Part 1 Public vs Private Management

What is Public Management

Geral Management:

the organization and direction of resources to achieve a desired result.

Public Managers:

managers of traditional government organizations

Private Managers

managers of private business

ISCPMA Definition

Mushkin Definition

Policy Management

the identification of needs, analysis of options, selection of programs, and allocation of resources on a jurisdiction-wide basis.

Resource Management

the establishment of basic administrative support systems, such as budgeting, financial management, procurement and supply, and personnel management

Program Management

the implementation of policy or daily operation of agencies carrying out policy along functional lines (educational, law enforcement, etc).

List of Public Management Elements

Personnel management (other than work force planning and collective bargaining and labor management relations)

Work force planning

Collective bargaining and labor management relations

Productivity and performance measurement

Organization/reorganization

Financial management (including the management of itergovernmental relations

Evaluation research and program and management audit

Similarities between Public and Private Management

Gulick - POSDCORB

Planning

Organizing

Staffing

Directing

Coordinating

Reporting

Budgeting

Functions of General Management

Strategy

Establishing Objectives and Priorities for the organization

Devising operational plans to achieve these objectives

Managing Internal Components

Organizing and staffing: establishes structure and procedures; in staffing he tries to fit the right persons in the jey jobs.

Directing Personnel and the Personnel Management System:

Controlling Performance: info systems for decision making

Managing External Constituecies

Dealing with External Units: within organization

Dealing with Independent Organizations: outside organization

Dialing with the Press and Public

Differences Between Public and Private Management

Three Orthogonal Lists of Differences

1. Time Perspective

Public: Short-time horizons; political oriented

Private: longer time perspective, market, technology, investment oriented

2. Duration

Public: < 18 months, avoid training sucessors (can become an adversary)

Private: longer, train sucessors

3. Measurement of Performance

Public: no standard

Private: financial returns, market share, etc

4. Personnel Constraints

Public: 2 layers of management officials; at times hostile to one another, under control of staff

Private: higher authority, higher freedom, no contrains

5. Equity and Efficicency

Public: equity driven

Private: efficicency and competition; performance driven

6. Processes

Public: exposed to public scrutiny, more open

Private: more private, internal process, less exposed to the public

7. Role of Press and Media

Public: must contend regularly

Private: less often reported on the press, press got smaller impact

8. Persuasion and Direction

9. Legislative and Judicial Impact

10. Bottom Line

Public: mediate decisions, seeks coalition to survive, several superios

Private: hierarchy, little risk of contradiction, 1 higher autority

Public: close scrutiny ny legislative oversight groups or even judicial orders, uncommom to private business; Constrains executive and administrative freedom to act

Private: no mention

Public: rarely have clear bottom line

Private: profit, market performance, and survival.

President vs CEO

  1. Time-Horizon

P: 4 years, 3rd and 4th on reelection

CEO: > 10 years

  1. Authority over the Enterprise

P: shared with congress

CEO: Strive to stay by making changes while drive the board to keep his job.

  1. Career-System

P: no knowledge of associaes, no environment of people creation

CEO: true career system, knowledge of a field of associates, you build your "team" for managing companies

  1. Media Relations

P: routinely on display, there is a needs exachange president <-> media

CEO: represents the firm

  1. Performance Measurement

P: general public is the judge

CEO: judged by profitability

  1. Implementation

P: ill-placed, ill-equiped to both monitor issues and apply regulations

CEO: set strategy + course of policy + oversee results

Fundamental constitutional difference

Private: the functions of general management are centralized in a single individual CEO

Governemnt: general management is constitutionally spread among competing institutions

Chapter 4: EPA vs American Motos

When talking strategy, Private CEO was the main actor, devising, implementing and executing. In Public, the president had to follow orders of the legislative on what to do, but still devising strategies to reach what was defined.

Table 2 - Pag 5

Summary of literature on Differences Betweeen Public and Private Organizations: Main Points of Consensus

Chapter 5. Implications for Reseacrh on Public Management

6 Lessons for Reasearch on Public Management

4 Strategies for the development of public management