Essay Sample on Public and Private Organizations

Published: 2023-04-30
Essay Sample on Public and Private Organizations
Type of paper:  Essay
Categories:  Company Business Public administration
Pages: 3
Wordcount: 748 words
7 min read

A public organization is composed of businesses and companies where the government is recognized as the owner, using a majority shareholding. Public organizations are managed, controlled, and operated by the government. The private organization includes businesses, companies, and enterprises that are owned by individuals or private companies (Kuipers, Yesilkagit, & Carroll, 2018). Private organizations are managed, controlled, and operated by individuals or private entities. The paper is, therefore, premised on a discussion of the structural differences between public and private organizations.

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The structure of public organizations is one that is answerable to one body, which in most cases, is the government. The organizational structure is designed in such a way that it is independent with the view of financial support and other issues that may be considered critical. An example can be noted in a public organization that deals in postal services. The operations of the organization are usually financially independent but remain answerable to the federal government. Their managements are usually overseen by the postmasters and ensure that matters about delivery and customer-related services are addressed appropriately. As such, the organizational structure of public organizations is primarily dependent on the nature of activities conducted within the organization (Gerrish, 2016). It is not easy to find a public organization that deals in several activities. They deal in one activity that must be done to perfection, and any critical concern is forwarded to the national government. The organizations also have headquarters where complex issues are resolved.

The structure of private organizations can be discussed based on the hierarchies through which functions are discharged. Most of their structures are based on divisional structures coupled with the existence of different departments charged with specific duties. For example, the managerial department and the financial department are tasked with distinct functions that do not share any relations (An, Meier, Bollingtoft, & Andersen, 2019). The managerial department deals with the management of the general operations of the private organization involved. For example, ensuring the reviewing and monitoring of different systems and ensuring that focus is directed towards specific results. The results may get based on the improved output and sales of the organization's products; there also exists a concern on improved turnover and timescales (An et al., 2019). The finance department in a private organization is primarily charged with the role of bookkeeping and considering critical financial decisions that enable the key stakeholders to make appropriate decisions (An et al., 2019).

The differences between public and private organizations can, therefore, be viewed based on their levels of operations and the issues that determine the existence of their operational levels. For public organizations, the structure is based on the activity of the organization and supervisory body, which, on several occasions, is the federal government (Kuipers et al., 2018). Private organizations are, however, divided into hierarchies and departments. The hierarchies determine the occupants of various offices and the distinctiveness of their functions. The departments also simplify the roles for the employees to ensure proper and timely service delivery (Khan & Khandaker, 2016). For example, the managerial department is concerned with the general management of the organization. In contrast, the financial department narrows its activities to the provision of advice on matters finances to critical stakeholders during decision making.


In summary, there exist structural differences between public and private organizations. The dominant one has been noted based on its system of service provision. Public organizations are answerable to the government, while private organizations are answerable to senior departmental heads whose positions are hierarchically defined.


An, S. H., Meier, K. J., Bollingtoft, A., & Andersen, L. B. (2019). Employee perceived Effect of Leadership training: Comparing Public and Private Organizations. International Public Management Journal, 22(1), 2-28. Retrieved from

Gerrish, E. (2016). The impact of Performance Management on Performance in Public Organizations: A Metaanalysis. Public Administration Review, 76(1), 48-66. Retrieved from

Khan, A. R., & Khandaker, S. (2016). Public and Private Organizations: How Different or similar are they. Retrieved from

Kuipers, S., Yesilkagit, K., & Carroll, B. (2018). Coming to terms with the termination of Public Organizations. Public Organization Review, 18(2), 263-278. Retrieved from

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