Public administration vs Business Administration - Difference between MBA vs MBA - Edupedia

Public administration:

Public administration is run within a country to manage the affairs of a country by making different policies for the security and welfare of the general public.

In simple, Public administration is detailed and systematic application of law in a society:

Business Administration:

Business administration refers to private administration, it is generally includes the aspects of administrating the private businesses and its operations. The basic purpose of the private enterprise, business or organization is to increase the market value and earn more profit.

So, we can conclude that the public administration is service oriented while business administration is profit oriented.

Difference between Public and Business Administration:

Public administration deals with the administration of the public with in a society. Mainly it is considered the function of the government within a society and named as public sector administration. Government of the country uses different tools to manage the people of the country. While Business administration is to control the workers of a company to ensure and increase the share hold value of the company. It is named as private sector administration. Both types of administration require similar types of skills because of dealing with the people in nature.

The differences between the business and public administration is close in nature but very vast in theories. Some main points of the difference between both fields are attempted to be cleared here.



Rules and Regulations:

Public administration is run according to the public laws and policies while business administration is mainly followed by the governmental laws but every organizational policy varies company to company.

Objectives and Goals:

The main objects and goals of the public administration are to deal with non economic issues and serving the public for their welfare and prosperity. The main objectives of the business administration are economic oriented and increasing the profit of the business or organization.

Policy Formulation and implementation:

Public administrators implements the public policies made by legislation department of the country, while business administrators implements the policies made by private business.

Financial Resource:

The nature and source of the finance that is used for delivery of services is tax and other such subjects in public administration. While, the main source of the finance in the business administration is private funding or shares.

Accountability:

The public administrating authorities are accountable to the public of the society while, the accountability of the business administrators is done by the stack holders.

Measurability:

The measurement of the delivery made by the public administration is non quantifiable in nature because it is mainly service oriented. On the other hands, the efficiency of the business administration is measurable on the base of market value and profit of the organization.

Methods and techniques:

Method of operation adopted in the public sector is different from those adopted in the private sector. Public administration is excessively bureaucratic and devotes a lot of time and effort to keeping records. While business administration is of course business-like it deals with the workers in different manners but the main aim is to retain the employees for getting more benefits.

Political in nature:

There is no any political pressure in business administrators while, the public administrators are usually political representatives there for they have a huge political pressure for delivery of services.

Morals and ethics:

In public administration morals and ethics are considered as main concern for the relief of the general public while these are not the main concern in business administration.

In lump sum we can conclude that, the theories, frameworks and strategically approaches in public administration varies from those of business administration. So there application in the society, methodologies and techniques are also differs.


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