The disinvestment programme in India, has faced a lot of opposition, mainly from the employees and Trade Unions, for fear of their job security, due to privatisation. The Public Sector Enterprises thus, have had limited corporate restructuring, rendering the disinvestment programme in India with limited success. Employee Stock option Plans are a medium by which, employee participation and involvement in the company's performance is fostered, due to their stake in the company's stock. Being part owners of the company would give them the incentive to work more efficiently and increase the overall productivity of the firm. This paper analyses the case of Computer Maintenance Corporation of India, a Public Sector Enterprise which was completely …show more content…
In order to infuse greater degree of efficiency in their working and to bring about more accountability in their performance, the extent of disinvestment differed for each of these 3 categories. The Government decided to disinvest up to 74% and retain only a maximum of 26% in Non - Core Industries, This encouraged private participation in public sector management, infusing efficiency into the enterprise working.
Disinvestment of public sector enterprises has been adopted on a large scale, with several methodologies of disinvestment such as the auction method, strategic sale, IPO, FPO, having been implemented in India. However, the success has been limited owing to several political and external factors primarily volatile capital markets, inadequate political will to implement the new reforms, lack of transparency in the process as also strong opposition from the workers and trade
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Inefficiency and high levels of bureaucracy were the reasons for the escalating annual losses recorded from these firms. Although myriad factors have contributed to the limited success in execution of disinvestment in Indian Public Sector Enterprises, one of the major factors has been the strong opposition from the workers of the company for fear of retrenchment and thus absence of job security with disinvestment
Downsizing, restructuring, rightsizing, even a term as obscure as census readjustment has been used to describe the plague that has been affecting corporate America for years and has left many of its hardest working employees without work. In the 1980’s, twenty-five percent of middle management was eliminated in the United States (Greenberg/Baron 582). In the 1990’s, one million managers of American corporations with salaries over $40,000 also lost their jobs (Greenberg/Baron 582). In total, Fortune 500 companies have eliminated 4.4 million positions since 1979 (Greenberg/Baron 627). Although this downsizing of companies can have many reasons behind it and cannot be avoided at times, there are simple measures a company can take to make the process easier on the laid-off employees and those who survive with the company.
Companies who downsize through attrition and buyouts, those companies that work to help downsized employees find new jobs, and companies that are willing to provide outplacement services to those individuals often end up in positions that are much better than companies that simply fire workers due to downsizing (Brockner, Konovsky, Cooper-Schneider, Folger, Martin, & Bies, 1994). These companies who show that they care about the workers that they have to remove through downsizing have a much greater chance of retaining a lot of the loyalty originally given to them by the workers that survived the downsizing (Brockner, Konovsky, Cooper-Schneider, Folger, Martin, & Bies, 1994).
Privatization of governmental functions has a direct relationship with the number of contract employees in government and an inverse relationship with the number of civil servants. As privatization has become more acceptable, contract employees are being hired to do the jobs, thus, replacing civil servants.
Corporate gorverance as a system are directed and controlld by companies. Initially, their board of directors should take responsible for the gorverance of companies, which include setting strategic aims of companies , guarantee an effective leadership, supervising the proformance of business management and reporting on it to shareholders. The board's action should comply with the law, regulations and shareholders. In addition, the shareholders also play an important role in gorverance and they have right to decide who can be employed as the companies' directors and auditors to provide good governance structure for them. Therefore, corporate goverance can be regarded as what the board of a company does and how it sets the values of the company.
The current circumstances have made us re-think about the governance of our company. To resolve certain issues like spread of our businesses, incompetent management, improper structure and high attrition rate has been addressed here. The strategic options evaluated are Divesting from some of the businesses, Re structuring the management by giving generalised top management or using specialized management. The options are evaluated on the basis of cash position, future projection, Repute preservation and efficient functioning of management. On the basis of these, I recommend to divest from irrelevant and non-performing businesses. This will ensure company’s smooth running and sustained profitability.
A Review and Assessment of Its Critiques, Journal of Management, SAGE. Viewed on5th April 2011, at http://jom.sagepub.com/content/36/1/349.full.pdf+html
YakkaTech Corp. is growing IT services firm which mainly installs and upgrades enterprise software systems and related hardware. They have grown and consolidated as well as become more efficient at their business but this isn’t without growing pains. Their employees seem to lack job satisfaction and their customers feel that the employees “seem indifferent to their problems.” The company’s voluntary quit rates have risen above the industry average while management raises pay rates in the hopes that customer service quality and productivity would improve. However, customer service complaints and productivity remain low and employee moral seems to be low as well.
Case Study:Hindustan Unilever Limited. Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread across 20 distinct consumer categories, touch the lives of two out of three Indians. They endowed the company with a combined volume of about 4 million tonnes and sales of Rs.10,000 crores.
A traditional starting point is to look at what can be considered textbook definitions of efficiency. The broadest or most general meaning of efficiency as used in the public administration literature is that of technical efficiency, which concerns the ratio between resources and results, or input and output. One way or another, in all cases efficiency retains the general characteristics of input–output ratio outlined earlier, and all can be regarded as tokens of technical efficiency. The meaning of efficiency in public administration literature is almost without exception defined in terms of technical
Nottingham Trent University. (2013). Lecture 1 - An Introduction to Corporate Governance. Available: https://now.ntu.ac.uk/d2l/le/content/248250/viewContent/1053845/View. Last accessed 16th Dec 2013.
According to Sapru R.K. (2008) p370-371 the traditional ideal of public administration which inclined to be firm and bureaucratic was based on processes instead of outcomes and on setting procedures to follow instead of focusing on results. This paradigm can be regarded as an administration under formal control of the political control, constructed on a firmly ranked model of bureaucracy, run by permanent and neutral public servants, driven only by public concern. In emerging nations the administration was true bureaucracy meaning government by officers. In this perspective Smith (1996) p235-6 perceived that“the bureaucracy controls and manages the means of production through the government. It increases chances for bureaucratic careers by the creation of public figures,demanding public managers, marketing boards.
Before the easing period of the Indian economy there have been only a few corporations as an example Kelvinator, Godrej and Voltas that were thought-about because the leading market share holders, accounting for roughly ninetieth of the market. however when the easing period several MNC’s like LG, Sony, Samsung, Whirlpool, etc entered into the Asian countryn markets and these days these corporations have management
SGM PC Depot is a start-up company that is designed to offer computer products and other gadgets. SGM PC Depot allows businesses and individuals to be informed of the latest trend in technology and grab it in the most accessible way through the internet. With SGM PC Depot, you can choose and shop a wide variety of computers, laptops, and gadgets at all times and you have 24-hour access to us. Customers can avail our products and our service by subscribing to our server on the internet.
Mozes, HA 2002, ‘The FASB’s conceptual framework and political support: the lesson from employee stock options’, A Journal of Accounting, Finance and Business Studies, vol. 34, issue. 2, pp. 141-161, viewed 30 April 2014, Wiley Online Library Database, DOI 10/1111/1467-6281.00027
The public sector faces an increasing pressure to run government like a business; to be more cost efficient, as small as possible, competitive, entrepreneurial, and focused on customer satisfaction. When the focus shifts to incorporating business practices in public administration, the quality of the public service decreases and the interaction becomes less about a commitment to public service and more like the manufacture and marketing of a product.