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  • Category: Miscellaneous

    Is it good idea to link the salaries of PSU and PSB employees to the profits of their organisation?

    Singareni Collieries Company Limited (SCCL), a Public Sector Undertaking (PSU) in Telangana is sharing 27 percent of its profits with its employees this year. This will surely motivate the employees to work hard and make their company to run into profits. Nowadays, we are seeing many Public Sector Banks and PSUs that are running in losses. Since, there exists a Government back up for these companies, employees are not much bothered about the profits of the companies as they are getting their salaries on time. While appointing the employees, is it better if the Government links half of their salaries to the profits of their organisation?
  • #646113
    No, it is not a good idea. PSUs and PSBs were not created for the sole purpose of profit-making. So, suddenly the salary of the employees can't be linked with profit of the organizations. For example, Mudra scheme does not give much scope to profit to the PSBs, but these banks have to run the scheme as per the decision of the Government for the welfare of people. The private sector banks don't run such schemes. So, is it possible or ethical to links salary in PSBs with profit-making?

    This is only an example. I can quote several others of-hand to prove my point.

    Beware! I question everything and everybody.

  • #646116
    Previously the same Singareni coal establishment was running into losses and after KCR taken over as the CM of Telangana he has assured the review of the coal giant and hence he brought this unique profit sharing feature so that the employees would feel the share holder of the company and thus work more than expected. And that has paved good for both. But this cannot be made to all the public sector organisations. Except for Navratnas, other public sector companies are ailing since many years and this type of profit sharing mode would further push the organisation to the losses.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #646157
    Even in SIngareni collieries also profit is shared. But there is no agreement that their salaries will be linked with the performance of the company. If next year the company runs into losses also, the salaries will not reduce but profit sharing will not be there for that year. The employees will not share the losses.
    But announcing incentives and additional bonus will boost the employee's interest towards the productivity and profitability and that will boost the profits of the company. Many private organisations will link the salaries with the production of the unit. Unit rated processing is also existing in many private industries. If the units produced are more their income will be more and if they are less their income will reduce. These systems can't be implemented in government organisations, I feel.

    drrao
    always confident

  • #646161
    Yes, it's a good idea the Public sector Employees are careless about their work they don't bother about the Organisation development even though the organization incurred heavy loses their salaries were in their pocket.
    A blunt knife or rusted knife can't be useful for anything just for the sake we call it as the knife similar to PayTM series or Sachin or Virat records.


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