TABLE 1:FUNCTIONS OF GENERAL MANAGEMENTStrategy1. Establishing objectives and priorities for the organization(on the basis of forecasts of the external environmentand the organization’s capacities).2. Devising operational plans to achieve these objectives.Managing Internal Components3. Organizing and staffing. In organizing the manager establishesstructure (units and positions with assigned authorityand responsibilities) and procedures forcoordinating activity and taking action. In staffing hetries to fit the right persons in the key jobs.*4. Directing personnel and the personnel management system.The capacity of the organization is embodied primarilyin its members and their skills and knowledge. Thepersonnel management system recruits, selects, socializes,trains, rewards, punishes, and exits the organization’shuman capital, which constitutes the organization’scapacity to act to achieve its goals and to respond to specificdirections from management.5. Controlling performance. Various management informationsystems – including operating and capital budgets,accounts, reports, and statistical systems, performanceappraisals, and product evaluation – assist managementin making decisions and in measuring progress towardsobjectives.Managing External Components6. Dealing with “external” units of the organization subjectto some common authority. Most general managers mustdeal with general managers of other units within thelarger organization – above, laterally, and below – toachieve their unit’s objectives.7. Dealing with independent organizations. Agencies fromother branches or levels of government, interest groups,and private enterprises that can importantly affect the organization’sability to achieve its objectives.8. Dealing with the press and the public whose action orapproval or acquiescence is required.*Organization and staffing are frequently separated insuch lists, but because of this interaction between thetwo, they are combined here. See Graham Allison andPeter Szanton, Remaking Foreign Policy (New York: BasicBooks, 1976), p. 14.DIFFERENCES: HOW ARE PUBLIC & PRIVATEMANAGEMENT DIFFERENT?While there is a level of generality at which managementis management, whether public or private, functions thatbear identical labels take on rather different meanings inpublic and private settings. As Larry Lynn has pointedout, one powerful piece of evidence in the debate betweenthose who emphasize “similarities” and those whounderline “differences” is the nearly unanimous conclusionof individuals who have been general managers inboth business and government. Consider the reflectionsof George Shultz (Secretary of State; former Director ofOMB, Secretary of Labor, Secretary of the Treasury, Presidentof Bechtel), Donald Rumsfeld (former congressman,Director of OEO, Director of the Cost of Living Council,White House Chief of Staff, and Secretary of Defense;now President of G. D. Searle and Company), MichaelBlumenthal (former Chairman and Chief Executive Officerof Bendix, Secretary of the Treasury, and now ViceChairman of Burroughs), Roy Ash (former President ofLitton Industries, Director of OMB; later President of Addressograph),Lyman Hamilton (former Budget Officer inBOB, High Commissioner of Okinawa, Division Chief inthe World Bank and President of ITT), and George Romney(former President of American Motors, Governor ofMichigan, and Secretary of Housing and Urban Development.)8 All judge public management different from privatemanagement – and harder!Orthogonal Lists of DifferencesMy review of these recollections, as well as thethoughts or academics, has identified three interesting,orthogonal lists that summarize the current state of thefield: one by John Dunlop; one major Public AdministrationReview survey of the literature comparing public andprivate organizations by Hal Rainey, Robert Backoff andCharles Levine; and one by Richard E. Neustadt, preparedfor the National Academy of Public Administration’sPanel on Presidential Management.John T. Dunlop’s “impressionistic comparison of governmentmanagement and private business” yields thefollowing contrasts. 91. Time Perspective. Government managers tend tohave relatively short time horizons dictated by politicalnecessities and the political calendar, while private managersappear to take a longer time perspective orientedtoward market developments, technological innovationand investment, and organization building.2. Duration. The length of service of politically appointedtop government managers is relatively short, averagingno more than 18 months recently for assistant72
secretaries, while private managers have a longer tenureboth in the same position and in the same enterprise. Arecognized element of private business management isthe responsibility to train a successor or several possiblecandidates, [whereas] the concept is largely alien to publicmanagement, since fostering a successor is perceivedto be dangerous.3. Measurement of Performance. There is little if anyagreement on the standards and measurement of performanceto appraise a government manager, while varioustests of performance – financial return, market share,performance measures for executive compensation – arewell established in private business and often made explicitfor a particular managerial position during a specificperiod ahead.4. Personnel Constraints. In government there are twolayers of managerial officials that are at times hostile toone another: the civil service (or now the executive system)and the political appointees. Unionization of governmentemployees exists among relatively high-levelpersonnel in the hierarchy and includes a number of supervisorypersonnel. <strong>Civil</strong> service, union contract provisions,and other regulations complicate the recruitment,hiring, transfer, and layoff or discharge of personnel toachieve managerial objectives or preferences. By comparison,private business managements have considerablygreater latitude, even under collective bargaining, in themanagement of subordinates. They have much more authorityto direct the employees of their organization. Governmentpersonnel policy and administration are moreunder the control of staff (including civil service staff outsidean agency) compared to the private sector in whichpersonnel are much more subject to line responsibility.5. Equity and Efficiency. In governmental managementgreat emphasis tends to be placed on providing equityamong different constituencies, while in private businessmanagement relatively greater stress is placed upon efficiencyand competitive performance.6. Public Processes versus Private Processes. Governmentalmanagement tends to be exposed to publicscrutiny and to be more open, while private businessmanagement is more private and its processes more internaland less exposed to public review.7. Role of Press and Media. Governmental managementmust contend regularly with the press and media; its decisionsare often anticipated by the press. Private decisionsare less often reported in the press, and the presshas a much smaller impact on the substance and timing ofdecisions.8. Persuasion and Direction. In government, managersoften seek to mediate decisions in response to a wide varietyof pressures and must often put together a coalitionof inside and outside groups to survive. By contrast, privatemanagement process much more by direction or theissuance of orders to subordinates by superior managerswith little risk of contradiction. Governmental managerstend to regard themselves as responsive to many superiors,while private managers look more to one higher authority.9. Legislative and Judicial Impact. Governmental managersare often subject to close scrutiny by legislativeoversight groups or even judicial orders in ways that arequite uncommon in private business management. Suchscrutiny often materially constrains executive and administrativefreedom to act.10. Bottom Line. Governmental managers rarely have aclear bottom line, while that of a private business manageris profit, market performance, and survival.The Public Administration Review’s major reviewarticle comparing public and private organizations, [byRainey, Backoff and Levine,] attempts to summarize themajor points of consensus in the literature on similaritiesand differences among public and private organizations. 10Third, Richard E. Neustadt, in a fashion close to Dunlop’s,notes six major differences between Presidents ofthe United States and Chief Executive Officers of majorcorporations. 111. Time Horizon. The private chief begins by lookingforward a decade, or thereabouts, his likely span barringextraordinary troubles. The first term president looks forwardfour years at most, with the fourth (and now eventhe third) year dominated by campaigning for reelection(what second-termers look toward we scarcely know,having seen but one such term completed in the pastquarter century).2. Authority over the Enterprise. Subject to concurrencefrom the Board of Directors which appointed andcan fire him, the private executive sets organization goals,shifts structures, procedures, and personnel to suit, monitorsresults, reviews key operations decisions, deals withkey outsiders, and brings along his Board. Save for thedeep but narrow sphere of military movements, a president’sauthority in these respects is shared with wellplacedmembers of Congress (or their staffs): case bycase, they may have more explicit authority that he does(contrast authorizations and appropriations with the“take-care” clause). As for “bringing along the Board,”neither the congressmen with whom he shares power northe primary and general electorates which “hired” himhave either a Board’s duties or a broad view of the enterpriseprecisely matching his.73
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12CHAPTER 12INTRODUCTION TO STRATEG
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12.1 Strategic Leadership: Defining
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mandates or resolutions that would
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Many years of working with change p
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CONCLUDING THOUGHTSIn an ever-chang
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global issues. Businesses that poss
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16CHAPTER 16STRATEGIC COMMUNICATION
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16.1 Principles of Strategic Commun
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hidden areas can act as cultural ho
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for the win-win," during which time
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interests and, at worst, as a gun s
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Public diplomacy is surely about mu
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But public diplomats do not have th
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Photo courtesy of the familyThe LEA
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THE CADET OATHI pledge that I will