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Difference between Public VS Business Administration

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What is the difference between public administration VS business administration? With the increasing development of the nation’s market economy, the status of public management and business management has been significantly improved, and the two different types of management share the development trend of economic strategy.

Here are the articles to explain, Analysis of the difference between public administration VS business administration

The author of this article puts forward the differences and connections between public management VS business management by analyzing. The concepts and concepts of public management and business management respectively.

Main Keywords: public administration; business administration; difference and connection

Both public management VS business administration belong to the scope of management disciplines and have the common characteristics of management science. Which can realize the rational allocation of resources through planning, organization, coordination, and other means. However, there are essential differences between public management and business management. Understanding the differences and connections between public administration VS business administration can effectively prevent the dislocation of the management subject and object of the two.

Analysis of the concept of public management

The concept of public management stood put forward in the 1970s. It is also the inevitable result of the development of public administration, and it is also the dilemma and challenge that traditional public administration faces. Public management is the extension and transformation of public administration. There is no substantial difference between the two, but public management pays more attention to social fairness and equality.

The emergence of public management is a function of public organizations whose main purpose is to realize the public interest. Public management includes many contents, mainly administrative management, urban management, development management, etc. It is an important branch of modern management disciplines and has broad development prospects. The core of public management is the government, which enhances the government’s management capabilities through policies, economics, and laws, improves the government’s management performance and service quality, and promotes the maximization of public interests.

Public management has diversified subjects, which can promote the further development of social public affairs and promote the maximization of social public interests. Realizing the responsibility of public management by regulating and controlling public resources, and establishing public management system and effective methods is the urgent task of innovation.

Analysis of the concept of business management

Business Administration is a discipline that studies the basic theories and general methods of economic management of industrial and commercial enterprises. It mainly includes two aspects, namely formulating enterprise development strategies and managing internal behaviors of enterprises. Business administration has strong applicability and is an indispensable administrative department of enterprises. The professional requirements of business administration are relatively high.

Through the application of management science, economics, and other knowledge, and the implementation of enterprise management and business strategy formulation through modern management methods, the survival and smooth development of enterprises stand guaranteed. As an important branch under the direction of management, stabilizing the survival of enterprises and promoting enterprise development are important goals of business management. Business management involves a wide range of content, and strong professionalism, and requires high theoretical knowledge and comprehensive ability. Doing a good job in business management is an important foundation for the smooth development of enterprises.

The difference between public administration and business administration

(1) Public administration and business administration involve different fields

The fields involved in public management and business management are quite different. First of all, public management is mainly responsible for the public domain, and the content involved is a public issue. Business management involves the private sector and is a competitive business enterprise based on the enterprise. The public domain mainly refers to government agencies and public institutions, etc., among which public issues refer to social issues that are widely affected by public nature in the work of members of society, are inseparable, and are directly related to public interests.

Public issues generally involve a wide range of complex issues, including environmental issues, traffic safety, food hygiene, etc. Public issues have a greater impact, not only on a single individual but more on a team or the majority of people. Secondly, the private sphere involved in business management is opposite to the public sphere. Business management is the management of profit-making organizations, that is, business management, and its basic nature is different. Business management pays more attention to the allocation of enterprise resources and the optimization of production factors to obtain maximum benefits.

(2) The resource allocation of public management and business management is different

The main body of public management is the government department. To realize the effective implementation of public management. It needs to be based on the control of public resources, including the following three aspects:

  • First, is public power. Public power is the binding force and coercive force of the government to realize public management. Which can realize the management of the legal qualification to enjoy resources in social public affairs. Public power belongs to all members of society, not to private individuals. Its function is to achieve public interests, and it has the characteristics of strong authority, strong rigidity, and no constraints.
  • Second, government resources. Government resources include the manpower, material, and financial resources it possesses, and the most important thing is the control of financial resources. Government financial resources are public property and the basis for the government to engage in public affairs.
  • Finally, natural resources. Various natural resources also belong to government resources, including land, mines, etc. The main body of business management is non-public resources, and the power it possesses is a private right, which is also a kind of strength of an enterprise organization.

An enterprise is a basic unit that can engage in economic activities such as commodity production and circulation. It realizes organizational goals through business management, and its private rights include binding force and property rights. The private right of an enterprise is enjoyed by individuals and is a non-public resource. The sources of material resources and human resources of business management are different from public management. They do not support by the government but are obtained from investment reports. Therefore, business management faces market competition and pays more attention to the survival and development of enterprises.

(3) The goals of public administration and business administration are different

Public management with the government as the main body mainly represents the public interests of society. Its essence is whether the public interests are good or bad, and its evaluation criteria are also based on the interests and needs of the majority of people. Public management pays more attention to social fairness and social justice. Its goal is to maintain public interests to the greatest extent and then realize the individualized distribution of public interests in a fair and just manner to promote social welfare.

Business management represents the management of profit-making organizations. Its goal is to maximize the interests of the private sector. Its main body is a broker. It takes market rules as its basic criterion and control by market norms. Business management is based on efficiency and realizes the expansion of private interests. Although industrial and commercial enterprises also contribute to national finance, their ultimate goal is to realize their interests.

(4) The operating mechanisms and methods of public management and business management are different

Public management manages public affairs through the use of public power. The essence of its operating mechanism is the operating mechanism of public power, and its basic basis is laws and regulations. Therefore, public management is a legalized management, including two aspects:

  • First, Administer according to the law, manage public affairs according to the power and provisions of the law, divide responsibilities, and strive to follow laws and regulations in every link of the management process.
  • Second, legal supervision. The whole process of public management needs to be carried out under the internal and external supervision of laws and regulations. Business management operates by the laws of the market.

Although the market economy also needs to follow legal requirements, such norms are only external. There are still hidden constraints in the laws of the market economy to maintain the normal operation of the market.

The relationship between public administration and business administration

Public management VS business administration belongs to important branches of management science, and they are different. But also have a certain relationship, and the relationship between the two is dialectical and unified. Both public management VS business management is based on the basic theories, methods, and knowledge of management, and realize management through means such as organization, control, leadership, decision-making, execution, and supervision.

In the management process, although the management objects are different and the operating mechanism is different. The problems encountered are the same, such as organizational problems, supervision problems, implementation problems, etc. The attention and exploration of these problems constitute the gap between business management VS public management. The common problem is the biggest commonality between the two.

Conclusion

To sum up, public management VS business administration belongs to the category of management. There are differences between the two in terms of management essence, management field, resource allocation, management objectives, and operating mechanism. There are also commonalities in the problem. Mastering the difference and connection between public management and business management is conducive to the long-term development of public and private interests.

Analysis of the difference between public administration VS business administration Image
Analysis of the difference between public administration VS business administration; Photo by Gabrielle Henderson on Unsplash.
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