Thursday, April 24, 2014

MS - 92 Management of Public Enterprises




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ASSIGNMENT
Course Code                      :               MS - 92
Course Title                       :               Management of Public Enterprises   
Assignment Code            :               MS-92/TMA/SEM - I/2014
Coverage                             :               All Blocks


Note : Attempt all the questions and submit this assignment on or before 30th April, 2014 to the coordinator of your study center.

1.            Briefly explain the rationale for the establishment of Public Enterprises in India with special reference to its development objectives.

Answer : Rational of Public Enterprises

Role and Rationale of Public Enterprises

The public sector has been playing a vital role in the economic development of the country. In fact the public sector has come to occupy such an important place in our economy that on its effective performance depends largely the achievement of the country's economic and social goals.

Public sector is considered a powerful engine of economic development and an important instrument of self-reliance.

The main contributions of public enterprises to the country's economy and the need for the establishment of public enterprises arises on account of the following reasons :

1. Planned economic development: The modern economy has inevitably to be a planned economy. The national responsibility of planning cannot be entrusted to any authority other than the Government. Need for planned development of the country has made it essential for the Government to establish and control business



2.            Discuss the various heads under which Public Enterprises audit is conducted by the Comptroller and Auditor - General of India.

Answer : As the most important instrument of accountability, the Comptroller and Auditor General of India has a dual role to perform as an agency to function on behalf of the Legislature to ensure that the executive complies with the various laws passed by the Legislature in letter and spirit, and secondly, on behalf of the Executive to ensure compliance by subordinate authorities with the rules and orders issued by it. The Comptroller and Auditor General of India, as the head of the Indian Audit and Accounts Department, is thus neither a part of the Legislature nor the Executive but is an officer created by the Constitution to see that diverse authorities act in regard to all financial matters in accordance with the Constitution and the laws and rules framed there under.




3.            What are the various causes of industrial sickness faced by public enterprises? Discuss taking example of any sick public enterprise of your choice.

 Answer : Industrial sickness especially in small-scale Industry has been always a demerit for the Indian economy, because more and more industries like – cotton, Jute, Sugar, Textile small steel and engineering industries are being affected by this sickness problem. Loss making industries, both in the private sector and public sector are contributing for the downfall of industrial economy.

There has been an increase in industrial sickness, both in the large and small sectors, in India. By consoling that this is, to some extent, a corollary of industrial growth, one shall not belittle the seriousness of the problem. Industrial sickness

4.            “A successful project requires a thorough control mechanism.” Discuss this statement using illustrations.

 Answer : The successful performance of a project depends on appropriate planning. The execution of a project is based on a robust project plan and can only be achieved through an effective schedule control methodology.  The development of a suitable Project Control system is an important part of the project management effort . Furthermore, it is widely recognised that planning and monitoring plays a major role as the cause of project failures. Despite the continuous evolution in the project management field, it appears evident that the traditional approach still shows a lack of utilisation of Project Controls and there have been a number of articles published to support the importance of control in the achievement of project objectives. It has been proved time and again that Project performance can be improved if dedicated Project Controls systems are in place.



5.            List out the strategic issues which arise out of disinvestment of public enterprises.

Answer : What is Disinvestment

Investment refers to conversion of money or cash into securities, debentures, bonds or any other claims on money. At the same time, disinvestment involves the conversion of money claims or securities into money or cash.

Disinvestment of Public sector undertakings

Disinvestment is a wider term extending from dilution of the stake of the government to a level where there is no change in the control to dilution that results in the transfer of management. The transfer of ownership may occur when in an



6.            Write short notes on the following:

a)            Navratna Dispensation

Answer : Navratna was the title given originally to 9 Public Sector Enterprises (PSEs) identified by the Government of India in 1997 as "public sector companies that have comparative advantages", giving them greater autonomy to compete in the global market so as to "support [them] in their drive to become global giants".




b)            Corporate Governance
Answer : Corporate governance refers to the system by which corporations are directed and controlled. The governance structure specifies the distribution of rights and responsibilities among different participants in the corporation (such as the board of directors, managers, shareholders, creditors, auditors, regulators, and other stakeholders) and specifies the rules and procedures for making decisions in corporate affairs. Governance provides the structure through which corporations set and pursue their objectives, while reflecting the context of the social, regulatory and market environment. Governance is a mechanism for monitoring the actions, policies and decisions of corporations. Governance involves



c)            Collective Bargaining
Answer :  Collective bargaining is the process in which working people, through their unions, negotiate contracts with their employers to determine their terms of employment, including pay, benefits, hours, leave, job health and safety policies, ways to balance work and family and more. Collective bargaining is a way to solve workplace problems.

After the rights of public employees to collectively bargain for a middle-class life came under attack in 2010, working people in all kinds of jobs as well as students, community supporters, faith leaders and others united to defend this basic right.

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