Different Successful Patterns for Implementing Holding Model in Public Sector

Abstract

Background: Transitions in the modern business environment cause significant organizational changes not only in private companies, but also in the public sector. Introduction of an adequate organizational model for the public sector could improve the quality level of public services. Objectives: This article aims to present general benefits of the application of the holding organizational paradigm in the public sector through a parallel analysis of several cases that were observed individually in our previous research. The goal is to suggest possible restructuring directions to policy makers in cities where the public sector has not been adjusted to the changes in the modern business environment. Methods: The case study research based on the documentation analysis, interviews and direct observation using the standard management consulting practice provided an additional and deeper insight into the functioning of public enterprises in one European capital and one small municipality. Results: The examples presented in this paper showed that the application of the holding institutional solution in the public sector leads to an improved command, an increased level of control, reduced management costs, better allocation of city resources and decreased overheads in the public sector. Conclusions: Switching from a functional towards a network model of the organizational structure improved the performance of public enterprises and increased the quality of public services.

The Programme Budget Model as a Basis for Measuring the Performance of the Public Sector in Transition Economies

“…This paper is important from the standpoint of the need to implement the new budget model based on budget programmes and projects in Serbia, especially having in mind that transition has many organizational impacts in the public sector (Todorović, Komazec & Čudanov, 2013). The paper is therefore important for a large professional and scientific public in transition economies with a special focus on Serbia, and for competent authorities, local autonomies and local government authorities in the area of budgetary funds.…”