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Differences and similarities between any public and private organizations you are familiar with - Essay Example

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Public and private organizations have a number of similarities and differences in terms of the organization’s planning, management, staffing, coordinating, budgeting and reporting. This paper will discuss two similarities between the two and two differences. I am familiar with…
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Differences and Similarities between Public and Private Organizations of Differences and Similarities between Publicand Private Organizations
Public and private organizations have a number of similarities and differences in terms of the organization’s planning, management, staffing, coordinating, budgeting and reporting. This paper will discuss two similarities between the two and two differences. I am familiar with a public school and a private school.
One of the key differences is funding in both schools. Unlike their private counterparts, most of the public schools receive funds from taxation rather than fees paid directly by students. The goal of the manager in the public institution is to operate programs or provide services on a collective basis supported by tax revenue and not direct payments. Private schools on the other hand are profit oriented and get their funding from their customers who are the parents in this case. The products and services in the private organization are furnished based on individual needs in exchange for direct payment or transaction (Tompkins, 2005).
Secondly, public organizations are predominantly controlled by political forces while private sectors are controlled by market forces. Allocation of resources in public schools is through democratic means, and in private institutions it is through the price system. This enables the private schools to define their market and set achievable goals while the public institutions pursue goals set for them by legislatures (Tompkins, 2005).
One similarity is that the managers in both schools have similar functions, to run the institutions internally. They both have an interest in running programs and activities that have been properly designed for them. This is done in order to use the organization’s resources efficiently and achieve the stated goals. They are concerned with meeting the staff needs, motivating employees, obtaining financing so as achieve the set goals (Shafritz, et al, 2005).
Equity and efficiency is a fundamental aspect in both private and public schools. Public organizations are mostly government sponsored with significant emphasis on equity between the constituencies. In private the institutions, there is greater emphasis on efficiency and competitive performance (Shafritz, et al, 2005).
Shafritz, J. M., Ott, J. S., & Jang, Y. S. (2011). Classics of organization theory. Boston, MA: Wadsworth Cengage Learning.
Tompkins, J. (2005). Organization theory and public management. Belmont, CA: Thomson Wadsworth. Read More
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