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STRATEGIC MANAGEMENTIN THE PUBLIC S

STRATEGIC MANAGEMENT
IN THE PUBLIC SECTOR
ConceptsM, odels,a ndP rocesses
THEODORHE . POISTER
GREGORYD . STREIB
Georgia State University
Lffective publica dministrationin the age of results-orientedm anagementr equires
public agencies to develop a capacityf or strategicm anagementt, he centralm anagement
processt hati ntegratesa ll majora ctivitiesa ndf unctionsa ndd irectst hemt oward
advancing an organization's strategic agenda. Strategic management is concerned
with strengtheningth e long-termv iabilitya nde ffectivenesso f publics ectoro rganizations
clarify the relationship between strategic management and other management processes.
Brief examples drawn from a few state and local government units are presented
to illustrate strategic management concepts and processes and making them
more accessible to practicing public managers.
ManagingS trategicallyi n Government
In the ongoing rush of activities, competing demands for attention, and the press of
day-to-day decisions, focusing on a viable and responsive strategic agenda as the central
source of direction, initiatives, and priorities is of fundamental importance. A
strong strategic management capability is essential because it provides both a shortterma
nd a long-terms ense of directionf or a governmentaal gency relativet o its internal
and externale nvironmentsw, hich could be shiftingc ontinually.C hangesi n societal
needs, political trends,i ntergovernmentarle lations,f iscal conditions, and citizen
expectationsa re likely to altert he mix of programmaticr esponsibilitiesa nd resource
requirements facing local governments. Anticipating these possibly substantial
changes anda daptingt o themp roductivelyr equirest he type of forward-lookingf, lexible,
and effective responses that a strong strategic management capacity can help to
provide.
STRATEGICP LANNINGA NDS TRATEGICM ANAGEMENT
Although strategic management often is discussed as an extension of strategic planning,
and the two terms often are confused and used interchangeablyt,h ey are by no
means synonymous. Strategic planning has been defined as "a disciplined effort to
producef undamentadl ecisions anda ctionst hats hapea nd guide what an organization
is, what it does, and why it does it" (Bryson, 1988, p. 5). It blends fUturistict hinking,
objective analysis, and subjective evaluation of goals and priorities to chart future
courses of action that will ensure the long-run vitality and effectiveness of the organization.
In contrast to the more closed-system orientation of traditional long-range
planninga nd conventionalp rogramp lanning,s trategicp lanningi s a 4'bigp ictures'a pproach
that
is concernedw ithi dentifyinga ndr espondintgo them ostf undamentaisls uesf acinga n
organization;
addressetsh e subjectiveq uestiono f purposea ndt heo ftenc ompetingv aluest hati nfluence
mission and strategies;
emphasizetsh ei mportancoef externatlr endsa ndf orcesa s theya rel ikelyt o affectt he
agency and its mission;
attempttso be politicallyr ealisticb y takingin toa ccountth ec oncernas ndp referenceosf
internal and especially external stakeholders;
* relies heavily on the active involvement of senior-level managers and sometimes elected
officials, assisted by staff support where needed;
* requirest he candid confrontationo f criticali ssues by key participantst o build commitment
to plans;
* is action oriented and stresses the importance of developing plans for implementing
strategies; andin terms of both substantivep olicy and managementc apacity.I t integratesa ll
otherm anagemenpt rocessest o providea systematic,c oherent,a nde ffectivea pproach
to establishing, attaining, monitoring, and updating an agency's strategic objectives.
Strategic management is integrative in nature in the sense of (a) focusing attention
across functionald ivisions and throughouvt ariouso rganizationalle vels on common
goals, themes, and issues; (b) tying internalm anagementp rocessesa nd programi nitiativest
o desiredo utcomesi n the externale nvironmenta; nd (c) linkingo perational?
tactical,d ay-to-dayd ecisionst o longerr uns trategico bjectives.P articularlyg iven the
dynamicp olitical and institutionale nvironmentw ithin which many public agencies
operate, an effective strategic management capability is essential for maintaining or
strengtheningth e fit betweent he organizationa ndi ts externals takeholdersa nd managing
for results within a clearly defined context of mission, mandates, values, and
. . vlslon.
Strategicm anagementh as been addressedi n the public administrationli terature
(Koteen, 1989; Nutt & Backoff, 1992; Rabin, Miller, & Hildreth, 1989; Steiss, 1985)
but by no means as extensively as has its most critical component, strategic planning,
or otherm anagementa pproaches uch as totalq ualitym anagementH. owever,a more
recenta rticleb y Mlnzanat nd Vlnzant( 1996a) goes a long way towardr efocusinga ppropriate
attention on the role of strategic management in the public sector and discussing
implementationis sues and strategiesi n an instructivem anner.
The purpose of the present article is to raise awareness of the central importance
of strategic management in government, define the critical elements in a holistic
model of strategic management, discuss the strategic management process,
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STRATEGIC MANAGEMENTIN THE PUBLIC SECTORConceptsM, odels,a ndP rocessesTHEODORHE . POISTERGREGORYD . STREIBGeorgia State UniversityLffective publica dministrationin the age of results-orientedm anagementr equirespublic agencies to develop a capacityf or strategicm anagementt, he centralm anagementprocesst hati ntegratesa ll majora ctivitiesa ndf unctionsa ndd irectst hemt owardadvancing an organization's strategic agenda. Strategic management is concernedwith strengtheningth e long-termv iabilitya nde ffectivenesso f publics ectoro rganizationsclarify the relationship between strategic management and other management processes.Brief examples drawn from a few state and local government units are presentedto illustrate strategic management concepts and processes and making themmore accessible to practicing public managers.ManagingS trategicallyi n GovernmentIn the ongoing rush of activities, competing demands for attention, and the press ofday-to-day decisions, focusing on a viable and responsive strategic agenda as the centralsource of direction, initiatives, and priorities is of fundamental importance. Astrong strategic management capability is essential because it provides both a shorttermand a long-terms ense of directionf or a governmentaal gency relativet o its internaland externale nvironmentsw, hich could be shiftingc ontinually.C hangesi n societalneeds, political trends,i ntergovernmentarle lations,f iscal conditions, and citizenexpectationsa re likely to altert he mix of programmaticr esponsibilitiesa nd resourcerequirements facing local governments. Anticipating these possibly substantialchanges anda daptingt o themp roductivelyr equirest he type of forward-lookingf, lexible,and effective responses that a strong strategic management capacity can help toprovide.STRATEGICP LANNINGA NDS TRATEGICM ANAGEMENTAlthough strategic management often is discussed as an extension of strategic planning,and the two terms often are confused and used interchangeablyt,h ey are by nomeans synonymous. Strategic planning has been defined as "a disciplined effort toproducef undamentadl ecisions anda ctionst hats hapea nd guide what an organizationis, what it does, and why it does it" (Bryson, 1988, p. 5). It blends fUturistict hinking,objective analysis, and subjective evaluation of goals and priorities to chart futurecourses of action that will ensure the long-run vitality and effectiveness of the organization.In contrast to the more closed-system orientation of traditional long-rangeplanninga nd conventionalp rogramp lanning,s trategicp lanningi s a 4'bigp ictures'a pproachthatis concernedw ithi dentifyinga ndr espondintgo them ostf undamentaisls uesf acinga norganization;addressetsh e subjectiveq uestiono f purposea ndt heo ftenc ompetingv aluest hati nfluencemission and strategies;emphasizetsh ei mportancoef externatlr endsa ndf orcesa s theya rel ikelyt o affectt heagency and its mission;attempttso be politicallyr ealisticb y takingin toa ccountth ec oncernas ndp referenceosfinternal and especially external stakeholders;* relies heavily on the active involvement of senior-level managers and sometimes electedofficials, assisted by staff support where needed;* requirest he candid confrontationo f criticali ssues by key participantst o build commitmentto plans;* is action oriented and stresses the importance of developing plans for implementingstrategies; andin terms of both substantivep olicy and managementc apacity.I t integratesa llotherm anagemenpt rocessest o providea systematic,c oherent,a nde ffectivea pproachto establishing, attaining, monitoring, and updating an agency's strategic objectives.Strategic management is integrative in nature in the sense of (a) focusing attentionacross functionald ivisions and throughouvt ariouso rganizationalle vels on commongoals, themes, and issues; (b) tying internalm anagementp rocessesa nd programi nitiativesto desiredo utcomesi n the externale nvironmenta; nd (c) linkingo perational?tactical,d ay-to-dayd ecisionst o longerr uns trategico bjectives.P articularlyg iven thedynamicp olitical and institutionale nvironmentw ithin which many public agenciesoperate, an effective strategic management capability is essential for maintaining orstrengtheningth e fit betweent he organizationa ndi ts externals takeholdersa nd managingfor results within a clearly defined context of mission, mandates, values, and. . vlslon.Strategicm anagementh as been addressedi n the public administrationli terature(Koteen, 1989; Nutt & Backoff, 1992; Rabin, Miller, & Hildreth, 1989; Steiss, 1985)but by no means as extensively as has its most critical component, strategic planning,or otherm anagementa pproaches uch as totalq ualitym anagementH. owever,a morerecenta rticleb y Mlnzanat nd Vlnzant( 1996a) goes a long way towardr efocusinga ppropriateattention on the role of strategic management in the public sector and discussingimplementationis sues and strategiesi n an instructivem anner.The purpose of the present article is to raise awareness of the central importanceof strategic management in government, define the critical elements in a holisticmodel of strategic management, discuss the strategic management process,
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MANAJEMEN STRATEGIS
DI SEKTOR PUBLIK
ConceptsM, odels, sebuah NDP rocesses
THEODORHE. POISTER
GREGORYD. STREIB
Georgia State University
Lffective publica dministrationin usia hasil-orientedm anagementr equires
lembaga-lembaga publik untuk mengembangkan capacityf atau strategicm anagementt, ia centralm anajemen
processt hati ntegratesa ll majora ctivitiesa ndf unctionsa NDD irectst HEMT oward
memajukan agenda strategis organisasi. Manajemen strategis berkaitan
dengan strengtheningth e panjang-termv iabilitya nde ffectivenesso f publik ectoro rganizations
memperjelas hubungan antara manajemen strategis dan proses manajemen lainnya.
Contoh singkat yang diambil dari negara bagian dan lokal unit pemerintah beberapa disajikan
untuk menggambarkan konsep manajemen strategis dan proses dan membuat mereka
lebih mudah diakses untuk berlatih manajer publik.
ManagingS trategicallyi n Pemerintah
Dalam terburu-buru sedang berlangsung kegiatan, tuntutan untuk perhatian bersaing, dan pers
sehari-hari keputusan, fokus pada agenda strategis yang layak dan responsif sebagai pusat
sumber arah, inisiatif, dan prioritas sangat penting mendasar. Sebuah
kemampuan manajemen strategis yang kuat sangat penting karena memberikan baik shortterma
nd-hal lama ense dari directionf atau Kabupaten relativet governmentaal o internal
nvironmentsw dan externale, hich bisa shiftingc ontinually.C hangesi n masyarakat
kebutuhan, tren politik, saya ntergovernmentarle lations, kondisi iscal f, dan warga
expectationsa kembali cenderung altert dia campuran programmaticr esponsibilitiesa nd sumber daya
persyaratan yang dihadapi pemerintah daerah. Mengantisipasi ini mungkin substansial
perubahan Andari daptingt o themp roductivelyr equirest dia ketik forward-lookingf, lexible,
dan tanggapan efektif yang kapasitas manajemen strategis yang kuat dapat membantu untuk
memberikan.
STRATEGICP LANNINGA NDS TRATEGICM ENGELOLAAN
Meskipun manajemen strategis sering dibahas sebagai perpanjangan strategis perencanaan,
dan dua istilah sering bingung dan digunakan interchangeablyt, h ey adalah dengan tidak
berarti identik. Perencanaan strategis telah didefinisikan sebagai "upaya disiplin untuk
producef undamentadl ecisions Andari ctionst topi hapea nd membimbing apa sebuah organisasi
adalah, apa yang dilakukannya, dan mengapa melakukannya" (Bryson, 1988, p. 5). Hal ini memadukan fUturistict hinking,
analisis obyektif, dan evaluasi subjektif dari tujuan dan prioritas untuk memetakan masa depan
program aksi yang akan memastikan vitalitas jangka panjang dan efektivitas organisasi.
Berbeda dengan orientasi yang lebih tertutup sistem jarak jauh tradisional
planninga nd conventionalp rogramp lanning, s trategicp lanningi sa 4'bigp ictures'a pproach
yang
merupakan concernedw ithi dentifyinga ndr espondintgo mereka ostf undamentaisls uesf acinga n
organisasi;
addressetsh e subjectiveq uestiono f purposea NDT heo ftenc ompetingv aluest hati nfluence
misi dan strategi;
emphasizetsh ei mportancoef externatlr endsa ndf orcesa s theya rel ikelyt o affectt ia
biro dan misinya;
attempttso menjadi politicallyr ealisticb y takingin toa ccountth ec oncernas referenceosf NDP
pemangku kepentingan internal dan terutama eksternal;
* sangat bergantung pada keterlibatan aktif dari manajer tingkat senior dan kadang-kadang terpilih
pejabat, dibantu oleh dukungan staf di mana diperlukan;
* requirest ia ikhlas confrontationo f criticali ssues dengan kunci participantst o membangun komitmen
untuk rencana;
* berorientasi aksi dan menekankan pentingnya mengembangkan rencana untuk mengimplementasikan
strategi; Andin baik dari segi substantivep EBIJAKAN dan managementc apacity.I t integratesa ll
otherm anagemenpt rocessest o providea sistematis, c oherent, sebuah pproach nde ffectivea
untuk membangun, mencapai, pemantauan, dan memperbarui tujuan strategis sebuah instansi.
manajemen strategis adalah integratif di alam dalam rasa (a) memfokuskan perhatian
di ivisions functionald dan throughouvt ariouso VELS rganizationalle pada umum
tujuan, tema, dan isu-isu; (b) mengikat internalm anagementp rocessesa nd programi nitiativest
o desiredo utcomesi n nvironmenta externale; nd (c) linkingo perational?
taktis, d ay-to-dayd ecisionst o longerr uns trategico bjectives.P articularlyg iven yang
dynamicp olitical dan institutionale nvironmentw ithin yang banyak lembaga publik
beroperasi, kemampuan manajemen strategis yang efektif adalah penting untuk mempertahankan atau
strengtheningth e cocok betweent ia organisasi ke ndi ts eksternal takeholdersa nd mengelola
untuk hasil dalam konteks yang jelas misi, mandat, nilai-nilai,
dan. . . vlslon
Strategicm anagementh sebagai telah addressedi n terature administrationli publik
(Koteen, 1989; Nutt & Backoff, 1992; Rabin, Miller, & Hildreth, 1989; Steiss, 1985)
tetapi tidak berarti sebagai luas sebagai memiliki komponen yang paling kritis, strategis perencanaan,
atau otherm anagementa pproaches uch sebagai totalq ualitym anagementH. owever, lebih
recenta rticleb y Mlnzanat nd Vlnzant (1996a) pergi jauh towardr efocusinga ppropriate
perhatian pada peran manajemen strategis di sektor publik dan membahas
implementationis menggugat dan strategiesi n sebuah Anner instructivem.
Tujuan dari artikel ini adalah untuk meningkatkan kesadaran akan pentingnya pusat
dari manajemen strategis dalam pemerintahan, menentukan unsur-unsur penting dalam holistik
model manajemen strategis, membahas proses manajemen strategis,
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