7C002 - People Management and Development Essay Sample

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Introduction to People Management and Development Strategies for Performance Essay

Public sector organization implies business entities that are owned and operated by the government and aim at providing services to citizens, often supported through state and local taxes for community welfare. The University of Edinburgh is a public university established in 1583 by King James IV and funded by the Scottish Government, with a large academic and administrative workforce. In contrast, private sector organizations are owned and controlled by individuals or companies and primarily focus on profit maximization rather than community welfare. This essay, with reference support similar to Online Assignment Help UK, will define three major differences between people management practices in public and private organizations, focusing on performance management, pay structure, and training and development sessions.

7C002 - People Management and Development Essay Sample

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Main Body

Pay and rewards structure implies for the collection of levels and grades that are related to jobs within a series and hierarchy. This acts as the framework for deciding and implementing rewards’ policies and strategies. There is a difference in the pay structure of both public and private companies. Moreover, public companies use incremental pay scales whereas performance related pay (PRP) is used within the private organization (Hendy and Tucker, 2021). This type of difference exists as there is a huge variability in the funding, budgeting and controlling of both the organization. Incremental pay scale refers to the fixed percentage increase in the annual salary of employees. This system is used in Public sector organization as there is a fixed budget for a year which requires organization to have standardization in compensation. However, Performance based pay implies to system in which rewards are decided on the basis of employee’s overall performance (Blom et al, 2020). Private sector organization aims at maximizing their profit which is hugely impacted by employees’ overall performance. In this context, PRP technique is used to motivate employees that ultimately enhances their productivity and thereby results in higher entity’s profitability. For example: University of Edinburgh use incremental pay strategies in which competitive salary are offered to workers (Pay structure ofuniversity of Edinburgh, 2025). Along with this, insurances, retirement plan, health insurance, sick leaves and paid federal holidays and rigid working hours are established for employees that helps in managing their overall satisfaction. In contrast to this, private organizations are not having rigid working hour policies due to which employees generally feel overburdened.

Performance management refers to the process of initiating regular communication between employee and manager that aids in clarifying the job responsibility, performance expectation and development plan. This process aids in optimizing individual’s performance and thereby supports in attaining the organization’s goals and objective (Knies et al, 2024). It has been identified that publicly funded organization generally uses appraisal or peer review technique of performance management. On the other side, key performance indicators are majorly used by the private company. This difference exists as public sectors organization generally takes decision on the basis of manager’s and superior review. On the other hand, Private sector organization aims at critically evaluating all the crucial aspect related to the workers’ performance due to which KPIs are used. Moreover, this difference is also presented as promotion in the public sector as it depends on the seniority of employees due to which peer view techniques being used (Boselie, Van Harten and Veld, 2021). For example: For analysing the employee’s performance a sheet is provided to each employee on which they need to rate their colleagues (Performance management inuniversity of Edinburgh, 2024). These results are then collected and averaged to identify the overall efficiency and productivity of employees. These techniques aid in offering the constructive feedback and supports continuous improvement. However, promotion in private organizations is based on overall performance and efficiency of the employees that could only be evaluated through KPIs. Manager and seniors are only able to define whether employees become able to attain the goal or not but overall efficiency could only be analysed through KPIs.

Training & development refers to the process of enhancing workers’ skills and competencies that help employees in undertaking the new responsibilities. Private and public sector organisation have differential goals due to which there is a huge variation in the type of training sessions. Public sector organization aims at providing training that facilitates long term growth of the employee’s. In contrast to this, private company generally initiates training with the aim of attaining organization’s goals (Cho, Choi and Choi, 2023). Public sector organization aims at overall welfare of community and society due to which it focuses on CPD that aids in the overall development of employees. For example: University of Edinburgh establishes wide range of training session related to the academic development and progression, support for disable students, handling students ‘mental health and wellbeing and related to the international students (Training and development inuniversity of Edinburgh, 2025). All these aspects help professionals in developing the wide range of knowledge and skills that ultimately enhances overall productivity. On the other hand, private organization focuses on enhancing their profits that could be achieved by improving the overall efficiency of the employees. In this regard, company generally establishes the type of T&D session by which organization’s goals could be achieved and competitive edge could be established in the industry (Ingrams, 2020). Private company generally ignores personal training requirement of workers and only focuses on arranging session based on organization’s need that impact on overall satisfaction.

Conclusion

By summing up the report, it has been identified that there is a huge difference in the people management within both public and private sector organization. It has been determined that incremental pricing is used in public sector whereas private sector emphasizes on using performance related pay. Moreover, Public sector uses peer review method for analysing workers’ performance meanwhile KPI’s are widely used by the private sector organizations. Further, Public sector aims at arranging the wider range of training sessions which contributes in the employees’ development. In comparison to this, attainment of goals is one of the main motives of private sector behind conducting the training sessions. This type of difference exists as public firms are aiming at welfare of community and private organization only emphasis over profit maximization.

References

Books and Journals

• Blom, R., Kruyen, P.M., Van der Heijden, B.I. and Van Thiel, S., 2020. One HRM fits all? A meta-analysis of the effects of HRM practices in the public, semipublic, and private sector. Review of Public Personnel Administration, 40(1), pp.3-35.
• Boselie, P., Van Harten, J. and Veld, M., 2021. A human resource management review on public management and public administration research: stop right there… before we go any further…. Public Management Review, 23(4), pp.483-500.
• Cho, W., Choi, S. and Choi, H., 2023. Human resources analytics for public personnel management: Concepts, cases, and caveats. Administrative Sciences, 13(2), p.41.
• Hendy, J. and Tucker, D.A., 2021. Public sector organizational failure: a study of collective denial in the UK National Health Service. Journal of Business Ethics, 172(4), pp.691-706.
• Ingrams, A., 2020. Organizational citizenship behavior in the public and private sectors: A multilevel test of public service motivation and traditional antecedents. Review of Public Personnel Administration, 40(2), pp.222-244.
• Knies, E., Boselie, P., Gould-Williams, J. and Vandenabeele, W., 2024. Strategic human resource management and public sector performance: context matters. The international journal of human resource management, 35(14), pp.2432-2444.

Online

• Description of university of Edinburgh. 2024. Online. Available through: < https://www.ed.ac.uk/>
• Pay structure ofuniversity of Edinburgh. 2025. Online. Available through: < https://human-resources.ed.ac.uk/pay-reward/pay/pay-scales>
• Performance management inuniversity of Edinburgh. 2024. Online. Available through: < https://ebs.online.hw.ac.uk/EBS/media/EBS/PDFs/Performance-Management-Course-Taster.pdf >
• Training and development inuniversity of Edinburgh. 2025. Online. Available through: < https://human-resources.ed.ac.uk/learning-development/courses>