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 PPPP & Privatisation : Key Differences 1. Responsibility : Privatisation -Private sector's  PPP -Full  retention of responsibility by government  2. Ownership: Privatisation -ownership rights sold to private sector along with associated benefits and costs.  PPP -Government may continue to retain the legal ownership of assets by the public sector  3 . Nature of service:  Privatisation - Nature and scope of service is determined by private provider.  PPP  -Contractually determined between the 2 parties  4. Risk and Rewards :  Privatisation -All risks inherent in the bussiness rest with the private sector  PPP -Risks and rewards are shared between the government and the private sector.  Advantages  1. Operational Gains: Ensuring that one delivers better or more services for the same price (efficiency gains) or making saving to release money for investment elsewhere . 2. Strategic Clarity:   Partnership contracts enhance accountability by classifying responsibilities and focusing

Forms of Public -Private Partnership  1. Contracting: A contract is a legally binding written agreement between two or more parties that specifies something provided and something received in return.  Various contractual forms are 1. Service contract: Government bids out the right to deliver a specific service and sometimes provides the assets needed. 2. Management contracts : The assets of the institution continue to be public but operational management becomes private E. g. Management of hospital  3. Leasing : The private sector finances and builds a new facility which is then leased to the public sector. The public partner makes scheduled lease payments to the private sector and thus acquires equity in the facility.  At the end of the lease period the public agency owns the facility.  Under the lease arrangement either the public agency or the private operator may operate the facility during the term of the lease e. g. equipment.  4. BOT/BOO: The private sector builds a facility in

Public -Private Partnership  Public -private partnership (ppp) describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies . These schemes are sometimes referred to as ppp. PPP involves a contract between a public sector authority and a private party in which the private party provides a public service or project and assumes substantial financial, technical and operational risk  in the project.  It is purportedly a means of bringing together social priorities with the managerial skills of the private sector relieving government of the burden of large capital expenditure and transferring the risk of cost overruns to the private sector.  Rather than completely transferring public assets to the private sector as with privatization government and bussiness work together to provide services.  In some types of PPP the cost of using the service is borne exclusively by the users of the serv

Vroom and Ye tton's  Contingency Theory  This theory is also called the Leader Participation Model. Vroom and Yetton base their analysis on two aspects of a leader's decision : ● Decision Quality: The effect that the decision has on group performance  ●Decision Acceptance : It refers to the motivation and commitment of group members in implementing the decision  Vroom and Yetton identified five leadership styles based on the degree of employee participation and power in making organizational decisions : ● Autocratic  (A-1) : The leader solves the problem himself or makes the decision alone using information available to him at that time. ● Automatic  (A-2): The leader obtains information from his subordinates but the decision on solution is his alone. ●Consultative  (C-1): The leader shares the problem with his subordinates individually . He then makes the decision which mayor may not reflect the influence of his subordinates.  ● Consultative  (C-2): The leader shares the probl

Limitations of Hersey and Blanchard theory of situational leadership  ● There are people who possess the appropriate knowledge and skills and appear to be the most suitable leaders in a given situation, but who do not emerge as effective leaders ●It does not explain fully the Interpersonal behavior or different styles of leadership and their effect on members of the group  ●In any organization,it is not usually practical to allow the situation continually to determine who should act as the leader Contingency Models  Contingency theories provide another general approach to the study of leadership. These theories are based on the belief that there is no single style of leadership appropriate to all situations.  Fiedler's  Contingency Model Leadership behavior is dependent upon the favorability of the leadership situation. Leadership style will vary as the favorability of the leadership varies.  Least preferred co-worker  (LPC) The leadership style of the leader thus fixed and measure

The Situational Approach  The Situational approach concentrates on the importance of the situation in the study of leadership.  A variety of people with differing personalities and from different backgrounds have emerged as effective leaders in different situations. The person who becomes the leader of the work group is thought to be the person who knows best what to do and is seen by the group as the most suitable leader in the particular situation.  The theory emphasizing the importance of the situation for managerial leadership was developed by Mary Parker Follett.  According to Mary P Follett situational leadership involves  ●Depersonalization the giving of orders  ●Unite all concerned in a study of the situation  ●Discover the law of the situation and obey that  ●One person should not give orders to another person but both should agree to take their orders from the situation  Paul Hersey and Kenneth H. Blanchard  ● Leadership is based on the "readiness" level of the peop