The public sector environment PDF

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Business environment - The public sector environment State of flux where many organisations have changed ownership from public to private sector. Both the scale of the public sector and the rate of change within its environment make it a valuable but often neglected economy. Public sector organisations conduct government business, are largely funded from the public purse and are usually accountable to the government at some level. The vast majority of funding and support for most public sector organisations is provided through taxation, it is the duty of the government to ensure that proper care is taken when dispensing these resources. Government at local, national and international level has a persuasive and powerful influence over public sector bodies, particularly in roles as legislators and resource providers. It can be argued that the existence of the public sector is due to the failure of the free market system to provide all services required by the general public and by government. There is no indisputable law of economists which argues that public sector should do anything. Many believe that private markets are easily able to provide some of the services that public sectors do. Others argue that this would lead to a multi-tiered system and a restriction of access to high quality service for a significant section of the community. The price system allocates goods and services to individuals and organisations. The political environment is the foremost of importance to public sector organisations. Aimed to achieve significant productivity gains and better value for money. Cyclical - short term fluctuations in the economy. A reduction in economic growth or even recession will lead to an increase in unemployment, lower tax revenues and increases in social payments. This in turn influences government's ability to control public spending and will necessitate either increased government borrowing in order to maintain spending plans or restraint in government spending. Market testing advantages: ● Competition helps ensure value for money ● A focus on performance outputs with produce clear standards ● An improved quality of service will result ● An explicit customer/supplier relationship will be apparent ● Enables both external and in house bidders to be more innovative in their field ● The monitoring of contracts and service-level agreements focuses on outputs, objectives and targets in order to improve efficiency and effectiveness.

Privatisation and deregulation processes are ongoing in many countries and seek to reduce the role of government in the economy and increase commercialisation and competition. Public and private sector partnerships are increasing....