? asked in Social ScienceEconomics · 7 years ago

Why are industries under the public sector less efficient than those in the private sector?

Private sector industries seem to be more efficient than public sector industries. Why??

9 Answers

  • 7 years ago
    Favorite Answer

    it's because they do not get the treatment that they think they deserve. I'm referring to the public sector in which all affairs are run by the government. and because of this government affiliation. things such as employment, projects, salaries are falsely manipulated by how government officials are elected. (for example,when a new official is elected, some of the employees in a certain department would be excommunicated, another would be corruption, possibly.) all of these factors take away the sense of fulfillment for workers in the public sector which in turn would provide less rates of productivity.

    Source(s): My personal experience working in a government office.
  • 7 years ago

    1 The Public sector industries Managers have less power to introduce new innovative methods for improving the efficiency as they had to get the permission to get it approved by higher authority.

    2. In the Public sector merit carries less importance and the efficient man are not recognized here and only the seniority counts.

    3. The Public sector industries are not getting the top men as the compensation is not having the attractive perks and payments.

    4. Red tap ism makes the decisions delayed and this is not suitable for competitive world.

    5.The public sector employees lake innovation as their jobs are routine and no separate incentive are given for employees.

    Source(s): gk
  • Sienna
    Lv 7
    7 years ago

    Because efficiency means comparing output to input. The same output using less inputs, or more output using the same inputs = efficiency.

    Private sector businesses, using profit and loss, have a way to compare outputs and inputs in units of the same value - money. This ties the service directly to what the consumers are trying to achieve by buying it.

    The coercive sector has no such ability, since the whole purpose of public provision is to provide services on some basis *other than* profit and loss.

    This means that in the case of so-called public services (translation: government services), the connection between what the consumers want, and what the producers are producing, is severed at the root.

    Socialism in general means abolishing the only known rational way of being efficient - comparing inputs and outputs in units of a lowest common denominator - and replacing it with nothing but arbitrary political power and bureaucratic rules and regulations. The only means of being efficient, it abolishes.

  • 7 years ago

    Because private sector by giving bribe make it less efficient.

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  • Gladys
    Lv 4
    4 years ago

    Of course they would pollute more. Business is about staying competitive. In a world without environmental regulations, saving money by being irresponsible with waste would be the norm; any company that tried to spend money on safer waste management would erode its own profit margin and thus become less competitive.

  • 7 years ago

    Because we have to rely on the government for those industries that aren't efficient. Roads and infrastructure, schools and hospitals are not going to make money, but we need them.

  • Alex
    Lv 6
    7 years ago

    Because in the private sector there is no real leadership. They are lead by elected officials so they do not do what is right, the do what they do to get votes.

  • 7 years ago

    public sector does not have APNAPAN which is required to have efficienty

  • Anonymous
    7 years ago

    They may seem more efficient to you, that doesn't mean they are.

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