Organizations around the globe can take numerous fronts that are either public or private. These organizations have profound similarities in that they aim at equitable service delivery based upon their interests and needs from the public sectors they occupy. A public organization can be referred to as a pure governmental bureaucratic agency, a government profit-oriented corporation while a private sector organization gets termed as a profit business firm. Public sector organizations get predominantly controlled by political forces and not market values, thereby developing unique goals such as equity and accountability (Gerrish, 2016). Market values mostly influence private organizations hence are profit-centred. The goods and services offered by private organizations are dependent on the market situation and follow a corresponding demand and supply mechanisms. Private products and services are, therefore, excludable and rival. Public organizations confront only to the minimal threat posed by rival companies as they do not operate in a competing market system. The government can also modify pubic organizations' operations at will. As such, public ownership cannot be transformed into individuals, while private organizations maintain recognized ownership.
Public organizations are mechanical in nature and perform better in a stable environment, while private organizations are organic and work best in unstable environments. Decision making in public organizations is in line with incrementality. The incrementality can get explained by public organizations performing roles on incrementalism. For example, perfomance getting aligned with the government's budget. Private organizations on their side make decisions based on rational thinking (Rahman, Amran, Ahmad, & Taghizadeh, 2016).
The difference in Employee Management in Private and Public Organizations
In private organizations, owners have a direct monetary influence on incentives aimed at monitoring and controlling worker behaviors; hence workers in private organizations are more hardworking because of incentives offered. In public organizations, managers have little to gain from expending their efforts, thus lowering their workers' efficiency. Private sector workers, therefore, develop a heightened level of energy compared to public workers (Rahman, Amran, Ahmad, & Taghizadeh, 2016). Moreover, public sector employees show lowered organizational commitment. Public organizations workers tend to feel more secure about their positions and may get reluctant about eventual dismissal.
Lessons Learnt from the Discussion of Public and Private Organizations
Both public and private organizations are concurrent on the need for equitable service provision and goods delivery while attaining profits. As such, profit acquisition in these diverse organizations are different because they operate in different resource gaps and are mandated to achieve their set out objectives based upon their organizational structures, decision-making skills and goods and services produced. The issue enhances creativity while improving productivity in terms of customer satisfaction and worker productivity. Work becomes an enjoyable adventure due to incentives being earned based on performance growth and skills.
In summary, it is notable how the various sectors align to achieve proper resource utilization by bearing similarities and differences in their operating networks and stakeholders' involvement. Knowledge acquisition, therefore, becomes a consolidated effort whose purpose is to promote worker productivity. Market trends are, therefore, critical implements in such areas.
Gerrish, E. (2016). The Impact of Performance Management on Performance in Public Organizations: A MetaAnalysis. Public Administration Review, 76(1), 48-66. https://www.researchgate.net/profile/Ed_Gerrish/publication/281174382_The_Impact_of_Performance_Management_on_Performance_in_Public_Organizations_A_Meta-Analysis/links/564a3e2f08ae127ff9868cbe/The-Impact-of-Performance-Management-on-Performance-in-Public-Organizations-A-Meta-Analysis.pdf
Raharjo, H., & Eriksson, H. (2017). Exploring Differences between Private and Public Organizations in Business Excellence Models. International Journal of Operations & Production Management. https://research.chalmers.se/publication/248780/file/248780_Fulltext.pdf
Rahman, S. A., Amran, A., Ahmad, N. H., & Taghizadeh, S. K. (2016). Enhancing the wellbeing of a Base of the Pyramid Entrepreneurs through Business Success: the role of Private Organizations. Social Indicators Research, 127(1), 195-216. https://www.academia.edu/download/42388716/In_press_2015_Enhancing_the_Wellbeing_of_Base_of_the_Pyramid.pdf
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Essay Example on Public vs. Private Orgs: Delivering Equitable Service for All. (2023, May 23). Retrieved from https://proessays.net/essays/essay-example-on-public-vs-private-orgs-delivering-equitable-service-for-all
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