The principal difference between the private sector and public sector organizations is their for-profit and for non-profit ideologies, respectively. Private sector organizations function in a disciplined and structured manner. Although public sector organizations have their own defined policies and structures, approaches and control mechanisms become diluted owing to the large span and bleak management. These can be attributed to the fact that private sectors lay special emphasis on investment in people management compared to investment in services in the public sector organizations.Concept of employment refers to the legally bound agreement between two parties in which one, the employer, agrees to pay the other, the employee, salary in return of services expected from the employee. besides this, the total wages may be divided into several components including paid leaves, compensation benefits, work safety measures, facilities etc within the limit of expected service, and has no legal obligations related to any other aspect that falls outside the purview of this relation.The broader purpose and function of management is to formulate plans and procedures that help the organization function appropriately in order to achieve its goals. This entire process entails planning in terms of human resources, investment and technology. appropriate distribution of resources and investment. developing leadership to guide and control all the processes. risk factor assessment and control procedures. acquiring appropriate talent from the market based on the skill set required to help the organisation achieve its goals.The principal categories of environmental forces that can impact on an organization and the way it operates can be broadly divided into external forces comprising customer segments and competitors, and internal forces such as finance, talent, and organizational culture and development. People of the organization form the most important determining factor of the outcome of organization as they tend to define the organizational culture and development, can bring profits or lead to loss, bring customer satisfaction, and help the organization sustain competitiveness in the market.
People Organisations and Management