Topic: Public Sector Vs Private Sector

1. TOPIC: PUBLIC SECTOR
VS
PRIVATE SECTOR

2. 1) INTRODUCTION

3. •What is Private Sector?
•What is Public Sector?

4. •Role of Private & Public Sector
•Private Sector over Public Sector
•Managerial Values

5. Comparison between Public and Private sectors
• Ownership
• Aim
• Control over Organization
• Job stability & Promotion
• Competition
• Basis of Promotion

6. 2) AIMS & OBJECTIVES OF
PUBLIC AND PRIVATE SECTORS

7. • Public sectors are owned and controlled by the
government. They aim to provide services to the
public and are funded by taxes

8. Aims and Objectives of Public Sector
• Provide services to the community
• Strives to create employment
• Create jobs and income for local
population
• Fullfillment of our national goals
• Helps government to enforce social
control

9. • Private sectors give priority to profits and may end
the service if it does not find it profitable to run the
service.

10. Aims and Objectives Of Private sector
•Aims to become efficient and effective
•Profit maximization as main objective
•Aims to become a leading organization
•Aims to earn satisfactory return on
investment
•Aims to survive

11. 3) LEADERSHIPAND MANAGEMENT
IN PUBLIC AND PRIVATE SECTORS

12. Difference Between Public & Private Sector Values
• Public management entails dealing
with and/ or controlling the needs and
interests of ‘the whole’, which is in
many cases the nation
• Private management involves
managing the narrower needs
of an individual or group

13. Difference Between Public and Private Leadership
• Franklin Delano Roosevelt, the 32nd President of the United States,
served the longest term in office of over 12 years
• Meanwhile, Leslie Wexner, is the longest serving Fortune 500 CEO,
having managed L Brands for over 52 years

14. Public Sector and Private Sector Leaders
(Different Challenges & Competencies)
• Public sector leaders are being asked to function
with fewer resources and continually find new
ways to tackle challenges
• Public sector leaders also face different challenges
than in the private sector, and perhaps call on
different competencies
• Without many of the incentives available in the
private sector, it can be a challenge for public sector
senior leaders to motivate their employees

15. CONTINUED…
• The Hudson study also found public sector leaders are
more focused on long-term strategy and the creative
process involved in building a vision.
• Leadership in any organization is important, but
developing good leaders in the public sector is especially
crucial.
• Leadership in the private sector is easier in that there is a
clear unifying financial goal. This is often not so clear in
the public sector where, as a result, there is a greater
need for consensus building if decisions are to hold.”

16. Performance Management Challenges in the Public Sector
• The difference between public/private sector management
and private sector management is supported by two
argument which represent real differences in how public
programs and private businesses strive to meet their
objectives
• First, public organizations do not always operate with
objectives which can be clearly measured like in the private
sector, which operates in a model of economic efficiency.
• The second argument is that accountability differs largely
between public and private organizations.

17. 4) ORGANIZATIONAL STRUCTURE IN
PUBLIC
AND PRIVATE SECTORS

18. Organizational Structure
• An organizational structure is a
system that outlines how certain
activities are directed in order to
achieve the goals of an organization.
These activities can include rules,
roles, and responsibilities.
The organizational structure also
determines how information flows
between levels within the company.
Organizational structure is shown
in organizational chart

19. Management Structure
• A management structure is how a
company organizes
its management hierarchy. In
egalitarian countries, such as
Sweden, companies tend to have a
flatter, less hierarchical
organizational structure.

20. 5 Key Elements Of Organizational Structure
• Elements of organizational Structure
1. Job Design
2. Departmentalization
3. Establishing Reporting Relationships
4. Distribute Authority
5. Coordinating Activities

21. Organizational Structure in Public & Private Sectors
• Structure in Public Sector
• Structure in Private Sector

22. Rewards & Benefits in Public & Private Sectors
• More amenities in government jobs
• Telecommuting options in private jobs

23. 5) ORGANIZATIONAL CULTURE
IN PUBLIC AND PRIVATE
SECTORS

24. Organizational Culture
• Organizational culture is the
collection of values, expectations, and
practices that guide and inform the
actions of all team members. Think of
it as the collection of traits that make
your company what it is. A culture is
created through consistent and
authentic behaviors

25. Organizational Culture in Public and Private Sectors
pPPublic Sector Private Sector
The organizational culture in
public sectors is mostly of
bureaucratic type. Strict
hierarchy and formality exist in
themsectorsis
The culture in private sector is
totally opposite of public sector.
Their culture has high openness,
high experimentation, high
collaboration and high
autonomy. These organizations
can act on their own and can
make decisions quicker than the
public sectors.

26. Cultural differences between Public sector
and Private Sector Organizations
• Career opportunities, benefits, turnover and the pay scale are
just a few examples of the cultural differences between the
two
1. Career development
2. Benefits
3. Pay scales
4. Turn over

27. 6) CONCLUSION

28. Collaboration Between Public & Private Sectors
• Environmentally and economically
sustainable long-term future
• Negative interaction potential
between public and private sectors
• Wars for corporate interest

29. Public VS Private Sectors
• Goals and objectives of public VS private
sectors
• Leadership & Management in public VS
private sectors
• Structural hierarchy in public VS private
sectors
• Organizational Culture in public VS
private sectors
• Outcome

30. THANK YOU EVERYONE !