Differences Between Public and Private Sectors Essay

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The Differences between
Public Sector and Private Sector


Robyn Z. Abdusamad

Dr. Deborah LeBlanc
PAD 620 – Research Paper
August 23, 2010

The Differences between
Public Sector and Private Sector


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
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On the other hand, government organizations that are funded through market sales or user charges often have concomitantly greater autonomy from governmental controls.”
Majority of public sectors are managed under a bigger chain of command and control, while private sectors mostly operate in a corporate setting. As for the differences with their policy decisions, the activities in the public sector have a goal of adhering to what is indicated by law, while the private sector is driven by the rules of shareholders and corporate owners. Schmidt (2008) states, “The research agenda of companies is more focused and targeted and therefore perceived as easier to handle for managers. Also, the decision-making process is different. Managers of private enterprises can faster and easier change orientation, focus and targets. This implies, according to some managers, that the instrumentation used in the private sector is different from the one used within public research.” [pic][pic]Finally, the beneficiary of the services provided by the public sector, is the general public. These goods and services are sometimes provided free and in other cases consumers have to pay a price. The goal
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