1. Handout 6: Structures of public organisations
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Understand employer organisations
Handout 6: Structures of public organisations

2. Public sector funding
Public sector organisations do not have the facility to ‘make a profit’.
They are funded from public taxes.
These taxes may be central or local taxes.
The main difference between private and public sector organisations lies in how they are financed.
The services they provide are funded by the government largely from public taxes.
These taxes may be in the form of central taxes such as income tax, VAT, road tax, Stamp Duty, duty on petrol, tobacco, alcohol, etc; or local taxes such as business rates or council tax.
Additionally, organisations may receive funds from government as a result of borrowing or monies received for specific activities from the European Union.
By meeting special conditions, they may be able to apply for grants from the Treasury via the relevant government department.
Local authorities also have the option of raising revenue through car parking fees or hiring of leisure facilities, etc.

3. Transparency
The public has a right to know how public sector organisations spend their money.
Promotes efficiency.
As the funds for public sector organisation are public money, the public has a right to know that those funds are being spent correctly and as they would wish.
As public sector organisations do not operate using funds they have raised themselves, but rather funds raised from the public, it vital that they do not waste money and that all their resources are used effectively.
Every public sector organisation therefore has a duty to spend public money effectively, ensuring the best use of their resources, behaving in an environmentally-friendly way and contributing to sustainable economies and communities.
This is known as ‘transparency’ and is a powerful way of promoting efficiency as taxpayers are able to see how their money is spent.

4. Types of public sector organisations
NHS Health organisations – hospitals, doctors’ surgeries, clinics
state education organisations – schools, colleges
local authorities (councils), eg London Borough of Ealing
government departments, eg Department for Health
non-ministerial departments, eg the Foods Standards Agency
executive agencies that operate as separate organisations, eg The Met Office and HM Land Registry are both executive agencies within the Department of Business, Innovation and Skills (BIS)
non-Departmental Public Bodies (NDPB) – quangos – eg The Health and Safety Executive

5. report to the Secretary of State for Communities and Local Government
Local authorities
report to the Secretary of State for Communities and Local Government
responsible for the running of local areas.
There are several types:
county and district councils
unitary authorities
town and parish councils.
Local Authorities report to the Secretary of State for Communities and Local Government and are responsible for the running of local areas.
County and district councils – County councils cover large areas and provide most public services, including schools, social services, and public transportation. District councils cover smaller areas within the county and provide more local services, including council housing, gyms and leisure facilities, local planning, recycling and rubbish collection.
Unitary authorities – In most large towns and cities, there will be just one level of local government called a 'unitary authority' responsible for all local services instead of the two-tier system of county and district councils.
Town and parish councils – Exist in some parts of England and Wales covering small areas and with responsibility for eg allotments, public toilets, parks, war memorials, and local community centres.

6. Government departments
Central government is separated into separate government departments.
Government departments are headed by a Secretary of State or other senior minister.
Examples of ministerial departments are:
Cabinet Office
Department for Health
HM Treasury
Ministry for Defence.
The organisation of central government is separated into separate government departments.
Most government departments are headed by a Secretary of State or other senior minister and the structure of these departments tends to reflect what functions the minister has to oversee.

7. Non-ministerial departments
Examples of non-ministerial departments are:
Charity Commission
Food Standards Agency
HM Revenue & Customs
Office of Fair Trading.
Some departments are known as ´non-ministerial´, which means they are not headed directly by a minister but rather by a board, answerable to Parliament.

8. under control of governments departments
Executive agencies
under control of governments departments
they have a defined business function
they operate almost like a separate organisation from the main department.
Examples of executive agencies are:
Highways Agency
HM Court and Tribunal Service
Identity and Passport Service
Jobcentre Plus
UK Border Agency.
A department usually has executive agencies under it.
These have a defined business function and are headed up by a chief executive (often supported by a management board).
They operate almost like a separate organisation from the main department.
Whilst the ministers are not directly involved with the day to day running of executive agencies, they are ultimately responsible for their performance to Parliament and the general public.
Departments and executive agencies are staffed by civil servants who are ultimately accountable to Parliament through the relevant departmental minister.

9. Non-departmental public bodies (NDPBs)
Functions:
executive
advisory.
Examples of executive NDPBs are:
Competition Commission
English Heritage
Environment Agency
Health and Safety Executive.
Examples of advisory NDPBs are:
Advisory Council on the Misuse of Drugs
Committee on Standards in Public Life
Pay review bodies.
Aside from government departments and executive agencies, there also exist both advisory (ie to advise on policy) and executive (ie to carry out policy).
Executive NDPBs carry out a wide range of administrative, commercial and regulatory or technical that which are considered to be better delivered at arm’s length from ministers.
Again, they are directly accountable to ministers and, in turn, to Parliament and the public for their performance.
They are usually headed by boards and the board members are usually appointed by ministers.
The board usually appoints a chief executive officer (CEO) with day-to-day responsibility for managing the body.
The CEO, and staff, are not usually civil servants

10. Organisational objectives
Public sector
Focus on provision of efficient and effective services to the public.
Private sector
Focus on getting customers to buy their products/services.
Voluntary sector
Focus on helping a cause or those that cannot help themselves.
Usually, an organisation’s aim is stated in its mission statement.
An organisation’s objectives are determined by the type of organisation and its sector.
For example, the main objectives of any organisation in the public sector is to provide efficient and effective public services, whilst carrying out government policy and complying with legislation. As they are funded with public taxes, they must provide the best value for money services. Private sector organisations usually focus on growth and profit.

11. Mission statements
Effective Care, Well Delivered. NHS To bring inspiration and innovation to every athlete in the world. NIKE We defend the natural world and promote peace by investigating, exposing and confronting environmental abuse, and championing environmentally responsible solutions. Greenpeace
Effective Care, Well Delivered NHS – public sector organisation.
To bring inspiration and innovation to every athlete in the world NIKE – private sector.
We defend the natural world and promote peace by investigating, exposing and confronting environmental abuse, and championing environmentally responsible solutions GREENPEACE – voluntary sector.