Differences Between Public and Private Sectors
The Differences between
Public Sector and Private Sector
[pic]
by
Robyn Z. Abdusamad
Dr. Deborah LeBlanc
PAD 620 – Research Paper
August 23, 2010
The Differences between
Public Sector and Private Sector
SUMMARY
When we examine public sector versus private sector, plenty of differences come to mind. In defining each, we learn a private sector in an economy consist of all businesses and firms owned by ordinary members of the general public. It also consists of all the private households in which people live. The public sector in an economy is owned and controlled by a government. It consist of government businesses and firms and goods and services provided by the government such as the national health service, state education, jobs, roads, public parks and law and order. Throughout this paper, we will examine other differences that exist amongst public sector and private sector such as policy decisions and beneficiaries.
The Differences between
Public Sector and Private Sector
Often you hear news analysts talk about the public and private sectors. While most people usually have an idea what these two terms entail, there are complex differences between the two, which are also useful to learn about. Houston (2000) states, “in spite of virtually universal agreement among scholars that public organizations have more goal complexity and ambiguity, public managers do not differ from business managers in response to survey questions about such matters. Public managers do not differ from business managers on perceptions about organizational formalization, in spite of a chorus of assertions that government agencies have more red tape and rules than private firms have. Public managers do, however, show very sharp differences in response to questions about constraints under personnel and purchasing rules.” First, when we it comes to the public sector it is basically made up of organizations which are owned and operated by the
Public Sector and Private Sector
[pic]
by
Robyn Z. Abdusamad
Dr. Deborah LeBlanc
PAD 620 – Research Paper
August 23, 2010
The Differences between
Public Sector and Private Sector
SUMMARY
When we examine public sector versus private sector, plenty of differences come to mind. In defining each, we learn a private sector in an economy consist of all businesses and firms owned by ordinary members of the general public. It also consists of all the private households in which people live. The public sector in an economy is owned and controlled by a government. It consist of government businesses and firms and goods and services provided by the government such as the national health service, state education, jobs, roads, public parks and law and order. Throughout this paper, we will examine other differences that exist amongst public sector and private sector such as policy decisions and beneficiaries.
The Differences between
Public Sector and Private Sector
Often you hear news analysts talk about the public and private sectors. While most people usually have an idea what these two terms entail, there are complex differences between the two, which are also useful to learn about. Houston (2000) states, “in spite of virtually universal agreement among scholars that public organizations have more goal complexity and ambiguity, public managers do not differ from business managers in response to survey questions about such matters. Public managers do not differ from business managers on perceptions about organizational formalization, in spite of a chorus of assertions that government agencies have more red tape and rules than private firms have. Public managers do, however, show very sharp differences in response to questions about constraints under personnel and purchasing rules.” First, when we it comes to the public sector it is basically made up of organizations which are owned and operated by the
References: David J. Houston, “Public Service Motivation: A Multivariate Test”, Journal of Public Administrative Research and Theory, Vol. 10, No. 4; 713-728 (2000). Hal G Rainey; Barry Bozeman, “Comparing public and private organizations: Empirical research and the power...” Journal of Public Administration Research and Theory; Apr 2000; 10, 2; ABI/INFORM Global pg. 447. James L. Perry and Hal G. Rainey, “The Academy of Management Review”, Vol. 13, No. 2 (Apr., 1988), pp. 182-201. Evanthia Kalpazidou Schmidt. (2008). Research management and policy: incentives and obstacles to a better public-private interaction. The International Journal of Public Sector Management, 21(6), 623-636. Retrieved August 25, 2010, from ABI/INFORM Global. (Document ID: 1545187541). Vuori, Jari, “Public and private manager: Does the difference really matter?”, (2007); Leading the Future of the Public Sector: The Third Transatlantic Dialogue University of Delaware, Newark, Delaware, USA. Burger, A., & Stare, M.. (2010). Public and private services transformation in the CEECs. The Service Industries Journal, 30(4), 479. Retrieved August 25, 2010, from ABI/INFORM Global. (Document ID: 1922870961).