Institutional mechanisms and good governance : a perspective on the South African public sector

Abstract

Good governance reflects effective management and effective stewardship of public resources in an ever-changing and competitive international environment. The manner in which departmental activities are conducted is the critical link between inputs and outputs, that is, the effective and efficient utilisation of resources. Maximisation of organisational performance in relation to good governance should focus on improving institutional mechanisms such as leadership, the setting of clear operating principles, the quality of control systems and accountability. This paper explains the role played by institutional mechanisms such as strategic and operational plans, budgeting, transversal systems and internal and external auditing in upholding good governance.