Differences between public admin and private admin

6 June 2016

Public Administration has certain special characteristics, which are derived from the nature of public settings in which it operates. These special features distinguish Public Administration from private or business administration. Public Administration is political, while private administration is non political. Public Administration takes place in a political context and work under political direction and scrutiny.

They put into effect the policies made by the elected members of legislature and political executive. Business Administration, on the contrary is not subject to political direction except in times of emergency. It functions largely under the influence of market economic condition. The primary purpose of government organization is to provide services to the people of promote social good. They are not oriented towards making profit for the government. On the other hand, the major aim of private business organization is to make profit for their owners. Services to the public is only an incidental benefit of business activity. A businessman would not continue unprofitable business activity, even it is essential for public welfare.

Differences between public admin and private admin Essay Example

The ends of Public administration is communal, while those of private business is personal. The main beneficiary of public administration activities is the entire community, whereas that of business is the owner of business himself. Further, ‘Profit’ serves as a simple criterion to judge the efficient or inefficient performance of a business firm. But the abstract value of ‘social good’ promoted by public organization can not be measured in terms of monetary gain or loss. There is no direct comparison between governmental agency’s cost and the value of its services to the public. Public Administration operates within a legal framework. The activities of Public Administration are fixed by a set of constitutional practices, law, rules and regulations. Government officials must always act within their legal power.

They cannot act outside the law. If they do so, their action can be challenged in the courts of law on the grounds. This is the reason why everything done by public officials must be supportable by reasonably clear statutory authority. The numerous legal constrains on the action of public officials account the limited discretion enjoyed by them in discharging duties. However, such legal constrains are essential to prevent the officials from abusing their powers. By contrast, the behavior of business organization and the activities of business administration are subject to less legal constrains. Business executives in the private sector can usually do anything which is not forbidden by law. This gives them freedom to select and carry on only profitable activities. The government official is required by law to maintain a high degree of consistency in his dealing with the public. He has to observe the principle of equality of treatment in serving the people.

He is under legal obligation not to show any discrimination against any person. In other words, the public officials is denied discretion in the interest of fairness and equality. On the other hand, the business administer is not legally obliged to treat the small and big customer alike. Public Accountability is the hall-mark of Public Administration in a democracy. The Public administrator carries on his work in a “glass bowl”. His actions are open to public review and scrutiny at all times. His activities must be guided by public needs and public opinion. In a democracy Public Administration is held accountable for its activities through legislative oversight and judicial review.

This shows that in the sphere of Public Administration the initiative for securing accountability lies with those to whom it is due. Public accountability is not a value effecting business administration. Business administration is not accountable for the public for what they do and what they fail to do. Public Administration is large scale administration. It is larger then any big business concern in terms of size, complexity and diversity of activities.

The activities and policies of government affect entire socioeconomic structure of society. Public administration contrast with the private administration in size and diversity of activity. Certain public services such as national security, law and order, health care, transport and communications are vital to the existence of community itself. These services cannot be neglected by any government. On the contrary, the service provided by the business organization such as supply of costly cloths and shoes and other luxury items are not essentials for existence of society.

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