Question -
Answer -
Public sector and private sector operate differently and hence it will be difficult for public sector to match up in profit and efficiency due to the following reasons:
1. Public sector operate for social welfare whereas private sector operate for profit maximisation, hence it will be tough to compete
2. As the ownership rests with the government, many of the decisions will be taken based on political considerations instead of getting more profit.
3. Employees are less efficient in public sectors as there involves many rules and regulations, while it is more performance oriented in private sector.
4. Public sector are slower to embrace new technologies while private sector is a fast mover.