Objectives of a Public Sector Organisation

Public sector organisations, unlike private businesses driven by profit, operate with the core objective of serving the public interest. While financial stability is important, their primary goals revolve around providing essential services, promoting social welfare, and acting in the best interests of the community. Let's explore the key objectives of these organisations.

Financial Goals: Balancing the Books While Serving the Public

While not aiming for profit maximisation, public sector organisations are accountable for their financial performance. Their objectives include:

• Meeting Government Targets: Governments allocate funds to these organisations and expect them to achieve specific targets, such as the number of patients treated in a hospital or pupils reaching certain academic standards in a school. This ensures accountability and efficient resource utilisation.
• Improving Efficiency: Public sector organisations constantly strive to deliver services more efficiently, reducing waste and maximising the value of public funds. This might involve streamlining processes or adopting new technologies.
• Reducing Costs: Minimising operational costs without compromising service quality is crucial. This allows for resources to be allocated effectively, potentially enabling the expansion of services or investment in other areas.

For instance, the National Health Service (NHS) in the UK is tasked with providing free healthcare while adhering to a budget set by the government. This requires constant effort to manage resources efficiently and seek innovative ways to deliver care.

Ensuring Affordability: Accessibility for All

A cornerstone objective for public sector organisations is ensuring affordability of their services. This can be achieved through:

• Subsidies and Price Controls: Governments may provide subsidies to lower the cost of essential services like public transport or housing, making them accessible to low-income groups. Price controls on essential goods and services also prevent exploitation.
• Targeted Assistance: Specific programs may offer free or discounted services to vulnerable groups, such as free school meals or subsidised healthcare for the elderly.

For example, many countries provide free public education to ensure that all children, regardless of their background, have access to quality education.

Universal Service Provision: Reaching Every Corner

Public sector organisations strive to provide services universally, regardless of geographical location or individual circumstances. This includes:

• Geographical Coverage: Ensuring services like postal delivery, emergency services, and libraries are available even in remote areas, promoting equal access and opportunities.
• Non-Discrimination: Providing services irrespective of factors like race, religion, gender, or social status, ensuring fairness and equality.

The Royal Mail in the UK, for instance, is obligated to deliver to every address in the country at a standard price, regardless of how remote the location is. This ensures everyone has access to this vital service.

Social Goals: Beyond the Bottom Line

Public sector organisations often have broader social goals beyond their core service delivery. These may include:

• Protecting or Creating Jobs: Organisations may be tasked with providing employment opportunities, particularly in economically deprived areas, thereby supporting the local economy and social fabric.
• Promoting Social Cohesion: Public spaces like parks, libraries, and community centers are funded to foster a sense of community and encourage interaction among diverse groups.
• Environmental Protection: Many organisations are tasked with implementing environmentally sustainable practices, conserving natural resources, and promoting awareness about environmental issues.

The establishment of national parks and the implementation of environmental regulations are examples of how public sector organisations contribute to environmental protection.

Conclusion

In conclusion, while financial responsibility remains important, the primary objectives of public sector organisations extend far beyond profit. They are entrusted with serving the public interest by providing essential services, promoting social welfare, ensuring affordability and accessibility for all, and contributing to a fairer and more sustainable society. The balance between these objectives and financial constraints is a constant challenge, requiring careful planning, efficient resource management, and a commitment to serving the needs of the community.

Source:

Stimpson, P., & Farquharson, A. (2015). Cambridge International AS and A Level Business Studies Coursebook. Cambridge University Press.