Organizational Development: A Manual for Managers and ... - FPDL

Part 3
Factors of efficiency
Introduction
DEFINITIONS
Efficient – functioning or producing effectively and with the least
waste of effort. 3
Efficiency – relationship between the result achieved and
resources used. 4
The management audit in relation to efficiency factors aims at:
• Discovering the overall organisation of local government administration activity;
• Providing objective information for improvement of corresponding areas.
• Identification of needed improvements in existing procedures and work processes for better
use of resources
To achieve the last aim the auditors should have enough information for comparison of the service
efficiency with other local governments or alternative providers of the same services.
The audit of the factors of efficiency may be divided into the parts, based on the aspects, which
directly depend on management and affect efficiency of local government operations:
• Organisational structure;
• Organisational procedures;
• Measuring quality and quantity on the level of public services (external customers);
• Measuring quality and quantity on the level of internal operations (internal customers);
• Measuring costs.
Organizational structure
Introduction
DEFINITION Organisational structure – arrangement of responsibilities, authorities
and relationships between people. NOTE The arrangement is generally
orderly. 5
As seen from the definition, the audit of the organisational structure should include examination of
responsibilities, authority and relationships between people (and structural subdivisions). The
auditor should examine:
1.General model of organisation in the municipality.
• What are the relationships at the highest level – between the officials of the local
government (Mayor, Vice-mayors, Chairman of the Council, Head of Administration, etc.)
• What duties, responsibilities and powers do the highest officials have?
2.Subdivisions and principles of sub-dividing in local administration.
3 Collins dictionary, 1991.
4 ISO 9000:2000 Quality management systems – Fundamentals and vocabulary. 3.2.14. - 3.2.15.
5ISO 9000:2000 Quality management systems – Fundamentals and vocabulary. 3.3.2.
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