Private sectorPrivate sector enterprise is defined as a profitmaking unit invested in and established by naturalpersons or controlled by natural persons usingemployed labour.Private enterprise are firms whose assets belongs toindividuals and that employ more than 8 workers.
Features• Contributes towards reduction of unemployment.• Professional approach of management andemployees contribute to high productivity.• Selection and promotion of employees are purelyon the basis of merit.
Characteristics….1. Sovereignty of the EmployerEven though employers enjoy right to hire and firethe employees whom they have employed , alsohave the power to allocate and fix the jobaccording to the wish and the interest of theorganisation.
The employer possess the right to attend all disputeresolution proceedings related to an employee’sclaim.He also has the right to present relevant evidencesabout disputed issues at dispute resolutionproceedings.
2. Decision makingIn private sector managers has the power to takedecisions. Constructive discussions, cooperation,partnership and willingness to make concessionscharacterize decision making process.
3. Employee rightsEmployees have a right to ask for better workingenvironment and other facilities with regard toemployment. Employees have freedom to unite andform unions against the management so as to earngreater bargaining power.
4. UnionisationEven though trade union presence is significant inprivate sector, it is comparatively less as comparedto public sector.Trade unions have the right to receive informationregarding decision concerning employees.