Hrm Practices in the Public and Private Sectors: Differences and Similarities

Abstract

The purpose of this study was to examine empirically if there are differences in the way that HRM practices are performed in the private and public sectors of the economy. The theoretical base of this investigation is anchored on the proposition that some HR practices are always better than others and that all organizations should adopt these “high performance work practices.” In recent years, organizations in the public and private sectors have witnessed many changes in their environment. These pressures have pushed organizations from both sectors to continuously improve their performance. The authors focused on the macro-level of the organization and its productivity. A total of 102 questionnaires were completed and returned by human resource VPs, representing 44 percent of the firms contacted. The hypotheses were tested using data describing human resource management operation. The authors found that public sector management emphasizes those HRM domains that deal with employee selection and grievance procedures because of the sector's high level of unionization. On the other hand, private sector management emphasizes employee growth and pay for performance. Nevertheless, the authors also found evidence that the public sector is “moving” closer and closer to the private sector model by adopting “high performance work practices” in order to overcome the turbulent environment and public demand.