Muhammad Waleed Kiyani

BBA-II
Section-A
Principles of Management
21-ARID-1889
Assignment # 4
08-June-2022
Difference Between Public and Private Sector
Management.
Management has a significant role in the
organization. It arranges the factors of production,
assembles and organizes the resources, integrates
the resources in effective manner to achieve goals.
There are two types of organization:
 Public sector organization.
 Private sector organization.
Public Sector Organization
Public Sector Organization is owned and controlled
by the government providing services to public of
Pakistan. Public sector organizations focus on
services to the public as a whole, including
education, welfare, the legal system,employment,
natural resources and health services.
Pakistan Atomic Energy Comission is federally
funded independent governmental agency,
concerned with research and development of
nuclear power, promotion of nuclear science,
energy conservation and the peaceful usage of
nuclear technology. The PAEC organizes
conferences and directs research at the country’s
leading universities. Its full time members consists
of the appointed Chair; a finance member ;and two
technical members.

Private Sector Organization

Private sector organizations are owned, controlled
and managed by the individuals, groups or business
entities. These businesses are driven by profit. The
profit from private sector organizations benefits the
owners, shareholders and investors.
Hub Power Company Limited known as HUBCO, is
the first and largest Pakistani Independent Power
Producer (IPP) with a combined installed power
generation capacity of 2920 MW. HUBCO is the only
power producer in Pakistan with four projects listed
in the China-Pakistan Economic Corridor CPEC.

Public and Private sector management

Some differences between public and private sector
management include:
1.Corporation types:
Public sector managers may provide their expertise
for groups:
 Government agencies:
These are organizations established and
financed by local, state and national
governments.
 Public purpose corporations:
These corporations are similar to nonprofits but
created by the government to serve a public
interest, such as public libraries.
 Public authorities:
 The government creates groups to monitor and
regulate infrastructure projects, such as a
housing authority.

Private sector managers may use their skills for

companies like:
 Sole proprietorship:
These are businesses owned and operated by
one person.
 Partnership:
Comparatively , these businesses are owned
and operated by two or more people, such as
law firm.
 Small and medium-sized business enterprises:
These companies have 500 to 2000 employees,
as regulated by the U.S.Small Business
Administration.
 Multinational corporations:
These businesses have interests and assets in
more than one country.
 2.Merit:
 Public sector:
Public sector managers concern themselves
with the public interest. This means what the
public needs,what’s for the government or
what has the best impact on the overall
collective of society. They are about the needs
of majority before the needs of an individual.
 Private sector:
Private sector management is largely, if not
wholly, focused on making the business a profit.
The primary goal is to make the most money
possible for a company or organization to keep
it in business.
3. Objective:
 Private sector:
For private sector managers, goal setting can be
a straightforward process. The top priority is
making money for the company, so that aim
dictates the set of goals.Managers use data and
 clearly defined measures to plan their business
strategies. They also have fewer personal
interests to factor into their decisions.
 Public sector:
Setting goals for public sector managers may
take more time and input. Their goals may focus
on the feelings and perceptions of the public
rather than facts and and data alone. This is
because their decisions apply to larger groups
of people and multiple businesses.

4. Responsibility:
 Private sectors:
Private sector managers have a smaller group to
whom they’re accountable. They may report to
and try to please board members, company
owners and shareholders. They’re only
beholden to people who care about the money
made of the company.
  Public sector:
Public sector managers have accountability to a
larger group of people. They work to please
politicians, residents, business owners,
travelers, public servants and sometimes even
foreign interests. Their jobs and decisions affect
these people and groups. Public sector
accountability is one reason for the checks and
balances system in government. It prevents one
interest from capturing a manager’s attention
and serving that interest’s personal agenda
over what’s best for the group.
5. Tenancy:
 Private sector:
Upon hiring, private sector managers can stay in
their positions for the rest of their careers if
they choose. They earn their positions or
promotions based on skills and quality of work.
If they’re doing a good job and the company is
 stable, there’s no reason for them to lose their
jobs.
 Public sector:
Similar to hiring practices, this process is less
clear for some public sector managers because
of elections and appointments. Some positions
have set term lengths and limits, like President
of United States.
6. Economic Consumption:
 Public sector:
Managers in public sector businesses typically
oversee services. They benefit the public and
receive funding through tax dollars. These may
include services like access to medical and fire
assistance,public defense and access to clean
natural resources.
 Private sector:
Managers in the private sector may oversee the
production of both goods and services, fom
things like food or clothing to the construction
 of homes or buildings. No matter what they
oversee, it’s consumable. You can buy and trade
their goods and services for a monetory value.
7. Government Supply:
 Public sector:
Public sector managers may handle government
money to run their organizations. They receive
government stipends for equipment and
services.
 Private sector:
Private sector companies receive little or no
financial support from the government, outside
of grant applications or emergency situations.
These managers do not budget or plan to
receive government money to run their daily
operations.