Public Sector Management: Privatization as an Answer
"To see privatisation and private sector practices as the answer to the problems of public services is to fail to understand the essential differences between the public and private realm. The public realm often has to deliver services that are essentially unprofitable, such as accident and emergency services. In these cases, efficiency and effectiveness cannot be measured by profitability and different measures relevant to the public domain are necessary."
In relation to the inherent differences between the public and private sectors, discuss the extent to which you agree with the above quotation in the light of the growth of New Public Management.
Public sector organisations are created by the government and are therefore under the control of the government. They are concerned with the provision of public goods and services. (Mullins, 2005). "Aim to be for the good of 'society' at large. The 'society' or community as well as the individual is, in the conception of service provider, the object of concern or care." (Ackroyd, Hughes and Soothill, 1989, 609) Flynn (1997) argues that the goods and services provided are not held from people who cannot afford them. Also they are not sold at a price, which yields profit as the public sector focuses on the rationalisation not marketing. …
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