Administration can be viewed as the act of effectively managing the affairs of a business organisation or state. It implies the optimum use of people, information and other resources of the organisation, in the attainment of the ultimate goal of the company. The administration can be done either by public officials or private individuals. Public administration is a branch of economics that works with service motive. On the other end, private administration works with business intuition.
The public administration differs from the private administration, in three important ways, i.e. the political character, accountability and scope of their activities. Here an article is presented to help you understand the meaning and differences between public and private administration.
Comparison Chart
BASIS FOR COMPARISON | PUBLIC ADMINISTRATION | PRIVATE ADMINISTRATION |
---|---|---|
Meaning | Public administration refers to orderly managing the resources, to achieve the purposes established by the government. | Private administration is the operation, management and organization of the affairs of the business enterprise. |
What is it? | It is a political process. | It is a business activity. |
Operation | In governmental set up | In non-governmental set up |
Approach | Bureaucratic | Egalitarian |
Decision making | Pluralistic | Monopolistic |
Revenue | Taxes, fees, duties, etc. | Profits |
Accountability | Accountable to general public | Accountable to the owners |
Orientation | Welfare oriented | Profit oriented |
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