PUBLIC AND PRIVATE ADMINISTRATION

PUBLIC VS PRIVATE

HOW DO THEY DIFFER?1. Political Administration2. Profit Motive3.Service and Cost4.Nature of Functions5.Efficiency6. Public Responsibility7. Public Relations8.Uniform Treatment9. Monopolistic10. Financial Meticulousness11. Social Prestige12. Social Consequence

Political AdministrationIn public administration there is political direction. The administers under public administration has to carry out the orders which he gets from the political executive with no option of his own.

Profit MotivePublic administration is conducted with the motive of service while the motive of private administration is profit making. If private administration is useful to the public, its service to it is a by-product of profit making. Private administration will never undertake a work if it does not bring profit.

Service and CostIn public administration there is an intimate relationship between service rendered and the cost of the service charged from the public. Only such amount of money is raised by taxation, which is necessary for the rendering of service. In private administration income of funds exceeds expenditure because there is usually an attempt to extract as such money as possible from the public.

Nature of FunctionsPublic administration is more comprehensive. It deals with the various types of the needs of the people. In a socialist State the scope of State is still larger. Private administration does not cover so many aspects of human life. It mostly concerned with the economics needs of life.

EfficiencyIt is considered by many that in public administration efficiency is less. Because of extravagance, redtapism, and corruption, which may dominate in public administration it, may not be in a position to function in an efficient manner. But in private administration the level of efficiency is superior to public administration. The incentive of more profits impels the individuals to devote him more to work.

Public ResponsibilityPublic administration has responsibility to the public. It has to face the criticism of the public,press, and political parties. The private administration does not have any great responsibility towards the public. It is only responsible to the people indirectly and that too for securing its own ends and not for the welfare of the people.

Public RelationsThe public and private administration also differs on the principles of public relations. Public relations have a narrower content in public administration than in private administration.

Uniform TreatmentPublic administration is consistent in procedure and uniform in dealings with the public. In such a system a civil servant cannot show favour to some people and disfavour to others. But private administration need not bother much about uniformity in treatment.

Monopolistic

In the field of public administration, there is generally a monopoly of the government and it does not allow private parties to compete with it. For example, no person can establish post and telegraph, railways etc. But in private administration, several individuals or organizations compete with each other to supply the same commodity or meet the same needs. Thus there is no monopoly in private administration.

Financial meticulousness

Public administration has to very careful in financial matters. Public money is to be spend meticulously and according to the prescribed procedure. It is the legislature, which exercises financial control over executive. But there is no difference between finance and administration in private administration. There isno external financial control.

Social PrestigePublic Administration carries a greater social prestige than private administration. Service to the community is the basic characterising public administration.

Social ConsequenceThe social consequence of public administration will be great because a defect in it will do more harm to the public. But in private administration this will be less. Even if any harm is done by it will be of less significance and thereby may be negligible.

HOW DO THEY DIFFER?1. Political Administration2. Profit Motive3.Service and Cost4.Nature of Functions5.Efficiency6. Public Responsibility7. Public Relations8.Uniform Treatment9. Monopolistic10. Financial Meticulousness11. Social Prestige12. Social Consequence

THEORIESWould you be motivated to work for your employer if your were given no training, no tool and the same pay with the a higher amount of work?

Classical Organization Theory

Classical organization theory focuses primarily on the structure of the organization. Managers who ascribe to this doctrine use prescriptive methods to organize the company and apply the philosophy that the best decision is the one that involves doing what is good for the organization. The focus is the one best way. This premise underlies many decisions that managers make, which are believed to be practical and made for the good of the whole.

Organizations generally require a number of employees to be successful. The division of work continues to be an important factor in organizational theory. Luther Gurlick developed the idea of using a set of administrative principles in managing organizations. These principles are known by the mnemonic POSDCORB. Managers who ascribe to Gurlick's work have a list of all the necessary skills or tools that a leader needs to manage an effective organization. POSDCORB stands for the following terms: planning, organizing, staffing, directing, coordinating, reporting, and budgeting. These principles continue to be applied and assessedby effective organizations (Shafritz & Ott, 2001).

Human Resource Theory

Human Resource Theory of organization derives its roots from industrial and organizational psychology. Industrial and organizational psychology uses research and application of the methods, facts, and principles of psychology to describe people at their work including their behaviors, interactions among people, motivation, and decision-making.

The term industrial psychology first appeared in the American lexicon purely by mistake when, in 1904, W.L. Bryan proclaimed in his presidential address to the American Psychological Association that more research in the field of industrial psychology was needed, when he meant to say that more research was needed in the field of individual psychology (McCarthy, 1997). And it is exactly the individual, not the organization, which the Human Relations Theory of organization emphasizes.

About the same time that Frederick Taylor began publishing his theories on organization management, Hugo Munsterberg (1863-1916), the father of industrial psychology, began pioneering work in the application of psychological findings from laboratory experiments to practical matters. Munsterberg believed that managers should be thoughtful of all factors that could affect an employees behavior and production such as physical exhaustion, boredom, work satisfaction, and compensation. He was the first to encourage government-funded research in the area of industrial psychology. Munsterbergs early research in industrial psychology assumed that people needed to fit the organization. At this time, behavioral sciences focused mainly on helping organizations shape people to serve as replacement parts for organizational machines. (McCarthy, 1997) The influence of Munsterbergs work continued well into the 1950s. During the period of his work, modern human resource theories began to arise which placed people above the organization in importance.

The first significant event for the Human Resource Theory movement occurred in 1924 when Elton Mayo and his team of Harvard University researchers began the famous Hawthorne experiments. The Hawthorn experiments consisted of a series of experiments at the Hawthorne Works of the Western Electric Company. In these experiments, the researchers sought to study the relationship between lighting and efficiency in the workplace.

Are Apples retail stores hell or heaven?Since Apple is notable for its successful adoption of aspects of radical management, its useful to put these different viewpoints in perspective.Radical management is a management framework of principles and practices. No organization is perfectly implementing all of the principles and practices. Some organizations are implementing some of them and prospering. Many traditional organizations are implementing few, if any, of the principles and practices and are struggling.

The most important principle: delight your customersMaking money is the result of achieving that goal, not the goal itself. Apple has shown how incredibly profitable it can be to devote a whole organization to that goal.Apple has often done a good job in its retail stores of enabling self-organizing teams of workers, coordinating work with Agile methods and systematically tracking whether customers and employees are delighted.

When a firm delights its customers, it can make many other mistakes and still be extremely successful. One principle that Apples former CEO Steve Jobs consistently flouted include:Communicate with your employees as adults.Steve Jobs often treated his staff abominably, berating them publicly and acting in a sublimely dictatorial fashion. Yet many of his staff forgave him for his bad behavior because he was usually doing it in a good cause: deliver a better experience for the customer. His ferocious determination to look at the world through the eyes of the customer was something his employees could respect, even if the communication style was regrettable

Compensate your employees fairly

For the last ten years, Apple has taken advantage of the strong demand for its jobs, particularly in todays weak economy when Apple is seen as a cool place to work: it has no difficulty replacing those workers that it disposes of. It has apparently made a tactical decision that the costs of selecting and training new workers is worth the turnover rate that its low pay generates.

What is at stake is Apples long-term future. If Tim Cook berates his employees as Steve Jobs did, pays them less than they deserve, recruits traditional managers who dont practice the Apple way, allows managers to push products and services that customers dont really want, and fails to rectify abuses in its supply chain in China, these shortfalls will eventually end up causing a drag on Apples performance. Apple would do well to rectify them now, before they fester and become permanent cultural flaws.

Conclusion

Given its mechanistic and institution-based beginnings, it is somewhat amazing how far organization theory progressed in such a brief period of time. From Taylors and Fayols work in the early twentieth century, to Douglas McGregors Theory X and Theory Y merely fifty years later, organization theory ran the gamut of beliefs, from the institution being paramount in production, to the individual being the most important factor. The changes in management in factories and organizations based on these theories are quite astounding. Due to changes in managerial practices, workers went from being told what to do, when to do it and how to do it, to a more humanistic system where the workers needs were considered and realized to be important, albeit still in terms of production maximization.

THANK YOU

ReferencesFrom Institution to Individual: the Beginnings of Organization Theory-Lynn Hardin, Susan Lucas, Linda North and Lucille PrewittPubliUNIVERSITY OF CALICUTSCHOOL OF DISTANCE EDUCATIONCALICUT UNIVERSITY.P.O., MALAPPURAM, KERALA, INDIA 673 635c Administration: Theory and Practicehttp://www.forbes.com/sites/stevedenning/2012/06/25/apples-employees-have-a-hell-of-a-ride/

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