Question 1. Today making distinctions between public and private management is not easy, the border between these two is thin, they seem similar, apparently there are similar characteristics between public management and private management, which both organizations are doing POSDCORB (Planning-Organization-Staffing-Management-Coordination-Reporting-Budgeting). Both have a strategy, manage internal conditions and external components. There is also a dimension of “publicity”, which positions the organization according to the degree of political authority and economic authority. The government agency is placed at the end of political authority and the private owner-managed agency is at the end of economic authority. However, they are not the same, according to Knott (1993), "the dichotomy is too sharp to fit the facts". The argument developed here is to convince that there is still a need to differentiate these two. Based on Knott (1993) the key distinction in understanding the difference between public and private management is between organisations. In management issues they have particular internal characteristics (IC) and environmental constraints (EC). In terms of the analytical dimension, it could be judged on independence, information asymmetry and conflict of interest. There are four general categories of management that cut across public and private management, as follows (Knott, 1993): Public management Private management Organizational characteristics Agencies operate in political consensus and routinized technology Organizational efficiencies to achieve economic efficiency Political mandate Interdependence with others, political authority Single responsibility, economic authority Multiple stakeholders Monopolies, the......middle of paper......ng from public to private management. The reason was to provide financing, competitiveness and efficiency, strengthen market discipline and better consumer service. Although the process had differing opinions and contained MTRC risk, in the end privatization provided added value to MTR. Furthermore, it was also increasing the financial performance of MTR and improving the situation of the customer and citizen thanks to the service provided by New MTR. From the above explanation, there are similarities between public and private activities, the dimension of advertising, and many originally public and private management emphases and practices can be found in government, corporate and non-profit organizations. However, there is still a fundamental difference between these, therefore the need to distinguish between public and private should be made.
tags