What Are the Differences Between the Public Sector and Private Sector?

The private sector is the symmetry of the "public sector" and refers to the enterprises and institutions owned by individuals, families, and private individuals.

Private sector

Right!

The common characteristics of these economic actors are that their activities depend on individual income, individual assets, and they are divided into two sub-sectors: the family sector and the private enterprise sector. The former is engaged in personal consumption activities, while the latter is engaged in private investment production; the former's behavioral goal is to maximize the utility of the individual or family, while the latter's behavioral goal is to maximize profit.

I. Differences in management goals: different values

(I) Political and economic conflict

Organizational values. It is mainly reflected in two aspects: fairness and efficiency. The difference between the value orientation of the public sector and the private sector in human resource management is first manifested by the conflict between politics and economy. The primary value orientation in government governance is political priority. The government must make political responsiveness and social equity the first principles of human resource acquisition. The government must reflect fair sociality while basically guaranteeing individual rights.

Because of its public nature, the public sector has the right to allocate most of the resources. It must first be fair and just in handling various public affairs in order to achieve fairness and justice in allocating resources for the whole society and allocating opportunities for resources. As the acquirer of social resources, the pursuit of efficiency and effectiveness is its basic value orientation. The human resources it manages and uses also serve this purpose. The human resources management department of the enterprise only orders the leader. The leader can completely decide the appointment and use of employees. The needs of employees are obtained through professional job analysis, and fully demonstrated through job descriptions and training programs. Hiring and firing Employees rarely consider external pressures, and the relative lack of political responsibility and social responsibility.

The first consideration of enterprise human resource management is not political responsiveness and social equity, but exchange and return in economic life. The law of equality in the market economy system is hardly affected by the former-political value, while human resources management mainly considers who enters these positions in the enterprise will be most conducive to the development of the enterprise. The return given by the company is based on the contributions made by employees to the company. Not the employee's gender, ethnicity, or past experience.

(B) the conflict between stability and efficiency

Another difference in the value orientation of the two sectors is the different focus on stability and efficiency. China is in a period of social transformation. In this context, the government's human resources management is subordinated to the general goal of the political system. When confronted with the conflict between stability and development, it first focuses on stability. The human resources management department as a government system must be loyal to this basic value orientation, devote itself to seeking a set of reasonable and effective human resource management operating procedures, and strive to legalize it. The basic criterion for judging the success of this system is not its efficiency in promoting social development, but its degree of transparency and public acceptance. Whether it can fundamentally guarantee the stability of government operations. In order to maintain social stability.

Enterprise human resource management is more concerned about the operating efficiency of the enterprise. Efficiency is the life of an enterprise. The human resources management department of the enterprise formulates human resources management specifications around the core of "efficiency", and also breaks these specifications based on the need for efficiency.

(3) Conflicts with political relevance

The difference in values is also reflected in the relevance of organization to politics. Value sought by the public sector. It has a lot to do with the political goals of the organization. The civil service system in western countries emphasizes "political neutrality", while China has a negative attitude toward "political neutrality". Our civil service has a clear political position.

Government management exists and develops based on external needs, that is, social needs. Its human resource management system must be oriented to the society and bear the pressure of the society. In the management process, it is often the internal demands that yield to external pressures. Especially in the process of obtaining human resources. When deciding who to hire, decision-makers often use external pressure as the first consideration.

The human resource management of the private sector is far less closely related to politics than the public sector, and it is very closely related to the economy and the market. The human resource management of an enterprise regards the inherent needs of the enterprise as the first motivation. The internal needs of the organization are confirmed through professional job analysis, and fully demonstrated through job descriptions and training programs. Because of the relative lack of political responsibility and social responsibility. When hiring or firing employees, organizations are less concerned about external pressures.

Second, the differences in the focus of management

Human resource management can be divided into four aspects: selecting, employing, educating, and retaining people. In this regard. The procedures for human resource management in the public and private sectors are not much different. However, their focus does differ. The public sector pays more attention to the acquisition of human resources while the private sector pays more attention to the development of human resources. The root cause of this difference is determined by the basic value orientation that the two systems uphold.

In the public sector, human resources management is most concerned about political responsiveness and social equity. The acquisition of human resources can best reflect these two characteristics. Therefore, the public sector pays special attention to personnel recruitment. At the same time, because the public sector's attention is subject to external pressures, it makes public sector performance evaluation difficult, making it difficult for the public sector to use profit as the sole indicator, and it is difficult to quantify the administrative performance of the public sector. Therefore, it is easy for the public sector to ignore the internal human resources development and performance evaluation links. To this day, China has not conducted a comprehensive and systematic work analysis of government official activities, and has not formulated scientific and standardized job descriptions.

Based on performance considerations, the private sector pays more attention to the development functions of human resource management. Staff training, education and development program design and performance evaluation, and employee career planning have become important tasks for human resource managers. Due to the inherent competitive pressure and the certainty of performance evaluation standards. Employees also have great interest in the development of human resources.

In addition, in terms of human resources management procedures, the public sector generally has one more procedure than the private sector. Human resources management plans in the public sector, especially recruitment plans, must be approved by the organization at the next higher level.

In short, in the current situation. Human resources management in the public sector has more characteristics of traditional personnel management; in the enterprise, people are regarded as the key factor that makes the organization stand out from the fierce competition, and it is committed to making the human capital increase to the enterprise to create greater benefits .

Third, the quality and requirements of personnel are different. The specific implementation of basic functions is different

(I) Different recruitment, training and development of personnel

Based on different value orientations, the public and private sectors have different requirements for employee characteristics. The public sector exercises public power. Facing the public interest, public servants are required to have a high level of political literacy and moral standards. Because its activities are demonstrative and oriented to the whole society, it is generally required to "speak about politics"; corporate personnel exercise their private rights, and their activities proceed from the requirements of the enterprise. More important is the ability to operate and market development. Public sector personnel are required to be relatively stable. Due to the strict hierarchical system, the relationship between command and obedience, the exertion of various personalities will be restricted to a certain extent; the managers in enterprises have greater initiative and instability. There is more room for individuality to play.

(II) Different sources of wage income

Due to the different sources of wages, this makes the public and private sectors dependent on the extent of material incentives for employees. The salaries of public sector personnel are derived from the state fiscal expenditure, which is a secondary distribution of taxes collected by the state, which is extremely rigid.

The salaries and out-of-wage recipients of enterprise personnel come from the enterprise's own profits. Enterprises can freely determine the distribution ratio, have weak rigidity, and have great flexibility in terms of material incentives.

(Three) there is a difference in performance evaluation

The performance of public sector personnel mostly manifests as social public benefits, involving many factors and subjective evaluation criteria, making assessment difficult. When public sector institutions are weak, creativity is often associated with instability. Simultaneously. The public sector has high requirements for the loyalty and responsibility of public officials. Loyalty is the basic requirement of political responsiveness to civil servants. Civil servants have loyalty to the Constitution and laws, and to the party and the state. It is the basic guarantee for the smooth operation of government organizations, so it has become an institutional requirement. The sense of responsibility of civil servants is the guarantee of the safe operation of the government organization system, and it is also the basic prerequisite for the effective operation of the government. Higher moral quality is the basic requirement of society for the operator of public power and the need to maintain the reputation of the system.

The ability of civil servants is the basic condition for performance management. Although the government does not regard management performance as the first goal (many governments verbally call it the first goal to meet the expectations of the public), performance management is indeed becoming more and more important today. The job classification system in government personnel management is reflecting this requirement. A competent civil servant must possess the basic competencies required for the position.

In the private sector. Employers first require employees to have the necessary professional competence. Professional competence refers to the degree of familiarity with the profession, and the skills and abilities to handle specialized business.

The necessary professional competence is the basic capital for employees to obtain positions. Employers also want employees to be more creative. This means that employees may bring higher efficiency and the performance of more wealthy business personnel can be directly or indirectly measured in the form of profit, and evaluation is relatively easy. In the private sector, employers take the first ethical criterion as to whether an employee harms the employer's fundamental interests. A capable but ethical person is sometimes tolerable by employers. In general, employers in the private sector do not place excessive moral demands on employees. The personal experience of employees is very important for employers. The private sector also requires employee loyalty and accountability, but it has been relatively downplayed compared to government requirements for civil servants.

(IV) Differences in applicable laws

Modern government is designed to guarantee the basic rights of each individual and is not designed to guarantee efficiency. Democratic governments also attach importance to improving management performance, but this must be based on socio-political security. Modern government management is governed by law, and government actions are administrative law enforcement actions.

The behavior of government civil servants is mostly administrative law enforcement. The administrative act of civil servants takes administrative law enforcement as the first priority, and the focus on legal responsibility always comes first. The liability risk or legal risk of choosing an initiative and creative administrative action will increase accordingly. This is also the administrative act of civil servants. An important reason for tending to be conservative.

Because the company's operating behavior will make autonomous slurries or choices as market conditions change. Correspondingly. The flexibility or resilience of the behavior of business operators greatly exceeds the administrative behavior of civil servants.

Enterprises are organizations that grow for the pursuit of economic benefits. Focus on efficiency to formulate employees' behavioral norms. Sometimes these behavioral norms may conflict with legal norms when corporate interests conflict with legal norms. They can easily take evasive measures.

In addition, in the protection of personal interests, the "National Civil Servants Law" is a basic legal norm that civil servants must abide by, and the personal power of civil servants is easier to be protected.

Enterprises should apply the Labor Law of the People's Republic of China to define labor relations. Labor regulations on labor relations are more principled, and enterprises must formulate more specific management regulations based on this. Due to the non-equivalence of the employment status. It is easy for enterprises to formulate rules in favor of employers, and there is a possibility that the personal interests of employees cannot be fully protected.