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Public sector

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its a presentation about the general problems faced by Public Sector Undertakings in India..

its a presentation about the general problems faced by Public Sector Undertakings in India..

Published in: Education, Technology, Business
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  • 1. A PRESENTATION ON PROBLEMS FACED BY THE PUBLIC SECTOR UNDERTAKINGS IN INDIA SUBMITTED BY: Kratika Dhoot MBA 3RD SEM
  • 2. AGENDA 1. What is Public Sector Enterprises? 2. What are the Problems faced by the Public Sector Undertakings? 3. Conclusion
  • 3. PUBLIC SECTOR UNDERTAKINGS Owned ; Managed and Controlled by the Govt. Funded by the Govt. Welfare Oriented The public sector includes such services as Police, Military, Public roads, Public transit, Primary education and Healthcare for the poor
  • 4. Problems Faced by PSUs Under-utilization of installed capacity Capacity utilization becomes an important criterion to judge the performance of an enterprise. But, in most of the cases, a major part of the installed capacity of manufacturing units in the public sector remains unutilized. Poor Planning & Delay in implementation of projects Cost escalation was due to changes in the project sites some times due to belated recognition of product mix that is unsuitable to Indian Market conditions
  • 5. Problems Faced by PSUs Insufficient growth in productivity •Productivity can be increased only if employee satisfaction level is achieved. •While in PSUs, this concept of satisfaction & Motivation is extinct •Performance Appraisal is done only as annual recording of character rolls Overstaffing •Recruitment is done in PSUs on daily basis & termination or retirement rate is less. •Hence, overstaffing causes conflicts & clashes which results in hindrance to the growth of enterprises
  • 6. Problems Faced by PSUs Objectives & Role •Perennial Problem for the policy makers to set the role of the public sector in the Indian Economy & it would continue to be so •Objectives of public sector have been defined & goals being set not very systematically. Even at macro level have been mixed up with number of propositions
  • 7. Problems Faced by PSUs Extent & Coverage •Whether PSU should extent to wide variety of economic activities or to be confined to a selected few only, is a very crucial decision •The problem is consistently persisting in the Indian Polity Organization & Management •“Trial & Error “ ever since independence in the country. •Initially, organized as departmental undertakings owing to their simplicity of operations & management. •The govt. burdens the governing board with the civil servants
  • 8. Problems Faced by PSUs Autonomy & Accountability •Autonomy implies “FREEDOM TO ACT” & is related to “FREEDOM IN INTERNAL MANAGEMENT”. •In case of PSUs, it doesn’t imply full freedom to act as desired •PSUs are accountable to Parliament through the concerned minister & therefore can’t act freely
  • 9. Conclusion Thus, it is evident that PSUs were: 1. Incurring losses continuously due to the presence of numerous financial & nonfinancial problems. 2. Policy Makers; Bureaucrats; managers & also Researchers have not given due weightage & importance
  • 10. THANK YOU …

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