Differences

What is the difference between public sector and organized sector

difference between public sector and organized sectorWe explain that what is the difference between public sector and organized sector with table. Since the beginning of human civilization, different systems have been put in place to provide a sustainable life for humans.

The main objective of all those systems was to provide the necessary services to its people. Those services included military protection, medical care, education, etc.

Over time, independent organizations were established to deal with these issues. People were appointed to solve the problems and carry out the necessary reforms.

As the population increased to millions and billions, different sectors were created such as the public sector, the private sector, the organized sector, etc.

All of these sectors had certain benefits for their employees and rules and regulations for operating these organizations. But a layman for the most part does not know the difference between them or why a certain sector exists.

The main difference between the public sector and the organized sector is that the public sector is made up of organizations controlled by the government.

While the organized sector is made up of those organizations that are registered with the government. They can be clinics, stores, factories, businesses, schools, hospitals, etc.

Some other differences between the public sector and the organized sector are given in the following comparative table:

Comparative table between public sector and organized sector

Comparison parameter Public sector Organized sector

Definition Includes government-owned organizations. Includes organizations registered with the government.
Examples Post, railways and airports. Schools, hospitals, factories.
objective Don’t look for profit. Provide services to citizens. Provide services to citizens. Additional benefits for employees.
Rules imposed Directly owned by the government, so no one imposes special rules. Registered with the government so special rules are imposed such as the Minimum Wage Law.

What is the public sector?

The public sector comprises all those organizations that are owned and controlled by the government.

The main objective of public sector organizations is to provide services to citizens. Services could be related to lifestyle, education, and everything else that is needed to maintain a good life.

These organizations do not intend to make a profit from these services. Since its main purpose is not to generate large amounts of income but to work for its citizens.

Examples from the public sector include railways, airports, public schools, public hospitals, public libraries, public roads, and bridges, etc.

Mainly, the public sector operates in industries such as oil and gas, electricity, water, agriculture, finance, defense, education, etc.

So how does the public sector generate income to continue providing these services? The public sector obtains funds through different methods.

Those methods include fees, taxes, and financial transfers from other governments, such as the federal to the provincial, etc.

Different countries in the world may have different financing systems for their public sector. Generally, there are three levels of the public sector: federal, regional, and local.

Public sector organizations do not have any strict rules imposed as they are operated directly by the government.

But if the government changes or makes an unfavorable decision, that can affect the functioning of this sector.

In some parts of the world, the public sector performs well and outperforms the private sector. While in some parts, the private sector or the organized sector is performing better than the public sector.

So there is a trend that exists in all countries. But his first and foremost goal is to provide services to the citizens of his country to improve their lives.

What is the organized sector?

The Organized Sector comprises all those organizations that are registered with the government.

These organizations must follow some rules that are imposed on them as they are registered with the government. Some of the rules are:

  1. Minimum wage law
  2. Factories law
  3. Store Law
  4. Bonus Payment Law

All these laws impose fixed procedures and rules on organizations belonging to this sector.

There are some benefits for employees working in the Organizing Sector. Employees have fixed contracts, which means that they have a job guarantee for the required period.

They have regular salaries with fixed hours of work and provisions such as social security and fixed days for leave such as holidays, sick leave, etc.

Some organizations may lay off their employees without prior notice. But in the organized sector, employees work on a fixed contract and therefore cannot be fired without notice.

In addition to job security, they are also given access to clean water and safe working conditions.

Examples of the organized sector include factories, banks, and all those units that are registered with the government. It can also include schools and hospitals. But all the rules and benefits we discussed above apply to them.

Main differences between the public sector and the organized sector

Some of the characteristics that differentiate between the Public Sector and the Organized Sector are detailed below:

  1. The public sector comprises all organizations that are owned and controlled by the government, while the organized sector comprises all organizations registered with the government.
  2. Examples of public sectors include railways, airports, post offices, public schools, and hospitals. Examples of organized sectors include factories, banks, and companies.
  3. The main objective of the Public Sector is to provide services to citizens. Organizations do not seek profit while the Organized Sector also provides services to citizens but has additional benefits for its employees.
  4. The public sector is controlled by the government, so no special rules are imposed on the organizations, while the organized sector has to follow some procedures and rules such as the Minimum Wage Law, the Factory Law, etc.

Conclusion:

The general economy of the country and the general welfare of its citizens are in the hands of these sectors. They affect, directly and indirectly, the operations of the country.

Any sector or organization can be successful in its objectives if its employees work hard and sincerely.

On the other hand, if employers care about their workers and provide them with safe work environments, they too feel happy and work with passion and determination.

In the end, we have to become the strong hands of our country and contribute to society in whatever way we can.

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