Question

Since the 1960s, much of the focus of organizational studies has been on the role of organizational environments and their influence on how we structure and manage organizations. A large body of public administration research also has explored the distinctions between public and private sectors, particularly the question of how the political environment of public organization makes public organizations distinct from generic management or management of private firms.

Assess the state of theory and research on organizational environments.

What have we learned about the role and influence of the environment from previous research on this topic?

In what ways is the public sector environment different from the environment in which private firms operate?

What effects do theses differences have on public management?

Answer 1

Historically there has been a great difference in organisational environment of public sector and private sector which over the period has reduced to a great extent but still exists.Below mentioned are the some differences:

1) Recruitment policies are very different in both the sectors. Certain percentage of recruitment is done by reservation system in public sector where as it is not the case in private sector.

2) Salary Structures are very different in both the sectors.There is a huge component of perquisites included in CTC of employees of public sector where as in private sector most of the CTC is given in cash.More cash in hand is a preferrable CTC srtucture by many young people.

3) Lack of proper infrastructure in public sectors leads to delay in work.

4) Salaries in private sector are much higher than in public sector which enables them to recruit best talent from the industry.Budgets is a constraint for public sector and therefor scarcity of talented people which in turn affects the performance.