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 ASSIGNMENT SOLUTIONS GUIDE (2015-2016)
M.P.A.-13
Public System Management
Disclaimer/Special Note: These are just the sample of the Answers/Solutions to some of the Questions given in the

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Assignments. These Sample Answers/Solutions are prepared by Private Teacher/Tutors/Authors for the help and guidance
of the student to get an idea of how he/she can answer the Questions given the Assignments. We do not claim 100%
accuracy of these sample answers as these are based on the knowledge and capability of Private Teacher/Tutor. Sample

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answers may be seen as the Guide/Help for the reference to prepare the answers of the Questions given in the assignment.
As these solutions and answers are prepared by the private teacher/tutor so the chances of error or mistake cannot be
denied. Any Omission or Error is highly regretted though every care has been taken while preparing these Sample Answers/

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Solutions. Please consult your own Teacher/Tutor before you prepare a Particular Answer and for up-to-date and exact
information, data and solution. Student should must read and refer the official study material provided by the university.

This Assignment consists of Section-I and Section-II. There are five questions in each Section. You have to

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answer a total of five questions in about 500 words each, selecting at least two questions from each section.
Each questions carries 20 marks.
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Q. 1. Write a note on the nature and scope of public systems management.
Ans. Public Systems Management focuses on the functioning of instutitional systems in which public policies
are framed and executed. Over a period of time the public systems have undergone a change in all aspects of
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planning, financing, strategizing to improve public partnership for improved service delivery. The area of public
systems encompasses all government departments concerned with services and infrastructure. Public systems area
was exclusively concerned with the role and functions of government in policy-making and its implementation,
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which has undergone considerable change in recent years. While traditional theory has typically defined the role of
government as providing public goods and services newer approaches have been drawn up from institutional, eco-
nomic and organi-zational analysis.
Nature of Public Systems Management
As we say the only constant in this world is change. Therefore, any system to retain its core has to undergo
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constant change to fit in the ever-changing world. Similarly, there has been constant evolution of different system
such as political and administrative keeping in mind the best interest of the public. Public Systems Management has
been defined by many as “Administration and Manage-ment of both direct and indirect institutions engaged in the
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public policy-making exercise and in delivery of public services”. The core areas of PSM are on results, efficiency
and quantification.
With respect to governance, it lays focus on:
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(i) Ensuring the government plays a less active role in day-to-day functioning.
(ii) More emphasis on the results.
(iii) Keeping the requirements of customers in mind.
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(iv) Putting market mechanisms in place in those areas which cannot be privatised.
Present day governments believe in result based government and this requires a professional working atmosphere
in place. This can be achieved when there is accountability and responsibility. Performance improves when there is
an incentive as in the case of corporate sector. Therefore, the scope of public systems management includes:
(i) Importance should be given to the end result rather than to the means of achieving the result.
(ii) Putting itself through competition so that high standards of quality are maintained at all times.
(iii) The public administrations core focus has to be the customer always.
(iv) Taking help of other non-government organisations etc. to implement the organisations policies successfully.
(v) De-regulating government activities to make it goal focused.
(vi) Give authority and responsibility to its work force to ensure coordination.
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 (vii) Moveover from traditional methods of working and adapt to the changes taking place and also be prepared
with the future in mind.
(viii) Bring in a culture of corporate world where importance is given to performance, evaluation, autonomy to
the organisation.
The basic concerns pointed out by Kettle (2002) that New Public Management initiatives look into are:
(i) Productivity: How can the government ensure more production per person while minimising costs?
(ii) Marketisation: This aims at bringing the market forces into the organisational set up and aiming to do away
with the bureaucratic maladies.
(iii) Service-orientation: This aims at keeping the consumer the focal point and ensuring the service provided
to him is in sync what has been promised.

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(iv) Decentralisation: The people coming in direct contact with the general public should be given the authority
to use their decision-making for the benefit of those people.
Q. 3. Highlight the contextual uses of governance.

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Ans. Rhodes grapples with the significance and definitions of “governance” as a way to explicate the trends and
form of British Government reform since the 1980’s. Rhodes reviews and critiques various definitions of ‘gover-
nance.’ And find these inadequate in explaining the new governing structure that had developed in Britain by 1995.

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Rhodes begins by identifying two generally accepted and understood governing structures (1) hierarchies, namely
government bureaucracies, and (2) markets, the rallying cry of privatization advocates in the 1980’s. Rhodes,
however, finds these lacking in explanatory power and adds a third one, networks, which he recasts as “governance,”

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and posits as an alternative conception of contemporary governing structure in Britain. Before arriving at his defi-
nition of governance as “self-organizing networks,” Rhodes evaluates different strands of literature assessing gov-
ernment reform and governance in order to arrive at a critical assessment of how the term “governance” may contrib-
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ute to our understanding of the current working of governments as they become increasingly embedded in network
relationships in order to provide services to the public.
● Governance as minimal state, Rhodes argues, embodies the ideological and political call for downsizing the
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state.
● Governance as corporate governance focuses our attention on the policy-making, goal-setting role of government
and sets the requirement for transparency and public accountability.
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● Governance as New Public Management (NPM), Rhodes argues follows closely from the above criteria and
develops a notion of government directing or “steering” action by structuring the market, which takes over the actual
service provision or the “rowing” function.
● Governance as Good Governance, as advanced by the World Bank “marries new public management to the
advocacy of liberal democracy.”
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● Governance as a socio-cybernetic system can be conceptualized as the effects of the interactions among
government, social, political and economic actors wherein no one actor has a monopoly over information or expertise.
In other words, the public may set broad goals and create a regulatory framework but as actors interact within this
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institutional environment, they work in and reshape the network of relations to solve problems.
● Governance as self-organizing networks is related to the above form of governance in that it focuses on
governance as referring to networks in which private, non-profit, and public individuals and organizations interact to
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provide public services. However, the focus here is on the autonomous character of these networks as deregulation
and alternative service provision mechanisms increasingly debilitate the ability of government to steer.
In order to distance his conception of governance from NPM and refute its applicability to inter-organizational
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networks, Rhodes highlights four ways in which it fails to capture the characteristics of contemporary government
structure:
(i) NPM’s focus is within the organization instead of managing outside linkages.
(ii) NPM concentrates on objectives instead of on the importance of maintaining relationships and trust.
(iii) NPM highlights results while Rhodes’ model reveals a possible breakdown in public accountability.
(iv) NPM’s emphasis on competition does not fit with the imperatives of steering inherent to a network model.
Definitions of governance as a socio-cybernetic system, or as self-organizing networks then are closest to Rhodes
conception of governance. In this model no single actor, including government, has all the knowledge, tools, or
power to either dominate or to make policy work. “The task of government is to enable socio-political interactions”
and to manage relationships of trust and cooperation within a network. Government becomes something broader -
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‘governance’–when it provides services through outside organizational patterns. Finally, he suggests that networks
to provide services are self-organizing, and that these “integrated networks resist government steering, develop their
own policies and mold their environments.”
This emerging governing structure, however, Rhodes postulates, poses serious challenges to accountability and
governability, particularly within the context of representative democracies. The fragmen-tation and decentralization
of service delivery reduces the government’s control over implementation and its ability to coordinate and steer the
networks. Worryingly, the complexity of these relationships also erodes responsibility and accountability since
outcomes are the product of multiple actors. To address some of these concerns Rhodes suggests tools of
intergovernmental management to strengthen communication and facilitate problem solving between different branches
of government. At best these efforts may help the problems of coordination and steering but cannot address issues

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of democratic accountability. Rhodes cautions that the policy networks he has identified may both shut out the
public and be resistant to central guidance, “becoming the prime example of governing without Government.”
Q. 5. Discuss the various models of intergovernmental relations.

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Ans. Meaning and Importance of Inter Governmental Relations: The term Inter Governmental Relations
(IGRs) literally means the relationship between different governmental organisations.
The major characteristics of IGRs are:

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(i) The units which come under the IGRs in India are the union government, state governments, municipal
corporations, municipal committees, cantonment boards, zila parishads, panchayat samities, gram panchayats etc.
(ii) The IGRs aim at responsible and answerable behaviours from the governmental officials involved in the

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process.
(iii) The IGRs aim at continual interaction to improve the governing process.
(iv) The interaction amongst all governmental actors, whether elected or appointed to contribute towards improving
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the process of governance.
Models of Inter Governmental Relations:
(i) Inclusive Authority Model: In this model, the state and local governments depends solely on decisions
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arrived at by the union government.This model represents a centralized system where the union government is very
powerful and the state and local governments are extensions of a powerful union government.
(ii) Coordinate Authority Model: This refers to an autonomous relationship between the union and the state
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with respect to power and control.

(iii) Overlapping Authority Model: In this model, each unit has limited area of autonomy. The union, state and
local governments try to cooperate with each other. This model describes IGRs as patterned interdependent and
bargained behaviours among all the three units.
All the three models can be pictorially depicted as:
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(i) Inclusive Authority Model

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Union Government
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State Government
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Local
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 (ii) Co-ordinate Authority Model

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(iii) Overlapping Authority Model

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State

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Union
Government Government
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Local
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U–Union Government
S–State Government
L–Local Government
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The constitution of India provides for a three tier governance with the Union Government, state government and
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local governments operating in urban and rural areas. The constitution also provides for the division of powers
between the centre and states and thirdly, over constitution which is written, rigid and supreme and clearly demarcates
the division of power between the governments at enter and state levels. The constitution provides for an independent
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and impartial judiciary which acts as a guardian of the constitution and has the power to interpret it.
SECTION-II
Q. 6. Explain the concept and steps involved in zero based budgeting.
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Ans. Budgets are statements of estimated resources set apart for execution of planned works or activities over a
specified period of time. A budget is the blue- print of the outcome of the organization’s operations in a financial
year. Budget indicates the quantitative parameters of an organization’s performance. Terry has defined budgetary
control “as a process of finding out what is being done and comparing the result with corresponding budget data to
verify accomplishments, or to remedy differences.”
A comprehensive budget reflects the national sources of income and heads of expenditure and also the surplus or
deficit in a period under consideration. Dimock says “A budget is a financial plan summarizing the financial experience
of the past, stating the current plan and projecting it over a specified period of time in future.” Thus a budget is the
keystone of financial administration and the various operations in the field of public finance are correlated through

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the instrument of budget. A budget is a financial report of statement and proposals which are periodically placed
before the legislature for its approval and sanction. It is the report of the entire financial operations of the government
and gives us a glimpse of future fiscal policy. Willoughby states, “The real significance of the budget lies in providing
for an orderly administration of the financial affairs of a government.”
Budget System in India: Budget in India is called ‘Annual Financial Statement.’ This statement is prepared
separately for railways and other than railways or what is called a general budget. The states have their own budgets,
but the Parliament prepares budget for the country as a whole.
Another significant feature of the budget in India is its division into two categories, namely ‘Voteable Budget’
and ‘Non-voteable Budget.’ The non-voteable budget includes the salaries and allowances of such high dignitaries
as the President of India, Chairman and Members of U.P.S.C., Chief Justice of India and such other dignitaries.

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Preparation of Budget: Heads of the offices are required to prepare preliminary estimates giving the
developmental plans of their departments and approxi-mate income and expenditure under each head. In case a
department is interested in including a new item, it will have to give a detailed explanatory not for the purpose. The

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budget proposals thus prepared are scrutinized by the controlling officers, and finally passed on to the finance
ministry. The Finance Ministry is empowered to cut down any proposal forwarded by any department. The main idea
of loading the Ministry of Finance with such responsibility is that it is not a spending ministry. Being overall in

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charge of all the proposals made by different departments, it has a very comprehensive picture of the situation and
the finance limitations. In case a department feels that its proposals have unreasonably been turned down, the matter
may be referred to the cabinet which is the final authority.

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Format of the Budget: All the budget estimates are prepared under three heads:
Part I: Indicates establishment charges.
Part II (a): Deals with such items of expenditure in which there is considerable fluctuation.
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Part II (b): Deals with such expenditure which is more or less not fluctuating in nature.
Part III: Deals with the new items of expenditure on which the sanction of government is yet to be taken.
In India budget is prepared for the financial year which commences on 1st April and ends on 31st March of the
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succeeding year. A final shape is given only when the representative of departments, Accountant General and Ministry
of Finance have come to the same conclusion.
Zero Based Budgeting (ZBB): ZBB is based on the assumption that only those facts and figures should be
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taken into consideration which have occurred in the current financial year. The steps involved in ZBB are:
(a) Identification of decision units.
(b) Formulation and development of decision packages.
(c) Evaluating and ranking decision packages in order of priority.
(d) Preparation of budget by allocating resources to activities.
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But the main limitation of this approach is the cumbersome paperwork involved and generally spans a long time.
It also requires skills and expertise and can only be handled by well-qualified personnel.
(iv) Outcome Based Budgeting: This approach looks into budget with respect to the goals achieved. The
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budget is linked with performance measurement system. It is more citizen focused and outcome or result base
system of budget.
Budgetary Control
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One of most important factor that guides to effective financial management is budgetary control. Ensuring that
finances are expended exactly the way they were supposed to be and on the purposes for what they have been
allotted. In India, the agencies responsible majorly for financial management are the legislature, executive, accounts
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and audit machinery and Parliamentary Committees. The committees set up to exercise budgetary control are:
(a) Auditing of accounts
(b) Parliamentary control over the Budget involving the Public Accounts Committee, Estimates Committee and
Committee on Public Undertakings.
Q. 8. Discuss the evolution and framework of Management Information System.
Ans. Initially in businesses and other organizations, internal reporting was made manually and only periodi-
cally, as a by-product of the accounting system and with some additional statistic(s), and gave limited and delayed
information on management performance. Previously, data had to be separated individually by the people as per the
requirement and necessity of the organization. Later, data was distinguished from information, and so instead of the
collection of mass of data, important and to the point data that is needed by the organization was stored.
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 Earlier, business computers were mostly used for relatively simple operations such as tracking sales or payroll
data, often without much detail. Over the time, these applications became more complex and began to store increasing
amount of information while also interlinking with previously separate information systems. As more and more data
was stored and linked man began to analyze this information into further detail, creating entire management reports
from the raw, stored data. The term “MIS” arose to describe these kinds of applications, which were developed to
provide managers with information about sales, inventories, and other data that would help in managing the enterprise.
Today, the term is used broadly in a number of contexts and includes (but is not limited to): decision support
systems, resource and people management applications, Enterprise Resource Planning (ERP), Supply Chain
Management (SCM), Customer Relationship Management (CRM), project management and database retrieval
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An ‘MIS’ is a planned system of the collection, processing, storage and dissemination of data in the form of
information needed to carry out the management functions. In a way, it is a documented report of the activities that
were planned and executed. According to Philip Kotler, “A marketing information system consists of people,

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equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information
to marketing decision makers.”
The terms MIS and information system are often confused. Information systems include systems that are not

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intended for decision-making. The area of study called MIS is sometimes referred to, in a restrictive sense, as
information technology management. That area of study should not be confused with computer science. IT service
management is a practitioner-focused discipline. MIS has also some differences with ERP which incorporates elements

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that are not necessarily focused on decision support.
Any successful MIS must support a businesses Five Year Plan or its equivalent. It must provide for reports based
upon performance analysis in areas critical to that plan, with feedback loops that allow for titivation of every aspect
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of the business, including recruitment and training regimens. In effect, MIS must not only indicate how things are
going, but why they are not going as well as planned where that is the case. These reports would include performance
relative to cost centers and projects that drive profit or loss, and do so in such a way that identifies individual
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accountability, and in virtual real-time.
Anytime a business is looking at implementing a new business system it is very important to use a system
devlopment method such as System Development Life Cycle. The life cycle includes Analysis, Requirements, Design,
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Development, Testing and Implementation.

Professor Allen S. Lee states that “...research in the information systems field examines more than the technological
system, or just the social system, or even the two side by side; in addition, it investigates the phenomena that emerge
when the two interact.”
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