There are educational establishments that are public but privately managed.
Private management is a concept that, as happens with the idea of public management , refers to a type of administration of human resources and material resources. In this case, the focus is on the procedures and tasks that are carried out in private entities, that is, they do not depend exclusively on contributions from the State .
The theory seeks to distinguish both types of administration based on the purposes they pursue and the engine that drives them. Thus, then, private management is associated with specific interests and a profit intention. Explained in another way, there is in this area a desire to obtain profits and the capital arises from bank loans and contributions from individuals or shareholders involved in the project. Public management , on the other hand, is non-profit and is aimed at satisfying or covering the needs of the population in general.
It is very important to highlight that, regardless of the differences, both are essential for the development of a nation. Hand in hand with privately managed ventures and companies, markets grow and employment opportunities multiply. On the other hand, it is common to find in the educational field academic institutions (from schools to universities) that fall into the category of privately managed public establishments .
Purposes of private management
The purposes of private management are various, they are not reduced to generating money. From a structure, efficiency is sought in administrative matters and independent ways of conducting oneself and making decisions with a view to obtaining and increasing revenues, which are not monetary in all cases. In this context, efforts are directed at developing and fulfilling strategic planning, maximizing the positive results of operations but seeking the lowest possible cost.
Private management also aims at competitiveness , at differentiating for the better with the intention of, for example, being a better option than that which depends on public management .
Private sector companies aim at competitiveness and the generation of economic benefits.
Organization and structure
The organization and structure of a private management entity seek to facilitate the distribution of tasks and administrative efficiency. To achieve this, emphasis is placed on personal ties and an equitable distribution of intervention. Sometimes, the level of participation and influence in decision-making is linked to the number of shares held by each co-participant or partner.
To organize and take advantage of the activity, it is necessary to deal with strategic planning , set objectives, clearly establish the organizational culture , study the competition through the best possible market analysis and carry out maneuvers that pursue innovation and development applied to the diversification or incorporation of services or products. In summary: so that private administration does not fail, it is necessary to plan, manage, define roles and responsibilities, control everything from profits and losses to consumer satisfaction and bet on competitiveness. The evaluation of the results that are obtained over a certain period is the phase that completes the wheel of actions to be implemented in privately managed companies.
Of course, each part of a company focuses on a specific task and each department is important, but to achieve joint harmony and unity, a solid internal communication system must be implemented. They are valued from the exclusively administrative division and the logistics and transportation sector to the office in charge of guaranteeing data protection and information security because they are all essential for the success and growth of the venture. Thus, to describe a reality as a reference, in the area of marketing and advertising we work towards market research and analysis of the competition , promotional actions and campaigns are promoted, attention is paid to the sales service and distribution of merchandise (including strategies for e-commerce and online sales , etc. In another sector, on the other hand, leadership and decision-making is focused on corporate finance and investments and financing are managed and supervised, to be detailed. other tasks necessary for the proper functioning of a company or entity.
In private management, efficiency, independence and good results are sought at the lowest possible cost.
Responsibilities in private management
Responsibilities in private management range from compliance with a legal framework to its sustainability and environmental policies. In addition, they must assume commitments linked to relationships with the community.
Adapt their actions to the guidelines of Private Law , respect the provisions of current legislation on labor issues, implement a corporate social responsibility ( CSR ) program and offer good customer service . Business ethics is also fundamental in the development of a company and is linked to responsible actions in relation to respect for the population and the natural environment in order to minimize negative impacts directly and indirectly.