Post and Telegram Department is part of Ministry of Communication. It is organized, financed and controlled by the Communication Ministry. The finance is apportioned from the government treasury annually. Name the PSE
highlighted here and Explain its disadvantages. (any four)
Answers
Answer:
Public Sector Enterprises
Explanation:
Public Sector Enterprises is a part of Public sector Undertakings.
Public Sector Undertaking or Enterprise refers to a Government Company. “Government Company” is defined under Section 2 (45) of the Companies Act, 2013 as Any company in which more or equal to 51% of the paid-up share capital is held by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments, and includes a company which is a subsidiary company of such a Government company.
Disadvantages of Public Sector Enterprises are as under:-
1)Over-Protection by Government: Some government corporations are like over-indulged children who cannot do anything for themselves. Most of them depend on the government for
everything including the payment of staff salaries and the maintenance or replacement of equipment even though they were established to provide services to the public and to make profits. In private companies, the workers know that they have to make profits or the company will close down and they will become unemployed. For this reason, the workers work hard to
improve on their goods and services. In public corporations the workers do not seem to care especially as they have secure tenure of office, regardless of the financial positions of the
corporation. In fact the services of some public corporations are so bad that the public would
have nothing to do with them if it had any choice. Thus, the practice whereby government gives
grants to its companies on a regular basis makes the workers careless about the quality of work
they offer to the corporation.
2)Poor attitude to Work: Many workers in the public sector see their work as government work.
Government work, they unfortunately believe, require neither seriousness nor commitment. The
result is that workers do not do their work at all or do it haphazardly, and the corporations
consequently cannot effectively discharge their duties for which they were set up. He
asserts that the average employee is “not on seat” fifty percent of the time. Most employees see
white-collar job as government work in which the employee receives his monthly salary
regardless of his or her input in the organization. Such an attitude will certainly be a draw back
to the attainment of organizational goals.
4) Greed for money: Some government corporations are notorious for their
mismanagement of funds. Money is sometimes embezzled outright. Officials also connive with
contractors who are paid in full for work that is either not done or is improperly carried out.
There have been cases where old and obsolete equipment and machinery have been bought at the
price of new ones. This money could have been used for necessary development projects by the
company or the government.
5) Combination of all these problems are manifested in
the very poor services given by public corporations such as irregular and erratic power and water
supply, late or non-delivery of mails, faulty telephone services and poor rail road and air
transport services. Furthermore, inability of government corporations to discharge their duties
effectively has contributed a great deal to the slow rate of social and economic development in
the country.
6)Poor funding: It has been observed that inadequate funding of PEs by government makes their
operation difficult.