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Public Administration: Privatization

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Assess whether contracting out or privatization is advantageous for public management as sort of a way to break unions formed by public employees.

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Privatization can be defined as a process in which control of a government enterprise transfers to private sector. Privatization can take place through different methods such as contacting out, franchise, asset sale, commercialization etc. (Azubuike, 2009). In contracting out, a contract between public sector and private sector take place for providing specific services. This privatization contract is specify the term and condition in which contact will be performed (Pynes, 2008). It also specifies the service level that public sector requires and the amount that will be pay by private to public sector.

Privatization expended the role of private sector in economic activities. Privatized companies are profit oriented. For this, it emphasized on efficient and effective workforce. It leads to cut labor cost as less worker required for particular task. It breaks unity of public employees in public management (Farazmand, 2001). On the other hand, there were many constraints and rules for public employees to hire, discipline and fire them. Privatized companies did not follow any kind ...

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