PUBLIC AND PRIVATE ADMINISTRATION

Private administration is a concept newly emerged one. Private Administration challenged the development of Public Administration. After 1970s the term private administration gained immense importance. There are many differences between these administrations.

§ The most apparent difference between the two sectors is their organizing principles or goal. While private administration has a definite mission, which is the pursuit of profit or stability or growth of revenues, public administration, on the other hand, has ambiguous purposes. Furthermore, the dilemma in ambiguity of purposes is exacerbated by too many unnecessary and inoperable agencies, with purposes that overlap and bloated bureaucracies.

§ Another factor that makes the public sector different from the private is decision making. In public administration, the decision must be and should be pluralistic. The founding fathers intentionally created a democratic republic where all key decisions are made in politicized environment. This allows for maximum participation: open debate, multiple veto points - a decision making hierarchy where consensus must be achieved at each level, ideally, an informed decision. While private administration's decision-making is much simpler- it's monopolistic or close to monopolistic. This type of decision-making would avoid any conflicts in interest; hence, the goal is clearly defined.

§ Public Administration is not characterized solely by profit motive; In fact in Private administration mainly functioned on the basis of profit motive.

§ Public Administration is strictly in accordance with certain legal safeguards in a manner to sustain the confidence and trust of the general public. In Private Administration no legality, it only considered about the owner.

§ Public Administration is not concerned about the time factor but private administration strictly follow time factor.

§ Private Administration focussed to the efficiency, transparency, accountability and credibility but in public administration these functions are only in nominal level.