Skip to main content

Objectives of Public and Private sector organizations – A comparison

Both public sector and private sector organizations have objectives and missions. But depending on the type of organization, there are differences between the public and private sectors of a country. Some of them are discussed below.

  • Public sector organizations are established by statute or a similar vesting document passed by the government or other law making bodies. Therefore, managers cannot change them according to the changing conditions. On the other hand, directors of a private sector organization may determine its objectives and change them whenever necessary.
  • Output of a private sector entity can be valued by the paying customers and therefore can be incorporated in its objectives, missions and decision criteria. It may not be possible to allow the market to determine the income of a public sector entity.
  • When a private firm fails to meet the aspirations of its stakeholders, it can result in serious consequences which can lead to even closure of the firm. In the public sector, disbelief can be suspended for long periods, with the result that some stakeholders’ aspirations are ignored.
  • Private sector firms should earn a satisfactory return on investment otherwise the investors might withdraw the investment in the firm. Public sector organizations still consider that their capital is free and therefore, the need to earn a return is always ignored.
  • Concerns of the business manager in protecting environment

    Protecting the environment is considered nowadays as a key issue affecting everyone. Business organizations are pressurized to ensure that the environment suffers minimum damage due to their processes, products and services.

  • Regulatory Authorities Objectives and main activities

    Regulatory bodies are established in countries according to the policy of the government with different types of authorities. Regulatory rules are designed to meet government objectives.

  • What is a Search Engine and how does it work

    A Search Engine is a web site designed to search for information on the World Wide Web. What happens when someone enters a query into a search engine? The Search Engine then examines its index and displays a list of best-matching web pages.

  • Interest Rate A major economic force affecting financial plans

    Rate of interest is the price of money which is lent or borrowed. It is always expressed as a percentage of the sum lent or borrowed. It is generally calculated on an annual basis.

  • Effects of high inflation

    Inflation means rising prices and it shows the increase in cost of living. In economics, inflation is explained as rise in the general level of prices of goods and services in an economy over a period of time.

  • A profit for the not-for-profit organizations

    Not-for-profit entities do not expect profits. They are established not for profits but to achieve different objectives of the society. But, can these organizations operate without identifying and satisfying the needs?


Dilli Ram on October 05, 2017:

Will you help me to provide some points that is objective private sector in government

Jacobina Eliakim on March 05, 2017:

this helped me a lot with my assignment for public sector

Manish bhoite on September 24, 2016:

I am vikas college student I like web 'cause it always help to me for giving information.

Rishi on September 17, 2016:

This is as same as in test book of HND Computing (E-Commerce),So in is very easy for me to do my Assignments.

Lameck Peter on April 04, 2016:

why Tanzania government can benefit in private sector rather than public sectors?

Mandy on December 09, 2015:

Thank you! This helped a lot.

Govind sharma on May 15, 2015:

Scroll to Continue

Very easily information take it. Nice dear

Duffix@DWU on October 02, 2013:

It's a very helpful page...Thank you!

Dennis AuBuchon from Ohio on August 09, 2013:

This is a great hub with interesting information. I voted up, awesome, useful, interesting and beautiful along with liking, tweeting and pinning

Lasantha Wijesekera (author) from Sri Lanka on March 14, 2013:

Thank you Shamzii for visiting this page and commenting. Do your studies well.

Shamzii Harold on March 09, 2013:

My name is Shamzii Harold i go to school at Port Mores-by International School which is known as POMIS I take business Studies lessons and i love this page because it gives every information i need.. Thankyou

param on February 16, 2013:

very helpful

kitea harriet on November 27, 2012:

am a student of public Administration in makerere university i love web because it gives me lots of info for my personal reading

Tanya Dutta on July 24, 2012:

thanks for your yummy comments!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Lasantha Wijesekera (author) from Sri Lanka on May 29, 2012:

Thanks ClarkParker for your encouraging comments.

ClarkParker from California, USA on May 29, 2012:

Interesting! This information can be a great help especially for students who are taking business related course. Voted up!

Lasantha Wijesekera (author) from Sri Lanka on May 20, 2012:

Thanks for the comments.

Peter Mogha on May 20, 2012:

I am a student in Malawi Central Africa persueing a course in business management and I like this web as it provides me with all the info i need.Thank you.

Lasantha Wijesekera (author) from Sri Lanka on April 18, 2012:

Thanks for your comments. Wish you every success at your exam.

Lawrence ochieng on April 17, 2012:

I am a student undertaking an abe course of dip in bm and this info will be of much help to me while preparing for my exam coming may è0th

Related Articles