Week 11: Privatization, Reengineering, TQM

Lecture Notes


These three management strategies are often grouped under the "Reinventing Government" movement. All are strategies to improve government effectiveness. All are motivated to a great degree by the "customer satisfaction" notion. Privatization, of course, is a strategy for the public sector. The other two are business practices that have been used with varying degrees of success in the public sector. All three strategies reflect the interest within public administration of applying private sector management practices.

Although reinventing government initiatives, including strategic planning and performance measurement, have been adopted with bi-partisan support, it is important to recognize the political motivations that, at times, lie behind these initiatives. For example, the internet reading on Governor Wilson's Council on Economic Competitiveness included "regulatory streamlining" items that could fall under the "reengineering" label yet clearly reflect the political agenda of making California more friendly for business development (e.g. less regulation).

1. Privatization

Some questions about privatization:

(1) Progressive reforms included getting private market and its pernicious effects out of public service arena. Why are we now reversing this through privatization?

(2) Why would govt-produced and delivered goods and services be amenable to privatization? Market failure is main reason why certain goods and services are in the public realm in the first place.


2. Re-engineering


3. TQM


Preview of Week 12: Leadership