COMPARISON OF CHARACTERISTICS OF PRIVATE PRODUCT PRODUCING ORGANIZATIONS AND PUBLIC-SERVICE ORGANIZATIONS

This analysis explores whether propositions and empirical findings of contemporary theories of organizations directly apply to both private product producing organizations (PPOs) and public human service organizations (PSOs). Eight central characteristics are compared: organizational values and goals, incentives, organizational structure, raw materials, power‐dependency relationships, technology, revenues and accountability, and environmental constraints. Major differences between PPOs and PSOs suggest that organization theories developed from findings about PPOs inadequately describe PSOs. Comparative research would demonstrate the need for new models of these organizational types. Since these types derive from contradictory assumptions and have differing characteristics, each should be sampled to the other's exclusion and generalizations made only to that type. The findings refute the popular assumption that all PSOs can privatize with equal success This is not a failure by PSOs to achieve PPOs' standards; rather the types pursue different values and accomplish different goals. Copyright © 1990, Wiley Blackwell. All rights reserved