Question 1. Nowadays, to make the distinctions between public and private management is not easy, the line between those two are thin, they look like similar, apparently, there are some similar characteristic between public and private management, that both of the organization is doing POSDCORB (Planning-Organizing-Staffing-Directing-Coordinating-Reporting-Budgeting). Both are having strategy, manage internal condition and external constituents. There is also dimension of “publicness” , that place the organization based on the degree of political authority and economic authority. Government agency is placed in the extreme side of political authority and private managed by owner placed in extreme side of economic authority. Nevertheless, they are not the same, according to Knott (1993) , “dichotomy is much too sharp to fit the facts.” The argument developed here is to convince there is still the need to differentiate those two. Based on Knott (1993) the key distinction in understanding the difference of public vs private management is between the organizations. In management issues they have particular internal characteristics (IC) and environmental constraints (EC). By analytical dimension, it could be judged by independence, information asymmetry and conflict of interest. There are four general management categories that cut across the public and private management, as follows (Knott, 1993) : Public Management Private Management Organizational Characteristics Agencies operate in political consensus and routinized technology Organizational efficiencies to achieve economic efficiency Political Mandate Interdependence to others, political authority Single accountability, economic authority Multiple stakeholders Monopoly, the ... ... middle of paper ... ...ng from public to private management. The reason was to provide finance, competitiveness and efficiency, strengthen the market discipline and better service to the consumer. Even though the process had different opinions, and contained risk of MTRC, but at the end the privatization delivered the value added to the MTR. Additionally, it was also increasing the financial performance of MTR, and make the client and citizen better off by the service provided of New MTR. From the explanation above, there are similarities of activities between public and private, dimension of publicness, and many emphases and practices from both originally public and private management can be found in government, business and non-profit organizations. However, there is still fundamental difference between those, therefore the need to differentiate public and private should be in placed.
Municipal control or an alternative delivery method? This is the question that has intrigued all levels of local government and created intense debates between taxpayers across municipalities. The services that municipalities provide are often vital to the existence of a local area. The issues of accountability, cost savings, quality of service and democracy often arise when choosing the best options to deliver services to a municipal area. In recent years the concepts of privatization, alternative service delivery and public-private partnerships are often promoted as ways cut down on overburdened annual city budgets and promote a higher quality of service to citizens. Municipalities have historically always provided basic services such as fire protection, water purification/treatment and recreational facilities. However, would private companies or another municipality be able to better deliver the same services more efficiently or at a lower cost? The city or town often provides a political grass roots approach to most local problems. Municipalities are better positioned and have a wider scope to provide services to their constituents in order to ensure quality of service that does not erode accountability and transparency, or drive the municipality deeper into debt.
- It had to restructure the public entity that was responsible for regulating quality while providing the service. SENDOS did not have the authority for economic regulation and control of tariffs which was under the Ministry of Economy. Only after the reforms a regulatory agency, SISS was established and given a right, among others, to set tariffs and audit companies. But even then, it was constrained it its ability due to much dependency on the government.
There is no individual owner in the Public Sector. Advantages: · Their main aim is to provide a service, not to make a profit · They will still run even if there is few people using the service · Government is in a good position to plan the overall provision for the country Disadvantages: · It is difficult to motivate employees in an impersonal business such as this · The tax payer has to meet higher tax payments if the business makes a loss · The running of the business can be politically influenced. Private Sector These are businesses owned and run by private people. To start a business in the Private Sector, they have to raise their own capital in order to pay for rent, stock, machinery etc. Some of these businesses can be small and owned and run by one person, other businesses can be larger and run by a group of people.
The main aim of public service is to deliver services that are of need to its people. How fast a public manager can address its people’s problem and concerns indicates its effectiveness. Responsiveness of the manager develops trust between him, the government, and the people. According to (Rainey, p106) bureaucratic responsiveness implies two things; responsiveness to the people’s wishes or responsiveness to the interest of the government.
Organizations can be configured in many different ways. Their overall classifications can be summarized by characteristics of complexity within the system, the level of formalization, and the centralization of decision-making power. The structure of each organization is influenced by many factors. Such factors include; the goods and services provided, the overall individuality of the staff providing the service and producing the products. The overall beliefs and values of the individuals performing the services that are being delivered, the technology that is utilized to help deliver the services and aid in product production, as well as the needs, desires, and generalized characteristics of the consumer population that requires or demand the product or service. (Yoder-Wise, 2007, p. 145) The organization will have different operating priorities based on its ownership. The main goal behind most business is to make money. The private owned institution strives to make its shareholders money, while a non-profit institution reinvests all of its revenue back into the orga...
...r pillars of public administration are equally important in the process of public administration and complement one another in the provision of quality public service. When public administrators have economy in mind they focus on the best combination of available resources to provide optimum public service. To ensure that public service is not limited to only a section of the public, the issue of equity is taken into consideration so that public interest is realized. Efficiency and effectiveness additionally go hand in hand in ensuring that allocated resources are used in the best possible manner to attain set goals. Thus whereas the first three public administration pillars – Economy, efficiency and effectiveness are concerned with how public service is provided the fourth and most recent addition (Equity) concerns with for whom public service is provided.
This essay discusses the radical transformation of the principles and foundations of public administration from traditional to New Public Management. Firstly the essay will attempt to define the key terms of traditional public administration and the doctrine of New Public Management. Rabin J. (2003) explains that New Public Management embodies “a process in public administration that uses information and experiences obtained in business management and other disciplines to improve efficiency, usefulness and general operation of public services in contemporary bureaucracies.“Traditional Public Administration progresses from governmental contributions, with services perceived by the bureaucracy.
M. Petrescu, e. a. (2010). Public Management: between the Traditional and New Model. Review of International Comparative 408 Management , 411.
Over time, how have members of the field of public administration examined the subject of policy and administration (has the dichotomy changed)?
The study of public administration only continued to grow over the course of the next two decades. As the study of public administration expanded, so did the development of s...
Since its emergence as a field of study, there have been some important contributions to public administration. Its goal has always been to improve productivity which then improves workplace performance. All of the contributions have been aimed at completing the work with the highest level of efficiency and at the lowest cost.
There are three well-established theories of classical management: Taylor?s Theory of Scientific Management, Fayol?s Administrative Theory, Weber?s Theory of Bureaucracy. Although these schools, or theories, developed historical sequence, later ideas have not replaced earlier ones. Instead, each new school has tended to complement or coexist with previous ones.
Max Weber, Henri Fayol and Luther Halsey Gulick all addressed issues, concerning how an overall organization should be structured, bureaucratic administration, while Frederick Taylor’s theory of scientific management concentrated on techniques for increasing production (Tomkins, 2005). This essay will focus on the disadvantages and the advantages, including the effective and efficient components, of bureaucracy in public management.
In the political approach, political authority is divided between a central government and the provincial or state governments. This means that some provinces or states are accorded a substantial measure of constitutional or legal sovereignty, although they still remain subordinates of the central government in certain constitutional or legal respects. The political approach promotes the political values of military strength, economic development, union, and representation. In addition, it is characterized by three central features: state sovereignty, bicameralism, and multiple layers of representation.
Public sector reforms adopted in a number of countries such as USA, UK and New Zealand in the last fifteen years and characterised by efficiency units, performance management, contracting out, market type mechanisms, and agency status have come to be known as the New Public Management or NPM. Appearance of the NPM as shifting the paradigm from the old traditional model of administration has been promoted by a remarkable degree of consensus among the political leadership of various countries and is presented today as the major tool for public sector management reforms.