What Makes Government and Public Sector Different from the Private and Nonprofit Sectors

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For decades, many scholars have been explaining how different the public and private sectors are. In general, the public sector consists of government owned and operated organizations and institutions such as educational bodies and police and prison services whereas the private sector is composes of organizations that are owned by private individuals such as retail stores. The private sector is profit oriented while the public sector is dedicated to providing essential services to the public. From this general differences, the two sectors are different.
One of the characteristics that differentiates the public sector from the private sector is its complex processes that are necessary for it to function in the economy. These processes do not only show high degree of formalization but also involves a lot of rules and regulations that must be complied with. All public organizations have several rules and regulations because its authority is divided among the three branches; judiciary, legislative and executive. This higher levels of regulations are implemented to ensure that there is no abuse of power and transparency exists in this sector (Feeney & Bozman, 2009). The level of formalization in the public sector exceeds that of the private sector.
Managerial level is another factor that differentiates the two sectors, how they differ is based on the decision-making process. Managers in both sectors make decisions differently, this can be analyzed based on how managers in both sectors interpret a conflict during a strategic decision-making process. It has been suggested that managers in the private sector view a conflict as a hindrance. They consider it to be an indicator th...