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study case on Public sector organisation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › study case on Public sector organisation

  • This topic has 1 reply, 2 voices, and was last updated 6 months ago by Ken Garrett.
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  • July 29, 2022 at 9:53 am #662082
    nk16
    Participant
    • Topics: 70
    • Replies: 37
    • ☆☆

    I get confused while answering question when the case study is on public sector organisation.
    Can plz explain the difference while answer for public sector organisation, commercial and not for profit organisation.

    How to answer it

    July 30, 2022 at 9:13 pm #662187
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10198
    • ☆☆☆☆☆

    The main differences are usually:

    1 Mission/objectives. Ultimately, private organisations usually want to make profits and performance measures will eventually lead to profit effects. Public sector organisations usually have no sales , receive their income from government and are focused on providing services. Performance measures tend to look at the 3Es: effectiveness, efficiency and economy.

    2 Stakeholders are different. Government is huge, customers don’t exist, though members of the public are major stakeholders.

    3 Sources of finance. Not share capital or profits, but government money. The supply of government money can be fickle.

    4 Governance.

    Any question must tell you what the public organisation is supposed to achieve, how it measures success and where it gets its cash from. That information is also supplied for private organisations So, there is less difference than you might think: concentrate on mission/objectives, suitable performance measures and stakeholders’ power and requirements.

    4 Lef

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