Please reply to this classmate’s discussion post. This reply must be at least 250 words and incorporate at least 1 scholarly citation in APA format. Any sources cited must have been published within the last five years. Acceptable sources include the textbook, the Bible, etc.

At surface level analysis, it is understandable that the public would be skeptical of the use of private sector management techniques in a public sector setting. The private sector in a capitalist society makes no effort of hiding the desire to maximize profits for the lowest acceptable quality by any almost means necessary; however, when these skills are applied to maximizing service delivery and minimizing taxpayer costs, the techniques are arguably preferable. It is important for scholars and public managers to take time and interest in this phenomenon as society is increasingly using private sector companies and non-profits to deliver services via intersection with the public sector; this quasi-governmental structure was born out of necessity and continues to prove useful.

In a 2020 study, researchers Lapuente, et al. found that in a survey of top managers in 18 different countries, private sector experience positively correlated with core managerial values while core public values did not suffer. The common belief system in society is that using private sector managerial skills will translate into a decrease in integrity of those in the public sector. The aforementioned study assists in debunking this view.

Stakeholders could be defined as anyone who can be affected by the success or failure of an organization (Belyaeva, Shams, Santoro & Grandhi, 2020). In order to create shared values, it is imperative that each stakeholder understand the needs and expectations from their roles (Belyaeva, Shams, Santoro & Grandhi, 2020). These shared values are fundamental from a managerial standpoint to create products and services that will be accepted and preferable to stakeholders (Belyaeva, Shams, Santoro & Grandhi, 2020). While the stakeholder theory is still in its infancy, some of the managerial qualities from this theory are being applied to the public sector, and as shown above, the results aren’t damaging. In studies that have been done, limited as they may be at this point, it has been suggested that citizens feel more heard, involved, and trusting of the public sector when there is a partnership between private and public sectors (Belyaeva, Shams, Santoro & Grandhi, 2020).

As society evolves, technology increases, and the quality of problems facing society changes, the need for innovation and creative problem solving will become increasingly necessary. One of the human resource functions is to be able to provide talent that can assist in predicting and solving societal needs (Polyakova, 2020). Private sector HR practitioners spend much effort in time hiring those who will be able to innovate and think preventatively rather than relatively; these same skills are going to be needed with the exponential increase in societal changes that are emerging in the 21st century.

While a case for using private sector practices in the public sector can easily be made, there is still the question of whether or not citizens will trust this method of governance. In this inevitable transition to private sector style management, creating a system for accountability will be paramount. Creating the shared goals (and ultimately values) between the public employees and stakeholders in a step towards accountability; if both the public and constituents have the same understanding and expectations, it will be easier to assess success and develop actual needed services and products. The integrity system placed within an organization or department and the employees being driven by policy and law will also aid in accountability and trust of citizens (Alam, Said & Abd Aziz, 2019). While private sector companies may not have the same regulatory accountability, the public sector has a way to implement much stricter integrity and accountability guidelines. These guidelines will help alleviate anxiety surrounding moving towards a more privatized model of management. Transparency is another critical component of accountability and trust-building. Companies that are transparent tend to garner more customer trust; the same principles could assist during the transition.

References

Alam, M. M., Said, J., & Abd Aziz, M. A. (2019). Role of integrity system, internal control system and leadership practices on the accountability practices in the public sectors of malaysia. Social Responsibility Journal, 15(7), 955-976. https://doi.org/10.1108/SRJ-03-2017-0051

Belyaeva, Z., Shams, S. R., Santoro, G., & Grandhi, B. (2020). Unpacking stakeholder relationship management in the public and private sectors: The comparative insights. EuroMed Journal of Business, 15(3), 269-281. https://doi.org/10.1108/EMJB-06-2019-0085

Lapuente, V., Suzuki, K., Van de Walle, S., Department of Political Science, Statsvetenskapliga institutionen, Göteborgs universitet, Gothenburg University, Samhällsvetenskapliga fakulteten, & Faculty of Social Sciences. (2020). Goats or wolves? private sector managers in the public sector. Governance (Oxford), 33(3), 599-619. https://doi.org/10.1111/gove.12462

Polyakova, A. (2020). Civil service, HR potential, and open innovation. Journal of Open Innovation, 6(4), 174. https://doi.org/10.3390/joitmc6040174