Improving Public Enterprises - Inputs on Solutions
Dear Friends:
Below are the key Root Causes as identified by you for the State of Public Enterprises.
Kindly review them and help identify Solutions to make the functioning of Public Enterprises more effective.
We will then put together the whitepaper and submit it to PMO and related Ministries for action.
I look forward to your participation!
Rajendra Pratap Gupta
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State/Functioning of Public Sector Enterprises – Root Causes
1. Responsibility & Accountability is not built into the systems
2. General culture in these organizations is to please the boss and forget about the customer
3. Top managers usually are politicians or bureaucrats and do not have prior business experience
4. Senior management lacks leadership qualities
5. High ranking officers have a lot of authority which in turn leads to corruption
6. Senior level appointments are politically influenced through PSEB and many times come with conditions/expectations/cost
7. Infrastructure of these PSUs is vast and tough to maintain
8. Employees have a high level of job security and hence ignore their responsibilities
9. KRAs of the employees is not defined
10. Employees are scared of stepping out of their comfort zone
11. No one is ready to own up to tasks which results in bad customer service
12. Annual increments are not performance linked
13. Promotions are not performance based
14. Government does not have a divestment plan for the ailing public sector enterprises
15. Labour laws are heavily tilted in favour of the unions
16. Employees/management are scared of change
17. Competition is not kept in mind while deciding the price of the finished goods
18. Recruitment system is archaic
19. The unblemished record of the UPSC selection procedure is not used for Public Enterprise selections
20. PSUs are sometime forced to take non-feasible projects because of the Government pressure
21. Concept of right man – right job is not implemented. more
Below are the key Root Causes as identified by you for the State of Public Enterprises.
Kindly review them and help identify Solutions to make the functioning of Public Enterprises more effective.
We will then put together the whitepaper and submit it to PMO and related Ministries for action.
I look forward to your participation!
Rajendra Pratap Gupta
-----------------------------------------------------------------------------------------------------------------------------------
State/Functioning of Public Sector Enterprises – Root Causes
1. Responsibility & Accountability is not built into the systems
2. General culture in these organizations is to please the boss and forget about the customer
3. Top managers usually are politicians or bureaucrats and do not have prior business experience
4. Senior management lacks leadership qualities
5. High ranking officers have a lot of authority which in turn leads to corruption
6. Senior level appointments are politically influenced through PSEB and many times come with conditions/expectations/cost
7. Infrastructure of these PSUs is vast and tough to maintain
8. Employees have a high level of job security and hence ignore their responsibilities
9. KRAs of the employees is not defined
10. Employees are scared of stepping out of their comfort zone
11. No one is ready to own up to tasks which results in bad customer service
12. Annual increments are not performance linked
13. Promotions are not performance based
14. Government does not have a divestment plan for the ailing public sector enterprises
15. Labour laws are heavily tilted in favour of the unions
16. Employees/management are scared of change
17. Competition is not kept in mind while deciding the price of the finished goods
18. Recruitment system is archaic
19. The unblemished record of the UPSC selection procedure is not used for Public Enterprise selections
20. PSUs are sometime forced to take non-feasible projects because of the Government pressure
21. Concept of right man – right job is not implemented. more
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Public sector enterprises should not given preferences. Example - lot of Police works, ESIC Hospitals , National Institute of Disaster Management , National Institutes of Technology , Maritime University etc were given to PSU companies viz., NBCC , HSCL , EPIL etc on nomination basis on Project Management Consultancy concept with a fixed margin of 7% of the Project Cost whereas Private Companies are doing the same work @ 3-5%. The End result is disaster as none of the works are completed. Job Secutity clause should be removed from their constitution. Hire & Fire principle should be made applicable. Efficiency should be rewarded whereas inefficiency should be punished. Responsibility & Accountability should be fixed. Ramachandra Srinivas R more
Feb 02
Unless promotions are strictly based on work done the people are not going to make these organizations profitable. There is no incentive to be productive at work. That seems to be the deterrent factor. more
Dec 13
Resp. Sir I would like to bring to your notice the bitter situation of our hindu brothers who had to flee from pakisthan( because of the atrocities as u all know ) and humbly request u sir to hear to them With Regards Sailesh N.C. more
Nov 24
If the concerned Minister "finds" the time and discusses frankly with each of the Chairmen & top 10 employees of each public sector enterprise, much more information on solutions will be available than fishing around with common public like us. Of course, everyone in Government seems to be busy only with elections and foreign trips more
Nov 20
