Cost reduction in Management and Maintenance System of Municipalities

Municipalities as public organizations have a vast relationship with citizens، engaging in many types of activities in different fields. The wide range of activities and responsibilities constructs such a large organizational chart that requires a proper planning and the strong supervision in order to prevent parallel work، higher productivity and reduction of the organizational costs. Municipalities should act upon cost reduction، the consideration of intelligent management and public participation for cost reduction so as to facilitate their development and maintenance. There are different ways to reduce the municipalities cost. However، according to the planning principals، before any procedures، we have to formulate the phases for reducing the costs، like understanding the condition of the organization، current situational analysis، and proposing a cost reduction schedule. Having this methodical outlook، we could analyze all the divisions and activities of the municipality. Then، it is possible to reconstitute each division and activity according to the principle of organizational cost reduction. The result would be an organization that has minimum parallel or duplicate work، much better usage of sources and the tremendous reduction of the overall organization costs. In this article which is descriptive-review، dimensions and different conventional methods regarding the reduction of the organizational costs and methods that are in agreement with specific situation of municipality have been identified. For the final part، there is an example of the mentioned methods for reducing the organizational costs in Tehran Municipality.