Abstract
The purpose of this study was to compare strategies employed by public and private sector managers during changing economic conditions and to identify similarities and/or differences. The specifics of the study were to determine: (1) the strategies public and private managers adopted during changing economic conditions, (2) the length of time the strategies were used during the five-year study period from 1987-88 to 1991-92, (3) the managers' perception of the level of success, (4) whether the strategies were adopted proactively or reactively, and (5) the related level of success from proactive use. This study was based on the descriptive research methodology. Data were collected from two sources: telephone survey and secondary financial data analysis. The research population consisted of nine California cities with a population of more than 250,000 (public sector) and one company from each of the nine cities (private sector). The respondents to the telephonic interview included city managers, CEOs. The secondary financial data analysis utilized public records and government documents. Three statistical tests were used to evaluate data: chi-square, t-test, and Pearson Correlation Coefficient. The chi-square test results indicate a preference for two strategies by public organizations: downsizing and reducing service levels. The results of the t-test indicate no significant difference between public and private organization on the level of success perceived by managers. The results of the Pearson Correlation Coefficient indicate no "strong" relationship exists between the level of success and the number of years the strategy was utilized. The secondary financial data analysis for the study period indicated that the public sector had experienced no decline, while the private sector had three companies showing decline: two companies, low decline, and one company, moderate decline. Overall, major differences did not exist in the use of strategies by the public and private organizations in response to changing economic conditions. The level of proactive use of a strategy was high for both the public and private sectors and there were no drastic differences in the perceived level of success from proactive use of a strategy between the two sectors. Finally, growth/decline performance levels and numbers of strategies adopted did not show major differences.