Public Administration - NQF 4: SAQA ID 57824 Handbook UNIT ...

Public Administration - NQF 4: SAQA ID 57824 – Handbook

Page 1 of 24 Public Administration – US 242902 Issue 3: 01-01-2020

UNIT STANDARD 242902

Demonstrate an ability to apply the principles of problem identification, analysis and decision-making within immediate

work context

UNIT STANDARD NUMBER: 242902 LEVEL ON THE NQF: 4 CREDITS: 6 FIELD: Business, Commerce and Management Studies SUB FIELD: Public Administration

PURPOSE

This Unit Standard is intended for officials involved in service delivery functions within the public sector. On completion of this standard the learners will be able to contribute to the improvement of service delivery trough the cultivation of more effective administration and people skills. The qualifying learner is capable of:

Demonstrating an ability to locate problems within a wider public sector context.

Demonstrating an ability to perceive problem-solving as a process and manage problem-solving objectively.

Identifying levels of authority and protocols relating to the resolution of problems.

Engaging in decision-making in order to resolve problems and generate new ideas and solutions in order to contribute towards overall public sector objectives.

Identifying and applying the principles of risk management to problem analysis and decision-making.

LEARNING ASSUMED TO BE IN PLACE:

All learners accessing this qualification must be competent in: Communication NQF Level 3. Mathematical Literacy NQF Level 3. Computer Literacy NQF Level 3.

SESSION 1 DEMONSTRATE AN ABILITY TO LOCATE PROBLEMS WITHIN A WIDER PUBLIC SECTOR CONTEXT.

Learning Outcomes

The public sector context is analyzed and described in terms of macro and micro performance categories.

Concepts of 'problem' are analysed and distinguished.

Root cause analysis, process modelling and brainstorming concepts are described and applied to the analysis of problems in the wider public sector context.

The roles and functions of continuous improvement, quality and risk management teams and functions are described in the context of problem location.

1.1. The public sector context



The part of the economy concerned with providing basic government services. The composition of the public sector varies by country, but in most countries the public sector includes such services as the police, military, public roads, public transit, primary education and healthcare for the poor. The public sector might provide services that non-payer cannot be excluded from (such as street lighting), services which benefit all of society rather than just the individual who uses the service (such as public education), and services that encourage equal opportunity.

The public sector, sometimes referred to as the state sector, is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal. Examples of public sector activity range from delivering social security, administering urban planning and organizing national defense. The organization of the public sector (public ownership) can take several forms, including:

Direct administration funded through taxation; the delivering organization generally has no specific requirement to meet commercial success criteria, and production decisions are determined by government.

Publicly owned corporations (in some contexts, especially manufacturing, "state-owned enterprises"); which differ from direct administration in that they have greater commercial freedoms and are expected to operate according to commercial criteria, and production decisions are not generally taken by government (although goals may be set for them by government).

Partial outsourcing (of the scale many businesses do, e.g. for IT services), is considered a public sector model. The Department of Public Service and Administration leads the modernisation of the Public Service by assisting government departments to implement their management policies, systems and structural solutions within a generally applicable framework of norms and standards to improve service delivery. Support efforts have been combined with measures to promote compliance with the Public Service prescripts, including a comprehensive amendment to the Public Service Act, 1994 (Act 93 of 1994), enacted in 2007. The scope of the Minister's policy-making powers in terms of the Public Service Act, 1994 includes the structure and functioning of the Public Service; conditions of service and other employment practices in the Public Service; labour relations; health and wellness of employees; information management in the Public Service; e-government; integrity, ethics, conduct and anti-corruption; transformation; reform; innovation; and any other matter to improve the effectiveness of the Public Service and its service delivery to the public. The department has led the implementation of a range of policies and processes, including the Batho Pele Programme. It has also initiated the Community Development Workers Programme in the Public Service, which brings government closer to the people by deploying public servants into communities to advise citizens on their civil rights and learn about their needs. In fulfilling its role of building institutional capacity, specific to fighting corruption, in 2010, the Department of Public Service and Administration drove the following projects: the Minimum Anti-Corruption Capacity (MACC) Audit the Anti-Corruption Capacity-Building Programme, aimed at preventing, detecting and investigating corrupt and unethical practices in the workplace. A total of 108 provincial departments and 36 national departments were contacted for the MACC Audit. In March 2010, the department verified information submitted by these departments. The audit was expected to be finalised by the end of the 2010/11 financial year. Size of the Public Service By the end of March 2010, the Public Service had 1 272 311 people in its employ (including members of the South African National Defence Force). Of these employees, 63% were attached to the social services sector (health, social development, education and home affairs), followed by 20% in the criminal justice sector. Human-resource management (HRM) and development in government.



The Department of Public Service and Administration is the custodian of HR in the civil service, creating the framework for recruiting, retaining and training people who are central to the high performance Public Service that the country requires. Within the Department of Public Service and Administration, there are two dedicated branches, Labour Relations and Remuneration Management (LRM) and HRM and Development that focus on people issues. LRM focuses on remuneration and conditions of service using Persal – the payroll system of government. By February 2010, government was working on the development and implementation of a public service development programme, which would set the norms and standards for public servants in all spheres. A framework on HR planning has also been developed, as well as a handbook on appointing board members. The roll-out of the HR Connect skills database is proceeding well. HR Connect will ensure that departments can analyse skill levels in relation to required posts, occupations and job profiles. An additional benefit is that personal and structural information on the Persal system is being updated in the process. The Employment Health and Wellness Policy Framework were developed and the HIV and AIDS Workplace Policy in the Public Service reviewed. The curriculum on HIV and AIDS M&E has been developed, and quality assured. Batho Pele (People First) Batho Pele remains government's leading campaign to achieve the desired crucial transformation of the hearts and minds of public servants. This is a public-service culture reorientation programme that is aimed at aligning the behaviour and attitudes of public servants with the practice of Batho Pele ethos. To intensify the implementation and impact of this policy, Minister Baloyi launched the Batho Pele Impact Assessment in 2010, which seeks to strengthen the integrated implementation of Batho Pele and its impact across the three spheres of government. This will enhance partnerships, collaborations and better coordination towards the implementation of Batho Pele and intervene decisively and coherently in the economy and society to address social and economic developmental goals.

Reform of the public sector

In her book “Public sector reform –Governance in South Africa (2005), Karen Miller provides a comprehensive review of public sector reform and the impact of these reforms on the management of the political-administrative interface. Miller states that the formulation of policy in South Africa appears to be more centralised, consolidated and top down with the office of the Presidency playing a dominant role in the formulation of policy. The policy role of Directors General is therefore changing and becoming more politicised. Directors General should focus on the outcomes of policy, the administrative feasibility of a policy and must attempt to understand the political direction of the Minister and the political environment. According to Karen Miller, South Africa is reforming its institutions and consolidating its democracy. It is still attempting to clarify its constitutional and institutional arrangements whether between the executive, legislature, judiciary and/or within the executive branch of government. Within the executive branch of government there exists an uncertainty about the political-administrative interface. However, current trends indicate that the political leadership is playing an increasingly dominant role in this relationship. This supports the argument that there is an increasing convergence between politics and administration with the role of senior public servants becoming more politicised and the political executive gaining more influence in the formulation of policy. According to Page and Wright (1999), in Bureaucratic Elite’s in Western European States, this trend of politication is consistent with international trends, i.e. there is an increasing political influence over the senior public service which occurs more often



1.2. The Concepts of 'problem' Karen Miller, in her book “Public Sector Reform, Governance in South Africa (2005), states that the democratic political dispensation of post-apartheid South Africa, inherited a public service which was beset with problems. The impact of apartheid created a public service that lacked legitimacy, professionalism, representation, a democratic and development culture and the capacity to deliver quality services to all South Africans. The challenge for the democratic dispensation was to change the culture of the public service so that it entrenched the democratic principles indicated in the Constitution of the Republic of South Africa (1996) and instilled a culture of professionalism and prudence in public (civil) servants in their duty of serving all South Africans. Such principles include values such as integrity, accountability, transparency and accessibility. In developing countries, such as South Africa, healthcare is a necessity or a „basic need‟, involving a „physiological cure‟, rather than „care‟ as such, or even the ability to pay; whereas in developed countries, healthcare is often seen as a luxury. In these former countries, health insurance coverage is either not available, or else it is extremely expensive. There are inequalities in health spending and service levels in the public sector, compared with those in the private healthcare sector in South Africa, where the health budget is approximately 9% of GNP. However, 60% of this is spent on private health. Only 18% of South Africans belong to medical aid schemes, yet the private healthcare system employs two thirds of the physicians and 85% of the pharmacists. Those without health insurance are dependent on public healthcare services. The delivery of quality healthcare services and the integration thereof in healthcare policies is a concern shared by health organisations worldwide. Lindelow and Wagstaff (2003) explain that the quality of health services directly influences health outcomes, health-related behaviour and patient satisfaction.

Case study: Public Sector Struggling with Shortages of 80 Drugs

CAPE TOWN, May 11 , 2010 (IPS) - South Africa is experiencing a shortage of over 80 different drugs in its public health sector, including flu vaccinations and medication for tuberculosis and high blood pressure. The severity of shortages varies from province to province and hospital to hospital, depending on the leadership and skills levels of management. Experts blame the shortage on a number of factors, including a lack of trained pharmacists, an ineffective tendering process and the inability of some pharmaceutical companies to deliver drugs.

"The distribution and consumption of medicine forms a chain with many links. Each link has to function optimally for a patient to eventually get her medication," says Dr Elma de Vries, a former chairperson of the Rural Doctors Association of Southern Africa (RuDasa). "Unfortunately, some links are often missing or broken." South Africa has about 9,000 working pharmacists, although 10,824 names appear on the register of pharmaceutical practitioners, according to Andy Gray, a senior lecturer in therapeutics and medicines management at the University of KwaZulu-Natal. Only 1,746 are working in the public sector. Pharmacists often leave for the private sector or positions overseas to earn better pay. At some hospitals, nursing staff have to dispense medicine, mostly without the necessary qualifications. Also, "some hospitals and public clinics do not have computerised systems in place, which means they cannot track demands or place orders quickly enough," says Gray. "In cases where there are no pharmacists, the onus is on the nursing staff to place orders. But if there is inadequate supervision, medicine can get lost."

during transitions in government. Politicians seek to shape to a greater extent the relationship between politicians and the public service in favour of the politicians. Changes in the public service are inevitably linked to much wider political changes.



Insufficiently stocked depots are another weak link in the medicines supply chain. "Hospitals order their stock from provincial depots. But there are a myriad of problems at some depots, where skills shortages lead to a lack of efficient stock management," says de Vries. "But, even if all the systems at the depot are functioning optimally, the national treasury limits the amount of stock they can hold, and they are dependent on the pharmaceutical companies as recipients of state tenders." Gray points to a number of problems at some pharmaceutical companies. "Tenders are awarded to one or two suppliers, but it often happens that those to whom the tenders are awarded, battle to get hold of raw supplies. There is also a lack of skilled personnel and other resources, which means manufacturers battle to supply the huge amounts of medication needed. "Manufacturers have to deal with erratic ordering processes. Some provinces might say they want one million units of a specific medicine but eventually end up buying three million, or they might put in a big order one month and order nothing for the next three months," Gray points out. South Africa is currently experiencing a stock-out of the flu vaccine Trivalent, which provides protection against the H1N1 (swine flu) strain. In a statement, the national institute for communicable diseases confirmed that the shortage occurred because the national department for health bought 1.3 million doses to vaccinate HIV-positive children under 15 and health workers and officials at airports, harbours and other ports of entry during the coming

FIFA Soccer World Cup tournament in June. This has resulted in pharmacies in the private and public sector running out of vaccinations countrywide. According to the statement, another reason for the shortage is "production problems because one of the strains in the vaccine did not grow well". Gray adds that, "manufacturers are not keen to produce medicines which do not bring in huge profits. If there is a drop in the price of a certain medicine, the manufacturer will scale down production. They do not want to have money on the shelf in the form of low priced stock." In April this year there reportedly was a shortage of the anti-retroviral Tenofovir at the Thafalofefe hospital in the Eastern Cape because of an administrative problem. However, the problem was quickly sorted out through the intervention of activists. Vuyiseka Dubula, spokesperson for the Treatment Action Campaign, an organisation campaigning for the rights of HIV-positive people, told IPS the organisation was also "concerned about the reported stockout of TB medicine and antibiotics countrywide". Marije Versteeg of the Rural Health Advocacy Project said that there are stock-outs of TB medications in certain areas of Mpumalanga. "It is a huge concern because people need to continue taking their medications. If they stop, it can lead to drug resistance which makes it difficult to effectively treat the illness." The problem can be addressed, says Gray, by training more pharmacists, better management at all levels and an overhaul of the tendering processes. (END) 1.3. Analysis of problems in the wider public sector context: Root cause analysis, process modeling and brainstorming concepts Root cause analysis Root cause analysis (RCA) is a class of problem solving methods aimed at identifying the root causes of problems or events.



Root Cause Analysis is any structured approach to identifying the factors that resulted in the nature, the magnitude, the location, and the timing of the harmful outcomes (consequences) of one or more past events in order to identify what behaviours, actions, inactions, or conditions need to be changed to prevent recurrence of similar harmful outcomes and to identify the lessons to be learned to promote the achievement of better consequences. The practice of RCA is predicated on the belief that problems are best solved by attempting to address, correct or eliminate root causes, as opposed to merely addressing the immediately obvious symptoms. By directing corrective measures at root causes, it is more probable that problem recurrence will be prevented. However, it is recognized that complete prevention of recurrence by one corrective action is not always possible. General principles of root cause analysis The primary aim of RCA is to identify the factors that resulted in the nature, the magnitude, the location, and the timing of the harmful outcomes (consequences) of one or more past events in order to identify what behaviours, actions, inactions, or conditions need to be changed to prevent recurrence of similar harmful outcomes and to identify the lessons to be learned to promote the achievement of better consequences. ("Success" is defined as the near-certain prevention of recurrence.) To be effective, RCA must be performed systematically, usually as part of an investigation, with conclusions and root causes identified backed up by documented evidence. Usually a team effort is required. There may be more than one root cause for an event or a problem, the difficult part is demonstrating the persistence and sustaining the effort required to develop them. The purpose of identifying all solutions to a problem is to prevent recurrence at lowest cost in the simplest way. If there are alternatives that are equally effective, then the simplest or lowest cost approach is preferred. Root causes identified depend on the way in which the problem or event is defined. Effective problem statements and event descriptions (as failures, for example) are helpful, or even required. To be effective, the analysis should establish a sequence of events or timeline to understand the relationships between contributory (causal) factors, root cause(s) and the defined problem or event to prevent in the future. Root cause analysis can help to transform a reactive culture (that reacts to problems) into a forward looking culture that solves problems before they occur or escalate. More importantly, it reduces the frequency of problems occurring over time within the environment where the RCA process is used. RCA is a threat to many cultures and environments. Threats to cultures often meet with resistance. There may be other forms of management support required to achieve RCA effectiveness and success. For example, a "non-punitory" policy towards problem identifiers may be required. General process for performing and documenting an RCA-based Corrective Action Notice that RCA (in steps 3, 4 and 5) forms the most critical part of successful corrective action, because it directs the corrective action at the true root cause of the problem. The root cause is secondary to the goal of prevention, but without knowing the root cause, we cannot determine what an effective corrective action for the defined problem will be. Define the problem or describe the event factually. Include the qualitative and quantitative attributes (properties) of the harmful outcomes. This usually includes specifying the natures, the magnitudes, the locations, and the timings. Gather data and evidence, classifying that along a timeline of events to the final failure or crisis. For every behaviour, condition, action, and inaction specify in the "timeline" what should have been when it differs from the actual. Ask "why" and identify the causes associated with each step in the sequence towards the defined problem or event. "Why" is taken to mean "What were the factors that directly resulted in the effect?" Classify causes into causal factors that relate to an event in the sequence, and root causes, that if applied can be agreed to have interrupted that step of the sequence chain.



If there are multiple root causes, which is often the case, reveal those clearly for later optimum selection. Identify all other harmful factors that have equal or better claim to be called "root causes." Identify corrective action(s) that will with certainty prevent recurrence of each harmful effect, including outcomes and factors. Check that each corrective action would, if pre-implemented before the event, have reduced or prevented specific harmful effects. Identify solutions that effective, prevent recurrence with reasonable certainty with consensus agreement of the group, are within your control, meet your goals and objectives and do not cause introduce other new, unforeseen problems. Implement the recommended root cause correction(s). Ensure effectiveness by observing the implemented recommendation solutions. Other methodologies for problem solving and problem avoidance may be useful. Identify and address the other instances of each harmful outcome and harmful factor. 1.4. The roles and functions of continuous improvement, quality and risk management teams and functions are described in the context of problem location Continuous improvement Process improvement rules can guide us to finding the solution. The trick is in having the right frame of mind and discipline to use them. For example, one simple rule to finding the root cause of a problem is to ask “why” five times to get to the root cause. The first answer is never the whole story. How about “do it right the first time.” If it was done right in the first place then you wouldn’t need to make excuses for fixing it. Perhaps you didn’t have time to do it right, then when do you think you will have time to fix it? Either way you should correct the errors immediately. So you asked why five times, which is giving you a pretty good idea what the problem is. What is the solution? It is time to involve everyone – we are smarter as a group than a single individual. But the group comes up with ideas that have been tried before. You need to reconsider rigid thoughts, situations change. Try to look at it from a new paradigm to eliminate the impossible thinking. Once you have narrowed the ideas down to possible solutions, pick the simplest answers. Mother Nature may appear complex but it is usually the simple solution that solves the problem. At one time people thought the planets moved in circular orbits, which caused astronomers to create complex calculations with odd retrograde motions to explain planetary motion. Then Kepler derived that the planets moved in elliptical orbits. At first he rejected the idea because he had previously assumed this to be too simple a solution. But he reconsidered such rigid thoughts and he was proven correct. Complex solutions can also mean expensive. In Lean Thinking we like to use our mind more than your money. It is amazing how simple and inexpensive many solutions can really be. Why do people insist on spending hundreds of billions of dollars to solve problems? Because it is much easier to spend money then it is to change people’s paradigms. If you think a problem is impossible, then you also might think the solution is complex and you will need to spend a lot of money to solve it. The goal of continuous improvement is just that continuous improvement, not delayed perfection. Continuous improvement implies we are always working toward perfection but never reaching it. There is always an improvement. So accept the fact that it is a process, make time for it, nothing is impossible, and discipline yourself to do it right the first time. Otherwise fix it immediately when it’s discovered, involve the group in the solution and select simple solutions to resolve the answer to the fifth why you asked. Problems are also opportunities waiting for you.

Ten Golden Rules of Continuous Improvement



1. Problems create opportunities 2. The impossible is a paradigm – Change your mind to change your performance 3. Ask why five times to get to the real answer 4. Eliminate excuses, do it right the first time 5. Correct errors immediately 6. Involve everyone – we are smarter as a group than a single individual 7. Reconsider rigid thoughts, situations change 8. Think simple, not perfect solutions 9. Use your mind more than your money 10. The Goal: Continuous improvement over delayed perfection

Risk management Risk management is the identification, assessment, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives, whether positive or negative) followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. Risks can come from uncertainty in financial markets, project failures (at any phase in design, development, production, or sustainment life-cycles), legal liabilities, credit risk, accidents, natural causes and disasters as well as deliberate attack from an adversary, or events of uncertain or unpredictable root-cause. Several risk management standards have been developed including the Project Management Institute, the National Institute of Science and Technology, actuarial societies, and ISO standards. Methods, definitions and goals vary widely according to whether the risk management method is in the context of project management, security, engineering, industrial processes, financial portfolios, actuarial assessments, or public health and safety. The strategies to manage risk typically include transferring the risk to another party, avoiding the risk, reducing the negative effect or probability of the risk, or even accepting some or all of the potential or actual consequences of a particular risk. Certain aspects of many of the risk management standards have come under criticism for having no measurable improvement on risk, whether the confidence in estimates and decisions seem to increase.

2.1. The concept of process in the context of problem solving

A design is a roadmap or a strategic approach for someone to achieve a unique expectation. It defines the specifications, plans, parameters, costs, activities, processes and how and what to do within legal, political, social, environmental, safety and economic constraints in achieving that objective. Decision making can be regarded as the mental processes (cognitive process) resulting in the selection of a course of action among several alternative scenarios. Every decision making process produces a final choice. The output can be an action or an opinion of choice. Decision-Making Steps

SESSION 2 DEMONSTRATE AN ABILITY TO PERCEIVE PROBLEM-SOLVING AS A PROCESS AND MANAGE PROBLEM-SOLVING OBJECTIVELY.

Learning Outcomes

The concept of process is understood and explained in the context of problem solving.

The concepts of systems analysis and process engineering are understood and described in the context of problem solving.

Negative concepts of 'problem-solving' are explored and their harmful consequences explained.

The benefits of objective 'problem solving are understood and explained with examples.



Each step in the decision making process includes social, cognitive and cultural obstacles to successfully negotiating dilemmas. Becoming more aware of these obstacles allows one to better anticipate and overcome them. Pijanowski (2009, p.7) developed eight stages of decision making based on the work of James Rest:

Establishing community: creating and nurturing the relationships, norms, and procedures that will influence how problems are understood and communicated. This stage takes place prior to and during a moral dilemma

Perception: recognizing that a problem exists

Interpretation: identifying competing explanations for the problem, and evaluating the drivers behind those interpretations

Judgment: sifting through various possible actions or responses and determining which is more justifiable

Motivation: examining the competing commitments which may distract from a more moral course of action and then prioritizing and committing to moral values over other personal, institutional or social values

Action: following through with action that supports the more justified decision. Integrity is supported by the ability to overcome distractions and obstacles, developing implementing skills, and ego strength Reflection in action When in an organization and faced with a difficult decision, there are several steps one can take to ensure the best possible solutions will be decided. These steps are put into seven effective ways to go about this decision making process. The first step - Outline your goal and outcome. This will enable decision makers to see exactly what they are trying to accomplish and keep them on a specific path. The second step - Gather data. This will help decision makers have actual evidence to help them come up with a solution. The third step - Brainstorm to develop alternatives. Coming up with more than one solution enables you to see which one can actually work. The fourth step - List pros and cons of each alternative. With the list of pros and cons, you can eliminate the solutions that have more cons than pros, making your decision easier. The fifth step - Make the decision. Once you analyze each solution, you should pick the one that has many pros (or the pros that are most significant), and is a solution that everyone can agree with. The sixth step - Immediately take action. Once the decision is picked, you should implement it right away. The seventh step - Learn from, and reflect on the decision making. This step allows you to see what you did right and wrong when coming up, and putting the decision to use. 2.2. Systems analysis and process engineering System analysis/ thinking are the process of understanding how things influence one another within a whole. In nature, systems thinking examples include ecosystems in which various elements such as air, water, movement, plants, and animals work together to survive or perish. In organizations, systems consist of people, structures, and processes that work together to make an organization healthy or unhealthy. Systems Thinking has been defined as an approach to problem solving, by viewing "problems" as parts of an overall system, rather than reacting to specific part, outcomes or events and potentially contributing to further development of unintended consequences. Systems thinking are not one thing but a set of habits or practices within a framework that is based on the belief that the component parts of a system can best be understood in the context of relationships with each other and with other systems, rather than in isolation. System thinking focuses on cyclical rather than linear cause and effect. In science systems, it is argued that the only way to fully understand why a problem or element occurs and persists is to understand the parts in relation to the whole. Standing in contrast to Descartes's scientific reductionism and philosophical analysis, it proposes to view systems in a holistic manner. Consistent with systems philosophy, systems thinking concerns an understanding of a system by examining the linkages and interactions between the elements that compose the entirety of the system.

Process engineering



Basically process engineers deal with how to do things better/more consistently/quicker/cheaper/efficiently. For example...lets take the phone company...they have people sitting on the phone waiting to take orders for new service. When a new order comes in there are probably 100s of steps that take place and many people involved to get from order until the time the customer has dial tone. A process engineer might come in to that situation and study the entire process from order until dial tone and attempt to make it more efficient. More efficient in the end means less costly and quicker.

Another good example of process engineering at work is McDonalds. Watch the people behind the counter everything that is done at McDonalds has a specific process they follow...it ends up being quick and consistent. That is why you can generally go to any McDonalds in the world and the food and service will be exactly the same. It can be more complex like assembly lines and manufacturing. Improving process falls in many areas of life Process engineering (also called process systems engineering) focuses on the design, operation, control, and optimization of chemical, physical, and biological processes through the aid of systematic computer based methods. Process engineering encompasses a vast range of industries, such as petrochemical, mineral processing, advanced material, food, pharmaceutical, and biotechnological industries. ] Several accomplishments have been made in Process Engineering: Process design: synthesis of energy recovery networks, synthesis of distillation systems (azeotropic), synthesis of reactor networks, hierarchical decomposition flow sheets, superstructure optimization, design multiproduct batch plants. Design of the production reactors for the production of plutonium, design of nuclear submarines. Process control: model predictive control, controllability measures, robust control, nonlinear control, statistical process control, process monitoring, thermodynamics-based control Process operations: scheduling process networks, multiperiod planning and optimization, data reconciliation, real-time optimization, flexibility measures, fault diagnosis Supporting tools: sequential modular simulation, equation based process simulation,

AI/expert systems, large-scale nonlinear programming (NLP), optimization of differential algebraic equations

(DAEs), mixed-integer nonlinear programming (MINLP), global optimization 2.3. Negative concepts of 'problem-solving' Negative 'problem solving concepts' includes the following:

Blaming, ridicule, personal attacks, negative concepts of 'perfectionism', irrationality, covering-up, subjectivity, distributive problem solving, conflict, divisive.

Negative problem orientation is linked with either an impulsive/careless problem solving style, or an avoidant problem solving style. An impulsive/careless style means clients are likely to make sudden decisions that are not well thought out and are not necessarily relevant to the actual problem. An avoidant style means clients are likely to ignore the problem in the hope that it might go away or in the hope that someone else might solve it.

Unless you hate sweets, most people think chocolate is delicious. If you have a chocolate bar sitting on the kitchen counter, while you’re in the living room; it’s going to attract your attention, where ultimately you’re going

2.4. The benefits of objective 'problem solving”

Benefits includes, inclusive problem solving, rationality, harmony, partnering, team work, building trust, hard on the problem soft on the people approach, outcome orientate.

Subjective versus Objective Problem Solving in Business



to get up and grab it. It hasn’t moved, it can’t play mind games with you or put up banners saying, “Come here and have a bite!” Yet, chocolate can lure anyone’s attention between the ages of 6 to 86. Say you want to analyze how chocolate could be so delicious. In other words, use objective tools to understand subjective truths. You could take a chocolate bar, put it into a processing machine, have millions of sensors, meters, microchips and gadgets measure all of its molecular components before attempting to determine the sweet derivatives. However, the result is either black or white – you like chocolate or you don’t. Everything boils down to what are your tastes and every person will be different. So what does that tell us? When we try to analyze a subjective truth by breaking it down objectively, we erase what we’re trying to understand. Therefore, instead of an objective approach, you must take a subjective one. Subjective Approaches to Subjective Questions In business, you never want to use objective, rational thinking to tackle subjective problems, but that’s a common mistake that most business owners make. Objective tools introduce a terrible “lead-into-gold” alchemy into subjective issues. Let’s say we use root-cause analysis to translate a subjective issue like trust. We end up performing the blame game on others that only exacerbates things instead of improving them. Using objective tools sabotages our ability to see and handle subjective problems and opportunities in every business organization; while subjective tools force you to understand how the concept of objective and subjective are different from each other. You can achieve trust better with a story about how you made a mistake one day than with a resumé of past achievements. Using Personal Experience in Business Vital to Success Everyone wants faith that you know what you’re talking about and mean what you say in business instead of just more information. Faith is a subjective judgment that’s based on personal experience. Since most people can’t experience every aspect of the organization personally, you need to give them a story that inspires faith. Instant mental routines that rely too much on objective criteria often cause us to ignore our natural-born wisdom such as faith. Even in a business meeting, we are all human beings that have loved and lost, trusted and been betrayed. When you share stories that reveal your humanity, you connect with people at the level of human experience – the messy, confusing and emotional reality of people living their lives.

SESSION 3 Identify levels of authority and protocols relating to the resolution of problems

Learning Outcomes

The concept of authority within the public service, and own department or section, context are explained and described.

The necessity of different levels of authority is understood general and explained in the context of problem solving.

The purpose, nature and content of protocols is understood and described generally and the rational for implementing problem-solving protocols is understood and explained.

Problem solving protocols are identified within own department and levels of authority explained in the context of problem solving.

3.1. The concept of authority within the public service The word Authority is derived mainly from the Latin word auctoritas, meaning invention, advice, opinion, influence, or command. In English, the word 'authority' can be used to mean power given by the state (in the form of Members of Parliament, Judges, Police Officers, etc.) or by academic knowledge of an area (someone can be an authority on a subject). In government, authority is often used interchangeably with "power". However, their meanings differ: while "power" is defined as "the ability to influence somebody to do something that he/she would not have done", "authority" refers to a claim of legitimacy, the justification and right to exercise that power. For example, while a



mob has the power to punish a criminal, for example by lynching, people who believe in the rule of law consider that only a court of law has the authority to punish a criminal. In modern nations, local governments usually have some of the same kind of powers as national governments do. They usually have some power to raise taxes, though these may be limited by central legislation. The question of Municipal Autonomy—which powers the local government has, or should have, and why—is a key question of public administration and governance. The institutions of local government vary greatly between countries, and even where similar arrangements exist, the terminology often varies. Common names for local government entities include state, province, region, department, county, prefecture, district, city, township, town, borough, parish, municipality, shire and village. However all these names are often used informally in different countries & local government is the legal part of central government 3.2. The necessity of different levels of authority in problem solving. Power is typically thought of as a precious commodity. This is often because the more power and authority one wields, the higher in the organizational hierarchy they likely stand and the more self-directed decision making ability they command. Hierarchical power is neither good nor bad, but rather is a necessity for enabling coordinated efforts. However, differences in organizational authority affect the way people relate to others: bosses, peers, direct reports. It can even impact your mentoring relationship. There are different relational dynamics that need to be managed depending on the amount of social power you have in relation to your mentoring partner.

Choosing Authority Levels for Team Members

In your very first driving lesson your driving instructor may have given you the steering wheel, but I’m sure he told you exactly when to go left and when to go right. But after a number of lessons, when you had gained some experience, he might have said “Let’s drive to the shopping center, where you almost rammed a phone booth last week,” and it would have been your job to find a way to get there. And with a really experienced driver, the instructor might have said “Why don't you drive around a bit? Mind if I take a nap?” For each individual activity we can distinguish seven levels of authority (modified from Susan M. Heathfield):

Level 1: Tell: You make decisions and announce them to your people. (This is actually not empowerment at all.)

Level 2: Sell: You make decisions, but you attempt to gain commitment from workers by “selling” your idea to them.

Level 3: Consult: You invite and weigh input from workers before coming to a decision. But you make it clear that it's you who is making the decisions.

Level 4: Join: You invite workers to join in a discussion and to reach consensus as a group. Your voice is equal to the others.

Level 5: Advise: You attempt to influence workers by telling them what your opinion is, but ultimately you leave it up to them to decide.

Level 6: Confirm: You let the team decide first, with the suggestion that it would be nice, though not strictly necessary, if they are able to convince you afterward.

Level 7: Delegate: You leave it entirely up to the team to deal with the matter, while you go out and have a good time. You can vary these levels of authority, depending on the topic. For example:

I told our people that I would be starting a new business unit in our organization. (There was no reason for selling this to our employees, because the one I had to sell it to was our CEO.)

I did sell the business model, and what type of customers we’re after, to the people that I selected to join me in my effort.

For the name of our business unit I decided to consult all team members, asking for their ideas.



When it was time to select a logo, I invited all team members to join me in ranking and rating the different designs.

The technical design of our product is ultimately a team responsibility, though I did advise them concerning some architectural issues.

I don't really care who is doing what in the team, but I do appreciate it when they ask me sometimes to confirm that they made the right choices.

Finally, I delegate all the hard work. I was involved in coding for a while, but none of my code survived the team's refactoring efforts, so I've deduced that I'm better at adding value in other areas. When an organization gives a team, committee, or council, an assignment, it is imperative that the organization and team clearly understand their level of authority. When this is not clear by all parties, problems often arise at some level, often under the table but still destructive. Sometimes problems arise because the organization has chosen the wrong level of collaboration or communicated that they were doing one level of collaboration but actually doing another. Problems can also arise when an organization or individual communicates that another person or group has one level of authority but it turns out that they have another, lower level than expected. While this can occur at times because expectations were not met, it should be rare. The Effects of Social Power on Mentoring Social Power (n.) – one’s ability to control their environment, including the behavior of others. Power is typically thought of as a precious commodity. This is often because the more power and authority one wields, the higher in the organizational hierarchy they likely stand and the more self-directed decision making ability they command. Hierarchical power is neither good nor bad, but rather is a necessity for enabling coordinated efforts. However, differences in organizational authority affect the way people relate to others: bosses, peers, direct reports. It can even impact your mentoring relationship. There are different relational dynamics that need to be managed depending on the amount of social power you have in relation to your mentoring partner. The Social Power & Mentoring Model shown here highlights the differences that can exist.

Understanding the power difference that exists in your mentoring relationship will help you more effectively manage it. Less power, equal power or more power, whatever you wield will impact how you relate to your partner. Less Power If your mentoring partner holds a lower position in the organization than you, they probably have less power and authority than you do. In this situation, your mentoring partner is conditioned to take direction from you and will often wait for you to take the lead. Conversely, as the partner who has more authority, you are conditioned to take the lead and own the outcomes of the relationship. This dynamic can work against the collaborative intent



of mentoring and can begin to take on the attributes of a performance management relationship, where the leader directs the learner’s development through highly directive telling behaviour. When relating to subordinates, it is natural to project your authority and to control the outcomes by either driving for results or remaining strategically ambiguous. Yet both of these can undermine the coequal intent of mentoring. When you drive for results and focus solely on achieving your goal with little regard to the needs of your mentoring partner, you risk taking primary responsibility for the results of the relationship. Instead, you should take responsibility for being the best collaborator possible by enabling a positive learning relationship that is mutually supportive. When you are strategically ambiguous and intentionally theoretical and vague as a way of controlling the relationship, you hinder the collaborative essence of mentoring. Instead, you should share specifics when appropriate, including your thoughts, uncertainties, hunches, mistakes, and victories. Equal Power If your mentoring partner holds a position in the organization at the same level as you, then the two of you probably have the same amount of power and authority. In this situation, you are both likely to be conditioned to compete for resources and attention. Subtle rivalry can occur and cause you to avoid discussing issues that touch on your peer-related roles. These issues could include key projects, promotional aspirations, and other people in key positions who could affect your future. When relating to peers, it is natural to compete for attention and to want to protect your image by either practicing one-upmanship or avoiding conflict. However, both of these tactics can impede the development of collaboration and can harm the mentoring relationship. When you practice one-upmanship by asserting superiority and flaunting privileges, exploits or status, you invite jealousy and distrust. Instead, you should resist the urge to one-up your mentoring partner and allow the focus to be on them for the moment. When you avoid conflict or politically charged issues, you undermine trust and limit the amount of development that will take place in your mentoring relationship. Instead, you should openly discuss potentially sensitive issues that affect you as peers and build trust by making confidential commitments. More Power If your mentoring partner holds a higher position in the organization than you, they probably have more power and authority than you do. In this situation, your mentoring partner is conditioned to be in charge and will likely be comfortable taking the lead. Conversely, as one who has less authority, you are conditioned to allow your superiors to chart your destination. This dynamic can work against the co-creative aspect of mentoring by taking you in directions that you did not intend to go in. When relating to superiors, it is natural to withhold information by expressing bravado or passive acceptance. Unfortunately, both of these practices can create a pseudo-mentoring relationship. When you practice bravado with false courage, bragging or boasting, you make it difficult to build an authentic relationship with your mentoring partner. Instead, you should strive to speak honestly and share your faults and missteps, as well as your heroics. When you use passive acceptance and refuse to express your mentoring frustrations or developmental desires out of fear of those in authority, you undermine the ability of your mentoring partner to help guide your development. Instead, you should be quick and honest in providing developmental feedback to your mentoring partner so they can help you achieve your mentoring goals. 3.3. The purpose, nature and content of protocols 3.4. Problem solving protocols are identified within own department and levels of authority Protocol was established to encompass certain formalities and courteous modes of behaviour. These behaviours are still widely accepted as necessary and useful in today’s modern society, particularly when dealing with dignitaries and VIPs.



Throughout history, and across cultures, special importance has been placed on dealing with people in particular positions of influence and importance. Due deference was paid to those in authority as a mark of respect for the position those individuals occupied. This mark of respect has been accorded to royalty, tribal elders and leaders, government officials and those who occupied positions considered important at various times throughout history. Certain occupational groupings have also been historically accorded similar privileges, including the legal, medical, religious and military professions. The Macquarie Dictionary defines protocol as, “the customs and regulations dealing with the ceremonies and etiquette of the diplomatic corps”. The principal role of diplomats and the diplomatic corps is to foster mutually beneficial relations between nation states. Protocol is therefore about building relationships and facilitating positive outcomes for the parties involved. The philosophy of this definition can be extended to more general matters relating to government occasions and functions. For practical purposes protocol is about following correct procedures. It is the art of ensuring that official (and unofficial) occasions, visits, meetings and functions are planned and conducted in accordance with a set of rules that are formally, socially and culturally accepted and expected by the parties involved. The importance of protocol in fostering positive relations and outcomes should not be underestimated or overlooked.

SESSION 4 Engage in decision-making in order to resolve problems and generate new ideas and solutions in order to contribute towards overall public sector objectives.

Learning Outcomes

Decision making models and process are described generically and the context of problem solving in the public sector.

Public sector objectives are classified according to levels of generality and high level objectives re isolated and described.

The process by which lower level objectives are subsumed into high level objectives is described and understood.

The principles of outcomes based problem solving are understood and explained.

Participate in decision-making teams and processes in the context of outcomes based problem solving in public sector context.

4.1. Decision making models and process Decision making can be regarded as the mental processes (cognitive process) resulting in the selection of a course of action among several alternative scenarios. Every decision making process produces a final choice. The output can be an action or an opinion of choice. Decision-Making Steps Each step in the decision making process includes social, cognitive and cultural obstacles to successfully negotiating dilemmas. Becoming more aware of these obstacles allows one to better anticipate and overcome them. Pijanowski (2009, p.7) developed eight stages of decision making based on the work of James Rest:

Establishing community: creating and nurturing the relationships, norms, and procedures that will influence how problems are understood and communicated. This stage takes place prior to and during a moral dilemma

Perception: recognizing that a problem exists

Interpretation: identifying competing explanations for the problem, and evaluating the drivers behind those interpretations

Judgment: sifting through various possible actions or responses and determining which is more justifiable

Motivation: examining the competing commitments which may distract from a more moral course of action and then prioritizing and committing to moral values over other personal, institutional or social values

Action: following through with action that supports the more justified decision. Integrity is supported by the ability to overcome distractions and obstacles, developing implementing skills, and ego strength



Reflection on action When in an organization and faced with a difficult decision, there are several steps one can take to ensure the best possible solutions will be decided. These steps are put into seven effective ways to go about this decision making process. The first step - Outline your goal and outcome. This will enable decision makers to see exactly what they are trying to accomplish and keep them on a specific path. The second step - Gather data. This will help decision makers have actual evidence to help them come up with a solution. The third step - Brainstorm to develop alternatives. Coming up with more than one solution enables you to see which one can actually work. The fourth step - List pros and cons of each alternative. With the list of pros and cons, you can eliminate the solutions that have more cons than pros, making your decision easier. The fifth step - Make the decision. Once you analyze each solution, you should pick the one that has many pros (or the pros that are most significant), and is a solution that everyone can agree with. The sixth step - Immediately take action. Once the decision is picked, you should implement it right away. The seventh step - Learn from, and reflect on the decision making. This step allows you to see what you did right and wrong when coming up, and putting the decision to use.

4.2. Public sector objectives are classified according to levels of generality

Your fundamental role as a Public Sector organisation does not change - accountability and responsibility to both citizens and to the Parliament is paramount. However, the approach of government is changing to one in which openness and transparency is essential. With increasing pressure to make services more citizen-centric and to enhance operational efficiencies, the Public Sector is undergoing a period of transformation as you drive towards ‘doing more with less’ and connecting more effectively with your citizens. Whether providing access to services online, processing Freedom of Information requests, consulting on community matters or managing ministerial correspondence and applications, it is imperative you improve and extend your range of service offerings. You need solutions that support process, content and collaboration management across diverse and often distributed groups of people with significant demands for accuracy and performance. Solutions that transform the way you work by facilitating ‘joined-up’ working and nurture inter-departmental collaboration to transform the delivery of services to better meet the needs of your citizens, whilst reducing operational costs.

The public sector aims at achieving the following objectives:

To promote rapid economic development by filing critical gaps in the industrial structure

To provide basic infra-structural facilities for the growth of the economy;

To undertake economic activity strategically important for the growth of the country, which, if left to private initiative, would distort the national objectives;

To achieve balanced regional development and dispersal of economic activity through growth and diversification of economic activity in less developed areas by providing adequate infra-structure and undertaking programmes of conservation and development of national resources;

To reduce disparities in income;

To avoid concentration of economic powder in a few hands;

To exercise social control and regulation of long-term finance through public financial institutions;

To control over sensitive areas, i.e., allocation of scarce imported commodities; control over the distribution system in relation to essential goods in order to reduce the margin between prices obtained by the producers and those paid by the consumers;

To attain self-reliance in different technologies through development of capacity for design and development of machinery, equipment and instruments and elimination of dependence of foreign agencies for these services;

To enhance the employment opportunities by heavy investment in industry and mining, transport and communication; and



To increase exports and earn foreign exports and earn foreign exchange to ease the pressure of Balance of Payments. Public sector has come to assume the commanding heights of the economy. It was monopoly in railways, communication and air transport; virtual monopoly in coal mining, power generation and petroleum industry; a predominant share in banking, insurance, shipping, steel and other metals; machine tools, fertilizers, insecticides, and petrochemicals; and share in light engineering industries like drugs; textiles garbage industries; consumer goods form break of electronic new industries, it has also been taking over old opens which became sick. Public sector has played a significant role in the industrialization of the country. By establishing the basic and heavy industries and providing the infrastructure, it has enabled growth of innumerable light industries and also provided the virtual inputs of ushering the “Green Revolution”. It has also played a pioneering role in dispersing industries in various regions of the country particularly in the backward area. It is generally recognized as a “model employer” providing fair wages, good working conditions and amenities, and recognizing the rights of the workers. As a result, industrial relations, except in certain units and for some time past, are better and the man days lost are much less than the private sector. In spite of its phenomenal growth and achievements, the public sector has come in for criticism for its major shortfalls.

The most important defect in the public sector is the overall net loss incurred by it. The non-utilization of the rated capacity, by the public sector undertakings, is another major shortcoming. The shortfalls in core items in particular adversely affect the growth of the entire economy. Some of the other defects in the sector are: (i) lack of professional management; (ii) lack of autonomy for the mangers of undertakings; (iii) adoption of bureaucratic procedures which breed delay; (iv) appointment for surplus labour; (v) over stocking of inventories; (vi) unproductive expenditures; (vii) neglect in maintenance of equipment; (viii) taking over the burden of sick industries; (ix) uneconomic pricing of products; and (x) lack of organic linkages between the big plants and small industries. 4.3. The process by which lower level objectives are subsumed into high level objectives When developing instructional objectives, providing instruction, and evaluating student performance, it is important to keep in mind that there are different levels or outcomes of learning. Distinguishing among different levels and outcomes of learning is important. If teachers are unaware of different levels of learning, they are likely to focus on one level to the detriment of others. For example, a teacher may teach a vast amount of factual information but never get around to teaching students to apply and synthesize this information. Or a teacher may teach higher level thinking skills without realizing that these skills require the prior learning of basic skills that must be integrated into these higher order skills. In addition, it is not unusual to see a teacher who wants her students to learn higher order thinking skills give examinations that require only lower level skills. Under such circumstances, the students are likely to put their efforts into the lower order skills. Skills at different levels must be taught (and tested) in different ways; and therefore it is important for teachers and other instructional designers to take into account the different levels and outcomes of instruction. Bloom's (1956) Taxonomy of Educational Objectives is the most renowned description of the levels of cognitive performance. The levels of the Taxonomy and examples of activities at each level are given in Table 3.3. The levels of this taxonomy are considered to be hierarchical. That is, learners must master lower level objectives first before they can build on them to reach higher level objectives

Bloom's Taxonomy of Educational Objectives Cognitive Domain



Knowledge (Remembering previously learned material). Educational Psychology: Give the definition of punishment. Mathematics: State the formula for the area of a circle. English / Language Arts: Recite a poem. Comprehension (Grasping the meaning of material) Educational Psychology: Paraphrase in your own words the definition of punishment; answer questions about the meaning of punishment. Mathematics: Given the mathematical formula for the area of a circle, paraphrase it using your own words. English / Language Arts: Explain what a poem means. Application (Using information in concrete situations) Educational Psychology: Given an anecdote describing a teaching situation, identify examples of punishment. Mathematics: Compute the area of actual circles. English / Language Arts: Identify examples of metaphors in a poem. Analysis (Breaking down material into parts) Educational Psychology: Given an anecdote describing a teaching situation, identify the psychological strategies intentionally or accidentally employed. Mathematics: Given a math word problem, determine the strategies that would be necessary to solve it. English / Language Arts: Given a poem, identify the specific poetic strategies employed in it. Synthesis (Putting parts together into a whole)

Educational Psychology: Apply the strategies learned in educational psychology in an organized manner to solve an educational problem. Mathematics: Apply and integrate several different strategies to solve a mathematical problem. English / Language Arts: Write an essay or a poem. Evaluation (Judging the value of a product for a given purpose, using definite criteria) Educational Psychology: Observe another teacher (or yourself) and determine the quality of the teaching performance in terms of the teacher's appropriate application of principles of educational psychology. Mathematics: When you have finished solving a problem (or when a peer has done so) determine the degree to which that problem was solved as efficiently as possible. English / Language Arts: Analyze your own or a peer's essay in terms of the principles of composition discussed during the semester. Knowledge (recalling information) represents the lowest level in Bloom's taxonomy. It is "low" only in the sense that it comes first - it provides the basis for all "higher" cognitive activity. Only after a learner is able to recall information is it possible to move on to comprehension (giving meaning to information). The third level is application, which refers to using knowledge or principles in new or real-life situations. The learner at this level solves practical problems by applying information comprehended at the previous level. The fourth level is analysis - breaking down complex information into simpler parts. The simpler parts, of course, were learned at earlier levels of the taxonomy. The fifth level, synthesis, consists of creating something that did not exist before by integrating information that had been learned at lower levels of the hierarchy. Evaluation is the highest level of Bloom's hierarchy. It consists of making judgments based on previous levels of learning to compare a product of some kind against a designated standard. The main value of the Taxonomy is twofold: (1) it can stimulate teachers to help students acquire skills at all of these various levels, laying the proper foundation for higher levels by first assuring mastery of lowerlevel objectives; and (2) it provides a basis for developing measurement strategies to assess student performance at all these levels of learning. 4.4. The principles of outcomes based problem solving In out based problem solving the pathway is mapped backwards. That is one begins by determining the outcomes that needs to be achieved and then draws up the action plan on how to achieve that. This means that outcomes



based problem solving is like going on a journey. First you decide upon your destination (outcome), then you decide on how you will get there (by drawing up the problem solving pathway). 4.5. Participate in decision-making teams and processes in the context of outcomes based problem solving in public sector

Discuss about a problem within the public sector and how it can be solved through outcomes based problem-solving.

5.1. Risk management process Risk management principles are effectively utilized in many areas of business and government including finance, insurance, occupational safety, public health and by agencies regulating these industries. Although there are some examples of the use of quality risk management they are limited and do not represent the full contributions that risk management has to offer. In addition, the importance of quality systems has been recognized in industries, and it is becoming evident that quality risk management is a valuable component of an effective quality system.

It is commonly understood that risk is defined as the combination of the probability of occurrence of harm and the severity of that harm. However, achieving a shared understanding of the application of risk management among diverse stakeholders is difficult because each stakeholder might perceive different potential harms, place a different probability on each harm occurring and attribute different severities to each harm. In past years, risk management was mainly applied in the context of safety at work, environmental safety, product safety and product liability (and related insurances). The Risk Management Process courses focus on the safety of people, the environment, technical systems and process. In these individual subfields, risk evaluation and risk treatment is performed in a bottom-up approach. The bottom up approach helps all employees to identify hazards and to report them to their line managers.

More recently, risk management has gained new importance as an obligation of the top management and executives within the framework of corporate governance. The primary task of risk management is to contribute to the achievement of strategic, operational and financial objectives as well as objectives related to the safety of people and the environment.

SESSION 5 Identify and apply the principles of risk management to problem analysis and decision making

Learning Outcomes

The risk management process is understood and explained generically and in the context of public service problem analysis and decision making.

Risk identification understood and explained generically and in the context of public service problem analysis and decision making.

Risk quantification is understood and explained generically and in the context of public service problem analysis and decision making.

Risk handling is understood and explained generically and in the context of public service problem analysis and decision making. Risk feedback and improvement is understood and explained generically and in the context of public service problem analysis and decision making.



Method

For the most part, these methods consist of the following elements, performed, more or less, in the following order.

identify, characterize, and assess threats

assess the vulnerability of critical assets to specific threats

determine the risk (i.e. the expected consequences of specific types of attacks on specific assets)

identify ways to reduce those risks

prioritize risk reduction measures based on a strategy

Principles of risk management The International Organization for Standardization (ISO) identifies the following principles of risk management: Risk management should: create value - resources expended to mitigate risk should generally exceed the consequence of inaction, or (as in value engineering), the gain should exceed the pain be an integral part of organizational processes be part of decision making explicitly address uncertainty and assumptions be systematic and structured be based on the best available information be tailorable take into account human factors be transparent and inclusive be dynamic, iterative and responsive to change be capable of continual improvement and enhancement be continually or periodically re-assessed Process According to the standard ISO 31000 "Risk management -- Principles and guidelines on implementation," the process of risk management consists of several steps as follows: Establishing the context Establishing the context involves: Identification of risk in a selected domain of interest Planning the remainder of the process. Mapping out the following:

the social scope of risk management

the identity and objectives of stakeholders

the basis upon which risks will be evaluated, constraints. Defining a framework for the activity and an agenda for identification. Developing an analysis of risks involved in the process. Mitigation or Solution of risks using available technological, human and organizational resources. 5.2. Risk identification After establishing the context, the next step in the process of managing risk is to identify potential risks. Risks are about events that, when triggered, cause problems. Hence, risk identification can start with the source of problems, or with the problem itself.



Source analysis: Risk sources may be internal or external to the system that is the target of risk management. Examples of risk sources are: stakeholders of a project, employees of a company or the weather over an airport. Problem analysis: Risks are related to identified threats. For example: the threat of losing money, the threat of abuse of privacy information or the threat of accidents and casualties. The threats may exist with various entities, most important with shareholders, customers and legislative bodies such as the government. When either source or problem is known, the events that a source may trigger or the events that can lead to a problem can be investigated. For example: stakeholders withdrawing during a project may endanger funding of the project; privacy information may be stolen by employees even within a closed network; lightning striking an aircraft during takeoff may make all people on board immediate casualties. The chosen method of identifying risks may depend on culture, industry practice and compliance. The identification methods are formed by templates or the development of templates for identifying source, problem or event. Common risk identification methods are:

Objectives-based risk identification. Organizations and project teams have objectives. Any event that may endanger achieving an objective partly or completely is identified as risk.

Scenario-based risk identification. In scenario analysis different scenarios are created. The scenarios may be the alternative ways to achieve an objective, or an analysis of the interaction of forces in, for example, a market or battle. Any event that triggers an undesired scenario alternative is identified as risk

Taxonomy-based risk identification. The taxonomy in taxonomy-based risk identification is a breakdown of possible risk sources. Based on the taxonomy and knowledge of best practices, a questionnaire is compiled. The answers to the questions reveal risks.

Common-risk checking. In several industries, lists with known risks are available. Each risk in the list can be checked for application to a particular situation.

Risk charting. This method combines the above approaches by listing resources at risk, threats to those resources, modifying factors which may increase or decrease the risk and consequences it is wished to avoid. Creating a matrix under these headings enables a variety of approaches. One can begin with resources and consider the threats they are exposed to and the consequences of each. Alternatively one can start with the threats and examine which resources they would affect, or one can begin with the consequences and determine which combination of threats and resources would be involved to bring them about.

5.3. Risk quantification Once risks have been identified, they must then be assessed as to their potential severity of impact (generally a negative impact, such as damage or loss) and to the probability of occurrence. These quantities can be either simple to measure, in the case of the value of a lost building, or impossible to know for sure in the case of the probability of an unlikely event occurring. Therefore, in the assessment process it is critical to make the best educated decisions in order to properly prioritize the implementation of the risk management plan. Even a short-term positive improvement can have long-term negative impacts. Take the "turnpike" example. A highway is widened to allow more traffic. More traffic capacity leads to greater development in the areas surrounding the improved traffic capacity. Over time, traffic thereby increases to fill available capacity. Turnpikes thereby need to be expanded in a seemingly endless cycles. There are many other engineering examples where expanded capacity (to do any function) is soon filled by increased demand. Since expansion comes at a cost, the resulting growth could become unsustainable without forecasting and management. The fundamental difficulty in risk assessment is determining the rate of occurrence since statistical information is not available on all kinds of past incidents. Furthermore, evaluating the severity of the



consequences (impact) is often quite difficult for intangible assets. Asset valuation is another question that needs to be addressed. Thus, best educated opinions and available statistics are the primary sources of information. Nevertheless, risk assessment should produce such information for the management of the organization that the primary risks are easy to understand and that the risk management decisions may be prioritized. Thus, there have been several theories and attempts to quantify risks. Numerous different risk formulae exist, but perhaps the most widely accepted formula for risk quantification is: Rate (or probability) of occurrence multiplied by the impact of the event equals risk magnitude. 5.4. Risk handling Once risks have been identified and assessed, all techniques to manage the risk fall into one or more of these four major categories: Avoidance (eliminate, withdraw from or not become involved) Reduction (optimize - mitigate) Sharing (transfer - outsource or insure) Retention (accept and budget) Risk avoidance This includes not performing an activity that could carry risk. An example would be not buying a property or business in order to not take on the legal liability that comes with it. Another would be not flying in order not to take the risk that the airplane were to be hijacked. Avoidance may seem the answer to all risks, but avoiding risks also means losing out on the potential gain that accepting (retaining) the risk may have allowed. Not entering a business to avoid the risk of loss also avoids the possibility of earning profits. Hazard Prevention Hazard prevention refers to the prevention of risks in an emergency. The first and most effective stage of hazard prevention is the elimination of hazards. If this takes too long, is too costly, or is otherwise impractical, the second stage is mitigation. Risk reduction or "optimization" involves reducing the severity of the loss or the likelihood of the loss from occurring. For example, sprinklers are designed to put out a fire to reduce the risk of loss by fire. This method may cause a greater loss by water damage and therefore may not be suitable. Halon fire suppression systems may mitigate that risk, but the cost may be prohibitive as a strategy. Acknowledging that risks can be positive or negative, optimizing risks means finding a balance between negative risk and the benefit of the operation or activity; and between risk reduction and effort applied. By an offshore drilling contractor effectively applying HSE Management in its organization, it can optimize risk to achieve levels of residual risk that are tolerable. Modern software development methodologies reduce risk by developing and delivering software incrementally. Early methodologies suffered from the fact that they only delivered software in the final phase of development; any problems encountered in earlier phases meant costly rework and often jeopardized the whole project. By developing in iterations, software projects can limit effort wasted to a single iteration. Outsourcing could be an example of risk reduction if the outsourcer can demonstrate higher capability at managing or reducing risks. For example, a company may outsource only its software development, the manufacturing of hard goods, or customer support needs to another company, while handling the business management itself. This way, the company can concentrate more on business development without having to worry as much about the manufacturing process, managing the development team, or finding a physical location for a call center. Risk sharing Briefly defined as "sharing with another party the burden of loss or the benefit of gain, from a risk, and the measures to reduce a risk."



The term of 'risk transfer' is often used in place of risk sharing in the mistaken belief that you can transfer a risk to a third party through insurance or outsourcing. In practice if the insurance company or contractor go bankrupt or end up in court, the original risk is likely to still revert to the first party. As such in the terminology of practitioners and scholars alike, the purchase of an insurance contract is often described as a "transfer of risk." However, technically speaking, the buyer of the contract generally retains legal responsibility for the losses "transferred", meaning that insurance may be described more accurately as a post-event compensatory mechanism. For example, a personal injuries insurance policy does not transfer the risk of a car accident to the insurance company. The risk still lies with the policy holder namely the person who has been in the accident. The insurance policy simply provides that if an accident (the event) occurs involving the policy holder then some compensation may be payable to the policy holder that is commensurate to the suffering/damage. Some ways of managing risk fall into multiple categories. Risk retention pools are technically retaining the risk for the group, but spreading it over the whole group involves transfer among individual members of the group. This is different from traditional insurance, in that no premium is exchanged between members of the group up front, but instead losses are assessed to all members of the group. Risk retention Involves accepting the loss, or benefit of gain, from a risk when it occurs. True self-insurance falls in this category. Risk retention is a viable strategy for small risks where the cost of insuring against the risk would be greater over time than the total losses sustained. All risks that are not avoided or transferred are retained by default. This includes risks that are so large or catastrophic that they either cannot be insured against or the premiums would be infeasible. War is an example since most property and risks are not insured against war, so the loss attributed by war is retained by the insured. Also any amounts of potential loss (risk) over the amount insured are retained risk. This may also be acceptable if the chance of a very large loss is small or if the cost to insure for greater coverage amounts is so great it would hinder the goals of the organization too much. Create a Risk Management Plan Select appropriate controls or countermeasures to measure each risk. Risk mitigation needs to be approved by the appropriate level of management. For instance, a risk concerning the image of the organization should have top management decision behind it whereas IT management would have the authority to decide on computer virus risks. The risk management plan should propose applicable and effective security controls for managing the risks. For example, an observed high risk of computer viruses could be mitigated by acquiring and implementing antivirus software. A good risk management plan should contain a schedule for control implementation and responsible persons for those actions. According to ISO/IEC 27001, the stage immediately after completion of the risk assessment phase consists of preparing a Risk Treatment Plan, which should document the decisions about how each of the identified risks should be handled. Mitigation of risks often means selection of security controls, which should be documented in a Statement of Applicability, which identifies which particular control objectives and controls from the standard have been selected, and why. 5.5. Risk feedback Initial risk management plans will never be perfect. Practice, experience, and actual loss results will necessitate changes in the plan and contribute information to allow possible different decisions to be made in dealing with the risks being faced. Risk analysis results and management plans should be updated periodically. There are two primary reasons for this: to evaluate whether the previously selected security controls are still applicable and effective, and



to evaluate the possible risk level changes in the business environment. For example, information risks are a good example of rapidly changing business environment Seven cardinal rules for the practice of risk communication

Accept and involve the public/other consumers as legitimate partners (e.g. stakeholders).

Plan carefully and evaluate your efforts with a focus on your strengths, weaknesses, opportunities, and threats (SWOT).

Listen to the stakeholders’ specific concerns.

Be honest, frank, and open.

Coordinate and collaborate with other credible sources.

Meet the needs of the media.

Speak clearly and with compassion efficient.

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