Module 1 Governance
Module 1 Governance
GOVERNANCE
What is Governance?
DECISION
MAKING
Figure 1
The need for governance exists anytime a group of people come together to
accomplish an end. Most agree that the central component of governance is decision-
making.
It is the process through which this group of people make decisions that direct
their collective efforts. (See figure 2)
STAKEHOLDERS
INPUT
DECISION MAKING
Figure 2
Source: Institute of Governance http://www.iog.ca/
If the group is too large to efficiently make all necessary decisions, it creates an
entity to facilitate the process. Group members delegate a large portion of the decision-
making responsibility to this entity. In voluntary sector organizations this entity is the
board of directors. One simple definition of governance is "the art of steering societies
and organizations." Governance is about the more strategic aspects of steering, making
the larger decisions about both direction and roles.
Some observers criticize this definition as being too simple. Steering suggests that
governance is a straightforward process, akin to a steersman in a boat. These critics assert
that governance is neither simple nor neat — by nature it may be messy, tentative,
unpredictable and fluid. Governance is complicated by the fact that it involves multiple
actors, not a single helmsman.
These multiple actors are the organization's stakeholders. (See figure 2) They
articulate their interests; influence how decisions are made, who the decision-makers are
and what decisions are taken.
4 | Module 1: The Concept and Theories of Governance
STAKEHOLDERS
INPUT OUTPUT/ACCOUNTABILITY
DECISION MAKING
Figure 3
Source: Institute on Governance http://www.iog.ca
Theories of Governance
If Max Weber and Woodrow Wilson were to suddenly appear on the landscape of
modern public administration, normative theories in hand, it is likely they would be
unable to recognize the field of governance. The comprehensive, functionally uniform,
hierarchical organizations governed by strong leaders who are democratically
responsible and staffed by neutrally competent civil servants who deliver services to
citizens – to the extent they ever existed – are long gone. They have been replaced by an
‘organizational society’ in which many important services are provided through multi
organizational programs. These programs are essentially “interconnected clusters of
firms, governments, and associations which come together within the framework of these
programs” (Hjern and Porter, 1981, pp. 212-213).
These implementation structures operate within a notion of governance about
which a surprising level of consensus has been reached. There is a pervasive, shared,
global perception of governance as a topic far broader than ‘government’; the governance
approach is seen as a “new process of governing, or a changed condition of ordered rule;
or the new method by which society is governed” (Stoker, 1998, p. 17). Similarly, in the
scholarship that has followed the ‘Reinventing Government’ themes of public
effectiveness; much has been written of New Public Management practices by which
governance theory is put into action (Mathiasen, 1996; Lynn, 1996, 1998; Terry, 1998;
Kelly, 1998; Peters and Pierre, 1998).
In this complex, devolved mode of service delivery, the unit of analysis for some
students of policy implementation is the network of nonprofit organizations, private
firms and governments. As Milward and Provan note, in policy arenas such as health,
mental health, and welfare, "...joint production and having several degrees of separation
between the source and the user of government funds...combine to ensure that
hierarchies and markets will not work and that networks are the only alternative for
collective action" (2000, p. 243).
The discussions below describe the relationship of governance and other Public
Administration theories, the New Public Management, in particular.
The (mostly European) literature on governance and the increasingly international
scholarship on New Public Management (NPM) describe two models of public service
that reflect a ‘reinvented’ form of government which is better managed, and which takes
its objectives not from democratic theory but from market economics (Stoker, 1998).
While some use the terms interchangeably (for example, Hood, 1991), most of the
research makes distinctions between the two. Essentially, governance is a political theory
while NPM is an organizational theory (Peters and Pierre, 1998). As Stoker describes it,
Governance refers to the development of governing styles in which boundaries
between and within public and private sectors have become blurred. The essence of
governance is its focus on mechanisms that do not rest on recourse to the authority and
sanctions of government….Governance for (some) is about the potential for contracting,
franchising and new forms of regulation. In short, it is about what (some) refer to as the
new public management. However, governance …is more than a new set of managerial
tools. It is also about more than achieving greater efficiency in the production of public
EVALUATION:
ASSIGNMENT
Essay: Handwritten (1 Whole Sheet of Paper). Don’t write at the back of the paper
DEADLINE OF SUBMISSION will be on SEPTEMBER 2, 2019 @ 4PM
1) What is your understanding of the concept of governance? And, what is your own
concept of governance. Explain. (10 points)
2) Explain the shift of government to governance. (5 points)
3) Discuss the theories of governance and New Public Management. (25 points)
4) Discuss the significance of governance in the development process. (10 points)
Activity: (Show your Computer Literacy Skills, Creativity, and Imaginative Thinking.
PRINT your output in a WHITE SHORT SPECIALTY BOARD PAPER; BE CREATIVE!
Right your name AT THE BACK of the Bond Paper)
Rubric of Grading your Output: Creativity (50%); Imagination (20%); Relevance (20%);
Neatness (5%); Color Combination (5%)
DEADLINE OF SUBMISSION will be on SEPTEMBER 6, 2019 @ 4PM
1) A project: Make a poster/collage/diorama that shows the significance of
governance.