Performance, Strategy and Challenge in Public Sector

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Strategic management in an organisation is the process of coming up with decisions and applying
them to achieve the company’s strategic objectives (Durmaz & Dusin, 2016). The process of
strategic management allows an organisation to set strategic objectives and long-term goals that
will maintain its focus and bring in competitive advantage or efficiency. Both large and small
organisations need to go through a similar strategic management process. Precisely, they need to
understand their current position in the industries or environment they operate in. They also need
to make projections on the positions they want to take in future (Rosenberg & Ferlie, 2016). The
projection will act as a guide to allow them to make effective strategies that will facilitate the
achievement of the strategic objectives. According to Ginter, Duncan & Swayne (2018), the
managers have the responsibility of selecting the best strategy to implement and guarantee the
firm a better performance.
Strategic management in an organisation is a continuous process that is made up of four major
stages. The first stage is environmental scanning (Aldehayyat, 2015). Scanning the business
environment is imperative as it allows for the detection of the new developments that might have
an influence on the organisation. In addition, scanning the environment for both private and
public sector organisations allow the management team to establish the existing relationship
between the organisation and its internal and external environment (Joyce, 2015). Scanning
exposes the threats and opportunities of the organisation that are influenced by various external
environment factors.
To critically analyse the internal environment, organisation can apply the SWOT analysis tool.
As stated by Joyce (2015), internal environment analysis will focus on factors such as the
relationship between employees, relationship between the management and the employees, and
also the relationship between the management and other stakeholders. The tool also helps in
assessing the level of accessibility to resources and the impact of the organisational structure.
Poister and Streib (2018) add that PESTEL (political, economic, social, technological, ecological
and legal factors) analysis and Porter’s five forces analysis tools are instrumental in assessing the
effect of external factors on the company’s operations. Utilisation of information from the
external environment enables the management to come up with more effective short-term and
long-term plans.

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The second stage of the strategic management process is strategy formulation. Strategy
formulation involves selecting the best strategy to guide the organisation to achieving the
strategic objectives (Williams & Lewis, 2008). Examples of strategies that an organisation may
select may be based on Porter’s generic strategies. Cost leadership strategy and differentiation
strategy may be selected depending on the long-term goals that a firm is seeking to achieve.
Strategy implementation is the third stage. Here the chosen strategy is put to action so that the set
objectives and goals can be realised. Strategy implementation involves the mobilization of
company’s resources and capabilities to facilitate the achievement of the strategic goals
(Rothaermel, 2018). The systems, culture and structure of the organisation need to be in line with
the selected strategy. Policies and programs should also be put in place to ensure that the
strategy is constantly improved and that all important stakeholders are involved (Fernandez &
Rainey, 2017). Strategic evaluation and control is the final stage. In this stage the team compares
whether the achieved results vary from the set strategic objectives as revealed by Rosenberg &
Ferlie (2016). If they vary, then the goals will be reexamined or the measurement criteria
reviewed. However, if the goals have been achieved employees are rewarded.
Public sector has greatly implemented strategic management process in effective public service
delivery (Joyce, 2015). A good example is in the delivery of high-quality health services to the
citizens. Public health organisations have clearly stated vision and mission statements. The
statements are supposed to act as a constant reminder to all employees on what the organisation
is seeking to achieve. Before a health care institution or program is established, the government
carries out a detailed environmental scanning to find out the health care needs of the society
(Wilburn, Vanderpool & Knight, 2016). For example, the government may find out that some
social factors such as low-income bar the members of the society from accessing quality
healthcare services. Therefore, it is important to come up with a strategy that will ensure that
equality is observed in terms of equal access to quality health care services.
In the above case, the public sector will need to come up with a cost leadership strategy. A good
example is the Affordable Care Act that the United States government came up with to ensure
that citizens have access to an affordable health insurance (Gaffney & McCormick, 2017). The
implementation of the program took place through the expansion of the Medicaid program. The
government also availed all the resources that were required to facilitate the program. On the

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final stage of the strategic management process, the strategy has succeeded in delivering its
mandate. Most citizens were able to access quality heath care services at an affordable cost and
also enjoy premium tax credits (Entress & Anderson, 2020). From the feedbacks received from
most citizens, they are impressed by the strategy because it has allowed them to have access to
quality healthcare services.
The public sector is also characterized by the challenge of lack of efficiency and effectiveness in
the provision of services. Efficiency in this context takes into consideration the extent to which
public organisations produce a given output while using the least possible amount of resources.
Effectiveness, on the other hand, revolves around the amount of end product delivered which in
the public service context pertains to amount and speed of services (Curristine et al., 2007). Most
public sector organisations tend to be associated with bureaucracy and slow service delivery
(Zaidi et al., 2011).
Through strategic management, public sector organisations are overcoming the above challenges.
For instance, the application of the PESTEL framework leads to identification of new
technologies that can enhance service delivery. In this light, an increasing number of public
sector organisation such as NHS and Home Office Immigration in the UK have adopted
digitization and now offer service through e-government. Research shown that application of e-
government significantly reduces the amount of resource use while enhancing the speed of
service delivery (Carter et al., 2016). Thus, the process of strategic management has the potential
to greatly enhance efficiency and effectiveness in public service.
Part 2: Performance Management in Organisations
Performance management in an organisation refers to the method of constantly reviewing and
improving individual employee performance to improve the effectiveness of the organisation
(DeNisi & Murphy, 2017). The performance of an organisation is the average of individual
employees’ performance. Employees need to set individual goals and targets that will motivate
them to improve their level of performance. These individual goals need to be aligned with the
company’s goals and strategic objectives (Gupta & Upadhyay, 2012). Also, performance
management according to Van Dooren, Bouckaery and Halligan (2015) entail incorporating and
using performance information for decision making.

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Some organisations combine their performance management system with an incentive
management program. Gerrish (2016) establishes that the performance management system and
incentive management program define the role of employees, reward good performance and
review employee performance. Effective performance management requires a firm to come up
with a system that continuously measure and allow for the improvement of employee
performance (De Waal, 2013). Therefore, performance management is a continuous process.
This is because organisations desire to keep on improving their performance and remain
competitive in the market. Attention should be given to the development and growth of
employees’ careers. The management need to organise for trainings and workshops to sharpen
the employees’ skills and increase their knowledge.
As stated by Lee and Moon (2017), performance management in organisations plays a key role
in ensuring that employees are always engaged in their work. A yearly performance appraisal is
also a system of monitoring the performance of employees (Aulich, Halligan & Nutley, 2020).
However, the yearly performance appraisal encounters a great challenge when it comes to
keeping employees engaged. Throughout the year employees do not receive any feedback from
the management about their performance. They end up relaxing and their performance keeps on
deteriorating. Goals to be achieved are given at the beginning of the year and performance is
assessed after 12 months. In essence, 12 months is a long period within which employees’
engagement can be diminished.
Performance management system allows for monthly and quarterly assessment of employee and
organisational performance. According to Aulich et al. (2020), employees are able to constantly
improve on their performance if they receive feedback quarterly or monthly. The incentive
program also motivates them to work towards achieving the set targets (Lee & Moon, 2017).
Through the monthly and quarterly feedbacks, employees are able to estimate how far they are
from achieving the set goals. They are able to estimate the extra effort they are supposed to put
to ensure the strategic goals have been realised.
Akhtar and Sushil (2018) add that performance management promotes talent retention and
reduction in employee turnover. Performance management requires the management team to
hold meetings frequently with employees to discuss their performance. The management comes
up with solutions that help employees improve on their performance. The leaders also organise

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for training and workshops to equip employees with more skills and knowledge. This is a
demonstration of great concern about the employee career development. Employees like working
in organisations that are interested in helping them grow their careers (West & Blackman, 2015).
Therefore, they will stick to such organisations and keep climbing the career ladder. Receiving
incentives for a job well done also motivates the workforce to keep working hard and improve
their performance. Eventually the overall performance of the organisation improves. The
constant development of people in the organisation allows the management to develop competent
leaders from within the firm (Gerrish, 2016). This is an advantage because the company is able
to cut down on hiring and onboarding costs. There will be no need to hire new leaders from
outside. The existing ones are already used the culture of the organisation and it will be easier for
them to start delivering their services.
Lee and Moon (2017) explains that performance management needs to be extensively applied in
delivering of public services. The government should be committed to ensuring that citizens have
access to high quality services. Therefore, it is important for the performance of the public
officers to be managed so that they can keep on improving on their level of service delivery.
Using the example of the education sector, the government sets up learning institutions that are
supposed to offer high quality education services to citizens. In order to facilitate better
performance of employees such as teachers it is imperative for the relevant public sector
organisation such as ministry of education to facilitate workshops where the teachers can
enhance their skills. Performance in this context needs to be linked to outcomes (Rutherford &
Rabovsky, 2014). In the UK, performance management within the education system is such that
performance indicators are employed. For example, in primary level schools the performance of
pupils and schools is based on a measure such as percentage of pupils who have achieved the
expected standards of Maths and English reading. For higher education levels, the percentage of
students going into employment is also assessed (UK Government, 2016). These performance
measures are meant to enhance accountability with the education system as well as identify
potential causes of poor performance. Consequently, measures to enhance performance can be
identified.
Recent research indicates that public sector organisations have in recent times borrowed heavily
from performance management practices of the private sector (Hyndman & Liguori, 2016). In

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this case, through New Public Management (NPM) reforms public sector organisations have
realized the need to explicit use of standards and measures of performance management. There is
also greater emphasis on cost control, output control and results as opposed to an excessive focus
on compliance with administrative procedures (Vignieri, 2018). Such reforms and focus on
results are for instance evident from NHS in the UK. In this case, NHS has introduced the use of
key performance indicators (KPI) to regularly assess performance based on certain performance
objectives. As an example, KPIs are used to measuring the success of NHS screening
programmes. In 2019, the organisation for instance sought to ensure over 97% antenatal
screening for fetal anomalies. The results at the end of the year indicated that over 98% success
had been achieved (UK Government, 2020). Such performance targets ensures that public
service organisations perform based on specific metrics and remain accountable.
Part 3: Case Study- strategic management in organisations
The management of Covid-19 by Taiwan’s Ministry of Health and Welfare
Covid-19 pandemic is a catastrophe that has affected the world in a substantial way. The
economies of most countries have been hit hard by this pandemic following closure of key
sectors of the economy such as hospitality and reduced business activities across other sectors.
Asia is one of the regions that have been affected greatly by the pandemic. However, Taiwan in
China through the Ministry of Health and Welfare is recorded as one of the places that have
managed to control the effects of the pandemic. By March 2021, Taiwan had only recorded
slightly more than 1000 cases among its population of 24 million people (Steinbrook, 2021). The
economy of Taiwan has not been significantly affected by the pandemic. This can be attributed
to a host of strategic measures adopted by the Ministry of Health and Welfare organisation right
from onset. Examples include timely contact tracing, quarantining of high-risk contacts, strict
enforcement of measures such as physical distancing and wearing of face masks (Ritchie, 2021).
In 2003, Taiwan faced an almost similar pandemic when there was a severe acute respiratory
syndrome (SARS). The pandemic in 2003 significantly affected Taiwan given that the Ministry
of Health and other government agencies were ill prepared (Yen et al., 2014). This time, Taiwan
has however borrowed some strategies that had been employed in the previous pandemic. This
led to effective management of the Covid-19 pandemic.

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In the current pandemic, Taiwan’s ministry of health acted swiftly and in a well-coordinated
fashion in large due to the prior knowledge on how such situations ought to be handled.
However, in other regions such as Europe and the United States (US) there was panic and
confusion as this was being experienced for the first time (Ruiu, 2020). These regions began to
notice that the measures taken by Taiwan and other countries in Asia had been effective in
preventing the virus from spreading further. Some of these measures include wearing of face
mask, early travel restrictions, mass testing, screening of contacts, proactive communication to
citizens, setting up of clear management strategies and also strict quarantine for those exposed to
the virus (Steinbrook, 2021). The public health sector in Taiwan also came up with a universal
healthcare system that was meant to ensure that those infected receive the necessary care and
treatment. At this point, the focus of the government was on ensuring that all the citizens receive
healthcare services irrespective of their financial status (Ritchie, 2021). In this case, the ministry
of health was well aware that failing to ensure equity in access to health care services had
potentially negative outcomes on the entire population.
The World Health Organization (WHO) has commended Taiwan given that it has succeeded in
reducing the number of infections. Countries have been advised to borrow a leaf from Taiwan
when it comes to effective management of the pandemic (Focus Taiwan, 2020). In large, Taiwan
has attributed its success to transparency and cooperation from the citizens when it comes to
complying with the measures issued by the government. The autocratic system of governance in
Taiwan made it easier for the government to enforce the safety regulations. Mass testing was
carried out as a strategy to combat the corona virus pandemic. Clear communication and
transparency has also helped greatly in handling the pandemic. Citizens received notifications on
their phones to alert them of any new infections in their area. The health officials were also
holding daily broadcasts to communicate to the citizens on the progress made in combating the
pandemic and inform them of the number of new infections and deaths recorded (Steinbrook,
2021).
Application of Strategic Management Concept to the case of Taiwan’s Ministry of Health
and Welfare
In the public health sector, the ministry of health as a public sector organisation has the
responsibility of ensuring that the public is protected from the adverse effects of a pandemic. In

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the wake of the Covid-19 pandemic, ministry of health organisations was assigned the
responsibility of ensuring that the effects of the pandemic have been controlled effectively
(Mazzucato & Kattel, 2020). The associated vision was to have a pandemic free Taiwan and
guarantee citizens of good health. The goal of the public health care system was to ensure that all
citizens can comfortably resume their normal lives.
The Ministry of Health and Welfare as a public sector organisation in Taiwan was swift in
applying strategic management concepts to control the pandemic. Environmental scanning was
very important in understanding the measures to out in place. According to Ginter, Duncan &
Swayne (2018), environmental scanning involves analysing the external and internal
environment. Essentially, this organisation scanned the internal and external environment of the
health sector to come up with effective responses. The SWOT and PESTEL tools were important
in helping the organisation understand the pandemic and also the best strategies to implement.
For instance, based on the SWOT framework, the pandemic posed a major threat to human life
given that the virus is highly infectious. Taiwan had an advantage which can be considered as
strength. It had already gained experience on how to deal with this pandemic as it had
successfully dealt with a similar one in 2003 albeit with significant challenges (Yen et al., 2014).
In the above context, strategic management tools help in identifying an organisation’s
weaknesses and possible solutions in order to enhance the outcomes of new strategies. For
example, one of the weaknesses of Taiwan’s ministry of health during the SARs pandemic was
that the organisation did not have a cross-agency integration mechanism. As a result, it was
difficult to work with other sectors such as the private sector to handle the pandemic. However,
based on an understanding of such weakness the ministry of health put in place measures to
collaborate with the private sector including making necessary organizational adjustments. In
order to enhance preparedness, the organisation also regularly conducted outbreak drills
(Ministry of Health and Welfare, 2021). From this perspective, the use of SWOT analysis can
enhance preparedness for formulating and implementing new strategies.
From the social dimension of the PESTEL framework, the ministry of health in Taiwan knew
that citizens were aware of the dangerous effects that had come as a result of pandemics due to
experiences with the SARS pandemic in 2003. In this case, there were high chances that the
public was willing to cooperate with the ministry of health by following all the regulations and

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guidelines issued to prevent the virus from spreading further. This was opposed to what was seen
in other countries such as the United States. Citizens were less cooperative and were not keen on
following all regulations issued by the government (Prasad, 2020). They did not understand the
danger they were getting exposed to. They had not experienced such a pandemic before. In
essence, understanding the public perceptions towards the pandemic meant that Taiwan’s
ministry of health could formulate effective measures to encourage compliance with safety
guidelines and consequently better health outcomes for the public.
Strategy formulation is the second step that Taiwan’s ministry of health took in the strategic
management of the pandemic. Poister and Streib (2018) explain that strategy formulation
involves planning and making strategic decision without prior to putting them to action. The
ministry of health in collaboration with other government agencies in Taiwan had to formulate
strategies that would be effective in controlling the pandemic. In this case, mass testing is one of
the strategies that were formulated where a huge number of people would be tested on a daily
basis to single out those who are already infected (Ritchie, 2021). Thereafter, contact tracing was
to be carried out whereby the ministry of health would follow up on the individuals who have
recently come into contact with the infected person. The infected persons together with their
close contacts will be isolated and quarantined.
Another key aspect of effective strategy formation is to apply the most appropriate plans or
causes of actions based on the available alternatives (Rosenberg & Ferlie, 2016). During the
pandemic, Taiwan’s ministry of health had the option of working on its own to manage the
pandemic or work with other agencies. One of the challenges of collaborating with other
agencies or organisation is that there might be a loss of control due to coordination problems
(Curnin et al., 2015). However, an evaluation of Taiwan’s ministry of health indicates that in
evaluation of the strategic courses of action it was established that collaborating with other
government agencies and private sector would lead to better outcomes. Consequently, the
organisation opted to contract private sector organisations to help in manufacturing and
distribution of face masks (Ministry of Health & Welfare, 2021). Ideally, such an action if
adopted in the long-term to handle similar issues such as Covid-19 can be strategic in the sense
that it allows for quicker solutions. The citizens benefit from reduced waiting time for crucial
medical supplies as well as an easier and more convenient purchasing process.

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Strategy implementation, on the other hand, is seen in the instance where the public health
experts start putting the strategies into action. On this note, Poister (2010) indicates that strategy
implementation in the public sector first requires that adequate resources by allocated towards
undertaking the strategy. In Taiwan’s case, significant sums of financial resources such as NT$4
billion were allocated for fighting the pandemic (Taiwan Centres for Disease Control, 2021). In
terms of actual implementation, the health organisation in Taiwan made it mandatory for people
to wear face masks when showing up in public places for example when using public transport.
All members of the public were expected to observe social distancing and avoid public
gatherings. Testing facilities were also established to facilitate mass testing. An isolation and
quarantine strategy was promptly implemented whereby infected people and the people they had
come into contact with were taken away to isolation facilities (Steinbrook, 2021). They were
treated and remained under observation until they are declared fit enough to interact with other
members of the society.
As part of the strategic management process, it is important that the success of a given strategic
initiative be assessed on the basis of its outcomes (Poister & Streib, 2018). The strategies
formulated by the Taiwan’s ministry of health can be considered as highly effective because of
various outstanding results. For instance, only a small number of Covid-19 cases and deaths were
reported despite Taiwan being in close proximity to Wuhan which was the epicentre of the
pandemic. Other ministry of health organisations in the United States and Europe also
implemented similar strategies but containing the virus has been a great challenge. In such a
case, it is evident that good leadership is important when it comes to successful implementation
of strategies (Joyce, 2015).
Increased transparency has also aided in smoothening the strategic management process in
Taiwan. The ministry of health did not hesitate to give clear information to the citizens about the
pandemic. The citizens are well informed about the methods of transmission of the infection and
also the appropriate prevention methods. In the daily broadcasts by the health officials, they are
reminded of the goal of minimising the number of infections. They are also briefed in the
milestones that the government has made in achieving this goal (Steinbrook, 2021). In essence,
such as activities are consistent with the strategy evaluation dimension of strategic management
whereby the outcomes as a result of strategy implementation and the goals set at the beginning

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are compared (Rosenberg & Ferlie, 2016). This helps in identifying the effectiveness of the
strategies and making necessary amendments to improve their efficiency in future. Overall, the
strategies implemented by Taiwan’s ministry of health were successful because they helped in
reducing the level of infections despite the high risks.

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