Negotiations in the public and private sectors represent the issues and challenges that affect the operation and the existence of the two sectors in the economy and in the market. It is important to note that both sectors face different negotiations that influence the occurrence of the two sectors in the economy due to the different policies and strategies implemented from the managerial position and also from the governmental regulations. The public sector negotiations are however seen to be more complex as compared to the private sector negotiations due to many challenges faced in their operations.
Elaborate budgeting is one of the problems that face the public sector. The budget in public sector is made with so much intensified considerations that otherwise makes it complex and less flexible and also taking longer time to make and implement. Budgeting is also done once in a year, this is a hindrance since many projects in the public sector that are done throughout the year due to many arising issues of emergency in the public. This makes negotiations to be difficult to handle. In the private sector on the other hand, the financial year may differ to suit the operation of an organization in the market.
Therefore, the private sector is not being affected by the rigidity and complexity of the time frame of the budget constraint because it allows for flexibility in the managerial decision making. Negotiations are therefore made easier in the private sector than in the In addition to that, the public sector faces different manifestos and priorities laid down by different parties in the budgeting which prolongs the duration of implementation. In the private sectors there are few individuals involved and also a supplementary budget may be allocated in times of limitation of finance.
The public sector negotiations also include the relationship between the employee and the employer. In the public sector, hiring and firing process of the employees is so complex. A person holding a public office can not be fired without some of the procedures which may be take a long duration of time especially when the situation is politically influenced. Political influence in the public sector is very much diverse as compared to the private sector. Politics challenges the negotiations of public policy especially where major decisions makers in the public sectors are politicians, political appointees or political allies.
This is in contrast with the private sector where policy making is based on integrity, understanding and ability of the management and its professionals. These factors make negotiations in the public sector to be complicated. There is a drastic increase in the public employees and expected financial woes in the governmental entities that influence the relations between the employee and the employer. Problems associated with this issue is that there are many problems involved in the negotiations contracts, strikes and grievances, resolution of standoffs, and administration of contracts in the public employment.
On the contrary, the private sector is less affected by the influences of the governmental entities since there is some kind of independency in the operations by the management and the relations between the employer and employee relations. The government may also involve itself in the imposition of laws and limitations of the scope of the sector’s operations. It may define the extent to which the entity should reach in provision of its services. The private entities are entitled to their own policies and laws that should be in line with the law.
In addition to that, the scope and extent of operation of the private sectors is flexible as they can re-design their scope easily at any time that may deem suitable. Therefore, it is necessary to state that the public sector negotiations are more challenging as compared to the private sector negotiations. In general, negotiations in the public sectors are complex than they are in the private sectors because of the complicated logistics and often the existing red tapes that make employees claims not to be addressed in a timely manner.