Public and Private Administration

Many similarities exist between administrative activities in the public and private sectors. In fact, many elements of public administration have their roots in the private sector. There are some believe what works effectively in one setting will also work in the other so we should make government more business-like.

But the notion that there are important differences between public and private administration is undergoing intense scrutiny. Scholars are divided over the importance of an organization’s public or private status. This has led to increasing proposals to rely more on nonprofit, faith-based, or “third-sector” organizations to deliver government services.

Although some parallels do exist, there are also critical differences among the public, private and non-profit sectors. In both settings, managers and those to whom they are accountable have an interest in running programs that are properly designed, appropriately directed to meeting their intended goals, efficient in expenditure of organizational resources, and effective in their results.

All this involves some “politics,” both internal and external to the organization. There are agreements to be reached and maintained, and gains and losses to be realized. On the other hand, important elements of the managerial environment differ for public, non-profit and private managers. One fundamental difference is that, in the private sector, products or services are purchased by individuals based on their own needs or wants.