Chapter 2 REVIEW OF RELATED LITERATURE AND STUDIES This chapter presents the review of related literature and studies

that provided background information in the formulation of the research problem and the conceptual framework of the study. RELATED LITERATURE Foreign From USAID usiness !lanning "##$% the reduction of &on'(evenue )ater

*&()+ remains as one of the ma,or challenges facing water supply and wastewater utilities throughout the world. -owever% it has been shown that proper delivery of the resource is a possibility and can be achieved. This is of concern locally as viability of the )ater and Sewerage Authority *)ASA+ hinges on the fact that its product ' water ' can be effectively and efficiently delivered to its customers *.fwat% "##/+. In Asian cities% non'revenue water *&()+ averages 0#1 of water production% but ranges from 21 to 341% posing as a deterrent to the recovery of production costs. (educing &() is a challenge% but it increases capacity and ensures a good return on investment *http5 66 www. adb.org6 water6 topics6non'revenue6default.asp+. .ther Asian cities need to determine whether real losses are maintained to mask the illegal use and sale of water. This could e7plain why a great percentage of Asia8s urban poor have yet to receive better water supply services *Draft &ational )ater (esources 9anagement !olicy% "##"+.

"/

"" In a regional meeting of the South :ast Asian )ater Utilities &etwork *S:A)U&+ sponsored by Asian Development ank *AD +% water utility managers and

utility association officials from Southeast Asia reali;ed the potential benefits of utilities network for the region. Since then% S:A)U& has become a strong regional% non'profit% and self'sustaining organi;ation focused on benchmarking% cost recovery% non'revenue water reduction% and human resources development. It helps its members to improve service delivery% attain operational and management efficiency% achieve financial viability% advocate sector reforms for improved policy environment

*http566www.adb.org6)ater6S:A)U&6default.asp% "##"+. According to Farley and Trow *"##0+% real losses consist of all physical losses up to the customer8s meter due to leaks% bursts and storage overflows. The key local factors influencing real losses are5 /+ number and average length of service connections% "+ length of mains% materials% and condition of infrastructure% 0+ soil6ground conditions and 2+ continuity of supply. Apparent losses% on the other hand% is due to meter inaccuracies *customer and production meters+ and unauthori;ed consumption *theft or illegal use+. These losses are predominantly related to meter inaccuracies and are therefore affected by the following *.fwat% "##/+5 < !roper si;ing < =alibration and testing% and> < (epair6replacement practices.

"0 The need to serve citi;ens better has become one of the ma,or preoccupations of public administration today and the government can no longer shoulder that responsibility alone *-umpreys% "##3+. In Tan;ania% social and human development needs have become comple7 and diverse and to address these comple7 and diverse needs% some form of cooperative effort is re?uired. @arious players need to be brought into the public service delivery process *Irish

to be able to contribute effectively to social and human development needs 9arketing Surveys% "##A+.

(osenbaum *"##3+% defines =ooperative !ublic Service Delivery *=!SD+ as the utili;ation by the public sector of civil society and or the private sector for the delivery of public goods and services. -e argues that throughout the past ?uarter% this model has increasingly been in use and it continues to assume wider application. Similarly% Berrard *"##/+% sees =!SD as an aspect of public'private partnership and defines =!S! as cooperative business ventures between the public and private sectors built on long'term contracts in which public services are delivered on the basis of clearly defined public needs. .n the other hand% =arrol and Steane *"###+% see =!SD as an instrument of moderni;ation and renewal for the state intervention% allowing public enterprises to adopt new organi;ational forms in order to establish different types of relationships with private sector organi;ations. :nsuring the security of the nations8 drinking water supplies poses a substantial challenge% partly because the number of water systems is very large and also because the

"2 responsibility for protecting drinking water safety is shared among federal% state and local governments and utilities *http566 www.au.af.mil 6au6awc6awcgate6crs6 rl0/"C2. pdf+. The private water sector in the city of !hnom !enh% =ambodia has different characteristics and the services vary from individuals who collect water and transport it for sale to small companies that provide piped water to individual households *Salter% "##0+. Dikewise% most of these services are nonetheless informal. The private water vendors pump water directly from the river or collect water from community pumps or open wells and supply untreated water to their clients *9cIntosh% "##0+. According to -einonen *"##4+% water is delivered to the customers by means of pipelines or transported by motorcycles or trucks and sold door'to'door. In addition% many families resell piped water from the !hnom !enh )ater Supply Authority *!!)SA+ from household taps to neighbors who do not have a connection. It is common for households in =ambodia to use many sources of water. :ven though households may have access to treated piped water% they often additionally purchase untreated water from door'to'door sellers% or collect rainwater for drinking and cooking. The informal water sellers do not purify their water and thus they provide untreated water *Salter% "##0> -einonen% "##4+. The problems with sanitation are severe% particularly in the slum communes where residents use public toilets% open pits that are shared by many families% or defecate into water% open fields% or plastic bags. In many cases the latrines were located too close to the water sources and thus decreased water ?uality *U(=% "##"'"##2> -einonen% "##4+.

"4 The demands on the supply of water increase every year. The challenge of today is to learn how to use water wisely. This challenge is greater now than ever before as industry and population continue to grow. The United States has always had a plentiful and easily available water supply. )ater has been cheap and unfortunately people have been careless and wasteful. They have dumped untreated sewage% farm chemicals% and other wastes into rivers and lakes% spoiling the water *.fficial website of the =ity of 9anchester% Iowa+. .n a daily basis% the people of the United States% directly and indirectly% use more than 0$# billion gallons% or appro7imately /%33$ gallons per person. In a typical western city% they use appro7imately 4## gallons per day per household% and an average of /4# gallons per household are used before breakfast. In Australia% the average daily use is $A3 gallons. In Breat ritain they use appro7imately /$4 gallons per day and in Swit;erland they only use AA gallons per person per day *http566 www. chilipepperapp. com6waterEconservationEfactsE.htm+. ased on the )ater Use :fficiency Act of "##/% the )ashington Departments of -ealth *D.-+ and :cology and the )ashington )ater Utilities =ouncil ,ointly developed procedures and guidelines for the implementation of water conservation programs. Interim guidelines were issued in "##/% and were replaced in "##2 by the document titled =onservation !lanning (e?uirements. :cology and D.- also developed a document titled )ater =onservation !lanning -andbook *"##/+. The handbook serves to assist public water systems in the development of conservation programs.

"3 Today it has become a truism that service ?uality is crucial to customer satisfaction% customer retention and profitability. Statements like FSatisfaction guaranteedG% FHuality is our number / priorityG% F uilt to lastG% and F&o surprise or money backG are evidences of service companies8 belief in ?uality as the bridge to future revenue. -owever% not all companies manage to deliver services of high ?uality and to the satisfaction of its customers. )hereas satisfaction with a service or service provider may be a strong incentive for customers to maintain or increase current retention rate% dissatisfaction with a service or service provider may be a strong incentive to e7it from the interaction *Andreassen% "###+. In fact (eichheld I Sasser *"###+% claim that for suppliers of services% customer defection may have a stronger impact on the bottom line than scale% market share% unit costs% and other factors usually associated with competitive advantage. A number of researchers have shown that a company8s culture has a close link to its effectiveness *Denison% "###> Jotter I -eskett% "##"> .uchi% "##/+. And in today8s competitive business environment% customer satisfaction is an increasingly important component of an effective organi;ation * erry I !arasuraman% "##"> Fornell% 9ithas% 9orgeson% I Jrishnan% "##3+. &onetheless% only a few empirical studies have e7amined the connection between the characteristics of an organi;ation8s work environment and this important aspect of organi;ational effectiveness *=onrad% rown% I -armon% "##A+. ecause itKs important that you form a !o"e #or$ing re!ation"hip #ith your !ient% u"tomer "er&i e i" &ery ne e""ary' Thompson *"##"+% cited selection tips that will make clients feel valued% wanted and loved. These are the following5

"A /. :ncourage Face'to'Face Dealings> ". (espond to 9essages !romptly I Jeep Lour =lients Informed> 0. e Friendly and Approachable>

2. -ave a =learly'Defined =ustomer Service !olicy> 4. Attention to Detail *also known as KThe Dittle &icetiesK+> 3. Anticipate Lour =lientKs &eeds I Bo .ut .f Lour )ay to -elp Them .ut> and A. -onor Lour !romises. A )ater District wishing to improve its profitability must undertake certain steps that can guarantee to provide the desired results. .ne of the things that the management staff must give important notice is the production and productivity of the water district as a whole. As has been known% to increase the profitability of a water district% certain things must be improved in the workplace. The !ortland )ater District *!)D+% in !ortland% 9aine% is a ?uasi'municipal special district providing ?uality water% wastewater services% and environmental services to // Breater !ortland communities. !)DKs /C# employees are dedicated to providing superior services to a population greater than /C#%###. Dike most local government agencies% !ortland )ater District *!)D+ in !ortland% 9aine% is trying to meet its rate' paying publicKs e7pectation of doing more with less. )ith a maturing workforce% !)D recogni;es the special importance of developing the management skills of younger employees so they are prepared to replace the e7perienced managers planning to retire in the coming years *Jamal% "##$+. =ustomer satisfaction is a key component of a successful and prosperous organi;ation. It has been linked to higher profit margins and greater employee

"$ satisfaction% customer retention and repeat purchases *Appiah'Adu I Singh% "##/> erry I !arasuraman% "##"> =onrad% Schneider I owen% "##4+. =ompetitors within similar industries with the same types of technology% pricing strategies% etc.% look increasingly to customer satisfaction to create a competitive advantage *Joch'Daabs% "##/+. .rgani;ations must consider customer satisfaction as a key leverage point to differentiate themselves from other organi;ations. In fact customer loyalty may be a Fstrategic mandateG in today8s service markets *Banesh% Arnold% I (eynolds% "###+. A number of researchers have shown that a company8s culture has a close link to its effectiveness *Denison% /CC#> Jotter I -eskett% /CC"> .uchi% /C$/+. And in today8s competitive business environment% customer satisfaction is an increasingly important component of an effective organi;ation * erry I !arasuraman% /CC"> Fornell% 9ithas% 9orgeson% I Jrishnan% "##3+. =ustomer satisfaction as an outcome has been predicted by an organi;ation8s service'orientation *Schneider% )hite% I !aul% "##$+ and a general .rgani;ational =limate% .rgani;ational =ulture and =ustomer Satisfaction construct comprised of five factors% cooperation6coordination% customer orientation% employee commitment% and managerial consistency *(ogg et al.% "##/+. An organi;ation8s social environment N whether it is called FcultureG or FclimateG is an important driver of customer satisfaction. For e7ample% organi;ational climate has been found to mediate the relationship between human resource practices and customer satisfaction% supporting .rgani;ational =ulture and =ustomer Satisfaction as a social rown% I -armon% "##0> Mones I Sasser% "##4>

"C conte7t model *Ferris et al.% "##$+ for predicting customer satisfaction *(ogg et al.% "##/+. According to Dowling *"##$+% corporate image is a construct similar to the construct of self'concept in psychology. oth terms refer to a set of thoughts and

feelings having reference to an ob,ect *e.g. a company or person+. =orporate image is believed to have the same characteristics as self'schema *9arkus% "##A+. It consists of cognitive generali;ation about the self and is derived from past e7periences. To most consumers schemas develop ' become richer or change' over time. Lo a! According to Davao =ity )ater District *D=)D+ !ublic (elations .fficer% :ditha 9on,e% @ice'!resident for 9indanao &ational Association of )ater District !(.s *&A)D'!(.+% D=)D ranked fourth among water utilities in the Asia'!acific region with the most successful effort in reducing the so'called &(). The !hilippine8s =ivil Service =ommission *=S=+ places premium on promoting morale% efficiency% integrity% responsiveness and courtesy in government service. It assumes a pivotal role in instituting bureaucratic reforms on the broad range of functions performed by government including that which is most viable to the ordinary Filipino N the provision of frontline services *!hilippine =onstitution% /C$A+. !ublic Service Delivery Audit6Assistance !rogram *!ASADA+ aims to improve public service delivery by systematically increasing the operational efficiency of government units by5

0# a+ creating a pool of !ASADA volunteers who will assess and monitor how government frontline services are carried out by simulating the e7periences of clients. b+ Identifying% documenting% commending and promoting best practices in public service delivery. c+ Assisting agencies in improving identified problem areas in frontline service delivery and d+ Involving civil society and the public in the bureaucracy8s continuing drive to improve government agencies. *http566www.csc.gov.ph6 cscweb6pasada flyer.pdf+ The Sanitation =ode of the !hilippines re?uires "4m distance from any sources of pollution to protect water sources used for drinking from contamination% and effluent standards and an environmental user fee system also serve to regulate the disposal of li?uid wastes to water bodies *http566www.wssinfo.org6pdf6M9!E#2Etables.pdf+. The &ational Sanitation Foundation *&SF+ *"##4+% has entered into a historic agreement with the !hilippine &ational Bovernment to use &SF standards for drinking water treatment units as the basis for all devices tested% certified and evaluated in the !hilippines. The agreement% which will allow &SF technical e7perts to work directly with the !hilippine ureau of -ealth Devices and Technology% Department of -ealth *D.-'

-DT+% is a key step that will lead to the development of !hilippine standards that raise the ?uality of drinking water for the consuming public.

0/ According to Tom ruursema *"##3+% Beneral 9anager% &SF Drinking )ater

Treatment Units =ertification !rogram% &SF is honored to have the opportunity to positively impact the future of public health and safety in the !hilippines *Breta -oulahan Aug /#% "##3 issue of Industry &ews http566www.nsf.org6+. After drafting its own water safety plan as re?uired by !hilippine -ealth Authorities% the 9etropolitan =ebu )ater District *9=)D+ recently conducted a training workshop on water safety plan at the &orthwinds -otel in =ebu =ity. The seminar was attended by 22 representatives from other water districts in the @isayas region and it tackled the !hilippine &ational Standards for Drinking )ater and water borne diseases *A?uarius 9aga;ine% "##4 issue+. 9=)D8s water safety plan is now being finali;ed for approval. The plan will ensure that 9=)D8s ma,or sources of water are protected from any threats. *=ebu Daily &ews% September /2% "##C issue+. )ater districts and private water service providers including water refilling stations nationwide are re?uired by health authorities to draft or adopt a water safety plan to protect public health% reduce endemic water borne disease and prevent its outbreak *Falconer% "##A+. =onservation measures are therefore aimed at minimi;ing if not avoiding adverse impacts brought about by problems of water supply% either in terms of ?uantity% ?uality , timing and distribution *Severo Ft. Saplaco and Dorningo 9. (amire;% Mournal of !hilippine Development "##"+. )ater conservation measures can be classified into three categories% namely5

0" /. )ater harvesting% collection and storage systems practice. To make water

available in the right ?uantity% ?uality% place and time have been a ma,or concern of man ever since. 9ethods% practices and te chni?ues to collect and store water have varied through the years. )hether indigenous or introduced% these practices have been observed to be useful in satisfying manKs needs. ". =ultural/management practices. )ater could be conserved through

cultural/agronomic or management practices. These practices include5 a+ mulching and crop selection% b+ strip cropping parallel to slopes% c+ drip irrigation d+ topography modification '' clearing the area and construction of small collection or diversion ditches to drain runoff water to storage tanks% and e+ roaded catchments. 0. =ombination of / and ". @. inghay *"##A+% i(entifie( three )*+ !e&e!" of u"tomer "ati"fa tion' ),+

Cu"tomer Di""ati"fa tion #hen the e-pe tation" are not met% )2+ Cu"tomer Sati"fa tion #hen the e-pe tation" are met an( )*+ Cu"tomer De!ight ome" #hen u"tomer." e-pe tation" are e- ee(e(' Davao =ity )ater District is in the process of improving and operating the city water supply system which has served as a model for other water districts in the country in the aspect of customer relations and customer service and always doing an e7tra mile to respond satisfactorily to the various needs and complaints of its concessionaires whoever and wherever they may be *http566 www. lwua.gov.ph6 wdEfeatures6wdE legaspi.htm+.

00 The Daraga )ater District *"##4+% has almost seven thousand service connections and their record shows that the number continues to grow even bigger because of sufficiency of supply. !olicy'wise% individual concessionaire has to apply for water service connection through a service agreement. The district will provide potable water and monthly payment of bills for every month of consumption will be made. The district is reciprocally bound to provide efficient service. Similarly% 9etro Iloilo )ater District serves a total of ""%C#" household which is considered as the lifeblood of the district. They see to it that concessionaires are properly attended to and taken cared of. !olicies are customer'friendly and all kinds of complaints are immediately acted upon wherein both solutions are seen to be beneficial to both parties *&ews Today% "##3+. :mployee management is the first concern in the government service if you are a personnel officer or human resource manager. :ffective management of employees allows you to accomplish their goals at work. :ffective employee management allows them to capitali;e on the strengths of other employees and their ability to contribute to the accomplishment of work. Successful employee management helps employee motivation% employee development% and employee retention. *About.com Buide to -uman (esources+. It is critical in the government agency to welcome a new employee. :mployee orientation or on'boarding process forms the foundation for a lasting% successful employment relationship. :ffective ongoing training and development% whether in the classroom or on'the',ob% ensures employee success in their current role and it guarantees that they have employees ready for their ne7t promotion or lateral move. Succession

02 planning for each position depends on training and development *http566humanresources. about.com6od6 managementandleadership6u6 manageEpeople. htmOs"+. :very person has different reasons for working. The reasons for working are as individual as the person. ut% people work because they obtain something that they need from work. The something obtained from work impacts morale% employee motivation% and the ?uality of life. To create positive employee motivation% treat employees as if they matter ' because employees matter. These ideas will help them fulfill what people want from work and create employee motivation. *http566human resources. about.com6 od6reward recognition6tp6recognition.htm+ RELATED STUDIES Foreign Dambert and -irner *"###+ define &on'(evenue )ater% as the difference between the System Input @olume% the volume of water delivered into the distribution network% and illed Authori;ed =onsumption% the volume of metered and6or unmetered water

taken by registered customers% the water supplier and others who are implicitly or e7plicitly authori;ed to do so by the water supplier for domestic% commercial and industrial purposes. It includes water e7ported. )ater loss is a problem for all water utilities. Typically% unaccounted for water *UF)+ now known as non'revenue water *&()+% is between /41 and 0#1 in the developed world but elsewhere it is more likely to be in the 0#1 to 3#1 range * ridges% "##2+.

04 (educing non'revenue water can significantly impact the financial performance of the utility in either of two ways. First% water is costly to produce. If consideration is given to the development of the e7traction facilities% any necessary water treatment% which re?uire constructed facilities% chemicals% power and labor% plus often significant electrical power for pumping. These must be recovered through water sales. If the operations are to be sustained% and for utilities that have high percentages of &()% the concessionaire ends up paying for the inefficiency through increased water tariffs * ridges% "##2+. Therefore% reducing &() reduces costs% and in many cases with significant electrical energy costs% this reduction can be dramatic. Secondly% if &() is the result of non'metered systems or systems with a high percentage of illegal% non'registered connections% then reducing &() will result in increased sales and therefore increased revenues from the utility * ridges% "##2+. In developed countries% the first effort to reduce non'revenue water *&()+ often involves the purchase of leak detection e?uipment. :7periences in Asia and other developing countries show% however% that it may be better and more realistic to go out and repair all visible leaksPof where there are usually plentyPand carefully scrutini;e and accurately meter large water consumers. enchmarking &() is also particularly

useful% as it enables utilities to compare themselves with others% or compare their individual performances at different periods *Dambert% "##/+. A case study by Felda =huping% !erlis in 9alaysia *"##A+% which involved the replacement of old pipes and old water meters and reduction of water pilferages as well as the rehabilitation and upgrading of water distribution system. In the &inth 9alaysia

03 !lan% the effort to reduce the &() is to be continued in order to improve the efficiency of water supply. In "##4% the South :ast Asian )ater Utilities &etwork concluded the first phase of a regional benchmarking program that included &() reduction as a key indicator. (educing &() is not technically difficult. It is% however% challenging in a governance sense. Illegal connections can only be eliminated when utilities have autonomy and discipline% and when they are accountable to regulators and the public. In addition% utility employees need genuine incentives to do their ,obs and replace the incentives they have made for themselves through illegal connections% false meter reading% and others *Thames% "##"+. In line with this global target% the priority actions of the 9editerranean Strategy for Sustainable Development *9SSD+ that was adopted in "##4 by the contracting parties to the arcelona =onvention were defined under the main ob,ective of integrated water

resources and demand management% comprising the strengthening of )ater Demand 9anagement *)D9+ policies in order to stabili;e water demand by improving water use efficiency *i.e. reducing losses and wasteful use+ as a key target * lue !lan% "##$+. &() reduction is a common element of past pro,ects funded by multi' and bilateral organi;ations% but they have often not delivered the desired result because reducing &() goes to the heart of many of the failings of developing'country water utilities like the !hilippines and to the lack of good governance and an enabling environment for efficient service delivery to the population. These include among other things+ *a+ the often significant opportunities for staff and managers to achieve personal gain through fraudulent practices *illegal connections

0A and corrupt meter readings+% *b+ politicians and utility managers who *for many reasons+ would rather cut a tape opening a new treatment plant than dig up roads to provide more water for customers% and *c+ lack of fle7ibility of public sector personnel systems that limit the possibility of introducing the key ingredient of successful &() reductions5 that of performance based incentive schemes for managers and staff. * ill Jingdom% (oland Diemberger% !hilippe 9arin% December "##3+. !arts of government are still using outdated and inefficient approaches to delivering public services that hamper innovation and fail service users and the ta7payer. =ombined with the urgent need to constrain government spending to restore public finances% this means that continuing business as usual is not an option *Anderson% "##C+. .. rilhante "##0% puts it clear that the deliverance of infrastructure services

should be done through institutions that have the capacity to provide services effectively. In "##A% &,unwa in his study revealed that cooperative public service delivery in Tan;ania is contributing to social and human development. The need to strengthen the delivery of public goods and services for citi;ens has% in recent decades% assumed great significance both in developed and developing countries *Jarim% "##0+. This development is very much linked to the shift in public administration> whereby% the emphasis has now moved beyond the pure &ew !ublic 9anagement *&!9+ criteria of efficiency% value for money% and managing for results% to the public value model which elevates the &!9 notion of citi;ens as consumers to citi;ens with broad social concerns and takes into account factors such as citi;en voice% community building% e?uity and accountability *-efet; I )arner% "##2% Denhardt I Denhardt% "###+.

0$ The government needs to adopt a more strategic approach to commissioning public services. Services should not be designed or delivered on the basis of administrative and geographical boundaries% but rather commissioned collaboratively with the service user in mind. =entral support and co'ordination for key public service partnerships would bolster this move towards intelligent service design and provide an important source of accountability for ta7payers *Anderson% "##C+. 9ore recently% a trend to e7plore new models of collaboration for public service delivery% particularly public' private partnerships has emerged in both industriali;ed and developing countries *-eeks% "##C+. =learly% within this conte7t of diversification of service delivery methods% governments are moved to rethink their way of doing business> they are seeking out ways of being innovative% effective and efficient to provide better services to their FclienteleG within many areas of activity *Dobell and ernier% "##A+. In matters of public service delivery% a Bovernment Statement on Docal Bovernment (eform * Muly% /CC4+ undertook to promote the local empowerment of people by renewing the system of local government in order to return the greatest amounts of opportunities to an effective and accountable local government system *Fleming "##3+. In its response to the Interim (eport *"##4+% the Devolution =ommission established as part of this initiative% the Bovernment stated its belief Qthat effective and accountable local government8 is essential for the effective delivery of local public services and to enhance democratic accountability.

0C The Bovernment therefore considers that the essential re?uirement for local government renewal is an enhancement of the role of the elected members of local authorities in setting policy for local services and giving political leadership to socio' economic development at local level *.8Donnell% "##3+. During the mid'/CC#s% a series of initiatives were made which had the potential for introducing significant change in the current system of local government% with important implications for the services they deliver to the public *-umpreys% "##3+. The introduction of change paved an avenue for the adoption of various management practices under the public utility agencies. In the process% management practices along non'revenue water% public service delivery% public health and safety% conservation of water% customer satisfaction and social image of the human resource varies from one agency to another. For instance% on the management practice of health and safety% protecting and improving the health and well being of people% communities and the nation is at the heart of public health. There are many things that contribute to the accomplishing of efforts% with science and public health research heading the list. The best possible science to protect the health and safety of Americans and people around the world is a hallmark of public health *)illiams% "##3+. Today% the challenges of our increasingly comple7 and interdependent world re?uire new approaches to generating and disseminating the knowledge and innovations needed to promote well'being and improve health. As a step toward fostering strategic investments in public health research and science% the =enters for Disease =ontrol and !revention% in consultation with the public and a wide range of partners% has developed

2# this comprehensive guide% Advancing the &ation8s -ealth5 A Buide to !ublic -ealth (esearch &eeds% "##3'"#/4 *!utnam% "##3+. As per &ational Sample Survey on drinking water and sanitation in India% it is estimated that around A31 of rural households are dependent on underground source of water like wells% tube wells% or hand pumps% whereas about 0/1 of house holds have the same within their own premises. Same survey also highlights that even today only /A.41 of rural population are using Datrines% whereas others still prefer open defecation in their ad,oining areas *Agrawal% "##"+. .pen defecation is one of the ma,or reasons of water pollution and water borne diseases. It is estimated that A#1 water available is polluted and estimated 0 million work days are lost due to water related diseases. This scenario is true for most of the South Asian countries. -owever% e7perience will show that% whenever focused attention has been made morbidity and mortality due to killer diseases like cholera% diarrhea etc declined *Agrawal% "##"+. In Mapan% great damage to fisheries had been observed as a result of wastewater from paper mills being discharged into the :do (iver in Tokyo. The problem also began to affect people8s health% as in the case of the 9inamata incident in the late /C4#8s% when mercury from the chemical industry caused a previously unknown disease among people who ingested the waste'contaminated fishes caught in the area around the factory *9c9ichael% "##A+. The United &ations =hildren8s Fund *U&I=:F+ estimates that at least 3## million people% 2#1 of the present urban population of less developed countries live in housing that is so crowded% of such poor ?uality and with such inade?uate provision for water%

2/ sanitation% drainage and rubbish collection that their lives and their health are continually at risk *Jevin Taylor and Monathan !arkinson "###+. This is more evident in developing countries and Sub'Saharan Africa as the worst hit area. In February "##0% the )hite -ouse issued the &ational Strategy for the !hysical !rotection of =ritical Infrastructure and Jey Assets% which designates the :nvironmental !rotection Agency *:!A+ as the lead agency for protecting critical water infrastructure. *Jingston% "##0+. During the Fiscal Lear "##"% emergency supplemental appropriation provided funds for research and development activities related to homeland security. :!A has used some of these resources to evaluate the performance of drinking water treatment systems for their ability to remove and inactivate biological and chemical warfare agents *http566www.au.af.mil6au6awc6awcgate6crs6rl0/"C2.pdf+. In Mune "##"% the !resident of the United States signed into law the !ublic -ealth Security and ioterrorism !reparedness and (esponse Act of "##". The -ouse'passed

version of the bill contained drinking water security provisions% and the final act e7panded on these provisions% including elements of other Senate bills on water security. )ater ?uality testing is an important ad,unct to any water purification scheme as it enables the proponent to confirm that the water produced complies with the relevant standards that are set by various agencies *9c9ichael% "##A+. Jhan and (oser *"##A+% concluded that despite more than forty years e7perience% no clear deleterious health effects from purified water schemes have been observed. &or was there a clear pattern of risk from the &amibia study.

2" In =arey% &orth =arolina% their water conservation consists of eight elements5 public education% landscape and irrigation codes% toilet flapper rebates% residential audits% conservation rate structure% new homes points program% landscape water budget% and a water reclamation facility *http566www. epa.gov 6watersense6 docs6 utility

conservationE4#$.pdf+. )ithin the conte7t of diversification of service delivery methods% governments are moved to rethink their way of doing business> they are seeking out ways of being innovative% effective and efficient to provide better services to their FclienteleG within many areas of activity *Dobell and ernier% /CCA+. !ennsylvania has many water resources. In an average year% about 02 trillion gallons of precipitation falls on the state. 9uch of this water flows through 43%### miles of surface streams and thousands of ponds% lakes% and reservoirs. At any given moment% appro7imately 2A trillion gallons of water are stored beneath the surface as groundwater. It8s easy to see why !ennsylvania is referred to as a Fwater'richG state. As a result% it has become accustomed to ade?uate supplies for all uses. )ater is never more than a few steps away. !eople only need to open a faucet% press a button% or turn a cap to ?uench their thirst *!ennsylvania State University% "##$+. In a study by ouman and Tuong *"##/+% in agriculture% the situation is

aggravated by the dramatically increasing costs for irrigation development over the past decades. ecause of the combined increasing demand for food with increasing scarcity of water% rice producers face three ma,or challenges5 */+ to save water> *"+ to increase productivity> and *0+ to produce more rice with less water.

20 The increasing scarcity of water means that the costs of its use and resource development are increasing dramatically *!ostel "##/% (osegrant "##/+. Therefore% researchers have been looking for ways to decrease water use in rice production and increase its use efficiency. During the past decades% research has been done at the field level and various technologies have been proposed to save water and increase its productivity while maintaining high yields *Sandhu et al. /CCC 9ishra et al. "###% Di "##/+. According to 9addaus% *"##0+% water conservation initiatives are more likely to succeed if they are socially acceptable. 9easuring social acceptability% an e7ercise in anticipating public response to a potential water conservation measure% may be measured with a two'part survey techni?ue. First% conduct interviews with community leaders to assess the Second% assess the response to selected specific

political and social atmosphere.

measures via a ?uestionnaire mailed to a random sample of water customers. .n the aspect of water conservation and other management practices% a study conducted in the University of !ennsylvania *"##"+ household water and energy

conservation are inescapably linked5 by saving water they preserve the energy needed to get it into their homes and treat it. y reducing the use of hot water they will save even more5 the energy consumed in heating water ranks second behind that used for home heating and cooling. :nergy conservation also helps alleviate ma,or environmental problems such as global warming and acid rain. According to De 9oigne *"##0+% old and poorly constructed pipelines% inade?uate corrosion protection% poorly maintained valves and mechanical damage are ma,or factors

22 contributing to leaks. In addition to loss of water% water leaks reduce pressure in the supply system. =ornin% Mr. et al. *"###+ constructed an integrated causal model for describing the relationships between service ?uality% service sacrifice% service value% customer satisfaction and behavioral intentions. -owever% many similar services e7ist for passengers to choose from% and if passengers wish to change to other scheduled coach service carriers% they need to collect information about other services% and pay e7tra costs for using or adapting to new services. These kinds of switching barrier factors also affect behavioral intentions% but have received little attention in the literature. Service ?uality is a widely studied% and debated construct. Studies on service ?uality by !R *!arasuraman% Reithaml and erry% "##4% "##$+ significantly has

influence on the marketing research literature and industry% and continue to do so. !R defines service ?uality as the comparison results of both e7pected and

perceived service. This study adopts Men and -u8s *"##/+ service ?uality scale of the public transportation system% which applies a three'stage scale and dimension simplification procedure. Following the definition of -eskett et al. *"###+ and Reithaml *"##$+% service sacrifice is defined as what is given up or sacrificed to ac?uire a service. This sacrifice can include perceived monetary and non'monetary price *Reithaml% "##$> Dodds et al.% "##/+. The measurement items% both monetary and non'monetary% associated with the ac?uisition and use of the coach service% were used as indicators of the service sacrifice construct *Reithaml% "##$+.

24 9onetary price was assessed by a direct measure of the money that passengers spend to ac?uire a coach service. The place and the role of the citi;en6customer have become of very high importance in these changes and reforms. 9anaging customer satisfaction is therefore indispensable for public organi;ations in order to see if they are doing the right things and if they are doing things right. In being a public service this is not always the easiest thing to do% due to the nature of the FclientG on the one hand and due to the nature of public services on the other hand *:uropian !ublic Administration &etwork% "##$+. 9ost countries in sub'Saharan Africa have clearly identified the human resource challenges they face% and many have developed a human resource strategy for addressing the challenges. !rogress in achieving the goals of these strategies depends not only on increasing resources but on managers who are able to lead and manage teams to transform human resource strategies% plans% and recommendations into a comprehensive% harmoni;ed approach that is effectively implemented and sustained *9wita% "##C+. 9issing at all levels of the health system is a critical mass of proactive% respected% and professionally trained human resource managers and specialists who have the authority and e7pertise to command attention% and champion a comprehensive response *9anagement Sciences for -ealth% "##$+. !eople have not been conditioned or encouraged to treat people inside of their own organi;ation as well as they treat customers outside. -owever% no one works alone. )ithout the support and cooperation of internal people% it is difficult to satisfy those we commonly view as FrealG customers *those who buy products or services+. Satisfying

23 internal people provides a vital link in the chain that leads to satisfying customers outside of the organi;ation *Satisfying =ustomers 9odule% "##C+. (esearch aimed at ?uantifying the links between employee satisfaction and customer satisfaction% productivity and financial performance which began in "### with en,amin Schneider8s survey of satisfaction levels of bank customers and employees. 9any researches have found that customer perceptions of service ?uality% service value% and satisfaction directly and significantly influence consumer purchasing decisions *Sheth et al.% "##/> )oodruff et al.% "##0> !R % "##3> Brewal et al.% "##$> .h% "##C> =ornin et al.% "###+. =onse?uently% if companies wish to gain loyal customers% or customers who are willing to recommend their service to others% they need to offer good ?uality% high value and satisfactory service. !revious studies suggest that interactions between consumer and service employees can lead to personal relationships that bind customers and service providers * eatty et al.% "##3> Mones et al.% "###+. esides% the likelihood of passengers using a

particular coach service should decrease as the perceived costs associated with that service increased. Switching barriers used in previous studies indicate the difficulty in transferring production or special technology at manufacturing industry. In the service industry% previous studies focused on switching cost% which includes the difficulties customers have in gathering information about substitutes% service provider substitutability% and perceived risk in selecting new providers *!orter% "##4> -eide and Beorge% "##$> 9urray% "##/+.

2A The indicators of behavioral intentions are the final set of items included in the analysis. According to the conceptual model developed by Reithaml et al. *"##3+% behavioral intentions can be a good predictor of company financial conse?uences. These scholars also suggest that favorable behavioral intentions associated with a service provider to get customers to comment positively on them% recommend them to other consumers% remain loyal% spend more with the company% and pay a premium for their service. In FThe Service !rofit =hainG *"##A+% the authors proposed a model that workforce capability% satisfaction% and loyalty would lead to customer8s perceptions of value. @alue perception would lead to customer satisfaction and loyalty% which would lead to profits and growth. The study found that employees8 perceptions of their

capabilities% satisfaction and length of service were correlated with customer satisfaction. A )atson )yatt )orldwide study found that the practice of maintaining a collegial% fle7ible workplace is associated with the second'largest increase in shareholder value *nine percent+% suggesting that employee satisfaction is directly related to financial gain. )hile it is possible that employees en,oy working at these organi;ations because they are successful% the )atson )yatt )orldwide -uman =apital Inde7 study suggests that effective human resources practices lead to positive financial outcomes more often than positive financial outcomes lead to good practices *:pan% "##$+. The issue of causationPdid the increases in employee satisfaction and caused the increase in customer satisfaction% productivity or profitability% or vice versaPis not often addressed in research. -owever% in "##/% a study published in !ersonnel !sychology e7amined whether positive employee behaviors and attitudes influence business

2$ outcomes or if the opposite% that positive business outcomes influence employee behavior% is true. Study findings include the following *Sanderson% "##/+5 < The study broke down employee attitudes and satisfaction into five measurable employee behaviors5 conscientiousness% altruism% civic virtue% sportsmanship% and courtesy. The study measured participants in the five categories% reviewed turnover rates within the participant population% and compared this data with the organi;ations8 financial performance for the following year. < The findings support the idea that employee satisfaction% behavior% and turnover predict the following year8s profitability% and that these aspects have an even stronger correlation with customer satisfaction. !rice )aterhouse =oopers reported in April of "##" that 2A percent of surveyed e7ecutives from multinational companies cite employee satisfaction and decreased turnover as ma,or contributors to long'term shareholder return *9oriarty% "###+. In their efforts to study the links between employee satisfaction% customer satisfaction% productivity% and financial performance% other studies conducted by companies indicated the following * luestein% "###+5 < Unhappy employees are less productive and more likely to have higher absence rates> < Satisfied employees are more productive% innovative% and loyal> < Increases in ,ob satisfaction lead to increases in employee morale% which lead to increased employee productivity> and < :mployee satisfaction leads to customer retention. )alton *"###+% however% advanced the argument that human resource practices are integral to the kind of Shigh commitment managementS necessary to promote

2C organi;ational effectiveness for modern volatile and increasingly competitive economic conditions. Similarly% DawlerKs *"##/+% notion of Shigh involvement managementS emphasi;es employee empowerment and development as the key to organi;ational performance% and these are integral to subse?uent notions of Shigh'performance work practicesS. According to ecker I -uselid% *"##3+> =ombs% Diu% -all% I Jetchen% *"##3+%

the emphasis is placed on the importance of both developing human capital and ensuring that the environment is right for employees to reap the benefits of this% and particularly that they are provided with sufficient ,ob discretion and a supportive team environment. This has led to the notion of Strategic -uman (esources 9anagement *S-(9+ that builds on the foundations in two ways. First% it focuses on the impact of implementing such practices on organi;ational rather than individual performance% and second% it emphasi;es the synergistic link between practices so that the impact of each on organi;ational performance is enhanced when others are present *=hapagain% "##2+. A number of researchers have shown that a company8s culture has a close link to its effectiveness *Denison% "###> Jotter I -eskett% "##"> .uchi% "##/+. And in today8s competitive business environment% customer satisfaction is an increasingly important component of an effective organi;ation * erry I !arasuraman% "##"> Fornell% 9ithas% 9orgeson% I Jrishnan% "##3+. &onetheless% only a few empirical studies have e7amined the connection between the characteristics of an organi;ation8s work environment and this important aspect of organi;ational effectiveness *e.g.% =onrad% rown% I -armon% "##A+.

4# &onetheless% only a few empirical studies have e7amined the connection between the characteristics of an organi;ation8s work environment and this important aspect of organi;ational effectiveness *=onrad% rown% I -armon% /CCA+. Thus% the current study presents a test of the impact that four broad characteristics of organi;ational culture have on customer satisfaction. The relationship using samples of business units from two companies in different industries were tested. This focus on broad characteristics holds the promise that efforts to improve customer satisfaction can go hand'in'hand with efforts to improve more general aspects of organi;ational functioning% and do not have to come at the e7pense of innovation% efficiency% or bottom' line performance * enko% "##/> &unes% I Driggs% "##3> @oss I @oss% "###+. Finally% previous studies suggest that interactions between consumer and service employees can lead to personal relationships that bind customers and service providers * eatty et al.% "###> Mones et al.% "##3+. Andreassen and Dindestad in their studies found that corporate image played an active role in the formation of customer loyalty among e7isting customers *Andreassen I Dindestad% "##$+. In another study% =onrad et al. *"##A+% investigated the relationship between e7ecutives8 reports of the cultural FtypeG of their company and how much customer' focused activities they engaged in. :7ecutives who said that their company was best described as a FclanG or an FadhocracyG *vs. a FmarketG or a FhierarchyG+ reported the most customer'focused activities.

4/ Lo a! )ater is considered safe to drink if it meets all of the standards for drinking water set in the !hilippine &ational Standards for Drinking )ater. If your tap water does not meet any one of the standards% your water supplier must notify all of its customers of the problem *http566www.nsf.org6+. The 9etropolitan )aterworks and Sewerage System8s inability to provide water to nearby 2#1 of its services area% the widespread water rationing in many parts of 9etro 9anila% and the much higher water charges for industrial and commercial establishments and the private e7traction of groundwater resources has grown rapidly. About 3#1 of industrial establishments rely solely on their own tubewells *MI=A "##"+. As early as "##$% groundwater was reported to account for about 2#1 of water supply and that rate is e7pected to be currently higher. )ith the unregulated and

essentially free of use of groundwater% e7traction rate greatly e7ceeds the natural recharge% lowering the groundwater table and causing the progressive sali;ination of the a?uifer% particularly in coastal areas *9onasinghe "###> MI=A "##/% Deongson et al. "##0> (oca "##0+. The study of A. . Station in rohi *"##/+ on Safety 9anagement !ractices of Basoline enguet% although in another area% revolved

aguio =ity and Da Trinidad%

around the working environment which affects the common safety mechanism% the e7tent of common safety mechanisms practiced% safety practices to minimi;e accidents% problems faced by the management and accident records. It is recommended that

common safety mechanisms should be observed strictly% periodic general seminars should be conducted% owner'managers should e7ercise to implement safety practices.

4" In the !hilippines% some 3/1 of the 0.2 million hectares of rice land is under irrigation% with the ma,ority of the production coming from the rice bowl in =entral Du;on *International (ice (esearch Institute "###+. Irrigation is provided by gravity systems on shallow and deep tubewells. -owever% the availability of water for irrigation has declined in the last decade*s+. )ater from the Angat reservoir in ulacan !rovince is increasingly diverted toward the Breater 9anila Area *!ingali et al. "###+. Similarly% water in the Agno (iver Irrigation System in !angasinan !rovince is polluted with sediments and chemicals from mining activities upstream *=astaTeda and huiyan "###+. As recorded% many irrigation systems were destroyed and clogged by the earth?uakes of /CC# and the 9ount !inatubo eruption in /CC/ *&ational Irrigation Administration "###+. 9. =astro *"##4+ revealed that the impact of customer satisfaction would increase the awareness of customers regarding the occurrence of drinking water ?uality problems and common water'borne diseases. Along management% the study of =. =ordero *"##"+ assessed the level of implementation of the Financial 9anagement System of the Divine )ord =olleges in Urdaneta% @igan% angued% and Daoag in terms of the Beneral !rocedural Aspects% the

=ontrol System% and the Financial (eporting Attributes. Specifically% the study was directed to determine the following5

40 a.+ the demographic profile of the four Divine )ord =olleges in &orthern Du;on in terms of the number of personnel% number of enrollees and the number of courses offered> b.+ the level of implementation of the Financial 9anagement System8s Beneral !rocedural Aspect% =ontrol System and Financial (eporting> c.+ if there are significant differences in the level of implementation of the financial system of the four campuses along the three components> d.+ if there are significant relationships in the profile of the Divine )ord =olleges and the level of implementation of their Financial 9anagement System> e.+ the degree of seriousness of the problems encountered in the implementation of the Financial 9anagement System> and f.+ if there are significant differences in the problems encountered in the implementation of the Financial 9anagement Systems of the Divine )ord =olleges in &orthern Du;on. 9. Bamboa *"##0+ conducted a study on the Status and !rospect of the Tarlac =ity )ater District. It focused on the administrative and financial management

achievements and other accomplishments of the Tarlac =ity )ater District during the period /CCC'"##0. !rofitability and growth served as the economic indicators of the study. In the !hilippines% problems result from the use of inappropriate technology. They may also be due to poor operation and maintenance and the fact that the facilities provided are insufficient to meet the needs of the population that they are intended to serve *A?uarius 9aga;ine% "##A issue+.

42 9etro =ebu )ater District *"##0+ serviced only twenty three percent *"01+ of the total households and a very small portion of industrial and commercial sectors. The factors identified by the water utility to ,ustify its failure to provide water in certain areas of the city include the following5 */+ no defined access roads where pipes can be laid out> *"+ low water supply due to scarcity of sources> *0+ losses incurred in distribution which result in a low return on investment> and *2+ lack of funds for e7pansion% most especially in areas situated in elevations higher than the service reservoir. Domestic water systems and sanitary sewers are two *"+ of the most basic and essential elements of local utility system% which% with a few e7ceptions% do not e7ist in provincial areas in the !hilippines *A?uarius 9aga;ine% "##2 issue+. :7isting domestic water utilities are not meeting the needs of the communities they serve> water ?uality is unsatisfactory% pressure is inade?uate% and reliability of service is poor. *Dinglasan% "##A+. Despite a series of active efforts in the water sector% there seems to be a continuing momentum in the degradation of the country8s dwindling water resources. Although this has been given priority attention by the Bovernment% and despite the substantial progress achieved in the sector% a significant portion of the country8s urban and rural population still needs to be served by the public water supply *D)UA')D (evised !rimer "##4+. In fact% many persons receive no piped water service whatsoever

44 Docal water utilities are locally'controlled and managed but is being supported by the national level in the area of technical advisory and consultancy services and financing. In the Docal )ater Districts of !angasinan% it is interesting to undertake a study about the management practices with the involvement of some indicators because of the recurrence of management problems both internal and e7ternal affecting the day to day operation of providing potable water to the franchise area. :ven the customer

satisfaction is affected in the day to day operations. This is precisely the reason why the researcher was interested to pursue this study. Synthe"i" of Re!ate( Literature an( Stu(ie" The case study of Felda =huping% !erlis in 9alaysia identified activities in the reduction of non'revenue water. &,unwa% Jarim% -efet; I )arner% Denhardt I Denhardt% have stressed out the importance of public service delivery which is related to the improvement of public service delivery in the government service. The studies of rohi% !ingali% =astaTeda and huiyan focused on the conservation of water for rice production in the !hilippines. 9. =astro and rohi8s study were concerned about the public health and safety of its clients. Thompson and inghay identified the importance of forming a close working

relationship with clients and the levels of customer satisfaction which is very much needed in keeping customers.

43 The study of Bamboa and =ordero which focused on the administrative and financial management of Tarlac =ity )ater District and Divine )ord =olleges are related to the present study on the fact that both dealt with the social image of the human resource. The related studies presented have a positive effect on the management practices implemented in the operation of water management wherein customer satisfaction rating was determined. Theoreti a! Frame#or$ The Deming cycle *)alton and :dwards Deming% /C$3+% or !lan Do Study and Act *!DSA+ cycle% is a continuous ?uality improvement model consisting of a logical se?uence of four repetitive steps for continuous improvement and learning5 !lan% Do% Study *=heck+ and Act. The !D=A cycle is also known as the Deming =ycle% or as the Deming )heel or as the =ontinuous Improvement Spiral. It originated in the /C"#s with the eminent statistics e7pert% 9r. )alter A. Shewhart% who introduced the concept of !DA&% D. and S::. The late Total Huality 9anagement *TH9+ guru and renowned statistician% ). :dwards Deming modified the Shewhart cycle as5 !DA&% D.% STUDL% and A=T. Along with the other well'known American ?uality guru'M.9. Muran% Deming went to Mapan as part of the occupation forces of the allies after )orld )ar II. Deming taught a lot of Huality Improvement methods to the Mapanese% including the usage of statistics and the !DA&% D.% STUDL% A=T cycle. The management practices of local water administrators in !angasinan do not follow any theory or model for that matter because in the day to day operation of the agency% the !DSA cycle is more appropriate to follow since the daily activities would be

4A more on the technical e7pertise of the personnel on field. The local water administrators would rather plan ahead for change% analy;e and predict the results% do or e7ecute the plan% taking small steps in controlled circumstances% study or check the results and act or take action to standardi;e or improve the process. Con eptua! Frame#or$ )ater Districts are committed to anticipate and respond to the needs of the concessionaires and create a climate of service% trust% cooperation and commitment. =oncessionaires8 perception of good water services promotes willingness to pay for delivered service. )hile it is true that the strength of the )ater districts lies on its concessionaires who have a vital role to play% they can be a channel which will provide a much fuller participation and involvement in its programs and pro,ects. Figure / shows the conceptual paradigm of the study which is in accordance with the input'process'output model. In Figure /% input includes the profile of the

respondents% the process included the management practices implemented by the water districts employees in !angasinan as well as the customer satisfaction rating along the service deliverables. The output included the problems encountered and the

recommended solutions to the identified problems% and finally% the presentation of the action plan of the researcher.