MEANING

The public sector represents the segment of the economy owned and operated by the government.

These organizations typically do not seek profit and often provide public services to the government's citizens.

Some of the advantages of working in the public sector include:

• Public sector employees typically enjoy more job stability because their organizations do not need to meet market pressures. These employees also often perform services that are consistently needed by the public, which can further ensure job safety.

• Individuals working for government agencies or departments often receive comprehensive benefits packages. These benefits may include health insurance and retirement benefits. This advantage can make it easy for such employees to move amongst different public sector jobs while retaining similar benefits.

• Some individuals may enjoy the public sector because it can provide opportunities to serve the community. Rather than striving to create profits, they can play a role in improving the lives of others.

TYPES

Public sector organizations are formed in three different forms:

• Departmental undertakings

• Public corporations/statutory corporations

• Government company

ACT

It is incorporated under section 8 of the Companies Act 2013.

They are formed purely for business reasons and are commercial concerns.

The composition is so that the government (centre, state or local) owns a minimum of 51% of the company and its shares.

EMPLOYMENT

In the public sector, civil service employees—those who work for federal, state, or local government agencies—receive pay and benefits under different systems than private employees.

Federal employees of the U.S. government, for example, work under the federal civil service system, which includes classifications of positions to ensure equal pay for equal work across all federal agencies.

GOODS PROVIDED

Public goods are the commodities or services provided by the nature of the government of a country, free of cost or by taxing the few people to offer mass benefit to the public in general. Public goods carry the mass benefit for the people.

They have a broader perspective.

These goods can be used by many people or the public simultaneously.

These are usually free of cost and can be utilized by the rich and poor equally.

The primary objective of such goods is to provide essential amenities to the public in general, along with promoting social welfare and development of the nation as a whole.

OBJECTIVE

Usually the aim of public sector business is to provide services to the community.

For example if the transport system is owned by the government and it is running a bus service to an interior village and it is not getting enough customers, the government might still continue it as its main objective is to provide service and not to maximise profits. Whereas private sectors business give priority to profits and may end the service if it does not find it profitable to run the service.

Secondly Public sector strives to create employment whereas Private sectors main aim is to become efficient and cut cost and in this process they might cut jobs.

Public sector business usually locates in regions where there is underdevelopment so as to create jobs and income for local population.