Introduction
Management problems which deteriorating the service performance of the public sector existed in Hong Kong for a long time. With the purpose of tackling those weaknesses, the Hong Kong Government started to import a series of reform among the public services provision in the late 1980s. Efficiency enhancement of the public sector became one of the Hong Kong government’s top priorities.
Trading Fund was one of the executive agencies which designed originally for improving the efficiency and quality of service of government departments. Hong Kong Post has been adopted this executive agency since 1 August 1995. After operating with Trading Fund for more than ten years, the expected result has been achieved but conversely it has emerged another new problem too. This paper will investigate the backgrounds of public sector reform, the details of Post Office Trading Fund in Hong Kong and also evaluation of this change.
Causes of reform
The public sector existed several managerial problems which seriously affecting the public services’ quality and standard at all times. Firstly, the traditional public services cannot effectively improve their quality. As there was lack of formal evaluation programmes for public sector to review their performance, it is difficult for them to have a comprehension of whether the services provided have produce effective outcomes.
Secondly, the traditional public sector cannot effectively meet the service standard expected by citizens. The role of public sector in the pass was just a reactive service provider. The comments from service users were not took into account seriously. Consequently, dissatisfied service users congregated. Besides, the size of government expanded too much that leaded to difficulty for sustaining a centralized controlled system.
Thirdly, the conventional public services cannot effectively control the cost. Since there is absence of any business annual planning or tactics in the public sector,...