Public and Private Sector

Businesses and industries that are not owned or controlled by the Government. Private Sector organisations operate privately to make a profit with income generated from the sale of their products or services. Although many private sector firms are owned and controlled by individuals, many are owned by groups of people; for example, companies may be owned by shareholders, who have invested in that company.

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

The main objective of the private sector is to earn profits and become a leading organization in their line of business. To enhance this objective, most of the private sectors have embraced technological advancements where business is operated online. E-business is one of the current advancements where a business can advertise, market and make sales through the Internet. The business has to share its information online to attract a large pool of potential customers. Most of the business websites operates on intranets and extranets. Customers can only gain access to business information through the extranet. Authorized users can access most of the crucial and confidential information of a business through the intranet via an encrypted link. Thus, the business can secure its confidential information and protect its customers.

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

Describe from your perspective the appropriate roles of the private sector versus the federal, state, and local government (i.e., should private sector have more control, or government) with regard to the nation’s healthcare system.

A private organisation is a Company run by an individual, partnership or shareholders. These companies are run for profits which are paid to either the owner/s in which case it is privately owned or its shareholders in which case the shareholders own the organisation. An example of these companies would be Local trade businesses, large commercial organisations and retail stores (Australian Institue of Company directors, 2011).

In order to understand the reasons behind privatisation of public services, it is essential to study the socio-political environment of the UK in the 1970’s. During this period of time, the UK was hit by the post-war crisis, which led the Tories British political party, also known as the Conservative Party, to lose dominance in the parliament. During this time, in the Ridley Report, the Thatcher shadow cabinet started suggesting about the need to break up the public sector and to disjoint unions. Initially, privatisation was subordinate to other policy themes. Nonetheless, during Margaret Thatcher’s governance starting in 1979, a certain degree of privatisation was put in place, notably regarding British Aerospace and Cable & Wireless (1). Nonetheless, during this period of time, the government’s aim was to privatise profitable entities, in order to increase revenues and therefore minimize borrowing from the public-sector.

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).”

Agranoff states that the process of integrating disparate human services in the 1960s and 1970s encountered serious problems, for example, the inability of getting agencies to work together to address complex issues and ultimately managers’ inability to collaborate with each other (p. 160). The traditional managerial and administration system has evolved throughout the years depending on theory findings, technology advancement and managers’ performance on leveraging resources— in a very exclusive cycle where government officials and policy makers take the lead to delay the New Public Management (NPM) wave, an inclusive cycle of interaction between public officials and per profit and non-profit partners (p. 198). There are four sets of forces

Though business-like mechanisms can create a more efficient and potentially innovated government, government and business should be run differently, since they are inherently different in their conceptual values. Appleby explains some of these differences. He argues that no one can serve the public as it should be served unless he or she has a public-interest attitude with certain special characteristics. In addition, business has much narrower extent, while public officials are more broadly stimulated, with a breadth of view and a public-interest attitude. Government is complex as well as vastly interdependent with many other nonprofit and private organizations. Also, the government is subject to public scrutiny and public outcry. According to Denhardt and Denhardt, government acts, in concert with private and nonprofit groups and organizations, to seek solutions to the problems that communities face. In the process, the role of government is transformed from one of controlling to one of agenda setting, bringing the proper players to the table, facilitating, negotiating, or brokering solutions to public problems—often through coalitions of public, private, and nonprofit agencies. Finally, government is different from business

The classical approach to public administration was focused on finding the best way to perform and manage tasks. This classical approach to Public Administration is often associated with Weber, Wilson, Taylor, and Gulick. Under the classical approach was four areas of focus which was the Bureaucratic, Scientific, Administrative, and Managerial approach. Each area represented the four main theorists that the classical approach was associated with. Max Weber's bureaucratic approach focused on the rational-legal model which viewed bureaucracy from a rational view and argued that bureaucracy is the most efficient and rational way in which one can organize the human activity and that hierarchies are necessary to maintain

Private Sector Organizations: Private Sector Organizations operated and owned by the private individual instead of government and usually aimed to make profit for its shareholders. Around the world the most business activities are in private sectors. Some of the well – known private sectors organizations are: Coca-Cola, Google, and Amazon.

A new managerial approach in the public sector emerged in the 1980s and early 1990s and it was named New Public Management. This new approach lays the emphasis on the economy, efficiency and effectiveness of government organizations, instruments and programs, and higher quality service delivery. This new model of public sector management emerged in the most advanced countries, as well as in many developing ones, and is regarded by many authors as "not a reform of the traditional Public administration, but a transformation of the public sector and its relationship with government and society" (Hoos,

The question is not why the public sector can’t continue to administer the SIR program, it is how the private sector can do it better. The public 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