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Posted on September 23rd, 2012, by

In the modern world, the efficiency of management is of the utmost importance because it defines the development of organizations and their survival. In this respect, it should be said that the efficiency of management can vary consistently in the private and public sector (Kotter, 144). In fact, public organizations are often less efficiently managed compared to private organization. One of the reasons for such a disparity is bureaucracy in the private and public management.

In fact, the public management is traditionally characterized by the higher level of bureaucratization. In practice, this means that public organizations have a complicated hierarchy. As a result, decisions are taken slowly, while responsibility remains on a very low level because the complex bureaucratic hierarchy allows sharing responsibilities among all people involved in the decision making process from the top to the lowest level (Benfari, 188). Hence, public organizations are often managed inefficiently, while organizations are very rigid and unable to respond to a rapidly changing environment.

In stark contrast, the private sector management is characterized by a relatively low level of bureaucratization. This means that employees working in private organizations have a large autonomy and are able to take decisions autonomously without wasting time on according decisions with top executives (Hart, 72). As a result, private organizations are managed more efficiently, because they are more flexible, while the autonomy of employees makes it possible to respond adequately and in a short period of time on the current changes in the business environment.

Thus, it is possible to conclude that bureaucracy, being present in both public and private management has more negative impact on public organizations than private ones because private management tends to de-bureaucratization, while public management is traditionally highly bureaucratized.

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