Contrasts between Public and Private Organizations With Special Essay

Contrasts between Public and Private Organizations With Special Reference to Activity Management Practices - Essay Example The over whelming acceptance of the first assumption is often triggered in the absence of analytical studies of culture, operational requirements and difference of focus and approach in public and private sector organizations. There is an increased awareness at all levels of public administration to bridge the gap between the effectiveness and efficiency of a public and private organization. The awareness has given rise to comparative studies which can surface more logical and methodical approaches and technologies that can be useful to enhance the effectiveness and efficiency of public sector organizations. Theory of Activity Management practices has recently got huge focus in this connection and many researchers have critically analyzed the adoption trends of this theory in public and private sector organizations. Baird, K. (2007) has also described the critical analysis of the theory from public sector organizations perspective as the basis of his article, â€Å"The study address es the gap in the literature examining the adoption of activity management practices in the public sector.† ... Gosselin defines Activity Analysis as process that is, â€Å"consists of identifying the activities and procedures carried out to convert material, labour and other resources into outputs† (Cited in Baird, 2007). Koopmans (1970) describes AA in these words, â€Å"Activity Analysis is concerned with the construction of the conceptual models to study and appraise criteria, rules, and practices for the allocation of resources.† The definition of Activity Analysis delimits boundaries for various resources in the organization. The actual contribution of a resource toward the final production of the service or product is the basic criteria which sets these boundaries. Therefore, the importance of human resource or a material can be described in terms of its role in the process of production. If a resource does not have any impact on the productivity or have least effect on it, it should be allocated with minimal or no resources at all. The exclusion of this resource from reso urce allocation is a step towards efficient and effective cost management of the resources which ultimately contributes towards the organizational effectiveness and efficiency. This efficiency, however, must not cause the reduction of any other production variable. â€Å"A combination of activities is called efficient if it does not permit increasing any net output without decreasing another, within the given limitations or primary factors.† (Koopmans). Therefore, despite being necessary, the decision of exclusion for a resource can only be efficient if every possible result is foresighted in terms of productivity and cost. However, the behavior towards inefficient resource management is usually different in public and