Privatization in Public Administration Essay Example | Topics and Well Written Essays - 750 words

Privatization in Public Administration - Essay ExampleDeveloping countries have adopted the privatization for planning as a policy and system for national socio- sparing development. Privatization involves strategies that would reduce the task of the state by assigning larger roles for the toffee-nosed sector. Despite all identified challenges and disadvantages, the privatization of general administration would bring forth more effectiveness in organizational management and service delivery. Although the change is a major threat to the job security of world employees, it is more likely to continue as the improved level of productivity has already been proved. In delivering the general service, privatization can make use of the advantages of competition and flexibility. These advantages also help in attaining greater effectiveness and change magnitude response to the needs of customers. These objectives are very difficult to be achieved within the public sector any due to the in capability of the government or due to the slow procedures of the government machinery. When the government plans for the privatization of any drift of public administration, it has to enter into a performance contract with the commercialized enterprise to determine the post privatization family amongst government and the firm. The performance contract must Specify the long-term objectives involve performance criteria between the government and the firm specify the level of performance of the enterprise specify the certain penalties if the enterprise fails to touch any agreed performance. As Cook and Uchida point fall out, in many developing countries as come up as in the developed countries privatization and commercialization have gained recognition and adequacy (1-23). It also helps the government in putting the government organise on track and forteening industries controlled or administered by the state. Considering all the aspects of privatization, some(prenominal) sup port the view that privatization is al fashions political, by political they mean governments have aims which are non-economic. To illustrate, privatization leads to the beam of assets into the undesired private hands with the complete knowledge of the government, aiming at only special classes of buyers. On the way to privatization, there would be some political impediments too, such as conventional or disruptive post of existing managers and employees of state-owned enterprise who are afraid of the challenges of privatization. A well formulated privatization policy with strong use can overcome such impediments. On the way to privatization there are many political and economic goals to be achieved and there are some political impediments to overcome. According to Donaldson -It is the level of governments strength and commitment that determines the precision in launching privatization. -It is the business needs that describe what sort of buyer should be invited. -Mass privatizati ons can be welcomed, but they may not help in adequate corporate governance. -A pro-competitive structure is an essential element of privatization which must be obtained. (Source Donaldson, 19-37). One among the several advantages of privatization is that privatization brings more revenue to the government when compared to the public enterprises so government can easily earn a little more by leasing out an enterprise to private undertakings. As the private organizations are very much concerned about the type of service they provide, there will be increased levels of accuracy and commitment towards the job. Besides, the privatization of the public enterprise helps in getting out of the political interference. They have the expertise in proper