Question

Consider the following statements.
Assertion (A): Private administration focuses on profit as its primary objective.
Reason (R): Public administration’s objectives are often measurable in monetary terms and checked by accountancy methods.

Select the correct answer from the codes given below:

1. Both (A) and (R) are true, and (R) is the correct explanation of (A).

2. Both (A) and (R) are true, but (R) is not the correct explanation of (A).

3. (A) is true, but (R) is false.

4. (A) and (R) are false.

• A. 1
• B. 2
• C. 3
• D. 4

Answer 1

Answer:

C. 3

Understanding Public vs. Private Administration

• Public administration refers to the management and implementation of public policies and services by government agencies. Its primary focus is on serving the public interest and achieving societal welfare.
• Private administration pertains to the management of private businesses and enterprises. Its core objective is typically profit maximization for shareholders or owners.

Key Differences in Objectives and Measurement

• Assertion (A): Private administration focuses on profit as its primary objective.
  • This statement is true. The fundamental aim of most private organizations is to generate revenue, control costs, and ultimately maximize profits to ensure sustainability and growth in a competitive market.
  • Success in the private sector is largely measured by financial metrics such as return on investment (ROI), profit margins, market share, and stock performance.
• Reason (R): Public administration’s objectives are often measurable in monetary terms and checked by accountancy methods.
  • This statement is false. While public administration certainly uses accountancy methods for financial accountability, budgeting, and auditing, its primary objectives are generally not measured in monetary terms.
  • Public administration aims at achieving social, economic, and political goals like public health, education, security, and infrastructure development. The success of these objectives is measured by factors such as:
    • Effectiveness: Achieving desired social outcomes (e.g., literacy rates, crime reduction).
    • Efficiency: Delivering services with optimal resource utilization.
    • Equity: Ensuring fair and impartial access to services.
    • Accountability: Adherence to legal frameworks and public scrutiny.
  • For example, the success of a public health campaign is measured by reduced disease prevalence, not by monetary profit. Accountancy methods in public administration ensure transparency and proper utilization of public funds, but they do not define the core objectives as monetary gains.

Additional Points for Competitive Exams

• The concepts of 'efficiency' and 'economy' are common to both public and private administration, but 'effectiveness' and 'equity' are more pronounced in public administration.
• Woodrow Wilson is often considered the 'father of Public Administration' for his 1887 essay 'The Study of Administration', which advocated for the separation of politics and administration.
• Public administration operates within a framework of laws, rules, and procedures, emphasizing fairness, impartiality, and public accountability, whereas private administration has more flexibility and is driven by market forces.