Good Governance and Organization Performance in Public Sector: A Proposed Framework

1.     Title :

Good Governance and Organization Performance in Public Sector: A Proposed Framework

2.     Introduction :

In the early 90’s, the world was stunned by the collapse of Maxwell Communication, BCCI, Polly Peck, Arthur Anderson, Enron and WorldCom and other established companies which had a respectable profit in the past. No one ever recognized that their stories were not equally serious as they described. The problems with these fellowships can be overcome if they have gone through a good organization structure. Clarke submits that these companies had shared some common characteristics that causes it to break. These include, the power granted to a few CEO and senior’s managers, the weak characters played by boards of directors and there were questionable transactions or fraud in the companies’ reports. Ultimately, the financial reporting of the organization were over optimistic, too much profit and too ambitious. Some research has found grounds to confirm that the loser of these societies is due to the lack of corporate governance in managing the performance of their businesses. Obviously, corporate governance has emerged as a high profile event and one of the critical interest for managers, regulators of several countries, investors, and the academicians. As such, many people nowadays have begun to recognize the importance of corporate governance not only in the private sector, but likewise in the public sector.

3.     Problem Statement :

Research is an organized investigation of a problem in which there is an attempt to gain solution to a problem. This study proposes two problem statement:

1.     How to investigate the relationship between good governance in public sector and the organization performance.

2.     How to investigate the most influential factors of good governance that lead to public organization performance.

4.     Research Objectives

To get the right solution of a right problem, clearly defined objectives are very important. Clearly defined objectives enlighten the way in which the researcher has to proceed. Therefore, this study proposes two research objectives:

1.     To investigate the relationship between good governance in public sector and the organization performance.

2.     To investigate the most influential factors of good governance that lead to public organization performance.

5.     Methodology :

In this cross-sectional survey, the data will be collected from the selected public organizations through the distribution of questionnaires and the data will be analyzed and interpreted through Statistical Package for Social Sciences (SPSS), version 19.0 to determine the relationship involve. This study survey method is used because it has the lowest comparative cost compared to other methods of quantitative data collecting method.

This study is going to identify the relationship between variables by using Pearson correlation. Besides that, the most factors of good governance that lead to public organization performance will be analyzed based on the Multiple Regression Analysis. In addition, this study also aims to identify the level of public organization performance based on descriptive analysis.

6.     Conclusion :

In this diagram it consists of five dimesions (leadership, stakeholder relationship, monitoring, accountability, risk management and strategic management). Thus, this model will describe the relationship of two variables and this proposed model will give better understanding either the relationship will affect directly on the relationship between the benchmarks of good governance in public organization. In order to understand the effect of good governance in public organization towards organization performance, this conceptual framework provides the dimension of good governance in public organization that able to advance the organization performance. Fromthe conceptual framework, the independent variables comprise the good governance in public organization. The dependable variable in this study is about the organization performance. The conceptual framework highlight that organization performance achievement base on good governance in public organization.

REFERENCE : Kamal, Mohd Khirul Azwan Mohd et al. (2015). "Good Governance and Organization Performance in Public Sector: A Proposed Framework". Malaysia: Iwnest Publisher.