8.1. Core Principles of Reforming the Structure of Government

The Second Administrative Reforms Commission enunciates following principles, which must act central to the idea of reforms in the structure of the Government:

a) The union Government should primarily focus on the following core areas:

i. Defence, International Relations, National security, Justice and rule of law

ii. Human development through access to good quality education and healthcare to every citizen

iii. Infrastructure and sustainable natural resource development

iv. Social security and social justice

v. Macro-economic management and national economic planning

vi. National policies in respect of other sectors

a. The principle of subsidiarity should be followed to decentralize functions to state and local Governments.

b) Subjects which are closely inter-related should be dealt with together: While restructuring Government into Ministries and Departments, a golden mean between the need for functional specialization and the adoption of an integrated approach should be adopted. This would involve an in-depth analysis of all the government functions followed by their grouping into certain key categories to be linked to a Ministry.

c) Separation of policy-making functions from execution: The Ministries should give greater emphasis to the policy-making functions while delegating the implementation functions to the operational units or independent organizations/agencies. This is all the more necessary because policy-making today is a specialized function, which requires a broader perspective, conceptual understanding of the domain and proper appreciation of the external environment. Implementation of the policies, on the other hand require in-depth knowledge of the subject and managerial skills.

d) Coordinated implementation: Coordination is essential in implementation as in policy making. The proliferation of vertical departments makes this an impossible task except in cases where empowered commissions, statutory bodies and autonomous societies have been created. There is considerable scope for more of such inter-disciplinary bodies in important sectors.

e) Flatter structures: reducing the number of levels and encouraging team work: The structure of an organization including those in government should be tailor-made to suit the specific objectives it is supposed to achieve. The conventional approach in the Government of India has been to adopt uniform vertical hierarchies (as prescribed in the Manual for Office Procedure). There is a need to shift to flatter organizations with greater emphasis on teamwork.

f) Well defined accountability: The present multi-layered organizational structure with fragmented decision-making leads to a culture of alibis for non-performance. The tendency to have large number of on-file consultations, often unnecessary, lead to diffused

accountability. A clearer demarcation of organizational responsibilities would also help in developing a performance management system for individual functionaries.

g) Appropriate delegation: Lack of delegation leads to delays, inefficiency and demoralization of the subordinate staff. The principle of subsidiarity should be followed to locate authority closer to the citizens.

h) Criticality of operational units: Government organizations have tended to become top- heavy coupled with fragmentation and lack of authority, manpower and resources at the operational levels that have a direct bearing on citizens’ lives. Rationalization of Government staff pattern is necessary, commensurate with the requirements of the citizens.