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“School of Social Sciences” “Master in Business Administration” Postgraduate Dissertation Municipality of Volos Evaluation of structures and services Reorganization of the Internal Services Agency Pavlidou Aikaterini Supervisor: “Kokkinou Aikaterini” Patra, Greece, July 2020 © Hellenic Open University, 2020 The content of this thesis/dissertation along with its results is owned by the Hellenic Open University and his/her author, where each of them has the sole and exclusive right to use, reproduce, and publish it (totally or partially) for educational or research purposes, with the obligation to make reference to the thesis’s title, the author’s name and to the Hellenic Open Universtiywhere the thesis / dissertation was written. Postgraduate Dissertation Municipality of Volos Evaluation of structures and services Reorganization of the Internal Services Agency Pavlidou Aikaterini Supervising Committee Supervisor: Co-Supervisor: Kokkinou Aikaterini Gaki Eleni “HOU” “HOU” Patra, Greece, July 2020 Pavlidou Aikaterini, “Municipality of Volos, Evaluation of structures and services, Reorganization of the Internal Services Agency” To my beloved family Postgraduate Dissertation iv Pavlidou Aikaterini, “Municipality of Volos, Evaluation of structures and services, Reorganization of the Internal Services Agency” Abstract Addressing the issue of the effective operation of the Municipality of Volos, it is found that the municipality is responsible for covering a wide range of responsibilities, a fact that requires specialized personnel and operational organizational chart. The thesis actually deals with the analysis of the municipality’s functional structure and the legal framework that applies to its operation. Also, the municipal human resources’ evaluation is considered necessary for the conduct of the research. The question the present thesis sets to corroborate is the potential of way of organizing the services of the municipality and a more appropriate way of staffing. Theoretically, the research was based on the recording of bibliographic concepts related to management and the application of the principles and tools of Strategic Management, Management by Objectives and Total Quality Management in the case of the Municipality of Volos, in order to ensure its development and progress. A significant preliminary research finding has revealed that reorganization of the municipality's services leads to its more efficient operation, creating conditions for better quality services and resource savings. Overall, the present thesis has first contributed to the strengthening of the smooth operation of the municipality. It also provides recommendations, which can become useful tools for municipalities with common characteristics and dynamics. In other words, the following study can produce a new organizational model of operation and administration of municipalities, with the aim of saving resources and more efficient management of human resources. Keywords Organisation’s structure Evaluation, Internal Services Agency Postgraduate Dissertation v Pavlidou Aikaterini, “Municipality of Volos, Evaluation of structures and services, Reorganization of the Internal Services Agency” Περίληψη Εξετάζοντας το ζήτημα της αποτελεσματικής λειτουργίας του Δήμου Βόλου, διαπιστώνεται ότι ο Δήμος είναι υπεύθυνος για την κάλυψη ενός ευρύ φάσματος αρμοδιοτήτων, γεγονός που απαιτεί εξειδικευμένο προσωπικό και λειτουργικό οργανόγραμμα. Η εργασία ουσιαστικά έρχεται αντιμέτωπη με την ανάλυση της λειτουργικής δομής του Δήμου και του νομικού πλαισίου που ισχύει για τη λειτουργία του. Επίσης η αξιολόγηση του ανθρώπινου δυναμικού του δήμου κρίνεται απαραίτητη για τη διεξαγωγή της έρευνας. Το ερευνητικό ερώτημα, που καλείται να απαντηθεί με την παρούσα διατριβή αφορά στη δυνατότητα εναλλακτικού τρόπου οργάνωσης των υπηρεσιών του Δήμου και καταλληλότερου τρόπου στελέχωσης. Θεωρητικά, η έρευνα βασίστηκε στην καταγραφή βιβλιογραφικών εννοιών σχετικά με τη διοίκηση και στην εφαρμογή των αρχών και των εργαλείων του Στρατηγικού μανατζμεντ, Διοίκηση με στόχους και Διοίκηση Ολικής Ποιότητας στην περίπτωση του Δήμου Βόλου, με σκοπό την εξασφάλιση της ανάπτυξης και της προόδου του. Ένα σημαντικό αποτέλεσμα της έρευνας φανερώνει ότι η αναδιοργάνωση των υπηρεσιών του δήμου οδηγεί στην αποτελεσματικότερη λειτουργία του, δημιουργώντας συνθήκες ποιοτικότερων υπηρεσιών και εξοικονόμησης πόρων. Γενικά, η παρούσα διατριβή έχει κατά πρώτον συμβάλλει στην ενίσχυση της ομαλή λειτουργία του δήμου. Επιπλέον γίνονται προτάσεις, που μπορούν να γίνουν χρήσιμα εργαλεία για δήμους με κοινά χαρακτηριστικά και δυναμική. Μπορεί δηλαδή η παρακάτω μελέτη να παράξει ένα νέο οργανωτικό μοντέλο λειτουργίας και διοίκησης δήμων, με στόχο την εξοικονόμηση πόρων και την αποδοτικότερη διαχείριση του ανθρώπινου δυναμικού. Λέξεις – Κλειδιά Αξιολόγηση δομής οργανισμού, Οργανισμός Εσωτερικών Υπηρεσιών Postgraduate Dissertation vi Pavlidou Aikaterini, “Municipality of Volos, Evaluation of structures and services, Reorganization of the Internal Services Agency” Table of Contents Abstract ................................................................................................................................. v Περίληψη.............................................................................................................................. vi Table of Contents ................................................................................................................vii List of Figures ...................................................................................................................... ix List of Tables ......................................................................................................................... x List of Abbreviations & Acronyms ...................................................................................... xi 1. Introduction ....................................................................................................................... 1 1.1 Overview ................................................................................................................ 1 1.2 Critical issues that require restructuring of municipal internal services agency .... 1 1.3 Motivation for the current research and methodology followed ............................ 4 1.4 Main research’ goals- Importance of the research ................................................. 6 1.5 Thesis structure ...................................................................................................... 7 2. Theoretical Approach ........................................................................................................ 9 2.1 Overview ................................................................................................................ 9 2.2 Strategy, Management, Human Resources Management and Strategic Management ...................................................................................................................... 9 2.3 Stages and Tasks of Strategic Management ......................................................... 11 2.4 Strategic Management in Public Sector ............................................................... 12 2.5 Public Management’s Models .............................................................................. 14 2.6 Management by Objectives in Public Sector ....................................................... 15 2.7 Total Quality Management .................................................................................. 17 2.8 Greek Public Sector and modernization of its administration ............................. 19 3. Analysis of the functional organization structure of Municipality of Volos .................. 22 3.1 Overview ................................................................................................................... 22 3.2 Analysis of the Infrastructure, Transport, Environment, Urban Planning sector of the Municipality of Volos ..................................................................................................... 23 3.2.1 Description of existing structures ....................................................................... 23 3.2.1.a Infrastructure Sector .............................................................................. 23 3.2.1.b Transport sector .................................................................................... 24 3.2.1.c Environment .......................................................................................... 24 3.2.1.d Urban Planning Services ....................................................................... 25 3.2.2 Evaluation of existing structures ........................................................................ 25 3.3 Analysis of Economic Development and Employment sector of the Municipality of Volos ............................................................................................................................... 26 3.3.1 Description of existing structures ....................................................................... 26 3.3.2 Evaluation of existing structures ........................................................................ 27 3.4 Analysis of Social Policy and Education of the Municipality of Volos ................... 27 3.4.1 Description of existing structures ....................................................................... 27 3.4.1.a Social Policy .......................................................................................... 27 3.4.1.b Education