Comparing organizational efficiency in private, government owned and start-up organization

Abstract

The research paper attempts to understand the organization effectiveness of Government Sector, Private Sector and Start-up firms based on five parameters viz: (i) Organization Design; (ii) Performance Evaluation; (iii) Cultural Alignment; (iv) Change Management; and (iv) Planning and Talent Development.Each type of firms be it public, private and start-up has its own strengths and weaknesses in these parameters, and this determines the effectiveness of the organization.Due to a rigid structure, a government firm is not easily adaptable to change but can withstand volatility and changes in the industry. Decision making is slow and saysof employees is less. The performance sometimes suffers due to inflexible working environment. Whereas in private firms,there arefewerhierarchy levels and emphasis is on results and performance evaluation. This helps in better organization efficiency but puts pressure on employees to deliver,and there could be ethical issues. In start-ups, there is a flat structure with most employees being equity holders and directly affected by the performance of the firm on a day today basis. These firms are most nimble and adaptable to change. They hire and fire employees and reduce or increase fixed and operating costs depending on the circumstances. These firms can have high organization efficiency with fast decision-making process but are vulnerable to volatility and unforeseen changes in the industry.The detailed analysis of each of the parameters in these three types of firms has been made in the paper, and it is concluded that the hypothesis made is very close to what happensin the real-time scenario for the three types of organizations.