An important area of governance reform relates to the need to develop greater accountability, better management, effective service delivery and empower front line staff . With this objective, the Second Administrative Reforms Commission in its report titled 'Organizational Structure of the Government of India' has suggested that the policy making functions and execution functions of the government should be segregated and properly organized. The execution functions should be issued to the executive agencies.
In this, each such agency is institutionalized, specifying its powers, mission and objectives, framework, accountability, standards and targets and financial arrangements etc. and is empowered to issue annual performance reports and accounts. The agency has the freedom to make changes in its management style, strategy, operating system, workforce etc. within the broad guidelines of the government. The advantage of 'agency' structures is that it provides clarity to the outcome.
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