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Advantages and disadvantages of public and private sector
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As with most choices, especially in the work world, there are benefits and consequences of working for both public and private sectors. There are different sets of needs to be met in each criterion but they may slightly relate to each other as well.
The public sector mostly relate to Government work. There are special exams a person has to take whenever they apply for any work with the government. There are some very strict rules and requirements to meet in every branch of the government and for every position within that branch. And the private sector is mainly based on the idea of profit. When a person applies for a position in a private sector, they require a certain amount of education, experience, training or skills. But the rules and requirements are not as strict as the public sector.
The public sector is not based on the idea of profit. Workers of public sector benefit high job securities and health care and other personal benefits. In the private sector, health care benefits and other personal benefits are quite poorer than in the public sector. They're more based on w...
A simple comparison to the US system is difficult considering the multitude of insurance plans with variable premiums and the wide array of coverage depending on company size and other factors. Different from the French system, American employers do not buy insurance based on a percentage system and the money does not flow into a few National Health insurance funds, rather...
The United States government is considered to be a social welfare state. As discussed in class and mentioned in our notes a social welfare state is, “a society with a set of government programs that ensures a minimum standard of living for families and protects individuals from loss of income”. The United States in turn has several programs in its social welfare system. One of them is Medicare, which has seen a huge growth in recent years, and is funded by payroll taxes. Medicare
Employee health benefit plans flourished in the 1940’s and 1950’s. Unions bargained for better benefits, which included tax-free, employer-paid health insurance. When war hit between 1939 and 1945, government froze wages which led to an increase of group health care. Since employers were unable to attract employees with higher wages, employers decided to improve their benefits package by adding health care coverage. Gove...
Employer benefits must be competitive to attract and keep quality employees but the federal government recognizes that “perk” benefits will not prepare and sustain employees for everything. Federally required employee benefits supported by both the employer as well as the employee such as Social Security, Worker’s Compensation Insurance, and the Family Medical Leave Act are important benefits to our society by providing certain assurances for a stable tomorrow.
There is no individual owner in the Public Sector. Advantages: · Their main aim is to provide a service, not to make a profit · They will still run even if there is few people using the service · Government is in a good position to plan the overall provision for the country Disadvantages: · It is difficult to motivate employees in an impersonal business such as this · The tax payer has to meet higher tax payments if the business makes a loss · The running of the business can be politically influenced. Private Sector These are businesses owned and run by private people. To start a business in the Private Sector, they have to raise their own capital in order to pay for rent, stock, machinery etc. Some of these businesses can be small and owned and run by one person, other businesses can be larger and run by a group of people.
Privatization of governmental functions has a direct relationship with the number of contract employees in government and an inverse relationship with the number of civil servants. As privatization has become more acceptable, contract employees are being hired to do the jobs, thus, replacing civil servants.
Nuala Kenny and Roger Chafe state that “Canadian health care is moving toward privatization without evidence that this will help efficiency, equity, cost containment, or access – highlighting the market's power to change the course of even the most cherished social programs.” Canada has had public health care for a number of years and now is looking at adding privatization again. That would make you conclude that private insurance has more advantages than public insurance.
a) Within the public sector under the human resources management, state employees work directly for state agencies and receive their compensation and benefits from state governments whereas in the non-profit sector the human resources committee is responsible for developing personnel, policies and may recommend employee and executive director salary ranges and benefits packages to the board as well as elevate the executive director. b) Public sector recruitment rules have to be a lot more careful of equal employment, equal pay, and diversity type rules/regulations that have been implemented over the years in light of the decisions passed by various courts or Acts by the legislature (state level or federal). In contrast, the hiring practices of not-for-profit organizations are much more relaxed in these regards because these kinds of laws do not necessarily apply to them. In terms of its impact, its biggest contribution was that it paved the way for later day legislations related to disabilities, like the Americans with Disability Act of 1990.
In many other countries the health care is government controlled and all citizens are provided government assisted health care. Most systems over in Europe are indeed government controlled and are taxed my wages. The United States government does not pay for most of its citizens healthcare in contrast. If you are fournate enough to afford insurance it's usually through your employer. In comparssion almost all government operated insurances provide better care for babies and pregant mothers than the United States system of health care. The United States system are more flexible than government aided systems though.
Besides that, Bright (2005) determined the individual characteristics, management level, and financial reward preferences of high PSM public sector employees which resulted in employees with high PSM are generally female, are managers, have higher education levels, and place less emphasis on financial rewards. This finding further reinforces Perry & Wise’s (1990) findings on employees with high PSM and their reward preferences. However, there are also contrasting views that public sector employees value extrinsic rewards as well because traditionally, people are attracted to work for the government because of the job stability, opportunities for career development and the pension system (Perry & Hondegham, 2008). Besides that, people also perceive that government jobs are more flexible and less stressful for those with families (Vandenabeele, 2008). Research studies have mainly focused on the PSM theory from the angle of public service as public
... Public sector... being engaged in the providing sevices (and in some cases goods) whose scope and variety are determined not by the direct wishes of the consumers, but by the the decisions of government bodies.
ECONOMY: Economy as the first pillar mainly concerns with the allocation of scarce resources for optimum development. It involves the combination of available resources in their right proportions for the provision of goods and services. It is the careful use of resources and it involves the best combination of resources for optimum result. In public administration it is expected that quality public service be provided at the least possible cost. Public officials therefore must figure out how to provide services required by the people at the lowest cost through cost saving mechanisms while still maintaining quality. The employment of economics in the public sector ensures that resource usage is optimized and not wasted as usually happens in the public sector. Another dimension is to look at economy in terms of the deployment of resources in order to achieve the optimal benefit from them.
According to Sapru R.K. (2008) p370-371 the traditional ideal of public administration which inclined to be firm and bureaucratic was based on processes instead of outcomes and on setting procedures to follow instead of focusing on results. This paradigm can be regarded as an administration under formal control of the political control, constructed on a firmly ranked model of bureaucracy, run by permanent and neutral public servants, driven only by public concern. In emerging nations the administration was true bureaucracy meaning government by officers. In this perspective Smith (1996) p235-6 perceived that“the bureaucracy controls and manages the means of production through the government. It increases chances for bureaucratic careers by the creation of public figures,demanding public managers, marketing boards.
M. Petrescu, e. a. (2010). Public Management: between the Traditional and New Model. Review of International Comparative 408 Management , 411.
Public personnel administration consists of three general systems. The first one I’ll talk about is civil service. The civil service helps to protect employee rights and safeguard efficiency. Historically, personnel administration shifted from emphasizing the value of responsiveness to emphasizing political neutral competence among public employees. Before they would use the spoils system and the patronage system, which selected employees and awarded government contracts based on loyalty or party affiliation. In this present day, we are using more of the civil service system, which is a method of choosing employees based on certain formal qualifications such as competitive exams instead of political patronage. It all start...