A Study of Efficiency, Effectiveness and Productivity of Filipino Administrative Agencies

Abstract

The public in general would have different ideas regarding "efficiency, effectiveness and productivity" because these concepts have apparently different meanings and purposes. Properly understood and utilized, however, these concepts can be useful tools for improving management in the public service.

Employees, supervisors and administrators themselves would have different views of these concepts. Several variables affect the interrelationships between the three factors and it is quite difficult to tell whether or not an agency is really efficient, effective and productive.

Intending to operationalize and provide measurements of these concepts in the Philippine setting, this study is a survey on efficiency, effectiveness and productivity of Philippine administrative agencies. Furthermore, insights into the relationships that exist among these three concepts have been obtained and the key variables affecting them identified.

More specifically, this study is an examination of the effects of four structural variables – centralization, complexity, formalization and stratification – on efficiency, effectiveness and productivity.

During the first phase of the research project, the research team examined organizational records as the basis for the preparation of schedules for study. Pre-tests were done during the first six months of research. Immediately after the formulation of the initial questionnaire, the development of the final questionnaire started. The first set was administered to supervisory personnel of selected units of the four agencies under study - the Department of Health (DOH), the Department of Local Government and Community Development (DLGCD), the Development Bank of the Philippines (DBP) and the Government Service Insurance System (GSIS). These agencies were selected on the basis of the primary function of financing and service. The original plan was to have at least six representative agencies of the government for the survey, but due to several constraints such as limited funds, the team had to reduce the number to four.

The examination of the actual performance of the four agencies being studied consisted of content analysis of agency records and other sources such as reports and periodicals. Perceptions of both clientele and agency personnel on our structural and functional variables were conducted so as to compare these results from those obtained from content analysis of agency documents.

The project, in addition to its contribution to the growing literature in the field of development administration, is expected to help Filipino administrators increase their understanding of the complex factors that hinder or facilitate agency operations. These insights and knowledge could further serve policy-makers in channeling multi-agency efforts towards the attainment of national development goals. Hopefully, with the establishment of the variables that affect the three major factors in development administration - efficiency, effectiveness and productivity - the different government as well as private development agencies could improve their service delivery capacities.