Module 2: Exploring how businesses are organised

Public Sector

 

As we have already seen, public sector organisations are owned and funded by the Government. That can be the central government of the United Kingdom or, in Wales, the devolved government of Wales.

By its very nature, the public sector often has different objectives to the private sector, e.g. service provision, cost control, value for money, service quality, meeting government standards.

Service Delivery

The public sector is often there to ensure the welfare and well-being of the people. We’ve already talked about the National Health Service. In Wales it is funded by the Welsh Government. The purpose of the NHS is to provide a free health and wellbeing service for all.

Cost control

As the public sector is taxpayer funded, it needs to ensure it keeps costs under control.

Value for money

There is also a need to ensure value for money as it is taxpayers’ money that is used. It is often necessary to go through a tender process when purchasing goods or services to ensure this.

Service quality

There is a need to ensure that the service is of a high quality as it is provided by the Government.

Meeting Government standards

When funding the public sector, the Government expects it to meet certain standards. For example, the Health Service in Wales needs to follow Welsh Government guidance: ‘This will set out what the people of Wales should expect when accessing health services and what role everyone has to play in promoting their own health and wellbeing.’