Which has a greater incentive to be effecient? A government bureaucracy that slowly filters money through its ranks, or a private organization that needs to make every dollar count?
2007-01-25 12:59:30 · 2 answers · asked by Anonymous in Politics & Government ➔ Government
upon reading your question, my brain jumped out of my head, ran up the stairs, jumped out the kitchen window and into a pile of snow to hide.
2007-01-28 08:08:24 · answer #1 · answered by ccr152 2 · 0⤊ 0⤋
Private organizations have greater incentive to be efficient.
Government workers are not paid according to performance. So, they do not perform well. What's more, if they are non-whites, they are almost impossible to fire for non-performance. If someone gets bad service from government bureaucrats, there is nowhere else to go to get better service. Government therefore has little incentive to improve performance.
In a private company, profit margin is based on efficiency and customer satisfaction. A product is made or service provided that is most suitable to the desires of the buyer, otherwise some other company will come along and do better. Competition is a powerful incentive.
2007-01-25 21:05:53 · answer #2 · answered by speakeasy 6 · 0⤊ 0⤋