wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

The government has been watching for some time that the performance of industry in Public sector is not coming up to the level of standardisation. Several efforts have been put in, but because of no improvement in it, the government decided to increase the role of Private Sector in some areas of Public sector. This would bring about improvement in the level of performance. The reason for the government to make this decision was that the different departments of an industrial unit in Public sector do not work with each other. The situation in private sector is entirely opposite to it.
(a) Identify the concept of management which shows the failure of public sector. Give its importance also.
(b) Which concept of business environment has been described in above case? Identify it and give its meaning.

Open in App
Solution

(a) controlling- controlling to assure directed action as per plans and objectives. Controlling incorporates the establishment of standards, measurements, and comparison of actual results against the standard, and necessary corrective action to remove deviations from the plan.
Hence, controlling is a concept of management which shows the failure of the public sector.
The importance of controlling-
(1) Accomplishing Organisational Goals.
(2) Judging Accuracy of Standards
(3) Making Efficient Use of Resources
(4) Improving Employee Motivation
(b) Privatisation- The transfer of ownership, property or business from the government to the private sector is termed privatization. The government ceases to be the owner of the entity or business.

The process in which a publicly-traded company is taken over by a few people is also called privatization. The stock of the company is no longer traded in the stock market and the general public is barred from holding stake in such a company. The company gives up the name 'limited' and starts using 'private limited' in its last name.

flag
Suggest Corrections
thumbs-up
0
similar_icon
Similar questions
Q. 76. The Planning Commission was established in 1950 through a Government resolution to formulate long-term development Plans and to recommend them to the Union Cabinet. In framing its recommendations, the Commission has to act in close understanding and consultation with the ministries of the Central government and the governments of the States. The responsibility for policy decisions and implementation rests with the Central and State governments. Many have regarded and some still regard, that the Indian Plans are modelled on Soviet-type "command" planning. This is true only to the extent that there was considerable emphasis, particularly in the Second and Third Plans, on creation of a heavy industrial base under the auspices of the State. Under the aggressive intellectual leadership of Prof. P.C. Mahalanobis and a few other technical experts of the Commission, this objective was given a pride of place in development planning. Subsequently, as a result of severe difficulties, higher priority was accorded to agriculture. The Industrial policy resolutions of 1948 and 1956 provided the basic framework of industrial development and regulation. The Industrial policy Resolution of 1948 envisaged careful planning and integrated effort and that a progressively increased role will be assumed by the Central and State governments in the process of economic growth and in industrial development in particular, by the public sector within a mixed economy. It demarcated industries between the public and private sectors, providing for exclusive monopoly of the basic and infrastructural industries to the former. The Industrial policy Resolution of 1956 gave priority to development of heavy industries and machine-making industries, expansion of public sector, besides promoting the co-operative sector.
Consider the following assumptions regarding the above passage.
1. The recommendations of Planning Commission is mandatory for Union and State governments.
2. Under industrial policy resolution 1948 both union government and state governments have to take some initiatives for economic growth through public sector undertakings.
3. The industrial policy resolution 1956 has prioritized heavy industries, machine making industries and cooperative sector through public sector undertakings.
View More
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Political Environment
BUSINESS STUDIES
Watch in App
Join BYJU'S Learning Program
CrossIcon