Strategic Management Approach Flashcards
Strategic Management Approach Step 1: Identify Objectives
Strategic management focuses more on objectives than functions. Rather than “what do you do” it is “what do you achieve”.
Objective statements should be Succinct, Directional, Time limited, and Measurable.
Strategic Management Approach Step 2: Establish planning horizon
Strategic planning is inherently long term in nature, but public administration is tied to politics which is short term in nature.
Major difference between public and private orgs is that public sector is connected to politics which limits how much long term planning can be done.
Government example of rational planning =Government Performance Results Act of 1993. Lead to federal agencies preparing strategic plans for review by the Office of Management and Budget and Congress.
Strategic Management Approach Step 3: Review Organizational capabilities
Matching the strategy, capability, and environment. As environments move from stable to turbulent, the capabilities of workers must move from custodial to entrepreneurial.
SWOT analysis can be used to test organizational capabilities. SWOT=Strengths, weaknesses, opportunities, threats
Game Theory
Gaining popularity in public administration (Kettl article)
Cooperation and conflict in the context of decision making.
Identify goals of the players in the game.
Strategic management decision levels
Decisions levels are ranked from highest to lowest as grand strategic (national policy), strategic (highest org level), operational (planning and administrative level) and tactical (service delivery).
Specificity increases as the level gets lower (ideas go from grand to fine-tuned).
Strategic management tool: Best practices
Look at what competitors are doing ( this comes from war and management).
Strategic management tool: Benchmarking
Is the organization efficient by industry standards? Technique developed by the private sector
Strategic management tool: Benchmarking
Is the organization efficient by industry standards? Technique developed by the private sector
strategic management tool: Management scorecards
Tallied performance of individual units or functions of a large org. Started in the 90s in the private sector. Introduced in government in 2002-departments were rated red, yellow, or green. Office of Management & Budget (OMB) issued new grades every six months throughout the Bush administration. Obama changed up the format in 2009. Obama created scorecards for energy efficiency. Relates to game theory as well.
How does regulation relate to strategic management?
Regulation acts as a tool for governments to achieve strategic management objectives. “It does not exist for its own sake, it is always part of a larger strategic goal.” (Shafritz 375)
Administrative Procedure Act (APA)
distinguishes rulemaking that requires a hearing and rulemaking that requires only notice and opportunity for public comment. New rules are listed in the Federal Register.
State government regulation examples
State governments are responsible for the public’s welfare. Example of occupational licenses. Sometimes unexpected occupations are regulated such as massage therapist or athletic trainer.
Local Government Regulation
Zoning: government saying what land can be used for.
Building codes: adopted to protect health and property. In aftermath of Triangle Shirtwaist Factory fire (1911) government increased efforts for safe building standards.
Public health: Threats to health range from food that contains e. coli to illness, and obesity. Example of regulating obesity is requiring restaurants to display nutrition info.
Agency Capture
Regulators become hesitant to challenge the people they are supposed to be regulating. Because regulation has also been supported by industries seeking economic benefits, especially in keeping new entrants out of the market. It is possible for industries to “capture” regulatory commissions.
Regulatory administration can be categorized by the following objectives:
surrogate markets, market functioning, environment, employment, and product and process safety.