Differences in Optimal Management Practices between Public and Private Sector Organisations: Focusing on Performance Management and Motivation

Hinds, Eoghan (2024) Differences in Optimal Management Practices between Public and Private Sector Organisations: Focusing on Performance Management and Motivation. Masters thesis, Dublin, National College of Ireland.

Preview

PDF (Master of Science) Download (1MB) | Preview

Abstract

Public and Private sector organisations exist for differing reasons and carry out different functions. For the most part, private, and by extension all for-profit organisations, exist for the sole purpose of providing financial gain for those who own and run them. Shareholder value and profitability are paramount, and this drives every interaction that organisation has with its stakeholders and with the society it operates in. Public sector, or not-for-profit organisations, generally exist to provide a service of some kind for society or a particular portion of society. This means that the missions of these organisational types are fundamentally different. The current study investigated these differences, with particular focus on; Motivation – motivation is a key component in management and the current study seeks to explore aspects of motivation with reference to both the public/not-for-profit and private/for-profit sectors. Performance Management - performance management forms a vital part of any management role. Appraising performance drives accountability, allows for a defined goal setting process and helps to train staff in their roles and develop their careers. Assessing any differences in this process between sectors can help managers and leaders understand how best to approach it with their workforce. Organisational culture – culture is a broad topic and encompasses a multitude of factors that can be assessed in a working environment. The current study investigated 23 variables focusing on the working environment across both sectors. Data from these variables was analysed to assess whether there are significant differences in employee engagement, happiness in the workplace, feelings of being valued and assistance with career progression, all with respect to the differences presented between public/not-for-profit and private/for-profit organisations.

The current study found that finance-based goals are much more prevalent in the private sector than in the public sector. Staff across both sectors are equally motivated by money, but the biggest motivators across both sectors are, how challenging the work is, the clarity of the goals that are set, the perceived fairness of the reward systems and the pathways provided for career development. No statistically significant detrimental impact was found from the financial pressures of a profit motive and the overall performance of the organisation. The implications of these findings are that managers in the public sector must find ways to motivate staff without financial rewards. They must ensure that the motivators outlined above are emphasised and that adequate support is provided. Public sector managers are also required to evaluate performance using a wider variety of metrics due to the unavailability of financial targets. It is imperative that from the findings that managers across both sectors ensure that the performance management process is fair as any perceived unfairness of this process will have an impact on its usefulness.

Item Type:	Thesis (Masters)
Supervisors:	Name Email -, - UNSPECIFIED
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management > Human Resource Management > Performance Management > Motivation H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management > Human Resource Management > Performance Management J Political Science > JS Local government Municipal government > Public Sector
Divisions:	School of Business > Master of Science in Management
Depositing User:	Ciara O'Brien
Date Deposited:	12 Aug 2025 11:45
Last Modified:	12 Aug 2025 11:45
URI:	https://norma.ncirl.ie/id/eprint/8508

Actions (login required)

View Item