PADM501- Final Essay 030517.docx - Public vs. Private 1...

Public vs. Private 1
Final Essay: Public Administration vs. Private Management
Amanda Boor
PADM 501: B03
March 7, 2017
Introduction
Public administration and private management differ on a number of levels. These
differences have implications on decision making; human resource management; and
accountability for decision makers. According to Milakovich and Gordon, “Public
administration can be defined as all processes, organizations, and individuals associated with
carrying out laws and other rules adopted or issued by legislatures, executives, and
courts”[Mil13]. As stated by Surbhi (2016) “Management and organizations of private business
enterprises comprise private administration”[Sur16].
Noticeable differences

Public vs. Private 2
An obvious difference between public administration and private management include
ownership. Public administration agencies are owned collectively by the communities; where as
private management companies are owned by entrepreneurs or shareholders. Another obvious
distinction is the difference between their funding sources. Public administration agencies are
funded largely by taxation rather than fees paid directly by customers. Public administration
agencies are controlled predominantly by political forces; where as private management
organizations can be controlled by market forces, and stakeholders/shareholders interest.
Public administration consists of a large number of formal processes that involves red
tape. According to Bozeman (1993), red tape can be defined as rules, procedures and regulations
that remain in force and have a compliance element for the organization but no rules for
functional objectivity.
The red tape is attributed to the fact that there are three moving parts or authority
involved in public administration. Those parts include the executive branch, legislative branch
and judicial branch. The division of authority is designed to prevent abuse of power and provide
transparency of the organization. The degree of processes and formularization exceeds that of
the private sector. The organizations also differ on the mission or objective.