Difference Between Public Administration and Private Administration 

Administration refers to the broad range of activities and the execution of the functions related to the achievement of the objectives of an organization in an effective and efficient manner. Administration is an activity as well as a field of study.

Administration is often distinguished or divided into two major branches namely public administration and private administration. Public administration and private administration are juxtaposed to each other in terms of processes, nature and objectives.

 

What is Public administration?

Public administration is the specialized branch of administration and deals with public policies and programs, government functions, and providing of various services to the general public.

Public Administration is both a discipline and an activity. Public Administration as a discipline or field of study covers the multi-disciplinary subjects or areas of study like planning, budgeting, organizing, staffing, controlling, directing, and various other theoretical aspects related to the execution of the public policies and programs. Public administration covers various branches of the government namely executive, legislative and judicial, and their interrelationships. It has sub-branches of study like financial public administration, development public administration etc.

As an activity, Public Administration performs various functions like administering public services, social security services, welfare services; management of government organizations and undertakings; regulation and control of private activities and enterprises; and so on.

Public administration is typically carried out by the non-political organized public bureaucracy that functions within a well-defined legal and regulatory framework. It is based on the principles of uniformity, service motive, and external control and it is usually carried out on a continuous basis.

 

What is Private administration?

Private administration refers to the management of private organizations usually business entities. It is carried out by the private individuals or a group with an aim to earn profits usually.

Private administration is a business or commercial activity of non-political nature and it involves various types of activities and management processes like planning, production, marketing, financing, controlling, coordinating and etc.

Private administration is related with the management theories and processes. It focuses on the achievement of the objectives of the management of the organization, efficiencies, private benefits and maximization of shareholders’ wealth.

 

Similarities between Public administration and Private administration:

Many of the fundamental theories and processes of both public administration and private administration are similar. Both need a thorough knowledge of administrative theories and principles. Both are concerned with the best utilization of the limited resources at their disposal.

Both public administration and private administration strive to achieve effectiveness and efficiency. Both are focused on attaining the objectives of their organizations.

 

Differences between Public administration and Private administration:

Definition of Public vs. Private administration

Public administration deals with public policies, state affairs, government functions, and providing of various services to the general public; but private administration deals with the management and operations of private organizations usually business entities.

Scope in Public and Private administration

Public administration operates in the governmental set-up; while private administration operates in the non-governmental set-up.

Nature of Public and Private administration

Public administration is closely related with the political process and often conducts itself as a part of the larger political process; while private administration concentrates on the commercial and business activities.

Coverage

Public administration usually covers all the territory within the jurisdiction of the government or a nation; while private administration may cover the multi-country operations or activities of an organization spread over a number of national jurisdictions, or only a very small office.

Timing

Public administration is usually carried out on continuous basis; while private administration is basically carried out on periodic basis.

Approach in Public and Private administration

Public administration has a bureaucratic approach; whereas private administration usually has an egalitarian approach.

Type of Activities

Public administration involves numerous types of public services and governmental activities; while private administration may involve only with a limited set of activities as private organizations function on the basis of division of labor or core competency.

Orientation

The public administration is welfare oriented and works with a service motive; whereas the private administration is typically profit oriented.

Objective

Objective of public administration is to provide the best service to the public at large; while objective of private administration is shareholders’ wealth maximization.

Scope Determination

The scope of public administration is determined by the government laws or regulations; while the scope of private administration is determined by the management of the organization.

Legal Status

Public administration is subjected to many laws and regulations along with a focus on transparency and equal treatment; but private administration is subjected to less number of laws and has permissible levels of discretion and differential treatment to the customers or clients.

Authority

Public administration has considerable authority and power over the public and territories; but private administration has little authority or very limited authority related to the specific activities and employees of the organization only.

Decision Making

Decision making in the public administration is typically pluralistic, transparent and subject to public scrutiny; but decision making in the public private administration is monopolistic, discretionary and often secretive.

Accountability of Public and Private administration

Public administration is accountable to the general public at large or the representatives of the people; while private administration is accountable to the owners of the organization.

Appointment

Public administrators or officials are usually appointed through a competitive process; while the private administrators may be appointed on the basis of personal choice or liking.

Qualification

Some specific qualification is compulsory for public administrator or official; but any specific qualification is not compulsory for a private administrator.

Status of Public and Private administration

Public administrators are considered public servants; while private administrators are considered private employees.

Remuneration Type

Public administrator gets a salary; while a private administrator may get a profit share along with a salary.

Revenue or Income

Revenue or income for the public administration is typically generated through taxes, duties, fees, penalties and other dues paid by the citizens; while revenue or income for the private administration is typically generated through operating profits.

 

Public administration and Private administration:Comparison Chart

 

Summary of Public vs. Private administration:

Public administration and private administration both are important for a country and society at large. Public administration and private administration both have similar processes and techniques like planning, organizing, coordinating, controlling, accounting, hierarchical chain of command or reporting structures, personnel and financial issues, etc.

There are many differences between public administration and private administration. Public administration works in a governmental setting and focuses on service motive, transparency, public welfare, etc. Private administration is a discretionary business process; and focuses on effectiveness and efficiency to earn profits.

However, they also complement each other in some respects. Both public administration and private administration play a crucial role in contributing towards the growth and development of the country in various ways. Public administration maintains proper law and order providing a peaceful environment to the private administration for better functioning. On the other hand, private administration may bring in jobs and prosperity leading to more revenues and taxes for the public administration.

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