Managerial discretion in the public sector is determined by specific grants of authority and constraints set by the OMB, while private sector discretion differs due to factors like unlimited funds. Public sector managers must understand budget processes and exercise authority effectively.
Managerial discretion in the public sector is mainly distinguished from the private sector based on specific grants of authority. Government bureaus operate within budget constraints set by the Office of Management and Budget (OMB) and have limitations on spending unless it involves entitlement programs that have unlimited funds guaranteed by law.
Managers in the public sector face challenges in controlling budgets due to factors beyond their control, such as economic conditions and rising costs. Understanding budget-making processes and having clear grants of authority are crucial for public managers to navigate their roles effectively.
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