František Ochrana

Introducing benchmarking in the Czech Republic and Slovakia

Abstract In many cases the introduction of performance evaluation, performance management and performance financing schemes do not produce the expected results and even create perverse effects. The risks connected with their improper implementation are much higher in developing and transition countries, where the public sector is over-politicized, policy and management capacities are inadequate and resources and experience are limited or often almost absent. Our study provides basic selected data on the use of benchmarking in public administration bodies in the Czech Republic and Slovakia. The findings are clear. In spite of its high potential, benchmarking is not used regularly and properly either in Slovakia or in Czechia. Subjective barriers of its implementation, for example lack of accountability, the rent seeking attitudes of elected politicians and ineffective public services schemes might be most important limits. The situation is slowly improving, but the progress will be naturally limited by territorial fragmentation.

Shortfall of Strategic Governance and Strategic Management in the Czech Republic

Abstract The article analyses the problems of strategic governance and strategic management of the Czechoslovak Government, as well as the Government of the Czech Republic in the years 1989-2016. It seeks the causes and factors that have caused the low levels of strategic governance and strategic management at the level of the ministries of the Czech Republic. It examines the problem from genetic and historical perspective, and from the organizational and human capacity to exercise strategic governance. The study is based on two pieces of empirical research within the ministries of the Czech Republic. It identifies the main cause of failure of strategic governance and strategic management at the level of the central government of the Czech Republic. These include, in particular, the persistent distrust of the ideas of strategic governance and strategic management held by the right-wing governments and the generally low capacity of governments of the Czech Republic to engage in strategic governance. The organizational structure of the central state administration lacks the strategic units that generate ideas for supporting strategic governance. The empirical research of the ministries of the Czech Republic also revealed that policy workers in Czech ministries dedicate a large proportion of their work time to operational and administrative activities at the expense of analytical and strategic activities. The changes require implementation of reforms within the public administration, which (among other things) will eliminate the existing causes and inhibiting factors regarding the lack of strategic governance in the Czech Republic.

Economies of Scale – Empirical Evidence from the Czech Republic

In accordance to the principle of decentralization, local governments play important role in the economy and public administration since 1990 in the Czech Republic. The country belongs to countries with the most territorial fragmentation of municipalities (with Slovakia, Hungary or Austria). In this context, there is the relationship between economic performance and the size of a municipality very often discussed and thus the problem of existence of economies of scale in current high territorial fragmentation of municipalities. The issue becomes very relevant in the present time after global financial crisis which has had a significant impact on local governments in the conditions of the Czech Republic. The paper analyzes the dependence of the per capita costs on choosing public service of local government and the size of municipality in terms of number of inhabitants. Based on the results authors try to determine the optimal size of municipality.

Does the Lowest Bid Price Evaluation Criterion Make for a More Efficient Public Procurement Selection Criterion? (Case of the Czech Republic)

Abstract Through the institute of public procurement a considerable volume of financial resources is allocated. It is therefore in the interest of contracting entities to seek ways of how to achieve an efficient allocation of resources. Some public contract-awarding entities, along with some public-administration authorities in the Czech Republic, believe that the use of a single evaluation criterion (the lowest bid price) results in a more efficient tender for a public contract. It was found that contracting entities in the Czech Republic strongly prefer to use the lowest bid price criterion. Within the examined sample, 86.5 % of public procurements were evaluated this way. The analysis of the examined sample of public contracts proved that the choice of an evaluation criterion, even the preference of the lowest bid price criterion, does not have any obvious impact on the final cost of a public contract. The study concludes that it is inappropriate to prefer the criterion of the lowest bid price within the evaluation of public contracts that are characterised by their complexity (including public contracts for construction works and public service contracts). The findings of the Supreme Audit Office related to the inspection of public contracts indicate that when using the lowest bid price as an evaluation criterion, a public contract may indeed be tendered with the lowest bid price, but not necessarily the best offer in terms of supplied quality. It is therefore not appropriate to use the lowest bid price evaluation criterion to such an extent for the purpose of evaluating work and services. Any improvement to this situation requires a corresponding amendment to the Law on Public Contracts and mainly a radical change in the attitude of the Office for the Protection of Competition towards proposed changes, as indicated within the conclusions and recommendations proposed by this study.

The Evaluation of the Role of the Office for Protection of Competition of the Czech Republic in Regulating Public Procurement

Abstract Our study offers additional insight into the Office for Protection of Competition. It examines the Office for Protection of Competition in terms of an input-process-output model, defines the inputs needed for its activities and examines the outputs of its control activities. It also identifies external factors (in the environment) that affect the performance and behavior of the Office for Protection of Competition and have an impact on inspection activities. The theoretical background as well as assumptions are then subjected to empirical scrutiny. Theoretical conclusions and recommendations for more effective control of public contracts are drawn from the conclusions which are established.

Benchmarking in Czech higher education: the case of schools of economics

This article describes the use of benchmarking in universities in the Czech Republic and academics’ experiences with it. It is based on research conducted among academics from economics schools in Czech public and private universities. The results identified several issues regarding the utilisation and understanding of benchmarking in the Czech educational environment. The survey results have also been compared with existing theories regarding the use of benchmarking in higher education as well as with the research results of other authors. Recommendations for public policy are based on an econometric analysis of global benchmarking initiatives.

Devolution in the Czech and Slovak institutions of cultural heritage

ABSTRACT This paper presents a comparative study of the impact of devolution on institutions in the area of cultural heritage in the Czech and Slovak Republics. Both states had formed a previous federation. After the break-up of the federation, public administration reforms with different trajectories took place in each state. In the Czech Republic, part of the museums was transferred from the authority of the ministries to the regions. This process, however, has had different trajectory in Slovakia. In this article, we compare the efficiency of Czech museums of a regional character with regional museums in Slovakia where the devolution did not occur. For comparison, we have utilized input-based envelopment data analysis. Our results suggest that institutions which have undergone the above-described form of devolution have lower performance than other institutions.

Identifying Corruption Risk: A Comparison of Bulgaria and the Czech Republic

Abstract The article focuses on risk assessment of individual and systematic corruption at the municipal level in the Czech Republic and Bulgaria. For this purpose, it uses the method of Corruption Risk FMEA, which is based on the classic Fault Mode and Effect Analysis used mainly in production. The model views corruption as an individual action, the application of which revealed significant differences in corruption risk which were detrimental in Bulgaria. The causes of these differences can be seen in the normative attitude of the public towards corruption, the insufficient involvement of the general public, and also the lack in range of controls. Improving the current situation can be achieved in two ways. The “low road” means increasing controls, for example, audits (in particular) and performance benchmarking, and applying them at the appropriate time. The “high road” means utilizing soft instruments and a change in the normative approach of the public towards corruption.

An Empirical Analysis of Post-contractual Behaviour Regarding Public Contracts for Construction Work in the Czech Republic

The article analyses the post-contractual behaviour of actors dealing with public tenders on a sample of 200 randomly selected public works contracts. In this sample, we examined public contracts awarded in 2013, for which it was possible to trace information regarding the final price. Using an econometric model, we have tried to find the factors which have a statistically significant effect on the ratio between the final price paid and the tendered price. The results were compared with similar studies compiled from the conditions in Slovakia. The model shows that the number of offers constitutes a statistically significant indicator of the price. Conversely, factors with negative impact were identified as being the difference between the estimated price and the real tendered price, as well as the use of subcontractors.

Who are the officials in the central administration of the Czech Republic and what activities do they perform

Abstract The article examines the section of officials in the central administration who belong to the ministerial staff of the Czech Republic. It examines those persons engaged in the creation of analyses, strategies, and management activities. The study is based on original research conducted by the ministries of the Czech Republic in 2013 (N = 1351). The article seeks to discover what the make-up of this group is in terms of gender, age, and education levels at the chosen ministries, as well as to report on the types of experiences the group has had. The analysis shows that ministerial officials are in fact a gender-balanced group of employees, predominately university-educated. The overall median age of employees in all ministries is 42 years. On the other hand, there are certain inter-ministerial differences, as explained in detail in this paper. Based on results of the empirical research, conclusions have been drawn that may also serve as an inspiration for similar investigations in other countries of Central and Eastern Europe that address similar issues as found in the Czech Republic.