Introduction
Since the emergence of the first business organizations, management activity continues to evolve. According to Fayol’s administrative theory it covers all human activities, from the creche to the boardroom. However, there are also important distinctions in the management of business organizations, in particular between public and private sector managers. Through time, management theories and practice have been shaped by different factors, including political and economic changes, which have influenced the type and amount of management activity undertaken. Consequently, managers face a range of challenges, in particular how to harness the resources available to them (including processes and people) in order to achieve the desired outcomes.
Public Sector Management Activity
Public sector managers must not only be responsible for their organization’s outputs, but must also be able to account for their decision-making processes, as they are ultimately responsible to the electorate and the government. In recent years, public sector management activity has come under increased pressure to deliver improved public services, despite constricting financial resources. The structure of public sector management activity is often hierarchical, and therefore can be more rigid than other forms of management. A primary technique employed in the public sector is planned activities, which often involve collecting information from external sources and conducting meetings amongst group members, in order to achieve their objectives.
Private Sector Management Activity
The private sector, as well as public sector, is also subject to market forces, so its management activity must also adapt to the changing environment. However, private sector management is typically less hierarchical, often with flattened structures and increased autonomy for individual managers. As a result, private sector managers must be more dynamic and proactive in order to stay ahead of the competition. Private Sector Management has also become increasingly sophisticated, incorporating practices such as Total Quality Management (TQM) and the use of data-driven decision-making. In addition, modern management theories such as the “management by objectives” approach have had a profound impact on many private sector organizations.
Conclusion
Management activity is important in both the public and private sectors, and its variety and range of skills required are very different. Public sector managers are likely to be more hierarchical and structured in their approaches, while private sector managers must be flexible and creative. In order to be effective, all managers must be able to control and utilize their resources, and be familiar with the management theories and practices that are applicable to their organization. Regardless of sector, successful management activities will often contribute to positive business outcomes, such as increased productivity and profitability, which can have positive effects on the entire economy.
