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Key Text Executive Agencies: Do they Perform Better?

Author: Government of Tanzania
Date: 2005
Size: 49 pages (2.3 MB)

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Summary

Has the transformation of some Tanzanian ministerial departments into executive agencies (EAs) improved their delivery of services and internal efficiency? This paper, published by the Tanzanian President’s Office of Public Service Management, analyses a series of indicators relating to several former ministries to assess the effect of their new identity as agencies. While there have been slight improvements in service delivery, overall financial performance has remained unchanged. Human resource management has seen improved staff composition indicators, but this has been cancelled out by growing personnel shortages.

EAs are semi-autonomous public bodies whose operations share many of the charateristics of the private sector. They are designed to operate at arm’s length from their parent ministries. As such, they possess some financial independence and are often funded by charges imposed on service users. They pay higher wages than the public sector, frequently on a performance-related basis, and recruit executives through open competition.

Tanzania began forming EAs in 1996. By 2004, there were twenty in operation. The process of formation has included staff training, widespread restructuring, the development of strategic plans, the commercialisation of accounts and the recruitment of senior officials on an open, competitive basis.

In order to compare the output of the EAs before and after their transformation, performance indicators were divided into three categories – service delivery, financial performance and human resources performance. Because data from the EAs was often incomplete or unavailable, sample sizes fluctuated.

Only fourteen EAs provided sufficient data to permit assessment of their service delivery: of those, eight have ’clearly or probably’ improved, while six have remained static or deteriorated. Preliminary findings suggest that improvements were quantitative rather than qualitative. Progress is hindered by competition between agencies. Success is more evident in older agencies.
Financial performance evaluation focussed on each EA’s revenue collection, expenditure control and overall economic viability. Seven of the eleven EAs with sufficient data showed revenue collection improvements. None of the EAs improved their expenditure control and three of the five EAs with a full data set exhibited worse economic viability since formation.
Three indicators were selected to monitor EAs’ human resource performance: staff levels, staff composition and number of vacancies. Most EAs showed small improvements in staff levels through reductions in support staff numbers. Staff composition indicators improved slightly, but agencies’ performance in filling vacancies has deteriorated.

Other, non-qualitative, forms of evaluation provided a different perspective. These assessed internal processes - relating to planning, human resources management, financial management and political interference - rather than results:

Planning by EAs is often hindered by inadequate political leadership and the lack of performance reporting by parent ministries. Nevertheless, officials perceive improvements in the meeting of deadlines.
Staff morale has improved, partly through drastic salary increases, although most agencies still lack an approved remuneration package.
Most EAs have received certificates for improved financial management but still have weak internal financial controls.
Most EAs report that they operate free from political interference, in accordance with the stated aim of the EA formation programme.

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Source: Government of Tanzania, 2005, 'Executive Agencies: Do they Perform Better?' in Monitoring and Evaluation Unit Report, Public Service Reform Programme, President's Office Public Service Management, Government of Tanzania