PRIVATE AND PUBLIC SECTOR MANAGEMENT

PRIVATE AND PUBLIC SECTOR MANAGEMENT



PRIVATE AND PUBLIC SECTOR MANAGEMENT

In countries, it has become customary to make a clear distinction between governmental and private organizations. In the popular view of government administration which is bureaucratized, the management in the organizations are not very good. On the other hand, the management in the private firm which is business in nature has a high scope for achieving success. Government administration is normally entangled in formalism. However, too sharp distinction hardly fits the facts. There are various major public and private organizations which have lots of similarities than differences. In modern management, it is often observed many differences occur between small and large organizations than between public and private firms. For example, a hospital for 1,000 beds and 50 beds at the hospital considerably differ because of their size, than for a private and another state hospital. (Allison, 1993)

There are similarities between public administration and governance in the private sector. The comparison between the problems of governance in public and private organizations can be easily detected when a private organization goes to the Government. For example, some time ago in Chicago, underground and surface rail lines were transferred to state ownership. The performance of management went down and there were lots of delays in the important projects. It was only because of the bureaucratic structure that was implemented in the organization. Changes are usually associated with the financial organization of the company that replaces several Senior Executives. The financial changes have affected people who received interest on bonds. These changes allowed railway companies to increase investment in the installation of new equipment. Those changes that occurred were achieved without a change of ownership. (Aucoin, 1995)

In the administration and management of a private company, it requires many skills. This labour force normally has skills that can be used in both public and private organizations. Similarly, the surgeon will remove the appendix is ??the same method, no matter whether they work in an Army hospital or a private clinic. Gen. Dwight D. Eisenhower resigned and became President of Columbia University. The Army and the University were such different organizations that it is hard to imagine. The management problems of these two organizations are similar enough, since Eisenhower did not raise particular difficulties in adapting to his new position. However, it is true that there are differences between public administration and governance in the private sector. Although the similarities between governmental and nongovernmental organizations are greater than commonly thought, however, some differences still exist. Most often, these differences are of degree, not substance. (Argyris, 1978)

For example, both governmental and nongovernmental organizations generally operate on the basis of law. Activities of governmental authority are usually governed by statute or government regulation, backed by the force of law or constitution. All corporations and most other non-governmental organizations operate on the basis of legal statutes. Legally, from the leaders of both one and other types of organizations are required to act within the ...