Difference Between Public Administration and Private Administration (With Table)

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 which involves everything from planning, organising, directing to controlling.

It is goal-oriented, pervasive and dynamic in nature which also accounts for responsibility. Any organisation cannot do well without a good administration. Administration is one of the stepping stones for any organisation.

Administration can be broadly classified into two types – Public administration and private administration.

Public Administration vs Private Administration

The difference between public administration and private administration is that while public administration is a political activity that is run by the government with a service motive, private administration is a business activity that is run by a group of individuals not related to government in any way whatsoever with the sole motive of profit.

Comparison Table Between Public Administration and Private Administration

Parameters of ComparisonPublic AdministrationPrivate Administration
SetupPublic Administration is set up by the governmentPrivate Administration is not set up by the government instead, they are set up by a group of individuals. 
ApproachPublic Administration follows a bureaucratic approach.Private Administration follows an Egalitarian approach.
Decision Making Public Administration follows a Pluralistic Approach while decision makingPrivate administration follows a monopolistic approach while decision making.
Motive/VisionPublic administration has a service and welfare motive.Private administration is profit-oriented hence, its motive is to maximise profits.
AccountabilityPublic Administration is accountable to the public within their jurisdictionPrivate Administration is accountable to its employees.
Source of RevenuePublic Administration earns revenue through taxes, fines, fees, etc.Private Administration earns revenue through profits.
Remuneration of AdministratorsAdministrators of a public administration are paid salariesAdministrators of a Private administration earn their remuneration through profits
Type of ActivityIt is a political activity.It is a business activity.

What is Public Administration?

Public administration is that branch of administration which has a service motive towards the general public.It is a political activity. It is the implementation of government policies in an efficient manner. It is that branch of administration where the leaders or the administrators look to serve communities and not become blind-sighted to go after profits.

Public administration is set up by the government and follows a bureaucratic approach. Revenue is generated by taxes, fees, fines, etc. Administrators are accountable to the public and receive salaries as their remuneration.

Public administration operates within the legal framework set up in a country. It includes cooperation between the executive, legislature and judiciary. Proper functioning of these three pillars of democracy can only lead to an efficient administration.

Public administrators have a deep commitment to develop and improve their community and also serve the people in the best way possible to make their lifestyle better.

A good public administration nurtures a good environment for private administration to grow. Public administration not only focuses on the economic aspect, it also focuses on the social aspect wherein it tries to increase the happiness index and living lifestyle of people. This is because public administration is directly accountable to the public.

What is Private Administration?

A Private administration is that branch of administration which deals in the administration of private organisations/business with the sole motive of profit. The administration can be carried out by an individual, a group or a team of individuals. It is mainly a business activity.

This activity is non-political in nature and not set up by the government. Private administration administrators follow an egalitarian approach and are accountable to their employees. Public administration is also called as citizen administration as it is run by individuals.

Private administration operates within the bylaws, rules and regulations set up by the organisation. Revenue is generated by profit and remuneration of administrators is done out of profits.

Administrators working in a private administration have deep commitment towards increasing the profit of their organisation and set up strategies to achieve the same.

Private administrations are accountable to their employees and hence try to do everything to keep them happy and motivated.

Main Differences Between Public Administration and Private Administration.

  1. Public administration is set up by the government. While Private administration is not set up by the government instead it is set up by a group of private individuals.
  2. Public administration follows a bureaucratic approach while private administration follows an egalitarian approach.
  3. Public administration follows a pluralistic approach of decision making while private administration follows a monopolistic approach to decision making.
  4. Public administration has a service and welfare motive. Private administration is profit-oriented i.e the sole motive here is profit maximization.
  5. Public administration is accountable to the general public while private administration is accountable to its employees.
  6. Public Administration earns revenue through taxes, fines, fees, etc. while private administration earns revenue through profit.
  7. Administrators working in a public administration are paid salaries while administrators working in a private administration earn their remuneration through profits.
  8. Public administration is political activity while private administration is a business activity.

Conclusion

Public administration and private administration are both integral part of any nation. Administrators in both these types of administrations use basic functions of management such as planning, organising, directing and controlling.

Its not fair to say one of these is better than the other. Both these type of administrations complement each other and are interdependent on each other. They play a great role in development of the country.

Public administration is a political activity, is set up by the government, is accountable to the public, earns its revenue through collection of taxes and fines, pays salaries to the administrators, follows a bureaucratic approach and has a pluralistic approach towards decision making.

While on the other hand, private administration is a business activity, is set up by a private individuals, earns revenues through profits, pays its administrators out of profits, follows an egalitarian approach and has a monopolistic approach towards decision making.

Public administration helps in creating a peaceful environment to help give private administration a positive externality which would help them in better functioning. Private administration reverts the favor by providing employment and economic strength which leads to more revenue for public administration.

References

https://onlinelibrary.wiley.com/doi/abs/10.1111/1467-6486.00284

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