Most people don’t really know the difference between what involves public administration and business administration. The two phenomena have a lot in common such that to a layman they could be mistaken for the same field or one could be perceived as an offshoot of the other. This makes interacting with the differences and similarities of the subjects. This article will try as much as possible to illuminate the Difference between public administration and business administration and what likens them.
Business Administration vs Public Administration
Here’s the Difference between public administration and business administration, also similarities between public administrations and business administration, helping you identify and explain differences and similarities..
Difference between public administration and business administration
By virtue of the fact that Public administrators today play and pay more attention to the delivery of quality services for the people, it is governed by public law while business operating administration is regulated by private, mercantile law. Business decisions are made by business owners applying both of these courses and they are accountable to the merchantable law which expects them to operate under curtains guidelines through different types of public administration. That’s one major difference between public administration and businesses with administration
The objective of public administration is different from businesses that only need administration; public administration embarks on non-economic, socio-political objective, while the businesses administration embarks on economic objectives and is most especially interested in profit making. The main reason for this is that business administration focuses on productivity for the profitability of a particular business. With public service, the objective is quality service delivery at the lowest cost using state resources.
Policies that help meet the goals of the two are different. Public administration implements public policies because of who they serve. On the other end, business administration implements private policies and ministers to private corporate interests. It
4. Source of funding
Public administration survives on the public’s money through taxes and information about the administration of those funds and resources should be accessible to anyone who needs it. This makes public administrators accountable to the public. In contrast, business administration relied on private funding i.e. shares, stocks, bonds, and bank loans, and it’s only accountable to its financiers.
Public administration pursues non-quantifiable objectives such as law and order, political stability, and national prosperity. It is impossible to measure its efficiency. While in business administration, the height of profitability of a business enterprise can be measured.
6. Channels of operation
Differences in the ultimate goal of each of the two make their methods of operation different. Public administration is also excessively bureaucratic and devotes a lot of time and effort to keep records. While business administration focuses on the essence of time and profitability.
People never agree on the same thing all the time and this makes the work of public administration more cumbersome than business administration. Because of the existence of many alternative views, the external socio-political environment exerts greater pressure on public administration than it does on business administration. That’s another difference between public administration and business administration
In public administration, morals and ethics (e.g. self-discipline, probity in office, acknowledgment of individual rights and liberties) are of prime concern whereas they are only incidental to businesses operating through administration.
The theory in public administration is different from the theory in business administration, which then, makes the career in both fields different.
In view of the fact that the ends, strategies, tactics, and the environment of public administration are different from those of public administration, the conceptual or theoretical frameworks considered applicable in both sectors are different.
Having looked at the differences between the two phenomena it is easy to separate them and move towards an establishment of their similarities.
Relationship between public administration and business administration
Both types of administration are interested in matters of economic as well as socio-political, although the degree of interest will vary depending on circumstances. The concern with the problems posed by environmental pollution in particular is tempering the ruthless driver for profits.
Contrary to popular belief, a significant number of objectives pursued by public administration can be qualified; this is the whole essence of the efforts scholars make to distinguish facts from the value in public administration.
There is no doubt that public administration implements public policies, but we must bear in mind that these include private, and corporate policies. If for instance, the collapse of some enterprises triggers mass unemployment, the government cannot afford to dismiss this as private affairs.
Public administration may find itself being regulated not just by public law, but also by private, mercantile law (the enactment on hours of work, employment of women, factory conditions, minimum wages, etc.) apply as much to the public sector as they do the private sector.
Employees in both public and business administrators need to marshal human and material resources to achieve objectives. At times two may find themselves in competition for the same technologies and the same clientele.
6. Public interaction
Since it takes place within a dynamic socio-political environment, business administration cannot pretend to have anything to do with the issue of moral and ethical confronting society.
As a process, business administration takes place with a formal (bureaucratic) organization. If administrators in both sectors are to avoid the wrong of excessive bureaucratization, they will have to make conscious efforts and apply innovative managerial techniques.