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C1: Strategic Management (1. Linking Strategic Planning and Human…
C1: Strategic Management
1. Linking Strategic Planning
and Human Resource
1. Mission, Vision and Values
identify the purpose
clarify long term direction
establish enduring beliefs, principle
Human Resource
capture underlying philosophy
establish foundation of culture
guide ethical code of conduct
2. External analysis
OT
environment scanning (legal etc)
industry/ competitor analysis
demographic trends
external supply of labor
competitor benchmarking
3. Internal Analysis
SW
core competencies
resources: people, process, systems
culture, competencies, composition
forecast demand for employees
forecast supply of employees
4. Strategy formulation
corporate, business and functional strategy alignment
Productivity and efficiency
Quality, service, innovation
External fit/ alignment and internal fit
5. Strategy implementation
design structure, system
allocate resource
leadership, communication, changes
Reconcile supply and demand
Downsizing, layoff, etc
HR practice: staffing, training, rewards
6. Evaluation
assessment and benchmarking
ensuring alignment
agility and flexibility
Human capital metric
Balanced scorecard
Definition of
Strategic Management
The process of identifying, choosing, implementing activities, enhance long-term performance by setting direction, creating compatibility between internal skills and resource of organization, changing external environment
The art, science of formulating, implementing, evaluating cross functional decision that enable orgs to achieve objectives
Government roles
and responsibilities
The need of Strategic
Management in Public Sector
Strategic planning to assist agency managers to contain their budget, maintain funding for agency's highest priorities (Caiden, 1990)
Organizational aims, output and outcomes is transparent through strategies to secure on-going funding from government bodies due to funding uncertainties and constraint.
Triggered by govt's desire to control public expenditure by enhancing efficiency, public image and legitimacy
Problems with management in public sector
limited, uncertainties in funding
the link between organizational performance and cost is unclear
organizations are considered under-performing and uneconomical in their use of public resources
New Public Management Agenda
To make public administrations more accountable, efficient, and responsive
Core techniques borrowed from the private sector
New Public Management aka New Steering Model, new "Governance" term to enrich NPM, paradigmatic shift towards:
outward focused public sector
emphasizing co-operation, democracy and citizen participation
NPM Agenda
Global economy
Advance in Technology
Increased societal demand
Increased social services with fewer resources
Increased organizational scrutiny
Fiscal constraints
Bureaucratic process
Related terms:
managerialism
new public management
market-based public admin
post-bureaucratic paradigm
shift from traditional public administration with far greater attention to achievement of result, personal responsibility of managers
more flexible, achievement through performance indicator
reduce government functions through privatization and market testing and contracting
Traditional vs NPM
structure and process
vs
result-oriented
narrow and technical relationship with political leader
vs
fluid and closer
less profitable to generate revenues
vs
high profit through decentralization, privatization
less flexible in decision making
vs
more flexible
Nature of Strategic
Management in Public Sector
seldom clear link between level of performance and budget received
tends to encourage efficiency than effectiveness.
effectiveness may be costly, not attract greater funding, subject to public criticism and political pressures
agencies to implement political agenda. Often makes strategic management process difficult to implement effectively.
requires collective actions between agencies and departments (strategically separate by function interdependently)
For example, implementation of key transport policies with MOE, PDRM and MOT
no common denominator (market prices) to facilitate transactions within the public sector or measure of success (profit)
Understanding strategic
management in Public Sector
Political
few political parties and national actors representing races and fragments society will influence the types of programs and activities implemented by the public agencies
Legal
Revise strategies in the law
Failure could lead to severe consequences such as fines, public censure, imprisonment
Social
Need to be aware of how social affect the way organization manage their operation (human resource)
multi-ethnic nation, democratic Islamic state; greater diversity awareness and training
Global
interesting opportunities, challenges associated with emergence of the global economy. Open for more international partnership and joint-venture
participation of IBM, Microsoft led to friendlier, favourable business environment, rules and regulations on issue governing people, system, infrastructure
Institutional
to apply the creation or particular bodies responsible for overseeing implementation of policy
institutionalization used widely to denote the process of making something, embedded within an organization, social system as an established custom/ norm