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Revista de Gestão Social e Ambiental. RGSA, São Paulo, v. ... pendente junto ao INPI. Brasil, 2010. Gunter, H. .... Revista Gestão Industrial. ISSN 1808-0448 ...
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PUBLIC MANAGEMENT AND PUBLIC GOVERNANCE: A COMPARATIVE CONCEPTUAL ANALYSIS MSc. Fernando Neves Pereira Corresponding Author Federal Center of Technological Education Sockow Celso Fonseca. Av. Maracanã, 229 sala 01 - Bloco A CEP 20271-110, Maracanã- RJ, Brazil Phone/Fax number:+55 21 22647376, e-mail: [email protected] DSc (in course), Federal Fluminense University, Civil Engeneering. Rua Passo da Pátria 156, sala 329-A - Bloco E CEP 24210240, Niterói - RJ, Brazil PhD. Osvaldo Luiz Gonçalves Quelhas Federal Fluminense University, MSG/LATEC Rua Passo da Pátria 156, sala 329-A - Bloco E CEP 24210240, Niterói - RJ, Brazil Phone/Fax number:+55 21 2629-5620, e-mail: [email protected] PhD. Julio Vieira Neto Federal Fluminense University, Rua Passo da Pátria 156, sala 329-A - Bloco E CEP 24210240, Niterói - RJ, Brazil Phone/Fax number:+55 21 2629-5620, e-mail: [email protected] MSc. Cid Alledi Filho Federal Fluminense University, Rua Passo da Pátria 156, sala 329-A - Bloco E CEP 24210240, Niterói - RJ, Brazil Phone/Fax number:+55 21 2629-5620, e-mail:[email protected] DSc (in course), Federal Fluminense University, Civil Engeneering

Abstract: The objective of this article is to develop a comparative analysis in the public management and public governance that diligences management coordination between all segments of public organizations with social responsibility and sustainability guidelines. The research was based on a revision of an academic research, using the ProcKnow-C methodology. As a result of this research, it’s understood that the governance reflects the wish reflects of better delivery of government services to society, promoting the private sector and civil society with new ways of participation and citizenship, creating an environment of public leadership through the power shared with society. It’s noticed a migration of corporate governance concepts of the private administration to the public governance. Key words: Public governance, social responsibility and public management. 1 Introduction According to Almquist et al. (2013), governance is a word in prominence in the modern, globalized world. The highest offer of governance enables a greater direction

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and coordinator of several actors of society, as civil and governance society, allowing, many times, a greater collaboration network between these actors and, consequently, a greater governance. Given the improvement of the public sector pressure, the government agents start to appeal to corporate governance management practices. This process emerges whenever the public services are affected by broad social goals, greater management competence and leadership, greater political intermediation between citizen demand and the final commonweal, surging then, the public governance. (Martinez et.al, 2013). Public governance is the domination of the public politics over the public administration, aiming the commonweal of the whole civil society less economically favored. The governance wins strength when allows fortification in the capacity, authority and power among multiple stakeholders. International organizations, such as, the World Bank and the Organization for Economic Cooperation and Development (OECD), are governance supporters, based on the reforms in the global public sector. The United Nations Organization (UNO) through the United Nations Development Programme (UNPD) identifies the public sector and its personality through the public governance by democratic means highlighted in its text:

Democratic Governance may be understood as the capacity of a society to define and stablish politics and solve its conflicts in a pacific way in the existing legal system. This is a necessary condition for the Rule of law, together with the separation of powers and a legal system that assures the enjoyment of liberty and civil, social, politics and cultural individual rights. This requires that the institutions, based on the principles of equality, liberty, participation in decision-making, responsibility and promoting the inclusion of the most vulnerable sectors of the society (UNDP, 2014).

The expression corporate governance was created to indicate issues of control in the context of corporations, being established as a conception of rules, procedures and structure for a proper direction, aiming to correct the corporations’ problems. In the private sector, corporate governance is a term to establish the relation skills in the dimension of the powers exercised between the different organizational units, the head office and its several stakeholders (Almquist et al. 2013). The corporate governance has as its principles, the transparency, the equity, the accountability and the corporate responsibility, according to the Corporate Governance Brazilian Institute – CGBI (2010). The term definition, according to the organization is:

Corporate Governance is the system, by which organizations are directed, monitored and encouraged, involving the relationships between the owners, Administrative Council, Board of Directors and control agencies. The Good Practices of the Corporate Governance convert principles into objective recommendations, aligning interests in order to preserve and optimize the organization's value, facilitating their access to resources and contributing to its longevity. (IBGC, 2010)

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The Securities and Exchange Commission – CVM (2002) defines the term as the “set of practices which aims at optimizing the performance of a company by protecting all stakeholders, such as the investors, employees and creditors, facilitating the access to the capital.” To Hirigoyen e Laouer (2013) corporate governance is when, in the functional mechanism of the company, the owner controls and regulates all the activities of his/her managers. The authors also define corporate governance as being the way by which the company's lenders certify the return of their funds invested in the company. The authors Hirigoyen e Laouer (2013) argue that, although this definition of corporate governance is initially established for the private sector, is equally valid for the public sector and its organizations. In the case of the public sector, the fund suppliers for the public companies are citizens who contribute with taxes payment, and aim a safe return of their investments in quality public services. Thus, using the concepts of the corporate governance, the public governance gains room in the public management and for Almquist et al. (2013) the concerning in promoting governance in the public sector is focused in the accountability for society of the public spending with effective transparency in management, achievement of the established goals, arising from social demands, low cost of the public administration, quality of the public services and a positive impact of policies over the society in general. Public governance passes through transparency and assessment of policy outcomes that needs to reflect the taxes collected in applications for the society and utilities. The new international standard of social responsibility, the ABNT NBR ISO 26000 (2010) enlarges the term and defines organizational governance as a ¨system by which an organization takes decisions and implement them in pursuit of their goals¨. An efficient governance may include both formal and informal mechanisms and it will allow an organization to implement the principles and act over the social and environmental themes and issues, the ones proposed by the standard. Intended for all types of organizations in the private, public and non-profit sectors, the standard clarifies that does not replace, alter or, otherwise, modify the obligations of the State. And recommends that, in case that not all its constituent parts have the same utility for all organizations, each organization identifies through a dialogue with its interested parts, which issues are more relevant and significant to be approached. (ABNT, 2010). Smyth (2012) emphasizes also the need of a governance filled with a good conduct and control, containing sanctions or rewards for public officials as an instrument to formalize responsibilities and reinforce the transparency of the public management. To Shaoul et al. (2102) the chaining of the public sector and its several interested parts aim an instrument of external communication that reaches many areas, among which, the cost of the services, the management of the resources, the quality of services, the financial control of the raised funds and the administrative and financial probity of resource and public goods. On the other hand, Pearson (2014) introduces for the public governance, the important role of the governmental audit in the support of the changes in the public sector. For the author, the audit has an important role of reinforcing the governance,

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evaluating the public management, not forgetting that the audit depends on legislation and right approach. According to Cheung (2013), the globe moves itself in an accelerate way for a public post-management time, expanding and creating a greater need for an effective governance that searches to meet the demand, accordingly, of all actors in society. Steurer (2013) identifies public governance as the act of mark the lack of definition of boundaries and responsibilities to deal with the social and economic issues of the public sector. And Kickert (1997) defines that the public administration must be developed until the level of public governance. This leads to use corporate governance as the basis of public governance Therefore, there is the “public value” that occurs when there is a stimulus in the public governance, promoting a better spending of public resources, with sustainable provision between resources, expenses and socio environmental responsibilities in the public good’s management for the entire civil society. 2 New Public Management and New Public Governance Almquist et al. (2013) highlights that in the last three decades, the management of the public sector organizations has been undergoing through major changes, that favors the emergence of a new public management that seeks to meet the criticism of the public sector as inefficient, bureaucratic and ineffective. So the management guidelines of the private sector such as corporate governance migrate with their market mechanisms for the public sector. This new public management produces a different concept of the accountability to the society, leading to a greater transparency in the administration of the public management and a greater responsibility in the destiny of the whole tax collection. The performance of the public sector has in this new governance panorama, greater accountability of its activities with the external public, going beyond the external and internal communication of their achievements. To Osborne (2010) the new public governance comes from the changes introduced in the public politics, found in the last three decades, being part of the answer given for a management-oriented public administration facing the needs of the real citizens. The movements in the searching of an improvement in the public administration dominated the research in the last three decades, namely: the new public management (New Public Management - NPM) and the new public governance (New Public Governance - NPG). According to Bao et al. (2013) the NPM Works to make the public services, provided by the government, more efficient for the citizens, applying private business management technique focusing on customer satisfaction and performance measurement. In the meantime, for Bao et al. (2013) there are three basic points considered weaknesses in the use of the business principle of private sector to improve the government’s performance, namely: 1. There is no common denominator as the return on investment, market share or profit, used by the private sector to in the management evaluation, which could serve as a common comparison in political programs to build the trust

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of the citizens face the politic institutions. It is necessary the existence of efficiency, effectiveness, capacity of responses to citizens, as well as strengthen values such as justice, protection of the individual and collective rights and transparence of the processes and results of the public institutions. 2. The second weakness when using the private sector model to improve the performance in the government is that the public sector has increasingly fragile structure as the authority and prevents attempts by organizations to work straight, from instrumental objectives linked to timelines and performance indicators. The lack of authority and leadership may confuse the managers and their performers in the attempt of meeting the civil society’s demand. 3. In the third place, the NPM searches administrative approaches to solve problems that are essentially politic. The private sector starts from the premise that consumers are guardians of goods and services offered, but, in the public sector, this act is contested, consequently, one of the duties of the public officials is to identify the values of the society and provide answers for these values and demands. With the fragmented government systems, with the values in conflict, with the fragility of the government in collect values of the society, and at the same time, promoting collective answers for these values and demands rises the concern with the NPM, producing a movement of the society and the academics in highlighting the obligations and responsibilities and political values at the heart of the governance debate. This movement stimulates the existence of the new public governance – NPG and Bao et al. (2013), emphasizes three characteristics for the public governance in the in building of trust and legitimacy that are overlooked or undervalued in the NPM: 1. In the first place, the new public governance is a centered value, where the government’s target is to promoting the highest common good and not just efficiency and effectiveness improvements, (Stoker, 2006). 2. In the second place, the new public governance highlights the importance of creating government processes that enable mechanisms to be implemented in agreement among all the parts interested in the public management, may agree or disagree with the government actions and provide maximum public value, (Sanger, 2008). The new public governance has as a goal, the policy aimed to collective preferences and not only individual or small groups preferences. When the public managers chose to act in the government’s performance not only as public tools, but also as a policy mediation process between citizens, their demands and provision of public services built on public values, reaches new deals, performance oriented to society and better governance, act not found in the NPM, (Osborne, 2010). 3. In the third place, the NPG realizes the importance of the creation of public good as a process that involves all the society’s actors, involving the public,

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the private, the market, the non-profit organizations and the civil society, (O’Toole, 2010). The government's role is not only to regulate and distribute public benefits, but also to be an agent that attracts the private sector and all the structures of civil society to share the public good. This process thus involves multiple stakeholders interested in authority and decision-making structures. To Cafaggi (2011) the emergence of different types of regulation and coregulation comes from different social fields that has as a goal to pursuit a common purpose, common public services and, as a result, cooperate with government to perform public governance. One important characteristic of the co-regulation is to bring together actors from different social fields and go beyond, joining regulators with the beneficiaries of the created regulation. The regulation searches to promote through the government certain far practices , through the information, orientation, approving, reproving, encouraging stakeholders, educating and promoting a new governance, (Bell e Hindmoor 2012). Levi-Faur (2013) argues that instead of the confront between the civil society and the companies, the hybrid integration must occur to provide further adjustment. Antiroikko et al. (2011) when dealing with the new public governance, highlights the importance of using direction, coordination and appropriation of the institutional mechanisms that uses policy processes and governance implementation, aiming the collective interest, promoting the linkage of various sectors of civil society. He also highlights that when searching the collective interest, the new public governance is directed to values of the public sector contrasting the values of the private sector and the governance starts in the perspective of organizations networks searching social relationships with the citizens. To guide changes in the public sector, imbuing public managers for a new public governance strategy, one must highlight the difference between a new public management and a new public governance, as described in the chart 1. Klijn (2012) proposes a distinction between a new public management and a new public governance. The public management itself, has references focused in the contractual relations, since the new public governance identifies and recognizes the importance of government relations with society, proposing relevance for the horizontal relations of the government, creating governance networks and liability of the actions of managers. Synthesizing Antiroikko et al. (2011) and Klijn (2012) the distinction between the government responsibilities (accountability) horizontal and vertical, it’s said as horizontal, the moral and social obligations of the public sector to the civil society and the vertical responsibility refers to refers to the obedience of authorization procedures of administrative acts in accordance with the legal structures of public organizations. The distinctions between new public governance and new public management are identified in the public sector organizations as described by Almquist et al. (2013) and Klijn (2012) in chart 1 for accountability to society.

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New Public Management

New Public Governance

Focus

Has its focus on the organizational infrastructure

Has its focus among organizations

Objective

Improving the efficiency and effectiveness of the public services provision of organizations individually.

Improve the inter organizational coordination and the results of a network of organizations with different Skill.

Vertical performance of individual

Horizontal performance of the organization network. Accountability in terms of net results.

Dimensions of organizations accountability to Accountability in terms of results civil society (outputs)

Management Control

Hierarchical control of the results of a single organization through performance indicators in the efficiency and effectiveness.

Enabling control through oriented dialogue systems and performance indicators, strengthening the contribution of individual organizations to the network performance Govern the result by analysis / evaluation of the network

Chart 1 – Comparative between new public governance and new public management in the accountability of the public sector to the civil society. Source: Version adapted from Almquist et al. (2013) and Klijn (2012).

Chart 1 shows the evolution of the new public management to the new public governance as an option of the governments to manage public organizations, being the public governance presented as a tool to better meet the aspirations of all civil society. The governance emerges as an alternative of a conventional governance of efficiency and effectiveness management, prevailed in the new public management agenda in decade of 1990 and the beginning of 2000. The confidence restoration of governance and public governance must be put at the forefront of any reform agenda, (Cheung, 2013). Globalization goes beyond commercial boundaries and influence public organizations around the world, in the reform of the public sector systems and its policies to implement a better management of public services through privatizations, outsourcings and efficiency in the remain public sector. However, just a new public management is not enough to meet the need of the social empowerment, giving rise to a new public governance that not only search the governance of the public system, but also supports the popular participation in the processes of decisions of the public and policy makers, for the government to meet the demand of the majority of civil society.

3 Values, key elements and public governance problems

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Cheung (2013) highlights that demand a reform of the public governance, since a politically vulnerable government produces a government without the ability to lead a society to provide a common good and a fair future to the population. The challenges for the public sector management and to promote a reform that allows the public governance are: 1. Politics and party consolidation, political commitments and democracy consolidation. Public politics, turned to the management process and civil society demand and the reform in the government structure. The government leaves the traditional and bureaucratic towards public governance. 2. With the globalization and a more competitive economic environment, it’s created a politic agenda driven for the public sector reform and sustainable development. Rethinks the role of the government and its responsibilities, which are regulatory, distributor, empowering, etc.

3. The emergence of the age of new generations with diversity in their views, aspirations and demands of the public service, formatted by previous generations, creates a reform challenge in the public sector. The new generations show a major concern with the social distribution, democracy, life quality, justice and social and environmental responsibility. 4. Solve structural, social, environmental and economic problems, with better income distribution, homogenizing the economic structure, increase of salary, decrease of concentrated wealth held by the minority of the population, poverty alleviation, improve the social mobility, improving education, aging of the population, all this propels a strong public policy in the social approach and an efficient public administration. In order to create an environment of public governance, it’s necessary sustainable nature reforms in the public administration at all organizational levels and in all spheres of government, local, state or federal or even in the legislative, judicial and executive power. To Tollefson et al. (2012) it is necessary the creation of rules for monitoring governance by society and government, imposing penalties when the objectives were not achieved. The governance performance must face the internal challenges of the public management in order to meet the expectations of civil society, when it’s necessary a system of democratic elections geared to the collective over the sole interest of corporate economic groups with sectorial financial strength. The political decision makers or public managers must evaluate their decisions with proposals from the civil society organized through collective and legitimate demands. An economic policy issued by a bureaucratic system, an adequate monetary system and a tax reform is not enough for a public governance. The governance also

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dispenses a public policy with an attitude of responsibility, political and administrative legitimacy, full democratization, reliable public institutions and accredited by the population. The moral leadership of public managers and politic leaders is required to jointly create core values that excite civil society as to gain confidence of the population. The government imbued with public governance must worry not only with the economic growth, but also with the development filled with social responsibility. The demand for constant economic restructuring, propelled by the globalization, implies in the existence of a dynamic and strategic government. Cheung (2013) highlights the need of the government to invest in education, create a reliable regulatory environment, stable and infrastructure development. Therefore, the author proposes some indications for governance in chart 2.

From

To

Leading the executive

Executive led within the context of the executive and legislative, with co responsibility of powers, balanced and government socially incorporated.

Positive non-interventionist government

Proactive, enabled government.

Small Government

Effective and regulatory government.

Oriented fiscal policy change

Policy change toward to the values

and

capacitated

Chart 2 – A way to transfer government which is concerned with the economic growth into government that is also concerned with the social development. Source: Cheung (2013).

The politic in public governance formatting becomes more liable and transformative into public services, seeking mechanisms to enable more and more sustainability in public governance. The public service demands for a reform and this change is based on two fundamental aspects, namely: the preservation of professionalism under the ministerial system in force with political appointment and construction of new capacity management in line with the demands of society, (Cheung, 2013). The govern needs sensibility and the capcity of answering society demands in real-time, enabling greater proximity of public and politic managers of the collective and legitimate interest of civil society. A system based on bureaucratic rules and with no governance tends to work to preserve its institutional power, cultivating benefits for those who hold the power in the public administration, however, the public service has as a principle meet the public interest and the public agents. Public officials or public managers are tools to inhibit the misuse of the public system.

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Therefore, the public governance aims to meet the expectations of its customerscitizens, growing in its discernment with the democracy in the public sector system, is organizational policy. This democracy also acts positively in the information about public spending, earning revenues, public politics, transparency in the public management and in the institutional indicators that will provide equal civil rights and duties. According to Hirigoyen e Laouer (2013) the term “governance” in the public service is coined from the result of the doctrine of “new public mangement” which has been improved, creating the “new public governance”. This new public governance is the result of the enlargement of the public management with a more efficient public administration and and focused on the real needs of the population. According to Bao et al. (2013) conceives a structure that operationalizes a core value of processes which approaches the government performance and that makes possible in the public administration. The representation of this proposal is in Figure 1 and Figure 2. Also according the author, the chart has four basic elements: 1. 2. 3. 4.

Contextual definitions; Fundamental politic values; Authority structures and processes; Managerial skills and organizational leadership.

Figure 1 - Structure with reference to the value for the performance governance

Source: adaptation from Bao et al. (2013)

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The new public governance aims to create a shared system of institutional values, which also involves all the public agents, as well as the collaborative roles between the private sectors, the civil society and the public sector. One of the challenges is to change the public governance into something concrete, creating one whole environment across sectors, providing an agenda that enables the execution, control and measurement of public administration towards to the improvement of its performance, focused in the governance with the creation of public goods.

Figure 2 – Key elements for public governance Source: Adaptation from Bao et al. (2013)

From the contextual setting, the government and its public agents create politics strategies to solve problems presented by the government. The government's commitment to meet and solve conflicts, presented by society, creates an environment which provides public values and consequently, public goods of collective use. To Bao et al. (2013), a high performance requires that the government adapt its strategies together with its management and leadership politics at the nature of the problems they are seeking to solve. Thus, it could be highlighted a typology of problems summarized in Table 1 that emphasizes the differences between difficult problems created by problems of complexity and the difficult ones caused by conflicting values.

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Table 1 – Typology of problems based on the Dichotomy of the Complexity and Conflict values. Values Conflict Complexity

Low

High

High

Quadrant 2 – Complex problem High Complexity Low Value Conflict

Quadrant 4 – Wicked problem High Complexity High Value Conflict

Low

Quadrant 1 – Simple Problem. Low Complexity Low Value Conflict

Quadrant 3 – Difficult problem Low Complexity Medium Value Conflict

Source: Bao et al. (2013)

As observed in Table 1, Bao et al. (2013) created a bi dimensional scale where in the vertical axis, there are the problems by complexity degree, being of a high or low level. In the horizontal axis, there is a ranking of the problems based on the degree of complexity conflicts, also measured in the high or low scales. All this has result in quadrants, wherein quadrant 1, it’s observed a low level of value conflict as well as a low level of complexity. Quadrant 2 has dimensions of a low level of value conflict, but a high level of complexity. Quadrant 3 has characteristics with low level of complexity and medium level of value conflict. Lastly, in the quadrant 4, there is a high complexity and a high value conflict. Howard (2011) states that those are the problems for what the public leaders are not prepared to deal with. Thus, the problems in quadrant 4 are considered the most difficult ones to find solutions, mainly when there is a lack of preparation of the public agents in understand and solve the problems, compatible with meeting the demands of society and keeping the nation's sustainability. For a better understanding of the key elements that lead to the public governance, Figure 3 presents a summary of the elements for governance performance based on the authors Howard (2011), Bao et al. (2013) and O’Toole (2010).

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Figure 3 – Summary of the key elements for public governance Source: Author and adaptation from the authors Howard (2011), Bao et al. (2013) and O’Toole, (2010).

Usually, the competence of management and leadership inside the public sector is measured within a certain range of a traditional, bureaucratic and hierarchical system of government. However, emerges the necessity of this competence in governing the public sector to possess authority that successfully provides the anxieties of civil society meeting all the social groups, fundamentally the weak and disadvantaged ones. Public managers and politicians should seek public governance legitimacy with leaders of the government who are aligned with the social values and the collective demands of citizens. According to Gunter, Hall e Bragg (2013), the public sector evolution shows the need for leadership in public life managers of the government. In seeking to improve and enhance the relationship between government and citizen, emerges the priority of reforming in the public sector, evidencing enhance the services provided to society. In this way, the leadership constituted by a competent and qualified leader, is used as a strategy in the reform of the State, and consequently, in the search of governance. To Carpenter e Krause (2011), the public service, represented by public organizational structures, has a complex system of administrative composition, legislation and public politic among its various sectors. So, the authors highlight that the public administration is not only a moving ship, as a matter of fact, the public administration is a moving fleet, where the top managers and politicians have difficult in keeping the course and equitable flow of the entire fleet, which will allow a greater governance.

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In order to keep the public governance, one must face the challenges insurgents in the public sector. Sun e Anderson (2012) state that part of the challenges and together with the problems of the public sector that affect the civil society cannot be solved by only one segment of the public sector. To find governance in the public sector, improving the services provided to the citizens, it’s necessary the cooperation from many sectors of the public administration. To substantiate the collaboration of various sectors, one of the main protagonists is the public manager imbued with management skills and leadership. The public managers and the political leaders have the mission to operate as a network of cooperation in the sectors of government in order to, together, perform agreements with the society and meet their collective necessities, especially the less economically privileged segments of society. One way of observing the relevant leadership competences to the performance of public organizations is to highlight what counts for successfully solve problems facing different problems. Therefore, in chart 3, there is an illustration of when the leaders must act in distinct worlds, such as, management with a high degree of rules and bureaucracy and the types of skills to succeed in solving the problems. O’Leary e Vij (2012) argue that most public organizations challenges are greater than one organization itself, and need new models to solve the problems of the public sector as a whole. Public sector organizations are enlaced by decisions of its managers about how they lead each one of the public organization, requiring that the public services offered to the citizens be conducted by competent managers and with a leadership profile enabling the public governance.

Type of Problem

Dimension

Simple

Complex

System orientation

Internal focus -

Internal focus - External focus

External focus –

Value Orientation

Agnostics values

Explicit values

Values of conflict limited

Values of conflict Unlimited

Output management

Coordination

Conflict Resolution based on interest

Leadership Actions

Difficult

Value-based on Governance

Diplomacy

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Focus on Leadership Actions

Management within an organization

Coordination among organizations

Collective Horizontal Leadership

Collective Total Leadership

Leadership results

Efficiency

Effectiveness

Agreement on actions

Agreement on the nature of the problem and solution

Performance analysis unit

Outputs transactions

Results

Conflict Resolutions

Consensus Construction

Leadership Prototype

Tactical and operational management

Strategic Management

Strategic leadership

Transformational Leadership

Classic Public Administration

New Public Management

New Public Governance

Public administration Philosophy

Chart 4 - Leadership Skills for Troubleshooting Success in Public Governance Source: Adapted from Bao et al. (2013).

The approach of public administration oriented to the governance value argued in government performance provides a new paradigm for the public sector reform. The strength of the governance is found in the challenge of governing meeting the real society demand through the motivational performance of the public managers, politicians and public agents in general, turned to the citizens and their needs. This new vision that should fill the mind of the legislative promulgators, the public managers and the politicians, is a much more complete picture of the humanity needs, overcoming the bias of the traditional public administration or of the new public management, reaching the fullness of the new public governance. The value of the new public governance is fundamental meet the needs of society broadly and circumstantially, however, one must understand the evolution of the public administration and its stages in order to seek for efforts in the implementation of the governance. In chart 4, it could be observed the stages developed by Bao et al. (2013), where the author places the first stage as pre classic, when he conceives the conscious creation of public administration, in a formal study environment, highlighting what the leaders perform to build a State. The successful role of the founders of public administration in this period was to help the political leaders to build the legitimacy and trust of the public order. The public administration works as a foundation for the government development and, when it success, consequently, the population's expectations are met in a fair and socially responsible manner. To build the administrative staff, it’s

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necessary to contain the functional competence, sensitize the leadership of the public managers to match the values of citizens with values, trust and increase the reputation of the public sector. The performance of the public administration and the public officials is an integral part in shaping values and public policy. The public governance has as instrument, the public value, which is built in trust and legitimacy of the government’s acts toward to the society needs. To Morgan et al. (2013) the classic public administration represents its own birth as a distinct field of study for the researchers and it has its emergence at the end of the 1800. Thus, it arises, theoretically, the classical public administration, postulating a new kind of institution that overcomes the bureaucracy and its three main problems located in the public administration, namely: the inefficiency of the public sector, the existence of special interests, and the excessive administration discretion (chart 5).

Public Administration Models

Differential Aspects

Classic Public Administration

New Public Management

Theoretical Basis

Political Science, public politics, organizational theory.

Theory of Institutional, rational public network, the choice, agency theory. science/ management.

Political economy, theory regime, complex interdependence.

Concept of State

Unitary

Regulate and privatize

Plural and pluralist

Depends on each regime

Leadership’s Outputs’ management actions

Coordination

Conflict resolution based on interest

Diplomacy

Management within an organization

Coordination among the organizations

Collective horizontal leadership

Collective vertical and horizontal

Scope of Leadership

New Public Governance

Values based on the Performance of the Public Governance

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leadership Leadership Results

Professional and hierarchical control: the efficiency and effectiveness

Customer satisfaction, efficiency and effectiveness

Agreement on actions

Agreement on the nature and solution of the problem

Value Orientation

No identified values

Explicit values

Value conflict - limited

Value conflict unlimited

Arbitrated value

Hierarchy

The market and the classical contracts

Networks and relational contracts

RenovatedState institutions and processes

Performance Output operations – Analysis Unit

Results (outcomes)

Conflict Resolution

Consensus, trust and legitimacy construction.

Chart 5 - Philosophical differences Public Administration addressing Governance Fonte: Adapted from Osborne, (2010) and Bao et al. (2013)

The column representative of the new public governance, theme in vogue in the last thirty years aims to improve the government's competence with improvement of the services to the entire society. Scherer e Plazzo (2011) also highlight that during decades, the organized civil society aimed to guide companies towards social responsibility, requiring from the government, legislation that will regulate private organizations to contemplate the demands of society. A rigid and standardized legal environment, that many times works as prerequisite for companies’ operations (Short e Toffel 2010). The structures said as vertical, represent structures of authority in the public sector and the horizontal ones, aimed the entire civil society, used in governmental systems toward to governance at all spheres such as the executive, judicial and legislative powers. Thus, the government needs to make the system works in the vertical authority structures to consequently, make it also work at the horizontal structures. Salamon (2002) highlights that the changes caused by the use of public governance in the government models cause five important consequences: 1. The architecture of new tools and political instruments; 2. The creation of network of interests beyond hierarchies; 3. Development of new partnerships and arrangements between private organizations, public ones and NGO (Non-Governmental Organizations);

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4. Highlight in the negotiation and persuasion skills; and 5. Provide and allow the creation of abilities, besides the ones already existent in the traditional management.

The values based on the public governance performance represent an evolution in the government management, since creates value for the public good and emphasizes the need to better serve the society. Poister (2010) defends that an approach focused in the value, enables the strategy and leadership integration with more everyday operational interpellation with management performance and mediation of citizen needs. The management public system, which is not focused in this strategy, may have short-term results, however, in a long-term loses focus of public value and also loses the best performance to meet the citizen. The search of a central value, in the public value case, provides an approach that matches strategy and performance in management. The public value performed through the public governance is essential in the competences of connection management and relation used for government confidence building, with both servers and the whole society. The government’s confidence building process with management performance toward to the public value in line with society's values, enables building a common performance between the various stakeholders who act, negotiate and need the public system. Bao et al. (2013) highlights seven advantages in the approach of the public value for performance management and leadership found in public governance:

1. First of all, the approach in the public value, enables an integration of the public agents to provide a performance of public services and mediate them with the needs of the citizens; 2. In a second place, the approach toward to the value and the importance of the competences of the relationship management, the government's confidence building and all public agents. 3. In the third place, the advantage of an interpellation based on value for leadership and consequently the performance management, are the public processes as the tools for the public value actualization. 4. The fourth advantage of the approach founded on value for performance is that there is an extension to the individual learning capacity of the managers and organizational learning. In the traditional performance, the learning occurs, basically over the performance of the corporative models, being a limited learning by imitating other models, not encouraging managers to innovate. On the other hand, an approach where various values are posted by society, require that public agents use imaginative tactics in order to solve all

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the presented problems, providing an environment of greater performance, creativity and success. 5. The fifth advantage of the approach founded on value for performance is the need to build and sustain a strong organizational culture, producing a performance with an organizational cultural value, being appropriate to provide long-term sustainable public services. The value based approach creates opportunities to all participants of the system to build agreements around shared values, even if there are different kinds of values in the society. The building of trust between the members of the public organization and the civil society is an advance toward public governance. 6. The sixth advantage of a value-based focus is that values are needed to design moral integrity as a whole, either in the relationship with individuals as in the relationship with the political system. The moral value is useful and necessary for moments of conflicts when there is an impasse caused by ideological, religious, ethnic or other oppositions that may occur. 7. In the seventh place, the value-based approach for the public sector performance and its governance provides a rich opportunity for the rummage and investigation, in a shared manner, national and international, public and educational of the leadership and the provided services around a set of questions about how best to govern and serve the citizen. With this design, the value-based approach for the public sector performance, provides a public management towards to the public governance, allowing greater participation of society in government decisions and higher performance of public services, meeting, in a more fruitful way, the civil society needs. 4 Research Method The objective of strictly structuring a literature review, in order to build knowledge in the research, selecting journals available at CAPES Portal (through Scopus, Web of Science and Emerald’s database) to forma and fundament the theoretical referential, is objective and challenging for the researcher. Considering this challenge, one sought for help in the ProKnow-C method (Knowledge Development Process - Constructivist) to the process of choosing bibliographic portfolio and bibliometric analysis in the public governance theme, focused in the social responsibility. The Proknow-C method allows us to build an impressive bibliographic portfolio of the scientific knowledge (Ensslin, L. et al., 2010). The outcome obtained with this method corroborates with the research that aims the progress of the topic public governance. According to Cauchick et al. (2010) the selection of relevant scientific documents is fundamental in the research for the construction of the theoretical foundation during the observation and collection of data in the existent literature.

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To Afonso et al. (2011), the use of ProKnow-C is a methodology that justifies itself in a simple and systematic manner and contributes to elaborate building up the necessary knowledge to start a research. Also according to Afonso et al. (2011), the ProKnow-C process is a knowledge construction methodology embodied in the development of stages, such as: (i) selection of a bibliographic portfolio that will allow the literature revision; (ii) bibliometric analysis of the bibliographic portfolio, (iii) systemic analysis of the bibliographic portfolio and (iv) elaboration of the research objectives. In order to structure the literature revision, it’s used the first two stages. With the goal of achieving an appropriate literature review, the methodology used to create the bibliographic portfolio is based on two of the four main stages of the ProKnow-C process, referenced by Vilela (2012) Afonso et al. (2011), for the theme public governance, focused in social responsibility, as shown in figure 1.

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Figure 4 - Cognitive research map, synthesis of the bibliographic portfolio selection procedures of the proknow-c’s methodology Source: Ensslin, L. et al. (2010) and Afonso et al.(2011)

To Vilela (2012), at the literature gaps about the theme which is going to be studied, is where the researcher seeks information in current bibliographic databases. As it is for the data collection, this study about the literature review is done based on data research, performed through available scientific articles, for free, at all database indexed to Capes Portal. 21

The Capes Journal Portal has a collection of more than 37,000 full-text titles and more than 130 bases (CAPES,2014), being the biggest source of scientific articles in Brazil, enabling a wide search for the axis of keywords to be investigated. Initially, it must be defined the theme of the research, the axis of the research, so then, choose the key words (Public Governance, Government, Public management) which are intended to identify the relevant articles on the chosen topic through search engines in databases. The results, on each database, are exported to a bibliographic management software, besides the system itself, offered by the Capes Portal, to enable the management of information, such as, the duplication of articles that may occur due to different keywords found in the same article. For this demand, it was used the EndNote software, also provided for free by Capes Portal, being enough for the researcher to enroll himself to require the program.

450 400 350 300 250 200 150 100 50 0

Quotes of the Bibliographic Portfolio Articles 381 298

271

82

76 38

30

26

23

20

14

11

11

10

9

6

Graphic 1 Bibliographic Portfolio of the relevant articles Source: Author – result of the articles’ relevance.

Jointly assessing the scientific relevance of the articles found in the Journal Portal Capes, measured by the number of citations of each article, in the bibliographic portfolio references, there are three highlighted articles that stand by the amount above the standard range of quotes defined in figure 1, namely: Stoker, G, Kickert, W e Scherer,A.

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Quotes of the Bibliographic Portfolio Articles 450 400

Articles Featured in Literature

Stoker, G.

350

Kickert, W

300

Scherer, A

250

Articles Relevant for the Research

200 150

Sanger, M. B Short, J. L

100

Cafaggi, F. O’Leary R. Gunter, H Shaoul J Levi-Faur Carpenter, D. P. Sun, P.Y.T Bell, S. Smyth S. Tollefson, C Bao, G

50 0 0

2

4

6

8

10

12

14

16

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Graphic 2 bibliographic portfolio – more highlighted articles Source: Author – Research Results

In bibliographic portfolio of scientific relevance of articles (graphic 2), there are the authors Stoker, G. e Kickert, W, who have 679 citations relative to the total portfolio articles. The authors Smyth S. e Levi-Faur have articles with low number of citations, due to the year of publications. 5- Result Discussions As explain Bao et al. (2013) in table 1, the quadrants 1 and 2 represent the public management models MPN. These models count with a professional experience of a career employee team and they are trained to plan, coordinate and develop solutions for the simple and complex problems, they are also oriented by elected employees, but in this model it’s not foreseen that the managers have responsibility, especially to solve value conflicts. Problems arising from quadrant 3, may reveal themselves harder to solve since there is a conflict of values in a medium scale and there is also the problem in a difficult category. In quadrant 4 there are problems that represent a greater challenge with a more difficult for the government and its leaders to solve, since in this quadrant there is conflict of values for which there is no easy solution. As samples, there is the need of the government in promoting growth, but at the same time, respecting the sustainability, both environmental as social. These problems are increasingly common to be solved by governments and their public officials.

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Howard (2011) place that these are the problems for what the public leaders are not prepared for. So, problems from quadrant 4 table 1are considered more difficult to find solution for, especially when there is a lack of preparation of the public agents in order to understand and solve the problems conciliating it with meeting the demands of society and keeping the nation's sustainability. In the analysis of public management and public governance concepts, one searches to identify the intersections or incorporations or ramifications of a concept by another. To Bao et al. (2013), the NPM seeks to use administrative interpellations to solve problems which are primarily of a political nature. The private sector starts from the preposition that consumers are guardians of goods and services offered, however, in the public sector this act is contested corollary, one of the functions of the public agent is to identify the society values and provide answers for them and for the demands. The look of the assumptions over the NPG characteristics emerges from an ideology that allows a government performance, dispensing with an understanding of a political system, where the market, the public sector and the civil society act together to conceive a political representative toward to the social responsibility. Adopted, by the public sector, the kind of incorporation perspective, of the public management and public governance concepts, the Figure 5, identifies three attributes for the conceptual analysis:



Management Profile: The Public Management acts straight over the processes and products, aiming efficiency and effectiveness in the public management, however, it’s low effective to solve political conflicts, high complexity problems and a high conflict of values. The Public Governance presents its focus in people, in the social common good with a constant seek in meeting the civil society desires.



Public Management and Public Governance: Public Management (NPM) and Public Governance (NPG), where NPM is found in quadrants 1 and 2 and when there is the greatest conflict of values, less this management profile is able to solve, since it’s more about processes management with indicators to measure performance. The public governance is found in the quadrants 3 and 4, showing ability to solve value conflicts and problems by complexity degrees since it’s about management focused on people and in the social common good. Stakeholders’ team: This group is one of the characteristics of the public governance that seeks to meet all the stakeholders. In this group the governance seeks to meet the civil society, the market, the companies, promoting the well-being for all. Before, the public management met only a few stakeholders, concerned only with respect to products.



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Figure 5 – Matrix of conceptual analysis of the Public Management and Public Governance. Source: Author

The governance system has as a goal to help the public organizations, the public managers and the political structure to achieve the target performance of the organizations in line with the demands of the civil society. The increasing need of a greater responsibility of the public managers and greater political responsibility creates a broader and more complete sphere of the public governance mechanism with a greater participation of all stakeholders in the government system, especially from the civil society, which has as a challenge to present themselves in a greater scale in decision-making of politicians and public managers, for results of greater social responsibility and public service governance.

6 Conclusion and suggestion of new researches The governance movement seeks to promote economic growth in a sustainable way linked to poverty reduction and environmental preservation. It’s also part of this movement, a State imbued with greater responsibilities of its own management, with civil society and market, contributing with the demand presentation to the political leaders and actors of the executive, focused on the partnership and relationship between government, market and civil society. The governance reflects the hope of a better provision of government services to society, promoting private sector and civil society

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with new ways of participation and citizenship, creating an environment of public leadership through the power shared with society. In the private sector, the corporate governance has aimed to conduct all management procedures clearly to all participants involved in the company, using transparency, responsibility and equity. With the globalization and increased need for effectiveness in public administration, direct and indirect, it’s observed a migration of these concepts of corporative governance from the private administration to the public one. Governance, in the public sector, includes various instruments, as an architecture that promotes the transparency of the information and the responsibilities of the various actors who work in the organizational structure of public administration. It’s needed a tool that works in order to control and regulate the public system as an internal control as well as a responsibility control of the public managers over the budget execution corresponding to the tax collection. An efficient legislation toward to a governance management, increases the power of changing in the State’s role, turning its results to meet the more precise demands of the social group. The legislation guides the public managers in their governance strategies, foreseen sanctions or rewards for the compliance or noncompliance of the guidelines stablished in the legislation toward to responsibility and governance. To achieve this performance it’s necessary measurement indictors that could provide to all stakeholders, government and society, precise information about public politics execution, public administration and benefits to society at expenses arising from the collected taxes. The public management measured only by the traditional financial control of the organizations show itself inefficient to achieve public governance. The search, by the public managers, in reach with high efficiency, the demands of the civil society, undergoes through a greater technological availability, such as information transparency, greater diversity of performance indicators of public management and a greater control, by the society, of the performance of government organizations. As a suggestion of a new research, one may study how it’s been developed the public governance in Brazil, comparing it with European countries, such as France, England and Germany, seeking a greater integration of the public administration at the globalization. 7 Bibliography Afonso, M.H.F.; Souza, J.V.; Ensslin, S.R.; Ensslin, L.(2011). Como Construir Conhecimento sobre o tema de pesquisa? Aplicação do processo Procknow na busca de literatura. Revista de Gestão Social e Ambiental. RGSA, São Paulo, v. 5, n. 2, p.47-62, mai./ago. Almquist, Roland ; Grossi, Giuseppe ; van Helden, G. Jan ; Reichard, Christop (2013). Public sector governance and accountability. Critical Perspectives on Accounting, Vol.24(7-8), pp.479-487. ScienceDirect (Elsevier B.V.)

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