Why do you think public sector companies are less developed than private sector companies?

The difference between them is PROFIT. 

1. I share the opinion that most public sector companies have "monopolistic" characters and as such have less thirst for competition-driven innovations.2. Another reason (rather plausible excuse) could be related to two-faced character of public sector companies, being geared towards profit making as any other business, but at the same time towards serving the public in an affordable way to them, while bound by government regulations, policies, labour unions and customer protection organizations. The profit making paradigm for public companies, doesn't always stimulate big investments since it's profit is "tamed" by economic forces such as "purchase power". Quite a paradoxical dilemma; it is good in intent but often turns out to be bad in result. This could be an energy provider (with bad customer service) in one company or the one and only railroad company in another (with bad rails maintenance and unreliable departure and arrival times).

may be lots of captains on one ship,,, no real accountbility , no responsibilty

May be due to limitations in allowing space for creativity and ideas by others.

Good Day!

Agreed to the answer given by Mr. Khatim Abbas Seed. The major difference is the culture and corporate attitude towards professonalism and too many layers to perform a single task.

Public/Government sector is truly lagging behind private sector in almost everything, maybe except for the "MONOPOLY" that public sector enjoys versus the private sector.

 

This specific thing .. the "monoploy" factor could also be the cause or one of the main causes of the problem .. i.e.  this "monopoly" statuis creates an atmosphere of "false security" , lazy upper-hand attitide, lack of competitveness, and lack ot motivation to improve and move forward

 

We can elaborate on every word in the statement above and possibly write a lengthy article about the problem,but to be brief ... this is the problem and its analysis from my viewpoint !

Public sector is subject to scrutinised investigation by public as they are in public interest.They also have lots of area that needs to be considered but private sector  are profit oriented that's why private sector are more developed

The difference is in objective

private company: profit maximization      Public company: public welfare by providing competition to the                                                                                 private companies

 

Private companies bears all its expenses from his/her own resources while public company get funds from govt.

In publice companies, due to nepotism qualified people(majority) do not become the part of the company and earn less profit or even losses. for example Pakistan International Air Lines.

In private companies, promotion, bonuses etc are awarded on employees performances while in second one all these are awarded on favorisim.

Private companies enjoyes decentralized activities while on the other hand, the second one practice centralized.

 Public companies provide goods on less prices as compare to their competitor to restrained the private companies to earn abnormal profit.

pubic companies do not care about the quality and after services assignments while private secotor pay much attentin on this factor.

 

Public sector companies will do better if they have got good leadership. The problem that employees do not feel serious care towards customer needs they only think for their running salaries and career skeleton levels.

 

The bad management lose the fruitful environment of the public sector and governmental sector as well.

 

To prove my opinion that when some public sectors sold out to private management they grow and offer more customer services and care which obviously reflected in turn to the employees salary scale.

I believe its because of the difference in attitude and management styles. Public companies are usually aggressive in their attitude and management style, seeking to expand and grow their business at every given opportunity, employees are always pushed to perform to the best of their capabilities and have strict deadlines to adhere to. At the same time, in public companies, the attitude is kind of relaxed, the employees (often) are not under any pressure to get things done and the primarty objective is not to focus on profits or growth and development and there is more job security making the employees complacent. 

Public Sector companies are only a part of a huge industrial sector that depends on a main factor which is the long term planning that give it the ability to reduce the influence by current market changes.

beside the main goals of public sectors is to maintain the stability and neutral competition of the market, while off-course that is no the goal of any private sector company.