Public sector governance

Forms of organisations
1. Public sector
• In a mixed economy the public sector delivers those goods
and services that can not or should not be provided by
private sector companies or the business sector.
• The public sector provides services to the population either
free of charge or for a cost.
• The services provided may be on a national level, such as a
national health service, or on a local level, such as libraries.
The public sector may be funded from local taxation, from
central government grants, or from a combination of the
two.
• Public services are funded by taxpayers and are
administered by elected officials at national level
(Members of Parliament) or at local level (local
councils or municipalities.
2. Private sector
• This comprises a large variety of organisations with
the principal aim of, in simple terms, making a profit
for the benefit of individual owners or shareholders
who provide the capital or funding for commercial
activity.
3. Charities Organisations
• set up for not-for-profit purposes, funded from
donations.

Lobbying groups are those that come together with

a common interest, with a view to influencing
government policy. They may come under
criticism if they are seen to have sufficient power
to influence policy in their favour.
 Public sector Private sector Charitable NGOs/quasi
status NGOs
Purposes and Public service profit Relief of As defined by
objectives poverty, owners
research
Performance Central Financial SORP Set outcomes
regulation reporting
standards
Ownership Government Partners/ Donors government
shareholders
Stakeholders The public, Shareholders, Service users Government,
(including central regulators, lobbying
lobby groups) government, taxation groups
service users authorities
 Public sector

• The public sector is different from the private

sector in a number of ways but in general the
main differences are in the aims and purposes
of the public sector, its sources of funding and
accountability.
 Levels of public sector organisations

• Sub-national - A division of government

below central level, for example a state,
county or province
• National - Central government, normally
based in the capital city of a country
Supranational - Above individual national
governments, for example the European
Union
Characteristics of public sector governance

1. Nature of the state

• The characteristics of a state vary considerably depending on
whether is it a democracy, whether it has a formal constitution
and so on.
• Most states require the following four 'organs of state' in order
to function:
a) Legislature – makes the laws
b) Judiciary – interprets the law
c) Executive – government departments headed by cabinet
ministers
d) Secretariat – the administration or 'civil service'.
2. Nature of democratic control
• In a democracy the government is answerable ultimately to
the electorate. This may be at national or local level.
3. Policy implementation
• At central government level policy implementation is the
responsibility of the Ministers in charge of government
departments.

• In local government the Council conducts its affairs through

officers who head the various service departments in the
local authority.
4. Accountability and reporting
• Public entities generally need to demonstrate that they have used
public money for the purposes intended and have obtained value
for that money.
• One way of measuring this is to evaluate performance against the
three 'Es':
i) Economy – obtaining inputs of the appropriate quality at the
lowest price available.
ii) Efficiency – delivering the service to the appropriate standard at
minimum cost, time and effort.
iii) Effectiveness – achieving the desired objectives as stated in the
entity's performance plan.
Public sector governance must follow the Nolan governance principles:
1. Selflessness:
• Holders of public office should act solely in terms of the public
interest.
2. Integrity:
• Holders of public office must avoid placing themselves under any
obligation to people or organisations that might try inappropriately
to influence them in their work.
• They should not act or take decisions in order to gain financial or
other material benefits for themselves, their family, or their friends.
They must declare and resolve any interests and relationships.
3. Objectivity:
• Holders of public office must act and take
decisions impartially, fairly and on merit, using the
best evidence and without discrimination or bias.
4. Accountability:
• Holders of public office are accountable to the
public for their decisions and actions and must
submit themselves to the scrutiny necessary to
ensure this.
5. Openness:
• Holders of public office should act and take decisions in an open
and transparent manner. Information should not be withheld from
the public unless there are clear and lawful reasons for so doing.
6. Honesty:
• Holders of public office should be truthful.
7. Leadership:
• Holders of public office should exhibit these principles in their
own behaviour.
• They should actively promote and robustly support the principles
and be willing to challenge poor behaviour wherever it occurs.