Impact of New Public Management and Public Governance on municipal real estate management in Poland Bartłomiej Marona Cracow University of Economics Department of Real Estate and Investments Economics ERES Conference June 28 - July 1, 2017, DELFT
Agenda Research objectives and research framework Current research in PREM Survey study Summary
Research objective The research goal was boiled down to the assessment of the role of individual concepts of public management in the process of real estate management in Polish municipalities.
Theoretical framework of the study New Public Management Corporate Real Estate Management Public governance Source: own study Public Real Estate Management
PREM topics during ERES conferences Conference All papers PREM papers Affiliation ERES 2015 (Istanbul) 235 2 Netherland, Estonia ERES 2014 (Bucharest) ERES 2013 (Wien) ERES 2012 (Edinburgh) ERES 2011 (Eindhoven) ERES 2010 (Mediolan) 216 1 Netherland 270 3 Estonia, Poland, Germany 307 1 Poland 232 3 Netherland, New Zealand 333 3 Germany, Italy TOTAL 1 593 13 - Source: Marona (2017)
PUBLIC MANAGEMENT perspective in real estate management research Lp. Autors/Year Method/ Place M Paradigm 1. D-L Constantin, C. Survey research in Romania (8 municipalities). Part of greater research in South New public Mitrut, R.M. Grosu, M. and Eastern Europe - EU-funded project entitled Municipal Property management Profiroiu, A.E. Iosif, Management in South-East European Cities (PROMISE). (2016). 2. M. Gross, R. Źróbek, (2015). Modified delphi method compilation of delphi method and questionnaire. 17 complete responses were received from 14 countries (mainly from Europe and 3 from Asia). 3. B. Marona (2016). Survey research - Kraków Metropolitan Area - 25 questionnaires were returned, that is 49% of the sent ones. 4. Z. Pozega, B. Crnkovic, A. Zivkovic, (2014). Literture review (Croatia) Good Governance New Public management, Good Governance New Public Management 5. Y. Lu (2011) Survey research based on 37 questionnaires (property and other state asset) conducted in USA 6. FAO (2007) Secondary research. Research conducted by Land Tenure and Management Unit from Food and Agriculture Organization of the United nation (FAO). International research based on data from World Bank, United Nations Human Settlements Programme and International Feeration of Surveyors. New Public Management Good Governence Source: own study
Survey research Preliminary research - January 2016 (01 Polish metropolitan area) Current research May/June 2017 (all Polish metropolitan areas) 304 questionaries (response rate: 34% - 103 municipalities)
22 questions (from 35) are dealing with NPM and GG NPM According to Ch. Hood (1991) the doctrine includes 7 standards: hands on professional management in the public sector; explicit standards and measure of performance; greater emphasis on output control; shift to disaggregation of units in the public sector; shift to greater competition in public sector; stress on greater discipline and parsimony in resource use. GG According to European Commission (2001) 5 principles: openness (transparent working, active communication, accessible language); participation (wide involvement throughout the policy chain, and especially by central governments); accountability (making legislative and executive roles clearer and ensuring that institutions take responsibility for what they do); effectiveness (ensuring policies are timely, have clear objectives, are appropriately evaluated, are proportionate and involve decision-making at the most suitable level); coherence (requiring political leadership and institutional responsibility in ensuring consistency in approach).
Characteristics of respondents urban 22% rural 55% semruban 23% Source: own study
profiled trainings? performed real estate management objectives? timeliness of the performed real estate management tasks? internal control? complete information on website about property investments? performence discussed at management meetings? staff experience in the private sector? complete information on websites about municipal property? residents possibility to express opinions and co-decide in an organized way? professional real estate education? prepare accomplishment reports at the end of the year? systematic valuation? indicators used to measure effectiveness of REM? benchmark assessments? salary differentiation? publishing real estate reports online? do you know GG principles? do you now NPM principles? outsourcing? correlation between staff bonus and REM effects? 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Absolutely no Mostly no Mostly yes Absolutely yes Source: own study
Summary It should be stated that both the NPM and the GG concept do not constitute a benchmark model in the practice of municipal real estate management in Poland. The concepts are treated more as a set of tools from which the majority of municipalities choose only some, selected instruments. NEXT STEP correlation between 1) public management tools and 2) RE performance and effectiveness more extensive statistical analysis (type of municipality, metropolitan area ) case study research
Literature Constantin D-L, Mitrut C., Grosu R.M., Profiroiu M., Iosif A.E., (2016), Municipal real properties and challenges of new public management: a spotlight on Romania, International Review of Administrative Sciences. Good Governance in land tenure and administration, (2007), FAO Land tenure studies, Rome. Gross M., Źróbek R., (2015), Good governance in some public real estate management systems, Land use policy, No. 49. Hood Ch., (1991), A public management for all seasons? Public Administration, Vol. 69, No 1. Lu Y., (2011), New Public Management reforms in public asset management as the state governments of the United States, International Conference on Public Administration (ICPA ). Marona B., (2016), Public management in real estate area some empirical evidence from Polish municipality. Real Estate Management and Valuation, Vol. 24, No. 4. Marona B., (2017), Nieruchomości publiczne jako przedmiot badań nauk o zarządzaniu, Organizacja i Kierowanie, (in press). Pozega Z., Crnkovic B., Zivkovic A., (2014), Effective management of state property as prerequisites for economic development, Conference Proceedings: Economy of Eastern Croatia Yesterday, Today, Tomorrow, Vol. 3.
Many thanks for attention dr. Bartłomiej Marona maronab@uek.krakow.pl