Question

which of the following is not a disadvantage of government companies​

Answer 1

Answer:

Namaste

Explanation:

Not Ppl Getting fired

Answer 2

Explanation:

The disadvantages of government company are as follows:-

(1) Lacks Flexibility:The government companies have to follow the policies & rules framed by the Legislative or Parliament & most of the rules are rigid.

(2) Lack of Motivation: The Directors other officers of Government company are least interested operational activities of government company. They get fixed remuneration without any share in the profit or without any responsibility for losses.

(3) Political Interference: Government companies are suffering from interference by political parties & political leaders. With the change in government, constitution of Board changes & this affect the working adversely.

(4) Lack of Autonomy: Government companies though autonomous bodies, but can not take any decision without taking permission from government.

(5) Delay in Decision: The government companies have to depend upon the government for deciding policy matters, resulting in delaying the decisions.

(6) Wastage of Resources: There is a good amount of wastage of resources. There is poor material management. Raw materials remain unutilized. Also corrupt officials place huge orders for raw materials & inputs because of bribes & commission, even though such purchases are not required in large quantities.

(7) Low labor productivity: The government companies suffer from the problem of low labor productivity. The efficiency in law is due to various problems.

Such as: (a) Faulty selection & promotion.

(b) Lack of training & development.

(c) Poor performance appraisal

(d) Faulty placement & forced transfer etc.

(8) Poor labor management relations: The government companies suffer from the problem of poor labor management relations. This is due to inefficient management and also due to selfish and militant trade unions. Also proper work culture is missing in India and as workers resort to strikes. The management is equally responsible as determined and dedicated efforts on the part of management are after lacking to improve labor relations.