Objectives of Public and Private sector organizations – A comparison

Both public sector and private sector organizations have objectives and missions. But depending on the type of organization, there are differences between the public and private sectors of a country. Some of them are discussed below.

  • Public sector organizations are established by statute or a similar vesting document passed by the government or other law making bodies. Therefore, managers cannot change them according to the changing conditions. On the other hand, directors of a private sector organization may determine its objectives and change them whenever necessary.
  • Output of a private sector entity can be valued by the paying customers and therefore can be incorporated in its objectives, missions and decision criteria. It may not be possible to allow the market to determine the income of a public sector entity.
  • When a private firm fails to meet the aspirations of its stakeholders, it can result in serious consequences which can lead to even closure of the firm. In the public sector, disbelief can be suspended for long periods, with the result that some stakeholders’ aspirations are ignored.
  • Private sector firms should earn a satisfactory return on investment otherwise the investors might withdraw the investment in the firm. Public sector organizations still consider that their capital is free and therefore, the need to earn a return is always ignored.

Comments 18 comments

Manish bhoite 5 months ago

I am vikas college student I like web 'cause it always help to me for giving information.

Rishi 5 months ago

This is as same as in test book of HND Computing (E-Commerce),So in is very easy for me to do my Assignments.

Lameck Peter 10 months ago

why Tanzania government can benefit in private sector rather than public sectors?

Mandy 14 months ago

Thank you! This helped a lot.

Govind sharma 21 months ago

Very easily information take it. Nice dear

Duffix@DWU 3 years ago

It's a very helpful page...Thank you!

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Dennis AuBuchon 3 years ago

This is a great hub with interesting information. I voted up, awesome, useful, interesting and beautiful along with liking, tweeting and pinning

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LasanthaW 3 years ago from Sri Lanka Author

Thank you Shamzii for visiting this page and commenting. Do your studies well.

Shamzii Harold 3 years ago

My name is Shamzii Harold i go to school at Port Mores-by International School which is known as POMIS I take business Studies lessons and i love this page because it gives every information i need.. Thankyou

param 4 years ago

very helpful

kitea harriet 4 years ago

am a student of public Administration in makerere university i love web because it gives me lots of info for my personal reading

Tanya Dutta 4 years ago

thanks for your yummy comments!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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LasanthaW 4 years ago from Sri Lanka Author

Thanks ClarkParker for your encouraging comments.

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ClarkParker 4 years ago from California, USA

Interesting! This information can be a great help especially for students who are taking business related course. Voted up!

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LasanthaW 4 years ago from Sri Lanka Author

Thanks for the comments.

Peter Mogha 4 years ago

I am a student in Malawi Central Africa persueing a course in business management and I like this web as it provides me with all the info i need.Thank you.

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LasanthaW 4 years ago from Sri Lanka Author

Thanks for your comments. Wish you every success at your exam.

Lawrence ochieng 4 years ago

I am a student undertaking an abe course of dip in bm and this info will be of much help to me while preparing for my exam coming may è0th

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