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.

Answer 1

(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.