1 !ndia mba books Explain the major objectives of the public sector, Give different criteria t evaluate the performance of public enterprises. Comment on hw to resolve the possible conflict between autonomy and public accountability of public enterprises. Ans. See previous question The question of autonomy versus public accountability assumes special significance in context of the public sector enterprises which are o
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2 Thus, to be efficient, public enterprises must be given autonomy, but too much autonomy without public accountability may lead to many distortions and inefficiencies. On the other hand, complete or too much of public accountability, which may manifest itself in excessive interference by the Government and complete control of decision making, is unhealthy for the growth and efficient working of public enterprises. Hence a reasonable balance has to be struck between autonomy and public accountability. This can be best done through a clear division of functions between the Government which is the owner of the public enterprises and the Board of Management which is responsible for efficient running of these enterprises. The Government should concern itself mainly with laying down the policy guidelines, taking or approving major investment decisions, appointment of top level management personnel, appraisal of working of the enterprises and issuing of necessary directions in accordance with the overall policies and programmes that it seeks to implement. Within these parameters, the management of the enterprises should be given a free hand in carrying out day to day administration and in matter regarding production, management, purchase and stores policy, marketing and sales and other activities allied to their business. Public sector enterprises in India are subject to public accountability through such devices as Ministerial control, where the Minister incharge of the Department or Ministry is fully responsible for enterprises under his charge and can not escape responsibility for lapses, if any, in these enterprises. The Auditor and Comptroller General of India is empowered to audit accounts of the central and the state Governments, statutory corporation and public companies. Parliamentary control is exercised by question and debates in the Parliament and a number of Parliamentary Committees, including. the committee on public undertakings. Within these controls of public accountability, the Management Boards of public enterprises have been given autonomy and a free hand in day to day working of undertakings in their charge


Aug 16, 2017
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