A few advantages include more opportunities in the private sector and more job security in the public sector.
Private sector advantages
In the private sector you have more job opportunities and possibilities of promotion as the company becomes larger. These jobs are also higher paying and often provide more prestige since the private sector is supposed to be more efficient. Also in the private sector you have less bureaucracy to interfere with the daily running of the business.
Public sector advantages
In the public sector it can be more difficult to get fired; therefore, one has better job security. There is a long bureaucratic process for those in the public sector to get fired. The public sector can have more benefits or at least more generous benefits. For some it can also be a more relaxing atmosphere than the private sector which has to constantly remain on top in order to survive.
Private sector disadvantages
Though the question did not ask for them there are disadvantages to the private and public sector. The private sector has less job security, a competitive atmosphere, fewer workers' rights, and fewer benefits. The workers' rights can sometimes be infringed on and this is why it can be a disadvantage as well as an advantage. In other words, workers' rights are an advantage to any job, but when they are infringed on this makes them a disadvantage.
Public sector disadvantages
There are often fewer positions in the public sector with lower pay and less flexibility. Public sector jobs tend to pay less because the public is funding the position, whereas a private company gains capital through investments and sales that can lead to higher capital and thus better wages. There are advantages to both sectors that can be attractive to job seekers.
The purpose of the public sector and the public organization is to seek the well being of the people not profit driven and also to development the country and to help the citizens in the economic development whiles the private sector and the private firms their main motive is to make profit and also they invest in projects that will benefit them.
The purpose of the public sector and the public organizations is to initiate such projects that will be used by all the citizens of the country and will aid in the economic development. The motive of public sector is not profits but development that will facilitate the private sector in its activities. The public sector has more resources at its disposal and carries out the projects with the public’s money for example that collected from taxes. After the development, the infrastructure can be used by every one. On the other hand the private organizations are profit driven and they like to invest in projects that will give them the most benefits. The source of funds for private investors is their own money or loans. After the completion of the project, the private sector tries to limit the access to just those who will provide them with the maximum benefits.
A private sector in an economy is made up of all businesses and firms owned by ordinary members of the general public. It also consist of all the private households in which people lives..,whereas, public sector in an economy is owned and controlled by a government . It consist of government businesses and firms ,and goods and services provided by the government,such as the national health service, state education, jobs, roads, public parks and law and order.
In public sector accounting the entries are recorded in cash basis. I.e when the cash is received or paid.how ever in private sector accounting the entries are recorded in accrual basis.i.e when the transaction occurs.fixed assets are treated as assets in private sector accounting.but it is treated as expenses in private sector accounting. The financial statement of public sector must be disclosed to the public when the year ends. But it is not a must to disclose the financial statement of private sector.
Public Free services such as, schools and hospitals Government can offer jobs for people/more employment. Income is more even. Higher job security for workers Non-profit driven – don’t overcharge customers Can accommodate high market changes due to the fact that they’re run by the Government Access to finance
private higher wages profitable business can become a monopoly
The services which the public sector provides are for the masses and are provided to all the people. The society gets to benefit from the products and services provided by the public sector and everyone gets equal opportunities.
There is a lot of centralization and even in the case of poor service or product quality; nothing can be done about it. Due to a lot of centralization, there might be conflicts between the management and the unions. In case of unavailability of a product or service, the public can't do anything about it. If the management is uncompetitive, no one can complain about it or do anything unless the owner which is usually the government does something about it.
Public sector management has undergone significant changes over the recent past. Examine the successes and failures of new public sector management as a strategy?
