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J.K ~1cLay Limited: Cnang:nb an Economy by Chang~.ng ;ts Public hector ;;a~_ 10 <br /> ' Part II ' <br /> Public sector management reform <br /> Introduction <br /> Reform of public sector management has been described as "a worldwide phenomenon, <br /> particularly as governments grapple with rapid social, economic and technological change, <br /> including the effects of globalisation". <br /> Basic structure of the New Zealand public service <br /> The reformed structure and institutional framework of the New Zealand public service has <br /> several relevant features - <br /> • As in most Westminster systems; New Zealand has a politically neutral public service, <br /> accountable to the political executive and open on a competitive basis to suitably qualified <br /> persons who are recruited and promoted on the basis of merit. <br /> • The organisation, structure and functions of the public service are governed by legislation <br /> (State Sector Act 1988 and Public Finance Act 1989). <br /> • The central departments are those of the Prime Minister and Cabinet (excluding the Prime <br /> Ministers private office), the Treasury, and the State Services Commission (SSC). In <br /> addition, the New Zealand Defence Force, Police and parliamentary agencies are funded <br /> directly from parliamentary appropriations, as are a number of Crown entities, including <br /> various boards and authorities. <br /> • The Treasury advises the Minister of Finance and the Cabinet on fiscal policy, financial <br /> management, macro-economics, and regulatory policies that have a major influence on <br /> economic performance. It also also advises on major social, trade and environmental <br /> issues. <br /> <br /> • The SSC is headed by a Commissioner and Deputy Commissioner, appointed by the <br /> Governor General on the recommendation of the Prime Minister. The SSC is responsible <br /> to the Minister of State Services for several functions, including policy advice on the <br /> design and management of government organisations, personnel management, industrial <br /> relations and training services. The SSC also provides policy advice on the development, <br /> remuneration and conditions of employment of senior public servants, and on issues of <br /> management and performance within the public service. This has involved the "review <br /> of the efficiency, effectiveness, and economy of each department, including the discharge <br /> by the Chief Executive of his or her functionsls " <br /> <br />