The Development Bottleneck: A board of Directors in the Public Sector - Essay Example

?Running head:  The development bottleneck: A board of directors in the public sector case study (Management and organizational behavior assignment) Insert Name         Insert Grade Course Insert Tutor’s Name 19 December 2011  The Development Bottleneck: A Board of Directors in the Public Sector Introduction This case study involves suggested solution by a Kuwait businessman and economic expert, concerning the issue of development in Kuwait. The expert proposes the idea of having a board of directors as a solution towards development “bottleneck”. The expert suggests that the board of directors should be delegated administrative duties in the concerned ministries, which serve the public, known as the “basic ministries.” These service ministries include Ministry of Health, Education, Housing, and Public Works, which face various bottlenecks in their development. These ministries are geared towards serving the people of Kuwait via provision of quality health services, quality education, housing, and transportation respectively. Kuwait is a small country with a population of less than 2million people, and therefore, once the bottlenecks are curbed, the rate of development would be high. This paper will discuss the various problems facing these ministries, and in addition, the issue of board of directors’ solution will be discussed among other solutions, as well as their effectiveness in curbing the bottlenecks in these service industries. Identifying and Diagnosing Problem Areas According to the Government of Kuwait (2009, p.11), Kuwait experiences traffic congestion as a result of fewer roads, hence contributing to time wastage, delays at work, businesses and in schools, and as a result, affecting the economy negatively. The existence of fewer and narrow roads is as a result of lack of enough funds to facilitate development, hence causing development slow-downs in the ministry of public works. The ministry of education in the state of Kuwait also faces development bottlenecks arising from insufficient and limited funds allocated for education. Moreover, there is a growing need of educational institutions due to the growing population of the youth, hence, majority of the country’s public institutions are unable to accommodate the growing demand. The ministry of health experiences a high demand for health facilities due to the rising growth of Kuwait’s population; it also experiences the challenge of the raising its standards of health care. The inability to achieve standard health facilities is as a result of insufficient funds in the health sectors. Moreover, minimum privatization in this sector has led to development delays. The ministry of housing in Kuwait faces similar bottlenecks. For instance, the housing sector in Kuwait is increasing the number of houses; however, the purchase rates are rising, and as a result, increasing the cost of accommodation (Living in Kuwait, 2011). Nevertheless, a boost in housing supply is needed, as this will aid in reducing the high prices of private housing. Based on the above research, the main cause of development slowdown is lack of public funds and poor management of these sectors. According to Thurman (1993, p30), the service sectors are dependent on human relations, therefore facing criticism concerning public services as a result of poor service delivery to the public. Alternative solutions There is need to consider privatization, especially in the education and health sectors. The transfer of ownership from public to private sector can boost the development in these sectors. In addition, the need for privatization is effective in terms of achieving efficiency and appropriate allocation of resources, therefore providing room for competition, and consequently improving productivity of a country. Privatization of education sector will yield to numerous schools, hence accommodating the growing number of youths in the country. In addition, both the private and the public sectors can work together towards meeting the public’s needs. The private sector brings about quality services; however, it can reduce its costs for the sake of the public, and hence speeding up development. In addition, as the demand for healthcare services increases, it is important for the Kuwait government to consider increasing privatization, whereby, the private sector is capable of providing high standards of healthcare, thus aiding in meeting the growing and future demand (Consulting advantage news, 2007). Figure 2: growth in demand for hospital beds (Consulting advantage news, 2007) Figure 2: the difference between public and private sectors share in higher education institutes (Consulting advantage news, 2007) Public and private partnerships are advantageous in dealing with development bottlenecks, which impact negatively on the service sectors. The service sectors produce intangible goods such as health and education, as well as tangible goods such as housing. However, development bottlenecks are a hindrance to the prosperity of these sectors mainly because they are associated with slow growth and delays that compromise the public needs. Getting out of development bottlenecks is vital for any country. Primarily, corruption is one setback in the service sectors. When these ministries consist of corrupt leaders, the chances of development slow-downs are very high. Generally, corruption cases may involve funds embezzlement, hence misuse of public funds for personal benefits (World Bank, N.d, p2). It may also occur in form of bribes, whereby, citizens are required to pay bribes in order to receive public services. Therefore, development slowdowns are evident, since leaders are more concerned with personal interests compared to public interests. The proposed solution of a board of directors in the government sector is relevant; whereby members will be delegated administrative authority in the concerned ministries. The board functions would include setting up policies for the involved minister and implementing a follow-up plan, and therefore upgrading the ministry such that it provides high quality services. This solution involves two stages - consultitative nature where plans to improve performance are set and operational nature, which includes planning and management and setting financial and management rules. The presence of such boards in each ministry would set the path straight. The regular meetings held before decisions are made would result to quality decisions that would impact positively on the public. In addition, the presence of the board would further lessen the minister’s workload, and with an advisory board on his side, there leaves limited room for mistakes. In such a case, the chances of corruption will be limited, since the board of directors oversees all the minister’s actions. Best Alternative and Justification It is evident that corruption is one of the development bottlenecks that interfere with the public interest; the solution of the board of directors in a government sector stands out among the rest. This board is required to study the programs beforehand and consult with international experts, hence guaranteeing quality decisions in executing the programs. The presence of a board guarantees limited corruption cases due to the financial and management set rules, which the minister is required to abide by. The regular meetings held by the board in the company of international experts enable them to emphasize on public interests and limit the minister from personal interest in office. In addition, both the consultative and operational stages of the board are essential in fostering development only when the board acts appropriately and focuses on issues that are of public interest. The board acts as a monitoring system; therefore, continuity in the operations of the ministries will be evident, therefore serving as a roadmap out of development bottleneck. The board of directors in the government sectors will act as a manager of an organization, as its main function is to improve performance of the staff in order to increase quality of services. For an organization to be successful, it should focus on the employee’s performance; indeed, meaningful performance goals can be a motivator, and an employee’s involvement in the organization’s decisions can boost his performance. How can a manager improve the performance of an organization? An organization has to have quality performance for it to survive the stiff competition evident in the business environment. For an organization’s performance to improve, managers must consider motivating the staff. Indeed, when employees are motivated, their productivity increases. In addition, use of rewards as a form of motivation creates a sense of self-worth for the employees, and as a result, they increase their performance, which in return impacts on the organizational productivity positively (Cummings & Worley, 2008, p.351). Employees contribute to the overall performance of an organization; therefore, a manager must ensure that realistic performance goals are set such that, employees can easily achieve these goals. Hiring competent employees for the right positions enables the organization to acquire new knowledge from new candidates, and therefore improving organizational performance as well. Moreover, managers should ensure continuous monitoring of performance to identify and curb factors that may lead to the decrease in performance beforehand. Conclusion Development bottlenecks are associated with development slowdowns, which hinder the effective application of public services. These bottlenecks may include funds embezzlement, corruption, and exhaustion of public resources among others. The service sectors are the most affected in Kuwait, leaving a large quantity of public needs unattended. Having an effective board of directors in the public sectors is a quality solution, whereby, the board oversees the ministry’s programs, consults with relevant experts, and makes quality decisions regarding the intended programs. Moreover, an effective board will delivery quality results, hence contributing to the eradication of development bottlenecks via setting management and financial rules, which the staff and the ministers are expected to abide by. References Consulting advantage news. (2007). Advantage 2nd Quarter Report on Importance of Consulting Services Role for Private & Government Sectors. The Future of the Education & Health Sector. Retrieved from http://www.consulting-advantage.com/news_archive.html Cummings, T., & Worley, C. (2008). Organization development & change. Ninth edition. OH: Cengage Learning Publisher. Government of Kuwait. (2009). National Traffic & Transport Sector Strategy for Kuwait 2009-2019. UNDP & General Directorate of Traffic Project 2009-2013. Retrieved from http://www.undp-kuwait.org/undpkuw/projectdocs/UNDP%20and%20General%20Directorate%20of%20Traffic%20Project%202009-2013%20SIGNED.pdf Living in Kuwait. (2011). Cost of living. Retrieved from http://www.visit-kuwait.com/living/cost-living-kuwait.aspx Thurman, J. (1993). On business and work. NY: International Labor Organization Publisher. World Bank. (N.d). Unit 1: Introduction to Corruption. Retrieved from http://siteresources.worldbank.org/PSGLP/Resources/corruptionunit1.pdf Read More