Study On Impacting Factors And Controlling Ways Of Administrative Costs

Administrative cost is the important symbol of administrative efficiency and administrative management level. It is the consumption of social economical resources by government administration activities. Administrative cost, which runs through the total administrative management activities, is the basis and support for governmental agencies to manage and serve the society. On the conception and limitation of administrative cost, there are different opinions and elaborations in academic circles. In this article ,the author hold an opinion that the reasonable conception of administrative cost is the manual labours, financial and physical resources which invested by the government agencies in the process of providing public service and productions.The connotations of administrative cost include that the main bodies of administrative cost are administrative organs and staffs, the resources of administrative cost depend on financial allocation, the objects of administrative cost are the society and its public productions, the constitutions of administrative cost include generalized administrative cost and narrow-sense administrative cost, the investments of administrative cost have indirect relation with the benefits. This article analyses the constitutions of administrative cost in aspects of its usage, feasibility of being calculated directly, efficiency, occurrence process, decision-making process, shapes, etc. In situation that the budget is invariable, the less the funds applied to government agencies themselves are, the more the funds applied to the public service are, the higher the administrative efficiency is. On the contrary, the more the funds applied to government agencies themselves are, the less the funds applied to the public service are, the lower the administrative efficiency is.Over a long period of time, the planned economy system was implemented in our country; and the government in such a country was a"versatile"government which played the roles in any area. A"versatile"government means larger scale , more functions, more staffs and more administrative expenses. Therefore, it is of more realistic significances to establish low-cost government and to control the administrative cost in our country.At present, the features of administrative cost in our country include: extensive main bodies, fast increase, invalid and related administrative cost occupying fairly major proportions, and so on. The factors which influence our country's administrative cost mainly include: government scales, government functions inner management rules, supervision system attenuation, administrative ideas, administrative ways, administrative decision-makings, corruption, etc.In view of the above factors which impact administrative cost, several ways of controlling administrative cost are proposed in this article. Firstly, setting up organizations reasonablely, establishing limited governments; secondly, reforming systems of government finance management, establishing public finance systems; thirdly, normalizing systems of official business consumption, controlling inner administrative cost; forthly, pushing on electronic government administration, improving administrative efficiency; fifthly, establishing reasonable decision-making systems, improving decision-making level; sixthly, perfecting systems of appraising government staffs, introducing systems of appraising performances; seventhly, perfecting systems of supervision and restriction, strengthening anti-corruption.