Public organizations are very different from private organizations due to their restrictions and their non-competitiveness. These two differences create problems for the public sector because they are unable to motivate and innovate within their organizations. This has caused frustration amongst the people served by public organizations. Many believe they should be privatized and market-driven, but a realistic model for this has not been developed. Employees of public organizations are often criticized for their lack of drive, but stifled wages and over-regulation have created an environment that frowns upon innovation.
Laws and policies created in the past for different reasons restrict public organizations today, and changing those policies is difficult. The goals of organizations are often convoluted and unclear due to outdated legislation. The complexity in the public sector creates no room for error, so management tends to adhere to actions that have succeeded in the past, and there is little time or resources for anything different (Mares, 2013). New ideas will not likely work in this sector, and they may actually result in adverse consequences for the employee/manager.
The non-competitive nature of public organizations is stifling. They basically have monopolies in government rather than being market-driven. As wages are set at certain non-negotiable rates, employees in the public sector are not motivated to be innovative. They often are so restricted and ill-informed that their goals become getting through the day rather than accomplishing great things.
While some argue that public organizations would benefit from privatization, others worry that these organizations that were formed to serve the public are in danger of commercialization and being motivated by money (Rainey, 2014).
Assessing organizational performance is therefore difficult because there is no profit measure or other easily accessed measurable data. It is often based on surveys or other qualitative measures. Assessing performance would be much easier with numbers, and many argue this would make public organizations more efficient.
- Mares, J. (2013). 25 differences between private sector and government managers. Power. Retrieved from: http://www.powermag.com/25-differences-between-private-sector-and-government-managers/
- Rainey, H.G. (2014). Understanding and Managing Public Organizations (5th ed.). San Francisco: Jossey-Bass.
