Public Sector Management the Term Essay

Excerpt from Essay :

It relies on the vision of the state you choose to subscribe and it depends upon the costs and benefits of a few highly imperfect social institutions: market trends and the public sector. (Bovaird, Loffler, 2003, p. 25) The public sector is a ubiquitous social institution having grown in size and complexity within the last fifty years. Nevertheless, this is a linear development. Whereas the development belonging to the welfare state in the late 1960s and 1970s took an unprecedented growth of men and women in most OECD states, the 1980s and 1990s was marked by concerns and attempts to reduce the strength of the public sector, or, at a minimum, to make it more helpful and all these have fiscal implications.

A good number of policies have spending implications. In cases where money becomes scarce, financial constraints can create problems in public enterprises. Though the opposite-financial crises also have a powerful upside: they put pressure on public organizations in becoming more efficient is true. (Bovaird, Loffler, 2003, p. 25) In particular, the fiscal crisis in OECD countries in the 1980s and 1990s was a key element trigger for public sector reforms and one such reform is about to be unleashed now after the London riots.

The theories of organizational development have no clarity by themselves. The concept of organizational development has yet to evolve and create a boundary and definition for itself. Hence the concept can include those faces of the organization that can be enlarged, or recreated to develop the organization. There are three fundamental concepts in this analysis of development namely the research on what actions to take, understanding the system of the organization, and the limitations and framework of growth. (Waclawski, Church, 2002, p. 3)

The most important fact that every organization must strive to cultivate is the organization culture and every employee is a component of this. The core competency of the organization could be based on individual and collective beliefs and values. There are possible values that evolve in the culture of the company but management may perceive only those that are critical to the entire functioning. (Fairholm, 2001, p. 73) So building a work culture that can boost the company image, from the way customers are treated to the way the organization responds to a crisis can be determined by the corporate culture. Therefore this ought to find the first place in the plan. Secondly a good office or organization set up is possible only with team work and this makes the development cooperative. There is also a great role in creating, managing and understanding diversity in the work place. With diversity also come diverse skills. It is a fact that individuals all like to help out in problems. There is evidence from research that every individual has the capacity to understand and solve problems. (Kossek, Lambert, 2005, p. 319).

Thus people with different skills can form a group -- and individual level competencies can be encouraged in such a way that some new way of conducting the individuals own work or solving a corporate problem is encouraged. (Tidd, Bessant, Pavitt, 2001, p. 314) Competencies that have to be developed necessarily require that there be changes effected in these cultures which can be done by the actual performance of the top executives who by following them can help spread the core values. This is the practice in most corporate cultures, and a similar culture essentially is a necessity for the public services with a value system. Thus the need for leadership training and also for special management. Also there is a need for encouragement of diversity. Diversity can both create growth, inflow of ideas and also bring with it problems. (Kossek, Lambert, 2005, p. 319)

Thus concentrating on these changes will bring about a change in the organization and this can be a beginning. Individual values could be based on professional ethics and needs, organizational values, community values, and the social values that change from country to country and place to place. The tapping of inner values and thus creating a leader from the worker whose vision also encompasses the core belief of the corporate entity is the success of the leader. And these core values are important for the management of the business with success and without conflict.

Privatization the Possibility:

In majority of cases like the health sector and transport, privatization may affect the poor. In some cases it means privatization, in others devolving responsibilities to lower levels of government or this is the introduction of market-type instruments with the public sector which is worthy of being analyzed separately. Restructuring some enterprises can be beneficial and this leads to administrative reform.

Both of the chief characteristics associated with public sector restructuring as well as administrative reform on both sides from the Atlantic, prior to 1980, have already been the top-down nature from the change process and have limited impact. The possible lack of impact can end up being defined both with regard to the extent of the change within the business and its capability to be sustained with time. The similarities associated with the experiences across numerous political regimes has resulted in skepticism relating to whether any type of public sector reform will probably achieve the consequences desired through the instigating government. With the continuing increased exposure of public sector change it becomes important that any analysis seeks to comprehend what might differ in the political context of the most recent series of reforms to ensure that this can bring about the development of the conceptual framework within that the style, nature, as well as impact of current restructuring processes. (Ferlie et al., 1996, p. 30)

The influence from the 'New Right' upon public sector reforms, is that it has led towards the introduction of the idea of market-based competition and the attempt to produce a more entrepreneurial ethos, each of which are dependent firmly on versions and ideologies in the private sector. The related and important component of public sector reform processes may be the transference from the private sector board model towards the strategic apex from the new operating models and purchasing organizations. Previous forms associated with authorities with immediate or indirect nearby authority influence and democratic accountability happen to be removed and the brand new board model launched. Within the wellness service, this change, unlike others, was not optional but statutorily enforced and has numerous major implications for that development of the brand new public management.

There has been the actual increase in the amount of non-elected bodies within the public sector using their implications for nearby democratic control. The brand new NHS authorities and boards are simply one example, but a substantial one, of this particular recent phenomenon. Next, it will look at the private field board model that has influenced the brand new composition of NHS planks, with its clear implications for that growth of managerialism. The actual increasing power associated with executive and non-executive company directors is one of the distinctive options that come with the new open public management and is visible to be both an objective along with a means along the way of reform. (Ferlie et al., 1996, p. 117) A competition between alternative thoughts of accountability is actually evident, and is really a key aspect from the current debate about the rise and character of the brand new public management. (Ferlie et al., 1996, p. 30)

The Growing Discussion:

Accountability in the general public services ensuring effective accountability is obviously also an essential and topical question within the private sector exactly where recent experience indicates the existence associated with problems. Current personal sector themes consist of: how to make sure the accountability from the directors to the actual shareholders; how to ensure better management and competency. However privatization is more effective in most cases as it has been shown in the U.S. where many private establishments now run public services. So what would the benefits be?

Benefits of Privatization and Competition:

Where there is a scope for competition there is always a scope for better services. The competition results in reduced wages and cost savings. Thus if wages are high they are reduced and thus benefit the customer. There is an excessive wage rate in public services and on the flip side there is a possibility of excessive production of competitive goods and services that would leave out the essentials resulting in poor consumer welfare. The argument with regard to wages is that privatization offers better prospects to skilled labor and hence attracts the best talent. A study by the federal government of the feasibility of using private firms to provide services on contract basis, wherein services were state monopoly showed that this would provide lot of cost savings. Thus it can be contended that contracting for commercial services results in saving federal spending cost and at the same…

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