Difference Between Private And Public Management

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In the United States, private and public management is subject to constant changes which can effect individuals around the world. An example of public management change would be Obama’s administration which has decided on reinventing public healthcare. Therefore, public administrations around the world must become more efficient, effective, customer oriented and service providers to meet the needs of the common good. Resulting in the need to cut budgets, and the need to increase efficiency while maintaining performance which restricts cutting red tape, and or reducing bureaucracy. Leading to the question, is there one best ideology practice for the private and public management? Some studies suggest that the publicness of an organization can …show more content…
First, the public management values the public interest and is easily influenced by external events. While the private management values profit. Therefore, there goals are less ambiguous then public management because they are evaluated in terms of profit and loss. Resulting in success measured by sales made, units manufactured, and contracts signed. In contrast, public management do not operate in a competitive market, public employees usually have more job security than private employees which would be considered a strength of public management because they protect their employees from abuse, grievance taken against them, disciplinary action, and have the right for appeals. Whereas private management may dismiss their employees at will, which would be considered a …show more content…
For example, Boyne quotes Bozeman and Scott, 1996, “This is often regarded as a pathological side effect of bureaucracy. The existence of red tape implies an unnecessary and counter-productive obsession with rules rather than results, and with processes instead of outcomes” (Bozeman et al. (1992 p.291). Resulting in heavy penalties if rules are not followed, even loss of job. While the private management can almost right their rules to follower without loss of job. Finally, the public management are believed to be less materialistic, less likely motivated by financial rewards, and have a desire to serve the public. While the private management concern is to meet the needs of their customers. Data is taken from “Public and Private Management” Table I. Summary of hypotheses on difference between public and private management. “Structures: Public organizations are more bureaucratic More red tape is present in decision making by public bodies Managers in public agencies have less autonomy from superiors Values: Public sector managers are less materialistic Motivation to serve the public interest is higher in the public sector Public managers have weaker organizational commitment (Boyne,

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