BA 325 week 7 Assignment Different between public and private company

Different between public and private company




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Different between public and private company

Public companies are operated and controlled by the government as they are part of the government’s contributors of the economy. The main purpose of the public companies is to serve the common man and ensure that they provide job opportunities to the citizens. For instance, in Apple Company, the services are provided for the benefit of the public and it is out to serve the best government goods and services to the people. Public sectors work hand in hand with the people for the provision of employment opportunities and postal services. Public companies ensure that education and services are provided at low cost to the people (Wamsley, & Zald, 2013). On the other hand, private companies are controlled, owned and also managed by individuals whereby they are established in order to make profits from their services.Private sectors provide quality services than the public companies in order to gain a good reputation of the organization.To compete with other organizations, private sectors provide the best commodities and services to gain trust so that the organization may run in the long term having gained goodwill from the customers.

Collective bargaining is legalized in public sectors whereby it is in form of unions. Public unions are responsible for the employee’s welfare and they act as representatives to the managers. The unions present cases of low wages, poor working environment, and health of the workers whereby the membership is highly encouraged in public sectors. In private sectors, collective bargaining is decreased and membership has fallen (Wamsley, & Zald, 2013). Public and private collective bargaining is never the same as in public sectors; the employees are allowed to make labor unions as their representatives contrary to private sectors where unions are not recognized. The different in budget and collective bargaining in public and private company is the consumer choice. Consumer choice forces the private company to make reasonable decisions to either retain the customers or let them go. In public sectors, there is negotiation of the wages, work rules and also the prices of goods and services through the labor union representatives. In private sectors, the customer or the employee is allowed to seek goods and services to other sectors. In private companies, the workers usually have limited budget whereby if the collective bargaining is accepted by the employer, the cost of the owners are affected and other stakeholders(Rainey, Backoff, & Levine, 2006).The private goods and services are exchanged in the market for money whereas in public companies set prices to regain its cost for the satisfaction of the customers not for profit.

Bargaining structure and decision making is very different in private and public companies. In public sectors, the manager and leaders support the bargaining and networking with the employees during decision making while in private sectors, the managers are out for the speculation and organization analysis for the decision making processes. The managers in private sectors supports budgets which is reached through budget analysis rather than bargaining but in public sectors, the budget is attained through bargaining whereby the risks remains unaffected. The cognitive style approach is used in the private sectors to attain the budget whereby the managers support it due to fewer risks in it.The agency people in public sectors make decisions and budget through bargaining which is fully supported by the managers contrary to private sectors (Rainey, Backoff, & Levine, 2006).Bargaining structure and decision- making process are different in the public and private sectors as the managers have different preferences.

Negotiation issues are done by the labor unions in public companies. There are set laws and regulations governing the services given by the public companies which also govern the employees. Labor relations are responsible for the negotiation issues as they act as representatives in the public organization. Many states today are out to reduce the employee’s bargaining rights due to the high rise of private sectors which have lessened the membership of the unions. There is collective bargaining in public companies ensures that the interests of the employees have been presented to the employer, therefore limiting the strike issues (Wamsley, & Zald, 2013). Many issues are presented and negotiated through the union’s representative in public organizations. Collective bargaining in private sectors helps to protect the employees from strike while in public sectors there arefewer considerations of the outcomes of the strike.

Conclusively, the people involved in collective bargaining must have knowledge, skills, and experience in negotiation as it is a problem- solving process which requires the representative to be dependent. Public sectors use representatives or small group organizations as their tactics to present their issues to the employer. If the issues are not solved, the employees are free to strike until the employers responds to their grievances (Pierre, 2009). In private sectors, the collective bargaining protects the employees from strike whereby the employer ensures that the workers are safe from all instances which may terminate the organization’s name.


Pierre, J. (2009). Models of urban governance: The institutional dimension of urban politics. Urban affairs review, 34(3), 372-396.

Wamsley, G. L., & Zald, M. N. (2013). The political economy of public organizations. Public Administration Review, 62-73.

Rainey, H. G., Backoff, R. W., & Levine, C. H. (2006). Comparing public and private organizations. Public administration review, 36(2), 233-244.

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