Dividing Line Between Public and Private Sector

The divide between the public and private sectors are slowly becoming blurred according to the theory of contemporary management. The aim of this paper is to critically discuss the diving line between the two sectors.
During the 1950’s, the public sector started to expand and undertake everyday jobs that would have normally been private. As a result government also began to take responsibility for activities that would have remained private.
New Public management (NPM) is based on the philosophy of generic management. During the apartheid era, the South African Public Service was isolated and remained unaware of the new international developments with regards to public sector reforms. It is often argued that the study of Public Administration is based on the presumption that there is a major variation between the public and private management.
However according to Stoker: Governance refers to the development of governing styles in which boundaries between and within the public and private sectors have become blurred… Governance is more than a new set of managerial tools; it is also about more than achieving greater efficiency in the production of public services (Stoker, 1998).

Governance describes the management of a network of public and private providers as public services. Traditional distinction between the public and private sectors has become blurred due to governance thinking about developing synergy between the multitude sectors (Wettenhall & Thynne, 2004).
The blending of the public sector and the private sector resources brings about a new formal partnership between both the public and private sectors. Many private organizations retain the services of public workers. On the other hand, the goals of both sectors remain traditionally distinctive. Private companies have more defined goals that entail the need to make a profit while public organizations are driven by ethical values.  
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