The leading industries and companies that contributes to the maximum revenue and profit generation, are opting revolutionary techniques and management strategies so that they can easily manage with the rising need of excellence. On the contrary, the public sector is more into conventional and traditional ways that they practice and that is why there has been a great deal of planning changes that has been reached in most of the sector so that they can show the current market demand. The private sector seems to deliver more into skill set management rather than traditional ways of work ethics
3. Introduction
The leading industries and companies that contributes to the maximum revenue and profit
generation, are opting revolutionary techniques and management strategies so that they can
easily manage with the rising need of excellence. On the contrary, the public sector is more into
conventional and traditional ways that they practice and that is why there has been a great deal of
planning changes that has been reached in most of the sector so that they can show the current
market demand. The private sector seems to deliver more into skill set management rather than
traditional ways of work ethics. That might be one of the reasons why private sectors are so
popular and successful among the people all over the globe. There are so many companies and
organizations that are getting established everyday and these are due to standards set by the
previous slot. Increase the demand of quality human resource in private organization has given
rise to the human resource management sector that primarily looks into becoming more and more
skilled people in the system. There are several cases of public sectors that are in existence and
each of them have their own circle of principles and traditional ways of dealing with things and
that is why in some cases the public sector appears to be lacking the push that private sector
easily achieves. The public sector might be the one that people are more attracted to but with the
fewest intakes per year, the public sector seems to be less popular than it was during the eighties
(Zeffane, 1994). The public sector is also very much dominated by normative values and that is
why is so much hard to cope up with modern day changes. There are also many instrumental
values that the public sector is based on. With as much in line such as democracy, bureaucracy,
government and authority, the ownership somewhere gets diminished and that is one reason why
the module of work ethics that the public sector is based on, need to be revolutionized. There is
scope of changes in every sector but it is very important that these changes are applied quickly
4. into the sectors and in case of private sector they are more prone to adapt changes effectively. In
case of public sector it takes time and most of the time this becomes outdated.
Public sector
This sector is a part of the economy that is based on various government services. The things that
make this sector glamorous is the facilities and the terminal work ethics. Although the pace has
changed a lot in the last few years, this sector is yet to come up with the private sector. One of
the primary needs of a global organization of the scale of Public sector is usually to continually
motivate its employees so as to create an atmosphere of trust and respect in the workplace. This
type of atmosphere is required to match the workers as per the health factors mentioned in
Herzberg’s two-factor idea (Bratton et al., 2001). Barkley has always believed in the selective
motivational technique in which, often, the corporation focuses on maintaining the enthused
employees that perform more than employees with low motivation that perform poorly, the bank
purposefully located employees with high level of performance employees with the aim of
boosting up their productivity. It is done in sync with the Maslow law of hierarchical needs, as
different types of employees reach different stages of the pyramid of needs, as a result almost all
ambitious ones are getting priority over other in terms of perks & benefits such as incentive,
insurance, pension, etc. This can be a give & take relationship whereby Public sector assures the
financial support and job security in terms of high productivity and good bottom line (Hood,
1995).
Thus, Public sector today, believes in negative reinforcement theory and the technique of fixed
interval & fixed rate rewards. Archways slashed its fork out & bonuses in 2012 in order to
discourage misconduct. In 2013, the compensation of the employees was fixed to a certain extent
5. to avoid such misconduct. These policies, not just changed the outlook of the risk takers in the
organization, but motivated the lower level workers to have interacted in a participative role of
the decision making process. This promoted a reliable performance among workers, rather
compared to irregular and short bursts involving performance (Allison, 1980).
Types of public sector
• Central Government Departments
• Executive Agencies
• Public Corporations
• QUANGOs and Regulatory Bodies
• Local Authorities
• Arms- length bodies
Private sector and human resource management: Private sector is part of the economy that is
run by private individuals or groups. This is also referred as citizen sector.
With so many sectors evolving all over the globe, the number of companies and organizations
has increased over the years and this has paved the way for employment opportunities.
Organizations look for the appropriate human resource for their workload and that is where
strategy, planning and filtering process starts off. It is not always the best person that will win
you the race and it is certainly the one that always finishes the race. There are different
requirements for different companies and that is why it is important to understand the exact need.
6. The human resource team is in charge of getting the best in the business in their umbrella. The
process that they indulge in, is strategically planned and executed. But seeing if it is right all the
time, can the human resource practices cope up with the organization strategy, structure and
expectation? How durable is the bridge that connects an organization with the resources and how
flexible is the bridge? (Allison, 1980)
Private medical establishment - According to a recent survey, out of every 10 patients that visit
the specialist, 3 browse the information on smart phones. Mobile websites are very much handy
in case of service providing businesses. That is why it becomes for specialists to go to a good
mobile website. There are tons of benefits of using mobile websites. First of all it is very fast.
Secondly, these websites are tailor made sites, which means they can be easily browsed in the
mobile phones. These sites can be accessed from anywhere and anytime, provided you have an
internet connection (Osborne, 2002)..
A recent survey revealed a fact that almost 50% of the Americans own smart phones and that is
where all your potential patients are from. So, to target this base of patients, it is very vital that
you go to a good mobile website. These mobile websites enable the patients to get the
information instantly from anywhere and also they can call and book an appointment
immediately.
In this age of cutting edge technology where the Internet rules the world economy, it helps
companies and brands by providing them a platform to showcase their products. Social media
has been a revolution since its commencement. Several companies all over the world have been
using the social media platform to promote their products and in the process increase their sales.
In this age of modern technology, utmost care is taken by companies to promote their brands and
7. reach out to more and more customers. Social media has been a boon to the brand makers. But
there are certain ways to do it. To utilize the platform more efficiently, there are certain ways
that one needs to follow. In the case of medical sector too, these platforms are very essential as
they help the specialists and doctors to get connected to the mass. The more they get popular in
the social network, the more popular will be their service (Osborne, 2002). Mobile apps are quite
popular nowadays. Applications are designed in such a way that it is user friendly. For a
specialist, an app can be very useful in case of getting new patients. It will provide varieties of
information such as treatment available, treatment plans, treatment costs, booking appointments
etc.
Mobile apps are basically the tools that are helping to get connected to the mass and this enables
to get more and more new patients online. There are many good providers of such apps all over
the world. You can select one of them so that you get the best apps for your business. This helps
a lot in any business.
Although this concept might be a brand new one, but the capacity of this idea is very huge and
that is why there are many specialists that are using these things to get new patients and they are
quite successful in doing so (Hood, 1995).
Types of Private sector
• Sole traders
• Partnerships, Private companies
• Public companies
8. Human resource and the link
Private sector mainly involves handling employees of an organization as well as their joining
formalities, their payroll processing and employment laws. It is more related with clerical tasks.
The private sector is centralized solely till completing clerical work linked to employees of an
organization. It shares organizations’ goals, vision or mission with the staffs. The private sector
which is more into operational work, instead, deals with a wider area or maybe other sides of
employment, e. g. enhancing productivity or linking employee’s duties to organizational goals to
ensure organizational goals are met at the end. The private sector is very much wider compared
to “Personnel Management” or it could not be wrong if any of us say that Private sector is just a
part of Human Resources Management. Private sector emphasizes on extracting the best outside
of employees by managing employees and keeping them motivated to ensure their productivity
comes higher as well as organizational goals are met eventually. It deals with employees of
grievances in the office place. The private sector objective is to use the best talent at minimum
cost and converting a new employee to some well engaged employee. It really does succession
planning, train employees by identifying their training needs, performance reviews, and converts
the raw employment of a person who is able to take higher roles and responsibilities. The role
and responsibilities of series managers in relations to Human being Resource Management
function depend a great deal on achieving organizational goals as well as Private sector success.
Individual employee or possibly a team of employees directly reviews to line managers; hence
they know best about those employees and aids assessing their exact performance. They help
with training these workers in order to take higher responsibilities. Line manager’s best know the
training requirements of a certain employee. They manage the day to day activities with their
team and provide best techie guidance. They are the ones who monitors everyday work of
9. employees, hence they may be the best persons who aid in assessing the correct performance
associated with employees and their development requirements. The private sector is something
which is all about Human Resources or Employees. A lending broker takes the work out of
personnel, and there are a large number of legal or regulatory laws related to labor/ employees
governing their protection under the law and benefits, hence, private sector has to handle all
those laws and tips. The private sector is supposed to follow along with government defined laws
and guidelines linked to employees. Legal & Compliance guidelines is really a very sensitive
matter which can in different condition cannot be overlooked, hence, the first impact of this on a
private sector is that there has to be a dedicated team of qualified persons who can manage Legal
part of Private sector and make certain that all the guidelines are available and are followed. HR
must ensure an employee benefit as defined in numerous legal laws (Hood, 1995). Right from
prospecting employees, taking care of them at work, giving them salaries as per their designation
and Medical Insurance, entitlement of leaves much as per the law and guidelines. Hence, the
Private sector has a large as well as important impact of legal & regulatory framework which if
not followed properly, the organization can fall under trouble. During lack of employees, useful
resource planning or proper private sector planning won't be right. There would not be any
retention strategy. Due to lack of right talent in the right department, there can be many problems
which the organization may face. There won't be an adequate number of personnel, hence, the
optimal use of the resource will not happen, and nobody will act as per required guidelines.
Human Resource Planning plays a pivotal role in terms of managing employees. In absence of
private sector planning, there won't be cost savings, proper assets with proper guidelines, and
correct delegation of work. Legal & Compliance related guidelines won't be followed. In a
nutshell, an organization would not have the ability to meet its goals in lack of proper Human
10. Resource Planning. The Private sector planning activity planning involves building a projection
on the workforce requirement, to fill the position within the organization, particularly in a
volatile environment. The private sector needs to examine their short term along with long term
requirements for employing new workers. Motivated employees are crucial for almost any
organization to achieve its aims. Motivation is something which comes from the management.
So, the employees should be motivated all the time. It is completely an individual’s decision to
decide how much energy or effort is required to perform a task. To get goals completed or target
met from a small group of workers, it is crucial to maintain them motivated. An employee works
when he feels engaged with the organization or the task he could be given. There are many
aspects affecting motivation. If we look at rewards, it is linked to motivation since if the reward
are likely to be distributed fairly, employees’ motivation level will be higher and so they will
become productive (Osborne, 2002).
At Royal Bank of Scotland, the link between motivational hypothesis and reward is direct.
Below, employees’ performance is assessed fairly and the reward is distributed. From time to
time, many benefits and reorganization schemes and programs are launched for every functional
departments in which they acquire some reward in getting target accomplished or goal met.
Hence, to acquire that reward, the employees are inspired and they work sincerely and harder,
which results in higher output. Many of us in our lives come across the term “compensation” in
terms of getting paid for the work we do. Compensation management objects to assist an
organization in achieving its strategic aim in conjunctions with internal along with external
equity. Where internal equity ascertains that extremely qualified people or higher level positions,
are paid comparatively far better. External equity ascertains that the jobs are compensated at the
same rate as it is available in other companies. HRM regulates the employment relationship to
11. the organization. The session of the employment will be based on the contracted terms and
conditions placed in the contract of employment or the policy guidelines of the employer. Other
than this, common law can be found, statute law and statutory instruments are also linked to the
employment. The staff gets the option of approaching the courtroom individually under case law.
Thus, breaches of contracts between the employer and the employee could be taken to the
employment tribunals as well as courts. Also, the breaches from the statute law can be used up
with the employment tribunals (Cornelius, 2002). There exists the Employment Rights Act 1996
that the court identifies the categories of employment and provides the perfect definition of
employment status. In the common law, it makes the categorization of employment which
depends on reliable tests. Employees can access the legislation only when they comply with the
statute dependent on continuity of service as stipulated from the Employment Rights Act 1996.
Much like the statute, temporary cessation of work will not be regarded as a break in continuity
involving employment. Generally, session is based on the company’s policy and contractual
agreement decided between the employee and the employer. If the session is as per the terms
agreed in the contract, the worker will have no recourse to the law. On the other hand, if there are
unfair dismissals (Lind, E. A, et al (2000)) or there are no written contracts, natural justice and
implied terminology under common law will be taken into account and employees have the right
in involving fair dismissal. The policies and procedures with regard to resignation or termination
of Barclays Bank can happen in the following situations. A confirmed employee may leave or
resign by providing one month’s notice in composing or pay one month’s pay. In the case of
short-term or probationary employees, 15 days salaries or notice is sufficient. That leads to the
exit appointment and return of any traditional bank property. In case, the bank asks an employee
to leave, it may happen only in the case of an employee who is not yet confirmed by the
12. company or if he has any integrity issue. In this situation, the concerned authorities of the bank
may terminate the services of the confirmed employees without giving any reason by providing
one month notice or check of one month salary rather than notice. The termination of
probationary or temporary employees could be made without assigning any reason and without
notice. Terminated employees will not receive any compensation in return. In case of HSBC
Bank, the notice period varies, ranging from one month to three months with regards to the
period of service (Cornelius, 2002).
Conclusion
The difference between private sector and public sector cannot be scaled and that is why the
profit generation and the effectiveness of both the sectors are taken into consideration. Hence, it
can be concluded that private sectors are very successful in coping up with the pace and
technology along with the rising demand of excellence where as the old traditional ways of the
public sector has slowed down its progress.
13. References
Zeffane, R. (1994). Patterns of organizational commitment and perceived management style: A
comparison of public and private sector employees.Human Relations, 47(8), 977-1010.
Hood, C. (1995). The “New Public Management” in the 1980s: variations on a
theme. Accounting, organizations and society, 20(2), 93-109.
Allison, G. T. (1980). Public and private management: are they fundamentally alike in all
unimportant respects? (pp. 283-298). John F. Kennedy School of Government, Harvard
University.
Osborne, S. (2002). Public-private partnerships: Theory and practice in international
perspective. Routledge.
Hood, C. (1991). A public management for all seasons?. Public administration,69(1), 3-19.
Rainey, H. G., Backoff, R. W., & Levine, C. H. (1976). Comparing public and private
organizations. Public Administration Review, 233-244.
Kickert, W. J., Klijn, E. H., & Koppenjan, J. F. M. (Eds.). (1997). Managing complex networks:
strategies for the public sector. Sage.