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Public Organisations Should Be More Business-Like

In: Business and Management

Submitted By Hippoman04
Words 1207
Pages 5
Public organisations should be more business-like.
Introduction
There is no lacking of support in the society advocating that public organisations should be heading towards into a manner that is more business-like, in other words, to adopt the business model that private companies operate. However, there are also people in the public suggests that the public sector should keep its operating model for public and private organisations are operating to achieve different goals in the society.
This article is aimed to examine whether organisations in the public arena should be run more business-like through situational examination, literature reviews and detail market analysis. In this paper, the author will discuss the difference between the public sector and the private companies in terms of business objectives, the uniqueness of public services offer by the public sector before the discussion of whether public organisations should run more business-like.

Public Sector Vs Private companies
By their very nature, public and private sector businesses are very different organisations operating to fulfil different objectives. The public sector has public accountability and therefore institutions in this sector is usually are owned and operated by the government. Organisations operate in the public sector, for example, the Royal New Zealand Police is under a mandate to provide a public service to safeguard the safety and wellbeing of the residents in New Zealand. The service is funded by the New Zealand Government through its income from tax payers.
The private sector, on the other hand, consists of organisations that are privately owned and not part of the government. The private corporates exists to run a commercial operation primarily offer product(s) and/or service(s) with the ultimate goal of generating a profit and provide a reasonable rate of return for their

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