PUBLIC AND

PRIVATE
ADMINISTRATI
ON

PUBLIC VS PRIVATE

HOW

DO THEY DIFFER?

1. Political Administration
2. Profit Motive
3.Service and Cost
4.Nature of Functions
5.Efficiency
6. Public Responsibility
7. Public Relations
8.Uniform Treatment
9. Monopolistic
10. Financial Meticulousness
11. Social Prestige
12. Social Consequence

Political Administration
In

public administration there is political

direction. The administers under public
administration has to carry out the
orders which he gets from the political
executive with no option of his own.

Profit Motive

Public

administration is conducted with

the motive of service while the motive
of private administration is profit
making. If private administration is
useful to the public, its service to it is a
by-product of profit making. Private
administration will never undertake a
work if it does not bring profit.

Service and Cost

In

public administration there is an

intimate relationship between service
rendered and the cost of the service
charged from the public. Only such
amount of money is raised by taxation,
which is necessary for the rendering of
service. In private administration income
of funds exceeds expenditure because
there is usually an attempt to extract as
such money as possible from the public.

Nature of Functions
Public

administration is more
comprehensive. It deals with the various
types of the needs of the people. In a
socialist State the scope of State is still
larger. Private administration does not
cover so many aspects of human life. It
mostly concerned with the economics
needs of life.

Efficiency

It is considered by many that in public

administration efficiency is less. Because of
extravagance, redtapism, and corruption,
which may dominate in public
administration it, may not be in a position to
function in an efficient manner. But in
private administration the level of efficiency
is superior to public administration. The
incentive of more profits impels the
individuals to devote him more to work.

Public Responsibility
Public

administration has responsibility

to the public. It has to face the criticism
of the public,press, and political parties.
The private administration does not
have any great responsibility towards
the public. It is only responsible to the
people indirectly and that too for
securing its own ends and not for the
welfare of the people.

Public Relations
The

public and private administration

also differs on the principles of public
relations. Public relations have a
narrower content in public
administration than in private
administration.

Uniform Treatment
Public

administration is consistent in
procedure and uniform in dealings with
the public. In such a system a civil
servant cannot show favour to some
people and disfavour to others. But
private administration need not bother
much about uniformity in treatment.

Monopolistic

In the field of public administration, there is

generally a monopoly of the government
and it does not allow private parties to
compete with it. For example, no person can
establish post and telegraph, railways etc.
But in private administration, several
individuals or organizations compete with
each other to supply the same commodity
or meet the same needs. Thus there is no
monopoly in private administration.

Financial meticulousness
Public

administration has to very careful

in financial matters. Public money is to
be spend meticulously and according to
the prescribed procedure. It is the
legislature, which exercises financial
control over executive. But there is no
difference between finance and
administration in private administration.
There isno external financial control.

Social Prestige
Public

Administration carries a greater

social prestige than private
administration. Service to the
community is the basic characterising
public administration.

Social Consequence
The

social consequence of public

administration will be great because a
defect in it will do more harm to the
public. But in private administration this
will be less. Even if any harm is done by
it will be of less significance and thereby
may be negligible.

HOW

DO THEY DIFFER?

1. Political Administration
2. Profit Motive
3.Service and Cost
4.Nature of Functions
5.Efficiency
6. Public Responsibility
7. Public Relations
8.Uniform Treatment
9. Monopolistic
10. Financial Meticulousness
11. Social Prestige
12. Social Consequence

THEORIES
Would

you be motivated to work for

your employer if your were given no
training, no tool and the same pay with
the a higher amount of work?

Classical Organization Theory

Classical organization theory focuses

primarily on the structure of the organization.
Managers who ascribe to this doctrine use
prescriptive methods to organize the
company and apply the philosophy that the
best decision is the one that involves doing
what is good for the organization. The focus is
the one best way. This premise underlies
many decisions that managers make, which
are believed to be practical and made for the
good of the whole.

Organizations generally require a number

of employees to be successful. The division
of work continues to be an important factor
in organizational theory. Luther Gurlick
developed the idea of using a set of
administrative principles in managing
organizations. These principles are known
by the mnemonic POSDCORB. Managers
who ascribe to Gurlick's work have a list of
all the necessary skills or tools that a leader
needs to manage an effective organization.
POSDCORB stands for the following terms:
planning, organizing, staffing, directing,
coordinating, reporting, and budgeting.
These principles continue to be applied and
assessed by effective organizations
(Shafritz & Ott, 2001).

Human Resource Theory

Human

Resource Theory of organization

derives its roots from industrial and
organizational psychology. Industrial and
organizational psychology uses research
and application of the methods, facts,
and principles of psychology to describe
people at their work including their
behaviors, interactions among people,
motivation, and decision-making.

 The

term industrial psychology first appeared in

the American lexicon purely by mistake when, in
1904, W.L. Bryan proclaimed in his presidential
address to the American Psychological
Association that more research in the field of
industrial psychology was needed, when he
meant to say that more research was needed in
the field of individual psychology (McCarthy,
1997). And it is exactly the individual, not the
organization, which the Human Relations Theory
of organization emphasizes.

About the same time that Frederick Taylor began

publishing his theories on organization
management, Hugo Munsterberg (1863-1916), the
father of industrial psychology, began pioneering
work in the application of psychological findings
from laboratory experiments to practical matters.
Munsterberg believed that managers should be
thoughtful of all factors that could affect an
employees behavior and production such as
physical exhaustion, boredom, work satisfaction,
and compensation. He was the first to encourage
government-funded research in the area of
industrial psychology. Munsterbergs early research
in industrial psychology assumed that people
needed to fit the organization. At this time,
behavioral sciences focused mainly on helping
organizations shape people to serve as
replacement parts for organizational machines.
(McCarthy, 1997) The influence of Munsterbergs
work continued well into the 1950s. During the
period of his work, modern human resource
theories began to arise which placed people above
the organization in importance.

The first significant event for the Human

Resource Theory movement occurred in
1924 when Elton Mayo and his team of
Harvard University researchers began the
famous Hawthorne experiments. The
Hawthorn experiments consisted of a series
of experiments at the Hawthorne Works of
the Western Electric Company. In these
experiments, the researchers sought to
study the relationship between lighting and
efficiency in the workplace.

Are Apples retail stores

Since Apple is notable for its successful adoption of
hell
or heaven?
aspects
of radical
management, its useful to put

these different viewpoints in perspective.

Radical management is a management framework
of principles and practices. No organization is
perfectly implementing all of the principles and
practices. Some organizations are implementing
some of them and prospering. Many traditional
organizations are implementing few, if any, of the
principles and practices and are struggling.

The most important principle: delight your

customers
Making money is the result of achieving that goal,
not the goal itself. Apple has shown how incredibly
profitable it can be to devote a whole organization
to that goal.
Apple has often done a good job in its retail stores
of enabling self-organizing teams of workers,
coordinating work with Agile methods and
systematically tracking whether customers and
employees are delighted.

When a firm delights its customers, it can make many

other mistakes and still be extremely successful. One
principle that Apples former CEO Steve Jobs
consistently flouted include:

Communicate with your employees as adults.

Steve Jobs often treated his staff abominably, berating

them publicly and acting in a sublimely dictatorial
fashion. Yet many of his staff forgave him for his bad
behavior because he was usually doing it in a good
cause: deliver a better experience for the customer. His
ferocious determination to look at the world through the
eyes of the customer was something his employees
could respect, even if the communication style was
regrettable

 Compensate

your employees fairly

For the last ten years, Apple has taken

advantage of the strong demand for its
jobs, particularly in todays weak economy
when Apple is seen as a cool place to
work: it has no difficulty replacing those
workers that it disposes of. It has
apparently made a tactical decision that
the costs of selecting and training new
workers is worth the turnover rate that its
low pay generates.

 What

is at stake is Apples long-term future. If

Tim Cook berates his employees as Steve Jobs
did, pays them less than they deserve, recruits
traditional managers who dont practice the
Apple way, allows managers to push products
and services that customers dont really want,
and fails to rectify abuses in its supply chain in
China, these shortfalls will eventually end up
causing a drag on Apples performance. Apple
would do well to rectify them now, before they
fester and become permanent cultural flaws.

Conclusion

Given its mechanistic and institution-based beginnings,

it is somewhat amazing how far organization theory
progressed in such a brief period of time. From Taylors
and Fayols work in the early twentieth century, to
Douglas McGregors Theory X and Theory Y merely fifty
years later, organization theory ran the gamut of
beliefs, from the institution being paramount in
production, to the individual being the most important
factor. The changes in management in factories and
organizations based on these theories are quite
astounding. Due to changes in managerial practices,
workers went from being told what to do, when to do it
and how to do it, to a more humanistic system where
the workers needs were considered and realized to be
important, albeit still in terms of production
maximization.

THANK

YOU

References
From

Institution to Individual: the Beginnings of

Organization Theory
-Lynn Hardin, Susan Lucas, Linda North and Lucille
Prewitt
Publi
UNIVERSITY OF CALICUT
SCHOOL OF DISTANCE EDUCATION
CALICUT UNIVERSITY.P.O., MALAPPURAM, KERALA,
INDIA 673 635
c Administration: Theory and
Practicehttp://www.forbes.com/sites/stevedenning/201
2/06/25/apples-employees-have-a-hell-of-a-ride/