam

State governments have public bodies that consist of badan-badan


berkanun and badan-badan tidak berkanun. Example of badan
berkanun exist in every state is Perbadanan Kemajuan Ekonomi
Negeri while example of badan tidak berkanun is Syarikat Permodalan
and Perusahaan Pahang Sendirian Berhad.

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4.7 ADMINISTRATION MECHANISM AT LOCAL GOVERNMENT LEVEL

Local government is the third level in government structure of Malaysia. In term of


administration, the concept of local administration is include under the term field
administration which means the administration carry out in a territory or area that are
far from urban area or city.

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.

The development of local government system in Malaysia happened by stages which


started in Negeri-Negeri Selat and then spread to Negeri-Negeri Melayu Bersekutu.
Local government at this stage is formed by British government to perform the
function of house-keeping likes keep public health, collect the income from repairing
road. It also responsible to look over the public welfare. At this earlier stage also,
local government cover only the administration of urban area or city area. However,
at the ending stage, its administration expands to rural area.

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

iii) to enable local entrepreneurs to their role actively in implementation of


development projects

iv) to transform local entrepreneurs as the authority responsible in city


development field

v) to ensure that city development is carried out systematically and based on


the government development policies

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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4.7.1 Foundation of Local Government Legislation

Local Government is tied under the power of State Government. This


gives State Government the executive power over Local Government.
Among the power of State Government on Local Government is:-

i) to accept or reject all local government acts legislated by


Parliament partly or entirely,

ii) to control over territory change, new territory and city status
clarification

iii) to appoint the member of Majlis, Mayor, or Yang DiPertua local


authority

iv) to approve loan

v) to approve the position of local authority

vi) has the power to terminate the position of Ketua Jabatan in a


local authority and his deputy

vii) to approve local authority expenditure

viii) to clarify small laws

ix) to extend any approval on re-appraisal of local authority

Based on Section 165 (Division xvi) Local Government Act, 1976,


State Government has power to transfer all or part of local authority
power to the Menteri Besar or Ketua Menteri. There is also law in
Article 95A for establishment of a legislative body which is Majlis
Kebangsaan Kerajaan Tempatan. This majlis function as a body that
legislate countrys policy for Local Government. In determining those
laws, Local Government has to discuss with State Government and
Central Government.

4.7.2 Akta Kerajaan Tempatan

To assists the progress of Local Government and synchoronize the


polies of the local authority, few acts are formed:-

i) Akta Kerajaan Tempatan (Peruntukan-Peruntukan Sementara)


1973

ii) Akta Kerajaan Tempatan 1976

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iii) Akta Jalan, Perparitan dan Bangunan1974

iv) Akta Bandar dan Perancangan Kampung 1974

v) Akta Perancangan Bandar dan Desa 1976

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.

4.7.3 Majlis Penguasa Tempatan

1) Majlis Penguasa Tempatan can be categorized into two types


or forms:-

i) Majlis Penasihat

- for example, Dewan Bandaraya which posses a Majlis


that give advice and consultation

ii) Majlis Berwibawa Penuh

- most of Majlis Penguasa Tempatan is responsible to


discuss and give advice on local issues

- it also has the power to make decision and give order


to its staff in completing any task

Majlis usually meet once in a month. Result of the meeting may be


achieved through consensus or vote.

2) Member of Majlis

The member of Majlis in Malaysia is appointed to join a Majlis.


They consist of politicial or Ketua Jabatan Teknikal at district
level. A local authority can appoint from 8 to 24 member of
Majlis with the min of 21 member per Majlis. Their role is
similar to the role plays by people representative which is to
solve peoples problem.

3) Yang DiPertua

Yang DiPertua, or Mayor for Dewan Bandaraya, responsible to


chair Majlis meeting and has power to call for meeting,

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government administration mechanism Chapter 4

whether ordinary meeting and emergency meeting. Most of


Yang DiPertua Majlis Daerah consist of district officer whereas
Yang DiPertua Majlis Perbandaran is hold by Menteri Besar or
Ketua Menteri. There are also loan officer who become the
Yang DiPertua for some local authority.

4) Setiausaha

In hierarchy arrangement of organization, secretary is


considered the second highest position after Yang DiPertua.
He is appointed by local authority or state authority who in
power for about five years. The main task of a secretary is to
ensure that administration of local authority is carried out
smoothly and efficiently.

5) Other Local Authority Officer

These officers consist of two groups which is officer and staff.


Larger Local Authority like Dewan Bandaraya normally has
more officer and staff compare to other local authority.

Among the officer, there are two groups of them:-

i) Professional Group

- Consist of technical officer that has professional


qualification. Officer act as chief of department or
division of a local authority organization. The play a
role as an professional advisor and manager of the field
responsible to him. 70 percent of officer of Majlis
Perbandaran is professional group. Because of that,
Majlis Daerah has to rely on the assistant and
cooperation gave by professional officer at technical
department at local level to help them in their task
especially that related to development projects.

ii) Administration Group

- consist of people that have qualification in literature.


They responsible in matters concerning on local

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authority administration. These officers cover 20


percent of the officers for Majlis Perbandaran while all
of Mjalis Daerahs officers are administration staff.

6) Committee System

Akta Kerajaan Tempatan 1976 declare that any local authority


can appoint and establish a committee whether general
authority of special authority. This committee is established to
check and give response to all matters that are suitable to be
manage by a committee to the Majlis.

Most of committee being established is in the form of vertical


or specific to a function and department. Among the
committee established is Finance Committee, Licence,
Planning, Road, and City Beauty. Committee in the form of
horizontal is rarely formed and usually emphasize on financial
field, service and discipline. These matter is group as
horizontal or public because it involve various departments and
not focus on specific function of a department.

Important Facts

Generally, all function of committee is:-


a) Planning of development
b) Discuss issue and problem related to the function of local
authority as under its responsibility
c) Make decision and proposal
d) Prepare work paper on activities of local authority for the
consideration of Majlis

A department in a local authority is the urusetia of committee


according to their field. All proposal, decision, and revolution
done by a local authority are raise at a Majlis meeting to get
approval.

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4.7.4 Local Authority Function

There are two main principles that determine the status of local
government function:-

i) Ultravirus principle stated that a local authority can only


perform the function written in its legislation

ii) General competence principle enable a local authority to carry


out any activity only if they able to defray the expense. Local
authority in Malaysia functions according to ultravirus principle.
However, Akta Kerajaan Tempatan 1976 has highlighted that
there are many activities that can be carried out by local
authority. The Function of local authority is divided into two:-

a) Mandatori Function

Critical function like picking rubbish, manage road


lamp, and activities related to society health

b) Function according to Budibicara

include recreation facilities, commodities and business


encouragement activities

There are four types of function plays by local authority in Malaysia:-

i) Security

- control and supervise the health, security and planning of


society

ii) Environment

- relate to the effort done to form equalize ecology system like


optimum land usage planning, and good landscaping.

iii) Recreation

- provide appropriate social facilities for society

iv) Trade

- involve activities that create income to local entrepreneur


and further increase the economic growth

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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:

1. Describe the roles and responsibilities of Central Agencies and


Management Agencies
2. Explain and identify Central Agencies and Management Agencies in
Malaysia

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).

5.2 CENTRAL AGENCY

Central agency is the government agencies that responsible to help, synchronize and
control of the performance of management agencies. Its main responsibilities are:-

i) Regulate policy and national economic plan.

ii) Supply two main necessities; personnel and expenditure allotment, to all
government agencies.

iii) Provide special services required by the management 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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At present, there are five types of central agency:-

1) Exchequer

Generally, the function of Exchequer is to formulate, plan and implement


financial policies and Federal Government Budget in order to achieve
economic development as well as an equal distribution of national income.

i) Analyze the national and international economic condition and


organize activities for economic planning.

ii) Gather income through taxes and loan for Federal Government.

iii) Distribute financial resources effectively and efficiently to all


government agencies through annual budget inspection.

iv) Determine the most effective and efficient system for acquisition,
utilization, management and pelupusan process of property.

v) Formulate, administer and implement taxation policy.

vi) Provide various services such as central contract, housing loan and
other loan for government and state agencies.

vii) Act as an insurance industrial agency in Malaysia. This agency has


11 division:-

a) Administration Unit

b) Budget Management Unit

c) Financial Management System Unit

d) Contract and Supply Management Unit

e) Housing Loan Unit

f) Jawatankuasa Terbitan Modal

g) Accountacy Unit

h) Finance, Debt and Investment Management Unit

i) Economic and International Unit

j) Tax Analysis Unit

k) Insurance Administration Unit

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2) Jabatan Perkhidmatan Awam (JPA)

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.

The functions of JPA are:

i) Regulate policies to employ and terminate workers, post election and


discipline in public service.

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.

v) Provide staff training facility through INTAN (Institut Tadbiran Awam)


and scholarship.

JPA can be divided into 8 divisions:-

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

3) Economic Planning Unit (EPU)

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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The functions of EPU are:-

i) Prepare 5 year development plan at national level.

ii) Check annual development budget. This task is done with Exchequer.

iii) Manage technical and financial aid provided by foreign government as


well as international institutions for the country.

iv) Synchronize the implementation of development projects.

v) Analyze national and international economic condition so that it can be


a foundation for economic development plan.

vi) Provide advice and consultancy on economic problems to the


government.

vii) Carry out social and economic research.

EPU is an agency that acts as urusetia for Majlis Perancangan Negara


(MPN), Jawatankuasa Perancangan Pembangunan Negara (JPPN),
Jawatankuasa Pelaburan Asing and Panek Economi.

4) Implementation Coordination Unit (ICU)

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.

The functions of ICU are:-

i) Synchronize the implementation of development project.

ii) Monitor public agencies and bodies like MISL, HICOM, PETRONAS
and PERNAS in order to ensure their operation is parallel to DEBs
need.

iii) Solve problem related to Bumiputras contractors.

iv) Appraise and re-check all government development policy and


program.

v) Plan and implement special government program or project like rural


area development project (electricity, pipe water and road).

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vi) Help to increase Bumiputra participation in trade and industry through


training and other methods or scheme.

ICU has head office that has 8 divisions:-

i) Contractor Service Centre

ii) Bahagian Basmi Kemiskinan

iii) Bahagian Susan Semula Masyarakat

iv) Bahagian Maklumat Pengurusan

v) Bahagian Kemajuan Petroleum

vi) Bahagian Infrastruktur dan Kemudahan Awam

vii) Bahagian Perhubungan

viii) Bahagian Pentadbiran dan Kewangan

In order to monitor the implementation of development projects in every


states, ICU has Pejabat Kemajuan Negeri in Peninsular Malaysia and Pejabat
Pembangunan Negeri in Sabah and Sarawak. In Pulau Pinang, there is
Bahagian Penyelarasan Penyertaan Bumiputra that function to help
Bumiputras to improve the standard of living.

Important Facts

ICU is urusetia for Majlis Tindakan Negara (MTN) and responsible to operate Bilik
Gerakan Negara.

5) Malaysian Administrative Modernization Unit (MAMPU)

This agency has been established in 1977with the mission to modernize


government administration system as well as providing management
consultancy service to government agencies.

It head office has 6 divisions:-

i) Financial Management Division/Bahagian Pengurusan Kewangan

ii) Information Technology Division/Bahagian Teknologi Maklumat

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iii) Productivity Increasion Division/Bahagian Peningkatan Produktiviti

iv) Bahagian Pentadbiran dan Urusetia

v) Work System Division/Bahagian Sistem Kerja

vi) Organizational Research Division/Bahagian Kajian Organisasi

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.

5.3 MANAGEMENT AGENCY (IMPLEMENTOR)

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

Ministry is the highest government agency in federal government


administration mechanism. It responsible in regulation of policy, plan, control
and synchronization of matter related to it area of duties.

A Ministry is placed under special responsibility. If the portfolio has important


responsibility, it will be helped by Vice Minister or Parliament Secretary.
There are also several Unportfolio Miniter who are elected by the Prime
Minister to carry out special duties at Jabatan Perdana Menteri (JPM).

The main Administrative Officer for a Ministry is known as Ketua Setiausaha


Kementerian (KSU). The responsibility of KSU including regulation of policy,
plan activity, control and carry out activity, synchronizing Ministrys activity
and synchronizing activity for Department or Badan Berkanun under the
Ministry responsibility. KSU also act as an adviser to Ministry in
administrative matters. It also has full responsibility to Ketua Setiausaha
Negara (KSN) according to hierarchical position.

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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In term of its organizational structure, a Ministry has its own main


office/headquarter and the headquarter will be divided to several department
depending on its size. In term of financial system, Ministry can be classified
into two:-

i) Self-accounting Ministry

ii) Non self-accounting Ministry the Ministry financial matter is manage


by Jabatan Akauntan Negara.

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

Department is the second highest management agency after Ministry. The


function of department is related to implementation of policy form by the
government and involve with providing services to society which cover social,
security, development and other fields. Every government department is
placed under the supervision of then Ministry.

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.

The main administrative officer for a department is the Chief Director of


Department whereas for department at state and district level is known as
State Director (Pengarah Negeri) or District Director (Pengarah Daerah). The
staff in government department consists of the people with appropriate
qualification. At management level, this post/position is filled by officers from
iktisad service (Pegawai Perkhidmatan Diplomatik or Pegawai Perkhidmatan
Tadbir Am) whereas other positions or post is filled by professional people
that have specialization in certain fields.

3) Public Bodies

Public Bodies are the government agencies established according to


government acts. It function is to implement special duties parallel to the

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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.

Generally, there are two objective of establishment of public bodies:-

i) Enable government to involve directly in fields that private sector


refuse to involve due to the problem of capital.

ii) Enable the administrative mechanism to operate freely from


government administrative rules. Therefore, these bodies can move
effectively and efficiently parallel to private firms.

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.

There are two types of public Bodies:-

i) Badan-Badan Berkanun

Government agency that was established under the law regulated by


Parliament or Dewan Undangan Negeri. This bodies involve more in
government policies compare to Badan-Badan Bukan Berkanun.

ii) Badan-Badan Bukan Berkanun

Government body that was established under Akta Syarikat. The


main Administrative Officer is known as Pengurus Besar who
responsible to manage and administer the body according to its
corporate objective.

In order to facilitate the administrative operation, the Perbadanan Awam is


divided into certain divisions based on area of work. These bodies have
branches at state and district level to foster the activities of the body.

Every public body has Board of Director which its members were elected by
the Minister for the Badan-Badan Berkanun.

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5.4 GOVERNMENT/CENTRAL AGENCY CONTROL

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.

This control is done through:-

i) Election of member of Board of Director by the Minister.

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

The establishment of central agencies is very important in administration of a


country. They play important role and give significance contribution since the
colonization period until present. They have faced various changes for the sake of
their services to the country and citizens.

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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:

1. Describe and discuss issues related to staff administration in the


public sector,

2. Discuss ways to improve the productivity of the public sector,

3. Describe issues related to training and promotion.

6.1 INTRODUCTION

Staff management is the employment, selection, development, utilization, and


preparation of all requirements for human resource in organization. In addition to the
traditional responsibility of employment and selection of staff, the staff management
also covers development, utilization, and preparation of all requirements and
necessity needed by human resource in service of the organization. Implicitly, this
responsibility consists of matters like staff motivation which aim to encourage them to
give productive contribution to organizations mission.

6.2 FOUNDATION OF STAFF ADMINISTRATION

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.

This is where the importance of staff administration which is to manage human


resource effectively so that the utilization of their energy will produce maximum
production. There are several important role of staff administration:-

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.

If the employee is exceed the requirement, organization has to spend more to


pay the salary of staff that they do not need. On the other hand, if there is not
enough staff, this will create problem in term of implementation of task within
the given period. Sometimes, a simple task will take longer time to finish
because of the lack of staff.

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.

iv) Establish a good communication system in organization so that all information


is disseminate to all departments and level of positions within the given period
of time. This is important so that all parties can understand any events occur
in organization and obtain clear and complete information about their
organization. Through this system, staff will understand clearly their position
and responsibility and further help organization to achieve its objective.

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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The staff with appropriate service scheme, appropriate training, promotion


opportunity and good career development, and comfortable working environment, will
have high motivation to work in the organization. This element can increase
organization productivity as the worker is free from problem and surrounded with
comfortable environment for them to work. Therefore, it is staff administration
responsibility to ensure that these roles are played effectively so that staff effort and
contribution can be realization.

6.3 STAFF ADMINISTRATION PROCESS

6.3.1 The Term and Method in Employment

The main function of staff administration is to employ and appoint


suitable staff to service in an organization. Employment means to
select suitable and qualified candidate to fill certain position where as
appointment means to appoint suitable and qualified candidate to hold
certain position.

However, before employing and appointing any candidate to fill a


position, the staff administration must determine the term and
condition related to the position, which is qualification
(academic/iktisas), experience and other criteria like passing certain
exam, good physical description, good character and others.

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.

Employer can appoint staff that already in service in the organization


to fill a vacancy. Especially when the staff has been working for a
long time at the organization and does not need to go through
adjustment process. This method will help to maintain efficient staff to
work longer in the organization.

Employer also can employ new staff through advertisement of the


vacancy or contact directly to the place where the new staff can be
obtained like higher institution, training centre, college, school and
other institute. They also can be reached through Jabatan Buruh and
Agensi Pekerjaan.

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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

6.3.2 Staff Training

In public service, training is an important effort done to improve and


increase skill, ability and knowledge of the staff as well as developing
good value and attitude parallel to the needs of the organization.
Training and education are two different elements where the scope of
training is much narrow compare to education and has a specific
objective. Education is more general and broad in term of its scope.
Education is a life-long learning that aims to form the life of a person in
term of his character, attitude, physical and mental strength. Training
must be carried out in a short period with special aim; to increase
working skill. Training is connected to career development while
education is connected to life and mind ability.

At present, training is an important method to increase the level of


efficiency of a public service staff. As the vast development of
equipment and technology, staff must be trained so that he will always
aware of new and latest knowledge, skill and technology.

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Important facts

The main objective of staff training is to increase efficiency, which is to


increase the effectiveness of working performance in order to achieve
administration objectives. The efficiency can be divided into two which is
technical skill and morale. Technical skill is aim to perform the task
carried out by the staff or for more higher task that will be carry out in the
future.

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

Morale of staff also needs to be increased. Even though, the


relationship between morale and the increase of performance,
morale efficiency is more correlate to attitude or staff opinion
toward his career. It has been proved that if training able to form
or change staff attitude to be more positive so that it can suit
organization need, thus it can be considered as the most valuable
profit for the organization. With this achievement, staff will not
consider their service as something that is constraint but they will
feel proud to do it.

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Actually, training only is not enough to increase morale of a staff as it


involve the changes of attitude. To change the attitude of staff, it
needs times and effort, not only through short training. May be we
need to change the attitude of the society before we able to change
the attitude of the staff. However, at least certain training can help to
change these people attitude.

Public staffs are given the training based on these objectives:-

i) To create good working skill in every staff

ii) Flexibility; which is to adjust the staff and his task which is
always change in a environment that is also changeable

iii) To establish awareness in every staff of the responsibility to


the society

iv) To prepare the staff with more challenging task

v) To broaden the mind and knowledge of the staff as well as to


plant the principle of I am a public employee not public
employer

6.3.3 Types of Training

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

This type of training is given to staff before they enter public


sector service. The knowledge they gain in school, college, or
university can be included in this type of training as it gave
basic training for individual to get job in public sector. This
type of training also can exist in the form of specialized
courses such as education at vocational school, politechnique,
institut pertanian or courses like mechanical engineering,
accounting or public administration in university. Any
individual that followed specialized courses at school or
university can be accepted directly into public service sector as
soon as they finished their study.

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ii) Orientation Training

This training aims to introduce the staff with basic concept of


their work, new working environment, organization and
organizations mission. Majority of the staff appointed to
service in government service is new staff or new appointment.
They have to be exposed to their task and responsibility as
public staff. They also should understand their position in
organization and understand the need and objective of
organization. When everything is clear and understandable,
thus they can play their role effectively. During this training,
they will be explained on the practices in work, rules, facilities
and organization policies so that they can work smoothly
without any problems.

iii) In-Service Training

This kind of training is given to staff when they were accepted


in the organization. The staff will be asked to start to perform
their duty as soon as they report to the department. The task
done is considered as in-service training as the staff may not
have any experience in the similar area of work before this.

According to Assheton Committee report (U.K) 1794, in-


service training can motivate the staff to increase and
maximize their effort as well improve their performance. It also
can increase the morale of the staff and create compatibility
between the staff and their work. Learning form trial and error
is a popular method as it does not involve any cost in order to
conduct training, and thus, this situation is a credit to the senior
staff as their work will be facilitated while the junior staff will
easily adjust themselves in new working environment.

Nevertheless, there is also disadvantage of the trial and error


method as it involves much risk and it also can effect the
efficiency of organization as the new staff will usually
inexperience and has minimum knowledge.

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iv) Post-Entry Training

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:-

i) Refreshers courses are conducted from time to time so


that the staff will be able to adjust themselves with the
changes occur in public service.

ii) Own effort where the staff will participate in certain


courses by their own incentive in order to increase their
level of qualification and skill to get promotion.
Government can give support by offering scholarship,
emergency leave, and pengiktirafan the additional
qualification for the purpose of promotion.

6.3.4 Promotion

According to L. D. White (1937), promotion means appointment from


the current position to more complicated task and more responsibility,
and involve also the changes of position and salary. The increase of
salary only cannot be considered as promotion. It must be
accompanied with change of position to more higher task and
responsibility. Promotion actually means enhance in position and
grade. The increase of annual salary is not considered as promotion if
it is not accompanied with the changes of status, increase of task and
responsibility. It is known as advancement.

Promotion is very important in public sector as a good promotion


system can attract people to work with government and avoid the
good workers from moving to private sector. A good promotion
system also will make staff to love their daily task and motivated them
to work efficiently. Staff considers promotion as reward for their hard
work and effort since they start servicing in the organization and this
will be a motivator for them to work better. Even though they do not
get promotion now, they will have chances to be nominated for future
promotion. This will encourage them to work harder and better.

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Important facts

To determine which candidate is fit to be promoted, the government


refers to several criteria. These criteria are important as the
opportunity to get promotion is limited because there is large
number of candidates who qualified to get promoted. Therefore,
these criteria will determine the most qualified candidate to get the
opportunity.

There are two main criteria which are usually used in public sector;
merit and seniority.

i) Seniority is the first criteria being used. It means that the


period of service of a staff will determine his turn to be
promoted. The staff with the longer period of service will be
promoted first. Determining seniority also depends to grade of
position. An officer who had work only for a year but hold a
diploma is more senior than a staff that has been working for
five years but hold only an SPM qualification. But for the
position with similar grade, the staff who works longer is more
senior. The benefit of seniority are: -

a) It is more objective as it gave same degree of


deliberation whether the staff is senior or junior

b) The senior staff is more experienced and normally the


more experienced a staff, the more qualify he is to be
promoted

c) It is a fair criteria as every staff will be promoted when


his time had come

d) Interference from political people can be avoided if this


criteria is used

e) The morale of a good staff can be maintained as they


believe that they will get the promotion they deserve
when the time has come

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f) It attract people to work in public sector as there know


there will always opportunity for them to get promotion

However, this criteria also has its own disadvantages: -

a) The staff with the longer period of service may not be


the most efficient staff in his office

b) It is not surely every staff has the opportunity to get


promotion mostly when the candidates age is nearly
the same. It needs the

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

d) Seniority does not mean senior in term of age but also


in term of the grade of position. Staff with degree will
hold higher position than the staff with SPM. Even
though he may not has working experience but
because of his educational qualification, he may hold
higher position. Just imagine when a new worker with
no experience becomes supervisor/officer to the staff
that has longer service than him. This condition can
cause an inexperience staff to hold a high position.

e) These criteria can form insecure environment in


organization as senior staff may not be efficient and
brilliant.

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

The best or excellent staff will be promoted to another position. These


criteria can give instance incentive to efficient and hardworking staff as
well as increase their morale and efficiency in the office. However, this
criteria is quite complex as problems usually occur in order to measure
its objective..

Every time annual evaluation of staff is done, we will hear


dissatisfaction with the mark given to them or to their friend.
Frequently the mark given is not parallel to the task or responsibility
performed by the staff. It is difficult to avoid bias and unfair in
evaluation. In the end, staff with moderate achievement in reality will
get promoted because of their annual work evaluation mark. Even
though, evaluation committee is established to enable more unbiased
and objective evaluation, there is also dominant member of committee
who can influence other committee to give high mark to certain staff.

Therefore, the best way to overcome this problem is by performing


promotion exam. The staffs who manages to get excellent result will
qualify to get the promotion. This can ensure that the efficient and
knowledgeable staff will get promoted. This can eliminate bias,
coercion, and arbitrary promotion.

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: -

i) for promotion to higher position, merit is the most appropriate


criteria to be used

ii) for promotion to middle-level position, merit is the first choice


of criteria, follows by seniority as the second criteria

iii) for promotion to lower-level position in form of routine, seniority


criteria should be given the first consideration

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6.3.5 Retirement

At a specific stage, an individual will be too old to work. So these


group of people should rest or be rested. In order to return their
contribution to government, all countries in the world have formed
retirement system to their staff.

According to L. D. White (1937), retirement system for public staff is


form to help to fire the staffs who shows a decrease in the level of
contribution due to age or disability by giving them allowance, facilities
or aid to their heir when they die, and to improve morale of service
and economic guarantee. For public staff, retirement system can
given them permanent monthly income even though they has stop
working and also provide them saving method for future use.
Therefore, retirement system is an important part in staff
administration.

The advantages of retirement system are:-

i) To abolish the staff who enable to give contribution due to their


age. If they still working in the organization, it can effect the
performance of organization and can cause financial lost to the
government.

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.

iv) Retirement system can be a factor to attract new staff to work


in government. They should not worry about their future as
pension will ensure financial aids when they were already
retired.

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v) It can maintain efficient staff to continue their work in the


government as retirement system can motivate them to be
public officer and prevent them from moving to private sector.

vi) It is appropriate and justifiable that government form a


retirement system so that the good effort and service is return
in term of a good retirement system.

In Malaysia, public staff is required to retire when they reach


mandatory age of 55 years old. However, it is optional for them to
apply for retirement when they reach 40 years old. In U.S., retirement
age is between 65 to 70 years old; U.K. is between 60 to 65; while in
India is between 55 to 58 years old. There are two opinions on the
age of retirement, first opinion stated that staff should be given the
opportunity to work as long as they able to work because the
experience they gain along their period of service can help to increase
the level of efficiency in the department as well as reduce financial
problem of government in order to pay pension for a long period of
time. The second opinion stated that staff has to retire when they
reach the obligatory age in order to open way for new staff to enter
government service as well as the opportunity of promotion.

6.4 JABATAN PERKHIDMATAN AWAM (JPA)

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

This department along Bahagian Pengurusan Belanjawan Perbendaharaan


responsible to determine suitable service, position, and management system
needed in government agency. The main role is to check government agency
application in order to create new position or increase in grade, check and
create new position scheme, determine suitable qualification for promotion,

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evaluate local and international higher education institution qualification for


recognition and check management system in government agencies.

ii) Service

This department responsible to fill in vacancy or position whether through


replacement, loan, promotion, or new appointment through Suruhanjaya
Perkhidmatan Awam. The main role of this department include legislate and
evaluate policies concerning on appointment, promotion, accommodation,
transfer and termination of position, sharing service administration, promotion
process, and government examination process.

iii) Training and Career Development

This department plans, operates, and controls appropriate training to form


trained workers who suitable to work in public sector as well as prepare them
for career development. The basic role of this division is

iv) Salary and Allowance

This division responsible to ensure government policy is perform orderly in


salary scheme, allowance, pension, and others. It also responsible in all
matters related to entrepreneurship in public sector.

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 solve cases related to salary anomaly occurred


after salary checking before the anomaly is taken to Public Service Tribunal.

vii) Staff Record Centre

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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viii) Institut Tadbiran Awam Negara (INTAN)

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

The employment of appropriate staff to service in an organization is important. The


selection of suitable staff to hold certain position is important to create an effective
group of staff. The source of workers can be obtained form outside the organization
or from within the organization. Employer can decide to appoint new staff through
promotion or appointment. For instance, a typist can be appointed to position as a
clerk if he shows good performance and pass the department examination.

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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:

1. Explain the Administrative Tribunal development


2. Describe the roles of an Administrative Tribunal
3. Identify examples of Administrative Tribunal in Malaysia

7.1 INTRODUCTION

Malaysia administration system consists of three main bodies; judicial body,


legislative body, and executive body.

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.

Court is a place where conflicts were resolve. These conflicts include:-

i. Conflict between individuals

ii. Conflict between individual and government

iii. The case of people who commit crime

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7.2 ADMINISTRATION TRIBUNAL

Tribunal is a body established by Parliament outside the power of the court. It


functions to hear all debate that involve with matters of administration between
individuals and between individual and government.

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.

The values or characteristics are as follows:-

i. A body which is free from the power of administration party

ii. A body that able to make fair decision

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

v. This tribunal body cannot be amended. Its existence is permanent.

vi. Rule and procedure for case hearing is more easy and simple from other
ordinary court

7.3 ADMINISTRATION TRIBUNAL DEVELOPMENT

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 has reported that tribunal was accepted as a mechanism


chooses by parliament for the purpose of judging, not as administration
mechanism. Parliament has allocated the power to make decision
independently without interference from other government departments.

Franks Committee Report stated the need and importance of these following
characteristics in administration tribunal:-

i. openness concept

ii. fairness concept

iii. impartiality concept

7.4 THE IMPORTANCE OF TRIBUNAL

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.

7.5 EXAMPLES OF TRIBUNAL IN MALAYSIA

Public Service Tribunal is one example of administration tribunal in Malaysia. It was


established through Akta 186 Undang Undang Malaysia or Akta Tribunal
Perkhidmatan Awam 1977. This tribunal is established to solve conflict involving
anamoli on retirement and public service matters.

Another tribunal in Malaysia is Persuruhanjaya Khas Cukai Pendapatan established


under Akta Cukai Pendapatan 1967. Tribunal panel member consist of 3 or more
member of Pesuruhjaya Cukai Pendapatan. They were elected by Yang Dipertuan
Agong for a period of time. This tribunal is established to investigate and solve
conflict on taxation matters.

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

The existence of administration tribunal is important to ensure administration cases is


handle and judge fairly. Sometimes, administration cases is not suitable to be hear
in court as it is a small case and need special expertise. If administration case is
brought to court, it will create burden to court function due to the condition of the
administration cases. Moreover, if the cases are brought to court, it will dawdle the
decision making process. Administration tribunal help increase the efficiency in
public administration.

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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:

1. Explain the process and the activity of monetary development


2. Differentiate Financial Administration in the Public Sector and the
Private Sector
3. Define budget
4. Describe the process of budget

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

Government responsibility towards countrys stability, peace and harmony is complex


and large. Through public policy, government drafts programs and activities to ensure
people will enjoy a comfortable and wealthy life as well as political, social and economic
stability.

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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.

Examples of public policies in Malaysia are Dasar Ekonomi Baru, Dasar


Pembangunan Negara, and Dasar Pendidikan Negara.

8.2 DEFINITION OF PUBLIC POLICY

According to Appleby (1955), the focus of public administration is to make policy.


Every government action is based on public policy. It is the main condition in every
form of management and administration. All tasks and programs to be executed are
set by public policy.

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.

8.3 FOUNDATION IN PUBLIC POLICY FORMATION

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:-

i) Through internal source. Every ministries or departments have materials like


records, annual report, financial report, and other materials which contain
information from various fields related to it. This information is collect and
kept by the department for future need. All information and data being
collected will be processed, organized, and interpreted for policy making
process.

ii) Through external source. Depending only on information gathered from


internal sources is not enough. Public administration people need to collect
information from external sources like employee associations, Pressure

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Groups, and private body. Information from internal sources sometimes is


bias. Therefore, external sources are important and needed.

iii) Through investigation. This investigation may be performed by Commissions


appointed to investigate certain issue in order to collect certain information.
For example like Hoove Commission in United State.

8.4 MODELS OF PUBLIC POLICY

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.

ii) Second, allow public policy researcher to understand government planning


and objectives in country and societys development.

iii) Third, allow public policy researcher to study on political approach in a


country.

iv) Fourth, allow public policy researcher to study on the implications of policy
implementation upon the citizen.

Public policy can be analysed through four forms:-

i) System Model (System Theory)

ii) Incremental Model

iii) Elite Model

iv) Group Model

Learning and studying of these models will introduce your mind to different approach
and concept in public policy.

8.5 SYSTEM MODEL

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.

i) Environment is the external influences in this model. Example of external


influence is pressure group or opposing party. These external influences will
give pressure to policy being made if the policy does not suit their needs.

Figure 1: System Model (System Theory)

(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.

For example, in 1959, after Malaysia gain independent, there is a high


demand in the quality of health, standard of living, and education. This is due
to death rate which is high, lack of nutrition, high illiteracy in society.
Therefore, by considering these problems, government has legislated policies
such as Rancangan Malaysia and Dasar Ekonomi Baru in order to overcome
these problems.

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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

Demand from people will be channelled to people representative. These


representatives will give support toward the demand by bringing the demand
or issue to Legislative Chamber.

This system can maintain itself through three ways (Ahmad Atory Hussain,
1990)

Important facts

1. There are satisfying revenue.


2. Depends on the environment exist in the system itself.
3. It uses force and threat.

8.6 GROUP MODEL

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)

Figure 2 : Group Model

(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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There are two main opinions on this theory:-

i) David Truman Opinion (Ahmad Atory Hussain, 1990)

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.

The important questions here are:-

a) What it means by the term group with importance?

b) What it is means by the statement group has shared attitude to


raise certain demand towards another groups in the society?

According to Aristotle, a political science philosopher, human is the political


animal (Manusia adalah haiwan politik). People do politic in order to ensure
the needs in life and countrys rule. That answer relate political concept with
power and influence.

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

1. establish rules in groups involve in the conflict


2. Arrange kompromi and stabilize the group importance
3. Transformation of the kompromi e into the form of Public Policy
4. Enforcement of the kompromi

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In this model, public policy is a balancing produce by the group in struggle.


This balancing is determined by the influence of the groups with importance.

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.

ii) Earl Latham (Ahmad Atory Hussain, 1990)

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.

Influence and power of these groups is determined by the following factors:-

The number of member the more member the group has, the more
influence the group will be

Property and wealth

The power of organizational leader the group is lead by the people


who has charisma, qualification and wealth

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.

8.7 INCREMENTAL MODEL

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:-

There is no skill in order to implement the policy

There is not enough financial sources to defray the cost

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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.

Figure 3 : Incremental Model

(Source : Ahmad Atorny Hussain. Politik dan Dasar Awam Malaysia. 2nd ed. Kuala Lumpur:
1990)

Increase of Policy

Former
policy
commitment

1960 1970 1980 1990

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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Therefore, there is a scenario which policy maker will implement policy


without enough, reliable and accurate information whether the policy could
achieve its goal.

8.8 ELITE MODEL

The main issues in the study of elite model are:-

People do not take full consideration on the complete information on public


policy.

The elite people have the right to form multitude opinion upon the task of
policy making and planning. (Please refer Figure 4)

Figure 4 : Elite Model

(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:

1. Explain the process and the activity of monetary development


2. Differentiate Financial Administration in the Public Sector and the
Private Sector
3. Define budget
4. Describe the process of budget

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.

Financial administration can be summarized as:-

i. Budget

Budget is a document that contains the estimate income and expenditure for
an organization.

ii. Exchequer

Exchequer is an organization that manages all matters related to countrys


finance

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iii. Taxation

Taxation administration involves the enforcement and collection of tax. For


example, land tax and property tax.

iv. Supply

A systematic Supply System can ensure that purchasing is properly done.

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

An efficient and effective accounting system is needed to ensure all business


transaction involving financial transaction is correctly recorded.

9.2 THE DIFFERENCES BETWEEN FINANCIAL ADMINISTRATION IN


PUBLIC SECTOR AND PRIVATE SECTOR

The differences between the financial administration in public sector and private
sector can be studied through these following aspects: -

i. Profit and Lost

This aspect helps to determine the efficiency of all of business activities.


Usually public sector does not focus on profit or lost as its general function
does not aim for profit except in trade activity.

ii. Power to Gain Returns

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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iii. Social Stabilization

In private sector, social aspect is not important to be considered, mostly in the


effort to gain maximum profit. Whereas in public sector, social aspect and the
welfare of society as well as service is gain the maximize consideration.

iv. Special Objective of Private Sector

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.

9.3 CIRCULATION OF FINANCIAL ADMINISTRATION

There are six main activities in circulation of financial administration:-

i) Planning and programming

Planning means organizing and arranging program and activity in order to


gain maximum return or profit. Before any planning, a study is done to
analyze countrys demand, as well as political, social and economic stability
of the country and outside the country.

Programming involves arranging and implementing of selected programs in


the most effective way. And effective planning and programming will produce
programs that can help increase the level of economic growth.

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

Budgeting is defines as a document that outlined the estimate expenditure


and return for a particular year. Government annual budget is a statement
that explains the amount of countrys expenditure, types of expenditure and
the return gains by the country.

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iii) Funding

Funding is a process of allocating financial resources for projects that will be


carried out. Financial resources are used to defray the expenditure used in
managing and developing projects.

iv) Accounting

Accounting is a process of recording, giving comment and interpreting of all


financial transactions occurs in organization. The objective of accounting in
public sector is to give accurate and complete financial information, at the
right time.

9.4 BUDGET

In Malaysias context, budgeting is annual economic planning which aims to


implement economic policy of the country specially drafted every year to face
specific economic condition predicted for the following year

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.

9.5 THE CHARACTERISTICS OF BUDGET

There are four important characteristics of budget : -

i) Financial planning of an organization

ii) Contain the estimate returns and expenditure

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iii) Drafted in order to achieve certain objectives

iv) Has certain period of time

9.6 THE ROLE OF BUDGET

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 plays a role as a tool to show government policy.

ii. As a financial plan

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.

iii. As a management tool

Budget explains how government plans to carries out its responsibility or


modus-operasi towards program, activity and project to achieve government
objectives.

iv. As a controlling document

Budget ensures that every cash is spent for certain matters determined by
parliament.

iv. As a tool to measure performance

Budget helps to measure performance of certain agency through its reports


and feedbacks presented. Measuring performance is done through
evaluation of effectiveness, efficiency and quality of service.

v. As a statement of government business transaction

Budget is a government financial statement for a certain year. It records


entire government business transaction and it should be presented in
parliament before 31st December of every year.

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vi. The components of budget structure for estimate return

A government financial year is similar to the year of calendar which is start


from 1st January and end on 31st December. Countrys budget contains a
presentation that shows both estimate return and estimate expenditure for the
particular year. Return is classified according to their types or source and the
details of the return are given a code for easier identification. It is also stated
according to basic comparison fro three year which is the actual amount for
the former year, estimation for current year, and estimation for the following
year.

9.7 FEDERAL BUDGET COMPOSITE

Federal budget consists of estimate return and estimate expenditure. Estimate


expenditure can be divided into two parts; Development Expenditure and
Management Expenditure:-

i) Development Expenditure is unrepeatable capital expenditure (to create


return). It is defrayed through two financial resources; current account and
loan.

ii) Management Expenditure is repeatable daily expense for management like


emolument (salary and allowance), electricity and water supply, transport and
rent. Managing expense has two parts; defrayal expenditure and supply
expenditure.

a) Defrayal expenditure is the expenditure defrayed by Kumpulan Wang


Disatukan. It does not need to get approval from parliament for every
year. This expenditure includes Royal Allotment, Ketua Hakim
Negara Allotment, and Ketua Audit Negara Allotment.

b) Supply expenditure includes expenditure for every service except that


is defrayed by Kumpulan Wang Disatukan according to Rang Undang-
Undang Perbekalan. This expenditure is defrayed by Akaun Hasil
Disatukan, proposed by parliament as Rang Undang-Undang
Perbekalan under Perkara 100 Federal Constitution.

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9.8 FOUR LEVELS OF BUDGET

There are four stages of budget:-

1. Preparation Stage

The preparation of Malaysias Budget starts between 12 to 18 months earlier


of the year of budget. Normally it starts on March of every year. It started
from the stage of unit, bureau or department. Then it will move up until to
Ministry level to obtain decision.

Budget Office at bureau or government department stage which produces


decision on policy accepted after getting approval from ministry. Then
technical information concerning on forms and reports which to be prepared
by administration unit is disseminate to all party involve in budget. Later
Budget Office at Government Department will gather the demand from
administration unit called consolidation. Budget Office will contact Bahagian
Belanjawan Perbendaharaan which later will outline the policies to be made.

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

At this stage, the Exchequer which is represented by Finance Minister will


present the budget on Budget Day. The budget then will be debated by
Dewan Rakyat starting with First Reading, Second Reading, Committee stage
and lastly Third Reading. Budget normally approve by Dewan Rakyat without
much changes being made.

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3. Implementation Stage

When budget is approved by Parliament (which is estimate administration


expenses of both dewan, and estimate development by Dewan Rakyat and
Rang Undang-Undang Perbekalan) and the conformation has obtain Royal
agreement, budget implementation and all related programs will be carried
out through several government agencies. However, before any expenditure
is done by any agency, Finance Minister must produce a warrant to National
Accountant to allow the money to be draw from Kumpulan Wang Disatukan to
defray that public service cost. This rule is needed for both Estimate
Development Expense and Estimate Administration Expenses. Any warrant
being produced for the year of the budget will expired at the end of that year.

National Accountant will produce a notice to officer who responsible to control


the agencys expense stating that the amount needed to enable the execution
of programs and projects can be spend to defray the needed obligations and
expense.

A control officer acts as a leader in government agency. His is responsible to


manage all matters in his agency. Other than ensuring that all programs are
done efficiently and effectively, he also acts as manager of public money in
his agency. He is elected by Finance Minister and among his other duty is to
control expenditure and manage public money, as well as the property being
accepted, collected and spent. He also can represent his agency in Public
Account Committee (a committee established by Parliament) to appraise the
reports prepared by Juruaudit Negeri and assist in investigation of coercion of
public money as well as inefficient of public program administration.

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:

1. Explain the process and the activity of monetary development


2. Differentiate Financial Administration in the Public Sector and the
Private Sector
3. Define budget
4. Describe the process of budget

10.1 THE CONCEPT OF MODERN PUBLIC ADMINISTRATION

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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maintained as it is important in order to achieve economic development. However,


the method used to maintain it should be altered from the aggressive method to more
tolerant method, in which the freedom of citizen is not controlled.

At present, public administration must be more responsive to people needs. The


officer must put their main concern on service to people, not their bureaucracy
institution. In the effort to prepare Malaysia as a developed country, public
administration should give guidance and motivation to citizen to achieve government
mission.

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 administration is persuasive not preventive. It motivates positive changes in


order to reach government objectives. At present, public administration give priority
to efficiency in implementation of task like completing task on time or earlier than the
estimate time, efficient and trained staff, and optimize the utilization of resources.

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.

In Malaysia, the role of public administration is more complicated because to create


social justice among various races is difficult. Most of administrator is Malays and
surely they will give more priority to their own race. But with an efficient public
administration system which always responsive to modernization, assist with the
positive attitude of administrator, government objective to create social justice can be
achieved easily.

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10.2 MOTIVATION AND PRODUCTIVITY

Productivity is ratio between resources used by an organization (the amount of


working hour, equipment and machine, raw materials like information and human
power) and what the organization gain using those resources. The economist define
productivity as the return being obtained after deducting input and processing activity
from output and it can be considered the last return gained. Here we can say that a
productive organization is an organization where the output value exceeds the input
cost and processing cost.

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.

One of these factors is motivation. This consists of salary, working satisfaction,


appreciation, facilities, bonus, allowance, and opportunity for promotion. These
elements have relation to each other and can influence staff attitude toward their
career. For example, if the salary being offer is appropriate with the position or work,
the staff will satisfies with the work and their organization/employer. If not,
dissatisfaction among them will cause them to leave the organization to work at
another place which offers more higher salary. This will give negative effect to
productivity.

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.

As motivation can influence productivity, staff administrator should prepare


infrastructure in department and make sure that the elements that motivated staff is
provided or practice in public administration.

10.3 REDUCING THE SIZE OF PUBLIC SECTOR

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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This situation create burden to government in term of finance as government had to


pay enormous amount of salary to enormous number of workers. The situation
becomes worse when the productivity of this department is always at the lower level.
The consequences is, government has to defray high amount of cost and this give
negative effect to the retirement system of the retired workers as government will not
able to pay the retirement allowance to all the retired workers. At the same time,
development project still has to be done and the quality of public service still needs to
be improved. This entire situation creates a great burden upon the government
especially in term of financial.

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:-

i) Selling Asset and Equity

This involves the selling of government companies like Cement Industries of


Malaysia Bhd. (CIMA), Sistem Penerbangan Malaysia (MAS), and Edaran
Automobil Nasional (EON). This selling of asset involves the transfer of the
three organization components or part of these components which is staff,
asset and management.

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).

iii) Management Contract

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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iv) Built-Operate-Transfer (BOT)

Private sector will defray the development of projects, usually infrastructure


project or public facilities project. Private sector will manage the facilities
when it has already completed and the sector was allowed to impose charge
to customer or user for a concession period. When the concession period is
over, the project will be handed over to government. For example, Projek
Lebuh Raya Utara Selatan (PLUS).

Privatization program has reduced financial burden in government administration.


Until 1993, about 86, 171 staff or 10 percent of public service staff has been reduced
where 73 percent or 62, 575 from this amount came from the privatization of
Telekom, Lembaga Letrik Negara and Jabatan Pos. This saving of financial
resources can be channel to other sectors that in needs.

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

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