The major advantages of privatization are as follows :-
1) It frees the resources for a more productive utilization.
2) Private concerns tend to be profit oriented and transparent in their functioning as private owners are always oriented towards making profits and get rid of sacred cows and hitches in conventional bureaucratic management.
3) Since the system becomes more transparent, all underlying corruptions are minimized and owners have a free reign and incentive for profit maximization so they tend to get rid of all free loaders and vices that are inherent in government functions.
4) It is less burdensome for the government.
5) Effectively minimizes corruption and optimizes output and functions.
6) Gets rid of employment inconsistencies like free loaders, or over employed departments reducing the strain on resources.
The major disadvantage of privatization is that private firms are less tolerant towards capitulations and appendages in government departments and hence tend to right size the human resource potential befitting the organization's needs and may cause resistance and disgruntled employees who are accustomed to the benefits as government functionaries.
1) It frees the resources for a more productive utilization.
2) Private concerns tend to be profit oriented and transparent in their functioning as private owners are always oriented towards making profits and get rid of sacred cows and hitches in conventional bureaucratic management.
3) Since the system becomes more transparent, all underlying corruptions are minimized and owners have a free reign and incentive for profit maximization so they tend to get rid of all free loaders and vices that are inherent in government functions.
4) It is less burdensome for the government.
5) Effectively minimizes corruption and optimizes output and functions.
6) Gets rid of employment inconsistencies like free loaders, or over employed departments reducing the strain on resources.
The major disadvantage of privatization is that private firms are less tolerant towards capitulations and appendages in government departments and hence tend to right size the human resource potential befitting the organization's needs and may cause resistance and disgruntled employees who are accustomed to the benefits as government functionaries.
