organizational behavior 11e - stephen p....

INTRODUCTION TO PUBLIC MANAGEMENT

UNIT II

1–0BABY THOMAS 2015-16

UNIT II

LEARNING OBJECTIVES

1. DISTINGUISH BETWEEN PUBLIC AND PRIVATE SECTORS

2. FUNCTIONS OF PUBLIC MANAGEMENT

3. STRATEGIC MANAGEMENT PROCESS N PUBLIC SECTOR

4. ORGANIZING FUNCTION IN PUBLIC MANAGEMENT; LEADERSHIP IN PUBLIC

SECTOR ORGANIZATIONS

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1. Authority to revise the organization and key

positions

2. Continuity of leadership to implement long range plans.

3. Excess funds distributed as a bonus or salary increase.

4. Objectives measured by results. (Profit)

5 Anonymity, isolation from the media.

1. Structure may be influenced by outside and special interest groups.

2. Time for accomplishment limited by the election process.

3. Punished for operating below budget.

4. Objectives measured by process. (Programs)

5. High visibility, pursued by the media.

1. DISTINGUISH BETWEEN PRIVATE AND

PUBLIC SECTOR MANAGEMENT


6. Reduce costs by

selectively

cutting specific projects.

7. Rewards for achievement.

8. Selects “Expert” board to

set general operating

policies.

9. Operations geared to

effectiveness.

10. Top management evaluated

by overall effectiveness.

6. Reduce costs by across-the-

board program cuts.

7. Punishment for failure.

8. Must educate a volatile board to

the policy setting role.

9. Operations geared to efficiency.

10. Top management evaluated by

dramatic incidents.1–3BABY THOMAS 2015-16

1. DISTINGUISH BETWEEN PRIVATE AND

PUBLIC SECTOR MANAGEMENT

A process that includes defining goals, establishing strategy, and developing

plans to coordinate activities.


4.1. Planning

Determining what tasks are to be done, who is to do them, how the tasks are

to be grouped, who reports to whom, and where decisions are to be made.

4.2. Organising

Staffing is the process of setting job requirements through recruitment, selection,

appraisal, compensation, training and development of candidates so as to

accomplish the tasks effectively.

4.3. Staffing

Directing involves determining the course, giving order and instruction and

providing dynamic leadership.

4.4. Directing

4.5. Controlling

Monitoring activities to ensure they are being accomplished as planned and

correcting any significant deviations.

2. FUNCTIONS OF PUBLIC MANAGEMENT

Origin of the word ‘strategy’: The term strategy has been derived from the Greek

word ‘strategos’ that means general. The meaning of strategy is, thus, portrayed as

‘the art of general’.

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Stakeholders in business: The most important stakeholders in business are

owners, customers, suppliers, employees, and society at large.

Discussion question: Why some firms outperform others in the marketplace?

Examples of strategy: Examples of strategy are geographic expansion,

diversification, acquisition, product development, market pénétration,

retrenchment, divestiture, liquidation, and joint ventures

Competitive advantage: Competitive advantage is anything that a firm does

especially well compared to rival firms

What is a strategy? Strategy is a plan, derived from the objectives of an

organization, that means ‘what to do’ for achieving those objectives.

Strategic competitiveness: Strategic competitiveness is one that is difficult

for competitors to imitate.

STRATEGIC MANAGEMENT PROCESS IN PUBLIC SECTOR - TERMINOLOGY

BABY THOMAS 2015-16

WHAT IS STRATEGIC MANAGEMENT?

Strategic management is the art and science of formulating,

implementing and evaluating strategies that enable an

organization to achieve its objectives.

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STRATEGIC MANAGEMENT PROCESS IN PUBLIC SECTOR

Strategy formulation

Strategy implementation

Strategy evaluation

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Strategy Formulation

Strategy formulation includes developing a vision and mission, identifying an

organization’s external opportunities and threats, determining internal strengths

and weaknesses, establishing long-term objectives, generating alternative

strategies, and choosing particular strategies to pursue.

Vision is the guiding philosophy that clearly defines the firm’s “reason” for being

in business. Where the organization wants to be or how it wants to

be viewed at some point in the future.

Mission is a statement that clearly defines the firm’s “reason” for being in

business. Mission is an organization’s basic purpose and scope of operations.

Distinction between a strategic vision and a mission:

A strategic vision portrays a company’s future business scope (“where we are

going”) whereas a company’s mission typically describes its present business and

purpose (“who we are, what we do, and why we are here”).


Strategy Implementation

– Strategy implementation requires a firm to establish annual

objectives, devise policies, motivate employees, and

allocate resources so that formulated strategies can be

executed

– often called the action stage


Strategy Evaluation

Strategy evaluation reviews external and internal factors that

are the bases for current strategies, measuring performance,

and taking corrective actions.

Strategy formulation, implementation, and evaluation activities

occur at three hierarchical levels in a large organization:

corporate, divisional or strategic business unit, and functional.

Strategic management helps a firm function as a competitive

team.


DECISION MAKING IN PUBLIC SECTOR

Decision making is a process of developing and

analyzing alternatives and choosing the best

alternative from among them.

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Types of Decisions

1. Programmed Decision

– A decision that is repetitive and routine and can be made by using a definite, systematic procedure.

2. Non-programmed Decision

– A decision that is unique and novel.

Programmed

Decisions

Non-programmed

Decisions

Top

Level in

Organization

Bottom

Ill-structured

Type of

Problem

Well-structured


The Decision-Making Process

1. Define the problem

2. Clarify the objectives

3. Identify alternatives

4. Analyze the consequences

5. Make a choice


Step 1. Define the Problem

1. Start by writing down the initial assessment of the

problem.

2. Dissect the problem.

– What triggered this problem?

– Why am I even thinking about solving this problem?

– What is the connection between the trigger and the

problem?


Step 2. Clarify the Objectives

1. Write down all the concerns that are to

be addressed through the decision.

2. Convert the concerns into specific,

concrete objectives.

3. Separate ends from means to establish

the fundamental objectives.

4. Clarify what each objective means.

5. Test the objectives to see if they

capture the interests.


Step 3. Identify Alternatives

1. Generate as many alternatives as possible.

2. Expand the search by checking with experts.

3. Look at each of the objectives and ask, “how?”

4. Know when to stop.


Step 4. Analyze the Consequences

1. Solving problems by thinking through the process

involved from beginning to end, imagining, at each step,

what actually would happen.

2. Eliminate any clearly inferior alternatives.

3. Organize the remaining alternatives that provide a

concise, bird's-eye view of the consequences of pursuing

each alternative.


Step 5. Make a Choice

Analyses are useless unless the right choice is

made.

– Under perfect conditions, simply review the

consequences of each alternative, and choose the

alternative that maximizes benefits.

– In practice, making a decision—even a relatively

simple one like choosing a computer—usually

can’t be done so accurately or rationally.


LEADERSHIP IN PUBLIC SECTOR ORGANIZATIONSTERMINOLOGY

“ Leadership is the ability to secure desirable action from a

group of followers voluntarily, without the use of coercion”.

Alford and Beatly


LEADERSHIP STYLES IN PUBLIC SECTOR ORGANIZATIONS

1. Autocratic (Authoritarian)

2. Bureaucratic

3. Democratic

4. Laissez-Faire


Autocratic (Authoritarian)

Manager retains power (classical approach)

Manager is decision-making authority

Manager does not consult employees for input

Subordinates expected to obey orders without explanations

Motivation provided through structured rewards and punishments


New, untrained employees

Employees are motivated

Employees do not respond to any

other leadership style

High-volume production needs

Limited time for decision making

Manager’s power is challenged by an

employee

When to use autocratic style?

Bureaucratic

Manager manages “by the book¨

Everything must be done according to procedure or policy

If it isn’t covered by the book, the manager refers to the next level above him or her

Police officer more than leader


Performing routine tasks

Need for standards/procedures

Use of dangerous or delicate equipment

Safety or security training being conducted

Tasks that require handling cash

When to use bureaucratic style?

Democratic

Often referred to as participative style

Keeps employees informed

Shares decision making and problem solving responsibilities

“Coach” who has the final say, but…

Gathers information from staff members before making decisions

Help employees evaluate their own performance

Allows employees to establish goals

Encourages employees to grow on the job and be promoted

Recognizes and encourages achievement

Can produce high quality and high quantity work for long periods of time


To keep employees informed

To encourage employees to share in decision-making and problem-solving

To provide opportunities for employees to develop a high sense of personal growth and job satisfaction

Complex problems that require a lots of input

To encourage team building and participation.

When to use democratic style?

Transformational

Charismatic and visionary

Inspire followers to transcend their self-interest for the organization

Appeal to followers' ideals and values

Inspire followers to think about problems in new or different ways

Common strategies used to influence followers include vision and framing

Instils feelings of confidence, admiration and commitment

Stimulates followers intellectually, arousing them to develop new ways to think about problems.

Uses contingent rewards to positively reinforce desirable performances

Flexible and innovative. 1–24BABY THOMAS 2015-16

When leaders want members to be an active part of the organization and have ownership to it

When leaders are building a sense of purpose

When the organization has a long term plan

When people need to be motivated

When to use transformational leadership style?

Laissez-Faire

Also known as the “hands-off¨ style

Little or no direction

Gives followers as much freedom as possible

All authority or power is given to the followers

Followers must determine goals, make decisions, and resolve problems on their own.


Employees are highly skilled, experienced, and educated

Employees have pride in their work and the drive to do it successfully on their own

Outside experts, such as staff specialists or consultants are being used

Employees are trustworthy and experienced

When to use laissez-Faire style?

BABY THOMAS 2015


managementUNIT II

organizational behavior 11e - stephen p....

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