Question

Know the main players and the impact of the public vs private sector differences

Answer 1

The private sector employs workers through individual business owners, corporations or other non-government agencies. Jobs include those in financial services, law firms, newspapers, aviation, hospitality or other non-government positions. Workers are paid with part of the company’s profits. Private sector workers tend to have more pay increases, more career choices, greater opportunities for promotions, less job security and less comprehensive benefit plans than public sector workers. Working in a more competitive marketplace often means longer hours in a more demanding environment than working for the government.

The public sector employs workers through the federal, state or local government. Typical civil service jobs are in healthcare, teaching, emergency services, armed forces and city council. Workers are paid through a portion of the government’s tax dollars. Public sector workers tend to have more comprehensive benefit plans and more job security than private sector workers; once a probationary period concludes, many government positions become permanent appointments. Moving among public sector positions while retaining the same benefits, holiday entitlements and sick pay is relatively easy while receiving pay increases and promotions is difficult. Working with a public agency provides a more stable work environment free of market pressures, unlike working in the private sector.

The private sector is a very diverse sector and makes up a big part of many economies. It is based on many different individuals, partnerships and groups. The entities that form the private sector include:

• Sole proprietorships
• Partnerships
• Small and mid-sized businesses
• Large corporations and multinationals
• Professional and trade associations
• Trade unions

Public management values public interest, public needs and political compromise. As a public manager, your primary concern is the overall wellbeing of your society. You endeavour to balance the needs of businesses, interest groups and individuals

For the private manager, setting goals and measuring success is straightforward, because objectives can be clearly defined and measured according to profit and loss. The broader implications for competitors, customers and suppliers are not considered in the narrow equation for business efficiency.

For the public manager, objectives are abstract, overarching, somewhat undefined and exceptionally difficult to measure. That is because in the public sector, goals apply to a much broader jurisdiction than a single business. They encompass multiple programs and their success is measured by the overall betterment of society