FOR-PROFIT AND NONPROFIT ORGANIZATION MANAGEMENT
Explain Moore’s (2000) concept of “public value” and how an understanding of an organization’s value can help NGO managers.
The concept of public value explores the fundamental ideologies of strategic management and public administration that is meant to achieve results acceptable within the public dimension. The idea triggers the guiding principles of the private sector as precedence for public sector management. According to the concept, the measure of success in private management is profit. However, in the public sector it’s the value it creates to the arbiters. In his book, Moore highlights that there is a necessity to increase the management efforts to enhance the performance of public organizations. The concept draws the management flaws and absenteeism of proper strategic management concepts exhibited by the public and nonprofit organizations. He says that nonprofit organization should apply more, the techniques used by the private sector organizations to their management so that they could improve their performances.
The concept highlights the need to understand the arbiter of public value and the fact that public management is a collective responsibility and not an individual’s consummation. According to the concept, citizens are the arbiters of public value. It further alludes to the notion of collectiveness and instrumentality of the representing government when offering public service and making critical decisions regarding affecting the public. Moore annotates the need for public sector managers to create public value in their engagements rather than being consumed in activities that are not publicly valuable. Through the strategic triangle, the concept provides the direction for public sector managers that are aimed at offering publicly acceptable management strategies which in turn benefit them collectively.
Understanding the value will help the managers define their path of accountability and hierarchical responsibility as well as understand the corporate responsibility of their organizations to the public. Therefore, their course of action will be driven by publicly acceptable standards thus create the ultimate benefit to a group rather than an individual. Also, it will help them understand the need for result-oriented approach to management as opposed to activity-oriented techniques commonly deployed in nonprofit organizations.
