STRATEGY IMPLEMENTATION "MANAGEMENT"

Strategy Implementation "Management" in the Public Sector

Public Sector

Introduction

This study explores the adoption of strategic human resource management (HRM) by examining the extent of linkages between HRM, I.T and business planning using the strategic integration framework. The sample is drawn from monopolized statutory public sector organizations (PSOs) which have undergone corporatization in Dallas, United states. The findings provide support for arguing that commercialization provides the impetus for the HRM function to achieve an improved level of strategic integration with the business planning process. Evidence also suggests that after corporatization, HRM functions within these corporatized PSOs have achieved a strategic status within the business planning process. (Gomez-Mejia, David, Balkin and Cardy 2008, 56-78)

Public sector organizations (PSOs) in United States have undergone a period of significant change during the last two decades. Some of these drivers of change include (1) increasing environmental pressures (both international and domestic); (2) changes in public and community expectations of PSOs; (3) changes in political influences in the management of PSOs; and (4) an increasing demand by both federal and state governments in ensuring accountability. These drivers of change provide the impetus for PSOs to adopt strategic management practices. This American experience is not uncommon, as PSOs in other countries such as United Kingdom have also undergone similar changes. (Gomez-Mejia, David, Balkin and Cardy 2008, 56-78)

One of the most significant changes to the American PSOs is the breaking up of statutory monopolies, such as railways, ports, and telecommunications, electricity, water and gas suppliers. A number of American studies, funded by the federal and state governments, have criticized these monopolized PSOs for their ineffective, inefficient and costly bureaucratic structures and processes. However, United States's progression still lags behind other countries such as and the United Kingdom. (Gomez-Mejia, David, Balkin and Cardy 2008, 56-78)

Public sector reform is usually characterized by the adoption of corporate managerial practices, such as an emphasis on bottom-line profitability, performance evaluation, strategic planning, and the adoption of HRM, instead of personnel management. HRM implies a strategic approach to the people management function, which emphasizes the strategic direction of the organizations. In this paper, the usage of "strategic HRM" is consistent with the definition of strategic HRM found in the public management literature. However, there was insufficient empirical evidence to support the adoption of a strategic approach to HRM in commercialized public sector entities.

Monopolized statutory PSOs in United States can be found in one federal and eight state or territory-based administrations, with each legislative unit having its own budgetary and HRM responsibilities. These PSOs can be found in a variety of industries, such as telecommunications, transport (including air, rail, tram and bus) and storage, and public utility (such as electricity, water and gas). Reforms began in the late 1980s with the commercialization of these organizations. Subsequently, these PSOs were corporative in the first half of the 1990s. The speed of reform varies in these PSOs, as the federal and state governments embraced the reform process at a different ...