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Economy represents value for money and delivering the required service on
budget, on time and within other resource constraints.
Efficiency An efficient organisation delivers more for a given level of
resource input than an inefficient one.
Effectiveness describes the extent to which the organisation delivers what
it is intended to deliver.
Governance Arrangements
There is no single way in which public sector organisations are governed.
There is an increasing move in some situations to run some public services along
similar lines to private companies.
This means they may have an executive board and also some non-executive
membership on the board also.
The contestable nature of public sector policy
Many wonder if public sector organisations are operated properly and even if the
power of the state is so big that perhaps they shouldnt exist at all
Some governments prefer a larger state sector, while others prefer more to be
achieved in the private sector and less by government.
As governments change, some public sector organisations grow in size and become
more important, and others become small and less important.
One upshot of this is privatisation.
Taking a public sector service and allowing it to be provided by the private sector,
hopefully leading to better value to the customer.
Opponents of privatisation argue that some strategic services, such as utilities,
water, etc, are too important to be subject to the market forces of private
enterprise.
Privatised businesses are often subject to a great deal of internal change including
changes in culture, structure, and governance.