The Human Side of Privatization

The Human Side of Privatization

Should privatization decision be based solely on short term considerations? Solely on long term considerations? On some combination of both? If the latter, how should these be merged? What should be the criteria upon which a privatization decision is made?

The decision should be made on the combination of both, short term and long term privatization, as both of them have their own advantages. It is essential to collect the beneficial component from both the types, to ensure maximum level advantage to the organization. Those factors from both, short term and long term privatization should be considered that actually serves in best interest to the organization.

If all the largest countries in the state have adopted the practice of contracting out for janitorial services, are there larger economic and social implications that should be taken into consideration regarding the nature of jobs being lost and those being created?

Janitorial services involve individuals who belong to the class of society involved in constant struggle. The labor rights can greatly intervene in the decision of contracting out of janitorial services. The economic implications that should be taken into consideration involve the recruitment cost of other employees who'd be replaced with former once. The employees who were well adapted to the job are replaced with ones who might not really be good with the nature of job they have to execute. Furthermore their training cost is also one of the perimeters to be considered. The social considerations involve the ethical dimensions of the issue; employees who lose their job might be socially affected (Prokopenko,1995). Their families are disturbed and social pressure is increased. Furthermore these social aspects can trigger political dimensions of the issue.

What factors in the case contributed to the in-house service efficiency problem? What ...