HUMAN RESOURCE MANAGEMENT ASSIGNMENT

HUMAN RESOURCE MANAGEMENT

IN THE PUBLIC VERSUS PRIVATE
SECTOR:A THEORITICAL
PERSPECTIVE
Journal Name: Economics, Management and Financial
Markets

Edition: September 2018

Submitted by:-
Sruthi Ramachandran
MBA B
B2356
 REVIEW
This article basically describes about the role of human resource management in public and
private sector. The priorities of the personnel differs various from sector to sector. Here, we
discuss the effective practices that could be unanimously shared, irrespective of their
structure , functioning and priorities which could in-fact bring out a positive transformation
within these sectors.

Some of the key matters discussed here, are that as to how the private sector evolved, its
surge, why the employees preferred private sector jobs to public sector jobs and why
talented personnel get more attracted to the jobs offered by this sector.

Private sector is generally smaller in size and employs lesser manpower as compared to its
public counterparts making it easier to manage and perform better. From a human resource
manager’s perspective, people get more attracted towards the same due to their desire to
earn more profit, gain a profound experience and to have a more relaxed future.

Whereas public sector enterprises, usually have rigid payment schemes and powerful public
unions making the situation worse by incurring tremendous losses and a significant threat of
failure. Decision making is tough and direct political connections influence the same
critically. Instances of misconduct and corruption make it onerous for the employees to
have a hassle free work life in such an organization.

It’s the duty of the human resource manager to strike a perfect harmony in the work lives of
the workers according to the type of sector dealt with. The relationship between the
workers must be healthy and robust. They must work with synergy and the human resource
manager must plant seeds of good interpersonal communication amongst them. The human
resource management in a public sector organization seems to be mostly inefficient and
unskilled workers in the lower strata experience less rotation and less expertise. A public
institutions’ adherence to strict norms, focus on quantity rather than quality and risk averse
attitude makes it complicated to progress well, in the business front. Private sector
institutions, on the contrary focus more on providing monetary as well as non-monetary
rewards to the employees to boost productivity, increase sales and scale greater heights.

In short, the public companies must try their level best to induce competition and increase
personnel performance. The human resource managers of such companies must ensure
appropriate personnel get selected to the appropriate positions and jobs be made incentive
based. The organizations should be made more competitive at a lower cost by efficient fund
management. Adapting to these effective human resource management measures would
enable in eradicating these prominent cons of the public sector enterprises without any
doubt.