Mixed Management: Best of Two Types of Management

In this post I will explain how public and private managements coexist in a single management. This is the Mixed management .

To guarantee success in the mixed company, it is important to pay attention to the management of each of the processes and resources of your company.

For this reason, today I will describe various aspects that will help you understand Mixed management. 

These are the points that I will explain today:

• What is Mixed management?
• Objectives of the Mixed management
• Characteristics of the Mixed management
• Principles of Mixed management
• Advantages of Mixed management

The Mixed management combines private and public management in one.

Companies must manage, in the best way, the resources they have. For this , business management is essential .

But, the management must adapt to the type of company: Public, Private or Mixed.

In this article we are dedicated to the Mixed or Quasi Public management, as it is also called.

What is Mixed management?

The mixed management allows obtaining financial and fiscal advantages from the State.

Much is said about private and public companies, but how many times have you asked yourself about the Mixed management?

The Mixed management is the science that is in charge of managing resources in organizations that have private and public capital.

In general, in this type of management the state finances a large part of the activities. Its purpose is to provide a service that benefits society, but that in turn generates income.

This type of social management can be understood as a new institutional form that combines different organizations to produce a new mode of decision-making.

Based on this, it is responsible for carrying out the entire administrative process to guarantee the public interest with the efficiency of private management.

A very common example of this type of management is that carried out in the oil industries. It is also seen in basic service companies, such as water and electricity.

Here the corporate monopoly is reformed, but the efficiency provided by the management in the private sector is maintained.

Management in these types of companies will be based on coexistence, that is, seeking a balance between the participation of shareholders in management.

Objectives of the Mixed management

The State and private shareholders have totally different objectives when participating in joint ventures. Let’s see briefly:

On the part of the State :

• Intervene in the economy to improve the quality of life of society.
• Guarantee that the company’s processes are framed to benefit society. In this sense, the Government is more interested in the operation than the economic benefits that are generated.
• Contribute to the fulfillment of the plan that the State has, serving the community through a company.
• Improve the services that were initially controlled by the State, benefiting from the experience in the area, technology and knowledge of private companies.

By investors or individuals:

• Reduce the risk due to the economic activity that is being carried out. For more information you can enter the article Risk management.
• Obtain financial and fiscal advantages from the State. For example, exemption from customs taxes, special fees.
• Obtain as much income as possible by using resources.
• Decrease the production costs of products or services.
• Meet customer expectations.

Characteristics of the Mixed management

These are some of the characteristics of this type of management:

• The capital stock is made up of contributions from shareholders and contributions from the State or government entities.
• Its purpose is to carry out industrial or commercial activities with which they will provide a public benefit.
• It is linked to a public body.
• The mixed management will be governed by private law with certain principles of the public.
• It represents a great opportunity for those people who require a large amount of money to be in the market.

Principles of mixed management

Principle of economics :

Being an organization with a private figure, it seeks to optimize the income generated as a product of commercial activity.

Principle of speed :

Public administrators must manage resources without prolonging deadlines and without creating superfluous procedures.

This translates into greater effectiveness in the internal processes of the company, since fewer resources would be used to meet the objective.

Principle of effectiveness :

This type of management seeks to comply with the provisions of the mission, vision, objectives and goals at each level.

In this sense, following this principle implies that the actions will be aimed at achieving excellence in the product or service offered and in the internal workings.

Principle of efficiency :

It refers to using the resources owned by the joint venture in a correct way, so that both parties benefit.

For the state, it means using the least amount of material and financial resources for public policy.

While for other shareholders, this principle is aimed at reducing costs for the production of the good or provision of the service.

Principle of ethics :

People who work in joint ventures must exercise their functions based on morality.

Principle of accountability :

The administrator must report on the state of funds granted by the nation since they come from the taxes of citizens.

It is essential to indicate how much was received, in which items the resources were used, what was achieved and in how long.

In this way, continuous improvement of the processes in the company is promoted.

Principle of transparency :

The actions of the officers and the activities of the company must be public, that is, information cannot be hidden.

Any citizen has the right to request information on the development of the organization’s activities.

Advantages of mixed management

• Mixed management increases the likelihood that the organization will be competitive. This is due to the efforts made by the parties to innovate.
• Through the Management, the functions are supervised and access to means is promoted to improve excellence in each of the company’s areas.
• With a good mixed management you not only manage to increase the income of your company, but you also contribute to improving the living conditions of society.
• Increases the feasibility of the business idea. This is because administrative processes are applied in an organization that has the full backing of the nation and private investors.

Conclusions:

management is a science that is in charge of managing resources in public, private and mixed entities.

In the mixed management, success will depend on the coexistence of the private and public sectors.

Mixed management is the planning, organization, control, execution and evaluation of resources with the aim of two fundamental objectives related to each other:

• The first objective is to maximize the income they obtain from the production of a good or service.
• And the second, to satisfy the needs of society.