Public Sector Policies & Issues in Management Assignment Essay

The part of the delivery concerned with providing basic government kick the bucket. The composition of the creation empyrean varies by country, but in most countries the overt welkin includes such run as the police, military, domain roads, commonplace transit, primary education and healthcargon for the poor. The popular sphere of influence might provide function that non-payer elicitnot be excluded from (such as thoroughfare lighting), services which benefit all of society rather than just the item-by-item who uses the service (such as unexclusive education), and services that encourage equal opportunity. man sphere of influence as a boon (1) EmploymentVarious globe fields operating in India needs lot of manpower & this provide employment to unlimited individuals according to their education, experience & abilities. (2) Economic Development Economic exploitation mainly depends upon industrial culture. Heavy & basic industries like iron & steel, shipping, mini ng, and so on are needful for supplying raw materials to small industries. Huge uppercase is required for establishment of such heavy & basic industries. This great required for these industries is easily & readily do available by public heavens but it is practically not possible for a unavowed empyrean to run these industries.(3) Sound Infrastructure Rapid industrial growth in a country needs sound infrastructure. Infrastructural industries require huge capital for construction of Roads, Railways, Electricity & many such industries. close firmament is unable(p) to nurse such huge capital & that as well as without any highschool return but public sector can easily leave to provide all infrastructural facilities. (4) Protection to Sick Industries ordinary sector, to prevent unrelenting unit closing down, takes over their responsibility & prevent many multitude from getting unemployed not only thisbut it prevents unnecessary fasten of capital, land, building, machin ery, etc. (5) Regional Development surreptitious sector usually discount backward area. But public sector organizations come in up their units in economically backward areas. By this public sector removes regional asymmetry & brings regional development. (6) Government Control public sector is wholly controlled & managed by the Board of Directors or separate officers appointed by government. (7) Service motive exoteric sector organizations are working with the only motive of providing public utility services to society at large irrespective of profit.(8) Monopoly Public sector is purely government monopoly. It does not face any example of competition from any one-on-one sector. Public sector is working on monopoly, semi-monopoly or oligopoly basis. (9) Modal Employer Like a good parent, public sector is very much concerned with its employees. It take proper care of its employees & provides telephone circuit security, sound wages, proper working conditions, training and w elfare facilities. (10) Economies of Operation Public sector due to its large crustal plate operations enjoys economies of large scale operation.Public sector as a bane (1) Inefficiency Inefficiency results due to the size of the organization. (2) Incentives There is a lack of incentive for employees to perform if there is no share in the profit or there is an absence of other motivators such as productivity bonuses cannonball alongd promotion (this factor can also apply in the private sector if the employee is not assumption any incentive to perform). (3) Interference Political deputizence can occur. They interfere with the free market forces. Hence, Public sector is a Boon to the Indian economy. The PublicSector Enterprises have been the mainstay of the Indian economy and were set up with the purpose to achieve self-sufficiency in production of goods/ services serve the broad macro-economic objectives of higher economic growth facilitate vast term equilibrium in balance of payments and Ensure stability in prices and create benchmarks for prices of essential items The government-owned corporations play a pivotal role in the economic development of emerging economies because their participation is higher in the industrial and commercial activities of these economies.Resource constraints and limited scope of the private sector in the early stages of development and planning have set the stage for predomination of the public enterprises in these economies. Thus, public sectors in the leading developing countries of the origination (including the countries in the BRIC region) play a very important role. Investments in public sector enterprises have also been greater and have continued to accelerate growth in core sectors of a developing economy (such as railways, telecommunications, nuclear power, defence etc.). Many a times, public enterprises were created to operate in areas of national and international trade, consultancy, inland, and overseas communi cation and construction services as a result, overall profits of the public sector have not been restricted to certain sectors. In other words, the public sector is a heterogeneous combination of basic infrastructure industries, industries engaged in providing trade services, consumer goods industries, etc. case and Relevance of public Vs private sector in current economic scenarioIn the earlier lessons you have analyse about the various forms of business organization existing under private ownership or in private sector. By private sector, we mean, economic and favorable activities undertaken privately by a single individual or group of individuals. They prefer to do business in private sector basically to earn profit. On the other hand public sector refers to economic and mixer activities undertaken by public authorities. The enterprises in public sector are set up with the main aim of protecting public interest.Profit earning comes next. Besides the difference in the objecti ve, the enterprises in both these sectors also differ in many other aspects. In this section let us know the differences between the enterprises of public sector and private sector. Role of Central Public Sector Enterprises Infrastructure Public sector has made a very valuable contribution in the development of a surd infrastructure and the provision of social and economic overheads, which is an essential gear up for rapid economic growth.This includes development of transport and communication, power, irrigation, education, research and training public health services, housing etc. Strong Industrial Base Public sector has also made a notable contribution in laying the foundation of strong industrial base. The development of basic and key out industries, has all along taken place in the public sector, These industries include iron and steel, heavy machinery, heavy engineering, heavy electronics, heavy chemicals, minerals and oil, cement, fertilizers, etc.The development of these industries in the public sector has laid the foundation of a strong rapid and broad-based industrial growth and has enabled the country to attain self-reliance in a number of industrial items. Export Promotion Some public enterprises have done much to promote Indian exports. The state concern corporations and the minerals and metals trading corporations have done a wonderful job of promoting exports in all parts of the world. Hindustan steel ltd, the Bharat Electronics ltd are some of the public enterprises which are exporting increasing proportion of their output and earning foreign exchange.Role of Private Sector Enterprises The private sector is usually composed of organizations that are privately owned and not part of the government. These usually includes corporations (both profit and non-profit), partnerships, and charities. The importance of private sector in Indian economy has been very commendable in generating employment and thus eliminating poverty. Further, it also effe cted the following Increased prize of life Increased access to essential items Increased production opportunities let down prices of essential items Increased value of human capital Improved social life of the middle class Indian Decreased the percentage of volume living below the poverty line in India Changed the age antiquated perception of poor agriculture based country to a procession manufacturing based country Effected increased research and development practise and spending Effected better higher education facilities especially in technical fields Ensured fair competition amongst market playersDissolved the idea of monopoly and thus neutralized market manipulation practices Basis of difference Private sector enterprises Public sector enterprises 1. Objective Maximisation of profit. Maximise social welfare and ensure balanced economic development. 2. Ownership Owned by individuals. Owned by Government. 3. Management Managed by owner and Managed by Government. schoolmas ter managers.