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PUBLIC ENTERPRISES


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Operational Autonomy and Public Accountability

An important issue with respect to the management of public enterprises is a proper balance between the autonomy of internal management and accountability to the public or Parliament.

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Desirability of Surplus

Traditionally, public enterprises are expected to operate on 'on profit no loss' basis Such a policy tends to avoid inflationary trends in the country.

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Pricing Policy of public Enterprises

Pricing policy is an important but controversial administrative problem of public enterprises.

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Drawbacks of Holding company in the Public Sector

The following dangers are involved in the holding company organisation

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Merits of Holding company in the Public Sector

Holding company organisation offers several benefits

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Holding company in the Public Sector

There has been a marked trend towards consolidation of similar public sector undertakings into large companies with the object of securing the economies of large scale operation.

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Choice of form of Organisation

The form of organisation and management affect considerably the efficiency and effectiveness of a public enterprise. Therefore, an appropriate form should be selected for every public enterprise.

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Operating Contacts of Forms of Organisation and management

This form of organisation has been used in the U.S.A. And Europe. Under it, the State centers into a contract with an established private enterprise to entrust to it the management of a public enterprise in consideration of a fixed fee.

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Control Boards of Forms of Organisation and management

In India, a new form of organisation known as 'Control Board' has been evolved to manage certain public enterprises. It is a composite board set up the central Government in association with the State Government concerned to execute and control river valley projects.

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Public Or Statutory Corporation Forms of Organisation and management

A public or statutory Corporation is an autonomous corporate body set up under a special Act of Parliament or State Legislature.

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Government Company of of Organisation and management

A Government company is a company in which 51 per cent or more of the total paid up capital is held by the Central Government and/or State Governments. Any company which is a subsidiary of such a company is also considered a government company.

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Departmental Undertakings of Forms of Organisation and management

Under this form of organisation, a public enterprise is run as a department of the Government. It is organised, financed and controlled like any other Government department. A departmental undertaking is self-contained but it is under the overall control of the departmental head and the ministry concerned.

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Forms of Organisation and management

Several forms are used for the organisation and management of public enterprises.

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Objectives of public Enterprises

The main objectives of public enterprises are as follows

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Rational of Public Enterprises

The need for the establishment of public enterprises arises on account of the following reasons

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Salient Features of Public Enterprises

A careful analysis of the above definitions reveals the following characteristics of public enterprises

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Meaning of public enterprises

The term 'Public enterprise' refers to such industrial and commercial enterprises which are owned and controlled by the central and/or State Governments.

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