Public Administration vs Business Administration

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Questions and Answers

What does W. Michael Blumenthal suggest is a key element in pluralistic decision-making?

  • The influence of various interest groups (correct)
  • The independence from public opinion
  • The secrecy of government operations
  • The role of a single decision-maker

According to Donald Rumsfeld, how do executives in government operate compared to those in the private sector?

  • In an environment free from public scrutiny
  • With greater visibility and scrutiny from the public (correct)
  • In total confidentiality without public involvement
  • With less accountability due to fewer stakeholders

What does Blumenthal mean by stating that the diversity of interests is the essence of democratic government?

  • It creates conflict between different government branches
  • It ensures that only popular opinions are considered
  • It allows for the representation of various concerns in policy-making (correct)
  • It complicates the decision-making process

Why is visibility important for executives in government according to the content?

<p>It helps maintain accountability to the public (D)</p> Signup and view all the answers

What can be inferred about the relationship between interest groups and policy-making?

<p>Interest groups actively seek to shape policy from the outset (D)</p> Signup and view all the answers

What is the primary criterion for evaluating success in most businesses?

<p>Bottom-line profit (B)</p> Signup and view all the answers

Which aspect is characterized by ambiguity in public administration?

<p>Service-oriented missions (A)</p> Signup and view all the answers

What is one significant difference between decision-making in business and public administration?

<p>Public services require input from multiple stakeholders. (A)</p> Signup and view all the answers

Why might a public or non-profit organization continue to operate in a financially losing area?

<p>To meet human needs (C)</p> Signup and view all the answers

How do businesses typically view a money-losing operation?

<p>As unacceptable and intolerable (C)</p> Signup and view all the answers

What role do managers in both business and public administration play?

<p>Allocating scarce resources and managing people (A)</p> Signup and view all the answers

What does pluralistic decision-making in public administration imply?

<p>Multiple stakeholders contribute to decisions. (D)</p> Signup and view all the answers

What is a common characteristic of objectives in public or non-profit organizations?

<p>Ambiguous and service-based goals (A)</p> Signup and view all the answers

Flashcards

Pluralistic Decision-Making

Influence from various groups (e.g., government committees, businesses, unions) on policy-making decisions.

Interest Groups

The process where individuals within the government and outside organizations attempt to influence the formulation and implementation of policies.

Visibility

The constant public attention and scrutiny that public officials face in democratic societies.

Accountability

Public servants are accountable to the public and their actions are subject to public scrutiny and review.

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Public Scrutiny

The press and the public play a vital role in monitoring and influencing government decisions.

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Ambiguity of purpose between business and public administration

The difference in the primary goal between businesses and public organizations. Businesses focus on profit, while public organizations prioritize serving the public good.

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How do we measure success in business and public administration?

The measurement of success in a business is typically clear: profitability. In public organizations, success is harder to quantify and may involve meeting social needs and providing services.

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How is performance measured in business?

The bottom-line profit is a key metric for evaluating performance in a business, and individual managers can be assessed based on their unit's contribution to overall profitability.

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How is performance measured in public organizations?

Public/non-profit organizations have less clear performance metrics, as they primarily focus on serving the public. Their success is often judged by the effectiveness of service provision, which is harder to measure.

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Pluralistic Decision-Making in Public Administration

In public services, diverse stakeholders, such as citizens, organizations, and government agencies, are involved in the decision-making process. This creates a multi-faceted and sometimes slow process.

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Decision-Making in Business Organizations

The decision-making in businesses is often centralized, with a smaller group of key individuals or a single leader making crucial decisions.

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Visibility in Public Administration

The actions and decisions of public administration are often under public scrutiny and subject to public opinion. Government activities are more visible and open to public debate.

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Visibility in Business

In the private sector, businesses can be more secretive about their operations and don't face the same level of transparency as public organizations.

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Study Notes

Public Administration

  • Public administration and business administration share similarities, including organizational design, resource allocation, and personnel management.
  • However, they differ in key aspects.

Contrasting Aspects

  • Ambiguity: Government aims and objectives are sometimes less clear-cut than private sector objectives. Private businesses often prioritize profit maximization, while public organizations may focus on services or goals beyond financial outcomes. Assessing performance can be hard when objectives are less numerically defined.
  • Pluralistic Decision-Making: Public policy is more complex, incorporating multiple stakeholders (e.g., interest groups, citizen input) and leading to multifaceted decision processes. This often lengthens decision timelines. A business decision-making process might be faster and more streamlined.
  • Visibility: Public officials operate under constant public and press scrutiny, unlike business counterparts. This heightened visibility requires transparency in their actions.

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