The administration is a process undertaken by an administrator/manager to achieve a set of targets/goals which are set. It is a continuous process that involves everything from planning, organizing, and directing to controlling.
It is goal-oriented, pervasive, and dynamic, accounting for responsibility. Any organization cannot do well without good administration.
Administration can be broadly classified into two types: Public and private administration.
Key Takeaways
- Public administration involves managing and implementing government policies and programs; private administration focuses on managing private sector organizations and businesses.
- Public administrators are accountable to the public and must adhere to regulations and laws, while private administrators are accountable to shareholders or owners and focus on profit maximization.
- Public administration prioritizes public welfare, social equity, and transparency, while private administration emphasizes efficiency, competitiveness, and financial performance.
Public Administration vs. Private Administration
Public administration refers to managing government organizations like federal, state, or local agencies. Private administration refers to managing private organizations, such as businesses or non-profit organizations. The primary goal of private administration is to generate profits.
Comparison Table
| Parameters of Comparison | Public Administration | Private Administration |
|---|---|---|
| Setup | Public Administration is set up by the government | The government does not set up Private Administration. Instead, they are set up by a group of individuals. |
| Approach | Public Administration follows a bureaucratic approach. | Private Administration follows an Egalitarian approach. |
| Decision Making | Public Administration follows a Pluralistic Approach during decision-making. | Private administration follows a monopolistic approach while decision-making. |
| Motive/Vision | Public administration has a service and welfare motive. | Private administration is profit-oriented. Hence, its motive is to maximize profits. |
| Accountability | Public Administration is accountable to the public within their jurisdiction. | Private Administration is accountable to its employees. |
| Source of Revenue | Public Administration earns revenue through taxes, fines, fees, etc. | Private Administration earns revenue through profits. |
| Remuneration of Administrators | Administrators of a public administration are paid salaries | Administrators of a Private administration earn their remuneration through profits |
| Type of Activity | It is a political activity. | It is a business activity. |
What is Public Administration?
Public administration is that branch with a service motive towards the general public. It is a political activity. It is the implementation of government policies in an efficient manner.
The government sets up public administration and follows a bureaucratic approach. Taxes, fees, fines, etc., generate revenue.
Public administration operates within the legal framework set up in a country. It includes cooperation between the executive, legislature, and judiciary.
Public administrators are deeply committed to developing and improving their community and serving the people in the best way possible to improve their lifestyles.
Public administration not only focuses on the economic aspect, but it also focuses on the social aspect, wherein it tries to increase people’s happiness index and living lifestyle.
What is Private Administration?
A Private administration is a branch of administration that deals in the administration of private organizations/businesses with the sole motive of profit.
This activity is non-political and not set up by the government. Private administration administrators follow an egalitarian approach and are accountable to their employees.
Administrators working in a private administration have a deep commitment to increasing the profit of their organization and set up strategies to achieve the same.
Main Differences Between Public Administration and Private Administration.
- Administrators working in a public administration are paid salaries, while administrators working in a private administration earn their remuneration through profits.
- Public administration is political activity, while private administration is a business activity.
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