The global economic crisis and exacerbation of wage claims more frequently arises the question: "The State, public organizations or institutions may enter into insolvency?"management, change management, organization, public organization, insolvency

Laurentiu Barcan Ph. D Student

English

Research Papers in Economics

 
CHANGE MANAGEMENT IN PUBLIC ORGANIZATIONS - SOCIO-ECONOMIC 
AND ADMINISTRATIVE IMPACT OF THEIR INSOLVENCY 
Laurentiu Barcan Ph. D Student 
University of Craiova 
Faculty of Economics and Business Administration 
Craiova, Romania 
Abstract:  The  global  economic  crisis  and  exacerbation  of  wage  claims 
more frequently  arises the question: "The  State, public  organizations  or 
institutions may enter into insolvency?" 
JEL classification: D73, H56, J50, J53, J88, M12, M54, Z13 
Key  words:  management,  change  management,  organization,  public  organization, 
insolvency 
Insolvency is the state of the debtor's assets are characterized by insufficient 
cash funds available to pay outstanding debt, it is presumed that manifest when the 
debtor, after 30 days in arrears, has not paid the debt to one or more creditors. 
Organizations are generally formed in highly specialized systems and there are 
many criteria used for grouping and grading. Some are in trade, other in the production, 
distribution and others in the field. Some are focused on profit, others are nonprofit. 
Some are public, others private. Some part of the financial services industry including 
banks,  insurance  and  brokerage  activities.  Others  are  industry  and  hence  the 
classification of original equipment manufacturers or service industry. Some are health 
industry, as service providers, as insurers and policyholders. Some are strictly limited, 
others  not.  Some  faces  fierce  competition  on  the  market,  others  have  formed 
partnerships and other monopoly. Some state capital and other private equity. Some are 
on the market long and others not. Some have strengthened their market position over 
time, while others have emerged stronger as a result of mergers or acquisitions. No two 
organizations are identical. Each has its peculiarities. 
The  difference  between  public  policies  and  social  policies  in  Romania 
generates controversy. But the most significant difference is that while social policy 
means  government  intervention  to  solve  social  problems,  public  policies  can  be 
proactive,  ex.  sustainable  development  and  responsible  government  agencies  may 
decide to hire a specialized institution for developing alternative intervention, policy 
implementation and its evaluation. 
Change is a continuous process of confrontation, identification, assessment and 
action. Change issue is an almost obsessive concern in the sociology of organizations, 
perhaps because of the emphasis placed bureaucratic rigidity, or practical problems 
facing incessantly, both business leaders and managers of administrative reforms. 
A general definition which seems that is the essence of change management is a 
set  of  skills;  techniques  and  disciplines  by  the  complexity  and  specialization  are 
transformed into actions and results through the organization. Adopt methods of change 
management  is  a  difficult  process,  but  necessary,  so  continuing  despite  difficulties. Change essentially means transformation or change the status quo, a change from a 
state of affairs to another, from one set of conditions to another. 
Worldwide, the public sector begins to take modern management techniques 
and practices used in private sector. But this process, the transfer techniques of the 
private sphere into the public is not easy anywhere. Sometimes this means changing the 
structures and methods established over time and there is always the argument that 
private companies must pass the test market (profit) while public sector test is a more 
complicated problem. And public sector must pass a kind of "test market", which takes 
the form of political dispute for power, expressed in part by the Government of votes 
won through achievements. There is still the same. The difference is clear when you 
talk about liability and about its various forms, applicable to private organizations and 
the public. 
Classical  Administration,  governed  by  a  set  of  specific  legislation  is  not 
adequate for this purpose. Operation of a modern public administration, flexible and 
efficient  is  a  prerequisite  for  the  structural  transformation  of  Romanian  society,  to 
achieve a profound reform in all spheres of socio-economic growth of the citizen's role 
in decision making. Also, these changes must be part of the root coordinates imposed 
by the EU integration process, which means achieving - the deadlines - of operating 
standards characteristic of the Member States. 
Government must be able to meet the challenges it has faced. Civil society and 
private  sector  to  develop,  the  administration  must  find  a  partner  to  facilitate 
communication,  provide  levers  and  tools  so  that  they  can  express  themselves  and 
develop. A rigid administration, constrained by their resources, rules and regulations 
may not offer the most prompt response to the needs of society, representing such a 
barrier is often difficult past. 
An efficient administration requires, however, improving institutional capacity 
at central and local conditions, through appropriate use of administrative levers - that by 
ensuring transparency, fairness and accountability in serving the public and spending 
public money - and can ensure a real increase in quality of life of citizens. For this, 
public institutions must be competent, flexible and adaptable to new requirements and 
put in the service of citizens. In the process of European integration, they must be able 
to implement regional development policies and ensure full use, effective and legal 
structural funds. To achieve an efficient administration will act in the following areas: 
•  Introduction of quality standards for public services; 
•  Fully professionalize public administration apparatus; 
•  Strengthening the capacity of emergency intervention and preventive action 
capacity and management of these situations; 
•  Implementing  comprehensive  and  coherent  measures  to  prevent  and 
combat corruption; 
•  Application of codes of ethics for officials and civil servants; 
•  Streamlining administrative institutions and practices; 
•  De-bureaucratization, simplify and expedite administrative procedures; 
•  Improving planning and evaluating public policies and inter-institutional 
cooperation. 
Governments must face a growing complexity and a greater acute needs more 
specialized  staff  to  manage  and  solve  new  problems.  Classical  Administration, 
governed  by  a  set  of  specific  legislation  is  not  adequate  for  this  purpose.  Each 
organization has a particular culture, depending on certain changes be made.  
In  accordance  with  the  alignment  with  European  standards  and  norms  and 
implementation of EU legislation in Romania should be a management change in public 
organizations. There is significant interest in research on public organizations, of how 
they  work,  as  distinguished  from  private  organizations  and the  differences  between 
public organizations in Romania and the European Union. 
An important step in achieving this is to study the effects of insolvency and 
reorganize public organizations to improve functionality, performance management and 
these organizations. This has a major impact on employees, managers and beneficiaries 
of  services  provided  by  public  organizations.  Change  should  be  monitored  both  at 
individual and group, the organization and the community in general. 
What would be the answer to the question? Yes, the city may be insolvent but 
not yet in Romania there is a procedure followed in this situation. 
In the traditional, classic insolvency proceedings applies only to traders. The 
State  acting  as  sovereign  power  in  international  legal  relations,  as  a  matter  of 
international  law (with  other  sovereign  entity)  or  as  a  matter  of  constitutional  law, 
customs, administrative, financial, customs etc. (with other natural or legal persons). In 
international trade relations act but as a matter of private law acts as a holder of an 
ending  its  heritage.  In  most  cases  involving  international  trade  relations  have  state 
contractual nature. In these conditions and they can reach the default. 
In  order  to  eliminate  the  risk  that  judicial  inefficiency,  corruption  and 
deficiencies that are still open the system to endanger national security objectives of the 
strategy, in line with constitutional provisions on separation of powers under the law, 
satisfying the following conditions, requirements and measures responds appropriately 
to the expectations of the Romanian people: 
• Ensuring effective and genuine independence of the judiciary; 
• Ensure transparency and quality of justice; 
• Increase efficiency and accountability of the judiciary; 
• Ensuring access to justice; 
• Preventing and combating corruption in the judiciary; 
•  Strengthening  institutional  and  regulatory  system  of  judicial  cooperation 
within the EU and internationally; 
• Radical improvement of the penitentiary system. 
Achieving these objectives is the primary task and primary responsibility of the 
competent bodies that govern the work of justice, given that Romania's EU integration 
depends  directly  and  immediately  how  the  Romanian  justice  system  will  prove  its 
independence, non-partisan character, capacity to act under state of law and the real 
effectiveness in the fight against corruption. In the context of this national effort, other 
state  institutions  are  required  to  ensure  the  necessary  conditions  -  legislative, 
organizational, human and material - for task radical transformation of the judiciary and 
its contribution to achieving the strategic objective of integration become possible. 
The  first  impact  of  global  crisis  was  building,  and  then  followed  the 
pharmaceutical industry. Almost half of independent pharmacies in Romania or are 
insolvent or are about to go into insolvency. 
REFERENCES 
1.  Barcan L.  Current  issues  on  change  management  in  public  organizations, 
Revista tinerilor economişti nr. 13, Craiova, 2009 
2.  Barcan L.  New  concepts  in  the  change  management  within  public organizations, Revista tinerilor economişti nr. 14, Craiova, 2010 
3.  Burduş E., 
Căprărescu Gh. 
Fundamentele  managementului  organizaţiei,  Editura  Economică, 
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4.  Comşa, M.  Oraşul  în  insolvenţă?,  http://www.e-juridic.ro/articole/orasul-in-
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Căprărescu Gh. Fundamentele managementului organizaţiei, Editura Economică, Bucureşti,

Current issues on change management in public organizations, Revista tinerilor economişti nr. 13,

Insolvenţa instituţiilor publice. Consecinţele faţă de alegeri”,

Management - de la teorie la practică, Editura Universităţii Bucureşti,

New concepts in the change management within public organizations, Revista tinerilor economişti nr. 14,

Oraşul în insolvenţă?,

CHANGE MANAGEMENT IN PUBLIC ORGANIZATIONS - SOCIO-ECONOMIC AND ADMINISTRATIVE IMPACT OF THEIR INSOLVENCY

CHANGE MANAGEMENT IN PUBLIC ORGANIZATIONS - SOCIO-ECONOMIC AND ADMINISTRATIVE IMPACT OF THEIR INSOLVENCY

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Research Papers in Economics