The Challenge Of Public Services In Private Ownership

Abstract

This research examines empirically the relationship between organisation effectiveness, financial efficiency, work environment and structure in public and private organisations. The objective is to examine whether it is the public or private ownership that influences organisational effectiveness and financial efficiency or the contingency factors. Limited research exists, discerning the relationship between these essentially conceptual variables, and the subsequent lack of empirical data. Data was obtained from sixty-nine employees, in twelve private and eight public companies in Victoria, Australia, who completed organisation effectiveness and financial efficiency questionnaires. The relationship of the contributing factors for each major variable has been examined independently using regression analysis. Essentially, the findings support the academic basis of the presently espoused employment relations theories that private organisations will be more financially efficient and less centralised than public organisations, but question the conceptual theories concerning the relationship of effectiveness, efficiency, structure and work environment. Results do show that formalisation is a significant variable, but pointing different relationship directions in public and private companies.