Strategic Management in the Public and Private Sector - Term Paper Example

Infrastructures such as railways, sewerage pipes, power lines among others requires a huge investments and private owners cannot invest in such facilities that have low return but public sectors can invest in such infrastructural facilities that to provide important services to the public.... New performance targets in the United Kingdom were tied to budgetary allocation in all sectors of the public sector where performance indicators were set based on headline targets fragmented into detailed lower level targets....

From managerial point of view, the private sector and the public sector have numerous differences between them.... Firstly, unlike the private sector, the public sector is led by persons elected by common vote, by following the democratic principles.... In the twenty- first century, the public sector has experienced a huge growth and development.... However, in modern times, the public sector has been facing challenges as far as management is concerned....

The coping period of the organization without critical processes is known as maximum tolerable outage and this makes the private sector organization fail in the absence of successful supply chain management.... In minimizing the maximum tolerance outage situations, the facilitation of public sector to private sector helps in making supply chain management successful and supply chain systems of various organizations successful when they are connected to integrated supply chain management of public sector....

Also, the argument on the difference context of strategic management in the private and public sectors would be deliberated upon.... his essay tends to look at the advantages and disadvantages associated with the adoption of strategic management in public sector organizations.... Public management since the 1980s has seen public organizations taking cue in the practice of modern management techniques, such as total quality management (TQM), Cost benefit-analysis, strategic management, the current Strategic Human Resource Management, and Users participation and involvement in service provision and delivery....

While distinguishing the public and private services, it can be said that the public sector needs to provide services for public good where the market fails to do so.... The distinction between public sector and private sector services vary from country to country.... The discussion on the management practices of public or private sector services leads to the discussion on the services to be considered either public or private.... But often a major characteristic difference can be seen between private sector services and public sector The public services are not usually sold to people to gain profit and are not withheld from the people who can not afford them (Flynn 2007)....

M 2009) While the above information gives us a strong reason for privatization of the US postal service, the following facts will educate us on the public opinion of privatization.... Michael Williams in his article on Public Vs private pay, states the flaws in the current pay structure of an employee working for the US Postal service....

Wicked problems are those conflicting matters confronting the public sector that demand a consolidated partnership by public and private sectors.... These societal problems, as well as the inherent conflict of interests between the public and the private sector, are typified by a great extent of wickedness.... hellip; There is a clear agreement in the literature implying that the private sector performs some things excellently, the public sector other things....

To understand the theory better, the functioning of the publicly funded health care system, National Health Service (NHS), will be evaluated in the light of management differences in public and private sector.... Public Management indicates the situation when government and administration of a country resembles the management system of private sector to create efficiency and effectiveness in… The concept of Public Management differs from public administration that emphasizes on the socio-cultural aspects of governments to contrast it with private sector....