The writer of this paper "Difference between non-profit public sector administration and private sector" aims to investigate through the overall meaning of public and private sectors in the economy, determine its goals and benefits…
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The terms of employment and leadership also determine the administrative structures in each. In the public sector, job security is high and despite poor performance, separation requires extensive documentation over a long period of time.The span of control is low, which also means more individuals to a particular task and we see that job security, stability, and sheer size of organizations tend to foster well-defined bureaucracies. Educational qualifications and political affiliations play a major role in the selection of those at the top, regardless of managerial capabilities.
Forced to be competitive in order to survive, the private sector companies value efficiency over all else. They have little use for bureaucratic hierarchies.Corporate bureaucracies consist of performance-driven individuals, who function in situations of large spans of control.The number of people required to do a job is strictly monitored and adhered to, any excesses are trimmmed immediately based on optimum efficiency and job security is low. Managerial capabilities are usually the sole determining factors for high positions in a private sector organisation.
Thus it is easier for an excellent performer to rise on the corporate ladder, whereas in the public sector, “seniority” is the determining factor. In other words, we might see an individual promoted purely on the basis of the fact that he or she has been in the organisation for a particular period of time, despite possible poor performance, while diregarding cases of good performance from more recent employees.
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