Difference Between Public Administration and Private Administration

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 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.

Public administration vs Private administration

Comparison Table

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.

Public administration is set up by the government and follows a bureaucratic approach. Revenue is generated by taxes, fees, fines, etc.

Public administration operates within the legal framework set up in a country. It includes cooperation between the executive, legislature and judiciary.

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.

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.

public administration

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.

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.

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 administration

Main Differences Between Public Administration and Private Administration.

  1. Administrators working in a public administration are paid salaries while administrators working in a private administration earn their remuneration through profits.
  2. Public administration is political activity while private administration is a business activity.

References

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

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