Private Administration: Definition, Characteristics, Functions and Objectives

If you have a private company or are thinking about starting a business, this article is for you. Today I will explain the basic aspects that you need to know about Private Administration.

By knowing the functions and objectives of the Private Administration you will have tools for the good management of your company.

And you should know that proper management will serve you in the development and sustainability of your organization over time.

If you are looking for how to define private administration, what is private administration, and other aspects of the same then the following are the topics that I have covered in this blog post.

  • What is Private Administration?
  • Characteristics of the Private Administration.
  • Functions of the Private Administration.
  • Objectives of the Private Administration
  • Conclusions.

To start, I want to show you the most relevant characteristics of Private Administration. Private management is the engine of the economy

That said, let’s get into the matter …

What is Private Administration?

Let’s start by describing the private business.

Private company

The company is the main engine of the economy of a country, with the passage of time its conception has become very complex.

Before, the company was conceived only for the generation of benefits, leaving other aspects aside.

Today, it is understood as the integration of a series of human, technical and financial resources as well as the relationship they have with their environment.

Private companies are non-governmental organizations that seek a lucrative benefit by offering a good or service. But they also need to effectively manage their resources and this is where private administration appears.

What is Private Administration?

Private Administration is defined as the social science in charge of the functional processes of the organization, in order to achieve the previously established objectives.

In general, it seeks to maximize the income obtained from the commercialization of goods or services and decrease the costs associated with the operation.

Private Administration Definition

Private management is the set of operations and processes that are focused on managing the resources of a private entity.

Private Administration is the backbone for economic development and is done through the planning, organization, execution, control and evaluation of processes.

This type of administration has competitiveness as a stimulus and the evaluation of its performance is based on the perception of quality by consumers. In this sense, quality, in a private company, will be focused on satisfying customer needs.

Characteristics of the Private Administration

Each type of administration has its own characteristics and these are those of the Private Administration:

  • This type of management seeks an economic purpose with the product or service it offers.
  • Its legal basis is the laws of private law.
  • Its management applies to non-governmental organizations.
  • It seeks to satisfy the needs and expectations of customers.
  • It is competitive.
  • The products and services offered are governed. for what is established in the planning.
  • Independence in decision making.

Functions of the Private Administration

As in all administration, the functions are those established as an administrative process, these are:

Planning :

Here you must make short, medium and long-term plans to achieve a goal.

In private companies, planning helps chart the course of action that human resources must follow. For this, the mission, vision, objectives and organizational culture are defined.

Planning must be carried out at each level of the company in order to fulfil the mission and established objectives.

This is the first stage of the administrative process and will help, among other things, to cope with the changes that occur effectively.

Organization :

Have you heard people say that there is no use dreaming if you don’t organize? Well, it is correct.

In this function, you must organize all the resources you have, be they financial, technical and human, according to what is planned. This is where you must integrate the resources.

In this sense, you will have to distribute the functions, the tasks, establish the execution time of each one and assign the required monetary resources.

Execution :

It means that you will influence human resources so that they effectively carry out the previously assigned functions.

In this process, resources will be used to implement the established plan.

In this phase, you must put into practice your qualities of authority and leadership so that the activities are carried out according to the plan.

Control :

It is about supervising each of the processes carried out in the company in order to detect errors and solve them in time.

In this function, it is constantly verified that the human resource performs the functions according to what is established in the plan.

Evaluation :

It consists of evaluating the results obtained from the execution of the plan. What is the use of executing functions if you do not know how to measure and interpret the results?

Well, you must apply management indicators, KPI’s ( key performance indicator ) to determine to what extent the goals have been met.

On the other hand, you will obtain relevant information for decision making.

Objectives of the Private Administration

Private administration increases efficiency in the company.

Unlike public management, this type of management has the main objective of obtaining profits from the offer of a product or service.

The objectives of the Private Administration will be determined by what is established in the strategic planning of the company.

For this, you must take into account that it will not help you to establish objectives that cannot be achieved or measured.

Below I describe, in general terms, the main objectives that private management seeks and in which the objectives of the company are focused.

  • Achieve efficiency in the company. This means that resources should be used appropriately in order to minimize costs.
  • Achieve efficiency that is nothing more than complying with the provisions of the directive.
  • Meet the needs of customers with a quality product or service that exceeds their expectations.
  • Maximize profits by reducing costs which translates into effectiveness.


Over time, the administration has had to specialize by areas of interest and fields of application. Today we saw how it applies to the private sector.

The Private Administration is the science in charge of planning, organizing, executing and controlling the resources that the company owns. Its purpose is to offer goods and/or services and obtain benefits.

When we talk about resources we mean the work team, the financiers and the technicians.

Private management is characterized by seeking customer satisfaction, so it must be competitive.

I hope this information has been useful to you. Check out other articles on management:

Thanks for reading this article on Private Administration.

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