CHAPTER III : ADMINISTRATIVE THEORIES AND ORGANIZATION FOR PUBLIC AFFAIRS

There are several ways of viewing the term "organization". The meaning that one gives or attaches to it depends
upon his perception and administrative orientation of what it is expected to achieve; the mechanisms required to
achieve it; the cost it will entail and the time framework needed to accomplish results. With business organizations
where profit-motive is the primary goal, its structure is different from that of a government bureaucracy where service
to the clientele is the paramount concem. Organization theory may be perceived as a composite of concepts,
approaches and generalizations regarding organization in the context of a given environment. No single theory is
applicable to all situations. Variations of theories and prescribed models therefore abound.

These variations notwithstanding, the basic elements of an organization have remained constant through the years.
Organizations have objectives and missions to accomplish and goals to achieve. They employ individuals to man the
positions. They acquire and allocate resources, use some form of structure for coordinating functions of the various
units of work and decide who among the members of the working group will manage and supervise the operations.
Theories about organizations do not develop in a vacuum. These are responses to the environment, especially the
culture of society and the historical context within which organizations are situated.

There is no single theory or organizations. There are a number of such theories each seeking to explain
organizational and individual behavior in different settings and culture millieu. As a matter of fact an organization
theory is generally associated with a certain period of time during which it is dominant and accepted but later on
displaced or lose center stage as newer theories or schools emerge to challenge them.2 Understandably, the frames
or organization which persists over time become "classic", serving therefore as bases for successor schools of
organization theory advocating among others fundamental principles like maximization of output through division of
work and specialization, or the perception that workers in an organization behave in accordance with certain
rationale.

ORGANIZATION MODELS

For our purposes, models are regarded as products of theories. Some of these are discussed and their features
described as pictured by their respective proponents. Carl J. Bellone has come up with five public administration
models³ which we are using as the basis of our review; namely (1) classic bureaucratic, (2) neo-bureaucratic, (3)
institutional, (4) human relations, and (5) public choice.

1. The Classic Bureaucratic model

The classic bureaucratic model has components: two major

(a) a structure or a design of the organization

(b) the ways by which people and work are managed within the organizational design

The structure of this model draws heavily from Max Weber's perception of bureaucracy with five components:

a. a hierarchical arrangement of units and positions in a pyramidal structure

b. duties and powers exercised based on the principle of division of labor
c. uniformly applied written rules for carrying out specific tasks assigned
d. impersonalness of relations among the members of the organization subject to formally established norms of
conduct
e. choice of personnel based on technical competence

This model sees an organization chart as indispensable for fitting men in the slots and positions in the hierarchy; the
duties of the position are described; personnel are classified; a compensation plan with corresponding pay scales is
constructed.

The managerial features of this model, derived from the scientific management theory of Frederick Taylor,
emphasizes work processes at the rank and file level, advocates scientific study and design of work flow and
procedures and creates an ethos which recognizes mutuality of organization and employee interest. The organization
provides for the sociological, psychological and economic needs of employees; the employees contribute their
expertise and skills.

2. The Neo-Bureaucratic Model

This emerged during a time when the behavioral persuasion was beginning to influence the social sciences. The
value orientation of this model was not different from the classical bureaucratic model. Efficiency, effectiveness and
economy were still the basic criteria for management performance. It accepted classic administrative principles,
control mechanisms and structural framework of organization. What it considered most important was analysis of
policy decisions and justification for the use of certain processes, in decision-making. This model relaxes the
structural constraints which the classic model imposes.

Obviously, the classic bureaucratic and neo-bureaucratic models are species of the same genus of organizational
and administrative thought. The rigidity and inflexibility of classic organization theory and its expectation that
administrators subscribe to its principles and implementing norms and structured organization pattern were not
without justifications. What it prescribed were borne out of the need to bring about a sense of order both in public and
in private organizations It aimed at providing a formula for administrative activities. Luther Gulick and Lyndall Urwick
put up a comprehensive formulation of theory in 1937 handed down to us in the POSDCORB acronym which has
been taken as the bible of classical theory. It was designed to streamline structure and processes, do away with
function overlaps by defining who performs what, to minimize waste of material and human resources.

The work of Henri Fayol entitled General and Industrial Management, although management oriented, exemplifies the
classic approach to organizing. He suggested that managers perform the five functions of planning, organizing,
commanding, coordinating and controlling and set these as "principles" of management. Together with Gulick and
Urwick they formed a triumvirate of the "principles of administration school". It was this cataloging of principles that
made the school dogmatic and prescriptive. On the other hand, Fayol's division of work led to specialization of
functions which reduced the number of concerns the employee had to worry about. Unity of command implied that
orders emanate from one direct supervisor thus providing direction since activities sharing a common objective are
managed by only one person. While advocating centralization, it accepted variances as situations dictated. The range
from centralization to decentralization was left open. The issue of centralization versus decentralization was more a
matter of proportion and degree depending upon the capability of administrative leaders and the willingness and
preparedness of the lower level members to self-operate. He suggested establishment of clear lines of authority
(scalar chain) for effective coordination. He even allowed departures from the scalar chain in special cases.

The postulates laid down in POSDCORB were bound to invite reactions and serious criticisms later on by those who
believe that men are not "cogs in a wheel" to be treated as spare parts and to be automated by the boss towering on
top of the pyramid of power.

A major challenge to this theory came with Herbert Simon in his article "Proverbs of Administration" published in
1946. He pointed out the inconsistencies and tautologies, the lack of sophistication and pro-management bias of the
classical school. He likened the classical principles of administration to proverbs which go by pairs, maintaining that
for every principle there is an equally plausible but acceptable contradictory principle which leads to an antithetical
organizational track. He cited the span of control principle with six as the ideal number of subordinates a supervisor
can effectively supervise. This suggestion would not be practicable for large organizations which necessitate putting
up additional hierarchical levels, since administrative efficiency is better ensured by keeping at a minimum the
number of organizational levels. Urwick's unity of command finds contradiction in Taylor's "functional foremanship".
Effective span of control over six may be increased depending upon the ability of the foreman to manage his unit of
operation. Departmentalization by purpose may be opposed by departmentalization by process under certain.
conditions.

Classical theory, is further faulted for its failure to consider the psychology of the human being as formulator and
implementor of policy-decisions. Critics indict its failure to provide a contingency plan for resolving conflicts which are
bound to arise within an organization; that it has failed to visualize the felt need for updating organizational purposes
and keeping itself abreast to changing social needs.

3. The Institutional Model

This model focuses on the organization structure of government, describes the relations among different hierarchical
levels and studies what is being done at each level. It is most concerned with constitutional, legal and administrative
rules as bases for administering the affairs of state.

Whether the institutional model is a function of or a reaction to behavioral thought is not fully ascertained. Suffice to
say that it has attempted to look into and understand the workings of the bureaucracy, especially in the area of
decision-making. Associated with this model is Philip Selznick who suggested the use of "informal co-optation" as a
strategy of officially bringing administrators into the policy- determining mechanisms of an organization especially in
situations where the administrators need support of certain interest groups. The choice of policy is influenced by
many factors. Charles E. Lindblom holds the view that policy is a product of incremental steps; that it starts with a
comparison of possible alterative policies, and that which has the most value is finally chosen."

In Third World countries, the institutional approach can provide clues to solving problems arising from the analysis of
the policy-making process and why reorganization and restructuring of the bureaucracy are frequently done.

Incrementalism, which is one feature of the institutional model, is not always desirable since policies may require
departure from past arrangements as to suggest innovation and not merely incremental change. Amitai Etzioni
offered "mixed scanning" as a solution to this problem. This incorporates rationalism and incrementalism.11 Two
levels of scanning are suggested: (a) high coverage type and (2) truncated type. The high coverage type, when
applied to society, is an overview monitoring to pinpoint the indices of the problem. The truncated type makes a
follow-up focusing on the specific details of the problem, identifying the causes and prescribing a solution.12

4. The Human Relations Model

Conceptualizing an organization as a pattern of relations arising out of the interaction of individuals in a work
environment makes a "complementary organization", the informal component complementing the formal component.
The informal cannot be reflected in a symmetrically-drawn organization chart. It affirms the idea that an organization
is not circles and rectangular boxes; not solid and broken lines visible in a schematic diagram representing levels and
formal relationships. Organization is people; it is flesh and blood and what counts most is individuals who fill the
positions and not the positions with the description of the functions to be performed.

The values which underlie this model include employee and client participation in the making of decisions, self
actualization and realization, worker satisfaction, less pronounced differentiation in rank and status. The study
conducted by Elton Mayo in the Hawthome plant of Western Electric company is a pioneering effort in the human
relations model. Mayo's experiment ushered a new theory of organization as a social system and a social structure
where human beings relate to one another through a network of sentiments and feelings. He suggests that efforts be
made to achieve intemal equilibrium by harmonizing personal and emotional factors of the organizational equation.
Management is therefore tasked with the responsibility of developing diagnostic skills and capability to perceive the
dynamics of informal groups and employee feelings.13

Modified Versions of the Human Relations Model

The human relations idea has spawned versions of the same theme, Mary Parker Follett, working on the human
factor premise, sees relationships in an organization more in terms of conflict resolution. Three solutions to conflict
are offered:

a. domination theory - this is more associated with the pyramidal structure where the chief or top manager orders
subordinates to act in accordance with the wishes of the superior. This arrangement typifies a classic authoritarian
model or organization.
b. balance of power theory - there is the presumed absence of a dominant leader making decisions. The
subordinates who know and understand the problem at hand exercise de facto power. Decisions become a product of
bargaining and compromise. There could still be antagonism since resentments develop into intrigues.
c. integration theory - conflict resolution considers the inputs of participant-members, based primarily on the "law of
the situation" rather than personalities and relative positions in the organization.

Herbert Simon and Chester Bamard formulated the "organizational equilibrium" theory. They regarded organization
as a cooperative enterprise characterized by a balance between employee input in the form of skills and expertise,
loyalty and commitment to the organization and the output of the organization in terms of reward, recognition, job
security and reasonable compensation for the employee. This requires supervision upgrading which includes
individuation of contacts and motivation by leadership instead of the use of sanctions. The command-centered
approach of the classicists is replaced by supervisor guidance. It recommends developmental management of human
resources to enable employees to acquire skills and competencies which ultimately benefit the organization. The
job-centered bias is hoped to be transformed into people-centered personnel policy. The consent model of authority is
a consequent by-product of organization equilibrium, with authority as a function of the value frame of the social
system. This implies that authority becomes effective only when subordinates are willing to accept its legitimacy and
submit themselves to it. 14 Otherwise known as the permissive concept of authority, it lightens the impact of the
autocratic chief.

Abraham Maslow introduced a theory of motivation which established an ordered hierarchy of needs made up of five
levels:

a. physiological food, clothing, shelter, sex, among others. Satisfaction of these needs is self motivated.
b. safety and security - which includes job security and fair treatment, satisfaction of which comes from the forces
outside of the individual.
c. sense of affection and belonging - that one is part of a group and therefore counts in the total enterprise but
requires that he cooperates with others in the organization to merit affection.
d. esteem and status - which implies self-respect and respect for others.
e. self fulfillment and realization which means - approximating expectations of one's potentials and capacities.

There are also advocates of organizational humanism, like John Dewey, who do not believe that satisfaction of needs
is a cure-all for the problems of management. They contend that the efficacy of organizations depends upon
multiplicity of factors and situational variables. They further say that power in an organization should be shared by the
rank and file rather than a monopoly of top and middle management managers. An organization should therefore be
open and willing to accept, not only suggestions, but also petitions from groups and individual. It is this kind of
arrangement that makes for participatory democratic management and collegiality in decision-making. This
interfacing of employees and managers can go a long way to satisfy socio-psychological needs..

The human relations model and its modified versions aim at building a positive environment for employees. It is a
new organization theory which, according to Talcott Parsons, sees roles played within a culture complex. Modern as it
seems to be, with its new orientation distinguishing it from the attributes of the classical model, it still finds the
traditional and the classical useful. The two versions are reconcilable provided commonalties, instead of differences,
are sought for and their complementary nature is recognized. And more importantly, linkages for collaboration are
established. Once these requisites are secured, a POSDCORB-minded humanists is possible. and the 15
cross-breed of the modern organization

(5) Public Choice Model

This model traces ancestry to Alexander Hamilton and James Madison. It emphasizes provisioning of goods and
services by decision makers at different levels. These decisions must be politically feasible products of the collective
will of different entities whose activities are performed and coordinated through institutional networking. It believes
that authority should be delegated and assigned to different levels; that function overlaps be allowed to enable the
organization to respond to environmental stresses and equip it with coping mechanisms to achieve and maintain a
stable political order. 16 Vincent Ostrom envisions this model as a "paradigm of democratic administration." He
illustrated the parallelism between economics, where a decision of policy is influenced by the mechanism of supply
and demand, and public administration policy which is influenced by the expectation of what it will be able to do for
society. Ostrom's logic of public choice was an answer to the Wilsonian integrated and centralized model and doubt
about the efficacy of public opinion and popular sovereignty.

"It is harder for democracy to organize administration than for monarchy. The very completeness of our cherished
political successes in the past embarrasses us. We have enthroned public opinion and it is forbidden us to hope
during its reign for any quick schooling of the sovereign in executive expertness or in the condition of perfect
functional balance in government. The very fact that we have realized popular rule in its fullness has made the task of
organizing that rule just so much the more difficult."17

The proponents of the public choice model supports the view that authority be allocated to all organizational levels,
and negates Wilson's "dominant center of power" ideal which lessens the need to compromise, compound
differences, trim plans and suppress principles. Yet exponents of public choice, just like the authoritarian-oriented
Wilsonians, see the need to man the bureaucracy with civil service professionals. However, the parallelism ends here
because the Wilsonians subject civil servants to the principle of hierarchy while at the same time linking them with the
principle of populism through elections and consultations with the public through referendum and plebiscite.18

THE NATURE OF ADMINISTRATIVE ORGANIZATION

John M. Gaus regards an organization as an arrangement of personnel for facilitating the realization of an objective
through allocation of functions, duties and responsibilities. This implies relating individual capacities and group effort.
To the legally oriented, it is a formal structure established by law which takes into account quantity, type of work to be
performed, and observes certain criteria like efficiency, effectiveness and economy in its operations.

Organizations may be horizontally or vertically structured emphasizing levels, grouping of related functions and
territory. In a horizontal structure, the responsibilities of government are assigned to a single administrative unit.
Specifically, area-related tasks are centralized for a territory.20 This is a case of area organization. In a vertical
structure, administrative units are put up for a defined function. This is functional organization which provides
incentives for those interested in a certain field to cooperate within the framework of a special authority.2 21

Organizing

Organizing is the ordering of human and material resources of an entity in such a way that these resources will
contribute systematically to goal realization.2 Arranging 22 material resources is an easier task than ordering human
resources. The former is taken care or by seeing to it that office equipment and facilities and other hardware
components are sequentially arranged on the basis of work flow. Location of office desks of employees go by the flow
process just like in belt-line operations of a manufacturing enterprise where activity sequencing is indispensable. The
receptionist-secretary's desk is therefore located in an area before a caller can have audience with the administrative
officer or manager. Office equipment like xerox and mimeographing machines are generally put at the rear portion of
the office area to minimize noise that disrupts operations, specially so with jobs requiring mental effort and greater
concentration. It is indeed very important to allocate space and physically arrange men and material especially when
physical area is limited.

Arranging people is a more difficult job. Men filling in positions must correspond and match functions, duties and
responsibilities of the position as the job description defines. An employee has to relate horizontally to fellow
employees and vertically to supervisors and other officers. What he performs needs to be coordinated with the task
performed by other employees.

Organization theories serve as tools for designing organizations and formulating principles and guidelines for
managers and administrators.23 They facilitate identification of problems. They possess prognostic value in relating
events and occurrences. They provide criteria for choosing and evaluating courses of action; they help in the setting
up of standards for choosing decision alternatives. The larger the organization the more complicated the work
processes; and the greater the need for manpower, equipment and supplies. Workload has to be allocated. This
requires setting up additional hierarchical levels or contact points, Related tasks have to be grouped together under a
bureau or a department. Specialization of functions results. Authority needs to be delegated. Coordination points
have to be established. A system of control has to be instituted so that component units perform in accordance with
prescribed norms and standard operating procedures. 24 activities and distributing workload among personnel are
justified because men vary in wisdom, capacity, skills and dexterity. A responsible organization man should consider
these individual givens in order to fully utilize the potentials of men.

Departmentalization

After determining what is to be done, the next job is to group together related tasks and assign these to individuals
under the direction and overall guidance of a director or manager. We refer to this activity as work distribution. This
process is departmentalization. Work is actually divided organization-wide, While there is no single criterion for
departmentalizing, four criteria may be useful, namely, purpose, process, clientele and place. Not all governmental
activities necessitate use of a single formula for departmentalizing. Purpose answers the question of what is to be
achieved. Process is concerned primarily with the steps and their sequencing. Clientele refers to individuals and
groups as recipients of favors and benefits, whether goods or services. Place is the geographic area as the intended
beneficiary. Which of the four has the highest value depends upon the prioritization scheme. Time and urgency of
need are essential elements of choice. A principle for one stage or period may not be applicable for the succeeding
ones. Organizations are dynamic and, just like living organisms, go through the process of birth, growth and
development. They have peaks of activity and experience decline, if not obsolescence."

The four criteria have roles which are bound to change with time and situational variables. Review of their roles justify
their re-ranking as factors for departmentalizing. The fact is that organizations are departmentalized using a hybrid
formula. Work complexity requires dispersal of roles through specialization. While division of labor is desirable, it
should not move into organic division because splitting and separating related activities can bring about
fragmentation which makes coordination difficult, especially in mechanistic organizations where coordination is
primarily dependent upon hierarchy, where the chain of command is faithfully adhered to, and where instructions and
decisions of superiors are basic guides for the performance of subordinates. Departmentalization must guarantee
sufficient work load in terms of man-hours as stipulated by law.

Coordination

The process of achieving unity in whatever two or more individuals or units do is coordination. It is better achieved in
the case of those activities and functions which are allied or inter-related; conversely, it is difficult to achieve when
activities and functions are disparate and unrelated. The need for coordination is greater in large organizations than
in small organizations; with complex situations than with simple situations; in newly established or frequently
changing organizations than in stable ones. The more divergent the values, goals and perspectives of the units to be
coordinated, the more difficult the job of coordinating.

Coordination is intimately linked with departmentalization principles. Departmentalization based on purpose sees
coordination as harmonizing agent of departmental sub-units with purposes finely tuned to those of the department. It
is the responsibility of the executive of the department to see to it that this is achieved. If the basis of
departmentalization is process, the executive sees to the standardization of work processes, sets the time frame
within which results are tumed in, services delivered and ideas sold. Place or geographic area as basis for
departmentalization requires decentralization. To ensure prompt and efficient delivery of services, the administrator
must see to it that said services are delivered within a period of time that the locality needs them. The functions
performed and the services delivered should be integral components of the overall programs and projects of the
department. Coordination in clientele-based organizations is achieved when department efforts are extended to the
inhabitants or the communities as clients.

Inter-departmental coordination is more difficult to achieve when departments do not run along parallel tracks within
their parameters. This situation breeds departmental conflicts. Coordination is more effective when there is only one
source of authority. It is a matter for the executive at the center relating to the units at the periphery to build an
effective networking." 31

Ways of Achieving Coordination

Coordination may be achieved by the following:

(1) establishing clear-cut procedures and rules

This especially applies to routine activities and those which are done at regularly-spaced intervals and in cases where
activities are specially programmed with target dates of completion. When guidelines for doing the job are clearly
stated and functions well defined and steps in the procedure properly sequenced, the flow of work will be orderly;
duplication of effort prevented and monitoring of performance will be less difficult.

(2) use of the hierarchical structure

The work categories which have been classified are put under the responsibility of a supervisor in the structure of
authority. The supervisor issues guidelines and implementing standards and patterns of relations among the units to
be coordinated. Units of work are therefore interrelated and allotted to the different positions in the organization
structure.

(3) use of matrix departmentalization

This is an approach which provides an alternative to functional decentralization which demands more coordination. It
applies most appropriately to government special projects where men are pulled out from existing departments and
brought together temporarily under the supervision of a project team. Upon completion of the project, the borrowed
personnel are returned to their respective mother departments.

(4) Introducing a dominant idea or rationale Ideas have power.

Their capability to effect coordination is at bost illustrated in what these can do even in the absence of a loader or
framework of authority. Members of a board or a commission manage to get along among themselves and contribute
more inputs if they believe in the same principles, work out a common objective, and carry out their collective
responsibility not so much because of an extemal motivator but because of an internal conviction or inner compulsion
from within themselves. In such a work environment there is less coercion and more persuasion used to doing things.
Hierarchy and authority systems become less relevant and consequential. The task of leaders and coordinators is
geared more toward developing consent, assuring meaningful participation and dedicated commitment, and creative
devotion to the rationale of the organization. Organization is never the equivalent substitute for the raison d'etre for
organizing. It is the rationale which constitutes the basis for action more than what structure can possibly do.

There are other mechanisms for coordination more appropriate for inter-departmental relations than for in-house
coordination in organizations departmentalized on area basis. In the Philippines, where the local governments are the
receptors of power and acceptors of responsibilities arising out of the provisions of the Local Government Code of
1991, coordination is affected by functional decentralization and power devolution. Helpful in coordinating local
activities are planning committees especially for development programs which require brainstorming sessions to
explicate plan details, implement mechanisms and enforce compliance standards and target schedules. Appointment
of area coordinators and liaison officers are practical, when frequency and volume of inter- departmental contacts
increase. Regional meetings may be officially arranged for information exchange and coordination. All the
above-mentioned arrangements augment the consultative mechanisms for participatory policy-making and
administration. Organization men should realize that organizations are dynamic and therefore the growth processes
and the increments of governmental functions ought to be understood in the light of the need for coordination.

The personality of the leader affects coordination. A leader who perceives the direction the organization is heading
for, who possesses the administrative skills and experience, who is innovative, can organizational efforts toward
worthwhile better direct programs. Notwithstanding the interplay of variables, such a leader will be able to provide
alternative solutions to the problems of coordination.

Span of Control

This concept refers to the number of subordinates a superior is able to effectively direct and manage. It is based on
the psychological idea of span of attention. Overseeing the activities of subordinates varies with the capacity of the
supervisor, the work habits of subordinates and the kind of work being performed. When work is routine, quantifiable
and homogeneous, wider span of control is justified. This is also true for workers located in one working area. When
work is diversified, qualitative and heterogeneous and the workers work in different areas or are dispersed, the
narrower the span of control needed.33

From the supervisor's perspective, control is contingent on his knowledge of organizational goals and the specific
functions of units and workers. Demand on supervisor time and employee educational qualifications and
competencies help determine the range of supervision. When subordinates are not capable of self direction, the
narrower the span; when they are capable of self direction, the less the need for detailed instructions hence the wider
the span. But there is no hard and fast rule as to how many subordinates should report directly to a supervisor. It is
hereby suggested that when the span is wide more vertical levels are needed. However the suggested arrangement
presents a vertical communication problem since goal realization requires a two-way communication system which is
important in maintaining personalized supervision. A goal-centered feedback information process rather than
reduction of hierarchical levels may be most useful in situations such as this. No constant number is applicable to all
organizational situations; what is important is to recognize the interplay of situational variables in determining the
specific number for a given situation. It is much easier for an accounts executive to supervise accountants in his unit
because of similarity of their field of specialization. Conversely it is more difficult for an army general to supervise
men coming from different specialized military units.

Decentralization versus Centralization

In the discussion on administrative theories, we maintained that the new organization theories which are basically
modified versions of the human relations model and the traditional organization models both have their respective
contributions to the fund of public management development. We maintained that the two models are not antithetical
provided their complementary roles are accepted and their collaboration linkages identified. In like manner,
centralization and decentralization as approaches to organizing should be viewed as complementary. There is a
perception, that in order to achieve effective decentralization, there should first be centralization. Formulating and
defining national policies and objectives should be the prerogative of the government of the center. In the name of
coordination, field offices and local govemmental levels should go by the national master plan notwithstanding the
exercise of some amount of discretion in providing solutions to problems germane to a particular locality. As a matter
of policy, such solutions must be within the context of the master plan.

The Local Government Code of 1991 declares as national policy the grant of local autonomy to territorial and political
subdivisions of the state to enable them to fully develop as self-reliant communities and effective partners in national
development.34 As provided for in the code, the President still exercises general supervision over all local units in
accordance with the provisions of the constitution. Provincial governments supervise their respective component
cities and municipalities; city governments and municipal govemments supervise their component barangays to
ensure that the acts of the subordinate units are within the scope of the powers and functions granted to them.35 The
code mandates the national government to see to it that decentralization contributes to the continuing improvement of
the performance of local government and enhances the quality of life of the inhabitants. Both the code and the
constitution affirm the supervisory and monitoring role of the central government as Filipino political culture and
administrative experience under Spanish colonial rule justify.

The issue is not so much centralization versus decentralization but rather the level of decentralization, and the degree
of centralization. When most decision-making is allowed to go up to top management level through the scalar chain,
the organization is considered highly centralized. When decision-making is brought down the lower levels of the
hierarchy, the organization is considered highly decentralized. How high it should go up and how low it should go
down depends upon variables like leadership capability of local executives, financial viability of local units, political
awareness and maturity of the local inhabitants and government commitment to citizen participation in the policy-
making process.

Setbacks of Centralization

Centralization makes for government by remote control. Central government could be inaccessible government. It
denies local inhabitants opportunity to participate in decision- making which affect them. It emphasizes conformity
and loyalty of the members to a rigidly structured bureaucracy, hence a deterrent to personal growth and self
improvement. Since it promotes hierarchical consciousness, commitment and dedication to duties and responsibilities
are not voluntarily assumed but imposed by the need to comply and to conform.36 It stifles initiative and breeds
dependency, if not parasitism. It could lead to excessive bureaucratization and consequently dehumanizes the
organization.

Benefits of Decentralization

The centralization-decentralization management dilemma does not necessarily make the two organizing principles
adversarial. More so if we regard decentralization as a form of authority delegation for certain decisions with top
management or central government retaining control over certain essential matters.37 Where to strike the balance
between control and autonomy is not easy to ascertain. As previously mentioned, decentralization brings government
closer to the people although there is no fixed code or formula as to how much authority and how far that authority is
going to be pushed down. A meaningful decentralization scheme cannot fail to consider the need to spell out what
authority should be delegated. That scheme should define policies and implementing rules to guide those delegated
the authority. It should institute selective controls for overseeing performance of those who are delegated.

Decentralization is an empowerment process designed to give people the opportunity to develop alternatives for
solving their problems. It means power-sharing by top managers and executives with local administrators. It is a
"moral exercise" of authority within agreed upon parameters allocating the domains of the central and that of the local
government. This sharing does not imply shunting aside organizational authority. It simply augments the possibility for
accommodating inputs of members to improve effectiveness of the organization. This is organizational networking
achieved through collaborative relationships between members. This sharing process requires administrators to be
receptive to innovation and willing to reconstruct structures and adopt new methodologies to harmonize the
workplace and create a climate for development.

In the Philippines, people empowerment through decentalization is exemplified in the substantial creation, division,
merger, abolition, boundary alteration of local unitsthrough congressional enactment in the case of the province, the
city and municipality and other political subdivisions. In the case of the barangay, this is done by ordinance passed by
the sanggunian panlalawigan or the sanggunian panlungsod of the entity concemed in whose territory the barangay
is located. The above-mentioned acts require majority approval ascertained in a plebiscite held for this purpose. 39

As a strategy for democracy and development, decentralization aims to redistribute power, allocate resources and
facilities and deploy services to the different communities, especially the depressed and neglected ones. In the
process, it hopes to enhance economic activities and promote employment opportunities. The decentralization thrust
is committed to the creation and use of alternative mechanisms to improve the delivery of basic services. This will
require decentralization of the bureaucracy through (a) deconcentration (b) devolution (c) non-governmental
organizations (d) privatization as operating channels.

(1) Deconcentration

This mode of decentralization is administrative. There is no depreciation of authority and responsibility of the central
office since the field units continue to be subject to the administrative supervision of the former. While the latter
makes the decisions, such decisions can be modified, revoked or reversed by the former as it deems necessary and
proper. Deconcentration implies delegation of authority by the national government through administrative orders,
instructional memoranda and other pronouncements describing and defining what field units should perform and
how these should be performed. In other words, there is delegation of functions but there is no transfer of authority
and power, hence no local empowerment, since the locus of power remains with the national government.41
Delegation is made to facilitate the administration of national programs and projects.

In the Philippines, this type of decentralization is operationalized through the setting up of thirteen administrative
regions, including the national capital region (NCR). Through the regional development councils (RDC's) established
for each region as coordinating bodies, more realistic development plans will be formulated and implemented. The
deconcentrated administrative set-up is especially justified from the management perspective. Planning,
policy-making, monitoring, standards formulation, evaluation and control functions lie within the domain of the central
office, while economical, effective and efficient administration and management are a responsibility of the regional
office.

(2) Devolution

This is political decentralization which entails the transfer of power and authority and resources from central to local
level. The transfer is equivalent to the grant of local autonomy empowering local governments to enact and
implement rules and regulations by ordinance/Devolution, as defined by the Local Government Code of 1991, is the
conferment of power and authority upon local units to perform specific functions and responsibilities. Such devolution
includes transfer of records, equipment, personnel and other assets of national agencies and offices corresponding to
the devolved powers, functions and responsibilities. In the transfer process, the personnel of national offices and
agencies are absorbed by the local government in whose areas they are assigned as may be deemed
administratively feasible, provided there is no impairment of rights of personnel accorded by civil service rules and
regulations. The devolution is an overarching one, since it empowers local units through ordinance to sell, lease,
encumber or dispose of its public economic enterprises to ensure active private sector participation in 42 local
governance."

The scope of local autonomy allows local governments to create quasi-municipal corporations and to use BOT (build,
operate and transfer) arrangements for financing, constructing and operating infrastructures. However, local units
have not aggressively pursued nor taken advantage of this arrangement; instead they have settled for the traditional
approach to infrastructure financing through local revenues they are able to generate, national government subsidies
and loans from the municipal development fund. Their reluctance to avail of project financing, especially of the
non-recourse type where financiers get repaid through users' charges, may be due to the lack of technical expertise
and failure of local executives and decision-makers to prepare quality project proposals which is the basic
requirement by private sector investors and financiers for infrastructure and development projects.

The creation of development corporations like sanitary districts, water districts and other entities for public welfare
purposes can be undertaken in the exercise of governmental functions of the local government, but unfortunately our
local units have been timid in giving it a try. The suggested BOT arrangement should elicit local government interest
to harness private participation and at the same time free local governments from bonded indebtedness since
investors will be paid only on the basis of the cash flow which the project will generate. After the recovery of the
investment plus a reasonable return, the facility will be turned over to the local government. This component of power
devolution needs serious consideration.
Local units are vested the power of eminent domain provided this is exercised for public use or purpose or for the
general welfare and benefit of the poor and landless and only upon payment of just compensation. Such power is
exercised by the local chief executive based on an ordinance approved by the local council.44 Regional offices of
national agencies whose functions devolved to local units will be phased out within one year from the approval of the
code, after which time national entities may establish field units for monitoring purposes and for providing technical
assistance to local units. Assets and paraphernalia of the regional offices will be distributed to the local units within
the region as may be determined by an Oversight Committee created as mandated by the code.45 It is apparent that
the code authorizes and provides the mechanism for decentralization through devolution but this applies only to the
province, city, municipality and barangay and not to the subnational and intermediate governments of the
administrative regions and the autonomous regions of Muslim Mindanao and the Cordilleras.

Operative Principles of Decentralization

If devolution makes for local autonomy and the devolved functions becomes those of local governments, the central
government is freed from the responsibility of getting deeply involved in administrative and functional details which
may be more effectively performed at local levels. The extent of autonomy granted defines the functions allocated to
the national and local levels and establishes the supervision and control parameters of the national over the local.
Certainly the fear of creating petty local dictators who might abuse the devolved powers will still be there as
confirmed by our political culture. Doubts and uncertainties about the absorptive capacity of local units enter into the
equation of these issues and concerns. It is precisely because of these 46 concerns that the operating principles of
the devolutionary type of decentralization has sought to provide the guidelines and control mechanisms.

Since autonomy is meaningless without provision for generating resources to carry out duties and responsibilities,
local units are empowered to create and broaden their sources of revenue. They have the right to a share in the
proceeds arising from the utilization and development of the national wealth within their territorial jurisdiction. The
provincial government may levy taxes on transfer of real property ownership, printing and publication, business
franchise, sand, gravel and other quarry resources; exercise of profession, amusement and annual fixed tax on
delivery truck or van of manufacturers, producers, wholesalers, dealers or retailers of certain products.47 Municipal
government may impose tax on business and retirement of business; fees for the exercise of professions except
those reserved for the province; fees for the sealing and licensing of weights and measures and fishery rentals of
municipal waters.48 The city may levy taxes, fees and charges which the province and the municipality impose. The
barangay may collect service fees in connection with the regulation and use of barangay-owned properties and
service facilities like palay, copra and tobacco dryers; stores and retailers with fixed establishments based upon gross
sales of the previous year, barangay clearance fee for business and activity located or conducted within the
barangay. It may impose fees and charges for commercial breeding of fighting cocks, cockfights and cockpits;
admission to places of recreation, billboards, neon signs and other outdoor advertisements." 49 This process of
political decentralization encourages local initiative and self-reliance. The recipients of delegated powers are held
accountable to the people through the institution of recall, initiative and referendum. Local autonomy is assured not
only by the enabling act of the national legislature but also by administrative and organizational reform. It is the hope
that these mechanisms will continuously upgrade the quality of local leadership which is an important requisite for
service delivery and the improvement of the quality of community life.

Requiring local governments to pursue policies outlined by the central authority could be an effective control
mechanism. At the local level, there are institutions and processes to help ensure accountability. Certain national
policies need central government involvement in local affairs to prevent the emasculation and fragmentation of overall
objectives, ensure efficiency and economy in the context of nationally-determined priorities. Central government plays
a crucial role in promoting and maintaining national standards like basic labor wages and standards, human rights
and even the implementation of land reform. The comprehensive reform program (CARP), for example, requires the
political will and national leadership to prevent local political and landed elites from making a travesty of the program.
Retention limits have to be decided at the national level. At the local level, the councils can fiscalize acts of local
executives in as much as policy decisions are generally the prerogative of the sanggunians. The recall powers of the
inhabitants, as previously mentioned, and local elections every three mechanism. years serve as periodic
accountability

(3) Non-govemmental Organizations

In Third World countries like ours, decentralization means hamessing the energies and potentials of the non-
governmental organizations (NGO's). These NGO's have been aggressively asserting their role in local development.
Local govemments are encouraged to promote the establishment and operation of community organizations and
non-govemmental organizations to make them partners in development.

Local govemment units may enter into joint ventures and such other cooperative arrangements with people's and
non-governmental organizations to engage in the delivery of certain basic services, capability building and livelihood
projects, and to develop enterprises designed to improve productivity and income, diversify agriculture, spur rural
industrialization, promote ecological balance, and enhance the economic and social well-being of the people. 50
NGO involvement may be in planning of community development programs, implementation, monitoring and
evaluation to determine direction and harmonizing these with the national development agenda. Their role in
development may be complementary, supplementary or that of an alternative service delivery mechanism. Assistance
may be given by the local government concerned to these community organizations and non-governmental
organizations for cultural, economic, environmental, and socially-oriented projects undertaken within its territorial
jurisdiction. All these exemplify private sector participation in enhancing local empowerment as an alternative strategy
for sustainable development.

(4) Privatization

As a mode of decentralization, privatization involves the withdrawal of govemment from those areas of activity of
society where private enterprises are shown to be more efficient and effective. In this context, responsibility for certain
govemmental functions are transferred to the private sector. Certain government social amelioration programs,
health, sanitation and education are contracted out to private enterprise. The concept of privatization is very broad
and for purposes of decentralization, the term is made to apply only to private sector investment on support facilities
for delivery to local communities of basic services like agricultural credit, shelter programs, health care and insurance,
medical service, potable water supply, garbage collection, postal services, and road maintenance, among others. The
decision to privatize these governmental functions considers the effects upon employment problems, quality of
service and cost-benefit criterion. Partially relieving government of the burden of performing service functions by
sub-letting these to the private sector will enable it to focus on other more important pressing concerns.

Issues involving non-performing assets of government, abolition of certain government-owned and controlled
corporations (GOCC's), divestment and privatization restructuring, CARP financing and other economic dimensions
and implications of privatization will be treated more extensively in the chapter on Public Enterprise and Economic
Development Administration.

Finally, decentralization, implemented by use of the four aforementioned modes involves both the endogenous
resources of government and the efforts of exogenous groups outside of goverment to operationalize the service
functions of the polity. More than people empowerment and power distribution, it can be an instrument for
implementing social justice and an agent of social transformation.

THE ADMINISTRATIVE STRUCTURE

The setting up of the administrative department is actually aggregating work units. This requires knowledge and
understanding of what is to be done and deciding the group it will be part of. This task observes the principle of
homogeneity. There is no single principle of effective departmentalization. 51 The four criteria for departmental-
ization - purpose, process, clientele and place are not exclusive of each other. It is possible that any one of the four
considerations may be pre-eminent or dominant over the other three, but the construction of the secondary and
tertiary divisions of work will eventually take cognizance of the roles of the other three. The four criteria are
inter-dependent principles but with none of them singly used as the pattern for determining priorities, since much
depends upon expected outcomes at a given time and place.52 Not all activities of government can be neatly
aggregated under a single universal plan. Technological requirements, size of the entity, need for geographic
dispersal and time constraints for service delivery, are some of the intervening variables to be considered.

If public administration is principally a social design and a problem-solving enterprise more than art or science, then
the task of government would be to protect the interests of society, provide services to the clientele and resolve
problems. To achieve these requires a bureaucracy with proactive orientation, capable of anticipating changing
scenarios and acting on them; a bureaucracy able to influence and shape outcomes and committed to make socially
beneficial decisions.53

What is Bureaucracy?

Bureaucracy refers to the systematic organization of men and tasks into some kind of pattern that will facilitate the
achievement of group effort.54 It is a system with components which includes men, offices, authority and processes
for translating "community action" into rationally ordered "social action" 55 Ideally, it is characterized by technical
specialization. Technical skills and expertise require training and experience resulting in specialization which
ultimately makes for proficiency and professionalized careership government service. These optimize the possibility
for in carrying out administrative functions in accordance with "calculable rules" regardless of persons performing or
affected by said functions. Administration then becomes rational and depersonalized. Rules take precedence over
personal feelings and emotions. Because of objective standards, human irrationality is reduced to the minimum.

The type of bureaucratic structuring is, to a large extent, conditioned by the culture of society - its values, ideas and
even institutions. All organizations, for this matter, are social institutions with a culture complex, where members play
roles as influenced by patterned expectations defining the behavior of the role-players. Legitimacy of power exercise
is important to a bureaucracy. This is what authority is all about. It is the right to exercise and exert influence and
motivate others to do things as the organization or the leader so desires. Weber speaks of it as a relationship
between persons and not an attribute of an individual. It is a form of social control which rests upon the willing
compliance of subordinates. Authority arises not by virtue of the formal organization but rather built in the course of
social interaction and socialization process.

Three ideal types of authority have been identified by Weber and these have been construed as forms of domination.
When applied to the bureaucratic model of organization, they refer to bases of leadership. (1) Traditional authority
establishes legitimacy of rulership as arising from age-old practice handed down from generation to generation. (2)
Charismatic authority rests upon the individual personality of the leader, his innate charm to inspire loyalty and
devotion from others. (3) Legal-rational authority is established by rules, not necessarily inflexible but capable of
being changed rationally as situations demand.

The Philippine bureaucracy, while established upon rational-legal foundations, has elements of the traditional and the
charismatic as basis for legitimation. The indigenous is superimposed by the western Weberian model. Kinship ties
and primary group interests prevail over formal legal relations. Sense of pity and sympathy, gratitude for whatever
one has done for somebody in the past makes for dynamic relationship resulting in parochialism and personalism.
These breed reciprocal ties, with kinship obligations overturning the principle of merit and fitness.

Respect for the traditional elite results in dependency and unquestioning obedience to leadership by tradition and
charisma. Acceptance of the subordinate role of the traditionally established elites places premium upon
authoritarianism which pressures subordinates in the bureaucracy to conform without question. This is a form of
negative consent which shunt aside legal formularies and administrative rules. Our bureaucracy is apparently based
upon reciprocity where the behavior of bureaucrats influence the social structure and the organizational relationship
influences the behavior of bureaucrats. The positive implications are outweighed by the negative effects as shown by
studies of the operations of the Philippine bureaucracy which reveals vulnerability to nepotism because of
consanguinity, affinity and ritual kinship (compadrazgo); perpetuation of spoils bred by patronage and influence-
peddling; apathetic reaction to bureaucratic misconduct; invention of scapegoats for administrative deficiencies and
bureaucratic weakness; low regard for the merit system and lack of appreciation for dispatch and simplicity in
government operations and even open disregard for legal regulations and established procedures.

PHILIPPINE ADMINISTRATIVE STRUCTURE

There is no constitutional nor statutory prescription as to the number of departments in the executive branch of the
Philippine government. However, functional distribution of work and performance of functions by the executive have
to be considered. Of course the control powers of the President under Section 17 of Article VII of the 1987 Philippine
Constitution tasks him with the responsibility to faithfully carry out the mandate of the law and empowers him to finally
decide the number of departments.

Policy Guidelines for Implementation

Certain policy guidelines are observed in organizing departments. Program planning and implementation must be in
accordance with national policies. To ensure economy and efficiency, to minimize duplication and overlapping of
activities, bureaus and offices of a department are grouped on the basis of major functions. There is decentralization
of departmental functions in order to reduce red-tape, free national officials of administrative details and relieve them
of routine and local matters. There is delegation of appropriate authority to subordinate officials with decision-making
made at a level closest to the community clientele.56

Jurisdiction of the Department

The department possesses jurisdiction over bureaus, offices, regulatory agencies and government-owned and
controlled corporations assigned to it by law. The administrative relationship of the department with the sub- units and
agencies over which it possesses jurisdiction are of three categories:

a. supervision and control - This refers to the authority to direct performance of duty; restrain the commission of
acts; review, approve or modify acts and decisions of subordinate units and officials; prescribe standards, guidelines
and programs and determine priorities in executing plans and programs.

b. administrative supervision - Relates to the relationship between a regular department and regulatory agencies. It
means overseeing the operations of these agencies to ensure efficient, effective and economical management
provided there is no interference in the activities of the agency concerned. The department may require the agency to
submit reports, conduct management audit, performance evaluation and inspection to determine compliance with
policies, standards and guidelines set by the department. As a disciplinary measure and control mechanism, the
department may take appropriate action to require performance of official functions, rectify violations and other
abuses and similar kinds of maladministration.
Administrative supervision does not imply the authority to appoint or to perform personnel actions not in keeping with
decentralization of personnel functions. While the department can review and pass upon the budget proposals of the
agency, it may not increase such budget. It has no authority over contracts entered into by the agency because
appropriate laws, rules and regulations govern review of such contracts. It does not possess the power to review,
revise, reverse or modify agency decisions in the exercise of regulatory or quasi-judicial functions.57 The orverseer
role of the department is rendered meaningless since the regulatory agency is left almost free, independent and
autonomous in its actions and decisions over crucial issues requiring some kind of check or control.

c. attachment - This term applies to the lateral relationship between a department and the attached agency or
corporation for policy and program coordination. The department is entitled to have a representative in the corporate
board of the agency. The agency is required to come up with a periodic report on the status of its programs and
projects. Through the departmental representative, general policies are outlined for the agency to guide its internal
policies. Internal operations are a matter of internal concern for the agency.

An audited financial statement by the agency or corporation to the Secretary of the department to which it is attached
within sixty days after the close of the fiscal year. The budget for the previous fiscal year continues to be the basis of
the expenditure of the corporation until such time that its financial statement for the fiscal year is received by the
department secretary. Once the government corporation incurs an operational deficit at the close of the fiscal year, it
will be put under the administrative supervision of the department and its operating and capital budget will be subject
to examination, review, modification and approval of the department.58

While supervision and control powers are exercised by the department, sufficient initiative and freedom of action are
encouraged by giving the bureaus and offices reasonable opportunity to decide before control is exercised by the
department. For those functions involving discretion, experienced judgment and expertise, departmental control may
be exercised only as provided for by the law vesting such functions in the subordinate agency.

Authority Delegation

To implement plans and programs effectively, authority over and responsibility for operations may be delegated to
bureau directors and regional directors. The extent of such delegation is circumscribed by the need for economy,
efficiency and effective implementation of national and local programs in accordance with policies and standards
developed by the department. The regional field offices are the operating arms of the bureaus. As counterparts of the
bureaus in the regions, they are directly responsible to the bureau director for the operations they undertake.

THE DEPARTMENTS OF GOVERNMENT*

There are two hundred sixty eight (268) agencies composed of twenty-one (21) administrative departments, one
hundred nine (109) attached entities and one hundred thirty nine (139) other agencies.99 These are grouped into 59
eleven sectors based upon mission or purpose, overall programs and specific plans and functions of the agencies
concerned.

1. GENERAL GOVERNMENT SECTOR

The agencies involved in the development and maintenance of an organization structure supportive of general
governmental administration include the Department of Budget and Management, Department of Finance,
Department of Foreign Affairs, the National Economic Development Authority and the Office of the Press Secretary.

Department of Budget and Management

The two basic concems of this department have to do with budget functions and control and management services.
Two constituent units are responsible for budget functions and control (1) The Budget Operations Office reviews and
analyzes budgetary proposals of national and local government agencies and corporations; sees to it that these
entities comply with budgetary policies and project priorities; determines budgetary implications of foreign-assisted
projects, and implements fiscal policies for budget preparation and control. There are four bureaus to perform the
above enumerated functions: National Government Budget Bureau A & B; Local Government Budget Bureau; Budget
Planning Bureau; Foreign Assisted Projects Bureau. (2) National Accounting and Finance Office takes charge of the
maintenance of the data bank for the financial information of fiscal agencies and international financial institutions;
analyzes and evaluates accounts and overall financial performance of government; supervises and manages the
accounts of government agencies and instrumentalities. These functions are the responsibility of three bureaus,
namely, the National Government Accounting and Finance

*The powers, functions and responsibilities of the departments and component units are based on the provisions of
the Administrative Code o 1987, Agency Profile and Program Targets FY 1992, pertinent executive orders and other
issuances of the President, Cabinet Resolutions and departmental orders.

Bureau, and the Government Corporate Accounting and Finance Bureau.

The management services components responsibility of the Department of Budget and Management. are the These
are provided for by the Systems and Procedures Bureau, Organization and Productivity Bureau and the
Compensation and Position Classification Bureau. Support services are provided by the Legislative, Administrative
and Procurement Services and the Financial and Computer Services.

Department of Foreign Affairs

The Department of Foreign Affairs is the lead agency assisting the President in the field of foreign relations guided by
the paramount considerations of national sovereignty, territorial integrity and the right to self determination. Its powers
and functions include the conduct of relations with other states, negotiate treaties and other agreements as
authorized by the President in coordination with other appropriate government agencies; promote trade investments,
tourism and economic relations; foster cultural relations and enhance the positive image of the Philippines abroad;
protects and assists Philippine nationals abroad; perform legal documentation functions and provide information
about events in other countries which have a bearing upon Philippine national interest.

The Department of Foreign Affairs consists of the Home Office and the Foreign Service establishments. The home
offices include line/operational units which are organized to take charge of the different geographic areas of the world
like the Office of Asean Affairs, Office of Asian and Pacific Affairs; Office of American Affairs, Office of European
Affairs, and Office of Middle Eastern and African Affairs. There are service offices and councils assisting the line
units. The Foreign Service Institute, the Board of Foreign Service Examiners and the Board of Foreign Service
Administration which take charge of administering qualifying examinations for career foreign service officers.

Attached to the Home Office are the Law of the Sea Secretariat, the Inter-Agency Technical Committee on Economic,
Scientific and Technical Cooperation with Socialist Countries (SOCOM), the Inter-Agency_Technical Committee on
Technical Cooperation Among Developing Countries (IATC-TCDC), Permanent Inter-Agency Technical Committee on
ESCAP Matters (PITCEM).

The Philippine foreign service consists of fifty-two (52) diplomatic missions composed of fifty embassies and two
United Nations missions; one hundred three (103) consular posts with two consular establishments headed by
honorary consular officers. Personnel from other government agencies assigned to the foreign service
establishments include attaches for trade and industry, labor and employment, national defense, tourism, agriculture;
officers from the Philippine National Bank, Bureau of Internal Revenue, Commission on Filipinos Overseas and the
Commission on Audit.

Department of Finance

This department is mandated to ensure sound and efficient generation and management of the fiscal and financial
resources of government. It reviews, approves and manages all public sector debt, local and foreign, to ensure that
borrowed funds are effectively used and obligations promptly serviced by government. Because of the scarcity of
domestic resources to finance projects and programs envisioned in the Mid-Term Philippine Development Plan for
1987-1992, and because of the need to minimize dependency on foreign borrowings, the department seeks to
strengthen government capacity to generate its own financial resources.

It supervises revenue operations of local governments to make them less dependent upon national government
funding. It makes use of different types of sourcing like revenues and operations foreign and domestic borrowing, and
sale or privatization of assets. Supervision of revenue collection, custody and management of government financial
resources, debt negotiation, servicing and restructuring are also the concern of this department.

Five major working groups have been set up to take of the above-mentioned commitments: Policy care Development
and Management Services Group, Revenue Operations Group, with the Bureau of Internal Revenue and Bureau of
Customs as major components; the Corporate Affairs Group to oversee the operations of government corporations
and financial institutions and the assets privatization office; the Domestic Finance Group with the Bureau of Treasury
as the principal custodian of funds and manager of the cash resources of government; the Bureau of Local
Government Finance which oversees local government revenue administration and fund management, including
sourcing, collection mechanisms, credit utilization, local taxation and real property assessment. The International
Finance Group assists in the formulation of policy guidelines for borrowing, international financial negotiations of new
loans, debt rescheduling, ensures implementation of foreign funded projects and compliance with debt repayment
obligations.

2. AGRICULTURE, AGRARIAN REFORM AND ENVIRONMENT SECTOR

Three government departments are involved in the basic concerns of this sector to achieve growth that is
geographically dispersed and demographically equitable. These are the Department of Agriculture, Department of
Agrarian Reform and the Department of Environment and Natural Resources. The components of this sector aim at
providing the mechanisms for the allocation of the wealth of the nation, provide employment and income, ensure
access to natural resources through sound environmental management policy.

Department of Agrarian Reform

The Department of Agrarian Reform coordinates the national reform program designed to transform farm tenants and
lessees into owner-cultivators; provides leadership in the development of support services to tenant-farmers, farm
managers and other cultivators; assists the financing, production, marketing and other aspects of farm management.
Its line bureaus are the Bureau of Agrarian Legal Assistance for the resolution of agrarian disputes and problems and
representation of agrarian reform beneficiaries regarding cases arising from agrarian disputes; the Bureau of Land
Development which makes survey reports for the production of soil maps, draws up programs for agricultural
development and guidelines for the conversion of private agricultural lands to non-agricultural development and
guidelines for the conversion of private agricultural lands to non-agricultural use; reviews specifications and cost
estimates of land development projects; the Bureau of Land Tenure Development for developing policies and
procedures for acquisition and distribution of public and private agricultural lands; sets standards for land valuation
and compensation schemes for agrarian reform areas; identification and inventory of tillers, landowners and
landholdings; review and evaluation of documents for the registration and issuance of Emancipation Patents and
Titles.

The Bureau of Agrarian Reform Beneficiaries Development formulates policies and guidelines for the development of
agrarian reform areas into agro-industrial estates; encourage growth of cooperative system of production, processing,
marketing, credit and services; development and management of resettlement areas and landed estates; serves as
liaison between the Department of Agrarian Reform and agrarian reform beneficiary organizations and establishes
linkages with agencies involved in farm support services. The Bureau of Agrarian Reform Information Education
provides policy guidance for effective and continuing information, education and promotional activities; conducts and
coordinates training and education programs for enhancing farmer participation and provide functional assistance on
farmer education.

There are staff units for management and executive services, legal and public assistance, research and planning,
finance, physical assets management, personnel and administrative services. The agencies attached to the
department are the Land Bank of the Philippines, Agricultural Credit Administration, and the Agrarian Reform
Coordinating Council.

Department of Agriculture

The promotion of agricultural growth and development is the primary concern of this department. In pursuit of this
goal, its effort are dedicated to the uplift of the quality of life especially of the small farmers and fishermen and other
rural workers. It envisions sustainable resource productivity, a progressive rural economy with dynamic agro-industrial
country-side communities. This country-side development thrust implements the principle of social justice enshrined
in the constitution.

Its line bureaus are the Bureau of Animal Industry for the development and expansion of livestock, poultry and dairy
industries. Quality standards in the manufacturer and sale of livestock, poultry and allied industries are prescribed by
this bureau. The Bureau of Plant Industry aims at producing improved plant materials, protection of agricultural crops
from pests and other plant diseases; development and improvement of farm equipment and structures related to plant
industry; formulation of policies regarding plant quarantine, prevention, control and eradication of pests. The Bureau
of Fisheries and Aquatic Resources is responsible for the management, development and proper utilization of fishery
and aquatic resources and undertakes studies on the economics of the fishing industry. The Bureau of Soils and
Water Management renders assistance on matters related to the utilization and management of soils and water which
includes water resource utilization, soil conservation, impounding and prevention or erosion, fertility preservation, and
rain-making projects for watersheds and agricultural areas during prolonged droughts. The Bureau of Agricultural
Research undertakes researches and establishes linkages with research institutions, especially state colleges and
universities. The Agricultural Training Institute trains agricultural extension workers and their clientele and
communicates research results to farmers and fishermen through appropriate training and extension activities.

There are support services for policy and planning. Regional offices are set to provide frontline services to the
clientele. Implementation and monitoring of its programs at the provincial level is the responsibility of the Provincial
Agriculture and Fisheries Officer; for the municipal and barangay level that of the Municipal Agriculture and Fisheries
Officer.

The attached agencies include the Philippine Coconut Authority, the National Food Authority, the Councils for
Agricultural Credit Policy, Livestock Development, National Agricultural Fishery, National Nutrition and the Philippine
Administrative and Technical Committee for Southeast Asia Fisheries Development Culture (SEAFDEC).

Department of Environment and Natural Resources

The Department of Environment and Natural Resources is the primary agency of government for the sustainable
development of natural resources and ecosystems. Its task includes sustainable development of forest resources,
optimal utilization of lands and minerals, efficient and socially equitable use of resources, and effective environmental
management. It implements the mandate of the constitution to conserve and develop the natural resources of the
nation. This department plays a significant role in addressing the issues of resource depletion, environmental
degradation, inequitable distribution and allocation of lands and natural resources; upland poverty and continuous
influx of lowland migrants, tenurial problems in the public domain, rationalization of forest-based industries and small
scale mining Its line units are organized on the basis of purpose just like the other departments of government. The
Forest Management Bureau aims at the effective protection, development and conservation of forest lands,
watershed areas, grazing-lands and mangroves. It reforests and rehabilitates critically denuded and degraded
forests, develops water resources and national parks, preserves wilderness and game refuges, wildlife sanctuaries
and ancestral lands; propagate industrial tree plantations, tree and agro-forest like rattan, bamboo and other
non-timber products. The Land Management Bureau manages alienable and disposable lands in the public domain
and reclaimed lands, commercial and industrial and urban properties which are not within the responsibility of other
government agencies. Its dispositive functions may be in the form of leasehold, direct sale and issuance of patents.
The Mines and Geo-Sciences Bureau provides assistance to the mining sector in the development of applicable
technologies in geological surveys and assessment of mineral resources, laboratory services for geological,
metallurgical, chemical and rock mechanics and assists in the conduct of marine geological and geophysical
exploration drillings. It enforces mining laws to ensure compliance with safety standards for mining operations. The
Environmental Management Bureau is concerned with the environmental quality standards for land, air, water, noise
and radiation. Assessment of the environmental impact of projects to ensure proper disposal of solid and other toxic
and hazardous wastes are enforced by this bureau. Industrial establishments are required to comply with these
standards which constitute the basis for the issuance of the Environmental Compliance Certificate (ECC).

Non-compliance means imposition of fines and penalties. The Ecosystems Research and Development Bureau is
engaged in integrated research in the Philippine ecosystems and natural resources aimed at developing the
technologies supportive of its thrust. The Protected Areas and Wildlife Bureau is committed to the conservation of
wildlife and other protected areas like national parks, wildlife sanctuaries and other sensitive environmental areas.

The agencies attached to the Department of Environment and Natural Resources are the Population Adjudication
Board, the National Mapping and Resource Information Authority, the Natural Resources Development Corporation
and the National Electrification Administration.

3. TRADE AND INDUSTRY SECTOR

Two departments are involved in the task of reconciling the process of industrialization with the economic, social and
political processes-Tourism and Trade and Industry.

Department of Tourism

The Department of Tourism is the agency for the promotion of tourism as a major socio-economic activity for
generating foreign currency and employment; spread tourism benefits to a wider segment of the population; assure
safe, convenient and enjoyable stay and travel of local and foreign tourists. Its line bureaus to implement these
mandates are the Bureau of International Tourism Promotion, the Bureau of Domestic Tourism Promotion, Bureau of
Tourism Information and the Office of Tourism Standards. Assisting the line bureaus to carry out these mandates are
a number of service units like the Office of Tourism, Office of Development Planning and Tourism Coordination.

Department of Trade and Industry

This department is mandated to coordinate, promote and regulate trade, industry and investment activities. It is
committed to intensify private sector activity and sustain economic growth through a socially responsible liberalization
and deregulation program and a comprehensive growth strategy. While it aims at protecting Filipino enterprises
against foreign competition and trade practices, one wonders how this protection can be achieved by a deregulated
and a liberalized trade policy rather than import control.

The five working groups of this department are Industry and Investments, International Trade, Policy Planning and
Special Concerns, Administrative and Technical Services, and Regional Development. Under the Industry and
Investments Group are the Board of Investments; Bonded Export Marketing Board; Construction Industry Authority of
the Philippines; Council for Investments; and the Export Processing Zone Authority. Under the International Trade
Group are the Bureau of Export Trade Promotion; Foreign Trade Service Corps; Bureau of International Trade
Relations, Center for International Trade Expositions and Missions; Garments and Textile Export Board; Philippine
International Trading Corporation; International Coffee Organization-Certifying Agency; Philippine Shipping Council;
Philippine Trade Training Center. The entities under the Administrative and Technical Services Group are the Bureau
of Patents; Trademarks and Technology Transfer; Financial Management Service; Office of Legal Affairs and the
General Administrative Services. The entities under Policy, Planning and Special Concerns, are the Bureau of Import
Services; Cottage Industry Technology Center; Center for Labor Relations Assistance; Construction Manpower
Development Foundation; Management Information Service; National Manpower Training Council; Office of
Operational Planning and Office of Special Concerns. The support bureaus of the Regional Development Group are
the Bureau of Domestic Trade Promotion; Bureau of Trade Regulation and Consumer Protection; Bureau of Product
Standards; Bureau of Small and Medium-Business Development.

4. INFRASTRUCTURE AND ENERGY SECTOR

The goods and services provided by this sector include infrastructure, power, transportation and communication.
These provide the physical foundation for the economy to operate efficiently. Three departments carry out these
responsibilities.

Department of Public Works and Highways

The Department of Public Works and Highways is the engineering and construction arm of the nation. It
plans,designs and maintains and operates infrastructure facilities like national highways, flood control, water
resources development systems and other public works. Its technical bureaus include the Bureau of Design; Bureau
of Construction; Bureau of Maintenance; Bureau of Equipment and Bureau of Research and Standards.

Most of the field operations responsibilities of the department are implemented by the regional offices set up in the
different geographic regions of the country, the district offices and the engineering offices of city governments. There
is a Project Management Office responsible for local and foreign-assisted projects.

Department of Transportation and Communication

The Department of Transportation and Communication is responsible for the promotion, development and regulation
of dependable and coordinated networks of transportation and communication and postal services. These services
are needed to enhance mobility and coordination of the constituent sector of the nation. Its line offices include Land
Transportation Office; Air Transportation Office; Telecom- munications Office and Postal Services Office.

There is the Land Transportation Franchising and Regulatory Board with quasi-judicial powers with respect to land
transportation. It prescribes and regulates routes and zones of operation of public land transportation services. It is
responsible for the issuance of Certificates of Public Convenience or permits for the operation of public land
transportation.

A number of agencies and corporations are attached to this department like the Metro Manila Transit Corporation;
Philippine National Railways; Light Railway Transit Authority; Philippine Aerospace Development Corporation; Civil
Aeronautics Board; Philippine Ports Authority; the National Telecommunications Commission, and the Marine
Industry Authority.

Special Concerns, Administrative and Technical Services, and Regional Development. Under the Industry and
Investments Group are the Board of Investments; Bonded Export Marketing Board; Construction Industry Authority of
the Philippines; Council for Investments; and the Export Processing Zone Authority. Under the International Trade
Group are the Bureau of Export Trade Promotion; Foreign Trade Service Corps; Bureau of International Trade
Relations, Center for International Trade Expositions and Missions; Garments and Textile Export Board; Philippine
International Trading Corporation; International Coffee Organization-Certifying Agency; Philippine Shipping Council;
Philippine Trade Training Center. The entities under the Administrative and Technical Services Group are the Bureau
of Patents; Trademarks and Technology Transfer; Financial Management Service; Office of Legal Affairs and the
General Administrative Services. The entities under Policy, Planning and Special Concerns, are the Bureau of Import
Services; Cottage Industry Technology Center; Center for Labor Relations Assistance; Construction Manpower
Development Foundation; Management Information Service; National Manpower Training Council; Office of
Operational Planning and Office of Special Concerns. The support bureaus of the Regional Development Group are
the Bureau of Domestic Trade Promotion; Bureau of Trade Regulation and Consumer Protection; Bureau of Product
Standards; Bureau of Small and Medium-Business Development.

Department of Energy

This is the most recent department of government created by virtue of Republic Act 7638, otherwise known as the
Department of Energy Act of 1992, approved December 9, 1992. This department is charged with the responsibility
for carrying out programs related to energy supply for the requirements of the country. It aims at pursuing a policy of
intensive exploration, production, management and development of indigenous energy resources; encourage
participation of the private sector in energy resource development; integrate and coordinate governmental policies to
achieve self-sufficiency and enhance energy and power productivity while maintaining the ecological balance of the
environment. Because of our dependence upon energy and because of the uncertainty of oil prices and the
controversy over the use of the Bataan Nuclear Power Plant, government needs to tap other energy sources. This
department therefore advises the President and the Cabinet on policies concerning energy.
The organic act creating this department mandates that after a four-year period from its effectivity, there shall be
instituted a program de-regulating energy projects and activities. A timetable for implementing this policy shall be set
up in keeping with the privatization policy of the state. Four operating bureaus are responsible for effectivity
discharging said powers and functions, with the assistance of two support services.

The Energy Resource Development Bureau is responsible for formulating and implementing policies for developing
and increasing domestic supply of local energy sources like fossil fuels, nuclear fuels and geothermal resources,
formulating programs and plans for exploration, development and extraction of local energy resources; provide
consultative training and advisory policy guidelines relative to the operations of service contractors.

The Energy Utilization Management Bureau is responsible for the formulation and implementation of policies relative
to economic transformation, conversion, processing, marketing and storage of petroleum, coal, natural gas,
geothermal and other non-conventional energy resources like wind, solar, biomas, among others; monitor sectoral
energy consumption; audit energy management advisory services and technology application projects on energy
utilization; formulation of an integrated rural energy program and an operational plan for fuel, oil and energy source
allocation in the event of critically low energy supply. It coordinates with the Department of Environment and Natural
Resources on matters regarding environmental standards and develops middle and long-term energy technology
development strategies in cooperation with the

Department of Science and Technology.

The Energy Industry Administration Bureau assists in the formulation of regulatory policies and set standards for the
operations of government and private sector entities involved in energy resource supply activities, whether
conventional or non-conventional. It formulates policies, guidelines and requirements relative to the operations of oil
companies, dealers of petroleum products, coal importing and distributing companies, natural gas distributing
companies, power producers and other suppliers of conventional energy.

The Energy Planning and Monitoring Bureau assists in the development and updating short, medium and long-term
plans; assesses demand and supply options, including the impact of energy policies upon the economy, the
environment and quality of life of the people; reviews programs and plans for power development, local energy
source development and production and energy importation; reviews and analyzes current patterns of consumption in
relation of economic energy growth and development performance; guarantees the restoration, protection, and
enhancement of the quality of the environment, public health and safety.

Among the attached agencies are the Philippine National Oil Company, the National Power Corporation and the
National Electrification Administration.

5. EDUCATION, CULTURE AND MANPOWER DEVELOPMENT SECTOR

Two departments implement the goals and programs of this sector, the Department of Education, Culture and Sports
and the Department of Labor and Employment.

Department of Education, Culture and Sports

The Department of Education, Culture and Sports formulates, implements and coordinates policies, programs and
projects in the field of formal and non-formal education at all levels. It supervises public and private educational
institutions; establishes and maintains an integrated system of education relevant to the goals of national
development. The goal of education and manpower development sector is to develop individual potentials for
productivity and self actualization in order to contribute to social development.

The functional bureaus are for elementary education, secondary education, technical and vocational education,
tertiary or higher education, non-formal education, physical education and school sports. Regional offices in the
administrative regions have been set up to oversee the school divisions and the school districts. Several agencies
like the National Museum, National Library, Instructional Materials Corporation, the Institute of Philippine Languages,
the National Historical Institute, among others, are attached to it since their functions are related.

Department of Labor and Employment

As policy-making entity and coordinator in the area of labor and employment, the Department of Labor and
Employment is responsible for promoting gainful employment opportunities and optimizing the development and
utilization of the Philippine labor force. It implements labor and social legislation and regulates relations between
worker and employer.

These responsibilities are undertaken by the following operational bureaus - Labor Relations, Local Employment,
Women and Young Workers, Rural Workers and Working Conditions. Attached to the department are the National
Wages Council; the Philippine Overseas Employment Administration; the National Power and Youth Council and the
Employees Compensation Commission, among others.

6. HEALTH AND SOCIAL WELFARE SECTOR

The efficient operation of the economy rests upon provision of health, housing and other social services. Performance
of these fulfills not only the humanitarian functions but also reinforces the collective effort to pursue development
goals.

Department of Health

The primary function of this department includes the promotion, protection, preservation and restoration of the health
of the people through delivery of health services and goods. These functions are performed by three line offices. The
Office for Public Health Services takes charge of maternal and child health, tuberculosis control, family planning,
environmental health, nutrition, dental health, malaria control,. schistosomiasis control of non- communicable and
communicable diseases. The Office for Hospitals and Facilities Services is for hospital operations and management,
radiation health, hospital maintenance and health infrastructure. The Office for Standards and Regulations has three
bureaus and one national office to formulate and enforce regulatory policies and standards over the various areas of
health. The Bureau of Research and Laboratories, sets up policies for the establishment, accreditation and licensing
of laboratories, blood banks and entities handling biological products. The Bureau of Food and Drugs prescribes
general standards and guidelines to check on the veracity of nutritional and medicinal claims of products being
advertised; enforces rules and regulations pertaining to food, drugs, cosmetics, traditional medicine and household
products. The Bureau of Licensing and Regulation licenses and regulates hospitals, clinics and other health facilities;
sets standards to be used for inspection and licensing. The National Quarantine Office formulates and implements
quarantine laws and regulations through its field offices; supervises rat-proof zones in international airports, and
conduct examination of aliens for immigration purposes.

It has regional offices, as well as provincial, district and city health offices to provide for the health needs of the
clientele communities. The entities attached to it are the Philippine Medical Care Commission and the Dangerous
Drugs Board. The Philippine Heart Center, Lung Center of the Philippines, Philippine Childrens' Medical Center and
the Kidney Institute are corporations also attached to it.

Department of Social Welfare and Development

The mission of this department is to protect and rehabilitate the physically and mentally disabled and the socially
disadvantaged to restore them to effective social functioning and participation in community affairs. The goal is to
assure their-well-being and liberate the poor from deprivation.

Its functional units are the Bureau of Emergency Assistance for relief and rehabilitation of victims of natural calamities
and social disorganization, including cultural communities and other distressed and displaced persons. The Bureau of
Family and Community Welfare gives assistance to socially disadvantaged families communities including family
planning and outreach and programs. The Bureau of Disabled Persons Welfare is engaged in disability prevention
and rehabilitation of the physically, mentally and socially disabled. The Bureau of Women's Welfare gives special
attention to the prevention and eradication of all forms of exploitation of women like illegal recruitment and
prostitution. The Bureau of Child and Youth Welfare takes care of the abandoned, abused, neglected and exploited
children, delinquents, offenders, street children, and victims of prositution.

It has welfare facilities like centers for drug abuse, street children youth, with special needs, reception and study and
homes for the aged and the unwed mothers. The Population Commission, Council for the Welfare of Children,
National Nutrition Council and the National Council for Disabled Persons coordination. are attached to it for functional

7. DEFENSE SECTOR

To guarantee the sovereignty of the Republic of the Philippines, its territorial integrity and the security of its people,
three entities have been established - the Department of National Defense, the National Intelligence Coordinating
Agency and the National Security Council.

The Department of National Defense provides security, stability, peace and order needed for economic growth and
development. The concept of national security encompasses not only politico-military but also socio-economic
strength. This maximization of its role in socio-economic development parallels its traditional role of securing the
country against external and internal threats.

The entities under its supervision and control are the Government Arsenal for the manufacture of munitions for the
military establishment and mobilization of civilian industry to augment its production capacity in times of emergency;
the Office of Civilian Defense for coordinating the various entities of the national government, private institutions and
civil organizations for the protection of the civilian population and property in times of war or national emergency. The
Philippine Veterans Affairs Office administers the benefits to veterans and their beneficiaries; provides medical care
and treatment; assistance to widows and dependents and retired military personnel. The Armed Forces of the
Philippines upholds the sovereignty of the state, supports the constitution, defends the territory and provide national
security. Its three major service commands are the Philippine Army, Philippine Navy and the Philippine Air Force. The
National Defense College of the Philippines develops national defense and civilian leaders and selected private
executives for effective participation in the formulation of national policies. The Veterans Memorial Center provides
medical and dental care to veterans and their dependents.

8. SCIENCE AND TECHNOLOGY

Science and technology are crucial to industrialization. In the Philippines, the thrust is discovery and development of
indigenous technologies and adoption of the foreign to the local environment. The government supports self-reliant
scientific and technological capabilities needed for the productive systems of the country in the context of
developmental goals. It encourages public and private enterprise sector partnership and initiative in science and
technology and enjoins the private sector to undertake greater role in research and development efforts.

The Department of Science and Technology has five Sectoral Planning Councils for formulating policies and
programs and strategies for science and technology development and monitoring research projects. The Philippine
Council for Industry and Energy Research and Development for industry, energy and mineral resources; the
Philippine Council for Agriculture, Forestry and Natural Resources for agriculture and forestry resources; the
Philippine Council for Health Research and Development for health; the Philippine Council for Aquatic and Marine
Research and Development for aquatic and marine resources; and the Philippine Council for Advanced Science and
Technology Research and Development for advanced science and technology.

There are eleven research institutes under it - Industrial Technology Development; Philippine Nuclear Research;
Forest Products Research and Development; Food Nutrition Research; Philippine Textile Research; Advanced
Science Technology; Science Education; Science and Technology Information; Technology Application and
Promotion; Philippine Atmospheric, Geophysical Astronomical Services Administration, and the Philippine
Volcanology and Seismology Institute.

The National Academy of Science and Technology and the National Research Council of the Philippines are
component scientific bodies under it.

9. PUBLIC ORDER AND SAFETY SECTOR

The state provides a mechanism to ensure a just and humane society under the rule of law and a regime of justice,
freedom, love, equality and peace. Deprivation of live, liberty and property may be done only after due exhaustion of
the due process of law clause of the constitution. There is the guarantee of equal protection of the law. These
functions are carried out by the Department of Justice and the Judiciary. In as much as the concern of this chapter is
administrative organization and structure, only the Department of Justice will be discussed.

The Department of Justice is the legal counsel and prosecuting arm of government. It maintains a just and orderly
society through effective, speedy and compassionate administration of justice. The ten operational units under it are
the Government Corporate Counsel to provide legal services to the national government and its functionaries and the
government-owned and government-controlled corporations; the National Bureau of Investigation (NBI) for the
detection, investigation and prosecution of crimes; the Public Attorney's Office to extend free legal assistance,
representation of indigents and poor litigants in criminal cases and in non-commercial civil disputes; the Board of
Pardons and Parole to conserve and redeem human resources by granting parole, recommending pardon, probation
and other forms of executive clemency to qualified convicts and accords humane treatment to prisoners; the Bureau
of Corrections for the rehabilitation of prisoners; the Parole and Probation Administration for managing the parole and
probation system and supervising all parolees and probationers.

The Land Registration Authority preserves and safeguards the integrity of land titles through proper registration and
other legal documents. The Bureau of Immigration provides immigration and naturalization regulatory services and
implements laws governing citizenship, admission and stay of aliens. The Commission on the Settlement of Land
Problems investigates and arbitrates untitled land disputes involving small land owners and those of indigenous
cultural communities. The Office of the Solicitor General is an independent and autonomous office attached to the
department to act as the law firm of the Republic of the Philippines. It prosecutes and defends government actions
and policies, including those of public officers when sued in the exercise of their official duties.

There is an Office of the Chief Prosecutor to assist in the performance of powers and functions of the department
relative to the role of prosecution arm of government. Its counterpart on the provincial level is the Provincial
Prosecution Office and the City Prosecution Office in the case of cities.

10. LOCAL GOVERNMENT SECTOR

The local autonomy thrust has resulted in a responsive and accountable local government structure instituted through
decentralization. Correspondingly, powers and revenues have been allocated to local government units and given just
share in national taxes and equitable share in the proceeds of natural resources. Community empowerment forms
part of this mandate.

Department of Interior and Local Government

This department is responsible for performing the above-mentioned mandated functions. Its operational line units are
the Bureau of Fire Protection for the improvement and integration of fire prevention and suppression services and the
coordination of the activities of fire operation centers; the Bureau of Jail Management and Penology for providing
security to prisoners and promoting their spiritual, social and moral well-being; the Philippine National Police for
coordinating and directing activities of police units. These activities are coordinated by the department through the
National Police Commission. The Local Government Bureau provides guidance to local units through issuance of
policy and program guidelines and standards; encourages community and citizen participation in the political and
social development of the barangays. There is a Local Government Academy for the training of local government
officials to enhance their technical capabilities and prepare them to effectively handle their duties and responsibilities
under an autonomous local government set-up. Lately, there has been established a Philippine Public Safety College
to train local government employees to meet emergencies arising from natural and man-made disasters. Regional
offices have been established in the administrative regions to assist local units in the performance of their functions.

11. CULTURAL COMMUNITIES SECTOR

National programs of government consider the rights of indigenous cultural communities in order to preserve their
culture, traditions and institutions. While the majority of the population are Christians, the smaller ethnic and religious
groups are also entitled to democratic space. Structures have been set up for the protection of their rights and well-
being.

The Kalinga Special Development Authority aims to hasten the growth and development of Kalinga to enable the
inhabitants to actively participate in the task of national development. The Office of Muslim Affairs aims to preserve
the culture, traditions and institutions of Muslim Filipinos with due regard for national unity. There are bureaus
established to cover the areas of Muslim settlement, cultural affairs, cooperatives development, pilgrimage and
endowment, and external affairs; The Office for Northern Cultural Communities for the preservation of the traditions
and institutions of the northern cultural communities; the Office for Southern Cultural Communities for the
preservation of the traditions and institutions of the southern cultural communities with due regard for national unity
and development. This sector is primarily concerned with the improvement of the quality of life, social and economic
well- being of the non-christian segment of the inhabitants and integrate them into mainstream of Philippine society.

Overseeing The Bureaucracy

Supervision and control powers manifest the very essence of unitary government better characterized by some
degree of centralization where local government programs must be consistent with the national program, local
autonomy notwithstanding. Supervision and control are broad and extensive powers, the effective exercise of which
requires the services of a core of dedicated and committed professionals to assist the chief executive formulate
policies and establish guidelines for rationalized governance of public affairs.

Complementary to the supervisory powers, the President possesses control powers over executive departments,
bureaus and offices to ensure faithful execution of the laws as provided for in Section 17, Article VII of the 1987
constitution. Chapter 3, Article 1, Section 25 of the Local Government Code of 1991 empowers the President to
exercise general supervision over local units to see to it that their acts are within the scope of their prescribed powers
and functions.

Furthermore, the President directly exercises supervisory authority over provinces, highly urbanized cities and
independent component cities and municipalities, through the province with respect to component cities and
municipalities and through the city or municipality with respect to the barangays. Upon request, the President can
direct the appropriate national agency to provide financial, technical and other forms of assistance to the local
government without extra expense on the part of the local government. To assist the President in the performance of
the mandate of the constitution and the law are entities which provide technical and administrative support.

The Presidential Management Staff

In 1962, President Diosdado Macapagal perceived the need for a technical staff to help formulate economic policies,
determine economic priorities, conduct technical and policy research and coordinate the implementation of socio-
economic programs of government. The Program Implementation Agency (PIA) was therefore created for this
purpose. By 1966, the Presidential Economic Staff (PES) was set up to serve as technical staff for economic
development. The bias for economics was highly justifiable for a developing country like ours bent on expediting the
pace of development. This was later enlarged into a Development Management Staff (DMS) in 1970 to assist the
Chief Executive and top level policy decision-making councils and to respond to the development needs and crises
situations. 1976 saw the integration of the Cabinet Secretariat, the Secretariat of the Government Corporate
Monitoring and Coordinating Council (CCMC) and the Philippine Human Resources Development Center (PHRDC) in
the Presidential Management Staff.

The President Management Staff exercises very broad powers and functions defined by Executive Order No. 130 of
January 30, 1987 before the ratification of the 1987 Constitution. It is mandated by this executive order to be the
primary government agency to provide staff assistance in the presidential exercise of the overall management of the
development process.

Powers and Functions

Section 5 of EO 130 clearly enumerates the specific functions of the PMS to wit:

a.) provide technical assistance and advise directly to the President in exercising management of the development
process overall
b.) analyze and monitor national programs and projects
c.) formulate and implement development management information systems and programs that will include upgrading
and strengthening the Office of the President in terms of computer and communication technology for more effective
information management management support and decision
d.) conduct continuing analysis and evaluation of economic, social and political trends
e.) conduct studies on methods for the effective and efficient execution of development programs and projects
f.) conduct review, analysis and evaluation of proposed and development existing policies affecting
g.) provide centralized feedback mechanism on the implementation of national government projects
h.) identify bottlenecks in project implementation or problem areas and possible sources of delays and formulate
solutions and corrective measures thereto
i.) translate presidential perspectives, insights, policies and plans on development issues into strategic action
programs/projects
j.) assist in the coordination function for the President with respect to the implementation of the various development
programs of the government
k.) implement initial action on critical areas such as but not limited to the National Reconciliation and Development
Program where the President wishes to lead in piloting development initiative that can subsequently be turned over
by the line departments.
I.) Provide a direct feedback mechanism to and from the people and the Office of the President
m.) Exercise direct control and supervision over such organizations, offices, agencies, programs and projects as may
be aligned, assigned, or transferred to the office pursuant to Administrative Order No. 9 and 10 (January 5, 1987) or
as may be provided in existing or subsequent promulgations, instructions of the President orders and
n.) Organize and supervise such task forces as may be necessary to respond to the instructions from the President
o.) Formulate, implement and supervise the government's policies, plans and programs pertaining to the technical
support and development management requirements of the President in accordance with presidential directives and
administrative orders
p.) Exercise management supervision and control over all bureaus, agencies, corporations, centers, councils and
committees placed under the control of the former Office of Development Management and such agencies placed
under its supervision and control by the Office of the President
q.) Establish policies and implement programs for the efficient management and operation of its office and undertake
research and such other management measures of efficiency and economy that will redound to the benefit of the
Office and of its development management objectives
r.) Exercise such other functions and powers as may be prescribed by law

The staff support role of the Presidential Management Staff therefore includes the task of providing precise
information and needed data for policy decision-making and governance. This requires conducting research studies,
coordinating work with other government agencies, soliciting the views of these agencies; those of the different
sectors of I society like labor, industry, business, social organizations as well as non-governmental organizations;
providing options and alternative solutions and recommending these to the President. As a monitoring arm it
oversees the implementation of national programs and projects and recommend appropriate methods for effective
and efficient execution. What the President wants, PMS does it for him. In short, PMS translates presidential insights
into operational terms.

Because of the multifarious roles and responsibilities, a strategy of requiring government agencies to submit an
agenda of what are to be accomplished over time was adopted. On the basis of the performance commitment of the
agencies, PMS monitors what has been accomplished and submits the findings to the President to update him of the
performance of the line agencies.

PMS is organized on the basis of functions as shown in the organization chart on page 95.

RFU- Regional Field Units

SWG - Speech Writing Group
PMU - Planning and Monitoring Unit
ADMO - Administrative & Management Office
EVIO - Editorial and Visual Design Office
ITO - Information Technology Office
CMO - Corporate and Management Office
OSP - Office for Special Projects
ORC - Office of Regional Concerns
MPO - Macroeconomic and Political Affairs Office
APO - Agriculture and Infrastructure Policy Office
SPO - Social Policy Office
DAO - Development Administration Office
CAO - Corporate Affairs Office

The Speech Writing Group prepares speeches for the President to deliver.

The Conference and Management Office provides the equipment and the staff needed in the cabinet meetings;
provide the secretarial work during the said meetings.

The Office for Special Projects helps administer the Presidential Social Fund and recommends how these funds are
to be disbursed and sees to it that help is extended especially to the marginalized sector of society.

The Office of Regional Concerns monitors activities in the regions, organizes and manages regional presidential
visits; checks out the area as advance party, provides information about the area where the Chief Executive is
scheduled to visit.

The Macroeconomic and Political Affairs Office analyzes the macroeconomic situation in the country - the GNP,
upswings and downswings of the economy; foreign exchange rates and trends.

The Agricultural and Infrastructure Policy Office monitors the implementation of the infrastructure projects; monitors
the activities and performance of the Department of Public Works and Highways, the Department of Transportation
and Communication and other agencies engaged in infrastructure-building and makes a report to the President on
these matters.

The Social Policy Office monitors activities of agencies which have to do with social issues and problems. It therefore
maintains linkages with Philippine Amusements and Games Corporation (PAGCOR), Philippine Charity Sweepstakes
Office for funding and with the Department of Health and the Department of Social Welfare and Development for
health care and social welfare assistance.

The Development Administration Office oversees the bureaucracy to improve service delivery and to upgrade the
bureaucratic organization, monitors and coordinates activities of the remaining government-owned and controlled
corporations, especially the GSIS, the Social Security System and the Pagcor.

Whatever information, feedback, advise or recommendation PMS gives to the President, generally translates to
policy. This affirms the crucial role of the PMS in policy drafting-a sort of "think tank" which demands competence,
professionalism and expertise of a high order for objective appraisal of issues and concerns which impact on
development and governance. However, political pressures and expediency could possibly weaken and subvert the
resolve and commitment of the men tasked to achieve the mandated objectives of this support staff organization.