Public Sector and Public Management

Public sector, public activity, public administration, public management

Strategic management is now a very necessary and important factor in the prosperity of a society.

It is a public process, the purposefulness, effectiveness and successful realization of which depends directly on the good knowledge and consideration of the specifics of its elements: public sector, activity, administration, public management. Reference: Strategic management and strategic planning

After mastering the material on the topic you will be able to:

DETERMINE – nature, specifics and requirements

the basic elements in the process of strategic management of the public sector

DISTRIBUTE – the concepts of the public sector, public goods,

public services, public expenditure

IDENTIFY – the place, role, responsibilities and

the responsibility of public administration in the strategic management and governance process. This idea is similar to the Japanese Management Model.

TO DISCLOSE – the nature and specificity of the category

public management.

First, some pointers, distinctions, applications of concepts and statements that can be carefully addressed may and should be useful.

In its development, even now, humanity has shaped its social environment, in which it lives, exists, manifests itself and thrives. In this environment, it creates its own bodies and institutions of management, its own rules, requirements and rules with which every member of this society must comply, observe, comply with.

This is the phenomenon of the public environment.

  1. The public environment is the environment, the conditions in which the state and public interests are realized. It builds relationships, relationships between public and private entities and entities.
  2. In a broad sense, it covers demographic, natural and other conditions
  3. In a narrow sense, it covers the main social relations – political, social, economic and others.

Main components:

  • political environment
  • economic environment (business environment)
  • social environment
  • administrative environment
  • civil environment
  • technological environment



It is characterized by the number and interrelation of the factors that an organization must necessarily respond to through management.


It is characterized by the speed at which change occurs and develops. This requires the organization to be ready for innovation in the process of adaptation to change.


It is characterized by the quantity and quality of information required by the organization for successful management.

Some PROBLEM SITUATION is constantly occurring in the middle

It is an organic set of changing environmental factors in which an organization must define goals, priorities, and strategy for solving a problem. Problem situations are almost never repeated.


INTERNAL ENVIRONMENT These are the resources of the public sector organization:

  • human;
  • financial;
  • information;
  • managerial;
  • material (buildings, equipment);
  • technological.

– PUBLIC LEADERS – or leading authoritative and popular public figures (political or civic leaders) who, with their intelligence, political intuition, talent and organizational skills, influence public development and are often the initiators of current strategic initiatives for the benefit of the state and public interest.

– BRAIN TRUSTS – or specially formed groups of highly qualified and competent experts (working in state or in goodwill with heads of state or civil structures as well as acting independently) who have specialized in the preparation of strategic analyzes, strategic alternatives and public strategies .

From ancient times, the concept of “public” was understood to mean “from the people to the people”. It is used to distinguish private from public property, which includes everything in the state that is available to citizens for use without restriction of the right of equal access by everyone.

The public sector encompasses a system of government agencies that deal with public asset management, taxation and offering public goods for public use.

The state adopts laws, establishes institutions that take care of their implementation, concentrates resources in order to fulfill its public commitments.

In the private sector, it is up to each individual to decide what to produce, how to consume or market it.

The benefits are public, private and mixed. The market is an effective mechanism for the supply of private goods, ie. to those for which the consumer has to pay a certain price to acquire the rights to use them. The process of consumption of private goods is therefore based on two principles:

the principle of exclusion – one who does not pay the price of the good is unconditionally excluded from his consumption;

competitive principle – producers compete in the supply of the particular private good, at a bargain price, and consumers in order to obtain the right to consume it at the lowest possible market price.

Public goods are distinguished by the fact that they are not competitive in the consumption process (ie consumption of a public good by a person does not reduce the benefits of his consumption by other members of society) and for them the exclusion principle is not applicable. The distribution of public goods mainly uses other, non-market mechanisms.

The main public goods are: the defense of the country; internal order and security; state-funded education, healthcare, etc.

Public goods are:

a) worthy ones, those who bring prosperity to society: e.g. education, healthcare, tourism, etc.

(b) unworthy, those for whom the public is compelled to spend public resources to overcome their harm: e.g. alcoholism,
drug addiction, prostitution and more.

Mixed goods combine the principles of exclusion and competitiveness (eg non-state education).

Public choice is a system for revealing the preferences of individual citizens (or civic structures) to the consumption of certain public goods. This is done through:

  • direct voting;
  • the bodies of public authority elected by the people.

The choice of the so-called so-called “middle voter”, ie. the one that has the most weight in the public space (this is established through sociological, statistical and other studies). On this basis, the public authority and its administration determine the type and quantity of public goods that are offered to the public.

Public expenditures

Public expenditures are those performed by the state to provide a certain type and amount of public services. Funds for these expenses are mainly provided by the so-called. public receivables from the state – taxes, duties, taxes, excise duties and more.

Public services

Public services are the services provided by the state (or its authorized organizations), to the individual citizen, to various social groups, and to society as a whole.

The public sector operates, organizes and controls the implementation of the current policy

The public sector operates, organizes and controls the implementation of the current policy and the decisions of the public administration, which is behind the policy, behind it.

Public administration emerges simultaneously with the emergence of the state. The administration’s history begins with the Sumerians in Mesopotamia, where an organized administrative life was born. The lunar calendar and script were discovered. Since then, the first written laws of Hamurapi, China, Hellas, Rome have been known and have contributed to shaping the development and refinement of the administration.

The founder of modern public administration is Leonard White, who in 1926 published his work “An Introduction to the Science of Public Administration“.
There are several contradictions in the concept of “public administration”:

The first is to combine two opposite words in meaning:

  • Administrator (Latin) – serve, serve ie. the administration should be power oriented.
  • Public – administration should be people-oriented.

The second is between public administration as a science and public administration as a practice.

As a science, public administration is a system of scientific knowledge and theoretical perspectives on the ways in which public authority and public administration are constructed and operated. It is a collection of modern sciences – legal, political, managerial and economic.

As a matter of practice, public administration is a collection of interconnected administrative processes, functions and structures that bear the responsibility and assist state institutions in the exercise of public authority.

The third is in the administration-policy ratio.

One view is that the administration must be separated from political power. US President Widrow Wilson first defines the requirement that the policy is for those elected by the people, and that the administration must be separate and obey the orders of the elected to make public decisions.

The other notion is that the administration must obey the policy – ie. of a political power that is in power and has the right to set the rules for the functioning of the administration and to control its activities.

In both cases, the administration has to work only within the limits of the law, it has no right to make independent public decisions, it has no right to dispose of public resources and to make its own selection of public services.

There are two definitions for the concept of public administration:

From the point of view of power Public administration is a complex of administrative processes, administrative structures and persons acting in official positions, supporting and ensuring the implementation of laws and other normative acts, as well as the actions of the authorities.

From a civil society perspective – Public administration is a tool for the realization of the public interest, incl. administrative servicing of the population, financing of public activities protection of the territorial integrity of the state, internal order and security, fight against crime, social protection, etc.

As a result of the role and work of the administration worldwide, there is a crisis of public sector confidence that the public sector is more likely to create than solve public problems, and that government programs and policies are more likely to reduce rather than increase life expectancy. At the same time, the opinion is formed that the public sector does not always carry out the expected policy. According to this point of view, the signs of failure are everywhere – crime, drug addiction, terrorism, homeless people, high taxes, the decline of public schools and hospitals, corruption after senior civil servants, etc. The general irritation of the functioning of the public sector causes the need for reforms in the public sector. public administration and, above all, effective public management.

Public management is the product of a passing democracy

Public management is the product of a passing democracy with all the ensuing criticized consequences of insufficiently laws and regulations, unprepared administration, vivid political confrontation, continuous change of government officials, lack of status and laws for functioning public organizations. .This process is far from over because administrative reform is gaining momentum and the results will be felt over time. For these reasons, the evolution of public management in Europe will directly depend on two major factors: firstly, the ongoing political change in society and the adaptation of citizens to it, and secondly, the ability to quickly and dynamically proceed integration into European companies and structures, carefully examines their experience and implements proven management approaches and concepts. Reference: Strategic Management

The term “management” is an Anglo-Saxon term with a Latin root. In the USA it began to be used after the democratic changes and gradually to replace the terms “government” and “leadership”. After numerous discussions as to whether management, management and leadership are synonymous, management = management + leadership is considered to be synonymous:

  • Management is the impact on the system (organization) of achieving certain goals;
  • Leadership is the impact on human resources to achieve certain goals.
  • There are numerous definitions of management as a process in scientific publications. Here is a small part of them:
  • Management translates ideas into results and determines the means to achieve those results;
  • Management is “to do something with the hands of others”;
  • Management is a deliberate impact on an organization to achieve pre-formulated goals;

Management as a process is an integrated set of functions

Management as a process is an integrated set of functions: planning, organizing, leadership (motivation) and control, with communication functions being the communication and management decision making.

Peter Drucker, the doyen of American management formulates the three main tasks of management:

  1. To determine the purpose and mission of the organization;
  2. Make the organization’s activity productive;
  3. Manage social impacts and responsibilities.

With respect to public administration, management becomes public management because it only manages relations aimed at satisfying the public interest with the means of public (state and non-governmental organizations) power.

Very often, management is identified only with business management and organizational priorities. It should be noted that, for the first time, management theory was applied not in business organizations, but in government and non-profit organizations.

The first congress, held in Prague in 1922, was organized not by businessmen, but by H. Hoover (Secretary of the US Department of Commerce) and Masaryk (President of the new Czech Republic).

According to P. Drucker, already cited, business management and public management overlap 90% and only 10% differ. The main differences between them are in the goals, the object and the subject of management.

According to prominent experts (Hood, etc.), new public management includes seven main points:

application of professional management;

clear standards and performance criteria;

greater emphasis on output control;

the transition to disaggregation of public sector entities;

transition to a common competition start in the public sector;

an emphasis on styles of managerial practice in the private sector;

emphasizing greater discipline and frugality in the use of resources.

In particular, the new public management now requires the following changes in approaches, methods and actions in public institutions:

  • transferring strategic management techniques (from business to administration) to formulate public goals, strategies and policies to achieve them;
  • a change in the management structure of budgetary institutions aimed at decoupling business from administration (agencies with delegated powers to provide public services);
  • reduction of hierarchical levels in administrative structures and strengthening of official responsibility for accomplishing the tasks assigned;
  • introduction of a system of indicators for assessing the performance of management functions;
  • a change in the administrative culture of public administration employees in the direction of the values ​​of modern management;
  • using human resources management approaches to abandon collective irresponsibility in the behavior of civil servants by individualizing tasks and identifying incentives and sanctions, increasing their responsibility and motivation;
  • creating flexible, adaptable and self-educated public institutions;
  • granting greater autonomy to public institutions through decentralization, establishing separate units of public services by introducing a kind of competition between and within them.

After examining and specifying these several initial and widely used concepts in the following topics, one can get into the nature and specificity of strategic planning and management.


  • public environment
  • public sector
  • political elite
  • civilian elite
  • public goods
  • public services
  • public expenditure
  • public administration
  • aspects of public administration
  • management
  • management
  • manual
  • public management
  • management process


  • State Administration Act. Issue 130 of 1998
  • Code of Conduct for the Civil Servant С.2000г.
  • Law on Local Self-Government and Local Administration, SG No. 77/1991
  • Law on Events, Rallies and Manifestations, SG. Issue 10 from 1999
  • Law on Political Parties, SG. Issue 30 of 2001
  • Ordinance on the conditions and procedure for the adoption, financing and implementation of strategies, plans for regional development, SG. Issue 106 of 2004
  • White Paper on the Achievements and Challenges of the State Administration in the European Union, С, 2005.
  • General Activity Report in the European Union, Brussels, 2008

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