Free

Public Sector vs. Private Sector - Essay Example

Comments (0) Cite this document
Summary
One of the key differences between public sector and private sector collective bargaining concerns the structure and ways in which upper management receives pay increases. In private sector upper management, salaries are often directly related to their individual performance…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.2% of users find it useful
Public Sector vs. Private Sector
Read TextPreview

Extract of sample "Public Sector vs. Private Sector"

Public vs. Private Sector One of the key differences between public sector and private sector collective bargaining concerns the structure and ways in which upper management receives pay increases. In private sector upper management, salaries are often directly related to their individual performance. For instance, most executives own significant shares of company stock or are required to display tangible increases in revenue in order to receive pay raises. Exactly the opposite is true of public sector employees. In the public sector, upper-level salaries are more related to that of employees above and below them, as they are oftentimes negotiated by the unions. As a result, they have a vested interest in seeing salaries rise for all employees.
Another essential difference in collective bargaining between private and public sectors is related to location and labor value. Unlike private sector companies, public sector institutions are not capable of threatening to relocate for lower-wage costs (Guyton 213). This is evident in education where in response to union strikes, schools cannot possibly outsource employment overseas, as companies like Nike and have done. However, unions are able to use statistics from surrounding areas to pressure public sector companies to raise wages.
Indeed union negotiations are one of the major distinguishing characteristics in private and public sector collective bargaining. Private salary disputes are restricted by the knowledge that customers are able to obtain products elsewhere, whereas in the public realm it is often difficult or impossible for patrons to go to the closet competitor (Boggs 9). Libraries are an example of this situation. The union representatives are often long-term officials who have experience in negotiations, whereas the officials they are dealing with are appointed or elected officials who often only spend short amounts of time in their positions. As a result, negotiations are somewhat slanted in favor of the public union representatives.
While labor relations in the United States used to be more highly shifted toward private sector employee union membership, major changes have occurred in the intervening fifty-years. For instance, in 1956 American private sector union membership was 34.7%, more than three times as much as the public sector rate of 11.1%. In 2006, public and private sectors were seen to undergo and drastic change as union membership had shifted from 36.2% in the public sector to 7.4%. for the private sector (Guyton 210).
When distinguishing public and private sector labor relations it’s important to distinguish between employee perspectives of their work environments. When asked to describe their impressions of public vs. private sector work environments, employees responded with varying answers. Public employees indicated that oftentimes projects weren’t as directly related to market suitability and were undertaken with knowledge that the results wouldn’t be implemented for another generation (Nuygen 75). Conversely, private sector projections must answer to immediate profit gains and as a result are directly related to market feasibility. When considering labor relations, this is a distinguishing feature as private sector employees see their projects to completion where public sector employees must be content with projects that have worked on not coming to fruition for long periods.
Clearly, there are extreme differences in public vs. private sector collective bargaining and labor relations. While public sector collective bargaining is hindered by its inability to relocate to decrease wages, private sector companies possess this leverage. However, public sector companies have the advantage of offering services that aren’t easily replaceable, where consumers are able to switch to another private sector company if they aren’t able to meet labor demands. In determining labor relations it’s clear that the private sectors more direct connection to immediate profits determines general workplace relations and influences company goals.
References
Boggs, Carl.  1999.  "Economic Debate:  Where Social Movements and Labor Meet" in Brecher and
Costello, eds.:
Guyton, Jason.  2007.  Public vs. Private Sector: If You Fail We All Fail. Ithaca and London: 
Cornell University Press.
Nuygen, Costello.  2003.  "American Labor:  The Promise of Decline" Los Angeles:  UCLA Institute of
Industrial Relations. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Public Sector vs. Private Sector Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1561347-public-sector-vs-private-sector
(Public Sector Vs. Private Sector Essay Example | Topics and Well Written Essays - 500 Words)
https://studentshare.org/miscellaneous/1561347-public-sector-vs-private-sector.
“Public Sector Vs. Private Sector Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/miscellaneous/1561347-public-sector-vs-private-sector.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Public Sector vs. Private Sector

The CIO'S In Public Service Sector And Private Service Sector

...?The CIO'S in public service sector and private service sector Number: Lecturer: Introduction The Chief information Officer’s role in the public service sector has become more dominant since they have relied on the government for information and technology management, service delivery to the public as well as meeting the demands of the technological world. The role of the CIO in regards to public sector is at formative level but well developed in the private sector. It is through this fact, that challenges and opportunities ought to be identified in the public service sector. Despite the fact that government is viewed as the entire enterprise, some other departments in a government operate with their own mission, goals and visions... of the...
9 Pages(2250 words)Assignment

Comparative Public Sector Administration

...?Comparative Public Sector Administration Assignment Using the language of Blake and Mouton, describe what kind of leader former Sunbeam Corporation CEO Al Dunlap was. Using the Clark and Yoon articles, be very specifically in explaining Mr. Dunlap’s managerial style. Based on Northouse's (2007) definition, of leadership — Leadership is a process whereby an individual influences a group of individuals to achieve a common goal – we gather that a leader’s style of functioning can have significant implications for the employees as well as the goals. In examining the case of Albert Dunlap, we can identify how this seems to occur. Albert Dunlap served as the Chief Executive officer at Sunbeam Corporation using...
1 Pages(250 words)Assignment

Public Sector vs Private Sector

...? Evaluation of projects - Public Sector vs Private Sector - BlueJay Manufacturing Evaluation of projects - Public Sector vs Private Sector - BlueJayManufacturing Project – Aims In BlueJay Manufacturing a project needs to be developed for supporting the training of employees in responding more effectively to customers’ orders. A project should be introduced for enhancing the development of a unique training program that meets specific criteria in terms of its cost, its duration and its quality (Olateju, Abdul-Azeez, & Alamutu, 2011, p.1). Evaluation of project – Methods...
3 Pages(750 words)Research Paper

Difference between non-profit public sector administration and private sector

...The domain of the public sector are those parts of economic and administrative life that have reference to the the delivery of goods and services by and for the government, whether at a national, regional or local level. The private sector, on the other hand, comprises of organisations which do not have affiliations with the government, and form the part of a nations economy beyond the direct control of the government. In order to compare and contrast the administration in the two sectors, it is important to determine the fundamental goals which drive them. While the private sector has competitive goals of tangible...
2 Pages(500 words)Essay

Comparision of Retirement Plans for employees working in the private sector vs employees working in the public sector

...and differences in the retirement benefit plans, including taxation of pension as well as the profit sharing plans, between the private and the public sector are critically analyzed and explored in detail. Comparison of Retirement Plans for Employees in Private Sector vs. those Employed In Public Sector According to Gucciardi (2009), the pension plans of the public sector workers are stable and offer the workers certainty during their retirement period. The public sector recently made changes in its plan to improve the benefits the...
5 Pages(1250 words)Essay

Public Sector vs Private Sector

...Evaluation of projects - Public Sector vs Private Sector - BlueJay Manufacturing Project – Aims In BlueJay Manufacturing a project needs to be developed for supporting the training of employees in responding more effectively to customers’ orders. A project should be introduced for enhancing the development of a unique training program that meets specific criteria in terms of its cost, its duration and its quality (Olateju, Abdul-Azeez, & Alamutu, 2011, p.1). Evaluation of project – Methods In general, the evaluation of projects has three key parts: a) the identification of costs, b) the identification of outputs and c) the comparison of the findings related to the previous two phases (Marieta, Opreana & Pompiliu 2010, p.132... ). In...
4 Pages(1000 words)Research Paper

Debunking Public vs. Private Sector Myths

..., the levels of unemployment are very high. The available jobs are not enough for every person to get a job(Mazzucato, 28). This implies that if all unemployed people decided to look for employment, only a small percentage would be lucky to get a job. Question e True. This is because the tax system is only progressive among the wage income earners but the progressivity decreases with increase in income. This is because the tax is based on income and it increases with increase of income up to a certain level where the money earned above the threshold is taxed in terms of a certain percentage. Work Cited Mazzucato, Marian. The entrepreneurial state : debunking public vs. private...
2 Pages(500 words)Coursework

Public Sector Accounting

...Public Sector Accounting Task Introduction Fund accounting involves recording cash and other transactions and keeping financial record related to liabilities and residual equities that are self-balancing in nature, which are segregated for purpose of carrying designed activities or attaining predetermined objectives (JONES, 2011). Advantages of fund accounting; Fund accounting used by Yorba Linda improved presentation visibility of financial information as it segregates funds into their component units which increases presentation visibility and allow user to know the position of their investments at any point in time. Fund accounting enhances the ability of those charged with responsibility of governance...
3 Pages(750 words)Essay

Managing in public and private sector

...Similarities and Differences in strategic management between the private and public sector Similarities and Differences in strategicmanagement between the private and public sector Introduction In modern business management, efficient strategy is imperative in ensuring success and achievement of an organization objective. Various strategic management techniques exist within the private and public sectors. It is indispensable that efficiency of strategic management with the sectors greatly contributes to observed similarities and differences. Strategic managers within the...
6 Pages(1500 words)Essay

Government vs. Private Sector

...Finance and Accounting: The Difference between Public and Private Sector Finance and Accounting There isa significant difference between public sector and private sector management of finance and accounting. In the “Government Finance Review,” Stephen J. Gauthier points out that as much as there are similarities in between the private sector and the public sector finance and accounting practices, some of the practices in the financial sector are not applicable to the private sector (Gauthier, 2010). It...
1 Pages(250 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Public Sector vs. Private Sector for FREE!

Contact Us