Public Sector Enterprise Issues - Inputs on Root Causes

Dear Friends:

Here is a summary of the issues highlighted by you with Public Sector Enterprises.

Please review them and if anything is missing, please add it as a comment. Otherwise, please help in identifying some of the Root Causes for these Issues.

Once we know the Root Causes, we will work on Identifying Solutions that will improve the State of Public Enterprises and submit the whitepaper to the PMO and associated ministries for actions.

Thanks for your participation!
Rajendra Pratap Gupta

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Functioning of Public Sector Enterprises - Key Issues

1. Corruption is rampant
2. Management is not up to the mark
3. A lot of scams happen
4. Lack of vision from top management
5. The working of these organization is highly politically influenced
6. Services given to the customer are poor
7. Responsibility for losses & leakages is seldom fixed
8. There is a lack of transparency in the appointment at Senior level
9. Employees are untrained and not ready to adapt new technology
10. Customer care is pathetic
11. Performance of the employees is very poor
12. Some organizations have been running in losses for years
13. Customer service of these PSUs is pathetic
14. Labour Union leaders are involved in political activities, therefore, not working towards good work of the organisation
15. Work distribution and responsibilities are not fixed
16. Major mismanagement of resources
17. Lack of focus on growth
18. Lack of focus on cost management
19. Lack of accountability especially at top management level
20. Major corruption in sourcing and vendor management
21. Quality of their work is not up to the mark
22. Public Enterprise Selection Board is influenced by politicians and in many cases requires payoffs for Senior jobs at PSUs
23. Promotions are made based on caste/religion or just years of experience
24. Technological advancements in the PSUs are very slow
25. Price of the finished products is much higher than the competition
26. Inadequate after sales service more  

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..................................... Karan would like to stay in touch on LinkedIn. Karan Tandon Ex Vice President / Generation at Tata Power -ddl,New Delhi Noida Area, India View profile https://www.linkedin.com/comm/in/karan-tandon-70a66118?trk=eml-guest-invite-pprofile-link-cta&trkEmail=eml-invite_guest-null-418-null-null-%7E9kj324%7Eji0fdts2%7E27-null-neptune%2Fprofile%7Evanity%2Eview&lipi=urn%3Ali%3Apage%3Aemail_invite_guest%3BB77V%2FVTBSYCk8iQOs88uEQ%3D%3D Confirm that you know Karan https://www.linkedin.com/comm/start/accept-invitation?sharedKey=udTqimA4&invitationId=6379357191132024849&trk=eml-guest-invite-cta&trkEmail=eml-invite_guest-null-416-null-null-%7E9kj324%7Eji0fdts2%7E27-ssuw-start%7Esignup%7Ewarm&lipi=urn%3Ali%3Apage%3Aemail_invite_guest%3BB77V%2FVTBSYCk8iQOs88uEQ%3D%3D ..................................... Unsubscribe: https://www.linkedin.com/e/v2?e=-9kj324-ji0fdts2-27&t=lun&midToken=AQFmrFVhGEd36Q&ek=invite_guest&li=426&m=unsub&ts=unsub&loid=AQE2ZMVR7pwybgAAAWPLeDVb9tt1kqJuAvKLGUKVGZu6-iKcWC6Or1RspjUDPxp94XW9iEdnfvsekDu25qq5GvSsE2yvM30_t51xkZP14SQrXyJqTQfBcZS__BEcoDlGVaK1XtVoApxm8irbDbtcNGOHj3FnxJytIA&eid=-9kj324-ji0fdts2-27 Help: https://www.linkedin.com/e/v2?e=-9kj324-ji0fdts2-27&lipi=urn%3Ali%3Apage%3Aemail_invite_guest%3BB77V%2FVTBSYCk8iQOs88uEQ%3D%3D&a=customerServiceUrl&ek=invite_guest&li=425&m=footer&ts=help&articleId=67 You are receiving Invitation emails. LinkedIn will use your email address to make suggestions to our members in features like People You May Know. This email was sent to www.send_newpost++fdbbmqlktriy++trmqgxbbmqmq@localcirclesmail.com. © 2018 LinkedIn Ireland Unlimited Company, Wilton Plaza, Wilton Place, Dublin 2. LinkedIn is a registered business name of LinkedIn Ireland Unlimited Company. LinkedIn and the LinkedIn logo are registered trademarks of LinkedIn. more  
Root causes for public sector enterprises poor performance are : 1 Lack of professionalism in Management 2 Management is mostly politically driven 3 Lack of Interest in R & D and introduction of new technologies 4 No insistence on technology transfer on foreign collaboration 5 Large unproductive manpower non commensurate with their operations - approx. 40 % personnel run the enterprise . rest are drag on the systems & its financial resources. 6 Govt must come out of many public sector enterprises and hand them over to private sector for time bound turnaround Tandon more  
Public sector per se can not be treated as not good. There are public sectors which are managed highly professional manner. But yes there are units which are highly mismanaged where the old mind set,unionism, apathy of our political group, mismanagement at all levels, total absence of any involvement which has to be revamped or privatised. more  
Public Sectors in the field of Health Care should be properly monitored with respect to the procurement price by the concerned ministry like ministry of Health & Family Welfare. more  
All Public Sector Units including banks & railway should be sold lock stock & barrel, proceeding from sale of PSUs should be used to clear external and internal debts of GOI, GOI should not be involve in doing any kind of business, period. more  
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