Difference between public administration and private administration

The administration is understood as the set of functions that are executed to govern, organize and direct an economy, an organization, a state or a nation. Countries and nations base their administration on diverse criteria to direct the conglomerate of functions, material and human resources that make life in society. From there derive the public administration and the private administration as guarantors of the planning, control and organization of the resources and the economies of every nation. public and private administration

In this article we will point out the definitions of public administration and private administration, as well as the characteristics that mark the differences between them.

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What is public administration?

Difference between public and private administrationThe public administration is a branch of the administration responsible for managing and guaranteeing the functioning of social services, the state’s own resources and the constitutional guarantees of the people. Public administration comprises the set of public organizations responsible for carrying out the administrative function and management of the State and other public entities, has legal personality and can be regional, local or national. public and private administration

The public administration is not exclusive, since its radius of action covers all the members of a society without distinction of creed, race, origin, area of ​​residence or social condition. The state is the governing body of public administration, through different organizations, institutes and/or ministries that are in charge of it in the different areas of care such as health, education, roads, transportation, basic services, among others.

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What are the objectives of Public ManagementWhat are the objectives of Public Management? public and private administration

In this changing scenario, it becomes essential for Public Management:

  • improve the efficiency, quality and transparency of public spending in the short and long term;
  • expand governance capacity in the implementation of public policies;
  • create instruments for social participation in public activity;
  • make investments to accelerate national competitiveness;
  • improve the quality of public services available to citizens;
  • increase productivity without disrespecting the laws that govern the performance of public companies;
  • promote innovation, management and knowledge sharing between public spheres, society and the market;
  • improve budget management;
  • adopt planning, monitoring and evaluation systems;
  • make use of more common practices in the private sector, such as the implementation of a people management system based on competence management and meritocracy;
  • continually invest in the education and training of public managers, from whom new skills will be required.

In other words, the aim is to professionalize the way organizations are managed. public and private administration

For this, the preparation and training of servers are increasingly required. It is necessary to have trained and ready employees to generate positive results in public organizations and in their region of operation.

Only with skilled, productive, ethical, committed professionals with full knowledge of the functioning of organizations will it be possible to change Public Management and collaborate for the development of the country.

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What would be the field of study of Public Management?

His field of study covers traditional areas such as Human Resources, Public Finance, Materials Management, Accounting, Budget, Service Delivery, Customer Service, Information Technology, Public Policy, among others.

However, the focus of Public Management is the manager himself.

After all, to lead a public organization some managerial skills are needed. public and private administration

But what would be the profile of the most appropriate professional for this new concept of Public Management?

The public manager needs to develop his human, professional and public skills. Check out some of them:

  • Human skills : communication, proactiveness, leadership, negotiation, entrepreneurship, conflict management and resolution and crisis management;
  • Professional skills : strategic vision, monitoring of contracts, knowledge in information technology, encouraging creativity and innovation, ability to create indicators and measure performance;
  • Public skills : keep motivated and aware of their social responsibility, be ethical, know the concepts of citizenship and democracy, understand the socio-political and cultural context of public administration and commit to the excellence of services provided to society.

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What is private administrationWhat is private administration?

Private administration is the branch of the administration responsible for managing and guaranteeing the operation of private companies and organizations that make life in different countries, states or nations. The main characteristic of private administration is that it is in charge of private services for profit, therefore, it is developed based on financing and private capital.

Institutions and organizations, as well as private companies, belong to civil society and their services and procedures are of higher quality, since they are due to the increase in their productivity to position themselves in the private market. The private administration is oriented towards the internal management of companies and non-governmental organizations, but they are largely governed by the general rules and guidelines imposed by the state in terms of labor benefits, salaries and wages, among others. public and private administration

Taking into consideration what was previously stated in the definitions, the following differences between public administration and private administration can be observed.

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administrationDifference between public and private administration Comparison chart

Public administration
private administration
What is it? This is the set of public organizations that carry out the functions of management and administration of a State and/or any regional, local or national public entity. The public administration has the distinctive characteristic of being able to put citizens and public servants in direct contact. This, by the way, is regulated by the executive power, although in some cases the legislative power is also involved. On the contrary, private administration deals with the management of companies and organizations belonging to the private sector. In these, neither the government nor the population not directly involved with said company have a place in their decision-making. It is worth mentioning that the services carried out by private companies most of the time involve profit.
What types of organizations do you manage? Public enterprises Private sector companies
Target The public administration makes sure that the citizens benefit well from the services. The private administration is more concerned with economic benefits.
Decision making In public administration, decision-making is plural. In private administration, decision making is monopolistic.
Response Responds to state policies Responds to company interests
Purpose It is in the public interest profit purposes
Manages Manage state resources Manage private capital
Control Control is exercised by the organs of the State Control is exercised by the owners or investors of the company
Governed By It is governed by public law laws It is governed by civil and commercial law
Varies Varies according to state policies Varies according to the market
Staff The personnel that works in the public administration is, generally, associated with the political changes that occur in the nation. The staff that works in the private administration is not associated with the political changes that occur in the country or nation
Income The public administration uses the income collected by the government through taxes. Private management relies on profit as the main source of income.
Examples Public hospitals, universities and other state or government educational institutions, police institutions, the armed forces, post offices, among others. Private hospitals, private universities (schools), churches (which are private nonprofit organizations), and any other for-profit business.

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Difference between Public and Private Administration public and private administration

The difference between Public and Private Administration is so clear: public and private administration

Public administration is political in nature, while private administration is non-political and instead more personal.

The focus of the Public Administration is the implementation of government policy , while the private Administration is concerned with the implementation of company policies that have profits as their main focus. This is an important difference between public and private administration.

Government policies and programs are directed at the public. Therefore, the Public Administration seeks to promote the general well-being and good of the public, and attend to its needs.

Another difference between public and private administration is that the activities and operations that depend on the Public Administration are governed by a legal framework that aims to prevent abuse of power, unfair and unfair treatment of the public. While in private management, the focus is on making profits , expanding the growth and development of the company, and ensuring the prosperity of the business.

Officials in charge of the Public Administration are accountable to the general public for their actions. Private administration, on the other hand, does not have the concept of public responsibility and its scope is more limited. public and private administration

Public administration versus private administration in points

  • The Public Administration is the first level team that governs and oversees the implementation of government plans in the public sector. Contrary to this, private administration is the unit of the private sector that manages business activities like organizing, planning, coordinating and controlling.
  • The public administration makes sure that the citizens benefit well from the services. On the other hand, the private administration is more concerned with economic benefits.
  • In public administration, decision-making is pluralistic, while in private administration, decision-making is monopolistic.
  • The public administration uses the income collected by the government through taxes. In contrast, private management relies on profits as a major source of income.

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Example of public and private administrationExample of public and private administration

Finally, let’s see some examples of Public and Private Administrations. public and private administration

  • The City Council of any municipality is a clear example of Public Administration. It receives public resources, most of its employees are civil servants and serve the community.
  • The management of a multinational is an example of private administration. Although it has a series of bureaucratic processes, these are more flexible than those of the Public Administration. Its income comes from its sales and the shareholders own it.
  • An animal protection association would be an example of private administration. In this case, it is not for profit, but it is financed with public and associate subsidies. Its purpose is social and its owners are those who founded it.

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FAQs public and private administration

What is the difference between Public and Private Management?

The main difference between Public Management and Private Administration lies in the very purpose of each. In opposition to Public Management, whose focus is the common good; private administration is geared towards profit or consumption.

How is planning in the public area different from the private area?

The first is the form of organization. On the other hand, in public organizations the decision-making process does not usually take into account the same rationality as the private company, as it does not deal with the same types of threats (bankruptcy, competition), nor does it seek the same opportunities (profit, customers). public and private administration

How is people management in the public sector? public and private administration

People management in the public sector follows a slightly different line from that of business, as the former is still moving towards a macro development of its actions. The implementation of a system governed by competences aims to contribute to achieving more satisfactory objectives in public administration.

What is the difference between Public Management and Public Administration?

The main difference between the Public Administration course and the Public Management course is training. While the first is a bachelor’s degree, the second is at a technologist level. Thus, the term administrator can only be used by bachelors graduated in Public Administration. public and private administration

What is the importance of strategic planning for a private company and for a public company? public and private administration

Strategic Planning, a tool imported from the private sector, contributes to the adjustment of the appropriate amount of time and resources to be used in organizational activities (KLUYVER, 2010) and assists in meeting the management model.

What are the challenges of managing people in the public sector?

Among such challenges, imposed on the public management of human resources, are the adequacy of the staff to the size of the state machine, the conciliation between personnel expenses and the budget stipulated for each sphere of government, the reduction of bureaucracy in work routines, managing the growth of… public and private administration

What is the definition of public management? public and private administration

Public Management is a term widely used to define the set of activities that involve the application of theoretical knowledge of Administration and Management Sciences in the public sector or in the process of interaction with this sector.

What is the role of a public manager?

Always thinking about the collective well-being, the public manager is responsible for managing public companies, non-governmental organizations and projects of private institutions developed in partnership with the government.

What is the difference between the public sector and the private sector?

The main difference between the public sector and the private sector is why they exist. The public sector is there to serve the citizens of a country and the profit motive is usually not the criterion for their existence. Private sector companies, on the other hand, base their existence on profits. The public sector is run by money public and private administration

Why do companies belong to the private sector?

Companies or entities that belong to the private sector are those that are managed and managed by private individuals. The reason such organizations exist is their interest in making profits. This can also be done at the expense of citizens and is therefore exploitation.

What is the difference between the public and private sector?

The study concludes that the biggest divergence between this public and private sector lies in the way in which the agents responsible for governance react to these pressures. In the private sector, the focus is on the reversal of the financial result, in the search for remuneration on invested capital, for the survival of the company. public and private administration

How is the public sector made?

This is usually done by corporate law. The public sector is a state run or a government administered body that provides services to the government and to the citizens of the state as well. In general, the public sector needs to step on the image when the monopoly is taken over by the private sector and citizens are being exploited. public and private administration

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