1

CHAPTER I

THE PROBLEM

Rationale

Water connects every aspect of life. It is the most basic requirement to

sustain life, not only in the form of potable liquid, but as a component of all living

organisms for that matter. On the social level, water is the core of sustainable

development and is critical for socio-economic development, energy and food

production, healthy ecosystems, and for human survival itself. Water is also a

right issue. As the global population grows, there is an increasing need to

balance all of the competing demands on water resources so that communities

have enough of their needs.

Despite of water’s importance, over 663 million people in the world still

lack access to improved drinking water resources (World Bank, 2018). The World

Bank helps countries improve urban and rural water supply services delivery and

improve sector performance through policies, institutions and incentives.

Sustainable Development Goal (SDG) 6 is to “Ensure Availability and

Sustainable Management of Water and Sanitation for All”. Access to water

sanitation and sound management of fresh water ecosystems are essential to

human health and to environmental sustainability and economic prosperity.

(UN.org, 2018). The targets cover all aspects of both water cycle and sanitation

systems, and their achievement is designed to contribute to progress. The scale

of the challenge is large and becoming more complex. Population and economic
 2

growth are pushing the limits of the world’s finite water resources. In some cases,

water scarcity is already constraining economic growth. Lack of access to

improved water supply and sanitation services impose huge costs on society,

and especially for the poor. Even where access exists, services have been

characterized for decades by poor management, inadequate financing and low

levels of investment.

Water supply is an infrastructure for the collection, transmission, storage

and distribution of water for homes, commercial establishments, industry and

irrigation. At a macro level, the Philippines has made impressive progress in

water supply provision: nationally, 92 percent of individuals have access to

improved water sources, and the number of households with clean water piped

directly to their premises has nearly doubled from 25 percent in 1990 to 43

percent in 2012 (WHO/UNICEF, 2014).

In 2012, 65 percent of the 130 countries that responded to a survey on

integrated water resources management reported that management plans were

in place at the national level (UN.org, 2018), including the Philippines

Water supply systems in the Philippines reverted to the central

government between 1995-71, under the jurisdiction of the National Waterworks

and Sewerage Authority (NAWASA). Consequently, the 1973 Provincial Water

Utilities Act introduced a new management model for urban water supply: the

Water District. Under this act, Local Government Units’ (LGU) had the option to

form water districts to run their urban water supply and sewerage systems. Water
 3

Districts were to be quasi-public corporations’ that operate independently of the

LGU, with promotion, support and financing from the specially created Local

Water Utilities Administration (LWUA). The implementation of the 1991 Local

Government Code (LGC) triggered a process of political and administrative

devolution that brought major changes to the governance structure of the

Philippines. The LGC transferred powers and responsibilities from the central

government to Local Government Units (LGUs), including primary responsibility

for the development of urban water supply and sanitation services. The

government has also been promoting private sector participation in the water

sector, in order to provide additional finance and to enhance service delivery.

(WSP.org, 2003). Water District and LGU managed systems provide piped water

supply services to about 60% of the towns in the Philippines, including many of

the larger towns. Water District provides water supply services to groups, or

clusters, of small towns through one or more water supply systems (WSP.org,

2003).

Decision-makers, water managers and users need to increase their

capacity to manage limited water resources taking into account increased user

demands and environmental needs. Only when water resources are managed in

ways responsive to social, and economic needs and to the long term

sustainability of the water resource will the goal of water security be achieved

(Hall, 2002).
 4

Several studies on water management have been commissioned by

varied institutions like the Asian Development Bank, World Bank and other donor

agencies deeply concerned with this finite resource. Problems encountered by

water districts and users are similar all over the country. Such problems include

wasteful usage, poor coordination among stakeholders, multiplicity of institutions

governing water supply planning and operations, poor water quality, limited

distribution of tap water to urban areas, very weak service delivery, poor water

pricing policies and lack of capital needed for expansion (PIDS Policy Notes,

2000, 2001).

Development potential in the Philippines lies on the abundant natural

resources and well-educated workforce integrating the principle of sustainable

development into country policies and programs. Needless to say, as the primary

provider of water services, water districts are expected to ensure a high quality of

services and responsiveness at all times. One factor for the success of the

industry is the availability of high quality staff and services. It is essential for the

industry to deliver high quality service through effective management of

employees.

In this regard, understanding employees and customers’ perceptions and

expectations of service quality are relevant because employees are the internal

customers of any firm and their perceptions in their work environment determine

the nature and quality of service they will offer the external customers.

Employees are in the frontline and it is them who make or break the
 5

organization’s reputation with their customers. Service quality is of fundamental

importance to ant service organization’s strategy and competitive positioning.

The study of service quality has been dominated by studies of consumer

expectations and perceptions of service in many sectors of the service industry

based on the SERVQUAL model. The SERVQUAL model developed by

Parasuraman et al. (1988) is the most frequently used measure of service

quality.

SERVQUAL is a multi-item scale developed to assess customer

perceptions of service quality in service and retail businesses (Parasuraman et.

al., 1988). The scale decomposes the notion of service quality into five constructs

as follows: a) Tangibles - physical facilities, equipment, staff appearance, etc. b)

Reliability - ability to perform service dependably and accurately c)

Responsiveness - willingness to help and respond to customer need d)

Assurance - ability of staff to inspire confidence and trust, and e) Empathy - the

extent to which caring individualized service is given

According to A. Parasuraman, and L.L. Berry (1985), it is during the

service delivery that the quality of services is assessed and the contact with each

customer implies as a chance to satisfy or dissatisfy the customer, a moment of

truth. They defined customer satisfaction with regards to service as SERVQUAL

represents service quality as the discrepancy between a customer's expectations

for a service offering and the customer's perceptions of the service received,

requiring respondents to answer questions about both their expectations and

 6

their perceptions (Parasuraman et. al., 1988). The use of perceived as opposed

to actual service received makes the SERVQUAL measure an attitude measure

that is related to, but not the same as, satisfaction (ibid). Parasuraman et. al.

(1991) presented some revisions to the original SERVQUAL measure to remedy

problems with high means and standard deviations found on some questions and

to obtain a direct measure of the importance of each construct to the customer.

Kettinger and Lee (1994) and Pitt et. al. (1995) were among the early

adapters of SERVQUAL to the IS context. Their work sought to use SERVQUAL

to measure the service quality of the IS function. Since this time concerns have

been raised regarding the suitability of SERVQUAL to the IS context (Kettinger

and Lee, 1997; Pitt et al., 1997; Carr, 2002; van Dyke et. al., 1999).

However, the SERVQUAL does not measure other possible influences in

the delivery of basic needs services, such as leadership or governance practices

and organizational culture and personal beliefs and attitudes of the workforce.

Findings of the investigations of Drew & Kendrick (2005) support the idea

that culture influences the effectiveness and efficiency of the delivery of services

of an organization. Rizak & Hrudey (2007) contend that in order to achieve

corporate success, sustainability and risk management must be ingrained or

integrated into the culture of an organization. Moreover, the study of Allana,

Jeffreya, Clarkeb and Pollarda (2013) have reiterated most recently the foregoing

findings when they concluded that organizational cultures influence how

organizations deliver their services, and the implications of these relationships

 7

shape these organizations into resilient organizations in water utility of high

uncertainty.

Water districts are small organizations composed of less than 100 people.

According to Henslin (2002), a group becomes less intimae and more stable as

its size grows. To accomplish the organizational goals, it would need a formal

structure. Smaller groups tend to behave informally toward one another.

The foregoing premises are the impetus that drove the proposition of this

study in the hope that it will help improve the quality of service delivery by looking

at the dynamics of water districts at the organizational level.

This study aims to evaluate the status of service delivery of Water Districts

in Pangasinan, to measure the extent to which customers are satisfied with the

services that the water districts’ employees are delivering to the people. Hence,

the researcher would like to come up with a model that will provide a set of

recommendations aim to develop a strategic development model that will

improve public service delivery of water districts in Pangasinan in the short term,

and perhaps, even long term.

Theoretical Framework

This study is anchored on Cameron and Quinn’s Competing Values theory

(1999).

According to Cameron and Quinn there are two polarities that make the

difference when it comes to organizational effectiveness. Organizations have to

 8

choose whether they have (1) Internal focus and integration - or - External focus

and differentiation or they have (2) Stability and control - or - Flexibility and

discretion.

In this framework, a person cannot have both polarities for one hundred

percent at the same time, hence, the term ‘competing values’. The two

dimensions are plotted in a matrix, with its four quadrants corresponding with

four organizational culture types that differ strongly on these two dimensions or

four values, as shown in Figure 1.

Clan Culture

This working environment is a friendly one. People have a lot in common,

and it can be likened to a large family. The leaders or the executives are seen as

mentors or maybe even as father figures. The organization is held together by

loyalty and tradition. There is great involvement and the organization emphasizes

long-term Human Resource development, and bonds colleagues by morals.

Success is defined within the framework of addressing the needs of the clients

and caring for the people. The organization promotes teamwork, participation,

and consensus.
 9

Figure 1
Competing Values Framework
 10

Here, the leader is more that of a facilitator, mentor and/or team builder.

Commitment, communication, and development are the value leaders. As for

theory of effectiveness, human resource development and participation are

effective.

The strategy to improve quality of service or product is by: empowerment,

team building, employee involvement, human resource development and open

communication

Adhocracy Culture

This culture is characterized by being a dynamic and creative working

environment. Employees take risks. Leaders are seen as innovators and risk

takers. Experiments and innovation are the bonding materials within the

organization, and prominence is emphasized. The long-term goal is to grow and

create new resources. The availability of new products or services is seen as

success. The organization promotes individual initiative and freedom. The leader

is more of a visionary, innovator or an entrepreneur.

Its value drivers are: Innovative outputs, transformation, agility

Theory of Effectiveness: Innovativeness, vision and new resources are effective

Quality Improvement Strategy: Surprise and delight, creating new standards,

anticipating needs, continuous improvement, finding creative solutions

 11

Market Culture

This is a results-based organization that emphasizes finishing work and

getting things done. Employees are competitive and focused on goals. Leaders

are hard drivers, producers, and rivals at the same time. They are tough and

have high expectations. The emphasis on winning keeps the organization

together. Reputation and success are the most important. Long-term focus is on

rival activities and reaching goals. Market penetration and stock are the

definitions of success. Competitive prices and market leadership are important.

The organizational style is based on competition. The drivers of values are

market share, goal achievement, profitability, and the theory of effectiveness are

aggressively competing and customer focus are effective. The quality

improvement strategies include measuring client preferences, improving

productivity, creating external partnerships, enhancing competiveness, involving

customers and suppliers.

Hierarchy Culture

This is a formalized and structured work environment. Procedures decide

what people do. Leaders are proud of their efficiency-based coordination and

organization. Keeping the organization functioning smoothly is most crucial.

Formal rules and policy keep the organization together. The long-term goals are

stability and results, paired with efficient and smooth execution of tasks. Trustful

delivery, smooth planning, and low costs define success. The personnel
 12

management has to guarantee work and predictability. The leader is the type

who coordinates, monitors and organizes. The value drivers are efficiency,

timeliness, consistency, and uniformity. The theory of effectiveness are on

control and efficiency with capable processes are effective, and the quality

improvement strategies employed are error detection, measurement, process

control, systematic problem solving, quality tools

The graph also depicts direction of focus (internal and external) and the

values of flexibility and/or control.

To the left in the graph, the organization is internally focused: what is

important for us, and how do we want to work?

To the right the organization is externally focused: what is important for

the outside world, the clients, and the market?

At the top of the graph, the organization desires flexibility and discretion,

while at the bottom the organization values the opposite: stability and control.

This theory applies to this study in all its totality. Each organization, like

those of the water districts, have a culture of its own. This culture is rather a

loose aggregate of values that overlap with other cultures, but distinguishes one

from the other with some predominant characteristics of how leaders lead,

strategies employed when faced with a situation, beliefs and assumptions,

among other attributes. These various attributes contribute to either the

attainment of their organization’s goals, which in turn, become the determinant of

 13

the status of the quality of their service delivery and perhaps even as basis for

the effectiveness and efficiency of their service delivery.

Conceptual Framework

In accordance to Presidential Decree No. 198 also known as the

“Provincial Water Utilities Act of 1973” as quoted in Section 2: Declaration of

Policy, “The creation, operation. Maintenance and expansion of reliable and

economically viable and sound water supply and wastewater disposal system for

population centers of the Philippines is hereby declared to be an objective of

national policy of high priority. For purpose of achieving said objective, the

formulation and operation of independent, locally controlled public water districts

is found and declared to be the most feasible and favoured institutional structure.

To this end. It is hereby declared to be in the national interest that said districts

be formed and that local water supply and wastewater disposal systems be

operated by and through such districts to the greatest extent practicable. To

encourage the formulation of such local water districts and the transfer thereto to

existing water supply and wastewater disposal facilities, this Decree provides the

general act the authority for the formulation thereof, on a local option basis.

Moreover, it is likewise declared appropriate, necessary and advisable that all

funding requirements for such local water systems, other than those provided by

local revenues, should be channelled through and administered by an institution

on the national level, which institution shall be responsible for and have authority
 14

to promulgate and enforce certain rules and regulations to achieve national goals

and the objective of providing public waterworks services to the greatest number

at least cost, to effect system integration or joint investments and operations

whenever economically warranted and to assure the maintenance of uniform

standards, training of personnel and the adoption of sound operating and

accounting procedures.”

The water district, as the sole provider of tap water, must strengthen

efforts in improving service delivery, providing superior water management

services to the communities. The SERVQUAL model developed by Parasuraman

et al. (1988) is the most frequently used measure of service quality. It measures

the gaps between expected service and perceived service in different industries.

The difference in perceptions and expectations determines the nature of quality

of the service. The monitoring of quality of services, according to the various

existing models, not only permits the planning of assertive, highly effective

strategies of intervention, but also the monitoring of the responses to these

actions, contributing to implementation of policies, development programs,

scientific and technological advances. This study used the IPO (Input-Process-

Output) paradigm design to discuss the flow and the difference of the results for

external and internal clients in terms of the status of the service delivery, good

governance practices, corporate culture along behavioural patterns,

organizational values and beliefs, and personal attitudes an assumptions, level of

efficiency and effectiveness of service delivery (input), and the comparison of the
 15

extent of these variables between external and internal clientele in order to

determine which of these predict service quality using appropriate research

methods (process) so that a model framework can be developed (Output) (Fig 1).
 16

 Descriptive
1. Status of
Evaluative
service delivery
survey
2. Good  Stratified
governance random
sampling
practices
 Questionnaire
3. Corporate  Validation
culture  Reliability
test
Development
4. Level of  Data Analysis: Model
Efficiency and  Comparison
Effectiveness of of external
Service vs. internal
clients

Multiple Logistic
Regression

Figure 2
Schematic Diagram
 17

Statement of the Problem

This study aims to assess the service delivery of Water districts in

Pangasinan to serve as basis for the framing of a development model.

Specifically it will seek to answer the following questions:

1. What is the status of service delivery of selected Water Districts in

Pangasinan in terms of the following five service quality dimensions:

1.1. Tangibles,

1.2. Reliability,

1.3. Responsiveness

1.4. Assurance and

1.5. Empathy?

2. How is good governance practices manifested in water districts in terms of

2.1. Transparency,

2.2. Accountability,

2.3. Participation,

2.4. Predictability,

2.5. Sustainability

3. What corporate culture predominantly exists in water districts as to

3.1. Common behaviour patterns,

3.2. Organizational values and beliefs,

3.3. Personal attitudes and assumptions

 18

4. What is the level of efficiency and effectiveness of service delivery of

water districts in terms of

4.1. Non-Revenue Water;

4.2. Water Resource Management;

4.3. Complaints Management;

4.4. Billing and Collection;

4.5. Management Skills;

4.6. BOD Involvement;

4.7. Information Technology;

4.8. Public Relations

5. What development model can be proposed to improve the service delivery

of water districts in the province of Pangasinan?

Hypothesis

The following null hypotheses will be tested at .05 level of significance:

1. There is no significant difference in the perception of internal and external

clients of water districts on efficient and effective service delivery.

Scope and Delimitation

This research will determine the perceived status, good governance

practices, corporate culture and level of efficiency and effectiveness of the

service delivery of the selected water districts in Pangasinan and then compare
 19

the responses of the respondents from all six selected water districts along the

same parameters. This research will not identify the perception of the internal

clients in terms of the functions of management implemented in water districts in

terms of planning; organizing; leading; and controlling. Along status of service

delivery, the SERVQUAL instrument shall be used, using five of the seven

dimensions, namely tangibles, assurance, responsiveness, empathy and

responsiveness. Communication and knowledge will not be measured as these

have low reliability.

The perceptions of the prospective participants will be the basis of status

of the quality of services delivered, the practices of good governance, their

organizational culture and their level of effectiveness and efficiency in doing their

responsibilities and not from an external viewpoint through observation or other

methods of measuring service delivery quality and other independent variables..

After validation and reliability testing, a researcher-developed survey

questionnaire shall be used to gather data from the workforce of the selected

water districts from the administrative down to the rank and file employees

through probabilistic stratified random sampling. The survey will be conducted

from July to August, 2018.

 20

Significance of the Study

Consuming public. The ordinary people who depend on water districts

for clean, safe and potable water shall be the ultimate beneficiary of this

research.

Local government units (LGUs). It must be remembered that the 1991

Local Government Code (LGC) mandated the local government units to ensure

the provision of local potable water service among local government units

through planning and implementation of water supply and sanitation programs,

preparation of water and sanitation, master plans , monitoring of local water and

sanitation coverage and updating of sector profile, provision of support to water

service providers namely, rural water supply associations, barangay water supply

associations, and cooperatives, including funding from Internal Revenue

Allocation (IRA).

Therefore, the insight that can be gained from this research can be used

by the LGU to conduct inquiries and then legislate and enact programs, policies

and /or ordnances whichever is applicable, to improve the service delivery of

their local water district.

Water District employees. The management down to the rank and file

staffs of water districts can use the results of this study as their benchmark in

whether or not they have been responsive to the call of their duty, and may use

this as basis to conduct internal audit of performance or commissioned audit of

 21

an independent external body to determine what areas they excel in and what

areas can be improved.

Definition of Terms

The following terms are hereby presented with their operational definition

to facilitate better grasp of the concepts and processes involved in this study.

Good governance practices –transparency, accountability, participation,

predictability and sustainability

Assurance. It is the knowledge and courtesy of the employees and ability

to instil trust and confidence.

Corporate culture. These are the beliefs and ideas that a company has

and the way in which they affect; it does business and how its

employees behave. In this research, it refers to the behavioral patterns,

organizational values and beliefs, personal attitudes and assumptions of the

members of the workforce of the water districts.

Customer satisfaction. It is the customer’s evaluation of a product or

service in terms of whether that service has met their needs and expectations.

Empathy. It refers to caring, individualized attention the firm provides its

customers.
 22

External clients. In this research these are those employed in the

government agencies who are concessionaires of the selected water districts.

Development model. In this research, this is a loosely-structured

proposed internal auditing system involving processes of assessing, planning,

implementing, monitoring evaluating the performance of the local water districts

along status of the service delivery, governance practices, corporate culture,

effectiveness and efficiency and shall be the desired output of the study after a

careful analysis and interpretation of the data gathered form the respondent

workforce of the selected water district in six local government units in

Pangasinan. Its purpose is to serve as a tool for improving the quality of service

delivery. This instrument can be improved from time to time to meet the

constantly evolving systems of delivery as well as that of assessment and

evaluation, such that the previous audit result shall serve as the benchmark of

the next period of audit.

Internal clients. These are employees of the six selected water districts,

from the management level down to the rank and file.

Level of Effectiveness. This is the degree to which something is

successful in producing a desired result. In this research, this is measured in

terms of the ability to meet the minimum standards along the following aspects:

non-revenue water, water resource management, complaints management,

billing and collection, management skills.

 23

Level of efficiency. This refers to the degree by which

the condition or fact of producing the desired results is attained with minimal to

no waste, or a particular way in which this is done. In this research, this is

measured in terms of being able to attain desirable and acceptable management

of non-revenue water, water resource management, complaints management,

billing and collection, management skills, BOD involvement, information

technology and public relations above the minimum expectations.

Perception. It is how the clients perceive the quality of services delivered.

In this research, clients perceive quality in terms of their perception of how well a

given service delivery meets their expectations of that delivery, the practices of

good governance, their organizational culture and their level of effectiveness and

efficiency in doing their responsibilities.

Reliability. This is the ability to perform the promised service dependably

and accurately.

Responsiveness. Responsiveness means understanding and working

within sector realities, including the institutional relationships, political agendas,

informal networks, and incentives and disincentives for change.

Status of service delivery. In this research, this is measured in terms of

tangibles, reliability, responsiveness, assurance and empathy.

 24

Service delivery. This is the act of providing a service to customers: In

this research, this refers to the provision of effective and efficient services by the

local water districts in Pangasinan to their clientele.

Service quality. Also known as SERVQUAL, is a multi-dimensional

research instrumentation, designed to capture clients’ expectations and

perceptions of a service along five dimensions that represent service quality. In

this study, this will serve as guidelines in measuring the status of service delivery

of the selected water districts.

Tangibles. The appearance of the physical facilities, equipment,

personnel and communication material.

Water District. This is a local entity classified as a government-owned

and controlled corporation, existing under the authority of the Provincial Water

Utilities Act of 1973 (PD 198 as amended) that is responsible for the

maintenance and provision of safe, potable water supply and disposal of

wastewater, among other pertinent functions. In this research, this refers to the

six selected water districts in Pangasinan.

Water supply system. This includes water source, treatment, facility,

storage tanks, distribution lines and customer premises.

 25

CHAPTER II
REVIEW OF LITERATURE AND STUDIES

This chapter presents and discusses literature and studies that are related

and have bearing and significance as well as help facilitate, assist and

strengthen the conceptualization and completion of the present study. The

researcher judiciously went over the various constructs that are deemed helpful

to accomplish this undertaking.

Related Literature

Philippine Association of Water Districts

The Philippine Association of Water Districts, Inc. or PAWD (pa-wad) is

the umbrella organization of all duly organized water districts (WDs) in the

Philippines. A few pioneer water districts including those established in the cities

of Cagayan de Oro, Bacolod, Marawi, San Pablo, Davao and Cebu founded it on

August 31, 1974.

The water district concept was born out of necessity with the failure and

subsequent abolition of the National Waterworks and Sewerage Authority

(NAWASA), then supervisory agency for provincial water supply in the country.

The government, after two studies, had commissioned the Adrian Wilson and

James Montgomery, a joint-consultancy firm, to conduct another exhaustive

study and submit recommendations for the formulation of a national policy that
 26

would ensure Filipinos in the countryside access to safe, potable, adequate and

reliable water supply anytime of the day.

The recommendations of the Adrian Wilson and James Montgomery

resulted to the enactment of the Presidential Decree No. 198, otherwise known

as the Provincial Water Utilities Act of 1973, to wit: “Declaring a national policy

favoring local operation and control of water systems; authorizing the formation

of local water districts and providing for the government and administration of

such districts; chartering a national administration to facilitate improvement of

local water utilities; granting said administration such powers as are necessary to

optimize public service from water utility operations, and for other purposes.”

The idea of creating a national umbrella organization for all the water

districts saw light on August 31, 1974 when Mr. Emmet Lowry, a consultant from

the James M. Montgomery firm, initiated a meeting of water district officers to

discuss this proposal. Eleven water district officers, all General Managers, then

attended the meeting. These General Managers comprised the core members of

the PAWD and thereafter became charter members. This explains the reason

why in the PAWD, membership was then represented by the general manager.

In a meeting after the Annual LWUA-Water District Forum in Legaspi,

Albay, sometimes in June 1978, the PAWD was reborn with an amended

constitution to accommodate the Chairman of water district Boards. Thus, the

Board of Governors and Executive Council were created. Their functions

 27

simulated the working relations of Board of Directors and General Managers of

water districts. The Board of Governors lays down policies while the Executive

Council implements policies set by the Board.

It was also established as it now stands the membership in the PAWD is

by water districts and not by individual members. Member-water districts are

represented by their Chairmen and General Managers. As the number of water

districts grew, the formation of the regional and provincial organizations became

necessary for more effective interaction with smaller water districts. Currently, the

PAWD is effectively a federation of regional water districts.

Through the years, PAWD has shown that it was no mere paper

organization. A lot of people could still remember vividly that chaotic year 1986,

following the first EDSA uprising. The PAWD then stood as one and called the

attention of the new leaders, after the fall of Marcos, and secured solid support

for water district concept.

The transition from the private character of water districts to government-

owned and-controlled corporations (GOCCs) was another crisis that brought into

the fore the real mettle of PAWD. Water districts were originally quasi-public

corporations. However, on September 13, 1991, the Supreme Court ruled that

water districts are GOCCs, and should therefore be placed under the Civil

Service Commission (CSC) and the Commission on Audit (COA). PAWD,

through various working committees, coordinated with the Government Insurance

 28

System (GSIS), department of Budget and Management (DBM), COA, CSC and

other government agencies to ensure smooth transition without dislocating the

water districts’ vital service of providing safe water to their consumers.

PAWD once again proved that collective action and cooperation among

member-water districts is certainly the key to PAWD’s success.

On March 11, 2010, a law that exempts water districts from paying income

tax was enacted. Under the Republic Act 10026, savings from the income tax

exemption shall be used for capital development expenditure in order to expand

water service coverage and provide safe and clean water.

On March 16, 2010, PAWD, staying true to its commitment of promoting

self-reliant water districts, entered into a Memorandum of Agreement (MOA) with

the United States Agency for International Development’s (USAID) Philippine

Water Revolving Fund Support Program (PWRF-SP) to put in place a Philippine

Water Operator’s Partnership Program.

One of the aims of the collaboration is to create a platform for domestic

utilities to foster national peer to peer learning partnership based on mutual

benefit and access international expertise and know how. It also intends to

support the organizational development of PAWD to serve development needs of

the industry, raise awareness and interest of utilities to participate in the program

and identify potential sources of funding and schemes for twinning arrangements.
 29

The Philippine Water Operators’ Partnership consists of four components,

which are twinning, training, knowledge management, and continuous

improvement and benchmarking. Its primary objective is to build the capacities of

the Philippine water service providers and the industry association through

knowledge and experience sharing and mentoring.

As a leader in the water industry, PAWD continues to strive hard to

improve the performance of water districts in the country enable them to reach

un-served areas, ensure reliable and cost efficient operation, and improve water

sanitation and services.

Local institutions play an indispensable role in the delivery of basic

services to the people. This is particularly true with potable water. Although a

critical daily need, water supply may be inadequate and cannot be fully provided

by the relevant agencies of government.

Potable or drinking water is a critical requirement of human life. Its

provision in adequate quantity and quality is a primary national and international

concern across the globe. In particular, the Millennium Development Goals

(MDGs) target that 86.6 percent of the population would have adequate access

to safe drinking water by 2015 (NEDA 2007).

For its part, the Philippine government aims that 92 to 96 percent of its

citizens would have sufficient water supply by 2010 (NEDA 2004).

 30

The performance of the Philippines in meeting national and international

objectives related to potable water needs to be assessed. Evaluating where the

country is at present will determine if its objectives are attainable. It will also

show if there is a need to fine tune the government’s approaches for achieving its

goals or if it should fast track its efforts within the limited time available.

Government Institutions, Roles, and Responsibilities

Presidential Decree (PD) 198 or the Provincial Water Utilities Act of 1973

established water districts in the country giving local and national government

agencies involved in local water service delivery in the Philippines have their

respective roles and responsibilities in ensuring safe and adequate water supply

through efficient management and operation of water supply systems. While the

various institutions affect local water service delivery in varying degrees, the

institutions of interest to the study are the WSPs and the LGUs, because they are

the ones actually involved in the provision of potable water locally.

The 1991 Local Government Code (LGC) mandated the sharing of

responsibility of providing local potable water service among local government

units. They are in charge of planning and implementation of water supply and

sanitation programs, preparation of water and sanitation, master plans ,

monitoring of local water and sanitation coverage and updating of sector profile,

provision of support to water service providers namely, rural water supply

 31

associations, barangay water supply associations, and cooperatives, including

funding from Internal Revenue Allocation (IRA)

Presidential Decree 198 of 1973 created the Local Water Utilities

Administration. Executive Order 738 of 2008 transferred jurisdiction of the LWUA

from the Department of Public Works and Highways (DPWH) to the Department

of Health (DOH). These LWUA’s are responsible for capacity-building support to

WSPs, provision of technical advisory services and financial assistance to water

districts Provision of technical and institutional support to LGUs and WSPs and in

setting design standards for water supplies operated by WDs and other WSPs.

In 1990, reorganization was undertaken which established the current

DILG by virtue of Republic Act No. 6975 to ensure capacity building support to

LGUs. Its role is in Provision of capacity building training to LGUs and

coordination of LGU master plan preparation Provision of information to LGUs on

available sector programs and financing.

PD 424 of 1974 created the National Water Resources Council, now

known as National Water Resources Board (NWRB). EO 123 of 2002

strengthened the NWRB and mandated it to approve tariffs of local water districts

with its powers to regulate WSPs, including LGU-managed water utilities,

regulate tariffs, and for coverage and service regulation Management of WSP

database, including WSP performance data.

 32

In 1987, reorganization was undertaken which established the current

NEDA by virtue of EO 230. Its role in water supple is the coordination of

preparation of national development plans and investment programs Formulation

of sector policies and strategies, monitoring and implementation of policies,

programs, and projects.

In 1987, reorganization was undertaken which established the current

DPWH by virtue of EO 124, responsible for the provision of technical support to

LGUs upon request including implementation of Level I and II projects.

In 1987, the Department of Finance (DoF) was reorganized by virtue of

EO 127, 127-A, and 292. Their task is on providing financing support for the

water supply sector. DoF oversees performance of GFIs like Development Bank

of the Philippines (DBP), Land Bank of the Philippines (LBP), and LWUA. These

GFIs provide funding for the water supply sector.

The National Anti-Poverty Commission(NAPC)-Water Supply Coordinating

Office was created by the Social Reform and Poverty Alleviation Act of 1998 or

RA 8425. It is responsible for coordinating the P3W (President’s Priority Program

on Water) water supply projects for 432 municipalities outside Metro Manila

where people’s access to water supply is below 50 percent, 210 communities

within Metro Manila, and 201 municipalities in conflict zones covered by peace

agreements with various rebel groups.

 33

National Strategies and Programs

Although all the national strategies and programs to attain MDG and

national objectives related to potable water supply in the Philippines, in one way

or another, impact LSD of potable water, of special interest to the study are:

strategy b) Ensure that the LGUs provided with water supply services will also

have sanitation facilities. (c) that uses institutional strengthening as an approach

for WSP improvement; and strategy (e), which aims to promote innovative

schemes to finance LGUs in the conduct of their functions related to potable

water provision. In the case of the programs, b) In establishing groundwater

monitoring system, the government aims to regulate pumping in areas where

piezometric heads (which measure the level of the water table above sea level)

are declining, and to assess the state of existing wells in terms of their physical

state or the quality of water coming from it. The strategies and programs

implemented by the national government to attain MDG and national objectives

related to potable water supply in the Philippines are to (1) Make potable water

available nationwide by 2010 through the P3W, with priority given to at least 200

“waterless” barangays in Metro Manila and 200 “waterless” municipalities in

conflict zones outside of Metro Manila through private sector or public

investment; (2) ensure that the LGUs provided with water supply services will

also have sanitation facilities; (3)Continue to provide capacity building programs

and technical assistance to WSPs on water and sanitation planning,

management, and project implementation; (4) Develop and manage technology

 34

options for water supply such as solar desalination for isolated islands, windmill

technology, and others; (5) Promote private–public partnerships (PPPs) for

increased investment in water provision to waterless LGUs, especially remote

barangays and municipalities; (6) Conduct an assessment of the groundwater

resources and vulnerability for the 310 priority LGUs; to (7)Monitor potable

water supply through the Tap Watch Program and to (8) complete the

groundwater resource inventory/assessment in major urban areas and surface

water in rural areas, controlling the extraction of groundwater through moratorium

and/or stringent requirements in the grant of water permits in water-deficient

areas, and through complete registration of all water pumps, metering of water

pumps and others.

National programs are bent on (1) focusing on waterless areas, the

government is implementing the P3W. This is in line with President Gloria

Macapagal-Arroyo’s Ten-Point Agenda formulated and announced in 2004,

which includes the “provision of power and water supply to all barangays.”

Priority areas are the 212 “waterless” areas in Metro Manila and 633 “waterless”

municipalities outside Metro Manila; (2) In establishing groundwater monitoring

system, the government aims to regulate pumping in areas where piezometric

heads (which measure the level of the water table above sea level) are declining,

and to assess the state of existing wells in terms of their physical state or the

quality of water coming from it; (3) providing safe drinking water, the government

installs low-cost water supply facilities such as hand pumps, gravity-fed systems,
 35

rainwater collection, and shallow wells or deep artesian tube wells. It builds

infrastructures for drinking water, especially in rural areas with poor access; (4)

conserving water for sustainable water quality and supply, the government

undertakes activities that include (a) improving the system’s efficiency; (b)

improving the metering efficiency and monitoring the unauthorized use of water;

(c) encouraging the use of saving devices, application of new technologies, and

recycling; and (d) conducting intensive public information, education, and

communication programs on water conservation; and lastly in (8) addressing the

downward trend in sanitation coverage, the government has adopted, developed,

and constructed low-cost sanitation facilities such as “engineered reed bed

treatment system” for low construction cost and maintenance cost, and ventilated

improved pit privy (VIP) and other latrines.

Institutional Problems

Although the Philippines already has numerous laws, agencies, strategies,

and programs in place for potable water as indicated above, the system of

governance in this area at the national level is deemed weak and inadequate.

Among the most important of the institutional problems being faced are listed

below (PIDSUNICEF 2009). It would be interesting to know based on the results

and findings of the study if the national problems and issues also exist at the

study sites and what potential solutions can be considered to address them.
 36

Multiplicity of institutions. The water supply sector is highly fragmented due to

unclear duties among institutions, overlapping functions, and poor coordination in

planning and monitoring.

Uncertainty in law implementation. There is a high degree of uncertainty on how

to implement the laws, particularly Executive.

Order 279 of 2004 which instituted reforms in the financing policies for the water

supply and sewerage sector and for WSPs. This is because the required

institutional capacities of the corresponding institutions to carry out the functions

mandated in the law were insufficient. Weak regulatory framework. The water

supply sector lacks coherent and robust regulatory framework due to: i)

fragmented regulatory oversight by different line agencies; ii) lack of capacities to

perform

Impact of Organizational Culture on Effectiveness

The impact of organizational culture on effectiveness can never be

underestimated. The importance of organizational culture to the success of

sustainability initiatives is not surprising, since organizational culture has

previously been linked to the long‐term financial success and improved

effectiveness of organizations (Cameron and Ettingson, 1988; Denison, 1990). A

strong, distinctive organizational culture has been identified as one of the key

components of a successful company (Trice and Beyer, 1993). When all leaders,

managers and staff within an organization have a clear sense of their shared
 37

culture, it creates social order, continuity, collective identity, commitment, and

common vision while reducing organizational uncertainties—all of which all lead

to improved organizational performance (Cameron and Quinn, 2006).

Organizational culture has been defined in many ways, but Wilson (2001) offers

a synthesis of four common characteristics: First, organizational culture consists

of shared assumptions, values and behaviors. Second, only some aspects of

culture can be observed or accurately articulated by group members. Third, new

members to an organization adopt its culture as the proper way to think, feel and

behave. Fourth, since new members are since new members are assimilated into

the existing culture, the culture is very slow to change and will persist over time.

Related Studies

Foreign

Foreign studies (Greenpeace 2007, World Bank 2005a) found that 1 out of

5 Filipinos do not get water from formal sources.

Another study (Singh 2006) suggested that policymakers in the Philippines

should give due attention to institutional transformation or the creation of

appropriate and new institutions as the country moves toward decentralization.

Still another study (Johnson et al. 1996) explored innovative ways to finance

water districts in the country, particularly where the support of financial donors

could be tapped.
 38

The Philippine situation is not unique, but rather a representation of water-

related problems faced by the developing world.

The water supply sector in Ghana faces a lot of problems, partly due to a

neglect of the sector over a long period with tariffs at a low level which was far

from reflecting the real cost of the service. Economic efficiency still remains

below the regional average, resulting in a lack of financial resources to maintain

and extend the infrastructure. (Egyin, 2011). The study assessed the challenges

facing water supply in the Sunyani Municipality. The study showed that water

supply was being rationed in the Municipality and the major complaint on the

quality of water was with the colour. Complaints were mostly made in person

(80%) and the attitude of GWCL/AVRL staff to complaints was poor. However,

meter readers were generally found to be customer friendly with (62%) of the

customers satisfied with the meter readers. Customers perception of the price of

water was moderate (55%) and an increase in the water tariff without significant

improvement in quality would create problems. Finally, some of the reasons for

the inefficiency in water delivery were obsolete machines, frequent pipe bursts

and power outages among others.

The study was conducted in WondoGenet district, Southern Ethiopia to

assess the water quality of rural water supply schemes in relation to the

sustainability of their service delivery. 28 functional water points were selected

randomly, for their assessments. The assessments included sanitary surveillance

of water points and water quality analyses. Water samples were analyzed for pH,
 39

temperature, total dissolved solids, turbidity, total hardness, fecal and total

coliform bacteria, fluoride, chloride, nitrate, manganese, and iron. The results

obtained show that most of the 'user perceived' acceptable drinking water quality

parameters were within the World Health Organization (WHO) guidelines for

drinking water quality, based on aesthetic and taste considerations. Only one

dug-well had marginally higher level of total hardness (that is, 220 mg/l of

CaCO3), while four water points had higher turbidity ranging from 8.3 to 64 NTU

when compared with the WHO guidelines. In all the sampled water points, the

level of iron (<0.009 to 1.25 mg/l), manganese (0.10 to 1.50 mg/l), chloride (0.80

to 62.5 mg/l), and nitrate (0.90 to 12.7 mg/l) were within the WHO guidelines.

Fluoride was also found to be below the WHO health based limit (<1.5 mg/l).

However, majority (85.7%) of the water points had detectable levels of total

coliform bacteria (1 to 68 cfu). On the other hand, it was only in 25% of the water

points that fecal coliform bacteria were detected (1 to 10 cfu). This shows that

the bacteriological water quality is of concern as majority of the water points had

detectable levels of coliform bacteria. Therefore, regular chlorination of water

points, particularly dug wells, should continue. Besides, disinfection of water at

the household level can be an added advantage. (Israel Deneke Haylamicheal,

Awdenegest Moges, 2012).

While many of the studies on water utility focused on the sustainability of

water supply, which is indeed most essential, it must not be forgotten that the

operations of the water district is a complex system that manages and tries to
 40

meet all client expectations of being able to supply water at its most efficient

capacity. The core of every organizations success in delivering services lie in its

people: their cultural behaviors, practices, beliefs and the dynamics of these

variables.

Allana, Jeffreya, Clarkeb and Pollarda (2013) conducted study that

determined what particular features of regulation, ownership and management

culture which influence the risk dynamic are, and what are the implications of

these relationships in the context of ambitions for resilient organizations. Using

meta-analytic methods, they were able to meet their research goals. Their study

found out that water utilities are mindful of their choices and must make

adjustments to manage strategic tensions between efficiency, risk and resilience.

Their conclusion noted a gap in understanding of the drivers required for a

paradigm shift within the water sector from a re-active to a pro-active risk

management culture. The researchers proposed a model of the tensions

between reactive risk management and pro-active, adaptive risk management

which are informed by an appreciation of regulation, ownership and business

culture. Such approaches will support water authorities in meeting corporate

aspirations to become ‘high reliability’ services while retaining the capacity to out-

perform financial and service level targets.

The dominant business culture and leadership style innate within a water

utility will shape how the organization chooses to meet or exceed the targets and

objectives set by regulation and other stakeholders. The influence of

 41

organizational culture on business performance and risk has been constantly

gaining ground. For instance, Drew & Kendrick (2005) define culture as one of

their five pillars of corporate governance (along with leadership, alignment,

structure and systems) that are needed for integrated risk management.

Baumgartner (2009) and Rizak & Hrudey (2007) establish that embedding

sustainability and risk management into the culture of an organization can lead to

corporate success. This is consistent with our view that culture and leadership

style influence the risk management strategy of the water utility.

As Stacey (1996) explains, organizations tend to desire known outcomes,

but in order to be innovative they may need to occupy territory that has less

certainty and agreement, and high degrees of epistemic and stochastic

uncertainty. This view is supported by Osborn & Hunt (2007), Tetenbaum (1998)

and Tetenbaum & Laurence (2011) who suggest that in today’s operating

environment, organizations work within complex adaptive systems that force

them into domains of high uncertainty.

By contrast, organizations that are exposed to more regulation and

governance tend to exhibit a more risk averse cultural base that desires greater

certainty around the data used for decision making. Management cultures

provide a bridging function between uncertainty and risk, as demonstrated by the

studies of MacGillivray et al. (2006) and MacGillivray & Pollard (2008) that both

indicated that water companies need to become more risk mature look to

preventative measures by adopting a risk management culture that takes into

 42

account data, uncertainty (stochastic and epistemic), emerging risk, available

finance, in addition to the competency of staff and regulatory objectives which

can be classified as a measured risk management culture.

Useful indicators of such cultures can be found in other sectors. For

example, Laeven & Levine (2009) consider the links between governance,

regulation and risk-taking within the context of the 2008 changes to the banking

system when some private banks were supported by public funding. They found

that risk taking, and the incentives linked to risky activities, are related to both the

ownership and culture of the business. They suggest that institutions that are

controlled by fewer, more powerful, owners will take on more risk compared to

banks that have a greater number of owners with lower stakes and cash flow.

They conclude that regulation can have either a positive or negative effect on

corporate risk, dependent upon the nature of ownership and the working culture

of the organization. In a different context (that of executive board monitoring),

Brick & Chidambaran (2008) also consider the interplay between regulation and

risk-taking. They demonstrate that increased regulation has driven an increase in

board monitoring as evidenced by data gathered between 1996 and 2003. They

conclude that externally imposed regulations can have an impact beyond the

intended specifics of the directives themselves. They provide examples of

regulations that make it more costly for institutions to operate with lower levels of

board monitoring, due to the higher probability of lawsuits being successful as a

 43

result of poor performance. This is both a relevant and powerful example of

regulations influencing behavior, business culture and decision making.

The influence of business culture on risk management strategy and

performance has only partially been explored within the water industry. Summerill

et al. (2010b) considered water safety plans as a move towards a more

preventative risk management approach, and found that organization culture

plays a substantive role in the choices made by utilities with respect to how water

safety planning was implemented. The study identified enabling and blocking

cultural features that impacted the development of consistent water safety plans.

The utilities in this study were self-motivated to produce the plans. However,

time, resource and communication issues occasionally blocked progress. In

contrast, enabling features included strong leadership, continuous improvement,

community (and therefore customer) focus, proactive engagement, competition,

empowerment and competency of the workforce.

Hrudey et al. (2006), Pollard et al. (2004) and Summerill et al. (2010a) all

emphasize the importance of culture on the adoption of specific risk management

strategies and examine why organizations persist with a reactive approach to

water quality failures and water safety planning.

Local Studies

Service quality is a very important aspect of the water and sewerage

industry. Empirical studies have tended to focus on production costs, without

 44

explicitly introducing key dimensions of quality. (Chen Lin, 2005). Its distribution

right at the homes of the citizenry is not as costs are involved in ensuring its

potability, equitable distribution, use and sustainability (R. Colasito). Some study

on local water service quality delivery was addressed in the Philippine Journal of

Development 2009 Volume XXXVI, No. 2. On the supply side, a study indicated

that water service in Metro Manila was inadequate (David and Inocencio 1996).

Two studies (Arellano 1994, David 2000) on the privatization of the Metropolitan

Waterworks and Sewerage Sytem (MWSS) showed that unless some

adjustments were made, the water shortage problem in Metro Manila would

persist. Other studies showed that much of the surface and groundwater in Metro

Manila and the country was already contaminated (Ebarvia 1994, The World

Bank Group 2003).

Another study (Inocencio and David 2001) suggested that the provision of

water for the poor and poor communities could be a potent tool for alleviating

poverty as it could significantly impact health, income and consumption, as well

as gender and social inclusion. One study (Magtibay 2004) indicated that a

portion of the population of the Philippines had shifted its preference from

traditional to alternative sources of drinking water such as water refilling stations.

Madrazo( 2002) pointed out that households without household connections

could only access water from wells, springs, communal faucets, and/or from

small-scale informal providers. Based on another study (ADB 2006) focusing on

water supply as a development goal, by 2015 the Philippines would have rural
 45

water supply for only 77 percent of the rural population. In 2004 overall water

supply coverage for the Philippines was only 85 percent (ADB 2007). On potable

water demand and consumption, two studies (Largo et al. 1998, David et al.

2000) revealed that water pricing significantly affected water demand in the

country. Based on another study (Inocencio et al. 1999) a family of six in the

Philippines usually depended on the potable water lifeline or minimum

consumption block measuring about 10 cubic meters. This implies a substantial

water demand, particularly when viewed against an increasing population. Where

the importance of institutions to the provision of potable water is concerned, one

study (Water and Sanitation Program 2004) suggested that rural water supply

projects with significant investments in capacity and institution building produced

the most sustainable rural water supply.

Realizing the indispensability of potable water, UNICEF as funding

institution and PIDS as implementing agency conducted the study on the local

potable water service delivery. This study was part of a larger research

undertaking entitled “Improving Local Service Delivery for the MDGs in Asia: The

Case of the Philippines,” which was also conducted by the same institutions. The

aforementioned PIDS-UNICEF study on potable water used a framework of

analysis which posited that local service delivery (LSD) is better understood if

viewed from three intertwining components, namely, policy, institutions, and

finance (PIDS-UNICEF 2009). It also stressed that institutional actors at the local

level, including the local government units (LGUs), water districts (WDs), private
 46

sector, and other local potable water service providers. (WSPs), are key players

in the delivery of potable water. This is based on the assumption that these

institutions therefore, are at the forefront of potable water service provision on the

ground and, can deliver more effectively the needed innovative practices and

exercise the political will, if necessary. Because of the framework’s emphasis on

local institutions, the PIDSUNICEF study had to be done in local sites. The

eventual sites selected— where UNICEF had done extensive work—were

Dumaguete City in the Province of Negros Oriental and the municipalities of

Bayugan, Prosperidad, and Sibagat in the Province of Agusan del Sur. Another

criterion was that urbanized Dumaguete City and the generally rural

municipalities of Agusan del Sur would serve contrasting settings for a more

inclusive study. Accessibility, security, and other standard factors were also

considered in choosing these areas for the study.

A model of service delivery for water districts in Southern Mindanao by R.

Colasito is one of the recent study conducted since in Southern Mindanao, water

resource is threatened by land conversion, competition between watershed

protection and use for hydropower generation, irresponsible management of

stakeholders, e.g., mismanagement of its distribution, issues of poor service

delivery and the like. In addition, some water districts are confronted with specific

management issues like discontentment with benefits, unionism, and the like.

Because of these problems encountered and the article presented by the local

paper and on the problems discovered from the PIDS policy notes. Water
 47

Districts, as the sole provider of tap water must therefore intensify efforts in

improving service delivery of this very important public good. The study showed

that the best model that a water district may adopt for an efficient and effective

service delivery is the model generated from internal clients which is

sustainability and transparency. Sustainability refers to the concept of making

use of available resources without compromising the needs of future generations.

Transparency refers to the availability of information to the general public and

clarity about government rules, regulations and decisions. The Asian

Development Bank asserts that transparency in government decision making and

public policy implementation reduces uncertainty and can help inhibit corruption

among public officials. In addition, an article In the Philippine Star (March 25,

2011) mentioned accountability and transparency as keys to good governance.

Then Speaker Feliciano Belmonte Jr. continued further on in saying that

with lack or absence of “understanding of good governance or its indicators,

government officers and leaders will find it difficult to assume their proper role in

the efficient management and use of the country’s resources.” Massive and

continuous information dissemination among all stakeholders must be in place

since the responsibility of ensuring the sustainability of our water resource for

future generations does not merely rest with water districts as the sole distributor

of tap water to our very homes but to everybody. This involves strong policy

pronouncements from the three tiers of Local Government Units (Province/City,

 48

Municipality and Barangay), the LWUA, the DENR and other government and

non-government advocates.

The study showed sustainability as a very important predictor for an

effective and efficient service delivery.

People from all walks of life must understand the need to sustain this very

important resource which is water. Moreover, the program on non-revenue water

must be given prime importance by water districts. It is surely a twin activity of

promoting sustainability. Lesser leaks mean more water for the homes.

Measures adapted by other government agencies in promoting accountability

and transparency must be vigorously pursued by the agencies promoting it (i.e.

CSC, Ombudsman, etc.) in tandem with the water districts. Digital era

governance has come of age. Water districts must pursue a continuous build-up

of its information technology. We are now at a juncture of very demanding and

discriminating clients and improving on how we deliver an excellent service is ad

priori.

As for predictors of effective and efficient service delivery of water

districts, Colasito (2010) of Ateneo de Davao University found that best model

that a water district may adopt for an efficient and effective service delivery is the

model generated from internal clients which is sustainability and transparency.

Sustainability refers to the concept of making use of available resources without

compromising the needs of future generations. Transparency refers to the

 49

availability of information to the general public and clarity about government

rules, regulations and decisions.

Synthesis

The studies of Drew & Kendrick (2005) pointing out the significance of

looking at cultural influences in the effectiveness and efficiency of the delivery of

services of an organization and that of Rizak & Hrudey (2007) that embedding

sustainability and risk management into the culture of an organization can lead to

corporate success. are consistent with the end view that culture and leadership

style influence the risk management strategy of the water utility.

The studies of Stacey (1996), Osborn & Hunt (2007), Tetenbaum (1998),

MacGillivray et al. (2006) and MacGillivray & Pollard (2008) Tetenbaum &

Laurence (2011) speak of the needed ability of organizations to be adaptive,

resilient and steadfast into domains of high uncertainty.

Laeven & Levine (2009), Brick & Chidambaran (2008) and Summerill et al.

(2010) were one in their contention that regulation can have either a positive or

negative effect on corporate risk, dependent upon the nature of ownership and

the working culture of the organization , and that externally imposed regulations

can have an impact beyond the expected outcomes, which are both relevant and

powerful evidence that regulations influence behavior, business culture and

leadership (decision making).

 50

Many researchers have hypothesized that having leaders with individual

competencies that align with their organizational cultures increases productivity

while reducing conflict (Fiedler, 1977; Hersey, Blanchard and Johnson, 1977).

Research on organizational culture is often conducted through in‐depth case

studies of single organizations, using methods such as behavioral observations

and interviews (Schein, 1985; Wilkins, 1983). In addition to this abundance of

qualitative case studies, tools have been developed to quantitatively link

organizational culture to conventional business metrics. Denison and Mishra

(1995) found that four cultural traits, similar to those used in the Competing

Values Framework described below, are predictive of organizational

effectiveness as measured through return on assets and sales growth. Their

research also specifically states that both qualitative case studies as well as

quantitative comparisons provide useful insight in the field of organizational

culture research.

Allana, Jeffreya, Clarkeb and Pollarda (2013) recommended conducting

studies that would aim to provide an understanding of the drivers required for a

paradigm shift within the water sector from a re-active to a pro-active risk

management culture, and that a model of the tensions between reactive risk

management and pro-active, adaptive risk management in view of regulation,

ownership and business culture be constructed.

 51

On the local front, enacted laws and presidential decrees issued and

promulgated over the years have improved not only the quality of service delivery

but more importantly, ensured the continued supply of water. Thus, no problem

has so far arisen from the implementation of such laws. However. Not one of

these laws place emphasis on the importance of organizational culture.

Nonetheless, it is a relief that Colasito (2010) conducted a study which found that

transparency are sustainability are significant predictors of quality service for

clients of water districts.

The studies and literatures reviewed did not demonstrate any presence of

quantitative or qualitative assessment of factors influencing water utilities or any

organizations for that matter, that look into those assessed by using SERVQUAL

and organizational factors such as corporate culture and status of service quality

as probable predictors of effectiveness and efficiency at the same time. The

studies also generally suggests that much remains to be desired in terms of the

number of studies on conducting studies on determining the factors that shape

quality of service delivery in the water utilities sector. This is the gap identified by

the researcher and the impetus behind the conceptualization of this study.

In summary, current thought on the service delivery of water utilities points

to organizational culture and governance practices or leadership as an important

factor in the success of efforts to be effective and efficient in the performance of

their duties and responsibilities of providing safe water supply and wastewater

clearance, but has been under‐researched to date. What little research on

 52

organizational studies and sustainability exist has been largely based on

outdated studies or theoretical frameworks rather than on recent empirical

evidence. Applying a practical, quantitative framework to the issue of quality

service delivery as an outcome of status awareness, corporate culture and sound

governance practices would contribute valuable insight to complement this

existing body of knowledge.

 53

CHAPTER III
METHODOLOGY

This chapter presents research design consistent with the study. It also

includes the duration and locale, population and sampling of participants,

materials and methods for data collection and tools for data analysis.

Research Design

The design of the study is quantitative descriptive non-experimental

evaluative survey. It is quantitative because it attempts to measure the status of

service delivery of the selected water districts, their quality of governance,

corporate culture and levels of efficiency and effectiveness of their delivery of

service, and whether these variables (governance practices and corporate

culture) significantly predict efficiency and effectiveness of the delivery of

services to their clientele. It is descriptive because it will describe characteristics

of a population (local water utilities personnel or phenomenon (service delivery of

of water utilities or districts) being studied. This study is non-experimental

because it will not manipulate or trust any new intervention but will only describe

what exists at the moment. This research will also evaluate or assess the quality

of service delivery, organizational culture, governance practices of the selected

water districts, as well as their effectiveness and efficiency in the delivery of

 54

services. This study is also a survey research because it will collect primary data

based on verbal or written communication from a representative sample of

individuals or respondents from the target population (Leedy, Ormrod,2015).

Sources of Data

Locale of the Study

Among the four provinces comprising Ilocos region, Pangasinan is socio-

economically the fastest –growing and has the biggest population in 2015 with

2.96 million, followed by La Union with 787 thousand, and Ilocos Sur with 690

thousand. Ilocos Norte had the smallest population with 593 thousand based on

2015 census of the Philippine Statistics authority (PSA, 2015). This makes the

province the most ideal locale to conduct this type of study. Specifically, this will

be conducted in the following water districts of the province: Alaminos Water

District, Dagupan City Water District, Manaoag Water District, Urdaneta Water

District, Rosales Water District and Bayambang Water District.

The selection of water districts was rather intently purposive so as to

include municipal (Bayambang, Manaoag, Rosales) and city (Alaminos,

Dagupan, and Urdaneta) local water districts in the province to see any patterns

of management practices. Moreover these water districts are geographically

strategic samples in that they are located in the four corners of the province:

Dagupan (population: 171,271, second most populous in Region 1) and

 55

Manaoag (population: 14,059, plus high volume of daily pilgrim-tourist arrivals,

especially on weekends) in the north, Rosales (population: 58,702) and Urdaneta

(population: 132,940) in the east, Alaminos (Its Poblacion is among the most

populous barangays in Region 1 with 10,302 residents) on the western side of

the province, and Bayambang in the south. All four city-based cater to large

populations, and Bayambang (population: 118,205) also has dense population

being the fifth most populous LGU in Region 1. Rosales is a fast-rising

commercial and trading hub Manaoag is a religious tourist destination and

therefore caters to dense throngs of tourists almost on a regular basis

(http://balita.ph, 2015).
 56

Figure 3
Map of Pangasinan
 57

Population Sampling

Respondents from selected water utilities and their concessionaires shall

be chosen by mixed purposive sampling. This sampling method is non-

probabilistic, where the basis of selection is whether the prospective respondent

best represents the ideal respondent (Leedy, Ormrod, 2015). Specifically,

stratified purposive sampling will be used to determine how many samples will be

tapped from each water district, and then random purposeful sampling will be

used to select respondents from each water district and concessionaire, to

ensure that every level of each water district and the concessionaire is well

represented and that perceptions from the management to the rank and file

positions would be captured effectively.

The sampling method will require a sampling frame from each water

district, which is the list of all employees in each of the six water districts.

Total Number of employees from selected water districts in Pangasinan

WATER DISTRICT NO. OF EMPLOYEES

Alaminos
Bayambang
Dagupan
Manaoag
Urdaneta
Rosales
Total
 58

WATER DISTRICT NO. OF CONCESSIONAIRES

Alaminos
Bayambang
Dagupan
Manaoag
Urdaneta
Rosales
Total

The same system of recruitment of respondents shall be done among the

concessionaires of the selected water utilities, who are also employed in

government offices.

Instrumentation and Data Collection

A researcher-developed survey questionnaire will be used to collect data

from the target respondents. This instrument will be most convenient in collecting

data and information from the respondents. The survey questionnaire was

designed as a checklist-type for faster and more convenient means of selecting

appropriate responses. It has five sections: (1) Personal background of the

respondents: (2) status of service delivery; (3) good governance practices, (4)

corporate culture; (5) level of efficiency and effectiveness of service delivery.

The personal background inventory section is a demographic part that will

generate general information about the respondents on age, sex, monthly

income, years of employment, current position/title and rank. This is to enable the
 59

researcher in getting a better understanding of the type of respondents and relate

it to how they perceive service quality in water districts.

The items on assessing the status of service quality will use the

standardized parameters of SERVQUAL as basis, which is an instrument that is

designed to capture clients ‘expectations and perceptions of a service (in this

paper, referring to service delivery of water districts) along five of the seven

dimensions: tangibles, assurance, responsiveness, empathy and

responsiveness. Communication and knowledge will not be measured as these

have low reliability (Parasumaran, et al, 1988).

The SERVQUAL 5 dimensions (Tangibles, Reliability, Responsiveness,

Assurance, and Empathy) which are subdivided into 22 statements, which were

directed to measuring service quality of water districts. As stipulated by the

SERVQUAL model, the statements are divided into two parts, the first part seeks

to measure the expectations of customers and the second part seeks to measure

their perceptions. The dimensions will be answered using a seven-point Likert

scale.

Good governance practices, corporate culture and levels of effectiveness

and efficiency shall be answered by the respondents using a five-point Likert

Scale.

The researcher’s adviser along with two other experts will validate the

instrument for content.

 60

Reliability of the instrument will be tested using internal consistency

method. To gauge the reliability of the instrument, a pilot test will be performed

recruiting 15 employees from San Carlos City Water District (SCCWD). The

same number of external clients will be sampled from the concessionaires of

SCCWD as well.

A letter addressed to the Dean of the Graduate School asking permission

to conduct the survey was drafted and signed with recommending approval of the

researcher’s adviser. Letters of request seeking approval to conduct survey

among the workforce of the selected water district offices will be addressed to

their respective administrators or general managers. All the letters were noted

by the researcher’s adviser.

Upon approval of the request for conduct of survey, the researcher will

request a list of all members of the workforce per water district and from there,

randomly select the required number of respondents to whom questionnaires

shall be distributed.

In case of the absence of the name randomly picked, replacement by

random drawing of lots was done. All selected willing respondents shall be

gathered in one room and shall be oriented about the objectives of the research

and questions about other related concerns shall be answered.

The same system shall be done among external clients.

 61

Only after all questions regarding participation from the survey were

satisfied will the researcher not waste time and shall commence with the data

collection proper right away.

To further ensure high retrieval rate, the respondent shall personally

distribute the instruments, and collect the same personally on the same day after

the respondents accomplish the instrument.

Tools for Data Analysis

The formula of computing percentage is:

% = f/n X 100

Where: % = statistic

F = frequency of the observation

N = number of observation

100 = constant

Weighted Mean will be used to evaluate the status of service delivery,

governance practices, corporate culture and the levels of efficiency.

Weighted mean is computer using the formula:

WM = ͛wx/Ew

Where:

= summation of an observation
 62

W = weight of the observation

X = sample value or observation

The computed weighted mean values will be ranked to provide a more in-

depth interpretation. The interpretation of the weighted mean of responses is as

follows.

Five-point Likert Scale to evaluate status of service delivery:

Numerical Rating Statistical Limits Descriptive Evaluation
5 4.20 – 5.00 Excellent
4 3.40 – 4.19 Satisfactory
3 2.60 – 3.39 Fair
2 1.80 – 2.59 Poor
1 1.00 – 1.79 Very Poor

Five-point Likert Scale to evaluate good governance practices:

Numerical Rating Statistical Limits Descriptive Evaluation
5 4.20 – 4.00 Predominantly practiced/ Always manifested
4 3.40 – 4.19 Frequently manifested/Often practiced
3 2.60 – 3.39 Existent but occasionally
manifested/Sometimes practiced
2 1.80 – 2.59 Existent but rarely practiced
1 1.00 – 1.79 Non-existent/not practiced
 63

Five-point Likert Scale to evaluate efficiency and effectiveness:

Numerical Rating Statistical Limits
1 1.00 – 1.79
2 1.80 – 2.59
3 2.60 – 3.39
4 3.40 – 4.19
5 4.20 – 5.00
Descriptive Evaluation
Very Ineffective/Inefficient
Ineffective/Inefficient
Neutral/No comment
Effective/Efficient
Very Effective/Very Efficient

Corporate culture shall be determined using the criteria based on the

characterization of the four types of cultures according to the study of Cameron

and Quinn (1999). The characteristics of each culture were scattered in the set of

qualities that respondents will have to choose from based on their perceptions,

and, after the weighted mean per cluster is determined for behaviour patterns,

these shall be rated as follows:

Five-point Likert Scale to evaluate corporate practices in terms of common

behavior patterns:
Numerical Rating Statistical Limits Descriptive Evaluation
5 4.20 – 5.00 Predominantly practiced/ Always manifested

4 3.40 – 4.19 Frequently manifested/Often practiced

3 2.60 – 3.39 Occasionally manifested/Sometimes practiced

2 1.80 – 2.59 Rarely manifested/ Seldom practiced

1 1.00 – 1.79 Non-existent/not practiced

 64

Ranking will be the mode of analysis for personal attitudes and

assumptions, and also for values and beliefs.

Multivariate Analysis of Variance (MANOVA) will be used to determine the

significant difference in the perception of internal and external clients of water

districts on efficient and effective service delivery. The advantage of a

multivariate test, in contrast to univariate tests, is not only does it include

correlations between the dependent variables which make the analysis more

informative and reflective of relationships among variables in nature, but it also

reduces the inflation in type I error. The discriminated function was used in

classifying respondents to determine if it could improve on the 50% probability by

chance alone.

To determine if status of service delivery, good governance practices and

corporate culture are significant predictors of service quality in terms of efficiency

and effectiveness, multiple linear regression will be used. Each group of

respondents (internal and external) was split into two groups: the actual group

which was used to construct a model and the holdout group which was used to

validate the regression model extracted from the actual group.

Stepwise method was chosen to select statistically significant predictors of

effective and efficient service delivery among the independent variables to

generate a regression model. In the stepwise method, the partial correlation of

each independent variable was evaluated one at a time. Only those that had

statistically significant partial correlations will be included in the regression model

 65

and the remaining variables that had no statistically significant partial correlations

were excluded. The regression model generated by the actual group will be

cross-validated by computing the predicted scores in the holdout group using the

regression coefficients produced by the actual group and correlating them to the

observed scores of the holdout group.

The formula is:

y = β0 + β1x1 + β2x2 + ··· βkxk + ε

where:
y = observed score on the dependent or outcome variable
β0 = the intercept
β1 = slope
x = observed score
ε = error or residual
A statistical software shall be used to facilitate the analyses of statistical

data. This will ensure fast, efficient and accurate analyses of data.
 66

BIBLIOGRAPHY
A. BOOKS

Henslin, James (2002). Essnrtials of Sociology: a down-to-earth approach.

Massachusetts, USA: Allyn and Bacon

Leedy, P.D., Ormrod , J.E. (2015) Practical research: planning and design.
Essex, England: Pearson Education Limited

Recio DM, Mejico, MF, Anonuevo, CA. (2004) Human Behavior: from the
disciplines of anthropology, psycvhology and sociology. Mandaluyong
City: Books Atbp Inc.

B. JOURNALS

Abbett, Liz; Coldham, Anna; Whisnant, Ryan (2010). Organizational culture and
the success of corporate sustainability initiatives: An empirical analysis
using the Competing Values Framework

Allana, Richard, Jeffreya, Paul, Clarkeb , Martin, Pollarda, Simon (2013). The
impact of regulation, ownership and business culture on managing
corporate risk within the water industry. Water Policy, Volume 15, Number
3, 2013, Pages 458–478Ð

Brick, I. E., Chidambaran, N. K. (2008). Board monitoring, firm risk and external
regulation. Journal of Regulatory Economics, 33 (1), 87–116.

Drew, S. A. W., Kendrick, T. (2005). Risk management: The five pillars of

corporate governance. Journal of General Management, 31 (2), 19–36.

Laeven, L., Levine, R. (2009). Bank governance, regulation and risk taking.
Journal of Financial Economics, 93 (2), 259–275.

Macgillivray, B. H., Hamilton, P. D., Strutt, J. E. & Pollard, S. J. T. (2006). Risk

analysis strategies in the water utility sector: An inventory of applications
for better and more credible decision making. Critical Reviews in
Environmental Science and Technology, 36 (2), 85–139.

Macgillivray, B. H., Pollard, S. J. T. (2008). What can water utilities do to improve

risk management within their business functions? An improved tool and
application of process benchmarking. Environment International, 34 (8),
1120–1131.
 67

Ogutu, James Modi (2010). A survey of corporate governance practices in the

water sector in Kenya. Retrieved on April 23 2018 from
http://erepository.uonbi.ac.ke/bitstream/handle/11295/6011/Ogutu_A%20s
urvey%20of%20corporate%20governance%20practices%20in%20the%20
water%20sector%20in%20Kenya.pdf?sequence=1
Osborn, R. N. & Hunt, J. G. (2007). Leadership and the choice of order:
Complexity and hierarchical perspectives near the edge of chaos.
Leadership Quarterly, 18 (4), 319–340.

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multiple-

item scale for measuring consumer perceptions of service quality, Journal
of Retailing, Vol. 64, Number 1, p.12-40.

Rizak, S., Hrudey, S. E. (2007). Achieving safe drinking water: Risk management
based on experience and reality. Environmental Reviews, 15 (1), 169–
174.

Stacey, R. (1996). Emerging strategies for a chaotic environment. Long Range

Planning, 29 (2), 182–189.

Summerill, C., Smith, J., Webster, J. & Pollard, S. (2010b). An international

review of the challenges associated with securing ‘buy-in’ for water safety
plans within providers of drinking water supplies. Journal of Water and
Health, 8 (2), 387–398.

Tetenbaum, T. J. (1998). Shifting paradigms: From Newton to chaos.

Organizational Dynamics, 26 (4), 21–32.

Tetenbaum, T. & Laurence, H. (2011). Leading in the chaos of the 21st century.
Journal of Leadership Studies, 4 (4), 41–49.

C. UNPUBLISHED RESEARCH

Colasito, Rosalinda R. (2010). A model of service delivery for water districts in

southern Mindanao. Retrieved on March 28 2018 from
http://nap.psa.gov.ph/ru11/MSC/pdf%20of%20papers/colasito.pdf
 68

D. OTHERS

Boad, Fidel H. Cuéllar. Corporate Governance in water and sanitation

enterprises. Inter-American Development Bank Infrastructure and
Environment Sector Technical Note No. 106. Retrieved April 12 2018 from
https://publications.iadb.org/bitstream/handle/11319/5420/corporategovern
anceinwaterandsanitationenterprises.pdf?sequence=1
Cameron, K. S., & Quinn, R. E. (1999). Diagnosing and changing organizational
culture: Based on the competing values framework. Reading, MA:
Addison-Wesley. Retrieved on April 21, 2018 from
hangingminds.org/explanations/culture/competing_values.htm

Competing Values Framework. Retrieved April 24, 2018 from

https://www.12manage.com/register.asp?PG=methods_quinn_competing_
values_framework.html&RS=mhd2&LC=menu_ge

Corporate Governance Guidelines for the Water Services Sector. Water Services
Regulatory Board. Retrieved on April 13, 2018 from
http://www.waterfund.go.ke/toolkit/Downloads/4.%20Corporate%20Gover
nance%20Guideline.pdf

de Asís, María González, O’Leary, Dolnal; Ljung, Per; Butterworth, John (2017).
Improving transparency, integrity, and accountability in water supply and
sanitation action, learning, experiences. Retrieved April 16 2018 from
https://www.oecd.org/env/outreach/44475062.pdf
Good Governance in the Public Sector— Consultation Draft for an International
Framework. (2013). Consultation draft. Chartered Institute of Public
Finance and Accountancy (CIPFA) and the International Federation of
Accountants (IFAC). Retrieved April 15 2018 from
http://www.ifac.org/system/files/publications/files/Good-Governance-in-
the-Public-Sector.pdf
Jacobson, Maria; Mutono, Sam; Nielsen, Erik; O’Leary, Donal; Rop, Rosemary
(2013). Promoting transparency, integrity and accountability in the water
and sanitation sector in Uganda. Retrieved April 12, 2018 from
https://openknowledge.worldbank.org/bitstream/handle/10986/27925/6350
10WP0Promo00Box0361517B0PUBLIC0.pdf?sequence=1&isAllowed=y

Local Government Code (Philippines). Retrieved February 12, 2018 from

http://www.chanrobles.com/index1.htm
 69

Macob, JM. (2015). More tourists are visiting Pangasinan now. Retrieved April 2,
2018 from http://balita.ph/2015/06/16/more-tourists-are-visiting-
pangasinan-now/

Measuring Service Quality Using SERVQUAL. Retrieved on April 21, 2018 from
http://www.kinesis-cem.com/pdf/ServQual.pdf

Multiple linear regression. Laerd Statistics. Retrieved on April 2 2018 from

https://statistics.laerd.com/spss-tutorials/multiple-regression-using-spss-
statistics.php

Organization for Economic Cooperation and Development (OECD) (2015).

Principles on Water Governance. Directorate for Public Governance and
Territorial Development Welcomed by Ministers at the OECD Ministerial
Council Meeting on 4 June 2015. Retrieved Apri l14 2018 from
ttps://www.oecd.org/cfe/regional-policy/OECD-Principles-on-Water-
Governance-brochure.pdf
Organizational Culture Types. OCAI online. Retrieved April 23, 2018 from
https://www.ocai-online.com/about-the-Organizational-Culture-
Assessment-Instrument-OCAI/Organizational-Culture-Types/

Population of Region I - Ilocos Region (Based on the 2015 Census of

Population). Retrieved from https://psa.gov.ph/content/population-region-
i-ilocos-region-based-2015-census-population

Presidential Decree (PD) 198 or the Provincial Water Utilities Act of 1973.
Retrieved February 12, 2018 from http://www.chanrobles.com/index1.htm

Presidential Decree (PD) 424 of 1974 creating the National Water Resources
Council, now known as National Water Resources Board (NWRB).
Retrieved February 12, 2018 from http://www.chanrobles.com/index1.htm

Presidential Decree 198 of 1973 creating the Local Water Utilities Administration.
Retrieved February 12, 2018 from http://www.chanrobles.com/index1.htm

Republic Act No. 6975. Retrieved February 12, 2018 from

http://www.chanrobles.com/index1.htm

Sanford V. Berg. Good Governance for State-Owned Water Utilities. Retrieved

April 13, 2018 from
http://warrington.ufl.edu/centers/purc/purcdocs/papers/1314_Berg_Good_
Governance_For.pdf
 70

World Health Organization (2000). Global Water Supply and Sanitation

Assessment. 2000 Report. Retrieved November 15, 2006 from
http://www.who.Int/watersanitationhealth/monitoring/rmp2000.pdf
 71

Appendix A

Request Letter

__________, 2018

Dear Respondent,

The undersigned researcher is presently working on his dissertation

entitled “SERVICE DELIVERY OF WATER DISTRICTS IN PANGASINAN:
BASIS FOR DEVELOPMENT MODEL” as a partial requirement of his candidacy
foe Doctor of Business Administration this Academic Year 2017-2018.
In this regard, is, he needs to survey employees from water districts and
their concessionaires from government offices from the managerial down to the
rank and file level.
You have been one of those randomly selected in your work station.
Should you agree to participate in this study, you will be answering a set of
questionnaire and thus will take about 5 minutes of your time.
Rest assured that all the information you will share will be kept in strict
confidence, and shall be used solely for the purpose of this research.
Thank you in anticipation of your prompt affirmative reply.

Respectfully yours,

Aaron R. Manamtam Jr., MBA

Ph.D. Student

Noted:

PEDRO F. SISON JR., DBA, CPA

Research Adviser
 72

Appendix B
QUESTIONNAIRE

Direction: Answer the questions below by providing the needed data/ information.
I. PERSONAL INFORMATION
Name (optional): ______________________________________________________
Birthdate: ______________
Surname First Middle Initial
(mm/dd/yy)

Address:
______________________________________________________________________
No. Street Name Sitio Barangay
Municipality/City

Sex: _____ Female _____ Male Landline/Cellular phone Number: _________

Name of current employer and address:

_____________________________________________________________

_____________________________________________________________

I. STATUS OF SERVICE DELIVERY

Direction: Rate the following behavioral patterns you perceive to be most evident
among the following desirable governance practices in your organization by ticking the
corresponding box, using the following scale as basis:
Rating Descriptive Evaluation
1 Very poor
2 Poor
3 Fair
4 Satisfactory
5 Excellent
 73

Parameters of Status of Service Delivery RATING

1 2 3 4 5
Tangibles
1. Employees’ dignified look in their uniform
2. Courtesy of employees to clients and other stakeholders
3. Public perception of quality of service delivery

RATING
1 2 3 4 5
Reliability
1. Hotline numbers available and fully functional
2. Complaints desk in place and fully functional
3. Professional, sincere and caring attitude of employees to other
stakeholders from all walks of life
Responsiveness
1. Fast completion of maintenance works.
2. Attending to maintenance and repair needs of clientele.
3. Short waiting time for completion of repair and maintenance works

Assurance
1. Quality of infrastructure works
2. Technical skills and knowhow of field workers

3. Adequacy of continuing training of skilled workers

Empathy
1. Attending employee show of sincerity in knowing the client’s name

2. Unique, individualized treatment of client’s needs and preferences

3. Efficient system of attending to client needs as evidenced by
adequate and comfortable lounge facilities

II. GOOD GOVERNANCE PRACTICES

Direction: Rate the following aspects you perceive to be most evident among the
following desirable governance practices in your organization by ticking the
corresponding box, using the following scale as basis:
Rating Descriptive Evaluation
1 Non-existent/not practiced
2 Existent but rarely manifested/ Seldom practiced
3 Existent but occasionally manifested/Sometimes practiced
4 Frequently manifested/Often practiced
5 Predominantly practiced/ Always manifested
 74

Parameters of Status of Service Delivery RATING

1 2 3 4 5
Transparency
1. Timely submission and publication of periodic reports
2. Involvement of consumers at different stages in the life cycle of the
service (including technology selection)
3. Citizen’s charter are posted in conspicuous area of the water district
premises, showing procedural steps in doing transactions in the
district office.
RATING
1 2 3 4 5
Accountability
1. Planning is always with the aim of full coverage and to be directed
by clear national policy and prioritization.
2. All stakeholder especially consumers have access to information

3. Monitoring and regulatory instruments are in place to ensure

accountability against an agreed set of indicators
Participation
1. Existence of systems and participatory mechanisms that allow for
engagement between stakeholders and officials.
2. Community members, as stakeholders of the water district, partake
in the development of policy to decision making (informed choice).
3. Community members are given active formal role in the
implementation, monitoring and evaluation of infrastructure projects
of the water district.
Predictability
1. Systematic and contingency planning and inventory updates for
assets are carried out
2. Support to service authorities and service providers are available
and existent
3. Financial forecasting are conducted at least annually.

Sustainability
1. Monitoring systems track indicators of infrastructure functionality
and levels of service delivered against nationally agreed norms and
standards
2. Monitoring systems track indicators of service provider performance
and levels of service delivered against nationally agreed norms and
standards.
3. Adequate resources made available for monitoring, information
gathering, research and innovation (including technology and
management arrangements)
 75

III. CORPORATE CULTURE

IV-A. Common Behavior Pattern
Direction: Rate the following behavioral patterns you perceive to be most evident among
the following cultural attributes in your organization by ticking the corresponding box,
using the following scale as basis:
Rating Descriptive Interpretation
1 Non-existent/not practiced
2 Rarely manifested/ Seldom practiced
3 Occasionally manifested/Sometimes practiced
4 Frequently manifested/Often practiced
5 Predominantly practiced/ Always manifested
Behavior Pattern RATING
1 2 3 4 5
1. The water district is aggressive in keeping abreast with trends in service
delivery and innovations in the water utility sector (Aggressiveness)
2. All employees do their share in attaining a common goal for the
district.(Teamwork)
3. The organization would rather take business risks than play safe. (Risk-
taking)
4. The water district provides exactly what the customer
expects. (Predictability)
5. The management involves all stakeholders in making decisions.
(Participation)
6. The district is open to try new ideas or strategies. (Creativity)
7. The district is able to learn from experiences and improves in the process
(Adaptability)
8. The district is able to provide products and services as or more effectively
and efficiently than water utilities in the area. (Competitiveness)
9. The water district always try to meet standards in terms of services
delivery. (Conformity)
10. The district regularly conducts strategic and/or development plans and
updates these plans (Planning)
11. The management sees to it that end-goals are met by completing tasks
on schedule. (Focus on tasks)
12. The district defines goals for its future directions in serving tis clientele
(Goal-setting)
13. All employees are actively involved in all activities of the utility.
(Employee involvement)
14. The management has mechanisms that allow grievances and concerns to
be aired through proper channels (Open communication)
15. The utility is sensitive to the needs of its clientele by keeping itself abreast
with the latest trends in the industry by benchmarking with other water
utilities (Gathering customer and competitor/neighboring utility
information)
 76

IV – B. Organizational Values and Beliefs

Direction: For each lettered cluster, rank the following beliefs and values based on what
you perceive as the most important (‘1’) to the second most important (‘2’), and so on.

A. _____ People behave appropriately when they have trust in, loyalty to, and
membership in the water district.
_____ People behave appropriately when they understand the importance and
impact of task.
_____ People behave appropriately when they have clear objectives and are
rewarded based on their
achievements
_____ People behave appropriately when they have clear roles, and procedures
are formally defined by rules
and regulations

B. _____ Achievement (The need to excel and prove one’s worth)

_____ Affiliation (feeling of belongingness to the organization)
_____ Autonomy (independence and self-sufficiency)
_____ Communication

C. _____ Attachment
_____ Attention to detail (meticulous in ensuring quality of service delivery all the
time)
_____ Communication (Open communication between the management and the
rank and file employees)
_____ Consistency (Being steadfast and firm in policies)

D. _____ Competence
_____ Collaboration (the need to work with others)
_____ Growth (need to professionally grow in the organization)
_____ Formalization (Everything follows certain sets of rules all the time)

E. _____ Productivity (no one must be idle)

_____ Support (management provides financial, emotional, psychological and
other needs of its employees)
_____ Routinization (there is a predictable, unchanging sets of rules and
procedures being followed)
_____ Variety (importance of diversity of work and/or roles to avoid boredom and
procrastination)
 77

F. _____ Competition (existence of competitors is good, or keeping track of the

constant innovation in services of the neighboring water district is good because
it will prevent complacency)
_____ Stimulation (provision of motivations to work and achieve)
_____ Trust (confidence and belief of the management in the ability, competence
and skills of its employees)
_____ Acknowledgment or appreciation of the management of an employee’s
accomplishment

IV-C. Personal attitudes and Assumptions

Direction: Rank the following personal attitudes and assumptions based on what you
perceive as the most important (1) to the second most important (2), and so on.

Personal Attitudes and Assumptions:

_____ Achievement (Management’s recognition of employees’ efforts)
_____ Change (Implementation of reforms in the organization)
_____ Human affiliation (‘Pakikisama’ at ‘samahan’)
_____ Stability (Katatagan ng organisasyon’)

IV.Level of Efficiency and Effectiveness

Direction: Rate the level of efficiency and effectiveness of your water district along the
eight aspects in the table below using the following rating:
Rating Descriptive Value
1 Very Ineffective/Inefficient
2 Ineffective/Inefficient
3 Neutral/No comment
4 Effective/Efficient
6 Very Effective/Efficient
Parameters RATING
1 2 3 4 5
Non-revenue water
1. The water district personnel are able to minimize losses by apprehending
theft by using illegal tapping/connections or meter tampering.
2. The water district personnel are able to minimize physical losses by
preventing leaks through constant monitoring and regular
maintenance.
3. The water district conducts public education/awareness campaigns on
reporting illegal connections as reflected by very low to zero losses charge
in the monthly billing.
RATING
1 2 3 4 5
Water Resource Management
1. Coordination of the district with government agencies regarding land use
during pipe-laying and other related waterworks.
2. Support for and active role in the protection of water sources in place
 78

3. Routine inspection/monitoring and evaluation of infrastructure

Complaints management
1. The district is able to respond to complaints within one week from receipt
of complaint
2. Concerned units of the district informed of the complaint within the same
day the complains was received
3. The district keeps records of complaints and use them as basis for
improvement of services
Billings and collection
1. Issuance of billing notices/receipts as soon as reading is done
2. Keeping the volume of tardy payments to a minimum
3. Ability to meet monthly target collection
Management Skills
1. The management is able to motivate all employees through promotions,
remunerations and compensation packages.
2. Empowerment of employees in taking ownership of projects.
3. Appreciation of employee accomplishments through rewards and
incentives
Board of Directors Involvement (BOD)
1. The BOD approves annual budgets and often approves departmental and
activity budgets based on the recommendations of its committees or its
paid management
2. Prompt amendment and approval of bylaws to allow the water district to
lobby legislatures and respond better to the needs of the clientele and of
the internal organization
3. Establishes a governance system that enables maintenance of a healthy
relationship with the district’s general manger
Information Technology
1. Use of information technology in providing customer support
2. Use of IT to facilitate more efficient service to clientele
3. Use of IT to facilitate faster, and more convenient flow of operations in the
district.
Public Relations
1. Maintains programs that engage the district in community development
activities other than those related to water service delivery.
2. Maintains positive regard with government offices as regards compliance
with laws, ordinances and the like
3. Publication of quarterly reports, press releases and regulatory disclosures

Thank you for your cooperation and participation.

 79

CURRICULUM VITAE