The Make-or-Buy Decision in Government Organizations
The “make or buy” decision in government organizations involves the fluctuation between developing new goods internally or purchasing them externally from those with more knowledge in the specific sphere. This choice has many implications for the government as the costs may vary, and some political issues may arise. Therefore, critiques from other governmental organizations may occur, and the rating inside and outside the country might decrease.
Cost and Market Analysis Considerations
The prices and costs of production may be high, and depending on the type of product, it is important to conduct a market analysis to ensure stability in the financial operations. Hill & Lynn (2023) stated that the cost assessment should include direct spending, maintenance fees, staff training, and other related expenses. Additionally, the analysis should consist of long-term costs to allow companies to survive in unstable economic situations. Cost considerations are essential but should not be fully prioritized in decision-making. Therefore, I can critique that only a long-term perspective should be observed, as short-term costs can also positively affect product quality and control.
Quality Control and Regulatory Implications
It is crucial to set regulations for control and quality to make a better-balanced approach more effective. For example, Cohen (2004) showed that government organizations are responsible for providing high-quality services to the public. Consequently, assessing the quality that can be provided to the final user is important while considering where to make or buy. However, the critique factor related to this idea is the lack of opportunities while paying strong attention to quality checks.
Personal Experience
In my experience, when the government organization I was working with had to choose “make or buy,” they started developing new software systems to improve public service. When clients’ wants and needs were retrieved, it became easier to decide that a new product could bring more success to the company. In conclusion, it might become complicated to understand whether the organization needs to develop or purchase a new product. However, making decisions by conducting deeper analyses of quality and price regulations becomes easier.
References
Cohen, s. (2004). The limits to contracting: When to make instead of buy. ResearchGate, 1-46. Web.
Hill, C. J., & Lynn, L. E. (2023). Structure. Public management: Thinking and acting in three dimensions (pp. 185-227). EBSCO Publishing.