Which of the following statements about Public and Private Administration is/are not correct?
i. Public administration operates under the principle of marginal return, focusing on profit.
ii. No private organization can match the size and diversity of activities of government administration.
iii. Public administration is subject to red-tape, while private administration is relatively free from it.
Ai only
Bi and ii only
Cii and iii only
DNone of the above
Answer:
A. i only
Read Explanation:
Understanding Public and Private Administration
Core Objectives:
Public Administration: Primarily aims at public service and welfare, not profit. Its goal is to provide essential services, enforce laws, and implement policies for the benefit of society. It operates on principles like equity, accountability, and transparency.
Private Administration: The core objective is profit maximization for shareholders and owners. Decisions are often guided by market demand, competition, and the principle of marginal return, which means focusing on the additional revenue generated from an additional unit of output. Therefore, statement (i) is incorrect as it attributes a profit motive to public administration.
Scale and Diversity of Operations:
Government Administration: Manages an incredibly vast and diverse range of activities, including national defense, law enforcement, healthcare, education, social welfare, infrastructure development, taxation, and foreign relations. It serves the entire population of a country and often holds a monopoly in vital services.
Private Organizations: While some multinational corporations are very large, their scope is generally limited to specific industries or markets, and their primary focus remains profit. No single private entity can match the sheer breadth, scale, and public interest functions of a government. Thus, statement (ii) is largely correct.
Bureaucracy and Flexibility (Red-Tape):
Public Administration: Is often characterized by "red-tape", which refers to excessive bureaucracy, strict adherence to rules, formal procedures, and multiple layers of approval. This is largely due to the imperative for accountability, transparency, fairness, and preventing corruption in the use of public funds and power.
Private Administration: While it also has rules and procedures, it generally enjoys greater flexibility and is less burdened by extensive formal procedures. Decisions can often be made more quickly to respond to market changes and competitive pressures, enhancing efficiency. Hence, statement (iii) is correct.
Key Differences for Competitive Exams:
Motive: Public = Service/Welfare; Private = Profit/Customer Satisfaction.
Scope: Public = Universal, broad; Private = Specific, market-driven.
Accountability: Public = To the public/parliament/legal framework; Private = To shareholders/owners.
Efficiency vs. Equity: Private administration often prioritizes efficiency and effectiveness in achieving profit, while public administration balances efficiency with equity, fairness, and legal procedures.
Legal Framework: Public administration operates strictly under constitutional and statutory laws, whereas private administration is governed by company law, contract law, etc., with more internal discretion.
Monopoly: Public administration often has a monopoly in certain services (e.g., defense, justice system), unlike private administration which typically operates in a competitive environment