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Part 1 Public vs Private Management (Differences Between Public and…
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
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).
Mushkin Definition
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
Public:
mediate decisions, seeks coalition to survive, several superios
Private:
hierarchy, little risk of contradiction, 1 higher autority
9. Legislative and Judicial Impact
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
10. Bottom Line
Public:
rarely have clear bottom line
Private:
profit, market performance, and survival.
President vs CEO
Time-Horizon
P:
4 years, 3rd and 4th on reelection
CEO:
> 10 years
Authority over the Enterprise
P:
shared with congress
CEO:
Strive to stay by making changes while drive the board to keep his job.
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
Media Relations
P:
routinely on display, there is a needs exachange president <-> media
CEO:
represents the firm
Performance Measurement
P:
general public is the judge
CEO:
judged by profitability
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
Table 2 - Pag 5
Summary of literature on Differences Betweeen Public and Private Organizations: Main Points of Consensus
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.
Chapter 5. Implications for Reseacrh on Public Management
6 Lessons for Reasearch on Public Management
4 Strategies for the development of public management