(Online Course) Pub Ad for IAS Mains: Chapter: 1 Introduction - Public Administration V/S Private Administration (Paper -1)

Public Administration V/S Private Administration

Three different aspect.

1. Similarities.
2. Different between Public Administration & Private Administration
3. Contemporary development : PPP.

(i) Similarities: Theorists like Bozeman, Murray, Fayol Gullick urwick, weber, simon. Simon has mentional dissimilarities he is by an large known for similarities. They carry characteristics which are by and large. General arguments put forward by classical theoreists:

Tools & Techniques used to attain efficiency remain same in any type of organisation. They might be difference in terms of nomenclature . But in essence of they are same. Some ideas of modern era also believes in similarities. Many private establishment have undertaken activities which are in fact in nature of welfare activity. In government organisation also takes some actions which operate on private lines number e.g., Public sector undertakings profit orientation. So, many of theorists have considered that both are similar. Classical/Behavioural theorist, believe n concept of “Generic Administ5ration”. They believe administration is common for both public & private.

Contingency Theorists: By and large believe in “generic Administration” but they have established the same through “situational Aspect”. Different lies in on the account of circumstances and background. In 1966 Hash & Hall conducted a study. They included both Public Organisation & Private Organisation. They found that there are many organisation across Public & Private which are similar and there are many organisation within Public which are similar these are many private which within are dissimilar.

The factor which determines the similarities & dissimilarities is not being public or private rather the circumstances in which these organisation are operating determine the similarities or dissimilarities.

In 1969, PUGH & HINNING: They considered 58 organisation which included both public & private and they also provided the same type of conclusion as hash & Hall.

COPPER & KETTLE They have referred to a category of organisation “Hybrid organisation” or “Mixed Organisation” By taking into consideration the characteristics of these Paradigm built across two dimensions.

Public funding – funding from goal.

Private Funding – funding through Private Grants, sates & purchase etc.

I – purely public
IV – Purely private.
II, III – Carry hybrid structure.
II – finance flows from sale of goods services etc. Eq: NALCO.
III – Private Ownership but public funding through budget.

Had Public been completely diff. from Private the hybrid organisation could not have been formed. Hence both are same.

There have been highly successfully private organization which through the process of nationalization came under the ownership of good and were run successfully and vice-versa.

It there would not have been similarities then nationalization and privatization would not have been successful.

(ii) Dissimilarities: Public ness of Public Administration etc. Group of theorists Dahl, lindbloom, Moore, Mosas, Petter Drucker, Josia Stamp, John Gaus etc. They believe that Public Administration & Private Administration are different.

General points of dissimilaritics:

1. Legal framework.
2. Political character & Political Accountability.
3. Uniformity of treatment.
4. Service Orientation.
5. Monopoly
6. Extent and diversity of operation.
7. Public scrveting.

Private Administration– They are not directly representatives to elected representatives or people at large. Large amount of autonomy, by are large determinal by the organisation itself.

(1) Legal framework: Public Administration in day to day operations are bound by public policies and laws which are binding. Private Administration– enjoy large amount of autonomy barring limited amount rates restrictions & rules. Rules are defined by the organisation itself.

(2) Uniformity of treatment: Public Administration – dealing with client, in terms of behaviour, has to be natural and impartial. (no. political affiliation.) (non discriminations.)
Private Administration– It can take up a discriminatory approach. It can provide privileged treatment to the group, based on its business interest.

(3) Government has service orientation. Private Administration has profit orientation.

(4) Monopoly: refers to a category of organisation which can operate in a particular field to the exlusion of other, category or organizations. Public Sector can enjoy monopoly. Private “can not. Government; by law, can bring about, by provisions containing areas where only public sector can operate and Private Sector is not allowed to operate.

(5) Extent & diversity of operation: Extent & diversity of public sector is much more than Private Sector.
(iii) Operates under an over all surveillance of elected representatives at the same time the people at large.

Public Scrutiny is much larger in Public Administration. The Public Administration operates in a glass house.

DAHL & LINDBLOOM

To manage political economics there are two major strategies.

1. Poly archy
2. Market Economy.

Political Economy – co-existence of political & economic ideas.
Polyarchy – refers to political hierarchy.
Market Economy – Market.

Market economy is based on voluntaristic approach. Man by nature is rational and by being rational he chooses the which is best for him. These theorists say that this is one of the best strategis to manage political economy But they say that it has its limitations. 3 Major conditions where Market Economy Suffer from limitations:

1. Public goods & free riders.
2. Individual Incompetencies.
3. Externalities and Spillover

(1) Public goods & free riders. Market functions on principle of “these are no free lunches”. Individual has to pay for goods and services. Many times benefit to individual is less apparent and minimized and so individual motivation to contribute reduces (is cape responsibility to pay.) [Free riders] Monopoly over violent act lies with the state in a democratic state. To handle such free riders semi coercive or coercive methods are required. This monopoly does not lie with Private Organisation.

(2) Individual Incompetencies: Individual in a market place is not always competent to choose the best. Private Sector being profit oriented can not rectify these incompetencis. Only Public Administraion Can do it.

(3) Externalities and spillover: To check the externalities and spillover government is required. eg: pollution by Industries.

MOORE: Today government organisation & Private Organisation both are providing “public values”. Both of than are providing almost similar public values. Private sector provides public values at a cost more than the cost of production. While Public Sector provides them at either equal or less than the cost of production.

BENN AND GAUSS: These two theorists has distinguished on the basis of publicness Public Administration & privateness of Private Administration.

They have brought about the distinctions across three major dimensions:

1. Interest
2. Access (to info, resources, facilities.)
3. Agency (ownership)

Organisation could be referred as based on whose interest it is advocating or satisfying. If organisation gratifies or satisfying of single industrial or group of industrial than it is carry of privateness.

(1) If the organisation is addressing to the interest of people at large then it is carrying publicness. If organisation is carrying publicness then it is public organisation. If organisation is carrying privateness the it is private organisation.

(2) Every organisation has, information, resources and facilities. If the access to these is restricted to single individual or group of individual, than it has privateness and organisation is private organisation. If the access is provided to public at large then it is public organisation.

(3) If the organiation is owned by individual or group of individuals then it private organisation.

If the organisation is owned by people at large than organistion is public organiation.

BLAU & SCOTT: While different: They have referred to Public Organisation as common weal organization. And Private Organisation as business organization.

PETTER DRUCKER

Government Orgaisation – service oriented.
Private Oraganisation – profit oriented.
Even till today the discussion goes on.
Broadly it can be said that Public Administation & Private Administration they differ only in degree and not in kind.

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