Why is the government company form of organisation preferred to other types in the public sector?
The Government company form of organisation preferred to other types in the public sector due to the following reasons :
- It is easy to form a Government company because there is no need for a special act.
- The management of a Government company is more flexible than a departmental organisation.
- The directors of a Government company can take quick decisions according to the circumstances , because they are not bound , like departmental organisation, by rigid rules and regulations.
- It enjoys freedom from financial and other controls which a departmental undertaking subjected to.
- It functions with caution because it is subjected to the scrutiny of Parliament.
- It will encourage a healthy competition between Government and private company.
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Here are some more questions from this chapter :
What are the different kinds of organisations that come under the public sector?
Can the public sector companies compete with the private sector in terms of profits and efficiency? Give reasons for your answer.