COMPARATIVE
ANALYSIS OF PUBLIC
ADMINISTRATION
PREPARED BY:
• In general, the concept of administration, whether
public or private, is universal. If we understand
administration to mean cooperation in the conduct of
business, then the presence of administration is
essential, whether in the private sector or in the public
sector. Although the importance of administration is
recognized in both public and private sectors, the form
and style of public and private administration are not
the same. There are a lot of differences between public
and private administration.
Differences Between Public and Private Administration
Points of Comparisons Public Administration Private Administration
Definitions Public administration refers Private Administration refers
to the activity of to the activity of privately
governmental organization owned organizations or
or institution institution
Goals and Objectives Public welfare Maximisation of profit
Legal Framework Governed by a statutory law Governed by the directors of
the organizations
Public Accountability Accountable to the people Only accountable to the
for its actions owner of the organization
Freedom of Action Limited freedom of action Its freedom of action is
much wider
Political Character Run by political direction Completely separated from
and regulation politics
Approach Bureaucratic approach Egalitarian approach
Revenue or Income Taxes, duties, fees, etc. Seles of products and
services
Scope Much wider in scope limited in scope
10 Major Differences between Public
and Private Administration
• Differences in the definition.
-When the word administration is used for government activities and organizations, it
is called public administration. (All government offices)
-On the other hand, private administration refers to the activities of a private
organization. (All privately owned company or organizations)
• Differences in goals and objectives.
The purpose of public administration is to perform its functions keeping in view the
interest or welfare of the people. The success of government administration depends on
the protection of the public interest or the acceptance of the basic demands of the people.
The prime goal of the public administration is to implement public policy introduced by the
government.
The private administration as a whole is not engaged in public interest. Here the
administration is employed according to the needs and interests of the management of a
private or non-government organization. The main goal of the private administration is to
fulfill the personal aspirations of the owner of that particular organization. So it can be said
that private administration is a profit-oriented administration.
• Differences in the legal framework.
-Another fundamental difference between public administration and private
administration is that public administration is governed by a statutory law, which is also
created by a particular political authority. Therefore, the activities of public administration
are limited to the limits of this particular law.
Although the administration of a private organization is governed by law, there is no
obligation to do so within the limits of the law. In the case of private administration, the
director may change the law if necessary.
• Differences in public accountability.
-Public accountability is the backbone of public administration. The government is
accountable to the people for errors in public administration. The failure or success of the
government depends on the failure or success of the public administration. Public
administration is directly accountable to the government and indirectly accountable to
the citizens.
On the other hand, private administration is not accountable to the people. Their prime
goal is to generate maximum profits.
• Differences in discretion and freedom of action.
-The discretion and freedom of action of public administration is limited compared
to the private administration. The executive branch of the government directly controls
public administration by enacting several laws in the legislative branch of the
government.
On the other hand, private administration is not controlled by the government. Its
freedom of action is wider than public administration. Its rule regulations are frequently
changing in terms of their requirements.
• Differences in terms of the political character.
-The most important thing which differentiates public administration from private
administration is its political character. Public administration is run by political direction
and regulation. The main task of public administration is to implement public policies.
On the other side private administration completely separated from politics. There is
no political influence in the operation of private administration. Its functions are
directed by market forces.
• Differences in approach.
-The bureaucratic approach is used for running public administration, but private
administration has an egalitarian approach.
• Differences in revenue or income.
-The main sources of revenue of public administration are mainly taxes, duties, fees, etc.
whereas private administration generates their income from selling their products and services.
• Differences in scope.
-There is a big difference between public and private administration in terms of their
scope. Public administration is much wider than private administration. The citizen can get
almost every service from pubic administration like food, health facilities, education,
communication, housing, transportation, and so on.
But on the other hand, private administration deals with those sectors from which they earn
profits.
• Differences in the question of control by economic interests.
-Public administration is usually not controlled by any economic interest. As the goal of
public welfare becomes the main one, in the case of public administration, financial gain or
profit-making does not get special importance. The question of making a profit does not arise
in the case of police, defense, or government service activities.
On the other hand, the competence and efficiency of the administration of a private
organization are tested on how the administration can raise the financial goals of the
organization.
Similarities between Public and
Private administration
While there are some fundamental differences between public and
private administrations, there is no denying that there are similarities
between the public and private administration.
All administrative systems, it’s either public or private administration
they have to perform similar kinds of functions. The similarities between
public and private administration are-
Follow Same Principles
Training
Service-Oriented
As a Group Efforts
Facing Problems
Follow Same Principles
-Both the administrations are governed by a number of
general principles. Luther Gulick calls this general principle
as POSDCORB (Planning, Organizing, Staffing, Directing,
Coordination, Reporting, and Budgeting).
Training
-Another similarity between the two administrations is that
they provide appropriate training to employees in need of
special administrative experience and skills.
Service-Oriented
-The activities of some private administrations like public
administration can touch public life in terms of service.
Privately owned transport systems, power supply, etc. are
as important as public administration nowadays.
As a Group Efforts
-In both the public and private spheres, the
administration is a kind of group effort, where different
levels of employees execute a particular objective
through mutual interaction or means.
Facing Problems
-Both public and private administrations may face a
number of specific problems such as decision-making
problems, problems in managing director-management
relationships, problems in the production or supply of
consumer goods. However, the form and character of the
problem may vary depending on the field and the
environment.
Conclusion
From the light of the discussion on differences between public and
private administration, it can be concluded that there are a lot of
fundamental differences between public and private
administration, but it is true that there are some similarities also.
Many emphasize the differences between public and private
administrations, while others emphasize the similarities between
the two. The Public Private Partnership (PPP) is very important
today. Many things in public administration today can be achieved
with the help of private administration. That’s why Recently, the
line between private and public concepts has not been clear.
Judging by the necessity of the administrative system as a whole,
it can be said that it is not possible to have any real purpose in
verifying the differences between the two or the errors of both.
What is needed is a joint effort of both private and public
administration.
The goals and objectives of the government administration cannot
be achieved without the help of non-governmental organizations
or private administration. It is possible to build a healthy and
strong administrative system through the skills, cooperation and
coordination of both and this environment is beneficial for both
government and non-government organizations.
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