The most fundamental distinction between public and private organizations is that the political community owns public agencies while ownership of private organizations belongs to entrepreneurs or shareholders. However, there are many other differences between public and private organizations. Funding for public entities comes primarily from taxation, in contrast to private entities which receive funds predominantly from consumers in the form of fees. In the public sector, organizations are largely controlled by political forces, which also leads to the imposition of constraints by the political system. Constraints result in frequent policy changes within public organizations. Owners and shareholders of private organizations have a direct incentive to monitor managers' behavior to promote better performance and financial gain. Managers would also benefit if they owned shares in the company. In contrast, public sector managers typically do not benefit financially from a higher degree of organizational efficiency. Public organizations are more easily influenced by external events because they function as an open system and must respond to the needs of the public. Furthermore, public bodies are subject to few competitive pressures. Public agencies generally have few rivals and hold a dominant position within the market. Distinctive goals, such as equity and accountability, convey to public agencies the desire to control behavior and achieve a collective purpose for the organization. The use of such lenses is said to be absent in private organizations. To profit successfully, private organizations pursue a single objective while public entities are faced with numerous objectives. In......middle paper......private management: What's the difference? Journal of Management Studies, 39(1), 97-123. Cohen, S., Eimicke, W., & Heikkila, T. (2008). The effective public manager: Achieving success in a changing government (4th ed.). San Francisco, CA: Jossey-Bass (Wiley). DMV automatic renewal. (2011). Retrieved March 15, 2012, from the State of Connecticut Department of Motor Vehicles: http://www.ct.gov/dmv/cwp/view.asp?a=3065&q=385170&dmvPNavCtr=|#46938Laureate Education, Inc. (Executive Producer ). (2008). Organizational management and leadership. Baltimore: Author. “Fundamentals of Management,” with Matthew Joseph and David Osborne Ocampo, RB (2000). Public administration reform models: “New Public Management (NPM).” Asian Review of Public Administration, 12(1), 248-255. Retrieved March 15, 2012, from: http://unpan1.un.org/intradoc/groups/public/documents/EROPA/UNPAN001431.pdf