What sort of Suggestions should be given for Improvement of companies?



1. Operational autonomy:

The management of public enterprises should be granted greater freedom in the day-to-day working. They should be free to formulate and execute policies and programmes within the overall objectives and guidelines laid down by the Government. This will enable them to take prompt decisions and be sensitive to changes in the market.

2. Competent managers:

Professionally qualified and experienced persons should be ap­pointed as directors and managers. Public enterprises should not be used as the avenue for retired civil servants. Government officials should not be deputed on public enterprises and a competent management cadre should be created for the public sector.

3. Rational labour policy:

Efficient methods of manpower planning, recruitment, selection, training and appraisal should be employed. Appointments should be need-based and excess staff should be transferred to other jobs.

4. Financial controls:

Investment decisions should be streamlined. Proper appraisal of projects, effective cost control, sound inventory management and better capacity utilisation are urgently required to improve the efficiency and profitability of public enterprises.