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Difference between Public and private administration- Henry Fayol, Josiah Stamp, Paul H. Appleby , Herbert A. Simon


Henry Fayol, while writing about administration, remarked, "The meaning which I have given to the world administration, and which has been generally adopted, broadens considerably the field of administrative science. All undertakings require planning, organisation, command, coordination and control and in order to function properly, all must observe the same principle.
Thus in terms of skill and operation there is a very little difference between public and private administration but difference do exists in terms of profit motive, legal frame work and performance by the two type of organization.

 >>>Difference between public and private administration:-

The more important distinguishing features of Public administration may be described under the following subheads: 

Political Direction:- Public administration is political, while private administration is non- political, public administration takes place in a political context.

Absence of profit motive : The absence of profit motive in the public administration is another feature, which distinguishes it from the private administration. The primary purpose of governmental organisation is to provide services to the people and promote social good.

Prestige: Public administrators who serve in the government enjoy high status and prestige in comparison to their counterparts in private enterprises,
especially in developing countries.

Public Gaze : All the actions of public administration are exposed to wide public gaze because the public closely watches its goals, operation and results achieved. This does not happen in private administration.

Service and Cost: Most governments spend more money than the profit such operation may bring. This is because its objective is welfare and social service. Hence we can say deficit budget is the characteristic feature of public administration. Conversely, private administration income often exceeds expenditure without which they cannot survive.

Legal Framework : Public administration operates within a legal framework. The responsibilities of public administrators are fixed by a set of constitutional practices, laws and regulations.

Consistency of Treatment:- A government official is required by law to maintain a high degree of consistency in his dealings with the public. He has to observe the principle of equality of treatment in serving the people. It is a legal obligation to not to discriminate against any person.

Public Accountability:- Public accountability is the hallmark of public
administration in a democracy. Public administration is responsible to the public, though not directly but indirectly through political executive, legislature, judiciary, etc.

Large-scale Administration:- Public administration is large scale administration. It is said that almost anything under the sun is directly or
indirectly under the domain of public administration. It is by all means larger than any big private concern in terms of size, complexity and diversity of activities.

Monopolistic of Essential Services:- In the field of public administration, there is generally a monopoly of the government and it does not generally allow private parties to compete with it. For example, no person or bodies of persons are allowed to establish or perform functions related to public services like national security, foreign relations, law and order, mint and currency, as these are the exclusive fields of the government and
thoroughly important for the community and polity to prosper.

Financial Meticulousness:- Public administration has to be very careful in financial matters because it is working as custodian of people’s money.

Lower Level of Efficiency:- Efficiency is said to be the cornerstone of any
organisation. However, due to varied responsibilities, lack of effective control, less accountability, involvement of a large number of levels and job security of employees, efficiency has not been there in public organisations to the effect desired. When compared to private administration, one finds that the degree of efficiency in public organisations is at a lower level. With profit as the major motive coupled with excessive control and flexibility in personnel administration the level of efficiency in private organisations is much higher.

◆◆ Many scholars have made distinction between public and Private administration such as  Paul H. Appleby, Josiah Stamp, Herbert A. Simon, Peter Drucker, etc.

>>According to Josiah Stamp four principles differentiated public from private administration:

1. Ministerial Responsibility:- Public administration is subjected to political direction in policy matters. Minister lays down the broad policy outlines under which bureaucrate has to implement the policy. Though operational autonomy is granted to public policy administrators, they are not responsible for their actions to the legislature. Minister is responsible for all acts of omission and commission of his department to the parliament. No such arrangements exist in private administration.

2. Marginal Return:- Public administration is service oriented and there is no correlation between income and expenditure. Most government departments are spending departments and public utility services of government often run at loss. Private administration is profit driven and remains viable as long as it earn profit.

3. External Financial Control:- Public administration is subject to the principle of external financial control. Government revenues are controlled by people's representative through the legislature. In private administration finance is controlled internally.

4. Uniformity of Treatment :- Public administration should be consistent in procedure and uniform in its public dealings. unlike private administration.
    
>> According to Paul H. Appleby

"Government administration differs from all other administrative works. An administrator coming into government is struck at once and continuously thereafter, by the press and public interests in every details of his life, personality and conduct. The interest often runs to details of administrative action that in private business would never be of concern other than inside the organization."

>>According to him some aspects diffrentiate government from private administration:-

● As regards the first aspect,  He says, "The organized government comprehends in some way and it's affected by practically everything that exists or moves in our society. Its fullest possible understanding requires the wisdom of anthropologist, the historians, the economist, the sociologist, the political scientist , the farmer, the labourer, the merchant, the industrialist, the banker, the politician , the philosopher and many more". Its obvious that private administration cannot claim this breadth of government

● Political Character of public administration, Appleby argues that administration is politics since it must be responsive to the public needs and demands. He Hence writes , " it is necessary to emphasize the facts that popular political processes which are the essence on democracy, can only work through governmental organization, and all governments organization not merely administrative entities , they are and must be political organisms."

● Although public administration has acquired certain distinctive features  diffrentiate it from private administration that includes it's profit motive, legal character , nature of operation, financial control and monopolistic nature, difference is minor in present day liberalzied economy.

>> According to Herbert A. Simon, the distinction between public and private administration relates mainly to three points:-
● Public administration is bureaucratic whereas private administration is business like;
● Public administration is political where as private administration is non- political.
● Public administration is characterized by red- tape where as private administration is free from it.















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