Strategic management is a disciplined effort which allows an organization to make decisions, develop new and innovative ideas and explore opportunities for potential or development. Strategic management can be applied to determine mission, vision, values, objectives, and establish roles and responsibilities in an organization (David 2009; Lane 2000). This paper will look at strategic management for public sector organizations and what specific challenges the public sector poses when applied. The focus will be the nature of strategy planning, implementation, and evaluation activities, and identify potential pitfalls or risks in using a strategic-management approach to decision making. The basis for this will be case studies on the Internal Revenue Service (IRS), and the Federal Emergency Management Agency (FEMA).
The public sector has seen a large influx of private sector principles in the attempt to improve efficiency and effectiveness. The reform movement can be summarized as “New Public Management,” and has been implemented with different results almost worldwide. Traditional models of organization were not well-suited for the future and strategic management represented a positive alternative, one that carries with it a “proactive commitment to the ideal that the purpose of organization is to serve the needs of people, while facilitating the human growth of all participants. The New Public Management (NPM) called for the development of “explicit standards and measures of
The management of an organization plays an integral part in determining the direction and performance of the organization. The manner in which the management of an organization is handled has a profound effect on the organization. The success of an organization is dependent upon a flexible and skilled management and workforce. The management of an organization is responsible for shaping up the organizational behavior and ultimately the culture within the organization. Public management faces a multiple of challenges and opportunities, how the management deals with these issues translates to efficiency in management. The personal judgments and skills of public managers can make a significant impact in public management. If
Pearce, J. A. II, & Robinson, R. B. (2009). Strategic management: Formulation, implementation, and control (11th ed.). [University of Phoenix Custom Edition e-text]. New York: McGraw-Hill. Retrieved August 20, 2011, fr
Bryson, J. M. (2011). Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement: 4th ed. San Francisco: Jossey-Bass.
The proper use of strategic planning can insure that the goals and objections of an organization are clearly presented with a precise action plan to see the goals in fruition. In this paper, we identify the importance of strategic planning in organizations while analyzing FEMA’s 2014-2018 strategic plan. FEMA’s mission statement, core values and goals will be closely examined to determine whether its strategic plan accurately prepares them for their future.
On a macro level, public administration and business management are similar in their overall functions. “At the broadest level, some organizational theorists contend that administration is administration whatever its setting, and that the problems of organizing people, leading them and supplying them with resources to do their jobs are always the same (Kettl, 2012, p. 38).” In his paper, “Public and Private Management: Are They Fundamentally Alike in All Unimportant Respects?,” Graham T. Allison explains that in comparing public and administration and business management, “it is possible to identify a set of general management functions (Allison, 2012, p. 4).” Regardless of their end goal, each administration must form strategies by setting goals, priorities and creating procedures. Public and private organizations must manage internal components by organizing staff, defining job responsibilities, hiring and managing personnel and creating budgets. Furthermore, they must manage external constituencies such as other agencies, the press and public (Allison, 2012, p. 5). His observations stem from Wallace Sayre’s famous words, “public and private management are fundamentally alike in all unimportant respects (DiIlulio, 1993).”
Strategic planning in the states will help the government to have a better management in the resources and it can prevent wasted sources. Strategic planning in states also a new innovation to government and according to some observers part of a quiet revolution underway in public sector management. The research suggests that the best sector management must creating the strategic management processes to address the unique feature of public sector organization. To have the effective management the manager has to moving away from the traditional, hierarchically, managed
Strategic management involves the formulation and implementation of the major goals and initiatives taken by an organization on behalf of investors, utilizing the assessment of the internal and external environments in which the organization competes. When evaluating an entity strategic management is implemented to ensure progressive mobility for the organization, this includes ensuring you have the most effective and innovative techniques for the growth. Emergency management requires strategic management both in theory and in application. The overall ability to express the relevancy of strategic management as it relates to emergency management forces the discussion of the implementation/ understanding of the phases of emergency management.
This report demonstrates the evaluation of current performance of JD Sports Company. Method of Analysis includes Ansoff’s matrix and Porter’s generic growth strategies to discuss the nature of the market which JD Sports invest in. The financial methods are including the flexibility and stability of JD sports which judged by the liquidity, current ratio, operation capital, gearing and profit margin of this company. These figures could be collected from the annual report or balance sheet. This report analyzed the JD sport’s position in the market, and used generic and external growth method to expand market size. Such as acquired a lot stores to improve business profitability. Obviously, JD has expanded to the European
The purpose of this paper is to explain the definition of Strategic Management and why it is critical to the success of an organization in meeting its goals and mission. The paper will include a brief analysis of the situation and pending decision problem, as presented in the case and in relevance to the answer. In addition, the major issues will be surrounding the organization or individuals involved with the organization. Included will be alternate courses of action to
Before compare the two different models TPA and NPM, I will illustrate what is the
Globalization changes have impacted Burger King in the following ways; since the company began in 1953 with its first restaurant in Jacksonville, Florida and opened several locations across the United States, the company began its international expansion in 1969 with its first international franchise location in Canada, followed by Australia in 1971, and Europe in 1975. The setting up of franchises outside the United States was as a result of fast food opportunities arising outside the United States. So as to fully integrate in the international market, Burger King had to adopt and embrace
During the last twenty years, various public administrations of countries in Europe, North America, Latin America and the Caribbean, were characterised by a practical reform movement defined by Hood (1991) as the New Public Management (NPM). This is documented by other scholars such as Gernod Gruening (1998)[1], and Paul Sutton (2003). Throughout the literature, it is evident that the process of reform have been subject to different terminologies: Managerialism – Pollitt (1990); Market Based Administration – Lan and Rosenbloom (1992); Entrepreneurial Government – Osborne and Gaebler (1992).
In the following paragraphs, I will explain the dominant theory in public administration practice and elaborate on the major theoretical assumptions of the Old Public Administration. As stated in the question, the world has transformed through globalization, information technology, and devolution of authority since the latter part of the last century. The dominant theory in public administration has been replaced from the traditional rule-based, authority-driven processes of the Old Public Administration with market-based, competition-driven tactics in the New Public Management, beginning in the 1980s (Kettl, 2000, p. 3). This was an effort to privatize government and streamline public administration to maximize efficiency and productivity. Heavily relying on market mechanisms to guide public programs, public administrators in the New Public Management are encouraged to “steer, not row,” meaning they should not bear the burden of delivering services, but instead define programs that others will carry out, through contracting or other means (Denhardt & Denhardt, 2011, p. 13). Core values of the New Public Management include using private sector and business approaches to the public sector, squeezing as many services as possible from smaller revenues, market style incentives, providing customers more choices, and focusing on outputs and outcomes instead of mainly processes.
A strategy, according to Robbins and Barnwell (2002, p. 139) is “the adoption of courses of action and the allocation of resources necessary to achieve the organisation’s goals”.
Future- oriented: Strategic management encompasses forecasts, what is anticipated by the managers. In such decisions, emphasis is placed on the development of projections that will enable the firm to select the most promising strategic options. In the turbulent environment, a firm will succeed only if it takes a proactive stance towards change.