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

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Public vs. Private1Final Essay: Public Administration vs. Private ManagementAmanda BoorPADM 501: B03March 7, 2017IntroductionPublic administration and private management differ on a number of levels.Thesedifferences have implications on decision making; human resource management; andaccountability for decision makers.According to Milakovich and Gordon, “Publicadministration can be defined as all processes, organizations, and individuals associated withcarrying out laws and other rules adopted or issued by legislatures, executives, andcourts”[Mil13].As stated by Surbhi (2016) “Management and organizations of private businessenterprises comprise private administration”[Sur16].Noticeable differences
Public vs. Private2An obvious difference between public administration and private management includeownership.Public administration agencies are owned collectively by the communities; where asprivate management companies are owned by entrepreneurs or shareholders.Another obviousdistinction is the difference between their funding sources. Public administration agencies arefunded largely by taxation rather than fees paid directly by customers.Public administrationagencies are controlled predominantly by political forces; where as private managementorganizations can be controlled by market forces, and stakeholders/shareholders interest.Public administration consists of a large number of formal processes that involves redtape.According to Bozeman (1993), red tape can be defined as rules, procedures and regulationsthat remain in force and have a compliance element for the organization but no rules forfunctional objectivity.The red tape is attributed to the fact that there are three moving parts or authorityinvolved in public administration.Those parts include the executive branch, legislative branchand judicial branch.The division of authority is designed to prevent abuse of power and providetransparency of the organization.The degree of processes and formularization exceeds that ofthe private sector.The organizations also differ on the mission or objective.

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