POL 695 UOM Week 4 Efficiency Effectiveness and Customer Service Paper Part 1 Choose any three of the examples from the PPT slides and answer the question

POL 695 UOM Week 4 Efficiency Effectiveness and Customer Service Paper Part 1

Choose any three of the examples from the PPT slides and answer the questions listed next to the case.
You have 300 words per case (not per question) for a total of 900 words in your initial posts.
Please create a new post per case and provide the case number in your subject line so that it is easier for your fellow students to reply.
PowerPoint Slide Set: Efficiency, Effectiveness, and Equity

This slide set contains information needed for Discussions 1 and 2.

Moloney, K. (2018n). Attached below

Efficiency, Equity and Poverty Alleviation: Policy Issues in Less Developed Countries

The Economic Journal, 106(438), 1344–1356.

Bardhan, P. (1996).

Taking Social Equity Seriously in MPA Education

Journal of Public Affairs Education, 11(3), 247–252.

Rosenbloom, D. (2005).

Filling in the Skeletal Pillar: Addressing Social Equity in Introductory Courses In Public Administration

Journal of Public Affairs Education, 10(2), 99–109.

Svara, J. H., & Brunet, J. R. (2004).

Social Equity Is a Pillar of Public Administration

Journal of Public Affairs Education, 11(3), 253–258.

Svara, J. H., & Brunet, J. R. (2005).

PART 2

Reflect on the readings and your chosen case studies this week.
What does this week tell you about the difficulty of balancing efficiency, effectiveness, and equity? Where possible, reflect on the “three Es” using an example from your professional life (500 words). Efficiency, Effectiveness,
and Equity: Pillars of
Public Administration?
The “3 E’s”
Efficiency
Effectiveness
Equity (Social Equity)
Class: To increase your understanding of this lecture, please take a piece of paper
and draw an equilateral triangle. At each triangle corner, place one of the three
“e’s” until each triangle corner has an ‘e’ at it. An equilateral triangle has three
angles of 60 degrees each (for a total of 180 degrees).
Case Studies: In your case studies (later slides), you will imagine altering your
equilateral triangle so that one of the three e’s (say, equity or efficiency or
effectiveness) creates an angle greater than 60 degrees. Given that no triangle may
be greater than 180 degrees, what happens to efficiency and effectiveness if you
prioritize equity to say, 100 degrees from 60 degrees? In other words, in our public
policy and administrative lives, it is very difficult to balance all three values (the
three “e’s”) equally and generally, one is favored over another.
Why the 3E’s Matter
•Evaluate public policy success. The measure that one uses may
determine one’s perception of success or failure.
•Help us understand public values and to differentiate between
the political rhetoric and the surveyed preferences of our
citizens.
•Encourages us to allocate our scarce resources in particular ways
so that our goals are achieved.
•Facilitates a civil servant’s translation of politician objectives into
policy outcomes.
Efficiency
What is efficiency?
•Tries to do “more for less”.
•Searches for possible savings and/or gains in the outputs generated by
the units that comprise the public agency under investigation.
•Desires to create improved outcomes with fewer dollars spent.
•Example1: If the goal is cost efficiency, a police force might aim to
reduce the greatest amount of crime with the fewest dollars spent.
•Example2: If the goal is high school graduation with an efficiency focus,
school districts might aim to graduate the most amount of students
without consideration of the quality of their education.
Effectiveness
What is effectiveness?
•Determined by the distance between observed outputs and a set of
desired goals.
•When budgets resources are limited, public policy choices are
enhanced and equity is enhanced if the money is used effectively.
•The view that it is better to provide a population with more benefit per
dollar than not.
•Example: Given the budget for reducing crime, we can measure crime
reduction effectiveness per dollar spent.
Equity & New Public
Administration (1960s)
•U.S., concerns about fairness, due process, reducing favoritism and
reducing the arbitrary treatment of citizens had been part of our
history…
•Equity received its most important administrative boost (at least in
academia) out of the 1968 Minnowbrook conference in which during
the 1960s protests (in America) it was abundantly clear that there were
important inequalities within the American society.
•There was a consequent realization that our administrative work and
interests had been overly focused on debates around
efficiency/effectiveness and the role of politics in administration.
Equity & New Public
Administration (1960s)
•The emergent idea was called “new public administration” (NPA).
•NPA suggested that “managers must accept responsibility” for
promoting social justice and equity and that this “value infused
movement was seen by many as an antidote to the perilous plight of
the morally mute public managers” (Menzel, 1999).
•But many questioned whether “it was a proper role for non-elected
officials to be so presumptuous in defining the public interest”
(Menzel, 1999).
•What developed were newly-integrated understanding of equity and
its role in public administration, public management, and public policy
Equity
• Measures the degree of fairness in the allocation of resources or the distribution of
outputs (i.e. desired public services) among the units that are evaluated.
• Other definitions are focused reducing inequity in society.
More formal definition:
“The fair, just and equitable management of all institutions serving the public
directly or by contract, and the fair, just and equitable distribution of public
services, and implementation of public policy, and the commitment to promote
fairness, justice, and equity in the formation of public policy” (Svara & Brunet,
2004, p. 101).
Example1: Given the desire to reduce crime in a community, we might measure its
equitable impact by tracking citizen complaints against police officers or the equal
reduction in all crimes regardless of severity.
Equity (as Procedural Fairness)
•Procedural Fairness: “… examination of problems or issues in procedural
rights (due process), treatment in a procedural sense (equal protection),
and the application of eligibility criteria (equal rights) for existing
policies and programs” (Svara and Brunet, 2004, p. 101).
•Procedural Fairness includes due process, prevention of discrimination,
prevention of sexual harassment, equal employment
opportunities/affirmative action, representativeness, and cultural
competence.
Examples of Procedural Fairness Not Occurring:
? No due process prior to moving a family in an urban renewal project;
? Racial profiling to identify suspects;
? Denying benefits to someone who meets the eligibility criteria
Equity (as Access/
Distributional Equity)
Access or Distributional Equity: “… involves a review of current policies,
services, and practices to determine the level of access to
services/benefits and an analysis of reasons for unequal access.”
Questions:
? Should there be a policy commitment to providing the same level of
service to all?
? Are there times when access or distributional equity must be
considered? Is it OK that in the act of ensuring distributional equity
we create inequities for others?
Equity
(as Quality of Process Equity)
•Quality or Process Equity: This involves a “review of the level of
consistency in the quality of existing services delivered to groups and
individuals… regardless of the distributional criteria that is used” (Svara
and Brunet, 2004, p. 102).
•Commitments to equity also includes a commitment to equal quality.
Questions:
? Do children in inner city or rural schools have the same high-quality
teachers as wealthier communities?
? Do children in inner city or rural schools have the same geographic
proximity to schools as wealthier communities?
Equity (as Outcomes)
•Outcomes: “examination of whether policies and programs have the
same impact for all groups and individuals served… The results
approach examines social and economic conditions and then asks why
different outcomes occur – for example, achievement in schools or
difference in life expectancy based on income or race” (Svara and
Brunet, 2004, p. 102).
•One problem in achieving social equity is that the government and its
services are not the only reason why improvements are not made.
Other individual, familial, community, or societal factors might also
matter.
Case Examples
Explaining Efficiency-Effectiveness-Equity via Case Examples
•We will read through each example and answer the questions.
•The case examples will help illustrate the differences among efficiency,
effectiveness and equity while showing how difficult it may be for
administrators and policy-makers to determine the “right” choice.
Example 1:
Efficiency-Effectiveness & Customer Service
• Take the example of two Customer Service reps, the first one is very short with the customers. If they
start to tell him any unnecessary information, he cuts them off and tells them “that’s not important”.
He quickly resolves their issue but leaves them with a bad taste for the company – most will never be
repeat customers. He is able to handle 50 customer calls per day.
• The second rep takes time with the customers, shows empathy and concern, reviews the situation
with the customer at the end of the call. Every customer is satisfied and impressed – all will certainly
do more business with the company and refer their friends. This rep is able to handle 30 customers
per day.
Questions:
1.
Which representative is more efficient? Which one is more effective? Which one do you prefer
and why?
2.
Are there instances when a government should prefer efficiency over effectiveness? Or
effectiveness over efficiency?
3.
What if we changed “customer service rep” for “social worker”? Would your answers change?
Why or why not?
4.
What if we changed “customer service rep” for “social security administrator”? Would your
answers change? Why or why not?
Example 2:
Effectiveness-Equity & Colon Cancer Risk
• Imagine that the Florida’s Department of Health and Human Services has $200,000
budget to buy a machine which helps doctors determine whether or not a patient in
Miami-Dade has colon cancer. Assumed that 2,200 patients per year die of colon cancer
in Miami-Dade. Assume also that you know there is a portion of the Miami-Dade budget
which could be reallocated to increase your budget to $400,000 if you can only present a
good reasons as to why.
• If Machine A costs $400,000 to purchase but saves 2,200 lives per year, should MiamiDade convince its leaders to purchase it? Or should Miami-Dade purchase a much
cheaper Machine B but with a technical capacity likely only to catch ½ of all emergent
colon cancer cases? This Machine B can save approximately 1,000 lives per year.
Questions:
1.
Which one is more cost-effective?
2.
Which one is more equitable?
3.
Which one do you prefer and why?
4.
Are there instances when Miami-Dade and the State of Florida should prefer equity
over effectiveness? Or effectiveness over equity?
Example 3:
Efficiency-Effectiveness-Equity &
Teacher/Student Ratios
Let’s imagine that Miami-Dade County just completed a research study about
teacher-student ratios in our county. Let’s imagine that the results of this fictitious
study were the following:
•It is more cost efficient to have 30 students to 1 teacher than 25 students to 1
teacher. With 30 students in the classroom, the government’s money is more
efficiently utilized since it costs the government less to educate each student.
•However, they have also learned that in a classroom with 1 teacher and 30 students
that on average, 25/30 students (83%) will be grade level proficient at the end of
the year. When classrooms have 25 students, approximately 20 of out 25 students
will be grade level proficient (80%). In other words, no matter which way the room
is configured, on average there will be five students per class who will struggle.
Questions:
1.
What should Miami-Dade do and why?
2.
Does your answer reflect efficiency, effectiveness or equity? Explain.
Example 4:
Effectiveness-Equity & HIV Prevention
• The primary goal of HIV prevention is to prevent as many infections as possible. This requires
allocating HIV-prevention resources according to cost-effectiveness principles: those activities that
prevent more infections per dollar are favored over those that prevent fewer. This is a preventionbased approach.
• This was historically not the practice in the United States, where prevention resources from the
federal government to the states flow in proportion to reported AIDS cases. This is a treatment-based
approach with an indirect emphasis on prevention.
• Although such allocations might be considered equitable, more infections could be prevented for the
same expenditures were cost-effectiveness principles invoked. The downside of pure cost-effective
allocations is that they violate common norms of equity.
Questions:
1.
What is meant by “common norms of equity”?
2.
Should the U.S. government continue to allocate according to equity considerations or change
its policy to be more cognizant of cost-effectiveness benefits? Defend your answer.
Example 5:
Efficiency-Effectiveness-Equity
& Customs Inspections
Every year millions of containers of various goods enter the US via our U.S. ports. Let’s imagine that it has been
established that approximately 5 percent of containers contain a product (e.g. drugs, ivory, mislabeled goods,
endangered flora or fauna) banned from entry.
Imagine we did a study and found the following information:
(a)
if Customs surveys 1 out of every 100 containers (regardless of nationality origin), they will catch 40% of what is
illegally shipped into the US but slow trade traffic by 15%;
(b)
If Customs agents survey 1 out of every 1000 containers (regardless of nationality origin), they will catch only
10% of what is illegally shipped into the US but without a noticeable decrease in the speed of our trade traffic;
Question:
1.
Given the above information, what should Customs do?
Modification: Now imagine that Customs uses prior intelligence to suggest that 15 countries are more likely than others
to ship illegal goods. Imagine that these 15 countries are known to ship 50% of all illegal goods into America.
1.
Given the modification, now what should Customs do?
2.
At what speed should they process the containers from the 15 countries?
3.
What if one of the countries is a significant trading partner?
Example 6:
Efficiency, Effectiveness, Equity
& Mammography
If you choose Example 7, please choose either Option 1 or Option 2.
Imagine that a developing country hospital had US40,000 to prevent breast cancer in that country.
Should that hospital…
Option 1: Put all $40,000 toward the purchase of one of the most advanced machines in breast cancer
detection even if the physical size of the machine requires its permanent location be in the capital city;
or
Option 2: Buy two $20,000 machines whose smaller size allows the Ministry of Health to transport the
machines to the poor country’s rural areas on a regular basis? The negative of the latter approach is
that the successful detection of breast cancer is approximately 25% lower with the smaller portable
machine.
Questions:
1.
Which decision should be made by the hospital? Defend your choice.
2.
Is your preferred option the most equitable option? Why or why not?
3.
Is your preferred option the most efficient option? Why or why not?
4.
Is your preferred option the most effective (health) option? Why or why not?
Example 7:
Effectiveness-Equity & Truck Weigh-Scales
•Imagine that the State of Florida has recently purchased truck weigh scales. These
scales will weigh the trucks utilizing Florida’s highways. The scale operators will fine
truckers who carry overloaded trucks. The idea is that if trucks did not carry too
much weight that there is less road wear and tear and thus less need to constantly
allocate taxpayer monies to road repairs.
•Note: There are four “who” or “whom” in this example: (1) the truckers; (2) the
citizens; (3) the State of Florida; and (4) the companies requiring trucking services.
Questions:
1.
Should Florida’s state government stop every truck? Is this an equitable
decision (for whom and why)? Is this a cost-effectiveness decision (for whom
and why?)
2.
Imagine that Florida desires to participate in a “just-in-time” manufacturing
system. Does your answer now change?
3.
Perhaps instead the government should stop every third truck. Is this an
equitable decision (for whom and why)? Is this a cost-effectiveness decision (for
whom and why?)
Example 8:
Efficiency-Effectiveness-Equity & Tax-Paying
Imagine that the State of Florida is going to repeal its “no state tax” policy. It is repealing
this law because the State needs more tax revenues to finance its budgetary expenditures.
Imagine that the State needed to create a new state tax structure from scratch. Which of
the following options is more efficient, equitable or cost-effective?
Options:
• Flat tax of 15% on all individual income regardless of individual’s salary.
• A progressive tax of 0%, 10%, 20% and 30% on individuals. The highest-income earners
will pay the most amount of tax.
• No income-tax but instead a 15% GST on the purchase of goods and services.
Questions:
1.
Can you think of other options?
2.
Is your preferred option more efficient, effective or equitable?
3.
And for whom is your option efficient, effective or equitable?
Example 9:
Efficiency, Effectiveness, and Equity &
Democracy
Imagine two democratic options:
•Option 1: representative democracy where each citizen gets one vote
but whose public policy influence is weak and indirect?
•Option 2: direct democracy where each citizens get one vote but their
public policy influence is greater (as a group) and more direct?
Questions:
1.
Which option is more efficient? Defend your answer.
2.
Which option is more effective? Defend your answer.
3.
Which option is more equitable? Defend your answer.
Example 10:
Efficiency, Effectiveness, and Equity &
Democracy
Imagine two democratic options:
Option 1: Representative democracy which gives each State two
senators?
Option 2: representative democracy which provisions a state’s
Members of the US House of Representatives based on district size?
Questions:
1.
Which option is more efficient? Defend your answer.
2.
Which option is more effective? Defend your answer.
3.
Which option is more equitable? Defend your answer.
Example 11:
Efficiency, Effectiveness, Equity & Bank Lending
You live in a developing country in which the vast majority of persons earn less than US$7,000 per year.
A commercial bank seeking to increase its lending portfolio faces several options:
(a)
go after high-income borrowers (2% of population) who can borrow $30,000;
(b)
go after middle-income borrowers (13% of population) who can borrow $5,000;
(c)
go after middle-to-low income borrowers (35% of population) who can borrow $1,000; and/or
(d)
go after low-income borrowers (50% of population) who can borrow $100.
Assume that the transaction costs per loan are the same per borrower.
Questions
1.
What is your strategy? Why?
2.
What is the impact of your strategy on your bank? On society?
3.
For whom is your strategy equitable? Effective? Efficient?
Example 12:
Efficiency, Effectiveness, Equity &
Obtaining a Driver’s License
In Jamaica, it is common practice to pay “under the table” to get your
driving license.
Questions
1.
For whom is this efficient? Effective? Equitable?
2.
What are the societal costs for such bribery?
References
Menzel, D. C. (1999). The morally mute manager: Fact or fiction?. Public
Personnel Management, 28(4), 515-527.
Svara, J. H., & Brunet, J. R. (2004). Filling in the skeletal pillar:
Addressing social equity in introductory courses in public
administration. Journal of Public Affairs Education, 99-109.

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