T YPES OF O RGANISATION Public & Private Sector Organisations

W HAT ’ S THE DIFFERENCE ? Organizations in the Private Sector Size Ownership Aim Profit? Organizations in the Public Sector Size Ownership Aim Profit?

P RIVATE S ECTOR O RGANISATIONS Owned by private individuals or organisations Vary in size; they can be a small business, or a multinational corporation Main aim is to make a profit* * Profit = the difference between a firm’s costs (money going out) and it’s revenues (money coming in)

P UBLIC S ECTOR O RGANISATIONS Owned and controlled by the government Typically provide goods and services that cannot be provided by the private sector, e.g. lending library or public health services Organisations that are fully owned by the government are called public corporations TASK : Brainstorm as many public sector orgs that you can think of.

Emirates Post Dept of Police Ministry of Education Ministry of Health Sharjah Transport Corporation TASK : Brainstorm as many public sector orgs that you can think of.

W HY DO WE NEED PUBLIC SECTOR ORGANISATIONS ? For everyone to have access to essential services, such as fire and police To avoid wasteful competition, e.g. often government alone has the resources necessary to build power lines – economies of scale To provide a service that private industry cannot, e.g. a national airline service for a small country

P RIVATIZATION Privatization occurs when an organisation in the public sector is sold to the private sector. Regulatory businesses monitor privatized businesses to ensure they are behaving and performing in the right way. e.g. AIS is a private school. However, the school is still answerable to the UAE Ministry of Education.

TASK: Read Box 1.2a on page 21 of your text. Mind map the Benefits of Privatization in your workbook.