ABSTRACT
The most apparent difference relative to performance management between the sectors is that performance in a private sector organization involves measuring things such as profit, cash flow and return on investment. As the environment has become much more dynamic, competitive and globalized, an increased need to ensure ongoing viability and flexibility has emerged, for both the private and the public sector. Since there is not a profit and loss statement for public sector organizations it is difficult to evaluate whether too little or too much is being invested in the workforce. The use of formal performance management systems is less widespread in public sector organizations at the state, city and county level than it is at the federal level, and when such systems exist they may be used only for promotion and disciplinary actions. One of the principal differences between the private and public sectors is the variety of rewards that can be utilized.
