The decline of an organization requires noting and remedying to ensure that the organization does not collapse. Some of the signs of a declining organization include the increase in employee turnover due to low wages and lack of motivation. The low wages is due to low earnings enjoyed by the organization because of a decline in market presence. Low earnings attributed to a decline in the revenue generated by the organization because of a decrease in consumer satisfaction. A decrease in customers means that the organization does not enjoy economics of scale. This results to an increase in the operational cost thus low profits (Rainey, 2009).
Public sector organizations are old and may be using outdated practices. Organizations that are not embracing changes in their operating environment risk overtaking by time. The organizations in the public sector face the challenge of uncertainty in management. Different managers that may implement conflicting policies affecting the growth of the organization run the organizations. Young leaders selected to run an organization lack the experience required or the desire to learn from their experienced juniors. The size...
A large organization with numerous vertical levels does not have the ability to adapt to changes thus the decline of the organization (Bozeman, 2004).
Competition from organizations in the private sector has affected operations of businesses in the public sector. Many organizations in the private sector provide quality services at competitive rates thus competing with public sector organizations. The private sector is responsible for poaching qualified workers in the public sector by luring them with attractive remuneration and benefits. This competition from the private sector affects the efficiency of the public sector organization. Organizations in the public sector lack a learning culture. This affects the quality of service delivery by the organizations as they use outdated practices.
References
Bozeman, B. (2004). All organizations are public: Comparing public and private organizations. Washington: Beard Books.
Rainey, H.G. (2009). Understanding and managing public organizations. San Francisco, CA: Jossey-Bass.
