Privatization of various companies has resulted in provision of efficient services hence reliability. Private companies are reliably managed profitability being their major concern. This gives them morale to perform their services effectively as they have a target profit to achieve resulting to efficient services as compared to the government. The government is not profit oriented; its aim is just provision of services. According to the reading from classics, this is not enough to ensure efficient services are offered (Shafritz & Hyde, 1978). .
With privatization, there is little accountability to the public as they are more concerned of their interest than the interests of the public. Privatization of prisons resulted in individuals pushing for longer prison terms so as to increase the revenues they will be allocated by the government. This reduces accountability by the private companies as they are more concerned of how they will make profits than the public well-being. With privatization, accountability to the public can be seen as second in the ranking as it’s accountable to its shareholders and stakeholders first. With this in mind, they would satisfy their stakeholder before considering the interest of the general public as the stakeholders are the reason for the company’s existence in the first place.
One cannot use the same performance measures for private managed companies as with public managed companies. Public provided services will be provided as per rules and regulations set by the government and the government will be over seeing how the public company is being run. This implies that different strategies should be used as there are different views of the existence of the companies. Private companies are run with the aim of profit making and acceptance by customers. Hence they have the responsibility of providing high quality goods and services putting in mind maximum reduction of costs leading to profitability.
Shafritz, J. M., & Hyde, A. C. (1978). Classics of public administration. Oak Park, Ill: Moore Pub. Co.