Difference Between Public Sector and Organized Sector

Edited by Diffzy | Updated on: April 30, 2023


Difference Between Public Sector and Organized Sector

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In early times, the public sector enterprises such as railways, all Indian radio, posts, and telegraphs were managed. Public sector activities, including the services, are controlled and regulated by the State Government. Nowadays, the government is looking for schemes for widening the private sector.

The government regulates and recognizes the organized sector. People get guaranteed work in these sectors in various fields. These sectors provide various advantages to the people, such as job stability with additional benefits such as incentives and remunerations.

Public Sector Vs Organised Sector

  • The public sector is also known as the state sector, which plays a crucial role in the development of the economy. The organized sector provides fixed employment opportunities with various benefits such as job stability and security, incentives, extra pay for part-time work, leaves, and other facilities too.
  • Organization working in the organized sector has to follow some rules and procedures, whereas no such formalities are required in the organizations of the public sector.
  • The organizations registered with the government come under the organized sector, such as clinics, shops, businesses, etc., whereas the public sector consists of those organizations that are controlled and governed by the government.

Difference Between Public Sector And Organised Sector In Tabular Form

Below is the table of differences between the public sector and the organised sector given.

Parameters of Comparison Public Sector Organised Sector
Meaning and Definition The organisations under this sector are owned by the government. The organizations in this sector are registered with the government.
Objective The main objective of the public sector is to provide services to the people without profit. The main objective of this sector is to seek profits for the employees while providing the services.
Examples Examples of the public sector include railways, airports, and many others. Examples of the organized sector include factories, schools, government jobs, hospitals, etc.
Rules and Regulations In the public sector, no such rules are applied to the organizations. In this sector, there are certain rules and formalities imposed by the government such as the shop’s act, factories act, etc.

What Is The Public Sector?

Public Sector is a portion of an economy that does not include private companies and households. Public Sector can be defined in various ways, such as government consumption, government activities, etc. The role of the public sector plays an essential role in the better functioning of our society. The public sector provides all the necessary stuff which is required for the well-being of society. The public sector also promotes the stability and growth of the country.

In recent times, the focus on the public sector has decreased and shifted more toward privatization. This led to an increase in the organization of the private sector.

The funding of the private sector can be raised through taxes, financial transfers, and fees. Sometimes, the public sector can partner with private sector organizations. This engagement of public and private sectors serves the goods of the citizens of the country.

The public sector has various types of organizations and each of them has its purpose. Some examples of the public sector include:-

  • The public sector provides various Healthcare facilities such as clinics and hospitals.
  • Educational institutions in the public sector include colleges and public schools.
  • Public Sector provides various utilities such as water, sewage, and electricity.
  • The public sector also provides some additional services such as police services oil, fire service, emergency services, social services, etc.

The public sector includes three levels of government such as regional government, national government, and local government. All three levels of government have their responsibilities and duties. The main responsibility of all three governments is to provide public services.

Employment Criteria In The Public Sector

There are more women compared to men working in the public sector in various fields such as education, healthcare, etc. There are a wide variety of jobs and opportunities available in the public sector. Here are some examples of public sector jobs such as city planners, statisticians, crossing guards, firefighters, art administrators, and social workers.

Contributions Of The Public Sector To The Economic Development Of The Country

Public Sector is an important sector of the economy and it provides health care, transportation, infrastructure, and other things. The publicly managed agencies and governments that supply public goods and services contribute to the public sector.

Public Sector is one of the growing institutions and it intersects with the private sector. Public roads, military, education, and other institutes come under the public sector. There are some NGOs and public companies which provide services but they have other sources to generate revenue (not dependent on the government).

Steps To Boost The Economic Development Of The Country

  • The public sector provides various opportunities for employment to unemployed people and is also a source of resource distribution. Employment in government jobs is also available in the public sector.
  • The public sector is increasing, creating infrastructure, and providing job opportunities to the people which helps in the development of the country and its resources.
  • The development of infrastructure is important for economic development and growth. Public sector investment in infrastructure in various areas such as transportation, canals, education, etc results in economic growth.
  • The the public sector has contributed a lot to building a strong industrial foundation for the country. As the public sector is expanding in various fields such as coal, fertilizers, medicines, chemicals, etc. it is naturally strengthening the economy. Private sectors are also developing because of these industries. Several key industries come under the public sector such as petroleum products, copper, coal, etc.
  • Public Sector has played a significant role in the formation of capital. Public Sector has also maintained a record in export promotion and import substitution.
  • Public Sector contributes toward community development. The public sector contributes the amount to the central exchequer in the form of corporate taxes, dividends, customs duty, etc. In various ways, the public sector contributes to the development of the economy and society which improve the quality of life.

Misconceptions And Steps For Improvement In The Public Sector

The several misconceptions about the public sector are it is corrupt and inefficient. This problem of corruption is not new and exists in both the public and private sectors.

These misconceptions can be improved in various ways such as an increase in accountability to help in reducing corruption in the public sector. Providing proper training help the employees working in the public sector to improve their skills and can provide better services. Improving efficiency in the public sector help in providing quality services.

What Is The Organized Sector?

The organized sector is controlled and regulated by the government. Employment is regular in these sectors in various fields. The organized sector provides various benefits to the employees such as job stability, bonus, and part-time work for extra income, regular salaries, fixed working hours, retirement benefits, and other facilities. In short, we can say that the jobs are consistent in this sector and workers get guaranteed work. Here are several features of the organized sector.

The Main Features Of The Organized Sector

  • Employees enjoy several benefits in a job such as incentives, extra money for overtime or part-time work, job security, etc.
  • Employees working in the organization of the organized sector get leaves, medical facilities, free health facilities, clean water for drinking, and provident funds.
  • The organized sector is known as organized because it has some rules, regulations, procedures, and formalities.

Working For Women In The Organized Sector

  • The growth of the organized sector is increasing widely and this has a great impact on the participation of women in this sector.
  • Women are increasing in the organized sector as there are various job opportunities for the growth of women. The job opportunities available for women include retail and wholesale business, construction, manufacturing, etc.
  • Women working in the organized sector are independent and get various facilities such as recruitment, job stability, promotion, child care facilities, maternity, etc.
  • Women work on different levels from lower to higher positions in different fields such as factories, agriculture, mines, etc.
  • Women have inadequate access to various facilities, they face a lack of training, education, and skills, and they have low awareness of occupational safety.
  • Women reported health issues at work and expressed the need for restrooms, but the restrooms are rarely available.

There are certain problems faced by women in the organized sector and many problems remain unidentified such as low-paid jobs due to the low access to education and training, women being paid unequally for the equal work, men receiving more wages, and priority as compared to women. Other problems raised by women are is given below:-

  • The main problem raised by women is sexual harassment. Women working in low-paid jobs don’t have proper freedom to raise their voices against sexual issues. Many women are bullied but they do not raise their voices because they fear job loss. It is found that 25% of women have raised harassment issues against their supervisors.
  • Ware was bullied by male clients and supervisors. Women face men’s comments, vulgar language, and unpleasant remarks on the wall of the washroom.
  • The issue raised by the women is job insecurity or losing the job, fear of job transfer, the uncertainty of career, etc.
  • Women also raised the issue of lack of training as they have almost no access to training. The government has taken several measures or steps to support women and protect their interests in the organized sector.
  • The government also declared to make a sexual harassment committee to help women against sexual harassment issues.

Main Differences Between Public Sector And Organized Sector in Points

  • The main difference between the public sector and the organized sector is that govt controls the organizations working in the public sector, whereas the organizations in the organized sector are officially registered to the government, such as clinics, schools, stores, factories, etc.
  • The main difference between both sectors is that the public sector has the objective to provide the best services to the people without considering the profit. On the other hand, the organized sector has the objective to provide the best services considering the additional profits for the employees.
  • Airports, railways, public roads, and public hospitals come under the public sector organizations. Whereas the units registered with the government, such as banks and factories, come under the organized sector.
  • There are no such rules followed by the organizations of the public sector, whereas organizations of the organized sector have to follow some rules and procedures such as factory law and others.
  • The area of working in the public sector includes education, police, army, agriculture, etc, whereas government jobs and working in the factory come under the organized sector.


As we know, public and organized sectors play an essential role in the Indian economy. The public sector has a huge contribution to the ranking of India. Demand for both sectors are high in the market as they provide employment opportunities to people, including women. As the population is increasing there are various sectors set up such as the private sector, public sector, organized sector, etc to provide services to the citizens.

The public sector plays a big role in the economy, and it excludes non-profit organizations, households, and private businesses. Public Sector also describes the comparison between the voluntary sector and commercial sector. Our economy is affected by the public sector in more than one way. The public sector also keeps in mind the lifestyle of the people with growth.

Organized sectors are safe for women and governed by the government. People working in this sector enjoy various benefits. Both sector also contributes to the economic development of the country. The employees must be hard working as they are the backbone of the company and help the company to achieve its goals and success. Both sectors provide good working conditions and various amenities to the workers. Hence, our nation is blessed with the continuous growth of the public sector.


  • https://www.privacysense.net/terms/public-sector/
  • https://www.topperlearning.com/answer/what-do-you-understand-by-the-organised-sector-list-four-main-features-of-the-organised-sector/7cj72f7oo
  • https://www.google.com/amp/s/whatmaster.com/public-sector-and-organized-sector/amp/
  • https://www.google.com/amp/s/www.geeksforgeeks.org/how-public-sector-contributes-to-the-economic-development-of-a-nation/amp/


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"Difference Between Public Sector and Organized Sector." Diffzy.com, 2024. Fri. 19 Apr. 2024. <https://www.diffzy.com/article/difference-between-public-sector-and-organized-sector-1159>.

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