Public Administration
How Public Administrative Discretion Works
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The main difference between public and private administration is that in the former the administration both administers to the public and is accountable to the public; in the latter, the administration is accountable only to stakeholders, which may or may not include members of the community/public. Other differences include the fact that in private administration, the idea is that the administration is overseeing some business organization that focuses on a goal related to its mission, its business model. Public administration, on the other hand, refers to a political process wherein official administrators are elected or appointed to do a job for the good of the public. They typically control or use public funds; must give a public accounting of how funds are used, and must to all intents and purposes fulfill a mandate given them by the public—though, of course, it is up to the public to hold them accountable and if the public does not do so the administration may very well do as it pleases without suffering any political repercussions (Savoie, 2006). The private administration is a non-governmental operation; the public administration is a government operation. Typically the public administration is organized bureaucratically while the private administration is organized hierarchically or with an egalitarian principle.
The advantages of the public administration are that its orientation is towards the welfare of the public whereas the private administration is oriented towards the welfare of the corporation (Reyes & Pounder, 1993). The public administration seeks to please and better the community through its initiatives. The private administration seeks to please the community through some product or service by the provision of which the company can profit.
The advantage of the private administration is that decision-making is more streamlined and typically more effective so long as the decision-maker is well-versed in the art of leading. In the public administration, decision-making is often by committee and is pluralistic, which can make it difficult for any action to be taken if there is disagreement among members. Debates can be contentious and there can be a great deal of stalling and what appears to be inaction.
The disadvantages of public administration are that it requires taxation in order to have any revenue to fund its projects. That means the people must pay for its existence and they must pay to employ those who serve in the administration, whether they like it or not. This can lead to frustration and anger over the fact that the public is forced to pay for something it does not believe in and does not want to continue to see operating. That sentiment in turn can lead to a drop-off in taxes as people find ways to skirt paying them, which can dry up the revenue streams and cause the public administration to become even less impactful.
The disadvantage of private administration is that it typically lacks transparency and only reveals to the public what it is required by law to reveal—which can be very little in many cases. Unless the private company goes public, for example, it is not bound to release quarterly statements or hold conference calls with investors. So an early investor in a company like WeWork may be thinking his investment will pay off handsomely only to find out when the company is about to go public that its internals are a complete disaster. So the lack of transparency is a major issue with respect to private administration.
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