Public And Business Administration

PUBLIC AND BUSINESS ADMINISTRATION

Public administration can be defined as the organization and management of the government, government offices, and public sector companies.

Business administration is the performance of management of the operation of a business. It deals with organizing the human resources and the other resources available to the organization in an efficient manner so that goals and objectives can be achieved.

Similarities Between Public and Business Administration.

  1. They are similar in areas of Planning, Organising, Staffing, Coordinating, Reporting, and Budgeting.
  2. Both are regulated and affected by political laws and regulations.
  3. They are used to improve effectiveness and productivity of an organization.
  4. They are answerable to higher authorities.
  5. They are responsible for their action.
  6. They work within a set of rules determined by the higher authority.
  7. Both organizations select its senior personnel by a scientific method.
  8. They both provide welfare services for its personnel.

Difference Between Public and Business Administration.

  1. The size of a public organization is usually larger than a private organization.
  2. The condition of service is usually uniform in public service while variations exist in private organizations.
  3. Public organizations are usually owned by the government while individuals usually own and control private organizations.
  4. Creativity is the hallmark of business administration while strict adherence to rule is in vogue in public administration.
  5. Leadership in public administration can be determined by politicians while owners of private establishments determine who heads it.
  6. Bureaucracy is more pronounced in public organization than a private organization.
  7. Efficiency is more pronounced in private establishments than public organizations.
  8. The private administration is motivated by profit while the public administration is motivated by the desire to improve the life of the citizens.
See Also:  Objectives Of Management

Comparison Between Public Administration and Management. (Kindly rotate your phone to see the table below)

MANAGEMENT PUBLIC ADMINISTRATION
GOAL/MOTIVATION DRIVE The goals are sole to profit-making i.e. profit maximization The goals are multi-dimensional i.e., not just profit-making alone
STRUCTURE OF DECISION-MAKING Decisions are made within small unit i.e. timely Decisions here follow a laid down procedure i.e. long process
JOB SECURITY Job security is low. An employee can be sacked anytime Job security is high. Sack of employee follow due process
QUANTIFICATION OF OUTPUT Performance proves the efficiency and can be easily quantified Here, it is not possible to quantify output and profit
TYPES OF SERVICE Services rendered by management are services that yield results i.e. meeting target. Services rendered by public admin are social services for smooth economy i.e. stabilization of the society
METHOD OF OPERATION Method is business friendly. i.e. research is made in relation to their operation No business like method is involved i.e. the situation determines the method to adopt.
POLICIES The policies are directed towards the interest of the owner and the satisfying of their customers The policies are directed towards the collective interest of all

 

ENABLING LAWS It is guided by business law    It is guided by public law

 

DEGREE OF PUBLICITY The degree of publicity is low. This is as a result of insufficient fund    A lot of publicity is involved i.e. the degree of publicity is high
MEANS OF FINANCE It is funded through private savings, friends, families, bank loans etc… It is funded through private savings, friends, families, bank loans etc…
ISSUES OF MORAL It is not a thing of priority and they are less concerned It is a thing of priority and the interest of the public at large is of paramount concern.