The process of converting a public sector organization to a public sector organization by changing the ownership of the business is called Privatization. In privatization, a business can either be completely or majorly bought out by someone or the stocks can be owned by both the private and public owner partially.
In case of small and mid size businesses, privatization can prove to be very advantageous because the private firms have relatively more resources and are more flexible to changes and adapt and respond to them quickly and this helps in the development. There is no pressure of civil services. The productivity of the organization also increases because in private firms positions are not determined by seniority in the firm but the talent. Other than that the rules are such that they help the workers in workers at their best and motivate them.
There is more innovation in private firms and there is no bureaucracy as there is in the public sector organizations. The privatized company becomes more cost efficient and due to the competition, there is more differentiation.
In case of small and mid size businesses, privatization can prove to be very advantageous because the private firms have relatively more resources and are more flexible to changes and adapt and respond to them quickly and this helps in the development. There is no pressure of civil services. The productivity of the organization also increases because in private firms positions are not determined by seniority in the firm but the talent. Other than that the rules are such that they help the workers in workers at their best and motivate them.
There is more innovation in private firms and there is no bureaucracy as there is in the public sector organizations. The privatized company becomes more cost efficient and due to the competition, there is more differentiation.
