HR and financial issue : a comparative study between government departments and agencies

Abstract

In recent years different Governments found the need to convert Departments into Agencies. This study investigates the reasons behind this and furthermore analyses several differences between Departments and Agencies from an IIR and financial point of view. An analysis between the two in fact proves that there are in fact many differences between them. The hypothesis is that at first glance the creation of Agencies seems to offer a better financial package than Departments. There is also the notion that Agencies are more independent and are financially sustainable. Moreover, there is also the perception that Agencies are in a better position than Departments to recruit staff by offering them a better financial package. In order to ascertain the above a study of the Attorney General's Office (which is today one of Government's Agencies), was carried out. The study although limited to this one particular agency proves that there might be cases where one would today question the fact as to why a Department was converted into an Agency. It is also questionable as to how Agencies can be independent when just like Departments they still depend on Government financing with the consequence that human resources and better conditions for employees in Agencies may still be lacking. It is noted that public officers, despite the supposedly better role with Agencies, may be reluctant to stay on board and prefer to be transferred to another Department. Furthermore some Agencies may also struggle to recruit professional people despite the financial packages being offered. This study delves into the creation of Agencies in Malta following their introduction in the United Kingdom, supported by the existent and relevant national legislation and Government related directives and manuals. Several differences are extracted when the comparison between Agencies and Government Departments is made. To conclude, this study will depict an objective view as to whether Government Agencies are relevant in today's day and age or whether Government Departments are to be strengthened further to operate better or even whether a mix of both is the ideal framework for Government.