Strategic Planning

Strategic Planning

Introduction

The major theme in week 1 to 4 is was the differences and importance of public organizations, private for-profit organizations and private non-profit organizations. Second theme was the reason of market and government failure and the need of free market and government interventions. The third theme discussed perspective of institutionalization and organizational structure. The recurring idea was that public and private sector organizations are different from each other not only in lieu of their economic perspective or production status, but there is a whole lot more, i.e. public organizations are established through a government act and are meant to serve public interests, and the private organization are established with private interest whose main purpose is to earn profit. But regardless of their incongruent nature, organizations across the sectors are bound to collaborate and network in order to deliver public goods and services (stipulated through public policy) in most efficient manner possible (Bryson, 2011, pp. 13). To manage the market better, it is required to understand specifics of public and private sector organizations and their architecture. The major complexity of management arrives when public organizations have to work with private non-profit organizations. We will review the differences in the management of these organizations and their purposes.

Discussion

Major Themes

Differences and importance of types of organizations

Free market and government failure

Institutionalization and organizational structure

Analysis

Free-market system is usually seen as an alternative to inefficiencies that are propagating in the governmental organizations. But time and again it has been observed that market cannot function on its own for a long period, and an instance comes where it collapses. Some kind of support in the form of intervention is needed by the government. This intervention is to fill in the deficiencies in the free market which results in the market failure. Market failure occurs when the cost to deliver the service or good far exceeds the revenue earned.

Public sector does not weigh in cost but rather it is equitable treatment that is central to production and deliverance of public goods and services. Market failure occurs because the goal of private sector in the economy organizations is usually to increase efficiency and effectiveness, thus lower cost (Baume & Tolbert, 1985).

The public sector have to balance its actions to let the free market mechanism takes its due course, and only act when the private companies are unable to control the growth or equilibrium in the market. ...