Prestige Level
The company’s transformation from private into public can be considered an important process that is followed by multiple changes in its structure, climate, organizational culture, and functioning. First of all, significant alterations in attitude to the firm and its prestige can be admitted. The entrance to the public domain means the improved cooperation with the community and individuals as the company becomes focused on the satisfaction of their needs. For this reason, all employees start to feel their belonging to an important mission and acquire more opportunities for self-realization (Meyer, 2017). Moreover, cooperation with the government means better engagement and options for career growth (Meyer, 2017). All these aspects significantly impact the company.
Organizational Structure
The given change will affect the organizational structure because of the need to consider new conditions and engage in new activities. Regarding the fact that organizational structure includes roles, responsibilities, actions, and culture, all these domains will be influenced (Meyer, 2017). Thus, the existing approach to the company’s management will be reconsidered with the primary aim to introduce a new delegation system presupposing a better distribution of socially important tasks among employees (Meyer, 2017). At the same time, new roles can be introduced in teams to achieve better monitoring and distribution of responsibilities among workers (Meyer, 2017). Finally, changes in the organizational structure might mean the creation of new departments focused on relations with communities and assessment of their current needs.
Clients
Another factor that impacts the company and its organizational structure during the transformation from public to private is the change in the targeted audience. The firm working in the public domain is more focused on the observation of the needs of individuals belonging to various communities and satisfaction of their current demands. For this reason, the prevalence of social factors becomes topical for the company and its future growth (Meyer, 2017). At the same time, it is critical to align the cooperation with society, which should be supported by an appropriate organizational change and radical transformation of priorities. That is why the given change should be followed by the shift in focus.
Organizational Culture
Organizational culture is another aspect affected by the change. Being one of the fundamentals of every company, this domain creates a basis for the improved performance and achievement of goals (Meyer, 2017). First of all, changes will affect the climate within a company. Working in the public domain means to be engaged in socially useful activities which improves the working atmosphere and promotes better cooperation within teams (Rainey, 2014). Due to the decreased focus on revenues and a reconsidered attitude to the achievement, workers might enjoy lower levels of stress and form new groups with new relations to achieve the current goals and attain a significant improvement of the company’s work. For this reason, this aspect becomes critical when speaking about the company’s transformation entering the public sphere.
Salary Levels
One more critical change to the organization and its structure preconditioned by the discussed reconsideration of the company’s nature is the alteration in the salary and insurance. The fact is that the sphere offers base levels of wages because of the existing governmental regulations (Rainey, 2014). As opposed to the private sector, there is no critical gap between the salaries of different workers; instead, a stable income is guaranteed (Meyer, 2017). At the very first stages, the lowering of salaries can be admitted; however, it can be compensated by appropriate and sufficient insurance strategies that can satisfy workers and promote their better motivation (Rainey, 2014) At the same time, opportunities for personal and professional growth will also affect the given aspect and result in the faster transformation from the private to public company.
Benefits and Challenges
Altogether, the company’s entrance into the public sector is a complex process that demands radical reconsideration of its functioning and structure. The main changes can be observed in the culture, targeted audience, and goals. There is a need to reconsider the existing roles to ensure that employees and teams will be ready to face challenges emerging from the cooperation with communities and their representatives. At the same time, the base level of salaries might become a factor slowing down the company’s growth. However, the growing number of opportunities and prestige can be considered an apparent advantage that should be used while setting new goals and explaining the collective the necessity of the planned change and its beneficial character for the whole organization.
References
Meyer, D. (2017). Principle-based organizational structure. Danbury, CT: NDMA Publishing.
Rainey, H. (2014). Understanding and managing public organizations (5th ed.). New York, NY: Jossey-Bass.