Public_Administration

What is the difference between public administration and business administration' Public administration is primarily geared towards the governance of the daily operations of institutions within the public's domain, which mostly rely on funding derived from government sources and charitable donations and are charged with the provision of services that seen as “necessities” and vital for the existence of the citizens. Eg a public hospital. Business administration is the performance or management of business operations in a corporation or entrepreneurship (own business), in order for it to maintain its growth or stability and to make profit for the owners, where the primary revenue source is derived from the sales of goods and services. These two administrations although closely related, have differences in certain aspects; • Objectives - The most apparent difference between the two administrations is their organizing principles or goal. In business administration the objective is the pursuit of profit or stability or growth of revenues, whereas in public administration, the focus is on the provision of public services for citizens regardless of the financial returns derived from that service. • • Decision making and Beneficiary - In public administration, the decision must be and should be pluralistic. There is maximum participation as the decision supposedly benefits the public at large. Decision making in business administration is more or less in the hands of top management and the beneficiaries are the customers, shareholders and employees. • • Visibility - The visibility of public administrators is another notable difference between public and business administration. While a manager in a private business may work in relative obscurity, the public manager must operate in the public eye, constantly subjected to public scrutiny. (Denhardt) This pressure often leaves public organizations in a "no-win" situation, trying to serve a public that demands effective government but balks at paying for it (taxes). • • Politics - Lastly, although political aspect is both apparent in public and private sector, political aspect is more important in the public than in the private sector. Policy decisions normally affect companies directly and indirectly, through laws, regulations and financial support. The public sector is at least formally controlled by elected politicians. The intimate link between this governance dimension and funding of current expenses of the activities implies a very strong link between ownership and control on the one hand and the growth strategies of the subsidiary organizations.