Question

In: Operations Management

. Explain why public organizations are said to be more difficult to evaluate than private organizations

. Explain why public organizations are said to be more difficult to evaluate than private organizations

Solutions

Expert Solution

Public sector organizations show a higher degree of complexity because of the ambiguity and complexity of the nature of their goals. While profit is still a concern, the fact that these organizations need to cater to the interest of the public at the same level means that the goals itself become harder to measure and become conflicting in nature to a point where it becomes a universal characteristic of all the public sector organizations. The public sector industries are also accountable for an increased variable of factors. The main consideration can be thought to be brought forward by the fact that most of these organizations are controlled and run by the government, which inherently makes it harder to succeed in a profit-driven economy. Thirdly, the milestones that are set are usually over a longer time horizon, making it harder to track progress and measure the milestones and achievement effectively.

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