Service Management, Student Workbook: An Integrated Approach to Supply Chain Management and Operations

14. Management of Public and Private Nonprofit Service Organizations

14.6. Summary of the Chapter

The economy of the United States consists of three sectors: private, public, and nonprofit. This chapter reviewed the nature of public and private nonprofit organizations and challenges their managers face. Private sector is clearly the most important sector because it employs the majority of the working population and produces most of the goods and services of the economy. However, the other two sectors are also important, not only for economic reasons but also for sociological and political reasons. For example, without public organizations there may not be any national defense, safe neighborhoods, safe air travel, paved streets, public education, ...