Difference Between Public And Private Sector

HEADER: PAD709 BOOK REVIEW 1 Book Review Maynard-Moody, S., & Musheno, M. (2009). Cops, Teachers, Counselors: Stories from the front lines of public service. Riccucci, N. (2005). How management matters: Street-level bureaucrats and welfare reform. Key Findings

The Voluntary Sector is often referred to as the Third Sector or ‘Not for Profit’ Sector. Whist they do not exist to provide profit for shareholders, they need to generate income.

The management of an organization plays an integral part in determining the direction and performance of the organization. The manner in which the management of an organization is handled has a profound effect on the organization. The success of an organization is dependent upon a flexible and skilled management and workforce. The management of an organization is responsible for shaping up the organizational behavior and ultimately the culture within the organization. Public management faces a multiple of challenges and opportunities, how the management deals with these issues translates to efficiency in management. The personal judgments and skills of public managers can make a significant impact in public management. If

Kernaghan, K. 2000. The Post-Bureaucratic Organization and Public Services Values. Interational Review of Administrative Sciences 66. 2000, pp. 92-93.

the world is seen by public sector professionals (for a full review see Trowler, 2001;

Administrative scientists identified public administration as a tool or technique to use to produce the most efficient or effective result. The public interest is way of grabbing the attention of various group interest into society. In public admin privatization refers to transfer of any government function to the private sector-including governmental functions like revenue collection and law enforcement.

Moreover, several of the courses I have taken have falsely led me to believe that leading in the private and public sector is fundamentally identical. However, those courses did not effectively convey to the student that the private and public sector are unique entities that have different motivations, objectives, and are commanded by individual forces.

Articles 15, 40, and 54 from the classic literature gives us an overview of how the US public administration is established. Public administration as we know it involves organizations to make every effort to be a good corporate citizen of the community. Organizations must conduct their business to be in a fair, ethical and professional manner with customers, governments, suppliers, community neighborhoods, and the general public.

However, despite Max Weber’s theory that bureaucracies are like iron “iron cages” that are a efficient form of administration. Prior to modern government reform patronage, spoils, and bribery were just part of the political environment for Public Administrators. In today’s, modern government Public Administrators are hired based on the merit and technical qualifications that secure the individual can carry out the duties of the office. However, Public Administrators are forced to work in a hierarchical organization

On a macro level, public administration and business management are similar in their overall functions. “At the broadest level, some organizational theorists contend that administration is administration whatever its setting, and that the problems of organizing people, leading them and supplying them with resources to do their jobs are always the same (Kettl, 2012, p. 38).” In his paper, “Public and Private Management: Are They Fundamentally Alike in All Unimportant Respects?,” Graham T. Allison explains that in comparing public and administration and business management, “it is possible to identify a set of general management functions (Allison, 2012, p. 4).” Regardless of their end goal, each administration must form strategies by setting goals, priorities and creating procedures. Public and private organizations must manage internal components by organizing staff, defining job responsibilities, hiring and managing personnel and creating budgets. Furthermore, they must manage external constituencies such as other agencies, the press and public (Allison, 2012, p. 5). His observations stem from Wallace Sayre’s famous words, “public and private management are fundamentally alike in all unimportant respects (DiIlulio, 1993).”

The need for financial stringency in public organizations due to budgetary pressures and tax resistance coupled with the need to Managing /balancing budget deficits and provide quality services with a reduction in revenue has always been a major challenge for public organizations. The need to save money and at the same time provide quality services, had forced government agencies to privatize and contract out. Recently, there is greater involvement of the private and nonprofit sector in public service delivery. More and more government functions in service delivery are now carried out by private and nonprofit organization. This is one part attributed to the belief that private organizations can provide services more efficiently and effectively than government operated services. And the other is the fact that it is cost effective and takes a lesser time frame. These two process are indeed unarguably beneficial to the government and private sector as well as the beneficiaries, but they can be also very daunting accompanied with huge challenges especially when not executed in the rightful manner. The case of the crummy contractor by Rainey depicts such a complex situation , where the process of contracting out was poorly conducted. The case highlights the demand for privatization and contracting-out and most importantly some of the challenges of privatization and contracting in government organization. it goes on further to identify some crucial pointed to be

Before compare the two different models TPA and NPM, I will illustrate what is the

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

In the following paragraphs, I will explain the dominant theory in public administration practice and elaborate on the major theoretical assumptions of the Old Public Administration. As stated in the question, the world has transformed through globalization, information technology, and devolution of authority since the latter part of the last century. The dominant theory in public administration has been replaced from the traditional rule-based, authority-driven processes of the Old Public Administration with market-based, competition-driven tactics in the New Public Management, beginning in the 1980s (Kettl, 2000, p. 3). This was an effort to privatize government and streamline public administration to maximize efficiency and productivity. Heavily relying on market mechanisms to guide public programs, public administrators in the New Public Management are encouraged to “steer, not row,” meaning they should not bear the burden of delivering services, but instead define programs that others will carry out, through contracting or other means (Denhardt & Denhardt, 2011, p. 13). Core values of the New Public Management include using private sector and business approaches to the public sector, squeezing as many services as possible from smaller revenues, market style incentives, providing customers more choices, and focusing on outputs and outcomes instead of mainly processes.

Public organizations and the public administrators have an important duty of promoting and maintaining democratic government especially by ensuring good governance. Social and economic development can be achieved through good governance. Collaborative governance is a primary component of good governance (Ansell & Gash, 2008). Admittedly, public management reforms are fundamental to improving the abilities of various nations to address issues that touch on democratic government. Some of the