Compare and contrast the key features of public and private sector Essay

Comp are and contrast the key features of public and cloistered celestial sphere organisations and explain how these might impact on the role - Essay Example humans sector involve organisations owned and operated by government or their agents and are mostly set up non for profit, provided to head essential services to the public, though profit still reminds one of the objectives of such organisations. Public sectors will major in owning, producing, providing, allocating and delivering goods and services for the government or the public, on either local or international levels, with service provision being more important than make profits. The managers are government appointees, do public companies political institutions. Private organisations. These ere organisations set up, owned, financed, and operated by business people with the single ends of harnessing opportunities to make a profit. The government in private companies only plays a regulatory role through its legal frame work, but does not involve in any last making in such organisations. Their main aim is to invest and harness resources as much as feasible to make the maximum profit possible from the community. Similarities mingled with private and public companies Service to the public. Both the public and private companies are set up to serve a particular public need, though a private company is responsible to its shareholders and investors to offer such services at a profit. Competition. There are many private companies providing services mistakable to the public sector services they all compete for customers and resources, as well as market for their products and services. Examples are schools or healthcare faculties. Organisational hierarchy. Both public and private organisations have different staff occupying differently levels of decision making process, though in the private sector such hierarchies may have different set names. In the two sectors, hierarchy structure is set to delegate work to the appropriate sections or levels (Kearney, Hisrich, & Roche 2009, 28). Differences between Private and Public Companies Organisation level One factor that characterizes the public sector is the many dinner gown processes that must be in place to make such an organisation function appropriately (ESADE, 2011). decisiveness process in public companies involves more degrees of consultations to formalize, leading to increased bureaucracy. Bureaucracy is defined and the regulations, procedures, and rules that have to be adhered to, but have little or no efficacy to the functional object of the rules themselves (ESADE, 2011). Bureaucracy in public sector is mostly due to the divisions of authority between the executive, legislature, and judiciary arms of the government, which have to be involved in the decision making process. On the other hand, private firms are more businesslike and have no elaborate formalisation to put in place. Once they have complied with the legal proce dures, they displace be as small as the owners prefer and as large as possible, with decision making being retained at the senior management level. This makes private sector more efficient in decision making. Market Economy Another difference between private and public sectors is the market thrift and economic systems. The public sector has to provide