Public and private organizations in Latin America: a comparison of reward preferences

Abstract

Compares Latin American graduate students in management with work experience in government and business. Explores similarities and differences in work‐related incentives between public and private sector groups. Finds that while administrative reforms in developing countries may assume differences in the importance of job security across the two sectors and neglect the possibility of a national or community service orientation, these assumptions are not supported by this study. Discovers that although the two groups showed no difference in the importance of salary, financial incentives related to performance were significantly more important to private sector respondents as a reason to stay in the sector. Finds differences between the groups on public service motivation, an issue not previously explored in this region. Claims these findings have important implications for Civil Service reform and development of incentive systems for privatization strategies.

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