MANAGEMENT OF CHANGE AND ORGANIZATIONAL DEVELOPMENT
DEPARTMENT OF MANAGEMENT STUDIES
SAM CHACKO VADAVANA
INDIAN EXPERIENCE OF ORGANIZATIONAL DEVELOPMENT IN PUBLIC & PRIVATE ENTERPRISES
The public sector, sometimes referred to as the state sector or the government sector, is a part of the state that deals with either the production, ownership, sale, provision, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal. Examples of public sector activity range from delivering social security, administering urban planning and organizing national defence. The organization of the public sector (public ownership) can take several forms, including: * Direct administration funded through taxation; the delivering organization generally has no specific requirement to meet commercial success criteria, and production decisions are determined by government. * Publicly owned corporations (in some contexts, especially manufacturing, "state-owned enterprises"); which differ from direct administration in that they have greater commercial freedoms and are expected to operate according to commercial criteria, and production decisions are not generally taken by government (although goals may be set for them by government). * Partial outsourcing (of the scale many businesses do, e.g. for IT services), is considered a public sector model. In spite of their name, public companies are not part of the public sector; they are a particular kind of private sector Company that can offer their shares for sale to the general public, i.e. to anyone willing to buy them. The roles of public sectors are as follows:
The role and scope of the public sector and state sector are often the biggest distinction regarding the economic positions of socialist, liberal and libertarian political philosophy. In general, socialists favour a large state sector consisting of state projects and enterprises, at least in the commanding heights or fundamental sectors of the economy (although some socialists favour a large cooperative sector instead). Social democrats tend to favour a medium-sized public sector that is limited to the provision of universal programs and public services. Economic libertarians and monarchists favour a larger private sector and small public sector with the state being relegated to protecting property rights, creating and enforcing laws and settling disputes, a "night watchman state".
The private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state. By contrast, enterprises that are part of the state are part of the public sector; private, non-profit organizations are regarded as part of the voluntary sector. Private Sector Development (PSD) is a strategy for promoting economic growth and reducing poverty in developing countries by building private enterprises, membership organizations to represent them, and competitive markets that are stronger and more inclusive. Supporters argue that PSD is an important part of poverty reduction. Whether as workers, subsistence farmers or entrepreneurs, most poor people already participate in markets. Strengthening these markets in ways that secure higher incomes for the poor is therefore seen by PSD advocates as a fair and efficient way to fight poverty. Earning a decent income in the private sector, it is argued, is also more dignifying than relying on hand-outs. As with all development interventions, PSD programmes are under pressure to measure and report their achievements, monitoring and evaluating their work in ways that are both credible and cost-effective. One source of further information about methodologies for measuring the results of PSD, including...
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