Strategic Management in the Private and Public Sector Organizations: Similarities and Differences Cover Image

Strateginis valdymas privataus ir viešojo sektoriaus organizacijose: panašumai ir skirtumai
Strategic Management in the Private and Public Sector Organizations: Similarities and Differences

Author(s): Jurga Staponkienė
Subject(s): Social Sciences
Published by: VšĮ Šiaulių universiteto leidykla
Keywords: Strategic management; knowledge economics; information society; globalisation; private sector; public sector.

Summary/Abstract: Ongoing globalisation, intensifying rivalry, emerging information society and knowledge economics, advancing technologies provoke new demands on organization management. Ability to adapt to and to act in the rapidly changing setting becomes virtually the core factor of survival and rivalry for the organizations. The processes of integration into the international spaces and adaptation to globalisation and information society can't do without strategic actions. Thus, the strategic management in the last decades has become the most significant organizational management innovation both in the private and public sectors. Lithuanian as well as foreign scientific sources offer a number of publications, analysing methodology, methods and techniques of strategic management for private sector organizations. Strategic management of the public sector is paid less attention, especially in the Lithuania's scientific publications. Thus, in this article, while analysing the general context of strategic management, its peculiarities in the public sector organizations are stressed. The article is based upon the works of the authors, who analyse the general aspects of strategic management and changes of the last two decades in the public sector management. Largest attention in the article is paid at definition of the differences between public and private sectors as well as at their strategic managements. Under conditions of liberal democracy or the so-called capitalist democratic society, economics and society feature two sectors: private and public. Such dichotomy is used to establish management patterns and to define interests or individual preferences. The private sector consists of different market organizations with prevailing exclusively private interests. These organizations make kernel of economic system of any state. According to a traditional model, the public sector takes care of the society, basing upon the system of hierarchy structures, corresponding to the political attitudes. Public sector institutions are necessary to define, to implement and to administer policy in the relevant field. In order activities of the public sector organizations were as efficient and effective, they must be managed with a clear purpose. System and structure of the public sector organizations directly determine efficiency and efficacy of the social economic solution implementation. Thus, strategic management of the public organizations is a perspective object of scientific investigations at the same time being an urgent practical target, because the public management style is more and more supplemented by the "soft" instruments, based upon managerial relations and concepts; the public management itself becomes a part of service market, starting to compete with and to integrate into the private sector.

  • Issue Year: 2004
  • Issue No: 4
  • Page Range: 85-93
  • Page Count: 9
  • Language: Lithuanian