Distinguish between.

Sr.

No.

Point of difference

Private Sector Organisation

Public Sector Organisation

1)

Meaning

The Organisation which is owned, managed, controlled and financed by individuals or group of individuals is known as private sector organisation.

The organisation which is owned managed, controlled and financed by government or combination of governments is known as public sector organisation.

2)

Constituents

The private sector organisation includes Sole Trading Concern, Joint Hindu Family, Partnership Firm, Joint Stock Company, Co-Operative Society.

The public sector organisation includes Departmental Organisation, Statutory Corporation and Government Companies.

3)

Main Motive

The main objective of private sector organisation is to earn profit.

The main objective of public sector organisation is to serve society by providing essential services.

4)

Management

The management of private sector organisation remains with owner or their elected representatives.

The management of public sector organisation is in the hands of Government officials or Board of Directors (BOD).

5)

Size of Entity

The private sector organisation firms can be of any size e.g. sole trading concern operates on small scale basis  whereas Joint Stock Company operates on large scale basis.

The Public sector organisation are large in size and operates on large scale basis.

6)

Capital provider

Capital is contributed by owner / private investors from their own resources or borrowings from financial institutions.

The capital of public sector organisation is mostly contributed by Government.

7)

Business Areas

The private sector organisation  operates in industrial and  commercial area only.

The public sector organisation operates mostly in utility services such as railways, posts, etc. and also in industrial and commercial undertakings.

8)

Decision Making

In private sector organisation decision making  is quick as very few officials are involved in decision making process.

In Public sector organisation the decision making is delayed due to bureaucratic hurdles.

9)

Efficiency

There is a greater efficiency on the part of private sector due to professional approach in running the organisation

The efficiency of public sector organisation is low due to lack of competitive spirit.

Sr.

No.

Point of difference

Departmental Organisation

Statutory Corporation

1)

Meaning

The organisation which is owned, managed, controlled, financed and operated by government is known as

Departmental Organisation.

The organisation which is formed under a special Act of Parliament or state legislature is known as statutory organisation.

2)

Capital

The required funds come from annual budget appropriation of the Government.

The capital is contributed by the Government at the time of establishment. Additional capital if required can be contributed by the Government.

3)

Management

The departmental undertaking is managed by government officials of the concerned ministry.

Statutory Corporation is managed by board of directors nominated by the Government.

4)

Control

The Departmental undertaking is controlled by concerned ministry.

The statutory Corporation is controlled by the Act or Statute of the Parliament or state legislature.

5)

Autonomy

The departmental organisation does not have autonomy in decision making.

Statutory corporation enjoys autonomy in decision making.

6)

Legal Status

The Departmental undertaking has no separate legal status distinct from the Government.

Statutory Corporation has separate status distinct from the Government.

7)

Establishment

The Departmental undertaking is formed under concerned ministry.

The Statutory corporation is established by special Act of the Parliament or state legislature.

8)

Borrowing Power

The Departmental undertaking cannot borrow money from public.

The statutory corporation can borrow money from public by way of bonds.

9)

Staff

The staff of departmental organisation is government servants and their  services are governed by civil service rules.

The staff is recruited 

independently and their services are governed by service rules of organisations.

Sr.

No.

Point of difference  

Statutory Corporation

Government Companies

1)        

Meaning

The Company which  is formed under   a special statute act of parliament or   state     legislature is known as statutory  corporation.

The company  where  minimum

51% of the paid up capital is held by central or state  Government jointly  or individually is known as Government  Company.    

2)        

Capital

The capital is   contributed by the government at the time of  establishment. Additional capital if required can be contributed             by government as        and when required.

The capital of  Government company is contribute by central and state government            and even by general public and       financial institutions.

3)        

Management

Statutory corporation  is managed by Board  of Directors nominated by the  Government.

Government    company is managed by Board of Directors appointed by government and shareholders.

4)        

Control

The statutory   corporation is controlled by   the Act or the   statute of the   Parliament or  state legislature.      

Government    companies       are controlled by   government or shareholders    by following    the provisions of   Companies Act.           

5)        

Establishment 

The statutory   corporation is   established by special Act of  the parliament or   state     legislature.      

Government companies   are formed and registered  under   the provisions  of   Companies Act 2013.       

6)        

Borrowing      

Power

Statutory corporation  can borrow funds   from    the public by   ways of bonds.

Government    Companies      can borrow funds  by the  way     of debt or issuing shares  to the public.

Sr.

No.

Point of difference  

Departmental  Organisation

Government Company

1)        

Meaning

The Organisation which is   owned, managed, controlled, financed and operated  by  government     is known as  Departmental Organisation.

Any company  where  minimum  51% of the paid up capital is held by central or    state Government jointly  or individually is known as Government Company.

2)        

Capital

The required funds come from annual  budget appropriation   of the Government.

The capital of  Government company is contributed by central and state Government and by general  public and financial institution.

3)         

Management

The Departmental undertaking is managed by     Government officials of the   Concern ministry.

The Government Company    is managed by     board   of directors appointed     by    Government    and shareholders.

4)         

Control

The Departmental undertaking is controlled by   concerned ministry.

The Government companies   are controlled by   Government    or shareholders    by following    the provision   of   companies Act.           

5)

Autonomy

The Departmental organisation does not have autonomy in decision making.

The Government companies enjoys  autonomy in    decision making.

6)

Legal   Status

Departmental  undertaking     has no separate status distinct           from the Government.

The Government company has

Separate status distinct from   the Government.

7)         

Establishment 

The Departmental undertaking is formed under concerned ministry.

Government companies are formed and registered  under the provision of Companies  Act 2013.

6)         

Borrowing      

Power

The      Departmental  Undertaking            cannot borrow money from            public.

Government    Companies      can borrow Funds  by ways of debts or issuing shares to the public.

7)

Staff

The      staff     of         Departmental 

Organisation    is          government            servants           and      their            services            are            governed         by        civil            service rules.

The staff is recruited   independently and their services are governed   by contract of service rules of organisations.