Improving Public Enterprises - Inputs on Solutions
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