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One often thinks of competition as a mechanism whereby undertakings are forced to answer more efficiently the needs of clients. One may wonder whether that system could be used to…
Abstract
One often thinks of competition as a mechanism whereby undertakings are forced to answer more efficiently the needs of clients. One may wonder whether that system could be used to organize the institutional environment. Competition already exists among states or regions, where it affects their capacity to attract investment or skilled workers. Could we go further and organise institutional competition among authorities within the same territory? Electronic communications provide a good case study, with the same competencies being attributed to regulators, competition authorities and judicial power.
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While national public policies such as performance contracts and disinvestment affect the dynamics of large- and medium-scale state-owned enterprises in emerging market economies…
Abstract
Purpose
While national public policies such as performance contracts and disinvestment affect the dynamics of large- and medium-scale state-owned enterprises in emerging market economies, the purpose of this paper is to analyze the performance of India’s public sector undertakings (PSUs) and suggest options to improve their outcomes.
Design/methodology/approach
Using firm-level data on India’s 235 PSUs with total assets of around $500 billion over the past two and half decades (1990-2015), the study empirically tests the effect of performance contracts, measured by memorandum of understanding (MOU) and disinvestment, measured by private equity share, on PSUs performance indicator such as return on capital (ROC). Data were collected from the Public Enterprises Survey Reports released by the Department of Public Enterprises under India’s Ministry of Heavy Industries and Public Enterprises, Department of Disinvestment, Bombay Stock Exchange and Capitaline database. By controlling firm-, industry- and macro-level factors in regression models, the results were presented in several aspects like service sector, non-service sector and individual and joint effects.
Findings
Empirical estimations indicate that performance contracts such as MOUs have had a positive impact on PSU performance by increasing their ROC by 8-9 percent. This result holds more strongly for the non-service sector (manufacturing, mining) but less so for service sector firms. In the case of service sector firms, partial privatization (share sales) has a significant impact on performance, making them ideal candidates for more aggressive disinvestment. Larger PSUs (Maharatnas) appear to perform better than smaller PSUs and even better than private firms of similar size. Smaller PSUs (Navratnas and Miniratnas) perform worse than private companies and should be good candidates for strategic disinvestment (privatization). PSUs that do not have Ratna status – and are loss makers – should be disposed of their asset value.
Practical implications
The study recommends that India should change the public sector balance sheet by raising capital through strategic disinvestment (privatization), disinvestment and liquidation of PSUs and re-investing it, in public infrastructure through the National Infrastructure Investment Fund and not into the budget as a revenue-raising measure. It should also transform Maharatnas into world class companies with greater commercialization.
Originality/value
The paper makes significant contributions to the academic literature on the changing dynamics of state-owned enterprises in emerging economies by examining the effect of performance contracts and disinvestment on India’s PSUs performance. It is one of unique longitudinal-empirical studies on India’s PSU performance in several dimensions.
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Rojalin Sahoo and Chandan Kumar Sahoo
The purpose of this research is to examine the relationship between employer and employees in a public power sector undertaking through the validation of CODE (compensation…
Abstract
Purpose
The purpose of this research is to examine the relationship between employer and employees in a public power sector undertaking through the validation of CODE (compensation, organizational justice, dispute resolution and employee empowerment) and PLE (workforce productivity, employee loyalty and employee engagement) model.
Design/methodology/approach
A hypothesized research model was developed and validated by using structural equation modeling (AMOS 20). In total, 303 responses were accumulated by administering a structured questionnaire among the employees of a state-owned power sector.
Findings
The results revealed that a harmonious climate of employee relations is prevailing in the public power utility. Additionally, the findings suggest that the CODE and PLE model of employee relations are found to be positive and significant by investigating the impact of compensation, organizational justice, dispute resolution and employee empowerment as the predictors; and workforce productivity, employee loyalty and employee engagement as the critical outcomes of employee relations.
Practical implications
The study recommends some plausible insights for practitioners, decision-makers and policy formulators to develop strategies and policies for nurturing congenial employee relations and also to cultivate a facilitative work environment for generating contented and competent manpower.
Originality/value
Validation of CODE and PLE model of employee relations in the new perspective of power sector undertaking is an epoch-making and novel contribution that offers significant empirical evidence to the extant literature. Moreover, the exploration of employer–employee relations in this context is a unique and innovative effort toward existing research.
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Chew Har Loke, Suhaiza Ismail and Fatima Abdul Hamid
The purpose of this paper is to explore the perception of public sector auditors on performance audit in Malaysian public sector entities. In particular, this study elicits the…
Abstract
Purpose
The purpose of this paper is to explore the perception of public sector auditors on performance audit in Malaysian public sector entities. In particular, this study elicits the respondents’ opinions on the elements of performance audit, the need for involvement of auditors in policy making, relevant experts to undertake a performance audit, major constraints in carrying out performance audit and the potential of performance audit to improve public administration.
Design/methodology/approach
The study employed a postal questionnaire method to seek the perception of the auditors. The questionnaire was distributed to the population of public sector auditors in the National Audit Department in Malaysia and a total of 503 usable responses were received. The responses were analysed using descriptive statistical analysis including mean score and mean score ranking.
Findings
The results reveal that auditors were of the opinion that effectiveness element should be one of the performance audit elements and that public sector auditors should be given the opportunity to influence policy decisions. In addition, the results show that the public auditor is not the only profession that can carry out performance audit, but can team up with other professions. In relation to constraints in performance audit, “Lack of cooperation and commitment from auditees in conducting a performance audit” was claimed to be the topmost constraint. Furthermore, performance audit was claimed to be able to enhance public accountability, as well as to enable more economical, efficient and effective utilising of public resources.
Originality/value
This paper is one of few studies on public sector auditing particularly on performance auditing in the context of a developing country (i.e Malaysia).
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B. Patnaik, G.S. Beriha, S.S. Mahapatra and N. Singh
This paper seeks to present an empirical study on organizational learning in Indian educational organizations.
Abstract
Purpose
This paper seeks to present an empirical study on organizational learning in Indian educational organizations.
Design/methodology/approach
The Learning Organization Profile (LOP) Survey is used as the tool for eliciting responses from the staff regarding the nature and state of organizational learning prevailing in educational settings. The study attempts to highlight the extent of organizational learning in technological institutes of repute in both the public and private sectors in India. Factor analysis and descriptive statistics have been used to analyze data and to make comparisons vis‐à‐vis ownership of organization and employee category.
Findings
Results indicate that the extent of organizational learning is below the expected level in both public and private sectors. Significant difference exists between public and private organizations in terms of the extent as well as dimensions of organizational learning. As leadership has emerged as the most valued factor in the private sector institutes and third among eight dimensions in the public ones, the onus lies in leading these institutes with able managers who inspire the employees to learn and adapt. The management has opportunity to enhance the potential of the academic institutes for learning by choosing effective leaders who provide direction and vision for employees. The role of transformational leadership is important in the context of Indian technological institutes.
Originality/value
Development of learning culture is becoming a dominant theme in the strategic plans of many organizations today. Hence, it is vital to investigate the nature and extent of organizational learning as prevailing in the sector of higher education and learning, specifically in the Indian context. The study differentiates organizational learning practices in public and private undertakings. It also examines the dimensions of organizational learning as experienced by different categories of employees constituting the organization.
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Any study of procurement frauds in India would be primarily in the context of procurements by the government and public sector undertakings. India, with its mixed economy, has a…
Abstract
Any study of procurement frauds in India would be primarily in the context of procurements by the government and public sector undertakings. India, with its mixed economy, has a vibrant private sector and reported cases of procurement frauds from private business and industry have been few and far between. The law enforcement and investigating agencies have been primarily concentrating on protecting government funds. Government departments and public sector undertakings are the biggest buyers in India with purchases ranging from ordinary office stationery to the most sophisticated technical equipment required in railways, telecoms, power and defence sectors etc.
Moumita Acharyya and Tanuja Agarwala
The paper aims to understand the different motivations / reasons for engaging in CSR initiatives by the organizations. In addition, the study also examines the relationship…
Abstract
Purpose
The paper aims to understand the different motivations / reasons for engaging in CSR initiatives by the organizations. In addition, the study also examines the relationship between CSR motivations and corporate social performance (CSP).
Design/methodology/approach
The data were collected from two power sector organizations: one was a private sector firm and the other was a public sector firm. A comparative analysis of the variables with respect to private and public sector organizations was conducted. A questionnaire survey was administered among 370 employees working in the power sector, with 199 executives from public sector and 171 from private sector.
Findings
“Philanthropic” motivation emerged as the most dominant CSR motivation among both the public and private sector firms. The private sector firm was found to be significantly higher with respect to “philanthropic”, “enlightened self-interest” and “normative” CSR motivations when compared with the public sector firms. Findings suggest that public and private sector firms differed significantly on four CSR motivations, namely, “philanthropic”, “enlightened self-interest”, “normative” and “coercive”. The CSP score was significantly different among the two power sector firms of public and private sectors. The private sector firm had a higher CSP level than the public sector undertaking.
Research limitations/implications
Further studies in the domain need to address differences in CSR motivations and CSP across other sectors to understand the role of industry characteristics in influencing social development targets of organizations. Research also needs to focus on demonstrating the relationship between CSP and financial performance of the firms. Further, the HR outcomes of CSR initiatives and measurement of CSP indicators, such as attracting and retaining talent, employee commitment and organizational climate factors, need to be assessed.
Originality/value
The social issues are now directly linked with the business model to ensure consistency and community development. The results reveal a need for “enlightened self-interest” which is the second dominant CSR motivation among the organizations. The study makes a novel contribution by determining that competitive and coercive motivations are not functional as part of organizational CSR strategy. CSR can never be forced as the very idea is to do social good. Eventually, the CSR approach demands a commitment from within. The organizations need to emphasize more voluntary engagement of employees and go beyond statutory requirements for realizing the true CSR benefits.
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This paper discusses the reasons of failure of TQM Implementation in Indian Public Sector Undertaking. Based on the weaknesses observed in the existing systems and practices of…
Abstract
This paper discusses the reasons of failure of TQM Implementation in Indian Public Sector Undertaking. Based on the weaknesses observed in the existing systems and practices of implementation, a system structural model of TQM Implementation is proposed. Based on the experiential learning through interaction with the public sector undertaking, the model is a proposition to build Total Quality Management as a core competence. A case study is presented where the authors have been involved in advising a public sector undertaking relating to TQM implementation. Some of the significant learning points have been highlighted for enriching professional practice.
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Bikram Jit Rishi and D.P. Goyal
Understanding Strategic Information Systems (SIS) implementation is an important challenge to organizations. It is considered important because Information Technology (IT…
Abstract
Understanding Strategic Information Systems (SIS) implementation is an important challenge to organizations. It is considered important because Information Technology (IT) decisions about investment are made worldwide and these decisions have the impact on the survival and growth of the organizations. In this context, SIS should be implemented very carefully so that right, timely and accurate information should be available to the managers, who are responsible for taking strategic decisions. Review of literature indicated the clear gaps existing in the implementation of Strategic Information Systems in general and in the Public Sector Undertakings (PSUs) of India in particular. Keeping the research gaps in this area in mind, we have undertaken this study in Indian PSUs so as to investigate the factors affecting the implementation of SIS. Organizational Culture, High Turnover of Professionals, Management Involvement, Collaboration, Systems Standards, Resources Implementation, Resources Availability, Market Competitition, Organizational Bureaucracy and Organizational Autocracy are emerged as the successful factors which must be taken care of while impelemnting SIS in Indian PSUs.
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