Since the beginning of human civilization, different systems have been implemented to provide a sustainable living for humans.
The main objective of all those systems was to provide the necessary services to their people. Those services included military protection, health care, education, etc.
Over time, independent organizations were established to deal with these matters. People were appointed to solve the problems and carry out the necessary reforms.
As the population increased to millions and billions, different sectors like the public, private, organized, etc., were created.
These sectors had certain benefits for their employees and rules and regulations to operate these organizations. But a layman mostly doesn’t know the difference between them or why a certain sector exists.
The main difference between the public sector and the organized sector is that the public sector comprises organizations controlled by the government.
While the organized sector comprises those organizations registered with the government, they can be clinics, stores, factories, businesses, schools, hospitals, etc.
Some other differences between the public sector and the organized sector are given in the following comparative table:
Comparative table between the public sector and the organized sector
Comparison Public Sector And Organized Sector
Includes government-owned organizations.
Includes organizations registered with the government.
Post, railways and airports.
Schools, hospitals, factories.
Don’t look for profit. Provide services to citizens.
Provide services to citizens. Additional benefits for employees.
Directly owned by the government, so no one imposes special rules.
Registered with the government so special rules are imposed such as the Minimum Wage Law.
What is the Public Sector?
The public sector comprises all those organizations owned and controlled by the government.
The main objective of public sector organizations is to provide services to citizens. The services could be related to lifestyle, education, and everything needed to maintain a good life.
These organizations do not intend to profit from these services since their main purpose is not to generate large amounts of income but to work for their citizens.
Public sector examples include railways, airports, public schools, public hospitals, public libraries, roads, bridges, etc.
Mainly, the public sector operates in industries like oil and gas, electricity, water, agriculture, finance, defense, education, etc.
So how does the public sector generate income to continue providing these services? The public sector obtains funds through different methods.
Those methods include fees, taxes, and financial transfers from other governments, such as federal to provincial.
Different countries may have different financing systems for their public sector. Generally, there are three levels of the public sector: federal, regional, and local.
Public sector organizations do not have any strict rules imposed as they are operated directly by the government.
But if the government changes or makes an unfavorable decision, that can affect the functioning of this sector.
In some parts of the world, the public sector performs well and outperforms the private sector. While in some parts, the private sector or the organized sector is doing better than the public sector.
So there is a trend that exists in all countries. But his first and foremost goal is to provide services to the citizens of his country to improve their lives.
What is the organized sector?
The Organized Sector comprises all those organizations that are registered with the government.
These organizations must follow some rules imposed on them since they are registered with the government. Some of the rules are:
- Minimum Wage Law
- factories law
- store law
- Gratuity Payment Law
These laws impose fixed procedures and standards on organizations belonging to this sector.
There are some benefits for employees who work in the Organization Sector. The employees have fixed contracts, which means that they have a guarantee of work for the required period.
They have regular salaries with fixed working hours and provisions such as social security and fixed days for leave such as holidays, sick leave, etc.
Some organizations can fire their employees without notice. But in the organized sector, employees work on a permanent contract and therefore cannot be fired without notice.
In addition to job security, they are also given access to safe drinking water and safe working conditions.
Examples of the organized sector include factories, banks, and all those registered units with the government. It can also include schools and hospitals. But all the rules and benefits we discussed above apply to them.
Main Difference Between Public Sector And Organized Sector
Some of the characteristics that differentiate between the Public Sector and the Organized Sector are detailed below:
- The public sector comprises all organizations owned and controlled by the government, while the organized sector comprises all organizations registered with the government.
- Examples of public sectors include railways, airports, post offices, public schools, and hospitals. Examples of the organized sector include factories, banks, and companies.
- The main objective of the Public Sector is to provide services to citizens. Non-profit organizations, while the Organized Sector, also provide services to citizens but have additional benefits for their employees.
- The government controls the public sector, so no special rules are imposed on organizations. In contrast, the organized sector has to follow some procedures and rules like the Minimum Wage Law, the Factory Law, etc.
The general economy of the country and the general welfare of its citizens are in the hands of these sectors. They affect, directly and indirectly, the operations of the country.
Any sector or organization can succeed in its objectives if its employees work with effort and sincerity.
On the other hand, if employers care about their workers and provide safe working environments, they feel happy and work with passion and determination.
We have to become the strong hands of our country and contribute to society as much as we can.
Word cloud to differentiate between the public sector and organized sector
The following is a compilation of the most used terms in this article on the Public Sector and the Organized Sector. This should help you remember related terms as used in this article at a later stage.