Question

In: Operations Management

You have been asked to present your recommendation to the mayor and city manager with respect...

You have been asked to present your recommendation to the mayor and city manager with respect to management of the arena. You must outline a minimum of three primary reasons why the city should continue with public management and you must also demonstrate why private.

Solutions

Expert Solution

Here, let me present my recommendation to the mayor and city manager with respect to management of the arena. City could continue with the public management, there are major three primary reasons, these are as stated below:

  • Public interest will be fulfilled if we pursue public management. City needs several basic facilities and infrastructure like Educational institute, Health care facilities, Road infrastructure and market place for regular commodity purchasing. Here, public interests are to be fulfilled; hence, we require public management that understands needs and expectation of local people.
  • General people constitute family members, local people with different income level. However, people will different income level have right to avail basic facilities within the city area. So, they can feel that things or items or services are affordable, so all people can avail such public services. For example: people could easily afford public transport, hence, taking Cab could charge them more, so, they will be under stress if they avail chargeable services like hiring Cab or Taxi. So, low pricing or affordability could be another reason.
  • Public management will keep more focus on socio economic development. Local civilization could retain their culture and various social needs are fulfilled over time. People could put their voices and ideas as to make the public services accessible and reachable to the people.

Private management could be of greater choice under some circumstances, such reasons are as explained below:

  • For every service, we need to improve service level. To improve service level, sometimes private and public partnership could help as public administration or management would get connected to private organization that are specialized in education, healthcare management, transportation development. Hence, we may see benefits with interaction of private sector.
  • Using privatization, we could take more care about needs of selected people. As, there are people who expect high and need specific requirements to be fulfilled. In such situation, privatization could keep more close focus on the needs and expectation of individual people or selected people.
  • Some services could take more cost and some kind of people could also afford, as they have good purchase power. Here, such kind of people mostly keeps more focus on getting improved services and taking customized needs. Hence, in such context, privation would be of great help.
  • Privatization could create stronger transactional process where people need to spend as to receive needed facilities and in other side, it could create quality employment that builds close focus on business and profit generation. Hence, society and government could receive benefits through GDP sharing.

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