Public vs Private Administration: Difference and Comparison

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

  1. Public administration involves managing and implementing government policies and programs; private administration focuses on managing private sector organizations and businesses.
  2. 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.
  3. 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.

Public administration vs Private administration

Comparison Table

Parameters of ComparisonPublic AdministrationPrivate Administration
SetupPublic Administration is set up by the governmentThe government does not set up Private Administration. 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 during decision-making.Private 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 maximize profits.
AccountabilityPublic Administration is accountable to the public within their jurisdiction.Private 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 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.

public administration

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.

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

Last Updated : 13 July, 2023

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24 thoughts on “Public vs Private Administration: Difference and Comparison”

  1. The article succeeds in outlining the integral points of contrast between public and private administration. A commendable piece of content.

    Reply
    • Indeed, Tiffany Anderson. The content is presented in a manner that is accessible to a wide audience, making it an essential read for those interested in this subject.

      Reply
  2. An insightful article that touches upon the nuances of public and private administration in an intelligible manner. A good resource for those delving into this subject.

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    • Absolutely, Ellis Julia. The focus on the differences in approach, decision-making, and motive clarifies the divergences between the two types of administrations.

      Reply
    • I found this to be an enlightening read – not only does it discuss the differences, but it also highlights the responsibilities and areas of accountability in a lucid way.

      Reply
  3. The comparison between public and private administration is clearly articulated, offering an in-depth understanding of the intricacies of each type. A well-structured article.

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    • Spot on, Cooper Jackson. The detailed examination of the sources of revenue and accountability provides valuable insights into the nature of these administrations.

      Reply
    • This article presents the differences in a well-organized manner, which significantly aids in comprehending the distinctions between public and private administration.

      Reply
  4. This is a very comprehensive and informative article. The comparison table that was given highlights the most significant differences between the two types of administration, making it easier to understand. Well done!

    Reply
  5. The article does an exceptional job of elucidating the differences between public and private administration. The comparison table is particularly helpful in summarizing the key contrasts.

    Reply
    • I couldn’t agree more, Peter99. The clear outlining of the motives, vision, and type of activity of both administrations adds depth to this informative piece.

      Reply
    • The contrast between public and private administration is skillfully explained in this article, serving as an enlightening source for those looking to enhance their understanding of this field.

      Reply
  6. An informative piece that effectively highlights the distinct nature of public and private administration, providing a comprehensive understanding of the differences between the two.

    Reply
  7. An insightful and well-researched article covering the fundamental differences between public and private administration. The emphasis on accountability, vision, and type of activity is especially enlightening.

    Reply
    • This article effectively presents the differences between public and private administration, offering a clear and informative discussion of the complexities involved in these fields.

      Reply
    • The focus on the motive, vision, and accountability of both types of administration is particularly illuminating. A commendable piece of writing.

      Reply
  8. There is a strong emphasis on the contrast between the two types of administration. A good read for those interested in this topic.

    Reply
  9. A detailed, well-written comparison between public and private administration. Thank you for this informative post. It helped me understand the key differences.

    Reply
  10. The comprehensive explanation and clear breakdown of each administration’s characteristics are quite illuminating. It provides a well-rounded understanding of the topic.

    Reply
    • The meticulous comparison table simplifies the complexities of these administrative types. A useful resource for those seeking clear insights into this area.

      Reply

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