Bureaucracy, decision-making and leadership in private and public organisations

Abstract

Starting from the current political discussion of privatization, a comparison is made between private and public organizations, focusing on the degree of bureaucracy and the processes of decision-making and leadership in the organizations. The comparison is based on empirical data published in the literature of organizational research, including some fresh material from a recent comparative study of strategic decision-making in British and Swedish organizations. On the basis of these empirical data, it is concluded that many of the arguments put forward in the discussion of privatization do not seem to be grounded in facts, and that the results of organizational research do not confirm the great differences that are said to exist between private and public organizations.