Public and private sector organizations play an important role in the business world. To begin with, private organizations are controlled and owned by private individuals but public organizations are owned by the government. For example, the U.S Department of the treasury is government owned but a company like Apple Inc. is private. However, both organizations are different and they are run using different principles. For instance, the goals of public organizations are different from those of private institutions. The public sector deals with the public and may operate freely but private organization focuses on serving specific individuals or organizations in order to create profits. More importantly, public organizations are subject to more accountability than private organizations.
Although the private organizations are answerable to their investors and customers, public organizations are answerable to the general public. Additionally, private organizations have a specific and direct focus while the public organization focus is controlled by changing policies and expectations. For example, Apple Inc. focus is to make phones and profits but the department of treasury focus may change with changing policies. Moreover, the procurement process in the public organizations takes long compared to the private organizations. Unlike public organizations which may involve different players in the decision process, private organizations follow a clear and short decision-making process.
Additionally, budgets in the private organizations are controlled by customer demands but budgets in the public organizations are controlled by lawmakers and leaders. As a result, the key success factors in the public institutions mainly involve the best management practices while success in the private organization is based on their uniqueness and growth rate.
In short, understand the difference between public and private sector organization is the key to performing well in the CJA 365 course. The good thing about public and private sector organization is that they both follow the same budget process.
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