Public and private administration: definition, differences, advantages and disadvantages
Posted: Mon Dec 23, 2024 5:24 am
Discover the significant differences that exist between public administration and private administration. Understand their essential characteristics and how these distinctions impact management and administration in government and corporate environments.
Administration can be applied in various fields, such as business, education, society and politics, among others. However, not all organizations are managed in the same way, as there are differences depending on the type of ownership, the purpose and its environment. Here lies the importance of administration as a fundamental axis in any organizational environment, whether in government institutions or in private companies.
It is necessary to understand the differences between public administration and private administration, since they mark different paths in terms of their operation, objectives and management methods. In this sense, it is necessary to delve deeper into these spheres of administration to understand their influence on decision-making.
What does public administration mean?
It refers to the management of resources and decision-making in government environments, whose main purpose is public service and benefit . It is a system aimed at meeting the collective needs of society, through the provision of public services, the regulation of private activities and the promotion of economic and social development.
Characteristics
In public administration, hierarchy, bureaucracy and regulations cp numbers are essential pillars. Transparency in decision-making, accountability to citizens and efficient management of public resources are key. Thus, the following characteristics of public administration are presented:
The organ. It is the structural unit that exercises a function or a competence within the public organization. The organs can be central or decentralized, according to their degree of autonomy with respect to the central power.
Staff. This is the group of public servants who perform their duties within the institution. Staff are governed by a special legal regime, which establishes their rights and obligations.
Resources. These are the material, financial and technological means that a company uses to achieve its goals. Resources come mainly from taxes, fees and contributions paid by citizens.
Acts. These are manifestations of will made by the entity to create, modify or extinguish legal situations. They are classified into administrative acts —with legal effects— and material acts —with factual effects—.
You might be interested in learning: What do you need to know before studying business administration?
What is private administration?
It focuses on the administration of companies or entities not directly related to the government . It is responsible for carrying out the administrative function and the management of private interest . Its main objective is to generate economic resources for the owners or shareholders, with the production and marketing of goods or services, or through the development of non-profit activities.
Characteristics
Agility, flexibility and innovation are fundamental in private administration. They also set the tone for economic profitability, competitiveness in the market and efficiency in resource management. Decisions are made more quickly, focused on maximizing benefits, considering the following characteristics of private administration:
The company. It is the economic unit that carries out a productive or commercial activity for profit. The company can adopt various legal forms, such as a corporation, limited company or cooperative, among others.
Staff. These are the workers who perform their duties within the company. Staff are governed by a labour law regime, which establishes the rights and obligations that they must fulfil.
Resources. These are the materials, finances and technology that the company uses to achieve its goals. Resources are obtained mainly from own capital or from external capital provided by partners or creditors.
Administration can be applied in various fields, such as business, education, society and politics, among others. However, not all organizations are managed in the same way, as there are differences depending on the type of ownership, the purpose and its environment. Here lies the importance of administration as a fundamental axis in any organizational environment, whether in government institutions or in private companies.
It is necessary to understand the differences between public administration and private administration, since they mark different paths in terms of their operation, objectives and management methods. In this sense, it is necessary to delve deeper into these spheres of administration to understand their influence on decision-making.
What does public administration mean?
It refers to the management of resources and decision-making in government environments, whose main purpose is public service and benefit . It is a system aimed at meeting the collective needs of society, through the provision of public services, the regulation of private activities and the promotion of economic and social development.
Characteristics
In public administration, hierarchy, bureaucracy and regulations cp numbers are essential pillars. Transparency in decision-making, accountability to citizens and efficient management of public resources are key. Thus, the following characteristics of public administration are presented:
The organ. It is the structural unit that exercises a function or a competence within the public organization. The organs can be central or decentralized, according to their degree of autonomy with respect to the central power.
Staff. This is the group of public servants who perform their duties within the institution. Staff are governed by a special legal regime, which establishes their rights and obligations.
Resources. These are the material, financial and technological means that a company uses to achieve its goals. Resources come mainly from taxes, fees and contributions paid by citizens.
Acts. These are manifestations of will made by the entity to create, modify or extinguish legal situations. They are classified into administrative acts —with legal effects— and material acts —with factual effects—.
You might be interested in learning: What do you need to know before studying business administration?
What is private administration?
It focuses on the administration of companies or entities not directly related to the government . It is responsible for carrying out the administrative function and the management of private interest . Its main objective is to generate economic resources for the owners or shareholders, with the production and marketing of goods or services, or through the development of non-profit activities.
Characteristics
Agility, flexibility and innovation are fundamental in private administration. They also set the tone for economic profitability, competitiveness in the market and efficiency in resource management. Decisions are made more quickly, focused on maximizing benefits, considering the following characteristics of private administration:
The company. It is the economic unit that carries out a productive or commercial activity for profit. The company can adopt various legal forms, such as a corporation, limited company or cooperative, among others.
Staff. These are the workers who perform their duties within the company. Staff are governed by a labour law regime, which establishes the rights and obligations that they must fulfil.
Resources. These are the materials, finances and technology that the company uses to achieve its goals. Resources are obtained mainly from own capital or from external capital provided by partners or creditors.