Question

From your perspective which criticisms of the public sector are warranted? Are private companies more or less prone to criticism? Why or why not?

Answer 1

CRITICISMS OF PUBLIC SECTOR

1-LACK OF AUTONOMY:-These enterprises lack freedom and flexibility. They are subject to the control of the politicians and bureaucrats.

2-BUREAUCRATIC MANAGEMENT:- The organizations are run by bureaucratic who may not have knowledge of the industry.

3-DELAYS AND COST OVERRUNS:- Due to poor planning, lack of funds,mismangement etc. many projects face delays and consequence of that is cost overruns.

4-DELEAYED DECISIONS:- A file may have to pass through many officals for approval before a decision can be taken.

5-OVER STAFFING:- The salary costs and pension costs of many of these organizations are high.

6-UNPLANNED PRODUCTION:- Many of the public sector enterprises produce products which are not in tune with the market demand.

7- LACK OF PROPER PLANNING :- Planning is poor and in some cases even absent. Projects are commenced without detailed analysis and planning.

8- HIGH OVERHEADS:- Many of these organizations incur high overheads. there is very little focus on cost control and cost reduction.

PRIVATE COMPANIES ARE LESS PRONE TO CRITICISM HERE ARE THE SOME ARGUMENTS TO PROVE THE POINT

Tradtionaly the main motto of the private companies was to earn profit but later they realise that there main motto is to increase the wealth of the shareholders which ulimately turns the organisation into a profit earning organisations.To increase the wealth

They have proper startgies which have clear vision and mission

The company works on cost reduction so they can provide a good quality product at reasoanble rates.

They have dedicated team for human resources so there is no over staffing of personnels.

They aquire a knowlegable top management which are expert in there filed of work.

There is less deley in projects beacause they have well defined plan on which organisation works on.