Text 2. Business Management and Public Administration

Every modern society is made up of business and public organisations such government departments, unions, hospitals, libraries and the like. They are essential to our existence and help to create the standards of living and to improve the quality of life. In all these organisations there are people carrying out the work of a manager though they may not have this title. Thus, the mayor of the town, the vice-chancellor of the university, the president of the local trade union or the chief librarian are all mangers. They have a responsibility to use the resources of their organisations effectively and economically to achieve the goals. Are there certain activities common to all managers? A French industrialist Henri Fayol gave a classic definition of a manager's role which is still actual. He said that to manage is to forecast and to plan, to organise and to command, to coordinate and to control.

Time has passed and people have collected a lot of data of how to carry out and manage routine operations to gain maximum productivity. The principals of scientific business management were taken as the model for the proper management of government. Nowadays public administration may be regarded as a field of business because management of all organisations in both private and public sectors involves planning the activities and establishing the goals, organising, staffing and training as well as directing, decision making and budgeting to assure that work activities fully correspond to fiscal planning, accounting and control.

As for the term administration it is much wider than management. Administration takes place at factories, schools, hospitals, insurance companies and welfare agencies whether these organisations are public or private. That is why researchers and scientists trend to use a new term of business and public administration.

However, the difference between administration of business and administration of public organisation is obvious. Thus, studying public administration one should take into account not only subjects equal for both private and public organisations but also those specific surroundings or the mix of administration, policy making and politics in which public servants have to work. Besides, public organisations are more dependant on government allocations, political influences and law. These differences should be taken into consideration as well applying business management techniques to government agencies and municipal organisations.

Answer the questions:

1. What is the modern society made up of?

2. Why are public and private organisations important to people?

3. What type of functions do public administrators usually carry out?

4. What activities are common to all managers and administrators?

5. Who gave the first definition of a manager's role?

6. What principles were taken as a model for the proper management of government.

7. Why is the term administration wider than the term management?

8. What collocation defining administration functions do modern scientists use nowadays?

9. What should one take into consideration studying public administration?

10. Why is public administration more dependent than business management?