You must Sign In to post a response.
  • Category: Miscellaneous

    Gradual decline of Public sector companies

    Once upon a time Public sector companies were the unchallenged kings in their own space and specialty. Take for Instance HMT, many of us new no other brands other than HMT watches. Government public sector companies - Telephones, mass media, banks so on and so froth have all had there glory days and are now either not doing very well or ridden with bad debts facing part or full privatization. Currently Air India - the unquestioned Maharaja of the skies is desperately fighting for his survival. What are the major reasons for the decline of PSUs..

    please share your views
  • #608293
    There are many reasons for the decline of PSUs. Unionism does not allow the management to take action against non performing and medical unfit employees who do not contribute anything to the company. These parasites sucking the blood of companies. Decision making at political and executive levels does not take place timely. Unionism is great hindrance to reforms and change. If PSUs do not facilitate change in time, they have to die.
    The greatest wealth in this world is mental peace and good health.

  • #608294

    Yes what the author has opined is right and in the recent past many public sector companies have faced the axe and many are in the process of closure. In Hyderabad we had big PSU's like HMT, IDPL , which are now closed for loss incurring and no patronage. Likewise ECIL which was once having 8000 staff with varied divisions, is now having minimal staff with only Voting machine and computer divisions are working. What I feel that public sector units are not working on professional way to garner orders for their products. They have to heavily depend on the government order which may not forth come. Moreover the salary bill for every month runs into crores to which they are not earning. So many Public sectors have sold their assets and settled the matter once for all. In that list we can mention Praga tools and Republic forge.

    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #608539
    IDPL one time was a biggest pharma public company. Many scientists and engineers were working. Today Hyderabad is a Pharma hub. But IDPL closed. The seniors who worked there come out with the knowledge there and started their own manufacturing units around Hyderabad. They are all doing well. The main reason is limitation to adopt changes in public sector. For example: product A is in demand yester years. So the company is making that product. Now there is a new product B which is in demand. But this company can't go for that immediately because of the delays in the procedures. But in a private company the top man will act quick and take a decision. This procedural delays are causing the death of these organisations. Second one is Unions. These unions will never accept any new thing. In a private company an agreement is made with union in which there will be a mention about the production levels and targets for all employees. If in a shift that required target is not achieved without any proper reason, there will be a deduction in his salary. At the same time if someone is achieving more than the limit they will be paid incentives. These actions will give an edge to private companies over the public sector. Overheads are very high, political and bureaucratic interference is very high. All these reasons put together making the companies sick.
    always confident

  • Sign In to post your comments