Baltic Journal of Economic Studies 111 Vol. 4, No. 1, 2018 Corresponding author: 1 Department of Public Administration and Customs Administration, University of Customs and Finance. E-mail: danyulya@i.ua DOI: https://doi.org/10.30525/2256-0742/2018-4-1-111-117 FORMATION OF “ELECTRONIC OFFICE” MODEL OF ADMINISTRATIVE SERVICES PROVISION Yulya Danshina1 University of Customs and Finance, Ukraine Abstract. The purpose of the work is to form the model of “electronic office” of administrative services provision and justification of advantages of office on the basis of conducted comparative analysis of the existing models of administrative services provision in Ukraine – “departmental” and “integrated”. Methodology. A methodological basis for investigation is the logical analysis of theoretical and methodological backgrounds for management over administrative services provision process. For theoretical generalization and formation of the model of “electronic office”, there are used scientific recommendations of Ukrainian scientists regarding the necessity to transform the process of administrative services provision into the electronic form. Results. The investigations allowed confirming that the model of “electronic office” gives an opportunity to implement equal interaction between a subject of provision and a subject of an appeal as electronization of governance allows organizing an effective feedback channel. Moreover, the model of “electronic office” allows considering citizens as a source of methods and ways to develop management over administrative services provision system. Practical meaning. The model of “electronic office” of administrative services provision gives to subjects of provision and subjects of appeal opportunity to effectuate interrelationship during the management of the system of administrative services provision. Meaning/ Distinction. The provided model will give an opportunity to involve active citizens in the processes of state governance and to increase their impact on the processes of electronization of national – governance activity. Key words: management, process, procedure, e-governance, model of governance, subject of provision, subject of appeal. JEL Classification: D72, D73 1. Introduction The modern state of the system of administrative services provision requires reinterpretation of ways to improve and develop the model of the system of administrative services provision that corresponds to the spirit of modernity and the requirements of the information society. In the modern information society, the processes of electronization cover all sectors of the economy with enormous speed, thereby forming a system of relationships of a new format. A system of administrative services provision is not an exception too. However, the processes of electronization in the system make more complicated the range of issues of a different type (economic, regulatory, informational, technological) that are primarily subject to be settled, before the conduction of transformations of the present system of administrative services provision into the electronic form. Besides, the transformation requires significant financial, human, information, and other resources. However, in the long term, “electronic office” of administrative services provision will be able to settle not only a range of issues that have been typical for the system during many years, but also to reveal wide range of new opportunities both for the parties of administrative services provision and for the parties of referral. 2. Analysis of the latest researches and publications devoted to the process of administrative services provision Primarily, the achievement of the objective of herein investigation means a description of the process of administrative services provision, so we need to differentiate the definitions of terms “process” and “procedure”. A. Lipentseva and Y. Zhuk strongly believe that the process of an administrative services provision in Ukraine needs to be processed and regulated by legislation as it, firstly, depends on the operating efficiency of the authorities of state governance, state employees and officials, who are directly involved in the Baltic Journal of Economic Studies 112 Vol. 4, No. 1, 2018 process of administrative services provision (Lipentsev, 2015). V. Tymoshchuk (2012; 2015) study the organizational basis for administrative services provision, particularly, during the period of administrative reforms, considering the process of the administrative services provision to be not clear, impractical, and they suppose that this process does not respect interests of citizens. The authors emphasize the necessity to form a high-quality mechanism of administrative services provision to the population, as each citizen estimates care of government pursuant to the quality of administrative services provision. The official sources (Sistemy menedzhmenta kachestva, 2015) define the process as one or several correlated types of activity that absorb “inputs” in order to obtain results. Within the frame of herein context, the result is considered to be an output. As a rule, the outputs of one process are the inputs for other processes. Pursuant to these sources (Sistemy menedzhmenta, 2015), a procedure is a certain standardization of activity or process implementation. Thus, a process is a set of activities, and a procedure is a regulation of activity or process implementation. Correspondingly, in order to start the process of service provision, a party of referral needs to make an application for a certain administrative service. Pursuant to the information card, a party of referral sends an application to the relevant party of services provision. If he/she chooses an electronic communication channel, the process of service provision is being significantly simplified, but in a greater degree, it will depend on the set of factors connected with the technological compatibility of information systems of the state governance. A completed application needs to be considered as an output of party of referral activity and a starting point for the decision-making procedure by a party of services provision. During the decision-making process, a party of referral is guided with a relevant technological card. If there is an application for the compound service, the process of services provision is being extended by a number of procedures that are equal to the number of services included in the compound service. A supposed positive result of the party of services provision activity is an administrative act that may be considered as an output and, correspondingly, the end of the whole process of administrative services provision. The Analytical Report to the annual Message of the President of Ukraine to Verkhovna Rada of Ukraine “About the domestic and international position of Ukraine in 2017” (Pro vnutrishnie ta zovnishnie stanovyshche Ukrainy v 2017 rotsi, 2017) contains information about the initiative of State Migration Service of Ukraine to the legislation of Ukraine. Pursuant to this initiative, there has been put a set of changes about the delegation of functions to the local authorities of state governance connected with the Registration of Individual Entities and De-registration at the place of residence. There is also data about the authorization of Administrative Service Centres (hereinafter  – ASC) created by local authorities of state governance with a right to compile and issue passports of the citizen of Ukraine in the card form and passports of the citizen of Ukraine for leaving abroad with contact-free electronic data storage device. 3. The modern state of the process of administrative services provision On the example of receipt of passport of the citizen of Ukraine for leaving abroad, we offer to consider the organizational aspect of electronic state governance in the system of administrative services provision. After the entering into force of visa-free regime between Ukraine and EU countries, the excitement for receipt of the passport for leaving abroad provoked a range of problems that were not foreseen both by a system of administrative services provision and by a super system – a system of state governance. So, the process of getting the international passport starts from the moment of application submission for the service. A submission of application in the electronic form cannot be implemented through any information technology system resources, especially websites of subdivisions of the State Migration Service of Ukraine, Unified State Portal of Administrative Services, and Portal of State Services iGov. All abovementioned resources suppose only the possibility to use a service of the electronic queue. Inaugural project “Electronic queue” has been operating only in several cities of Ukraine: Kyiv, Lviv, Dnipro, Odesa, and Ternopil. It is worth to remark that with consideration of excitement for the considered service, a demand for this service is surpassing supply. The existing situation that may be considered as first attempts to introduce e-governance in the system of administrative services provision allowed entrepreneurially-inclined citizens to organize their business. The idea of this business is to follow and to reserve a free place in the electronic queues on the electronic resources, having into possession the necessary data about the party of referral. Due to the fact that new free dates and time in the electronic queues are being formed only once per 24-hours day at an unascertained time, it is impossible to reserve a place for yourself. All these conditions make demand and price increase for the service “to reserve a place” from the sites of private advertisements and it destroys again the credibility of the citizens to the state authorities and their expectations that e-governance will allow settling the range of issues, including corruptive ones. Consequently, a maximum that can be gained from the electronic resources is to obtain requisites for Baltic Journal of Economic Studies 113 Vol. 4, No. 1, 2018 the preliminary payment transactions, patterns of applications that should be printed out beforehand and completed before the submission. But such conditions for the organizational aspect are not in compliance with “service-oriented state policy” declared by the managerial approach. But, of course, if we compare it with a bureaucratic approach for process organization of administrative service provision, the abundance of forms and access to the current accounts and requisites of the party of services provision may be estimated as an “over-the-top service”. Taking into consideration that it is impossible to submit an application, necessary documents and confirmation of payment distantly, the procedure will be taking place in one of the subdivisions of the State Migration Service of Ukraine that has an opportunity to draw-up the passport or through ASC. When a party of services provision accepts an application, the process of provision of considered administrative service may be controlled by a party of referral through the website of State Migration Service of Ukraine. Through the relevant services for requested information and after the completion of several fields designated for the personal information, a party of referral obtains the information about the stage of consideration of his application, for example: the documents were accepted; there is a data check; a permit for personalization was given; a confirmation of the technical capability of personalization; data is personalized; the document is ready. At this stage, advantages of e-governance for parties of referral are finished. The parties of services provision do not have almost any advantages from e-governance, not due to the fact that their activity process is connected with high technologies, but because of the necessity to print out all documents and to effect necessary procedures with them, then they need to scan documents and etc. Such a state of things is called as “Ukrainian” e-governance. In that context, there is an urgency to analyse three models of system operation of administrative services provision: “departmental office”, “integrated office” and “electronic office” in order to estimate the established internal environment that is suitable for the formation and development of the appropriate directions. In order to define prospects of each of the offered models, we offer to consider positive and negative sides and to define all pros and cons. By way of comparison, we offer to take as a basis a following range of criteria: purpose, main task of the model, organizational principle, roles of party of referral and party of services provision in models, personnel skill level, database organization and management, availability, schedule of work, regulation of queue, way to identify a person, submission of documents, related services, possibility to control the process, feedback. The application for administrative service in the “departmental office” leads to the negative attitude from the side of parties of referral towards the parties of services provision and pursuant to the questionnaire (Fond “Demokratychni initsiatyvy” im. Ilka Kucheriva, 2015), the consequences are determined with the following factors: a necessity to visit office for several times (30%); paper chase during the consideration of appeal (28%); a necessity to collect necessary data by yourself from other offices (20%). Moreover, a “departmental office” has a range of problems of the following nature: – the complexity of procedures and contradictory legal and regulatory framework; – territorial lack of integration of different authorities of state governance that provide administrative services; – territorial inaccessibility for the parties of referral from villages; – artificial “fragmentation” of administrative services by separate “chargeable services”; – rearrangement of responsibilities related to the collection of references, approvals, agreements and etc. to the parties of referral by authorities of state governance; – unreasonably big amounts of charges for separate types of administrative services; – limited number of days and limited time period for reception of citizens; – unreasonably long terms for the provision of separate administrative services; – problems with access to information that is necessary in order to obtain administrative services and etc. (Zhuravel, 2016). A comprehensive settlement of these issues was a policy of powers decentralization in the area of administrative services provision for the local level to the authorities of state governance, particularly, through the delegation instruments. In spite of the necessity to coordinate such actions with reform of the local self-governance and administrative and territorial structure, there were attempts to transfer part of basic administrative services to the local level, as decentralization was defined as a practical mechanism to enhance the influence of the society on the parties of administrative services provision. In order to justify a necessity to conduct a declared policy, the advantages of decentralization are considered to be the following: – enhancement of influence of the society on the quality of services; – efficient organization of services provision (a Head possesses the relevant power and responsibility); – efficient use of public resources (personnel, premises, equipment technology, etc.). But, till nowadays, some cities of Ukraine do not have enough technical, financial, and personnel resources in order to accept the delegated powers. The result of such unreadiness – is an assignment of one responsible person from the number of staff of the local authority Baltic Journal of Economic Studies 114 Vol. 4, No. 1, 2018 of state governance to perform functions for the whole “integrated office” (Dromashko, 2016). Starting from 2008, due to the initiative of local authorities of self-governance, there were formed first “integrated offices”  – centres of administrative services provision, which main functional purpose became a fast and comfortable provision of all necessary administrative services to the party of referral. The application forms for most administrative services are supposed to be accepted in one place, and a direct consideration of appeal and the provision of result should be performed by different authorized bodies of state governance. Giving it in other words, a party of referral during the appeal to “integrated office” provides an application and minimum list of the required documents and afterward, in a period stipulated by legislation, he/she will take a result of all actions that are being performed by “back office”. Thus, a party of referral does not participate in the decision- making process and its result, which realization is under the responsibility of state employees and officials of the authorities of state government that is being coordinated by an administrator. So, an administrator is considered to be a main state “intermediary”, which makes impossible a direct contact of the party of referral with a party of administrative services provision and, thus, it excludes a corruption element. There is also a simplified access and conditions for services receipt and time period for execution of such services is becoming considerably shorter. The first “integrated office” under the name “Centre of Administrative Services” Transparent Office” was set up in Vinnytsia city. The list of administrative services that were provided by this office included all types of services of Vinnytsia City Council and local authorities of state governance. At the legislative level, there were defined the main requirements for such offices, the principles and order of their functioning. Pursuant to many legislative provisions, there is an idea that such an office should provide a wide range of services, but the certain list of administrative services of the “integrated office” is being defined by an authority that created it (Pro administratyvni posluhy: Zakon Ukrainy № 5203-VI, 2012). From the perspective of interest of the parties of referral, the “integrated office” should certainly provide basic administrative services and, in general, as many services, as it is possible. The main tool for the integration of basic services into the “integrated office” is an approved list by the Cabinet of Ministers of Ukraine (Deiaki pytannia nadannia administratyvnykh posluh orhaniv vykonavchoi vlady cherez tsentry nadannia administratyvnykh posluh: Rozporiadzhennia Kabinetu Ministriv Ukrainy № 523-p, 2014),, but for its realization there should be done changes in the special relative laws that allowed providing “fast” administrative services and administrative services by administrator and/or representative of parties of administrative services provision in the “integrated office”. The basic administrative services include the following actions: – registration of births, deaths, and marriages; – registration of place of residence and issue (exchange) of passport (identification) documents (“domestic” and “for leaving abroad”); – registration of title to real property, particularly for the land plot; – registration of business entities; – registration of transport vehicles and issue (exchange) of driver’s licenses etc.; – social administrative services (public welfare payments, subsidies, etc.). There were also legislatively defined requirements regarding the time of reception of parties of referral in ASC and pursuant to these requirements, the time of reception is not divided by hours for consultations and hours for the acceptance of documents. It is worth to draw a special attention to the requirements concerning the premise of centre. According to these requirements, a premise is being divided into open and private parts. Open part is designed for reception, advisory work, information distribution, and services provision to the parties of referral. Besides, the service sector should be created pursuant to the principle of demonstrativeness of working places location, so-called “open space”, but it should not be like cabinet system that we can observe in the “departmental office”. It’s worth to remark that regarding the issue “one- stop-shop” or offices that are operating in accordance with the principle “joint office”, Ukraine was guided by experience of such countries as Germany  – offices for citizens, Poland  – service departments for citizens, Canada – integrated office, in other words, by countries, which territories and number of population is similar to Ukrainian parameters. In general, the idea of “integrated office” obviously has a set of advantages that can be defined as positive sides, for example: integration under the principle of “joint office”; actions under the principle “one-stop-shop”; territorial availability; open space; extended work schedule; electronic control of queue; related services. So, the policy of decentralization through the introduction of “integrated offices” was not expected by both authorities and ASC. During the process of official services transmission to the “integrated offices”, there was lack of collaboration and opposition from the side of some authorities of state governance. Besides, the “integrated offices” faced with many organizational and procedural matters on the way towards efficient administrative services provision, particularly, lack of staff, knowledge and skills, the absence of technical and technological equipment in the premises, absence of documents forms to provide delegate services. The level Baltic Journal of Economic Studies 115 Vol. 4, No. 1, 2018 of development of “integrated offices” in the country is in an uneven manner. The best-known champions are centres in Lutsk, Ivano-Frankivsk, Vinnytsia, Kyiv or Kharkiv and there are many others that are less efficient, especially of the community-based level, where technical and resource maintenance is much worst in comparison with other cities. That is why, the “integrated offices” that were initially established for corruption level minimization, better transparency and convenience in services provision to the parties of referral did not achieve the defined purposes and a decentralization policy may be considered to be a failure. The abovementioned data allows making a conclusion that “integrated office” has some crucial drawbacks, such as: lack of interaction with parties of services provision; unjustified refusals from the parties of services provision; logistical problems connected with transmission of documents; failures to meet a deadline regarding the solution of cases; necessity to work with different informational systems; absence of approved rules and regulations, list of services, informational and technological cards at the moment of establishment of “integrated office”; presence of separate schedule for services, provided by different structural subdivisions; necessity to provide different parties of administrative services provision with permanent working places that require additional non-human resources; parallel acceptance of documents outside the territory of “integrated office”; non-coordination of permissive legislation in the area of business activities and legislation about administrative services; status and professional integrity of the administrators of “integrated office”. In conclusion about the usefulness of “integrated offices” operation, it is necessary to note that modern information technology and international tendencies in all spheres of activities of the society show a process of getting rid of intermediation if the process can be automated. The role of “integrated office” involves this matter too. Nowadays, human life and activities are based on the wide usage of Information & Communication Technology (hereinafter  – ICT) that essentially make life easier. Taking into consideration a person from the informational society, there are being formed new requirements to the system of administrative services provision and created a background for the integration of “departmental offices” and their transformation into the “electronic office”. 4. Formation of the model of “electronic office” of administrative services provision Within the framework of reformations in system of administrative services provision, the introduction of technology of “e-governance” that means information distribution among the parties of referral regarding the procedures and possible results of process through information terminals, call-centres of state governance authorities, and creation of Portal of administrative services provision allow affirming about signs of appearance of the third model of system of administrative services provision – “electronic office”. “E-model” of the system of administrative services provision means the automated process of administrative service provision, ranging from the standard information provision to the completion of financial and other transactions, using electronic servers of informational and communicational resources that ensure distant interaction. Such a model of system will allow performing the provision of administrative services through single access point  – Portal, with the help of integration of “departmental offices” in it, informational system of interdepartmental electronic interaction between authorities of state governance and formed electronic registers directly within the mode 24/7, through the usage of application on the personal device of party of referral. The informational systems should provide request processing of the parties of referral and search of the authorized body of state government to provide the relevant service, to bring information to applicant’s knowledge in online mode with the help of ICT. On the basis of abovementioned data, we can make a conclusion that operation of “integrated offices” minimized conditions of the system corruption to a certain degree that made consumers satisfied. The usefulness of “integrated offices” operation on the territory of Ukraine is not clear as they were not able to settle any problems in full measure that are peculiar to “departmental office”. Such showings as saving of time for visits of different parties of services provision, possibility to choose convenient time in order to visit office, high informativeness in the office and comfort in general are rather shady too, as in order to obtain service through “electronic office” you need much less time and it has been functioning in the mode 24/7. Besides, most of the citizens prefer to obtain administrative services through ICT, and each year will show the increase of these matters, as the younger generation of citizens is completely into the informational and communicational technology. During the establishment of “electronic office”, it is necessary to concentrate all efforts on the regulation of problems of “departmental offices” as authorities are able to ensure the following things, for which there were created ASC: open space of the premises, conditions for incapacitated people, electronic queue, information provision, relevant services and etc. Within this context, a direction for process development of administrative services provision is a policy of “services privatization” that is very popular in many Western countries. In accordance with the Baltic Journal of Economic Studies 116 Vol. 4, No. 1, 2018 managerial concept, a “privatization” – is an introduction of competition, but what is the essence of such a kind of concept is not clear as parties of services provision are monopolists. In spite of the adoption of the Law of Ukraine in 2012 “On Administrative Services” (Pro administratyvni posluhy, 2012), pursuant to provision of which, all cities of region subordination and district state administrations are obliged to create ASC; many necessary administrative services till now are being provided through the territorial bodies of state governance and subdivisions of different ministries. Thus, the bodies of state governance persistently defend the policy of privatization that supposes to keep a possibility to provide a part of administrative services that are under their competence though own subdivisions or “offices”. Against this background, there are now latest initiatives, for example, the introduction by the Cabinet of Ministers of Ukraine to the Verkhovna Rada of Ukraine a project of Law “On Services and Service Centres of the Ministry of Internal Affairs of Ukraine” (Pro servisni posluhy ta servisni tsentry Ministerstva vnutrishnikh sprav Ukrainy. Zakonoproekt No. 2567, 2015), that foresees a creation of chain of “service centres” of the Ministry of Internal Affairs of Ukraine, draft of legislation of the Ministry of Justice of Ukraine regarding “competition” in the area of registration administrative services of property and business (Pro vnesennia zmin do deiakykh zakonodavchykh aktiv Ukrainy shchodo sproshchennia umov vedennia biznesu (derehuliatsiia), 2015), separate passport offices of the State Migration Service of Ukraine and etc. that, on the one hand, make unimpaired operation of ASC more difficult but, on the other hand, lead to the development of governance activity. There are no doubts that the electronization processes in the “departmental offices” will lead to the establishment of “electronic office” and their obvious advantages will allow creating a basis in order to form and to develop IT infrastructure of “electronic office” and to solve problems of Ukrainian system of administrative services provision connected with fight against corruption; transparency of legislative process regulation of separate service provision and its payment; and proper state control over the justifiability and quality of services. 5. Advantages of the model of “electronic office” Moreover, due to the narrow area of expertise of personnel in the “departmental offices”, the level of advisory work and service rate in the specific process or procedure may be extremely high. The “departmental offices”, as a rule, have better technical and technological software and access to the registers that gives an opportunity to provide “quick services” (extracts, abstracts issue) immediately and, in some cases, to provide even completed documents. The model of “electronic office” against the background of models “departmental office” and “integrated office” is being characterized with the widest variety of advantages that makes possible to define it as a promising trend for the further development of administrative services provision system. Pursuant to the obtained data, a number of advantages of the model of “electronic office” cannot be contested by any of the abovementioned models, that is: – introduction of the integral IT infrastructure of the whole system of administrative services provision; – possibility of the electronic interaction of parties of services provision with all life spheres of the party of referral; – to possess current database organization and management (legislative and other legal acts and regulations); – reduction of expenses for the creation and operation of “integrated offices”; – possibility to develop the multinational provision of administrative services; – absence of problems connected with interoperability of sites of authorities of state governance; – possibility of application programmatic interface; – possibility to introduce efficient instruments to involve citizens and parties of referral to the processes of administration development over the system of administrative services provision. But, at nowadays’ development stage of “electronic office”, the most important factor is a necessity to define clearly state policy and its order. In particular, it is necessary to follow strictly the declared in Ukraine strategic approach of development policy of e-governance and introduction of ICT. 6. Conclusions The conducted analysis definitely shows advantages of the “electronic office” model of administrative services provision. A party of referral has a possibility not only to order and obtain different administrative services in electronic format but to interact with authorities of state governance on a distant basis. From the perspective of parties of services provision, an “electronic office” means a preservation of state financial assets as the creation of comfortable conditions for the reception of visitors in one “integrated office” requires considerable amounts of money, especially for the creation of the same conditions and territorial availability for several separate “departmental offices”. The “electronic office” model  – is a considerable improvement of services quality, operational efficiency during their provision, consistent saving of human resources and financial assets, complete exclusion of the corruption element, and the main advantage is a Baltic Journal of Economic Studies 117 Vol. 4, No. 1, 2018 possibility to involve parties of referral and citizens to take part in formation and development of state governance of the system of administrative services provision. A special attention should be paid to ICT during the governance over the system of administrative services provision. Nowadays, they have substantial advantages and drawbacks, but in view of the abovementioned data, we can confirm that they have more negative moments at the present point in time and, in fact, they have been developing spontaneously. Pursuant to our opinion, ICT in the process of governance will give an opportunity to the system of administrative services provision to operate properly under the following conditions: – when the provisions of the Ukrainian and international legislation in the area of administrative services provision will be coordinated; – the process of administrative services provision will be simplified and after that, it will be performed in electronic form; – after development and systematization of e-governance regulation in Ukraine in general. 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