Modern Business Practices Dr. Jyoti Harchekar

Transcript:Modern Business Practices Dr. Jyoti Harchekar:
Modern Business Practices Dr. Jyoti Harchekar Assistant Professor Tilak Maharashtra Vidyapeeth, Pune PUBLIC ENTERPRISES IN INDIA Introduction :- All industrial and commercial undertakings owned, managed and controlled by the Govern­ment are called public enterprises or public undertakings or public sector undertakings (PSUs). These enterprises are known collectively as the public sector. Definition :- According to A. H. Hanson, "Public enterprise means state ownership and operation of industrial, agricultural, financial and commercial undertakings". characteristics of public enterprises: State ownership: State control: Government financing: Service motive: Public accountability: Autonomous Bodies: PUBLIC ENTERPRISES IN INDIA Departmental Undertakings Statutory Corporations Government Companies : PUBLIC ENTERPRISES IN INDIA Distinction between Private Enterprises and Public Enterprises: 1. Objects: 2. Ownership: 3. Management: 4. Capital: 5. Freedom of management: 6. Flexibility: 7. Area of Operations: PUBLIC ENTERPRISES IN INDIA Objective of Public Enterprises: 1. Filling of gaps 2. Employment 3. Balanced regional development 4. Optimum utilisation of resources 5. Mobilisation of surplus 6. Self reliance 7. Socialistic pattern of society 8. Public welfare PUBLIC ENTERPRISES IN INDIA MANAGEMENT AND CONTROL OF PUBLIC SECTOR ENTERPRISES There is no need to justify the rationale of control over public enterprises as it is ingrained in the word 'public'. In India, three types of control are exercised in this regard, namely, parliamentary control, ministerial control, and Audit control. Parliamentary control :- The parliamentary control over public enterprises is needed for fulfilling the constitutional responsibility of the parliament in respect of these enterprises like protection of capital invested, safeguarding public interests in running of these enterprises. Ministerial control :- The ministerial control over public enterprises is highly significant and effective. From the very inception of a public enterprise, the minister is associated in one way or the other with its operations and management. In the Indian context, the ministerial control is more real than is admitted. Audit Control:- Effective Audit Control:- is imperatively necessary in case of public enterprise, as the investments made in them do not belong to the people who manage these enterprises. PUBLIC ENTERPRISES IN INDIA Problems Of Public Sector Enterprises In India: 1. Objective and Role 2. Extent and Coverage 3. Organisation and Management 4. Personnel Administration 5. Financial Management 6. Workers' Participation in Management 7. Autonomy and Accountability PUBLIC ENTERPRISES IN INDIA ADVANTAGES AND LIMITATIONS OF GOVERNMENT UNDERTAKING Balanced growth Long period planning Facilities for economic development Greater public welfare Equal distribution of wealth Better co-ordination Abolition