The Changes in Organizational Performance

Running head: THE CHANGES IN ORGANIZATIONAL PERFORMANCES FOR THE
NATIONALISATION
The Changes in Organizational Performances for the Nationalisation
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THE CHANGES IN ORGANIZATIONAL PERFORMANCES FOR THE
NATIONALISATION
1
Introduction
The ownership may influence the performance of the organizations. In order to transform
the private assets into the public assets by changing the ownership under the state or national
government is known as nationalisation. In addition, it shifts the ownership of the assets from the
private sector or lower level of the government to public ownership (Ifs.org.uk 2020). The
government of the United Kingdom (UK) proposed to transform the ownership of the postal
service of the UK to improve the performance of the organization. This paper will examine the
role of nationalization on the performance of the postal service of the UK. In the UK, the postal
services are offered by the Royal Mail and Post Office Ltd.
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The market of the postal services in the UK has been completely opened for the
competition since 2006, which flourished the delivery of business to business (Jones 2004).
However, it failed to thrive the market for ordinary letter delivery. The regulator of the industry
is Ofcom and Consumer Focus represents the consumer interests. Though, the main legislation is
followed according to the Postal Services Act 2011 since 1st October 2011, the application of the
Postal Services Act 2000 was still there in some parts. As per 2011 Act, the government may
privatise the postal services of the UK. There are several merits and demerits of the
nationalisation and it helps to improve the performance of the services (Pratley 2019). The main
reason behind nationalisation of the postal services of UK were meeting the social and economic
targets and improving the quality of services. The nationalisation of the postal services of the UK
would save a large amount of cost of the households.

THE CHANGES IN ORGANIZATIONAL PERFORMANCES FOR THE
NATIONALISATION
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The private ownership of the services required a higher cost for the investment and
paying dividends of shareholders. While under a public ownership, the cost can be saved and
used for providing better services to the people. The public ownership will assist to improve the
weakness of the private sector. The performance of the postal services went through significant
turmoil and dwindling growth created the pressure on the customers. As a result, the customer
need to compensate in order to gain the efficiency of the organization. The organization
performance mainly depends on the meeting social and economic targets under public
ownership. As the postal services was unable to meet the social and economic targets. It created
pressure in the customers to pay more for the services related to postal. Though, there were few
competitors in the market of the postal services of the UK such as UK mail and Whistl, Northern
Mail, Central Mailing Services, The Delivery Group and Citipost Mail (Postoffice.co.uk 2020).
The market is notably dominated by the Royal Mail of the UK due to their hold in Down Stream
Access. It enables them to dominate the postal service market of the UK.
The service provided by these private postal services depends on the investments comes
from the banks. However, complexities in the regulatory landscape and changes in postal market
dynamics of the UK postal services led to the limit in investment from the largest bank like
Lloyd’s banking group. Thus, the postal service of the UK was unable to pass on the benefit of
the service to the general public (Hall and Hobbs 2017). In addition, the public ownership will
ensure the interest of the customers and will not emphasis on revenue generation. Therefore,
nationalisation will help to protect the public interest and results in achieving the social aims of
the government. It will also scale up the quality of the service offered by the Royal Mail in the
UK. Furthermore, nationalisation also safeguards the employment opportunity of the
organization. Thus, the employees are also protected from the job loss and it encourages them to