Public value describes the value that an organization or activity contributes to society. The term was originally coined by Harvard professor Mark H. Moore who saw it as the equivalent of

shareholder value Shareholder value is a business term, sometimes phrased as shareholder value maximization. It became prominent during the 1980s and 1990s along with the management principle value-based management or "managing for value". Definition The term "shar ...

public management Public Administration (a form of governance) or Public Policy and Administration (an academic discipline) is the implementation of public policy, administration of government establishment (public governance), management of non-profit establ ...

. Public value is supposed to provide managers with a notion of how entrepreneurial activity can contribute to the common good. Nowadays, public value is no longer limited to the

public sector The public sector, also called the state sector, is the part of the economy composed of both public services and public enterprises. Public sectors include the public goods and governmental services such as the military, law enforcement, inf ...

, but is used by all types of organization, including

non-governmental organization A non-governmental organization (NGO) or non-governmental organisation (see American and British English spelling differences#-ise, -ize (-isation, -ization), spelling differences) is an organization that generally is formed independent from g ...

s and

private sector The private sector is the part of the economy, sometimes referred to as the citizen sector, which is owned by private groups, usually as a means of establishment for profit or non profit, rather than being owned by the government. Employment The ...

firms. Therefore, the public value researcher Timo Meynhardt from the University of St. Gallen and HHL Leipzig Graduate School of Management uses the term to generally raise the question about organizations' contribution to the

common good In philosophy, economics, and political science, the common good (also commonwealth, general welfare, or public benefit) is either what is shared and beneficial for all or most members of a given community, or alternatively, what is achieved by c ...

. He believes that current management concepts, such as

, stakeholder value, customer value, sustainability or corporate social responsibility, should legitimize themselves in regard to their impact on the common good. In his (social-)psychological-based concept, public value emerges for individuals from the experiences made in social structures and relationships. Hence, it can be seen as a prerequisite and a resource for successful living.Meynhardt, T. (2009). Public Value Inside: What is Public Value Creation? ''International Journal of Public Administration'', 32 (3-4), 192-219.

Definitions

Public value is value for the public. It equates managerial success in the public sector with initiating and reshaping public sector enterprises in ways that increase their value to the public in both the short and the long run. Moore, 1995 According to a recent systematic review of empirical public value research, public value has four key dimensions: outcome achievement (i.e. the extent to which a public body is improving publicly valued outcomes across a wide variety of areas), trust and legitimacy (i.e. the extent to which an organisation and its activities are trusted and perceived to be legitimate by the public and by key stakeholders), service delivery quality (i.e the extent to which services are experienced as being delivered in high‐quality manner that is considerate of users’ needs), and efficiency (i.e. the extent to which an organisation is achieving maximal benefits with minimal resources). Public values are those providing normative consensus about (1) the rights, benefits, and prerogatives to which citizens should (and should not) be entitled; (2) the obligations of citizens to society, the state and one another; and (3) the principles on which governments and policies should be based. Public Value is the combined view of the public about what they regard as valuable''.'' Talbot, 2006. Value for the public is therefore situated in relationships between the individual and society, founded in individuals, constituted by subjective evaluations against basic needs, activated by and realized in emotional-motivational states, and produced and reproduced in experience-intense practices. Meynhardt, 2009

In the public sector

The research program on public value was kicked off by Professor Mark H. Moore of Harvard's Kennedy School of Government, who published a book on the subject, ''Creating Public Value. Strategic Management in Government'', in 1995. In this sense, public value can be instituted as an organising principle in a

organisation, providing a focus in the context of which individual employees are free to pursue and propose new ideas about how to improve the working of the organisation, in terms of efficiency or services. Public organisations seeking to use public value as a principle need to create a corporate culture in which the pursuit of public values by employees is rewarded just as pursuing shareholder value is rewarded in private

corporation A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and ...

s. The concept has been taken up initially by academics,

think tank A think tank, or policy institute, is a research institute that performs research and advocacy concerning topics such as social policy, political strategy, economics, military, technology, and culture. Most think tanks are non-governmenta ...

s and

NGO A non-governmental organization (NGO) or non-governmental organisation (see spelling differences) is an organization that generally is formed independent from government. They are typically nonprofit entities, and many of them are active in h ...

s, and later by a number of public sector organisations in the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...

and other countries. In 2004 it was used by the

BBC #REDIRECT BBC #REDIRECT BBC Here i going to introduce about the best teacher of my life b BALAJI sir. He is the precious gift that I got befor 2yrs . How has helped and thought all the concept and made my success in the 10th board exam. ...

...

Definitions

In the public sector

In the private sector

Demarcation from related concepts

References

External links